S-38                  _______________________________________________

                                                   SENATE BILL NO. 5482

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State of Washington                               51st Legislature                              1989 Regular Session

By Senator Talmadge

Read first time 1/25/89 and referred to Committee on   Economic Development & Labor.

AN ACT Relating to funding research and development of new technologies; adding new sections to chapter 43.31 RCW; creating a new section; and making an appropriation.

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

NEW SECTION. Sec. 1.     In furtherance of the findings stated in RCW 43.31.005, the legislature declares that it is in the best economic interest of the state of Washington to encourage research and development of new technologies.

NEW SECTION. Sec. 2.     There is hereby created a state research and development fund for the purpose of making grants to qualified individuals and public and private organizations for research and development projects that are consistent with the goals stated in sections 2 through 4 of this act.  As used in sections 2 through 4 of this act, "research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun.  As used in this section, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.

NEW SECTION. Sec. 3.     The governor, with the assistance of the state universities, shall administer a program for the awarding of grants under sections 2 through 4 of this act, and shall appoint a technical committee to judge proposals and award such grants pursuant to guidelines developed under section 4 of this act.

NEW SECTION. Sec. 4.     Guidelines for the awarding of grants shall be developed by the governor with the assistance of the state universities, and shall include a requirement that grantees shall agree by contract to pay to the state twenty percent of any profits or royalties earned from the commercial sale of any processes, technologies, or products developed, patented, or copyrighted primarily due to research supported by a grant awarded under section 3 of this act.

NEW SECTION. Sec. 5.     The sum of five million dollars, or so much thereof as may be necessary, is appropriated for the biennium ending June 30, 1991, from the general fund to the department of trade and economic development for the purposes of this act.

NEW SECTION. Sec. 6.     Sections 2 through 4 of this act are each added to chapter 43.31 RCW.