FINAL BILL REPORT

E2SSB 6518

C 174 L 14

Synopsis as Enacted

Brief Description: Abolishing innovate Washington and transferring its mission, powers, duties, functions, and property to Washington State University and the department of commerce.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senator Chase; by request of Washington State Department of Commerce).

Senate Committee on Trade & Economic Development

Senate Committee on Ways & Means

House Committee on Appropriations

Background: In 2011 the Legislature created Innovate Washington as the successor agency to the Washington Technology Center and the Spokane Intercollegiate Research and Technology Institute to serve as the primary state agency focused on growing Washington's innovation-based economy and to respond to the technology transfer needs of existing businesses. Innovate Washington was created to:

• facilitate research and technology transfer opportunities supportive of state industries;

• provide mechanisms for collaboration between technology-based industries and higher education institutions;

• help businesses secure research funds and develop and integrate technology into new products;

• offer technology transfer and commercialization training opportunities for students;

• serve as the lead entity for coordinating clean energy initiatives; and

• administer technology and innovation grant and loan programs.

Innovate Washington's governance structure includes a 15-member board consisting of seven private-sector executives appointed by the Governor, four legislators, the Governor or Governor's designee, the president or designees from the University of Washington and Washington State University (WSU), and the Director of the Department of Commerce (Commerce).

The Investing in Innovation Account was also created by the Legislature as a non-appropriated account in the custody of the State Treasurer. Only the Executive Director of Innovate Washington or the Executive Director's designee has the authority to make expenditures from the account.

Innovate Washington has a performance agreement with the Innovate Washington Foundation (Foundation) under which the Foundation delivers the services for which Innovate Washington is responsible. The Foundation is governed by a separate board of directors than the board governing Innovate Washington.

In 2013 the Legislature eliminated all funding to Innovate Washington in the state operating budget. Innovate Washington, however, still exists as a state agency under statutory law.

Summary: The Innovate Washington state agency and enabling statutes are abolished as of the effective date of the act. Real property of Innovate Washington is assigned and transferred to WSU on the effective date of the act. In operating the 665 North Riverpoint Boulevard building and the Spokane Technology Center building, WSU must offer rental space to entities that provided services to Innovate Washington, such as the Innovate Washington Foundation, only in the Spokane Technology Center building, and not in the 665 North Riverpoint Boulevard building, and only at a rate equal to or greater to that charged to WSU prior to the effective date of the act.

The Innovate Washington Program (Program) is created in Commerce. The Program will, in general, perform the activities formerly done by Innovate Washington until June 30, 2015. The authority over the Investing in Innovation Account is transferred from Innovate Washington the state agency to Commerce for purposes of the Program.

The Sustainable Aviation Biofuels Work Group is transferred to the WSU Office of Alternative Energy. The WSU Office of Alternative Energy is directed to convene a sustainable aviation biofuels workgroup.

Votes on Final Passage: