Bill Text: OR SB265 | 2013 | Regular Session | Enrolled
Bill Title: Relating to higher education revenue bonds.
Spectrum: Committee Bill
Status: (Passed) 2013-08-21 - Effective date, January 1, 2014. [SB265 Detail]
Download: Oregon-2013-SB265-Enrolled.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session
Enrolled
Senate Bill 265
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 Senate Interim Committee on
Education and Workforce Development for Oregon University
System)
CHAPTER ................
AN ACT
Relating to higher education revenue bonds; creating new
provisions; and amending ORS 286A.035 and 351.476.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 286A.035 is amended to read:
286A.035. (1) Each related agency shall report the plans of the
related agency for the issuance of bonds during the next
biennium. The related agency shall submit the related agency's
report to the Governor by a date determined by the Governor and
shall include in the report a description of bonds that the
related agency intends to retire or defease during the next
biennium.
(2) On or before a date determined by the Governor, the State
Treasurer shall advise the Governor on the prudent maximum amount
of bonds to be issued for each bond program. The State Treasurer
shall consider available economic and financial data in preparing
advice to be given to the Governor.
(3) As part of the Governor's budget report described in ORS
291.216, the Governor shall:
(a) Consider the prudent maximum amounts advised by the State
Treasurer pursuant to subsection (2) of this section to determine
the Governor's total recommended amount; and
(b) Recommend to the Legislative Assembly the total amount of
bonds the State Treasurer may issue for each bond program for a
biennium.
(4) { + Except as otherwise provided in ORS 351.476, + } the
Legislative Assembly shall determine the amount of bonds the
State Treasurer may issue for each state agency for a biennium.
If the Legislative Assembly fails to make the determination
described in this subsection by the first day of the biennium,
the unused portion of the authorization the Legislative Assembly
made for the preceding biennium is deemed to carry forward for
the current biennium at the amount authorized for the preceding
biennium until the earlier of:
(a) The date on which legislation authorizing the amount of
bonds for the current biennium is enacted; or
(b) The date on which the Legislative Assembly adjourns sine
die.
Enrolled Senate Bill 265 (SB 265-INTRO) Page 1
(5) { + Except as otherwise provided in ORS 351.476, + } the
amount of bonds that may be issued under bond programs may be
modified by the Governor. However, the Governor may not modify
the amount of bonds that may be issued under bond programs in a
way that would cause the maximum amount established by the
Legislative Assembly for a category of bond programs to be
exceeded if the Legislative Assembly:
(a) Has categorized the bonds that may be issued under bond
programs as general obligation, direct revenue and pass-through
revenue bonds; and
(b) Assigned a maximum amount to each category.
(6) This section applies to bonds:
(a) Unless the bonds are expressly exempted from the
requirements of this section.
(b) Except refunding bonds.
SECTION 2. ORS 351.476 is amended to read:
351.476. (1) { + In addition to and not in lieu of bonds
authorized pursuant to ORS 286A.035, + } at the request of the
Chancellor of the Oregon University System, the State Treasurer
may issue, as provided in ORS chapter 286A, higher education
revenue bonds { - from time to time - } , the net proceeds of
which must be used to:
(a) Finance projects that the State Board of Higher Education
determines will assist the Oregon University System in carrying
out its statutory powers;
(b) Refund bonds issued for the projects; and
(c) Pay bond-related costs.
(2)(a) Before pledging all or a portion of higher education
revenues, pursuant to ORS 286A.102, to secure higher education
revenue bonds, higher education credit enhancement devices or
agreements for exchange of interest rates related to such revenue
bonds or credit enhancement devices, the chancellor shall reserve
sufficient funds each biennium to satisfy any payment or reserve
requirements relating to:
(A) General obligation bonds or certificates of participation
issued for the benefit of the Oregon University System;
(B) Credit enhancement devices or agreements for exchange of
interest rates entered into in connection with obligations
related to general obligation bonds or certificates of
participation issued for the benefit of the Oregon University
System; and
(C) Loans to the Oregon University System funded by state
general obligation bonds.
(b) Pursuant to ORS 286A.010, the Oregon University System
shall provide cash flow projections and other information
requested by the State Treasurer to determine the sufficiency of
higher education revenues to satisfy the requirements of
paragraph (a) of this subsection and any proposed revenue bonds.
(c) For purposes of the issuance of bonds and ORS chapter 286A,
the Oregon University System shall be considered a related agency
as defined in ORS 286A.001 (9).
(d) The chancellor shall identify the specific higher education
revenues that will be pledged to secure each series of higher
education revenue bonds and specify the status of the lien of
each pledge.
(3) The chancellor may enter into covenants, pursuant to ORS
286A.025 (4)(c), on behalf of the State of Oregon for the benefit
of holders of higher education revenue bonds, providers of credit
enhancement for higher education revenue bonds and counterparties
to agreements for exchange of interest rates to:
Enrolled Senate Bill 265 (SB 265-INTRO) Page 2
(a) Adjust the rates, charges or fees that produce higher
education revenues so that higher education revenues equal or
exceed specified levels during specified periods.
(b) Create only those pledges or liens on higher education
revenues that are permitted by the covenants authorized by this
section.
(c) Budget and apply higher education revenues, or otherwise
allow higher education revenues to be applied, in amounts that,
when added to other moneys lawfully available for the purpose,
will be sufficient:
(A) To pay in full and when due the principal, interest and
premium on outstanding higher education revenue bonds;
(B) To pay amounts due in connection with agreements for
exchange of interest rates and credit enhancement devices for
higher education revenue bonds; and
(C) To maintain the balance required by covenants in any debt
service reserves established for the higher education revenue
bonds.
(4) The chancellor shall operate the properties of the Oregon
University System in compliance with the higher education revenue
bond covenants until all higher education revenue bonds are paid
or defeased.
(5) Higher education revenue bonds are not a 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 higher education revenue bonds.
(6) The State Treasurer and the Oregon University System do not
have an obligation to pay bond-related costs except as provided
in ORS 351.473 to 351.485. A holder of higher education revenue
bonds issued under this section does not have the right to compel
the exercise of the taxing power of the State of Oregon to pay
bond-related costs.
(7) As long as any higher education revenue bonds issued under
this section are outstanding, covenants related to the higher
education revenue bonds are deemed to be contracts between the
State of Oregon and holders of the higher education revenue
bonds. The State of Oregon may not give force or effect to a
statute or initiative or referendum measure approved by the
electors of this state if doing so would unconstitutionally
impair existing covenants made with the holders of existing
higher education revenue bonds or would unconstitutionally impair
other obligations or agreements regarding the security of higher
education revenue bonds to which the moneys deposited in the
accounts established by ORS 351.479, 351.482 and 351.485 are
pledged and assigned.
(8) The principal, interest and any premium and any issuance
costs on a financing agreement under ORS 283.085 to 283.092, any
general obligation bond, any revenue bond and any related credit
enhancement device or interest rate exchange agreement shall be
paid from the sources specified in the laws and documents
authorizing the financing agreement, bond, credit enhancement
device or interest rate exchange agreement. The Oregon University
System shall pay any other expenses and liabilities, including
but not limited to legal expenses, costs of settling claims,
judgments, federal arbitrage rebates and penalties and expenses
arising from an inquiry, audit or other action by a federal or
state regulatory body, unless the expense or liability results
solely from the negligence or willful misconduct of a state
agency.
Enrolled Senate Bill 265 (SB 265-INTRO) Page 3
(9) Pursuant to ORS chapter 180, on behalf of the State
Treasurer or any other state agency, the Attorney General shall
appear, commence, prosecute or defend any action, suit, matter,
cause or proceeding arising from any financing agreement under
ORS 283.085 to 283.092, any bond issued for the benefit of the
Oregon University System and any related credit enhancement
device or interest rate exchange agreement.
SECTION 3. { + The amendments to ORS 286A.035 and 351.476 by
sections 1 and 2 of this 2013 Act apply to bonds issued in or
after the biennium beginning July 1, 2013. + }
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Passed by Senate July 6, 2013
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House July 7, 2013
.............................................................
Tina Kotek, Speaker of House
Enrolled Senate Bill 265 (SB 265-INTRO) Page 4
Received by Governor:
......M.,............., 2013
Approved:
......M.,............., 2013
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2013
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 265 (SB 265-INTRO) Page 5
