Bill Text: OR HB3618 | 2011 | Regular Session | Introduced

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Bill Title: Relating to borrowing by mass transit districts.

Spectrum: Partisan Bill (Republican 18-0)

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3618 Detail]

Download: Oregon-2011-HB3618-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 4049

                         House Bill 3618

Sponsored by Representatives SHEEHAN, WAND; Representatives
  BERGER, BREWER, CAMERON, CONGER, FREEMAN, GILLIAM, HANNA,
  HUFFMAN, LINDSAY, PARRISH, RICHARDSON, SPRENGER, THOMPSON,
  WEIDNER, WHISNANT, WINGARD

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Requires mass transit district to obtain elector approval for
issuance of revenue bonds secured by moneys from specified
sources, including payroll taxes and federal flexible funds.

                        A BILL FOR AN ACT
Relating to borrowing by mass transit districts; creating new
  provisions; and amending ORS 267.335.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 267.335 is amended to read:
  267.335. (1) In addition to the authority to issue general
obligation bonds,   { - after a vote of the people, - }  a
district may issue and sell revenue bonds and pledge as security
therefor all or any part of the unobligated net revenue of the
district.   { +  Issuance of revenue bonds must be approved by
the electors of the district if the district intends to pledge
moneys from one of the following sources to secure the revenue
bonds:
  (a) A tax measured by employer payrolls under ORS 267.380,
267.385 and 267.420.
  (b) Federal flexible funds provided to state and local
governments by the Federal Transit Administration from Federal
Highway Administration funds, including Surface Transportation
Program funds, Congestion Mitigation and Air Quality Improvement
Program funds, Interstate Substitute Program funds and earmarked
funds.
  (c) Funds provided by a metropolitan service district through a
metropolitan transportation improvement program that documents
transportation investments in the Portland metropolitan area.
  (2)  + }Revenue bonds   { - shall - }   { + must + } be issued
in the same manner and form as are general obligation bonds of
the district but   { - they shall not be - }   { + revenue bonds
are not + } subject to the percentage limitation provided by ORS
267.330 applicable to issuance of general obligation bonds and
 { - shall not be - }   { + are not + } a lien upon any property
within the limits of the district.   { - Such bonds shall be
payable, both as to principal and interest, - }   { + The
principal, interest and premium, if any, of revenue bonds are
payable + } solely from the net revenues of the district
remaining after payment of obligations having a priority and
payment of all expenses of operation and maintenance of the
district, including any taxes levied thereafter against the
district. All revenue bonds   { - shall - }  { + must + } contain
a clause reciting that   { - both the principal and interest - }
 { + the principal, interest and premium, if any, + } are payable
solely from net revenues of the district remaining after paying
such obligations and expenses.
    { - (2) - }   { + (3) + } In lieu of issuing  { + revenue + }
bonds secured by unobligated net revenue under subsection (1) of
this section, the treasurer, when authorized by the board, may
execute and issue interest-bearing warrants drawn against funds
created by and for operation and maintenance of the mass transit
system in excess of current cash on hand, but not in an amount
exceeding one-half of the estimated annual gross revenue for
operation of the mass transit system for the next ensuing year.
  SECTION 2.  { + The amendments to ORS 267.335 by section 1 of
this 2011 Act apply to revenue bonds issued on or after the
effective date of this 2011 Act. + }
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