170-061-0200 Election to Issue Bonds Under Laws Prior to 2008 (“Prior Laws”) (1) Election For State Agencies. A state agency may request that the State Treasurer elect to issue bonds on behalf of the agency under the Prior Laws, without regard to Chapter 783 Oregon Laws 2007, by submitting a written request for the election to OST on or before the date that is forty-five (45) days before the scheduled sale date for the bonds. The ability to elect Prior Laws for bond issuance provided for in this administrative rule expires January 2, 2010. (2) Demonstrate Need. The request shall demonstrate the need for the election by describing why the agency's bonds cannot or should not be issued under the provisions of Chapter 783, including a description of the problem, if any, in Chapter 783 that led to the agency's request. The State Treasurer may elect to issue bonds under the Prior Laws if the state agency demonstrates that: (a) An approving opinion of bond counsel cannot be provided under Chapter 783 but may be provided under the Prior Laws; (b) The agency's bonds may be issued at a substantially lower cost under the Prior Laws than under Chapter 783; (c) A credit enhancement or other financing mechanism that would substantially improve the overall financing structure of the bond sale may be used under the Prior Laws but not under Chapter 783; or (d) Any other reason that would result in the agency's bonds being issued at a substantially lower cost or under a structure or terms that are substantially better for the agency or the State of Oregon if the bonds are issued under the Prior Laws rather than Chapter 783. An agency shall promptly provide such additional information or documentation as OST may request to assist OST in making a determination as to whether an election should be made. OST will determine whether to make the election on or before thirty (30) days after receipt of the request for an election from a state agency. If OST fails to make a determination within that time, the agency's request will be deemed to be denied. (3) Public Body Election. A public body may elect in writing to issue bonds under the Prior Laws, without regard to Chapter 783 Oregon Laws 2007, on or before the date that is fifteen (15) days before the scheduled sale date for the bonds. The ability to elect Prior Laws for bond issuance provided for in this administrative rule expires January 2, 2010. The public body shall promptly provide the OST with a copy of the written election. The written election shall include a description of the problem, if any, in Chapter 783 that led to the public body's request and demonstrate the need for the election because the public body finds that one or more of the following circumstances exists: (a) An approving opinion of bond counsel cannot be provided under Chapter 783 but may be provided under the Prior Laws; (b) The public body's bonds may be issued at a substantially lower cost under the Prior Laws than under Chapter 783; (c) A credit enhancement or other financing mechanism that would substantially improve the overall financing structure of the bond sale may be used under the Prior Laws but not under Chapter 783; or (d) Another reason or circumstance exists that would result in the public body's bonds being issued at a substantially lower cost, or under a structure or terms that are substantially better for the public body, if the bonds are issued under the Prior Laws rather than Chapter 783. When determining whether to make the election authorized under this rule, the public body shall confer with the OST. A public body shall promptly provide such additional information or documentation as the State Treasurer may request with respect to an election made under this rule. Statutory/Other Authority: Ch. 783 OL 2007 (HB 3265) History: OST 7-2008, f. & cert. ef. 12-29-08 OST 3-2007, f. & cert. ef. 12-27-07