NY State Senate Bill 2011-S7290

Senate Bill S7290

2011-2012 Legislative Session

Creates the technology commercialization partnership program and removes the incentive program from the research development program

download bill text pdf

Archive: Last 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 18, 2012	committee discharged and committed to commerce, economic development and small business
May 02, 2012	referred to environmental conservation

2011-S7290 (ACTIVE) - Details

See Assembly Version of this Bill:: A599
Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Add §361, Ec Dev L; amd §§209-p & 209, Exec L
Versions Introduced in Other Legislative Sessions:: 2009-2010: A9469
2013-2014: S2784, A404

2011-S7290 (ACTIVE) - Summary

Creates the technology commercialization partnership program and removes the incentive program from the research development program.

2011-S7290 (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S7290

TITLE OF BILL:
An act
to amend the economic development law and the executive law, in
relation
to creating the technology commercialization partnership program and
removing the incentive program from the research development program

PURPOSE OR GENERAL IDEA OF BILL:
To create a fund for the purposes of
assisting in the collaboration between the private sector and the
state's academic research institutions to commercialize technologies
in New York.

SUMMARY OF SPECIFIC PROVISIONS:
The Division of Science, Technology,
and Innovation would designate competitively selected Technology
Commercialization Partnerships consisting of New York State academic
research institutions, including universities, Centers for Advanced
Technology, and Centers of Excellence. The Division would then make
grants to the Partnerships in amounts between five hundred thousand
and one million dollars. Each Partnership would then make technology
commercialization awards on a competitive basis for the purpose of
assisting the development of commercially promising research
discoveries in New York State in collaboration with technology-based

economic development organizations.
Awards would go to researchers at New York State academic research
institutions working in collaboration with a private sector entity
for the purpose of commercializing the research; entrepreneurs
seeking assistance from New York State academic research
institutions; and existing companies with fewer than 250 employees
working with researchers at New York. State academic research
institutions. The awards could be used for such things as laboratory
equipment related to the project;
designing, prototyping, and testing; and incorporation-, patent- and
license-related and market research expenses. Partnerships would be
required to report annually to the Division on the use of funds and
outcomes including job creation, and the Division would be required
to annually provide a summary and evaluation of the reports submitted
by the Partnerships as well as an evaluation of the performance of
the Technology Development Partnership Fund.

EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER:
This fund would
replace the existing incentive program within the Division. Section
209-p of the executive law is amended to reflect the elimination of
the incentive program.

JUSTIFICATION:
There is a need for early stage commercialization
assistance in New York State. State-sponsored research has supported
the invention of numerous ideas and products that could greatly benefit
society, but many of these inventions are never commercialized because
New York universities, entrepreneurs at or associated with these
universities, and many small business owners in New York State often


do not have the resources or experience to develop their scientific
discoveries beyond the conceptual stage. Such assistance is
frequently not available from market sources, such as venture
capitalists and banks, at such an early stage of product development.
A program of state assistance is needed to enable the successful
commercialization of promising inventions and technologies. By
assisting entrepreneurs to "bridge the gap" from having an idea to
creating a commercialized product, the State will help to spur job
growth and economic activity in New York State.

Furthermore, the brilliant ideas created in our universities and other
research institutions would become available for widespread public
benefit.

PRIOR LEGISLATIVE HISTORY:
Similar to A.390A of 2007-08 and A.251A of 2008-09.

FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
None expected.

EFFECTIVE DATE:
Sixty days following enactment.

2011-S7290 (ACTIVE) - Bill Text download pdf

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

                                  7290

                            I N  S E N A T E

                               May 2, 2012
                               ___________

Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Environmental Conservation

AN ACT to amend the economic development law and the executive  law,  in
  relation  to  creating  the  technology  commercialization partnership
  program and removing the incentive program from the research  develop-
  ment 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 361 to read as follows:
  S 361. TECHNOLOGY COMMERCIALIZATION PARTNERSHIP PROGRAM. 1.  THE TECH-
NOLOGY  COMMERCIALIZATION  PARTNERSHIP  PROGRAM IS HEREBY CREATED WITHIN
THE DIVISION OF SCIENCE, TECHNOLOGY AND INNOVATION FOR THE  PURPOSES  OF
ASSISTING  IN THE COLLABORATION BETWEEN PRIVATE SECTOR COMPANIES AND THE
STATE'S ACADEMIC RESEARCH INSTITUTIONS TO COMMERCIALIZE TECHNOLOGIES  IN
NEW YORK.
  2.  FUNDS APPROPRIATED FOR THIS PROGRAM SHALL BE MADE AVAILABLE BY THE
DIVISION PURSUANT TO A COMPETITIVE REQUEST FOR PROPOSAL PROCESS TO TECH-
NOLOGY COMMERCIALIZATION  PARTNERSHIPS  CONSISTING  OF  NEW  YORK  STATE
ACADEMIC  RESEARCH  INSTITUTIONS, INCLUDING BUT NOT LIMITED TO UNIVERSI-
TIES, CENTERS FOR ADVANCED TECHNOLOGY, AND  CENTERS  OF  EXCELLENCE,  IN
COLLABORATION WITH TECHNOLOGY-BASED ECONOMIC DEVELOPMENT ORGANIZATIONS.
  (A) THE DIVISION SHALL DESIGNATE TECHNOLOGY COMMERCIALIZATION PARTNER-
SHIPS BASED ON THE FOLLOWING CRITERIA:
  (I) EXPERIENCE IN EVALUATING THE POTENTIAL OF A COMMERCIALIZED PRODUCT
OR  PROCESS  AND IN WORKING COLLABORATIVELY WITH RELEVANT PARTIES IN THE
LAB TO MARKET CONTINUUM;
  (II) A PROVEN TRACK RECORD IN BRINGING TECHNOLOGIES TO MARKET;
  (III) EXISTING CAPACITY TO COMPLETE THE  NECESSARY  DUE  DILIGENCE  IN
REVIEWING REQUESTS FOR AWARDS; AND
  (IV)  A  WELL-ESTABLISHED  PROCESS  TO  BE  USED  IN  EVALUATING AWARD
PROPOSALS AND ADMINISTERING THE AWARD.
  (B) THE DIVISION SHALL MAKE  GRANTS  TO  TECHNOLOGY  COMMERCIALIZATION
PARTNERSHIPS  IN  AMOUNTS  BETWEEN FIVE HUNDRED THOUSAND AND ONE MILLION

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

                                                           LBD03283-04-2

S. 7290                             2

DOLLARS.  EACH SUCH PARTNERSHIP SHALL MATCH SUCH GRANTS ON A  ONE-TO-ONE
BASIS. ELIGIBLE MATCHING FUNDS SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (I) COMPANY CASH;
  (II) FEDERAL FUNDS;
  (III)  APPLICANT  SUPPORT  INCLUDING SALARIES AND FRINGE BENEFIT COSTS
PAID BY THE APPLICANT; AND
  (IV) THE FAIR MARKET VALUE OF NEW OR PRE-OWNED DONATED EQUIPMENT.
  (C) EACH TECHNOLOGY COMMERCIALIZATION PARTNERSHIP SHALL MAKE TECHNOLO-
GY COMMERCIALIZATION AWARDS ON A COMPETITIVE BASIS FOR  THE  PURPOSE  OF
ASSISTING THE DEVELOPMENT OF COMMERCIALLY PROMISING RESEARCH DISCOVERIES
IN NEW YORK STATE TO THE FOLLOWING:
  (I) RESEARCHERS AT NEW YORK STATE ACADEMIC RESEARCH INSTITUTIONS WORK-
ING  IN  COLLABORATION  WITH  A PRIVATE SECTOR ENTITY FOR THE PURPOSE OF
COMMERCIALIZING THE RESEARCH;
  (II) ENTREPRENEURS SEEKING ASSISTANCE FROM  NEW  YORK  STATE  ACADEMIC
RESEARCH INSTITUTIONS; AND
  (III)  EXISTING  COMPANIES WITH FEWER THAN TWO HUNDRED FIFTY EMPLOYEES
WORKING WITH RESEARCHERS AT NEW  YORK  STATE  ACADEMIC  RESEARCH  INSTI-
TUTIONS.
  3.  (A)  TECHNOLOGY  COMMERCIALIZATION PARTNERSHIP FUNDS SHALL BE USED
FOR THE FOLLOWING PURPOSES:
  (I) TESTING;
  (II) PROTOTYPING;
  (III) DESIGNING;
  (IV) INCORPORATION, PATENT AND  LICENSE-RELATED  AND  MARKET  RESEARCH
EXPENSES;
  (V) MATERIALS, FIXTURES, AND/OR SUPPLIES NECESSARY FOR THE PROJECT;
  (VI) LABORATORY EQUIPMENT;
  (VII)  COMPENSATION  OF  FACULTY  AND  STAFF  DIRECTLY  WORKING ON THE
PROJECT;
  (VIII) COMPENSATION OF GRADUATE AND  UNDERGRADUATE  STUDENTS  DIRECTLY
WORKING ON THE PROJECT;
  (IX) TRAVEL DIRECTLY RELATED TO THE PROJECT;
  (X) SERVICES SUBCONTRACTED TO PARTNER ORGANIZATIONS OR OTHER ENTITIES;
AND
  (XI)  OTHER  COSTS  AS  DETERMINED BY THE DIVISION THAT ARE ASSOCIATED
WITH  ADVANCING  RESEARCH  DISCOVERIES  INTO  MARKETABLE   TECHNOLOGIES,
PRODUCTS  OR  PROCESSES TO BE COMMERCIALIZED OR MANUFACTURED IN NEW YORK
STATE.
  (B) TECHNOLOGY COMMERCIALIZATION PARTNERSHIP FUNDS MAY NOT BE UTILIZED
FOR RENT OR LEASE EXPENSES, TELECOMMUNICATIONS, UTILITY, MARKETING COSTS
OR CAPITAL CONSTRUCTION.
  (C) ALL EQUIPMENT PURCHASES MADE PURSUANT TO  PARAGRAPH  (A)  OF  THIS
SUBDIVISION SHALL REMAIN THE PROPERTY OF THE RESEARCH INSTITUTION.
  (D)  TECHNOLOGY  COMMERCIALIZATION PARTNERSHIP AWARDS SHALL NOT EXCEED
ONE HUNDRED THOUSAND DOLLARS.
  4. NO LATER THAN AUGUST FIRST, TWO THOUSAND TWELVE, AND ANNUALLY THER-
EAFTER, THE DIVISION SHALL ISSUE A REQUEST FOR PROPOSALS FOR  TECHNOLOGY
COMMERCIALIZATION  PARTNERSHIP GRANTS AND THE CRITERIA THAT WILL BE USED
TO EVALUATE SUCH PROPOSALS INCLUDING, BUT NOT LIMITED TO,  THOSE  LISTED
IN  SUBDIVISION TWO OF THIS SECTION FOR USE OF TECHNOLOGY COMMERCIALIZA-
TION PARTNERSHIP FUNDS.
  (A) THE DIVISION SHALL GIVE  PREFERENCE  TO  THOSE  APPLICATIONS  THAT
DEMONSTRATE  COLLABORATION AMONG NEW YORK STATE ACADEMIC RESEARCH INSTI-
TUTIONS, THE PRIVATE  SECTOR,  ECONOMIC  DEVELOPMENT  ORGANIZATIONS  AND
WORKFORCE  DEVELOPMENT  PROGRAMS  WITHIN  A REGION OF THE STATE AND THAT

S. 7290                             3

SHOW THE GREATER POTENTIAL  FOR  COMMERCIAL  SUCCESS  AND  EVENTUAL  JOB
CREATION IN NEW YORK STATE.
  (B)  GRANTS SHALL BE MADE BY THE DIVISION WITHIN NINETY DAYS FOLLOWING
THE ISSUANCE OF THE REQUEST FOR PROPOSALS.
  5. (A) EACH DESIGNATED TECHNOLOGY COMMERCIALIZATION PARTNERSHIP  SHALL
REPORT,  ON OR BEFORE DECEMBER FIRST, TWO THOUSAND THIRTEEN AND ANNUALLY
THEREAFTER, TO THE DIVISION. SUCH REPORT SHALL INCLUDE:
  (I) THE NAME AND INSTITUTIONAL OR  BUSINESS  LOCATION  OF  EACH  GRANT
RECIPIENT AND THE AMOUNT AWARDED;
  (II)  A  SHORT  DESCRIPTION OF THE PRODUCT OR TECHNOLOGY BEING COMMER-
CIALIZED;
  (III) INFORMATION ON ANY INSTITUTIONAL COLLABORATION;
  (IV) INFORMATION ON THE PROJECTED ECONOMIC IMPACT, INCLUDING ANY  JOBS
CREATED OR PROJECTED TO BE CREATED OR RETAINED; AND
  (V) SUCH OTHER INFORMATION AS THE DIVISION DEEMS NECESSARY.
  (B)  THE  DIVISION  SHALL SUBMIT TO THE GOVERNOR AND THE LEGISLATURE A
SUMMARY AND EVALUATION OF THE REPORTS SUBMITTED TO THE DIVISION PURSUANT
TO THIS SUBDIVISION AND AN EVALUATION OF THE PERFORMANCE OF THE TECHNOL-
OGY COMMERCIALIZATION PARTNERSHIP PROGRAM ON OR BEFORE  FEBRUARY  FIRST,
TWO THOUSAND THIRTEEN.
  S  2.  Section  209-p of the executive law, as added by chapter 624 of
the laws of 1999, paragraph (c) of subdivision 2 and subdivisions 3,  4,
5  and  6  as  amended by chapter 342 of the laws of 2008, is amended to
read as follows:
  S 209-p. Research development program. 1. There is hereby  established
the research development program. The program shall include but need not
be  limited  to:  the  faculty  development  program,  capital  facility
program, [incentive program,] and centers for advanced technology devel-
opment program.
  2. The office shall provide no later than March first, two thousand, a
strategic plan to the governor, the temporary president  of  the  senate
and the speaker of the assembly which shall:
  (a)  establish  criteria  for  the  awarding  of  funds made available
through the research development program; all awards shall be made on  a
competitive basis;
  (b)  provide a schedule for issuance of requests for proposals for the
research development program awards;
  (c) provide a schedule for completion of review of proposals submitted
by institutions of higher education and  research  institutions  to  the
office; AND
  (d)  provide  procedures  for the issuance of awards from the research
development program.
  3. The faculty development program is hereby created to assist  insti-
tutions of higher education and research institutions with the retention
and recruitment of research faculty. Funds appropriated for this program
shall  be  administered by the office pursuant to request for proposals.
Consideration for the allocation of awards shall be given to all  insti-
tutions  of  higher education and research institutions within the state
provided such institutions demonstrate to the satisfaction of the  advi-
sory council a specific need for such funds and the manner in which such
award  for  the  recruitment  and  retention  of  research faculty would
enhance the research capabilities and  reputation  of  the  institution.
Criteria for such awards shall include, but not be limited to, the abil-
ity of the faculty member to leverage and attract federal funds, venture
capital  and  private industry funds, and the willingness of the faculty
member to pursue entrepreneurial enterprises resulting in  new  business

S. 7290                             4

or  the  expansion  of  existing business in New York state.  The office
shall promulgate rules and regulations to establish:
  (a) the duration of grants for faculty awards;
  (b)  matching  funds  required  from  the academic and research insti-
tutions;
  (c) a schedule for an annual  reduction  of  the  faculty  development
award,  and  a  corresponding  increase  in  the matching funds from the
academic or research institution; and
  (d) other rules and regulations deemed necessary by the office for the
administration of this program.
  4. (a) The capital facility program shall provide  financing  for  the
design,  acquisition,  construction,  reconstruction,  rehabilitation or
improvement of research and development facilities, including equipment.
Funds appropriated or reappropriated for the capital facility program by
chapter six hundred twenty-four of the laws of nineteen hundred  ninety-
nine shall be awarded to no more than six primary host institutions.
  (b)  Criteria for the issuance of awards by the advisory council shall
include but need not be  limited  to  the  following:  potential  future
growth  and  economic  impact  within  New  York  state  of the proposed
research to be undertaken at such  facilities,  available  expertise  at
such  campus  in the scientific discipline designated for the center for
advanced technology and/or the center's host campus,  an  evaluation  of
the ability of the proposed research to be undertaken at such facilities
to  aid  existing business and to create new business in New York state,
and the ability of the proposal to leverage and attract  federal  funds,
venture capital and private industry funds.
  [(d)]  (C)  The  capital facility program shall also provide financing
for the reconstruction, rehabilitation or improvement of existing  labo-
ratory facilities. Funds available pursuant to this subdivision shall be
available  for  research facilities at all institutions of higher educa-
tion and research institutions in New York state.
  [(e)] (D) The office and the city  university  construction  fund  may
contract for the construction fund to design, construct, acquire, recon-
struct, rehabilitate and improve research and development facilities for
those  primary  host  institutions which are senior colleges of the city
university of New York.
  5. [An incentive program  is  hereby  created  to  provide  additional
assistance  to  technology transfer activities at institutions of higher
education and research institutions in the state of  New  York  for  the
purpose  of  encouraging technology transfer from institutions of higher
education and research institutions to businesses and for commercializa-
tion within New York state. Funds appropriated for this program shall be
available for personal service expenses to enhance the technology trans-
fer abilities of higher education and  research  institutions  to  busi-
nesses  within New York state including but not limited to patent appli-
cations, the creation of business and marketing plans,  venture  capital
conferences  and  non-capital  costs  associated with the development of
real property owned by such institution of higher education or  research
institution  for research and development purposes.  Funds awarded under
the incentive program shall not exceed fifty percent of the cost of  the
purpose for which such funds shall be applied.
  6.]  A  center  for advanced technology development program is created
whereby funds shall be awarded to centers for  advanced  technology  for
the  purpose  of enhancing and expanding the existing role of the center
in the area for which it  is  designated.  Funds  appropriated  for  the
development  program shall be awarded to such centers for advanced tech-

S. 7290                             5

nology. Criteria for the issuance of awards shall be established by  the
office  and shall include but need not be limited to the economic devel-
opment potential of the research undertaken at such center for  advanced
technology,  funding  leveraged  from  other  sources  including private
interests and the federal government, potential of revenues accruing  to
the  institution  of  higher  education or research institution from the
licensing of the products  of  research  conducted  at  such  center  of
advanced  technology  and  the  interaction  of such center with private
industry.
  S 3. Subdivision 4 of section 209 of the executive law,  as  added  by
chapter 624 of the laws of 1999, is amended to read as follows:
  4.  "Research  development program" shall mean the program established
by section two hundred nine-p of this article to encourage  and  enhance
the  economic  development  role  of  academic  institutions in New York
state.  Such program shall include, but not be limited to,  the  faculty
development  program,  the  capital  facilities  program, [the incentive
program,] and the centers for advanced technology development program.
  S 4. Notwithstanding any other law to the contrary, any appropriations
from the general fund to the New York state division of  science,  tech-
nology and innovation board's local assistance account for the incentive
program  part  of the research development program, established pursuant
to section 209-p of the executive law, that have not  been  expended  or
committed  shall  be  made  available for the purposes of the technology
commercialization partnership program.
  S 5. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.