1. (a) A State research contract shall be awarded in an amount equal to the Federal Phase I SBIR award or $50,000, whichever is less, provided, however:

   1. (1) In the event that the foundation anticipates that the total amount of all contracts in any State fiscal year will exceed the amount appropriated to the foundation for this purpose, the foundation may determine the appropriate ratio of State dollars which shall be matched to Federal dollars and applied equally to every State research contract executed by the foundation with the following conditions:

      1. (i) the foundation shall reserve the right to revise the ratio at any time to ensure that the total amount of all contracts shall not exceed the amount appropriated to the foundation for this purpose, and to ensure that State research award contracts shall match, in amount, a qualified firm's Federal SBIR Phase I research award to the fullest extent possible. The foundation shall continually monitor announcements of new Federal SBIR Phase I awards and firm performance during Phase I projects to be adequately informed of changes in funding requirements and to make necessary ratio adjustments; and
      2. (ii) the foundation shall reserve the right to limit a qualified firm to one State research contract.

2. (b) The foundation shall not disburse any moneys unless and until the following have been submitted:

   1. (1) a copy of the firm's complete Federal SBIR Phase I final report, together with evidence from the Federal agency that it has been properly submitted;
   2. (2) a copy of the firm's complete Federal SBIR Phase II application, together with evidence from the Federal agency that it has been properly submitted;

   3. (3) a satisfactory State research plan describing the anticipated research to be performed under the State research contract, including:

      1. (i) the technical objectives to be met by the State-supported research;
      2. (ii) the research approach, or work plan, to achieve the technical objectives of the project;
      3. (iii) a proposed budget outlining the expenditures anticipated by the firm in performing the State-supported research. The firm's proposed budget for the State research contract must allocate the same amounts for overhead and general and administrative costs, and include the same wage rates in specific categories of expenditures when compared against the firm's Federal Phase I SBIR award, unless the firm can show other government approved rates currently in effect. Notwithstanding the foregoing, rates may not be in excess of $25 per hour for wages, 100 percent for overhead, and $400 per day for consultants. Fee and/or profit is not reimbursable by the foundation.

The foundation shall make State research contract awards to qualified firms in accordance with the following provisions: