Chapter 42 Oregon Laws 1999

Session Law

AN ACT

SB 188

Relating to the Oregon Growth Account; creating new provisions; amending ORS 293.731, 293.761, 348.701 and 348.703; appropriating money; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 293.731 is amended to read:

293.731. (1) 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.

(2) This section does not apply to:

(a) The Oregon Resource and Technology Development Fund or its board of directors; or

(b) The Oregon Growth Account or the Oregon Growth Account Board.

SECTION 2. ORS 293.761 is amended to read:

293.761. (1) The investment officer shall report monthly 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 as part of the report on the Education Endowment Fund required by this section.

(2) This section does not apply to the Oregon Resource and Technology Development Fund or its board of directors.

SECTION 3. ORS 348.701 is amended to read:

348.701. As used in ORS 293.802 and [348.702 (2) and this section] 348.701 to 348.707:

[(1) "Management company" includes a person, limited partnership, partnership, corporation or other investment company existing or established to make investments primarily in Oregon.]

[(2) "Emerging growth business" means a new or small company that has the capacity, upon obtaining appropriate capital, to generate significant high skill, high wage employment within one or more of the key industries, including those described in ORS 285B.280 and affordable housing.]

[(3)] (1) "Affordable housing" means housing for Oregonians that is priced at or below 80 percent of the median gross household income level statewide and where the cost of that housing comprises not more than 30 percent of the gross income of a household.

(2) "Board" means the Oregon Growth Account Board established in ORS 348.707.

(3) "Emerging growth business" means a new or small company that has the capacity, upon obtaining appropriate capital, to generate significant high skill, high wage employment within one or more of the key industries, including those described in ORS 285B.280, and affordable housing.

(4) "Management company" includes a person, limited partnership, partnership, corporation or other investment company existing or established to make investments primarily in Oregon.

SECTION 4. ORS 348.703 is amended to read:

348.703. (1) The Oregon Growth Account Board shall contract with one or more management companies to manage and invest the moneys in the Oregon Growth Account. For purposes of this subsection, a contract with a management company may consist of a partnership agreement under which the Oregon Growth Account Board is the limited partner and the management company is the general partner.

(2) Notwithstanding ORS 293.726, a management company selected to manage the Oregon Growth Account shall manage the moneys in the account, subject to investment policies established by the State Treasurer and the investment directives or strategies of the Oregon Growth Account Board, with the care, skill and diligence that a prudent investor acting in a similar capacity and familiar with such investments would use in managing and investing a similar account.

(3) The contract between the board and a management company to manage the Oregon Growth Account and the functions performed under the contract are not subject to the State Personnel Relations Law or ORS 279.545 to 279.746.

(4) Notwithstanding ORS 348.702 (2), a management company selected to manage the Oregon Growth Account may maintain a portion of the moneys allocated to the account under ORS 348.702 (1) in short-term securities in investments other than those specified in ORS 348.702 (2) during such times as a management company is seeking investments that meet the requirements of ORS 348.702 (2).

(5) The State Treasurer shall annually submit a report to the Governor and to the Legislative Assembly on the investment of moneys in the Oregon Growth Account. The report required by this subsection shall include a summary of the amount of money invested by industrial sector or business classification, by region of this state, by size of investment and by type of investment.

(6) The State Treasurer shall provide to other state agencies any reports on the investment of moneys in the Oregon Growth Account that are necessary to fulfill audit, financial, investment or other reporting requirements to which the Education Endowment Fund is subject by law or standard accounting principles.

(7) The office of the State Treasurer shall provide staff to the board.

(8) There is continuously appropriated to the board from the Oregon Growth Account those amounts necessary to meet the expenses of the board and the State Treasurer in carrying out the operations of the Oregon Growth Account and the duties of the board and the State Treasurer. The cost to the office of the State Treasurer of providing staff to the board shall be deducted from those amounts paid to the State Treasurer pursuant to ORS 293.718 as reimbursement for expenses incurred as investment officer for the Education Endowment Fund.

(9) The board may enter into contracts for the provision of investment advice or other services that the board deems reasonable and necessary to fulfill the duties of the board. The State Treasurer may enter into contracts for the provision of investment advice or other services that the State Treasurer deems reasonable and necessary to fulfill the duties of the State Treasurer with respect to the Oregon Growth Account. Such contracts are not subject to the State Personnel Relations Law or ORS 279.545 to 279.746.

SECTION 5. Section 6 of this 1999 Act is added to and made a part of ORS 348.701 to 348.707.

SECTION 6. (1) The following records, communications and information furnished under ORS 348.701 to 348.707 shall be confidential and maintained as such, unless the person providing the information expressly agrees in writing that such information may be disclosed:

(a) Personal financial statements;

(b) Financial statements of applicants;

(c) Customer lists;

(d) Information of an applicant pertaining to litigation to which the applicant is a party if the complaint has been filed or, if the complaint has not been filed, if the applicant shows that such litigation is reasonably likely to occur;

(e) Production, sales and cost data; and

(f) Marketing strategy information that relates to an applicant's plan to address specific markets or the applicant's strategy regarding specific competitors, or both.

(2) The confidentiality provided by subsection (1)(d) of this section does not apply to concluded litigation. Nothing in subsection (1)(d) of this section limits any right granted by discovery statutes to a party to litigation or potential litigation.

SECTION 7. This 1999 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 1999 Act takes effect on its passage.

Approved by the Governor April 19, 1999

Filed in the office of Secretary of State April 19, 1999

Effective date April 19, 1999

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