SENATE BILL REPORT
SB 6163
AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 8, 1994
Brief Description: Allowing businesses in this state to continue participating in the small business innovation research program.
SPONSORS: Senators Sheldon, Bluechel, Skratek, Williams and Oke
SENATE COMMITTEE ON TRADE, TECHNOLOGY & ECONOMIC DEVELOPMENT
Majority Report: Do pass.
Signed by Senators Skratek, Chairman; Sheldon, Vice Chairman; Bluechel, Cantu, Erwin, M. Rasmussen and Williams.
Staff: Jeff Baird (786‑7444)
Hearing Dates: January 26, 1994; February 1, 1994
SENATE COMMITTEE ON WAYS & MEANS
Majority Report: That Substitute Senate Bill No. 6163 be substituted therefor, and the substitute bill do pass.
Signed by Senators Rinehart, Chairman; Quigley, Vice Chairman; Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Ludwig, McDonald, Moyer, Niemi, Pelz, Roach, L. Smith, Snyder, Spanel, Sutherland, Talmadge, Williams and Wojahn.
Staff: Martin Chaw (786-7711)
Hearing Dates: February 7, 1994; February 8, 1994
BACKGROUND:
Federal Small Business Innovation Research program grants are awarded by federal agencies with research and development budgets of $100 million or more. SBIR grants are awarded in phases. Winning firms are first awarded a phase I contract to perform basic research on an idea or ideas coinciding with a granting agency's mission. This work is then reviewed for scientific merit and technical feasibility before a granting agency awards a phase II grant for research and development. During this review period, a firm may be faced with a several month gap in funding that can threaten the firm's viability.
SUMMARY:
The Department of Community, Trade, and Economic Development is directed to establish a competitive grant program to assist SBIR contract winners who have completed their phase I contract and are awaiting a phase II award. Grants shall not exceed $25,000 and shall be awarded to firms whose technology shows the greatest potential to lead to commercialization and fabrication within the state.
EFFECT OF PROPOSED SUBSTITUTE:
The Department of Community, Trade and Economic Development may award the grants conditioned upon the receipt of a share of any license, patent, copyright, or royalty benefitting the recipient.
A null and void clause is added, making this act contingent upon funding provided in the budget by June 30, 1994.
Appropriation: none
Revenue: yes
Fiscal Note: available
Effective Date: July 1, 1994
TESTIMONY FOR (Trade, Technology & Economic Development):
There is a six to nine month wait between phase I and phase II awards. This long wait can destroy an entrepreneur or small firm that has already risked a great deal of personnel time and capital in winning the phase I grant.
TESTIMONY AGAINST (Trade, Technology & Economic Development): None
TESTIFIED (Trade, Technology & Economic Development): PRO: Clyde Barlow, Barlow Scientific; Phil Spesor, Foresight Science; Mike Anderson, attorney; Gary Smith, Independent Business Association
TESTIMONY FOR (Ways & Means): None
TESTIMONY AGAINST (Ways & Means): None
TESTIFIED (Ways & Means): No one