S T A T E O F N E W Y O R K
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251--A
Cal. No. 412
2009-2010 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 7, 2009
___________
Introduced by M. of A. MAGNARELLI, FIELDS, LUPARDO, MILLMAN, PHEFFER,
SCHIMMINGER, KOON, MARKEY, DESTITO, STIRPE, RAMOS, GORDON -- Multi-
Sponsored by -- M. of A. BRENNAN, BRODSKY, CLARK, ESPAILLAT, HOOPER,
McENENY, ROBINSON -- read once and referred to the Committee on
Economic Development, Job Creation, Commerce and Industry -- reported
from committee, advanced to a third reading, amended and ordered
reprinted, retaining its place on the order of third reading
AN ACT to amend the public authorities law, in relation to creating a
regional commercialization technology fund in the New York state foun-
dation for science, technology and innovation; and to amend the execu-
tive law, in relation to the research development plan
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 3150 of the public authorities law, as amended by
section 4 of part C of chapter 63 of the laws of 2005, is amended to
read as follows:
S 3150. Definitions. As used in this [section] TITLE:
1. "Foundation" shall mean the New York state foundation for science,
technology and innovation created by this title;
2. "Executive director" shall mean the executive director of the foun-
dation;
3. "Board" shall mean the New York state foundation for science, tech-
nology and innovation board;
4. "Regional partnerships" shall mean any association or group which
is: (a) comprised of local economic development organizations and a
center of excellence as defined by section three of part T of chapter
eighty-four of the laws of two thousand two, or in the absence of such
center in the region, at least one institution of higher education
involved in commercialization efforts similar to such centers of excel-
lence and may include a combination of private businesses, business
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD00514-06-9
A. 251--A 2
support organizations, commercial lending institutions, venture capital
companies, angel investor networks or foundations; (b) formed for the
creation and administration of regional partnership programs; and (c)
certified by the foundation as the regional partnership;
5. "Regional partnership coordinator" shall mean a nonprofit organiza-
tion chosen by a regional partnership and certified by the foundation to
administer the regional partnership programs;
6. "Partnership" shall mean regional partnerships; [and]
7. "Coordinator" shall mean regional partnership coordinator[.]; AND
8. "RESEARCH ENTITY" SHALL MEAN A NOT-FOR-PROFIT COLLEGE, UNIVERSITY,
MEDICAL CENTER, LABORATORY OR OTHER INSTITUTION THAT CONDUCTS AN INTEN-
SIVE, ONGOING PROGRAM OF STUDY DIRECTED TOWARD GREATER KNOWLEDGE OF A
SCIENTIFIC SUBJECT OR TOWARD APPLYING NEW SCIENTIFIC KNOWLEDGE TO MEET A
RECOGNIZED NEED.
S 2. The public authorities law is amended by adding a new section
3154-a to read as follows:
S 3154-A. REGIONAL TECHNOLOGY COMMERCIALIZATION FUND. THE REGIONAL
TECHNOLOGY COMMERCIALIZATION FUND IS HEREBY CREATED WITHIN THE FOUNDA-
TION ON SCIENCE, TECHNOLOGY AND INNOVATION.
1. THE MONIES IN THE FUND SHALL BE MADE AVAILABLE THROUGH A REQUEST
FOR PROPOSALS PROCESS TO ACADEMIC RESEARCH INSTITUTIONS, REGIONAL TECH-
NOLOGY DEVELOPMENT CORPORATIONS, CENTERS FOR ADVANCED TECHNOLOGY, OR
OTHER TECHNOLOGY-BASED ECONOMIC DEVELOPMENT ORGANIZATIONS FOR THE
PURPOSES OF PROVIDING:
(A) GRANTS TO RESEARCH ENTITIES LOCATED IN NEW YORK STATE TO DEVELOP
COMMERCIALLY PROMISING RESEARCH DISCOVERIES BEYOND THE CONCEPTUAL STAGE
IN ORDER TO FURTHER THE CHANCE OF COMMERCIALIZATION AND INCREASE MARKET
VALUE;
(B) GRANTS TO START-UP COMPANIES FORMED BY ENTREPRENEURS TO COMMER-
CIALIZE INTELLECTUAL PROPERTY LICENSED FROM RESEARCH ENTITIES LOCATED IN
NEW YORK STATE;
(C) MATCHING GRANTS TO SMALL BUSINESSES IN NEW YORK STATE FOR COOPER-
ATIVE APPLIED RESEARCH AND DEVELOPMENT PROJECTS WITH RESEARCH INSTI-
TUTIONS TO TRANSLATE PROMISING DISCOVERIES OF THE RESEARCH INSTITUTION
INTO COMMERCIALLY VIABLE PRODUCTS; AND
2. SUCCESSFUL APPLICANTS MAY AWARD INDIVIDUAL GRANTS OR MATCHING
GRANTS NOT EXCEEDING ONE HUNDRED THOUSAND DOLLARS FOR THE PURPOSES FOR
THIS PROGRAM.
3. THE FOUNDATION SHALL ALLOCATE BETWEEN FIVE HUNDRED THOUSAND AND ONE
MILLION DOLLARS FOR EACH ELIGIBLE PROPOSAL TO BE USED EXCLUSIVELY TO
ACCELERATE THE COMMERCIALIZATION OF DISCOVERIES THAT HAVE THE POTENTIAL
TO POSITIVELY IMPACT EXISTING COMPANIES LOCATED IN NEW YORK OR LEAD TO
THE FORMATION OF NEW COMPANIES LOCATED IN NEW YORK.
4. NO LATER THAN AUGUST FIRST, TWO THOUSAND NINE, AND ANNUALLY THERE-
AFTER, THE FOUNDATION SHALL ISSUE A REQUEST FOR PROPOSALS AND THE CRITE-
RIA THAT WILL BE USED TO EVALUATE SUCH PROPOSALS FOR USE OF THE REGIONAL
TECHNOLOGY COMMERCIALIZATION FUND. SUCH PROPOSALS SHALL INCLUDE, BUT NOT
BE LIMITED TO, A DESCRIPTION OF THE EXPECTED SIGNIFICANCE TO NEW YORK
STATE, INCLUDING THE ESTIMATED ECONOMIC IMPACT. AWARDS SHALL BE MADE
WITHIN NINETY DAYS FOLLOWING THE ISSUANCE OF THE REQUEST FOR PROPOSALS.
5. THE FOUNDATION SHALL GIVE PREFERENCE TO THOSE APPLICATIONS THAT
DEMONSTRATE COLLABORATION AMONG ACADEMIC RESEARCH INSTITUTIONS, INDUSTRY
ASSETS, ECONOMIC DEVELOPMENT ORGANIZATIONS AND WORKFORCE DEVELOPMENT
PROGRAMS WITHIN A REGION OF THE STATE AND THAT SHOW THE GREATER POTEN-
TIAL FOR COMMERCIAL SUCCESS AND EVENTUAL JOB CREATION IN NEW YORK STATE.
A. 251--A 3
S 3. Section 209-p of the executive law, as added by chapter 624 of
the laws of 1999, paragraph (c) of subdivision 2, subdivisions 3, 4, 5
and 6 as amended by chapter 342 of the laws of 2008, is amended to read
as follows:
S 209-p. Research development program. 1. There is hereby established
the research development program. The program shall include but need not
be limited to: the faculty development program, capital facility
program, [incentive program,] and centers for advanced technology devel-
opment program.
2. The office shall provide no later than March first, two thousand, a
strategic plan to the governor, the temporary president of the senate
and the speaker of the assembly which shall:
(a) establish criteria for the awarding of funds made available
through the research development program; all awards shall be made on a
competitive basis;
(b) provide a schedule for issuance of requests for proposals for the
research development program awards;
(c) provide a schedule for completion of review of proposals submitted
by institutions of higher education and research institutions to the
office; AND
(d) provide procedures for the issuance of awards from the research
development program.
3. The faculty development program is hereby created to assist insti-
tutions of higher education and research institutions with the retention
and recruitment of research faculty. Funds appropriated for this program
shall be administered by the office pursuant to request for proposals.
Consideration for the allocation of awards shall be given to all insti-
tutions of higher education and research institutions within the state
provided such institutions demonstrate to the satisfaction of the advi-
sory council a specific need for such funds and the manner in which such
award for the recruitment and retention of research faculty would
enhance the research capabilities and reputation of the institution.
Criteria for such awards shall include, but not be limited to, the abil-
ity of the faculty member to leverage and attract federal funds, venture
capital and private industry funds, and the willingness of the faculty
member to pursue entrepreneurial enterprises resulting in new business
or the expansion of existing business in New York state. The office
shall promulgate rules and regulations to establish:
(a) the duration of grants for faculty awards;
(b) matching funds required from the academic and research insti-
tutions;
(c) a schedule for an annual reduction of the faculty development
award, and a corresponding increase in the matching funds from the
academic or research institution; and
(d) other rules and regulations deemed necessary by the office for the
administration of this program.
4. (a) The capital facility program shall provide financing for the
design, acquisition, construction, reconstruction, rehabilitation or
improvement of research and development facilities, including equipment.
Funds appropriated or reappropriated for the capital facility program by
chapter six hundred twenty-four of the laws of nineteen hundred ninety-
nine shall be awarded to no more than six primary host institutions.
(b) Criteria for the issuance of awards by the advisory council shall
include but need not be limited to the following: potential future
growth and economic impact within New York state of the proposed
research to be undertaken at such facilities, available expertise at
A. 251--A 4
such campus in the scientific discipline designated for the center for
advanced technology and/or the center's host campus, an evaluation of
the ability of the proposed research to be undertaken at such facilities
to aid existing business and to create new business in New York state,
and the ability of the proposal to leverage and attract federal funds,
venture capital and private industry funds.
(d) The capital facility program shall also provide financing for the
reconstruction, rehabilitation or improvement of existing laboratory
facilities. Funds available pursuant to this subdivision shall be avail-
able for research facilities at all institutions of higher education and
research institutions in New York state.
(e) The office and the city university construction fund may contract
for the construction fund to design, construct, acquire, reconstruct,
rehabilitate and improve research and development facilities for those
primary host institutions which are senior colleges of the city univer-
sity of New York.
5. [An incentive program is hereby created to provide additional
assistance to technology transfer activities at institutions of higher
education and research institutions in the state of New York for the
purpose of encouraging technology transfer from institutions of higher
education and research institutions to businesses and for commercializa-
tion within New York state. Funds appropriated for this program shall be
available for personal service expenses to enhance the technology trans-
fer abilities of higher education and research institutions to busi-
nesses within New York state including but not limited to patent appli-
cations, the creation of business and marketing plans, venture capital
conferences and non-capital costs associated with the development of
real property owned by such institution of higher education or research
institution for research and development purposes. Funds awarded under
the incentive program shall not exceed fifty percent of the cost of the
purpose for which such funds shall be applied.
6.] A center for advanced technology development program is created
whereby funds shall be awarded to centers for advanced technology for
the purpose of enhancing and expanding the existing role of the center
in the area for which it is designated. Funds appropriated for the
development program shall be awarded to such centers for advanced tech-
nology. Criteria for the issuance of awards shall be established by the
office and shall include but need not be limited to the economic devel-
opment potential of the research undertaken at such center for advanced
technology, funding leveraged from other sources including private
interests and the federal government, potential of revenues accruing to
the institution of higher education or research institution from the
licensing of the products of research conducted at such center of
advanced technology and the interaction of such center with private
industry.
S 4. Notwithstanding any other law to the contrary, any appropriations
to the New York state foundation for science, technology and innovation
board from the general fund, local assistance account for the incentive
program part of the research development program established pursuant to
section 209-p of the executive law that have not been expended or
committed shall be made available for the purposes of the regional tech-
nology commercialization fund.
S 5. This act shall take effect on the sixtieth day after it shall
have become a law.