NY State Assembly Bill 2009-A9406

Archive: Last Bill Status - In Assembly Committee

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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 15, 2010	reported referred to ways and means
Feb 10, 2010	print number 9406a
Feb 10, 2010	amend and recommit to economic development
Jan 06, 2010	referred to economic development

Bill Amendments

Original

A (Active)

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multi-Sponsors

2009-A9406 - Details

Current Committee:: Assembly Ways And Means
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §44, UDC Act; add §3154-a, Pub Auth L
Versions Introduced in 2011-2012 Legislative Session:: A3464

2009-A9406 - Summary

Creates the Seed-NY investment fund; authorizes the transfer of all assets and liabilities of the small business technology investment fund for the Seed-NY investment fund.

2009-A9406 - Bill Text download pdf

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

                                  9406

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced  by  M.  of  A.  DelMONTE  --  Multi-Sponsored by -- M. of A.
  GABRYSZAK, LUPARDO, SCHIMMINGER --  read  once  and  referred  to  the
  Committee on Economic Development, Job Creation, Commerce and Industry

AN ACT to amend the New York state urban development corporation act and
  the  public  authorities  law,  in  relation  to  creating the seed-NY
  investment fund

  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 44 to read as follows:
  S  44.   THE SEED-NY INVESTMENT FUND. 1. DEFINITIONS. FOR THE PURPOSES
OF THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE  FOLLOWING
MEANINGS  UNLESS THE CONTEXT SHALL INDICATE ANOTHER OR DIFFERENT MEANING
OR INTENT:
  (A) "REGIONAL INVESTMENT  FUND"  SHALL  MEAN  A  LIMITED  PARTNERSHIP,
LIMITED   LIABILITY  PARTNERSHIP,  A  LIMITED  LIABILITY  COMPANY  OR  A
NOT-FOR-PROFIT FUND UNDER EXPERIENCED PROFESSIONAL  MANAGEMENT  THAT  IS
FAMILIAR  WITH  SEED  CAPITAL INVESTMENT, APPROPRIATE BUSINESS PRACTICES
AND TECHNOLOGY-ORIENTED  PRODUCTS  AND  SERVICES,  AND  FORMED  FOR  THE
PURPOSE  OF  PROVIDING  PRIVATE  EQUITY TO TECHNOLOGY-BASED COMPANIES IN
THEIR FORMATIVE STAGES, ENCOMPASSES AT LEAST TWO COUNTIES,  AND  INVESTS
IN QUALIFIED ENTERPRISES LOCATED WITHIN NEW YORK STATE.
  (B) "QUALIFIED ENTERPRISE" SHALL MEAN:
  (I)  A COMPANY OR A PROPOSED COMPANY THAT HAS OR WILL LOCATE ITS PRIN-
CIPAL PLACE OF BUSINESS IN NEW YORK STATE, THAT IS, OR PROPOSES  TO  BE,
ENGAGED  IN  THIS  STATE  IN RESEARCH AND DEVELOPMENT OR HIGH TECHNOLOGY
MANUFACTURING, AND  THAT  DEMONSTRATES  THE  POTENTIAL  FOR  SUBSTANTIAL
GROWTH AND JOB DEVELOPMENT IN AN EMERGING TECHNOLOGY FIELD AS DEFINED IN
SECTION 3102-E OF THE PUBLIC AUTHORITIES LAW OR AS ADOPTED BY THE BOARD;
AND
  (II)  IS FORMULATING, HAS FORMULATED, OR IS EXECUTING A DETAILED BUSI-
NESS PLAN FOR PROOF-OF-CONCEPT OR INITIAL PRODUCT COMMERCIALIZATION.

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

                      [ ] is old law to be omitted.
                                                           LBD15193-02-0

A. 9406                             2

  (C) "SEED CAPITAL" SHALL MEAN  FINANCIAL  ASSISTANCE  TO  A  QUALIFIED
ENTERPRISE, IN THE FORM OF EQUITY OR DEBT SECURITIES OR ROYALTIES.
  2. INVESTMENTS IN REGIONAL INVESTMENT FUNDS. (A) THE CORPORATION SHALL
MAKE  INVESTMENTS  TO ENCOURAGE AND FACILITATE THE CREATION OR EXPANSION
OF REGIONAL INVESTMENT FUNDS THAT SERVE THE PURPOSES  OF  THIS  SECTION.
THE  BOARD  OF  DIRECTORS  SHALL ADOPT CRITERIA AND GUIDELINES GOVERNING
SUCH INVESTMENTS, WHICH SHALL REQUIRE THAT:
  (I) THERE EXISTS A NEED FOR SEED CAPITAL IN THE REGION SERVED OR TO BE
SERVED BY A REGIONAL INVESTMENT FUND;
  (II) SUPPORT FOR A REGIONAL INVESTMENT FUND EXISTS FROM LOCAL  GOVERN-
MENTS,  ECONOMIC  DEVELOPMENT  AGENCIES, AND BUSINESS COMMUNITIES WITHIN
THE REGION OR AREA TO BE SERVICED BY SUCH FUND;
  (III) THE REGIONAL INVESTMENT FUND HAS THE  CAPACITY  TO  PERFORM  DUE
DILIGENCE  IN  MAKING  INVESTMENT  DECISIONS,  AND TO PROVIDE MANAGEMENT
EXPERTISE AND OTHER VALUE-ADDED  SERVICES  TO  ITS  PORTFOLIO  COMPANIES
INCLUDING,  BUT  NOT  LIMITED TO, ACCESS TO CAPITAL, BUSINESS EXPERTISE,
TECHNOLOGY COMMERCIALIZATION SERVICES AND  A  NETWORK  OF  RESOURCES  IN
ORDER TO ADVANCE THE DEVELOPMENT OF NEW TECHNOLOGIES;
  (IV)  THE  REGIONAL  INVESTMENT  FUND ESTABLISHES CONFLICT-OF-INTEREST
PROVISIONS ACCEPTABLE TO THE CORPORATION;
  (V) TO THE MAXIMUM EXTENT FEASIBLE, THE REGIONAL INVESTMENT FUND  WILL
INVEST IN FIRMS WHICH HAVE THE GREATEST POTENTIAL FOR JOB CREATION;
  (VI) INVESTMENTS MADE BY THE CORPORATION IN A REGIONAL INVESTMENT FUND
SHALL  NOT  EXCEED  FIVE  MILLION  DOLLARS  AND, SHALL BE MATCHED BY THE
REGIONAL FUND ON AT LEAST A ONE-TO-ONE BASIS  WITH  MONIES,  OTHER  THAN
STATE MONIES, UNLESS THE BOARD FINDS THAT A REDUCED MATCHING REQUIREMENT
WILL FURTHER THE PURPOSES OF THIS SECTION; AND
  (VII)  INVESTMENTS  MADE  BY  A  REGIONAL INVESTMENT FUND THAT INCLUDE
FUNDS RECEIVED FROM THE CORPORATION SHALL BE MADE ONLY FOR THE FINANCING
AUTHORIZED BY SUBDIVISION 3 OF THIS SECTION.
  (B) (I) THE CORPORATION SHALL MAKE INVESTMENTS IN  QUALIFIED  REGIONAL
INVESTMENT FUNDS VIA THE ISSUANCE OF A REQUEST FOR PROPOSALS TO REGIONAL
AND  LOCAL  ECONOMIC  DEVELOPMENT  ORGANIZATIONS, TECHNOLOGY DEVELOPMENT
ORGANIZATIONS, RESEARCH UNIVERSITIES, AND INVESTMENT FUNDS THAT  PROVIDE
SMALL-SCALE INVESTMENTS IN HIGH-TECHNOLOGY COMPANIES IN NEW YORK STATE.
  (II)  IN  AWARDING FUNDS PURSUANT TO THIS SUBDIVISION, THE CORPORATION
SHALL ASSURE ADEQUATE GEOGRAPHIC DISTRIBUTION TO THE EXTENT FEASIBLE.
  3. REGIONAL INVESTMENT FUNDS. (A) REGIONAL INVESTMENT FUNDS  RECEIVING
INVESTMENTS FROM THE CORPORATION UNDER THIS ACT SHALL USE SUCH FUNDS AND
THE  REQUIRED  MATCHING  FUNDS  TO  PROVIDE  SEED  CAPITAL AND FOLLOW-ON
FINANCING TO QUALIFIED ENTERPRISES, PROVIDED THAT THE  REGIONAL  INVEST-
MENT FUND SHALL NOT:
  (I)  INVEST  AN AMOUNT IN ANY SINGLE QUALIFIED ENTERPRISE THAT EXCEEDS
FIFTY PERCENT OF THE TOTAL INVESTMENT FROM ALL OTHER SOURCES IN ANY SUCH
ENTERPRISE; OR
  (II) INVEST OVER FIVE HUNDRED THOUSAND DOLLARS IN ANY ONE COMPANY,  OR
SEVEN  HUNDRED  FIFTY  THOUSAND  DOLLARS  IN THE CASE OF A BIOTECHNOLOGY
COMPANY, AT ANY ONE TIME.
  (B) A REGIONAL INVESTMENT FUND, BEFORE APPROVING ANY  APPLICATION  FOR
FINANCIAL ASSISTANCE UNDER THIS SECTION, SHALL FIND THAT:
  (I) THE QUALIFIED ENTERPRISE AND ITS PRODUCT OR PROCESS HAVE A REASON-
ABLE CHANCE OF BEING COMMERCIALLY SUCCESSFUL;
  (II)  THE  EMPLOYMENT  CREATED OR MAINTAINED AS A RESULT OF THE FUND'S
INVESTMENT WILL BE IN NEW YORK STATE; AND
  (III) PROVISIONS ARE IN PLACE FOR THE REPAYMENT OF THE  FUNDS  IF  THE
COMPANY RECEIVING ASSISTANCE LEAVES THE STATE.

A. 9406                             3

  4.  REGIONAL  INVESTMENT FUND REPORTING. THE CORPORATION SHALL REQUIRE
ANY REGIONAL INVESTMENT FUND RECEIVING INVESTMENTS UNDER THIS SECTION TO
FILE A REPORT WITH THE CORPORATION BY  DECEMBER  1,  2011  AND  ANNUALLY
THEREAFTER.  SUCH REPORT SHALL INCLUDE:
  (A)  THE  TOTAL  AMOUNT  OF FUNDS COMMITTED TO THE REGIONAL INVESTMENT
FUND AND THE AMOUNT THAT HAS BEEN INVESTED;
  (B) THE NET ASSET VALUE OF THE FUND;
  (C) THE AMOUNT INVESTED IN EACH PORTFOLIO COMPANY FROM  THE  FUND  AND
FROM OTHER SOURCES;
  (D)  THE TYPE OF PRODUCT OR TECHNOLOGY BEING DEVELOPED BY EACH PORTFO-
LIO COMPANY;
  (E) THE LOCATION OF EACH PORTFOLIO COMPANY;
  (F) THE NUMBER OF JOBS PROJECTED TO BE CREATED AND RETAINED; AND
  (G) SUCH OTHER INFORMATION AS THE CORPORATION DEEMS NECESSARY.
  5. REPORT OF THE CORPORATION. THE  CORPORATION  SHALL  SUBMIT  TO  THE
GOVERNOR  AND  THE  LEGISLATURE  A SUMMARY AND EVALUATION OF THE REPORTS
SUBMITTED TO THE CORPORATION PURSUANT TO SUBDIVISION 4 OF  THIS  SECTION
AND AN EVALUATION OF THE PERFORMANCE OF THE REGIONAL INVESTMENT FUNDS ON
OR BEFORE FEBRUARY 1, 2012 AND ANNUALLY THEREAFTER.
  S  2.  The  public  authorities law is amended by adding a new section
3154-a to read as follows:
  S 3154-A. SMALL BUSINESS INVESTMENT FUND ASSETS AND LIABILITIES.    1.
ALL  OF  THE  ASSETS  AND  LIABILITIES  OF THE SMALL BUSINESS TECHNOLOGY
INVESTMENT FUND ESTABLISHED PURSUANT TO APPROPRIATIONS MADE  BY  VARIOUS
CHAPTERS OF THE LAW INCLUDING, BUT NOT LIMITED TO CHAPTER FIFTY-THREE OF
THE LAWS OF NINETEEN HUNDRED EIGHTY-ONE, CHAPTER FIFTY-THREE OF THE LAWS
OF  NINETEEN  HUNDRED  EIGHTY-FIVE,  CHAPTER  FIFTY-THREE OF THE LAWS OF
NINETEEN HUNDRED EIGHTY-SIX, CHAPTER FIFTY-THREE OF THE LAWS OF NINETEEN
HUNDRED EIGHTY-SEVEN,  CHAPTER  FIFTY-THREE  OF  THE  LAWS  OF  NINETEEN
HUNDRED  EIGHTY-EIGHT,  CHAPTER  FIFTY-THREE  OF  THE  LAWS  OF NINETEEN
HUNDRED EIGHTY-NINE, CHAPTER FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED
NINETY, CHAPTER FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED  NINETY-ONE,
CHAPTER  FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINETY-TWO, CHAPTER
FIFTY-THREE OF  THE  LAWS  OF  NINETEEN  HUNDRED  NINETY-THREE,  CHAPTER
FIFTY-THREE  OF  THE  LAWS  OF NINETEEN HUNDRED NINETY-FOUR, AND CHAPTER
FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINETY-FIVE, SHALL  BE  MADE
AVAILABLE  FOR  THE  SEED-NY  INVESTMENT  FUND  ESTABLISHED  PURSUANT TO
SECTION FORTY-FOUR OF SECTION ONE OF THE NEW YORK STATE  URBAN  DEVELOP-
MENT CORPORATION ACT.
  2.  THE  BOARD  SHALL PREPARE A PLAN, WITHIN NINETY DAYS FOLLOWING THE
EFFECTIVE DATE OF THIS SECTION, TO  LIQUIDATE  ALL  CURRENT  ASSETS  AND
LIABILITIES OF THE SMALL BUSINESS TECHNOLOGY INVESTMENT FUND.
  3.  THE  PUBLICLY-TRADED  ASSETS AND ANY WORKING CAPITAL SHALL BE MADE
FULLY AVAILABLE TO THE SEED-NY INVESTMENT FUND ESTABLISHED  PURSUANT  TO
SECTION  FORTY-FOUR  OF SECTION ONE OF THE NEW YORK STATE URBAN DEVELOP-
MENT CORPORATION ACT FOR ALLOCATION TO REGIONAL INVESTMENT FUNDS AS SOON
AS PRACTICABLE.
  4. THE BOARD SHALL ALSO TAKE WHATEVER ACTIONS ARE NECESSARY TO  LIQUI-
DATE  THE  REMAINING  ASSETS OF THE SMALL BUSINESS TECHNOLOGY INVESTMENT
FUND AS SOON AS PRACTICABLE, BUT NOT MORE THAN TWO YEARS  FOLLOWING  THE
EFFECTIVE DATE OF THIS SECTION.
  S 3. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

multi-Sponsors

2009-A9406A (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §44, UDC Act; add §3154-a, Pub Auth L
Versions Introduced in 2011-2012 Legislative Session:: A3464

2009-A9406A (ACTIVE) - Summary

Creates the Seed-NY investment fund; authorizes the transfer of all assets and liabilities of the small business technology investment fund for the Seed-NY investment fund.

2009-A9406A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A9406A

TITLE  OF  BILL:    An act to amend the New York state urban development
corporation act and the public authorities law, in relation to  creating
the seed-NY investment fund

Purpose  Or  General  Idea  Of  Bill:   Authorizes the urban development
corporation/empire state development (ESD) to invest in regional  equity
funds to help finance the commercialization of new technologies.

Summary Of Specific Provisions:  A new investment fund is created within
the  urban development corporation/empire state that will make awards in
regional equity funds providing seed capital for early stage commercial-
ization of technologies. Criteria and  procedures  for  the  awards  are
established  Funds  will  be  competitively  awarded  to entities with a
demonstrated  record  for  making  syndicated  equity-based   seed-stage
investments.  Individual investments would not exceed five hundred thou-
sand  dollars,  or seven hundred fifty thousand dollars in the case of a
biotechnology company, at any one time and be  matched  by  at  least  a
one-to-one  basis  with  funds  other  than state monies. Allocations to
these companies would be in return for  equity  or  debt  securities  or
royalties.  Due  to  the high risk involved and the economic development
component attributed to these funds, the expected return  on  investment
would  be  less  than  that  which  would  be expected for a traditional
venture capital fund in the private sector.

The corporation would require regional funds to file annual  reports  on
the use of funds and is required to summarize and evaluate these reports
for the legislature and the governor.

The assets of the the small business technology investment fund would be
liquidated to help finance the new fund.

Effects  Of Present Law Which This Bill Would Alter:  Chapter 174 of the
laws of 1968 is amended by adding  a  new  section  44  and  the  public
authorities law is amended by adding a new section 3154-a.

Justification:   There is a need for commercialization assistance in New
York and regional entities, aware of the  strengths  and  potentials  in
their  own  economies,  are well-suited to determine how to optimize the
effectiveness of these awards. 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

Such assistance is frequently not available from market sources, such as
venture capitalists and banks, at such an early stage of product  devel-
opment. A program of state assistance is needed to enable the successful
commercialization of promising inventions and technologies.

This bill introduces the concept of "investing in investors" by enabling
the  corporation  to  decentralize its investment program. The State has
many successful regional investment funds that can provide such  assist-
ance, which increases the chances of success of new ventures.

Prior Legislative History:  none

Fiscal Implications For State And Local Governments:  none

Effective Date:  Immediately

2009-A9406A (ACTIVE) - Bill Text download pdf

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

                                 9406--A

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced  by M. of A. DelMONTE, LUPARDO, SCHROEDER, SCHIMMINGER, ALES-
  SI, GABRYSZAK -- Multi-Sponsored by -- M. of A. MORELLE --  read  once
  and  referred  to the Committee on Economic Development, Job Creation,
  Commerce and Industry -- 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 and
  the  public  authorities  law,  in  relation  to  creating the seed-NY
  investment fund

  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 44 to read as follows:
  S  44.   THE SEED-NY INVESTMENT FUND. 1. DEFINITIONS. FOR THE PURPOSES
OF THIS SECTION, THE FOLLOWING WORDS AND TERMS SHALL HAVE THE  FOLLOWING
MEANINGS  UNLESS THE CONTEXT SHALL INDICATE ANOTHER OR DIFFERENT MEANING
OR INTENT:
  (A) "REGIONAL INVESTMENT  FUND"  SHALL  MEAN  A  LIMITED  PARTNERSHIP,
LIMITED   LIABILITY  PARTNERSHIP,  A  LIMITED  LIABILITY  COMPANY  OR  A
NOT-FOR-PROFIT FUND UNDER EXPERIENCED PROFESSIONAL  MANAGEMENT  THAT  IS
FAMILIAR  WITH  SEED  CAPITAL INVESTMENT, APPROPRIATE BUSINESS PRACTICES
AND TECHNOLOGY-ORIENTED  PRODUCTS  AND  SERVICES,  AND  FORMED  FOR  THE
PURPOSE  OF  PROVIDING  PRIVATE  EQUITY TO TECHNOLOGY-BASED COMPANIES IN
THEIR FORMATIVE STAGES, ENCOMPASSES AT LEAST TWO COUNTIES,  AND  INVESTS
IN QUALIFIED ENTERPRISES LOCATED WITHIN NEW YORK STATE.
  (B) "QUALIFIED ENTERPRISE" SHALL MEAN:
  (I)  A COMPANY OR A PROPOSED COMPANY THAT HAS OR WILL LOCATE ITS PRIN-
CIPAL PLACE OF BUSINESS IN NEW YORK STATE, THAT IS, OR PROPOSES  TO  BE,
ENGAGED  IN  THIS  STATE  IN RESEARCH AND DEVELOPMENT OR HIGH TECHNOLOGY
MANUFACTURING, AND  THAT  DEMONSTRATES  THE  POTENTIAL  FOR  SUBSTANTIAL
GROWTH AND JOB DEVELOPMENT IN AN EMERGING TECHNOLOGY FIELD AS DEFINED IN
SECTION 3102-E OF THE PUBLIC AUTHORITIES LAW OR AS ADOPTED BY THE BOARD;
AND

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

                      [ ] is old law to be omitted.
                                                           LBD15193-03-0

A. 9406--A                          2

  (II)  IS FORMULATING, HAS FORMULATED, OR IS EXECUTING A DETAILED BUSI-
NESS PLAN FOR PROOF-OF-CONCEPT OR INITIAL PRODUCT COMMERCIALIZATION.
  (C)  "SEED  CAPITAL"  SHALL  MEAN  FINANCIAL ASSISTANCE TO A QUALIFIED
ENTERPRISE, IN RETURN FOR EQUITY OR DEBT SECURITIES OR ROYALTIES.
  2. INVESTMENTS IN REGIONAL INVESTMENT FUNDS. (A) THE CORPORATION SHALL
MAKE INVESTMENTS TO ENCOURAGE AND FACILITATE THE CREATION  OR  EXPANSION
OF  REGIONAL  INVESTMENT  FUNDS THAT SERVE THE PURPOSES OF THIS SECTION.
THE BOARD OF DIRECTORS SHALL ADOPT  CRITERIA  AND  GUIDELINES  GOVERNING
SUCH INVESTMENTS, WHICH SHALL REQUIRE THAT:
  (I) THERE EXISTS A NEED FOR SEED CAPITAL IN THE REGION SERVED OR TO BE
SERVED BY A REGIONAL INVESTMENT FUND;
  (II)  SUPPORT FOR A REGIONAL INVESTMENT FUND EXISTS FROM LOCAL GOVERN-
MENTS, ECONOMIC DEVELOPMENT AGENCIES, AND  BUSINESS  COMMUNITIES  WITHIN
THE REGION OR AREA TO BE SERVICED BY SUCH FUND;
  (III)  THE  REGIONAL  INVESTMENT  FUND HAS THE CAPACITY TO PERFORM DUE
DILIGENCE IN MAKING INVESTMENT  DECISIONS,  AND  TO  PROVIDE  MANAGEMENT
EXPERTISE  AND  OTHER  VALUE-ADDED  SERVICES  TO ITS PORTFOLIO COMPANIES
WHICH SERVICES MAY INCLUDE ACCESS TO CAPITAL, BUSINESS EXPERTISE,  TECH-
NOLOGY COMMERCIALIZATION SERVICES AND A NETWORK OF RESOURCES IN ORDER TO
ADVANCE THE DEVELOPMENT OF NEW TECHNOLOGIES;
  (IV)  THE  REGIONAL  INVESTMENT  FUND ESTABLISHES CONFLICT-OF-INTEREST
PROVISIONS ACCEPTABLE TO THE CORPORATION;
  (V) TO THE MAXIMUM EXTENT FEASIBLE, THE REGIONAL INVESTMENT FUND  WILL
INVEST IN FIRMS WHICH HAVE THE GREATEST POTENTIAL FOR JOB CREATION;
  (VI) INVESTMENTS MADE BY THE CORPORATION IN A REGIONAL INVESTMENT FUND
SHALL  NOT  EXCEED  FIVE  MILLION  DOLLARS  AND, SHALL BE MATCHED BY THE
REGIONAL FUND ON AT LEAST A ONE-TO-ONE BASIS  WITH  MONIES,  OTHER  THAN
STATE MONIES, UNLESS THE BOARD FINDS THAT A REDUCED MATCHING REQUIREMENT
WILL FURTHER THE PURPOSES OF THIS SECTION; AND
  (VII)  INVESTMENTS  MADE  BY  A  REGIONAL INVESTMENT FUND THAT INCLUDE
FUNDS RECEIVED FROM THE CORPORATION SHALL BE MADE ONLY FOR THE FINANCING
AUTHORIZED BY SUBDIVISION 3 OF THIS SECTION.
  (B) (I) THE CORPORATION SHALL MAKE INVESTMENTS IN  QUALIFIED  REGIONAL
INVESTMENT FUNDS VIA THE ISSUANCE OF A REQUEST FOR PROPOSALS TO REGIONAL
AND  LOCAL  ECONOMIC  DEVELOPMENT  ORGANIZATIONS, TECHNOLOGY DEVELOPMENT
ORGANIZATIONS, RESEARCH UNIVERSITIES, AND INVESTMENT FUNDS THAT  PROVIDE
SMALL-SCALE INVESTMENTS IN HIGH-TECHNOLOGY COMPANIES IN NEW YORK STATE.
  (II)  IN  AWARDING FUNDS PURSUANT TO THIS SUBDIVISION, THE CORPORATION
SHALL ASSURE ADEQUATE GEOGRAPHIC DISTRIBUTION TO THE EXTENT FEASIBLE.
  3. REGIONAL INVESTMENT FUNDS. (A) REGIONAL INVESTMENT FUNDS  RECEIVING
INVESTMENTS FROM THE CORPORATION UNDER THIS ACT SHALL USE SUCH FUNDS AND
THE  REQUIRED  MATCHING  FUNDS  TO  PROVIDE  SEED  CAPITAL AND FOLLOW-ON
FINANCING TO QUALIFIED ENTERPRISES, PROVIDED THAT THE  REGIONAL  INVEST-
MENT FUND SHALL NOT:
  (I)  INVEST  AN AMOUNT IN ANY SINGLE QUALIFIED ENTERPRISE THAT EXCEEDS
FIFTY PERCENT OF THE TOTAL INVESTMENT FROM ALL OTHER SOURCES IN ANY SUCH
ENTERPRISE; OR
  (II) INVEST OVER FIVE HUNDRED THOUSAND DOLLARS IN ANY ONE COMPANY,  OR
SEVEN  HUNDRED  FIFTY  THOUSAND  DOLLARS  IN THE CASE OF A BIOTECHNOLOGY
COMPANY, AT ANY ONE TIME.
  (B) A REGIONAL INVESTMENT FUND, BEFORE APPROVING ANY  APPLICATION  FOR
FINANCIAL ASSISTANCE UNDER THIS SECTION, SHALL FIND THAT:
  (I) THE QUALIFIED ENTERPRISE AND ITS PRODUCT OR PROCESS HAVE A REASON-
ABLE CHANCE OF BEING COMMERCIALLY SUCCESSFUL;
  (II)  THE  EMPLOYMENT  CREATED OR MAINTAINED AS A RESULT OF THE FUND'S
INVESTMENT WILL BE IN NEW YORK STATE; AND

A. 9406--A                          3

  (III) PROVISIONS ARE IN PLACE FOR THE REPAYMENT OF THE  FUNDS  IF  THE
COMPANY RECEIVING ASSISTANCE LEAVES THE STATE.
  4.  REGIONAL  INVESTMENT FUND REPORTING. THE CORPORATION SHALL REQUIRE
ANY REGIONAL INVESTMENT FUND RECEIVING INVESTMENTS UNDER THIS SECTION TO
FILE A REPORT WITH THE CORPORATION BY  DECEMBER  1,  2011  AND  ANNUALLY
THEREAFTER.  SUCH REPORT SHALL INCLUDE:
  (A)  THE  TOTAL  AMOUNT  OF FUNDS COMMITTED TO THE REGIONAL INVESTMENT
FUND AND THE AMOUNT THAT HAS BEEN INVESTED;
  (B) THE NET ASSET VALUE OF THE FUND;
  (C) THE AMOUNT INVESTED IN EACH PORTFOLIO COMPANY FROM  THE  FUND  AND
FROM OTHER SOURCES;
  (D)  THE TYPE OF PRODUCT OR TECHNOLOGY BEING DEVELOPED BY EACH PORTFO-
LIO COMPANY;
  (E) THE LOCATION OF EACH PORTFOLIO COMPANY;
  (F) THE NUMBER OF JOBS PROJECTED TO BE CREATED AND RETAINED; AND
  (G) SUCH OTHER INFORMATION AS THE CORPORATION DEEMS NECESSARY.
  5. REPORT OF THE CORPORATION. THE  CORPORATION  SHALL  SUBMIT  TO  THE
GOVERNOR  AND  THE  LEGISLATURE  A SUMMARY AND EVALUATION OF THE REPORTS
SUBMITTED TO THE CORPORATION PURSUANT TO SUBDIVISION 4 OF  THIS  SECTION
AND AN EVALUATION OF THE PERFORMANCE OF THE REGIONAL INVESTMENT FUNDS ON
OR BEFORE FEBRUARY 1, 2012 AND ANNUALLY THEREAFTER.
  S  2.  The  public  authorities law is amended by adding a new section
3154-a to read as follows:
  S 3154-A. SMALL BUSINESS INVESTMENT FUND ASSETS AND LIABILITIES.    1.
ALL  OF  THE  ASSETS  AND  LIABILITIES  OF THE SMALL BUSINESS TECHNOLOGY
INVESTMENT FUND ESTABLISHED PURSUANT TO APPROPRIATIONS MADE  BY  VARIOUS
CHAPTERS OF THE LAW INCLUDING, BUT NOT LIMITED TO CHAPTER FIFTY-THREE OF
THE LAWS OF NINETEEN HUNDRED EIGHTY-ONE, CHAPTER FIFTY-THREE OF THE LAWS
OF  NINETEEN  HUNDRED  EIGHTY-FIVE,  CHAPTER  FIFTY-THREE OF THE LAWS OF
NINETEEN HUNDRED EIGHTY-SIX, CHAPTER FIFTY-THREE OF THE LAWS OF NINETEEN
HUNDRED EIGHTY-SEVEN,  CHAPTER  FIFTY-THREE  OF  THE  LAWS  OF  NINETEEN
HUNDRED  EIGHTY-EIGHT,  CHAPTER  FIFTY-THREE  OF  THE  LAWS  OF NINETEEN
HUNDRED EIGHTY-NINE, CHAPTER FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED
NINETY, CHAPTER FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED  NINETY-ONE,
CHAPTER  FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINETY-TWO, CHAPTER
FIFTY-THREE OF  THE  LAWS  OF  NINETEEN  HUNDRED  NINETY-THREE,  CHAPTER
FIFTY-THREE  OF  THE  LAWS  OF NINETEEN HUNDRED NINETY-FOUR, AND CHAPTER
FIFTY-THREE OF THE LAWS OF NINETEEN HUNDRED NINETY-FIVE, SHALL  BE  MADE
AVAILABLE  FOR  THE  SEED-NY  INVESTMENT  FUND  ESTABLISHED  PURSUANT TO
SECTION FORTY-FOUR OF SECTION ONE OF THE NEW YORK STATE  URBAN  DEVELOP-
MENT CORPORATION ACT.
  2.  THE  BOARD  SHALL PREPARE A PLAN, WITHIN NINETY DAYS FOLLOWING THE
EFFECTIVE DATE OF THIS SECTION, TO  LIQUIDATE  ALL  CURRENT  ASSETS  AND
LIABILITIES OF THE SMALL BUSINESS TECHNOLOGY INVESTMENT FUND.
  3.  THE  PUBLICLY-TRADED  ASSETS AND ANY WORKING CAPITAL SHALL BE MADE
FULLY AVAILABLE TO THE SEED-NY INVESTMENT FUND ESTABLISHED  PURSUANT  TO
SECTION  FORTY-FOUR  OF SECTION ONE OF THE NEW YORK STATE URBAN DEVELOP-
MENT CORPORATION ACT FOR ALLOCATION TO REGIONAL INVESTMENT FUNDS AS SOON
AS PRACTICABLE.
  4. THE BOARD SHALL ALSO TAKE WHATEVER ACTIONS ARE NECESSARY TO  LIQUI-
DATE  THE  REMAINING  ASSETS OF THE SMALL BUSINESS TECHNOLOGY INVESTMENT
FUND AS SOON AS PRACTICABLE, BUT NOT MORE THAN TWO YEARS  FOLLOWING  THE
EFFECTIVE DATE OF THIS SECTION.
  S 3. This act shall take effect immediately.

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Assembly Bill A9406

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2009-A9406 - Details

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Sponsored By

DELMONTE

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

co-Sponsors

Donna Lupardo

Mark J.F. Schroeder

Robin Schimminger

Marc Alessi

multi-Sponsors

Joseph Morelle

2009-A9406 - Details

2009-A9406 - Summary

2009-A9406 - Bill Text download pdf

co-Sponsors

Donna Lupardo

Mark J.F. Schroeder

Robin Schimminger

Marc Alessi

multi-Sponsors

Joseph Morelle

2009-A9406A (ACTIVE) - Details

2009-A9406A (ACTIVE) - Summary

2009-A9406A (ACTIVE) - Sponsor Memo

2009-A9406A (ACTIVE) - Bill Text download pdf

Comments