S-4735.1                   _______________________________________________

                                            SUBSTITUTE SENATE BILL 6162

                              _______________________________________________

State of Washington                              53rd Legislature                             1994 Regular Session

By Senate Committee on Trade, Technology & Economic Development (originally sponsored by Senators Sheldon, Bluechel, Skratek, Williams, Erwin, M. Rasmussen, Haugen and Oke)

Read first time 02/04/94.

Providing small businesses with assistance with grant writing.

          AN ACT Relating to economic development; adding a new section to chapter 43.330 RCW; creating a new section; and making an appropriation.

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

NEW SECTION. Sec. 1.  The legislature finds that it is in the interest of the state to increase participation by Washington state small businesses in the federal small business innovation research program and to assist small businesses in the state in becoming small business innovation research program grant recipients.  Small technology-based firms are the source of approximately one-half of our nation's major innovations.

          The legislature further finds that many innovators lack the grant-writing skills necessary to prepare a successful proposal and could benefit from the assistance of others in the state with grant-writing experience.

NEW SECTION. Sec. 2.  A new section is added to chapter 43.330 RCW to read as follows:

          (1) As used in this section, the following terms shall have the following meanings:

          (a) "Small business innovation research program" means the program, enacted pursuant to the small business innovation development act of 1982, P.L. 97-219, that provided funds to small businesses to conduct innovative research having commercial application.

          (b) "Small business" means a corporation, partnership, sole proprietorship, or individual, operating a business for profit, with two hundred fifty employees or fewer, including employees employed in a subsidiary or affiliated corporation that otherwise meets the requirements of the federal small business innovation research program.

          (2) The department shall establish a small business innovation research program research proposal review program to assist Washington small businesses to win phase I small business innovation research program awards.

          (a) Each phase I application shall be reviewed by a previous small business innovation research program participant or by a two-member team composed of either two previous small business innovation research program participants or an experienced grant writer and a previous small business innovation research program participant.

          (b) Each reviewer or team participant shall be retained by the department at a rate of no more than one thousand dollars per proposal.

          (c) In implementing this program, the department shall give priority to first-time small business innovation research program applicants, new businesses, and firms with fewer than ten employees.

          (d) The department may charge a fee for this service that is contingent upon the small business's receipt of a phase I award.

NEW SECTION. Sec. 3.  The sum of forty-nine thousand dollars, or as much thereof as may be necessary, is appropriated for the biennium ending June 30, 1995, from the general fund to the department of community, trade, and economic development for the purposes of this act.

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