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 2296
 
                         Senate Bill 339
 
Sponsored by Senator COURTNEY
 
 
                             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.
 
  Prohibits Oregon Department of Administrative Services and
Governor from reducing amounts allotted to state agencies for
payment of debt service.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to allotments; creating new provisions; amending ORS
  291.252 and 291.261; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 291.252 is amended to read:
  291.252.   { - The Oregon Department of Administrative Services
may at any time modify or amend any allotment previously made by
it, upon application of, or upon notice to, the agency concerned,
but no such modification or amendment shall reduce an allotment
below the amount required to meet valid obligations or
commitments previously incurred against the allotted funds. - }
   { +  (1) Upon application of or upon notice to the agency
concerned, the Oregon Department of Administrative Services may
at any time modify or amend any allotment previously made by the
department.
  (2) A modification or amendment of an allotment made under
subsection (1) of this section may not reduce an allotment below
the amount required to meet valid obligations or commitments
previously incurred against the allotted funds, including, but
not limited to, commitments for the payment of debt service as
defined in ORS 291.261. + }
  SECTION 2. ORS 291.261 is amended to read:
  291.261. (1) Notwithstanding the legislative policy and intent
declared in ORS 291.232, if the Oregon Department of
Administrative Services declares at any time during a biennium
that there is a projected deficit in that biennium, the
department may, with the approval of the Governor and in order to
prevent the deficit, reduce the amount allotted to state agencies
under ORS 291.234 to 291.260 from the General Fund in the manner
provided in subsection (2) of this section.
  (2)(a) In reducing allotments under this section, the
department and the Governor shall follow legislative funding
priorities as expressed in statutes and in the legislatively
adopted or approved budget for the biennium. Unless statutes or
the legislatively adopted or approved budget indicate otherwise,
the department and the Governor shall assume that all General
Fund appropriations have the same priority and shall reduce
allotments of General Fund moneys for each state agency receiving
General Fund moneys by the same percentage.
  (b) The department and the Governor may not reduce allotments
under this section by a total amount that exceeds the amount
necessary to bring the total estimated General Fund ending
balance to zero.
  (3) For purposes of this section, the department may declare
that there is a projected deficit if a quarterly estimate made as
provided in ORS 291.342 indicates that the projected balance in
the General Fund at the end of the biennium will be less than
zero.
   { +  (4) Subsections (1) to (3) of this section do not apply
to an allotment, or a portion of an allotment, that is designated
by a state agency for the payment of debt service. After an
allotment that is designated by a state agency for the payment of
debt service is made, the department and the Governor may not
reduce the allotment or a portion of the allotment below the
amount needed for the payment of debt service in the biennium.
  (5) As used in this section:
  (a) 'Agreement for exchange of interest rates' has the meaning
given that term in ORS 286A.001.
  (b) 'Bond' has the meaning given that term in ORS 286A.001.
  (c) 'Credit enhancement device' has the meaning given that term
in ORS 286A.001.
  (d) 'Payment of debt service' means:
  (A) The payment of principal, interest or other amounts owed
under a bond;
  (B) The transfer, segregation or other disposition of moneys to
comply with bond payment amounts or required reserve amounts; or
  (C) The payment of amounts owed under an agreement for exchange
of interest rates, a credit enhancement device or a similar
instrument. + }
  SECTION 3.  { + The amendments to ORS 291.252 and 291.261 by
sections 1 and 2 of this 2009 Act apply to allotments made
before, on or after the effective date of this 2009 Act. + }
  SECTION 4.  { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
                         ----------