Small business innovation research-matching funds.

2016
State of Wyoming
16LSO-0177
Introduced
1.2

HOUSE BILL

NO.
HB0061

Small business innovation research-matching funds.

Sponsored by:
Joint Minerals, Business & Economic Development Interim Committee

A BILL

for

AN ACT relating to economic development; creating the small business innovation research matching funds program; providing for administration of the program; providing eligibility requirements under the program; providing for repayment of funds awarded under the program as specified; creating the small business innovation research matching funds account; providing rulemaking authority; providing for an appropriation; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1
.

W.S. 9
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12
‑
1401 and 9
‑
12
‑
1402 are created to read:

ARTICLE 14
SMALL BUSINESS INNOVATION RESEARCH

9
‑
12
‑
1401
.

Small business innovation research matching funds program; eligibility; rulemaking authority
.

(a)

There is created the Wyoming small business innovation research matching funds program. The program shall match federal funds approved for Wyoming technology based companies by the University of Wyoming research office as provided herein. The program shall be administered by the Wyoming business council in consultation with the University of Wyoming research office.

(b)

To be eligible to receive funding under the program, an entity shall:

(i)

Be headquartered in Wyoming and organized under the laws of the state of Wyoming;

(ii)

Maintain a meaningful nexus to the state of Wyoming, including after commercialization of a product, concept, design or any other marketable asset developed with the assistance of funds from this program;

(iii)

Have received funding under the federal small business innovation research and small business technology transfer programs through the University of Wyoming research office;

(iv)

Propose a product, concept, design or any other marketable asset which has a probability of providing an economic return to the state of Wyoming through creation of jobs, expanded tax base and diversification of the state’s economy;

(v)

P
rovide a report to the Wyoming business council on or before July 1 of each year in the following manner:

(A)

Prior to commercialization, the entity shall report on the progress of the entity to commercialize a product, concept, design or any other marketable asset developed with the assistance of funds from this program;

(B)

If any entity commercializes a product, concept, design or any other marketable asset, and continues to market the product, concept or design or asset, the entity shall report for up to ten (10) years on:

(I)

The
number of jobs the entity has created;

(II)

A salary range per job;

(III)

The taxable assets of the entity; and

(IV)

All revenues from sales of the product, concept, design or any other marketable asset of the entity.

(vi)

Comply
with the requirements of rules and regulations developed pursuant to this section.

(c)

Matching funds under this section shall be awarded to the recipient as soon as practicable after approval of the matching fund application.
Matching funds shall be awarded to recipients as determined by the Wyoming business council in an amount not to exceed:

(i)

For a recipient of a phase I award, a match up to one hundred percent (100%) of the award, not to exceed one hundred thousand dollars ($100,000.00);

(ii)

For a recipient of a phase II award, a match up to twenty
‑
five percent (25%) of the award, not to exceed two hundred fifty thousand dollars ($250,000.00).

(d)

An
award recipient

or its successor
in interest
shall repay all matching funds awarded under this section if:

(i)

The
award recipient
commercializes a product, concept, design or any other marketable asset developed with the assistance of funds from this program; and

(ii)

The entity
or its successor
in interest

fails to maintain a significant nexus with the state of Wyoming within ten (10) years of commercializing a product, concept, design or any other marketable asset developed with the assistance of funds from this program and continues to market the product, concept, design or asset.

(e)

The Wyoming business council in consultation with the University of Wyoming research office shall promulgate rules necessary to carry out the provisions of this section and W.S. 9
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12
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1402. Rules and regulations under this section shall include but not be limited to:

(i)

Application procedures;

(ii)

The number and amount of matching funds available for award in any fiscal year;

(iii)

Timing of issuance of matching funds awarded;

(iv)

Eligibility
requirements under the matching fund program as specified in subsection (b) of this section;

(v)

Provide for repayment of matching funds as provided in subsection (d) of this section;

(vi)

Provide
for product, concept, design or asset review and requirements under the program consistent with this section.

(f)

Not later than October 15, 2018 and every October 15 thereafter, the Wyoming business council and the University of Wyoming research office shall report to the joint minerals, business and economic development interim committee concerning the program. The report shall include:

(i)

A yearly and total summary of the number and amounts of matching funds awarded under the program;

(ii)

A description of
every entity and
product, concept, design or any other marketable asset developed which was commercialized with the assistance of funds from this program within the prior five (5) years;

(iii)

The realized economic impact of the program on the state, including jobs
created,
salary range per job created and potential impact to the local community.

(g)

Matching funds repaid under subsection (d) of this section shall be deposited in the small business innovation research matching funds account created by W.S. 9
‑
12
‑
1402.

(h)

As used in this section, “c
ommercialization" means the creation by an entity of commercial processes, products, and services derived in whole or in part from research undertaken with matching funds awarded under this
section, which results in realized revenues to the entity of at least three (3) times the matching f
unds awarded under this section.

9
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12
‑
1402
.

Small business innovation research matching funds account.

There is created the Wyoming small business innovation research matching funds program account. Funds shall be credited to the account as provided by law. Funds in the account are continuously appropriated to the Wyoming business council to be used only for matching fund awards authorized to be made under W.S. 9
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12
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14
01.

Section 2
.

There is appropriated all unexpended, unobligated and unencumbered funds from the Wyoming business council science, technology and energy authority account as of the effective date of this act to the Wyoming small business innovation research matching funds program account.

Section 3
.

This act is effective July 1, 201
6
.

(END)

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HB0061