2015 -- H 6121

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

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A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE INNOVATE RHODE

ISLAND SMALL BUSINESS PROGRAM

     Introduced By: Representatives Blazejewski, and Jacquard

     Date Introduced: April 29, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 42-64.16-2 of the General Laws in Chapter 42-64.16 entitled "The

Innovate Rhode Island Small Business Program" is hereby amended to read as follows:

     42-64.16-2. Establishment of matching funds program. -- (a) There is established the

Rhode Island SBIR/STTR Matching Funds Program to be administered by STAC. In order to

foster job creation and economic development in the state, STAC may provide grants to eligible

businesses to match funds received by a business as a SBIR or STTR Phase I or II award, loans to

eligible businesses to match funds received by a business as a SBIR or STTR Phase II award, and

to encourage businesses to apply for further Phase II and Phase III SBIR or STTR awards,

respectively and commercialize their technology and research.

      (b) Eligibility. - In order to be eligible for a grant under this section, a business must

satisfy all of the following conditions:

      (1) The business must be a for-profit, Rhode Island-based business with fifty (50) or

fewer employees. For the purposes of this section, Rhode Island-based business is one that has its

principal place of business and at least fifty-one percent (51%) of its employees residing in this

state.

      (2) The business must have received an SBIR/STTR Phase I award from a participating

federal agency in response to a specific federal solicitation. To receive the full Phase I matching

grant, the business must also have submitted a final Phase I report, demonstrated that the

sponsoring agency has interest in the Phase II proposal, and submitted a Phase II proposal to the

agency. To receive the full Phase II matching loan grant, the business must also have submitted a

final Phase II report, demonstrated that the sponsoring agency has interest in the Phase III

proposal, and submitted a Phase III proposal to the agency.

      (3) The business must satisfy all federal SBIR/STTR requirements.

      (4) The business shall not receive concurrent funding support from other sources that

duplicates the purpose of this section.

      (5) For a Phase I and II matching grant, the business must certify that at least fifty-one

percent (51%) of the research described in the federal SBIR/STTR Phase I, II and any further

SBIR/STTR proposal proposals and commercialization will be conducted in this state and that the

business will remain a Rhode Island-based business for the duration of the SBIR/STTR Phase I, II

any further SBIR/STTR project projects and commercialization. For a Phase II matching loan, the

business must certify that at least fifty- one percent (51%) of the research described in the federal

SBIR/STTR Phase III proposal will be conducted in this state and that the business will remain a

Rhode Island-based business for the duration of the SBIR/STTR Phase III project.

      (6) For a Phase I and II matching grant, the business must demonstrate its ability to

conduct research in its SBIR/STTR Phase II proposal. For a Phase II matching loan, the business

must demonstrate its ability to conduct research in its SBIR/STTR Phase III proposal.

      (c) Phase I and II Matching Grant. - STAC may award grants to match the funds

received by a business through a SBIR/STTR Phase I or II proposal up to a maximum of one

hundred thousand dollars ($100,000) one hundred fifty thousand dollars ($150,000). Seventy-five

percent (75%) of the total grant shall be remitted to the business upon receipt of the SBIR/STTR

Phase I or II award and application for funds under this section. Twenty-five percent (25%) of the

total grant shall be remitted to the business upon submission by the business of the Phase II

application to the funding agency and acceptance of the Phase I or II report by the funding

agency. A business may receive only one grant under this section per year. A business may

receive only one grant under this section with respect to each federal proposal submission. Over

its lifetime, a business may receive a maximum of six (6) awards under this section.

      (d) Phase II Matching Loan. - STAC may award loans to match the funds received by a

business through a SBIR/STTR Phase II proposal up to a maximum of three hundred thousand

dollars ($300,000) that must be secured by sufficient assets of the business. Seventy-five percent

(75%) of the total loan shall be remitted to the business upon receipt of the SBIR/STTR Phase II

award and application for funds under this section. Twenty-five percent (25%) of the total loan

shall be remitted to the business upon submission by the business of the Phase III application to

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the funding agency and acceptance of the Phase I report by the funding agency. A business may

receive only one loan under this section per year. A business may receive only one loan under this

section with respect to each federal proposal submission. Over its lifetime, a business may receive

a maximum of six (6) loans under this section.

      (e)(d) Application. - A business shall apply, under oath, to STAC for a grant or loan

under this section on a form prescribed by STAC that includes at least all of the following:

      (1) The name of the business, the form of business organization under which it is

operated, and the names and addresses of the principals or management of the business.

      (2) For a Phase I or II matching grant, an acknowledgement of receipt of the Phase I or II

report and Phase II proposal by the relevant federal agency. For a Phase II matching loan, an

acknowledgement of receipt of the Phase II report and Phase III proposal by the relevant federal

agency.

      (3) Any other information necessary for STAC to evaluate the application.

     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO STATE AFFAIRS AND GOVERNMENT -- THE INNOVATE RHODE

ISLAND SMALL BUSINESS PROGRAM

***

     This act would eliminate the matching loan provisions relative to the small business

innovation research grant or small business technology transfer research grant program

administered by the Rhode Island science and technology advisory council.

     This act would take effect upon passage.

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