ARTICLE XI-M

SEISMIC REHABILITATION OF PUBLIC EDUCATION BUILDINGS

Sec. 1. State empowered to lend credit for seismic rehabilitation of public education buildings; bonds

2. Sources of repayment

3. Refunding bonds

4. Legislation to effectuate Article

5. Relationship to conflicting provisions of Constitution

Note: Article XI-M was designated as "Article XI-L" by S.J.R. 21, 2001, and adopted by the people Nov. 5, 2002.

Section 1. State empowered to lend credit for seismic rehabilitation of public education buildings; 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-fifth of one percent of the real market value of all property in the state, to provide funds for the planning and implementation of seismic rehabilitation of public education buildings, including surveying and conducting engineering evaluations of the need for seismic rehabilitation.

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

(3) As used in this section, "public education building" means a building owned by the State Board of Higher Education, a school district, an education service district, a community college district or a community college service district. [Created through S.J.R. 21, 2001, and adopted by the people Nov. 5, 2002]

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

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

(2) Amounts allocated for the 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 the purpose by the Legislative Assembly from other sources of revenue. [Created through S.J.R. 21, 2001, and adopted by the people Nov. 5, 2002]

Section 3. Refunding bonds. General obligation bonds issued under section 1 of this Article may be refunded with bonds of like obligation. [Created through S.J.R. 21, 2001, and adopted by the people Nov. 5, 2002]

Section 4. Legislation to effectuate Article. The Legislative Assembly may enact legislation to carry out the provisions of this Article. [Created through S.J.R. 21, 2001, and adopted by the people Nov. 5, 2002]

Section 5. Relationship to conflicting provisions of Constitution. This Article supersedes conflicting provisions of this Constitution. [Created through S.J.R. 21, 2001, and adopted by the people Nov. 5, 2002]