RI Approves SBIR Matching Funds Program, Passes Transparency Bill for Economic Development

A three-year effort to implement an SBIR state matching funds program gained enough traction this legislative session to win support from Rhode Island lawmakers. The measure was spearheaded by a group of leaders from 24 life science companies who advocated for a statewide program to encourage small business R&D and commercialization. Lawmakers appropriated $500,000 for the effort in FY14. Adding a workforce development component to the measure, a new bioscience and engineering internship also will be established to enhance the state's talent pipeline.

The FY14 budget signed into law by Gov. Lincoln Chafee calls for the Rhode Island Science and Technology Advisory Council (STAC) to administer the new Innovate Rhode Island Small Business Incentive Program and internship program. Qualifying businesses can receive grant and loan funding for the costs associated with applying for Phase 0, Phase I and Phase II SBIR/STTR proposals. Companies can receive up to $3,000 for Phase 0; up to $100,000 for Phase I; and up to $300,000 for Phase II. Budget language notes that Phase I funding is for matching grants and funding for Phase II is in the form of a matching loan. The internship program, also to be administered by STAC, will reimburse bioscience and engineering companies for internship stipends of up to $12 per hour with a maximum payout of $3,000 per eligible intern. Participating businesses must offer interns a hands-on learning experience and at least one mentor directly overseeing the internship.

The need for more transparency and accountability in the state's quasi-public agencies, including in the Rhode Island Economic Development Corporation (RIEDC), was cited among lawmakers as a top priority for the session. A compromise measure (SB 718) that would re-brand RIEDC as the Rhode Island Commerce Corporation led by a governor-appointed Secretary of Commerce passed in the legislature during the final hours of the session; however, it is unclear whether Gov. Lincoln Chafee will sign the bill into law. The new agency would have stricter reporting requirements under the bill and a new chief operating officer to oversee day-to-day operations, reports The Providence Journal. Another measure, HB 6069, calling for a written comprehensive economic development policy and strategic plan, also was passed late in the session and awaits action by the governor.