S T A T E O F N E W Y O R K
________________________________________________________________________
599--B
2011-2012 Regular Sessions
I N A S S E M B L Y
(PREFILED)
January 5, 2011
___________
Introduced by M. of A. MAGNARELLI, LUPARDO, GABRYSZAK, MILLMAN, CAHILL,
GUNTHER, CASTRO, WRIGHT, MORELLE -- Multi-Sponsored by -- M. of A.
BOYLAND, GIBSON, MAGEE, REILLY, SCHIMEL, SCHIMMINGER, SWEENEY, THIELE,
WEISENBERG -- read once and referred to the Committee on Corporations,
Authorities and Commissions -- reported and referred to the Committee
on Ways and Means -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee -- reported and
referred to the Committee on Ways and Means -- recommitted to the
Committee on Ways and Means in accordance with Assembly Rule 3, sec. 2
-- committee discharged, bill amended, ordered reprinted as amended
and recommitted to said committee
AN ACT to amend the economic development 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 economic development law is amended by adding a new
section 361 to read as follows:
S 361. TECHNOLOGY COMMERCIALIZATION PARTNERSHIP PROGRAM. 1. THE TECH-
NOLOGY COMMERCIALIZATION PARTNERSHIP PROGRAM IS HEREBY CREATED WITHIN
THE DIVISION OF SCIENCE, TECHNOLOGY AND INNOVATION FOR THE PURPOSES OF
ASSISTING IN THE COLLABORATION BETWEEN PRIVATE SECTOR 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
DIVISION PURSUANT TO A COMPETITIVE REQUEST FOR PROPOSAL PROCESS TO TECH-
NOLOGY COMMERCIALIZATION PARTNERSHIPS CONSISTING OF NEW YORK STATE
ACADEMIC RESEARCH INSTITUTIONS, INCLUDING BUT NOT LIMITED TO UNIVERSI-
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03283-03-2
A. 599--B 2
TIES, CENTERS FOR ADVANCED TECHNOLOGY, AND CENTERS OF EXCELLENCE, IN
COLLABORATION WITH TECHNOLOGY-BASED ECONOMIC DEVELOPMENT ORGANIZATIONS.
(A) THE DIVISION SHALL DESIGNATE TECHNOLOGY COMMERCIALIZATION PARTNER-
SHIPS 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.
(B) THE DIVISION SHALL MAKE GRANTS TO TECHNOLOGY COMMERCIALIZATION
PARTNERSHIPS IN AMOUNTS BETWEEN FIVE HUNDRED THOUSAND AND ONE MILLION
DOLLARS. EACH SUCH PARTNERSHIP SHALL MATCH SUCH GRANTS ON A ONE-TO-ONE
BASIS. ELIGIBLE MATCHING FUNDS SHALL INCLUDE, BUT NOT BE LIMITED TO:
(I) COMPANY CASH;
(II) FEDERAL FUNDS;
(III) APPLICANT SUPPORT INCLUDING SALARIES AND FRINGE BENEFIT COSTS
PAID BY THE APPLICANT; AND
(IV) THE FAIR MARKET VALUE OF NEW OR PRE-OWNED DONATED EQUIPMENT.
(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 DIVISION THAT ARE ASSOCIATED
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.
A. 599--B 3
(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.
4. NO LATER THAN AUGUST FIRST, TWO THOUSAND TWELVE, AND ANNUALLY THER-
EAFTER, THE DIVISION 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 DIVISION SHALL GIVE PREFERENCE TO THOSE APPLICATIONS THAT
DEMONSTRATE COLLABORATION AMONG NEW YORK STATE ACADEMIC RESEARCH INSTI-
TUTIONS, THE PRIVATE SECTOR, ECONOMIC DEVELOPMENT ORGANIZATIONS AND
WORKFORCE 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 DIVISION WITHIN NINETY DAYS FOLLOWING
THE ISSUANCE OF THE REQUEST FOR PROPOSALS.
5. (A) EACH DESIGNATED TECHNOLOGY COMMERCIALIZATION PARTNERSHIP SHALL
REPORT, ON OR BEFORE DECEMBER FIRST, TWO THOUSAND THIRTEEN AND ANNUALLY
THEREAFTER, TO THE DIVISION. 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 DIVISION DEEMS NECESSARY.
(B) THE DIVISION SHALL SUBMIT TO THE GOVERNOR AND THE LEGISLATURE A
SUMMARY AND EVALUATION OF THE REPORTS SUBMITTED TO THE DIVISION PURSUANT
TO THIS SUBDIVISION AND AN EVALUATION OF THE PERFORMANCE OF THE TECHNOL-
OGY COMMERCIALIZATION PARTNERSHIP PROGRAM ON OR BEFORE FEBRUARY FIRST,
TWO THOUSAND THIRTEEN.
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.
A. 599--B 4
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
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
A. 599--B 5
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 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 division of science, tech-
nology 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.