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 2977
Senate Bill 7
Sponsored by Senator COURTNEY; Senators ATKINSON, BROWN, BURDICK,
CARTER, GORDLY, MONNES ANDERSON, MONROE, MORSE, WINTERS
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 as
introduced.
Authorizes State Treasurer to issue revenue bonds to be paid
from moneys deposited in Oregon State Capitol Foundation Fund.
Specifies that bond proceeds are to be used to pay for remodel of
Senate and House wings of Oregon State Capitol.
Appropriates moneys to Legislative Administration Committee
from General Fund to pay bond-related costs incurred in biennium.
Limits expenditures of committee from specific funds.
A BILL FOR AN ACT
Relating to revenue bonds for wing remodel of Oregon State
Capitol; creating new provisions; amending ORS 276.003;
appropriating money; and limiting expenditures.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 5 of this 2007 Act, '
bond-related costs' means:
(1) The costs and expenses of issuing and administering bonds
under sections 1 to 5 of this 2007 Act, including but not limited
to:
(a) Paying or redeeming the bonds;
(b) Paying amounts due in connection with credit enhancement or
a reserve instrument;
(c) Paying the administrative costs and expenses of the State
Treasurer and the Legislative Assembly, including the cost of
consultants, attorneys and advisers retained by the State
Treasurer or the Legislative Assembly for the bonds; and
(d) Any other costs or expenses that the State Treasurer or the
Legislative Administration Committee determines are necessary or
desirable in connection with issuing and administering the bonds;
(2) The cost of funding bond reserves;
(3) Capitalized interest for the bonds; and
(4) Rebates or penalties due to the United States in connection
with the bonds. + }
SECTION 2. { + (1) At the request of the Legislative
Administration Committee, the State Treasurer shall issue, sell
and deliver revenue bonds in one or more series at different
times during the biennium beginning July 1, 2007, under this
section and the applicable provisions of ORS chapters 286 and 288
for the purpose of paying for the remodel of the Senate and House
wings of the Oregon State Capitol. The State Treasurer shall
determine the terms and conditions of revenue bonds issued under
this section.
(2) The State Treasurer may issue the revenue bonds authorized
by this section on one or more dates selected by mutual agreement
of the State Treasurer and the Legislative Administration
Committee for the purpose described in subsection (8) of this
section.
(3) In connection with the issuance of revenue bonds under this
section, the State Treasurer, or the Legislative Administration
Committee as requested by the State Treasurer, may:
(a) Establish maturity schedules, interest rates, including
fixed or adjustable interest rate terms, tender or redemption
provisions, provisions for capitalized interest and any other
terms consistent with the requirements for revenue bonds issued
under this section;
(b) Provide that revenue bonds be issued in different series
and that each series be secured by a lien on and pledge of all or
a portion of the moneys deposited in the Oregon State Capitol
Foundation Fund that are:
(A) Superior to, subordinate to or on parity with the lien of
the pledge securing other series of revenue bonds issued under
this section; and
(B) Superior to subsequent claims and liens in the moneys
deposited in the Oregon State Capitol Foundation Fund;
(c) Obtain credit enhancement to provide additional security or
liquidity for revenue bonds issued under this section or to
provide funding for all or a portion of any debt service reserve
account established with respect to the bonds. The state's
obligations under any credit enhancement are payable from the
moneys deposited in the Oregon State Capitol Foundation Fund that
are pledged to secure payment of the revenue bonds;
(d) Appoint and enter into appropriate contracts with bond or
disclosure counsel in accordance with ORS 288.523 and a bond
trustee and retain the services of and enter into appropriate
contracts for financial consultants, underwriters, paying agents
and other professional service providers in connection with the
issuance and administration of the revenue bonds;
(e) Enter into security documents with a bond trustee and
deposit funds with the bond trustee for the benefit of
bondholders and the providers of credit enhancement;
(f) Enter into covenants for the benefit of bondholders or the
providers of credit enhancement or to improve the security of
bondholders or providers of credit enhancement. Covenants may
include, but are not limited to, covenants regarding the issuance
of additional revenue bonds and the priority of payment of the
revenue bonds;
(g) Establish one or more debt service reserve accounts, funded
with proceeds from the issuance and sale of the revenue bonds or
from moneys deposited in the Oregon State Capitol Foundation
Fund;
(h) Establish funds or accounts that are necessary or desirable
to secure and pay for the revenue bonds or for other reasonably
related purposes; and
(i) Apply the proceeds of the revenue bonds to pay bond-related
costs.
(4) Revenue bonds issued under this section are payable from
the moneys deposited in the Oregon State Capitol Foundation Fund.
The State Treasurer, with the approval of the Legislative
Administration Committee, may irrevocably pledge and assign all
or a portion of the moneys deposited in the Oregon State Capitol
Foundation Fund, to secure revenue bonds or credit enhancements.
(5) Revenue bonds issued under this section do not constitute a
debt or general obligation of this state, the Legislative
Assembly or a political subdivision of this state but are secured
solely by the moneys deposited in the Oregon State Capitol
Foundation Fund, by amounts in a debt service reserve account
established with respect to revenue bonds issued under this
section or by a credit enhancement obtained for the revenue bonds
issued under this section.
(6) The State Treasurer and the Legislative Assembly have no
obligation to pay bond-related costs except as provided in this
section. A holder of revenue bonds or other similar obligations
issued under this section does not have the right to compel the
exercise of the taxing power of the state to pay bond-related
costs.
(7)(a) The holders of revenue bonds issued under this section,
upon the issuance of the revenue bonds, have a perfected lien on
the moneys deposited in the Oregon State Capitol Foundation Fund
that are pledged and assigned to the payment of the revenue
bonds. The lien and pledge are valid and binding from the date of
issuance of the first series of revenue bonds and are
automatically perfected without physical delivery, filing or
other act. The lien and pledge are superior to subsequent claims
or liens on the moneys deposited in the Oregon State Capitol
Foundation Fund.
(b) Notwithstanding paragraph (a) of this subsection, the State
Treasurer shall establish, in the security documents for a series
of revenue bonds issued under this section, the priority of the
related series among the liens perfected under paragraph (a) of
this subsection on the moneys deposited in the Oregon State
Capitol Foundation Fund.
(8) Revenue bonds may be issued under this section during the
biennium beginning July 1, 2007, in an aggregate principal amount
that produces net proceeds in the amount of $___ million to pay
for the remodel of the Senate and House wings of the Oregon State
Capitol, plus an amount of proceeds, determined by the State
Treasurer, to pay bond-related costs. A series of revenue bonds
issued under this section may not mature more than 30 years from
the date of issuance of the series of bonds.
(9) As long as any revenue bonds issued under this section are
outstanding, the provisions of this section and the provisions of
a security document related to the revenue bonds are deemed to be
contracts between the state and holders of the revenue bonds.
The state:
(a) May not create a lien, encumbrance or any other obligation
on the moneys deposited in the Oregon State Capitol Foundation
Fund that are pledged and assigned to the payment of the revenue
bonds that is superior to the liens of the pledges authorized by
subsection (7) of this section; and
(b) May not give force or effect to a statute or initiative or
referendum measure approved by the electors of the state, if
doing so would unconstitutionally impair existing covenants made
with the holders of existing revenue bonds or would
unconstitutionally impair other obligations or agreements
regarding the security of revenue bonds to which the moneys
deposited in the Oregon State Capitol Foundation Fund are pledged
and assigned.
(10) The State Treasurer, in consultation with the Legislative
Administrator, on behalf of the Legislative Administration
Committee, may issue, sell and deliver refunding bonds in the
manner provided for revenue bonds in this section.
(11) The State Treasurer and the Legislative Administrator, on
behalf of the Legislative Administration Committee, shall consult
with the Oregon Department of Administrative Services regarding
the issuance, sale and administration of the revenue bonds issued
under this section. + }
SECTION 3. { + (1) The Wing Remodel Bond Fund is established
in the State Treasury separate and distinct from the General
Fund. The net proceeds from the sale of revenue bonds issued
under section 2 (8) of this 2007 Act must be credited to the Wing
Remodel Bond Fund. Investment earnings received on moneys in the
Wing Remodel Bond Fund must be credited to the fund.
(2) Moneys in the Wing Remodel Bond Fund are continuously
appropriated to the Legislative Administration Committee for the
purpose of paying for the remodel of the Senate and House wings
of the Oregon State Capitol. + }
SECTION 4. { + (1) The Wing Remodel Bond Debt Service Fund is
established in the State Treasury separate and distinct from the
General Fund. The Wing Remodel Bond Debt Service Fund consists
of:
(a) An amount from the moneys deposited in the Oregon State
Capitol Foundation Fund credited by the State Treasurer that is
necessary in a fiscal year, as determined by the Legislative
Administration Committee in consultation with the State
Treasurer, to pay the bond-related costs scheduled to be paid in
that fiscal year on the revenue bonds issued under section 2 of
this 2007 Act;
(b) Any funds appropriated or allocated to the Wing Remodel
Bond Debt Service Fund; and
(c) Investment earnings received on moneys in the Wing Remodel
Bond Debt Service Fund.
(2) Moneys in the Wing Remodel Bond Debt Service Fund are
continuously appropriated to the Legislative Administration
Committee for the purpose of paying, when due, the bond-related
costs on outstanding revenue bonds, for funding revenue bond
reserves and for paying amounts due in connection with any
instrument authorized by section 2 (3)(c) of this 2007 Act.
(3) The Legislative Administration Committee, in consultation
with the State Treasurer, shall use amounts in the Wing Remodel
Bond Debt Service Fund to pay, when due, the bond-related costs
on the revenue bonds, to fund reserves and to pay amounts due
under instruments authorized by section 2 (3)(c) of this 2007
Act.
(4) If the moneys deposited in the Oregon State Capitol
Foundation Fund are not sufficient to pay the bond-related costs
due to be paid in a fiscal year, the Legislative Administration
Committee, in consultation with the State Treasurer, shall make
payments in that fiscal year according to the relative priority
of revenue bonds secured by the moneys deposited in the Oregon
State Capitol Foundation Fund. + }
SECTION 5. { + (1) The Wing Remodel Bond Administration Fund
is established in the State Treasury separate and distinct from
the General Fund. The Wing Remodel Bond Administration Fund
consists of:
(a) The amount of revenue bond proceeds remaining after
depositing the net proceeds in the Wing Remodel Bond Fund;
(b) The proceeds of revenue bonds issued to pay bond-related
costs;
(c) Any funds appropriated or allocated to the Wing Remodel
Bond Administration Fund; and
(d) Investment earnings received on moneys in the Wing Remodel
Bond Administration Fund.
(2) Moneys in the Wing Remodel Bond Administration Fund are
continuously appropriated to the Legislative Assembly for paying
bond-related costs during the term of revenue bonds issued under
section 2 of this 2007 Act.
(3) The Legislative Assembly, in consultation with the State
Treasurer, may use amounts in the Wing Remodel Bond
Administration Fund to pay bond-related costs during the term of
revenue bonds issued under section 2 of this 2007 Act. Amounts in
the fund must be disbursed upon the written request of the
Legislative Administrator, on behalf of the Legislative
Administration Committee. + }
SECTION 6. { + Notwithstanding any other law limiting
expenditures, the amount of $___ million is established for the
biennium beginning July 1, 2007, as the maximum limit for the
purpose of paying for the remodel of the Senate and House wings
of the Oregon State Capitol by the Legislative Administration
Committee from the Wing Remodel Bond Fund established in section
3 of this 2007 Act. + }
SECTION 7. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2007, as the maximum limit for payment of
expenses by the Legislative Administration Committee from the
Wing Remodel Bond Debt Service Fund established in section 4 of
this 2007 Act, which expenses are payments of the bond-related
costs on outstanding revenue bonds, for funding revenue bond
reserves and for paying amounts due in connection with any
instrument authorized by section 2 (3)(c) of this 2007 Act. + }
SECTION 8. { + Notwithstanding any other law limiting
expenditures, the amount of $1 is established for the biennium
beginning July 1, 2007, as the maximum limit for payment of
expenses by the Legislative Administration Committee from the
Wing Remodel Bond Administration Fund established in section 5 of
this 2007 Act, which expenses are bond-related costs associated
with revenue bonds issued under section 2 of this 2007 Act. + }
SECTION 9. ORS 276.003 is amended to read:
276.003. (1) There is created in the General Fund of the State
Treasury a State Capitol Operating Account. Moneys credited to
the account are appropriated continuously to the Legislative
Administration Committee to pay the expenses of operating,
maintaining, protecting { + , remodeling + } and insuring the
State Capitol and to reimburse the Oregon Department of
Administrative Services for a share of the expenses of ground
maintenance, utilities and other necessary expenses.
(2) There is established the Oregon State Capitol Foundation
Fund in the State Capitol Operating Account of the General Fund
established under subsection (1) of this section. All moneys
received by the Legislative Administration Committee allocated to
the Oregon State Capitol Foundation shall be credited to the
Oregon State Capitol Foundation Fund. All moneys credited to the
Oregon State Capitol Foundation Fund are continuously
appropriated to the foundation for the purposes of ORS 173.500.
(3) The Legislative Administration Committee may on behalf of
the State of Oregon solicit and accept gifts, grants and
donations from public and private sources for the purposes set
out in ORS 276.002. Such gifts, grants and donations shall be
deposited by the committee in separate, appropriate trust
accounts until such time as required to meet the obligations for
which the gifts, grants or donations were intended. When so
required, the committee shall deposit the amounts in the Oregon
State Capitol Foundation Fund, subject to any limitations imposed
by the donors.
(4) A gift or donation to the Legislative Administration
Committee or to the Oregon State Capitol Foundation is a gift or
donation to the State of Oregon.
SECTION 10. { + In addition to and not in lieu of other
appropriation, there is appropriated to the Legislative
Administration Committee, for the biennium beginning July 1,
2007, out of the General Fund, the amount of $___ for deposit in
the Oregon State Capitol Foundation Fund for the purpose of
paying the bond-related costs of revenue bonds issued under
section 2 of this 2007 Act to finance the remodeling of the
Senate and House wings of the Oregon State Capitol. + }
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