S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  6854

                            I N  S E N A T E

                            February 17, 2010
                               ___________

Introduced  by  Sen.  STACHOWSKI  -- read twice and ordered printed, and
  when printed to be committed to the Committee  on  Commerce,  Economic
  Development and Small Business

AN ACT to amend the public authorities law, in relation to certain funds
  used by the center for advanced technology

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Paragraph (a) of subdivision 1 of  section  3102-b  of  the
public  authorities law, as added by chapter 562 of the laws of 1982 and
such section as renumbered by chapter  291  of  the  laws  of  1990,  is
amended to read as follows:
  (a) "center for advanced technology" or "center" means a university or
university-affiliated  research institute or a consortium of such insti-
tutions, designated by  the  foundation,  which  conducts  a  continuing
program  of  basic  and  applied  research,  development, and technology
[transfer] COMMERCIALIZATION in one  or  more  technological  areas,  in
collaboration  with  and  through  the  support  of private business and
industry; and
  S 2. Subdivision 3 of section 3102-b of the public authorities law, as
added by chapter 562 of the laws of 1982, paragraph (a) as  amended  and
paragraphs (b), (c) and (d) as added by chapter 828 of the laws of 1987,
and  such  section  as renumbered by chapter 291 of the laws of 1990, is
amended to read as follows:
  3. (a) From such funds as may be appropriated for this purpose by  the
legislature,  the  foundation  may  provide  financial  support, through
contracts or other means, to designated centers for advanced technology,
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
foundation, but may not be used for capital construction. In each  case,
the  amount  provided  by the foundation to a center shall be matched by
commitments of support from private and governmental  other  than  state
sources [in accordance with the following] PROVIDED THAT:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15457-02-0

S. 6854                             2

  (I)  FUNDS  OR  IN-KIND  RESOURCES  PROVIDED  BY THE PUBLIC OR PRIVATE
UNIVERSITY OF WHICH THE CENTER IS A PART  MAY  BE  COUNTED  TOWARDS  THE
MATCH;
  (II) SUCH MATCH SHALL NOT BE REQUIRED ON A PROJECT-BY-PROJECT BASIS;
  (III)  MATCHING  FUNDS  RECEIVED FROM BUSINESSES WITH NO MORE THAN ONE
HUNDRED EMPLOYEES SHALL COUNT AS DOUBLE THE ACTUAL DOLLAR AMOUNT  TOWARD
THE CENTER'S OVERALL MATCH REQUIREMENT;
  (IV) FUNDS USED BY THE CENTER FOR ANY WORKFORCE DEVELOPMENT ACTIVITIES
REQUIRED BY THE FOUNDATION SHALL NOT BE INCLUDED AS PART OF THE CENTER'S
AWARD  WHEN  DETERMINING  THE  AMOUNT  OF MATCHING FUNDS REQUIRED BY THE
FOUNDATION. SUCH ACTIVITIES SHALL INCLUDE, BUT ARE NOT LIMITED TO, HELP-
ING INCUMBENT WORKERS EXPAND THEIR SKILL  SETS  THROUGH  SHORT  COURSES,
SEMINARS,  AND  WORKSHOPS;  PROVIDING INDUSTRY-DRIVEN RESEARCH ASSISTANT
OPPORTUNITIES FOR STUDENTS, AND AIDING IN THE DEVELOPMENT OF UNDERGRADU-
ATE AND GRADUATE COURSES IN THE CENTER'S TECHNOLOGY FOCUS TO HELP ENSURE
THAT STUDENTS ARE TRAINED TO MEET THE NEEDS OF INDUSTRY;
  (V) CENTERS MAY USE NOT MORE  THEN  TWENTY-FIVE  PERCENT  OF  INDIRECT
COSTS TOWARDS ANY MATCH REQUIREMENTS.
  (B)  THE AMOUNT PROVIDED BY THE FOUNDATION SHALL BE MADE IN ACCORDANCE
WITH THE FOLLOWING:
  (i) for the academic year in which it is first funded as a  designated
center,  and the five subsequent years, the amount provided by the foun-
dation to a center shall be matched equally by the center;
  (ii) beginning in the sixth academic year following the academic  year
in  which  a  center is first funded as a designated center and for each
academic year thereafter, amounts provided by the foundation  of  up  to
seven  hundred  fifty  thousand  dollars shall be matched equally by the
center, amounts in excess of seven hundred fifty thousand dollars  shall
be matched by the center in amounts of at least the percentage set forth
herein:  in  the  sixth year, one hundred twenty percent; in the seventh
year, one hundred forty percent; in the eighth year, one  hundred  sixty
percent;  in  the  ninth  year, one hundred eighty percent; in the tenth
year and each year thereafter, two hundred percent;
  (iii) beginning in the ninth academic year following the academic year
in which a center is first funded as a designated center, the foundation
shall evaluate such center's area of advanced  technology  to  determine
whether  it  has  continued significant potential for enhancing economic
growth in New York, or whether the application of  technologies  in  the
area  could  significantly enhance the productivity and stability of New
York businesses;
  (iv) upon a finding by the foundation that an area of  advanced  tech-
nology has continued significant potential for enhancing economic growth
in  New  York, or that the application of technologies in the area could
significantly enhance the productivity and stability of New  York  busi-
nesses,  the foundation will initiate a redesignation process in accord-
ance with the standards and criteria  set  forth  in  paragraph  (b)  of
subdivision  two and in accordance with paragraphs (c) and (d) of subdi-
vision two of this section.
  (1) In the event a new center is selected in the  redesignation  proc-
ess, the foundation shall provide funds to such new center in accordance
with  the  funding match requirements set forth in subparagraphs (i) and
(ii) of paragraph (a) of this subdivision.
  (2) In the event a previously designated center is redesignated in the
same area of technology, which redesignation is effective for the  tenth
academic  year following the first academic year of both designation and
funding, then, in that year and in each year thereafter, the  foundation

S. 6854                             3

shall  provide funds of up to seven hundred fifty thousand dollars to be
matched equally by the center, amounts in excess of seven hundred  fifty
thousand  dollars  shall be matched by the center in amounts of at least
two hundred percent.
  (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
foundation  that  the  area of advanced technology does not have signif-
icant potential for enhancing economic growth in New  York,  or  upon  a
finding  that  the  application  of  technologies in that area would not
significantly enhance the productivity and stability of New  York  busi-
nesses,  then the foundation shall, in the tenth 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
five hundred thousand dollars.
  [(b)] (C) 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 foundation  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 foundation; EVIDENCE OF PARTNERSHIPS WITH
OTHER  APPROPRIATE ENTITIES TO DEVELOP OUTREACH NETWORKS AND ENSURE THAT
COMPANIES RECEIVE ACCESS TO APPROPRIATE FEDERAL FUNDING  FOR  TECHNOLOGY
DEVELOPMENT  AND  COMMERCIALIZATION  AS  WELL AS NON-RESEARCH ASSISTANCE
SUCH AS GENERAL BUSINESS CONSULTING. APPROPRIATE PARTNERS ARE THOSE WITH
WHICH THE CENTER DEMONSTRATES A RELATIONSHIP THAT ENHANCES AND  ADVANCES
THE  CENTER'S  ABILITY  TO  AID  ECONOMIC  GROWTH IN NEW YORK STATE; AND
compliance with the rules, regulations and guidelines of the foundation;
and, compliance with any contracts between the foundation and the desig-
nated center.
  [(c)] (D) Each center shall report on its activities to the foundation
in a manner and according to the schedule established by the foundation,
and shall provide such additional  information  as  the  foundation  may
require PROVIDED, THAT QUANTIFIABLE ECONOMIC DEVELOPMENT IMPACT MEASURES
ARE  NOT  RESTRICTED TO ANY PERIOD LESS THAN FIVE YEARS AND THAT CENTERS
PROVIDE A FULL DESCRIPTION OF ALL NON-QUANTIFIABLE MEASURES.  The  foun-
dation  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 desig-
nated. The foundation 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] COMMERCIALIZATION
activities and shall work with such centers to remedy such findings.  If
such  factors  are  not  remedied, the foundation may withdraw the state
funding support, in whole or in part,  or  withdraw  the  center  desig-
nation.
  [(d)]  (E)  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
foundation   shall   promulgate  rules  and  regulations  regarding  the
provisions of the licensing guidelines described herein as they apply to

S. 6854                             4

such reduced payment, and  such  provisions  shall  be  subject  to  the
approval of the foundation.
  S  3.  Paragraph  (a) of subdivision 6 of section 3102-b of the public
authorities law, as added by chapter 828 of the laws of  1987  and  such
section  as renumbered by chapter 291 of the laws of 1990, is amended to
read as follows:
  (a) The foundation shall make an annual  report  of  the  centers  for
advanced  technology  program  to  the  governor and the legislature not
later than September first of each year. Such report shall include,  but
not  be  limited  to, the results of the foundation's evaluation of each
center, a description of the achievement of each center,  any  deficien-
cies  in  the  operation  of  each center or its research, education and
technology [transfer]  COMMERCIALIZATION  activities,  remedial  actions
recommended  by the foundation, 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 foun-
dation and the achievements of such program, and the amount of financial
assistance provided by the foundation and the level  of  matching  funds
provided by each center and the uses of such monies.
  S 4. This act shall take effect immediately.