75th OREGON LEGISLATIVE ASSEMBLY--2009 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 2417
 
                         Senate Bill 633
 
Sponsored by Senators BOQUIST, ATKINSON; Senators GIROD, KRUSE,
  WHITSETT, Representatives BRUUN, GREENLICK, MAURER, NOLAN,
  SCHAUFLER, J SMITH, THATCHER, THOMPSON
 
 
                             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.
 
  Directs Oregon Investment Council and State Treasurer to try to
ensure that certain investment funds are not invested in company
doing business in Iran. Sets standard for investment and
reinvestment of funds.
  Directs Oregon Investment Council and State Treasurer to
investigate companies in which council has invested certain
investment funds to determine whether companies are doing
business in Iran. Directs State Treasurer to notify company that
council will withdraw funds invested in company if company does
business in Iran.
  Exempts investments in humanitarian companies, companies
authorized by federal government to do business in Iran and
journalism companies.
  Requires annual reports by State Treasurer to Legislative
Assembly on implementation of Act.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to investments of public funds; and declaring an
  emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 6 of this 2009 Act are added to
and made a part of ORS 293.701 to 293.820. + }
  SECTION 2.  { + As used in sections 2 to 6 of this 2009 Act:
  (1) 'Company' means any sole proprietorship, organization,
firm, association, corporation, utility, partnership, venture,
public franchise, franchisor, franchisee or its wholly owned
subsidiary that exists for profit-making purposes or otherwise to
secure economic advantage.
  (2) 'Doing business' means maintaining equipment, facilities,
personnel or any other apparatus of business or commerce,
including the ownership or possession of real or personal
property.
  (3) 'Investment' or 'invest' means the commitment of funds or
other assets to a company, including a loan or other extension of
credit made to that company, or the ownership or control of a
share or interest in that company or of a bond or other debt
instrument issued by that company.
  (4) 'Iran' means the Islamic Republic of Iran.
  (5) 'Subject investment funds' means:
  (a) The Public Employees Retirement Fund referred to in ORS
238.660;
  (b) The Industrial Accident Fund referred to in ORS 656.632;
  (c) The Common School Fund referred to in ORS 327.405;
  (d) The Oregon War Veterans' Fund referred to in ORS 407.495;
and
  (e) Investment funds of the State Board of Higher Education
available for investment or reinvestment by the Oregon Investment
Council. + }
  SECTION 3.  { + (1) The Oregon Investment Council and the State
Treasurer, in the State Treasurer's role as investment officer
for the council, shall act reasonably and in a manner consistent
with ORS 293.721 and 293.726 to try to ensure that subject
investment funds are not invested in any company that the council
knows is doing business in Iran or is owned or controlled by the
government of Iran.
  (2) Divestment and reinvestment of subject investment funds
under the provisions of this section shall be accomplished by the
Oregon Investment Council and the State Treasurer, without
monetary loss to the funds, through reasonable, prudent and
productive investments in companies and institutions generating
returns that are comparable to the returns generated by the
companies subject to the divestment. + }
  SECTION 4.  { + (1) The Oregon Investment Council and the State
Treasurer, in the State Treasurer's role as investment officer
for the council, shall make reasonable efforts to investigate all
companies in which the council has invested subject investment
funds to determine whether any of those companies are doing
business in Iran or are owned or controlled by the government of
Iran.
  (2) If the State Treasurer determines that a company is doing
business in Iran or is owned or controlled by the government of
Iran, the State Treasurer shall give notice to the company that
the council will withdraw subject investment funds that are
invested in the company as provided in section 3 of this 2009 Act
for as long as the company does business in Iran or is owned or
controlled by the government of Iran. + }
  SECTION 5.  { + Sections 3 and 4 of this 2009 Act do not apply
to:
  (1) Investments in companies that are engaged solely in the
provision of goods and services intended to relieve human
suffering or to promote welfare, health, education or religious
or spiritual activities;
  (2) Investments in United States companies that are authorized
by the federal government to do business in Iran; or
  (3) Investments in companies that are engaged solely in
journalistic activities. + }
  SECTION 6.  { + On or before January 15 of each year, the State
Treasurer shall report to the Legislative Assembly in the manner
provided by ORS 192.245 on actions taken by the State Treasurer
and the Oregon Investment Council pursuant to the provisions of
sections 2 to 6 of this 2009 Act. The State Treasurer shall
consult with the council in preparing reports under this
section. + }
  SECTION 7.  { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
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