Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Community & Economic Development & Trade Committee

SSB 5553

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Promoting economic development through promoting innovation and the commercialization of technologies.

Sponsors: Senate Committee on Economic Development, Trade & Innovation (originally sponsored by Senators Kilmer, Delvin, Kastama, Shin, Hobbs, Marr, Tom, McAuliffe, Kohl-Welles and Pridemore).

Brief Summary of Substitute Bill

  • Adds specific technology commercialization tasks to the Washington Technology Center's (WTC) existing responsibilities, contingent on funding.

  • Authorizes the WTC to accept and expend gifts, grants, donations, sponsorships, or contributions from any public or private source.

  • Creates an Investing in Innovation Account in the custody of the State Treasurer.

  • Transfers responsibility for contracting with the WTC from the Department of Community, Trade and Economic Development to the University of Washington effective July 1, 2011.

Hearing Date: 3/26/09

Staff: Meg Van Schoorl (786-7105)

Background:

The Washington Technology Center (WTC) was established by the Legislature in 1983 as a collaborative effort between universities, private industry, and government. Its statutory mission is to perform and commercialize research statewide that benefits the state's intermediate and long-term economic vitality. The WTC is to conduct research that is primarily of interest to in-state companies or state economic development programs. The WTC is administered by a board of directors and supported through federal and state funds and private donations. Although the WTC is headquartered at the University of Washington (UW), Washington State University and other participating higher education institutions must provide affiliated staff, faculty, and facilities as required to support WTC operations.

The WTC must:

The Department of Community, Trade and Economic Development (DCTED) is required by statute to contract with the UW for the expenditure of state funds to operate the WTC. The DCTED must provide guidance to the WTC on these expenditures and on development of its strategic plan. The DCTED is responsible to the Legislature for the WTC's contractual performance. The DCTED must not withhold funds appropriated for the WTC if it complies with its contract. In 2007-09 the Legislature appropriated $5.7 million in state general funds to the WTC through the DCTED.

Summary of Bill:

To the extent funds are appropriated, the WTC must itself provide, or contract to:

The WTC may accept gifts, grants, donations, sponsorships, or contributions from any public or private source and spend it for activities consistent with its duties and purpose.

An Investing in Innovation Account (Account) is created in the custody of the State Treasurer. Funds can be directed to the Account from federal, state, and private sources. Expenditures from the Account may be authorized only by the WTC's executive director or designee, and only for the purposes required in the statute, for the "Investing in Innovation" grants program, and other innovation and commercialization purposes. Expenditures are subject to allotment but not appropriation.

Effective July 1, 2011, the UW will administer the contract with the WTC and be responsible for its contractual performance. Until then, the DCTED will retain contractual responsibilities.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed, except for section 3 which transfers contractual responsibility from the DCTED to the University of Washington, and takes effect July 1, 2011.