BILL REQ. #:  S-1401.1 

Read first time 02/05/09.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to establishing the Washington innovation grant authority; adding a new section to chapter 82.04 RCW; and adding a new chapter to Title 43 RCW.

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

NEW SECTION.  Sec. 1   The legislature finds that the state of Washington is recognized as a leader in the life sciences, in addressing global health issues, and in the commercialization of new technologies. The legislature further finds that the research funded by the life sciences discovery fund has the potential to lead to innovations that will improve health care outcomes, efficiencies in delivery, and cost-effectiveness as well as contributing to robust industry development and economic growth. It is the purpose of this chapter to establish the Washington innovation grant authority to act as a financial conduit to provide access to needed capital for those who have previously received life sciences discovery fund support or other technology development grants and are in need of additional funds to transfer their research and technology to the commercial marketplace.

NEW SECTION.  Sec. 2   (1) The Washington innovation grant authority is established as a public body corporate and politic, with perpetual corporate succession, constituting an instrumentality of the state of Washington exercising essential governmental functions. The authority is a public body within the meaning of RCW 39.53.010.
     (2) The authority consists of nine members as follows: One member from each caucus in the house of representatives appointed by the speaker of the house of representatives, one member from each caucus in the senate appointed by the president of the senate, and five public members. The public members must be residents of the state appointed by the governor on the basis of their interest or expertise in life sciences, technology transfer and commercialization, grant evaluation, venture funding, and business planning. The governor shall appoint one of the public members as chair of the authority and that member shall serve as chair of the authority at the pleasure of the governor. The authority may select from its membership such other officers as it deems appropriate.
     (3) The term of the persons appointed by the governor as public members of the authority, including the public member appointed as chair, is four years from the date of appointment, except that the term of two of the initial appointees is for two years from the date of appointment and the term of three of the initial appointees is for three years from the date of appointment. The governor shall designate the appointees who will serve the two-year and three-year terms.
     (4) In the event of a vacancy on the authority due to death, resignation, or removal of one of the public members, or upon the expiration of the term of one of the public members, the governor shall appoint a successor for the remainder of the unexpired term.
     (5) The members of the authority shall serve without compensation but are entitled to reimbursement, solely from the funds of the authority, for expenses incurred in the discharge of their duties under this chapter.

NEW SECTION.  Sec. 3   (1) The Washington innovation grant authority shall operate the Washington innovation grant program. The authority shall solicit, evaluate, and select grant proposals from successful recipients of life sciences discovery fund awards or other technology development grants. Grants will be awarded for: (a) Proof- of-concept funding for transforming research and development concepts into commercially viable products and services; (b) entrepreneurial opportunities for persons interested in transforming research into viable commercial ventures that create jobs in the state; and (c) other activities as the authority deems necessary to continue the advancement of previously funded efforts.
     (2) The authority shall adopt a policy that prescribes the requirements of the grant program and the requirements that a grant recipient must meet in order to receive grant moneys.
     (3) The authority is authorized to participate fully in federal and other governmental programs and to take such actions as are necessary and consistent with this chapter to secure to itself and the people of the state the benefits of those programs and to meet their requirements.
     (4) The authority shall coordinate its programs with those contributing to a common purpose found in federal or state agencies or institutions.
     (5) The authority may use any funds legally available to it for any purpose specifically authorized elsewhere in this chapter, and for otherwise improving the prospects for grant recipients to garner financing for commercialization activities.
     (6) The authority shall establish a Washington innovation grant authority account for the receipt of funds from any source. Disbursement of funds from the account must be authorized by the authority only for purposes set out in this chapter.
     (7) The authority shall adopt general operating procedures for the authority including, but not limited to: (a) Appropriate minimum reserve requirements to secure financing; (b) appropriate standards for securing financing; and (c) strict standards for providing financing to grant recipients that is consistent with any plan adopted by the authority.
     (8) The authority may:
     (a) Maintain an office or offices;
     (b) Sue and be sued in its own name, and plead and be impleaded;
     (c) Engage consultants, agents, attorneys, and advisers, contract with federal, state, and local governmental entities for services, and hire such employees, agents, and other personnel as the authority deems necessary, useful, or convenient to accomplish its purposes;
     (d) Make and execute all manner of contracts, agreements, and instruments and financing documents with public and private parties as the authority deems necessary, useful, or convenient to accomplish its purposes;
     (e) Open and maintain accounts in qualified public depositaries and otherwise provide for the investment of any funds not required for immediate disbursement, and provide for the selection of investments;
     (f) Appear in its own behalf before boards, commissions, departments, or agencies of federal, state, or local government;
     (g) Procure insurance in amounts and from insurers as the authority deems desirable, including, but not limited to, insurance against any loss or damage to its property or other assets, public liability insurance for injuries to persons or property, and directors and officers liability insurance;
     (h) Apply for and accept subventions, grants, loans, advances, and contributions from any source of money, property, labor, or other things of value, to be held, used, and applied as the authority deems necessary, useful, or convenient to accomplish its purposes;
     (i) Act as an agent, by agreement, for federal, state, or local governmental entities to carry out the programs authorized in this chapter;
     (j) Establish, revise, and collect fees and charges as the authority deems necessary, useful, or convenient to accomplish its purposes;
     (k) Make expenditures as are appropriate for paying the administrative costs and expenses of the authority in carrying out the provisions of this chapter;
     (l) Establish reserves and special funds, and controls on deposits to and disbursements from them, as the authority deems necessary, useful, or convenient to accomplish its purposes;
     (m) Give assistance to public bodies by providing information, guidelines, forms, and procedures for implementing their financing programs;
     (n) Prepare, publish, and distribute, with or without charge, studies, reports, bulletins, and other material as the authority deems necessary, useful, or convenient to accomplish its purposes;
     (o) Delegate any of its powers and duties if consistent with the purposes of this chapter;
     (p) Adopt rules concerning its exercise of the powers authorized by this chapter; and
     (q) Exercise any other power the authority deems necessary, useful, or convenient to accomplish its purposes and exercise the powers expressly granted in this chapter.

NEW SECTION.  Sec. 4   A new section is added to chapter 82.04 RCW to read as follows:
     (1) In computing the tax imposed under this chapter, a credit is allowed in an amount equal to the amount of contributions made to the Washington innovation grant authority account established in section 3(6) of this act.
     (2) The credit under this section must be earned, and claimed against taxes due under this chapter, for the tax reporting period in which the contribution was made by the person claiming credit under this section. The credit may not exceed the tax otherwise due under this chapter for the tax reporting period. Unused credit may be carried over and used in subsequent tax reporting periods. No refunds may be granted for credits under this section.

NEW SECTION.  Sec. 5   Sections 1 through 3 of this act constitute a new chapter in Title 43 RCW.