Requirements for legislation authorizing lottery bonds

(1) Any legislation authorizing issuance of lottery bonds under ORS 286A.560 to 286A.585 shall: (a) State the purposes for which the proceeds of lottery bonds may be spent; (b) Contain findings that those uses are lawful uses of lottery revenues; (c) Indicate the amount of lottery bonds that may be issued under the legislation; (d) Specify the fund into which the net proceeds of those lottery bonds shall be deposited; and (e) Provide for the payment of the bond-related costs for the lottery bonds. (2) Unless specifically prohibited by the legislation authorizing lottery bonds: (a) Any agency or other entity holding net proceeds of lottery bonds shall, upon the written request of the Director of the Oregon Department of Administrative Services, transfer to the Oregon Department of Administrative Services for deposit in the Lottery Bond Administrative Fund the amounts that the director states in the request are reasonably required to pay for bond-related costs that are allocable to those net proceeds. (b) The agencies or other entities receiving proceeds of lottery bonds shall, if so directed by the Oregon Department of Administrative Services, take any action specified by the Oregon Department of Administrative Services that is necessary to maintain the excludability of lottery bond interest from gross income under the Internal Revenue Code.