Bill Text: OR HB4110 | 2012 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to investment in companies doing business in Iran; and declaring an emergency.

Spectrum: Slight Partisan Bill (Republican 11-7)

Status: (Passed) 2012-03-27 - Chapter 72, (2012 Laws): Effective date March 27, 2012. [HB4110 Detail]

Download: Oregon-2012-HB4110-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2012 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 65

                         House Bill 4110

Sponsored by Representatives GREENLICK, HOYLE, WEIDNER;
  Representatives BERGER, HICKS, HUNT, KENNEMER, KRIEGER,
  MATTHEWS, PARRISH, SHEEHAN, J SMITH, WAND, WHISNANT, WINGARD,
  WITT, Senators BOQUIST, BURDICK (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.

  Directs Oregon Investment Council and State Treasurer to try to
ensure that moneys in Public Employees Retirement Fund are not
invested in companies with interest in energy sector of Iran.
Directs State Treasurer to adopt engagement policy with private
investment fund managers and to encourage managers to end
investments with companies with interest in energy sector of
Iran.
  Requires notices to fund managers, companies and Oregon
Investment Council. Specifies contents of notices.
  Applies subject to specified fiduciary standards.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to investment in companies doing business in Iran; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 2 to 6 of this 2012 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 2012 Act:
  (1) 'Company' means any sole proprietorship, organization,
firm, association, corporation, utility, partnership, venture,
public franchise, franchisor or franchisee, or its wholly owned
subsidiary, that exists for profit-making purposes or otherwise
to secure economic advantage.
  (2) 'Fund of funds' means investment funds that function by
secondary investment in a portfolio of other investments,
including investment funds.
  (3) 'Index funds' means pooled investments that are passively
managed with an intent to match or track the performance of a
market index.
  (4)(a) 'Invest' means to commit funds or other assets to a
company. 'Invest' includes making a loan or other extension of
credit to a company, or owning or controlling a share or interest
in a company or a bond or other debt instrument issued by a
company.
  (b) 'Investment' means the commitment of funds or other assets
to a company for an interest in the company. 'Investment '
includes the ownership or control of a share or interest in a
company or of a bond or other debt instrument issued by a
company.
  (5) 'Iran' means the Islamic Republic of Iran.
  (6) 'Scrutinized company' means any company that currently has
made an investment in the energy sector of Iran as described in
section 202(c)(1) of the Comprehensive Iran Sanctions,
Accountability, and Divestment Act of 2010 (P.L. 111-195), as
further determined by the United States Department of State. + }
  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 fiduciary standards, including the provisions of ORS 293.721
and 293.726, to try to ensure that managers who are engaged by
the council or the State Treasurer for the active management of
investment funds consisting of the Public Employees Retirement
Fund referred to in ORS 238.660, through the purchase and sale of
publicly traded equities, are not investing in publicly traded
equities of any scrutinized company.
  (2) Subsection (1) of this section does not apply to
investments indirectly made through index funds, fund of funds or
privately placed investments. + }
  SECTION 4.  { + (1) Consistent with fiduciary standards,
including the provisions of ORS 293.721 and 293.726, the State
Treasurer shall adopt a statement of policy that describes a
process of engagement with managers who:
  (a) Are engaged by the Oregon Investment Council or the State
Treasurer for the active management of investment funds
consisting of the Public Employees Retirement Fund referred to in
ORS 238.660 through the purchase and sale of publicly traded
equities; and
  (b) Have invested such funds in scrutinized companies.
  (2) The policy required under subsection (1) of this section
must require the State Treasurer, to the extent practicable, to
identify and send a written notice to the managers described in
subsection (1) of this section. The notice shall encourage the
managers, consistent with fiduciary standards, including the
provisions of ORS 293.721 and 293.726, to:
  (a) Notify scrutinized companies with which the managers have
made investments of the State Treasurer's policy adopted pursuant
to subsection (1) of this section; and
  (b) Not later than 90 days giving the notice, end investments
in the scrutinized companies and avoid future investments in the
scrutinized companies, as long as the managers may do so without
monetary loss through reasonable, prudent and productive
investments in companies generating returns that are comparable
to the returns generated by the scrutinized companies.
  (3) A notice given by a manager to a scrutinized company under
subsection (2) of this section shall advise the scrutinized
company that the scrutinized company may comment in writing to
the State Treasurer to dispute the identification of the company
as a scrutinized company.
  (4) If the State Treasurer determines that a company given
notice under subsection (3) of this section is not a scrutinized
company, the State Treasurer shall notify the relevant manager of
the determination.
  (5) The State Treasurer shall advise the Oregon Investment
Council if a manager to whom the notice was given under
subsection (2) of this section has not informed the State
Treasurer within 180 days after the date the notice was given
that the manager has ended the manager's investment in
scrutinized companies or plans to divest from the manager's
investment in scrutinized companies. + }
  SECTION 5.  { + On or before March 15 of each year, the State
Treasurer shall make available on the State Treasurer's website a
summary of actions taken during the previous year in accordance

with sections 2 to 6 of this 2012 Act. The summary shall include
a list of identified scrutinized companies. + }
  SECTION 6.  { + (1) Section 4 (2) to (5) and 5 of this 2012 Act
apply only if the Legislative Assembly appropriates sufficient
moneys to the State Treasurer, other than moneys described in ORS
293.718, to administer section 4 (2) to (5) and 5 of this 2012
Act.
  (2) Any costs incurred by the State Treasurer in administering
sections 2 to 6 of this 2012 Act may not be paid from investment
funds. + }
  SECTION 7.  { + The State Treasurer shall first make available
on the State Treasurer's website the information required under
section 5 of this 2012 Act not later than September 1, 2013. + }
  SECTION 8.  { + Sections 1 to 7 of this 2012 Act become
operative on January 1, 2013. + }
  SECTION 9.  { + This 2012 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2012 Act takes effect on its
passage. + }
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