75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1806
A-Engrossed
Senate Bill 334
Ordered by the Senate April 21
Including Senate Amendments dated April 21
Sponsored by Senator WALKER (Presession filed.)
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.
Authorizes State Treasurer to issue Article XI-D bonds, subject
to bond amounts issuance limitation, { - to finance state
acquisition and operation of renewable energy electricity
generation facilities and transmission facilities - } { + for
any purpose specified in Article XI-D of Oregon Constitution + }.
Establishes Article XI-D Bond Fund, Article XI-D Bond
Administration Fund and Renewable Energy Fund.
Continuously appropriates moneys from funds.
A BILL FOR AN ACT
Relating to bonds for electricity; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 7 of this 2009 Act are added to
and made a part of ORS chapter 286A. + }
SECTION 2. { + As used in sections 2 to 7 of this 2009 Act:
(1) 'Article XI-D bonds' means general obligation bonds issued
under the authority of Article XI-D of the Oregon Constitution.
(2) '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 credit enhancements or the administrative costs and expenses
of the State Treasurer, the State Department of Energy and the
Oregon Department of Administrative Services, including costs of
consultants or advisers retained by the State Treasurer, the
State Department of Energy or the Oregon Department of
Administrative Services 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) In accordance with the applicable provisions of this
chapter, the State Treasurer, with the concurrence of the
Director of the Oregon Department of Administrative Services, may
issue Article XI-D bonds:
(a) At the request of the Director of the State Department of
Energy for any of the purposes specified in Article XI-D of the
Oregon Constitution, plus an amount determined by the State
Treasurer to pay estimated bond-related costs; and
(b) Subject to the limit on bond issuance established for the
particular biennium in ORS 286A.035.
(3) The State Treasurer may issue Article XI-D bonds for the
purpose of financing the refund of Article XI-D bonds.
(4) 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 2009 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 2009
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 2009 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 (4) of this 2009 Act;
(b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the fund; and
(c) Gifts, grants or contributions received by the department
for the purpose described in section 3 (2)(a) of this 2009 Act.
(2) The State Department of Energy may create separate accounts
in the Renewable Energy Fund as appropriate for the management of
moneys in the fund.
(3) The State Department of Energy 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) If at any time the Oregon Department of Administrative
Services or the State Department of Energy determines that there
are moneys in the Renewable Energy Fund in excess of the amounts
necessary for the purpose described in section 3 (2)(a) of this
2009 Act, the Oregon Department of Administrative Services or the
State Department of Energy may transfer the excess amounts to the
Article XI-D Bond Fund or to the Article XI-D Bond Administration
Fund.
(5) The State Department of Energy 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. { + 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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