S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  3512

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 24, 2011
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Commerce, Economic  Devel-
  opment and Small Business

AN  ACT to amend the public authorities law, in relation to the New York
  incubator network

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Legislative Intent. The legislature hereby recognizes that
supporting a statewide network of university affiliated business incuba-
tors,  selected  on  a competitive basis that maintain not only physical
facilities but also most current industry best practice business  devel-
opment  services is a cost effective approach to supporting start-up and
early stage companies and helping  the  state's  creative  entrepreneurs
successfully  transition  technological  breakthroughs  with  commercial
potential from the laboratory to the  marketplace.  This  investment  in
university affiliated business incubators will support regional develop-
ment and local economic diversification, job creation, and the retention
of the state's vast resources of intellectual capital.
  S  2.    The public authorities law is amended by adding a new section
3102-h to read as follows:
  S 3102-H. NEW YORK INCUBATOR NETWORK. THE FOUNDATION IS AUTHORIZED  TO
DESIGNATE TEN INCUBATORS AS PART OF THE NEW YORK INCUBATOR NETWORK. SUCH
DESIGNATIONS SHALL BE MADE IN ACCORDANCE WITH THE STANDARDS AND CRITERIA
SET  FORTH IN SUBDIVISION TWO OF THIS SECTION AND WILL LAST FOR A PERIOD
OF FIVE YEARS. INCUBATORS SO DESIGNATED SHALL BE  ELIGIBLE  FOR  SUPPORT
FROM  THE  FOUNDATION IN THE MANNER PROVIDED FOR IN SUBDIVISION THREE OF
THIS SECTION, AND FOR  SUCH  ADDITIONAL  SUPPORT  AS  MAY  OTHERWISE  BE
PROVIDED BY LAW.
  1.  AS  USED  IN  THIS  SECTION: (A) "INCUBATOR" OR "INCUBATE" MEANS A
UNIVERSITY OR UNIVERSITY-AFFILIATED RESEARCH INSTITUTE OR  A  CONSORTIUM
OF  SUCH  INSTITUTIONS,  DESIGNATED  BY  THE  FOUNDATION, WHICH PROVIDES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09465-01-1
              

S. 3512                             2

SERVICES AND FACILITIES TO ENTREPRENEURS DURING THE  START-UP  PHASE  OF
THEIR COMPANY LIFE-CYCLE.
  (B)  "APPLICANT"  MEANS A UNIVERSITY, A UNIVERSITY-AFFILIATED RESEARCH
INSTITUTE OR INDEPENDENT NOT-FOR-PROFIT INCUBATOR  ESTABLISHED  FOR  THE
PURPOSE  OF  DEVELOPMENT  OF ENTREPRENEURIAL COMPANIES THROUGH PROVIDING
BUSINESS SUPPORT RESOURCES FOR ENTREPRENEURS DURING THE START-UP PERIOD.
  2. THE FOUNDATION SHALL:
  (A) IDENTIFY AREAS FOR WHICH INCUBATORS SHOULD BE DESIGNATED INCLUDING
AREAS THAT ARE RELATED TO  INDUSTRIES  WITH  SIGNIFICANT  POTENTIAL  FOR
ECONOMIC  GROWTH  AND  DEVELOPMENT  IN  NEW YORK STATE AND TECHNOLOGICAL
AREAS THAT ARE RELATED TO THE ENHANCEMENT  OF  PRODUCTIVITY  IN  VARIOUS
INDUSTRIES LOCATED IN NEW YORK STATE.
  (B) LOCATE INCUBATORS, IN EACH OF THE TEN ECONOMIC DEVELOPMENT REGIONS
TO  THE  EXTENT POSSIBLE IN AREAS WHERE THERE IS NOT ALREADY SIGNIFICANT
SUPPORT FOR BUSINESS INCUBATION.
  (C) ESTABLISH CRITERIA THAT APPLICANTS MUST SATISFY FOR DESIGNATION AS
AN INCUBATOR, INCLUDING, BUT NOT LIMITED TO THE  FOLLOWING:
  (I) AN ESTABLISHED RECORD OF, OR PLAN TO CONFORM  TO,  BEST  PRACTICES
INCLUDING CLEAR POLICIES FOR BUSINESS ENTRY AND GRADUATION;
  (II)  A  COMPREHENSIVE  SUITE  OF  ENTREPRENEURIAL MENTORING PRACTICES
INCLUDING ADVISING, COACHING, PLANNING AND CONNECTING TO FUNDING  SOURC-
ES;
  (III)  THE  CAPACITY  TO  SECURE SUBSTANTIAL PRIVATE AND OTHER GOVERN-
MENTAL FUNDING FOR THE PROPOSED INCUBATOR, IN AMOUNTS AT LEAST EQUAL  TO
THE TOTAL OF SUPPORT SOUGHT FROM THE STATE;
  (IV)  THE  ABILITY  AND  WILLINGNESS  TO  COOPERATE  WITH OTHER LOCAL,
REGIONAL AND STATEWIDE ECONOMIC DEVELOPMENT, BUSINESS SUPPORT, VENTURES,
CAPITAL, WORKFORCE AND OTHER PARTNERS;
  (V) THE CAPACITY TO COLLABORATE WITH BUSINESS AND INDUSTRY.
  (D) ESTABLISH SUCH  REQUIREMENTS  AS  IT  DEEMS  APPROPRIATE  FOR  THE
FORMAT, CONTENT AND FILING OF APPLICATIONS FOR DESIGNATION AS INCUBATORS
FOR ENTREPRENEURIAL DEVELOPMENT.
  (E)  ESTABLISH  SUCH PROCEDURES AS IT DEEMS APPROPRIATE FOR THE EVALU-
ATION OF APPLICATIONS FOR DESIGNATION AS INCUBATORS FOR  ENTREPRENEURIAL
DEVELOPMENT,  INCLUDING  THE ESTABLISHMENT OF A REVIEW PANEL COMPOSED OF
NATIONALLY RECOGNIZED EXPERTS IN BUSINESS INCUBATION.
  (F) UPON THE APPROVAL OF AN APPLICATION, CONFER  AN  INCUBATOR  DESIG-
NATION  UPON  A  SUCCESSFUL APPLICANT FOR A PERIOD OF FIVE YEARS, UNLESS
OTHERWISE REVOKED BY THE FOUNDATION.
  (G) THE FOUNDATION BOARD  SHALL  APPROVE  RULES  AND  REGULATIONS  FOR
SELECTION  OF  INCUBATORS AND SHALL MAKE FINAL DESIGNATIONS THROUGH VOTE
OF MAJORITY OF APPOINTED MEMBERS OF THE FOUNDATION BOARD.
  3. (A) FROM SUCH FUNDS AS MAY BE APPROPRIATED FOR THIS PURPOSE BY  THE
LEGISLATURE,  THE  FOUNDATION  SHALL  PROVIDE FINANCIAL SUPPORT, THROUGH
CONTRACTS OR OTHER MEANS, TO DESIGNATED INCUBATORS  FOR  ENTREPRENEURIAL
DEVELOPMENT,  IN ORDER TO ENHANCE AND ACCELERATE THE DEVELOPMENT OF SUCH
INCUBATORS. FUNDS RECEIVED PURSUANT TO THIS SUBDIVISION MAY BE USED  FOR
PURCHASE  OF EQUIPMENT AND FIXTURES, EMPLOYMENT OF DIRECT SERVICE STAFF,
PROVISION OF INTERNSHIPS, 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 AN INCUBATOR SHALL BE MATCHED BY COMMIT-
MENTS OF SUPPORT FROM PRIVATE AND GOVERNMENTAL SOURCES OTHER THAN  STATE
SOURCES.
  (I)  BEGINNING IN THE FOURTH ACADEMIC YEAR FOLLOWING THE ACADEMIC YEAR
IN WHICH AN INCUBATOR IS FIRST DESIGNATED, THE FOUNDATION SHALL EVALUATE
ITS PERFORMANCE.

S. 3512                             3

  (II) THE FOUNDATION WILL INITIATE A REDESIGNATION PROCESS  IN  ACCORD-
ANCE  WITH  THE  STANDARDS  AND  CRITERIA  SET FORTH IN PARAGRAPH (B) OF
SUBDIVISION TWO OF THIS SECTION AND IN ACCORDANCE  WITH  PARAGRAPHS  (C)
AND (D) OF SUBDIVISION TWO OF THIS SECTION.
  (III)  IN YEAR FIVE THE FOUNDATION MAY DESIGNATE, SUBJECT TO AVAILABLE
APPROPRIATIONS, ADDITIONAL INCUBATORS.
  IN THE EVENT A NEW INCUBATOR IS SELECTED IN THE REDESIGNATION PROCESS,
THE FOUNDATION SHALL PROVIDE FUNDS TO SUCH NEW INCUBATOR  IN  ACCORDANCE
WITH  THE  FUNDING MATCH REQUIREMENTS SET FORTH IN SUBPARAGRAPHS (I) AND
(II) OF THIS PARAGRAPH.
  (B) CONTINUED FUNDING OF THE OPERATIONS OF  EACH  INCUBATOR  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 EMERG-
ING BUSINESSES IN NEW YORK STATE; COMPLIANCE WITH THE RULES, REGULATIONS
AND  GUIDELINES  OF  THE  FOUNDATION;  AND COMPLIANCE WITH ANY CONTRACTS
BETWEEN THE FOUNDATION AND THE DESIGNATED INCUBATOR.
  (C) EACH INCUBATOR SHALL REPORT ON ITS ACTIVITIES  TO  THE  FOUNDATION
BOARD IN A MANNER AND ACCORDING TO THE SCHEDULE ESTABLISHED BY THE FOUN-
DATION,  AND SHALL PROVIDE SUCH ADDITIONAL INFORMATION AS THE FOUNDATION
MAY REQUIRE.  THE FOUNDATION SHALL EVALUATE INCUBATOR  OPERATIONS  USING
METHODS  SUCH  AS  SITE  VISITS,  REPORTING OF SPECIFIED INFORMATION AND
REVIEW EVALUATIONS USING EXPERTS  IN  ENTREPRENEURIAL  DEVELOPMENT.  THE
FOUNDATION SHALL NOTIFY EACH INCUBATOR OF THE RESULTS OF ITS EVALUATIONS
AND  FINDINGS  OF  DEFICIENCIES  IN  THE OPERATION OF SUCH INCUBATOR AND
SHALL WORK WITH SUCH INCUBATORS 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 INCUBATOR DESIGNATION.
  4. THE FOUNDATION SHALL MAKE AN ANNUAL REPORT OF  THE  INCUBATORS  FOR
ENTREPRENEURIAL  DEVELOPMENT  PROGRAM TO THE GOVERNOR AND THE SPEAKER OF
THE ASSEMBLY, THE TEMPORARY PRESIDENT OF  THE  SENATE,  THE  LEGISLATIVE
COMMITTEES  ON  ECONOMIC  DEVELOPMENT  AND  TO THE FISCAL COMMITTEES NOT
LATER THAN  DECEMBER  THIRTY-FIRST  OF  EACH  YEAR.  SUCH  REPORT  SHALL
INCLUDE, BUT NOT BE LIMITED TO, A LIST OF ACTIVE TENANTS, THE RESULTS OF
THE  FOUNDATION'S  EVALUATION  OF  EACH  INCUBATOR, A DESCRIPTION OF THE
ACHIEVEMENTS OF EACH INCUBATOR, A COMPLETE FINANCIAL  STATEMENT  OF  THE
CORPORATION,  ANY DEFICIENCIES IN THE OPERATION OF EACH INCUBATOR, REME-
DIAL ACTIONS RECOMMENDED BY THE FOUNDATION, REMEDIAL  ACTIONS  TAKEN  BY
THE  INCUBATOR,  A  DESCRIPTION  OF BUSINESS ASSISTANCE PROVIDED BY EACH
INCUBATOR, A DESCRIPTION OF ANY EXTERNAL FUNDING ATTRACTED BY THE  INCU-
BATOR,  PARTNERSHIPS ENTERED INTO BY THE INCUBATOR, THE AMOUNT OF FINAN-
CIAL ASSISTANCE PROVIDED BY THE FOUNDATION AND  THE  LEVEL  OF  MATCHING
FUNDS  PROVIDED  EACH  INCUBATOR  AND  A  DESCRIPTION OF THE USE OF SUCH
MONIES.
  S 3. This act shall take effect immediately.