FINAL BILL REPORT

SHB 1866

C 24 L 13 E2

Synopsis as Enacted

Brief Description: Concerning the joint center for aerospace technology innovation.

Sponsors: House Committee on Appropriations (originally sponsored by Representatives Morris, Smith, Liias, Maxwell, Morrell, Habib, Ryu, Sells, Hansen and Hudgins; by request of Governor Inslee).

House Committee on Technology & Economic Development

House Committee on Appropriations

Senate Committee on Trade & Economic Development

Senate Committee on Ways & Means

Background:

The Economic Development Strategic Reserve Account.

The Legislature created the Economic Development Strategic Reserve Account (Account) in 2005, from which only the Governor, with the recommendation of the Director of Commerce and the Economic Development Commission, may authorize expenditures. The Account may contain a maximum of $15 million at any time, with any excess being transferred to the Education Construction Account. During the fiscal biennia ending 2011 and 2013, transfer of moneys from the account into the State General Fund is also authorized.

Funds must be used to support the Economic Development Commission staff and operational costs. Other authorized uses include preventing closure of a business or facility, recruitment of a business or facility, and funding workforce development, public infrastructure, and other assistance provided contractually with an assurance of job creation or retention.

Funds may not be expended unless the timely procurement of funding from other state sources is not possible, and funding is accompanied by private investment and will not supplant private investment. Any businesses assisted must produce significant economic benefits, including jobs or higher income, and may not require a continuing state subsidy.

The Joint Center for Aerospace Technology Innovation.

The Joint Center for Aerospace Technology Innovation (Center) was created in 2012 to pursue joint industry-university research that can be used in aerospace firms, to enhance the education of engineering students, and to work with the aerospace industry to identify research needs and opportunities to transfer off-the-shelf technologies. The Center operates under the joint authority of the University of Washington and Washington State University. The Center's Board of Directors (Board) is appointed by the Governor and represents a cross-section of the aerospace industry and higher education. The Board must:

• identify research areas to benefit the aerospace industry in Washington;

• identify entrepreneurial researchers and a plan for recruiting such researchers;

• assist firms in integrating existing technologies into their operations;

• align the Center's activities with those of Impact Washington and Innovate Washington;

• ensure that students enrolled in an aerospace engineering curriculum have direct experience with aerospace firms;

• assist researchers and firms in guarding intellectual property;

• promote collaboration between industry and faculty; and

• develop nonstate support for research.

By June 30, 2013, the Board must develop an operating plan that includes specifics on how the Center will accomplish its duties. The Board must provide a biennial report to the Legislature and the Governor. The Center may solicit funds from a variety of sources to carry out its obligations. The Joint Legislative Audit and Review Committee must conduct a formal sunset review that includes an evaluation of program effectiveness and is due July 1, 2015. The Center's authorizing statute is repealed, effective July 1, 2016.

Summary:

The Governor is authorized to expend funds from the Economic Development Strategic Reserve Account for the Joint Center for Aerospace Technology Innovation (Center).

Sunset review of the Center is extended from July 1, 2015 to July 1, 2020. The act creating the Center is repealed, effective July 1, 2021.

Votes on Final Passage:

Second Special Session