76th OREGON LEGISLATIVE ASSEMBLY--2011 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 2076
House Bill 2929
Sponsored by Representative HOLVEY (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 as
introduced.
Grants voting rights to electors of areas not within people's
utility district boundaries who are served by district. Includes
areas outside district boundaries that are served by district
when dividing district into electoral subdivisions.
Becomes operative only if House Joint Resolution 12 (2011) is
approved by people at next regular general election. Becomes
operative on operative date of constitutional amendment proposed
by House Joint Resolution 12 (2011).
A BILL FOR AN ACT
Relating to people's utility districts; amending ORS 261.055,
261.253, 261.315, 261.355, 261.360, 261.375, 261.380 and
261.405; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 261.055 is amended to read:
261.055. When any people's utility district desires to hold an
election for the purpose of submitting to the electors of the
district { + and any territory for which the district provides
service established under ORS 261.315 + } any question that may
lawfully be submitted to them, the board may, at any regular or
special meeting called in accordance with its rules or the
statutes governing the same, adopt a resolution calling a special
election to be held on a date specified in ORS 255.345, and may
in the same resolution designate and describe in general terms
the question which is to be submitted at the special election.
SECTION 2. ORS 261.253 is amended to read:
261.253. (1) A public contract entered into by a
noninvestor-owned electric utility may not contain a clause or
condition that imposes an unconditional and unlimited financial
obligation on the electric utility that is party to the contract
unless the terms and conditions of the contract are subject to
approval and are approved by the electors of the people's utility
district { + and any territory for which the district provides
service established under ORS 261.315, + } or { + the + } city
that owns the electric utility.
(2) Nothing in subsection (1) of this section is intended to
affect provisions of law requiring approval of electors for any
particular type of public contract that are in effect on October
15, 1983, or that are later enacted.
(3) Nothing in subsection (1) of this section is intended to
conflict with ORS 279C.650 to 279C.670.
(4) This section does not apply to a public contract executed
in connection with:
(a) The acquisition of renewable energy certificates;
(b) The acquisition, construction, improvement or equipping of,
or the financing of any interest in, a renewable energy facility;
or
(c) The acquisition or financing of any interest in electrical
capacity needed to shape, firm or integrate electricity from a
renewable energy facility.
(5) As used in this section:
(a) 'Public contract' includes a contract, note, general
obligation bond or revenue bond by which the people's utility
district or city or any subdivision of any of them is obligated
to pay for or finance the acquisition of goods, services,
materials, real property or any interest therein, improvement,
betterments or additions from any funds, including receipts from
rates or charges assessed to or collected from its customers.
(b) 'Unconditional and unlimited financial obligation ' means a
public contract containing a provision that the people's utility
district or city that is party to the contract is obligated to
make payments required by the contract whether or not the project
to be undertaken thereunder is undertaken, completed, operable or
operating notwithstanding the suspension, interruption,
interference, reduction or curtailment of the output or product
of the project.
SECTION 3. ORS 261.315 is amended to read:
261.315. (1) Except as to distribution facilities located in
unincorporated territory at or near the boundaries of the
people's utility district and forming an interconnected part of
the distribution system within the district, as determined by the
county governing body after a public hearing, { - no - }
facilities then being used for the distribution of electric
energy outside the boundaries of the district { - shall - }
{ + may not + } be acquired by it until the acquisition
{ - thereof - } is approved by a majority of the electors
registered in the territory in which the facilities are located,
voting on that question at an election duly called for that
purpose as provided in this section. If a part of the facilities
is located within a city, the election { - shall - } { +
must + } be conducted so that the electors of the city may vote
separately and have their votes counted separately, and the part
within any city may not be acquired unless a majority of the
electors of the city voting on the question approves.
(2) When a district desires to acquire facilities outside its
boundaries for distribution of electric energy, the board of
directors shall pass a resolution declaring that purpose,
specifying the facilities that it desires to acquire and
describing the boundaries of the territory served by the
facilities so as to include all those receiving service or can be
reasonably served through the facilities.
(3) A certified copy of the resolution { - shall - } { +
must + } be filed with the county governing body. Within 90 days
thereafter, the county governing body shall designate the
boundaries of the territory served by the facilities, and certify
the boundaries to the counties in which they are located. The
county governing body shall at the same time notify each of the
counties of the call of an election for the purpose of
authorizing acquisition of the facilities. This certification and
notification { - shall - } { + must + } be given to the
county clerks of the respective counties. The notice
{ - shall - } { + must + } state the time of the election and
contain a ballot title stated in clear and concise language.
(4) The provisions of ORS 261.200 { - shall - } { +
must + } be complied with insofar as applicable. Ballots cast by
electors of cities
{ - shall - } { + must + } be separately kept and counted for
each city.
{ + (5) Electors within the boundaries of any territory
served by the district's facilities under this section shall be
considered to be electors of the district for the purpose of
establishing subdivisions under ORS 261.405. + }
SECTION 4. ORS 261.355 is amended to read:
261.355. (1) For the purpose of carrying into effect the powers
granted in this chapter, any district may issue and sell revenue
bonds, when authorized by a majority of its electors voting at
any primary election, general election or special election.
(2) All revenue bonds issued and sold under this chapter shall
be so conditioned as to be paid solely from that portion of the
revenues derived by the district from the sale of water,
waterpower and electricity, or any of them, or any other service,
commodity or facility which may be produced, used or furnished in
connection therewith, remaining after paying from those revenues
all expenses of operation and maintenance, including taxes.
(3) Notwithstanding subsection (1) of this section and subject
to subsection (4) of this section, any district may, by a duly
adopted resolution of its board, issue and sell revenue bonds for
the purpose of financing betterments and extensions of the
district, including renewable energy facilities or the purchase
or sale of electricity, electrical capacity or renewable energy
certificates, but the amount of revenue bonds so issued shall be
limited to the reasonable value of the betterments and extensions
plus an amount not to exceed 10 percent thereof for
administrative purposes. Revenue bonds shall not be issued and
sold for the purpose of acquiring an initial utility system or
acquiring property or facilities owned by another entity that
provides electric utility service unless:
(a) The acquisition is a voluntary transaction between the
district and the other entity that provides electric utility
service; or
(b) The electors within the district { + and any territory for
which the district provides service established under ORS
261.315 + } have approved issuance of the bonds by a vote.
(4) Not later than the 30th day prior to a board meeting at
which adoption of a resolution under subsection (3) of this
section will be considered, the district shall:
(a) Provide for and give public notice, reasonably calculated
to give actual notice to interested persons including news media
which have requested notice, of the time and place of the meeting
and of the intent of the board to consider and possibly adopt the
resolution; and
(b) Mail to its customers notice of the time and place of the
meeting and of the intent of the board to consider and possibly
adopt the resolution.
(5) Except as otherwise provided in this section, any
authorizing resolution adopted for the purposes of subsection (3)
of this section shall provide that electors residing within the
district { + and any territory for which the district provides
service established under ORS 261.315 + } may file a petition
with the district asking to have the question of whether to issue
such bonds referred to a vote.
(6) If within 60 days after adoption of a resolution under
subsection (3) of this section the district receives petitions
containing valid signatures of not fewer than five percent of the
electors of the district { + and any territory for which the
district provides service established under ORS 261.315 + }, the
question of issuing the bonds shall be placed on the ballot at
the next date on which a district election may be held under ORS
255.345 (1).
(7) When petitions containing the number of signatures required
under subsection (6) of this section are filed with the district
within 60 days after adoption of a resolution under subsection
(3) of this section, revenue bonds shall not be sold until the
resolution is approved by a majority of the electors of the
district { + and any territory for which the district provides
service established under ORS 261.315 + } voting on the
resolution.
(8) Any district issuing revenue bonds may pledge that part of
the revenue which the district may derive from its operations as
security for payment of principal and interest thereon remaining
after payment from such revenues of all expenses of operation and
maintenance, including taxes, and consistent with the other
provisions of this chapter.
(9) Prior to any district board taking formal action to issue
and sell any revenue bonds under this section, the board shall
have on file with the secretary of the district a certificate
executed by a qualified engineer that the net annual revenues of
the district, including the property to be acquired or
constructed with the proceeds of the bonds, shall be sufficient
to pay the maximum amount that will be due in any one fiscal year
for both principal of and interest on both the bonds then
proposed to be issued and all bonds of the district then
outstanding.
(10) Except as otherwise provided in this section, the district
shall order an election for the authorization of revenue bonds to
finance the acquisition or construction of an initial utility
system, including the replacement value of the unreimbursed
investment of an investor owned utility in energy efficiency
measures and installations within the proposed district, as early
as practicable under ORS 255.345 after filing the certificate
required under subsection (9) of this section. An election for
the authorization of revenue bonds to finance the acquisition or
construction of an initial utility system shall be held no more
than twice in any one calendar year for any district. In
even-numbered years no election shall be held on any other date
than the date of the primary election or general election.
(11) A district may issue revenue bonds under ORS 287A.150
without an election authorizing the issuance, except that revenue
bonds shall not be issued under ORS 287A.150 for the purpose of
acquiring an initial utility system or acquiring property or
facilities owned by another entity that provides electric utility
service unless:
(a) The acquisition is a voluntary transaction between the
district and the other entity that provides electric utility
service; or
(b) The electors within the district { + and any territory for
which the district provides service established under ORS
261.315 + } have approved issuance of the bonds by a vote.
SECTION 5. ORS 261.360 is amended to read:
261.360. (1) When authorized by a majority of its electors
voting at any primary election or general election or at a
special election, at which special election not less than 25
percent of the electors of the district { + and any territory
for which the district provides service established under ORS
261.315 + } voted on the question, any district may issue and
sell general obligation bonds so conditioned that the district
shall { - therein and thereby - } unconditionally undertake,
promise and agree to pay the same in whole or in part from
revenue or from taxes or both.
(2) The general obligation bonds of the district outstanding at
any time { - shall - } { + may + } not exceed two and
one-half percent (0.025) of the real market value of all taxable
property within the limits of the district.
(3) General obligation bonds may be made payable primarily from
and secured by a lien on and pledge of the revenues derived by
the district from its operations remaining after paying from such
revenues all expenses of operation and maintenance, and
secondarily from taxes.
SECTION 6. ORS 261.375 is amended to read:
261.375. (1) Except as provided in ORS 261.355 (3) and subject
to ORS 261.355 (10), before any district issues general
obligation or revenue bonds, other than general obligation
refunding, revenue refunding or advance refunding bonds, the
question of whether the bonds shall be issued { - shall - }
{ + must + } be submitted to the electors of the district { +
and any territory for which the district provides service
established under ORS 261.315 + }, either at any general, state
or county election or at a special election called for that
purpose by the board of the district to be held on a date
specified in ORS 255.345.
(2) At the election the notice and ballots { - shall - }
{ + must + } contain a statement of the amount of bonds to be
voted on and the purpose for which the bonds are to be used. If a
majority of those voting on the question vote 'yes,' the board of
directors is authorized to issue bonds of the character and in
the amount designated by the election ballot.
SECTION 7. ORS 261.380 is amended to read:
261.380. (1) The power to refund indebtedness approved by the
electors of the district { + and any territory for which the
district provides service established under ORS 261.315 + } is
vested in the board of directors and may be exercised by adoption
of a resolution { - providing therefor - } { + exercising the
power + }. It { - shall - } { + is + } not be necessary for
the board to submit the question of the proposed refunding to the
electors of the district { + and any territory for which the
district provides service established under ORS 261.315 + } at an
election or otherwise, but revenue bonds
{ - shall - } { + may + } not be refunded into general
obligation bonds, nor
{ - shall - } { + may + } general obligation bonds be
refunded into revenue bonds without approval of the electors of
the district { + and any territory for which the district
provides service established under ORS 261.315 + } given at an
election duly called and legally held { - therein - } .
(2) The issuance and sale of refunding bonds, the maturity
dates and other details thereof, the rights of the holders
thereof, and the duties of the board with respect thereto,
{ - shall be - } { + are + } governed by ORS 261.305 and
261.355 to 261.375 in so far as they are applicable. Bonds may be
issued and sold to refund bonds issued pursuant to this chapter,
including bonds outstanding on April 10, 1951, and to refund
bonds issued for refunding purposes under authority of this
chapter.
SECTION 8. ORS 261.405 is amended to read:
261.405. (1) The management of a people's utility district
shall be vested in a board of five directors.
(2) Upon formation of a district, annexation, consolidation,
merger and after each decennial United States Census, the board
of directors shall by ordinance divide the district { + and any
territory for which the district provides service established
under ORS 261.315 + } into five subdivisions, as nearly equal in
population as possible, and where practicable fix the boundaries
in conformance with adjacent precinct boundaries. One director
shall be elected from each of the five subdivisions.
(3) Directors { - shall - } { + must + } be electors,
{ - shall - } { + must + } reside in the subdivision from
which they are respectively nominated and elected and
{ - shall - } { + must + } have resided in the district
{ + or any territory for which the district provides service
established under ORS 261.315 + } continuously for two years
immediately preceding the date of their election as directors.
SECTION 9. { + This 2011 Act does not become operative unless
the amendment to the Oregon Constitution proposed by House Joint
Resolution 12 (2011) is approved by the people at the next
regular general election held throughout this state. This 2011
Act becomes operative on the operative date of that
constitutional amendment. + }
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