NY State Senate Bill 2023-S1824

Senate Bill S1824

2023-2024 Legislative Session

Establishes 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

download bill text pdf

Current Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 03, 2024	referred to commerce, economic development and small business returned to senate died in assembly
Feb 07, 2023	referred to small business delivered to assembly passed senate
Jan 31, 2023	advanced to third reading
Jan 30, 2023	2nd report cal.
Jan 25, 2023	1st report cal.210
Jan 17, 2023	referred to commerce, economic development and small business

Votes

- Feb 7, 2023 - Floor Vote
  S1824
  
  60
  
  Aye
  
  1
  
  Nay
  
  0
  
  Absent
  
  2
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Feb 7, 2023
      
      aye (60)
      
      Addabbo Jr.
      
      Ashby
      
      Bailey
      
      Borrello
      
      Breslin
      
      Brisport
      
      Canzoneri-Fitzpatrick
      
      Chu
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Fernandez
      
      Gallivan
      
      Gianaris
      
      Gonzalez
      
      Gounardes
      
      Griffo
      
      Harckham
      
      Helming
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Lanza
      
      Liu
      
      Mannion
      
      Martinez
      
      Martins
      
      Mattera
      
      May
      
      Mayer
      
      Murray
      
      Myrie
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Parker
      
      Persaud
      
      Ramos
      
      Rhoads
      
      Rivera
      
      Rolison
      
      Ryan
      
      Sanders Jr.
      
      Scarcella-Spanton
      
      Sepúlveda
      
      Serrano
      
      Stavisky
      
      Stec
      
      Stewart-Cousins
      
      Tedisco
      
      Thomas
      
      Walczyk
      
      Webb
      
      Weber
      
      Weik
      
      nay (1)
      
      Skoufis
      
      excused (2)
      
      Brouk
      
      Salazar
  Jan 25, 2023 - Commerce, Economic Development And Small Business Committee Vote
  S1824
  
  9
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Commerce, Economic Development And Small Business Committee Vote: Jan 25, 2023
      
      aye (9)
      
      Borrello
      
      Chu
      
      Cooney
      
      Fernandez
      
      Helming
      
      Murray
      
      Ramos
      
      Ryan
      
      Sanders Jr.

2023-S1824 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Add §138-a, Ec Dev L
Versions Introduced in 2021-2022 Legislative Session:: S8325

2023-S1824 (ACTIVE) - Summary

Establishes a matching grant program for small businesses receiving phase one or phase two funding under the federal small business innovation research program or the small business technology transfer program to promote commercialization and cover certain expenses.

2023-S1824 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S1824

SPONSOR: RYAN
 
TITLE OF BILL:

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

 
PURPOSE:

To provide a matching grant to small businesses that have received fund-
ing under the federal small business innovation program or the small
business technology transfer program, to ensure their success and
provide for economic development across New York State.

 
SUMMARY OF PROVISIONS:

Section 1 amends economic development law to 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. The grant program shall be staged over three years, providing a
matching grant of one hundred thousand dollars in year one, two hundred
thousand in year two and five hundred thousand, in grants or equity, in
year three. In the first year, twenty small businesses shall be awarded
grants, in the second year ten small businesses shall be awarded grants
selected from the companies that were awarded grants in the first year,
and in the third year, four small businesses shall be awarded grants
selected from the companies that were awarded grants in the second year.
Such funds shall be used to expedite commercialization and generally
used to cover expenses not allowed under the federal small business
innovation program, and shall be awarded only if the small business
recipient remains headquartered in New York for five years following the
successful commercialization of their product or products.

Section 2 provides the effective date.

 
EXISTING LAW:

Section 138 of the Economic Development Law.

 
JUSTIFICATION:

Currently, New York is one of the few states that does not provide a
matching program for federal Small Business Innovation in Research or
the Small Business Technology Transfer program grants received by small
businesses. These grants fund research and development with the poten-
tial for commercialization - a primary way by which small high-tech
businesses finance their operations and engage in growth.  By providing
support to those who have already been approved by the rigorous federal
program, New York can bolster its economic development efforts in
targeted regions and improve the transition from invention to product,
successful commercialization, and job creation. This legislation will
establish a robust Small Business Innovation in Research matching grant
program in New York, and for a modest level of'' funding, funding,
leverage our most promising small businesses across the state. Impor-
tantly, any business receiving these matching grants must remain head-
quartered in New York for at least five years.
 
LEGISLATIVE HISTORY:

None.

 
FISCAL IMPLICATIONS:

Six million annually

 
EFFECTIVE DATE:
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 effec-
tive date are authorized to be made and completed on or before such
effective date.

2023-S1824 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1824
 
                        2023-2024 Regular Sessions
 
                             I N  S E N A T E
 
                             January 17, 2023
                                ___________
 
 Introduced  by  Sen.  RYAN  --  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 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 MATCHING GRANT PROGRAM. 1. THE COMMISSIONER, IN CONSUL-
 TATION WITH THE DIVISION FOR SMALL-BUSINESS, SHALL ESTABLISH A  MATCHING
 GRANT PROGRAM TO PROVIDE FUNDS TO SMALL BUSINESSES WHO HAVE BEEN AWARDED
 PHASE  ONE  OR  PHASE  TWO GRANTS UNDER THE FEDERAL SMALL BUSINESS INNO-
 VATION 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  MATCHING  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03425-02-3
 S. 1824                             2

 
 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.
   (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  FIVE  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 FIVE 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 FIVE 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.

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