NY State Assembly Bill 2009-A251

Assembly Bill A251

Vetoed By Governor

2009-2010 Legislative Session

Creates a regional technology commercialization fund and grant program in the New York state foundation for science, technology and innovation

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Archive: Last Bill Status - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 26, 2009	tabled vetoed memo.46
Aug 14, 2009	delivered to governor
Jul 16, 2009	returned to assembly passed senate 3rd reading cal.884 substituted for s2289a
May 19, 2009	referred to commerce, economic development and small business delivered to senate passed assembly
May 13, 2009	amended on third reading (t) 251a
May 13, 2009	star removed
May 04, 2009	starred on calendar
Apr 30, 2009	advanced to third reading cal.412
Apr 28, 2009	reported
Feb 24, 2009	reported referred to ways and means
Jan 07, 2009	referred to economic development

Votes

- Jul 16, 2009 - Floor Vote
  A251
  
  57
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  5
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jul 16, 2009
      
      aye (57)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young
      
      excused (5)
      
      Diaz
      
      Foley
      
      Johnson
      
      Kruger
      
      Squadron

Bill Amendments

Original

A (Active)

2009-A251 - Details

2009-A251 - Summary

Creates a regional technology commercialization fund and grant program in the New York state foundation for science, technology and innovation to promote and support research and development of inventions and technologies by small businesses and colleges and universities.

2009-A251 - Sponsor Memo

                                BILL NUMBER:A251

TITLE OF BILL:  An act to amend the public authorities law, in relation
to creating a commercialization assistance fund in the New York state
foundation for science, technology and innovation

PURPOSE: To create the Commercialization Assistance Fund, which would
allow the New York State Science and Technology Foundation (NYSTIF) to
provide grants and invest in new companies that promote the commerciali-
zation of new technologies developed at New York state research insti-
tutions.

SUMMARY OF PROVISIONS:

Section 1 describes the legislative intent. Section 2 amends Section
3150 of the public authorities law by defining "research entity."
Section 3 adds a new Section 3154-a to create a commercialization
assistance fund and defines the purposes of the fund, the types of
grants to be made available through the fund, the terms of such grants,
and the criteria to be used in evaluating applications for funds. The
foundation shall give priority to those projects that have the greatest
potential for commercial success and eventual job creation in New York
state, or that will have the largest positive impact on the health and
welfare of the state's citizens or on the natural or built environment.
Section 4 states that, notwithstanding any other law to the contrary,
any appropriations to the New York state foundation for science, tech-

nology and innovation board from the general fund, 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 commercialization assistance fund. Section 5 establishes
an effective date.

JUSTIFICATION: Testimony presented at hearings conducted by the Task
Force for University-Industry Cooperation have repeatedly highlighted
the need for state assistance with early stage product development to
assist inventions supported by state grants to reach the market as a
commercialized product. 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 commer-
cialization 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 benefit.

LEGISLATIVE HISTORY: 2007-2008: A.390-A

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the one hundred eightieth
day after it shall have become law provided, however, that effective
immediately, the addition, amendment and/or repeal of any rule or regu-
lation necessary for the implementation of this act on its effective
date are authorized and directed to be made and completed on or before
such effective date.

2009-A251 - Bill Text download pdf

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

                                   251

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of A. MAGNARELLI, FIELDS, LUPARDO, MILLMAN, PHEFFER,
  SCHIMMINGER, KOON, MARKEY, DESTITO, STIRPE -- Multi-Sponsored by -- M.
  of A. BRENNAN, BRODSKY, CLARK, ESPAILLAT, HOOPER, McENENY, ROBINSON --
  read once and referred to the Committee on Economic  Development,  Job
  Creation, Commerce and Industry

AN  ACT  to  amend the public authorities law, in relation to creating a
  commercialization assistance fund in the New York state foundation for
  science, technology and innovation

  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  finds and
declares that research universities in New York state are at  the  fore-
front  of  scientific  research  that  will lead to the discovery of new
technologies with significant commercial potential. It is further  found
that  universities  often  do  not  have  the resources or experience to
develop their scientific discoveries beyond  the  conceptual  stage  and
that  the  early-stage  development of commercially promising university
inventions would increase the market value of such  inventions  and  the
likelihood that they would be commercialized in New York state. Improve-
ments in value and accelerated product development within the state from
the  further  development  of  university  inventions  would benefit the
universities and would benefit the public through the creation of  high-
quality  jobs,  thus enabling the state to capitalize on its investments
in academic research infrastructure.
  The legislature further finds and declares that  entrepreneurs  at  or
associated  with  universities  frequently  do not have the resources to
turn academic inventions into commercial products and that  small  busi-
nesses  resident  in New York state may not have sufficient resources to
assume the entire cost of applied research and development  required  to
translate  academic discoveries into commercial products. This situation
leads to university licensing of intellectual property  to  out-of-state
firms  and  the  loss  of potential employment for the state's citizens.
Therefore, the legislature finds that it is necessary to assist  univer-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00514-01-9

A. 251                              2

sities  with  the  early-stage  development  of  commercially  promising
inventions, to assist entrepreneurs in forming  companies  in  New  York
state  to  commercialize  such  inventions, and to assist existing small
companies with commercialization of university discoveries.
  The  legislature  further finds that many small businesses resident in
New York state have, or have access to, promising inventions  and  tech-
nologies  the further development of which could result in production of
successful commercial products in the state providing high-quality  jobs
to  the  state's citizens. Often, these small businesses are not able to
invest amounts sufficient to translate these inventions and technologies
into successful products and require outside assistance. Such assistance
at the early stage of product development is  frequently  not  available
from  market  sources  such  as venture capitalists and banks. Thus, the
legislature finds that a program of state assistance is needed to enable
the successful commercialization of promising inventions  and  technolo-
gies  by  small businesses resident in New York state in order to create
employment opportunities for the state's citizens.
  S 2. Section 3150 of the public authorities law, as amended by section
4 of part C of chapter 63 of the laws of 2005, is  amended  to  read  as
follows:
  S 3150. Definitions. As used in this [section] TITLE:
  1.  "Foundation" shall mean the New York state foundation for science,
technology and innovation created by this title;
  2. "Executive director" shall mean the executive director of the foun-
dation;
  3. "Board" shall mean the New York state foundation for science, tech-
nology and innovation board;
  4. "Regional partnerships" shall mean any association or  group  which
is:    (a)  comprised  of local economic development organizations and a
center of excellence as defined by section three of part  T  of  chapter
eighty-four  of  the laws of two thousand two, or in the absence of such
center in the region, at  least  one  institution  of  higher  education
involved  in commercialization efforts similar to such centers of excel-
lence and may include a  combination  of  private  businesses,  business
support  organizations, commercial lending institutions, venture capital
companies, angel investor networks or foundations; (b)  formed  for  the
creation  and  administration  of regional partnership programs; and (c)
certified by the foundation as the regional partnership;
  5. "Regional partnership coordinator" shall mean a nonprofit organiza-
tion chosen by a regional partnership and certified by the foundation to
administer the regional partnership programs;
  6. "Partnership" shall mean regional partnerships; [and]
  7. "Coordinator" shall mean regional partnership coordinator[.]; AND
  8. "RESEARCH ENTITY" SHALL MEAN A NOT-FOR-PROFIT COLLEGE,  UNIVERSITY,
MEDICAL  CENTER, LABORATORY OR OTHER INSTITUTION THAT CONDUCTS AN INTEN-
SIVE, ONGOING PROGRAM OF STUDY DIRECTED TOWARD GREATER  KNOWLEDGE  OF  A
SCIENTIFIC SUBJECT OR TOWARD APPLYING NEW SCIENTIFIC KNOWLEDGE TO MEET A
RECOGNIZED NEED.
  S  3.  The  public  authorities law is amended by adding a new section
3154-a to read as follows:
  S 3154-A. COMMERCIALIZATION ASSISTANCE FUND. 1. THE  COMMERCIALIZATION
ASSISTANCE FUND IS HEREBY CREATED FOR THE PURPOSE OF:  (A) ADVANCING THE
EARLY-STAGE  DEVELOPMENT  OF  COMMERCIALLY PROMISING INVENTIONS OWNED BY
RESEARCH ENTITIES LOCATED IN NEW YORK STATE;
  (B) ENCOURAGING ENTREPRENEURS TO FORM NEW  COMPANIES  LOCATED  IN  NEW
YORK STATE TO MANUFACTURE AND MARKET SUCH INVENTIONS;

A. 251                              3

  (C) ENABLING SMALL BUSINESSES RESIDENT IN THE STATE TO CONDUCT APPLIED
RESEARCH  AND  DEVELOPMENT  NECESSARY  TO  COMMERCIALIZE RESEARCH ENTITY
INVENTIONS; AND
  (D)  ENCOURAGING SMALL BUSINESSES RESIDENT IN THE STATE TO DEVELOP NEW
PRODUCTS OR PROCESSES BASED  ON  PROMISING  INVENTIONS  OR  TECHNOLOGIES
OWNED  BY SUCH BUSINESSES THROUGH GRANTS OR LOANS TO SUCH RESIDENT BUSI-
NESSES.
  2. THE FOUNDATION SHALL USE THE MONIES AVAILABLE IN THE COMMERCIALIZA-
TION ASSISTANCE FUND FOR:
  (A) GRANTS TO RESEARCH ENTITIES LOCATED IN NEW YORK STATE  TO  DEVELOP
COMMERCIALLY  PROMISING RESEARCH DISCOVERIES BEYOND THE CONCEPTUAL STAGE
IN ORDER TO FURTHER THE CHANCE OF COMMERCIALIZATION AND INCREASE  MARKET
VALUE;
  (B)  INVESTMENTS  IN  START-UP  COMPANIES  FORMED  BY ENTREPRENEURS TO
COMMERCIALIZE INTELLECTUAL  PROPERTY  LICENSED  FROM  RESEARCH  ENTITIES
LOCATED IN NEW YORK STATE;
  (C)  MATCHING GRANTS TO SMALL BUSINESSES IN NEW YORK STATE FOR COOPER-
ATIVE APPLIED RESEARCH AND DEVELOPMENT  PROJECTS  WITH  RESEARCH  INSTI-
TUTIONS  TO  TRANSLATE PROMISING DISCOVERIES OF THE RESEARCH INSTITUTION
INTO COMMERCIALLY VIABLE PRODUCTS; AND
  (D) MATCHING GRANTS AND/OR LOANS TO SMALL BUSINESSES IN NEW YORK STATE
FOR COMMERCIAL DEVELOPMENT OF THEIR INNOVATIONS OR TECHNOLOGIES INTO NEW
PRODUCTS OR PROCESSES TO BE MANUFACTURED IN NEW YORK. ANY REPAYMENTS  OF
LOANS OR EARNINGS ON INVESTMENTS MADE BY THE FOUNDATION FROM THE COMMER-
CIALIZATION ASSISTANCE FUND SHALL BE DEPOSITED IN SUCH FUND.
  3.  THE FOUNDATION MAY APPROVE GRANTS FOR ELIGIBLE PROJECTS AUTHORIZED
PURSUANT TO PARAGRAPH (A) OF SUBDIVISION TWO OF THIS  SECTION,  PROVIDED
SUCH  GRANTS  DO  NOT  EXCEED  ONE HUNDRED THOUSAND DOLLARS AND ARE USED
EXCLUSIVELY TO ACCELERATE THE COMMERCIALIZATION OF DISCOVERIES THAT HAVE
THE POTENTIAL TO POSITIVELY IMPACT EXISTING  COMPANIES  LOCATED  IN  NEW
YORK  OR  LEAD  TO  THE  FORMATION OF NEW COMPANIES LOCATED IN NEW YORK.
GRANTS MAY NOT  BE  USED  TO  COMMERCIALIZE  DISCOVERIES  THAT  WILL  BE
LICENSED  TO  FIRMS  THAT DO NOT HAVE THEIR RESEARCH AND DEVELOPMENT AND
MANUFACTURING FACILITIES AND AT LEAST EIGHTY PERCENT OF THEIR  EMPLOYEES
LOCATED  IN  NEW YORK STATE. THE FOUNDATION SHALL APPROVE GRANTS ONLY TO
THOSE RESEARCH ENTITIES THAT CAN DEMONSTRATE THE ABILITY  TO  GUIDE  THE
DEVELOPMENT  OF  THE  DISCOVERIES TOWARD SUCCESSFUL COMMERCIALIZATION IN
THE STATE. ANY REVENUES EARNED BY THE RESEARCH ENTITY FROM THE LICENSING
OF AN INVENTION DEVELOPED WITH A FOUNDATION GRANT MUST BE REINVESTED  IN
THE  RESEARCH  ENTITY'S  EDUCATIONAL AND RESEARCH PROGRAMS OR TECHNOLOGY
TRANSFER ACTIVITIES.
  4. THE FOUNDATION MAY APPROVE INVESTMENTS AUTHORIZED  UNDER  PARAGRAPH
(B)  OF SUBDIVISION TWO OF THIS SECTION IN NEW COMPANIES BEING FORMED TO
FURTHER DEVELOP, PRODUCE, AND SELL  INVENTIONS  LICENSED  FROM  RESEARCH
INSTITUTIONS IN NEW YORK STATE, PROVIDED THAT THE COMPANY'S RESEARCH AND
DEVELOPMENT  AND/OR MANUFACTURING FACILITIES WILL BE LOCATED IN NEW YORK
STATE; THE COMPANY COMMITS TO REMAINING IN  THE  STATE;  THE  INVESTMENT
DOES NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS PER COMPANY; AND, THE
INVESTMENT IS USED SOLELY FOR OPERATING EXPENSES APPROVED BY THE FOUNDA-
TION.  IN  RETURN FOR INVESTMENT BY THE FOUNDATION, THE FOUNDATION SHALL
TAKE AN EQUITY POSITION IN THE COMPANY  OR  NEGOTIATE  ROYALTY  PAYMENTS
BASED ON THE SALE OF ANY PRODUCTS RESULTING FROM THE LICENSED INVENTION.
IN  THE EVENT THAT A COMPANY MOVES ITS RESEARCH AND DEVELOPMENT OR MANU-
FACTURING FACILITIES OR MORE THAN TWENTY PERCENT OF ITS EMPLOYEES OUT OF
THE STATE, THE FOUNDATION SHALL REQUIRE THE COMPANY TO REPAY  AN  AMOUNT
EQUAL TO AT LEAST FIVE TIMES THE FOUNDATION'S TOTAL INVESTMENT.

A. 251                              4

  5.  THE  FOUNDATION MAY APPROVE MATCHING GRANTS AUTHORIZED UNDER PARA-
GRAPH (C) OF SUBDIVISION TWO OF THIS  SECTION  FOR  PROJECTS  UNDERTAKEN
JOINTLY  BY  A  RESEARCH  ENTITY AND A BUSINESS INCORPORATED IN NEW YORK
STATE FOR UP TO HALF OF THE COST OF PROJECTS THAT WILL APPLY DISCOVERIES
OR USE THE INTELLECTUAL RESOURCES OF THE RESEARCH ENTITY TO DEVELOP NEW,
OR  TO  IMPROVE  EXISTING, COMMERCIAL MATERIALS, DEVICES, SYSTEMS, PROC-
ESSES, OR PROTOTYPES, PROVIDED THAT THE GRANTS DO NOT EXCEED ONE HUNDRED
FIFTY THOUSAND DOLLARS; THE COMPANY HAS LESS THAN ONE HUNDRED  FULL-TIME
EMPLOYEES,  AT  LEAST EIGHTY PERCENT OF WHOM WORK IN THE STATE; AND, THE
COMPANY HAS ITS PRINCIPAL RESEARCH  AND  DEVELOPMENT  AND  MANUFACTURING
FACILITIES  LOCATED  IN THE STATE. IN THE EVENT THAT A COMPANY MOVES ITS
RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES OR MORE THAN TWENTY
PERCENT OF ITS EMPLOYEES OUT OF THE STATE, THE FOUNDATION SHALL  REQUIRE
THE  COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST FIVE TIMES THE FOUNDA-
TION'S TOTAL INVESTMENT.
  6. THE FOUNDATION MAY APPROVE GRANTS  AND/OR  LOANS  AUTHORIZED  UNDER
PARAGRAPH  (D) OF SUBDIVISION TWO OF THIS SECTION TO BUSINESSES INCORPO-
RATED IN NEW YORK STATE FOR UP TO ONE-THIRD OF THE COSTS ASSOCIATED WITH
THE DEVELOPMENT OF NEW PRODUCTS OR PROCESSES FROM INVENTIONS OR TECHNOL-
OGIES OWNED BY SUCH BUSINESSES, PROVIDED THAT THE GRANT DOES NOT  EXCEED
ONE  HUNDRED  FIFTY  THOUSAND  DOLLARS;  THE  COMPANY  HAS LESS THAN ONE
HUNDRED FULL-TIME EMPLOYEES, AT LEAST EIGHTY PERCENT OF WHOM WORK IN THE
STATE; AND, THE COMPANY HAS ITS PRINCIPAL RESEARCH AND  DEVELOPMENT  AND
MANUFACTURING  FACILITIES LOCATED IN THE STATE. IN THE EVENT THE COMPANY
MOVES ITS RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES  OR  MORE
THAN  TWENTY  PERCENT  OF ITS EMPLOYEES OUT OF THE STATE, THE FOUNDATION
SHALL REQUIRE THE COMPANY TO REPAY AN AMOUNT  EQUAL  TO  AT  LEAST  FIVE
TIMES THE FOUNDATION'S TOTAL INVESTMENT.
  7. PURSUANT TO SECTION THIRTY-ONE HUNDRED FIFTY-ONE OF THIS TITLE, THE
FOUNDATION  SHALL  PROMULGATE  REGULATIONS  ESTABLISHING THE APPLICATION
PROCESS AND THE CRITERIA THAT WILL BE USED TO EVALUATE APPLICATIONS  FOR
GRANTS  AND INVESTMENTS FROM THE COMMERCIALIZATION ASSISTANCE FUND. SUCH
APPLICATIONS SHALL INCLUDE, BUT NOT BE LIMITED TO, A DESCRIPTION OF  THE
EXPECTED  SIGNIFICANCE  OF  THE PROJECT TO NEW YORK STATE, INCLUDING THE
ESTIMATED NUMBER OF JOBS THAT COULD  BE  CREATED  AS  A  RESULT  OF  THE
PROJECT.  IN  SELECTING  APPLICATIONS  FOR FUNDING, THE FOUNDATION SHALL
GIVE PRIORITY TO THOSE PROJECTS THAT HAVE  THE  GREATEST  POTENTIAL  FOR
COMMERCIAL  SUCCESS  AND EVENTUAL JOB CREATION IN NEW YORK STATE OR THAT
WILL HAVE THE LARGEST POSITIVE IMPACT ON THE HEALTH AND WELFARE  OF  THE
STATE'S CITIZENS OR ON THE NATURAL OR BUILT ENVIRONMENT.
  S 4. Notwithstanding any other law to the contrary, any appropriations
to  the New York state foundation for science, technology and innovation
board from the general fund, 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 commercializa-
tion assistance fund.
  S 5. This act shall take effect on the one hundred eightieth 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 are
authorized and directed to be made  and  completed  on  or  before  such
effective date.

2009-A251A (ACTIVE) - Details

2009-A251A (ACTIVE) - Summary

2009-A251A (ACTIVE) - Bill Text download pdf

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

                                 251--A
                                                        Cal. No. 412

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  M.  of A. MAGNARELLI, FIELDS, LUPARDO, MILLMAN, PHEFFER,
  SCHIMMINGER, KOON, MARKEY, DESTITO, STIRPE, RAMOS,  GORDON  --  Multi-
  Sponsored  by -- M.  of A. BRENNAN, BRODSKY, CLARK, ESPAILLAT, HOOPER,
  McENENY, ROBINSON -- read  once  and  referred  to  the  Committee  on
  Economic  Development, Job Creation, Commerce and Industry -- reported
  from committee, advanced to  a  third  reading,  amended  and  ordered
  reprinted, retaining its place on the order of third reading

AN  ACT  to  amend the public authorities law, in relation to creating a
  regional commercialization technology fund in the New York state foun-
  dation for science, technology and innovation; and to amend the execu-
  tive law, in relation to the research development plan

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

  Section  1.  Section 3150 of the public authorities law, as amended by
section 4 of part C of chapter 63 of the laws of  2005,  is  amended  to
read as follows:
  S 3150. Definitions. As used in this [section] TITLE:
  1.  "Foundation" shall mean the New York state foundation for science,
technology and innovation created by this title;
  2. "Executive director" shall mean the executive director of the foun-
dation;
  3. "Board" shall mean the New York state foundation for science, tech-
nology and innovation board;
  4. "Regional partnerships" shall mean any association or  group  which
is:    (a)  comprised  of local economic development organizations and a
center of excellence as defined by section three of part  T  of  chapter
eighty-four  of  the laws of two thousand two, or in the absence of such
center in the region, at  least  one  institution  of  higher  education
involved  in commercialization efforts similar to such centers of excel-
lence and may include a  combination  of  private  businesses,  business

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                      [ ] is old law to be omitted.
                                                           LBD00514-06-9

A. 251--A                           2

support  organizations, commercial lending institutions, venture capital
companies, angel investor networks or foundations; (b)  formed  for  the
creation  and  administration  of regional partnership programs; and (c)
certified by the foundation as the regional partnership;
  5. "Regional partnership coordinator" shall mean a nonprofit organiza-
tion chosen by a regional partnership and certified by the foundation to
administer the regional partnership programs;
  6. "Partnership" shall mean regional partnerships; [and]
  7. "Coordinator" shall mean regional partnership coordinator[.]; AND
  8.  "RESEARCH ENTITY" SHALL MEAN A NOT-FOR-PROFIT COLLEGE, UNIVERSITY,
MEDICAL CENTER, LABORATORY OR OTHER INSTITUTION THAT CONDUCTS AN  INTEN-
SIVE,  ONGOING  PROGRAM  OF STUDY DIRECTED TOWARD GREATER KNOWLEDGE OF A
SCIENTIFIC SUBJECT OR TOWARD APPLYING NEW SCIENTIFIC KNOWLEDGE TO MEET A
RECOGNIZED NEED.
  S 2. The public authorities law is amended by  adding  a  new  section
3154-a to read as follows:
  S  3154-A.  REGIONAL  TECHNOLOGY  COMMERCIALIZATION FUND. THE REGIONAL
TECHNOLOGY COMMERCIALIZATION FUND IS HEREBY CREATED WITHIN  THE  FOUNDA-
TION ON SCIENCE, TECHNOLOGY AND INNOVATION.
  1.  THE  MONIES  IN THE FUND SHALL BE MADE AVAILABLE THROUGH A REQUEST
FOR PROPOSALS PROCESS TO ACADEMIC RESEARCH INSTITUTIONS, REGIONAL  TECH-
NOLOGY  DEVELOPMENT  CORPORATIONS,  CENTERS  FOR ADVANCED TECHNOLOGY, OR
OTHER  TECHNOLOGY-BASED  ECONOMIC  DEVELOPMENT  ORGANIZATIONS  FOR   THE
PURPOSES OF PROVIDING:
  (A)  GRANTS  TO RESEARCH ENTITIES LOCATED IN NEW YORK STATE TO DEVELOP
COMMERCIALLY PROMISING RESEARCH DISCOVERIES BEYOND THE CONCEPTUAL  STAGE
IN  ORDER TO FURTHER THE CHANCE OF COMMERCIALIZATION AND INCREASE MARKET
VALUE;
  (B) GRANTS TO START-UP COMPANIES FORMED BY  ENTREPRENEURS  TO  COMMER-
CIALIZE INTELLECTUAL PROPERTY LICENSED FROM RESEARCH ENTITIES LOCATED IN
NEW YORK STATE;
  (C)  MATCHING GRANTS TO SMALL BUSINESSES IN NEW YORK STATE FOR COOPER-
ATIVE APPLIED RESEARCH AND DEVELOPMENT  PROJECTS  WITH  RESEARCH  INSTI-
TUTIONS  TO  TRANSLATE PROMISING DISCOVERIES OF THE RESEARCH INSTITUTION
INTO COMMERCIALLY VIABLE PRODUCTS; AND
  2. SUCCESSFUL APPLICANTS  MAY  AWARD  INDIVIDUAL  GRANTS  OR  MATCHING
GRANTS  NOT  EXCEEDING ONE HUNDRED THOUSAND DOLLARS FOR THE PURPOSES FOR
THIS PROGRAM.
  3. THE FOUNDATION SHALL ALLOCATE BETWEEN FIVE HUNDRED THOUSAND AND ONE
MILLION DOLLARS FOR EACH ELIGIBLE PROPOSAL TO  BE  USED  EXCLUSIVELY  TO
ACCELERATE  THE COMMERCIALIZATION OF DISCOVERIES THAT HAVE THE POTENTIAL
TO POSITIVELY IMPACT EXISTING COMPANIES LOCATED IN NEW YORK OR  LEAD  TO
THE FORMATION OF NEW COMPANIES LOCATED IN NEW YORK.
  4.  NO LATER THAN AUGUST FIRST, TWO THOUSAND NINE, AND ANNUALLY THERE-
AFTER, THE FOUNDATION SHALL ISSUE A REQUEST FOR PROPOSALS AND THE CRITE-
RIA THAT WILL BE USED TO EVALUATE SUCH PROPOSALS FOR USE OF THE REGIONAL
TECHNOLOGY COMMERCIALIZATION FUND. SUCH PROPOSALS SHALL INCLUDE, BUT NOT
BE LIMITED TO, A DESCRIPTION OF THE EXPECTED SIGNIFICANCE  TO  NEW  YORK
STATE,  INCLUDING  THE  ESTIMATED  ECONOMIC IMPACT. AWARDS SHALL BE MADE
WITHIN NINETY DAYS FOLLOWING THE ISSUANCE OF THE REQUEST FOR PROPOSALS.
  5. THE FOUNDATION SHALL GIVE PREFERENCE  TO  THOSE  APPLICATIONS  THAT
DEMONSTRATE COLLABORATION AMONG ACADEMIC RESEARCH INSTITUTIONS, INDUSTRY
ASSETS,  ECONOMIC  DEVELOPMENT  ORGANIZATIONS  AND WORKFORCE DEVELOPMENT
PROGRAMS WITHIN A REGION OF THE STATE AND THAT SHOW THE  GREATER  POTEN-
TIAL FOR COMMERCIAL SUCCESS AND EVENTUAL JOB CREATION IN NEW YORK STATE.

A. 251--A                           3

  S  3.  Section  209-p of the executive law, as added by chapter 624 of
the laws of 1999, paragraph (c) of subdivision 2, 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.
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

A. 251--A                           4

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)  The capital facility program shall also provide financing for the
reconstruction, rehabilitation or  improvement  of  existing  laboratory
facilities. Funds available pursuant to this subdivision shall be avail-
able for research facilities at all institutions of higher education and
research institutions in New York state.
  (e)  The office and the city university construction fund may contract
for the construction fund to design,  construct,  acquire,  reconstruct,
rehabilitate  and  improve research and development facilities for those
primary host institutions which are senior colleges of the city  univer-
sity 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.
  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 4. Notwithstanding any other law to the contrary, any appropriations
to  the New York state foundation for science, technology and innovation
board from the general fund, 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 regional tech-
nology commercialization fund.
  S 5. This act shall take effect on the sixtieth  day  after  it  shall
have become a law.

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