§ 209-t. College applied research and technology (CART) program. In
order to encourage greater collaboration between private industry,
universities and colleges within the state in the development and
application of new technologies, the office is authorized to designate
such technological areas as the office identifies as having significant
potential for economic growth in New York state, or in which the
application of new technologies could significantly enhance the
productivity and stability of New York state businesses. Such
designations shall be made in accordance with the standards and criteria
set forth in subdivision two of this section. Colleges so designated
shall be eligible for support from the office in the manner provided for
in subdivision three of this section, and for such additional support as
may otherwise be provided by law.

1. As used in this section:

(a) "College applied research and technology center" or "CART" means a
college or college-affiliated research institute or a consortium of such
institutions, designated by the office, which conducts a continuing
program of basic and applied research, development, and technology
transfer in one or more technological areas, in collaboration with and
through the support of private business and industry; and

(b) "Applicant" means a college or college-affiliated research
institute or a consortium of such institutions which request designation
as a CART center in accordance with such requirements as are established
by the office for this purpose. For purposes of this section, applicant
shall not include any college or university that has a center for
advanced technology pursuant to subdivision three of section thirty-one
hundred two-b of the public authorities law.

2. The office shall:

(a) identify technological areas for which a CART center should be
designated, including technological areas that are related to industries
with significant potential for economic growth and development in New
York state, and technological areas that are related to the enhancement
of productivity in various industries located in New York state;

(b) establish criteria that applicants shall satisfy for designation
as a CART, including, but not limited to the following:

(i) an established record of research, development and instruction in
the area or areas of technology involved;

(ii) the capacity to conduct research and development activities in
collaboration with business and industry;

(iii) the capacity to secure substantial private and other
governmental funding for the proposed college or college-affiliated
research institute or a consortium of such institutions, in amounts at
least fifty percent of the total of support sought from the state;

(iv) the ability and willingness to cooperate with other institutions
in the state in conducting research and development activities, and in
disseminating research results;

(v) the ability and willingness to work with technical and community
colleges in the state to enhance the quality of technical education in
the area or areas of technology involved;

(vi) the ability and willingness to cooperate with the office and
other economic development agencies in promoting the growth and
development in New York state of industries based upon or benefiting
from the area or areas of technology involved;

(c) establish such requirements as it deems appropriate for the
format, content and filing of applications for designation as CART
centers; and

(d) establish such procedures as it deems appropriate for the
evaluation of applications for designation as a college applied research
and technology center, including the establishment of peer review panels
composed of nationally recognized experts in the technological areas and
industries to which the application is related.

3. (a) From such funds as may be appropriated for this purpose by the
legislature, the office may provide financial support, through contracts
or other means, to designated college applied research and technology
centers in order to enhance and accelerate the development of such
centers. Funds received pursuant to this subdivision may be used for
purchase of equipment and fixtures, employment of faculty and support
staff, provision of graduate fellowships, and other purposes approved by
the office, but may not be used for capital construction. In each case,
the amount provided by the office to a center shall be matched by
commitments of support from private and governmental, other than state,
sources in accordance with the following:

(i) for the academic year in which it is first funded as a designated
center, and the four subsequent years, the amount provided by the office
to a center shall be matched fifty percent by the center; and

(ii) upon a finding by the office that a technological area has
continued significant potential for enhancing economic growth in New
York state, or the application of technologies in the area could
significantly enhance the productivity and stability of New York state
businesses, the office shall initiate a redesignation process in
accordance with subdivision two of this section. Such redesignation
process shall be initiated by the office in such a manner that not more
than one-third of the centers in existence at the time of redesignation
shall become due for such redesignation at the same time.

(1) In the event a new center is selected in the redesignation
process, the office shall provide funds to such new center in accordance
with the funding match requirements set forth in this paragraph.

(2) In the event a previously designated center is redesignated in the
same area of technology, which redesignation is effective for the sixth
academic year following the first academic year of both designation and
funding, then, in that year and in each year thereafter, the office
shall provide funds of up to three hundred fifty thousand dollars to be
matched fifty percent by the center, amounts in excess of three hundred
fifty thousand dollars shall be matched seventy-five percent by the
center.

(3) In the event a currently designated center is not selected in the
redesignation process for an additional term, or upon a finding by the
office that the area of advanced technology does not have significant
potential for enhancing economic growth in New York state, or upon a
finding that the application of technologies in that area would not
significantly enhance the productivity and stability of New York state
businesses, then the office shall, in the fifth academic year following
such center's first both designation and funding, which year shall be
the final year of funding for such center, provide an amount of up to
two hundred fifty thousand dollars.

(b) Continued funding of the operations of each center shall be based
upon a showing that: the center continues to comply with the criteria
established by the office pursuant to paragraph (b) of subdivision two
of this section; a demonstration of assistance to small businesses in
New York state through research, technology transfer or other means as
approved by the office; compliance with the rules, regulations and
guidelines of the office; and, compliance with any contracts between the
office and the designated applied research center.

(c) Each center shall report on its activities to the office in a
manner and according to the schedule established by the office, and
shall provide such additional information as the office may require. The
office shall evaluate center operations using methods such as site
visits, reporting of specified information and peer review evaluations
using experts in the field of technology in which the center was
designated. The office shall notify each center of the results of its
evaluations and findings of deficiencies in the operation of such center
or its research, education, or technology transfer activities and shall
work with such centers to remedy such findings. If such factors are not
remedied, the office may withdraw the state funding support, in whole or
in part, or withdraw the center designation.

(d) In order to encourage that the results of center research benefit
New York state, designation and continued funding of each center shall
be contingent upon each center's establishing within its licensing
guidelines the following: after payment of the inventor's share, a
reduced payment due to the university of any royalty, income or other
consideration earned from the license or sale of intellectual property
rights created or developed at, or through the use of, the facilities of
the center by any person or entity if the manufacturing or use resulting
from such intellectual property rights occurs within New York state. The
office shall promulgate rules and regulations regarding the provisions
of the licensing guidelines described herein as they apply to such
reduced payment, and such provisions shall be subject to the approval of
the office.

4. From such funds as may be appropriated for this purpose by the
legislature, the office may provide grants to any one college or
college-affiliated research institution for purposes of planning and
program development aimed at enabling such college or college-affiliated
research institution to qualify for designation as a center. Such grants
shall be awarded on a competitive basis, and shall be available only to
those applicants which, in the judgment of the office, may reasonably be
expected to be designated as centers. No applicant shall receive more
than one such grant.

5. (a) From such funds as may be appropriated for the purpose of
incentive grants or other funds which may be available from the office
to enhance center activities in areas of crucial interest in the state's
economic development, the office may provide grants, on a competitive
basis, to centers for projects including, but not limited to, those
which:

(i) explore new technologies with commercial application conducted
jointly by two or more centers or a center and non-center university,
college or community college;

(ii) are aimed at enhancing or accelerating the process of bringing
new products, particularly those under development by new small
businesses, to the marketplace; or

(iii) increase technology transfer projects with the state's mature
manufacturing industries in applying technology in their manufacturing
processes or for new product development.

(b) State support for incentive grants may be matched on an individual
basis by the office, which may consider the type of project and the
availability of amounts from private, university and governmental, other
than state, sources.

6. (a) The office shall make a biannual report of the CART program to
the governor and the legislature not later than September first of every
other year. Such report shall include, but not be limited to, the
results of an evaluation of each center by the office, a description of
the achievement of each center, any deficiencies in the operation of
each center or its research, education and technology transfer
activities, remedial actions recommended by the office, remedial actions
taken by each center, a description of the small business assistance
provided by each center, a description of any incentive grant program
awarded a grant by the office and the achievements of such program, and
the amount of financial assistance provided by the office and the level
of matching funds provided by each center and the uses of such monies.

(b) Bi-annual reports shall include a discussion of any fields of
technology that the office has identified as having significant
potential for economic growth or improved productivity and stability of
New York state businesses and in which collaboration with a center for
advanced technology is encouraged.