senate Bill S781

Establishes the empire virtual incubator program within the New York state office of science, technology and academic research

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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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actions

  • 05 / Jan / 2011
    • REFERRED TO FINANCE
  • 04 / Jan / 2012
    • REFERRED TO FINANCE

Summary

Establishes the empire virtual incubator program within the New York state office of science, technology and academic research.

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Bill Details

Versions:
S781
Legislative Cycle:
2011-2012
Current Committee:
Senate Finance
Law Section:
Executive Law
Laws Affected:
Add ยง209-u, Exec L
Versions Introduced in 2009-2010 Legislative Cycle:
S4674

Sponsor Memo

BILL NUMBER:S781

TITLE OF BILL:
An act
to amend the executive law, in relation to establishing the empire
virtual incubator program

PURPOSE:
This bill establishes the Empire Virtual Incubator Program within the
NYS Office of Science, Technology and Academic Research.

SUMMARY OF PROVISIONS:
The Executive Law is amended to create the Empire Virtual Incubator
Program designed to assist entrepreneurs who are operating small
business ventures in rural areas where for reasons of distance,
population dispersal or scale of business venture, conventional
business incubation and assistance programs are not feasible.

JUSTIFICATION:
This legislation establishes a virtual incubator program - an economic
development tool that brings entrepreneurship tools to rural areas
where remote geography poses a challenge for delivery of business
services. Recognizing that small businesses are a major economic
driver in rural communities, the virtual incubator program provides
value-added services to entrepreneurs such as business planning,
strategic guidance on markets, analyzing proof of concept
opportunities, support in reaching global markets, access to business
mentors and management consulting.

LEGISLATIVE HISTORY:
2009-2010: S.4674 Referred to Finance Committee
2008: S.8063/A.10975 Reported from Finance Committee to Rules Committee

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
120 days after enactment into law.

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

                                   781

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 5, 2011
                               ___________

Introduced  by  Sen.  YOUNG  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the executive  law,  in  relation  to  establishing  the
  empire virtual incubator program

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

  Section 1. The executive law is amended by adding a new section  209-u
to read as follows:
  S 209-U. ESTABLISHMENT OF THE EMPIRE VIRTUAL INCUBATOR PROGRAM. 1. THE
OFFICE  SHALL  ESTABLISH  A  WEB  BASED VIRTUAL INCUBATOR PROGRAM, TO BE
KNOWN AS THE EMPIRE VIRTUAL INCUBATOR PROGRAM, DESIGNED TO ASSIST ENTRE-
PRENEURS WHO ARE SEEKING TO ESTABLISH OR WHO ARE OPERATING  SMALL  BUSI-
NESS  VENTURES IN RURAL AREAS WHERE, FOR REASONS OF DISTANCE, POPULATION
DISPERSAL OR SCALE OF BUSINESS VENTURE, CONVENTIONAL BUSINESS INCUBATION
AND ASSISTANCE PROGRAMS ARE NOT FEASIBLE. THE PROGRAM WILL  UTILIZE  THE
INTERNET  TO DELIVER SERVICES TO ENTREPRENEURS INCLUDING BUT NOT LIMITED
TO BUSINESS PLANNING, STRATEGIC GUIDANCE ON MARKETS, ANALYSIS  OF  PROOF
OF  CONCEPT  ACTIVITIES,  SUPPORT IN REACHING STATE, NATIONAL AND GLOBAL
MARKETS, ACCESS TO BUSINESS MENTORS, AND MANAGEMENT CONSULTING.
  2. FOR THE PURPOSES OF THIS SECTION:
  (A) "ELIGIBLE BUSINESS" SHALL MEAN A START-UP OF  NEW  AGRIBUSINESSES,
AGRICULTURE  OR RELATED VALUE-ADDED SMALL BUSINESS FOCUSED ON THE DEVEL-
OPMENT AND IMPLEMENTATION OF NEW AND ALTERNATIVE PRODUCTION, PROCESSING,
STORAGE, DISTRIBUTION AND MARKETING TECHNOLOGIES  AND  IMPROVEMENTS  FOR
NEW  YORK  FOOD,  AGRICULTURAL  AND FOREST PRODUCTS AND THOSE BUSINESSES
TRANSITIONING TO PRODUCTION OF NON-TRADITIONAL, HIGH-VALUE  ADDED  CROPS
FOR A NATIONAL OR INTERNATIONAL MARKET;
  (B)  "TENANT" SHALL MEAN AN INDIVIDUAL OR BUSINESS SELECTED TO PARTIC-
IPATE IN THE VIRTUAL INCUBATION PROGRAM; AND

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03448-01-1

S. 781                              2

  (C) "RURAL AREA" SHALL MEAN A RURAL AREA  AS  DEFINED  IN  SUBDIVISION
SEVEN OF SECTION FOUR HUNDRED EIGHTY-ONE OF THIS CHAPTER.
  3.  (A)  THE OFFICE IS AUTHORIZED TO AWARD A CONTRACT ON A COMPETITIVE
BASIS IN RESPONSE TO REQUESTS  FOR  PROPOSALS,  TO  AN  ORGANIZATION  OR
CONSORTIUM  THAT  HAS  DEMONSTRATED  EXPERTISE  IN  ALL OF THE FOLLOWING
AREAS:  BUSINESS  AND  FINANCIAL  CONSULTING,  PROGRAM   ADMINISTRATION,
INSTRUCTIONAL  DESIGN,  AND  ONLINE PLATFORM ADMINISTRATION AND HOSTING.
CONSORTIUMS MAY INCLUDE ANY VOCATIONAL EDUCATION AGENCY OFFERING TECHNI-
CAL ASSISTANCE SERVICES TO SMALL BUSINESS,  SMALL  BUSINESS  DEVELOPMENT
CENTER,  COUNTY  COOPERATIVE EXTENSION SERVICE, OR NOT-FOR-PROFIT CORPO-
RATION OFFERING TECHNICAL ASSISTANCE TO AGRICULTURE AND AGRIBUSINESS.
  (B) THE OFFICE SHALL, FROM APPROPRIATIONS SPECIFICALLY MADE  AVAILABLE
FOR  THIS  PURPOSE,  FROM  ANY  GRANTS  MADE AVAILABLE FOR THIS PURPOSE,
AND/OR FROM FUNDS MADE AVAILABLE TO THE OFFICE BY  THE  NEW  YORK  STATE
URBAN  DEVELOPMENT  CORPORATION  FROM  AVAILABLE  APPROPRIATIONS  IN THE
EMPIRE STATE ECONOMIC DEVELOPMENT FUND ESTABLISHED PURSUANT  TO  SECTION
SIXTEEN-I  OF  THE  URBAN DEVELOPMENT CORPORATION ACT, OR FROM ANY OTHER
APPROPRIATE FUNDS OF THE URBAN DEVELOPMENT CORPORATION  INCLUDING  RURAL
REVITALIZATION  ASSISTANCE  GRANTS.  THE OFFICE IS FURTHER AUTHORIZED TO
CONTRACT WITH THE COMMISSIONER OF  AGRICULTURE  AND  MARKETS,  AND  SUCH
COMMISSIONER IS AUTHORIZED TO CONTRACT WITH THE OFFICE, TO ASSIST IN THE
PREPARATION  OF  REQUESTS FOR PROPOSALS AND REVIEW OF GRANT APPLICATIONS
AND SELECTION OF APPLICANTS.
  (C) APPLICANTS SHALL BE REQUIRED TO PROVIDE THE FOLLOWING  INFORMATION
IN THEIR APPLICATIONS:
  (I)  A  DESCRIPTION OF HOW SUCH ASSISTANCE AND SERVICES WILL BE DELIV-
ERED;
  (II) A  PROGRAM  FOR  MARKETING  THE  PROGRAM  AND  SECURING  ELIGIBLE
TENANTS;
  (III)  A MANAGEMENT PLAN AND A BUSINESS PLAN FOR OPERATING THE INCUBA-
TOR;
  (IV) A PLAN FOR MAKING THE INCUBATOR SELF-SUSTAINING.  SUCH  PLAN  MAY
INCLUDE  CHARGING TENANTS FEES FOR SOME SERVICES TO COMPANIES AT CERTAIN
STAGES OF DEVELOPMENT OR ON AN ABILITY TO PAY BASIS; AND
  (V) OPPORTUNITIES TO INCLUDE  POST-SECONDARY  STUDENTS  IN  REAL-WORLD
LEARNING  THROUGH  PROVIDING  SERVICES,  UNDER  GUIDANCE,  TO  INCUBATOR
TENANTS.
  4. THE OFFICE SHALL PROVIDE POLICY GUIDELINES FOR THE FOLLOWING:
  (A) PROCEDURE FOR SELECTION OF  INCUBATOR  TENANTS.  TENANTS  FOR  THE
VIRTUAL  INCUBATOR  WILL  BE  SELECTED ON A COMPETITIVE BASIS THROUGH AN
APPLICATION PROCESS ESTABLISHED BY THE OFFICE. THE OFFICE SHALL  CONSULT
WITH  THE  DEPARTMENT  OF  AGRICULTURE AND MARKETS IN ORDER TO ESTABLISH
SUCH CRITERIA GOVERNING THE SOLICITATION OF PROPOSALS  FROM  PROSPECTIVE
TENANTS AND THE AWARD OF GRANTS;
  (B)  CRITERIA  FOR  EVALUATING GRANT APPLICATIONS. SUCH CRITERIA SHALL
INCLUDE, BUT NOT BE LIMITED TO, AN ASSESSMENT OF THE POTENTIAL  ECONOMIC
IMPACT OF THE BUSINESS AS MEASURED BY SUCH VARIABLES AS POTENTIAL REVEN-
UE, JOB CREATION, EFFECT ON THE LOCAL ECONOMY, LIKELIHOOD OF SUPPORT FOR
OR  COLLABORATION  WITH  RESEARCH  INSTITUTIONS  IN THE STATE; FINANCIAL
COMMITMENT AND INDUSTRY KNOWLEDGE OF THE APPLICANT; AND  THE  LIKELIHOOD
THAT  THE  BUSINESS  WILL  BECOME  PROFITABLE AND SELF-SUSTAINING WITHIN
THREE YEARS;
  (C) ENTRANCE TO AND EXIT FROM THE INCUBATOR FACILITY. THE OFFICE SHALL
DEVELOP A CLEAR POLICY FOR THE GRADUATION OF TENANTS FROM THE  INCUBATOR
AFTER A PERIOD OF TIME AND/OR AFTER A SPECIFIED STAGE OF BUSINESS DEVEL-
OPMENT;

S. 781                              3

  (D)  FINANCIAL ASSISTANCE FOR VIRTUAL INCUBATOR TENANTS. THE OFFICE IS
AUTHORIZED, WITHIN AVAILABLE APPROPRIATIONS IN THE EMPIRE STATE ECONOMIC
DEVELOPMENT FUND ESTABLISHED PURSUANT TO SECTION SIXTEEN-I OF THE  URBAN
DEVELOPMENT CORPORATION ACT, TO PROVIDE FINANCIAL ASSISTANCE IN THE FORM
OF  LOANS,  LOAN  GUARANTEES,  AND  INTEREST SUBSIDY GRANTS TO SUBSIDIZE
LOANS FROM FEDERALLY CHARTERED INSTRUMENTALITIES AND STATE  AND  PRIVATE
LENDING  INSTITUTIONS,  INCLUDING AGRICULTURAL COOPERATIVE CORPORATIONS,
PROVIDED THAT SUCH ASSISTANCE TO STATE LENDING  INSTITUTIONS  SHALL  NOT
EXCEED  ONE-HALF  OF  THE  TOTAL  PROJECT  COST  OR ONE HUNDRED THOUSAND
DOLLARS; AND
  (E) REPORTING AND TRANSPARENCY. THE SELECTED CONTRACTOR FOR THE VIRTU-
AL INCUBATION PROGRAM SHALL SUBMIT ANNUAL REPORTS TO THE OFFICE DESCRIB-
ING THE ASSISTANCE PROVIDED PURSUANT TO THIS SECTION,  INCLUDING:    THE
NUMBER  OF  TENANT  APPLICATIONS  AND  THE  NUMBER AND REASONS FOR THOSE
REJECTED AND SELECTED; A DESCRIPTION  OF  THE  BUSINESS  ACCEPTED  AS  A
TENANT;  THE NUMBER OF JOBS CREATED OR RETAINED; AND SUCH OTHER INFORMA-
TION AS THE OFFICE MAY REQUIRE.
  S 2. This act shall take effect on the one hundred twentieth day after
it shall have become a law; provided, however, that effective immediate-
ly, the addition, amendment and/or repeal of any  rule    or  regulation
necessary  for  the  implementation of this act on its effective date is
authorized and directed to be made  and  completed  on  or  before  such
effective date.

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