Chapter 895
AN ACT
SB 812
Relating to people’s utility districts; creating new provisions; and
amending ORS 261.010, 261.030, 261.050, 261.235, 261.250, 261.253, 261.305,
261.335, 261.348, 261.355, 262.005, 262.015, 262.075, 285C.050 and 288.805.
Be It Enacted by the People of
the State of
SECTION 1. ORS 261.010 is amended to read:
261.010. As used in this
chapter, unless otherwise required by the context:
(1) “Affected territory”
means that territory proposed to be formed into, annexed to or consolidated
with a district.
(2) “Board of directors,”
“directors” or “board” means the governing body of a people’s utility district,
elected and functioning under the provisions of this chapter.
(3) “County governing
body” means either the county court or board of county commissioners and, if
the affected territory is composed of portions of two or more counties, the
governing body of that county having the greatest portion of the assessed value
of all taxable property within the affected territory, as shown by the most
recent assessment roll of the counties.
(4) “Electors’ petition”
means a petition addressed to the county governing body and filed with the
county clerk, containing the signatures of electors registered in the affected
territory, equal to not less than three percent of the total number of votes
cast for all candidates for Governor within the affected territory at the most
recent election at which a candidate for Governor was elected to a full term,
setting forth and particularly describing the boundaries of the parcel of
territory, separate parcels of territory, city and district, or any of them,
referred to therein, and requesting the county governing body to call an
election to be held within the boundaries of the parcel of territory, separate
parcels of territory, city and district, or any of them, for the formation of a
district, the annexation of a parcel of territory or a city to a district, or
the consolidation of two or more districts.
(5) “Electric
cooperative” means a cooperative corporation owning and operating an electric
distribution system.
(6) “Initial utility
system” means a complete operating utility system, including energy efficiency
measures and installations within the district or proposed district, capable of
supplying the consumers required to be served by the district at the time of
acquisition or construction with all of their existing water or electrical
energy needs.
(7) “Parcel of territory”
means a portion of unincorporated territory, or an area in a city comprised of
less than the entire city.
(8) “People’s utility
district” or “district” means an incorporated people’s utility district,
created under the provisions of this chapter.
(9) “Replacement value
of unreimbursed investment” means original cost new less depreciation of
capitalized energy efficiency measures and installations in the premises of
customers of an investor owned utility.
(10) “Separate parcel of
territory” means unincorporated territory that is not contiguous to other territory
that is a part of a district or that is described in a petition filed with the
county clerk in pursuance of the provisions of this chapter, but when a
proposed district includes territory in more than one county, the contiguous
territory in each such county shall be considered as a separate parcel of
territory. When a proposed district includes any area in a city comprised of
less than the entire city, that area shall be considered as a separate parcel
of territory.
(11) “Utility” means a
plant, works or other property used for development, generation, storage,
distribution or transmission of [electric
energy produced from resources including, but not limited to, hydroelectric,
pump storage, wave, tidal, wind, solid waste, wood, straw or other fiber, coal
or other thermal generation, geothermal or solar resources] electricity,
or development or transmission of water for domestic or municipal purposes, [waterpower or electric energy,] but
transmission of water shall not include water for irrigation or reclamation
purposes, except as secondary to and when used in conjunction with a
hydroelectric plant.
SECTION 2. ORS 261.030 is amended to read:
261.030. Nothing
contained in this chapter authorizes or empowers the board of directors of any
people’s utility district to interfere with or exercise any control over any
existing utility owned and operated by any electric cooperative or city in the
district unless by consent of the governing body of the electric cooperative or
of the city council or the governing body of the plant owned by a city, when
the control of the plant is vested in a governing body other than the city
council or governing body of the city. However a district may participate fully,
on a mutually agreed basis, with electric cooperatives and utilities owned
by cities in common facilities under ORS 261.235 to 261.255 and in the
formation and operation of joint operating agencies [for electric power] under ORS chapter 262.
SECTION 3. ORS 261.050 is amended to read:
261.050. (1) All
property, real and personal, owned, used, operated or controlled by any people’s
utility district, in or for the production, transmission, distribution or
furnishing of [electric power or energy]
electricity or electric service for or to the public, shall be assessed
and taxed in the same manner and for the same purposes, and the district and
the directors and officers thereof shall be subject to the same requirements,
as are provided by law in respect to assessment and taxation of similar
property owned, used, operated or controlled by private corporations or
individuals for the purpose of furnishing [electric
power or energy] electricity or electric service to the public.
(2) If a people’s
utility district owns property jointly with a tax-exempt governmental or
municipal entity, only the portion of the property used, operated or controlled
by the people’s utility district shall be assessed and taxed pursuant to
subsection (1) of this section.
SECTION 3a. If Senate Bill 838 becomes law, section 3
of this 2007 Act (amending ORS 261.050) is repealed and ORS 261.050, as amended
by section 32, chapter 301, Oregon Laws 2007 (Enrolled Senate Bill 838), is
amended to read:
261.050. (1) All
property, real and personal, owned, used, operated or controlled by any people’s
utility district, in or for the production, transmission, distribution or
furnishing of electricity or electric service for or to the public, shall be
assessed and taxed in the same manner and for the same purposes, and the
district and the directors and officers thereof shall be subject to the same
requirements, as are provided by law in respect to assessment and taxation of
similar property owned, used, operated or controlled by private corporations or
individuals for the purpose of furnishing electricity or electric service to
the public.
[(2) If a people’s utility district owns property jointly with a
tax-exempt governmental or municipal entity, only that portion of the property,
or that proportion of the property rights, directly owned, used, operated or
controlled by the people’s utility district shall be assessed and taxed
pursuant to subsection (1) of this section.]
(2) If a people’s
utility district owns property jointly with a tax-exempt governmental or
municipal entity, only the portion of the property used, operated or controlled
by the people’s utility district shall be assessed and taxed pursuant to
subsection (1) of this section.
SECTION 4. ORS 261.235 is amended to read:
261.235. As used in ORS
261.235 to 261.255, unless the context requires otherwise:
(1) “City” means a city
organized under the law of
(2) “Common facilities”
means any [works and facilities necessary
or incidental to] property used for the generation, transmission,
distribution or marketing of [electric
power] electricity and related goods and [commodities] services that are owned or operated jointly by a
people’s utility district organized under this chapter and at least one other
city, district, electric cooperative or person.
(3) “District” means a
people’s utility district organized under this chapter or a similar public
utility district organized under the law of
(4) “Electric
cooperative” means a cooperative corporation organized under the law of
California, Idaho, Montana, Nevada, Oregon or Washington and owning and
operating an electric distribution system.
SECTION 4a. If Senate Bill 838 becomes law, section 4
of this 2007 Act (amending ORS 261.235) is repealed and ORS 261.235, as amended
by section 33, chapter 301, Oregon Laws 2007 (Enrolled Senate Bill 838), is
amended to read:
261.235. As used in ORS
261.235 to 261.255, unless the context requires otherwise:
(1) “City” means a city
organized under the law of
(2) “Common facilities”
means any property used for the generation, transmission, distribution or
marketing of electricity and related goods and services that are owned or
operated jointly by a people’s utility district organized under this chapter
and at least one other city, district, [or] electric cooperative or person.
(3) “District” means a
people’s utility district organized under this chapter or a similar public
utility district organized under the law of
(4) “Electric
cooperative” means a cooperative corporation organized under the law of
California, Idaho, Montana, Nevada, Oregon or Washington and owning and
operating an electric distribution system.
SECTION 5. Section 6 of this 2007 Act is added to and
made a part of ORS 261.235 to 261.255.
SECTION 6. A people’s utility district may become a
member of an electric cooperative, or of a limited liability company, for the
purposes of planning, financing, constructing, acquiring, operating, owning or
maintaining property used for the generation and associated transmission of
electricity within or outside this state. A district may not become a
stockholder in, or lend the credit of the district to, an electric cooperative
or a limited liability company. If a district becomes a member of an electric
cooperative or of a limited liability company, the district may not exercise
the power of eminent domain for the benefit of the electric cooperative or limited liability company.
SECTION 7. ORS 261.250 is amended to read:
261.250. (1) In carrying
out the powers granted in ORS 261.245 and section 6 of this 2007 Act, a
district of this state [shall be]
is liable only for its own acts with regard to the planning, financing,
construction, acquisition, operation, ownership or maintenance of common
facilities. No moneys or other contributions supplied by a district of this
state for the planning, financing, construction, acquisition, operation or
maintenance of common facilities shall be credited or applied otherwise to the
account of any other participant in the common facilities.
(2) A district shall not
exercise its power of eminent domain to acquire a then existing thermal power
plant or any part thereof.
SECTION 8. ORS 261.253 is amended to read:
261.253. (1) [No] A public contract entered
into by a noninvestor-owned electric utility [shall] may not contain a clause or condition that imposes an
unconditional and unlimited financial obligation on the electric utility that
is party to the contract unless the terms and conditions of the contract are
subject to approval and are approved by the electors of the people’s utility
district or city that owns the electric utility.
(2) Nothing in
subsection (1) of this section is intended to affect provisions of law
requiring approval of electors for any particular type of public contract that
are in effect on October 15, 1983, or that are later enacted.
(3) Nothing in
subsection (1) of this section is intended to conflict with ORS 279C.650 to
279C.670.
(4) This section does
not apply to a public contract executed in connection with the acquisition of
renewable energy certificates or the acquisition, construction, improvement or
equipping of, or the financing of any interest in, a renewable energy facility
or electrical capacity.
[(4)] (5) As used in this section:
(a) “Public contract”
includes a contract, note, general obligation bond or revenue bond by which the
people’s utility district or city or any subdivision of any of them is
obligated to pay for or finance the acquisition of goods, services, materials,
real property or any interest therein, improvement, betterments or additions
from any funds, including receipts from rates or charges assessed to or
collected from its customers.
(b) “Unconditional and
unlimited financial obligation” means a public contract containing a provision
that the people’s utility district or city that is party to the contract is
obligated to make payments required by the contract whether or not the project
to be undertaken thereunder is undertaken, completed, operable or operating
notwithstanding the suspension, interruption, interference, reduction or
curtailment of the output or product of the project.
SECTION 8a. If Senate Bill 838 becomes law, section 8
of this 2007 Act (amending ORS 261.253) is repealed.
SECTION 9. ORS 261.305 is amended to read:
261.305. People’s
utility districts shall have power:
(1) To have perpetual
succession.
(2) To adopt a seal and
alter it at pleasure.
(3) To sue and be sued,
to plead and be impleaded.
(4) To acquire and hold,
including by lease-purchase agreement, real and other property necessary or
incident to the business of the districts, within or without, or partly within
or partly without, the district, and to sell or dispose of that property; to
acquire, develop and otherwise provide for a supply of water for domestic and
municipal purposes, waterpower and electric energy, or electric energy
generated from any utility, and to distribute, sell and otherwise dispose of
water, waterpower and electric energy, within or without the territory of such
districts.
(5) To acquire, own,
trade, sell or otherwise transfer renewable energy certificates.
[(5)] (6) To exercise the power of eminent domain for the
purpose of acquiring any property, within or without the district, necessary
for the carrying out of the provisions of this chapter.
[(6)] (7) To borrow money and incur indebtedness; to issue,
sell and assume evidences of indebtedness; to refund and retire any
indebtedness that may exist against or be assumed by the district or that may
exist against the revenues of the district [and];
to pledge any part of its revenues; and to obtain letters of credit or
similar financial instruments from banks or other financial institutions.
Except as provided in ORS 261.355 and 261.380, no revenue or general obligation
bonds shall be issued or sold without the approval of the electors. The board
of directors may borrow from banks or other financial institutions[, on notes payable within 12 months,]
such sums as the board of directors deems necessary or advisable[; however, the amounts so borrowed, together
with the principal amounts of other like borrowings then outstanding and
unpaid, shall not exceed the amount that the board of directors estimates as
the district’s net income (determined in accordance with the system of accounts
maintained by the board pursuant to ORS 261.470) for the 12 full calendar
months following the date of the proposed borrowing, adjusted by adding to the
net income an amount equal to the estimated charges to depreciation for the
12-month period]. No indebtedness shall be incurred or assumed except [on account of] for the
development, purchase and operation of [a
utility] electric utility facilities or for the purchase of electricity,
electrical capacity or renewable energy certificates.
[(7) To enter into rental or lease-purchase agreements to rent, lease or
acquire real or personal property, or both, required for district purposes.
Except when approved by a majority of the electors of the district voting on
the question, a people’s utility district shall not enter into rental or
leasing agreements when the annual aggregate amount of payment for any and all
property directly related to a single transaction exceeds 10 percent of the
revenues of the district in the preceding fiscal year.]
(8) To exercise the
powers otherwise granted to districts by ORS 271.390.
[(8)] (9) To levy and collect, or cause to be levied and
collected, subject to constitutional limitations, taxes for the purpose of
carrying on the operations and paying the obligations of the district as
provided in this chapter.
[(9)] (10) To make contracts, to employ labor and
professional staff, to set wages in conformance with ORS 261.345, to set
salaries and provide compensation for services rendered by employees and by
directors, to provide for life insurance, hospitalization, disability, health
and welfare and retirement plans for employees, and to do all things necessary
and convenient for full exercise of the powers herein granted. The provision
for life insurance, hospitalization, disability, health and welfare and
retirement plans for employees shall be in addition to any other authority of
people’s utility districts to participate in those plans and shall not repeal
or modify any statutes except those that may be in conflict with the provision
for life insurance, hospitalization, disability, health and welfare and
retirement plans.
[(10)] (11) To enter into contracts with any person, any
public or private corporation, the United States Government, [with] the State of Oregon, or with any
other state, municipality or utility district, and with any department of any
of these, for carrying out any provisions of this chapter.
[(11)] (12) To enter into agreements with the State of Oregon
or with any local governmental unit, utility, special district or private or
public corporation for the purpose of promoting economic growth and the
expansion or addition of business and industry within the territory of the
people’s utility district. Before spending district funds under such an
agreement, the board of directors shall enter on the written records of the
district a brief statement that clearly indicates the purpose and amount of any
proposed expenditure under the agreement.
[(12)] (13) To fix, maintain and collect rates and charges
for any water, waterpower, [electric
energy] electricity or other commodity or service furnished,
developed or sold by the district.
[(13)] (14) To construct works across or along any street or
public highway, or over any lands which are property of this state, or any subdivision
thereof, and to have the same rights and privileges appertaining thereto as
have been or may be granted to cities within the state, and to construct its
works across and along any stream of water or watercourse. Any works across or
along any state highway shall be constructed only with the permission of the
Department of Transportation. Any works across or along any county highway
shall be constructed only with the permission of the appropriate county court.
Any works across or along any city street shall be constructed only with the
permission of the city governing body and upon compliance with applicable city
regulations and payment of any fees called for under applicable franchise
agreements, intergovernmental agreements under ORS chapter 190 or contracts
providing for payment of such fees. The district shall restore any such street
or highway to its former state as near as may be, and shall not use the same in
a manner unnecessarily to impair its usefulness.
[(14)] (15) To elect a board of five
directors to manage its affairs.
[(15)] (16) To enter into franchise agreements with cities
and pay fees under negotiated franchise agreements, intergovernmental
agreements under ORS chapter 190 and contracts providing for the payment of
such fees.
[(16)] (17) To take any other actions necessary or convenient
for the proper exercise of the powers granted to a district by this chapter and
by section 12, Article XI of the Oregon Constitution.
SECTION 10. ORS 261.335 is amended to read:
261.335. (1) Except
as otherwise provided in subsection (2) of this section, people’s utility
districts are subject to the public contracting and purchasing requirements of
ORS 279.835 to 279.855, 279C.005, 279C.100 to 279C.125 and 279C.300 to 279C.470
and ORS chapters 279A and 279B, except ORS 279A.140 and 279A.250 to 279A.290.
(2) The public
contracting and purchasing requirements of ORS 279.835 to 279.855, 279C.005,
279C.100 to 279C.125 and 279C.300 to 279C.470 and ORS chapters 279A and 279B do
not apply to contracts entered into by districts for the acquisition,
construction, improvement or equipping of a renewable energy facility or for
the purchase or sale of electricity, electrical capacity or renewable energy
certificates.
SECTION 11. ORS 261.348 is amended to read:
261.348. (1)
Notwithstanding any other law, people’s utility districts and municipal
electric utilities may enter into transactions with other persons or entities
for the production, supply or delivery of electricity on an economic,
dependable and cost-effective basis, including financial products contracts and
other service contracts that reduce the risk of economic losses in the
transactions. This [section] subsection
does not authorize any transaction that:
[(1)] (a) Constitutes the investment of surplus funds for the
purpose of receiving interest or other earnings from the investment; or
[(2)] (b) Is intended or useful for
any purpose other than the production, supply or delivery of electricity on a
cost-effective basis.
(2) Nothing in
subsection (1) of this section prohibits a people’s utility district or a
municipal electric utility from entering into any transaction for the
acquisition, construction, improvement or equipping of a renewable energy
facility or for the purchase or sale of electricity, electrical capacity or
renewable energy certificates.
SECTION 12. ORS 261.355 is amended to read:
261.355. (1) For the
purpose of carrying into effect the powers granted in this chapter, any
district may issue and sell revenue bonds, when authorized by a majority of its
electors voting at any primary election, general election or special election.
(2) All revenue bonds
issued and sold under this chapter shall be so conditioned as to be paid solely
from that portion of the revenues derived [from]
by the district [by] from
the sale of water, waterpower and [electric
energy] electricity, or any of them, or any other service, commodity
or facility which may be produced, used or furnished in connection therewith,
remaining after paying from those revenues all expenses of operation and
maintenance, including taxes.
(3) Notwithstanding
subsection (1) of this section and subject to subsection (4) of this section,
any district may, by a duly adopted resolution of its board, issue and sell
revenue bonds for the purpose of financing betterments and extensions [within the existing boundaries] of the
district, including renewable energy facilities or the purchase or sale of
electricity, electrical capacity or renewable energy certificates, but the
amount of revenue bonds so issued shall be limited to the reasonable
value of the betterments and extensions plus an amount not to exceed 10 percent
thereof for administrative purposes. Revenue bonds shall not be issued and sold
for the purpose of acquiring an initial utility system or acquiring property or
facilities owned by another entity that provides electric utility service unless:
(a) The acquisition
is a voluntary transaction between the district and the other entity that
provides electric utility service; or
(b) [without first
obtaining the affirmative vote of] The electors within the district have
approved issuance of the bonds by a vote.
(4) Not later than the
30th day prior to a board meeting at which adoption of a resolution under
subsection (3) of this section will be considered, the district shall:
(a) Provide for and give
public notice, reasonably calculated to give actual notice to interested
persons including news media which have requested notice, of the time and place
of the meeting and of the intent of the board to consider and possibly adopt
the resolution; and
(b) Mail to its
customers notice of the time and place of the meeting and of the intent of the
board to consider and possibly adopt the resolution.
(5) Except as
otherwise provided in this section, any authorizing resolution adopted for
the purposes of subsection (3) of this section shall provide that electors
residing within the district may file a petition with the district asking to
have the question of whether to issue such bonds referred to a vote.
(6) If within 60 days
after adoption of a resolution under subsection (3) of this section the
district receives petitions containing valid signatures of not fewer than five
percent of the electors of the district, the question of issuing the bonds
shall be placed on the ballot at the next date on which a district election may
be held under ORS 255.345 (1).
(7) When petitions
containing the number of signatures required under subsection (6) of this
section are filed with the district within 60 days after adoption of a
resolution under subsection (3) of this section, revenue bonds shall not be
sold until the resolution is approved by a majority of the electors of the
district voting on the resolution.
(8) Any district issuing
revenue bonds may pledge that part of the revenue which the district may derive
from its operations as security for payment of principal and interest thereon
remaining after payment from such revenues of all expenses of operation and
maintenance, including taxes, and consistent with the other provisions of this
chapter.
(9) Prior to any
district board taking formal action to issue and sell any revenue bonds
under this section, the board shall have on file with the secretary of the
district a certificate executed by a qualified engineer that the net annual
revenues of the district, including the property to be acquired or constructed
with the proceeds of the bonds, shall be sufficient to pay the maximum amount
that will be due in any one fiscal year for both principal of and interest on
both the bonds then proposed to be issued and all bonds of the district then
outstanding.
(10) Except as
otherwise provided in this section, the district shall order an election
for the authorization of revenue bonds to finance the acquisition or
construction of an initial utility system, including the replacement value of
the unreimbursed investment of an investor owned utility in energy efficiency
measures and installations within the proposed district, as early as
practicable under ORS 255.345 after filing the certificate required under
subsection (9) of this section. An election [under this subsection] for the authorization of revenue bonds to
finance the acquisition or construction of an initial utility system shall
be held no more than twice in any one calendar year for any district. In
even-numbered years no election shall be held on any other date than the date
of the primary election or general election.
(11) A district may
issue revenue bonds under ORS 288.805 to 288.945 without an election
authorizing the issuance, except that revenue bonds shall not be issued under
ORS 288.805 to 288.945 for the purpose of acquiring an initial utility system
or acquiring property or facilities owned by another entity that provides
electric utility service unless:
(a) The acquisition is a
voluntary transaction between the district and the other entity that provides
electric utility service; or
(b) The electors within
the district have approved issuance of the bonds by a vote.
SECTION 12a. If Senate Bill 838 becomes law, section 12
of this 2007 Act (amending ORS 261.355) is repealed and ORS 261.355, as amended
by section 41, chapter 301, Oregon Laws 2007 (Enrolled Senate Bill 838), is
amended to read:
261.355. (1) For the
purpose of carrying into effect the powers granted in this chapter, any
district may issue and sell revenue bonds, when authorized by a majority of its
electors voting at any primary election, general election or special election.
(2) All revenue bonds
issued and sold under this chapter shall be so conditioned as to be paid solely
from that portion of the revenues derived by the district from the sale of
water, waterpower and electricity, or any of them, or any other service,
commodity or facility which may be produced, used or furnished in connection
therewith, remaining after paying from those revenues all expenses of operation
and maintenance, including taxes.
(3) Notwithstanding
subsection (1) of this section and subject to subsection (4) of this section,
any district may, by a duly adopted resolution of its board, issue and sell
revenue bonds for the purpose of financing betterments and extensions of the
district, including renewable energy facilities or the purchase or sale of
electricity, electrical capacity or renewable energy certificates, but the
amount of revenue bonds so issued shall be limited to the reasonable value of
the betterments and extensions plus an amount not to exceed 10 percent thereof
for administrative purposes. Revenue bonds shall not be issued and sold for the
purpose of acquiring an initial utility system or acquiring property or
facilities owned by another entity that provides electric utility service
unless:
(a) The acquisition is a
voluntary transaction between the district and the other entity that provides
electric utility service; or
(b) The electors within
the district have approved issuance of the bonds by a vote.
(4) Not later than the
30th day prior to a board meeting at which adoption of a resolution under
subsection (3) of this section will be considered, the district shall:
(a) Provide for and give
public notice, reasonably calculated to give actual notice to interested
persons including news media which have requested notice, of the time and place
of the meeting and of the intent of the board to consider and possibly adopt
the resolution; and
(b) Mail to its
customers notice of the time and place of the meeting and of the intent of the
board to consider and possibly adopt the resolution.
(5) Except as otherwise
provided in [subsection (3)(a) of]
this section, any authorizing resolution adopted for the purposes of subsection
(3) of this section shall provide that electors residing within the district
may file a petition with the district asking to have the question of whether to
issue such bonds referred to a vote.
(6) If within 60 days
after adoption of a resolution under subsection (3) of this section the
district receives petitions containing valid signatures of not fewer than five
percent of the electors of the district, the question of issuing the bonds
shall be placed on the ballot at the next date on which a district election may
be held under ORS 255.345 (1).
(7) When petitions
containing the number of signatures required under subsection (6) of this
section are filed with the district within 60 days after adoption of a
resolution under subsection (3) of this section, revenue bonds shall not be
sold until the resolution is approved by a majority of the electors of the
district voting on the resolution.
(8) Any district issuing
revenue bonds may pledge that part of the revenue which the district may derive
from its operations as security for payment of principal and interest thereon
remaining after payment from such revenues of all expenses of operation and
maintenance, including taxes, and consistent with the other provisions of this
chapter.
(9) Prior to any
district board taking formal action to issue and sell any revenue bonds
under this section, the board shall have on file with the secretary of the
district a certificate executed by a qualified engineer that the net annual
revenues of the district, including the property to be acquired or constructed
with the proceeds of the bonds, shall be sufficient to pay the maximum amount
that will be due in any one fiscal year for both principal of and interest on
both the bonds then proposed to be issued and all bonds of the district then
outstanding.
(10) Except as otherwise
provided in [subsection (3)(a) of]
this section, the district shall order an election for the authorization of
revenue bonds to finance the acquisition or construction of an initial utility
system, including the replacement value of the unreimbursed investment of an
investor owned utility in energy efficiency measures and installations within
the proposed district, as early as practicable under ORS 255.345 after filing
the certificate required under subsection (9) of this section. An election [under this subsection] for the
authorization of revenue bonds to finance the acquisition or construction of an
initial utility system shall be held no more than twice in any one calendar
year for any district. In even-numbered years no election shall be held on any
other date than the date of the primary election or general election.
(11) A district may
issue revenue bonds under ORS 288.805 to 288.945 without an election
authorizing the issuance, except that revenue bonds shall not be issued under
ORS 288.805 to 288.945 for the purpose of acquiring an initial utility system
or acquiring property or facilities owned by another entity that provides
electric utility service unless:
(a) The acquisition is a
voluntary transaction between the district and the other entity that provides
electric utility service; or
(b) The electors within
the district have approved issuance of the bonds by a vote.
SECTION 13. ORS 262.005 is amended to read:
262.005. As used in ORS
262.015 to 262.105, unless the context requires otherwise:
(1) “Electric
cooperative” means a cooperative corporation owning and operating an electric
distribution system.
(2) “Joint operating
agency” means an agency organized by three or more cities or people’s utility
districts under the laws of this state for the purposes and according to ORS
262.005 to 262.105.
(3) “Privately owned
electric utility company” means an electric utility operated for profit and
subject to regulation by the Public Utility Commission of Oregon or the
equivalent officer or commission of any other state.
(4) “Utility properties”
means [plants, systems and facilities,
and any enlargement or extension thereof, used for or incidental to the
generation and transmission of electric power and energy,] a plant,
works or other property used for development, generation, storage, distribution
or transmission of electricity. [provided, however,
that it shall not mean] “Utility properties” does not include
facilities for uranium refining, processing or reprocessing.
SECTION 14. ORS 262.015 is amended to read:
262.015. (1) Any three
or more cities or people’s utility districts or combinations thereof, organized
under the laws of this state, may form a joint operating agency to plan,
acquire, construct, own, operate and otherwise promote the development of
utility properties [in this state]
for the generation, [and]
transmission and marketing of [electric
power and energy] electricity, electrical capacity or renewable energy
certificates.
(2) A joint operating
agency may participate with other publicly owned utilities, including other
joint operating agencies, or with electric cooperatives, or with privately owned
electric utility companies, or with any combination thereof, for any purpose
set forth in subsection (1) of this section, whether such agencies or utilities
are organized or incorporated under the laws of this state or any other
jurisdiction. However, no joint operating agency may act alone or as the
managing participant to acquire, construct, own or operate utility properties[, nor may a joint operating agency own more
than 50 percent of any utility property, except combustion turbines].
(3) Joint operating
agencies, cities, people’s utility districts and privately owned utilities, or
combinations thereof, may participate in joint ownership of [thermal generation and transmission] common
facilities in accordance with ORS 225.450 to 225.490 or 261.235 to 261.255.
SECTION 15. ORS 262.075 is amended to read:
262.075. (1) Each joint operating agency shall be a political subdivision
of the State of
(2) A joint operating
agency shall have the power to acquire, hold, sell and dispose of real and
other property, within or without this state, which the board of directors in
its discretion finds reasonably necessary or incident to the generation,
[and] transmission and marketing
of [electric power and energy] electricity,
electrical capacity or renewable energy certificates. However, such an
agency shall not acquire or operate any facilities for the distribution of [electric energy] electricity.
(3) A joint operating
agency shall have the power of eminent domain which it may exercise for the
purpose of acquiring property; however, a joint operating agency shall not
condemn any properties owned by a publicly or privately owned utility which are
being used for the generation or transmission of [electric energy or power] electricity or are being developed
for such purposes with due diligence, except to acquire a right of way to cross
such properties in a manner which will not interfere with the use thereof by
the owner.
(4) A joint operating
agency shall have the power to enter into contracts, leases and other undertakings
considered necessary or proper by its board, including but not limited to
contracts for any term relating to the purchase, sale, interchange, assignment,
allocation, transfer or wheeling of power with the Government of the United
States, or any agency thereof, and with any other municipal corporation or
privately owned utility, or any combination thereof, within or without the
state, and may purchase, deliver or receive power anywhere.
(5) A joint operating
agency shall have the power to borrow money and incur indebtedness, to issue,
sell and assume evidences of indebtedness, to refund and retire any
indebtedness that may exist against the agency or its revenues, and to pledge
any part of its revenues. A joint operating agency may borrow from banks or
other financial institutions such sums on such terms as the board considers
necessary or advisable. A joint operating agency may also issue, sell and
assume bond anticipation notes, refunding bond anticipation notes, or their
equivalent, which shall bear such date or dates, mature at such time or times,
be in such denominations and in such form, be payable in such medium, at such
place or places, and be subject to such terms of redemption, as the board
considers necessary or advisable. The issuance and sale of revenue obligations
by a joint operating agency shall be governed by ORS 262.085.
(6) The joint operating
agency may apply for, accept, receive and expend appropriations, grants, loans,
gifts, bequests and devises in carrying out its functions as provided by law.
SECTION 16. ORS 285C.050 is amended to read:
285C.050. As used in ORS 285C.050 to 285C.250, unless the context
requires otherwise:
(1) “Assessment date”
and “assessment year” have the meanings given those terms in ORS 308.007.
(2) “Authorized business
firm” means an eligible business firm that has been authorized under ORS
285C.140.
(3) “Business firm”
means a person operating or conducting one or more trades or businesses, a
people’s utility district organized under ORS chapter 261 or a joint operating
agency formed under ORS chapter 262, but does not include any other
governmental agency, municipal corporation or nonprofit corporation.
(4) “County average
annual wage” means:
(a) The most recently
available average annual covered payroll for the county in which the enterprise
zone is located, as determined by the Employment Department; or
(b) If the enterprise
zone is located in more than one county, the highest county average annual wage
as determined under paragraph (a) of this subsection.
(5) “Electronic commerce”
means engaging in commercial or retail transactions predominantly over the
Internet or a computer network, utilizing the Internet as a platform for
transacting business, or facilitating the use of the Internet by other persons
for business transactions, and may be further defined by the Economic and
Community Development Department by rule.
(6) “Eligible business
firm” means a firm engaged in an activity described under ORS 285C.135 that may
file an application for authorization under ORS 285C.140.
(7) “Employee” means a
person who works more than 32 hours per week, but does not include a person
with a temporary or seasonal job or a person hired solely to construct
qualified property.
(8) “Enterprise zone”
means one of the 30 areas designated or terminated and redesignated by order of
the Governor under ORS 284.160 (1987 Replacement Part) before October 3, 1989,
one of the areas designated by the Director of the Economic and Community
Development Department under ORS 285C.080, a federal enterprise zone area
designated under ORS 285C.085, an area designated under ORS 285C.250 or a
reservation enterprise zone designated under ORS 285C.306.
(9) “Federal enterprise
zone” means any discrete area wholly or partially within this state that is
designated as an empowerment zone, an enterprise community, a renewal community
or some similar designation for purposes of improving the economic and
community development of the area.
(10) “First-source
hiring agreement” means an agreement between an authorized business firm and a
publicly funded job training provider whereby the provider refers qualified
candidates to the firm for new jobs and job openings in the firm.
(11) “In service” means
being used or occupied or fully ready for use or occupancy for commercial
purposes consistent with the intended operations of the business firm as
described in the application for authorization.
(12) “Modification”
means modernization, renovation or remodeling of an existing building,
structure or real property machinery or equipment.
(13) “New employees
hired by the firm”:
(a) Includes only those
employees of an authorized business firm engaged for a majority of their time
in eligible operations.
(b) Does not include
individuals employed in a job or position that:
(A) Is created and first
filled after December 31 of the first tax year in which qualified property of
the firm is exempt under ORS 285C.175;
(B) Existed prior to the
submission of the relevant application for authorization; or
(C) Is performed
primarily at a location outside of the enterprise zone.
(14) “Publicly funded
job training provider” includes but is not limited to a community college, a
service provider under the federal Workforce Investment Act Title I-B (29
U.S.C. 2801 et seq.), or a similar program.
(15) “Qualified business
firm” means a business firm described in ORS 285C.200, the qualified property
of which is exempt from property tax under ORS 285C.175.
(16) “Qualified property”
means property described under ORS 285C.180.
(17) “Rural enterprise
zone” means:
(a) An enterprise zone
located in an area of this state in which an urban enterprise zone could not be
located; or
(b) A reservation
enterprise zone designated under ORS 285C.306.
(18) “Sparsely populated
county” means a county with a density of 100 or fewer persons per square mile,
based on the most recently available population figure for the county from the
Portland State University Center for Population Research and Census.
(19) “Sponsor” means:
(a) The city, county or
port, or any combination of cities, counties or ports, that received approval
of an enterprise zone under ORS 284.150 and 284.160 (1987 Replacement Part),
under ORS 285C.065 and 285C.075, under ORS 285C.085 or under ORS 285C.250;
(b) The tribal
government, in the case of a reservation enterprise zone; or
(c) A city, county or
port that joined the enterprise zone through a boundary change under ORS
285C.115 (7) or a port that joined the enterprise zone under ORS 285C.068.
(20) “Tax year” has the
meaning given that term in ORS 308.007.
(21) “Urban enterprise
zone” means an enterprise zone in a metropolitan statistical area, as defined
by the most recent federal decennial census, that is
located inside a regional or metropolitan urban growth boundary.
(22) “Year” has the
meaning given that term in ORS 308.007.
SECTION 17. ORS 288.805 is amended to read:
288.805. As used in ORS
288.805 to 288.945:
(1) “Credit enhancement
device” means a letter of credit, line of credit, municipal bond insurance
policy or other device or facility used to enhance the creditworthiness or
marketability of municipal bonds.
(2) “Facilities” means
real property, including land, streets and other improvements, betterments,
appurtenances, structures and fixtures, and personal property which is
functionally related and subordinate to real property.
(3) “Municipality” means
the political subdivisions in or of this state, municipal, quasi-municipal and
public corporations and intergovernmental entities organized under ORS chapter
190. [“Municipality” does not include a
people’s utility district organized under the authority of ORS chapter 261.]
(4) “Private negotiated
sale” means the sale of revenue bonds for which the rate or rates and other
terms and conditions are negotiated between the public body and the purchaser.
(5) “Public body” means
the State of
(6) “Revenue bonds”
means bonds issued for any public purpose, which are secured by revenues either
pledged or designated to be payable for such public purpose of the public body
and which are sold under the authority granted by ORS 288.805 to 288.945.
Nothing in ORS 288.805 to 288.945 is intended to permit a public body to impose
fees and charges that are not otherwise authorized by law.
(7) “Revenues” means all
fees, tolls, excise taxes, assessments, property taxes and all other taxes of
whatever kind or nature, rates, charges, rentals and all other income and
receipts of whatever kind or character derived by or to which a public body is
entitled from the operation, sale or use of facilities, projects, utilities or
systems owned or operated by the public body and other revenues legally
available to be pledged to secure the revenue bonds or to be designated as revenues
from which the revenue bonds shall be payable.
Approved by the Governor August 3, 2007
Filed in the office of Secretary of State August 3, 2007
Effective date January 1, 2008
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