S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    322
 
                        2025-2026 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 8, 2025
                                ___________
 
 Introduced  by  Sen.  RYAN S -- read twice and ordered printed, and when
   printed to be committed to the Committee on Corporations,  Authorities
   and Commissions
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00431-01-5
              

 S. 322                              2
 
 PRODUCTS  OR  SERVICES  THAT RESULT IN JOB GROWTH AND BUSINESS EXPANSION
 WITHIN THE STATE.
   (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-
 S. 322                              3
 
 RATION  IN RULES AND REGULATIONS PROMULGATED PURSUANT TO SECTION FOUR OF
 THIS ACT TO ADMINISTER A COLLABORATION.
   (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 (p) to read as follows:
   (P) 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.