senate Bill S104A

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

See Assembly Version of this Bill:
A2032A
Versions:
S104
S104A
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §50, UDC Act; rpld §3102-c, Pub Auth L
Versions Introduced in Previous Legislative Cycles:
2011-2012: S7257, A3410B
2009-2010: A4198, A4198
2007-2008: A6149, A6149

Votes

5
0
5
Aye
0
Nay
1
aye with reservations
0
absent
0
excused
0
abstained
show Corporations, Authorities and Commissions committee vote details

Sponsor Memo

BILL NUMBER:S104A

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:

§ 1- Amends Chapter 174 of the Laws of 1968 by adding a new section 50

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

§ 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: 2011-2012: A.3410-13/S.7257; 2009-2010:
A.4198/S.4434; 2007-2008: A.6149; 2005-2006: A.3443; 2003-2004:
A.4766, 2001-2002: A.1070, 1999-2000: A.1304. 1997-1998: A.9404

FISCAL IMPLICATIONS: None

LOCAL 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--A

                       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  --  committee  discharged,  bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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 50 to read as follows:
  S 50. 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,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01966-03-3

S. 104--A                           2

PROVIDE THEM WITH INFORMATION CONCERNING THE PROGRAM AUTHORIZED PURSUANT
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

S. 104--A                           3

  (D)  IT HAS SUBMITTED COPIES OF ITS FINAL PHASE I REPORT AND ITS PHASE
II PROPOSAL TO THE CORPORATION.
  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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