ARTICLE XI-L

OREGON HEALTH AND SCIENCE UNIVERSITY

Sec. 1. State empowered to lend credit for financing capital costs of Oregon Health and Science University; bonds

2. Sources of repayment

3. Refunding bonds

4. Legislation to effectuate Article

5. Relationship to conflicting provisions of Constitution

Section 1. State empowered to lend credit for financing capital costs of Oregon Health and Science University; bonds. (1) In the manner provided by law and notwithstanding the limitations contained in section 7, Article XI of this Constitution, the credit of the State of Oregon may be loaned and indebtedness incurred, in an aggregate outstanding principal amount not to exceed, at any one time, one-half of one percent of the real market value of all property in the state, to provide funds to finance capital costs of Oregon Health and Science University. Bonds issued under this section may not be paid from ad valorem property taxes.

(2) Any indebtedness incurred under this section shall be in the form of general obligation bonds of the State of Oregon containing a direct promise on behalf of the State of Oregon to pay the principal, premium, if any, and interest on such bonds, in an aggregate outstanding principal amount not to exceed the amount authorized in subsection (1) of this section. The bonds shall be the direct obligation of the State of Oregon and shall be in such form, run for such period of time, have such terms and bear such rates of interest as may be provided by statute. The full faith and credit and taxing power of the State of Oregon shall be pledged to the payment of the principal, premium, if any, and interest on such bonds provided, however, that the ad valorem taxing power of the State of Oregon may not be pledged to the payment of such bonds.

(3) The proceeds from bonds issued under this section shall be used to finance capital costs of Oregon Health and Science University and costs of issuing bonds pursuant to this Article. Bonds issued under this section to finance capital costs of Oregon Health and Science University shall be issued in an aggregate principal amount that produces net proceeds for the university in an amount that does not exceed $200 million.

(4) The proceeds from bonds issued under this section may not be used to finance operating costs of Oregon Health and Science University.

(5) As used in this Article, "bonds" means bonds, notes or other financial obligations of the State of Oregon issued under this section. [Created through H.J.R. 19, 2001, and adopted by the people May 21, 2002]

Section 2. Sources of repayment. The principal, premium, if any, interest and any other amounts payable with respect to bonds issued under section 1 of this Article shall be repaid as determined by the Legislative Assembly from the following sources:

(1) Amounts appropriated for such purpose by the Legislative Assembly from the General Fund, including any taxes levied to pay the bonds other than ad valorem property taxes;

(2) Amounts allocated for such purpose by the Legislative Assembly from the proceeds of the State Lottery or from the Master Settlement Agreement entered into on November 23, 1998, by the State of Oregon and leading United States tobacco product manufacturers; and

(3) Amounts appropriated or allocated for such purpose by the Legislative Assembly from other sources of revenue. [Created through H.J.R. 19, 2001, and adopted by the people May 21, 2002]

Section 3. Refunding bonds. Bonds issued under section 1 of this Article may be refunded with bonds of like obligation. [Created through H.J.R. 19, 2001, and adopted by the people May 21, 2002]

Section 4. Legislation to effectuate Article. The Legislative Assembly may enact legislation to carry out the provisions of this Article. [Created through H.J.R. 19, 2001, and adopted by the people May 21, 2002]

Section 5. Relationship to conflicting provisions of Constitution. This Article shall supersede all conflicting provisions of this constitution. [Created through H.J.R. 19, 2001, and adopted by the people May 21, 2002]