senate Bill S104

Amended

Recodifies the small business innovation research program within the New York state foundation for science, technology and innovation; repealer

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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

  • 09 / Jan / 2013
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 29 / May / 2013
    • AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 29 / May / 2013
    • PRINT NUMBER 104A
  • 08 / Jan / 2014
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 28 / May / 2014
    • REPORTED AND COMMITTED TO FINANCE

Summary

Recodifies the small business innovation research program within the New York state urban development corporation act; alters provisions under the small business innovation research program particularly as they affect Phase I award winners; prohibits arbitrary exclusion of technologies and companies; provides for matching of federal funds, to a certain extent.

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Bill Details

Versions:
S104
S104A
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §46, UDC Act; rpld §3102-c, Pub Auth L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S7257
2009-2010: A4198
2007-2008: A6149

Sponsor Memo

BILL NUMBER:S104

TITLE OF BILL:
An act
to amend the New York state urban development corporation act,
in relation to recodification of
the small business innovation research program and the awards made
thereunder within the urban development corporation;
and to repeal section 3102-c of
the public authorities
law relating to the small business innovation research
program

PURPOSE:
This bill would recodify the Small Business Innovation Research
Program within the New York State Urban Development Corporation. This
bill would repeal § 3102-c of the Public Authorities Law.

SUMMARY OF PROVISIONS:
Section 1- Amends Chapter 174 of the Laws of 1968 by adding a new
section 46.

Section 2- Repeals § 3102-c of the Public Authorities Law.

Section 3- Effective date.

JUSTIFICATION:
The State Small Business Innovation Research (SBIR) Program, which
began in FY 1984-1985, was designed to provide assistance to New
York's newer high technology companies, helping them compete for a
greater share of the federal research contracts awarded under the
federal SBIR program. The State program was highly successful,
increasing the amount of federal SBIR dollars coming into the State
from under $5 million annually to over $30 million by 1991. As
importantly, State assistance under this program greatly increased
the success of federal SBIR Phase I award winners to compete for much
larger SBIR Phase II awards.

Although the State SBIR statute remains in effect, the State stopped
funding the program after its initial success, in part because of
disagreement over how to allocate limited funds among the federal
SBIR award winners. Consequently, New York State, which had moved
from 6th to 3rd place among the states in the number of Phase I
winners, has seen its number of state winners decrease dramatically
since funding for the State program ceased. This bill clarifies how
funds will be allocated so that the program can begin anew to assist
small high technology companies compete for federal SBIR funds which
will help them grow and provide new jobs for New York citizens.

LEGISLATIVE HISTORY:
2011-12: S.7257/A.3410-B Referred to Corporations, Authorities, and
Commissions
2009-10: S.4434/A.4198 Referred to Ways and Means
2007-08: A.6149
2005-06: A.3443
2003-04: A.4766


2001-02: A.1070
1999-00: A.1304
1997-98: A.9404

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

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

                                   104

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN ACT to amend the New York state urban development corporation act, in
  relation  to  recodification of the small business innovation research
  program and the awards made thereunder within  the  urban  development
  corporation;  and  to  repeal section 3102-c of the public authorities
  law relating to the small business innovation research program

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

  Section  1. Section 1 of chapter 174 of the laws of 1968, constituting
the New York state urban development  corporation  act,  is  amended  by
adding a new section 46 to read as follows:
  S  46.  SMALL BUSINESS INNOVATION RESEARCH PROGRAM. 1. AS USED IN THIS
SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
  (A) "SMALL BUSINESS INNOVATION RESEARCH PROGRAM" OR "SBIR" MEANS  THAT
PROGRAM,  ENACTED  PURSUANT TO THE SMALL BUSINESS INNOVATION DEVELOPMENT
ACT OF 1982 (P.L. 97-219), WHICH PROVIDES FUNDS TO SMALL  BUSINESSES  TO
CONDUCT INNOVATIVE RESEARCH HAVING COMMERCIAL APPLICATION.
  (B) "SMALL BUSINESS" MEANS A CORPORATION, PARTNERSHIP, LIMITED LIABIL-
ITY  COMPANY,  SOLE  PROPRIETORSHIP, OR INDIVIDUAL, OPERATING A BUSINESS
FOR PROFIT, WITH TWO HUNDRED FIFTY EMPLOYEES OR FEWER, INCLUDING EMPLOY-
EES EMPLOYED IN ANY SUBSIDIARY OR AFFILIATED CORPORATION OR OTHER  ENTI-
TY, WHICH OTHERWISE MEETS THE REQUIREMENTS OF THE FEDERAL SMALL BUSINESS
INNOVATION RESEARCH PROGRAM.
  2.  (A)  WITHIN  THIRTY  DAYS  OF THE PUBLIC ANNOUNCEMENT OF THE SMALL
BUSINESS INNOVATION RESEARCH PROGRAM PHASE I AWARD WINNERS BY THE APPRO-
PRIATE FEDERAL AGENCY, THE CORPORATION SHALL CONTACT ALL PHASE  I  AWARD
RECIPIENTS  WHOSE  PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THIS STATE,
PROVIDE THEM WITH INFORMATION CONCERNING THE PROGRAM AUTHORIZED PURSUANT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01966-01-3

S. 104                              2

TO THIS SECTION, AND ADVISE THEM OF THE REQUIREMENTS  RELATING  THERETO.
ANY  SUCH RECIPIENT, AT LEAST THIRTY DAYS PRIOR TO THE COMPLETION OF ITS
SBIR PHASE I GRANT PERIOD, MAY, AT ITS DISCRETION, SUBMIT TO THE  CORPO-
RATION A NOTICE OF ITS DESIRE TO SECURE RESEARCH FUNDING PURSUANT TO THE
PROVISIONS  OF  THIS  SECTION, ALONG WITH A COPY OF ITS ORIGINAL FEDERAL
SBIR PROPOSAL AND SUCH ADDITIONAL INFORMATION  AS  THE  CORPORATION  MAY
REQUIRE  TO  ASSIST  IT IN DETERMINING THE ELIGIBILITY OF SUCH RECIPIENT
FOR THIS PROGRAM.
  (B) IN ADDITION TO RECEIPT OF AN SBIR AWARD, ANY SMALL BUSINESS  SHALL
MEET THE FOLLOWING CRITERIA:
  I.  SUCH SMALL BUSINESS'S PRINCIPAL PLACE OF BUSINESS SHALL BE LOCATED
IN THIS STATE;
  II. SUCH  SMALL  BUSINESS  SHALL  CERTIFY  THAT  THE  RESEARCH  TO  BE
CONDUCTED WILL BE PERFORMED SOLELY IN THIS STATE;
  III. NO MONEYS SHALL BE EXPENDED FOR TRAVEL, EQUIPMENT, OR FACILITIES;
AND
  IV.  NOT  MORE  THAN  ONE-THIRD OF ANY MONEYS AWARDED TO A FIRM BY THE
FOUNDATION MAY BE  USED  TO  CONTRACT  FOR  RESEARCH  OR  OTHER  RELATED
SERVICES.
  (C) UPON A FINDING BY THE CORPORATION THAT: (I) A PHASE I AWARD RECIP-
IENT WHOSE PRINCIPAL PLACE OF BUSINESS IS IN NEW YORK HAS SATISFACTORILY
MET ALL THE REQUIREMENTS OF THIS SECTION AND ANY ADDITIONAL REQUIREMENTS
THE  CORPORATION  MAY  DEEM  NECESSARY; PROVIDED, HOWEVER, THAT ANY SUCH
ADDITIONAL REQUIREMENTS SHALL NOT ARBITRARILY EXCLUDE A PARTICULAR GROUP
OR GROUPS OF TECHNOLOGIES OR COMPANIES; AND (II) THE RESEARCH  CONDUCTED
MAY RESULT IN THE DEVELOPMENT OF INNOVATIVE TECHNOLOGY HAVING THE POTEN-
TIAL  TO LEAD TO COMMERCIALIZATION OR FABRICATION WITHIN NEW YORK OF NEW
OR IMPROVED PRODUCTS, PROCESSES,  OR  SERVICES,  THE  CORPORATION  SHALL
NOTIFY  SUCH  SMALL  BUSINESS  THAT  IT  WILL  AWARD THE FIRM A RESEARCH
CONTRACT. SUCH CONTRACT SHALL BE COMPATIBLE WITH AND A  CONTINUATION  OF
THE  RESEARCH  TO  BE  PERFORMED  UNDER THE SBIR CONTRACT AWARDED BY THE
FEDERAL AGENCY INVOLVED AND SHALL BE  CALCULATED  AS  FOLLOWS:  (I)  THE
AMOUNT OF EACH CONTRACT SHALL EQUAL THE AMOUNT OF THE FEDERAL SBIR AWARD
OR  FIFTY  THOUSAND  DOLLARS, WHICHEVER IS LESS; PROVIDED, HOWEVER, THAT
THE TOTAL AMOUNT OF ALL SUCH  CONTRACTS  SHALL  NOT  EXCEED  THE  AMOUNT
APPROPRIATED  FOR  THIS  PURPOSE,  OR  (II) IN THE EVENT THAT THE TOTAL,
POSSIBLE, MAXIMUM AMOUNT OF ALL CONTRACTS, SUCH TOTAL, POSSIBLE, MAXIMUM
AMOUNT CALCULATED ON THE BASIS OF MATCHING EACH FEDERAL SBIR AWARD IN AN
AMOUNT EQUAL TO THE AMOUNT OF SUCH AWARD,  OR  FIFTY  THOUSAND  DOLLARS,
WHICHEVER  IS  LESS,  EXCEEDS  THE  TOTAL  AMOUNT  APPROPRIATED FOR THIS
PURPOSE, THE AMOUNT OF EACH CONTRACT SHALL BE REDUCED BY A  RATIO  EQUAL
TO THE AMOUNT APPROPRIATED FOR THIS PURPOSE DIVIDED BY THE TOTAL, POSSI-
BLE, MAXIMUM AMOUNT OF ALL CONTRACTS TO BE AWARDED.
  (D)  THE  CORPORATION  SHALL  ESTABLISH  RULES AND REGULATIONS FOR THE
SMALL BUSINESS INNOVATION RESEARCH PROGRAM,  INCLUDING  AWARD  SELECTION
CRITERIA,  WHICH  SHALL  SERVE AS THE BASIS FOR AWARDS FUNDED UNDER THIS
PROGRAM.
  3. THE CORPORATION SHALL NOT DISBURSE ANY MONEYS TO A  SMALL  BUSINESS
UNTIL:
  (A) SUCH SMALL BUSINESS HAS COMPLETED ITS SBIR PHASE I RESEARCH;
  (B) ITS FINAL PHASE I REPORT WITH RESPECT THERETO HAS BEEN ACCEPTED BY
THE FEDERAL AGENCY INVOLVED;
  (C)  ITS PHASE II RESEARCH PROPOSAL HAS BEEN PROPERLY SUBMITTED TO THE
FEDERAL AGENCY INVOLVED; AND
  (D) IT HAS SUBMITTED COPIES OF ITS FINAL PHASE I REPORT AND ITS  PHASE
II PROPOSAL TO THE CORPORATION.

S. 104                              3

  4.  CONSISTENT WITH FEDERAL SBIR PROCEDURES, THE CORPORATION SHALL NOT
DISCLOSE PROPRIETARY INFORMATION WHEN REQUESTED NOT TO DO SO BY  PARTIC-
IPANTS IN THIS PROGRAM.
  5. THE CORPORATION SHALL ANNUALLY SUBMIT A REPORT TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT  OF  THE  SENATE,  AND  THE SPEAKER OF THE ASSEMBLY
DETAILING THE RESULTS OF THE PROGRAM, INCLUDING BUT NOT LIMITED  TO  THE
NUMBER OF NEW YORK SMALL BUSINESSES APPLYING FOR SBIR AWARDS, THE NUMBER
RECEIVING  PHASE  I  AWARDS,  THE  NUMBER RECEIVING PHASE II AWARDS, ANY
PRODUCTS OR PROCESSES  DEVELOPED  AS  A  RESULT  OF  THE  SBIR  RESEARCH
INVOLVED,  ANY PATENTS APPLIED FOR OR LICENSES GRANTED BASED ON THE SBIR
RESEARCH INVOLVED, AN ABSTRACT OF THE SBIR PHASE I AND II WORK PERFORMED
BY NEW YORK FIRMS, AND ANY OTHER INFORMATION PERTINENT IN EVALUATING THE
PROGRAM.
  6. THE CORPORATION SHALL CONDUCT A PROGRAM TO INFORM SMALL  BUSINESSES
OF  THE FEDERAL SBIR PROGRAM AND THIS NEW YORK STATE PROGRAM IN ORDER TO
ENSURE THAT ALL FIRMS HAVE  THE  OPPORTUNITY  TO  PARTICIPATE  IN  THESE
PROGRAMS.
  7.  THE  CORPORATION SHALL FACILITATE AND PROMOTE THE ESTABLISHMENT OF
JOINT SMALL BUSINESS-UNIVERSITY TECHNOLOGY COUNCILS AT THE  CENTERS  FOR
ADVANCED  TECHNOLOGY  AND  OTHER  UNIVERSITIES  WITHIN THE STATE WHEREBY
SMALL FIRMS AND UNIVERSITY EXPERTS CAN FACILITATE THE TRANSFER OF  TECH-
NOLOGY  AND  WORK  TOGETHER  ON  RESEARCH  PROJECTS  RELATED TO THE SBIR
PROGRAM OR OTHER RESEARCH PROJECTS OF MUTUAL INTEREST.
  8. THE PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE IF, AND  AS  LONG
AS,  FEDERAL  FINANCIAL  PARTICIPATION IS AVAILABLE THEREFOR PURSUANT TO
THE SMALL BUSINESS INNOVATION DEVELOPMENT ACT OF 1982.
  S 2. Section 3102-c of the public authorities law is REPEALED.
  S 3. This act shall take effect immediately.

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