71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 1702
 
                         Senate Bill 40
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Senate Interim Committee on
  Business, Education and Consumer Affairs for Oregon Resource
  and Technology Development Account Board of Directors)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Expands purpose for moneys in Oregon Resource and Technology
Development Account to include facilitating technology transfer
and commercialization of academic research, discovery and
development in Oregon.
  Appropriates moneys to Oregon Resource and Technology
Development Account Board to carry out purpose.
 
                        A BILL FOR AN ACT
Relating to commercialization of academic research; amending ORS
  284.610, 284.640 and 284.655; and appropriating money.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 284.610 is amended to read:
  284.610. As used in ORS 284.610 to 284.705:
  (1) 'Account' means the Oregon Resource and Technology
Development Account created by ORS 284.655.
  (2) 'Board' means the Oregon Resource and Technology
Development Account Board.
   { +  (3) 'Early stage capital' means financing that is
provided to facilitate the technology transfer of academic
research, discovery and development to commercially focused
start-up business. + }
    { - (3) - }   { + (4) + } 'Innovation' means any new
technology, product or process without regard to whether a patent
has or could be granted.
    { - (4) - }  { +  (5) + } 'Management company' means one or
more persons or an entity carrying on business or proposing to
carry on business in this state which the board contracts with to
manage and invest the account.
    { - (5) - }  { +  (6) + } 'Product' means any product,
device, technique or process, which is or may be exploitable
commercially. However, ' product' does not refer to pure or basic
research but shall apply to such products, devices, techniques or
processes which have advanced beyond the theoretical stage and
are in a prototype or practice stage.
    { - (6) - }  { +  (7) + } 'Qualified security' means any
public or private financial arrangement, involving any note,
security, debenture, evidence of indebtedness, certificate of
interest or participation in any profit-sharing agreement,
preorganization certificate or subscription, transferable
security, investment contract, certificate of deposit for a
security, certificate of interest or participation in a patent or
application therefor, or in royalty or other payments under such
a patent or application, or, in general, any interest or
instrument commonly known as a ' security,' including but not
limited to stock issued by corporations, or any certificate for,
receipt for, guarantee of, or option, warrant or right to
subscribe to or purchase any of the foregoing to the extent
allowed by the Oregon Constitution.
    { - (7) - }  { +  (8) + } 'Seed capital' means financing that
is provided for the development, refinement and commercialization
of a product, process or innovation.
    { - (8) - }  { +  (9) + } 'Small business' means a firm with
its principal place of business in Oregon having 200 or fewer
employees and all other business firms having 50 or fewer
employees.
   { +  (10) 'Start-up business' means early stage creation of a
business in Oregon, including development of a business structure
and business plan intended to commercialize academic research,
discovery and development and result in one or more products or
prototypes. + }
    { - (9) - }  { +  (11) + } 'Traded sector' means those Oregon
firms selling goods and services in markets for which national or
international competition exists.
  SECTION 2. ORS 284.640 is amended to read:
  284.640. (1) The purpose of the Oregon Resource and Technology
Development Account is to earn returns for the Education
Endowment Fund by { + :
  (a) + } Making investments in small businesses including, but
not limited to, investments in small businesses engaged in:
    { - (a) - }  { +  (A) + } Existing resource based industries
of agriculture, forestry, fisheries and metallurgy;
    { - (b) - }  { +  (B) + } Existing advanced technology
industries of electronics, computer and instrument manufacturing,
computer software and information and design; and
    { - (c) - }  { +  (C) + } Emerging industries of
biotechnology, biomedical sciences, aquaculture, materials
sciences and optics { + ; or
  (b) Facilitating technology transfer and commercialization of
academic research, discovery and development by public and
private colleges, universities and research institutions in
Oregon + }.
  (2) { + (a)  + }The Oregon Resource and Technology Development
Account Board may achieve the purpose of the account stated in
subsection (1) { + (a) + } of this section by engaging in seed
capital financing of small businesses.
   { +  (b) The board may achieve the purpose of the account
stated in subsection (1)(b) of this section by engaging in early
stage capital financing of technology transfer and the creation
and development of start-up businesses. + }
  SECTION 3. ORS 284.655 is amended to read:
  284.655. There is created within the Education Endowment Fund
the Oregon Resource and Technology Development Account. Separate
records shall be maintained for moneys in the account that are
available for the   { - purpose - }  { +  purposes + } specified
in ORS 284.640. The account may be credited with such
unrestricted appropriations, gifts, donations, grants or contract
proceeds from any source, with investments or funds from any
source and with returns on investments made from the account.
Moneys in the account are continuously appropriated to the Oregon
Resource and Technology Development Account Board for the
purposes set forth in ORS 284.610 to 284.705 and to meet the
 
expenses of the board in carrying out the operations of the
account and the duties of the board.
  SECTION 4.  { + There is appropriated to the Oregon Resource
and Technology Development Account Board, out of the General
Fund, the amount of $___ for the purpose of facilitating
technology transfer and commercialization of academic research,
discovery and development by public and private colleges,
universities and research institutions in Oregon. This
appropriation shall be deposited in the Oregon Resource and
Technology Development Account and is available continuously
until expended for the purpose specified in this section. + }
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