Enrolled Version - Final Version
House Bill 2777 History
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ENROLLED
H. B. 2777
(By Mr. Speaker, Mr. Kiss and Delegate Boggs)
[Passed
March 9, 2005
; in effect from passage.]
AN ACT
to amend and reenact §18B-13-1, §18B-13-2, §18B-13-3, §18B-
13-4 and §18B-13-5 of the Code of West Virginia, 1931, as
amended, relating to higher education and industry
partnerships; amending tax incentives for certain businesses
located in the geographic area of a High-Tech research zone,
park or technology center; defining qualified business;
defining qualified state institution of higher education;
designation of the particular geographic area comprising the
research zone, park or technology center; updating language to
be consistent with current higher education governance
structure; updating other language; and other technical
amendments.
Be it enacted by the Legislature of West Virginia:
That §18B-13-1, §18B-13-2, §18B-13-3, §18B-13-4 and §18B-13-5
of the Code of West Virginia, 1931, as amended, be amended and reenacted to read as follows:
ARTICLE 13. HIGHER EDUCATION -- INDUSTRY PARTNERSHIPS.
§18B-13-1. Legislative findings; intent; definition.
(a) Legislative findings -- The Legislature finds that a
pressing need exists for collaborative research and development
between institutions of higher education and industry. This need
also extends to assisting companies to develop and adapt to new
technology. A commitment by the state to support cooperative
partnerships between higher education and industry preserves
existing jobs and creates new jobs; promotes development of
business enterprises and helps them become competitive; and enables
West Virginia to achieve the goals of economic growth and full
employment by revitalizing and diversifying the economy. Focused
research and technical assistance efforts related to West Virginia
industry advances such development, improves technology transfer,
assists companies in becoming growth leaders and links basic
research and technological developments to economic advancement.
(b) Legislative intent -- It is the intent of the Legislature
to
adopt the following as state goals to be reached through applied
science and technology and partnership programs
:
(1) Moving West Virginia into the forefront of science and
technology;
(2) Attracting business, federal contracts and industry; and
(3) Creating jobs for the people of this state..
(c) Definition -- As used in this article, "Qualified
business" means a business registered to do business in this state
which is engaged in science and technology related "manufacturing"
(as defined in section three, article thirteen-s, chapter eleven of
this code) or science and technology related "research and
development" (as defined in section three, article thirteen-q, or
section three, article thirteen-r, chapter eleven of this code)
within a research zone, park or technology center.
§18B-13-2. Higher education-industry collaboration and technical
assistance.
Each governing board of a state institution of higher
education shall develop a plan to engage in collaborative projects
designed to assist business to adapt or develop new technology
under this article.
§18B-13-3. Powers and duties.
(a) The West Virginia Development Office, in consultation with
the Commission, is hereby authorized and directed to develop a
strategic comprehensive plan and grant program to attract new
science and high technology industries, to retain and expand
current state industries through technology and other processes and
to increase research grants, contracts, matching funds and
procurement arrangements from the federal government, private
industry and other agencies. The initial strategic comprehensive
plan and each annual plan update shall be developed and filed with the Governor and Legislature.
(b) The West Virginia Development Office, in consultation with
the Commission, shall review the work and projects undertaken by
the Center of Regional Progress, the Center for Economic Research,
the Institute for International Trade Development and the West
Virginia Foundation for Science and Technology.
§18B-13-4. High-Tech research zones, parks and technology centers;
tax incentives.
(a) For the purposes of this subsection, a "qualified state
institution of higher education" is a state institution of higher
education meeting the qualifications to be established by the West
Virginia Development Office. The West Virginia Development Office
shall work with the county commissions, municipalities and local
development authorities where qualified state institutions of
higher education are located and shall develop a plan and grant
program for the establishment and operation of qualifying High-Tech
research zones, parks and technology centers on or near the
campuses of qualified state institutions of higher education to
attract business and industry engaged in science and technology
related research and development. The plan and grant program shall
include qualifications that are to be met in order to receive
approval by the West Virginia Development Office as a research
zone, park or technology center or as a qualified business. Those
qualifications shall require a minimum partnership commitment from one or more qualified businesses in the private sector in the
construction, operation or location of the research zone, park or
technology center. The West Virginia Development Office shall
designate the particular geographic area comprising the research
zone, park or technology center.
The West Virginia Economic Development Authority is authorized
to enter into agreements with state institutions of higher
education, private developers or other interested businesses or
persons to acquire, finance, construct, operate, own, lease or
otherwise manage any research zone, park or technology center and
to collect rentals or other forms of payment for the operation of
research zones, parks or technology centers. The West Virginia
Economic Development Authority is authorized either singly or in
conjunction with any county commission, municipality or local
development authority, to issue special bonds for the purpose of
this section, including, but not limited to, special project
revenue bonds and special user bonds limited to the actual cost of
construction and start-up of any qualifying and approved research
zones, parks or technology centers, and improvements necessary
thereto, pursuant to article twelve-b, chapter eighteen of this
code.
(b) For taxable years beginning on and after the first day of
January, two thousand five, any qualified business approved by the
West Virginia Development Office on or after the first day of
January, two thousand four, and located in a geographic area
designated as a High-Tech research zone, park or technology center,
shall be considered to be:
(1) A business eligible for economic opportunity tax credit
entitlement pursuant to section nineteen, article thirteen-q,
chapter eleven of the code, and entitled to the twenty percent new
jobs percentage under section nine of that article, if it creates
at least three new jobs in a research zone, park or technology
center;
(2) An eligible taxpayer for purposes of the strategic
research and development credit provided under article thirteen-r,
chapter eleven of the code;
(3) An industrial taxpayer for purposes of the manufacturing
investment tax credit provided under article thirteen-s, chapter
eleven of the code if it is primarily engaged in manufacturing
related to research and development; and
(4) Entitled to priority for approval of refundable credit for
the small qualified research and development company credit under
section six, article thirteen-r, chapter eleven of the code ahead of eligible taxpayers that are not qualified businesses under
section one of this article: Provided, That the qualified business
otherwise meets the requirements for those credits.
(c) Notwithstanding any other provision herein to the
contrary, the amount of total credits and deferrals allowable under
this section, shall not exceed two and one-half million dollars in
any one fiscal year for all eligible businesses: Provided, That,
except for the credit allowed under subdivision (4), subsection
(b)of this section, the credits allowed by this section are
nonrefundable so that a taxpayer shall not claim a total credit
amount that reduces the taxpayer's tax liability to less than zero.
§18B-13-5. Use of state property and equipment; faculty.
(a) The governing boards are authorized to provide for the low
cost and economical use and sharing of state property and
equipment, including computers, research labs and other scientific
and necessary equipment to assist any qualified business within an
approved research park or zone or technology center. The
Commission shall approve a schedule of nominal or reduced-cost
reimbursements to the state for such use.
(b) The governing boards shall develop and provide for a
program of release time, sabbaticals or other forms of faculty
involvement or participation with any qualifying business.
(c) The Legislature finds that cooperation, communication and
coordination are integral components of higher education's involvement in economic development. In order to proceed in a
manner that is cost effective and time efficient, it is the duty of
the Commission to review and coordinate such aspects of the
programs administered by the governing boards. The review and
coordination may not operate to affect adversely sources of funding
or any statutory characterization of any program as an independent
entity. The Commission shall report annually to the Legislature
and the Governor. The report shall contain the following
information:
(1) The number of seminars and workshops conducted;
(2) The subject matter addressed in each seminar and workshop;
(3) The number of feasibility studies conducted and the
subject matter contained in each study;
(4) An accounting of the cost of all travel expenses,
seminars, workshops and feasibility studies; and
(5) The extent to which the authority provided for in
subsection (b) of this section has been exercised, stating
specifically the names of the institutions and faculty members
involved in the program.