S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7893
 
                             I N  S E N A T E
 
                              January 3, 2024
                                ___________
 
 Introduced  by  Sens. PARKER, ADDABBO -- read twice and ordered printed,
   and when printed to be committed to  the  Committee  on  Internet  and
   Technology
 
 AN  ACT to amend the public authorities law, in relation to the New York
   incubator network
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1.  Legislative intent. The legislature hereby recognizes that
 supporting a statewide network of university affiliated business incuba-
 tors,  selected  on  a competitive basis that maintain not only physical
 facilities but also most current industry best practice business  devel-
 opment  services is a cost effective approach to supporting start-up and
 early stage companies and helping  the  state's  creative  entrepreneurs
 successfully  transition  technological  breakthroughs  with  commercial
 potential from the laboratory to the  marketplace.  This  investment  in
 university affiliated business incubators will support regional develop-
 ment and local economic diversification, job creation, and the retention
 of the state's vast resources of intellectual capital.
   §  2.    The public authorities law is amended by adding a new section
 3102-h to read as follows:
   § 3102-H. NEW YORK INCUBATOR NETWORK. THE FOUNDATION IS AUTHORIZED  TO
 DESIGNATE TEN INCUBATORS AS PART OF THE NEW YORK INCUBATOR NETWORK. SUCH
 DESIGNATIONS SHALL BE MADE IN ACCORDANCE WITH THE STANDARDS AND CRITERIA
 SET  FORTH IN SUBDIVISION TWO OF THIS SECTION AND WILL LAST FOR A PERIOD
 OF FIVE YEARS. INCUBATORS SO DESIGNATED SHALL BE  ELIGIBLE  FOR  SUPPORT
 FROM  THE  FOUNDATION IN THE MANNER PROVIDED FOR IN SUBDIVISION THREE OF
 THIS SECTION, AND FOR  SUCH  ADDITIONAL  SUPPORT  AS  MAY  OTHERWISE  BE
 PROVIDED BY LAW.
   1.  AS  USED  IN  THIS  SECTION: (A) "INCUBATOR" OR "INCUBATE" MEANS A
 UNIVERSITY OR UNIVERSITY-AFFILIATED RESEARCH INSTITUTE OR  A  CONSORTIUM
 OF  SUCH  INSTITUTIONS,  DESIGNATED  BY  THE  FOUNDATION, WHICH PROVIDES
 SERVICES AND FACILITIES TO ENTREPRENEURS DURING THE  START-UP  PHASE  OF
 THEIR COMPANY LIFE-CYCLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04531-01-3
              

 S. 7893                             2
 
   (B)  "APPLICANT"  MEANS A UNIVERSITY, A UNIVERSITY-AFFILIATED RESEARCH
 INSTITUTE OR INDEPENDENT NOT-FOR-PROFIT INCUBATOR  ESTABLISHED  FOR  THE
 PURPOSE  OF  DEVELOPMENT  OF ENTREPRENEURIAL COMPANIES THROUGH PROVIDING
 BUSINESS SUPPORT RESOURCES FOR ENTREPRENEURS DURING THE START-UP PERIOD.
   2. THE FOUNDATION SHALL:
   (A) IDENTIFY AREAS FOR WHICH INCUBATORS SHOULD BE DESIGNATED INCLUDING
 AREAS  THAT  ARE  RELATED  TO  INDUSTRIES WITH SIGNIFICANT POTENTIAL FOR
 ECONOMIC GROWTH AND DEVELOPMENT IN  NEW  YORK  STATE  AND  TECHNOLOGICAL
 AREAS  THAT  ARE  RELATED  TO THE ENHANCEMENT OF PRODUCTIVITY IN VARIOUS
 INDUSTRIES LOCATED IN NEW YORK STATE.
   (B) LOCATE INCUBATORS, IN EACH OF THE TEN ECONOMIC DEVELOPMENT REGIONS
 TO THE EXTENT POSSIBLE IN AREAS WHERE THERE IS NOT  ALREADY  SIGNIFICANT
 SUPPORT FOR BUSINESS INCUBATION.
   (C) ESTABLISH CRITERIA THAT APPLICANTS MUST SATISFY FOR DESIGNATION AS
 AN INCUBATOR, INCLUDING, BUT NOT LIMITED TO THE  FOLLOWING:
   (I)  AN  ESTABLISHED  RECORD OF, OR PLAN TO CONFORM TO, BEST PRACTICES
 INCLUDING CLEAR POLICIES FOR BUSINESS ENTRY AND GRADUATION;
   (II) A COMPREHENSIVE  SUITE  OF  ENTREPRENEURIAL  MENTORING  PRACTICES
 INCLUDING  ADVISING, COACHING, PLANNING AND CONNECTING TO FUNDING SOURC-
 ES;
   (III) THE CAPACITY TO SECURE SUBSTANTIAL  PRIVATE  AND  OTHER  GOVERN-
 MENTAL  FUNDING FOR THE PROPOSED INCUBATOR, IN AMOUNTS AT LEAST EQUAL TO
 THE TOTAL OF SUPPORT SOUGHT FROM THE STATE;
   (IV) THE ABILITY  AND  WILLINGNESS  TO  COOPERATE  WITH  OTHER  LOCAL,
 REGIONAL AND STATEWIDE ECONOMIC DEVELOPMENT, BUSINESS SUPPORT, VENTURES,
 CAPITAL, WORKFORCE AND OTHER PARTNERS;
   (V) THE CAPACITY TO COLLABORATE WITH BUSINESS AND INDUSTRY.
   (D)  ESTABLISH  SUCH  REQUIREMENTS  AS  IT  DEEMS  APPROPRIATE FOR THE
 FORMAT, CONTENT AND FILING OF APPLICATIONS FOR DESIGNATION AS INCUBATORS
 FOR ENTREPRENEURIAL DEVELOPMENT.
   (E) ESTABLISH SUCH PROCEDURES AS IT DEEMS APPROPRIATE FOR  THE  EVALU-
 ATION  OF APPLICATIONS FOR DESIGNATION AS INCUBATORS FOR ENTREPRENEURIAL
 DEVELOPMENT, INCLUDING THE ESTABLISHMENT OF A REVIEW PANEL  COMPOSED  OF
 NATIONALLY RECOGNIZED EXPERTS IN BUSINESS INCUBATION.
   (F)  UPON  THE  APPROVAL OF AN APPLICATION, CONFER AN INCUBATOR DESIG-
 NATION UPON A SUCCESSFUL APPLICANT FOR A PERIOD OF  FIVE  YEARS,  UNLESS
 OTHERWISE REVOKED BY THE FOUNDATION.
   (G)  THE  FOUNDATION  BOARD  SHALL  APPROVE  RULES AND REGULATIONS FOR
 SELECTION OF INCUBATORS AND SHALL MAKE FINAL DESIGNATIONS  THROUGH  VOTE
 OF MAJORITY OF APPOINTED MEMBERS OF THE FOUNDATION BOARD.
   3.  (A) FROM SUCH FUNDS AS MAY BE APPROPRIATED FOR THIS PURPOSE BY THE
 LEGISLATURE, THE FOUNDATION SHALL  PROVIDE  FINANCIAL  SUPPORT,  THROUGH
 CONTRACTS  OR  OTHER MEANS, TO DESIGNATED INCUBATORS FOR ENTREPRENEURIAL
 DEVELOPMENT, IN ORDER TO ENHANCE AND ACCELERATE THE DEVELOPMENT OF  SUCH
 INCUBATORS.  FUNDS RECEIVED PURSUANT TO THIS SUBDIVISION MAY BE USED FOR
 PURCHASE OF EQUIPMENT AND FIXTURES, EMPLOYMENT OF DIRECT SERVICE  STAFF,
 PROVISION OF INTERNSHIPS, AND OTHER PURPOSES APPROVED BY THE FOUNDATION,
 BUT  MAY  NOT BE USED FOR CAPITAL CONSTRUCTION. IN EACH CASE, THE AMOUNT
 PROVIDED BY THE FOUNDATION TO AN INCUBATOR SHALL BE MATCHED  BY  COMMIT-
 MENTS  OF SUPPORT FROM PRIVATE AND GOVERNMENTAL SOURCES OTHER THAN STATE
 SOURCES.
   (I) BEGINNING IN THE FOURTH ACADEMIC YEAR FOLLOWING THE ACADEMIC  YEAR
 IN WHICH AN INCUBATOR IS FIRST DESIGNATED, THE FOUNDATION SHALL EVALUATE
 ITS PERFORMANCE.
   (II)  THE  FOUNDATION WILL INITIATE A REDESIGNATION PROCESS IN ACCORD-
 ANCE WITH THE STANDARDS AND CRITERIA  SET  FORTH  IN  PARAGRAPH  (B)  OF
 S. 7893                             3
 
 SUBDIVISION  TWO  OF  THIS SECTION AND IN ACCORDANCE WITH PARAGRAPHS (C)
 AND (D) OF SUBDIVISION TWO OF THIS SECTION.
   (III)  IN YEAR FIVE THE FOUNDATION MAY DESIGNATE, SUBJECT TO AVAILABLE
 APPROPRIATIONS, ADDITIONAL INCUBATORS.
   IN THE EVENT A NEW INCUBATOR IS SELECTED IN THE REDESIGNATION PROCESS,
 THE FOUNDATION SHALL PROVIDE FUNDS TO SUCH NEW INCUBATOR  IN  ACCORDANCE
 WITH  THE  FUNDING MATCH REQUIREMENTS SET FORTH IN SUBPARAGRAPHS (I) AND
 (II) OF THIS PARAGRAPH.
   (B) CONTINUED FUNDING OF THE OPERATIONS OF  EACH  INCUBATOR  SHALL  BE
 BASED  UPON  A  SHOWING  THAT:  THE  CENTER CONTINUES TO COMPLY WITH THE
 CRITERIA ESTABLISHED BY THE FOUNDATION  PURSUANT  TO  PARAGRAPH  (B)  OF
 SUBDIVISION TWO OF THIS SECTION; A DEMONSTRATION OF ASSISTANCE TO EMERG-
 ING BUSINESSES IN NEW YORK STATE; COMPLIANCE WITH THE RULES, REGULATIONS
 AND  GUIDELINES  OF  THE  FOUNDATION;  AND COMPLIANCE WITH ANY CONTRACTS
 BETWEEN THE FOUNDATION AND THE DESIGNATED INCUBATOR.
   (C) EACH INCUBATOR SHALL REPORT ON ITS ACTIVITIES  TO  THE  FOUNDATION
 BOARD IN A MANNER AND ACCORDING TO THE SCHEDULE ESTABLISHED BY THE FOUN-
 DATION,  AND SHALL PROVIDE SUCH ADDITIONAL INFORMATION AS THE FOUNDATION
 MAY REQUIRE.  THE FOUNDATION SHALL EVALUATE INCUBATOR  OPERATIONS  USING
 METHODS  SUCH  AS  SITE  VISITS,  REPORTING OF SPECIFIED INFORMATION AND
 REVIEW EVALUATIONS USING EXPERTS  IN  ENTREPRENEURIAL  DEVELOPMENT.  THE
 FOUNDATION SHALL NOTIFY EACH INCUBATOR OF THE RESULTS OF ITS EVALUATIONS
 AND  FINDINGS  OF  DEFICIENCIES  IN  THE OPERATION OF SUCH INCUBATOR AND
 SHALL WORK WITH SUCH INCUBATORS TO REMEDY SUCH FINDINGS. IF SUCH FACTORS
 ARE NOT REMEDIED, THE FOUNDATION MAY WITHDRAW THE STATE FUNDING SUPPORT,
 IN WHOLE OR IN PART, OR WITHDRAW THE INCUBATOR DESIGNATION.
   4. THE FOUNDATION SHALL MAKE AN ANNUAL REPORT OF  THE  INCUBATORS  FOR
 ENTREPRENEURIAL  DEVELOPMENT  PROGRAM TO THE GOVERNOR AND THE SPEAKER OF
 THE ASSEMBLY, THE TEMPORARY PRESIDENT OF  THE  SENATE,  THE  LEGISLATIVE
 COMMITTEES  ON  ECONOMIC  DEVELOPMENT  AND  TO THE FISCAL COMMITTEES NOT
 LATER THAN  DECEMBER  THIRTY-FIRST  OF  EACH  YEAR.  SUCH  REPORT  SHALL
 INCLUDE, BUT NOT BE LIMITED TO, A LIST OF ACTIVE TENANTS, THE RESULTS OF
 THE  FOUNDATION'S  EVALUATION  OF  EACH  INCUBATOR, A DESCRIPTION OF THE
 ACHIEVEMENTS OF EACH INCUBATOR, A COMPLETE FINANCIAL  STATEMENT  OF  THE
 CORPORATION,  ANY DEFICIENCIES IN THE OPERATION OF EACH INCUBATOR, REME-
 DIAL ACTIONS RECOMMENDED BY THE FOUNDATION, REMEDIAL  ACTIONS  TAKEN  BY
 THE  INCUBATOR,  A  DESCRIPTION  OF BUSINESS ASSISTANCE PROVIDED BY EACH
 INCUBATOR, A DESCRIPTION OF ANY EXTERNAL FUNDING ATTRACTED BY THE  INCU-
 BATOR,  PARTNERSHIPS ENTERED INTO BY THE INCUBATOR, THE AMOUNT OF FINAN-
 CIAL ASSISTANCE PROVIDED BY THE FOUNDATION AND  THE  LEVEL  OF  MATCHING
 FUNDS  PROVIDED  EACH  INCUBATOR  AND  A  DESCRIPTION OF THE USE OF SUCH
 MONIES.
   § 3. This act shall take effect immediately.