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 Washington 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. Funds may also be used to prevent closure of or recruit a business or facility, or to fund workforce development, public infrastructure, and other assistance, when it is in the public interest and provided under a contractual arrangement ensuring that the state will receive appropriate consideration.

Funds may not be expended unless the timely procurement of funding from other state sources is not possible, and funding is accompanied by, 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, enhance the education of engineering students, and 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 non-state 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 duties. 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.