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 1818
B-Engrossed
Senate Bill 102
Ordered by the Senate June 25
Including Senate Amendments dated March 1 and June 25
Sponsored by Senator HARTUNG; Senator DUNCAN, Representatives
HILL, MONNES ANDERSON, 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.
Establishes Higher Education Technology Transfer Account within
Education Endowment Fund. Creates Higher Education Technology
Transfer Account Board { + within Department of Higher
Education + } to govern account. Directs board to transfer moneys
received from fund to state institutions of higher education.
Sunsets July 1, 2011. Sunset takes effect only if amendment to
Oregon Constitution proposed by Senate Joint Resolution 17 (2001)
is approved by people at { - next regular general election - }
{ + special election held on same date as next biennial primary
election + }.
Declares emergency, effective July 1, 2001.
A BILL FOR AN ACT
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. + }
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