6163-S AMH TEH H4435.1

6163-S AMH TEH H4435.1

SSB 6163 - H COMM AMD

By Committee on Trade, Economic Development & Housing

Strike everything after the enacting clause and insert the following:

"Sec. 1. RCW 43.163.010 and 1989 c 279 s 2 are each amended to read as follows:

As used in this chapter, the following words and terms have the following meanings, unless the context requires otherwise:

(1) "Authority" means the Washington economic development finance authority created under RCW 43.163.020 or any board, body, commission, department or officer succeeding to the principal functions of the authority or to whom the powers conferred upon the authority shall be given by law;

(2) "Bonds" means any bonds, notes, debentures, interim certificates, conditional sales or lease financing agreements, lines of credit, forward purchase agreements, investment agreements, and other banking or financial arrangements, guaranties, or other obligations issued by or entered into by the authority. Such bonds may be issued on either a tax-exempt or taxable basis;

(3) "Borrower" means one or more public or private persons or entities acting as lessee, purchaser, mortgagor, or borrower who has obtained or is seeking to obtain financing either from the authority or from an eligible banking organization that has obtained or is seeking to obtain funds from the authority to finance a project. A borrower may include a party who transfers the right of use and occupancy to another party by lease, sublease or otherwise, or a party who is seeking or has obtained a financial guaranty from the authority;

(4) "Eligible banking organization" means any organization subject to regulation by the ((~~state supervisor of banking or the state supervisor of savings and loans~~)) director of financial institutions, any national bank, federal savings and loan association, and federal credit union located within this state;

(5) "Eligible export transaction" means any preexport or export activity by a person or entity located in the state of Washington involving a sale for export and product sale which, in the judgment of the authority: (a) Will create or maintain employment in the state of Washington, (b) will obtain a material percent of its value from manufactured goods or services made, processed or occurring in Washington, and (c) could not otherwise obtain financing on reasonable terms from an eligible banking organization;

(6) "Eligible farmer" means any person who is a resident of the state of Washington and whose specific acreage qualifying for receipts from the federal department of agriculture under its conservation reserve program is within the state of Washington;

(7) "Financing document" means an instrument executed by the authority and one or more persons or entities pertaining to the issuance of or security for bonds, or the application of the proceeds of bonds or other funds of, or payable to, the authority. A financing document may include, but need not be limited to, a lease, installment sale agreement, conditional sale agreement, mortgage, loan agreement, trust agreement or indenture, security agreement, letter or line of credit, reimbursement agreement, insurance policy, guaranty agreement, or currency or interest rate swap agreement. A financing document also may be an agreement between the authority and an eligible banking organization which has agreed to make a loan to a borrower;

(8) "Plan" means the general plan of economic development finance objectives developed and adopted by the authority, and updated from time to time, as required under RCW 43.163.090;

(9) "Small business" means a corporation, partnership, sole proprietorship, or individual operating a business for profit, with two hundred fifty employees or fewer, including employees employed in a subsidiary or affiliated corporation that otherwise meets the requirements of the federal small business innovation research program;

(10) "Small business innovation research program" means the program, enacted under the small business innovation development act of 1982, P.L. 97-219, that provided funds to small businesses to conduct innovative research having commercial application.

NEW SECTION. Sec. 2. A new section is added to chapter 43.163 RCW to read as follows:

(1) The authority is authorized to develop and conduct a program or programs to assist small businesses participating in the federal small business innovation research program in continuing innovative research that has potential commercial application. Assistance under this section shall be limited to those small businesses whose technology shows the greatest potential to lead to commercialization or fabrication within the state or to improved products or processes, and which demonstrates need.

(2) To receive assistance under this section, the small business must meet the following requirements:

(a) The small business's principal place of business shall be located in this state;

(b) The small business certifies that the research to be conducted shall be located in this state;

(d) The small business's final phase I report with respect thereto has been accepted by the federal agency involved;

(e) The small business's phase II research proposal has been properly submitted to the federal agency involved; and

(f) The small business has submitted copies of its final phase I report and phase II proposal to the federal agency.

(3) Assistance under this section shall be no greater than twenty-five thousand dollars.

(4) Consistent with federal small business innovation research program procedures, proprietary information submitted to the authority under this section shall not be subject to disclosure under the public disclosure act.

(5) The authority may condition assistance under this section upon receipt of a share of any license, patent, copyright, or royalty that results from the research or programs under this section."

EFFECT: The Washington Economic Development Finance Authority is authorized to provide assistance to small businesses waiting to hear on phase II funding under the federal Small Business Innovation Research Program.