S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9258--A
 
                           I N  A S S E M B L Y
 
                             February 9, 2022
                                ___________
 
 Introduced by M. of A. KELLES -- read once and referred to the Committee
   on  Small  Business  --  committee  discharged,  bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the economic development law, in relation to  establish-
   ing  a  matching  grant program for certain small businesses receiving
   funding under the federal small business innovation  research  program
   or the small business technology transfer program
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The economic development law is amended  by  adding  a  new
 section 138-a to read as follows:
   §  138-A.  SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS TECH-
 NOLOGY TRANSFER GRANT PROGRAM. 1. THE COMMISSIONER, IN CONSULTATION WITH
 THE DIVISION FOR SMALL-BUSINESS, SHALL  ESTABLISH  A  GRANT  PROGRAM  TO
 PROVIDE  FUNDS  TO  SMALL  BUSINESSES WHO HAVE BEEN AWARDED PHASE ONE OR
 PHASE TWO GRANTS UNDER THE FEDERAL SMALL  BUSINESS  INNOVATION  RESEARCH
 PROGRAM  OR  THE SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM. SUCH GRANTS
 SHALL BE AWARDED BASED ON A COMPANY'S  POTENTIAL  FOR  COMMERCIALIZATION
 AND JOB GROWTH.
   2.  THE  GRANT  PROGRAM  ESTABLISHED PURSUANT TO THIS SECTION SHALL BE
 STAGED OVER A PERIOD OF THREE YEARS. THE FUNDING AMOUNTS FOR SUCH  GRANT
 PROGRAM SHALL BE AS FOLLOWS:
   (A)  FOR  SMALL  BUSINESSES  THAT  HAVE BEEN AWARDED PHASE ONE FUNDING
 UNDER THE FEDERAL SMALL BUSINESS  INNOVATION  RESEARCH  PROGRAM  OR  THE
 SMALL  BUSINESS  TECHNOLOGY  TRANSFER  PROGRAM,  THE AMOUNT SHALL BE ONE
 HUNDRED THOUSAND DOLLARS IN YEAR ONE, TWO HUNDRED  THOUSAND  DOLLARS  IN
 YEAR TWO, AND FIVE HUNDRED THOUSAND DOLLARS IN YEAR THREE.
   (B)  FOR  SMALL  BUSINESSES  THAT  HAVE BEEN AWARDED PHASE TWO FUNDING
 UNDER THE FEDERAL SMALL BUSINESS  INNOVATION  RESEARCH  PROGRAM  OR  THE
 SMALL  BUSINESS  TECHNOLOGY  TRANSFER  PROGRAM,  THE AMOUNT SHALL BE ONE
 HUNDRED THOUSAND DOLLARS IN YEAR ONE, TWO HUNDRED  THOUSAND  DOLLARS  IN
 YEAR TWO, AND FIVE HUNDRED THOUSAND DOLLARS IN YEAR THREE.
   3. (A) IN THE FIRST YEAR OF THE PROGRAM, TWENTY SMALL BUSINESSES SHALL
 BE AWARDED GRANTS OF ONE HUNDRED THOUSAND DOLLARS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD14539-04-2
 A. 9258--A                          2
 
   (B)  IN  THE SECOND YEAR OF THE PROGRAM, TEN SMALL BUSINESSES SHALL BE
 CHOSEN FROM THE COMPANIES THAT WERE AWARDED A GRANT IN THE  FIRST  YEAR,
 TO RECEIVE GRANTS IN THE AMOUNT OF TWO HUNDRED THOUSAND DOLLARS.
   (C)  IN  THE THIRD YEAR OF THE PROGRAM, FOUR SMALL BUSINESSES SHALL BE
 CHOSEN FROM THE COMPANIES THAT WERE AWARDED A GRANT IN THE SECOND  YEAR,
 TO  RECEIVE  GRANTS OR EQUITY, DEPENDING ON THE SITUATION, IN THE AMOUNT
 OF FIVE HUNDRED THOUSAND DOLLARS.
   4. SUCH FUNDS AWARDED PURSUANT TO THIS SECTION SHALL BE USED TO  EXPE-
 DITE  COMMERCIALIZATION AND GENERALLY USED TO COVER EXPENSES NOT ALLOWED
 UNDER THE FEDERAL SMALL BUSINESS  INNOVATION  RESEARCH  PROGRAM  OR  THE
 SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM, INCLUDING BUT NOT LIMITED TO
 PATENTS AND MARKETING STUDIES IN SALES EFFORTS.
   5.  SUCH  FUNDS  SHALL BE AWARDED ON CONDITION THAT THE SMALL BUSINESS
 RECIPIENT REMAINS HEADQUARTERED IN THE STATE  FOR  AT  LEAST  TWO  YEARS
 FOLLOWING  THE SUCCESSFUL COMMERCIALIZATION OF THE BUSINESS'S PRODUCT OR
 PRODUCTS. ANY SMALL  BUSINESS  THAT  HAS  RECEIVED  FUNDING  UNDER  THIS
 PROGRAM  THAT  IS  NOT HEADQUARTERED IN THE STATE FOR AT LEAST TWO YEARS
 FOLLOWING THE SUCCESSFUL COMMERCIALIZATION OF THE BUSINESS'S PRODUCT  OR
 PRODUCTS  SHALL RETURN ALL GRANT AWARDS TO THE STATE. IF THE SMALL BUSI-
 NESS CEASES OPERATIONS BEFORE TWO YEARS AFTER THE  COMMERCIALIZATION  OF
 ITS PRODUCT OR PRODUCTS, SUCH BUSINESS SHALL BE ELIGIBLE FOR A WAIVER OF
 THIS CLAWBACK PROVISION, AS DETERMINED BY THE COMMISSIONER, IN CONSULTA-
 TION WITH THE DIVISION OF SMALL BUSINESS.
   6. THE COMMISSIONER, IN CONSULTATION WITH THE DIVISION FOR SMALL BUSI-
 NESS,  SHALL  ESTABLISH  THE  FORM  AND MANNER IN WHICH APPLICATIONS FOR
 GRANT AWARDS SHALL BE SUBMITTED AND SHALL ESTABLISH GUIDELINES  FOR  THE
 GRANT  PROGRAM. THE DEPARTMENT SHALL REVIEW EACH APPLICATION FOR COMPLI-
 ANCE WITH THE ELIGIBILITY CRITERIA AND OTHER REQUIREMENTS SET  FORTH  IN
 THE  PROGRAM  GUIDELINES ESTABLISHED BY THE COMMISSIONER. THE DEPARTMENT
 MAY APPROVE OR REJECT EACH APPLICATION OR MAY RETURN AN APPLICATION  FOR
 MODIFICATIONS, IF NECESSARY.
   §  2. This act shall take effect one year after it shall have become a
 law. Effective immediately, 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.