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 1819
 
                         Senate Bill 101
 
Sponsored by Senator HARTUNG; Senator DUNCAN, Representatives
  HILL, SCHRADER, WILLIAMS
 
 
                             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.
 
  Establishes Higher Education Technology Transfer Fund.  Creates
Higher Education Technology Transfer Fund Board to promote higher
education institution technology transfers and to manage fund.
Directs board to disburse moneys received from fund to eligible
higher education institutions.
  Transfers earnings from Oregon Growth Account and Oregon
Resource and Technology Development Account to fund.
  Declares emergency, effective July 1, 2001.
 
                        A BILL FOR AN ACT
Relating to Higher Education Technology Transfer Fund; creating
  new provisions; amending ORS 293.115 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 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 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.
  (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 Higher Education Technology
Transfer Fund Board 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. 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 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.
  (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 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.
  SECTION 11. 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 earnings on
moneys in the fund shall be transferred and appropriated
continuously   { - in the following amounts - }  { +  as
follows + }:   { +
  (1) All 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;
  (2) All earnings from the Higher Education Technology Transfer
Fund to the Higher Education Technology Transfer Fund pursuant to
section 2 of this 2001 Act; + }
    { - (1) - }  { +  (3) + } 75 percent of   { - the - }
 { + all  + }earnings  { + not described in subsections (1) and
(2) of this section + } to the Oregon Education Fund established
by ORS 348.716; and
    { - (2) - }  { +  (4) + } 25 percent of   { - the - }  { +
all  + }earnings  { + not described in subsections (1) and (2) of
this section + } to the Oregon Student Assistance Commission for
need grants awarded under ORS 348.260.
  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 earnings on
moneys in the fund shall be transferred and appropriated
continuously   { - in the following amounts - }  { +  as
follows + }:   { +
  (1) All 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;
  (2) All earnings from the Higher Education Technology Transfer
Fund to the Higher Education Technology Transfer Fund pursuant to
section 2 of this 2001 Act; + }
    { - (1) - }  { +  (3) + } 75 percent of   { - the - }  { +
all  + }earnings  { + not described in subsections (1) and (2) of
this section  + }to the Oregon Education Fund established by ORS
348.716; and
    { - (2) - }  { +  (4) + } 25 percent of   { - the - }
 { + all  + }earnings  { + not described in subsections (1) and
(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.  { + 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. + }
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