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

                                  9469

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 6, 2010
                               ___________

Introduced  by  M.  of  A.  MAGNARELLI  -- read once and referred to the
  Committee on Corporations, Authorities and Commissions

AN ACT to amend the public authorities 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 public authorities law  is  amended  by  adding  a  new
section 3154-a to read as follows:
  S  3154-A.  TECHNOLOGY  COMMERCIALIZATION PARTNERSHIP PROGRAM. 1.  THE
TECHNOLOGY COMMERCIALIZATION PARTNERSHIP PROGRAM IS HEREBY CREATED WITH-
IN THE  FOUNDATION  FOR  SCIENCE,  TECHNOLOGY  AND  INNOVATION  FOR  THE
PURPOSES  OF  ASSISTING  IN  THE COLLABORATION BETWEEN 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
FOUNDATION PURSUANT TO A COMPETITIVE REQUEST  FOR  PROPOSAL  PROCESS  TO
TECHNOLOGY  COMMERCIALIZATION  PARTNERSHIPS CONSISTING OF NEW YORK STATE
ACADEMIC RESEARCH INSTITUTIONS, WHICH SHALL INCLUDE BUT NOT  BE  LIMITED
TO  UNIVERSITIES, CENTERS FOR ADVANCED TECHNOLOGY, AND CENTERS OF EXCEL-
LENCE,  IN  COLLABORATION  WITH  TECHNOLOGY-BASED  ECONOMIC  DEVELOPMENT
ORGANIZATIONS.
  (A)  THE FOUNDATION SHALL DESIGNATE TECHNOLOGY COMMERCIALIZATION PART-
NERSHIPS 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
  (IV) A  WELL-ESTABLISHED  PROCESS  TO  BE  USED  IN  EVALUATING  AWARD
PROPOSALS AND ADMINISTERING THE AWARD.

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

                      [ ] is old law to be omitted.
                                                           LBD15027-01-9

A. 9469                             2

  (B)  THE  FOUNDATION SHALL MAKE GRANTS TO TECHNOLOGY COMMERCIALIZATION
PARTNERSHIPS IN AMOUNTS BETWEEN FIVE HUNDRED THOUSAND  AND  ONE  MILLION
DOLLARS.
  (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 FOUNDATION BOARD THAT ARE  ASSO-
CIATED 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 AND SHALL BE MATCHED IN CASH OR IN-KIND  ON
A  ONE-TO-ONE  BASIS. AT LEAST FIFTY PERCENT OF THE TOTAL MATCHING FUNDS
MUST BE PROVIDED BY THE COMPANY. SUCH MATCHES MAY INCLUDE THE FOLLOWING:
  (I) FAIR-MARKET VALUE OF  NEW  OR  PRE-OWNED  EQUIPMENT  AND  SUPPLIES
DONATED TO THE RESEARCH INSTITUTION FOR UNRESTRICTED USE; AND
  (II)  SALARIES AND FRINGE BENEFITS PAID BY THE COMPANY PARTNER FOR THE
PORTION OF TIME COMPANY PERSONNEL WORK ON THE PROJECT.
  4. NO LATER THAN AUGUST FIRST, TWO THOUSAND TEN, AND  ANNUALLY  THERE-
AFTER, THE FOUNDATION SHALL ISSUE A REQUEST FOR PROPOSALS FOR TECHNOLOGY
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 COMMERCIALIZA-
TION PARTNERSHIP FUNDS.
  (A) THE FOUNDATION SHALL GIVE PREFERENCE TO  THOSE  APPLICATIONS  THAT
DEMONSTRATE  COLLABORATION AMONG NEW YORK STATE ACADEMIC RESEARCH INSTI-

A. 9469                             3

TUTIONS, INDUSTRY ASSETS, ECONOMIC DEVELOPMENT ORGANIZATIONS  AND  WORK-
FORCE  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 FOUNDATION WITHIN NINETY DAYS FOLLOW-
ING THE ISSUANCE OF THE REQUEST FOR PROPOSALS.
  5. (A) EACH RECIPIENT OF FUNDS FROM THE  TECHNOLOGY  COMMERCIALIZATION
PARTNERSHIP PROGRAM SHALL REPORT, ON OR BEFORE DECEMBER FIRST, TWO THOU-
SAND  ELEVEN  AND  ANNUALLY  THEREAFTER,  TO THE FOUNDATION. 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 FOUNDATION DEEMS NECESSARY.
  (B)  THE FOUNDATION SHALL SUBMIT TO THE GOVERNOR AND THE LEGISLATURE A
SUMMARY AND EVALUATION OF THE REPORTS SUBMITTED TO THE FOUNDATION PURSU-
ANT TO THIS SUBDIVISION AND AN EVALUATION  OF  THE  PERFORMANCE  OF  THE
TECHNOLOGY  COMMERCIALIZATION  PARTNERSHIP PROGRAM ON OR BEFORE FEBRUARY
FIRST, TWO THOUSAND ELEVEN.
  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.
Criteria for such awards shall include, but not be limited to, the abil-

A. 9469                             4

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.
  6.] A center for advanced technology development  program  is  created
whereby  funds  shall  be awarded to centers for advanced technology for

A. 9469                             5

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 foundation for science,
technology 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.