senate Bill S2784

Amended

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

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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

  • 23 / Jan / 2013
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 08 / Jan / 2014
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 06 / Feb / 2014
    • AMEND AND RECOMMIT TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 06 / Feb / 2014
    • PRINT NUMBER 2784A

Summary

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

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Bill Details

Versions:
S2784
S2784A
Legislative Cycle:
2013-2014
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 Previous Legislative Cycles:
2011-2012: S7290
2009-2010: A9469A

Sponsor Memo

BILL NUMBER:S2784

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 Commer-
cialization 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 develop-
ment 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 research-
ers 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 LAN 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 univer-
sities, 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 bene-
fit.

PRIOR LEGISLATIVE HISTORY: 2011-12: S.7290/A.599B - Referred to
Commerce, Eco. Dev., & Small Business/ referred to Ways & Means 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.

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

                                  2784

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 23, 2013
                               ___________

Introduced  by  Sen.  PARKER -- 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 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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01409-01-3

S. 2784                             2

  (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
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 THIRTEEN, AND ANNUALLY
THEREAFTER, THE DIVISION SHALL ISSUE A REQUEST FOR PROPOSALS  FOR  TECH-
NOLOGY  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 COMMER-
CIALIZATION PARTNERSHIP FUNDS.

S. 2784                             3

  (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
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 FOURTEEN 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 FOURTEEN.
  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.

S. 2784                             4

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
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.

S. 2784                             5

  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-
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.

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