71st OREGON LEGISLATIVE ASSEMBLY--2002 Fifth Special Session
Enrolled
House Bill 4073
Sponsored by HOUSE SPECIAL SESSION COMMITTEE ON BUDGET
RESTORATION
CHAPTER ................
AN ACT
Relating to state finance; creating new provisions; amending ORS
293.537; appropriating money; limiting expenditures; and
declaring an emergency.
Be It Enacted by the People of the State of Oregon:
+ }
SECTION 1. { + Sections 1 to 16 of this 2002 fifth special
session Act shall be known and may be cited as the 'Master
Settlement Asset Corporation Act.' + }
SECTION 2. { + As used in sections 1 to 16 of this 2002 fifth
special session Act, unless the context requires otherwise:
(1) 'Ancillary facility' includes, but is not limited to:
(a) A revolving credit agreement.
(b) An agreement establishing a line of credit or letter of
credit.
(c) A reimbursement agreement.
(d) An interest rate exchange agreement.
(e) A currency exchange agreement.
(f) An interest rate floor or cap.
(g) An option, put or call to hedge payment, currency, rate,
spread or similar exposure, or a similar agreement.
(h) A float agreement.
(i) A forward agreement.
(j) An insurance contract.
(k) A surety bond.
(L) A commitment to purchase or sell securities.
(m) A purchase or sale agreement.
(n) A commitment, contract or other agreement approved by the
corporation.
(2) 'Benefited party' means a person that enters into an
ancillary facility with the Master Settlement Asset Corporation
under sections 1 to 16 of this 2002 fifth special session Act.
(3) 'Corporation' means the Master Settlement Asset Corporation
established by section 3 of this 2002 fifth special session Act.
(4) 'Costs of issuance' means the costs and expenses payable,
directly or indirectly, by the corporation related to the
issuance, sale and administration of securities including, but
not limited to, underwriting fees and fees and expenses of
lawyers, consultants, advisers and fiduciaries.
(5) 'Financing costs' means all capitalized interest, operating
and debt service reserves, costs of issuance, fees and credit or
Enrolled House Bill 4073 (HB 4073-B) Page 1
liquidity enhancements incurred by the corporation related to the
issuance and sale of the securities.
(6) 'Master Settlement Agreement' has the meaning given that
term in ORS 293.533.
(7) 'Master settlement asset' means the portion of the payments
under the Master Settlement Agreement sold to the corporation
under section 6 of this 2002 fifth special session Act.
(8) 'Net proceeds' means the amount of proceeds from the sale
of securities remaining after the corporation provides for
financing costs.
(9) 'Operating expenses' means the reasonable costs and
expenses of the corporation including, but not limited to, the
cost of preparation of accounting and other reports, the cost of
maintaining the rating on securities issued, insurance premiums,
the cost of annual meetings, the cost of administration of
securities, the reasonable charges of the State of Oregon to
enforce the qualifying statute, the reasonable charges of the
Attorney General to advise or represent the corporation, and
other required activities of the corporation or fees and expenses
incurred for lawyers, consultants, advisers and fiduciaries.
(10) 'Payments under the Master Settlement Agreement' means the
asset of the State of Oregon consisting of:
(a) Tobacco settlement payments received by the State of Oregon
that tobacco manufacturers are required to make under the terms
of the Master Settlement Agreement; and
(b) The right of Oregon to receive tobacco settlement payments
under the terms of the Master Settlement Agreement.
(11) 'Qualifying statute' has the meaning given that term in
the Master Settlement Agreement.
(12) 'Residual interest' means the portion of the master
settlement asset that exceeds the operating expenses of the
corporation and the principal, interest and premium, if any, of
the securities.
(13) 'Sale agreement' means an agreement authorized under
section 6 of this 2002 fifth special session Act in which the
State of Oregon agrees to sell a portion of the payments under
the Master Settlement Agreement to the corporation.
(14) 'Security' includes, but is not limited to, a bond, a note
or other evidence of indebtedness of the corporation. + }
SECTION 3. { + (1) The Master Settlement Asset Corporation is
established as a public corporation and shall exercise the
powers, rights and duties granted to the corporation in sections
1 to 16 of this 2002 fifth special session Act.
(2) The assets, revenues and liabilities of the corporation may
not be consolidated, commingled or accounted for with those of
the State of Oregon or an entity capable of being a debtor in a
case commenced under the federal bankruptcy code. The assets and
revenues of the corporation may not be used to pay a debt or
obligation of the State of Oregon. + }
SECTION 4. { + (1) The Master Settlement Asset Corporation
Board of Directors is established and shall govern the Master
Settlement Asset Corporation.
(2) Membership of the board is as follows:
(a) The State Treasurer shall serve as an ex officio member;
and
(b) The State Treasurer shall appoint two public members who
serve at the pleasure of the State Treasurer.
(3) The term of office of each public member is four years, but
a public member serves at the pleasure of the State Treasurer.
Before the expiration of the term of a member, the State
Enrolled House Bill 4073 (HB 4073-B) Page 2
Treasurer shall appoint a successor whose term begins on the day
next following expiration of the term of the member. A public
member is eligible for reappointment. If there is a vacancy for
any cause, the State Treasurer shall make an appointment to
become effective immediately for the unexpired term.
(4) The public members appointed to the board under this
section:
(a) Must be knowledgeable in the area of finance; and
(b) May not be members of the Legislative Assembly or officers
or employees of the State of Oregon.
(5)(a) The State Treasurer shall serve as board chairperson.
(b) The board shall elect one member to serve as treasurer and
another member to serve as secretary.
(c) The powers, rights and duties of the corporation are vested
in the members of the board. A majority of the membership of the
board constitutes a quorum for the transaction of business. The
board may take action by motions and resolutions adopted by the
affirmative vote of a majority of the members present. A vacancy
in the membership of the board does not impair the ability of a
quorum of the members to exercise the powers and perform all the
duties of the board.
(6)(a) The State Treasurer shall serve as the executive
director of the corporation. The State Treasurer shall assign
officers or employees of the office of the State Treasurer to
staff the corporation. The State Treasurer may charge the
corporation for providing staff to the corporation.
(b) State officers, agencies, boards and commissions,
including, but not limited to, the Attorney General, may render
services to the corporation as requested by the corporation. A
state officer, agency, board or commission, including, but not
limited to, the Attorney General, may charge the corporation for
services rendered to the corporation.
(7) A member of the board or an officer, a staff member or an
agent of the corporation may not take action to exercise a power,
right or duty of the corporation if that action results in an
actual conflict of interest, as defined in ORS 244.020, even if
the action is within the scope of authority of the board member,
officer, staff member or agent.
(8) The members of the board shall serve without compensation,
but the corporation shall reimburse the members of the board for
actual expenses necessarily incurred in the discharge of their
duties. Notwithstanding any other law, an officer or employee of
the State of Oregon is not deemed to have forfeited the office or
employment of the officer or employee or the benefits or
emoluments of the office or employment by reason of service to
the corporation as an ex officio member of the board or as an
officer or a staff member of the corporation.
(9) An ex officio member of the board may designate, in
writing, an individual to represent the ex officio member at
meetings of the board and to vote or otherwise act on behalf of
the member. The designation continues in effect until a written
amendment or revocation is delivered to the secretary of the
corporation.
(10)(a) The corporation may be dissolved as provided by section
13 (5) of this 2002 fifth special session Act.
(b) Upon dissolution of the corporation, the assets and
revenues of the corporation vest in the State of Oregon.
(11) The corporation may not file a voluntary petition for
bankruptcy under the federal Bankruptcy Code until a date that is
one year and one day after the date when all securities and
Enrolled House Bill 4073 (HB 4073-B) Page 3
ancillary agreements of the corporation have been paid in full or
otherwise discharged. + }
SECTION 5. { + Notwithstanding the term of office for public
members specified in section 4 of this 2002 fifth special session
Act, one of the public members first appointed shall serve a term
of office of two years. + }
SECTION 6. { + (1) The Oregon Department of Administrative
Services, with the consent of the State Treasurer, shall sell, in
one or more installments, the portion of the payments under the
Master Settlement Agreement to the Master Settlement Asset
Corporation by a sale agreement entered into under this section
for a purchase price equal to the amount of net proceeds in
subsection (2) of this section plus residual interest, if any.
(2) The Oregon Department of Administrative Services, with the
consent of the State Treasurer, shall sell the portion of the
payments under the Master Settlement Agreement estimated, by the
Oregon Department of Administrative Services, in consultation
with the State Treasurer, to be necessary for the corporation to
generate $150 million in net proceeds plus an amount estimated to
provide for the financing costs and operating expenses of the
corporation within the maturity period specified in section 8
(6)(c) of this 2002 fifth special session Act.
(3)(a) Not later than May 1, 2003, the corporation shall pay
the amount of the net proceeds described in subsection (2) of
this section to the Oregon Department of Administrative Services.
(b) The Oregon Department of Administrative Services shall
transfer the net proceeds received from the corporation to the
Department of Education for deposit in the State School Fund
established under ORS 327.008 to be used as grants for programs,
school districts and education service districts.
(4) The Oregon Department of Administrative Services, in
consultation with the State Treasurer, shall establish terms and
conditions in a sale agreement including, but not limited to,
covenants:
(a) Authorizing inclusion of the agreement of the State of
Oregon required in section 13 of this 2002 fifth special session
Act in an agreement with holders of securities issued by the
corporation or benefited parties.
(b) Regarding the use of the net proceeds and residual interest
received by the State of Oregon from the sale of the master
settlement asset in a manner that preserves the tax-exempt status
of interest on securities issued by the corporation, if issued as
tax-exempt.
(5)(a) On and after the effective date of a sale of a master
settlement asset, the State of Oregon retains no right, title or
interest in or to the master settlement asset. The master
settlement asset becomes the property of the corporation.
(b) Within 10 business days of the effective date of a sale of
a master settlement asset, the State of Oregon, through the
Attorney General, shall notify the escrow agent under the Master
Settlement Agreement of the sale of the master settlement asset.
The Attorney General shall instruct the escrow agent to pay the
master settlement asset on or after the effective date of the
sale of the master settlement asset directly to the corporation
or the trustee under a trust agreement or a trust indenture for
the benefit of the holders of securities issued by the
corporation or benefited parties that are secured by the master
settlement asset.
(c) If an officer, employee or agent of the State of Oregon
receives all or a portion of the master settlement asset on or
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after the effective date of a sale of the master settlement
asset, the officer, employee or agent holds the master settlement
asset in trust for the corporation or the trustee, as applicable,
and shall promptly remit the master settlement asset to the
corporation or the trustee.
(6)(a) A sale of a master settlement asset to the corporation
under a sale agreement is a true sale and an absolute transfer of
the master settlement asset. The sale and the agreement to sell
are not a pledge or other offer of security for a debt or
obligation of the corporation. The sale and the agreement to sell
are not a bond, note, evidence of indebtedness or other debt
obligation of the State of Oregon.
(b) The characterization of a sale of a master settlement asset
as an absolute transfer is not negated or adversely affected by
any factor including, but not limited to:
(A) A sale and transfer of only a portion of the payments under
the Master Settlement Agreement;
(B) The requirement that the residual interest be included as a
part of the purchase price;
(C) The participation of an officer or employee of the State of
Oregon as a member of the Master Settlement Asset Corporation
Board of Directors or as an officer or a staff member of the
corporation; or
(D) Any responsibility retained by the State of Oregon for
collecting the master settlement asset or enforcing the
provisions of the Master Settlement Agreement.
(7) The corporation:
(a) May not use net proceeds of the sale of a security or
earnings on the net proceeds to secure or pay financing costs or
operating expenses of the corporation or any obligation related
to securities issued by the corporation.
(b) Shall hold net proceeds or residual interest, if any, in
trust for the State of Oregon. The corporation shall promptly pay
the net proceeds or residual interest, if any, to the State of
Oregon as directed by the State Treasurer.
(c) Shall, pending direction from the State Treasurer to pay
net proceeds or residual interest, if any, to the State of
Oregon, invest in a prudent and productive manner that makes the
net proceeds and residual interest, if any, available for prompt
delivery to the State of Oregon.
(d) May not exercise powers, rights or duties or engage in
activities that are not provided for in sections 1 to 16 of this
2002 fifth special session Act. + }
SECTION 7. { + (1) The Master Settlement Asset Corporation
may:
(a) Sue and be sued;
(b) Have a seal and alter the seal at the pleasure of the
corporation;
(c) Make and alter bylaws for the organization and internal
management of the corporation and for governing the use of the
assets, revenues, debts and obligations of the corporation;
(d) Make and execute contracts including, but not limited to,
sale agreements, trust agreements, trust indentures, bond
purchase agreements, tax regulatory agreements, continuing
disclosure agreements, ancillary facilities or other instruments
necessary for the exercise of its powers, rights and duties;
(e) Engage the services of financial advisers and experts,
placement agents, underwriters, appraisers and other advisers,
consultants, lawyers and agents as necessary to carry out
sections 1 to 16 of this 2002 fifth special session Act
Enrolled House Bill 4073 (HB 4073-B) Page 5
including, but not limited to, services provided for in section 4
(6)(b) of this 2002 fifth special session Act;
(f) Borrow money in its name, issue negotiable securities and
provide for the rights of the holders of the securities;
(g) Procure insurance against a loss in connection with its
activities, properties or assets as it deems desirable;
(h) Invest moneys under its custody and control in a prudent
and productive manner and, notwithstanding any other law, in an
ancillary facility or other obligation the interest on which is
tax exempt under the Internal Revenue Code of 1986, as amended
and in effect on the effective date of this 2002 fifth special
session Act;
(i) Pledge the master settlement asset or other assets or
revenues of the corporation to secure payment of the principal of
and interest on a security issued by the corporation;
(j) Enter into an ancillary facility for a security issued by
the corporation; and
(k) Take other actions necessary to carry out its purposes and
to exercise the powers granted in this section.
(2) The corporation shall pay financing costs and operating
expenses. + }
SECTION 8. { + (1) The Master Settlement Asset Corporation
shall issue, sell and administer securities in a principal
amount, as the corporation determines necessary, to provide net
proceeds in the amount specified in section 6 (2) of this 2002
fifth special session Act plus the financing costs of the
corporation.
(2) The corporation shall:
(a) Authorize the issuance, sale and administration of
securities by resolution;
(b) Determine the form and manner of execution of a security;
(c) Fix the denomination of a security; and
(d) Establish the place of payment of principal and interest on
a security.
(3) The corporation may issue, sell and administer a refunding
security, as the corporation determines necessary, to refund a
security or for any other purpose authorized by sections 1 to 16
of this 2002 fifth special session Act. The corporation may
exchange a refunding security for a security to be refunded or
sell the refunding security and apply the proceeds to purchase,
redeem or pay the refunded security.
(4) A security issued by the corporation is an obligation of
the corporation only. The corporation may commit only the master
settlement asset or other assets or revenue of the corporation to
secure and pay the obligation.
(5) A security issued by the corporation, including a refunding
security, may be issued in the sole discretion of the corporation
without consent of the State of Oregon or its agencies, boards,
commissions or public subdivisions.
(6) A security issued by the corporation, including a refunding
security:
(a) Must be dated;
(b) Must bear interest, at a fixed or variable rate as
determined by the corporation, that:
(A) May be exempt from federal taxation; or
(B) Is payable at or prior to maturity;
(c) Must mature at a time determined by the corporation, but
the stated maturity may not be later than eight years from the
date of issuance; and
Enrolled House Bill 4073 (HB 4073-B) Page 6
(d) May be made redeemable before maturity at a price and under
terms and conditions as determined and fixed by the corporation.
(7) The principal and interest of a security issued by the
corporation is payable in any lawful medium.
(8) The corporation may provide for a temporary security or for
the replacement of a security that is lost, mutilated or
destroyed.
(9) The corporation may sell a security at public or private
sale on a negotiated or a competitive basis. The proceeds of the
sale of a security must be disbursed for the purposes for which
the security was issued.
(10)(a) A pledge made by the corporation is valid and binding
at the time the pledge is made. The master settlement asset and
any other assets, revenues or reserves pledged are immediately
subject to the lien of the pledge without physical delivery or
any further act.
(b) The lien of the pledge is valid and binding as against a
party making a claim in tort, contract or otherwise against the
corporation without regard to whether the party has notice of the
pledge or lien of the pledge.
(c) Notwithstanding any other law, the corporation may choose
whether to record the resolution or other instrument by which the
corporation makes a pledge. However, a copy of the resolution or
other instrument must be filed in the records of the corporation.
(11) Notwithstanding any other law, a security issued by the
corporation is fully negotiable. A holder of a security issued by
the corporation is deemed conclusively, by accepting the
security, to agree that the security is fully negotiable.
(12) The corporation may, in its sole discretion, secure a
security issued by the corporation or an ancillary facility by a
trust agreement or trust indenture entered into by the
corporation and a trustee under the agreement or indenture. The
trustee must be a trust company or bank having the powers of a
trust company, whether located inside or outside the State of
Oregon.
(13) The trust agreement or trust indenture, or the resolution
providing for the issuance of a security, may:
(a) Provide for the creation and maintenance of reserves as the
corporation determines to be necessary;
(b) Include covenants setting forth the duties of the
corporation in relation to:
(A) A security issued by the corporation;
(B) The master settlement asset or other assets or revenues of
the corporation; or
(C) The sale agreement related to the master settlement asset;
(c) Contain provisions related to the custody, safeguarding and
application of moneys and securities;
(d) Contain reasonable provisions protecting and enforcing the
rights and remedies of the holders of a security or a benefited
party; or
(e) Contain other reasonable provisions related to priority and
subordination among the holders of securities issued by the
corporation or other benefited parties.
(14) A bank or trust company incorporated under the laws of the
State of Oregon that acts as depository of the proceeds of a
security or of other moneys on behalf of the corporation may
furnish indemnifying bonds or pledge an obligation if requested
by the corporation.
(15) The corporation may enter into, amend or terminate an
ancillary facility to:
Enrolled House Bill 4073 (HB 4073-B) Page 7
(a) Facilitate the issuance, sale or administration of a
security;
(b) Hedge risk or achieve a desirable effective interest rate
or cash flow; or
(c) Place a security or an investment of the corporation on an
interest rate basis, cash-flow basis or other basis intended by
the corporation.
(16) The corporation shall:
(a) Determine, in its sole discretion, whether it is necessary
to enter into, amend or terminate an ancillary facility, and the
determination of the corporation is conclusive.
(b) Establish the terms and conditions of an ancillary facility
including, but not limited to, terms and conditions related to
security, default, termination, payment, remedy and consent to
service of process, after considering the creditworthiness of a
counterparty or other obligated party, the rating of the
counterparty or other obligated party by a nationally recognized
rating agency and other appropriate criteria.
(17) A security may contain a recital that the security is
issued under sections 1 to 16 of this 2002 fifth special session
Act. The recital is conclusive evidence of the validity of the
security, the validity of a related ancillary facility and the
regularity of the proceedings relating to the security or the
ancillary facility. + }
SECTION 9. { + (1) The Secretary of State shall conduct an
annual financial opinion audit of the Master Settlement Asset
Corporation, and other financial audits as the Secretary of State
considers advisable or necessary, in the manner provided for
financial audit of state departments, boards, commissions,
institutions and state-aided institutions and agencies of the
state under ORS 297.210.
(2) In addition to reporting to the Governor as provided under
ORS 297.210, the Secretary of State shall report to the State
Treasurer, in writing, and include a copy of the audit. + }
SECTION 10. { + (1) A security issued by the Master Settlement
Asset Corporation is not a bond, debt, evidence of indebtedness
or obligation of the State of Oregon or its agencies, boards,
commissions or political subdivisions. A security issued by the
corporation is secured solely by the master settlement asset and
other assets or revenues of the corporation that the corporation
pledges to secure the security and is payable solely from the
master settlement asset and other assets or revenues of the
corporation. A security issued by the corporation is not secured
or payable from the net proceeds of a security issued by the
corporation or residual interest.
(2) The State of Oregon and its agencies, boards, commissions
or political subdivisions have no obligation to pay the principal
or interest of a security issued by the corporation or the
financing costs or operating expenses of the corporation. A
holder of a security issued by the corporation does not have the
right to compel the exercise of the taxing power of the State of
Oregon or its agencies, boards, commissions or political
subdivisions to pay the principal or interest of a security
issued by the corporation or the financing costs or operating
expenses of the corporation. + }
SECTION 11. { + (1) The Master Settlement Asset Corporation is
not a state agency, a political subdivision or a unit of local or
municipal government for purposes of state laws or constitutional
provisions.
Enrolled House Bill 4073 (HB 4073-B) Page 8
(2) ORS 192.410 to 192.505 and 192.610 to 192.690 apply to the
corporation.
(3) Except as otherwise provided in sections 1 to 16 of this
2002 fifth special session Act, the provisions of ORS chapters
35, 182, 183, 190, 240, 243, 279, 281, 282, 283, 291, 292, 293,
294, 295 and 297 and ORS 59.005 to 59.451, 59.991, 59.995,
180.060, 180.210 to 180.235, 192.105, 200.035, 278.405, 278.415
and 357.805 to 357.895 do not apply to the corporation. + }
SECTION 12. { + (1) The assets, revenues, interest on a
security issued by the Master Settlement Asset Corporation and
operations of the corporation are exempt from taxation by the
State of Oregon.
(2) If the interest on a security issued by the corporation is
intended to be exempt from federal taxation, the corporation may
not use the proceeds in a manner that causes the interest to be
includable in gross income under the Internal Revenue Code of
1986, as amended and in effect on the effective date of this 2002
fifth special session Act. + }
SECTION 13. { + (1) The State of Oregon, acting through the
Oregon Department of Administrative Services, shall:
(a) Irrevocably direct, through the Attorney General, the
escrow agent under the Master Settlement Agreement to transfer
the master settlement asset to the corporation or its assignee;
(b) Enforce the right of the State of Oregon to receive
payments under the Master Settlement Agreement to the extent
permitted by the terms of the Master Settlement Agreement;
(c) Refrain from altering or limiting the ability of the
corporation to fulfill the terms and conditions of agreements
made with the holders of securities issued by the Master
Settlement Asset Corporation or with benefited parties;
(d) Refrain from impairing the rights and remedies of the
holders of securities issued by the corporation or benefited
parties or the security for a security or an ancillary facility
of the corporation; and
(e) Enforce the qualifying statute.
(2) The State of Oregon, acting through the Oregon Department
of Administrative Services, shall cooperate with the executive
director of the corporation to reduce the requirements of
subsection (1) of this section to a written agreement.
(3) The Oregon Department of Administrative Services shall
include the agreement required under this section in a sale
agreement entered into under section 6 of this 2002 fifth special
session Act, and the executive director of the corporation shall
include the agreement required under this section in a contract
with the holder of a security issued by the corporation or a
benefited party.
(4) Nothing in sections 1 to 16 of this 2002 fifth special
session Act prevents the State of Oregon from regulating taxation
or the use of tobacco products.
(5) The Legislative Assembly may not dissolve the corporation
until a date that is one year and one day after the date when all
securities and ancillary agreements of the corporation have been
paid in full or otherwise discharged. + }
SECTION 14. { + (1) Notwithstanding any other law, the State
of Oregon, its agencies, boards, commissions and political
subdivisions, a bank, a trust company, a savings bank, a building
and loan association, a saving and loan association, an
investment company, other persons carrying on a banking or
investment business, an executor, an administrator, a guardian, a
trustee and any other person acting as a fiduciary who may invest
Enrolled House Bill 4073 (HB 4073-B) Page 9
in bonds or other obligations of the State of Oregon may invest
moneys owned or in their custody in a security issued by the
Master Settlement Asset Corporation.
(2) When a law requires or authorizes a person to deposit a
bond or undertaking with an officer or employee of the State of
Oregon or one of its agencies, boards, commissions or political
subdivisions, the person may deposit a security issued by the
corporation and the officer or employee may accept the
security. + }
SECTION 15. { + State officers and employees acting within the
scope of their authority to exercise the powers, rights and
duties granted to the corporation are not subject to personal
liability. + }
SECTION 16. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section the
validity of any provision of sections 1 to 16 of this 2002 fifth
special session Act.
(2) Under the jurisdiction conferred in subsection (1) of this
section, a person aggrieved by any provision of sections 1 to 16
of this 2002 fifth special session Act may petition the Supreme
Court for review. The petition must state the facts showing how
the petitioner is aggrieved and the constitutional grounds upon
which the petition is based.
(3) A person petitioning for review under this section is not
required to exhaust administrative remedies or file in another
court prior to filing a petition for review under this section.
(4) A petition for review under this section must present a
justiciable controversy. The petitioner must serve a copy of the
petition on the Attorney General.
(5) The Supreme Court shall give priority on its docket to a
petition for review filed under this section over other civil
matters, except matters related to an election, and shall
expedite a decision on the petition. The Supreme Court may
consolidate on its own motion one or more petitions filed under
this section alleging a similar basis or bases of challenge.
(6) The remedy provided by this section is in addition to any
other remedy or procedure that may be available to determine
whether a provision of sections 1 to 16 of this 2002 fifth
special session Act violates a constitutional provision. + }
SECTION 17. ORS 293.537 is amended to read:
293.537. (1) The Tobacco Settlement Funds Account is
established as an account in the General Fund. { + Except as
provided in sections 1 to 16 of this 2002 fifth special session
Act, + } the account shall consist of all moneys paid to this
state by United States tobacco products manufacturers under the
Master Settlement Agreement of 1998.
(2) All moneys in the Tobacco Settlement Funds Account are
continuously appropriated to the Oregon Department of
Administrative Services to be expended as directed by the
Legislative Assembly.
(3) All moneys in the Tobacco Settlement Funds Account shall be
invested as provided in ORS 293.701 to 293.790.
SECTION 18. { + Notwithstanding any other provision of law,
the amount appropriated to the Department of Education for the
State School Fund by section 2, chapter 890, Oregon Laws 2001,
for the fiscal year beginning July 1, 2002, as modified by
Emergency Board action and by the Legislative Assembly in special
session, is reduced by $150 million. + }
SECTION 19. { + In addition to and notwithstanding any other
law limiting expenditures of the Department of Education, the
Enrolled House Bill 4073 (HB 4073-B) Page 10
amount of $100 million is established for the fiscal year
beginning July 1, 2002, as the maximum limit for payment of
grants from the net proceeds transferred under section 6 of this
2002 fifth special session Act to the Department of Education for
the State School Fund. + }
SECTION 20. { + This 2002 fifth special session Act being
necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this
2002 fifth special session Act takes effect on its passage. + }
----------
Passed by House September 13, 2002
Repassed by House September 18, 2002
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate September 15, 2002
...........................................................
President of Senate
Enrolled House Bill 4073 (HB 4073-B) Page 11
Received by Governor:
......M.,............., 2002
Approved:
......M.,............., 2002
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Governor
Filed in Office of Secretary of State:
......M.,............., 2002
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Secretary of State
Enrolled House Bill 4073 (HB 4073-B) Page 12