S T A T E   O F   N E W   Y O R K
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                                   6317
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              March 12, 2021
                                ___________
 
 Introduced   by  M.  of  A.  STERN,  RODRIGUEZ,  FAHY,  LAVINE,  STIRPE,
   J. RIVERA, BENEDETTO, GOODELL, SMITH -- Multi-Sponsored by -- M. of A.
   PALMESANO -- read once and referred to the Committee on Small Business
 
 AN ACT to amend the urban development corporation act,  in  relation  to
   establishing the New York state innovation voucher program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Short title. This act shall be known and may  be  cited  as
 the "New York state innovation voucher program act".
   §  2.  Section  1 of chapter 174 of the laws of 1968, constituting the
 New York state urban development corporation act, is amended by adding a
 new section 16-bb to read as follows:
   § 16-BB. NEW YORK STATE INNOVATION VOUCHER PROGRAM. (1) PROGRAM ESTAB-
 LISHED. THERE IS HEREBY ESTABLISHED A NEW YORK STATE INNOVATION  VOUCHER
 PROGRAM  UNDER  THE PURVIEW OF THE EMPIRE STATE DEVELOPMENT CORPORATION.
 SUCH PROGRAM SHALL PROVIDE SMALL BUSINESSES WITH ACCESS TO RESEARCH  AND
 DEVELOPMENT  BY  COLLEGES  AND UNIVERSITIES, GOVERNMENT LABORATORIES AND
 PUBLIC RESEARCH INSTITUTES IN ORDER TO ASSIST  SUCH  BUSINESSES  IN  THE
 CREATION  OF  INNOVATIVE PRODUCTS OR SERVICES THAT PROVIDE JOB RETENTION
 AND EXPANSION.
   (2) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
 SHALL HAVE THE FOLLOWING MEANINGS:
   (A) "ELIGIBLE RECIPIENT" SHALL MEAN SMALL  BUSINESSES  AS  DEFINED  IN
 SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
   (B)  "ELIGIBLE  PROJECTS"  FOR  VOUCHERS  AUTHORIZED  PURSUANT TO THIS
 SECTION SHALL MEAN RESEARCH AND DEVELOPMENT PROJECTS  LEADING  TO  INNO-
 VATION OF PRODUCTS OR SERVICES. ELIGIBLE COSTS SHALL INCLUDE, BUT NOT BE
 LIMITED TO, THE DEVELOPMENT OF PROTOTYPES, FIELD TESTING, ENGINEERING OR
 OTHER  PROJECTS AUTHORIZED BY THE CORPORATION THAT ENHANCE INNOVATION OF
 PRODUCTS OR SERVICES THAT RESULT IN JOB GROWTH  AND  BUSINESS  EXPANSION
 WITHIN THE STATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD00962-01-1

 A. 6317                             2
 
   (C) "INELIGIBLE EXPENSE" SHALL MEAN REIMBURSEMENT OF TIME SPENT BY THE
 EMPLOYEES  OR OWNERS OF THE SMALL BUSINESS; GRANT OR VOUCHER APPLICATION
 COSTS; ROUTINE AND READILY-PREDICTABLE  BUSINESS  EXPENSES;  DESIGN  AND
 PRODUCTION  OF  MARKETING  OR  ADVERTISING MATERIALS; BASIC PROFESSIONAL
 SERVICES  SUCH  AS  ONGOING  ROUTINE  ACCOUNTING, TAX OR LEGAL SERVICES;
 BUILDING OR EQUIPMENT CONSTRUCTION COSTS;  FINANCING  FEES;  TRAVEL  AND
 ENTERTAINMENT  COSTS;  HOSPITALITY  COSTS; AND ANY OTHER EXPENSES DEEMED
 INELIGIBLE BY THE CORPORATION.
   (D) "RESEARCH AND DEVELOPMENT PARTNER" SHALL MEAN COLLEGES,  UNIVERSI-
 TIES,  STATE  AND  NATIONAL GOVERNMENT LABORATORIES, AND PUBLIC RESEARCH
 INSTITUTES IN NEW YORK STATE.
   (E) "EXCEPTIONALLY  INNOVATIVE  PROJECTS"  SHALL  MEAN  PROJECTS  THAT
 DEMONSTRATE A POTENTIAL FOR SUBSTANTIAL ECONOMIC GROWTH AND JOB DEVELOP-
 MENT  IN  AN  EMERGING  TECHNOLOGY FIELD, AS DEFINED BY THE CORPORATION,
 THROUGH THE PROMULGATION OF RULES AND REGULATIONS, AS EMERGING TECHNOLO-
 GY FIELDS FROM THOSE FIELDS LISTED IN  SUBPARAGRAPHS  ONE,  TWO,  THREE,
 FOUR  AND FIVE OF PARAGRAPH (B) OF SUBDIVISION ONE OF SECTION THIRTY-ONE
 HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW.
   (3) SELECTION OF ELIGIBLE RECIPIENTS. (A) ELIGIBLE RECIPIENTS SHALL BE
 SELECTED BY THE CORPORATION BASED ON THE STRENGTH  OF  THEIR  PROPOSALS,
 INCLUDING  EVALUATION OF THE INNOVATIVE NATURE OF THE PROJECT, ITS TECH-
 NICAL FEASIBILITY, COMMERCIAL VIABILITY AND THE POTENTIAL IMPACT ON  THE
 RETENTION AND CREATION OF NEW JOBS.
   (B)  SMALL  BUSINESSES  MAY IDENTIFY DESIRED OR POTENTIAL RESEARCH AND
 DEVELOPMENT PARTNERS AS PART OF  THEIR  APPLICATIONS.  ADVANCE  DETERMI-
 NATIONS OF THE BUSINESS' RESEARCH AND DEVELOPMENT PARTNER SHALL NOT BE A
 REQUIREMENT FOR RECEIPT OF AN INNOVATION VOUCHER.
   (C) APPLICATIONS SHALL BE JUDGED BY AN ADVISORY COMMITTEE, OR REGIONAL
 ADVISORY  COMMITTEE,  APPOINTED  BY  THE  PRESIDENT  OF  THE CORPORATION
 CONSISTING OF MEMBERS OF THE HIGHER EDUCATION, SCIENCE  AND  TECHNOLOGY,
 AND BUSINESS COMMUNITIES.
   (4)  RESEARCH AND DEVELOPMENT PARTNERS. THE CORPORATION SHALL IDENTIFY
 A LIST OF POTENTIAL RESEARCH AND DEVELOPMENT PARTNERS IN NEW YORK  STATE
 THAT  HAVE  APPROPRIATE  FACILITIES  AND RESOURCES TO PARTICIPATE IN THE
 INNOVATION VOUCHER PROGRAM AND  ARE  WILLING  TO  ACCEPT  VOUCHERS  FROM
 ELIGIBLE RECIPIENTS FOR PAYMENT OF THEIR SERVICES. THE LIST OF POTENTIAL
 RESEARCH  AND  DEVELOPMENT  PARTNERS  SHALL  BE  DISPLAYED ON THE CORPO-
 RATION'S WEBSITE, AND SHALL BE REVIEWED AND REVISED AT LEAST QUARTERLY.
   (5) VOUCHERS AND MATCHING FUNDS. (A) THE CORPORATION, UPON THE  RECOM-
 MENDATION  OF THE ADVISORY COMMITTEE, MAY AWARD VOUCHERS UP TO TEN THOU-
 SAND DOLLARS FOR EACH ELIGIBLE PROJECT. UPON THE RECOMMENDATION  OF  THE
 ADVISORY  COMMITTEE, THE CORPORATION MAY AWARD A VOUCHER IN AN AMOUNT UP
 TO FIFTY THOUSAND DOLLARS WHERE A PROJECT IS DEEMED EXCEPTIONALLY  INNO-
 VATIVE. CRITERIA FOR DETERMINATION OF AWARDS SHALL BE ESTABLISHED BY THE
 CORPORATION  IN  RULES  AND REGULATIONS. ELIGIBLE RECIPIENTS SHALL MATCH
 THE VALUE OF THE VOUCHER ON A DOLLAR-FOR-DOLLAR BASIS  AND  SHALL  APPLY
 SUCH AMOUNT TO THE VOUCHER-FUNDED PROJECT.
   (B) IF AN APPLICANT IS APPROVED BY THE CORPORATION FOR A VOUCHER BASED
 ON  THE  MERITS OF AN ELIGIBLE PROJECT, SUCH ELIGIBLE RECIPIENT SHALL BE
 AUTHORIZED TO ENTER  INTO  A  WORKING  AGREEMENT  WITH  THE  APPROPRIATE
 RESEARCH  AND  DEVELOPMENT  PARTNER. THE ELIGIBLE RECIPIENT SHALL NOTIFY
 THE CORPORATION OF THE RESEARCH AND DEVELOPMENT PARTNER COLLABORATION TO
 BE FORMED TO FURTHER RESEARCH AND DEVELOPMENT. PAYMENT  OF  THE  VOUCHER
 SHALL  BE  MADE  BASED  ON A PAYMENT STRUCTURE ESTABLISHED BY THE CORPO-
 RATION IN RULES AND REGULATIONS PROMULGATED PURSUANT TO SECTION FOUR  OF
 THIS ACT TO ADMINISTER A COLLABORATION.

 A. 6317                             3

   (6)  OUTREACH.  TO  ENSURE MAXIMUM AWARENESS OF THE INNOVATION VOUCHER
 PROGRAM, THE CORPORATION SHALL DEVELOP AND IMPLEMENT A PLAN  TO  DISSEM-
 INATE  INFORMATION  AND MATERIALS TO SMALL BUSINESSES, INCLUDING BUT NOT
 LIMITED TO MINORITY- AND WOMEN-OWNED ENTERPRISES AND VETERAN-OWNED BUSI-
 NESSES.
   (7) REPORTS. THE CORPORATION SHALL POST QUARTERLY REPORTS STATING: THE
 NUMBER  AND  MONETARY  VALUE  OF  VOUCHERS ISSUED; THE AMOUNT OF PROGRAM
 FUNDING USED FOR THE VOUCHERS; THE RECIPIENT OF  THE  THE  VOUCHERS  AND
 RESEARCH  AND  DEVELOPMENT PARTNER; AND ANY OTHER APPROPRIATE METRICS TO
 MEASURE THE SUCCESS OF THE PROGRAM, INCLUDING BUT NOT  LIMITED  TO,  THE
 NUMBER  OF JOBS CREATED OR RETAINED, THE NUMBER OF PATENTS PRODUCED AS A
 RESULT OF THE COLLABORATION, A DESCRIPTION OF THE  ECONOMIC  DEVELOPMENT
 IMPACT AND SUCH OTHER INFORMATION AS THE CORPORATION MAY DEEM NECESSARY.
 SUCH  QUARTERLY  REPORTS  SHALL  ALSO INCLUDE A LIST OF CURRENT ADVISORY
 COMMITTEE MEMBERS AND A LIST OF CURRENT RESEARCH AND  DEVELOPMENT  PART-
 NERS APPROVED BY THE CORPORATION.
   (8) FUNDING. THE CORPORATION IS AUTHORIZED, WITHIN AVAILABLE APPROPRI-
 ATIONS  IN  THE  EMPIRE  STATE  DEVELOPMENT FUND ESTABLISHED PURSUANT TO
 SECTION SIXTEEN-M OF THIS ACT OR FROM ANY OTHER FUNDS  APPROPRIATED,  TO
 MAKE INNOVATIVE VOUCHERS AVAILABLE TO ELIGIBLE RECIPIENTS.
   §  3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the
 laws of 1968, constituting the New York state urban  development  corpo-
 ration act, is amended by adding a new paragraph (o) to read as follows:
   (O)  VOUCHERS  TO ELIGIBLE ENTITIES AS SET FORTH IN SECTION SIXTEEN-BB
 OF THIS ACT TO SUPPORT THE NEW YORK STATE INNOVATION VOUCHER PROGRAM  TO
 ASSIST SMALL BUSINESS ACCESS TO RESEARCH AND DEVELOPMENT BY COLLEGES AND
 UNIVERSITIES,  GOVERNMENT LABORATORIES AND PUBLIC RESEARCH INSTITUTES TO
 SUPPORT SUCH BUSINESSES  IN  THE  CREATION  OF  INNOVATIVE  PRODUCTS  OR
 SERVICES.
   §  4.  Rules and regulations. The empire state development corporation
 is authorized to promulgate rules and regulations in accordance with the
 state administrative procedure act that are  necessary  to  fulfill  the
 purposes  of  this  act.  Such  rules and regulations shall be completed
 within one hundred eighty days after the effective date of this act.
   § 5. This act shall take effect on the one hundred eightieth day after
 it shall have become a law; provided, however, that  the  amendments  to
 subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of
 1968, constituting the New York state urban development corporation act,
 made  by  section  three  of this act shall not affect the expiration of
 such section and shall be deemed to expire therewith.   Effective  imme-
 diately, the addition, amendment and/or repeal of any rule or regulation
 necessary  for the implementation  of this act on its effective date are
 authorized to be made and completed on or before such effective date.