Chapter 835 Oregon Laws 2001
AN ACT
SB 102
Relating to Higher Education
Technology Transfer Account; creating new provisions; amending ORS 293.115,
293.731, 293.761, 293.790 and 348.696; appropriating money; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. As
used in sections 1 to 6 of this 2001 Act:
(1) “Board” means the
Higher Education Technology Transfer Account Board created in section 3 of this
2001 Act.
(2) “State institution
of higher education” means an institution listed in ORS 352.002 or the
Department of Higher Education.
(3) “Technology
transfer” means any activity that is intended to lead to the sale, license,
assignment or other grant of a right to use specified intellectual property
assets developed, owned or controlled by a state institution of higher
education. Intellectual property assets include, but are not limited to, any
right, title or interest arising out of a patent, copyright, trade secret,
trademark or other analogous proprietary right.
SECTION 2.
(1) There is created within the
Education Endowment Fund the Higher Education Technology Transfer Account,
separate and distinct from the General Fund. The Higher Education Technology
Transfer Account consists of securities held in accordance with the provisions
of section 4, Article XV of the Oregon Constitution, that apply to the
investment of moneys in the Education Endowment Fund, other property received
from any source, public or private, and any other moneys appropriated or allocated
to the Higher Education Technology Transfer Account by the Legislative
Assembly.
(2) The declared
earnings from the Higher Education Technology Transfer Account are continuously
appropriated to the Department of Higher Education for administrative expenses
incurred by the department under sections 1 to 6 of this 2001 Act and for the
purposes of transfers to state institutions of higher education under section 5
of this 2001 Act. The declared earnings appropriated under this subsection
include, but are not limited to:
(a) Proceeds, dividends
or securities received as a result of securities received in exchange for
technology transfer by a state institution of higher education;
(b) The interest
earnings from the account; and
(c) Any other return on
investment.
(3) The creation and
disbursement of moneys from the Higher Education Technology Transfer Account
shall not require an allotment or allocation of moneys pursuant to ORS 291.234
to 291.260.
SECTION 3.
(1) There is established the Higher
Education Technology Transfer Account Board within the Department of Higher
Education for the purpose of governing the Higher Education Technology Transfer
Account.
(2) The board shall
consist of:
(a) The State Treasurer
or the treasurer’s designated representative.
(b) Four directors
appointed by the Governor as follows:
(A) Three directors from
the private financial sector having experience in either high-risk venture
investments or commercial banking and recognized for outstanding knowledge and
leadership in at least one of these two fields; and
(B) One director from a
state institution of higher education and qualified to serve by reason of the
director’s professional experience.
(3) The term of office
of each director appointed by the Governor is three years but a director serves
at the pleasure of the Governor. Before the expiration of the term of a
director, the Governor shall appoint a successor whose term begins on July 1
next following. A director 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.
(4) A director appointed
by the Governor shall receive compensation and expenses as provided in ORS
292.495.
(5) All actions of the
board shall be by a majority vote of the full number of directors. If less than
the full number of directors is able to vote on an item of business due to
conflict of interest, a majority of those directors able to vote on that item
shall be sufficient to approve that item.
(6) The board shall hold
all meetings in Oregon.
(7) The board shall
annually select one director as chairperson and one director as vice
chairperson.
(8) The board shall meet
at least once each fiscal year. The board shall meet at the call of the chairperson
or at the written request of a majority of the directors.
(9) The board shall
establish an executive committee composed of the chairperson and one additional
director chosen by the chairperson from the remaining directors.
Notwithstanding subsection (5) of this section, the executive committee may
transact any business that has been delegated to the executive committee.
(10) The board may
establish such other committees as necessary and delegate to the committees
such duties as the board considers desirable. Notwithstanding the requirements
of subsection (5) of this section, the committees may transact any business
delegated to them.
(11) The Chancellor of
the State Board of Higher Education shall provide the Higher Education
Technology Transfer Account Board with staff and other assistance as necessary
for the account board to perform its duties.
SECTION 4.
Notwithstanding the term of office
specified in section 3 of this 2001 Act, of the directors first appointed by
the Governor to the Higher Education Technology Transfer Account Board:
(1) One shall serve for
a term ending June 30, 2002.
(2) One shall serve for
a term ending June 30, 2003.
(3) Two shall serve for
terms ending June 30, 2004.
SECTION 5.
(1) The Higher Education Technology
Transfer Account Board shall:
(a) Adopt investment
policies for the purpose of maintaining, investing and reinvesting assets to
earn a return on investments in the Higher Education Technology Transfer
Account to further technology transfer programs and other public education
activities.
(b) Manage the account
in accordance with policies adopted under paragraph (a) of this subsection.
(c) Transfer to a state
institution of higher education those declared earnings from the account that
the board can identify as having been credited to the account as proceeds,
dividends or securities received as a result of securities received in exchange
for technology transfer by that state institution of higher education. Amounts
transferred to a state institution of higher education under this paragraph are
continuously appropriated to the Department of Higher Education for use by the
state institution of higher education.
(2) In managing the
account, the board may:
(a) Make and enter into
contracts, agreements and arrangements as necessary or desirable for carrying
out the duties of the board.
(b) Retain, employ and
contract for the services of private and public financial institutions,
investment advisors and managers, depositories and consultants, and for
research, technical and other services necessary or desirable for carrying out
the purposes of the account and to fulfill the duties of the board.
(c) Adopt, amend and
repeal rules as necessary for the administration of sections 1 to 6 of this
2001 Act.
(d) Take any
intellectual property asset of whatever character transferred from a state
institution of higher education as part of a technology transfer activity. A
transfer of such an intellectual property asset shall not be accepted if such
restriction would be contrary to the laws of this state or policies of the
board. The account shall be credited with the revenues or other property
received in exchange for intellectual property assets received under this
paragraph.
(e) Solicit and accept
gifts, bequests or devises of money, securities or other property of whatever
character to further the mission of the board. A restricted gift, bequest or
devise shall not be accepted if such restriction would be contrary to the laws
of this state or the policies of the board. The account shall be credited with
the money, securities or other property solicited or accepted by the board.
(f) Disburse to state
institutions of higher education those declared earnings from the account that
are appropriated continuously to the board under section 2 of this 2001 Act.
(3) In managing the
account, the board shall:
(a) Be the custodian of
any securities or other property that the board accepts under subsection (2)(d)
and (e) of this section. The board shall hold such property as trustee for the
Higher Education Technology Transfer Account and shall conserve and administer
such property. Except as prohibited by law or restricted by the terms of a
transfer, gift, bequest or devise, the board may sell or exchange such property
as the board may from time to time determine. The income from property shall be
credited to the Higher Education Technology Transfer Account; and
(b) Hold and dispose of
securities received in exchange for a technology transfer from a state
institution of higher education to a private entity and invest and reinvest
such securities or any moneys, proceeds, dividends or securities received as a
result of those securities.
(4) The provisions of
ORS chapter 279 do not apply to the board.
SECTION 6.
(1) ORS 293.718 and the standards set
forth in ORS 293.726 for the Oregon Investment Council shall not apply to the
Higher Education Technology Transfer Account.
(2) In managing the
account, the Higher Education Technology Transfer Account Board shall exercise
the care, skill and diligence that a prudent investor acting in a like capacity
and familiar with such investments would use in managing and investing moneys
in an account of like character, consistent with the purpose of the account.
SECTION 7.
ORS 293.115 is amended to read:
293.115. The following moneys shall be separate and
distinct from the General Fund:
(1) Moneys paid into the State Treasury for fiduciary
purposes.
(2) Moneys by law directed and required to be placed by the
State Treasurer to the credit of:
(a) The Agricultural College Fund principal and the
interest accruing from the investment thereof.
(b) The Burbank Trust Fund and the interest accruing from
the investment thereof.
(c) The Common School Fund and the interest accruing from
the investment thereof.
(d) The Industrial Accident Fund under ORS 656.632 and the
interest accruing from the investment thereof.
(e) The Consumer and Business Services Fund under ORS
705.145 and the interest accruing from the investment thereof.
(f) The Workers’ Benefit Fund created in ORS 656.605 and
the interest accruing from the investment thereof.
(g) The University Fund principal and the interest accruing
from the investment thereof.
(h) The University of Oregon Villard Endowment Interest
Fund.
(i) The Higher
Education Technology Transfer Account created in section 2 of this 2001 Act and
the interest accruing from the investment thereof.
(3) All sums received by the state from the federal
government from forest reserves, rentals, sales of timber and other sources
from forest reserves, under ORS 293.560 and the interest accruing from the
investment thereof.
(4) All sums received from the five percentum of sales of
public lands and apportioned under ORS 272.085 and the interest accruing from
the investment thereof.
(5) All sums received from the federal government under ORS
293.565 to 293.575 under Mineral Leasing Act, Federal Flood Control Act and the
Taylor Grazing Act and the interest accruing from the investment thereof.
(6) Any other trust funds created by law.
SECTION 8.
If the amendment to section 6, Article XI of the Oregon Constitution, proposed
by Senate Joint Resolution 17 (2001) is approved by the people at a special
election held throughout this state on the same date as the next biennial
primary election, ORS 293.115, as amended by section 7 of this 2001 Act, is
amended on July 1, 2011, to read:
293.115. The following moneys shall be separate and
distinct from the General Fund:
(1) Moneys paid into the State Treasury for fiduciary
purposes.
(2) Moneys by law directed and required to be placed by the
State Treasurer to the credit of:
(a) The Agricultural College Fund principal and the
interest accruing from the investment thereof.
(b) The Burbank Trust Fund and the interest accruing from
the investment thereof.
(c) The Common School Fund and the interest accruing from
the investment thereof.
(d) The Industrial Accident Fund under ORS 656.632 and the
interest accruing from the investment thereof.
(e) The Consumer and Business Services Fund under ORS
705.145 and the interest accruing from the investment thereof.
(f) The Workers’ Benefit Fund created in ORS 656.605 and
the interest accruing from the investment thereof.
(g) The University Fund principal and the interest accruing
from the investment thereof.
(h) The University of Oregon Villard Endowment Interest
Fund.
[(i) The Higher
Education Technology Transfer Account created in section 2 of this 2001 Act and
the interest accruing from the investment thereof.]
(3) All sums received by the state from the federal
government from forest reserves, rentals, sales of timber and other sources
from forest reserves, under ORS 293.560 and the interest accruing from the
investment thereof.
(4) All sums received from the five percentum of sales of
public lands and apportioned under ORS 272.085 and the interest accruing from
the investment thereof.
(5) All sums received from the federal government under ORS
293.565 to 293.575 under Mineral Leasing Act, Federal Flood Control Act and the
Taylor Grazing Act and the interest accruing from the investment thereof.
(6) Any other trust funds created by law.
SECTION 9.
ORS 293.731 is amended to read:
293.731. Subject to the objective set forth in ORS 293.721
and the standards set forth in ORS 293.726, the Oregon Investment Council shall
formulate policies for the investment and reinvestment of moneys in the
investment funds and the acquisition, retention, management and disposition of
investments of the investment funds. The council, from time to time, shall review
those policies and make changes therein as it considers necessary or desirable.
The council may formulate separate policies for any fund included in the
investment funds. This section does not apply to the Oregon Resource and
Technology Development Account[,] and to the Oregon Resource and
Technology Development Account Board, to the Oregon Growth Account [or] and
to the Oregon Growth Account Board,
or to the Higher Education Technology Transfer Account and the Higher Education
Technology Transfer Account Board.
SECTION 10.
If the amendment to section 6, Article XI of the Oregon Constitution, proposed
by Senate Joint Resolution 17 (2001) is approved by the people at a special
election held throughout this state on the same date as the next biennial
primary election, ORS 293.731, as amended by section 9 of this 2001 Act, is
amended on July 1, 2011, to read:
293.731. Subject to the objective set forth in ORS 293.721
and the standards set forth in ORS 293.726, the Oregon Investment Council shall
formulate policies for the investment and reinvestment of moneys in the
investment funds and the acquisition, retention, management and disposition of
investments of the investment funds. The council, from time to time, shall
review those policies and make changes therein as it considers necessary or
desirable. The council may formulate separate policies for any fund included in
the investment funds. This section does not apply to the Oregon Resource and
Technology Development Account, [and] to the Oregon Resource and
Technology Development Account Board, to the Oregon Growth Account or [and]
to the Oregon Growth Account Board[, or
to the Higher Education Technology Transfer Account and the Higher Education
Technology Transfer Account Board].
SECTION 11.
ORS 293.761 is amended to read:
293.761. The investment officer shall report quarterly to
the officer or body having control and administration of each fund included in
the investment funds the changes in investments made during the preceding month
for the fund. If requested by the officer or body, the investment officer shall
furnish to the officer or body the details on the investment transactions for
any fund. The investment officer shall separately identify investments held in
the Oregon Growth Account established in ORS 348.702,[and] the Oregon
Resource and Technology Development Account established in ORS 284.655 and the Higher Education Technology
Transfer Account created in section 2 of this 2001 Act as part of the
report on the Education Endowment Fund required by this section.
SECTION 12.
If the amendment to section 6, Article XI of the Oregon Constitution, proposed
by Senate Joint Resolution 17 (2001) is approved by the people at a special
election held throughout this state on the same date as the next biennial
primary election, ORS 293.761, as amended by section 11 of this 2001 Act, is
amended on July 1, 2011, to read:
293.761. The investment officer shall report quarterly to
the officer or body having control and administration of each fund included in
the investment funds the changes in investments made during the preceding month
for the fund. If requested by the officer or body, the investment officer shall
furnish to the officer or body the details on the investment transactions for
any fund. The investment officer shall separately identify investments held in
the Oregon Growth Account established in ORS 348.702[,] and the Oregon
Resource and Technology Development Account established in ORS 284.655[, and the Higher Education Technology
Transfer Account created in section 2 of this 2001 Act] as part of the
report on the Education Endowment Fund required by this section.
SECTION 13.
If the amendment to section 6, Article XI of the Oregon Constitution, proposed
by Senate Joint Resolution 17 (2001) is approved by the people at a special
election held throughout this state on the same date as the next biennial
primary election, ORS 293.790 is amended on the effective date of Senate Joint
Resolution 17 (2001) to read:
293.790. (1) Under authority of section 6, Article XI of
the Oregon Constitution, the state, subject to subsection (2) of this section,
may hold and dispose of the stock of any company, association or corporation,
including stock already received, that is donated or bequeathed and the state,
acting by and through the State Board of Higher Education, subject to
subsection (2) of this section, may invest and reinvest in the stock of any
company, association or corporation, any funds or moneys of the State Board of
Higher Education that:
(a) Are or have been donated or bequeathed for higher
education purposes;
(b) Are the proceeds from the disposition of stock that is
donated or bequeathed for higher education purposes, including stock already
received; or
(c) Are dividends paid with respect to stock that is
donated or bequeathed for higher education purposes, including stock already
received.
(2) The state, including any of its agencies having control
of, or authority to invest and reinvest in, any stock described in subsection
(1) of this section, in holding, disposing of or investing and reinvesting in
such stock, shall be governed by ORS 128.065 and 128.194 to 128.218,
notwithstanding the date of acquisition of such stock. Moneys received from the
disposition of such stock, including dividends, shall be maintained separate
and distinct from the General Fund, and those moneys, including interest earned
thereon, are appropriated continuously for the purposes of the donation or
bequest and of the investments and reinvestments authorized by subsection (1)
of this section and by ORS 351.130. Except as specifically authorized by law,
the state or any of its agencies may not purchase stock.
(3)(a) This
section does not apply to investment and reinvestment of moneys in the Public
Employees Retirement Fund, the Industrial Accident Fund, the Deferred
Compensation Fund and the Education Endowment Fund or to acquisition,
retention, management and disposition of investments of those funds as provided
in ORS 293.701 to 293.820.
(b) This section
does not apply to investment or reinvestment of moneys or stock resulting from
the holding and disposing of stock by the state as allowed under section 6 (2),
Article XI of the Oregon Constitution.
NOTE:
Section 14 was deleted by amendment. Subsequent sections were not renumbered.
SECTION 15.
ORS 348.696 is amended to read:
348.696. The Education Endowment Fund is established
separate and distinct from the General Fund. Moneys in the fund shall be
invested as provided in ORS 293.701 to 293.790. All declared earnings on moneys in the fund shall be transferred and
appropriated continuously [in the
following amounts] as follows:
(1) All declared
earnings from the Higher Education Technology Transfer Account to the
Department of Higher Education;
[(1)] (2) 75 percent of [the] all declared earnings not
described in subsection (1) of this section to the Oregon Education Fund
established by ORS 348.716; and
[(2)] (3) 25 percent of [the]
all declared earnings not described
in subsection (1) of this section to the Oregon Student Assistance
Commission for need grants awarded under ORS 348.260.
SECTION 16.
ORS 348.696, as amended by sections 13 and 14, chapter 1070, Oregon Laws 1999,
is amended to read:
348.696. The Education Endowment Fund is established
separate and distinct from the General Fund. Moneys in the fund shall be
invested as provided in ORS 293.701 to 293.790. All declared earnings on moneys in the fund shall be transferred and
appropriated continuously [in the
following amounts] as follows:
(1) All declared
earnings from the Higher Education Technology Transfer Account to the
Department of Higher Education;
[(1)] (2) 75 percent of [the]
all declared earnings not described
in subsection (1) of this section to the Oregon Education Fund established
by ORS 348.716; and
[(2)] (3) 25 percent of [the] all declared earnings not
described in subsection (1) of this section to the Oregon Student
Assistance Commission for the Oregon Opportunity Grant program under ORS
348.260.
SECTION 17.
If the amendment to section 6, Article XI of the Oregon Constitution, proposed
by Senate Joint Resolution 17 (2001) is approved by the people at a special
election held throughout this state on the same date as the next biennial
primary election, ORS 348.696, as amended by sections 13 and 14, chapter 1070,
Oregon Laws 1999, and section 16 of this 2001 Act, is amended on July 1, 2011,
to read:
348.696. The Education Endowment Fund is established
separate and distinct from the General Fund. Moneys in the fund shall be
invested as provided in ORS 293.701 to 293.790. All declared earnings on moneys
in the fund shall be transferred and appropriated continuously [as follows] in the following amounts:
[(1) All declared
earnings from the Higher Education Technology Transfer Account to the
Department of Higher Education;]
[(2)] (1) 75 percent of [all] the declared
earnings [not described in subsection (1)
of this section] to the Oregon Education Fund established by ORS 348.716;
and
[(3)] (2) 25 percent of [all] the declared earnings [not described
in subsection (1) of this section] to the Oregon Student Assistance
Commission for the Oregon Opportunity Grant program under ORS 348.260.
SECTION 18.
If the amendment to section 6, Article
XI of the Oregon Constitution, proposed by Senate Joint Resolution 17 (2001) is
approved by the people at a special election held throughout this state on the
same date as the next biennial primary election, sections 1 to 6 of this 2001
Act are repealed on July 1, 2011.
SECTION 19.
If the amendment to section 6, Article
XI of the Oregon Constitution, proposed by Senate Joint Resolution 17 (2001) is
approved by the people at a special election held throughout this state on the
same date as the next biennial primary election, any securities, property or
moneys held in the Higher Education Technology Transfer Account shall be
transferred to the Oregon Resource and Technology Development Account on June
30, 2011.
SECTION 20.
This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an emergency is
declared to exist, and this 2001 Act takes effect July 1, 2001.
Approved by the Governor
July 27, 2001
Filed in the office of
Secretary of State July 27, 2001
Effective date July 27, 2001
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