S T A T E   O F   N E W   Y O R K
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                                  4354

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2009
                               ___________

Introduced  by  M. of A. KOON, JOHN, McENENY, MORELLE -- Multi-Sponsored
  by -- M. of A. COLTON, COOK -- 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, in
  relation to establishing a  biomedical  research  grants  and  working
  capital loan program

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

  Section 1. Legislative findings and  intent.  The  legislature  hereby
finds  that  New Yorkers derive significant economic and health benefits
from biomedical research. Biomedical research  grants  produce  tens  of
thousands  of  jobs  and generate millions of dollars in state and local
income and sales tax revenue every year. Recent  biomedical  discoveries
in  areas  like  cancer treatment, impotence remedies and AIDS therapies
have improved the quality of health care in the state,  the  nation  and
the world. To facilitate the continued vitality of New York's biomedical
research  institutions, it is the intent of the legislature to establish
a biomedical research grants and working capital loan program.
  S 2. 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 16-t to read as follows:
  S  16-T.  BIOMEDICAL RESEARCH GRANTS AND WORKING CAPITAL LOAN PROGRAM.
1. PROGRAM ESTABLISHED. THE CORPORATION SHALL ESTABLISH  THE  BIOMEDICAL
RESEARCH  GRANTS  AND  WORKING  CAPITAL  LOAN PROGRAM FOR THE PURPOSE OF
ESTABLISHING AN ECONOMIC DEVELOPMENT GRANTS AND WORKING CAPITAL  REVOLV-
ING  LOAN FUND TO BE ADMINISTERED BY THE CORPORATION. SUCH FUND SHALL BE
USED TO PROVIDE FINANCIAL ASSISTANCE IN THE FORM OF GRANTS FOR  SALARIES
OF  BIOMEDICAL  RESEARCHERS,  STAFF  SUPPORT AND NON-PERSONAL SERVICE AT
BIOMEDICAL RESEARCH INSTITUTIONS AND IN  THE  FORM  OF  WORKING  CAPITAL
LOANS  FOR  PROJECTS  AND  NEW  EQUIPMENT  AT BIOMEDICAL RESEARCH INSTI-
TUTIONS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01626-01-9
              

A. 4354                             2

  2. APPLICATION CRITERIA. IN ADDITION TO SUCH  OTHER  CRITERIA  AS  THE
CORPORATION  MAY ADOPT IN RULES AND REGULATIONS FOR THE CONSIDERATION OF
APPLICATIONS FOR GRANTS AND LOANS PURSUANT TO SUBDIVISION  ONE  OF  THIS
SECTION, THE CORPORATION SHALL:
  (A)  DETERMINE  THAT  THE BIOMEDICAL RESEARCH INSTITUTION IS UNABLE TO
OBTAIN SUFFICIENT FUNDING ON  REASONABLE  TERMS  FROM  OTHER  PUBLIC  OR
PRIVATE  SOURCES  TO  PERMIT  THE  INSTITUTION'S  PLANNED  INVESTMENT TO
PROCEED WITHOUT THE REQUIRED ASSISTANCE;
  (B) GIVE PRIORITY TO THOSE APPLICATIONS FOR ASSISTANCE FROM BIOMEDICAL
RESEARCH  INSTITUTIONS  THAT  SECURE  PRIVATE  SUPPORT  FOR   BIOMEDICAL
RESEARCH OR COMMIT NEW RESOURCES TO THE EXPANSION OF BIOMEDICAL RESEARCH
AT THE INSTITUTION; AND
  (C) CONSIDER THE POTENTIAL LONG TERM ECONOMIC BENEFITS TO THE STATE OF
AWARDING  THE  SPECIFIC GRANT OR LOAN AND WHETHER THE GRANT OR LOAN WILL
RESULT IN A REASONABLE LIKELIHOOD OF SUCCESS IN MEETING THE PURPOSES FOR
WHICH IT WAS SOUGHT BY THE APPLICANT INSTITUTION.
  3. SCIENTIFIC PEER REVIEW. THE CORPORATION SHALL ENGAGE  THE  SERVICES
OF  CONSULTANTS  ON  A  CONTRACT  BASIS  FOR THE PURPOSE OF CONDUCTING A
SCIENTIFIC PEER REVIEW OF ALL APPLICATIONS FOR GRANTS AND LOANS PURSUANT
TO SUBDIVISION ONE  OF  THIS  SECTION.    SUCH  CONSULTANTS  SHALL  HAVE
SUBSTANTIAL  EXPERIENCE  IN  THE  ESTABLISHMENT  AND  MANAGEMENT OF SUCH
REVIEW AND SHALL MAKE RECOMMENDATIONS TO THE BIOMEDICAL  RESEARCH  ADVI-
SORY BOARD ESTABLISHED PURSUANT TO SUBDIVISION FIVE OF THIS SECTION.
  4.  FUNDS.  THE FUND SHALL CONSIST OF SUCH AMOUNTS AS MAY BE APPROPRI-
ATED, ANY REPAYMENT OF THE PRINCIPAL AMOUNT OF ANY LOAN  MADE  FROM  THE
FUND,  AND ANY INTEREST EARNED BY THE CORPORATION FROM THE INVESTMENT OF
MONEYS OF THE FUND.
  5. ADVISORY BOARD. THERE SHALL BE ESTABLISHED  IN  THE  CORPORATION  A
BIOMEDICAL  RESEARCH  ADVISORY  BOARD WHICH SHALL OVERSEE THE PROCESS OF
PROVIDING FINANCIAL ASSISTANCE IN THE FORM OF  GRANTS  FOR  SALARIES  OF
BIOMEDICAL  RESEARCHERS,  STAFF  SUPPORT  AND  NON-PERSONAL  SERVICE  AT
BIOMEDICAL RESEARCH INSTITUTIONS AND IN  THE  FORM  OF  WORKING  CAPITAL
LOANS  FOR  PROJECTS  AND  NEW  EQUIPMENT  AT BIOMEDICAL RESEARCH INSTI-
TUTIONS. SUCH BOARD SHALL CONSIST OF  SEVENTEEN  VOTING  MEMBERS  TO  BE
APPOINTED BY JULY 1, 2010. NINE MEMBERS SHALL BE APPOINTED BY THE GOVER-
NOR, THREE BY THE TEMPORARY PRESIDENT OF THE SENATE, THREE BY THE SPEAK-
ER  OF THE ASSEMBLY, ONE BY THE MINORITY LEADER OF THE SENATE AND ONE BY
THE MINORITY LEADER OF THE ASSEMBLY. THE MEMBERS OF THE  ADVISORY  BOARD
SHALL  BE  RESIDENTS  OF THE STATE AND SHALL BE PERSONS WITH SUBSTANTIAL
EXPERIENCE IN THE FIELD OF BIOMEDICAL RESEARCH. THE MEMBERS SHALL  SERVE
FOR A TERM OF FOUR YEARS. THE MEMBERS SHALL CONTINUE IN OFFICE UNTIL THE
EXPIRATION  OF  THEIR TERMS AND UNTIL THEIR SUCCESSORS ARE APPOINTED AND
HAVE QUALIFIED. SUCH APPOINTMENTS SHALL BE MADE WITHIN ONE YEAR  FOLLOW-
ING  THE  EXPIRATION  OF  SUCH  TERMS.  VACANCIES SHALL BE FILLED BY THE
APPOINTING OFFICIAL WHO ORIGINALLY APPOINTED SUCH MEMBER WITHIN ONE YEAR
OF THE DATE UPON WHICH SUCH VACANCIES OCCUR. THE  ADVISORY  BOARD  SHALL
MEET  AS  FREQUENTLY  AS ITS BUSINESS MAY REQUIRE, AND AT LEAST TWICE IN
EACH YEAR. ONE MEMBER SHALL BE ELECTED CHAIRPERSON OF THE ADVISORY BOARD
BY A MAJORITY VOTE OF THE MEMBERS OF SUCH  BOARD.  THE  MEMBERS  OF  THE
ADVISORY BOARD SHALL SERVE WITHOUT COMPENSATION OTHER THAN REIMBURSEMENT
OF  ACTUAL  AND NECESSARY EXPENSES. IN ADDITION TO THESE VOTING MEMBERS,
THE CHAIRMAN OF THE CORPORATION, THE COMMISSIONER OF HEALTH, THE COMMIS-
SIONER OF MENTAL HEALTH AND THE COMMISSIONER OF MENTAL  RETARDATION  AND
DEVELOPMENTAL DISABILITIES OR THEIR DESIGNEES SHALL SERVE AS EX OFFICIO,
NON-VOTING MEMBERS OF THE ADVISORY BOARD.

A. 4354                             3

  6. REPORTS. THE CHAIRMAN OF THE CORPORATION SHALL SUBMIT TO THE DIREC-
TOR  OF  THE DIVISION OF THE BUDGET, THE SPEAKER OF THE ASSEMBLY AND THE
TEMPORARY PRESIDENT OF THE SENATE AN EVALUATION OF THE EFFECTIVENESS  OF
THE  PROGRAM  PREPARED  BY AN ENTITY INDEPENDENT OF THE CORPORATION. THE
CORPORATION  SHALL  SELECT  THE  PROGRAM EVALUATOR THROUGH A REQUEST FOR
PROPOSAL PROCESS. SUCH EVALUATION SHALL DETERMINE WHETHER THE ASSISTANCE
PROVIDED HAS ENHANCED BIOMEDICAL RESEARCH IN THE STATE  AND  SHALL  MAKE
RECOMMENDATIONS  FOR  IMPROVEMENTS  WHICH  WOULD  MAKE  THE PROGRAM MORE
EFFECTIVE. SUCH EVALUATION SHALL BE SUBMITTED BY JULY 1, 2011  AND  JULY
FIRST EVERY TWO YEARS THEREAFTER.
  S 3. This act shall take effect immediately.