Bill Text: OR SB13 | 2011 | Regular Session | Introduced

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Bill Title: Relating to borrowing by semi-independent state agencies; declaring an emergency.

Spectrum: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB13 Detail]

Download: Oregon-2011-SB13-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 856

                         Senate Bill 13

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.

  Prohibits semi-independent state agencies from borrowing money
in manner that could be construed as incurring debt or obligation
of State of Oregon or as pledge of full faith and credit or
taxing power of State of Oregon.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to borrowing by semi-independent state agencies;
  creating new provisions; amending ORS 182.466, 284.335,
  284.365, 286A.001 and 377.840; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 182.466 is amended to read:
  182.466.  { + (1) + } In addition to other powers granted by
ORS 182.456 to 182.472 and by the statutes specifically
applicable to a board, a board may:
    { - (1) - }   { + (a) + } Sue and be sued in its own name.
    { - (2) - }   { + (b) + } Notwithstanding ORS 279.835 to
279.855 and ORS chapters 279A, 279B and 279C, enter into
contracts and acquire, hold, own, encumber, issue, replace, deal
in and with and dispose of real and personal property.
    { - (3) - }   { + (c) + } Notwithstanding ORS 670.300, fix a
per diem amount to be paid to board members for each day or
portion thereof during which the member is actually engaged in
the performance of official duties. Board members may also
receive actual and necessary travel expenses or other expenses
actually incurred in the performance of their duties. If an
advisory council or peer review committee is established under
the law that governs the board, the board may also fix and pay
amounts and expenses for members thereof.
    { - (4) - }   { + (d) + } Set the amount of any fee required
by statute and establish by rule and collect other fees as
determined by the board. Fees shall not exceed amounts necessary
for the purpose of carrying out the functions of the board.
Notwithstanding ORS 183.335 and except as provided in this
 { - subsection - }  { +  paragraph + }, a board shall hold a
public hearing prior to adopting or modifying any fee without
regard to the number of requests received to hold a hearing. A
board shall give notice to all licensees of the board prior to
holding a hearing on the adoption or modification of any fee. A
board may adopt fees in conjunction with the budget adoption
process described in ORS 182.462.
    { - (5) - }   { + (e) + } Subject to any other statutory
provisions, adopt procedures and requirements governing the
manner of making application for issuance, renewal, suspension,
revocation, restoration and related activities concerning
licenses that are under the jurisdiction of a board.
   { +  (2) If a semi-independent state agency is authorized by a
provision of law other than this subsection to borrow money by
entering into a contract, by encumbering real or personal
property or by any other manner:
  (a) The obligation of the semi-independent state agency is not
a debt, liability or general obligation of the State of Oregon
and neither the full faith and credit nor the taxing power of the
State of Oregon may be pledged to secure or pay the obligation
incurred by the semi-independent state agency.
  (b) The State Treasurer and the State of Oregon do not have an
obligation to pay bond-related costs for an obligation incurred
by a semi-independent state agency. A holder of an obligation
incurred by a semi-independent state agency does not have the
right to compel the exercise of the taxing power of the State of
Oregon to pay bond-related costs.
  (3) Subsection (2) of this section applies to semi-independent
state agencies:
  (a) Listed in ORS 182.454;
  (b) Subject to ORS 182.456 to 182.472; or
  (c) Denominated as either a semi-independent state agency or a
semi-independent agency in ORS 377.835 or 421.344 or in any other
statute without regard to the date of enactment or amendment of
the statute unless the agency is explicitly excepted from the
prohibition in subsection (2) of this section. + }
  SECTION 2. ORS 284.335 is amended to read:
  284.335. (1) Except as provided in subsection (2) of this
section, when carrying out the duties, functions and powers of
the Oregon Film and Video Office, the director of the office may
contract with any state agency for the performance of such
duties, functions and powers that the director considers
appropriate.
  (2) The director of the office   { - shall not, without - }
 { + may, only with + } the prior approval of the Film and Video
Board:
  (a) Award any contract for goods or professional services in
excess of $25,000;
  (b) Authorize any expenditure of moneys in excess of $25,000;
  (c) Sell or otherwise dispose of real or personal property
valued in excess of $25,000;
  (d) Commence a civil legal action or proceeding;
  (e) Sell, transfer and convey property to a buyer or lease
property to a tenant;
  (f) Borrow money and give guarantees;
  (g) Finance, conduct or cooperate in the financing of
facilities and projects to assist the film, video and emerging
media industries; or
  (h) In accordance with ORS chapter 183, adopt rules necessary
for the administration of laws that the office is charged with
administering.
  (3) The Film and Video Board shall approve the lease of
property to a tenant only when the sale, transfer or conveyance
of the property cannot be effected with reasonable promptness or
at a reasonable price.
  (4) The   { - Film and Video Board shall not allow the director
to - }   { + director of the office may not + } borrow money or
give guarantees under subsection (2)(f) of this section unless
the   { - indebtedness or other - }  obligations of the office
 { + attributable to the borrowing + } are payable solely out of
 { - its - }   { + the office's + } own resources { + . + }
 { - and do not constitute a pledge of the full faith and credit
of the State of Oregon or any of the revenues of this state. - }
 { + If the director of the office borrows moneys or makes
guarantees under subsection (2)(f) of this section:
  (a) The obligation of the office is not a debt, liability or
general obligation of the State of Oregon and neither the full
faith and credit nor the taxing power of the State of Oregon may
be pledged to secure or pay the obligation incurred by the
office.
  (b) The State Treasurer and the State of Oregon do not have an
obligation to pay bond-related costs for an obligation incurred
by the office. A holder of an obligation incurred by the office
does not have the right to compel the exercise of the taxing
power of the State of Oregon to pay bond-related costs. + }
  (5) The  { + director of the + } office shall file with the
Governor and the Legislative Assembly a biennial report of the
activities and operations of the office. The report shall include
a full and complete reporting of the financial activities and
transactions of the office during the biennium, including at
least the information required under ORS 284.365 (5).
  SECTION 3. ORS 284.365 is amended to read:
  284.365. (1) All moneys collected,  { + borrowed, + } received
or appropriated to the Oregon Film and Video Office shall be
deposited in an account established in a  { + bank + } depository
 { + or a credit union depository + } insured by the Federal
Deposit Insurance Corporation or the National Credit Union Share
Insurance Fund. In a manner consistent with the requirements of
ORS 295.001 to 295.108, the chairperson of the Film and Video
Board shall
  { - insure - }   { + ensure + } that sufficient collateral
secures any amount of funds on deposit that exceeds the limits of
the coverage of the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund. Subject to approval
by the chairperson, the board may invest moneys collected { + ,
borrowed + } or received by the office. Investments made by the
board are limited to the types of investments listed in ORS
294.035 (3)(a) to (i). Interest earned from any amounts invested
must be made available to the office in a manner consistent with
the biennial budget approved by the board.
  (2) Subject to the approval of the director of the office, all
necessary expenses of the office and the board must be paid from
the moneys collected,  { + borrowed, + } appropriated or earned
by the office.
  (3) The office shall adopt a budget on a biennial basis using
the classifications of expenditures and revenues required by ORS
291.206 (1). The budget is not subject to review and approval by
the Legislative Assembly or to modification by the Emergency
Board or the Legislative Assembly. However, the budget must be
included in the biennial report required by ORS 284.335 (5).
  (4) The board shall adopt a budget only after holding a public
hearing on the proposed budget. At least 15 days prior to any
public hearing on the proposed budget, the board shall give
notice of the hearing to all persons known to be interested in
the proceedings of the board and to any person who requests
notice.
  (5) All expenditures from the account established for the
office under subsection (1) of this section are exempt from any
state expenditure limitation. The office shall follow generally
accepted accounting principles and keep such financial and
statistical information that is necessary to completely and
accurately disclose the financial condition and financial
operations of the office as may be required by the Secretary of
State.

    { - (6) As used in this section, 'depository' has the meaning
given that term in ORS 295.001. - }
  SECTION 4. ORS 286A.001 is amended to read:
  286A.001. As used in this chapter:
  (1) 'Agreement for exchange of interest rates' means a
contract, or an option or forward commitment to enter into a
contract, for the exchange of interest rates that provides for:
  (a) Payments based on levels of or changes in interest rates;
or
  (b) Provisions to hedge payment, rate, spread or similar
exposure including, but not limited to, an interest rate floor or
cap or an option, put or call.
  (2) 'Bond':
  (a) Means a contractual undertaking or instrument of the State
of Oregon to repay borrowed moneys.
  (b) Does not mean a financing agreement, as defined in ORS
283.085, if the principal amount of the agreement is $100,000 or
less, or a credit enhancement device.
  (3) 'Counterparty' means an entity with whom the State of
Oregon enters into an agreement for exchange of interest rates.
  (4) 'Credit enhancement device':
  (a) Means a letter of credit, line of credit, standby bond
purchase agreement, bond insurance policy, reserve surety bond or
other device or facility used to enhance the creditworthiness,
liquidity or marketability of bonds or agreements for the
exchange of interest rates; and
  (b) Does not mean a bond.
  (5) 'Credit enhancement device fee' means a payment required to
be made to the provider of a credit enhancement device securing a
bond or securing an agreement for the exchange of interest rates.
  (6) 'General obligation bond' means a bond that constitutes
indebtedness of the state under section 7, Article XI of the
Oregon Constitution, and that is exempt from the $50,000
limitation on indebtedness set forth in that section.
  (7) 'Operative document' means a bond declaration, trust
agreement, indenture, security agreement or other document in
which the State of Oregon pledges property as security for an
obligation, as defined in ORS 286A.100.
  (8) 'Refunding bond' means a bond of the State of Oregon that
is issued to refund another bond, regardless of whether the
refunding is on a current, advance, forward delivery, synthetic
or other basis.
  (9) 'Related agency' means the state agency that requests the
State Treasurer to issue bonds pursuant to ORS 286A.025 or for
which the State Treasurer has issued bonds.
  (10) 'Related bond' means a bond for which the State of Oregon
enters into an agreement for exchange of interest rates.
  (11) 'Revenue' means all fees, tolls, excise taxes,
assessments, property taxes and other taxes, rates, charges,
rentals and other income or receipts derived by a state agency or
to which a state agency is entitled.
  (12) 'Revenue bond' means a bond of the State of Oregon that is
not a general obligation bond.
  (13) 'State agency':
  (a) Includes a statewide elected officer, board, commission,
department, division, authority or other entity, without regard
to the designation given to the entity, that is within state
government, as defined in ORS 174.111; and
  (b) Does not include:
  (A) A statewide elected judge;
  (B) The State Treasurer;
  (C) A local government, as defined in ORS 174.116;
  (D) The Oregon Health and Science University;
  (E) A special government body, as defined in ORS 174.117,
except to the extent a special government body must be considered

a state agency in order to achieve the purposes of Article XI-K
of the Oregon Constitution; or
  (F) A semi-independent state agency listed in ORS 182.454
 { - , 377.835 or 674.305, or any other state agency denominated
by statute as a semi-independent state agency. - }   { + or
denominated as either a semi-independent state agency or a
semi-independent agency in ORS 377.835 or 421.344 or in any other
statute without regard to the date of enactment or amendment of
the statute unless the agency is explicitly included in the
definition of 'state agency' in this subsection. + }
  (14) 'Termination payment' means the amount payable under an
agreement for exchange of interest rates by one party to another
party as a result of the termination, in whole or part, of the
agreement prior to the expiration of the stated term.
  SECTION 5. ORS 377.840, as amended by section 16, chapter 30,
Oregon Laws 2010, is amended to read:
  377.840. (1) All moneys collected, borrowed or received by the
Travel Information Council shall be deposited into a Travel
Information Council account established in a  { + bank + }
depository { +  or a credit union depository + } insured by the
Federal Deposit Insurance Corporation or the National Credit
Union Share Insurance Fund. In a manner consistent with the
requirements of ORS 295.001 to 295.108, the chairperson of the
council shall   { - insure - }   { + ensure + } that sufficient
collateral secures any amount of funds on deposit that exceeds
the limits of the coverage of the Federal Deposit Insurance
Corporation or the National Credit Union Share Insurance Fund.
Subject to the chairperson's approval, the council may invest
moneys collected, borrowed or received by the council.
Investments made by the council are limited to the types of
investments listed in ORS 294.035. Interest earned from any
amounts invested shall be made available to the council in a
manner consistent with the council's approved biennial budget.
  (2) Subject to the approval of the chairperson or director of
the Travel Information Council, all necessary council expenses
shall be paid from the moneys collected, borrowed or earned by
the council.
  (3) Upon approval of a majority of the Travel Information
Council, the   { - director - }   { + council + } may borrow
money. The council may not borrow an amount that exceeds the
estimated revenues from amounts collected, received or earned by
the council for the year.
  (4) The Travel Information Council may not borrow money under
subsection (3) of this section unless the   { - indebtedness or
other - } obligations of the council attributable to the
borrowing are payable solely out of the council's own resources.
 { - Such indebtedness or other obligations of the council do not
constitute a pledge of the full faith and credit of the State of
Oregon or any of the revenues of this state. - }  { +  If the
council borrows moneys under subsection (3) of this section:
  (a) The obligation of the council is not a debt, liability or
general obligation of the State of Oregon and neither the full
faith and credit nor the taxing power of the State of Oregon may
be pledged to secure or pay the obligation incurred by the
council.
  (b) The State Treasurer and the State of Oregon do not have an
obligation to pay bond-related costs for an obligation incurred
by the council. A holder of an obligation incurred by the council
does not have the right to compel the exercise of the taxing
power of the State of Oregon to pay bond-related costs. + }
  (5)(a) The Travel Information Council shall adopt a budget on a
biennial basis using the classifications of expenditures and
revenues required by ORS 291.206 (1). However, the budget shall
not be subject to review and approval by the Legislative Assembly
or to future modification by the Emergency Board or Legislative
Assembly.
  (b) The council shall adopt a budget only after a public
hearing thereon. At least 15 days prior to any public hearing on
the budget, the council shall give notice of the hearing to all
persons known to be interested in the proceedings of the council
and to any person who requests notice.
  (6) All expenditures from the Travel Information Council
account are exempt from any state expenditure limitation. The
Travel Information Council shall follow generally accepted
accounting principles and keep such other financial and
statistical information as may be necessary to completely and
accurately disclose the financial condition and financial
operations of the council as may be required by the Secretary of
State.
    { - (7) As used in this section, 'depository' has the meaning
given in ORS 295.001. - }
  SECTION 6.  { + If Oregon Corrections Enterprises is authorized
by a provision of law other than this section to borrow money in
any manner:
  (1) The obligation of Oregon Corrections Enterprises is not a
debt, liability or general obligation of the State of Oregon and
neither the full faith and credit nor the taxing power of the
State of Oregon may be pledged to secure or pay the obligation
incurred by Oregon Corrections Enterprises.
  (2) The State Treasurer and the State of Oregon do not have an
obligation to pay bond-related costs for an obligation incurred
by Oregon Corrections Enterprises. A holder of an obligation
incurred by Oregon Corrections Enterprises does not have the
right to compel the exercise of the taxing power of the State of
Oregon to pay bond-related costs. + }
  SECTION 7.  { + Section 6 of this 2011 Act and the amendments
to ORS 182.466, 284.335, 284.365, 286A.001 and 377.840 by
sections 1 to 5 of this 2011 Act apply to money borrowed by a
semi-independent state agency on or after the effective date of
this 2011 Act. + }
  SECTION 8.  { + 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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