BILL REQ. #:  S-0898.1 

Read first time 01/26/09.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to promoting economic development through promoting innovation and the commercialization of technologies; and amending RCW 28B.20.297, 28B.20.289, and 28B.20.293.

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

Sec. 1   RCW 28B.20.297 and 2005 c 357 s 1 are each amended to read as follows:
     (1) The legislature finds that small technology-based firms are the source of approximately one-half of the economy's major innovations. The legislature further finds that economic development in the state is increasingly driven by innovative firms and that it is in the interest of the state to:
     (a) Increase participation by Washington state small businesses in the federal small business innovation research program by assisting them in becoming small business innovation research program grant recipients((.
     The legislature further finds that many small business innovators lack the grant-writing skills necessary to prepare a successful small business innovation research program proposal, and the federal program that funded grant-writing assistance has stopped operations. Nearly fifty percent of small businesses trained under the federal program won grants compared to less than ten percent of those that did not receive training));
     (b) Increase the number of innovative firms that understand and engage in the technology commercialization process by providing information resources and technical assistance in accessing new technologies;
     (c) Increase funding for product development and production by providing information on available finance options and facilitating the matching of investors with innovative entrepreneurs; and
     (d) Coordinate these commercialization, assistance, and information functions through existing statewide organizations and reinforce collaboration among the network of the state's research, economic development, and technology assistance organizations for this purpose.
     (2) As used in this section:
     (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.
     (3) To the extent funds are appropriated for these purposes, the Washington technology center shall provide or contract for the provision of the following in conjunction with the state's public universities and colleges, private and federal research laboratories, and local and regional economic development and technology assistance organizations:
     (a) Establish a small business innovation research and assistance program, including a proposal review process, to train and assist Washington small businesses to win phase I federal small business innovation research program awards and federal technology innovation program awards. (((a))) In operating the program, the Washington technology center shall give priority to first-time small business innovation research program applicants, new businesses, and firms with fewer than ten employees((.));
     (b) Develop and disseminate a guide to the technology commercialization process in the research and academic institutions in the state;
     (c) Develop a recommendation on how to integrate and provide a common access mechanism to databases of technologies and inventions developed in the state by the state's research institutions;
     (d) Offer training on the provision of commercialization assistance to technical assistance providers at the state's small business development centers, economic development councils, chambers of commerce, industry cluster associations, the Washington manufacturing service, and private consulting firms;
     (e) Develop a funding resource guide, offer workshops on how to access financing for commercializing new technologies, provide opportunities for novice investors to learn about investing in technology-based companies, host events to connect entrepreneurs and investors, and maintain an interactive web site accessible by researchers, entrepreneurs, and investors; and
     (f) Report on the impact of commercialization activities at Washington research institutions on an annual basis.
     (4) The Washington technology center may charge a fee for ((this)) its services.
     (5) The investing in innovation account is created in the custody of the state treasurer. Funds may be directed to the account from federal, state, and private sources. Expenditures from the account may be used only for the purposes of this section, carrying out the investing in innovation grants program established under RCW 70.210.030, and other innovation and commercialization purposes consistent with the federal, state, or private, and other funding guidelines that apply to the funds deposited in the account. Only the executive director of the Washington technology center or the executive 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.

Sec. 2   RCW 28B.20.289 and 2003 c 403 s 11 are each amended to read as follows:
     (1) The technology center shall be administered by the board of directors of the technology center.
     (2) The board shall consist of the following members: Fourteen members from among individuals who are associated with or employed by technology-based industries and have broad business experience and an understanding of high technology; eight members from the state's universities with graduate science and engineering programs; the executive director of the Spokane Intercollegiate Research and Technology Institute or his or her designated representative; the provost of the University of Washington or his or her designated representative; the provost of the Washington State University or his or her designated representative; and the director of the department of community, trade, and economic development or his or her designated representative. The term of office for each board member, excluding the executive director of the Spokane Intercollegiate Research and Technology Institute, the provost of the University of Washington, the provost of the Washington State University, and the director of the department of community, trade, and economic development, shall be three years. The executive director of the technology center shall be an ex officio, nonvoting member of the board. The board shall meet at least quarterly. Board members shall be appointed by the governor based on the recommendations of the existing board of the technology center, and the research universities. The governor shall stagger the terms of the first group of appointees to ensure the long term continuity of the board.
     (3) The duties of the board include:
     (a) Developing the general operating policies for the technology center;
     (b) Appointing the executive director of the technology center;
     (c) Approving the annual operating budget of the technology center;
     (d) Establishing priorities for the selection and funding of research projects that guarantee the greatest potential return on the state's investment;
     (e) Approving and allocating funding for research projects conducted by the technology center, based on the recommendations of the advisory committees for each of the research centers;
     (f) In cooperation with the department of community, trade, and economic development, developing a biennial work plan and five-year strategic plan for the technology center that are consistent with the statewide technology development and commercialization goals;
     (g) Coordinating with the University of Washington, Washington State University, and other participating institutions of higher education in the development of training, research, and development programs to be conducted at the technology center that shall be targeted to meet industrial needs;
     (h) Assisting the department of community, trade, and economic development in the department's efforts to develop state science and technology public policies and coordinate publicly funded programs;
     (i) Performing the duties required under chapter 70.210 RCW relating to the investing in innovation grants program;
     (j) Reviewing annual progress reports on funded research projects that are prepared by the advisory committees for each of the research centers; and
     (k) Providing an annual report to the governor and the legislature detailing the activities and performance of the technology center((; and
     (l) Submitting annually to the department of community, trade, and economic development)) including an updated strategic plan and a statement of performance measured against the mission, roles, and contractual obligations of the technology center.
     (4) The Washington technology center shall have the authority to accept gifts, grants, donations, sponsorships, or contributions from any federal, state, or local government agency or program or any private source and expend the same for any activity consistent with its duties and purpose.

Sec. 3   RCW 28B.20.293 and 1995 c 399 s 27 are each amended to read as follows:
     The ((department of community, trade, and economic development shall contract with the)) University of Washington shall contract with the Washington technology center for the expenditure of state-appropriated funds for the operation of the ((Washington technology)) center. ((The department of community, trade, and economic development shall provide guidance to the technology center regarding expenditure of state-appropriated funds and the development of the center's strategic plan. The director of the department of community, trade, and economic development shall not withhold funds appropriated for the technology center if the technology center complies with the provisions of its contract with the department of community, trade, and economic development.)) The ((department)) University of Washington shall be responsible to the legislature for the contractual performance of the center.