BP BHEAD INT S

AN ACT Relating to the Spokane research and technology institute; amending RCW 28B.10.060 and 28B.25.020; adding new sections to chapter 28B.10 RCW; adding new sections to chapter 43.131 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. (1) The legislature finds:

(a) The growth and development of new and existing technology-based businesses in this state are necessary to ensure the economic health of the state and its citizens;

(b) The development and commercialization of new technology plays a vital role in the growth and development of technology-based businesses;

(c) The majority of businesses in the state are small or medium-sized businesses that lack the resources necessary to identify and develop new products or processes on their own; and

(d) The state can play a significant role in supporting applied research and development initiatives that benefit small and medium-sized businesses in the state.

(2) It is the intent of the legislature to replace the Spokane intercollegiate research and technology center with a nonprofit, technology transfer program in eastern Washington that will assist in the development of new products and technologies for small and medium-sized businesses in this state.

Sec. 2. RCW 28B.10.060 and 1991 c 205 s 1 are each amended to read as follows:

((~~(1)~~)) A nonprofit corporation, to be known as the Spokane ((~~intercollegiate~~)) research and technology institute ((~~is hereby~~)) shall be created under chapter 24.03 RCW. The mission of the Spokane research and technology institute is to perform and commercialize research that benefits small and medium-sized technology-based businesses. The areas in which research shall be conducted include, but are not limited to: Environmental technology and environmental restoration; biotechnology; computer software; and manufacturing.

(((2) The institute shall be operated and administered as a multi-institutional education and research center, housing appropriate programs conducted in Spokane under the authority of Washington State University, Eastern Washington University, and the community colleges of Spokane. Gonzaga University and Whitworth College may participate as full partners in any academic and research activities of the institute.

~~(3) The institute shall house education and research programs specifically designed to meet the needs of the greater Spokane area.~~

(4) The coordination of programs and activities at the institute shall be subject to the authority of the joint center for higher education under RCW 28B.25.020. The institute shall be administered by the joint center.

(5) The establishment of any education or research programs at the institute and the lease, purchase, or construction of any site or facility for the institute shall be subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.340.

(6) All cabinets, furniture, office equipment, other tangible property acquired by Washington State University for the institute, all funds, credits, or other assets held by Washington State University for the institute shall be assigned to the joint center for higher education.))

NEW SECTION. Sec. 3. The primary duties of the Spokane research and technology institute include:

(1) Performing applied research of vital interest to Washington's technology-based businesses;

(2) Assisting small and medium-sized businesses to commercialize research results of the Spokane research and technology institute into products and processes;

(3) Providing small and medium-sized businesses access to specialized test equipment and design tools located at the Spokane research and technology institute;

(4) Providing small and medium-sized businesses it assists with information about federal, state, and local business assistance programs and services; and

(5) When possible, conducting collaborative research with other state technology transfer programs, state universities and colleges, federal laboratories and agencies, or private laboratories in this state.

The Spokane research and technology institute shall aggressively seek nonstate funds for its continued operation.

NEW SECTION. Sec. 4. The Spokane research and technology institute shall have the following powers:

(1) To solicit and accept grants, contributions, and any other financial assistance from the federal government, federal agencies, and any other sources to carry out its purposes;

(2) To receive such gifts, grants, and endowments from public or private sources as may be made from time to time in trust or otherwise for the use and benefit of the purposes of the Spokane research and technology institute and expend the same or any income therefrom according to the terms of the gifts, grants, or endowments;

(3) To retain the patent rights for all products developed at the Spokane research and technology institute but may sell licensing rights for products to small and medium-sized businesses; and

(4) To charge fees to businesses for the services provided by the Spokane research and technology institute.

NEW SECTION. Sec. 5. (1) The Spokane research and technology institute shall be administered by the board of directors.

(2) The board shall consist of the following members:

(a) Ten members from among individuals who are associated with or employed by small or medium-sized technology-based businesses. These individuals shall have broad business experience and an understanding of high technology industries or manufacturing;

(b) One member employed or associated with each of the following industries: Biotechnology, environmental technology, computer software, and medical technology;

(c) One member from each of the following universities: Washington State University, Gonzaga University, and Eastern Washington University;

(d) One member from each of the Spokane-area community colleges;

(e) One member representing the federal laboratories;

(f) The executive director of the Washington technology center or the executive director's designee; and

(g) The director of the state department of trade and economic development or the director's designee.

(3) The term of office for each board member, excluding the representative of the federal laboratories, the director of the Washington technology center, and the director of the state department of trade and economic development, shall be three years.

(4) The executive director of the Spokane research and technology institute shall be an ex officio, nonvoting member of the board.

(5) The board shall meet at least quarterly.

(6) Board members shall be appointed by the governor and confirmed by the senate. The governor shall stagger the terms of the first group of appointees to ensure the long-term continuity of the board.

(7) The duties of the board include:

(a) Developing the general operating policies for the Spokane research and technology institute;

(b) Appointing the executive director who shall have broad business and technology transfer experience and an understanding of high technology industries;

(d) Approving the annual operating budget;

(e) Establishing priorities for the selection and funding of research projects supported by state or federal funds that guarantee the greatest potential return on the public's investment;

(f) Approving and allocating state or federal funds for research projects conducted by the Spokane research and technology institute, based on the recommendations of advisory committees established for specific research areas;

(g) Reviewing annual progress reports on state or federally funded research projects that are prepared by the advisory committees established to oversee each of the research areas;

(h) In cooperation with the department of trade and economic development, developing a biennial work plan for the Spokane research and technology institute that shall be updated on an annual basis;

(i) In cooperation with the department of trade and economic development, developing a five-year strategic plan for the Spokane research and technology institute, the first draft of which shall be completed by July 1, 1994;

(j) Coordinating state or federally funded research efforts with the Washington technology center, state universities and community colleges, and federal laboratories involved in technology research and development to prevent duplication of efforts;

(k) Providing an annual report to the governor and the legislature detailing the activities of the Spokane research and technology institute;

(l) Submitting annually to the department of trade and economic development, an updated work plan and a statement of performance measured against the mission, roles, and contractual obligations of the Spokane research and technology institute; and

(m) Conducting a biennial performance assessment of the Spokane research and technology institute's performance that shall include but not be limited to measuring the following: The number of new jobs created; the number of new businesses created; the number of patents applied for; the number of patents issued; the number of licensing agreements signed with industry; revenue generated from licensing agreements with industry; the number of industry agreements and contracts signed; and the number and dollar amount of federal grants and contracts. A report on the performance assessment shall be provided to the governor and the legislature on a biennial basis.

NEW SECTION. Sec. 6. The department of trade and economic development shall contract with the Spokane research and technology institute for the expenditure of state-appropriated funds designated for the operation of the Spokane research and technology institute. The department of trade and economic development shall provide guidance to the institute regarding the expenditure of state-appropriated funds and the development of the institute's strategic plan. The department of trade and economic development shall not withhold funds appropriated for the Spokane research and technology institute.

NEW SECTION. Sec. 7. The Spokane research and technology institute fund is created in the custody of the state treasurer. Expenditures from the fund may be used only for the purposes of funding the programs and services of the Spokane research and technology institute. Fees collected from businesses for the provision of services by the Spokane research and technology institute shall be deposited in this fund. Expenditures from the fund shall be made by the executive director of the Spokane research and technology institute with the approval of the board of directors. The fund is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures from this fund.

NEW SECTION. Sec. 8. The Spokane research and technology institute may contract with the joint center for higher education for the use of facilities at the Spokane higher education park.

NEW SECTION. Sec. 9. A new section is added to chapter 43.131 RCW to read as follows:

The Spokane research and technology institute and its powers and duties shall be terminated June 30, 1996, as provided in section 10 of this act.

NEW SECTION. Sec. 10. A new section is added to chapter 43.131 RCW to read as follows:

The following acts or parts of acts, as now existing or hereafter amended, are each repealed, effective June 30, 1997:

(1) RCW 28B.10.--- and 1993 c --- s 3 (section 3 of this act);

(2) RCW 28B.10.--- and 1993 c --- s 4 (section 4 of this act);

(3) RCW 28B.10.--- and 1993 c --- s 5 (section 5 of this act);

(4) RCW 28B.10.--- and 1993 c --- s 6 (section 6 of this act);

(5) RCW 28B.10.--- and 1993 c --- s 7 (section 7 of this act); and

(6) RCW 28B.10.--- and 1993 c --- s 8 (section 8 of this act).

Sec. 11. RCW 28B.25.020 and 1991 c 205 s 3 are each amended to read as follows:

(1) The joint center shall have authority over all fiscal activities related to the land and facilities known as the Spokane higher education park subject to the approval of the higher education coordinating board pursuant to RCW 28B.80.330 through 28B.80.350.

(2) The joint center for higher education shall coordinate all baccalaureate and graduate degree programs, and all other courses and programs offered in the Spokane area by Washington State University and by Eastern Washington University outside of its Cheney campus. The joint center for higher education shall not coordinate the intercollegiate center for nursing.

(3) The joint center for higher education shall coordinate the following higher education activities in the Spokane area outside of the Eastern Washington University Cheney campus:

(a) Articulation between lower division and upper division programs;

(b) The participation of Washington State University and Eastern Washington University in joint programs with Gonzaga University and Whitworth College and in joint programs with each other; and

~~(d) Programs offered through the intercollegiate research and technology institute created by RCW 28B.10.060~~)).

(4) The participating institutions in the joint center for higher education shall maintain jurisdiction over the content of the course offerings and the entitlement to degrees. However, before any degree is authorized under this section it shall be subject to review and approval of the higher education coordinating board.

(5) The joint center shall develop a master plan for the Spokane higher education park. The plan shall be developed in cooperation with the participating institutions and submitted to the higher education coordinating board, legislature, and office of financial management.

(6) The joint center shall contract with the Spokane research and technology institute for the use of the facilities located at the Spokane higher education park.

(7) The joint center shall adopt rules as necessary to implement this chapter.

((~~(7)~~)) (8) Title to or all interest in real estate and other assets, including but not limited to assignable contracts, cash, equipment, buildings, facilities, and appurtenances thereto held as of July 1, 1991, shall vest in the joint center for higher education.

NEW SECTION. Sec. 12. Sections 3 through 8 of this act are each added to chapter 28B.10 RCW.