Chapter 52 Oregon Laws 2001
AN ACT
HB 2119
Relating to investments of
the Oregon Growth Account; amending ORS 348.701, 348.703 and 348.707.
Be It Enacted by the People of the State of Oregon:
SECTION 1.
ORS 348.701 is amended to read:
348.701. As used in ORS 348.701 to 348.710:
(1) “Affordable housing” means housing for Oregonians that
is priced at or below 80 percent of the median gross household income level
statewide and where the cost of that housing comprises not more than 30 percent
of the gross income of a household.
(2) “Board” means the Oregon Growth Account Board
established in ORS 348.707.
(3) “Emerging growth business” means a new or small company
that has the capacity, upon obtaining appropriate capital, to generate
significant high skill, high wage employment within one or more of the key
industries, including those described in ORS 285B.280, and affordable housing.
(4) “Management company” includes a person, limited
partnership, partnership, corporation or other investment company [existing or established to make investments
primarily in Oregon].
SECTION 2.
ORS 348.703 is amended to read:
348.703. (1) The Oregon Growth Account Board shall contract
with one or more management companies to manage and invest the moneys in the
Oregon Growth Account. For purposes of this subsection, a contract with a
management company may consist of a partnership agreement under which the
Oregon Growth Account Board is the limited partner and the management company
is the general partner.
(2) Notwithstanding ORS 293.726, a management company
selected to manage the Oregon Growth Account shall manage the moneys in the
account, subject to investment policies established by the State Treasurer and
the investment directives or strategies of the Oregon Growth Account Board,
with the care, skill and diligence that a prudent investor acting in a similar
capacity and familiar with such investments would use in managing and investing
a similar account. The management
company shall invest in Oregon an amount that is at least equal to the amount
of the principal transferred from the Oregon Growth Account to the management
company for investment.
(3) The contract between the board and a management company
to manage the Oregon Growth Account and the functions performed under the
contract are not subject to the State Personnel Relations Law or ORS [279.545 to 279.746] chapter 279.
(4) Notwithstanding ORS 348.702 (2), a management company
selected to manage the Oregon Growth Account may maintain a portion of the
moneys allocated to the account under ORS 348.702 (1) in short-term securities
in investments other than those specified in ORS 348.702 (2) during such times
as a management company is seeking investments that meet the requirements of
ORS 348.702 (2).
(5) The State Treasurer shall annually submit a report to
the Governor and to the Legislative Assembly on the investment of moneys in the
Oregon Growth Account. The report required by this subsection shall include a
summary of the amount of money invested by industrial sector or business
classification, by region of this state, by size of investment and by type of
investment.
(6) The State Treasurer shall provide to other state
agencies any reports on the investment of moneys in the Oregon Growth Account
that are necessary to fulfill audit, financial, investment or other reporting
requirements to which the Education Endowment Fund is subject by law or
standard accounting principles.
(7) The office of the State Treasurer shall provide staff
to the board.
(8) There is continuously appropriated to the board from
the Oregon Growth Account those amounts necessary to meet the expenses of the
board and the State Treasurer in carrying out the operations of the Oregon
Growth Account and the duties of the board and the State Treasurer. The cost to
the office of the State Treasurer of providing staff to the board shall be
deducted from those amounts paid to the State Treasurer pursuant to ORS 293.718
as reimbursement for expenses incurred as investment officer for the Education
Endowment Fund.
(9) The board may enter into contracts for the provision of
investment advice or other services that the board deems reasonable and
necessary to fulfill the duties of the board. The State Treasurer may enter
into contracts for the provision of investment advice or other services that
the State Treasurer deems reasonable and necessary to fulfill the duties of the
State Treasurer with respect to the Oregon Growth Account. Such contracts are
not subject to the State Personnel Relations Law or ORS [279.545 to 279.746] chapter
279.
SECTION 3.
ORS 348.707 is amended to read:
348.707. (1) There is established an Oregon Growth Account
Board consisting of:
(a) The State Treasurer or the treasurer's designated
representative.
(b) Two members appointed by the Governor who are qualified
by training and experience in the field of venture capital and emerging growth
businesses in Oregon.
(c) One member appointed by the Governor from a list of
candidates recommended by the Oregon Economic and Community Development
Commission established by ORS 285A.040.
(d) One member appointed by the Governor from a list of
candidates recommended by the State Housing Council established by ORS 456.567.
(2) The term of office of each board member appointed by
the Governor is three years. However, each member shall serve at the pleasure
of the Governor. Before the expiration of the term of a member, the Governor
shall appoint a successor. A member is eligible for reappointment. If there is
a vacancy for any cause, the Governor shall make an appointment to become
immediately effective for the unexpired term.
(3) A member of the board may receive reimbursement of
expenses under ORS 292.495 (2), but shall not receive compensation under ORS
292.495 (1) or otherwise for participation as a board member.
(4) The board shall have authority to approve or direct
specific investments or strategies for the investment of moneys in the Oregon
Growth Account, subject to investment policies established for moneys in the
account by the State Treasurer, and the board shall exercise the care, skill
and diligence that a prudent investor acting in a similar capacity and familiar
with such investments would use in managing and investing a similar account. The investment policies of the State
Treasurer may include, but are not limited to:
(a) The reinvestment of
the principal of the account after an original investment;
(b) The reinvestment of
returns from an original investment;
(c) The retention of
amounts for unfunded commitments owed to a management company;
(d) The determination of
when and how earnings are calculated and declared available from the account on
behalf of the Education Endowment Fund; and
(e) Other policies that
the State Treasurer determines may increase the total earnings of the account
over time.
(5) The State Treasurer shall report on the development of
the policies described in subsection (4) of this section to the legislative
interim committees on trade and economic development and government finance and
tax policy.
Approved by the Governor
April 6, 2001
Filed in the office of
Secretary of State April 6, 2001
Effective date January 1,
2002
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