AN ACT Relating to technology development and commercialization; amending RCW 28B.20.285; creating new sections; and making an appropriation.

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

NEW SECTION. Sec. 1. The legislature finds that the development and commercialization of new technology is a vital part of economic development. This state has excellent research facilities in its two state universities, several public and private colleges, and several private research facilities. The Washington technology center, using public and private funds, targets research toward proof of concepts developed from basic research that may have commercial potential.

For positive economic development to occur, the new technology developed in part through public investment must create or maintain jobs in this state through new products or enhancements to existing technology. The key to the success of the commercialization of new technology is creating or expanding businesses to utilize the technology developed. There is a need for improvement in the development and commercialization of new technology and for increased coordination between the various organizations involved.

It is the purpose of this act to provide for the study of what the state's role in the development and commercialization of new technology is and should be, how the public funds invested can be more effectively used, how the state can encourage coordination of the various organizations involved in technology development and commercialization, and how the state can evaluate the effectiveness of its programs. It is also the purpose of this act to improve the involvement of entrepreneurs and small and medium-sized business in the state's technology development efforts, including providing information and technical assistance to obtain resources and capital to develop products through the commercialization of research being done at the universities, colleges, and the Washington technology center.

Sec. 2. Section 11, chapter 72, Laws of 1983 1st ex. sess. and RCW 28B.20.285 are each amended to read as follows:

A Washington high-technology center is created at the University of Washington. The Washington high-technology center shall ((~~provide~~)): (1) Provide an interdisciplinary program to support major high-technology education and research initiatives within the state;

(2) Provide the resources necessary for research and development programs in high technology;

(3) Provide quality training for advanced undergraduate and graduate students throughout the state in high technology; ((~~and~~))

(4) Provide interdisciplinary approaches to instruction and research in high-technology fields;

(5) Provide that unencumbered technology be made available to new or existing businesses in this state first;

(6) Provide technical assistance to new or existing small businesses in this state using technology developed by the Washington technology center;

(7) Coordinate the involvement of higher education schools and businesses throughout this state; and

(8) Provide for the protection of technology developed at the Washington technology center that is owned by the Washington technology center for the benefit of this state.

The Washington high-technology center shall be administered by the board of regents with the advice of the high-technology coordinating board. The University of Washington shall make the facilities of the Washington high-technology center available to other institutions of higher education when specific program needs so require.

NEW SECTION. Sec. 3. (1) The technology development and commercialization commission is established. The commission shall be staffed by the department of trade and economic development. The commission shall be as follows:

(a) Two members of the Washington technology center board of directors, appointed by the chair of that board;

(b) One member of the Washington research foundation, appointed by the chair of that board;

(c) One member each from the University of Washington and Washington State University offices of technology transfer, appointed by the president of each university;

(d) One dean from each university representing the research departments, appointed by the president of each university;

(e) One representative of public state colleges and one representative of private state colleges, appointed by the governor;

(f) Two representatives of private research facilities, appointed by the governor;

(g) Four representatives of businesses that are leaders in the development or utilization of new technology, appointed by the governor, one from a business with two thousand five hundred employees, one from a business with between five hundred and one thousand employees, and two from businesses with less than one hundred employees;

(h) One member from each caucus of the house of representatives, appointed by the speaker of the house of representatives, and one member from each caucus of the senate, appointed by the president of the senate;

(i) Two representatives of local governments, appointed by the governor, one representing a rural area and the other representing an urban area;

(j) One member representing the Washington state economic development board, appointed by the chair of that board;

(k) One representative each from the department of trade and economic development and the department of community development; and

(l) One representative of the governor.

The representative of the governor shall chair the commission. The commission shall meet as soon as practicable for the purpose of organizing. The commission shall not be entitled to compensation, but shall be entitled to reimbursement of expenses under RCW 43.03.050 and 43.03.060.

(2) The technology development and commercialization commission shall:

(a) Study the efforts of this state and other states in this area and make recommendations to the legislature regarding:

(i) How the state can provide better coordination of public and private efforts in technology development and commercialization;

(ii) How the state can encourage and facilitate a greater number of entrepreneurs and small and medium-sized businesses having input and access to the Washington technology center, as well as access to commercially promising research being done at the state's universities and colleges; and

(iii) How the state can better assist businesses start-up and expand to develop commercially promising technology into products and processes that result in more jobs and capital in the state; and

(b) Make recommendations to the legislature based on the results of the commission's study.

(3) The technology development and commercialization commission shall make a final report to the house of representatives trade and economic development committee and the senate economic development and labor committee in December 1992 regarding its recommendations. The commission shall make an interim report to these committees in December 1991.

(4) The technology development and commercialization commission shall expire on June 30, 1993.

NEW SECTION. Sec. 4. The department of trade and economic development, in conjunction with the Washington technology center, shall:

(1) Develop standards, measures, and other criteria for evaluating the Washington technology center's programs to ensure that the programs are effective, that the primary benefit of the Washington technology center's activities is jobs for the citizens of this state, and that these activities do not subsidize private businesses in this state; and

(2) Utilize the resources in other agencies, including computerized data, and the department's business assistance programs, distressed area programs, business start-up programs, and other programs to market the technology developed by the Washington technology center and to encourage new businesses, modernization, and product development from the technology developed at the Washington technology center.

NEW SECTION. Sec. 5. (1) The department of trade and economic development shall administer a pilot program to assist entrepreneurs and small and medium-sized businesses in participating in the activities of the Washington technology center. The department of trade and economic development shall provide technical assistance to entrepreneurs and businesses to:

(a) Prepare and process applications or other documents necessary to meet requirements agreed to by the department and the Washington technology center for research or training provided through the Washington technology center under this pilot program;

(b) Protect the technology developed through the Washington technology center;

(2) The department and the Washington technology center shall make any necessary rules to carry out this pilot program. The department and the Washington technology center must both agree to accept the applicant in the pilot program. The entrepreneurs and businesses assisted under this program shall be reasonably capable of successfully completing the program and successfully operating the new or expanded business, as well as providing or maintaining a reasonable number of jobs consistent with the amount of the technical assistance provided. The department or the Washington technology center shall not make a gift of public funds of the state, but may provide technical assistance to individuals or businesses as part of this program.

(3) No new applications shall be taken after December 1, 1991. The department shall report on the results of this pilot program to the house of representatives trade and economic development committee and the senate economic development and labor committee in February 1992.

(4) This section shall expire on June 30, 1992.

NEW SECTION. Sec. 6. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 7. The sum of two hundred fifty thousand dollars, or as much thereof as may be necessary, is appropriated from the general fund to the department of trade and economic development for the biennium ending June 30, 1991, to carry out the purposes of this act.