Research Commercialization Bill Passed by Legislature (7/11/05)

SB853, a bill aiming to increase commercialization of university research, passed the Oregon State House with a unanimous vote on July 11, 2005.  The bill, sponsored by Senator Frank Morse with Senators Ryan Deckert, Betsy Johnson, and Representative Tom Butler, also passed the Senate with a unanimous vote last month.

SB853, one of the items in the Oregon Business Plan Legislative Short List, allows universities in the OUS system and OHSU to establish University Venture Funds for entrepreneurial training and proof of concept funding.  The venture funds would be filled by private (individual or corporate) donations, similar to other capital campaigns of universities and would be eligible for a 60% tax credit spread over three years.

Unlike any other Oregon tax credits, there is a 100% recapture of the credit.  Each year, 20% of the university revenue derived from this fund (e.g. license agreements, equity positions, etc.) would be paid back to the state until 100% of the tax credit is recaptured.  SB853 essentially provides for an upfront loan (of up to $14 million) to seed an ongoing venture fund for universities.

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