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 3646
Senate Bill 696
Sponsored by Senator WALKER
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 Article XI-D bonds subject
to bond amounts issuance limitation. Establishes Article XI-D
Bond Fund, Article XI-D Bond Administration Fund and Renewable
Energy Fund. Authorizes bond proceeds or interest to be deposited
in funds and expended to finance state acquisition and operation
of renewable energy electricity generation facilities and
transmission facilities.
Establishes procedures for transfer and appropriation of
amounts in funds and for debt service.
A BILL FOR AN ACT
Relating to electricity; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 8 of this 2007 Act are added to
and made a part of ORS chapter 286. + }
SECTION 2. { + As used in sections 2 to 8 of this 2007 Act:
(1) 'Article XI-D bonds' means general obligation bonds or
other general obligation indebtedness issued or incurred under
the authority of Article XI-D of the Oregon Constitution.
(2) 'Bond administration fund' means the Article XI-D Bond
Administration Fund established under section 5 of this 2007 Act.
(3) 'Bond fund' means the Article XI-D Bond Fund established
under section 4 of this 2007 Act.
(4) 'Bond-related costs' means:
(a) The costs of paying the principal of, the interest on and
the premium, if any, on Article XI-D bonds;
(b) The costs and expenses of issuing, administering and
maintaining Article XI-D bonds including, but not limited to,
redeeming Article XI-D bonds and paying amounts due in connection
with bond insurance, other credit enhancements or the
administrative costs and expenses of the State Treasurer and the
Oregon Department of Administrative Services, including costs of
consultants or advisers retained by the State Treasurer or the
department for the purpose of issuing, administering or
maintaining Article XI-D bonds;
(c) Capitalized interest on Article XI-D bonds;
(d) Costs of funding reserves for Article XI-D bonds, including
costs of surety bonds and similar instruments;
(e) Rebates or penalties due the United States Government in
connection with Article XI-D bonds; and
(f) Other costs or expenses that the Director of the Oregon
Department of Administrative Services determines are necessary or
desirable in connection with issuing, administering or
maintaining Article XI-D bonds. + }
SECTION 3. { + (1) Article XI-D bonds are a general obligation
of the State of Oregon and must contain a direct promise on
behalf of the State of Oregon to pay the principal of, the
interest on and the premium, if any, on the Article XI-D bonds.
The State of Oregon shall pledge its full faith and credit and
taxing power to pay Article XI-D bonds, except that the ad
valorem taxing power of the State of Oregon may not be pledged to
pay Article XI-D bonds.
(2) The State Treasurer, with the concurrence of the Director
of the Oregon Department of Administrative Services, may issue
Article XI-D bonds:
(a) Subject to the limit on bond issuance established for the
particular biennium in ORS 286.505 to 286.545 and at the request
of the Director of the State Department of Energy, for the
purpose of financing the acquisition and operation of renewable
energy electricity generation facilities and transmission
facilities, plus an amount determined by the State Treasurer to
pay estimated bond-related costs.
(b) To refund Article XI-D bonds. The amount of Article XI-D
bonds issued under this paragraph may not exceed the estimated
costs of paying, redeeming or defeasing the refunded bonds, plus
an amount determined by the State Treasurer to pay estimated
bond-related costs.
(3) The State Treasurer shall transfer the net proceeds of
Article XI-D bonds issued for the purpose described in subsection
(2)(a) of this section to the State Department of Energy for
deposit in the Renewable Energy Fund established under section 6
of this 2007 Act. + }
SECTION 4. { + (1) The Article XI-D Bond Fund is established
in the State Treasury, separate and distinct from the General
Fund. Amounts in the bond fund may be invested as provided in
ORS 293.701 to 293.820, and interest earned on the bond fund must
be credited to the bond fund. Amounts credited to the bond fund
are continuously appropriated to the Oregon Department of
Administrative Services for the purpose of paying, when due, the
principal of, the interest on and the premium, if any, on
outstanding Article XI-D bonds. The department shall deposit in
the bond fund:
(a) Capitalized or accrued interest on Article XI-D bonds;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond fund; and
(c) Reserves established for the payment of Article XI-D bonds.
(2) The department may create separate accounts in the bond
fund for reserves and debt service for each series of Article
XI-D bonds. + }
SECTION 5. { + (1) The Article XI-D Bond Administration Fund
is established in the State Treasury, separate and distinct from
the General Fund. Amounts in the bond administration fund may be
invested as provided in ORS 293.701 to 293.820, and interest
earned on the bond administration fund must be credited to the
bond administration fund. Amounts credited to the bond
administration fund are continuously appropriated to the Oregon
Department of Administrative Services for payment of bond-related
costs. The department shall credit to the bond administration
fund:
(a) Proceeds of Article XI-D bonds that were issued to pay
bond-related costs;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond administration fund;
and
(c) Amounts transferred from the Renewable Energy Fund by the
State Department of Energy as provided in section 6 of this 2007
Act.
(2) The department may create separate accounts in the bond
administration fund. + }
SECTION 6. { + (1) The Renewable Energy Fund is established in
the State Treasury, separate and distinct from the General Fund.
Amounts in the fund may be invested as provided in ORS 293.701 to
293.820, and interest earned on the fund must be credited to the
fund. Amounts credited to the fund are continuously appropriated
to the State Department of Energy for the purpose described in
section 3 (2)(a) of this 2007 Act and for the purpose of paying
bond-related costs. The department shall deposit in the fund:
(a) The net proceeds of Article XI-D bonds transferred pursuant
to section 3 (3) of this 2007 Act;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the fund;
(c) Gifts, grants or contributions received by the department
for the purpose described in section 3 (2)(a) of this 2007 Act;
and
(d) Moneys received as repayment of, as a return on or in
exchange for the grant or loan of net proceeds of Article XI-D
bonds.
(2) The department may create separate accounts in the
Renewable Energy Fund as appropriate for the management of moneys
in the fund.
(3) The department and any other state agency or other entity
receiving or holding net proceeds of Article XI-D bonds shall, at
the direction of the Oregon Department of Administrative
Services, take action necessary to maintain the excludability of
interest on Article XI-D bonds from gross income under the
Internal Revenue Code.
(4) The department shall transfer to the Article XI-D Bond
Administration Fund the unexpended and uncommitted amounts
remaining in the Renewable Energy Fund if:
(a) Unexpended funds that are not contractually committed to a
particular purpose remain in the Renewable Energy Fund on the
last day of the biennium; and
(b) Article XI-D bonds will be outstanding in the next
biennium.
(5) The department may adopt rules to carry out this section,
including procedures for distributing and monitoring the use of
moneys from the Renewable Energy Fund. + }
SECTION 7. { + (1) In accordance with the applicable
provisions of this chapter and ORS chapter 288, Article XI-D
bonds may:
(a) Be sold at a competitive or negotiated sale;
(b) Bear interest that is includable or excludable from gross
income under the Internal Revenue Code; and
(c) Be sold on terms approved by the State Treasurer, including
terms related to the time of sale, the issuance of Article XI-D
bonds in series, the maturity of each series and the interest
borne by each series of Article XI-D bonds.
(2) Subject to the approval of the State Treasurer, the
Director of the Oregon Department of Administrative Services may:
(a) Acquire municipal bond insurance, a letter of credit, a
line of credit, surety bonds or another credit enhancement device
for Article XI-D bonds; and
(b) Enter into related agreements. + }
SECTION 8. { + For each biennium in which Article XI-D bonds
will be outstanding, the Oregon Department of Administrative
Services shall include in the Governor's budget request to the
Legislative Assembly an amount that, when added to the amount on
deposit in the Article XI-D Bond Fund and the Article XI-D Bond
Administration Fund, is sufficient to pay the bond-related costs
that are scheduled to come due in the biennium. + }
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