S T A T E O F N E W Y O R K
________________________________________________________________________
6854
I N S E N A T E
February 17, 2010
___________
Introduced by Sen. STACHOWSKI -- read twice and ordered printed, and
when printed to be committed to the Committee on Commerce, Economic
Development and Small Business
AN ACT to amend the public authorities law, in relation to certain funds
used by the center for advanced technology
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph (a) of subdivision 1 of section 3102-b of the
public authorities law, as added by chapter 562 of the laws of 1982 and
such section as renumbered by chapter 291 of the laws of 1990, is
amended to read as follows:
(a) "center for advanced technology" or "center" means a university or
university-affiliated research institute or a consortium of such insti-
tutions, designated by the foundation, which conducts a continuing
program of basic and applied research, development, and technology
[transfer] COMMERCIALIZATION in one or more technological areas, in
collaboration with and through the support of private business and
industry; and
S 2. Subdivision 3 of section 3102-b of the public authorities law, as
added by chapter 562 of the laws of 1982, paragraph (a) as amended and
paragraphs (b), (c) and (d) as added by chapter 828 of the laws of 1987,
and such section as renumbered by chapter 291 of the laws of 1990, is
amended to read as follows:
3. (a) From such funds as may be appropriated for this purpose by the
legislature, the foundation may provide financial support, through
contracts or other means, to designated centers for advanced technology,
in order to enhance and accelerate the development of such centers.
Funds received pursuant to this subdivision may be used for purchase of
equipment and fixtures, employment of faculty and support staff,
provision of graduate fellowships, and other purposes approved by the
foundation, but may not be used for capital construction. In each case,
the amount provided by the foundation to a center shall be matched by
commitments of support from private and governmental other than state
sources [in accordance with the following] PROVIDED THAT:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15457-02-0
S. 6854 2
(I) FUNDS OR IN-KIND RESOURCES PROVIDED BY THE PUBLIC OR PRIVATE
UNIVERSITY OF WHICH THE CENTER IS A PART MAY BE COUNTED TOWARDS THE
MATCH;
(II) SUCH MATCH SHALL NOT BE REQUIRED ON A PROJECT-BY-PROJECT BASIS;
(III) MATCHING FUNDS RECEIVED FROM BUSINESSES WITH NO MORE THAN ONE
HUNDRED EMPLOYEES SHALL COUNT AS DOUBLE THE ACTUAL DOLLAR AMOUNT TOWARD
THE CENTER'S OVERALL MATCH REQUIREMENT;
(IV) FUNDS USED BY THE CENTER FOR ANY WORKFORCE DEVELOPMENT ACTIVITIES
REQUIRED BY THE FOUNDATION SHALL NOT BE INCLUDED AS PART OF THE CENTER'S
AWARD WHEN DETERMINING THE AMOUNT OF MATCHING FUNDS REQUIRED BY THE
FOUNDATION. SUCH ACTIVITIES SHALL INCLUDE, BUT ARE NOT LIMITED TO, HELP-
ING INCUMBENT WORKERS EXPAND THEIR SKILL SETS THROUGH SHORT COURSES,
SEMINARS, AND WORKSHOPS; PROVIDING INDUSTRY-DRIVEN RESEARCH ASSISTANT
OPPORTUNITIES FOR STUDENTS, AND AIDING IN THE DEVELOPMENT OF UNDERGRADU-
ATE AND GRADUATE COURSES IN THE CENTER'S TECHNOLOGY FOCUS TO HELP ENSURE
THAT STUDENTS ARE TRAINED TO MEET THE NEEDS OF INDUSTRY;
(V) CENTERS MAY USE NOT MORE THEN TWENTY-FIVE PERCENT OF INDIRECT
COSTS TOWARDS ANY MATCH REQUIREMENTS.
(B) THE AMOUNT PROVIDED BY THE FOUNDATION SHALL BE MADE IN ACCORDANCE
WITH THE FOLLOWING:
(i) for the academic year in which it is first funded as a designated
center, and the five subsequent years, the amount provided by the foun-
dation to a center shall be matched equally by the center;
(ii) beginning in the sixth academic year following the academic year
in which a center is first funded as a designated center and for each
academic year thereafter, amounts provided by the foundation of up to
seven hundred fifty thousand dollars shall be matched equally by the
center, amounts in excess of seven hundred fifty thousand dollars shall
be matched by the center in amounts of at least the percentage set forth
herein: in the sixth year, one hundred twenty percent; in the seventh
year, one hundred forty percent; in the eighth year, one hundred sixty
percent; in the ninth year, one hundred eighty percent; in the tenth
year and each year thereafter, two hundred percent;
(iii) beginning in the ninth academic year following the academic year
in which a center is first funded as a designated center, the foundation
shall evaluate such center's area of advanced technology to determine
whether it has continued significant potential for enhancing economic
growth in New York, or whether the application of technologies in the
area could significantly enhance the productivity and stability of New
York businesses;
(iv) upon a finding by the foundation that an area of advanced tech-
nology has continued significant potential for enhancing economic growth
in New York, or that the application of technologies in the area could
significantly enhance the productivity and stability of New York busi-
nesses, the foundation will initiate a redesignation process in accord-
ance with the standards and criteria set forth in paragraph (b) of
subdivision two and in accordance with paragraphs (c) and (d) of subdi-
vision two of this section.
(1) In the event a new center is selected in the redesignation proc-
ess, the foundation shall provide funds to such new center in accordance
with the funding match requirements set forth in subparagraphs (i) and
(ii) of paragraph (a) of this subdivision.
(2) In the event a previously designated center is redesignated in the
same area of technology, which redesignation is effective for the tenth
academic year following the first academic year of both designation and
funding, then, in that year and in each year thereafter, the foundation
S. 6854 3
shall provide funds of up to seven hundred fifty thousand dollars to be
matched equally by the center, amounts in excess of seven hundred fifty
thousand dollars shall be matched by the center in amounts of at least
two hundred percent.
(3) In the event a currently designated center is not selected in the
redesignation process for an additional term, or upon a finding by the
foundation that the area of advanced technology does not have signif-
icant potential for enhancing economic growth in New York, or upon a
finding that the application of technologies in that area would not
significantly enhance the productivity and stability of New York busi-
nesses, then the foundation shall, in the tenth academic year following
such center's first both designation and funding, which year shall be
the final year of funding for such center, provide an amount of up to
five hundred thousand dollars.
[(b)] (C) Continued funding of the operations of each center shall be
based upon a showing that: the center continues to comply with the
criteria established by the foundation pursuant to paragraph (b) of
subdivision two of this section; a demonstration of assistance to small
businesses in New York state through research, technology transfer or
other means as approved by the foundation; EVIDENCE OF PARTNERSHIPS WITH
OTHER APPROPRIATE ENTITIES TO DEVELOP OUTREACH NETWORKS AND ENSURE THAT
COMPANIES RECEIVE ACCESS TO APPROPRIATE FEDERAL FUNDING FOR TECHNOLOGY
DEVELOPMENT AND COMMERCIALIZATION AS WELL AS NON-RESEARCH ASSISTANCE
SUCH AS GENERAL BUSINESS CONSULTING. APPROPRIATE PARTNERS ARE THOSE WITH
WHICH THE CENTER DEMONSTRATES A RELATIONSHIP THAT ENHANCES AND ADVANCES
THE CENTER'S ABILITY TO AID ECONOMIC GROWTH IN NEW YORK STATE; AND
compliance with the rules, regulations and guidelines of the foundation;
and, compliance with any contracts between the foundation and the desig-
nated center.
[(c)] (D) Each center shall report on its activities to the foundation
in a manner and according to the schedule established by the foundation,
and shall provide such additional information as the foundation may
require PROVIDED, THAT QUANTIFIABLE ECONOMIC DEVELOPMENT IMPACT MEASURES
ARE NOT RESTRICTED TO ANY PERIOD LESS THAN FIVE YEARS AND THAT CENTERS
PROVIDE A FULL DESCRIPTION OF ALL NON-QUANTIFIABLE MEASURES. The foun-
dation shall evaluate center operations using methods such as site
visits, reporting of specified information and peer review evaluations
using experts in the field of technology in which the center was desig-
nated. The foundation shall notify each center of the results of its
evaluations and findings of deficiencies in the operation of such center
or its research, education, or technology [transfer] COMMERCIALIZATION
activities and shall work with such centers to remedy such findings. If
such factors are not remedied, the foundation may withdraw the state
funding support, in whole or in part, or withdraw the center desig-
nation.
[(d)] (E) In order to encourage that the results of center research
benefit New York state, designation and continued funding of each center
shall be contingent upon each center's establishing within its licensing
guidelines the following: after payment of the inventor's share, a
reduced payment due to the university of any royalty, income or other
consideration earned from the license or sale of intellectual property
rights created or developed at, or through the use of, the facilities of
the center by any person or entity if the manufacturing or use resulting
from such intellectual property rights occurs within New York state. The
foundation shall promulgate rules and regulations regarding the
provisions of the licensing guidelines described herein as they apply to
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such reduced payment, and such provisions shall be subject to the
approval of the foundation.
S 3. Paragraph (a) of subdivision 6 of section 3102-b of the public
authorities law, as added by chapter 828 of the laws of 1987 and such
section as renumbered by chapter 291 of the laws of 1990, is amended to
read as follows:
(a) The foundation shall make an annual report of the centers for
advanced technology program to the governor and the legislature not
later than September first of each year. Such report shall include, but
not be limited to, the results of the foundation's evaluation of each
center, a description of the achievement of each center, any deficien-
cies in the operation of each center or its research, education and
technology [transfer] COMMERCIALIZATION activities, remedial actions
recommended by the foundation, remedial actions taken by each center, a
description of the small business assistance provided by each center, a
description of any incentive grant program awarded a grant by the foun-
dation and the achievements of such program, and the amount of financial
assistance provided by the foundation and the level of matching funds
provided by each center and the uses of such monies.
S 4. This act shall take effect immediately.