74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 2300
A-Engrossed
House Bill 2707
Ordered by the House February 22
Including House Amendments dated February 22
Sponsored by COMMITTEE ON REVENUE
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Establishes Oregon Rainy Day Fund. Increases amount of estimate
of revenues that will be received from corporate income and
excise taxes for biennium beginning July 1, 2005. Requires
deposit into fund of difference between amount actually collected
and amount estimated after close of 2005 regular session.
{ + Establishes Education Capital Construction Account.
Specifies that moneys in account may be used only for capital
construction projects for public education. Requires that if
moneys in Oregon Rainy Day Fund equal 10 percent of General Fund
revenues collected during prior biennium, moneys that otherwise
would have been transferred to Oregon Rainy Day Fund be
transferred to Education Capital Construction Account. + }
Declares emergency, effective on passage.
A BILL FOR AN ACT
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 Oregon:
SECTION 1. { + (1) The Oregon Rainy Day Fund is established as
an account in the General Fund.
(2) The Legislative Assembly may appropriate moneys from the
Oregon Rainy Day Fund only if:
(a) 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; or
(b) The appropriation is approved by three-fifths of the
members serving in each house of the Legislative Assembly and the
Governor declares an emergency.
(3) The Legislative Assembly may not appropriate more than
two-thirds of the amount in the Oregon Rainy Day Fund for any one
biennium. + }
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 deposited in the Oregon Rainy Day
Fund established in section 1 of this 2007 Act.
(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 deposited in the Oregon Rainy
Day Fund established in section 1 of this 2007 Act. + }
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) 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 from the ending balance to the Oregon Rainy Day Fund
established in section 1 of this 2007 Act. If the ending balance
does not equal or exceed one percent of the amount of General
Fund appropriations, the entire 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. { + Notwithstanding section 4 of this 2007 Act, if
the moneys in the Oregon Rainy Day Fund equal 10 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 transferred to the Education
Capital Construction Account established in section 7 of this
2007 Act. + }
SECTION 7. { + The Education Capital Construction Account is
established as an account in the General Fund. The account shall
consist of moneys transferred to the account under section 6 of
this 2007 Act. Moneys in the account may be used only for capital
construction projects for public education. + }
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 on its
passage. + }
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