Bill Text: OR SB17 | 2013 | Regular Session | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to state finance; declaring an emergency.
Spectrum: Unknown
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB17 Detail]
Download: Oregon-2013-SB17-Introduced.html
Bill Title: Relating to state finance; declaring an emergency.
Spectrum: Unknown
Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB17 Detail]
Download: Oregon-2013-SB17-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 394 Senate Bill 17 Printed pursuant to Senate Interim Rule 213.28 by order of the President of the Senate in conformance with presession filing rules, indicating neither advocacy nor opposition on the part of the President (at the request of State Treasurer Ted Wheeler) 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 Sudan. Applies to investments for which federal law allows divestment by public pension plans. Directs State Treasurer to adopt engagement policy with private investment fund managers and to encourage managers to end investments with companies with interest in Sudan. Requires notices to fund managers, companies and Oregon Investment Council. Specifies contents of notices. Applies subject to specified fiduciary standards. Applies subject to appropriate funding. Declares emergency, effective on passage. A BILL FOR AN ACT Relating to state finance; creating new provisions; amending ORS 293.812; repealing ORS 293.814, 293.815, 293.816 and 293.817; and declaring an emergency. Be It Enacted by the People of the State of Oregon: SECTION 1. ORS 293.812 is amended to read: 293.812. As used in ORS 293.811 to 293.817: (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 in Sudan, including the ownership or possession of real or personal property located in Sudan. - } { - (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) '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. - } { + (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) 'Scrutinized company' means any company that currently has an investment, in the Sudan, from which federal law specifically allows public pension plans to divest. + } { - (5) - } { + (6) + } 'Sudan' means the Republic of the Sudan and any territory under the administration, legal or illegal, of Sudan, including but not limited to the Darfur region. SECTION 2. { + Sections 3 to 6 of this 2013 Act are added to and made a part of ORS 293.811 to 293.817. + } 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 investment 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 after 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 provided by a manager to a scrutinized company under subsection (2) of this section shall advise the scrutinized company that the 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 under subsection (3) of this section that a company is not a scrutinized company, the State Treasurer shall notify the relevant manager of the State Treasurer's determination. (5) The State Treasurer shall advise the Oregon Investment Council of a notice the State Treasurer provides under subsection (2) of this section if the manager to whom the notice was given 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 its 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 ORS 293.811 to 293.817. The summary shall include a list of identified scrutinized companies. + } SECTION 6. { + (1) Section 4 (2) to (5) and section 5 of this 2013 Act apply only if the Legislative Assembly appropriates sufficient moneys to the State Treasurer, other than moneys described by ORS 293.718 or moneys in the Public Employees' Retirement Fund, to administer section 4 (2) to (5) and section 5 of this 2013 Act. + } SECTION 7. { + The State Treasurer shall first make available on the State Treasurer's website the information required under section 5 of this 2013 Act not later than March 15, 2014. + } SECTION 8. { + Sections 3 to 5 of this 2013 Act and the amendments to ORS 293.812 by section 1 of this 2013 Act apply to investments made prior to, on or after the effective date of this 2013 Act. + } SECTION 9. { + ORS 293.814, 293.815, 293.816 and 293.817 are repealed. + } SECTION 10. { + This 2013 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2013 Act takes effect on its passage. + } ----------