75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
HA to HB 2105
 
LC 562/HB 2105-10
 
                       HOUSE AMENDMENTS TO
                         HOUSE BILL 2105
 
                     By COMMITTEE ON REVENUE
 
                              May 6
 
  On page 1 of the printed bill, line 2, after 'ORS' delete the
rest of the line and insert '286A.001, 286A.100, 287A.001 and
456.680; and'.
  In line 7, after 'agency' insert a colon and delete the rest of
the line and line 8 and insert:
  ' (a) May bid for, purchase, hold, cause to be held in trust
and remarket bonds issued by the State Treasurer on behalf of the
related agency.
  ' (b) May not, except as provided in section 6 (2) of this 2009
Act, bid for, purchase, hold, cause to be held in trust and
remarket bonds issued by the State Treasurer on behalf of another
state agency.'.
  Delete lines 15 and 16 and insert:
  ' (a) Deposited in a fund or account in the State Treasury for
the use of the related agency or held by a trustee of the related
agency; and
  ' (b) Appropriated or otherwise legally available to the
related agency for repayment of the bonds or for payment'.
  Delete lines 19 through 23 and insert:
  ' (4) Within two business days after using the authority to
purchase bonds under this section, the State Treasurer shall
notify the legislative revenue committees, when the Legislative
Assembly is in regular or special session, or the Legislative
Revenue Officer and the Legislative Fiscal Officer, during the
interim, of:
  ' (a) The amount and status of the bonds purchased by or on
behalf of a related agency under this section; and
  ' (b) The current or anticipated interest rates applicable to
the bonds.
  ' (5) Not later than February 1 of each year, the State
Treasurer shall submit a report to the legislative revenue
committees, when the Legislative Assembly is in regular or
special session, or to the Legislative Revenue Officer and the
Legislative Fiscal Officer, during the interim, describing:
  ' (a) The amount and status of bonds purchased during the
previous year by or on behalf of related agencies under this
section; and
  ' (b) The savings realized or costs incurred by related
agencies from the purchase of bonds under this section.'.
  On page 2, after line 1, insert:
  '  { +  SECTION 5. + }  { + Section 6 of this 2009 Act is added
to and made a part of ORS 293.701 to 293.820. + }
  '  { +  SECTION 6. + }  { + (1) As used in this section:
  ' (a) 'Related agency' has the meaning given that term in ORS
286A.001.
  ' (b) 'State government' has the meaning given that term in ORS
174.111.
  ' (2) If the State Treasurer, acting as investment officer, or
a trustee, investing moneys for a related agency, purchases or
 
acquires bonds issued by state government, the purchase or
acquisition does not cancel or extinguish the bonds. + }
  '  { +  SECTION 7. + } ORS 286A.001 is amended to read:
  ' 286A.001. As used in this chapter:
  ' (1) 'Agreement for exchange of interest rates' means a
contract, or an option or forward commitment to enter into a
contract, for the exchange of interest rates that provides for:
  ' (a) Payments based on levels of or changes in interest rates;
or
  ' (b) Provisions to hedge payment, rate, spread or similar
exposure including, but not limited to, an interest rate floor or
cap or an option, put or call.
  ' (2) 'Bond':
  ' (a) Means a contractual undertaking or instrument of the
State of Oregon to repay borrowed moneys.
  ' (b) Does not mean a financing agreement, as defined in ORS
283.085, if the principal amount of the agreement is $100,000 or
less, or a credit enhancement device.
  ' (3) 'Counterparty' means an entity with whom the State of
Oregon enters into an agreement for exchange of interest rates.
  ' (4) 'Credit enhancement device':
  ' (a) Means a letter of credit, line of credit, standby bond
purchase agreement, bond insurance policy, reserve surety bond or
other device or facility used to enhance the creditworthiness,
liquidity or marketability of bonds or agreements for the
exchange of interest rates; and
  ' (b) Does not mean a bond.
  ' (5) 'Credit enhancement device fee' means a payment required
to be made to the provider of a credit enhancement device
securing a bond or securing an agreement for the exchange of
interest rates.
  ' (6) 'General obligation bond' means a bond that constitutes
indebtedness of the state under section 7, Article XI of the
Oregon Constitution, and that is exempt from the $50,000
limitation on indebtedness set forth in that section.
  '  { +  (7) 'Operative document' means a bond declaration,
trust agreement, indenture, security agreement or other document
in which the State of Oregon pledges property as security for an
obligation, as defined in ORS 286A.100. + }
  '  { - (7) - }   { + (8) + } 'Refunding bond' means a bond of
the State of Oregon that is issued to refund another bond,
regardless of whether the refunding is on a current, advance,
forward delivery, synthetic or other basis.
  '  { - (8) - }   { + (9) + } 'Related agency' means the state
agency that requests the State Treasurer to issue bonds pursuant
to ORS 286A.025 or for which the State Treasurer has issued
bonds.
  '  { - (9) - }   { + (10) + } 'Related bond' means a bond for
which the State of Oregon enters into an agreement for exchange
of interest rates.
  '  { - (10) - }   { + (11) + } 'Revenue' means all fees, tolls,
excise taxes, assessments, property taxes and other taxes, rates,
charges, rentals and other income or receipts derived by a state
agency or to which a state agency is entitled.
  '  { - (11) - }   { + (12) + } 'Revenue bond' means a bond of
the State of Oregon that is not a general obligation bond.
  '  { - (12) - }   { + (13) + } 'State agency':
  ' (a) Includes a statewide elected officer, board, commission,
department, division, authority or other entity, without regard
to the designation given to the entity, that is within state
government, as defined in ORS 174.111; and
  ' (b) Does not include:
  ' (A) A statewide elected judge;
  ' (B) The State Treasurer;
  ' (C) A local government, as defined in ORS 174.116;
  ' (D) The Oregon Health and Science University;
  ' (E) A special government body, as defined in ORS 174.117,
except to the extent a special government body must be considered
a state agency in order to achieve the purposes of Article XI-K
of the Oregon Constitution; or
  ' (F) A semi-independent state agency listed in ORS
  { - 182.451, - }  182.454, 377.835 or 674.305, or any other
state agency denominated by statute as a semi-independent state
agency.
  '  { - (13) - }   { + (14) + } 'Termination payment' means the
amount payable under an agreement for exchange of interest rates
by one party to another party as a result of the termination, in
whole or part, of the agreement prior to the expiration of the
stated term.
  '  { +  SECTION 8. + } ORS 286A.100 is amended to read:
  ' 286A.100. As used in this section and ORS 286A.102:
  ' (1) 'Obligation' means:
  ' (a) A bond;
  ' (b) An agreement for exchange of interest rates with the
State of Oregon; or
  ' (c) A credit enhancement device given as additional security
for a bond.
  '  { - (2) 'Operative document' means a bond declaration, trust
agreement, indenture, security agreement or other document in
which the State of Oregon pledges property as security for an
obligation. - }
  '  { - (3) - }   { + (2) + } 'Pledge' means:
  ' (a) To create a security interest in or a lien on property to
secure payment or performance of an obligation, by mortgaging,
assigning or encumbering property or by creating a security
interest in property by any other manner.
  ' (b) A security interest in or lien on property created under
paragraph (a) of this subsection.
  '  { - (4) - }   { + (3) + } 'Pledgee' means:
  ' (a) A trustee for the holder of an obligation; or
  ' (b) The holder of an obligation if a trustee was not
appointed in the operative document or if the operative document
authorizes the holder of an obligation to foreclose the lien of a
pledge and enforce the remedies consequent to the pledge in lieu
of the trustee.
  '  { - (5) - }   { + (4) + } 'Property' means:
  ' (a) Real or personal property, tangible or intangible,
whether owned when the pledge is made or acquired subsequently to
the time the pledge is made; and
  ' (b) Revenues, contract rights, receivables or securities.'.
  In line 2, delete '5' and insert '9'.
  On page 3, line 15, delete '6' and insert '10'.
  Delete lines 29 through 40 and insert:
  '  { +  SECTION 11. + }  { + (1) Section 2 of this 2009 Act
applies to bonds purchased by a related agency or the State
Treasurer:
  ' (a) On or after the effective date of this 2009 Act; and
  ' (b) Before the effective date of this 2009 Act if the related
agency or the State Treasurer purchased the bonds and the related
agency did not elect in writing to cancel or extinguish the
bonds.
  ' (2) Section 4 of this 2009 Act applies to bonds purchased by
a public body:
  ' (a) On or after the effective date of this 2009 Act; and
  ' (b) Before the effective date of this 2009 Act if the public
body acted within its authority to purchase the bonds and did not
elect in writing to cancel or extinguish the bonds.
  ' (3) Section 6 of this 2009 Act applies to bonds purchased by
the State Treasurer or a trustee on or after the effective date
of this 2009 Act. + } ' .
  In line 41, delete '8' and insert '12'.
                         ----------