BILL REQ. #:  H-1815.1 

READ FIRST TIME 03/10/03.   

     AN ACT Relating to investing in technology and biotechnical research and technology transfer; reenacting and amending RCW 43.79A.040; adding a new section to chapter 28B.20 RCW; and adding a new chapter to Title 70 RCW.

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

NEW SECTION.  Sec. 1   It is the intent of the legislature to promote growth in the technology sectors of our state's economy and to particularly focus support on the creation and commercialization of intellectual property in the technology, energy, and telecommunications industries.
     It is further the intent of the legislature to invest money obtained by the attorney general from civil wrongdoing by technology, energy, and telecommunications companies. The legislature finds that in cases where the injured party or parties cannot be specifically identified, money received from these companies may be beneficially directed to research in technology, energy, and telecommunications that will improve the state's economy and the lives of its citizens.
     It is further the intent of the legislature to invest proceeds from settlement money received from tobacco businesses into biotechnology and health-related research to cure smoking-related illnesses.

NEW SECTION.  Sec. 2   The biomedical research and technology transfer account is created in the custody of the state treasurer. Beginning with money received in 2003 through 2007, an amount equal to ten percent of the annual receipts for the state of Washington under the master tobacco settlement agreement from the tobacco settlement account must be deposited into the account. Beginning in 2008, any amount in excess of one hundred million dollars received annually by the state of Washington under the master tobacco settlement agreement from the tobacco settlement account must be deposited into the account. Additionally, any court awards or court-approved or out-of-court settlements from actions taken by the attorney general against tobacco companies after the effective date of this act that are not specifically awarded for the benefit of identifiable parties to the legal action, or for court costs or attorneys' fees, or that are otherwise directed for deposit by statute, must be deposited into the account. Expenditures from the account may be used only for grants awarded by the research and technology transfer commission and for operation of the commission established under section 4 of this act. Only the executive director of the Washington technology center or the director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 3   The investing in innovation trust fund is created in the custody of the state treasurer.
     (1) All court awards or court-approved or out-of-court regulatory settlements from actions taken by the attorney general after January 1, 1998, in the areas of telecommunications, energy, and technology that are not specifically awarded for the benefit of identifiable parties to the legal action, or for court costs or attorneys' fees, or that are otherwise directed for deposit by statute, must be deposited into the trust fund.
     (2) The trust fund may receive gifts, grants, and awards from federal court actions.
     (3) Money in the trust fund shall be invested by the state investment board. The state investment board has the full power to invest, reinvest, manage, contract, sell, or exchange investment money in the investing in innovation trust fund. All investment and operating costs associated with the investment of money shall be paid pursuant to RCW 43.33A.160 and 43.84.160. With the exception of these expenses, the earnings from the investment of the money shall be retained by the trust fund. All investments made by the state investment board shall be made with the exercise of that degree of judgment and care pursuant to RCW 43.33A.140 and the investment policies established by the state investment board. As deemed appropriate by the state investment board, money in the trust fund may be commingled for investment with other funds subject to investment by the board.
     (4) The principal of the investing in innovation trust fund shall not be invaded. For purposes of this section, only the first ten million dollars deposited into the trust fund shall be considered the principal.
     (5) Other than as permitted by subsection (3) of this section, the investment earnings from the investment of money in the trust fund may be used only for grants awarded by the research and technology transfer commission and for operation of the commission established under section 4 of this act.
     (6) Only the executive director of the Washington technology center or the director's designee may authorize expenditures from the trust fund.

NEW SECTION.  Sec. 4   (1) The research and technology transfer commission is created.
     (2) The commission shall consist of the following members:
     (a) The board of directors of the Washington technology center;
     (b) One member from each of the two largest caucuses of the senate, appointed by the president of the senate from members who serve on the following standing committees or their successor committees: The economic development and telecommunications committee and the health and long-term care committee; and
     (c) One member from each of the two largest caucuses of the house of representatives, appointed by the speaker of the house of representatives from members who serve on the following standing committees or their successor committees: The technology, telecommunications and energy committee; the trade and economic development committee; and the health care committee.
     (3) The executive director of the Washington technology center shall act as the chair of the commission.

NEW SECTION.  Sec. 5   The purpose of the commission is to provide advice and oversight of the grant program, including the development of criteria for the award of contracts or grants to qualifying universities, institutions, or individuals. The commission will make decisions regarding distribution of these grant funds and will make grant awards.

NEW SECTION.  Sec. 6   (1) The commission shall periodically make strategic assessments of the types of state investments in biomedical research and biotechnology in this state that would likely create jobs and business opportunities and produce the most beneficial long-term improvements to the public health of the citizens of the state. One area of focus for the commission shall be the biomedical research and biotechnology proposals that address cancer, cardiovascular, and smoking-related illnesses.
     (2) The commission shall periodically make strategic assessments of the types of state investments at any research institution of higher education in Washington state in technology, telecommunications, and energy research that would likely create jobs and business opportunities and would make telecommunications technology and energy technology more universally available, reliable, or affordable.
     (3) The assessments shall be available to the public and shall be used by the commission to guide its decisions on awarding grants.

NEW SECTION.  Sec. 7   The commission shall establish a competitive process for the award of grants and when appropriate shall provide for peer review of proposals. Priority shall be given to proposals that leverage additional private and public funding resources. Up to ten percent of available funds from the biomedical research and technology transfer account may be used to support a commercial development fund to support commercialization opportunities for biomedical research in Washington state.

NEW SECTION.  Sec. 8   The grants program shall be reviewed periodically. The commission shall establish performance benchmarks against which the program will be evaluated. The commission shall report on program reviews to the following standing committees: The house of representatives committees on technology, telecommunications and energy, trade and economic development, and health care; and the senate committees on economic development and communications and health and long-term care.

NEW SECTION.  Sec. 9   Not more than one percent of the available funds may be used for administrative costs of the commission and the implementation of its duties.

Sec. 10   RCW 43.79A.040 and 2002 c 322 s 5, 2002 c 204 s 7, and 2002 c 61 s 6 are each reenacted and amended to read as follows:
     (1) Money in the treasurer's trust fund may be deposited, invested, and reinvested by the state treasurer in accordance with RCW 43.84.080 in the same manner and to the same extent as if the money were in the state treasury.
     (2) All income received from investment of the treasurer's trust fund shall be set aside in an account in the treasury trust fund to be known as the investment income account.
     (3) The investment income account may be utilized for the payment of purchased banking services on behalf of treasurer's trust funds including, but not limited to, depository, safekeeping, and disbursement functions for the state treasurer or affected state agencies. The investment income account is subject in all respects to chapter 43.88 RCW, but no appropriation is required for payments to financial institutions. Payments shall occur prior to distribution of earnings set forth in subsection (4) of this section.
     (4)(a) Monthly, the state treasurer shall distribute the earnings credited to the investment income account to the state general fund except under (b) and (c) of this subsection.
     (b) The following accounts and funds shall receive their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The Washington promise scholarship account, the college savings program account, the Washington advanced college tuition payment program account, the agricultural local fund, the American Indian scholarship endowment fund, the basic health plan self-insurance reserve account, the Washington state combined fund drive account, the Washington international exchange scholarship endowment fund, the developmental disabilities endowment trust fund, the energy account, the fair fund, the fruit and vegetable inspection account, the game farm alternative account, the grain inspection revolving fund, the juvenile accountability incentive account, the rural rehabilitation account, the stadium and exhibition center account, the youth athletic facility account, the self-insurance revolving fund, the sulfur dioxide abatement account, ((and)) the children's trust fund, the biomedical research and technology transfer account, and the investing in innovation trust fund. However, the earnings to be distributed shall first be reduced by the allocation to the state treasurer's service fund pursuant to RCW 43.08.190.
     (c) The following accounts and funds shall receive eighty percent of their proportionate share of earnings based upon each account's or fund's average daily balance for the period: The advanced right of way revolving fund, the advanced environmental mitigation revolving account, the city and county advance right-of-way revolving fund, the federal narcotics asset forfeitures account, the high occupancy vehicle account, the local rail service assistance account, and the miscellaneous transportation programs account.
     (5) In conformance with Article II, section 37 of the state Constitution, no trust accounts or funds shall be allocated earnings without the specific affirmative directive of this section.

NEW SECTION.  Sec. 11   A new section is added to chapter 28B.20 RCW to read as follows:
     The Washington technology center shall provide staff support for the research and technology transfer commission.

NEW SECTION.  Sec. 12   Sections 1 through 9 of this act constitute a new chapter in Title 70 RCW.