Chapter 586
AN ACT
SB 582
Relating to university venture development funds; amending ORS 351.692,
351.695, 351.697 and 353.445; and declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 351.697 is amended to read:
351.697. (1) Each
university in the Oregon University System and Oregon Health and Science
University may elect to establish a university venture development fund as
provided in this section for the purpose of facilitating the commercialization
of university research and development. A university shall direct that the
university venture development fund be administered, in whole or in part, by
the university or by the university’s affiliated foundation.
(2) The purposes of a
university venture development fund are to provide:
(a) Capital for
university entrepreneurial programs;
(b) Opportunities for
students to gain experience in applying research to commercial activities;
(c) Proof-of-concept
funding for transforming research and development concepts into commercially
viable products and services;
(d) Entrepreneurial
opportunities for persons interested in transforming research into viable
commercial ventures that create jobs in this state; and
(e) Tax credits for
contributors to university research commercialization activities.
(3) Each university that
elects to establish a university venture development fund shall:
(a) Notify the
Department of Revenue of the establishment of the fund;
(b) Either directly or
through [a] its affiliated
foundation [supporting university
activities], solicit contributions to the fund [from contributors] and receive, manage and disburse moneys
contributed to the fund;
(c) Subject to ORS
315.521 (1), 351.692 (3) and 353.445 (3), issue tax credit certificates to
contributors to the fund in the amount of the contributions;
(d) Establish a grant
program that meets the requirements for a venture grant program under policies
adopted by the State Board of Higher Education under ORS 351.692 or under
policies adopted by the Oregon Health and Science University Board of Directors
under ORS 353.445; and
(e) Subject to available
moneys from the fund, provide qualified grant applicants with moneys [to transform research and development
concepts undertaken by the university into commercially viable products and
services] for the purpose of facilitating the commercialization of
university research and development.
(4) Except as
provided in subsection (5) of this section, moneys in a university venture
development fund shall be disbursed only as directed by a university.
(5) A university or its
affiliated foundation may charge its customary administrative assessment to
manage its university venture development fund in an amount not to exceed three
percent of the fund’s average balance during the fiscal year of the university
or its affiliated foundation. The administrative assessment may be paid from
the assets in the fund. Except as authorized by law, no other fees or indirect
costs shall be charged against the university venture development fund or any
associated grants or other disbursements from the fund.
[(4)] (6) A university that has established a university
venture development fund shall monitor the use of grants made from the fund and
identify [sources of] the
income [received] realized by
the university as the result of the use of the grants [to convert research and development concepts
into commercially viable products and services. The university shall transfer
20 percent of the received income to the General Fund, until the amount
transferred to the General Fund equals the amount of tax credits claimed due to
contributions to the fund]. Income consists of cash realized from
royalties, milestone and license fee payments and cash from the sale of equity.
The university shall cause the transfer of 20 percent of the income realized
from the grants to the General Fund, but not to exceed the amount of the tax
credits issued by the university as a result of contributions to its university
venture development fund. Immediately upon deposit of the transferred amount
into the General Fund, the university may issue new tax credits to equal the
transferred amount.
(7) A university that
has established a university venture development fund shall report annually to
the Legislative Assembly or, if the Legislative Assembly is not in session, to
the interim legislative committees on revenue. The report shall be at the end
of the fiscal year of the university or of its affiliated foundation and
provide information for that fiscal year. The university shall include in the
report the following information pertaining to its university venture
development fund:
(a) The amount of
donations received for the fund;
(b) The amount of income
received from the fund;
(c) The amount of disbursements
and grants paid from the fund;
(d) The amount of income
and royalties received from disbursements from the fund; and
(e) The amount of moneys
transferred from the fund to the General Fund.
SECTION 2.
ORS 351.692 is amended to read:
351.692. The State Board
of Higher Education shall adopt policies that prescribe the requirements for a
venture grant program and the requirements that a grant applicant must meet in
order to receive grant moneys from a university venture development fund, including
requirements:
(1) That a grant
recipient remain within this state for at least five years following the
receipt of a grant or repay the grant plus interest;
(2) That each university
that establishes a university venture development fund report amounts of
tax credit certificates issued by the university and maintain records of [licensing and royalty revenue received]
income realized by the university as the result of grants made from the
fund [under ORS 351.697 (4)] and
records of amounts paid to the General Fund [under ORS 351.697 (4)]; and
(3) Under which the
Oregon University System is to maintain records and issue directions to
universities that have established university venture development funds
relating to when universities must cease issuing certificates, in order to
ensure that the total amount [contributed
to university venture development funds within the Oregon University System
does not exceed $10 million.] owed to the General Fund by the Oregon
University System at any one time under ORS 351.697 (6) does not exceed $6
million.
SECTION 3.
ORS 353.445 is amended to read:
353.445. The
(1) That a grant
recipient remain within this state for at least five years following the
receipt of a grant or repay the grant plus interest;
(2) That the university
[maintain records] report amounts
of tax credit certificates issued by the university and cease issuing
certificates [when the total amount of
certificates issued by the university equals $4 million; and] until the
total amount owed to the General Fund by the university at any one time under
ORS 351.697 (6) does not exceed $2.4 million; and
(3) That the university
maintain records of [licensing and
royalty revenue received] income realized by the university as the
result of grants made from the fund [under
ORS 351.697 (4)] and records of amounts paid to the General Fund [under ORS 351.697 (4)].
SECTION 4.
ORS 351.695 is amended to read:
351.695. (1) [At the request of] A university within
the Oregon University System[, the State
Treasurer shall establish one or more university venture development funds for
the university within the State Treasury] may deposit moneys received
for its university venture development fund in the Higher Education Donation
Fund established under ORS 351.130.
[(2) Each university venture development fund established under
subsection (1) of this section may be used for the receipt and disbursement of
funds as described in ORS 351.697 and policies adopted under ORS 351.692. The
State Treasurer may invest moneys deposited in a university venture development
fund. Interest earned by moneys in a university venture development fund shall
be credited to the fund.]
(2) Notwithstanding
ORS 351.697 (5), the State Treasurer, as payment for expenses, may deduct a fee
pursuant to ORS 293.718 from a university venture development fund administered
by a university within the Oregon University System or the Oregon Health and
Science University.
(3) A university within
the
(4) At the request of a
university within the Oregon University System, moneys in the Higher Education
Donation Fund that were deposited by the university under this section may be
transferred to the university’s affiliated foundation.
(5) A university within
the Oregon University System or the Oregon Health and Science University may
retain or may elect to have its affiliated foundation retain some or all of the
principal contributed to a university venture development fund for investment
to perpetuate and increase the moneys available for expenditure. The balance of
the fund and the earnings on that balance may be used as provided under ORS
351.692, 351.695, 351.697 and 353.445.
SECTION 5. This
2007 Act being necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this 2007 Act takes
effect on its passage.
Approved by the Governor June 25, 2007
Filed in the office of Secretary of State June 27, 2007
Effective date June 25, 2007
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