Bill Text: OR SB11 | 2013 | Regular Session | Introduced

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Bill Title: Relating to establishment of a student opportunity fund; appropriating money; prescribing an effective date.

Sponsorship: Unknown

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB11 Detail]

Download: Oregon-2013-SB11-Introduced.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 398-1

                         Senate Bill 11

Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of State Treasurer Ted
  Wheeler)

                             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.

  Authorizes State Treasurer to issue Article XI-R bonds, in
addition to and not in lieu of biennial budget authorization for
bond issuance, to finance corpus of Oregon Student Opportunity
Fund.
  Establishes program to provide financial assistance to Oregon
students pursuing post-secondary education, including technical,
professional and career training.
  Establishes Oregon Student Opportunity Fund and continuously
appropriates earnings on moneys in fund to ___ to support
program. Establishes Article XI-R Bond Fund and Article XI-R Bond
Administration Fund and continuously appropriates moneys from
funds to ___.
  Takes effect only if Senate Joint Resolution 1 (2013) is
approved by people at ___ election. Takes effect on effective
date of constitutional amendment proposed in Senate Joint
Resolution 1 (2013).

                        A BILL FOR AN ACT
Relating to establishment of a student opportunity fund; creating
  new provisions; amending ORS 293.115 and 293.701; appropriating
  money; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + The Legislative Assembly finds and declares
that a trust fund for the support of a program designed to meet
the financial needs of Oregon students for up to two years of
post-secondary education, including technical, professional and
career training, can be created by an investment of resources
over a 30-year period to build the corpus of the trust fund. + }
  SECTION 2.  { + As used in sections 1 to 7 of this 2013 Act:
  (1) 'Article XI-R bonds' means general obligation bonds or
other general obligation indebtedness issued or incurred under
the authority of Article XI-R of the Oregon Constitution.
  (2) 'Bond administration fund' means the Article XI-R Bond
Administration Fund established in section 7 of this 2013 Act.
  (3) 'Bond fund' means the Article XI-R Bond Fund established in
section 6 of this 2013 Act.
  (4) 'Bond-related costs' means:
  (a) The costs of paying the principal of, the interest on and
the premium, if any, on Article XI-R bonds;
  (b) The costs and expenses of issuing, administering and paying
Article XI-R bonds including, but not limited to, redeeming
Article XI-R bonds and paying amounts due in connection with bond
insurance, other credit enhancements and the administrative costs
and expenses of the State Treasurer and the ___, including costs
of consultants or advisers retained by the State Treasurer or the
___ for the purpose of issuing, administering or paying Article
XI-R bonds;
  (c) Capitalized interest on Article XI-R bonds;
  (d) Costs of funding reserves for Article XI-R bonds, including
costs of surety bonds and similar instruments;
  (e) Rebates or penalties due the United States Government in
connection with Article XI-R bonds; and
  (f) Other costs or expenses that the ___ determines are
necessary or desirable in connection with issuing, administering
or paying Article XI-R bonds.
  (5) 'Student opportunity fund' means the Oregon Student
Opportunity Fund established in section 5 of this 2013 Act. + }
  SECTION 3.  { + (1) The State Treasurer, with the concurrence
of the Director of the Oregon Department of Administrative
Services, may issue Article XI-R bonds as provided in sections 1
to 7 of this 2013 Act, subject to the limit on bond issuance
established for the particular biennium pursuant to ORS 286A.035
and at the request of the ___, for the purpose of financing the
corpus of the Oregon Student Opportunity Fund established in
section 5 of this 2013 Act, the earnings of which shall be used
to support a program to provide financial assistance to Oregon
students pursuing post-secondary education, including technical,
professional and career training, plus an amount determined by
the State Treasurer to pay estimated bond-related costs.
  (2) The State Treasurer shall transfer the net proceeds of
Article XI-R bonds issued for the purpose described in subsection
(1) of this section to ___ for deposit in the Oregon Student
Opportunity Fund established under section 5 of this 2013 Act.
  (3) Article XI-R 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-R bonds. The State of Oregon
shall pledge its full faith and credit and taxing power to pay
Article XI-R bonds, except that the ad valorem taxing power of
the State of Oregon may not be pledged to pay Article XI-R
bonds. + }
  SECTION 4.  { + The ___ shall establish, by rule, and
administer a student opportunity program. The purposes of the
program are to:
  (1) Provide assistance to meet the financial needs of Oregon
students for up to two years of post-secondary education,
including technical, professional and career training, provided
by an educational institution as defined in ORS 348.105.
  (2) Identify or develop incentives and opportunities to improve
on-time graduation rates for post-secondary education programs,
including technical, professional and career training programs.
  (3) Identify or engage opportunities to leverage moneys in the
Oregon Student Opportunity Fund established in section 5 of this
2013 Act with private sector funds to benefit Oregon students.
  (4) Encourage student participation in educational initiatives
designed to improve student performance in science, technology,
engineering and mathematics.
  (5) Encourage, in consultation with the Bureau of Labor and
Industries, development of apprenticeship and vocational training
programs. + }
  SECTION 5.  { + (1) Pursuant to Article XI-R, section 3, Oregon
Constitution, the Oregon Student Opportunity Fund is established,

separate and distinct from the General Fund. The student
opportunity fund consists of:
  (a) Proceeds of Article XI-R bonds that were issued for the
purpose of financing of the corpus of the fund, the earnings of
which shall be used to support a program to provide financial
assistance to Oregon students pursuing post-secondary education,
including technical, professional and career training; and
  (b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the fund.
  (2) Moneys in the student opportunity fund may be invested as
provided in ORS 293.701 to 293.790. Earnings on moneys in the
fund must be credited to the fund.
  (3) Declared earnings on moneys in the student opportunity fund
are continuously appropriated to ___ to support the student
opportunity program established in section 4 of this 2013 Act.
Declared earnings may also be used to pay the principal of, the
interest on and the premium, if any, on bonds authorized by
Article XI-R, section 1, Oregon Constitution. + }
  SECTION 6.  { + (1) The Article XI-R Bond Fund is established
in the State Treasury, separate and distinct from the General
Fund.  The bond fund consists of:
  (a) Capitalized or accrued interest on Article XI-R 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-R bonds.
  (2) Moneys in the bond fund may be invested as provided in ORS
293.701 to 293.820. Earnings on moneys in the bond fund must be
credited to the bond fund.
  (3) Moneys in the bond fund are continuously appropriated
to ___ for the purpose of paying, when due, the principal of, the
interest on and the premium, if any, on outstanding Article XI-R
bonds.
  (4) ___ may create separate accounts in the bond fund for
reserves and debt service for each series of Article XI-R
bonds. + }
  SECTION 7.  { + (1) The Article XI-R Bond Administration Fund
is established in the State Treasury, separate and distinct from
the General Fund. The bond administration fund consists of:
  (a) Proceeds of Article XI-R bonds that were issued to pay
bond-related costs; and
  (b) Amounts appropriated or otherwise provided by the
Legislative Assembly for deposit in the bond administration fund.
  (2) Moneys in the bond administration fund may be invested as
provided in ORS 293.701 to 293.820. Earnings on moneys in the
bond administration fund must be credited to the bond
administration fund.
  (3) Moneys in the bond administration fund are continuously
appropriated to ___ for payment of bond-related costs.
  (4) ___ may create separate accounts in the bond administration
fund. + }
  SECTION 8.  { + In addition to and not in lieu of any other
amounts authorized, as provided by ORS 286A.035, for issuance of
general obligation bonds during the biennium beginning July 1,
2013, the State Treasurer may issue general obligation bonds
pursuant to Article XI-R, section 1, Oregon Constitution, and
sections 1 to 7 of this 2013 Act in an amount not to exceed $500
million for deposit in the Oregon Student Opportunity Fund
established in section 5 of this 2013 Act. + }
  SECTION 9. ORS 293.115 is amended to read:
  293.115. The following moneys shall be separate and distinct
from the General Fund:
  (1) Moneys paid into the State Treasury for fiduciary purposes
and moneys that are in trust funds, as defined in ORS 291.002.
  (2) Moneys by law directed and required to be placed by the
State Treasurer to the credit of:

  (a) The Agricultural College Fund principal and the interest
accruing from the investment thereof.
  (b) The Burbank Trust Fund and the interest accruing from the
investment thereof.
  (c) The Common School Fund and the interest accruing from the
investment thereof.
  (d) The Industrial Accident Fund under ORS 656.632 and the
interest accruing from the investment thereof.
  (e) The Consumer and Business Services Fund under ORS 705.145
and the interest accruing from the investment thereof.
  (f) The Workers' Benefit Fund created in ORS 656.605 and the
interest accruing from the investment thereof.
  (g) The University of Oregon Villard Endowment Interest Fund.
  (h) The Oregon Commercialized Research Fund created by ORS
284.725 and the interest accruing from the investment thereof.
  (i) The Oregon Innovation Fund created by ORS 284.720 and the
interest accruing from the investment thereof.
   { +  (j) The Oregon Student Opportunity Fund established in
section 5 of this 2013 Act and the interest accruing from the
investment thereof. + }
  (3) All sums received by the state from the federal government
from forest reserves, rentals, sales of timber and other sources
from forest reserves, under ORS 293.560 and the interest accruing
from the investment thereof.
  (4) All sums received from the five percentum of sales of
public lands and apportioned under ORS 272.085 and the interest
accruing from the investment thereof.
  (5) All sums received from the federal government under ORS
293.565 to 293.575 under Mineral Leasing Act, federal Flood
Control Act and the Taylor Grazing Act and the interest accruing
from the investment thereof.
  (6) Any other funds or accounts created by law that are not
specifically established in the law creating them as funds or
accounts in the General Fund.
  SECTION 10. ORS 293.701 is amended to read:
  293.701. As used in ORS 293.701 to 293.820, unless the context
requires otherwise:
  (1) 'Council' means the Oregon Investment Council.
  (2) 'Investment funds' means:
  (a) Public Employees Retirement Fund referred to in ORS
238.660;
  (b) Industrial Accident Fund referred to in ORS 656.632;
  (c) Consumer and Business Services Fund referred to in ORS
705.145;
  (d) Employment Department Special Administrative Fund referred
to in ORS 657.822;
  (e) Insurance Fund referred to in ORS 278.425;
  (f) Funds under the control and administration of the
Department of State Lands;
  (g) Oregon Student Assistance Fund referred to in ORS 348.570;
  (h) Moneys made available to the Commission for the Blind under
ORS 346.270 and 346.540 or rules adopted thereunder;
  (i) Forest Development Revenue Bond Fund referred to in ORS
530.147 and State Forestry General Obligation Bond Fund referred
to in ORS 530.280;
  (j) Oregon War Veterans' Fund referred to in ORS 407.495;
  (k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
  (L) World War II Veterans' Compensation Fund;
  (m) World War II Veterans' Bond Sinking Fund;
  (n) Funds in the hands of the State Treasurer that are not
required to meet current demands and that are invested in the
Oregon Short Term Fund established under ORS 293.728 or in
another commingled investment vehicle;

  (o) State funds that are not subject to the control and
administration of officers or bodies specifically designated by
law;
  (p) Funds derived from the sale of state bonds;
  (q) Social Security Revolving Account referred to in ORS
237.490;
  (r) Oregon University System Fund established by ORS 351.506
and the Higher Education Donation Fund established by ORS
351.130;
  (s) Local Government Employer Benefit Trust Fund referred to in
ORS 657.513;
  (t) Elderly and Disabled Special Transportation Fund
established by ORS 391.800;
  (u) Education Stability Fund established by ORS 348.696;
  (v) Deferred Compensation Fund established under ORS 243.411;
  { - and - }
  (w) Trust for Cultural Development Account established under
ORS 359.405 { + ; and
  (x) The Oregon Student Opportunity Fund established in section
5 of this 2013 Act + }.
  (3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
  SECTION 11.  { + This 2013 Act does not take effect unless the
amendment to the Oregon Constitution proposed by Senate Joint
Resolution 1 (2013) is approved by the people at ___ election
held ___. This 2013 Act takes effect on the effective date of
that amendment. + }
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