1 New Sections; Department of Business and Economic Affairs; New Hampshire Innovation Program. Amend RSA 12-O by inserting after section 21 the following new sections:

12-O:21-a New Hampshire Innovation Program Established.

I. There is hereby established in the department of business and economic affairs a New Hampshire innovation program. The purpose of the program shall be to provide early stage capital for research and development intensive start-up businesses and develop a stronger, more resilient innovation economy in New Hampshire. The program shall be administered by the commissioner of the department of business and economic affairs in conjunction with the New Hampshire Research and Industry Council and the New Hampshire Established Program to Stimulate Competitive Research (NH EPSCoR).

II. The program shall offer a menu of specific, targeted funding mechanisms for research and development intensive start-up businesses to:

(a) Provide funding to increase the number and competitiveness of proposals submitted by New Hampshire companies to the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

(b) Match grants for SBIR/STTR Phase 1 awardees so they can develop their business while advancing their technology, including hiring employees, securing office space, and hiring legal and business expertise.

(c) Establish a risk pool to leverage funds provided by the business finance authority for low interest bridge loans for SBIR/STTR Phase 2 awardees so they can accelerate their growth in New Hampshire.

(d) Increase support for the innovation research center, established at the university of New Hampshire pursuant to RSA 187-A:30, to increase the number of grants awarded and subsequent state return on investment from this program.

(e) Match support for federal grants that accelerate development and retention of talent, workforce, and acquisition of critical research and development infrastructure assets that lead to new research and development-based company formation.

III. The New Hampshire Research and Industry Council, with the support of NH EPSCoR, shall administer the innovation program's application and approval processes in consultation with the commissioner, manage the annual investment portfolio, and evaluate investment performance. An organization may apply for funding under this section pursuant to the procedures established by the council. The council shall assign preference to grant applications that:

(a) Increase New Hampshire's competitiveness through innovation.

(b) Attract talent to New Hampshire.

(c) Target existing industrial-cluster strength, potential growth, and research capacity.

(d) Target areas of strategic priority as determined by the council and the department of business and economic affairs.

(e) Qualify for available matching funds from federal, private, or other sources.

(f) Provide assurance that companies will remain in New Hampshire.

IV. Beginning July 1, 2022, and annually thereafter, the council shall conduct a survey of all organizations which receive grants under this section to evaluate the return on investment from the state's funding support. The council shall develop and distribute a survey instrument to all organizations that have received grant funding under this section. The survey shall, at a minimum, collect the following information for each organization that receives grant funds under this section:

(a) Number of grants obtained.

(b) Total funding from grants, loans, private capital and other investments.

(c) Amount of federal funds obtained.

(d) Number of employees.

(e) Number of jobs created as a result of funding received under this section.

(f) Number of disclosures, provisional and full patents filed.

V. The council shall collect the completed surveys and submit them to the commissioner of the department of business and economic affairs. Any organization which fails to timely submit a completed survey shall not be eligible to obtain additional funding under this section.

VI. Beginning July 1, 2023 and every 4 years thereafter, the council shall commission a comprehensive, independent review of the New Hampshire innovation program and the current state of the New Hampshire technology-based economy to guide changes in programs and investments to ensure a vibrant innovation economy.

VII. Administrative costs shall not exceed 8 percent of annual fund expenditures.

12-O:21-b New Hampshire Innovation Fund; Annual Appropriation.

I. There is hereby established the New Hampshire innovation fund, which shall be kept distinct and separate from all other funds. The fund shall be nonlapsing and continually appropriated to the commissioner of the department of business and economic affairs for the purpose of administering the New Hampshire innovation program established in RSA 12-O:21-a.

II. The sum of $5,000,000 is appropriated annually to the department of business and economic affairs for deposit in the New Hampshire innovation fund established in paragraph I for the purpose of administering the program and awarding grants for research and development pursuant to RSA 12-O:21-a. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

2 New Subparagraph; Dedicated Funds; New Hampshire Innovation Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (382) the following new subparagraph:

(383) Moneys deposited in the New Hampshire innovation fund, established in 12-O:21-b

3 Effective Date. This act shall take effect July 1, 2022.

1 New Sections; Department of Business and Economic Affairs; New Hampshire Innovation Program. Amend RSA 12-O by inserting after section 21 the following new sections:

12-O:21-a New Hampshire Innovation Program Established.

I. There is hereby established in the department of business and economic affairs a New Hampshire innovation program. The purpose of the program shall be to provide early stage capital for research and development intensive start-up businesses and develop a stronger, more resilient innovation economy in New Hampshire. The program shall be administered by the commissioner of the department of business and economic affairs in conjunction with the New Hampshire Research and Industry Council and the New Hampshire Established Program to Stimulate Competitive Research (NH EPSCoR).

II. The program shall offer a menu of specific, targeted funding mechanisms for research and development intensive start-up businesses to:

(a) Provide funding to increase the number and competitiveness of proposals submitted by New Hampshire companies to the federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

(b) Match grants for SBIR/STTR Phase 1 awardees so they can develop their business while advancing their technology, including hiring employees, securing office space, and hiring legal and business expertise.

(c) Establish a risk pool to leverage funds provided by the business finance authority for low interest bridge loans for SBIR/STTR Phase 2 awardees so they can accelerate their growth in New Hampshire.

(d) Increase support for the innovation research center, established at the university of New Hampshire pursuant to RSA 187-A:30, to increase the number of grants awarded and subsequent state return on investment from this program.

(e) Match support for federal grants that accelerate development and retention of talent, workforce, and acquisition of critical research and development infrastructure assets that lead to new research and development-based company formation.

III. The New Hampshire Research and Industry Council, with the support of NH EPSCoR, shall administer the innovation program's application and approval processes in consultation with the commissioner, manage the annual investment portfolio, and evaluate investment performance. An organization may apply for funding under this section pursuant to the procedures established by the council. The council shall assign preference to grant applications that:

(a) Increase New Hampshire's competitiveness through innovation.

(b) Attract talent to New Hampshire.

(c) Target existing industrial-cluster strength, potential growth, and research capacity.

(d) Target areas of strategic priority as determined by the council and the department of business and economic affairs.

(e) Qualify for available matching funds from federal, private, or other sources.

(f) Provide assurance that companies will remain in New Hampshire.

IV. Beginning July 1, 2022, and annually thereafter, the council shall conduct a survey of all organizations which receive grants under this section to evaluate the return on investment from the state's funding support. The council shall develop and distribute a survey instrument to all organizations that have received grant funding under this section. The survey shall, at a minimum, collect the following information for each organization that receives grant funds under this section:

(a) Number of grants obtained.

(b) Total funding from grants, loans, private capital and other investments.

(c) Amount of federal funds obtained.

(d) Number of employees.

(e) Number of jobs created as a result of funding received under this section.

(f) Number of disclosures, provisional and full patents filed.

V. The council shall collect the completed surveys and submit them to the commissioner of the department of business and economic affairs. Any organization which fails to timely submit a completed survey shall not be eligible to obtain additional funding under this section.

VI. Beginning July 1, 2023 and every 4 years thereafter, the council shall commission a comprehensive, independent review of the New Hampshire innovation program and the current state of the New Hampshire technology-based economy to guide changes in programs and investments to ensure a vibrant innovation economy.

VII. Administrative costs shall not exceed 8 percent of annual fund expenditures.

12-O:21-b New Hampshire Innovation Fund; Annual Appropriation.

I. There is hereby established the New Hampshire innovation fund, which shall be kept distinct and separate from all other funds. The fund shall be nonlapsing and continually appropriated to the commissioner of the department of business and economic affairs for the purpose of administering the New Hampshire innovation program established in RSA 12-O:21-a.

II. The sum of $5,000,000 is appropriated annually to the department of business and economic affairs for deposit in the New Hampshire innovation fund established in paragraph I for the purpose of administering the program and awarding grants for research and development pursuant to RSA 12-O:21-a. The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

2 New Subparagraph; Dedicated Funds; New Hampshire Innovation Fund. Amend RSA 6:12, I(b) by inserting after subparagraph (382) the following new subparagraph:

(383) Moneys deposited in the New Hampshire innovation fund, established in 12-O:21-b

3 Effective Date. This act shall take effect July 1, 2022.