71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 2119
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of State Treasurer Jim Hill)
CHAPTER ................
AN ACT
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. + }
Enrolled House Bill 2119 (HB 2119-INTRO) Page 1
(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.
Enrolled House Bill 2119 (HB 2119-INTRO) Page 2
(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.
----------
Passed by House February 14, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate March 20, 2001
...........................................................
President of Senate
Enrolled House Bill 2119 (HB 2119-INTRO) Page 3
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 2119 (HB 2119-INTRO) Page 4