68th OREGON LEGISLATIVE ASSEMBLY--1995 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 749
Senate Bill 155
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Department of Higher
Education)
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.
Allows Department of Higher Education to participate in short
term investment pool of State Treasurer. Creates additional
subfund in Higher Education Bond Building Fund.
A BILL FOR AN ACT
Relating to investment of higher education funds; amending ORS
351.130, 351.450, 351.455, 351.460, 351.470, 351.545, 351.590
and 351.615; and repealing ORS 351.555.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 351.130 is amended to read:
351.130. (1) The board of higher education shall encourage
gifts to the institutions by faithfully devoting such funds to
the institution for which intended. All gifts and donations
received are appropriated to be used in accordance with the terms
of the gift. Such gifts shall be placed by the State Treasurer to
the credit of a separate fund to be known as the Higher Education
Donation Fund, separate and distinct from the General Fund.
(2) Subject to the terms of the gift, such gifts to the
Department of Higher Education may be invested { - in
securities which constitute legal investments for trust funds
held for charitable or educational purposes, in lawfully issued
interest-bearing bonds or obligations of the State of Oregon and
in real property - } { + by the State Treasurer + }. The State
Treasurer shall credit to the Higher Education Donation Fund any
interest or other income derived from the investment of such
fund.
(3) The interest, income, dividends or profits received on any
property or funds of the Department of Higher Education derived
from gifts, legacies, devises, bequests or endowments are
continuously appropriated to the use, maintenance and support of
the Department of Higher Education in the same manner as the
principal or corpus of each such gift or donation in accordance
with the terms of the gift.
(4) As used in this section, 'gifts' includes funds donated to
the Department of Higher Education to which by agreement the
donor receives consideration in return for the gift or retains a
reversionary interest but does not include grant or contract
funds received from government sources.
SECTION 2. ORS 351.450 is amended to read:
351.450. The moneys realized from sales of bonds issued to
construct, improve, repair, equip and furnish buildings and other
structures for higher education, and to purchase and improve
sites therefor shall be credited to a special fund in the State
Treasury separate and distinct from the General Fund, to be
designated Higher Education Bond Building Fund. In the Higher
Education Bond Building Fund there shall be a separate subfund
for the credit of moneys realized from sales of bonds issued
pursuant to Article XI-F(1) of the Oregon Constitution and ORS
351.350; { - and - } there shall be a separate subfund for the
credit of moneys realized from sales of bonds issued pursuant to
Article XI-G of the Oregon Constitution, and ORS 351.345 { + ;
and there shall be a separate subfund for the credit of moneys
realized from the sales of revenue bonds issued pursuant to ORS
288.855 + }. The moneys received from the issuance of temporary
bonds under ORS 351.470 for the purpose of interim financing
pending the sale of the bonds shall also be credited to the
appropriate subfund of the Higher Education Bond Building Fund.
The moneys in the fund hereby are appropriated to defray the
costs of the projects to be financed through sale of the bonds
and for the purpose of retiring temporary bonds issued under ORS
351.470, and shall not be used for any other purpose, except that
such moneys may, with the approval of the State Treasurer, be
invested until needed { - in obligations of the State of Oregon
or of the United States Government, or both, having maturity
dates of not to exceed two years - } . If a surplus remains after
application to such purpose, the surplus, and earnings from
temporary investments, shall be credited to the Higher Education
Bond Sinking Fund by the appropriate subfund.
SECTION 3. ORS 351.455 is amended to read:
351.455. Notwithstanding any other provisions of law, the
Department of Higher Education may expend moneys from the Higher
Education Bond Building Fund subfund established by ORS 351.450
including moneys realized from the sale of bonds issued pursuant
to Article XI-F(1) of the Oregon Constitution { + and revenue
bonds issued pursuant to ORS 288.855 + } and { - ORS - }
351.350, for the planning, constructing, altering, repairing,
furnishing and equipping of buildings and facilities of the kind
and character prescribed by Article XI-F(1) of the Oregon
Constitution and for the acquisition of land.
SECTION 4. ORS 351.460 is amended to read:
351.460. (1) The { + State + } Board { + of Higher
Education + } shall maintain with the State Treasurer, a Higher
Education Bond Sinking Fund, separate and distinct from the
General Fund. The Higher Education Bond Sinking Fund shall
comprise { - two - } { + three + } separate subfunds to
provide for the payment of the principal of and the interest upon
the bonds issued under authority of Article XI-F(1) of the Oregon
Constitution and ORS 351.350, { - and - } under authority of
Article XI-G of the Oregon Constitution and ORS 351.345 { + , and
revenue bonds issued under authority of ORS 288.855 + }. The
moneys in said sinking fund hereby are appropriated for such
purposes. The said fund may be invested by the { - board in
securities as defined in ORS 295.005 (7)(a), (c) and (d) and in
Time Certificates of Deposit issued by a bank or trust company
authorized to do business in this state in the capacity of a bank
or trust company - } { + State Treasurer + }, and the earnings
from such investments shall be credited to the appropriate
subfunds of such fund.
(2) The Higher Education Bond Sinking Fund shall consist of all
moneys received from ad valorem taxes levied pursuant to ORS
291.445, all moneys that the Legislative Assembly may provide in
lieu of such taxes, all of the net revenues received from the
projects or undertakings for the financing of which the bonds
were issued, including gifts, grants and building fees, such
unpledged revenues of buildings and projects of like character as
shall be allocated by the board, all moneys received as accrued
interest upon bonds sold, all earnings from investments of said
fund and the proceeds of the sale of refunding bonds. Moneys
credited to the Higher Education Bond Sinking Fund shall be
credited to the appropriate subfunds of such fund.
(3) The board may credit the Higher Education Bond Sinking Fund
with moneys received from either a sale or interfund transfer of
land, buildings and facilities. Where such land, buildings or
facilities are sold, or the use thereof is rededicated so that a
transfer from one subfund to the other is appropriate, the moneys
received shall be credited to the appropriate subfund.
(4) The board shall apply student building fees, revenues,
gifts and grants for the payment of the principal of and the
interest upon the bonds issued under authority of Article XI-F(1)
of the Oregon Constitution and ORS 351.350 { + and under
authority of ORS 288.855 + } until such time as the proper
subfund of said sinking fund and investments thereof, as
supplemented by expected future income will, in the judgment of
the board, be sufficient to meet in full the principal of and the
interest upon all such outstanding bonds. Except for student
building fees, income not thus required for the sinking fund
shall be transferred to such other fund and account as the board
shall designate. Student building fees for buildings constructed
from the proceeds of bonds issued under Article XI-F(1) of the
Oregon Constitution { + or ORS 288.855 + } shall be applied only
to those projects authorized under Article XI-F(1) of the Oregon
Constitution { + or ORS 288.855 + }.
(5) The said sinking fund shall not be used for any purpose
other than those for which the fund was created; but should a
balance remain therein from sources other than student building
fees for buildings constructed from the proceeds of bonds issued
under Article XI-F(1) of the Oregon Constitution after the
purposes for which the fund was created have been fulfilled or
after a reserve sufficient to meet all existing and future
obligations and liabilities of the fund has been set aside, the
surplus remaining may be transferred to such other fund as the
board may designate.
SECTION 5. ORS 351.470 is amended to read:
351.470. Pending receipt of the proceeds from the expected sale
of bonds under the provisions of ORS 351.345 to 351.460, to the
State of Oregon or to the United States Government or any agency
thereof, the State Board of Higher Education may, with the
approval of the State Treasurer, procure interim financing from
the State of Oregon, the United States Government or any agency
thereof, or from any private lending agency, by issuing to such
private or public lending agency temporary bonds, without
advertisement of such bonds for sale, in order to finance
temporarily building projects authorized by the board pursuant to
Article XI-F(1) or Article XI-G of the Constitution of the State
of Oregon { + , ORS 288.855 + } and { - ORS - } 351.160 (1) or
(2), if the bond issue to be temporarily financed by the issuance
of temporary bonds has been authorized by the State Board of
Higher Education and a purchase plan has been formulated with and
is being considered by the State of Oregon or the United States
Government or any agency thereof. The proceeds from the sale of
the bonds shall be deposited in the Higher Education Bond
Building Fund and credited to the appropriate subfund of such
fund, and shall be used to retire the temporary bonds issued
under this section. The principal amount of temporary bonds
issued under this section shall not exceed the principal amount
of the bond issue for which a purchase plan has been formulated.
The temporary bonds may be extended, renewed or refunded but
maturity dates shall in no event be later than two years from the
date of issue of the original temporary bonds for the related
building project.
SECTION 6. ORS 351.545 is amended to read:
351.545. (1) The { + State + } Board { + of Higher
Education + } shall maintain with the State Treasurer, a Higher
Education Isolation Facility Bond Sinking Fund, separate and
distinct from the General Fund. The Higher Education Isolation
Facility Bond Sinking Fund shall provide for the payment of
principal and interest of bonds issued under the authority of
Article XI-F(1) of the Oregon Constitution and ORS 351.350 in an
amount equal to the amount authorized for expenditure by section
3 (2)(b), chapter 709, Oregon Laws 1971, and expended as provided
therein. The sinking fund may be invested by the { - board in
securities as defined in ORS 295.005 (7)(a), (c) and (d) and in
Time Certificates of Deposit issued by a bank or trust company
authorized to do business in this state in the capacity of a bank
or trust company - } { + State Treasurer + }, and the earnings
from such investments shall be credited to the sinking fund.
(2) The Higher Education Isolation Facility Bond Sinking Fund
shall consist of moneys received as net revenues from the
isolation facilities for which the expenditure of funds is
authorized by section 3 (2)(b), chapter 709, Oregon Laws 1971,
including gifts, grants and building fees, moneys received as
accrued interest on bonds sold, earnings from investments on the
sinking fund, the proceeds of the sale of refunding bonds and any
accrued interest on such refunding bonds, moneys received
pursuant to ORS 462.280 (1991 Edition), moneys appropriated to
the sinking fund by the Legislative Assembly and moneys received
for the purposes of the sinking fund from all other sources. All
moneys in the sinking fund are continuously appropriated to the
board for the purposes provided in subsection (1) of this
section.
(3) The sinking fund shall not be used for any purpose other
than that for which the fund was created; but should a balance
remain therein after the purpose for which the fund was created
has been fulfilled, or the sinking fund and investments thereof,
will, in the judgment of the board, be sufficient to meet in full
the principal of and the interest upon all Higher Education
Isolation Facility bonds then such excess funds may be
transferred by the board to funds to be used for research related
to veterinary medicine.
SECTION 7. ORS 351.590 is amended to read:
351.590. (1) The State Board of Higher Education shall maintain
with the State Treasurer a fund, separate and distinct from the
General Fund, known as the Higher Education Student Activities
Fund in which shall be deposited all revenue from incidental
fees, optional fees, health services fees and all operating
revenue from intercollegiate athletics, student unions and
educational activities.
(2) Disbursements from the fund, including any interest
credited thereto, may be made for necessary expenses for
supplies, services and equipment associated with student
activities including but not limited to recruiting, training and
grant-in-aid to intercollegiate athletes.
(3) The fund may be invested by the State Treasurer { + ,
and + } { - in securities which constitute legal investments as
defined in ORS 295.005 (7). - } the earnings from such
investments shall be credited to the fund. The State Board of
Higher Education shall distribute annually the total interest
earnings proportionately to each institution based on each
institution's average cash balance in the fund.
SECTION 8. ORS 351.615 is amended to read:
351.615. Moneys set aside by higher education auxiliary
activities for repair and alteration of buildings and replacement
of equipment shall be credited to a special fund in the State
Treasury, separate and distinct from the General Fund, to be
designated Higher Education Auxiliary Enterprise Building Repair
and Equipment Replacement Fund. The fund may be invested by the
State Treasurer { + , and + } { - in securities which
constitute legal investments as defined in ORS 295.005 (7). - }
the earnings from such investments will be credited to the fund
for distribution to the several auxiliary activities in accord
with rules to be adopted by the board. The moneys in the Higher
Education Auxiliary Enterprise Building Repair and Equipment
Replacement Fund are continuously appropriated for the repair and
alteration of auxiliary enterprise buildings and replacement of
equipment as designated by the board, after hearing any
recommendations by recognized student governments.
SECTION 9. { + ORS 351.555 is repealed. + }
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