Bill Text: OR HB2452 | 2013 | Regular Session | Introduced
Bill Title: Relating to Oregon Seed Fund entities.
Sponsorship: Partisan Bill (Republican 1)
Status: (Failed) 2013-07-08 - In committee upon adjournment. [HB2452 Detail]
Download: Oregon-2013-HB2452-Introduced.html
77th OREGON LEGISLATIVE ASSEMBLY--2013 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 1035
House Bill 2452
Sponsored by Representative CONGER (Presession filed.)
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.
Requires Oregon Growth Account Board to invest $2 million to $4
million of Oregon Growth Account funds in approved Oregon Seed
Fund entities that provide support to emerging growth businesses
in Oregon. Redefines 'seed capital' to include financing for
initial and follow-up phases of emerging growth business
development. Requires that at least 80 percent of emerging growth
businesses receiving funds from Oregon Growth Account through
approved Oregon Seed Fund entities be located outside
acknowledged Portland Metropolitan Area Regional Urban Growth
Boundary. Requires Oregon Seed Fund entities to provide matching
funds.
A BILL FOR AN ACT
Relating to Oregon Seed Fund entities; amending ORS 348.701,
348.702 and 348.703.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 348.701 is amended to read:
348.701. As used in ORS 348.701 to 348.710:
(1) 'Board' means the Oregon Growth Account Board established
in ORS 348.707.
(2) 'Emerging growth business' means an individual or group of
individuals or a new or small company, including but not limited
to any new or small partnership, limited liability company,
corporation, firm, association or other entity, that has the
capacity, upon obtaining appropriate capital, to generate
significant high skill, high wage employment.
(3) 'Management company' includes an individual or group of
individuals, firm, association, limited partnership, partnership,
corporation or other investment company.
{ + (4) 'Oregon Seed Fund entity' means a for-profit or
nonprofit business entity or organization doing business in
Oregon whose purpose is to provide critical support for emerging
growth businesses, including but not limited to:
(a) Coaching and mentoring;
(b) Loans or other means of investments of seed capital;
(c) Assistance with seeking sources of private and public
financing and resources both within and outside Oregon;
(d) Connectivity with businesses and resources located in other
regions of the Pacific Northwest and the west coast of the United
States;
(e) Development and achievement of performance measures and
other objective measurements of business growth and success; and
(f) Other support and assistance to emerging growth businesses
as may be required by the board by directive, policy or rule. + }
{ - (4) - } { + (5) + } 'Seed capital' means { + :
(a) + } Financing that is provided for the initial phases,
including the first phase, of development, refinement and
commercialization of a technology, product, process or
innovation, including but not limited to facilitating technology
transfers related to academic research, discoveries or
developments for the purpose of commercialization of a
technology, product, process or innovation { + ; or
(b) Financing that is provided for the initial and follow-up
phases of development of an emerging growth business + }.
SECTION 2. ORS 348.702 is amended to read:
348.702. (1) There is created within the Education Stability
Fund the Oregon Growth Account, to which shall be credited, in
the manner provided in subsection (2) of this section, five
percent of the funds transferred under { - section 4, - }
Article XV { + , section 4, + } of the Oregon Constitution, from
the Administrative Services Economic Development Fund to the
Education Stability Fund. Separate records shall be maintained
for moneys in the { - Oregon Growth - } account that are
available for the purposes specified in subsection (5) of this
section. The account may be credited with unrestricted
appropriations, gifts, donations, grants or contract proceeds
from any source, with investments or funds from any source and
with returns on investments made from the account.
(2) The Oregon Department of Administrative Services may credit
to the Oregon Growth Account from the first funds transferred in
a fiscal year to the Education Stability Fund under
{ - section 4, - } Article XV { + , section 4, + } of the
Oregon Constitution, an amount up to the amount the department
estimates to be five percent of the funds required to be
transferred to the Education Stability Fund for that fiscal year.
(3) If at the end of the fiscal year the amount credited to the
Oregon Growth Account under subsection (2) of this section is
less than or greater than five percent of the amount required to
be transferred under { - section 4, - } Article XV { + ,
section 4, + } of the Oregon Constitution, to the Education
Stability Fund, the amount credited to the { - Oregon
Growth - } account shall be adjusted in one of the following
ways:
(a) The amount credited to the account in the following fiscal
year may be adjusted;
(b) Any excess may be transferred from the { - Oregon
Growth - } account to the Education Stability Fund; or
(c) Any shortage may be transferred from the Education
Stability Fund to the { - Oregon Growth - } account from funds
available for that purpose.
(4) Adjustments required by subsection (3) of this section
shall be made without consideration of any interest or other
earnings that have accrued during the fiscal year.
(5) The purpose of the Oregon Growth Account is to earn returns
for the Education Stability Fund by making investments in or by
providing seed capital for emerging growth businesses.
(6) { + (a) + } The investment of funds in the Oregon Growth
Account shall be governed by the Oregon Growth Account Board
{ - . - } { + , subject to paragraph (b) of this subsection.
(b) The board shall invest a portion of the funds in the
account, not less than $2 million but not more than $4 million,
to provide seed capital to emerging growth businesses that are
qualified participants in an Oregon Seed Fund entity approved by
the board. The board by rule shall adopt standards and criteria
for approving an Oregon Seed Fund entity that is eligible to
receive funds from the account under this paragraph. The
standards and criteria must include, but are not limited to:
(A) At least 80 percent of emerging growth businesses that
receive funds from an Oregon Seed Fund entity under this
paragraph must have as their principal place of business a
location in Oregon that is outside the acknowledged Portland
Metropolitan Area Regional Urban Growth Boundary;
(B) The Oregon Seed Fund entity must comply with directives,
policies and rules the board may establish for determining the
qualifications of an emerging growth business that will receive
funds from an approved Oregon Seed Fund entity under this
paragraph; and
(C) The Oregon Seed Fund entity must provide matching funds in
amounts to be determined by the board. + }
SECTION 3. ORS 348.702, as amended by section 2, chapter 805,
Oregon Laws 2009, and sections 7a and 33a, chapter 90, Oregon
Laws 2012, is amended to read:
348.702. (1) There is created within the Education Stability
Fund the Oregon Growth Account, to which shall be credited, in
the manner provided in subsection (2) of this section, 10 percent
of the funds transferred under { - section 4, - } Article
XV { + , section 4, + } of the Oregon Constitution, from the
Administrative Services Economic Development Fund to the
Education Stability Fund. Separate records shall be maintained
for moneys in the { - Oregon Growth - } account that are
available for the purposes specified in subsection (5) of this
section. The account may be credited with unrestricted
appropriations, gifts, donations, grants or contract proceeds
from any source, with investments or funds from any source and
with returns on investments made from the account.
(2) The Oregon Department of Administrative Services may credit
to the Oregon Growth Account from the first funds transferred in
a fiscal year to the Education Stability Fund under
{ - section 4, - } Article XV { + , section 4, + } of the
Oregon Constitution, an amount up to the amount the department
estimates to be 10 percent of the funds required to be
transferred to the Education Stability Fund for that fiscal year.
(3) If at the end of the fiscal year the amount credited to the
Oregon Growth Account under subsection (2) of this section is
less than or greater than 10 percent of the amount required to be
transferred under { - section 4, - } Article XV { + , section
4, + } of the Oregon Constitution, to the Education Stability
Fund, the amount credited to the { - Oregon Growth - } account
shall be adjusted in one of the following ways:
(a) The amount credited to the account in the following fiscal
year may be adjusted;
(b) Any excess may be transferred from the { - Oregon
Growth - } account to the Education Stability Fund; or
(c) Any shortage may be transferred from the Education
Stability Fund to the { - Oregon Growth - } account from funds
available for that purpose.
(4) Adjustments required by subsection (3) of this section
shall be made without consideration of any interest or other
earnings that have accrued during the fiscal year.
(5) The purpose of the Oregon Growth Account is to earn returns
for the Education Stability Fund by making investments in or by
providing seed capital for emerging growth businesses.
(6) { + (a) + } The investment of funds in the Oregon Growth
Account shall be governed by the Oregon Growth Account Board
{ - . - } { + , subject to paragraph (b) of this subsection.
(b) The board shall invest a portion of the funds in the
account, not less than $2 million but not more than $4 million,
to provide seed capital to emerging growth businesses that are
qualified participants in an Oregon Seed Fund entity approved by
the board. The board by rule shall adopt standards and criteria
for approving an Oregon Seed Fund entity that is eligible to
receive funds from the account under this paragraph. The
standards and criteria must include, but are not limited to:
(A) At least 80 percent of emerging growth businesses that
receive funds from an Oregon Seed Fund entity under this
paragraph must have as their principal place of business a
location in Oregon that is outside the acknowledged Portland
Metropolitan Area Regional Urban Growth Boundary;
(B) The Oregon Seed Fund entity must comply with directives,
policies and rules the board may establish for determining the
qualifications of an emerging growth business that will receive
funds from an approved Oregon Seed Fund entity under this
paragraph; and
(C) The Oregon Seed Fund entity must provide matching funds in
amounts to be determined by the board. + }
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) 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) 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) A management company selected to manage the Oregon Growth
Account shall manage the moneys in the account, subject to
{ + ORS 348.702 (6), the + } 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) The contract between the { + Oregon Growth Account + }
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) 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) 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) 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) The office of the State Treasurer shall provide staff to
the { + Oregon Growth Account + } Board.
(9) There is continuously appropriated to the { + Oregon
Growth Account + } 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) The { + Oregon Growth Account + } 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.
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