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Sunday, February 5, 2017

Article XI-H of the Oregon State Constitution

In this post, we look at Article XI-H of the Oregon State Constitution which is entitled "Pollution Control."  The point of this Article is to allow the legislature to undertake pollution control projects financed by bonds or other debt instruments.  The Article has 6 sections.

Section 1

This section defines that bonds can be issued to fund construction of, but not operation of, facilities that deal with waste in some form.  Notably, the State can decide to take over obligations which were originated by municipalities or counties using this Article.

Section 2

This section defines that for most facilities, the facility has to have a revenue stream which can consist of federal money or user fees, that accounts for 70% of the operating expenses.  However, this does not apply to facilities designed for disposal and treatment of hazardous substances.

Section 3

This section takes exception to a rule in Article XI, Section 10 which prohibits counties from taking on debt greater than $5000.00 provided the debt is for the purposes discussed in this Article.

Section 4

This section authorizes ad valorem taxes to be levied on property to pay for borrowing undertaken per section 1.

Section 5

This discusses the bonds issued and allows for them to be rolled over.

Section 6

This clause is a catchall to proscribe that in the event of conflicts between this article and any provisions pre-existing in the constitution, this article takes precedence.

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