BILL REQ. #:  Z-0728.2 

Read first time 01/31/14.   Referred to Committee on Trade & Economic Development.

     AN ACT Relating to transferring technology-based economic development programs from innovate Washington to the department of commerce; amending RCW 43.333.030, 43.333.040, 43.333.050, 43.333.800, 28B.50.902, 28B.155.010, 42.30.110, 42.56.270, 70.210.020, 70.210.030, 70.210.050, and 70.210.060; adding new sections to chapter 43.330 RCW; adding a new section to chapter 28B.30 RCW; creating a new section; recodifying RCW 43.333.030, 43.333.040, 43.333.050, and 43.333.800; repealing RCW 43.333.010, 43.333.020, 43.333.901, and 41.06.0711; and providing an effective date.

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

NEW SECTION.  Sec. 1   The legislature intends to provide an orderly and efficient process to transition statewide innovation sector initiatives, technology transfer, and technology-based economic development programs from innovate Washington to the department of commerce and other appropriate public entities, and transfer the innovate Washington facilities to Washington State University.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.330 RCW to read as follows:
     (1) The innovate Washington program is created in the department to support business growth in the state's innovation and technology sectors and facilitate statewide technology transfer and commercialization activities for the purpose of increasing the state's economic vitality.
     (2) The innovate Washington program must:
     (a) Support businesses in securing federal and private funds to support product research and commercialization, developing and integrating technology in new or enhanced products and services, and launching those products and services in sustainable businesses in the state;
     (b) Establish public-private partnerships and programmatic activities that increase the competitiveness of state industries;
     (c) Work with the state energy office to improve the alignment of investments in clean energy technologies with state policies; and
     (d) Administer technology and innovation grant and loan programs.
     (3) Through at least June 30, 2015, the department must contract with a nonprofit entity with a principal office in Washington with experience in technology-based commercialization and technology transfer activities to carry out the responsibilities as specified in this act.
     (4)(a) The department must submit performance metrics for the innovate Washington program to the governor and the economic development committees of the legislature by January 1, 2015.
     (b) The department must submit a report to the governor and the economic development committees of the legislature by January 1st of each year, beginning January 1, 2016. The report must contain the performance outcomes of the program and a performance-based recommendation for continuing or changing the method of operating the program and delivering services beginning July 1st of the year the report is submitted.

Sec. 3   RCW 43.333.030 and 2011 1st sp.s. c 14 s 4 are each amended to read as follows:
     The investing in innovation account is created in the custody of the state treasurer to receive state and federal funds, grants, private gifts, or contributions to further the purpose of ((innovate Washington)) growing the technology and innovation-based sectors of the state and supporting the commercialization of intellectual property and the manufacturing of innovative products in the state. Expenditures from the account may be used only for the purposes of the investing in innovation programs established in chapter 70.210 RCW and any other purpose consistent with this chapter. Only the ((executive)) director of ((innovate Washington)) the department or the ((executive)) director's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

Sec. 4   RCW 43.333.040 and 2011 1st sp.s. c 14 s 3 are each amended to read as follows:
     (1) To increase participation by Washington state small business innovators in federal small business research programs, ((innovate Washington)) the department shall provide or contract for the provision of a small business innovation assistance program. The program must include a proposal review process and must train and assist Washington small business innovators to win awards from federal small business research programs. The program must collaborate with small business development centers, entrepreneur-in-residence programs, and other appropriate sources of technical assistance to ensure that small business innovators also receive the planning, counseling, and support services necessary to expand their businesses and protect their intellectual property.
     (2) In operating the program, ((innovate Washington)) the department must give priority to first-time applicants to the federal small business research programs, new businesses, and firms with fewer than ten employees, and may charge a fee for its services.
     (3) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Federal small business research programs" means the programs, operating pursuant to the small business innovation development act of 1982, P.L. 97-219, and the small business technology transfer act of 1992, P.L. 102-564, title II, that provide funds to small businesses to conduct research having commercial application.
     (b) "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 federal small business research programs.

Sec. 5   RCW 43.333.050 and 2011 1st sp.s. c 14 s 13 are each amended to read as follows:
     (1) ((Innovate Washington)) The department shall administer the investing in innovation program established in RCW 70.210.030.
     (2) Not more than one percent of the available funds from the investing in innovation account may be used for administrative costs of the program.

Sec. 6   RCW 43.333.800 and 2012 c 63 s 4 are each amended to read as follows:
     (1) ((Innovate Washington)) The department shall convene a sustainable aviation biofuels work group.
     (2) The purpose of the work group is to:
     (a) Further the development of sustainable aviation fuel as a productive industry in Washington, using as a foundation the regional assessment prepared by the collaborative known as the sustainable aviation fuels northwest;
     (b) Facilitate communication and coordination among aviation biofuels stakeholders;
     (c) Provide a forum for discussion and problem-solving regarding potential and current barriers related to technology development, production, distribution, supply chain development, and commercialization of aviation biofuels; and
     (d) Provide recommendations to the legislature on potential legislation that will facilitate the technology development, production, distribution, and commercialization of aviation biofuels.
     (3) ((Innovate Washington)) The director of the department and the director of the federal aviation administration center of excellence for alternative jet fuels and the environment led by Washington State University, in consultation with the legislative members, shall designate work group members that represent sectors involved in sustainable aviation biofuels research, development, production, and utilization. The work group shall include but not be limited to representatives from the following:
     (a) The Washington state senate;
     (b) The Washington state house of representatives;
     (c) An agriculture advocacy organization;
     (d) An airline operator;
     (e) An airplane manufacturer;
     (f) An airport operator located in western Washington and an airport operator located in eastern Washington;
     (g) Biofuels feedstock producers;
     (h) Two biofuels producers;
     (i) The department of agriculture;
     (j) The department of commerce;
     (k) The department of natural resources;
     (l) A sustainable energy advocacy organization;
     (m) The United States department of defense;
     (n) The University of Washington;
     (o) Washington State University; and
     (p) The Pacific Northwest national laboratory((; and
     (q) A member of the board of directors of innovate Washington)).
     (4) The work group shall choose its chair from among its membership.
     (5) The work group may not meet more than twice a year.
     (6) The work group shall provide an annual update of its findings and recommendations to the governor and the appropriate committees of the legislature by December 1st of each year ((through 2014)).
     (((7) This section expires June 30, 2015.))

Sec. 7   RCW 28B.50.902 and 2011 1st sp.s. c 14 s 6 are each amended to read as follows:
     (1) The college board, in consultation with business, industry, labor, the workforce training and education coordinating board, the department of commerce, the employment security department, and community and technical colleges, shall designate centers of excellence and allocate funds to existing and new centers of excellence based on a competitive basis.
     (2) Eligible applicants for the program established under this section include community and technical colleges. Priority shall be given to applicants that have an established education and training program serving the targeted industry and that have in their home district or region an industry cluster with the same targeted industry at its core.
     (3) It is the role of centers of excellence to employ strategies to:
     (a) Create educational efficiencies;
     (b) Build a diverse, competitive workforce for strategic industries;
     (c) Maintain an institutional reputation for innovation and responsiveness;
     (d) Develop innovative curriculum and means of delivering education and training;
     (e) Act as brokers of information and resources related to community and technical college education and training and assistance available for firms in a targeted industry((, including working with innovate Washington to develop methods to identify businesses within a targeted industry that could benefit from the services offered by innovate Washington under chapter 43.333 RCW)); and
     (f) Serve as partners with workforce development councils, associate development organizations, and other workforce and economic development organizations.
     (4) Examples of strategies under subsection (3) of this section include but are not limited to: Sharing curriculum and other instructional resources, to ensure cost savings to the system; delivering collaborative certificate and degree programs; and holding statewide summits, seminars, conferences, and workshops on industry trends and best practices in community and technical college education and training.

Sec. 8   RCW 28B.155.010 and 2012 c 242 s 1 are each amended to read as follows:
     (1) The joint center for aerospace technology innovation is created to:
     (a) Pursue joint industry-university research in computing, manufacturing efficiency, materials/structures innovation, and other new technologies that can be used in aerospace firms;
     (b) Enhance the education of students in the engineering departments of the University of Washington, Washington State University, and other participating institutions through industry-focused research; and
     (c) Work directly with existing small, medium-sized, and large aerospace firms and aerospace industry associations to identify research needs and opportunities to transfer off-the-shelf technologies that would benefit such firms.
     (2) The center shall be operated and administered as a multi-institutional education and research center, conducting research and development programs in various locations within Washington under the joint authority of the University of Washington and Washington State University. The initial administrative offices of the center shall be west of the crest of the Cascade mountains. In order to meet aerospace industry needs, the facilities and resources of the center must be made available to all four-year institutions of higher education as defined in RCW 28B.10.016. Resources include, but are not limited to, internships, on-the-job training, and research opportunities for undergraduate and graduate students and faculty.
     (3) The powers of the center are vested in and shall be exercised by a board of directors. The board shall consist of nine members appointed by the governor. The governor shall appoint a nonvoting chair. Of the eight voting members, one member shall represent small aerospace firms, one member shall represent medium-sized firms, one member shall represent large aerospace firms, one member shall represent labor, two members shall represent aerospace industry associations, and two members shall represent higher education. The terms of the initial members shall be staggered.
     (4) The board shall hire an executive director. The executive director shall hire such staff as the board deems necessary to operate the center. Staff support may be provided from among the cooperating institutions through cooperative agreements to the extent funds are available. The executive director may enter into cooperative agreements for programs and research with public and private organizations including state and nonstate agencies consistent with policies of the participating institutions.
     (5) The board must:
     (a) Work with aerospace industry associations and aerospace firms of all sizes to identify the research areas that will benefit the intermediate and long-term economic vitality of the Washington aerospace industry;
     (b) Identify entrepreneurial researchers to join or lead research teams in the research areas specified in (a) of this subsection and the steps the University of Washington and Washington State University will take to recruit such researchers;
     (c) Assist firms to integrate existing technologies into their operations and align the activities of the center with those of impact Washington and ((innovate Washington)) the department of commerce to enhance services available to aerospace firms;
     (d) Develop internships, on-the-job training, research, and other opportunities and ensure that all undergraduate and graduate students enrolled in an aerospace engineering curriculum have direct experience with aerospace firms;
     (e) Assist researchers and firms in safeguarding intellectual property while advancing industry innovation;
     (f) Develop and strengthen university-industry relationships through promotion of faculty collaboration with industry, and sponsor, in collaboration with ((innovate Washington)) the department of commerce, at least one annual symposium focusing on aerospace research in the state of Washington;
     (g) Encourage a full range of projects from small research projects that meet the specific needs of a smaller company to large scale, multipartner projects;
     (h) Develop nonstate support of the center's research activities through leveraging dollars from federal and private for-profit and nonprofit sources;
     (i) Leverage its financial impact through joint support arrangements on a project-by-project basis as appropriate;
     (j) Establish mechanisms for soliciting and evaluating proposals and for making awards and reporting on technological progress, financial leverage, and other measures of impact;
     (k) By June 30, 2013, develop an operating plan that includes the specific processes, methods, or mechanisms the center will use to accomplish each of its duties as set out in this subsection; and
     (l) Report biennially to the legislature and the governor about the impact of the center's work on the state's economy and the aerospace sector, with projections of future impact, providing indicators of its impact, and outlining ideas for enhancing benefits to the state. The report must be coordinated with the governor's office, the Washington economic development commission, and the department of commerce((, and innovate Washington)).

Sec. 9   RCW 42.30.110 and 2011 1st sp.s. c 14 s 14 are each amended to read as follows:
     (1) Nothing contained in this chapter may be construed to prevent a governing body from holding an executive session during a regular or special meeting:
     (a) To consider matters affecting national security;
     (b) To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price;
     (c) To consider the minimum price at which real estate will be offered for sale or lease when public knowledge regarding such consideration would cause a likelihood of decreased price. However, final action selling or leasing public property shall be taken in a meeting open to the public;
     (d) To review negotiations on the performance of publicly bid contracts when public knowledge regarding such consideration would cause a likelihood of increased costs;
     (e) To consider, in the case of an export trading company, financial and commercial information supplied by private persons to the export trading company;
     (f) To receive and evaluate complaints or charges brought against a public officer or employee. However, upon the request of such officer or employee, a public hearing or a meeting open to the public shall be conducted upon such complaint or charge;
     (g) To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW 42.30.140(4), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public;
     (h) To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public;
     (i) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency.
     This subsection (1)(i) does not permit a governing body to hold an executive session solely because an attorney representing the agency is present. For purposes of this subsection (1)(i), "potential litigation" means matters protected by RPC 1.6 or RCW 5.60.060(2)(a) concerning:
     (i) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party;
     (ii) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or
     (iii) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency;
     (j) To consider, in the case of the state library commission or its advisory bodies, western library network prices, products, equipment, and services, when such discussion would be likely to adversely affect the network's ability to conduct business in a competitive economic climate. However, final action on these matters shall be taken in a meeting open to the public;
     (k) To consider, in the case of the state investment board, financial and commercial information when the information relates to the investment of public trust or retirement funds and when public knowledge regarding the discussion would result in loss to such funds or in private loss to the providers of this information;
     (l) To consider proprietary or confidential nonpublished information related to the development, acquisition, or implementation of state purchased health care services as provided in RCW 41.05.026;
     (m) To consider in the case of the life sciences discovery fund authority, the substance of grant applications and grant awards when public knowledge regarding the discussion would reasonably be expected to result in private loss to the providers of this information;
     (n) To consider in the case of a health sciences and services authority, the substance of grant applications and grant awards when public knowledge regarding the discussion would reasonably be expected to result in private loss to the providers of this information;
     (o) To consider in the case of the department of commerce innovate Washington program, the substance of grant or loan applications and grant or loan awards if public knowledge regarding the discussion would reasonably be expected to result in private loss to the providers of this information.
     (2) Before convening in executive session, the presiding officer of a governing body shall publicly announce the purpose for excluding the public from the meeting place, and the time when the executive session will be concluded. The executive session may be extended to a stated later time by announcement of the presiding officer.

Sec. 10   RCW 42.56.270 and 2013 c 305 s 14 are each amended to read as follows:
     The following financial, commercial, and proprietary information is exempt from disclosure under this chapter:
     (1) Valuable formulae, designs, drawings, computer source code or object code, and research data obtained by any agency within five years of the request for disclosure when disclosure would produce private gain and public loss;
     (2) Financial information supplied by or on behalf of a person, firm, or corporation for the purpose of qualifying to submit a bid or proposal for (a) a ferry system construction or repair contract as required by RCW 47.60.680 through 47.60.750 or (b) highway construction or improvement as required by RCW 47.28.070;
     (3) Financial and commercial information and records supplied by private persons pertaining to export services provided under chapters 43.163 and 53.31 RCW, and by persons pertaining to export projects under RCW 43.23.035;
     (4) Financial and commercial information and records supplied by businesses or individuals during application for loans or program services provided by chapters 43.325, 43.163, 43.160, 43.330, and 43.168 RCW, or during application for economic development loans or program services provided by any local agency;
     (5) Financial information, business plans, examination reports, and any information produced or obtained in evaluating or examining a business and industrial development corporation organized or seeking certification under chapter 31.24 RCW;
     (6) Financial and commercial information supplied to the state investment board by any person when the information relates to the investment of public trust or retirement funds and when disclosure would result in loss to such funds or in private loss to the providers of this information;
     (7) Financial and valuable trade information under RCW 51.36.120;
     (8) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the clean Washington center in applications for, or delivery of, program services under chapter 70.95H RCW;
     (9) Financial and commercial information requested by the public stadium authority from any person or organization that leases or uses the stadium and exhibition center as defined in RCW 36.102.010;
     (10)(a) Financial information, including but not limited to account numbers and values, and other identification numbers supplied by or on behalf of a person, firm, corporation, limited liability company, partnership, or other entity related to an application for a horse racing license submitted pursuant to RCW 67.16.260(1)(b), liquor license, gambling license, or lottery retail license;
     (b) Internal control documents, independent auditors' reports and financial statements, and supporting documents: (i) Of house-banked social card game licensees required by the gambling commission pursuant to rules adopted under chapter 9.46 RCW; or (ii) submitted by tribes with an approved tribal/state compact for class III gaming;
     (11) Proprietary data, trade secrets, or other information that relates to: (a) A vendor's unique methods of conducting business; (b) data unique to the product or services of the vendor; or (c) determining prices or rates to be charged for services, submitted by any vendor to the department of social and health services for purposes of the development, acquisition, or implementation of state purchased health care as defined in RCW 41.05.011;
     (12)(a) When supplied to and in the records of the department of commerce:
     (i) Financial and proprietary information collected from any person and provided to the department of commerce pursuant to RCW 43.330.050(8); and
     (ii) Financial or proprietary information collected from any person and provided to the department of commerce or the office of the governor in connection with the siting, recruitment, expansion, retention, or relocation of that person's business and until a siting decision is made, identifying information of any person supplying information under this subsection and the locations being considered for siting, relocation, or expansion of a business;
     (b) When developed by the department of commerce based on information as described in (a)(i) of this subsection, any work product is not exempt from disclosure;
     (c) For the purposes of this subsection, "siting decision" means the decision to acquire or not to acquire a site;
     (d) If there is no written contact for a period of sixty days to the department of commerce from a person connected with siting, recruitment, expansion, retention, or relocation of that person's business, information described in (a)(ii) of this subsection will be available to the public under this chapter;
     (13) Financial and proprietary information submitted to or obtained by the department of ecology or the authority created under chapter 70.95N RCW to implement chapter 70.95N RCW;
     (14) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the life sciences discovery fund authority in applications for, or delivery of, grants under chapter 43.350 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information;
     (15) Financial and commercial information provided as evidence to the department of licensing as required by RCW 19.112.110 or 19.112.120, except information disclosed in aggregate form that does not permit the identification of information related to individual fuel licensees;
     (16) Any production records, mineral assessments, and trade secrets submitted by a permit holder, mine operator, or landowner to the department of natural resources under RCW 78.44.085;
     (17)(a) Farm plans developed by conservation districts, unless permission to release the farm plan is granted by the landowner or operator who requested the plan, or the farm plan is used for the application or issuance of a permit;
     (b) Farm plans developed under chapter 90.48 RCW and not under the federal clean water act, 33 U.S.C. Sec. 1251 et seq., are subject to RCW 42.56.610 and 90.64.190;
     (18) Financial, commercial, operations, and technical and research information and data submitted to or obtained by a health sciences and services authority in applications for, or delivery of, grants under RCW 35.104.010 through 35.104.060, to the extent that such information, if revealed, would reasonably be expected to result in private loss to providers of this information;
     (19) Information gathered under chapter 19.85 RCW or RCW 34.05.328 that can be identified to a particular business;
     (20) Financial and commercial information submitted to or obtained by the University of Washington, other than information the university is required to disclose under RCW 28B.20.150, when the information relates to investments in private funds, to the extent that such information, if revealed, would reasonably be expected to result in loss to the University of Washington consolidated endowment fund or to result in private loss to the providers of this information;
     (21) Financial, commercial, operations, and technical and research information and data submitted to or obtained by the department of commerce innovate Washington program in applications for, or delivery of, grants and loans under chapter 43.333 RCW, to the extent that such information, if revealed, would reasonably be expected to result in private loss to the providers of this information; and
     (22) Market share data submitted by a manufacturer under RCW 70.95N.190(4).

Sec. 11   RCW 70.210.020 and 2011 1st sp.s. c 14 s 8 are each amended to read as follows:
     The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Board" means the ((innovate Washington board of directors)) investing in innovation grant and loan oversight board of the innovate Washington program at the department.
     (((3) [(2)] "Innovate Washington" means the agency created in RCW 43.333.010.))
     (2) "Department" means the department of commerce.

Sec. 12   RCW 70.210.030 and 2011 1st sp.s. c 14 s 9 are each amended to read as follows:
     (1) The investing in innovation program is established.
     (2) The department innovate Washington program shall periodically make strategic assessments of the types of investments in research, technology, and industrial development in this state that would likely create new products, jobs, and business opportunities and produce the most beneficial long-term improvements to the lives and health of the citizens of the state. The assessments shall be available to the public and shall be used to guide decisions on awarding funds under this chapter.
     (3) The department must establish an investing in innovation grant and loan oversight board for the purposes of reviewing the grants and loans made from the investing in innovation program.

Sec. 13   RCW 70.210.050 and 2011 1st sp.s. c 14 s 11 are each amended to read as follows:
     (1) The ((board)) department may accept grant and loan proposals and establish a competitive process for the awarding of grants and loans.
     (2) The ((board)) department shall establish a peer review committee to include ((board members,)) scientists, engineers, and individuals with specific recognized expertise. The peer review committee shall provide to the ((board)) department an independent peer review of all proposals determined to be competitive for a loan or grant award that are submitted to the ((board)) department.
     (3) In the awarding of grants and loans, priority shall be given to proposals that leverage additional private and public funding resources.
     (4) ((Innovate Washington)) The department may not be a direct recipient of funding under this chapter.

Sec. 14   RCW 70.210.060 and 2011 1st sp.s. c 14 s 12 are each amended to read as follows:
     The ((board)) department shall establish performance benchmarks ((against which the program will be evaluated. The program shall be reviewed periodically by the board)) for the investing in innovation program, and shall periodically evaluate the program against those benchmarks. The ((board)) department shall report annually to the appropriate standing committees of the legislature on loans made and grants awarded and as appropriate on program reviews conducted by the ((board)) department.

NEW SECTION.  Sec. 15   A new section is added to chapter 28B.30 RCW to read as follows:
     (1) Innovate Washington shall work with the department of enterprise services to have all real property, including real estate, buildings, and facilities used by innovate Washington assigned to Washington State University, including the building at 665 North Riverpoint Boulevard in Spokane, Washington and any remaining tenant leases and building obligations.
     (2) All personal property associated with the building at 665 North Riverpoint Boulevard in Spokane, Washington, including cabinets, furniture, office equipment, motor vehicles, and other tangible property used by innovate Washington is transferred to Washington State University.
     (3) Innovate Washington shall work with the department of enterprise services to have the master lease for the Spokane technology center building at 120 North Pine Street in Spokane, Washington assigned to Washington State University.

NEW SECTION.  Sec. 16   A new section is added to chapter 43.330 RCW to read as follows:
     (1) Innovate Washington is hereby abolished and its powers, duties, and functions are transferred to the department of commerce. All references to innovate Washington shall be construed to mean the department of commerce.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of innovate Washington shall be delivered to the custody of the department of commerce. All cabinets, furniture, office equipment, and other tangible property employed by innovate Washington shall be made available to the department of commerce. All funds, credits, or other assets held by innovate Washington shall be assigned to the department of commerce.
     (b) Any appropriations made to innovate Washington shall, on the effective date of this section, be transferred and credited to the department of commerce.
     (c) If any question arises as to the transfer of any funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) Innovate Washington shall work with the department of enterprise services to have all innovate Washington leases, including administration of the state's master lease for the Spokane technology center (120 N. Pine Street, Spokane, Washington) assigned to Washington State University for the continued purpose of supporting job creation and business acceleration.
     (4) All pending business before innovate Washington shall be continued and acted upon by the department of commerce. All existing contracts, grants, loans, and other obligations shall remain in full force and shall either be performed by or for the benefit of the department of commerce consistent with the terms of the obligation.
     (5) The transfer of the powers, duties, and functions of innovate Washington may not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management shall certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these shall make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.
     (7) All unexpended funds, unused credits, real property, or other assets donated to innovate Washington expressly to support the creation, mission, and ongoing operation of innovate Washington must be used in accordance with the donor's intended purposes or returned or refunded to the entity originally providing or currently holding the successor interest in the donated unexpended funds, unused credits, real property, or other assets.

NEW SECTION.  Sec. 17   RCW 43.333.030, 43.333.040, 43.333.050, and 43.333.800 are each recodified as sections in chapter 43.330 RCW.

NEW SECTION.  Sec. 18   The following acts or parts of acts are each repealed:
     (1) RCW 43.333.010 (Innovate Washington -- Created -- Mission -- Transfer of administrative responsibilities for facilities located at the Washington technology center and Spokane intercollegiate research and technology institute -- Five-year business plan requirements) and 2011 1st sp.s. c 14 s 1;
     (2) RCW 43.333.020 (Board of directors -- Composition -- Meetings--Duties) and 2011 1st sp.s. c 14 s 2;
     (3) RCW 43.333.901 (Effective date -- 2011 1st sp.s. c 14) and 2011 1st sp.s. c 14 s 21; and
     (4) RCW 41.06.0711 (Innovate Washington -- Certain personnel exempted from chapter) and 2011 1st sp.s. c 14 s 5.

NEW SECTION.  Sec. 19   This act takes effect July 1, 2014.