HOUSE BILL REPORT

ESHB 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

Majority Report:  The second substitute bill be substituted therefor and the second substitute bill do pass.  (12)

      Signed by Representatives Cantwell, Chair; Wineberry, Vice Chair; Doty, Ranking Republican Member; Kirby, Kremen, Moyer, Raiter, Rasmussen, Rector, Schoon, Tate and Youngsman.

House Staff:Charlie Gavigan (786-7340)

Rereferred House Committee on Appropriations

Majority Report:  The second substitute bill by Committee on Trade & Economic Development be substituted therefor and the second substitute bill do pass.  (23)

      Signed by Representatives Locke, Chair; Grant, Vice Chair; Silver, Ranking Republican Member; Youngsman, Assistant Ranking Republican Member; Appelwick, Bowman, Braddock, Brekke, Dorn, Doty, Ebersole, Hine, Inslee, May, McLean, Nealey, Padden, Peery, Spanel, Sprenkle, Valle, Wang and Wineberry.

Minority Report:  Without recommendation.  (1)

      Signed by Representative Rust.

House Staff:      Susan Nakagawa (786-7145)

AS REPORTED BY COMMITTEE ON APPROPRIATIONS FEBRUARY 3, 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 is 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:

SECOND SUBSTITUTE:  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 is also: (1) to make unencumbered technology available to businesses in Washington state first; (2) to provide technical assistance to businesses in this state that use technology developed by the WTC; (3) to involve and to coordinate schools of higher education with businesses in technology development; and (4) to protect unencumbered or unrestricted technology developed at the WTC for the benefit of the state.

The Washington Technology Center is administered by the Department of Trade & Economic Development.

The Department of Trade & Economic Development is required to evaluate and study 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.  The department must contract with a national expert on public sector involvement in science and technology and the utilization of applied research to support economic development.  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 & 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.

SECOND SUBSTITUTE COMPARED TO ENGROSSED SUBSTITUTE:  The substitute gives administrative responsibility for the Washington Technology Center to the Department of Trade & Economic Development.  An evaluation/study of the state's science and technology efforts and needs, as well as the role of the WTC, is established.  One hundred thousand dollars is appropriated for this evaluation.

CHANGES PROPOSED BY COMMITTEE ON APPROPRIATIONS:  None.

Appropriation:    The Department of Trade and Economic Development is appropriated $100,000.

Fiscal Note:      Requested February 2, 1990.

House Committee ‑ Testified For:    (Trade & Economic Development)  Jim Wells, Washington Technology Center; and Roy Bowen, University of Washington.

(Appropriations)  No one.

House Committee - Testified Against:      (Trade & Economic Development)  Jim Wells, Washington Technology Center; and Roy Bowen, University of Washington.

(Appropriations)  No one.

House Committee - Testimony For:    (Trade & Economic Development)  The portion of the substitute bill that provides for an evaluation/study will be helpful to better utilize the significant research being done in Washington state, and to address the state's science and technology needs.  Addressing ways to improve technology transfer and commercialization is necessary.  The role the Washington Technology Center should play in the state's overall science and technology efforts should be analyzed.

(Appropriations)  None.

House Committee - Testimony Against:      (Trade & Economic Development)  The administration of the Washington Technology Center should not be changed from the University of Washington Board of Regents to the Department of Trade & Economic Development (as is done in the substitute bill).  If any changes are made, they should be done after the evaluation/study is completed.

(Appropriations)  None.