Chapter 920 Oregon Laws 2001

AN ACT

SB 101

Relating to Higher Education Technology Transfer Fund; creating new provisions; amending ORS 293.115 and 348.696 and sections 1 and 5, chapter 519, Oregon Laws 2001 (Enrolled Senate Bill 273); repealing sections 15 and 17, chapter 835, Oregon Laws 2001 (Enrolled Senate Bill 102); 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 9 of this 2001 Act:

(1) “Board” means the Higher Education Technology Transfer Fund Board established in section 4 of this 2001 Act.

(2) “Higher education institution” means:

(a) A community college as defined in ORS 341.005.

(b) A private higher education institution.

(c) The Oregon Health Sciences University.

(d) A state institution of higher education listed in ORS 352.002.

(e) The Department of Higher Education.

(3) “Eligible higher education institution” means a higher education institution that the board determines meets the criteria adopted by rule by the board under section 6 (4) of this 2001 Act.

(4) “Private higher education institution” means a private and independent institution of higher education as defined in ORS 352.720.

(5) “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 higher education institution. 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 established the Higher Education Technology Transfer Fund, separate and distinct from the General Fund. The Higher Education Technology Transfer Fund consists of all moneys received by the Higher Education Technology Transfer Fund Board from any source, public or private, and any other moneys appropriated or allocated to the Higher Education Technology Transfer Fund by the Legislative Assembly.

(2) Interest earned by the Higher Education Technology Transfer Fund shall be credited to the fund.

(3) The moneys in the Higher Education Technology Transfer Fund are continuously appropriated to the Department of Higher Education for administrative expenses incurred by the department under sections 1 to 9 of this 2001 Act and for the purposes of promoting technology transfer programs and activities.

SECTION 3. The Legislative Assembly finds:

(1) Within Oregon, there are higher education institutions renowned for leading technological and scientific research and development. If higher education institutions do not make technology available to private industry to commercialize in a timely fashion, much of the potential economic value of the technology is lost.

(2) By its nature, technology developed at higher education institutions does not produce results that can be immediately used for commercial purposes. Additional research and funding is needed to determine whether the technology has commercial potential, to develop that potential and to protect the interests in the intellectual property. Transfer of technology developed at higher education institutions to private industry permits additional research and development by private industry and can potentially provide funding for higher education institutions.

(3) Assisting higher education institutions to transfer technology to new or small growth businesses within Oregon will promote state economic growth and development. Appropriate technology transfers to these businesses will generate significant high-skill, high-wage employment in the state.

(4) The state should promote technology transfer programs and activities that, as appropriate, will make technology developed at higher education institutions available to private industry. A state board responsible for promoting technology transfers can increase and improve the channels through which technology developed at higher education institutions flows to private industry for further development.

SECTION 4. (1) There is established the Higher Education Technology Transfer Fund Board within the Department of Higher Education. The purpose of the board is to promote technology transfer programs and activities at higher education institutions.

(2) (a) The board shall consist of seven directors appointed by the Governor as follows:

(A) Three shall be from state institutions of higher education listed in ORS 352.002;

(B) One shall be a representative of a private higher education institution; and

(C) Three shall be members of the private business community.

(b) All directors shall have experience in technology transfer and be recognized for their knowledge in that field.

(3) The term of office of each director 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 year. 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 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 may 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, an executive committee may transact any business 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 subsection (5) of this section, a committee may transact any business delegated to the committee.

(11) The Chancellor of the State Board of Higher Education shall provide the Higher Education Technology Transfer Fund Board with staff and other assistance as necessary for the fund board to perform its duties.

SECTION 5. Notwithstanding the term of office specified by section 4 of this 2001 Act, of the directors first appointed to the Higher Education Technology Transfer Fund Board:

(1) Two shall serve for terms ending June 30, 2002.

(2) Two shall serve for terms ending June 30, 2003.

(3) Three shall serve for terms ending June 30, 2004.

SECTION 6. The Higher Education Technology Transfer Fund Board shall:

(1) Manage, administer and protect the Higher Education Technology Transfer Fund.

(2) Accept, manage and control all moneys and other property given to or appropriated for the use, support or benefit of the fund.

(3) Be the custodian of any money, securities or other property that the board accepts as a gift, bequest or devise under section 7 (4) of this 2001 Act. The board shall hold such property as trustee for the fund and shall conserve and administer such property. Except as prohibited by law or restricted by the terms of the gift, bequest or devise, the board may sell or exchange such property. The income from such property shall be credited to the fund.

(4) Establish by rule the criteria by which the board will determine whether a higher education institution is an eligible higher education institution.

(5) Annually determine which higher education institutions are eligible higher education institutions for the following year.

(6) Periodically disburse a portion of the moneys received from the fund to eligible higher education institutions as follows:

(a) An eligible higher education institution shall receive a share of moneys disbursed under this subsection that is proportionate to the sponsored research dollars received by the eligible higher education institution as compared to the total amount of sponsored research dollars received by all eligible higher education institutions.

(b) Disbursements under this subsection shall be by grants or other appropriate disbursements or expenditures, at such times as the board determines appropriate. Board grants or disbursements may be in gross, in installments or both.

(7) Retain up to 10 percent of the moneys received from the fund for administering the programs and activities of the board.

SECTION 6a. Notwithstanding sections 1 (3) and 6 (4) of this 2001 Act, for the period ending July 1, 2002, for purposes of sections 1 to 9 of this 2001 Act, “eligible higher education institution” means a higher education institution that the Higher Education Technology Transfer Fund Board determines actively promotes technology transfer programs and activities and has received two percent or more of the total sponsored research dollars received by all higher education institutions.

SECTION 6b. If Senate Bill 273 becomes law, section 6 of this 2001 Act is amended to read:

Sec. 6. The Higher Education Technology Transfer Fund Board shall:

(1) Manage, administer and protect the Higher Education Technology Transfer Fund.

(2) Accept, manage and control all moneys and other property given to or appropriated for the use, support or benefit of the fund.

(4) Establish by rule the criteria by which the board will determine whether a higher education institution is an eligible higher education institution.

(5) Annually determine which higher education institutions are eligible higher education institutions for the following year.

(6) Periodically disburse a portion of the moneys received from the fund to eligible higher education institutions as follows:

(7) Retain up to 10 percent of the moneys received from the fund for administering the programs and activities of the board.

(8) Annually report to the Oregon Council for Knowledge and Economic Development on the goals, activities and operations of the board and the performance of the fund.

SECTION 6c. If Senate Bill 273 becomes law, section 6 of this 2001 Act, as amended by section 6b of this 2001 Act, is amended to read:

Sec. 6. The Higher Education Technology Transfer Fund Board shall:

(1) Manage, administer and protect the Higher Education Technology Transfer Fund.

(2) Accept, manage and control all moneys and other property given to or appropriated for the use, support or benefit of the fund.

(4) Establish by rule the criteria by which the board will determine whether a higher education institution is an eligible higher education institution.

(5) Annually determine which higher education institutions are eligible higher education institutions for the following year.

(6) Periodically disburse a portion of the moneys received from the fund to eligible higher education institutions as follows:

(7) Retain up to 10 percent of the moneys received from the fund for administering the programs and activities of the board.

[(8) Annually report to the Oregon Council for Knowledge and Economic Development on the goals, activities and operations of the board and the performance of the fund.]

SECTION 6d. The amendments to section 6 of this 2001 Act by section 6c of this 2001 Act become operative on January 2, 2006.

SECTION 7. To promote technology transfer programs and activities at higher education institutions, the Higher Education Technology Transfer Fund Board may:

(1) Establish, support, coordinate and improve technology transfer programs and activities for higher education institutions.

(2) Provide advice and assistance to higher education institutions and to state agencies in matters concerning the establishment, support, operation, improvement and coordination of technology transfer programs and activities.

(3) Expend such moneys as may be available to carry out sections 1 to 9 of this 2001 Act.

(4) Solicit and accept gifts, bequests or devises of money, securities or other property 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 Higher Education Technology Transfer Fund shall be credited with the money, securities and other property solicited or accepted by the board.

(5) Provide financial assistance to higher education institutions in the form of grants, disbursements or other expenditures for technology transfer programs and activities. Such financial assistance may be used for, but the use is not limited to, the following:

(a) To reimburse a higher education institution that provides substantial technology transfer assistance to other higher education institutions;

(b) To establish, support or improve the technology transfer programs of higher education institutions; and

(c) To recognize and reward technology transfer programs of higher education institutions.

(6) Adopt, amend and repeal any rules necessary for the implementation of sections 1 to 9 of this 2001 Act.

(7) Expend moneys retained in the fund under section 6 (7) of this 2001 Act for administering the programs and activities of the board.

SECTION 8. The Higher Education Technology Transfer Fund Board shall expend all moneys appropriated and transferred from the Education Endowment Fund into the Higher Education Technology Transfer Fund for public education in accordance with section 4, Article XV of the Oregon Constitution.

SECTION 9. The provisions of ORS chapter 279 do not apply to the Higher Education Technology Transfer Fund Board.

SECTION 10. 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.

(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 Fund created by section 2 of this 2001 Act and the interest accruing therefrom.

(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.

NOTE: Section 11 was deleted by amendment. Subsequent sections were not renumbered.

SECTION 12. 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 Oregon Growth Account and the Oregon Resource and Technology Development Account to the Higher Education Technology Transfer Fund established in section 2 of this 2001 Act;

[(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 12a. If Senate Bill 102 becomes law and House Bill 3968 does not become law, section 15, chapter 835, Oregon Laws 2001 (Enrolled Senate Bill 102) (amending ORS 348.696), and section 12 of this 2001 Act (amending ORS 348.696) are repealed and ORS 348.696, as amended by sections 13 and 14, chapter 1070, Oregon Laws 1999, and section 16, chapter 835, Oregon Laws 2001 (Enrolled Senate Bill 102), 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 as follows:

[(1)] (2) All declared earnings from the Higher Education Technology Transfer Account to the Department of Higher Education;

[(2)] (3) 75 percent of all declared earnings not described in subsection (1) or (2) of this section to the Oregon Education Fund established by ORS 348.716; and

[(3)] (4) 25 percent of all declared earnings not described in subsection (1) or (2) of this section to the Oregon Student Assistance Commission for the Oregon Opportunity Grant program under ORS 348.260.

SECTION 12b. If Senate Bill 102 becomes law and House Bill 3968 does not become law and 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, section 17, chapter 835, Oregon Laws 2001 (Enrolled Senate Bill 102) (amending ORS 348.696), is repealed and ORS 348.696, as amended by sections 13 and 14, chapter 1070, Oregon Laws 1999, section 16, chapter 835, Oregon Laws 2001 (Enrolled Senate Bill 102), and section 12a of this 2001 Act, is amended on July 1, 2011, to read:

[(2) All declared earnings from the Higher Education Technology Transfer Account to the Department of Higher Education;]

[(3)] (2) 75 percent of all declared earnings not described in subsection (1) [or (2)] of this section to the Oregon Education Fund established by ORS 348.716; and

[(4)] (3) 25 percent of all declared earnings not described in subsection (1) [or (2)] of this section to the Oregon Student Assistance Commission for the Oregon Opportunity Grant program under ORS 348.260.

SECTION 13. There is appropriated to the Higher Education Technology Transfer Fund Board, for the biennium beginning July 1, 2001, out of the General Fund, the amount of $1 for the Higher Education Technology Transfer Fund.

SECTION 14. Section 5, chapter 519, Oregon Laws 2001 (Enrolled Senate Bill 273), is amended to read:

Sec. 5. (1) The Oregon Council for Knowledge and Economic Development shall advise the Governor, the Legislative Assembly, the State Board of Higher Education, the State Board of Education, the Oregon Economic and Community Development Commission, the Oregon Growth Account Board, the Higher Education Technology Transfer Fund Board and the Oregon Resource and Technology Development Board in matters pertaining to knowledge based economic development in Oregon and the collaboration of Oregon's higher education, business, industry and capital resources to promote the following:

(a) High quality research and development;

(b) Private-public models for sharing profit and intellectual property;

(d) A technologically skilled workforce; and

(e) Capital resources for investment in and commercialization of technology developed by higher education or other research institutions, including but not limited to national labs and health care related research entities.

(2) Prior to December 31, 2002, the council shall provide a progress report to the Governor and to the appropriate interim legislative committees regarding the status of the council's mission. The progress report shall also provide recommendations about:

(a) Increasing high quality research and development in this state;

(b) Developing successful models for intellectual property and profit-sharing;

(d) Providing sufficient capital for investment in and commercialization of technology developed by higher education institutions or other research institutions, including but not limited to public, private and university foundations;

(e) Promoting the development of a technologically skilled workforce;

(f) Reviewing the performance of existing programs that support technology transfer and commercialization in Oregon, including but not limited to utilization of federal programs and funding;

(g) Reviewing the performance and utilization of philanthropic programs and funding that support technology and commercialization in Oregon, including but not limited to public, private and university foundations; and

(h) Continuing the council past its sunset date.

(3) In addition to the report required by subsection (2) of this section, the council may also provide reports to the Governor and to the Legislative Assembly as the council determines necessary.

(4) All legislation recommended by official action of the council must indicate that it is introduced at the request of the council. Such legislation shall be prepared in time for presession filing pursuant to ORS 171.130.

SECTION 15. If Senate Bill 273 becomes law and House Bill 3968 does not become law, section 1, chapter 519, Oregon Laws 2001 (Enrolled Senate Bill 273), is amended to read:

Sec. 1. The Legislative Assembly finds that:

(1) A council on knowledge and economic development is necessary to provide for meaningful, ongoing collaboration among Oregon's public and private institutions of higher education, economic development leadership and the private sector in the promotion of knowledge based economic development in Oregon.

(2) A council would act as an early warning system for emerging policy issues and opportunities in knowledge based economic development for the higher education governing boards, the Oregon Economic and Community Development Commission, the Oregon Growth Account Board, the Oregon Resource and Technology Development Account Board, the Higher Education Technology Transfer Fund Board, the Legislative Assembly and the Governor.

(3) A council would advise such agencies and bodies on issues, plans and the necessary infrastructure for improvement in the areas of technology development, transfer and commercialization as generated by the collaboration between the public and private sectors.

SECTION 16. If Senate Bill 273 becomes law and House Bill 3968 does not become law, section 5, chapter 519, Oregon Laws 2001 (Enrolled Senate Bill 273), as amended by section 14 of this 2001 Act, is amended to read:

Sec. 5. (1) The Oregon Council for Knowledge and Economic Development shall advise the Governor, the Legislative Assembly, the State Board of Higher Education, the State Board of Education, the Oregon Economic and Community Development Commission, the Oregon Growth Account Board, the Higher Education Technology Transfer Fund Board and the Oregon Resource and Technology Development Account Board in matters pertaining to knowledge based economic development in Oregon and the collaboration of Oregon's higher education, business, industry and capital resources to promote the following:

(a) High quality research and development;

(b) Private-public models for sharing profit and intellectual property;

(d) A technologically skilled workforce; and

(a) Increasing high quality research and development in this state;

(b) Developing successful models for intellectual property and profit-sharing;

(e) Promoting the development of a technologically skilled workforce;

(f) Reviewing the performance of existing programs that support technology transfer and commercialization in Oregon, including but not limited to utilization of federal programs and funding;

(h) Continuing the council past its sunset date.

(3) In addition to the report required by subsection (2) of this section, the council may also provide reports to the Governor and to the Legislative Assembly as the council determines necessary.

SECTION 17. 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 August 8, 2001

Filed in the office of Secretary of State August 9, 2001

Effective date August 8, 2001

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