Bill Text: OR HB2198 | 2011 | Regular Session | Introduced

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Bill Title: Relating to the Oregon Growth Account.

Spectrum: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2198 Detail]

Download: Oregon-2011-HB2198-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 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 1161

                         House Bill 2198

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Sustainability and Economic Development)

                             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.

  Allocates first $1 million collected each year for Oregon
Growth Account to investments in seed stage funds. Provides
exception.

                        A BILL FOR AN ACT
Relating to the Oregon Growth Account; creating new provisions;
  and amending ORS 348.703.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 348.703 is amended to read:
  348.703.  { + (1)(a) As used in this subsection, 'seed stage
fund' means a management company managing a pool of moneys used
to finance the early development of a new product or service
concept.
  (b) The Oregon Growth Account Board shall contract with one or
more seed stage funds to manage and invest the first $1 million
credited to the Oregon Growth Account each fiscal year under ORS
348.702 (2). The contracts must, when possible, be distributed to
seed stage funds geographically dispersed throughout this state.
  (c) If the board determines that inadequate investment
opportunities exist for $1 million in seed stage funds, the board
may instead invest all or part of the moneys allocated for seed
stage funds under paragraph (b) of this subsection as provided in
subsection (2) of this section. + }
    { - (1) - }  { +  (2) After executing the contracts under
subsection (1) of this section, if any, + } the Oregon Growth
Account Board shall contract with one or more management
companies to manage and invest the  { + remaining + } moneys in
the Oregon Growth Account.
   { +  (3) + } For purposes of   { - this subsection - }  { +
subsections (1) and (2) of this section + }, a contract with a
management company may consist of:
  (a) A partnership agreement under which the Oregon Growth
Account Board is the limited partner and the management company
is the general partner; or
  (b) Another form of payment or profit-sharing arrangement under
which the Oregon Growth Account Board may receive payment or
another form of return in exchange for its investment in an
emerging growth business.

    { - (2) - }  { +  (4) + } The provisions of ORS 293.726 do
not apply to those assets of the Education Stability Fund that
are held in the Oregon Growth Account. The limitations of ORS
293.726 (6) shall be calculated based only on the balance of the
Education Stability Fund that does not include the Oregon Growth
Account.
    { - (3) - }  { +  (5) + } 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. The management company shall invest in Oregon an
amount that is at least equal to the amount of the principal
transferred from the Oregon Growth Account to the management
company for investment.
    { - (4) - }  { +  (6) + } 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 279.835 to 279.855 or ORS
chapter 279A or 279B.
    { - (5) - }  { +  (7) + } Notwithstanding ORS 348.702 (5), 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 (5) during such times
as a management company is seeking investments that meet the
requirements of ORS 348.702 (5).
    { - (6) - }  { +  (8) + } 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.
    { - (7) - }  { +  (9) + } 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 Stability Fund is subject by law or standard
accounting principles.
    { - (8) - }  { +  (10) + } The office of the State Treasurer
shall provide staff to the board.
    { - (9) - }  { +  (11) + } 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 Stability Fund.
    { - (10) - }  { +  (12) + } 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 279.835 to 279.855 or ORS
chapter 279A or 279B.
  SECTION 2.  { + The amendments to ORS 348.703 by section 1 of
this 2011 Act first apply to the 2012-2013 fiscal year. + }
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