SENATE BILL REPORT

2SHB 2023

BYHouse Committee on Trade & Economic Development (originally sponsored by Representatives G. Fisher, Cantwell, Schoon, Winsley, Ferguson and Tate)

Providing for technology development and commercialization.

House Committe on Trade & Economic Development

Rereferred House Committee on Appropriations

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):February 22, 1990; February 23, 1990

Majority Report:  Do pass as amended.

      Signed by Senators Lee, Chairman; McMullen, Matson, Murray, Smitherman, Warnke, Williams.

Senate Staff:Jack Brummel (786-7428)

                  February 27, 1990

AS REPORTED BY COMMITTEE ON ECONOMIC DEVELOPMENT & LABOR, FEBRUARY 23, 1990

BACKGROUND:

Billions of dollars are spent annually by the federal government, state governments, and private industry for research.  This research is usually fundamental or basic research paid for primarily by the federal government, or research and development for commercial products paid for primarily by private industry.

Major universities, especially those that award doctorates, do much of this scientific research. The results of much of this basic research that is funded by the federal government are not encumbered or restricted.  Therefore the universities or others can continue to develop this research into commercially feasible products or processes.  The commercialization of basic research into a marketable product or process is difficult due to:  (1) the problem of identifying research results with commercial potential; (2) the expense involved; (3) the length of time involved; and (4) the difficulty in identifying businesses to utilize the commercially feasible research results.

Washington State supports technology development indirectly through its support of education, primarily at the University of Washington and Washington State University.  Both universities have offices that attempt to transfer technology developed through basic research at the universities.

Washington State supports technology development and transfer directly by supporting the Washington Technology Center (WTC).  The WTC was created in 1983 to coordinate research done at the universities with private sector technology needs.  The WTC itself is administered by the University of Washington Board of Regents. The funding for the WTC is currently administered by the Department of Trade and Economic Development.

The Department of Trade and Economic Development may assist technology development and transfer indirectly through the department's business assistance programs.

Since the University of Washington and Washington State University are highly regarded research universities, issues with technology transfer appear to center more on commercializing the results of research rather than on a lack of quality research itself.

SUMMARY:

The Washington Technology Center's (WTC) current legislative mandate of supporting high technology education and research initiatives in the state, providing resources for research and development, and providing quality training for advanced under-graduate and graduate students is expanded.  The WTC's new responsibilities include:  (1) making unencumbered technology available to businesses in Washington State first; (2) providing technical assistance to businesses in this state that use technology developed by the WTC; (3) coordinating the involvement of schools of higher education and businesses in technology transfer; and (4) protecting unencumbered or unrestricted technology developed at the WTC for the benefit of the state.

The Washington Technology Center is to be administered by the Director of the Department of Trade and Economic Development.

The Department of Trade and Economic Development is to contract for evaluation of the current public structure or process for managing the state's science and technology interests, including the identification of short and long term opportunities and risks.  Included in this evaluation is a comprehensive program review of the WTC.

The evaluation is to be completed by December 1, 1990, and must include recommendations on how the state should coordinate public and private sector science and technology efforts generally, and the role of the WTC.

The Department of Trade and Economic Development must work with the WTC to better utilize the department's business assistance programs to help businesses use technology developed at the WTC.

Appropriation:    $100,000 to the Department of Trade and Economic Development

Revenue:    none

Fiscal Note:      requested February 2, 1990

SUMMARY OF PROPOSED SENATE AMENDMENTS:

The Washington Technology Center is directed to coordinate with higher education and businesses, rather than coordinate the involvement of higher education and businesses, in technology transfer.

The Department of Trade and Economic Development will contract for an evaluation of publicly supported programs in the state which conduct research and development, provide technology transfer and commercialization services, and provide industrial extension services.

A new section is added specifying that funds appropriated for the Washington Technology Center shall be an independent line item and shall not impact or affect the Department of Trade and Economic Development's basic budget.

The act is null and void if funds are not specifically authorized by the Legislature.

Senate Committee - Testified: PRO:  Representative Cantwell; Representative Vekich; AGAINST:  Jim Wells, Washington Technology Center; Ray Bowen, Gene Woodruff, University of Washington; William Rayburn, Washington State University