senate Bill S6860

Establishes the New York incubator network

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 30 / Mar / 2012
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 05 / Jun / 2012
    • REPORTED AND COMMITTED TO FINANCE

Summary

Establishes a statewide network of university affiliated business incubators to be known as the New York incubator network.

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Bill Details

See Assembly Version of this Bill:
A10019
Versions:
S6860
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Economic Development Law
Laws Affected:
Add ยง361, Ec Dev L

Sponsor Memo

BILL NUMBER:S6860

TITLE OF BILL:
An act
to amend the economic development law, in
relation to establishing the New
York incubator network

PURPOSE:
Creates the New York academic incubator network, allowing the Division
of Science, Technology and Innovation (d.b.a. NYSTAR) to provide
financial support to Department of Commerce designated business
incubators affiliated with a New York State sited university or
college.

SUMMARY OF PROVISIONS:
Section 1: Legislative intent.

Section 2: Creates a new section 361 of the Economic Development Law
by creating the New York Incubator Network, allowing NYSTAR to
designate a college or university, college or university-affiliated
research institute or a consortium of such institutions as a
certified academic incubator and allows the Division to provide
financial assistance for operating purposes.

Section 3: Fiscal Statement.

Section 4: Effective Date.

JUSTIFICATION:
Business incubators can play an integral role in New York State's
innovation economy by providing start-up and early-stage companies
with the resources and technical know-how to become viable,
independent companies. Incubators provide peer-to-peer learning and
facilitate collaborative business development through leveraging of
resources, client networking and implementing industry best practices.

While many New York State incubators receive start-up funding through
federal grants, local community assistance and other State programs,
there are currently no programs that provide operating support that
incubators can depend on from year to year to develop operational
capability as well as provide necessary continuity in terms of
business development services for companies that are tenants of the
incubator.

NYSTAR will establish eligibility criteria for admission to the New
York Incubator Network based on an incubator's ability to conform to
industry best practices, leverage private and other non-state
government funding, and collaborate with other local, regional and
statewide economic development partners. Designated incubators

would receive matching grants from NYSTAR for qualifying operational
expenses.

LEGISLATIVE HISTORY:
This is a new bill.

FISCAL IMPLICATIONS:
The bill authorizes ESDC to expand up to $250,000 in support
of the network.

EFFECTIVE DATE:
Immediately.

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

                                  6860

                            I N  S E N A T E

                             March 30, 2012
                               ___________

Introduced  by  Sen.  GOLDEN -- 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 the New York incubator network

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

  Section  1. Legislative intent. The legislature hereby recognizes that
supporting a statewide network of university or college affiliated busi-
ness incubators, selected on a competitive basis that maintain not  only
physical  facilities, but also most current industry best practice busi-
ness development services is a cost  effective  approach  to  supporting
start-up  and  early  stage  companies  and helping the state's creative
entrepreneurs successfully transition technological  breakthroughs  with
commercial  potential  from  the  laboratory  to  the  marketplace. This
investment in university affiliated  business  incubators  will  support
regional  development  and local economic diversification, job creation,
and the retention of the state's vast resources of intellectual capital.
  S 2. The economic development law is amended by adding a  new  section
361 to read as follows:
  S  361.  NEW  YORK INCUBATOR NETWORK. THE COMMISSIONER, IN COOPERATION
WITH THE DIVISION OF SCIENCE, TECHNOLOGY AND INNOVATION IS AUTHORIZED TO
ACCEPT APPLICATIONS AND DESIGNATE INCUBATORS AS PART  OF  THE  NEW  YORK
ACADEMIC  INCUBATOR  NETWORK. SUCH DESIGNATIONS SHALL BE MADE IN ACCORD-
ANCE WITH THE STANDARDS AND CRITERIA SET FORTH  IN  SUBDIVISION  TWO  OF
THIS  SECTION.  INCUBATORS  SO  DESIGNATED SHALL BE ELIGIBLE FOR SUPPORT
FROM THE URBAN DEVELOPMENT CORPORATION, AND FOR SUCH ADDITIONAL  SUPPORT
AS MAY OTHERWISE BE PROVIDED BY LAW.
  1.  AS USED IN THIS SECTION: (A) "INCUBATOR" MEANS AN ACADEMIC INCUBA-
TOR FACILITY AS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (E) OF  SUBDI-
VISION TWELVE-G OF SECTION TWO HUNDRED TEN OF THE TAX LAW;
  (B) "APPLICANT" MEANS A COLLEGE OR UNIVERSITY, OR COLLEGE OR UNIVERSI-
TY-AFFILIATED  RESEARCH  INSTITUTE OR FOUNDATION PROVIDING A BASE FOR AN
INCUBATOR; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11827-03-2

S. 6860                             2

  (C) "DIVISION" MEANS THE DIVISION OF  SCIENCE,  TECHNOLOGY  AND  INNO-
VATION.
  2. THE DIVISION SHALL:
  (A) IDENTIFY AREAS FOR WHICH INCUBATORS 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 THROUGHOUT NEW YORK STATE;
  (B)  AID IN THE ESTABLISHMENT OF INCUBATORS AT ACCREDITED UNIVERSITIES
AND COLLEGES THROUGHOUT THE STATE TO THE EXTENT POSSIBLE IN AREAS  WHERE
THERE IS NOT ALREADY SIGNIFICANT SUPPORT FOR BUSINESS INCUBATION;
  (C)  PURSUANT  TO  THE  STANDARDS  ADHERING TO AN INCUBATOR, ESTABLISH
CONGRUENT CRITERIA THAT APPLICANTS MUST SATISFY FOR  DESIGNATION  AS  AN
INCUBATOR  FOR THE PURPOSES OF A DESIGNATION AS A MEMBER OF THE NETWORK,
INCLUDING, BUT NOT LIMITED TO THE FOLLOWING:
  (I) AN ESTABLISHED RECORD OF, OR PLAN TO CONFORM  TO,  BEST  PRACTICES
INCLUDING CLEAR POLICIES FOR BUSINESS ENTRY AND GRADUATION;
  (II)  A  COMPREHENSIVE  SUITE  OF  ENTREPRENEURIAL MENTORING PRACTICES
INCLUDING ADVISING, COACHING, PLANNING AND CONNECTING TO FUNDING  SOURC-
ES;
  (III)  THE  CAPACITY TO SECURE SUBSTANTIAL PRIVATE AND OTHER NON-STATE
GOVERNMENTAL FUNDING FOR THE PROPOSED INCUBATOR,  NOT  INCLUDING  DIRECT
SUPPORT  FROM THE SPONSORING ACADEMIC INSTITUTION OR RELATED FOUNDATION,
IN AMOUNTS AT LEAST EQUAL TO THE TOTAL OF SUPPORT SOUGHT FROM THE  STATE
OR ITS DIVISIONS;
  (IV)  THE  ABILITY  AND  WILLINGNESS  TO  COOPERATE  WITH OTHER LOCAL,
REGIONAL AND STATEWIDE  ECONOMIC  DEVELOPMENT  ORGANIZATIONS,  STATEWIDE
BUSINESS  INCUBATOR ASSOCIATIONS, BUSINESS SUPPORT NETWORKS, VENTURE AND
ANGEL CAPITAL FUNDING SOURCES, AND WORKFORCE DEVELOPMENT ADVOCATES; AND
  (V) THE CAPACITY TO COLLABORATE WITH BUSINESS AND INDUSTRY INDIVIDUAL-
LY AND AS PART OF A STATEWIDE INCUBATOR ASSOCIATION;
  (D) ESTABLISH SUCH  REQUIREMENTS  AS  IT  DEEMS  APPROPRIATE  FOR  THE
FORMAT,  CONTENT  AND  FILING OF APPLICATIONS FOR DESIGNATION AS INCUBA-
TORS;
  (E) ESTABLISH SUCH PROCEDURES AS IT DEEMS APPROPRIATE FOR  THE  EVALU-
ATION  OF  APPLICATIONS  FOR  DESIGNATION  AS  INCUBATORS, INCLUDING THE
ESTABLISHMENT OF A REVIEW PANEL COMPOSED OF STATEWIDE RECOGNIZED EXPERTS
IN BUSINESS INCUBATION;
  (F) UPON THE APPROVAL OF AN APPLICATION BY THE COMMISSIONER, CONFER AN
INCUBATOR DESIGNATION  UPON  A  SUCCESSFUL  APPLICANT  UNLESS  OTHERWISE
REVOKED BY THE COMMISSIONER IN CONSULTATION WITH THE DIVISION; AND
  (G)  THE  COMMISSIONER  SHALL  APPROVE  AND PROMULGATE RULES AND REGU-
LATIONS FOR SELECTION OF INCUBATORS AND SHALL  MAKE  FINAL  DESIGNATIONS
REGARDING  ALL MATTERS RELATING TO THE STATUS OF AN APPLICANT OR INCUBA-
TOR.
  3. (A) (I) FROM SUCH FUNDS AS MAY BE APPROPRIATED OR OTHERWISE AUTHOR-
IZED FOR THIS PURPOSE BY THE LEGISLATURE, THE URBAN  DEVELOPMENT  CORPO-
RATION  SHALL  PROVIDE  FINANCIAL  SUPPORT,  THROUGH  CONTRACTS OR OTHER
MEANS, TO ENHANCE AND ACCELERATE THE  DEVELOPMENT  OF  SUCH  INCUBATORS.
FUNDS  RECEIVED PURSUANT TO THIS SUBDIVISION MAY BE USED FOR PURCHASE OF
EQUIPMENT AND FIXTURES, EMPLOYMENT OF DIRECT SERVICE STAFF AND PROVISION
OF INTERNSHIPS SERVING THE  INCUBATOR,  BUT  NOT  PRIMARILY  SERVING  AS
EMPLOYEES  OF  MEMBER  FIRMS  LEASING  SPACE  IN AN INCUBATOR, AND OTHER
PURPOSES APPROVED BY THE DIVISION, BUT  MAY  NOT  BE  USED  FOR  CAPITAL
CONSTRUCTION OF REAL PROPERTY.
  (II) BEGINNING IN THE FOURTH ACADEMIC YEAR FOLLOWING THE ACADEMIC YEAR
IN  WHICH  AN INCUBATOR IS FIRST DESIGNATED, THE INCUBATOR SHALL PRESENT

S. 6860                             3

TO THE COMMISSIONER A REPORT CATALOGING ITS REVENUE  AND  EXPENSES,  THE
NUMBER  OF PRIVATE SECTOR FIRMS THAT HAVE LEASED SPACE IN THE INCUBATOR,
THE NUMBER OF COMPANIES THAT HAVE GRADUATED FROM AN  INCUBATOR,  WHETHER
SUCH  GRADUATING  COMPANIES  HAVE  REMAINED  IN NEW YORK STATE, AND BEST
ESTIMATES AS TO THE NUMBER OF FULL TIME EQUIVALENT POSITIONS CREATED  BY
INCUBATOR  MEMBER  COMPANIES  AND  THEIR SUCCESSORS FOR A PERIOD OF FIVE
YEARS UPON GRADUATION. THE  DIVISION  SHALL  EVALUATE  SUCH  INCUBATOR'S
PERFORMANCE  ACCORDING  TO  THE ABOVE LISTED CRITERIA, AND SHALL PRESENT
ITS FINDINGS TO THE COMMISSIONER WHO SHALL MAKE A BINDING RECOMMENDATION
WHETHER SUCH INCUBATOR SHALL RETAIN  ITS  STATUS  AS  A  MEMBER  OF  THE
NETWORK.
  (III)  THE  DIVISION  CAN  RECOMMEND,  SUBJECT  TO THE APPROVAL OF THE
COMMISSIONER, ADDITIONAL MEMBERS TO THE NETWORK ACCORDING TO THE  CRITE-
RIA ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
  (B)  ADDITIONAL  FUNDING OF THE OPERATIONS OF EACH INCUBATOR RECIPIENT
IN THE NETWORK SHALL BE BASED UPON A SHOWING THAT: THE INCUBATOR CONTIN-
UES TO COMPLY WITH THE  CRITERIA  ESTABLISHED  BY  THE  COMMISSIONER  IN
CONSULTATION  WITH THE DIVISION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
TWO OF THIS SECTION; A DEMONSTRATION OF  ASSISTANCE  TO  EMERGING  BUSI-
NESSES  IN  NEW  YORK  STATE; COMPLIANCE WITH THE RULES, REGULATIONS AND
GUIDELINES OF THE URBAN DEVELOPMENT CORPORATION, IN PARTICULAR, AND  THE
DIVISION;  AND  COMPLIANCE WITH ANY CONTRACTS BETWEEN THE URBAN DEVELOP-
MENT CORPORATION AND THE DESIGNATED INCUBATOR.
  (C) EACH INCUBATOR SHALL REPORT ON AN ANNUAL BASIS ON  ITS  ACTIVITIES
TO  THE  COMMISSIONER  IN  A MANNER AND ACCORDING TO THE SCHEDULE ESTAB-
LISHED BY THE DIVISION, AND SHALL PROVIDE SUCH ADDITIONAL INFORMATION AS
THE COMMISSIONER MAY REQUIRE.  THE  DIVISION  SHALL  EVALUATE  INCUBATOR
OPERATIONS  USING  METHODS  SUCH  AS SITE VISITS, REPORTING OF SPECIFIED
INFORMATION AND REVIEW  EVALUATIONS  USING  EXPERTS  IN  ENTREPRENEURIAL
DEVELOPMENT.  IF  THE  DIVISION  IS  UNSATISFIED WITH THE PROGRESS OF AN
INCUBATOR MEMBER IT SHALL NOTIFY SUCH INCUBATOR OF THE  RESULTS  OF  ITS
EVALUATIONS  AND FINDINGS OF DEFICIENCIES IN THE OPERATION OF SUCH INCU-
BATOR AND SHALL ALLOW AND COOPERATE WITH SUCH INCUBATORS  TO REMEDY SUCH
FINDINGS IN A TIMELY MANNER. IF  SUCH  FACTORS  ARE  NOT  REMEDIED,  THE
COMMISSIONER  MAY WITHDRAW THE STATE FUNDING SUPPORT, IN PART UNTIL SUCH
DEFICIENCIES ARE REMEDIED, OR IN WHOLE IMMEDIATELY FOLLOWING  THE  WITH-
DRAWAL OF AN INCUBATOR NETWORK DESIGNATION.
  4. BEGINNING NO LATER THAN THE END OF THE FOURTH YEAR OF THE FORMATION
OF  THE  NETWORK,  THE  COMMISSIONER SHALL MAKE A BIANNUAL REPORT OF THE
INCUBATOR NETWORK PROGRAM TO THE GOVERNOR AND THE SPEAKER OF THE  ASSEM-
BLY,  THE  TEMPORARY PRESIDENT OF THE SENATE, THE LEGISLATIVE COMMITTEES
ON ECONOMIC DEVELOPMENT AND TO THE  FISCAL  COMMITTEES  NOT  LATER  THAN
DECEMBER  THIRTY-FIRST  OF  EACH  ENUMERATED  YEAR.    SUCH REPORT SHALL
INCLUDE, BUT NOT BE LIMITED TO, A LIST  OF  IMMEDIATE  PAST  AND  ACTIVE
TENANTS  OF THE INCUBATORS IN THE NETWORK, THE RESULTS OF THE DIVISION'S
EVALUATION OF EACH INCUBATOR, A DESCRIPTION OF THE ACHIEVEMENTS OF  EACH
INCUBATOR, ANY DEFICIENCIES IN THE OPERATION OF EACH INCUBATOR, REMEDIAL
ACTIONS RECOMMENDED BY THE DIVISION, REMEDIAL ACTIONS TAKEN BY THE INCU-
BATOR,  A DESCRIPTION OF BUSINESS ASSISTANCE PROVIDED BY EACH INCUBATOR,
A DESCRIPTION OF ANY EXTERNAL FUNDING ATTRACTED BY THE INCUBATOR,  PART-
NERSHIPS  ENTERED INTO BY THE INCUBATOR, THE AMOUNT OF FINANCIAL ASSIST-
ANCE PROVIDED BY THE STATE, INCLUDING THE URBAN DEVELOPMENT CORPORATION,
AND  THE  LEVEL  OF  MATCHING  FUNDS  PROVIDED  EACH  INCUBATOR,  AND  A
DESCRIPTION OF THE USE OF SUCH MONIES TO THE EXTENT THAT SUCH DISCLOSURE
DOES  NOT  COMPROMISE GENERALLY ACCEPTED BUSINESS CONFIDENTIALITY STAND-
ARDS.

S. 6860                             4

  S 3. During state fiscal year 2012-2013, the urban development  corpo-
ration  is  authorized  to  commit a total of two hundred fifty thousand
dollars in unrestricted  assets  previously  appropriated  or  otherwise
conferred upon the New York state foundation for science, technology and
innovation  pursuant  to  subdivisions  11  and 12 of section 360 of the
economic development law to implement the creation and establishment  of
the New York incubator network.
  S 4. This act shall take effect immediately.

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