Chapter 5
AN ACT
HB 2707
Relating to a reserve fund; declaring an emergency; and providing for
revenue estimate modification that requires approval by a two-thirds majority.
Be It Enacted by the People of
the State of
SECTION 1. (1)
The
(2) The Legislative
Assembly may appropriate moneys from the Oregon Rainy Day Fund only if the
appropriation is approved by three-fifths of the members serving in each house
of the Legislative Assembly and the Legislative Assembly finds one of the
following:
(a) That the last
quarterly economic and revenue forecast for a biennium indicates that moneys
available to the General Fund for the next biennium will be at least three
percent less than appropriations from the General Fund for the current
biennium;
(b) That there has been
a decline for two or more consecutive quarters in the last 12 months in
seasonally adjusted nonfarm payroll employment; or
(c) That a quarterly economic
and revenue forecast projects that revenues in the General Fund in the current
biennium will be at least two percent below what the revenues were projected to
be in the revenue forecast on which the legislatively adopted budget for the
current biennium was based.
(3) Once each month, the
Oregon Department of Administrative Services shall calculate the amount of
General Fund interest that is attributable to moneys in the Oregon Rainy Day
Fund. Except as otherwise provided in section 6 of this 2007 Act, the
department shall transfer the amount calculated under this subsection to the
Oregon Rainy Day Fund.
(4) The Legislative
Assembly may not appropriate for any one biennium more than two-thirds of the
amount that is in the
(5) As used in this
section, “legislatively adopted budget” has the meaning given that term in ORS
291.002.
SECTION 2. Pursuant
to section 14 (6)(a), Article IX of the Oregon Constitution, the Legislative
Assembly increases the amount of the estimate of revenues that will be received
from corporate income and excise taxes for the biennium beginning July 1, 2005,
to $975 million.
SECTION 3. (1)
Except as provided in subsection (2) of this section, any positive difference between
the actual amount of revenues collected from corporate income and excise
taxpayers for the biennium beginning July 1, 2005, and the estimate made for
that biennium pursuant to section 14 (1), Article IX of the Oregon
Constitution, shall be distributed as follows:
(a) The amount of $24.8
million shall be deposited in the General Fund; and
(b) The remainder shall
be deposited in the
(2) If the actual amount
of revenues collected from corporate income and excise taxpayers for the
biennium beginning July 1, 2005, exceeds the amount of the estimate made in
section 2 of this 2007 Act by two percent or more:
(a) The difference
between the actual amount of revenues and the estimate made in section 2 of
this 2007 Act shall be returned to corporate income and excise taxpayers in the
manner provided in ORS 291.349; and
(b) The difference
between the estimate of revenues made in section 2 of this 2007 Act and the
estimate made for the biennium beginning July 1, 2005, pursuant to section 14
(1), Article IX of the Oregon Constitution, shall be distributed as follows:
(A) The amount of $24.8
million shall be deposited in the General Fund; and
(B) The remainder shall
be deposited in the
SECTION 4. (1)
As used in this section:
(a) “Ending balance”
means the difference between the amount of General Fund revenues collected
during a biennium and the amount of General Fund appropriations for the
biennium.
(b) “General Fund
appropriations” means the amount of moneys appropriated from the General Fund
for a biennium in the legislatively approved budget for the biennium, minus the
amount of any General Fund appropriation balances for that biennium that revert
to the General Fund under ORS 293.190.
(c) “Legislatively
approved budget” has the meaning given that term in ORS 291.002.
(2) Except as provided
in section 6 of this 2007 Act, as soon as possible after the ending balance for
a biennium is determined, an amount equal to one percent of the amount of
General Fund appropriations for that biennium shall be transferred to the
Oregon Rainy Day Fund established by section 1 of this 2007 Act. If the ending
balance does not equal or exceed one percent of the amount of General Fund
appropriations, an amount equal to the ending balance shall be transferred to
the Oregon Rainy Day Fund.
SECTION 5. Section
4 of this 2007 Act applies to ending balances for biennia beginning on or after
July 1, 2007.
SECTION 6. (1)
If the moneys in the Oregon Rainy Day Fund established by section 1 of this
2007 Act just prior to the time of a transfer scheduled under section 1 (3) or
4 of this 2007 Act equal at least 7-1/2 percent of the amount of General Fund
revenues collected during the prior biennium, moneys that would otherwise be
transferred to the Oregon Rainy Day Fund shall be deposited in the General
Fund.
(2) If the moneys in the
Oregon Rainy Day Fund just prior to the time of a transfer scheduled under section
1 (3) or 4 of this 2007 Act do not equal at least 7-1/2 percent of the amount
of General Fund revenues collected during the prior biennium, the transfer to
the Oregon Rainy Day Fund shall be made regardless of whether that transfer
increases the amount in the Oregon Rainy Day Fund to at least 7-1/2 percent of
the amount of General Fund revenues collected during the prior biennium.
SECTION 7. Sections
1 to 6 of this 2007 Act do not become operative unless B-engrossed House Bill
2031 is passed by both houses of the Legislative Assembly and signed by the
Governor on or before March 16, 2007.
SECTION 8. This
2007 Act being necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this 2007 Act takes
effect May 1, 2007.
Approved by the Governor March 16, 2007
Filed in the office of Secretary of State March 16, 2007
Effective date May 1, 2007
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