(1) At the
request of the holder of any bond of the state bearing interest coupons
and issued after May 29, 1919, the State Treasurer shall issue in
exchange for such bond a registered bond or a bearer bond or bonds,
substantially of the same tenor and of a like aggregate principal amount,
but such registered bonds shall be issued only in denominations of $500
or multiples thereof, payable, as to both principal and interest, to the
holder thereof. Such bonds shall likewise be exchanged for other
registered or bearer bonds of like tenor and of a like aggregate
principal amount but such bonds shall be issued only in denominations of
$500 or multiples thereof. Upon the transfer of any such bond a new bond
or bonds of like tenor and aggregate principal amount shall be issued in
the name of the transferee. All such new bonds shall be executed in the
same manner as the original bonds by the persons in office at the time
such new bonds are issued. Bonds as provided for in this section shall be
issued under rules adopted from time to time by the State Treasurer.
(2) The State Treasurer may designate a fiscal agent to register or
record bonds of the state under such conditions as may be agreed upon by
the treasurer and the agent. The State Treasurer may also appoint an
Oregon institution as coregistrar. [Amended by 1981 c.660 §10; 1987 c.869
§3] A fee, to be established
by the State Treasurer commensurate with expenses, may be charged for
each registered bond issued in exchange for one or more bonds, or for one
or more bonds previously registered, or for each registered bond issued
as a submultiple of the principal of a bond previously registered. The
State Treasurer may collect from owners of bonds sent in for
registration, and from transferees of registered bonds, the fee for
expenses for postage, postal registry fees and postal insurance on bonds
mailed to owners and transferees. [Amended by 1981 c.660 §11; 1991 c.139
§1; 1999 c.1043 §4] All
moneys received under ORS 286.020 shall be deposited in the Miscellaneous
Receipts Account established in the General Fund for the State Treasurer.
The State Treasurer may draw warrants in payment of vouchers and drawn
against the account in payment of costs of the State Treasurer or of
costs of the financial institution appointed registrar as provided for in
ORS 286.010 for printing, postage, postal insurance, and for all other
expenses connected with the registration, reregistration or conversion to
bearer form of bonds of the State of Oregon. [1981 c.660 §14; 1983 c.44
§3; 1999 c.1043 §5]
Notwithstanding
any other provision of law, for all general obligation and revenue bonds
of this state the State Treasurer:
(1) Shall issue the bonds after consultation with the state agency
responsible for administering the bond proceeds.
(2) Shall set the date of issuance after consultation with the
agency.
(3) May combine the issues of bonds for more than one program into
a single bond issue whenever a combination is consistent with the
constitutional authority under which the bonds are issued.
(4) Shall determine the issuance and reissuance of all bonds and
coupons.
(5) Shall determine where the bonds are to be marketed, sold and
redeemed and bond payments are to be made.
(6) May enter into any agreement, and may appoint any agent, that
the State Treasurer considers necessary to comply with the law of the
nation in which the bonds are marketed or to market the bonds
competitively. In making such an agreement or appointment, the State
Treasurer shall comply with Oregon law that otherwise applies. [1981
c.660 §1; 1983 c.519 §1; 1987 c.869 §4] The state agency shall
authorize issuance of bonds subject to ORS 286.031 by resolution of its
governing body or, if none, the administrative head of the agency. [1981
c.660 §2](1) The
state agency, with the approval of the State Treasurer, shall determine
the maximum interest to be borne by the bonds, the interest basis and
definition thereof. The maximum effective interest rate shall be
certified to the State Treasurer as prudent in light of prevailing
interest rates, market conditions and the projected program revenues, if
any, and the State Treasurer must approve or disapprove.
(2) The state agency, with the approval of the State Treasurer,
shall determine the period over which interest on bonds may be
capitalized. The period may not be longer than the estimated period of
construction.
(3) The interest upon all bonds, including refunding bonds, of the
State of Oregon, shall be exempt from taxation by the State of Oregon.
(4) A state agency authorized to issue or cause to be issued any
general obligation, revenue or industrial development bonds must apply
for and receive approval of the State Treasurer prior to issuance of
bonds. The approval must include approval of the preliminary official
statement, if any, the specific amount of the bonds to be issued and the
date of issuance. The State Treasurer may reduce the amount or alter the
date of issuance, or both. ORS 286.056 and 286.061 (1) do not apply to
revenue or industrial development bonds described in this section. [1981
c.660 §8; 2001 c.536 §4](1) The State Treasurer may
issue any or all bonds, notes or other evidences of indebtedness of the
state, the interest on which is taxable for federal income tax purposes
to the bondholders. Notwithstanding the grant of such authority to the
State Treasurer, in each instance, the state’s consent to such taxation
shall be given by the State Treasurer only expressly and in writing at
the time at which the bonds, notes or other evidences of indebtedness are
sold. Such written consent shall be made a part of the transcript of the
proceedings of such sale.
(2) Bonds, notes or other evidence of indebtedness described in
subsection (1) of this section may be sold at public sale or private
negotiated sale, as determined by the State Treasurer. [1987 c.308 §§2,3;
1989 c.681 §8]
Note: 286.038 (2) was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 286 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation. (1) The State Treasurer shall
cause to be prepared, with the approval of the Attorney General, a form
of direct, general obligation, interest-bearing bonds of the State of
Oregon to be sold in order to provide funds for carrying out the purposes
for which general obligation bonds are authorized by the Constitution of
the State of Oregon.
(2) The bonds may be issued in one or more series, bear such date
or dates, mature at such times and in such amounts, be in such
denomination or denominations, bear such numbers, be payable at a
designated place or places within or without the State of Oregon or at
the fiscal agency of the State of Oregon, bear such rate or rates of
interest, and contain such other terms, conditions and covenants as the
State Treasurer may determine. [1981 c.660 §3](1) At the discretion of the
State Treasurer, refunding bonds or advance refunding bonds, as provided
for in ORS 288.605 to 288.695, may be issued. The bonds may be refunded
either prior to or at their maturity dates. Refunding bonds may be issued
in the same manner as other bonds are issued under the terms of ORS
286.010 to 286.078, 287.018, 288.020, 293.701, 351.315, 351.345 to
351.460, 351.545, 367.161 to 367.181, 367.555, 367.565, 367.700, 367.715,
391.140, 407.415, 407.515, 456.519, 456.645, 456.650, 456.670, 468.195,
470.220, 530.130, 530.230, 541.780 and 541.785. Refunding bonds may be
issued to refund bonds originally issued or to refund bonds previously
issued for refunding purposes.
(2) If the governing body or administrative head of the state
agency so elects, and the State Treasurer approves, bonds may be issued
with the option upon the part of the state to redeem the bonds, with or
without premium, in such order, and at such time or times prior to the
final maturity date or dates of the bonds.
(3) If all the bonds being redeemed are not in registered form, at
least one notice of the intended redemption of the bonds shall be
published in one issue of a newspaper specializing in financial matters
published in the city in which the bonds by their terms are made payable,
and of at least one such notice in a newspaper of general circulation in
Portland, Oregon. Notice shall be published at least 30 days before the
redemption date. [1981 c.660 §4; 1987 c.869 §5; 1991 c.67 §71; 1991 c.575
§7; 1997 c.171 §8; 2003 c.201 §36] The State Treasurer shall approve
a notice of sale for all bonds that are to be sold at public sale. The
State Treasurer shall cause the notice of sale, or a summary of the
notice of sale, to be disseminated in a manner prescribed by the State
Treasurer, which may include any means and methods for giving public
notice of the bond sale, including, when reasonably practicable, the use
of one or more electronic media networks. [1981 c.660 §5; 1987 c.869 §6;
1989 c.681 §7; 1997 c.66 §1; 1999 c.44 §14] The notice of sale required by
ORS 286.056 shall specify:
(1) The process by which bids will be received, considered and
acted upon, including the deadline for submitting bids, the total amount
of bonds and the denomination of bonds;
(2) The issue date, maturity dates and amounts, interest payment
dates, and place of payment of the bonds;
(3) The dates of redemption, if any; the call price premium, if
any; and the order and place of redemption;
(4) The method of submitting and the amount of any required good
faith deposit;
(5) Such constraints on the coupon or interest rates as the agency,
with the approval of the State Treasurer, may wish to impose;
(6) The interest basis and definition thereof on which bids are to
be awarded;
(7) The nature of the security on the bonds; and
(8) The name of bond counsel; the name of the source of the
preliminary official statement; the means of communication used to
circulate the preliminary official statement, which may include
electronic or any other means prescribed by the State Treasurer; coupon
rate multiples; registration provision, if any; estimated delivery date
and place; the purpose of the bonds; the statutes and constitutional
provisions pursuant to which the bonds are being issued; the procedure
for awarding the bids; and such other provision as the agency, with the
approval of the State Treasurer, may wish to impose. [1981 c.660 §6; 1999
c.44 §15; 2001 c.104 §99](1) All bonds issued by the State of
Oregon under ORS 286.010 to 286.078, 287.018, 288.020, 293.701, 351.315,
351.345 to 351.460, 351.545, 367.555, 367.565, 367.700, 367.715, 407.415,
407.515, 456.519, 468.195, 470.220, 530.130, 530.230, 541.780 and 541.785
shall be direct general obligations of the State of Oregon, in negotiable
form, and shall embody an absolute promise to pay the amounts thereof in
any coin or currency which, at the time of payment, is legal tender for
the payment of public and private debts within the United States of
America.
(2) The bonds shall be executed with a facsimile signature of the
Governor and Secretary of State and the manual or facsimile signature of
the State Treasurer or Deputy State Treasurer in accordance with ORS
288.540. The bonds shall be issued as bearer coupon bonds or in
registered form, either as to principal or interest, or both.
(3) Not less than 20 days before the payment of the principal or
interest falls due on any of the bonds, the respective program shall
prepare and submit to the State Treasurer, for verification, a claim duly
approved by the agency for the amount necessary to meet the payment
thereof. Upon such verification, the agency shall present the claim in
like manner as other claims against the state are presented. The claim
shall be paid out of moneys provided by law for its payment.
(4) Notwithstanding any other provision of law, when bonds,
obligations or other evidence of indebtedness are sold, the proceeds may
be used to pay attorney, consultant, paying agent, trustee or other
professional fees and other expenses incurred to authorize, issue, carry
and repay the bonds, obligations or other evidence of indebtedness.
(5) The State Treasurer may establish funds and accounts separate
and distinct from the General Fund as may be authorized by law or
reasonably required to protect the bond proceeds and to arrange for their
redemption. [1981 c.660 §7; 1985 c.565 §44; 1987 c.273 §1; 1991 c.67 §72;
2003 c.195 §11; 2003 c.201 §37](1) Notwithstanding any
law limiting expenditures of a state agency, for the purpose of repaying
or refinancing debt obligations of the state in order to obtain savings
in total or periodic debt service payments, a law limiting expenditures
does not apply to payments approved by the State Treasurer for
administrative expenses, debt service or financing costs necessary or
appropriate for the retirement or refunding of bonds, certificates of
participation or financing agreements as defined in ORS 283.085 unless
the law limiting expenditures creates a specific exception to this
section.
(2) The Oregon Department of Administrative Services may establish
administrative limitations on the payment and recording of expenditures
made pursuant to subsection (1) of this section.
(3) The Oregon Department of Administrative Services shall report
incurred expenses and debt service savings resulting from actions taken
under subsection (1) of this section that affect administrative expenses,
debt service or financing costs paid with moneys out of the General Fund
or lottery funds, within 90 days of taking action, to the Joint Committee
on Ways and Means if the Legislative Assembly is in session or to the
Emergency Board during the interim between legislative sessions. [2001
c.602 §2]
Each respective general obligation bonding agency shall enter into an
agreement with and provide for the appointment of bond counsel for a
period of not less than one year during any biennium in which the agency
has bonds outstanding or expects to issue bonds. An agency may not enter
into an agreement for the appointment of bond counsel under this section
unless the State Treasurer and the Attorney General have reviewed and
approved the terms and conditions of the agreement as required by ORS
288.523. ORS 279A.140 does not apply to an agreement for the appointment
of bond counsel entered into under this section. [1981 c.660 §15; 1995
c.247 §3; 2001 c.536 §5; 2003 c.794 §243]140. (1) The State Treasurer may, or an agency authorized to use
bond proceeds may, with the approval of the State Treasurer, enter into
an agreement with and retain the services of a financial consultant. The
State Treasurer, in granting approval for the retention of a financial
consultant authorized by this section, shall consider:
(a) The reputation, experience and credentials of the consultant,
including the individuals expected to actually fulfill the contract work;
and
(b) The willingness of the consultant to consider the impact of the
agency’s bond program on overall state resources, levels of bonded
indebtedness, and statewide bond issuance procedures and policies.
(2) An agency may not enter into an agreement to retain the
services of a financial consultant unless the State Treasurer reviews and
approves the terms and conditions of the agreement. ORS 279A.140 does not
apply to an agreement described in this section. [1981 c.660 §16; 1983
c.798 §6; 2001 c.536 §6; 2003 c.794 §244]The head of the state agency responsible for administering
bond proceeds of bonds, notes and other evidences of indebtedness may:
(1) Establish, notwithstanding other requirements, standards and
priorities for the use of those bond proceeds and of the interest and
other earnings thereon and may make such rebates or other payments that
are necessary to assure that the interest paid to holders of bonds, notes
or other evidences of indebtedness are exempt from federal income taxes.
Such rebates shall be considered an interest expense of such obligations,
and may be paid from any source of funds which may be used to pay
interest on such obligations, or from any source of funds which earns
interest that is rebatable.
(2) Invest in United States Government securities or other legal
investments which have a yield that is less than the current market
yield, but for no other reason than to facilitate compliance with federal
laws which govern whether interest on such obligations is excludable from
gross income under federal income tax laws. [1981 c.660 §22; 1987 c.307
§1] (1) Before
requesting the State Treasurer to issue general obligation bonds or
revenue bonds authorized by law, a state agency must prepare a cash flow
projection that details anticipated program revenues and includes a list
of all significant assumptions of the cash flow model and the state
agency’s estimate of the likelihood that the assumptions will materialize.
(2) The treasurer shall review the cash flow projection and:
(a) Approve the cash flow projection and notify the state agency in
writing; or
(b) If the treasurer determines that the cash flow projection and
underlying assumptions supplied by the agency are unreasonable or do not
fairly represent a likely set of events, the treasurer shall notify the
state agency of the determination in writing and may require additional
cash flow projections to be computed using assumptions supplied by the
treasurer.
(3) The treasurer may not issue general obligation bonds or revenue
bonds for a state agency until:
(a) The treasurer has approved the cash flow projection required in
subsection (1) of this section; and
(b) If a financial consultant is retained as provided for in ORS
286.071 to assist with the bond program, the consultant has attested that
the cash flow projection required in subsection (1) of this section
contains all significant disclosures and all significant underlying
assumptions necessary to provide a reasonable basis for the projection.
[1983 c.798 §2; 2005 c.111 §1] (1) Any state
agency that has general obligation or revenue bonds, notes or other
obligations outstanding, shall prepare and submit to the State Treasurer
reports that:
(a) Detail present and projected cash flow of program revenues, if
any, and the anticipated sufficiency of that cash flow to meet required
debt service payments;
(b) Detail historical performance regarding payments,
delinquencies, reinvestment rates or similar factors that would effect
the adequacy of the assumptions underlying the cash flow projection;
(c) Provide a schedule for use of bond proceeds, if any, by program
category;
(d) Describe any changes in program administration that could
affect the cash flow projection; and
(e) Provide any additional information relating to the ability to
repay outstanding bonds as may be required by the State Treasurer.
(2) The reports required in subsection (1) of this section shall be
submitted at such times as the State Treasurer determines and which may
be reasonably supplied by the agency but in no event more often than
quarterly nor less often than yearly. [1983 c.798 §3] Notwithstanding ORS
286.105 or 286.115, the State Treasurer may exempt a program or
transaction from any or all of the requirements of ORS 286.105 or 286.115
after making one or more of the following findings:
(1) The program or transaction does not significantly affect the
financial integrity of the state;
(2) Bond-related costs that come due after issuance will be paid
from moneys to be appropriated by the Legislative Assembly in the future;
(3) The moneys to pay bond-related costs will be available and
unobligated at the time of issuance; or
(4) The treasurer finds that compliance with ORS 286.105 or 286.115
does not assist the treasurer in evaluating whether adequate revenues
will be available to pay bond-related costs that come due after issuance.
[1983 c.798 §5; 2005 c.111 §2] (1) Any state
agency that administers a program for which bonds are outstanding shall
request the Secretary of State to conduct a financial audit of the bond
program at least annually. The request for an audit shall include a
request that the audit be published as soon as possible following the end
of the audit period.
(2) The Oregon Department of Administrative Services may on an
annual basis exempt any program from the requirements of subsection (1)
of this section. [1983 c.798 §4]General obligation and revenue bonds of this state may be
marketed, sold or redeemed and any bond principal, interest and premium,
if any, may be paid in any city of any nation unless contrary to the laws
of that city or nation. [1987 c.869 §2]AMOUNT OF BONDS The Legislative Assembly finds that incurring of
state debt by sale of bonds should be subjected to the same process of
executive recommendations and legislative approval as the process by
which the state biennial budget is recommended and approved. [Formerly
286.079]No bonds shall be issued under ORS 285B.320 to 285B.371, except
as provided under ORS 286.505 to 286.545. [1985 c.805 §3] The State Treasurer shall
submit to the Oregon Department of Administrative Services by July 1 of
each even-numbered year a report detailing a consolidated debt profile of
the state’s bonded indebtedness and other financing agreements and
certificates of participation authorized by law, how that amount compares
to economic growth of the state during the preceding biennium, how the
state’s indebtedness level compares to other states and any other
relevant information the State Treasurer considers important for policy
consideration and inclusion in the Governor’s budget report to the
Legislative Assembly. [Formerly 286.080; 1989 c.1032 §6](1) The Governor
shall recommend to the Legislative Assembly for each biennium the total
level for all state programs for which general obligation or revenue
bonds or certificates of participation or other financing agreements as
defined in ORS 283.085 are authorized. In making the recommendations, the
Governor shall seek the advice of the State Treasurer on the total level
for each biennium. The treasurer’s advice shall be given at a time
requested by the Governor and shall be based on the treasurer’s review of
available economic and financial data for the state. After reviewing the
treasurer’s advice, the Governor shall present the total level for each
program to the Legislative Assembly as part of the Governor’s budget
along with the figures advised by the treasurer. The Legislative Assembly
shall then determine the level for each program for each biennium.
(2) For each biennium, each state agency authorized to issue
general obligation or revenue bonds or certificates of participation or
other financing agreements shall report to the Governor biennially on a
date determined by the Governor on agency plans for issuing bonded
indebtedness or certificates of participation or other financing
agreements during the coming biennium. The agency shall include any
knowledge it has on retiring outstanding indebtedness during the
following biennium or thereafter. [Formerly 286.085; 1989 c.1032 §7; 1997
c.49 §4](1) The bond issuance amounts authorized by
ORS 286.505 to 286.545 and the amounts of certificates of participation
or other financing agreements may be modified by the Governor within
program designations or between program designations but may not exceed
the amount of bonds, certificates of participation or other financing
agreements authorized by the Legislative Assembly for the biennium.
(2) If the Legislative Assembly establishes categories of general
obligation bonds, direct revenue bonds, pass through revenue bonds,
certificates of participation or other financing agreements, the
authority granted under subsection (1) of this section does not authorize
modification as between categories.
(3) Nothing in ORS 286.505 to 286.545 applies to refunding bonds
authorized or required under any state bond program adopted under ORS
286.085.
(4) The provisions of law fixing the amount of bonds that may be
issued under Article XI-G of the Oregon Constitution are controlling over
any greater amount that may be appropriated therefor. [Formerly 286.090;
1987 c.754 §3; 1991 c.703 §46; 2005 c.120 §1]
(1) When a public agency has authority to issue general obligation bonds
and the process of bidding and acceptance is completed before the end of
the biennium, the agency may issue the bonds in the next biennium subject
to the limit in amount of issuance imposed in the preceding biennium, if
any. Any bonds issued under the authority granted by this section shall
not be considered a part of the issuing agency’s general obligation
limitation, if any, for the next biennium.
(2) No bonds shall be issued under the authority granted by
subsection (1) of this section on a date later than the effective date of
legislation setting general obligation bond limits, as required by ORS
286.525 (1), for the next biennium. [1983 c.112 §§3,4](1) There is established a
State Debt Policy Advisory Commission, consisting of five members.
(2) The State Treasurer and the Director of the Oregon Department
of Administrative Services shall serve as ex officio members of the
commission. One member of the commission shall be a member of the Senate
appointed by the President of the Senate. One member of the commission
shall be a member of the House of Representatives appointed by the
Speaker of the House. One member of the commission shall be a public
member, knowledgeable on matters of public finance, appointed by the
Governor from among those persons recommended by the State Treasurer.
(3) The term of an appointed member is two years, but an appointed
member serves at the pleasure of the appointing authority. Before the
expiration of the term of an appointed member, the appointing authority
shall appoint a successor. If there is a vacancy for any reason in the
office of an appointed member, the appointing authority shall make an
appointment to become immediately effective for the unexpired term.
(4) A member of the commission is entitled to compensation and
expenses as provided in ORS 292.495.
(5) The State Treasurer shall serve as chairperson of the
commission, with such duties and powers necessary for the performance of
that office as the commission determines appropriate.
(6) A majority of the members of the commission constitutes a
quorum for the transaction of business.
(7) The commission shall meet at least once every six months at a
place and time determined by the commission. The commission also shall
meet at other times and places specified by the call of the chairperson
or of a majority of the members of the commission.
(8) The office of the State Treasurer shall provide the commission
with office space and clerical and other administrative support. [1997
c.49 §1]Note: 286.550 and 286.555 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 286 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. The State Debt Policy
Advisory Commission shall advise the Governor and the Legislative
Assembly regarding policies and actions that enhance and preserve the
state’s credit rating and maintain the future availability of low-cost
capital financing. In carrying out this function, the commission shall:
(1) Develop a six-year forecast of debt capacity targets by debt
type and repayment source based on the policies and actions established
under this section.
(2) Convert debt capacity targets to net available capacity
estimates by reflecting amounts of capacity currently issued, the planned
issuance of prior authorized debt and estimates of debt repayment.
(3) Report findings, including net debt capacity, and
recommendations to the Governor and to the Legislative Assembly by April
1 of each even-numbered year. [1997 c.49 §2]Note: See note under 286.550.LOTTERY BONDS
(1) “Appropriated funds” for a particular fiscal year means any
moneys, other than unobligated net lottery proceeds, that are
specifically appropriated or otherwise specifically made available by the
Legislative Assembly or the Emergency Board for a fiscal year to
replenish reserves established as additional security for lottery bonds
pursuant to the authority granted in ORS 286.580 (6).
(2) “Bond-related costs” means:
(a) The costs and expenses of issuing, administering and
maintaining lottery bonds and the lottery bond program, including but not
limited to paying or redeeming lottery bonds, paying amounts due in
connection with credit enhancements or any instruments authorized by ORS
286.580 (6) and paying the administrative costs and expenses of the State
Treasurer and the Oregon Department of Administrative Services, including
costs of consultants or advisors retained by the State Treasurer or the
Oregon Department of Administrative Services for the lottery bonds or the
lottery bond program;
(b) The costs of funding any lottery bond reserves;
(c) Capitalized interest for lottery bonds;
(d) Rebates or penalties due to the United States in connection
with lottery bonds; and
(e) Any other costs or expenses that the State Treasurer or the
Director of the Oregon Department of Administrative Services determines
are necessary or desirable in connection with issuing lottery bonds or
maintaining the lottery bond program.
(3) “Lottery bonds” means:
(a) The state park lottery bonds authorized by ORS 390.060 to
390.067, the infrastructure lottery bonds authorized by ORS 285B.530 to
285B.548 and the education lottery bonds authorized by ORS 327.700 to
327.711;
(b) Any other bonds payable from the revenues of the Oregon State
Lottery unless the legislation authorizing those bonds expressly provides
that those bonds shall not be issued under ORS 286.560 to 286.580 and
348.716; and
(c) Any refunding lottery bonds.
(4) “Lottery Bond Administrative Fund” means the fund created by
ORS 286.573.
(5) “Lottery Bond Fund” means the fund created by ORS 286.570.
(6) “Lottery bond program” means a financing program authorized by:
(a) ORS 285B.530 to 285B.548, 327.700 to 327.711 or 390.060 to
390.067; or
(b) Any other Act of the Legislative Assembly authorizing the
issuance of bonds that are payable from the revenues of the Oregon State
Lottery, unless the legislation authorizing those bonds expressly
provides that those bonds shall not be issued under ORS 286.560 to
286.580 and 348.716.
(7) “Refunding lottery bonds” means any bonds issued for the
purpose of refunding any lottery bonds.
(8) “Unobligated net lottery proceeds” means all revenues derived
from the operation of the Oregon State Lottery except for:
(a) The revenues used for the payment of prizes and expenses of the
Oregon State Lottery as provided in section 4 (4)(d), Article XV of the
Oregon Constitution, and ORS 461.500 and 461.510;
(b) The revenues required to be applied, distributed or allocated
as provided in ORS 461.543; and
(c) The revenues required to be allocated to pay the Westside
lottery bonds and any bonds issued to refund the Westside lottery bonds,
to fund reserves for any of those bonds and to pay related costs of the
Department of Transportation.
(9) “Westside lottery bonds” means the bonds issued by this state
under the authority granted in ORS 391.140 that, notwithstanding ORS
267.334, 285B.419, 285B.422, 285B.482, 285B.530 to 285B.548, 286.560 to
286.580, 327.700 to 327.711, 348.716 and 390.060 to 390.067, shall have a
claim on lottery funds that is superior to the claim of the lottery bonds
authorized by ORS 286.560 to 286.580 and 348.716. [1999 c.44 §1; 2005
c.835 §30]Note: 286.560 to 286.580 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 286 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. (1) The Legislative
Assembly declares that the purpose of ORS 286.560 to 286.580 and 348.716
is to combine previously enacted legislation authorizing lottery bonds
into a single Act that provides uniform administrative procedures for all
lottery bonds issued by the State of Oregon.
(2) The lottery bonds issued under ORS 286.560 to 286.580 and
348.716 shall be special obligations of the State of Oregon that are
payable solely from unobligated net lottery proceeds, amounts available
in the Lottery Bond Fund and in any reserve accounts established for
lottery bonds under ORS 286.560 to 286.580 and 348.716 and any
appropriated funds. The faith and credit of the State of Oregon or any of
its taxing power shall not be pledged or committed to the payment of
lottery bonds or any other commitment of the State of Oregon authorized
by ORS 286.560 to 286.580 and 348.716. [1999 c.44 §2]Note: See note under 286.560. (1)
Any legislation authorizing issuance of lottery bonds under ORS 286.560
to 286.580 and 348.716 shall:
(a) State the purposes for which the proceeds of lottery bonds may
be spent;
(b) Contain findings that those uses are lawful uses of lottery
revenues;
(c) Indicate the amount of lottery bonds that may be issued under
the legislation;
(d) Specify the fund into which the net proceeds of those lottery
bonds shall be deposited; and
(e) Provide for the payment of the bond-related costs for the
lottery bonds.
(2) Unless specifically prohibited by the legislation authorizing
lottery bonds:
(a) Any agency or other entity holding net proceeds of lottery
bonds shall, upon the written request of the Director of the Oregon
Department of Administrative Services, transfer to the Oregon Department
of Administrative Services for deposit in the Lottery Bond Administrative
Fund the amounts that the director states in the request are reasonably
required to pay for bond-related costs that are allocable to those net
proceeds.
(b) The agencies or other entities receiving proceeds of lottery
bonds shall, if so directed by the Oregon Department of Administrative
Services, take any action specified by the Oregon Department of
Administrative Services that is necessary to maintain the excludability
of lottery bond interest from gross income under the Internal Revenue
Code. [1999 c.44 §3]Note: See note under 286.560. (1) The Lottery Bond Fund is
established in the State Treasury, separate and distinct from the General
Fund. The amounts of unobligated net lottery proceeds described in ORS
286.576 (2)(a) and (b) and any appropriated funds and investment earnings
of the Lottery Bond Fund shall be credited to the Lottery Bond Fund. The
State Treasurer may establish reserves for lottery bonds as provided in
ORS 286.580 (6). The reserves shall be credited to such account in the
Lottery Bond Fund as the State Treasurer may designate.
(2) The amounts credited to the Lottery Bond Fund are continuously
appropriated only for the purpose of paying, when due, the principal of
and the interest and premium, if any, on outstanding lottery bonds,
funding lottery bond reserves and paying amounts due in connection with
any instrument authorized by ORS 286.580 (6).
(3) The moneys in the Lottery Bond Fund shall be used and applied
solely to pay, when due, the principal of and the interest and premium,
if any, on any lottery bonds, to fund reserves and to pay amounts due
under instruments authorized by ORS 286.580 (6). [1999 c.44 §4]Note: See note under 286.560.Note: Section 9, chapter 44, Oregon Laws 1999, provides:
Sec. 9. (1) The State Treasurer shall merge into the Lottery Bond
Fund the lottery bond funds authorized by ORS 285B.530 to 285B.548,
327.700 to 327.711 and 390.060 to 390.067.
(2) The State Treasurer shall merge into the Lottery Bond
Administrative Fund the lottery bond administrative funds authorized by
ORS 285B.530 to 285B.548, 327.700 to 327.711 and 390.060 to 390.067.
(3) The State Treasurer may merge into a single reserve account the
reserve accounts created for lottery bonds authorized by ORS 285B.530 to
285B.548, 327.700 to 327.711 and 390.060 to 390.067. [1999 c.44 §9] The Lottery
Bond Administrative Fund is established in the State Treasury, separate
and distinct from the General Fund. The amounts of unobligated net
lottery proceeds specified in ORS 286.576 (2)(c), the proceeds of any
lottery bonds issued to pay bond-related costs and the investment
earnings on amounts in the Lottery Bond Administrative Fund shall be
credited to the Lottery Bond Administrative Fund. All moneys credited
from time to time to the Lottery Bond Administrative Fund, including any
investment earnings thereon, are appropriated continuously to the Oregon
Department of Administrative Services only for payment of bond-related
costs. Amounts in the Lottery Bond Administrative Fund shall be disbursed
upon the written request of the Director of the Oregon Department of
Administrative Services. [1999 c.44 §5]Note: See note under 286.560.
(1) Subject only to the availability of unobligated net lottery proceeds,
in each fiscal year in which lottery bonds are outstanding, there shall
be allocated from the Administrative Services Economic Development Fund
created by ORS 461.540 or, if unobligated net lottery proceeds in that
fund are insufficient, from any other fund or account of this state that
contains unobligated net lottery proceeds, an amount of unobligated net
lottery proceeds that is sufficient:
(a) To pay all lottery bond principal, interest and premium, if
any, that is scheduled to be paid in that fiscal year;
(b) To restore the balance in any reserve account for lottery bonds
to the level the state has covenanted to maintain in the account under
ORS 286.580 (6), including any amounts due under an instrument authorized
by ORS 286.580 (6); and
(c) To pay bond-related costs that will be due in that fiscal year.
(2) The amounts of unobligated net lottery proceeds allocated
pursuant to subsection (1) of this section shall be transferred to the
following funds and accounts in the following order of priority:
(a) First, there shall be transferred to the Lottery Bond Fund an
amount of unobligated net lottery proceeds that, when added to any
amounts credited to the Lottery Bond Fund that are available for such
purpose, will be sufficient to pay all amounts of lottery bond principal,
interest and premium scheduled to be paid in that fiscal year;
(b) Second, if the balances in any reserve accounts for lottery
bonds are less than the amounts the state has covenanted to maintain in
those reserve accounts, there shall be transferred to the Lottery Bond
Fund for credit to those reserve accounts amounts of unobligated net
lottery proceeds sufficient to restore the balances in those reserve
accounts to the levels the state has covenanted to maintain; and
(c) Third, any remaining amount shall be transferred to the Lottery
Bond Administrative Fund.
(3) Notwithstanding any other provision of law, in accordance with
section 4 (4), Article XV of the Oregon Constitution, the annual
allocations of unobligated net lottery proceeds made by this section and
the transfers of unobligated net lottery proceeds required to be made by
this section shall be satisfied and credited from the first unobligated
net lottery proceeds received by this state before any other allocation,
appropriation or disbursement of the earnings of the unobligated net
lottery proceeds is made in such fiscal year.
(4) The percentages of revenues of the Oregon State Lottery that
are dedicated for particular purposes under section 4 (4), Article XV of
the Oregon Constitution, shall be calculated without deducting from the
total lottery revenues the amount of unobligated net lottery proceeds
that are required to pay lottery bonds.
(5) If there are not sufficient revenues of the Oregon State
Lottery to pay lottery bonds and to satisfy the percentage dedications
set forth in the Oregon Constitution, the State Treasurer shall, before
issuing any series of lottery bonds, cause a projection of unobligated
net lottery proceeds and lottery bond debt service to be prepared. The
State Treasurer shall not issue a series of lottery bonds if the
projection indicates that there will not be sufficient proceeds of the
Oregon State Lottery to satisfy the percentage dedications of section 4
(4), Article XV of the Oregon Constitution, and to leave unobligated net
lottery proceeds in amounts at least equal to the debt service on all
lottery bonds, including the series proposed to be issued. However, if at
some time in the future a conflict arises because of a decline in
revenues of the Oregon State Lottery, unobligated net lottery proceeds
shall be allocated and applied first to pay lottery bonds, and the
remaining net revenues of the Oregon State Lottery shall be divided pro
rata among the constitutionally dedicated uses.
(6) Notwithstanding any other provision of law, when the
Legislative Assembly enacts laws granting pledges, making dedications or
making appropriations of net proceeds of the Oregon State Lottery for
purposes other than payment of lottery bonds, all such pledges,
dedications and appropriations, whenever granted or made, shall be
subordinate to the pledges and dedications of unobligated net lottery
proceeds for lottery bonds. [1999 c.44 §6]Note: See note under 286.560.
(1) Lottery bonds may be issued pursuant to ORS 286.580 without regard to
any litigation challenging the legality of the Oregon State Lottery.
Lottery bonds issued pursuant to ORS 286.580 are valid and binding
obligations of the State of Oregon that are payable only from amounts
pledged under ORS 286.580 (7) or from appropriated funds, even if the
Oregon State Lottery is partially or wholly invalidated. In the event the
lottery is invalidated, the Oregon Department of Administrative Services
shall request the Legislative Assembly or, if the Legislative Assembly is
not in session, the Emergency Board to provide appropriated funds
pursuant to ORS 286.580 (6).
(2) By enacting this section, the Legislative Assembly acknowledges
its current intention to provide appropriated funds if amounts are
certified by the Director of the Oregon Department of Administrative
Services under ORS 286.580, but the Legislative Assembly or the Emergency
Board does not have a legal obligation to provide appropriated funds.
[2002 s.s.1 c.8 §2]Note: See note under 286.560.(1) In accordance with any applicable provisions of ORS
chapters 286 and 288 and ORS 286.560 to 286.580 and 348.716, the State
Treasurer, with the concurrence of the Director of the Oregon Department
of Administrative Services, may issue lottery bonds from time to time to
finance any lottery bond program and to pay costs of issuing lottery
bonds and administering the lottery bond program, and the State Treasury
may be paid for all bond-related costs the State Treasury incurs.
(2) Lottery bond proceeds and unobligated net lottery proceeds may
be used to pay bond-related costs.
(3) In addition to lottery bonds for any lottery bond program, the
State Treasurer may, at the request of the affected agency or the Oregon
Department of Administrative Services, issue one or more series of
refunding lottery bonds. The refunding lottery bonds shall be structured
so that the amount required to pay those bonds in each year does not
exceed the amount of unobligated net lottery proceeds that could have
been committed to pay the lottery bonds that are refunded. Refunding
lottery bonds shall be issued in such amount as the State Treasurer
determines is necessary or appropriate in order to:
(a) Pay or defease the principal of and the interest and redemption
premium, if any, on the bonds to be refunded; and
(b) Pay any bond-related costs related to the refunding lottery
bonds.
(4) All lottery bonds issued under this section shall be payable
from:
(a) The amount pledged for payment under subsection (7) of this
section; and
(b) Any appropriated funds.
(5) The lottery bonds shall not be general obligations of this
state and shall not be secured by or payable from any funds or assets of
this state other than the amounts pledged for payment or security and any
appropriated funds. The Legislative Assembly shall not be under any legal
compulsion or obligation to provide any appropriated funds and shall not
be liable to any party for any failure to provide appropriated funds. All
lottery bonds issued under ORS 286.560 to 286.580 and 348.716 shall
contain a statement that this state is not obligated to pay lottery bond
principal, interest or premium thereon from any source other than the
amounts pledged for payment and any appropriated funds, and that the full
faith and credit or the taxing power of the State of Oregon are not
pledged to the payment of lottery bond principal, interest or premium.
(6) The State Treasurer may establish reserves for lottery bonds.
The reserves may be in the form of cash, investments, surety bonds,
municipal bond insurance, lines of credit, letters of credit or other
similar instruments. The State Treasurer, on behalf of the State of
Oregon, may covenant to maintain the reserves at particular levels, but
solely from the amounts that may be pledged to pay lottery bonds under
subsection (7) of this section. If the reserves are drawn down below the
level that this state has covenanted to maintain, the Director of the
Oregon Department of Administrative Services shall promptly certify to
the Legislative Assembly or, if the Legislative Assembly is not then in
session, to the Emergency Board, the amount needed to restore the
reserves to their required level. The Legislative Assembly or the
Emergency Board may provide appropriated funds in the amount certified by
the Director of the Oregon Department of Administrative Services. Any
appropriated funds so provided shall be used immediately to restore the
balance in the reserves established for the lottery bonds. The State of
Oregon may enter into covenants with the owners of the lottery bonds that
specify the timing and content of the director’s certification. By
enacting this subsection, the Legislative Assembly acknowledges its
current intention to provide appropriated funds in the amount certified
by the director under this subsection. However, the Legislative Assembly
or the Emergency Board shall not have any legal obligation to provide any
appropriated funds.
(7) Notwithstanding any other provision of law, the State Treasurer
may pledge all or any portion of the unobligated net lottery proceeds,
amounts in the Lottery Bond Fund and any unexpended lottery bond proceeds
to pay lottery bonds and to pay amounts due in connection with any credit
enhancement or any instrument authorized by subsection (6) of this
section. The lien of such pledge shall be valid and binding immediately
upon delivery by the state of the lottery bonds, credit enhancement
agreement or instrument secured by the pledge. The amounts so pledged
shall be immediately subject to the lien of the pledge upon receipt of
the amounts by this state regardless of when or whether they are
allocated or transferred to the Lottery Bond Fund or the Lottery Bond
Administrative Fund and regardless of whether there was physical
delivery, filing or other act. Except to the extent provided in the
pledge, the lien of the pledge shall be superior to all other claims,
liens and appropriations of any kind. The State Treasurer may provide
that lottery bonds may be issued in different series and that each series
may be secured by a lien on, and pledge of, the unobligated net lottery
proceeds that is superior to, subordinate to, or on a parity with, the
lien of the pledge securing other series of lottery bonds. Nothing in
this section shall be construed to limit the powers granted in any other
part of ORS 286.560 to 286.580 and 348.716.
(8) Any covenants made under this section for the benefit of owners
of lottery bonds shall constitute contracts between the State of Oregon
and the owners of lottery bonds. The State Treasurer, or the Director of
the Oregon Department of Administrative Services with the consent of the
State Treasurer, may, on behalf of the State of Oregon and in addition to
the covenants authorized by subsection (6) of this section, make the
following covenants for the benefit of the owners of lottery bonds and
any providers of credit enhancement or instruments authorized by
subsection (6) of this section:
(a) Except as permitted by a pledge made under subsection (7) of
this section, this state shall not create any lien or encumbrance on the
unobligated net lottery proceeds that is superior to the liens of the
pledges authorized by subsection (7) of this section.
(b) Subject only to the availability of unobligated net lottery
proceeds, the State of Oregon shall budget and appropriate in each fiscal
year an amount of unobligated net lottery proceeds that, when added to
other funds lawfully budgeted and appropriated and available for the
purpose, will be sufficient:
(A) To pay in full the principal, interest and premium due and to
become due on all outstanding lottery bonds in the fiscal year;
(B) To maintain the required balance in any reserves established
for lottery bonds; and
(C) To pay amounts due to the providers of credit enhancement for
lottery bonds or instruments authorized by subsection (6) of this section.
(c) This state shall apply the unobligated net lottery proceeds and
any other amounts so budgeted and appropriated for those purposes.
(d) This state shall continue to operate the Oregon State Lottery
until all lottery bonds are paid or defeased.
(9) In connection with the issuance of any lottery bonds, the State
Treasurer may establish such accounts and subaccounts within the Lottery
Bond Fund that the State Treasurer determines are necessary or
appropriate. In addition, the State Treasurer or the Director of the
Oregon Department of Administrative Services may, on behalf of this
state, enter into any agreements that the State Treasurer determines are
necessary or appropriate to issue lottery bonds and carry out the
provisions of ORS 286.560 to 286.580 and 348.716 and all legislation
authorizing lottery bond programs.
(10) If the State Treasurer determines that the acquisition is
cost-effective, the State Treasurer may acquire a municipal bond
insurance policy, letter of credit, line of credit, surety bond or other
credit enhancement device for lottery bonds, and may enter into any
related agreements.
(11) The State Treasurer may provide that all or any portion of the
Lottery Bond Fund, the Lottery Bond Administrative Fund or any accounts
in either fund shall be held by a trustee, may enter into agreements with
the trustee regarding the use and application of the amounts held in
those funds and accounts and may transfer amounts credited to those funds
and accounts to the trustee. [1999 c.44 §7]Note: See note under 286.560.(1) Pursuant to ORS 286.560 to 286.580 and 348.716 and
subject to future legislative approval, lottery bonds may be issued to
make grants or loans to Oregon cities to fund projects for the
reconstruction, renovation or development of community sports facilities
in order to make the facilities suitable for use by a major league
baseball team if a city is selected as an expansion site by major league
baseball or if a major league baseball team agrees to relocate to a city.
(2) The use of lottery bond proceeds is authorized based on the
following findings:
(a) The financial assistance to cities will assist in the
construction, improvement and expansion of infrastructure and community
facilities that comprise the physical foundation for commercial activity
and provide the basic framework for continued and expanded economic
opportunities and quality communities throughout Oregon.
(b) Such financial assistance to cities will therefore promote
economic development within this state, and thus the use of net proceeds
derived from the operation of the Oregon State Lottery to pay debt
service on lottery bonds issued under this section to provide such
financial assistance to cities is an appropriate use of state lottery
funds under section 4, Article XV of the Oregon Constitution, and ORS
461.510.
(3) Lottery bonds issued pursuant to this section shall be issued
only at the request of the Director of the Economic and Community
Development Department.
(4) The net proceeds of lottery bonds issued pursuant to this
section shall be deposited in the Economic Infrastructure Project Fund
established by ORS 285B.551. The Director of the Economic and Community
Development Department shall allocate the moneys deposited in the
Economic Infrastructure Project Fund for the purpose described in this
section in accordance with the policies developed by the Oregon Economic
and Community Development Commission in accordance with ORS 285A.045.
(5) The proceeds of lottery bonds issued pursuant to this section
shall be used only for the purposes set forth in this section and for
bond-related costs. [1999 c.908 §17]Note: 286.585 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 286 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.PRIVATE ACTIVITY BONDS As used in ORS
286.605 to 286.645:
(1) “Issuer” means an entity that may issue private activity bonds
that are qualified bonds on which the interest is exempt from federal
taxation.
(2) “Private activity bonds” has the meaning given in section 141
of the Internal Revenue Code of 1986. [1985 c.806 §19; 1987 c.754 §1;
1995 c.79 §100; 2005 c.113 §1](1) The Private Activity Bond Committee is
established. It shall consist of one representative each from the Oregon
Department of Administrative Services and from the State Treasurer and
one public representative appointed to serve at the pleasure of the
Governor.
(2) The representative from the department shall serve as chair of
the committee.
(3) The purpose of private activity bonding in this state shall be
to maximize the economic benefits of such bonding to the citizens of this
state. To this end, the committee shall adopt by rule standards for
amounts allotted to it for further allocation for economic development,
housing, education, redevelopment, public works, energy, waste
management, waste and recycling collection, transportation and other
activities which the committee determines will benefit the citizens of
this state. In developing standards, the committee shall:
(a) Survey the expected need for private activity bond allocations
at least once each year;
(b) Develop strategies for reserving and allocating the limit which
are designed to maximize the availability of tax exempt financing among
competing sectors of the Oregon economy; and
(c) Ensure that such standards include but are not limited to:
(A) Support projects that increase the number of family wage jobs
in this state.
(B) Promote economic recovery in small cities heavily dependent on
a single industry.
(C) Emphasize development in underdeveloped rural areas of this
state.
(D) Utilize educational resources available at institutions of
higher education.
(E) Support development of the state’s small businesses, especially
businesses owned by women and members of minority groups.
(F) Encourage use of Oregon’s human and natural resources in
endeavors which harness Oregon’s economic comparative advantages.
(G) Limit assistance to projects that assist businesses selling
goods and services in markets for which national or international
competition exists.
(4) The state private activity bond limit allotted to the Private
Activity Bond Committee as provided in ORS 286.635 shall be allocated and
reallocated among issuers by the Private Activity Bond Committee as
follows:
(a) Any amounts not reserved to an issuer or a class of issuers
under the limitation adopted under ORS 286.525 shall be allocated or
reallocated by the committee under rules adopted under subsection (3) of
this section.
(b) Any amounts provided for in the limitation under ORS 286.525
that are unused shall be carried forward for use as provided by rules
adopted under subsection (3) of this section.
(c) The rules adopted by the committee shall limit the period of
time for which an allocation of private activity bonding authority is
effective. Such rules shall insure allocations made during a calendar
year shall be used during that calendar year or the unused amount of the
allocation shall be reallocated during that calendar year.
(5) Unused allocations shall not be transferable among issuers but
shall be available for reallocation. [1985 c.806 §21; 1987 c.754 §2; 1991
c.142 §1; 2001 c.680 §1]
Private activity bonds shall be subject to ORS 286.505 to 286.545. [1985
c.806 §20; 1987 c.754 §4] The office of State
Treasurer shall maintain the official state private activity bond limit
records and provide administrative support to the Private Activity Bond
Committee and the Advisory Council on the Allocation of the State Private
Activity Bond Limit. [1985 c.806 §23]BACCALAUREATE BONDS (1) The
Legislative Assembly encourages citizens of the State of Oregon to avail
themselves of post-secondary education opportunities.
(2) The Legislative Assembly finds:
(a) For the benefit of its citizens, the state supports a system of
common schools, institutions of higher education and community colleges.
(b) A post-secondary education advances a citizen’s ability to
pursue life, liberty and happiness through a wide range of employment
opportunities.
(c) A well educated citizenry contributes to the economic
well-being of the state and nation.
(d) A well trained and skilled citizenry enhances economic
development of the state.
(e) While students have just begun their education upon completion
of a formal education, a lifetime pursuit of learning contributes to a
well informed citizenry and to Oregon’s cherished quality of life.
(f) Citizens educated in Oregon are more likely to pursue careers
in Oregon.
(g) It is in the interest of the state to encourage its citizens to
plan and save for a post-secondary education.
(h) An Oregon Baccalaureate Bond program providing citizens an
opportunity to save for a post-secondary education for their children,
themselves or any citizen is in the social and economic self-interest of
the State of Oregon.
(i) A systematic way to save for post-secondary education can
assist all of Oregon’s higher education, community college and career
schools to better project enrollments, thereby permitting the prudent
allocation of scarce resources. [1989 c.681 §3; 1995 c.343 §25]
(1) “Oregon Baccalaureate Bonds” means bonds, notes or other
evidences of indebtedness of the State of Oregon issued by the State
Treasurer on behalf of a state agency.
(2) “Post-secondary education” means training and instruction
provided by fully accredited public or private institutions of higher
learning, community colleges and post-high-school career schools.
(3) “Post-secondary institution” means any fully accredited public
or private institution of higher education, community college or career
school providing post-high-school training and instruction. [1989 c.681
§4; 1995 c.343 §26]
(1) Notwithstanding any other provisions of law, in consultation with the
administrative head of the state agency responsible for administering the
bond proceeds, the State Treasurer may:
(a) Structure, market and issue bonds in the manner which the State
Treasurer determines is in the best interests of the citizens of Oregon,
after considering financial, economic and social factors;
(b) Sell bonds at public sale or private, negotiated sale;
(c) Pursuant to paragraph (a) of this subsection, issue bonds as
Oregon Baccalaureate Bonds, to encourage investors to save for
post-secondary education opportunities; and
(d) Permit sale of bonds to be made by negotiated sale if the State
Treasurer finds one or more of the following to be true:
(A) The current conditions of the credit markets are such that
delays associated with the competitive sale process will likely result in
higher interest rates to the state; or
(B) The total cost to the state of the proposed bond issue will
likely be lower under a negotiated sale.
(2) The State Treasurer may investigate and implement the means and
procedures to facilitate the participation by the broadest practical
range of investors in the Oregon Baccalaureate Bond program. The means
and procedures may include, but are not limited to, adjustments in the
denominations in which the bonds are issued and the frequency with which
such bonds are issued.
(3) For purposes of this section:
(a) “Bonds” means any certificates of indebtedness, bonds, notes,
warrants, lease purchase agreements, installment purchase agreements,
certificates of participation or other general or special obligations of
the State of Oregon or any of its agencies.
(b) “Total cost to the state” includes the difference between the
bonds’ true interest cost computed to give effect to all components of
underwriter’s discount and expenses of the transaction paid directly or
indirectly by the state and its agencies. [1989 c.681 §5; 1995 c.186 §1]The purchase of an Oregon Baccalaureate Bond does not
guarantee the purchaser, owner or beneficiary of the bond admittance to
any public or private post-secondary institution. [1989 c.681 §6]ORS 286.038, 286.056 and 286.700 to 286.720
may be cited as the “Oregon Baccalaureate Bond Act of 1989.” [1989 c.681
§2]PENSION LIABILITY BONDS As used in ORS
286.730 to 286.750, unless the context requires otherwise:
(1) “Article XI-O bonds” means general obligation bonds or other
general obligation indebtedness issued or incurred under the authority of
Article XI-O of the Oregon Constitution.
(2) “Bond administration fund” means the Article XI-O Bond
Administration Fund established under ORS 286.745.
(3) “Bond fund” means the Article XI-O Bond Fund established under
ORS 286.740.
(4) “Bond-related costs” means:
(a) The costs of paying the principal of, the interest on and the
premium, if any, on Article XI-O bonds;
(b) The costs and expenses of issuing, administering and
maintaining Article XI-O bonds including, but not limited to, redeeming
Article XI-O bonds, paying amounts due in connection with bond insurance,
other credit enhancements or the administrative costs and expenses of the
State Treasurer and the Oregon Department of Administrative Services,
including costs of consultants or advisors retained by the State
Treasurer or the Oregon Department of Administrative Services for the
purpose of issuing, administering or maintaining Article XI-O bonds;
(c) Capitalized interest on Article XI-O bonds;
(d) Costs of funding reserves for Article XI-O bonds, including
costs of surety bonds and similar instruments;
(e) Rebates or penalties due the United States Government in
connection with Article XI-O bonds; and
(f) Other costs or expenses that the State Treasurer or the
Director of the Oregon Department of Administrative Services determines
are necessary or desirable in connection with issuing, administering or
maintaining Article XI-O bonds.
(5) “State agency” means a state officer, board, commission,
corporation, institution, department or other state organization that has
officers or employees participating in the Public Employees Retirement
System. [2003 c.746 §2](1) Article XI-O
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-O bonds. The
State of Oregon shall pledge its full faith and credit and taxing power
to pay Article XI-O bonds; however, the ad valorem taxing power of the
State of Oregon may not be pledged to pay Article XI-O bonds.
(2) The State Treasurer may issue Article XI-O bonds:
(a) To finance all or a portion of the state’s pension liabilities
for retirement, health care or disability benefits, in an amount that
produces net proceeds that do not exceed the State Treasurer’s estimate
of those liabilities based on information provided to the State Treasurer
by the Public Employees Retirement System, plus an amount determined by
the State Treasurer to pay estimated bond-related costs. If Article XI-O
bonds are issued for a purpose described in this paragraph, the Director
of the Oregon Department of Administrative Services shall allocate the
bond-related costs of those Article XI-O bonds among affected state
agencies based on their payroll costs and shall bill those state agencies
for an appropriate share of the bond-related costs on a monthly or other
periodic basis. A state agency receiving a bill under this paragraph
shall pay the amounts billed from the first moneys legally available to
the state agency after paying the costs incurred for obligations under
ORS 283.085 to 283.092.
(b) To refund Article XI-O bonds. The amount of Article XI-O bonds
issued under this paragraph may not exceed the estimated costs of paying,
redeeming or defeasing the refunded bonds, plus an amount determined by
the State Treasurer to pay estimated bond-related costs. If Article XI-O
bonds are issued under this paragraph, the Director of the Oregon
Department of Administrative Services shall bill a state agency that was
responsible for payment of the refunded bonds for an appropriate share of
the bond-related costs on a monthly or other periodic basis. A state
agency receiving a bill under this paragraph shall pay the amounts billed
from the first moneys legally available to the state agency after paying
the costs incurred for obligations under ORS 283.085 to 283.092.
(3) The net proceeds of Article XI-O bonds issued to finance all or
a portion the state’s pension liabilities for retirement, health care or
disability benefits must be transferred to the Public Employees
Retirement Board for deposit in the Public Employees Retirement Fund
established under ORS 238.660. [2003 c.746 §3] (1) The Article XI-O Bond
Fund is established in the State Treasury, separate and distinct from the
General Fund. 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-O bonds. The Oregon Department
of Administrative Services shall credit to the bond fund:
(a) Capitalized or accrued interest on Article XI-O bonds;
(b) Amounts appropriated or otherwise provided by the Legislative
Assembly for deposit in the bond fund;
(c) Reserves established for the payment of Article XI-O bonds; and
(d) Amounts received in payment of a bill for bond-related costs in
amounts and at times so that sufficient moneys are available in the bond
fund to pay the principal of, the interest on and the premium, if any, on
Article XI-O bonds when due.
(2) The department may create separate accounts in the bond fund
for reserves and debt service for each series of Article XI-O bonds.
[2003 c.746 §4] (1) The
Article XI-O Bond Administration Fund is established in the State
Treasury, separate and distinct from the General Fund. 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-O bonds that were issued to pay
bond-related costs that are not credited to the bond fund;
(b) Amounts appropriated or otherwise provided by the Legislative
Assembly for deposit in the bond administration fund; and
(c) Amounts received in payment of a bill for bond-related costs
that are not credited to the bond fund.
(2) The department may create separate accounts in the bond
administration fund. [2003 c.746 §5](1) In accordance with the applicable
provisions of this chapter and ORS chapter 288, the State Treasurer,
after consulting with the Director of the Oregon Department of
Administrative Services, may issue Article XI-O bonds from time to time
for the purposes described in ORS 286.735 (2).
(2) Article XI-O bonds may:
(a) Be sold at a competitive or negotiated sale;
(b) Bear interest that is includable in or excludable from gross
income under the Internal Revenue Code; and
(c) Be sold on terms approved by the State Treasurer, including
terms related to the time of sale, the issuance of bonds in series, the
maturity of each series and the interest borne by each series of bonds.
(3) Subject to the approval of the State Treasurer, the Director of
the Oregon Department of Administrative Services may:
(a) Acquire municipal bond insurance, a letter of credit, a line of
credit, surety bonds or another credit enhancement device for Article
XI-O bonds; and
(b) Enter into related agreements.
(4) Subject to the approval of the State Treasurer, the Director of
the Oregon Department of Administrative Services may:
(a) Enter into agreements with a trustee or escrow agent regarding
the use and application of the amounts held in the Article XI-O Bond Fund
or the Article XI-O Bond Administration Fund; and
(b) Transfer amounts credited to the bond fund or the bond
administration fund to a trustee or escrow agent. [2003 c.746 §6]SEISMIC REHABILITATION BONDS(Public Education Buildings) As used in ORS
286.760 to 286.772, unless the context requires otherwise:
(1) “Article XI-M bonds” means general obligation bonds or other
general obligation indebtedness issued or incurred under the authority of
Article XI-M of the Oregon Constitution.
(2) “Bond administration fund” means the Article XI-M Bond
Administration Fund established under ORS 286.766.
(3) “Bond fund” means the Article XI-M Bond Fund established under
ORS 286.764.
(4) “Bond-related costs” means:
(a) The costs of paying the principal of, the interest on and the
premium, if any, on Article XI-M bonds;
(b) The costs and expenses of issuing, administering and
maintaining Article XI-M bonds including, but not limited to, redeeming
Article XI-M bonds and paying amounts due in connection with bond
insurance, other credit enhancements or the administrative costs and
expenses of the State Treasurer and the Oregon Department of
Administrative Services, including costs of consultants or advisers
retained by the State Treasurer or the department for the purpose of
issuing, administering or maintaining Article XI-M bonds;
(c) Capitalized interest on Article XI-M bonds;
(d) Costs of funding reserves for Article XI-M bonds, including
costs of surety bonds and similar instruments;
(e) Rebates or penalties due the United States Government in
connection with Article XI-M 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-M bonds.
(5) “Seismic fund” means the Education Seismic Fund established
under ORS 286.768.
(6) “State share of costs” means the total costs and related
expenses of the seismic rehabilitation of public education buildings,
minus contributions for seismic rehabilitation from the applicants as
required by the Office of Emergency Management. [2005 c.814 §2] (1) Article
XI-M 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-M bonds. The State of Oregon shall pledge its full faith and credit
and taxing power to pay Article XI-M bonds, except that the ad valorem
taxing power of the State of Oregon may not be pledged to pay Article
XI-M bonds.
(2) The State Treasurer, with the concurrence of the Director of
the Oregon Department of Administrative Services, may issue Article XI-M
bonds:
(a) Subject to the limit on bond issuance established for the
particular biennium in ORS 286.505 to 286.545 and at the request of the
Director of the Office of Emergency Management, for the purpose of
financing all or a portion of the state share of costs to plan and
implement seismic rehabilitation of public education buildings in the
amount of the state share of costs, plus an amount determined by the
State Treasurer to pay estimated bond-related costs.
(b) To refund Article XI-M bonds. The amount of Article XI-M bonds
issued under this paragraph may not exceed the estimated costs of paying,
redeeming or defeasing the refunded bonds, plus an amount determined by
the State Treasurer to pay estimated bond-related costs.
(3) The State Treasurer shall transfer the net proceeds of Article
XI-M bonds issued for the purpose described in subsection (2)(a) of this
section to the Office of Emergency Management for deposit in the
Education Seismic Fund established under ORS 286.768. [2005 c.814 §3] (1) The Article XI-M 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-M bonds. The department shall
deposit in the bond fund:
(a) Capitalized or accrued interest on Article XI-M 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-M bonds.
(2) The department may create separate accounts in the bond fund
for reserves and debt service for each series of Article XI-M bonds.
[2005 c.814 §4] (1) The
Article XI-M 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-M 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 Education Seismic Fund by the
Office of Emergency Management as provided in ORS 286.768.
(2) The department may create separate accounts in the bond
administration fund. [2005 c.814 §5] (1) The Education
Seismic Fund is established in the State Treasury, separate and distinct
from the General Fund. Amounts in the seismic fund may be invested as
provided in ORS 293.701 to 293.820, and interest earned on the seismic
fund must be credited to the seismic fund. Amounts credited to the
seismic fund are continuously appropriated to the Office of Emergency
Management for the purpose described in ORS 286.762 (2)(a) and for the
purpose of paying bond-related costs. The office shall deposit in the
seismic fund:
(a) The net proceeds of Article XI-M bonds transferred pursuant to
ORS 286.762 (3);
(b) Amounts appropriated or otherwise provided by the Legislative
Assembly for deposit in the seismic fund;
(c) Gifts, grants or contributions received by the office for the
purpose described in ORS 286.762 (2)(a); and
(d) Moneys received as repayment of, as a return on or in exchange
for the grant or loan of net proceeds of Article XI-M bonds.
(2) The office may create separate accounts in the seismic fund as
appropriate for the management of moneys in the seismic fund.
(3) The office and any other state agency or other entity receiving
or holding net proceeds of Article XI-M bonds shall, at the direction of
the Oregon Department of Administrative Services, take action necessary
to maintain the excludability of interest on Article XI-M bonds from
gross income under the Internal Revenue Code.
(4) The office shall transfer to the Article XI-M Bond
Administration Fund the unexpended and uncommitted amounts remaining in
the seismic fund if:
(a) Unexpended funds that are not contractually committed to a
particular purpose remain in the seismic fund on the last day of the
biennium; and
(b) Article XI-M bonds will be outstanding in the next biennium.
(5) The office may adopt rules to carry out this section including,
but not limited to, establishing:
(a) Required contributions from applicants;
(b) Fees;
(c) Standards, terms and conditions under which moneys in the
seismic fund may be granted, loaned or otherwise made available; and
(d) Procedures for distributing and monitoring the use of moneys
from the seismic fund. [2005 c.814 §6](1) In accordance with the applicable provisions of this
chapter and ORS chapter 288, Article XI-M bonds may:
(a) Be sold at a competitive or negotiated sale;
(b) Bear interest that is includable or excludable from gross
income under the Internal Revenue Code; and
(c) Be sold on terms approved by the State Treasurer, including
terms related to the time of sale, the issuance of Article XI-M bonds in
series, the maturity of each series and the interest borne by each series
of Article XI-M bonds.
(2) Subject to the approval of the State Treasurer, the Director of
the Oregon Department of Administrative Services may:
(a) Acquire municipal bond insurance, a letter of credit, a line of
credit, surety bonds or another credit enhancement device for Article
XI-M bonds; and
(b) Enter into related agreements. [2005 c.814 §7] For each biennium in which
Article XI-M 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-M Bond Fund and the Article XI-M Bond
Administration Fund, is sufficient to pay the bond-related costs that are
scheduled to come due in the biennium. [2005 c.814 §8](Emergency Services Buildings) As used in ORS
286.780 to 286.792, unless the context requires otherwise:
(1) “Article XI-N bonds” means general obligation bonds or other
general obligation indebtedness issued or incurred under the authority of
Article XI-N of the Oregon Constitution.
(2) “Bond administration fund” means the Article XI-N Bond
Administration Fund established under ORS 286.786.
(3) “Bond fund” means the Article XI-N Bond Fund established under
ORS 286.784.
(4) “Bond-related costs” means:
(a) The costs of paying the principal of, the interest on and the
premium, if any, on Article XI-N bonds;
(b) The costs and expenses of issuing, administering and
maintaining Article XI-N bonds including, but not limited to, redeeming
Article XI-N bonds and paying amounts due in connection with bond
insurance, other credit enhancements or the administrative costs and
expenses of the State Treasurer and the Oregon Department of
Administrative Services, including costs of consultants or advisers
retained by the State Treasurer or the department for the purpose of
issuing, administering or maintaining Article XI-N bonds;
(c) Capitalized interest on Article XI-N bonds;
(d) Costs of funding reserves for Article XI-N bonds, including
costs of surety bonds and similar instruments;
(e) Rebates or penalties due the United States Government in
connection with Article XI-N 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-N bonds.
(5) “Seismic fund” means the Emergency Services Seismic Fund
established under ORS 286.788.
(6) “State share of costs” means the total costs and related
expenses of the seismic rehabilitation of emergency services buildings,
minus contributions for seismic rehabilitation from the applicants as
required by the Office of Emergency Management. [2005 c.815 §2] (1) Article
XI-N 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-N bonds. The State of Oregon shall pledge its full faith and credit
and taxing power to pay Article XI-N bonds, except that the ad valorem
taxing power of the State of Oregon may not be pledged to pay Article
XI-N bonds.
(2) The State Treasurer, with the concurrence of the Director of
the Oregon Department of Administrative Services, may issue Article XI-N
bonds:
(a) Subject to the limit on bond issuance established for the
particular biennium in ORS 286.505 to 286.545 and at the request of the
Director of the Office of Emergency Management, for the purpose of
financing all or a portion of the state share of costs to plan and
implement seismic rehabilitation of emergency services buildings in the
amount of the state share of costs, plus an amount determined by the
State Treasurer to pay estimated bond-related costs.
(b) To refund Article XI-N bonds. The amount of Article XI-N bonds
issued under this paragraph may not exceed the estimated costs of paying,
redeeming or defeasing the refunded bonds, plus an amount determined by
the State Treasurer to pay estimated bond-related costs.
(3) The State Treasurer shall transfer the net proceeds of Article
XI-N bonds issued for the purpose described in subsection (2)(a) of this
section to the Office of Emergency Management for deposit in the
Emergency Services Seismic Fund established under ORS 286.788. [2005
c.815 §3] (1) The Article XI-N 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-N bonds. The department shall
deposit in the bond fund:
(a) Capitalized or accrued interest on Article XI-N 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-N bonds.
(2) The department may create separate accounts in the bond fund
for reserves and debt service for each series of Article XI-N bonds.
[2005 c.815 §4] (1) The
Article XI-N 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-N 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 Emergency Services Seismic Fund by
the Office of Emergency Management as provided in ORS 286.788.
(2) The department may create separate accounts in the bond
administration fund. [2005 c.815 §5] (1) The
Emergency Services Seismic Fund is established in the State Treasury,
separate and distinct from the General Fund. Amounts in the seismic fund
may be invested as provided in ORS 293.701 to 293.820, and interest
earned on the seismic fund must be credited to the seismic fund. Amounts
credited to the seismic fund are continuously appropriated to the Office
of Emergency Management for the purpose described in ORS 286.782 (2)(a)
and for the purpose of paying bond-related costs. The office shall
deposit in the seismic fund:
(a) The net proceeds of Article XI-N bonds transferred pursuant to
ORS 286.782 (3);
(b) Amounts appropriated or otherwise provided by the Legislative
Assembly for deposit in the seismic fund;
(c) Gifts, grants or contributions received by the office for the
purpose described in ORS 286.782 (2)(a); and
(d) Moneys received as repayment of, as a return on or in exchange
for the grant or loan of net proceeds of Article XI-N bonds.
(2) The office may create separate accounts in the seismic fund as
appropriate for the management of moneys in the seismic fund.
(3) The office and any other state agency or other entity receiving
or holding net proceeds of Article XI-N bonds shall, at the direction of
the Oregon Department of Administrative Services, take action necessary
to maintain the excludability of interest on Article XI-N bonds from
gross income under the Internal Revenue Code.
(4) The office shall transfer to the Article XI-N Bond
Administration Fund the unexpended and uncommitted amounts remaining in
the seismic fund if:
(a) Unexpended funds that are not contractually committed to a
particular purpose remain in the seismic fund on the last day of the
biennium; and
(b) Article XI-N bonds will be outstanding in the next biennium.
(5) The office may adopt rules to carry out this section including,
but not limited to, establishing:
(a) Required contributions from applicants;
(b) Fees;
(c) Standards, terms and conditions under which moneys in the
seismic fund may be granted, loaned or otherwise made available; and
(d) Procedures for distributing and monitoring the use of moneys
from the seismic fund. [2005 c.815 §6](1) In accordance with the applicable provisions of this
chapter and ORS chapter 288, Article XI-N bonds may:
(a) Be sold at a competitive or negotiated sale;
(b) Bear interest that is includable or excludable from gross
income under the Internal Revenue Code; and
(c) Be sold on terms approved by the State Treasurer, including
terms related to the time of sale, the issuance of Article XI-N bonds in
series, the maturity of each series and the interest borne by each series
of Article XI-N bonds.
(2) Subject to the approval of the State Treasurer, the Director of
the Oregon Department of Administrative Services may:
(a) Acquire municipal bond insurance, a letter of credit, a line of
credit, surety bonds or another credit enhancement device for Article
XI-N bonds; and
(b) Enter into related agreements. [2005 c.815 §7] For each biennium in which
Article XI-N 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-N Bond Fund and the Article XI-N Bond
Administration Fund, is sufficient to pay the bond-related costs that are
scheduled to come due in the biennium. [2005 c.815 §8]
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