Bill Text: OR HB2970 | 2011 | Regular Session | Enrolled
Bill Title: Relating to state finance; and declaring an emergency.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2011-08-02 - Chapter 667, (2011 Laws): Effective date August 2, 2011. [HB2970 Detail]
Download: Oregon-2011-HB2970-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2970
Sponsored by Representative JENSON; Representative G SMITH
(Presession filed.)
CHAPTER ................
AN ACT
Relating to state finance; amending ORS 295.048 and 295.101 and
sections 13 and 29, chapter 101, Oregon Laws 2010; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. Section 13, chapter 101, Oregon Laws 2010, is
amended to read:
{ + Sec. 13. + } (1) { - Until June 30, 2013, - } The
State Treasurer may accept moneys from any public or private
source, including a credit union or an association of credit
unions, for the purpose of paying initial { + or continuing + }
expenses related to administering the provisions of section
12 { + , chapter 101, Oregon Laws 2010 + } { - of this 2010
Act - } .
(2) The State Treasurer shall deposit moneys the State
Treasurer receives under this section into the Miscellaneous
Receipts Account established for the State Treasurer in the
General Fund. Notwithstanding the provisions of ORS 295.106,
moneys the State Treasurer receives under this section are
continuously appropriated to the State Treasurer for the purpose
of paying the State Treasurer's initial { + or continuing + }
expenses related to administering section 12 { + , chapter 101,
Oregon Laws 2010 + }
{ - of this 2010 Act - } . The State Treasurer shall expend the
moneys in accordance with the terms and conditions upon which the
moneys were made available.
SECTION 2. Section 29, chapter 101, Oregon Laws 2010, is
amended to read:
{ + Sec. 29. + } (1) { + Subject to subsection (2) of this
section, + } sections 12, 13, 13a and 13b { + , chapter 101,
Oregon Laws 2010, + } { - of this 2010 Act - } and the
amendments to ORS 295.001, 295.002, 295.004, 295.006, 295.008,
295.013, 295.015, 295.018, 295.031, 295.034, 295.041, 295.046,
295.048, 295.053, 295.061, 295.071, 295.073, 295.081, 295.084,
295.091, 295.108, 295.205, 576.375 and 711.410 by sections 1 to
10, 14 to 23 and 25 to 28 { + , chapter 101, Oregon Laws
2010, + } { - of this 2010 Act - } become operative January 1,
2013.
{ + (2) If the State Treasurer determines that the conditions
described in section 13a (1), chapter 101, Oregon Laws 2010, have
been satisfied, the State Treasurer shall implement sections 12
and 13b, chapter 101, Oregon Laws 2010, and the amendments to ORS
Enrolled House Bill 2970 (HB 2970-A) Page 1
295.001, 295.002, 295.004, 295.006, 295.008, 295.013, 295.015,
295.018, 295.031, 295.034, 295.041, 295.046, 295.048, 295.053,
295.061, 295.071, 295.073, 295.081, 295.084, 295.091, 295.108,
295.205, 576.375 and 711.410 by sections 1 to 10, 14 to 23 and 25
to 28, chapter 101, Oregon Laws 2010, not later than 180 days
after the date the State Treasurer determines that the conditions
described in section 13a (1), chapter 101, Oregon Laws 2010, have
been satisfied. + }
{ - (2) - } { + (3) + } The State Treasurer and the
Director of the Department of Consumer and Business Services may
take any action before January 1, 2013, that is necessary to
enable the State Treasurer and the director to exercise, on and
after January 1, 2013, all the duties, functions and powers
conferred on the State Treasurer and the director by sections 12,
13, 13a and 13b { + , chapter 101, Oregon Laws 2010, + } { - of
this 2010 Act - } and the amendments to ORS 295.001, 295.002,
295.004, 295.006, 295.008, 295.013, 295.015, 295.018, 295.031,
295.034, 295.041, 295.046, 295.048, 295.053, 295.061, 295.071,
295.073, 295.081, 295.084, 295.091, 295.108, 295.205, 576.375 and
711.410 by sections 1 to 10, 14 to 23 and 25 to 28 { + , chapter
101, Oregon Laws 2010 + } { - of this 2010 Act - } .
SECTION 3. ORS 295.048 is amended to read:
295.048. (1) Notwithstanding ORS 295.046, a bank depository may
not permit the aggregate of public funds deposits on deposit with
the bank depository from all public officials to exceed at any
time:
(a) 100 percent of the value of the bank depository's net
worth, if the bank depository is an undercapitalized bank
depository;
(b) 150 percent of the value of the bank depository's net
worth, if the bank depository is an adequately capitalized bank
depository;
(c) 200 percent of the value of the bank depository's net
worth, if the bank depository is a well capitalized bank
depository; or
(d) 30 percent of the total aggregate uninsured public funds
deposits of all public officials in all bank depositories as
reported in the most recent notice received by the bank
depository from the State Treasurer.
(2) The State Treasurer shall notify each bank depository and
its custodian of the total aggregate uninsured public funds
deposits of all public officials in all bank depositories, based
on the most recently submitted treasurer reports. The treasurer
shall give the notification required by this subsection by the
last day of the month in which bank depositories are required to
submit a treasurer report.
(3) If a bank depository's aggregate of uninsured public funds
deposits exceeds the amount set forth in subsection (1) of this
section, the bank depository shall, within three business days
after receipt of notice from the State Treasurer, cease accepting
deposits of uninsured public funds.
(4) Notwithstanding subsections (1) and (3) of this section:
(a) A bank depository may accept and hold uninsured public
funds deposits in excess of the limits provided in subsection (1)
of this section if the State Treasurer, upon good cause shown,
approves the request of the bank depository to hold uninsured
public funds in excess of the limits provided in subsection (1)
of this section for a period not exceeding 90 days and eligible
securities are deposited with the bank depository's custodian as
collateral in an amount at least equal to the amount of the
Enrolled House Bill 2970 (HB 2970-A) Page 2
uninsured public funds deposits in excess of the limits provided
in subsection (1) of this section. { + Upon the expiration of
the 90-day period, if the bank depository does not comply with
the limits specified in subsection (1) of this section, the bank
depository shall, within three business days after receiving
notice from the State Treasurer, cease accepting deposits of
uninsured public funds. + }
(b) The limits of subsection (1) of this section do not apply
to public funds deposits held by a bank depository in a
certificate of deposit or time deposit under ORS 295.004.
(c) A well capitalized bank depository or an adequately
capitalized bank depository may accept and hold public funds
deposits in excess of the limit provided in subsection (1)(d) of
this section if eligible securities are deposited with the bank
depository's custodian as collateral in an amount at least equal
to the amount of the public funds deposits in excess of the limit
prescribed in subsection (1)(d) of this section.
{ + (5) If the State Treasurer notifies a bank depository
that it must cease accepting deposits of uninsured public funds
under subsection (3) or (4) of this section, the State Treasurer
may also notify public officials who have deposited uninsured
public funds in the bank depository that within 15 business days
after the public official receives the notice from the State
Treasurer, the public official must withdraw from the bank
depository to which the notice applies all uninsured public funds
deposits that exceed the limit specified in subsection (1)(d) of
this section. A public official who is notified by the State
Treasurer under this subsection must begin to withdraw funds as
specified in the notice. Except as required by any applicable law
or regulation, a bank depository may not impose an early
withdrawal penalty or a forfeiture of interest with respect to a
withdrawal made pursuant to this subsection. + }
SECTION 4. ORS 295.048, as amended by section 16, chapter 101,
Oregon Laws 2010, is amended to read:
295.048. (1) Notwithstanding ORS 295.046, a depository may not
permit the aggregate of public funds deposits on deposit with the
depository from all public officials to exceed at any time the
lesser of:
(a) 100 percent of the value of the depository's net worth, if
the depository is an undercapitalized depository;
(b) 150 percent of the value of the depository's net worth, if
the depository is an adequately capitalized depository;
(c) 200 percent of the value of the depository's net worth, if
the depository is a well capitalized depository;
(d) For a bank depository, 30 percent of the total aggregate
public funds deposits of all public officials in all bank
depositories as reported in the most recent notice the bank
depository received from the State Treasurer; or
(e) For a credit union depository, 30 percent of the total
aggregate public funds deposits of all public officials in all
credit union depositories as reported in the most recent notice
the credit union depository received from the State Treasurer.
(2) The State Treasurer shall notify each bank depository or
credit union depository and the depository's custodian of the
total aggregate public funds deposits of all public officials in
all bank depositories or credit union depositories, as
appropriate, based on the most recently submitted treasurer
reports. The State Treasurer shall give the notification required
by this subsection by the last day of the month in which the
depositories are required to submit a treasurer report.
Enrolled House Bill 2970 (HB 2970-A) Page 3
(3) If a depository's aggregate of public funds deposits
exceeds the amount set forth in subsection (1) of this section,
the depository shall, within three business days after receiving
notice from the State Treasurer, cease accepting deposits of
public funds.
(4) Notwithstanding subsections (1) and (3) of this section:
(a) A depository may accept and hold public funds deposits in
excess of the limits specified in subsection (1) of this section
if the State Treasurer, upon good cause shown, approves the
depository's request to hold public funds in excess of the limits
specified in subsection (1) of this section for a period not
exceeding 90 days and eligible securities are deposited with the
depository's custodian as collateral in an amount at least equal
to the amount of the uninsured public funds deposits that exceeds
the limits specified in subsection (1) of this section. { + Upon
the expiration of the 90-day period, if the depository does not
comply with the limits specified in subsection (1) of this
section, the depository shall, within three business days after
receiving notice from the State Treasurer, cease accepting
deposits of public funds. + }
(b) The limits specified in subsection (1) of this section do
not apply to public funds deposits a depository holds in a
certificate of deposit or time deposit under ORS 295.004.
(c) A well capitalized depository or an adequately capitalized
depository may accept and hold public funds deposits that exceed
the limit specified in subsection (1)(d) or (e) of this section
if eligible securities are deposited with the depository's
custodian as collateral in an amount at least equal to the amount
of the uninsured public funds deposits that exceed the limit
specified in subsection (1)(d) or (e) of this section.
{ + (5) If the State Treasurer notifies a depository that it
must cease accepting deposits of public funds under subsection
(3) or (4) of this section, the State Treasurer may also notify
public officials who have deposited public funds in the
depository that within 15 business days after the public official
receives the notice from the State Treasurer, the public official
must withdraw from the depository to which the notice applies all
public funds deposits that exceed the limit specified in
subsection (1)(d) or (e) of this section. A public official who
is notified by the State Treasurer under this subsection must
begin to withdraw funds as specified in the notice. Except as
required by any applicable law or regulation, a depository may
not impose an early withdrawal penalty or a forfeiture of
interest with respect to a withdrawal made pursuant to this
subsection. + }
SECTION 5. ORS 295.101 is amended to read:
295.101. (1) The following public funds are not subject to the
provisions of ORS 295.001 to 295.108:
(a) Funds that are deposited for the purpose of paying
principal, interest or premium, if any, on bonds, as defined in
ORS 286A.001 and 287A.001, and related costs or securing a
borrowing related to an agreement for exchange of interest rates
entered into under ORS 286A.110 or 287A.335.
(b) Funds that are invested in authorized investments under
provisions of law other than ORS 295.001 to 295.108. Funds
invested under ORS 293.701 to 293.820 are invested in authorized
investments for purposes of this subsection from the time the
funds are transferred by the State Treasurer to a third party
under the terms of a contract for investment or administration of
the funds that requires such a transfer until the time the funds
Enrolled House Bill 2970 (HB 2970-A) Page 4
are returned to the treasurer or paid to another party under the
terms of the contract.
(c) Negotiable certificates of deposit purchased by the State
Treasurer under ORS 293.736 or by an investment manager under ORS
293.741.
{ + (d) Funds that are held by a public official and are
required by federal law or contractual provisions to be
collateralized at 100 percent, if the funds are deposited in an
account that is separate from other accounts of the public
official in a depository, and the public official and the
depository have entered into a written agreement that provides a
perfected security interest to the public official in collateral
valued at an amount at least equal to the amount of funds in the
account in a manner substantially similar to a pledge agreement
described in ORS 295.001 (15). + }
(2) Notwithstanding subsection (1) of this section, funds
deposited by a custodial officer under ORS 294.035 (3)(d) are
subject to the provisions of ORS 295.001 to 295.108.
SECTION 6. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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Passed by House June 15, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 21, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2970 (HB 2970-A) Page 5
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2970 (HB 2970-A) Page 6
