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

                                  6555

                            I N  S E N A T E

                            February 5, 2014
                               ___________

Introduced  by  Sens.  GOLDEN,  GALLIVAN,  GRIFFO,  HANNON, RANZENHOFER,
  ROBACH, TKACZYK, VALESKY -- 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 economic development law, in  relation  to  the  New
  York  state biomedical and biotechnological translational research and
  entrepreneurship initiative

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

  Section  1.  Intent.  The legislature hereby finds and declares that a
coordinated program of research,  entrepreneurship,  and  public-private
partnerships  and  collaborations,  centered  in  and  with  the state's
medical schools, can significantly increase  the  speed  and  amount  of
commercialization  of  research from lab to market, maintain the quality
and increase the likelihood of high impact healthcare breakthroughs, and
materially expand economic and job opportunities for all New Yorkers  in
this high growth sector.
  The  legislature further finds that although New York state's biomedi-
cal and biotechnological research infrastructure includes  many  of  the
nation's  top  institutions,  researchers  and  scientists, and has many
natural advantages compared to other states, it has  lagged  behind  the
nation  as  a  whole and many states in growth in jobs, development, and
economic activity for a decade;  and  further,  that  other  states  are
making  investments  and  developing  incentives that are creating rapid
growth in this sector and increasing the gap between New York and  other
states, and potential loss of top tier scientific and research talent as
they  migrate  to other states in search of opportunity and professional
advancement.
  The legislature further finds that recent changes that have  made  New
York's  economic development programs more sophisticated and competitive
can be combined  with  other  approaches  and  statutory  precedents  to
support and incentivize an effective and integrated plan for development
of  biomedical  and biotechnological entrepreneurship by and through the
state's medical schools, and declares that the program enacted  by  this

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

                                                           LBD13390-02-3

S. 6555                             2

act  will  expand  economic  activity  and job development, maintain and
attract high quality  research,  increase  resources  available  to  the
schools and researchers from grants, private investments, and licensure,
and  leverage significant partnerships with public and private entities,
to increase the speed of commercialization of research and the expansion
of economic opportunity, which are in every sense to the benefit of  the
people of this state.
  S  2.  The economic development law is amended by adding a new article
22 to read as follows:
                                ARTICLE 22
           THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
         TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
SECTION 441. SHORT TITLE.
        442. DEFINITIONS.
        443. NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATION-
               AL RESEARCH AND ENTREPRENEURSHIP INITIATIVE COMMITTEE.
        444. ADMINISTRATION.
        445. APPLICATION FOR DESIGNATION AS A NEW YORK STATE  BIOMEDICAL
               AND  BIOTECHNOLOGICAL  TRANSLATIONAL  RESEARCH AND ENTRE-
               PRENEURSHIP INITIATIVE CENTER.
        446. REVIEW AND APPROVAL OF APPLICATIONS.
        447. WAIVER IN CERTAIN CASES.
        448. OPERATION AND REDESIGNATION OF NEW  YORK  STATE  BIOMEDICAL
               AND  BIOTECHNOLOGICAL  TRANSLATIONAL  RESEARCH AND ENTRE-
               PRENEURSHIP INITIATIVE CENTERS.
        449. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM.
        450. UNIFIED CONTRACT.
        451. REPORT.
  S 441. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
"THE  NEW  YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL  TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE."
  S 442. DEFINITIONS. AS USED IN THIS SECTION,
  1. "MEDICAL SCHOOL" MEANS A PUBLIC OR PRIVATE MEDICAL  SCHOOL  LOCATED
IN THIS STATE.
  2.  "NEW  YORK  STATE  INCUBATORS"  AND  "NEW  YORK  STATE  INNOVATION
HOTSPOTS" OR "INCUBATORS" AND "HOTSPOTS" MEAN AND  REFER  TO  "NEW  YORK
STATE  INCUBATORS"  AND  "NEW YORK STATE INNOVATION HOTSPOTS" DESIGNATED
PURSUANT TO SECTION SIXTEEN-V OF THE URBAN DEVELOPMENT CORPORATION ACT.
  3. "PEER REVIEW COMMITTEE" MEANS THE PEER REVIEW COMMITTEE CREATED  BY
THE  DEPARTMENT  IN  COLLABORATION  WITH THE STATE INITIATIVE COMMITTEE,
CONSISTING OF NON-NEW YORK STATE EXPERTS IN THE FIELDS OF BIOMEDICAL AND
BIOTECHNOLOGICAL DEVELOPMENT, INCLUDING RESEARCHERS AND SCIENTISTS,  AND
COMPANY  REPRESENTATIVES  AT  THE  EXECUTIVE  OFFICER  LEVEL  ENGAGED IN
MAKING, DEVELOPMENT, AND FINANCING OF  BIOMEDICAL  AND  BIOTECHNOLOGICAL
RESEARCH.
  4.  "PLAN"  MEANS THE MULTI-YEAR PLAN THAT ACCOMPANIES THE APPLICATION
OF A MEDICAL SCHOOL TO BECOME A NEW YORK STATE BIOMEDICAL AND BIOTECHNO-
LOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTER.
  5. "PROJECT" IS THE EXECUTION OF THE NEW  YORK  STATE  BIOMEDICAL  AND
BIOTECHNOLOGICAL  TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
CENTER PLAN BY THE MEDICAL SCHOOL WHICH HAS BEEN  DESIGNATED  AS  A  NEW
YORK  STATE  BIOMEDICAL  AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND
ENTREPRENEURSHIP INITIATIVE CENTER.
  6. "START-UP NY" PROGRAM MEANS  THE  START-UP  NY  PROGRAM  AUTHORIZED
PURSUANT  TO  ARTICLE TWENTY-ONE OF THIS CHAPTER, AND "TAX-FREE NY AREA"
HAS THE SAME MEANING AS IN ARTICLE TWENTY-ONE OF THIS CHAPTER.

S. 6555                             3

  7. "STATE INITIATIVE COMMITTEE" MEANS THE BIOMEDICAL AND BIOTECHNOLOG-
ICAL TRANSLATIONAL RESEARCH AND  ENTREPRENEURSHIP  INITIATIVE  COMMITTEE
CREATED BY SECTION FOUR HUNDRED FORTY-THREE OF THIS ARTICLE.
  8. "TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP CENTER" OR "CENTER" IS
THE   NEW  YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL  TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTER  CREATED  AT  A  MEDICAL
SCHOOL  UPON APPROVAL BY THE STATE INITIATIVE COMMITTEE PURSUANT TO THIS
ARTICLE.
  9. "UNIFIED CONTRACT" IS THE CONTRACT BETWEEN THE DEPARTMENT  AND  THE
MEDICAL  SCHOOL  THAT  INCLUDES ALL ITEMS NECESSARY TO THE EXECUTION AND
ADMINISTRATION OF THE NEW YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL
TRANSLATIONAL   RESEARCH  AND  ENTREPRENEURSHIP  INITIATIVE  PROJECT  AS
DESCRIBED IN THIS ARTICLE, INCLUDING  FUNDING,  ACTIVITIES,  PERFORMANCE
METRICS, DATA SHARING, AND OTHER ITEMS.
  S  443.  NEW  YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE COMMITTEE. THE NEW  YORK  STATE
BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEUR-
SHIP  INITIATIVE  COMMITTEE IS HEREBY CREATED, TO CONSIST OF THE COMMIS-
SIONERS OF THE DEPARTMENTS OF HEALTH, EDUCATION,  ECONOMIC  DEVELOPMENT,
LABOR,  TAX  AND  FINANCE, THE CHANCELLOR OF THE STATE UNIVERSITY OF NEW
YORK, THE CHANCELLOR OF THE CITY UNIVERSITY OF NEW YORK,  THE  PRESIDENT
OF  THE  EMPIRE STATE DEVELOPMENT CORPORATION, THE DIRECTOR OF THE DIVI-
SION OF THE BUDGET, AND THE STATE COMPTROLLER. THE  COMMITTEE  SHALL  BE
CHAIRED  BY  THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AND CO-CHAIRED BY
THE COMMISSIONER OF HEALTH.  COMMISSIONERS MAY BE REPRESENTED BY  DESIG-
NEES AT MEETINGS OF THE COMMITTEE.
  1. POWERS AND DUTIES. THE COMMITTEE SHALL:
  (A)  ESTABLISH GUIDELINES APPROPRIATE TO THE ACTIVITIES REQUIRED UNDER
THIS ARTICLE.
  (B) ACCEPT AND REVIEW APPLICATIONS AND DESIGNATE  MEDICAL  SCHOOLS  AS
NEW  YORK  STATE  BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH
AND ENTREPRENEURSHIP INITIATIVE CENTERS USING THE  CRITERIA  ESTABLISHED
IN THIS ARTICLE.
  (C)  ACCEPT REQUESTS FOR AND APPROVE WAIVERS OF REGULATIONS AND PROCE-
DURES AS PROVIDED FOR IN SECTION FOUR HUNDRED FORTY-SIX OF THIS ARTICLE.
  (D) ESTABLISH A UNIFIED CONTRACT FOR ADMINISTRATION OF PROJECTS PURSU-
ANT TO SECTION FOUR HUNDRED FIFTY OF THIS ARTICLE.
  (E) RECEIVE AND REVIEW REPORTS FROM CENTERS TO ASSURE THAT PERFORMANCE
METRICS OF APPROVED PLANS ARE MET.
  (F) REDESIGNATE THE CENTERS EVERY THREE  YEARS  UNDER  THE  PROCEDURES
ESTABLISHED PURSUANT TO THIS ARTICLE.
  (G)  DEVELOP  RESOURCES  AND  PROCEDURES TO AID IN ESTABLISHING A MORE
RAPID PROCESS FOR COMMERCIALIZATION OF RESEARCH AND FUNDING OF ENTREPRE-
NEURIAL EFFORTS CREATED AS A  RESULT  OF  PROJECTS,  INCLUDING  BUT  NOT
LIMITED  TO  SUCH  ACTIVITIES  AS  PROCUREMENT BY MEMBER AGENCIES OF THE
COMMITTEE OF GOODS OR SERVICES FROM COMPANIES CREATED IN  THE  PROJECTS;
ENDORSING,  COLLABORATING,  OR  ACTING AS A CO-PRINCIPAL INVESTIGATOR OR
OTHER LEVEL OF PARTICIPANT ON GRANTS OR OTHER ACTIVITIES THAT  WILL  AID
IN  FURTHERING  PROJECT  ACTIVITIES;  AND  SUCH OTHER APPLICATION OF THE
RESOURCES OF THE STATE AND ITS AGENCIES TO  RAPID  COMMERCIALIZATION  AS
ARE PERMISSIBLE UNDER LAW.
  (H)  OVERSEE  AND MAKE RECOMMENDATIONS FOR APPROVAL OF APPLICATIONS TO
THE SCIENTIFIC RESEARCH AND DISCOVERY BANK CREATED BY THIS  ARTICLE  FOR
THE RECRUITMENT AND RETENTION OF STAR SCIENTISTS AND RESEARCHERS.
  (I)  UPON  REQUEST, PROVIDE TECHNICAL ASSISTANCE TO APPLICANTS, AND AS
NEEDED FOR A PROJECT, INCLUDING BUT NOT LIMITED TO ASSISTANCE IN IDENTI-

S. 6555                             4

FYING AND OBTAINING RESOURCES AND FUNDING NECESSARY FOR  THE  SUCCESSFUL
IMPLEMENTATION OF THE PLAN.
  (J) IDENTIFY STATUTORY REQUIREMENTS THAT THE COMMITTEE VIEWS AS IMPED-
IMENTS TO SUCCESSFUL IMPLEMENTATION OF APPROVED PLANS AND, AS NECESSARY,
SUBMIT REQUESTS TO THE LEGISLATURE IN ACCORDANCE WITH ARTICLE VII OF THE
STATE  CONSTITUTION  FOR  SPECIFIC  LEGISLATIVE  ENACTMENTS NECESSARY TO
REMOVE SUCH IMPEDIMENTS.
  (K) ENTER INTO AGREEMENTS BETWEEN AND AMONG THE MEMBERS OF THE COMMIT-
TEE AS NECESSARY TO DELINEATE THEIR RESPECTIVE ROLES REGARDING THE COOP-
ERATIVE PROVISION OF PROGRAM FUNDING AND TECHNICAL ASSISTANCE.
  (L) REQUIRE SUCH ADDITIONAL REPORTS, INFORMATION, OR OVERSIGHT AS  MAY
BE NECESSARY TO THE SUCCESSFUL IMPLEMENTATION OF A PROJECT.
  2.  THE  COMMITTEE  MAY ACT THROUGH ITS CHAIRS IN ALL MATTERS OF OVER-
SIGHT AND IMPLEMENTATION OF THE  PROGRAM  AUTHORIZED  BY  THIS  ARTICLE,
INCLUDING  RECEIPT  OF  APPLICATIONS,  NOTIFICATION  OF DESIGNATION, AND
MONITORING OF APPROVED CENTERS TO ENSURE THAT SERVICES ARE  PROVIDED  IN
ACCORDANCE  WITH THE APPROVED PLAN AND THAT FUNDS ARE USED IN ACCORDANCE
WITH APPLICABLE STATE AND FEDERAL LAW AND REGULATIONS.
  S 444. ADMINISTRATION. EXCEPT WHERE OTHERWISE PRESCRIBED, THE  DEPART-
MENT  SHALL  BE  RESPONSIBLE FOR THE ADMINISTRATION OF THE PROVISIONS OF
THIS ARTICLE.
  S 445. APPLICATION FOR DESIGNATION AS A NEW YORK STATE BIOMEDICAL  AND
BIOTECHNOLOGICAL  TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
CENTER. IN RESPONSE TO A REQUEST FOR PROPOSALS,  A  MEDICAL  SCHOOL  MAY
APPLY  FOR  FUNDING  AND  DESIGNATION AS A NEW YORK STATE BIOMEDICAL AND
BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP  INITIATIVE
CENTER  BY  SUBMITTING  AN APPLICATION AND PLAN TO THE COMMISSIONER. THE
COMMISSIONER SHALL FORWARD ALL SUCH PLANS TO THE PEER  REVIEW  COMMITTEE
FOR  ASSESSMENT  AS  HEREIN  PROVIDED,  AND THEN TO THE STATE INITIATIVE
COMMITTEE. IN ADDITION TO SUCH OTHER ITEMS, WARRANTIES, AND  INFORMATION
AS  THE STATE INITIATIVE COMMITTEE MAY REQUIRE, PLANS MUST SHOW AN INTE-
GRATED VISION FOR  COMMERCIALIZING  RESEARCH  FROM  LAB  TO  MARKETPLACE
INCLUDING AN INTERRELATED DEMONSTRATION OF THE FOLLOWING:
  1. COMMITMENT: A MULTI-YEAR COMMITMENT BY THE MEDICAL SCHOOL TO DEVEL-
OPMENT  AND  IMPLEMENTATION  OF THE PLAN, OVER A PERIOD OF NOT LESS THAN
FIVE YEARS, SUCH COMMITMENT TO BE DEMONSTRATED BY A  MULTI-YEAR  COMMIT-
MENT  OF  RESOURCES,  PERSONNEL,  AND  FUNDS  THAT  THE SCHOOL WILL USE,
DIRECTLY OR THROUGH PARTNERSHIPS AND COLLABORATIONS, TO  PROVIDE  AND/OR
INCENTIVIZE  INTEGRATED  RESEARCH,  EDUCATION, CLINICAL PRACTICE, ENTRE-
PRENEURSHIP, FINANCING, PARTNERSHIPS, AND MORE  RAPID  COMMERCIALIZATION
OF RESEARCH.
  2.  RESOURCES: A DESCRIPTION OF THE ACTIONS AND RESOURCES NECESSARY TO
MEET THE PLAN OBJECTIVES OVER ITS DURATION;  A  DEMONSTRATION  THAT  THE
MEDICAL  SCHOOL  HAS EXISTING OPERATIONAL CLINICAL FACILITIES AND EXPER-
TISE OR EVIDENCE OF BONA FIDE COLLABORATIONS AND PARTNERSHIPS  THAT  CAN
PROVIDE  SUCH FACILITIES AND EXPERTISE SUFFICIENT TO SUCCESSFULLY IMPLE-
MENT THE PLAN; A DEMONSTRATION THAT THE PROJECT WILL HAVE A PROFESSIONAL
MANAGEMENT TEAM WITH EXPERIENCE, EXPERTISE, OR  CREDENTIALS  IN  MANAGE-
MENT, ENTREPRENEURSHIP, BUSINESS DEVELOPMENT, OR OTHER EQUIVALENT AREAS.
THE  DEMONSTRATION MAY INCLUDE RECRUITMENT PLANS OR COMMITMENTS FOR HIGH
LEVEL RESEARCH PROFESSIONALS, INCLUDING HOW THE SCHOOL WOULD MAKE USE OF
THE SCIENTIFIC RESEARCH AND DISCOVERY BANK.
  3. ENTREPRENEURIAL AND  RESEARCH  COLLABORATIONS:  EVIDENCE  INCLUDING
WRITTEN PROTOCOLS OF BONA FIDE RELATIONS WITH ONE OR MORE INCUBATORS AND
HOTSPOTS, FOR PROVISION OF ENTREPRENEURIAL SERVICES TO RESEARCHERS, WITH
A  START-UP NY TAX-FREE NY PROGRAM AREA TO PROVIDE LOCATION AND SERVICES

S. 6555                             5

AS NEEDED FOR SUCH RESEARCHERS AND ACTIVITIES, AND  SUBSTANTIVE  COLLAB-
ORATIONS  WITH PRIVATE ENTITIES FOR TRAINING, COMMERCIALIZATION, FINANC-
ING, OR OTHER ACTIVITIES INTEGRAL TO THE PLAN.
  4.  LEVERAGED AND APPLIED FUNDING: A DEMONSTRATION THAT THE SCHOOL HAS
IN HAND OR WILL SHORTLY OBTAIN AND MAINTAIN DURING THE PLAN  PERIOD  THE
REQUIRED FUNDING MATCH OF AT LEAST TWO NON-STATE DOLLARS FOR EVERY STATE
DOLLAR  PROVIDED  PURSUANT TO THIS ARTICLE TO AN APPROVED PLAN. THE PLAN
SHOULD INCLUDE A DEMONSTRATION OF HOW THE SCHOOL WOULD USE TAX  CREDITS,
PUBLIC  FUNDS,  OR  OTHER  INCENTIVES  TO  AID DIRECTLY OR INDIRECTLY IN
DEVELOPMENT OF INVESTMENT VEHICLES FOR RESEARCHERS,  AND  TO  ENGAGE  IN
ACTIVITIES  CRITICAL  TO THE COMMERCIALIZATION OF RESEARCH. SUCH FUNDING
AND COLLABORATIONS SHOULD ALSO SHOW HOW THE CENTER HAS OR  WILL  DEVELOP
LEVERAGED  CREATIVE  PARTNERSHIPS  TO PROVIDE ANGEL, SEED, PRE-SEED, AND
OTHER INVESTMENTS TO HELP EACH STAGE OF PRODUCT  DEVELOPMENT,  EVIDENCED
BY  WRITTEN AGREEMENTS, MEMORANDUMS OF UNDERSTANDING, LETTERS OF INTENT,
OR OTHER ENDORSEMENTS ACCEPTABLE TO THE COMMITTEE.
  5. ADDITIONAL PLANS AND PROGRAMS: OTHER PLANS AND PROGRAMS INTEGRAL TO
THE SUCCESSFUL EXECUTION OF THE PROJECT, INCLUDING BUT  NOT  LIMITED  TO
PATENT   AND  INTELLECTUAL  PROPERTY  PLANS,  TRAINING  AND  EDUCATIONAL
PROGRAMS, AND EDUCATIONAL INTEGRATION WITH RESEARCH AND CLINICAL  ACTIV-
ITIES.
  6.  COMMUNITY SUPPORT: A DEMONSTRATION OF COMMUNITY SUPPORT FROM BUSI-
NESS AND GOVERNMENT LEADERS AND ORGANIZATIONS.
  7. BEST PRACTICES: A DEMONSTRATION THAT THE MEDICAL SCHOOL HAS OR WILL
ADOPT BEST PRACTICES AND USE OF MULTI-YEAR METRICS FOR PERFORMANCE,  AND
THAT  IT WILL REPORT DATA AS REQUESTED OR REQUIRED TO THE DEPARTMENT AND
THE STATE INITIATIVE COMMITTEE.
  8. PERFORMANCE METRICS: ANTICIPATED ANNUAL AND CUMULATIVE OUTCOMES  OF
THE  PROJECT IN TERMS OF JOBS, INVESTMENT, AND ECONOMIC AND OTHER ACTIV-
ITY, STATED IN A SPECIFIC AND MEASURABLE  WAY  THAT  IS  ACHIEVABLE  AND
REALISTIC  WITHIN  THE PROJECT TIME FRAME AND THAT CAN BE QUANTIFIED AND
COMPARED TO OTHER DATA FOR ANALYSIS.
  9. ADVISORY COUNCIL: AN INDEPENDENT ADVISORY COUNCIL THAT INCLUDES ONE
OR MORE EXECUTIVE OFFICERS OF FIRMS THAT HAVE BEEN CREATED FROM RESEARCH
AT THE SCHOOL, AND INDIVIDUALS WITH EXPERTISE IN  AREAS  APPROPRIATE  TO
THE  SPECIFIC  DEVELOPMENTAL  SECTOR  OR CONCENTRATION OF CLIENTS, OR TO
BIOMEDICAL AND BIOTECHNOLOGICAL RESEARCH AND  DEVELOPMENT,  AND  TO  THE
MISSION AND GOAL OF THE PROJECT.
  S  446.  REVIEW  AND  APPROVAL OF APPLICATIONS. REVIEW OF APPLICATIONS
SHALL TAKE PLACE IN TWO STAGES, FIRST BY THE PEER REVIEW  COMMITTEE  AND
THEN  BY  THE  STATE INITIATIVE COMMITTEE WHICH SHALL HAVE SOLE POWER TO
APPROVE AN APPLICATION, AS FOLLOWS:
  1. THE COMMISSIONER SHALL REVIEW APPLICATIONS AND PLANS  RECEIVED  FOR
COMPLETENESS, AND THEN FORWARD THEM TO THE PEER REVIEW COMMITTEE, AND TO
THE  STATE  INITIATIVE  COMMITTEE FOR ITS REVIEW AND FINAL DETERMINATION
ONLY AFTER REVIEW BY THE  PEER  REVIEW  COMMITTEE.  NO  PLANS  SHALL  BE
APPROVED  BY  THE  STATE INITIATIVE COMMITTEE UNTIL REVIEWED BY THE PEER
REVIEW COMMITTEE. NO PLANS SHALL BE FORWARDED  BY  THE  COMMISSIONER  TO
EITHER COMMITTEE THAT REQUIRE THAT FUNDS MADE AVAILABLE PURSUANT TO THIS
ARTICLE  SHALL BE DIRECTLY OR INDIRECTLY UTILIZED FOR RESEARCH INVOLVING
HUMAN REPRODUCTIVE CLONING.
  2. THE MEMBERS OF THE PEER REVIEW COMMITTEE SHALL BE SELECTED  BY  THE
CHAIR  AND  THE  CO-CHAIR OF THE STATE INITIATIVE COMMITTEE USING GUIDE-
LINES APPROVED BY  SUCH  COMMITTEE,  WHICH  SHALL  INCLUDE  REQUIREMENTS
CONCERNING EXPERTISE AND AVOIDANCE OF CONFLICT OF INTEREST. IF NECESSARY

S. 6555                             6

AND  DEEMED  APPROPRIATE BY THE STATE INITIATIVE COMMITTEE, PLANS MAY BE
SUBMITTED BLIND TO THE PEER REVIEW PANEL.
  3. THE PEER REVIEW COMMITTEE SHALL REVIEW AND SCORE PLANS BASED ON THE
FOLLOWING CRITERIA:
  (A) SCIENTIFIC AND TECHNICAL MERIT;
  (B)  THE  LEVEL  OF SCIENTIFIC KNOWLEDGE, TECHNICAL CAPABILITY, AND/OR
CLINICAL PRACTICE AND OTHER NECESSARY  PLAN  COMPONENTS  THAT  WOULD  BE
REQUIRED TO BE HOUSED AT THE MEDICAL SCHOOL, INCLUDING IMPROVEMENTS THAT
MAY BE ANTICIPATED BASED ON THE PLAN;
  (C)  THE  SUITABILITY  OF  PRINCIPAL INVESTIGATORS, COLLABORATORS, AND
OTHER RESEARCHERS TO THE PROJECT, INCLUDING THE EXPERIENCE AND  TRAINING
OF STAFF AND COLLABORATORS;
  (D)  THE ONGOING RECORD OF ACCOMPLISHMENTS AND INTEGRATED EXPERTISE AT
THE SCHOOL OR AS PROPOSED IN THE PLAN,  INCLUDING  LEADERSHIP  APPROACH,
GOVERNANCE AND ORGANIZATIONAL STRUCTURE;
  (E) PLANS FOR PROTECTION OF HUMAN SUBJECTS;
  (F) THE SCIENTIFIC ENVIRONMENT IN WHICH THE WORK WILL BE DONE;
  (G)  APPROPRIATENESS  OF  INSTITUTIONAL  SUPPORT, EQUIPMENT, AND OTHER
PHYSICAL RESOURCES; AND
  (H) SUCH OTHER INFORMATION AS THE  STATE  INITIATIVE  COMMITTEE  SHALL
REQUIRE.
  4.  AN  APPLICATION RECEIVING A LOW SCORE BY THE PEER REVIEW COMMITTEE
BASED ON THE CRITERIA IN SUBDIVISION THREE OF  THIS  SECTION,  OR  WHICH
LACKS  SIGNIFICANT  AND SUBSTANTIAL MERIT, OR WHICH PRESENTS IN THE VIEW
OF THE PEER REVIEW COMMITTEE SERIOUS ETHICAL PROBLEMS IN THE  PROTECTION
OF  HUMAN  SUBJECTS  FROM RESEARCH RISKS, OR OTHER SERIOUS ETHICAL PROB-
LEMS, SHALL BE DESIGNATED  NOT  RECOMMENDED  FOR  FURTHER  CONSIDERATION
(NRFC).  SUCH  PLANS  SHALL  BE  RETURNED TO THE COMMISSIONER AND BY THE
COMMISSIONER TO THE STATE INITIATIVE COMMITTEE WITH WRITTEN  RECOMMENDA-
TIONS  FOR  CHANGE.  THE  STATE  INITIATIVE  COMMITTEE SHALL REVIEW SUCH
RECOMMENDATIONS, AND MAY ADD TO THEM, PRIOR TO  RETURNING  THEM  TO  THE
APPLICANTS.
  5.  THE  STATE  INITIATIVE  COMMITTEE  WILL  REVIEW ALL ASPECTS OF THE
APPLICATIONS AND PLANS SUBMITTED TO IT AND RECOMMEND CHANGES AND  DETER-
MINE  FUNDING  LEVELS AND SOURCES TO BE INCLUDED IN THE UNIFIED CONTRACT
IF THE APPLICATION IS APPROVED.  THE COMMITTEE WILL TAKE INTO  CONSIDER-
ATION  THE  REVIEW OF THE PEER REVIEW COMMITTEE, AND SHALL NOT APPROVE A
PLAN DESIGNATED BY THE PEER REVIEW  COMMITTEE  AS  NOT  RECOMMENDED  FOR
FURTHER  CONSIDERATION  (NRFC),  BUT  MAY  ADD ITS OWN COMMENTS PRIOR TO
RETURNING IT TO THE APPLICANT MEDICAL SCHOOL.
  6. THE STATE INITIATIVE COMMITTEE SHALL REVIEW AND SCORE  PLANS  BASED
ON  THE  CATEGORIES REQUIRED IN THE APPLICATION PURSUANT TO SECTION FOUR
HUNDRED FORTY-FIVE OF THIS ARTICLE, AND INCLUDING THE FOLLOWING:
  (A) THE ANTICIPATED EFFECTIVENESS OF THE  PLAN  AS  EVIDENCED  BY  THE
EXISTENCE  OF  AVAILABLE RESOURCES DEDICATED TO THE PLAN AND THE COMMIT-
MENT OF THE MEDICAL SCHOOL;
  (B) THE ABILITY OF THE APPLICANT TO UNDERTAKE AND COMPLETE  THE  PLAN,
THE  FEASIBILITY OF MEETING THE METRICS AND GOALS PROVIDED FOR DETERMIN-
ING THE SUCCESS OF THE PLAN, THE DURABILITY AND  REACH  OF  THE  COLLAB-
ORATIONS AND RELATIONSHIPS WITH INCUBATORS AND HOTSPOTS, AND WITH START-
UP-NY PROJECTS, AND WITH PRIVATE AND OTHER PUBLIC COLLABORATORS;
  (C)  THE ABILITY OF THE APPLICANT TO PROVIDE THE NECESSARY DATA FOR AN
EFFECTIVE EVALUATION OF THE PROJECT; AND
  (D) SUCH OTHER OBJECTIVE AND MEASURABLE CRITERIA AS  SHALL  BE  DETER-
MINED BY THE COMMITTEE.

S. 6555                             7

  7.  PLANS  DESIGNATED  AS  NOT  RECOMMENDED  FOR FURTHER CONSIDERATION
(NRFC) BY THE PEER REVIEW COMMITTEE OR THE  STATE  INITIATIVE  COMMITTEE
SHALL  BE  RETURNED  TO THE APPLICANT WITH RECOMMENDATIONS FOR AMENDMENT
AND MAY BE RESUBMITTED IN THE FOLLOWING YEAR.
  8.  INSOFAR  AS  PRACTICABLE, IN APPROVING APPLICATIONS, THE COMMITTEE
SHALL SEEK TO PROVIDE A GEOGRAPHICALLY BALANCED DISTRIBUTION OF NEW YORK
STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND  ENTRE-
PRENEURSHIP INITIATIVE CENTERS AMONG THE REGIONS OF THE STATE.
  9.  NOT MORE THAN FORTY PERCENT OF FUNDS APPROPRIATED PURSUANT TO THIS
ARTICLE SHALL BE USED FOR ANY SINGLE PROJECT.
  10. AS SOON AS PRACTICABLE AFTER APPROVING AN APPLICATION THE  COMMIT-
TEE  SHALL  NOTIFY THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER
OF THE ASSEMBLY OF ITS APPROVAL.  SUCH NOTIFICATION SHALL  IDENTIFY  THE
RECIPIENT AND STATE THE PROPOSED LOCATION, THE ESTIMATED PROJECT FUNDING
AND AWARD AND A BRIEF DESCRIPTION OF THE PROJECT.
  S  447.  WAIVER IN CERTAIN CASES. TO PROMOTE INNOVATIVE APPROACHES AND
MAXIMIZE EFFECTIVE USE OF PUBLIC MONIES AND THE LIKELIHOOD OF SUCCESS IN
OPERATION OF APPROVED NEW YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL
TRANSLATIONAL  RESEARCH  AND  ENTREPRENEURSHIP  INITIATIVE  CENTERS, AND
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMMISSIONER OR DIRECTOR
OF ANY STATE AGENCY THAT IS A MEMBER OF THE STATE  INITIATIVE  COMMITTEE
MAY  WAIVE,  UPON APPLICATION BY SUCH CENTER AND SUBJECT TO THE APPROVAL
OF THE STATE INITIATIVE COMMITTEE AND THE DIRECTOR OF THE BUDGET, ANY OF
SUCH AGENCY'S REGULATORY REQUIREMENTS THAT  MAY  IMPEDE  THE  SUCCESSFUL
IMPLEMENTATION  OF A PROJECT UNDERTAKEN PURSUANT TO THE APPROVED PLAN BY
THE CENTER, PROVIDED THAT SUCH  WAIVER  IS  CONSISTENT  WITH  APPLICABLE
STATE  AND  FEDERAL  STATUTES  AND WILL NOT IMPAIR THE GENERAL HEALTH OR
WELFARE OF THE PEOPLE RECEIVING SERVICES UNDER SUCH PROJECT  OR  OTHERS.
SUCH  COMMISSIONER OR DIRECTOR SHALL BE AUTHORIZED, IN CONSULTATION WITH
THE DIRECTOR OF THE BUDGET, TO IMPOSE APPROPRIATE ALTERNATIVE  STANDARDS
IN PLACE OF ANY WAIVED REQUIREMENTS.
  S  448.  OPERATION  AND REDESIGNATION OF NEW YORK STATE BIOMEDICAL AND
BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP  INITIATIVE
CENTERS. IN ADDITION TO ANY OTHER REQUIREMENTS OF THIS ARTICLE, A CENTER
WILL AGREE TO MEET ALL REQUIREMENTS CONCERNING EXECUTION AND IMPLEMENTA-
TION  OF  AN  APPROVED PLAN FOR ITS PROJECT, TO MAINTAIN BEST PRACTICES,
AND TO REPORT DATA AS REQUESTED OR REQUIRED TO THE DEPARTMENT AND/OR THE
STATE INITIATIVE COMMITTEE USING APPROPRIATE  CONFIDENTIALITY  PROTOCOLS
IN  THE  CASE  OF  BUSINESS  OR  TRADE SECRETS. SUCH DATA WILL INCLUDE A
DEMONSTRATION OF THE SUCCESS IN MEETING PROJECT  PLAN  GOALS,  INCLUDING
YEAR BY YEAR COMPARISON OF RESEARCH ACTIVITY AND COMMERCIALIZATION THER-
EOF,  FIRM  FINANCING  AND  EQUITY CAPITAL RAISED, PROVIDED OR LEVERAGED
FROM ALL SOURCES, PERSONNEL EMPLOYED ON THE PROJECT, AND JOBS CREATED BY
AND THROUGH THE PROJECT. THE DEPARTMENT SHALL DESIGN SIMPLIFIED FORMS TO
AID IN THE SUBMISSION OF SUCH DATA, WHICH  MAY  BE  SUBMITTED  ELECTRON-
ICALLY.
  THE  COMMISSIONER  ON  BEHALF  OF THE STATE INITIATIVE COMMITTEE SHALL
EVALUATE AND REPORT ON  THE  OPERATIONS  OF  THE  CENTER  USING  METHODS
INCLUDING  BUT NOT LIMITED TO SITE VISITS, REPORTS PURSUANT TO SPECIFIED
INFORMATION, AND REVIEW EVALUATIONS. IF THE STATE  INITIATIVE  COMMITTEE
IS  UNSATISFIED  WITH  THE PROGRESS OF A PROJECT, THE COMMISSIONER SHALL
NOTIFY SUCH CENTER OF THE RESULTS OF THE EVALUATIONS AND ANY FINDINGS OF
DEFICIENCIES IN ITS OPERATIONS AND SHALL COOPERATE WITH SUCH  CENTER  TO
REMEDY  SUCH FINDINGS IN A TIMELY MANNER. SUCH EVALUATIONS SHALL INCLUDE
PEER REVIEW AND SHALL TAKE PLACE NO LESS THAN ONCE EVERY THREE YEARS  OR
MORE  OFTEN  FOR  ANY  INDIVIDUAL  CENTER AT THE DISCRETION OF THE STATE

S. 6555                             8

INITIATIVE COMMITTEE. SUCH PEER REVIEW SHALL RESULT IN A WRITTEN  REPORT
THAT  INCLUDES  PROGRAMMATIC  AND  FISCAL  EVALUATION OF THE PROJECT AND
RECOMMENDATIONS FOR IMPROVEMENT. MEMBERS OF SUCH PEER REVIEW GROUP SHALL
BE CHOSEN IN THE SAME WAY AND HAVE THE SAME QUALIFICATIONS AS MEMBERS OF
THE PEER REVIEW COMMITTEE.
  FAILURE  TO  ABIDE  BY  THE  REQUIREMENTS OF THIS SECTION OR TO CURE A
DEFAULT AFTER REVIEW AND AGREEMENT WITH THE STATE  INITIATIVE  COMMITTEE
SHALL  RESULT  IN  DISQUALIFICATION  AS  A NEW YORK STATE BIOMEDICAL AND
BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP  INITIATIVE
CENTER.
  A  CENTER  SHALL  BE  DEEMED REDESIGNATED UPON APPLICATION EVERY THREE
YEARS UNLESS IT SHALL RECEIVE A NEGATIVE EVALUATION FROM THE PEER REVIEW
GROUP FOLLOWED BY A DETERMINATION BY THE STATE INITIATIVE COMMITTEE  NOT
TO REDESIGNATE THE CENTER BASED ON SUCH EVALUATION AND FAILURE TO REMEDY
DEFECTS  OR  A  DETERMINATION  BY THE COMMITTEE THAT SUCH DEFECTS ARE OF
SUCH A NATURE OR ARE OF SUCH EXTENT THAT THEY CANNOT BE REMEDIED.
  S 449. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM.  THE SCIENTIFIC
RESEARCH AND DISCOVERY BANK PROGRAM IS  HEREBY  CREATED,  WHOSE  PURPOSE
SHALL  BE  TO  PROVIDE FUNDS TO CENTERS FOR RECRUITMENT AND RETENTION OF
SCIENTISTS AND RESEARCHERS NECESSARY TO THE SUCCESSFUL IMPLEMENTATION OF
PROJECTS APPROVED PURSUANT TO THIS ARTICLE. MONIES SHALL BE MADE  AVAIL-
ABLE  TO CENTERS FROM FUNDS APPROPRIATED PURSUANT TO THIS ARTICLE, AFTER
REVIEW AND UPON APPROVAL BY THE STATE INITIATIVE COMMITTEE PURSUANT TO A
PLAN SUBMITTED BY A CENTER. SUCH PLAN MUST DEMONSTRATE TO THE  SATISFAC-
TION OF THE COMMITTEE THAT THE CENTER HAS OR WILL HAVE DURING THE PERIOD
OF  THE  GRANT  A  MATCH OF TWO NON-STATE DOLLARS FOR EVERY STATE DOLLAR
PROVIDED PURSUANT TO THIS SUBDIVISION. PLANS MUST SHOW THE TIME-LINE AND
USAGE OF FUNDS REQUIRED AND SUCH  OTHER  INFORMATION  AS  THE  COMMITTEE
SHALL  REQUIRE,  INCLUDING:  THE  NEED  FOR SUCH FUNDS AND THE MANNER IN
WHICH SUCH AWARD WOULD ENHANCE THE RESEARCH CAPABILITIES OF  THE  CENTER
NECESSARY  TO SUCCESSFUL IMPLEMENTATION OF THE PROJECT PLAN; THE ABILITY
OF THE RESEARCHER TO LEVERAGE AND ATTRACT FEDERAL FUNDS, VENTURE CAPITAL
AND PRIVATE INDUSTRY FUNDS; AND THE WILLINGNESS OF  SUCH  RESEARCHER  TO
PURSUE  ENTREPRENEURIAL  ENTERPRISES  RESULTING  IN  NEW BUSINESS OR THE
EXPANSION OF EXISTING BUSINESS IN THIS STATE. THE COMMITTEE SHALL ESTAB-
LISH A SCHEDULE FOR PAYMENT OF THE AWARD.  FUNDS  PROVIDED  PURSUANT  TO
THIS SECTION MUST BE APPLIED DIRECTLY TO NECESSARY EXPENSES FOR RECRUIT-
MENT  AND  RETENTION  OF SCIENTISTS AND RESEARCHERS, AND MAY NOT BE USED
FOR INDIRECT OR OTHER OVERHEAD COSTS OF THE MEDICAL SCHOOL.
  S 450. UNIFIED CONTRACT. THE  COMMISSIONER  ON  BEHALF  OF  THE  STATE
INITIATIVE  COMMITTEE  SHALL  ENTER  INTO  A  UNIFIED CONTRACT WITH EACH
CENTER. THE PROVISIONS OF SUCH CONTRACT SHALL INCLUDE, BUT NOT BE LIMIT-
ED TO: A DESCRIPTION OF  PROJECT  SERVICES  AND  ACTIVITIES;  THE  PLAN;
ALLOWABLE PROJECT COSTS; SPECIFIC SOURCES OF FUNDS THAT WILL SUPPORT THE
APPROVED  COSTS,  INCLUDING  GOVERNMENTAL  AND NON-GOVERNMENTAL FUNDS OR
REVENUES THAT ARE PROPOSED TO BE USED IN SUPPORT OF PROJECT  COSTS,  AND
THE  ALLOCATION  OF  COSTS  BY  FUNDING SOURCE. THE FORM OF SUCH UNIFIED
CONTRACT SHALL BE DEVELOPED IN CONSULTATION WITH  THE  DIVISION  OF  THE
BUDGET  AND  THE  DEPARTMENT  OF  AUDIT  AND CONTROL. THE COMPTROLLER IS
AUTHORIZED PURSUANT TO A CERTIFICATE  OF  ALLOCATION  SUBMITTED  BY  THE
DIVISION  OF  THE  BUDGET TO INTERCHANGE OR TRANSFER FROM APPROPRIATIONS
MADE TO THE AGENCIES OF THE COMMITTEE OR  ANY  OTHER  APPROPRIATION,  AS
APPROPRIATE,  SUCH AMOUNTS AS MAY BE REQUIRED TO FULFILL THE OBLIGATIONS
OF THE STATE PURSUANT TO SUCH UNIFIED  CONTRACTS  FOR  PAYMENT  OF  SUCH
OBLIGATIONS.  THE  DIVISION  OF THE BUDGET SHALL PROVIDE THE CHAIRMEN OF
THE SENATE FINANCE COMMITTEE AND THE ASSEMBLY WAYS AND  MEANS  COMMITTEE

S. 6555                             9

WITH  QUARTERLY  REPORTS  OF  ALL INTERCHANGES AND TRANSFERS WHICH OCCUR
PURSUANT TO THIS SUBDIVISION.
  1.  ALLOWABLE COSTS FOR A PROJECT SHALL INCLUDE, BUT NOT BE LIMITED TO
COSTS REASONABLY INCURRED FOR:
  (A) PREPARATION OF THE PLAN;
  (B) ACTIVITIES AS APPROVED IN THE PROJECT APPLICATION;
  (C) EVALUATION OF THE APPROVED PROJECT; AND
  (D) RENOVATIONS TO EXISTING STRUCTURES AS MAY BE NEEDED IN FURTHERANCE
OF THE PLAN, EXCEPT THAT IN NO CASE SHALL  THE  STATE  SUPPORT  OF  SUCH
COSTS  EXCEED  EITHER  TWENTY-FIVE  PERCENT OF THE AMOUNT TO BE PROVIDED
PURSUANT TO THE CONTRACT OR FIFTY PERCENT OF THE TOTAL RENOVATION COSTS,
WHICHEVER IS LESS.
  2. FUNDING MADE AVAILABLE THROUGH THE CONTRACT SHALL NOT  BE  USED  TO
SUPPLANT OTHER FUNDS.
  3.  IN ADDITION TO THE FOREGOING REQUIREMENTS, A CENTER SHALL AGREE TO
DEDICATE ALL FUNDS FROM ANY SUPPORT RECEIVED PURSUANT TO  THIS  ARTICLE,
EXCEPT  FOR FUNDS RECEIVED PURSUANT TO PARAGRAPH D OF SUBDIVISION ONE OF
THIS SECTION, TO OPERATIONS OF THE CENTER WITHOUT DEDUCTIONS  FOR  OVER-
HEAD,  INDIRECT  COSTS,  OR FACILITIES AND ADMINISTRATION CHARGES OF THE
MEDICAL SCHOOL, AND TO LIMIT TO TEN PERCENT OR LESS  THE  ALLOCATION  OF
FUNDS  RECEIVED  THROUGH  THIS  ARTICLE  TO  ADMINISTRATIVE COSTS OF THE
CENTER.
  S 451. REPORT. THE COMMISSIONER ON BEHALF OF THE COMMITTEE SHALL ISSUE
AN ANNUAL REPORT TO THE PUBLIC, BEGINNING AT THE CONCLUSION OF THE FIRST
FULL CALENDAR YEAR AFTER THIS ARTICLE SHALL HAVE BECOME LAW, WHICH  SETS
FORTH  THE ACTIVITIES UNDERTAKEN PURSUANT TO THIS ARTICLE, INCLUDING THE
NAMES OF APPROVED PLANS AND  THE  CENTER  SPONSORS,  AND  THE  FOCUS  OF
RESEARCH  ACTIVITIES  IN  EACH  SUCH PLAN; THE METRICS FOR EACH APPROVED
PLAN; GRANTS AWARDED, GRANTS IN PROGRESS, AND RESEARCH AND  ENTREPRENEU-
RIAL  ACCOMPLISHMENTS;  FINANCING  FROM  EXTERNAL  SOURCES  FOR BRINGING
PRODUCTS TO MARKET; THE PROJECTED NUMBER OF JOBS  AND  COMPANIES  TO  BE
CREATED PURSUANT TO APPROVED PLANS AND THE ACTUAL NUMBER CREATED; ACTIV-
ITY UNDER THE DISCOVERY BANK CREATED PURSUANT TO THIS ARTICLE; A SUMMARY
OF  FUNDING PROVIDED PURSUANT TO THE UNIFIED CONTRACTS EXECUTED PURSUANT
TO THIS ARTICLE; WAIVERS GRANTED  PURSUANT  TO  THE  AUTHORITY  PROVIDED
UNDER  THIS  ARTICLE  AND ACTIVITY UNDERTAKEN UNDER SUCH WAIVER; AND THE
NUMBER OF AND REASONS WHY  PROJECTS  WERE  DEEMED  NOT  RECOMMENDED  FOR
FURTHER CONSIDERATION.
  S  3.  This  act  shall  take  effect  on  the first of September next
succeeding the date on which it shall have become a law.