S T A T E   O F   N E W   Y O R K
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                                  10195

                          I N  A S S E M B L Y

                            November 17, 2014
                               ___________

Introduced by COMMITTEE ON RULES -- (at request of M. of A. Buchwald) --
  read once and referred to the Committee on Small Business

AN  ACT  to  amend the urban development corporation act, in relation to
  establishing the New York state innovation voucher program; and making
  an appropriation therefor

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York state innovation voucher program act".
  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-x to read as follows:
  S  16-X. NEW YORK STATE INNOVATION VOUCHER PROGRAM. (1) PROGRAM ESTAB-
LISHED. THERE IS HEREBY ESTABLISHED A NEW YORK STATE INNOVATION  VOUCHER
PROGRAM  UNDER  THE PURVIEW OF THE EMPIRE STATE DEVELOPMENT CORPORATION.
SUCH PROGRAM SHALL PROVIDE SMALL BUSINESSES WITH ACCESS TO RESEARCH  AND
DEVELOPMENT  BY  COLLEGES  AND UNIVERSITIES, GOVERNMENT LABORATORIES AND
PUBLIC RESEARCH INSTITUTES IN ORDER TO ASSIST  SUCH  BUSINESSES  IN  THE
CREATION OF INNOVATIVE PRODUCTS OR SERVICES.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A)  "ELIGIBLE  RECIPIENT"  SHALL  MEAN  SMALL  BUSINESSES  HAVING ONE
HUNDRED OR FEWER EMPLOYEES, OPERATING IN NEW YORK STATE.
  (B) "ELIGIBLE PROJECTS" OR "EXPENSES ELIGIBLE FOR REIMBURSEMENT" SHALL
MEAN RESEARCH AND DEVELOPMENT COSTS LEADING TO  INNOVATIVE  PRODUCTS  OR
SERVICES,  INCLUDING BUT NOT LIMITED TO DEVELOPMENT OF PROTOTYPES, FIELD
TESTING, OR ENGINEERING.  AN  ELIGIBLE  EXPENSE  SHALL  BE  AN  ELIGIBLE
PROJECT THAT IS NOT AN INELIGIBLE EXPENSE.
  (C) "INELIGIBLE EXPENSE" SHALL MEAN REIMBURSEMENT OF TIME SPENT BY THE
EMPLOYEES  OR OWNERS OF THE SMALL BUSINESS; GRANT OR VOUCHER APPLICATION
COSTS; ROUTINE AND READILY-PREDICTABLE  BUSINESS  EXPENSES;  DESIGN  AND
PRODUCTION  OF  MARKETING  OR  ADVERTISING MATERIALS; BASIC PROFESSIONAL
SERVICES SUCH AS ONGOING ROUTINE  ACCOUNTING,  TAX  OR  LEGAL  SERVICES;
BUILDING  OR  EQUIPMENT  CONSTRUCTION  COSTS; FINANCING FEES; TRAVEL AND

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

                                                           LBD15939-02-4

A. 10195                            2

ENTERTAINMENT COSTS; HOSPITALITY COSTS; AND ANY  OTHER  EXPENSES  DEEMED
INELIGIBLE BY THE EMPIRE STATE DEVELOPMENT CORPORATION.
  (D)  "RESEARCH  PARTNER"  SHALL MEAN COLLEGES, UNIVERSITIES, STATE AND
NATIONAL GOVERNMENT LABORATORIES, AND PUBLIC RESEARCH INSTITUTES IN  NEW
YORK STATE.
  (3) SELECTION OF ELIGIBLE RECIPIENTS. (A) ELIGIBLE RECIPIENTS SHALL BE
SELECTED  BY  THE  EMPIRE  STATE  DEVELOPMENT  CORPORATION  BASED ON THE
STRENGTH OF THEIR PROPOSALS,  INCLUDING  EVALUATION  OF  THE  INNOVATIVE
NATURE  OF  THE  PROJECT,  ITS  TECHNICAL FEASIBILITY, AND THE POTENTIAL
IMPACT ON THE PEOPLE OF NEW YORK.
  (B) SMALL BUSINESSES MAY IDENTIFY DESIRED OR POTENTIAL RESEARCH  PART-
NERS  AS PART OF THEIR APPLICATIONS. ADVANCE DETERMINATIONS OF THE BUSI-
NESS' RESEARCH PARTNER SHALL NOT BE A  REQUIREMENT  FOR  RECEIPT  OF  AN
INNOVATION VOUCHER.
  (C) APPLICATIONS SHALL BE JUDGED BY AN ADVISORY COMMITTEE, OR REGIONAL
ADVISORY  COMMITTEE,  APPOINTED  BY  THE  PRESIDENT  OF THE EMPIRE STATE
DEVELOPMENT CORPORATION CONSISTING OF MEMBERS OF  THE  BUSINESS,  HIGHER
EDUCATION,  SCIENCE  AND  TECHNOLOGY COMMUNITIES. MEMBERS OF AN ADVISORY
COMMITTEE SHALL RECEIVE NO COMPENSATION  APART  FROM  REIMBURSEMENT  FOR
ACTUAL AND NECESSARY EXPENSES.
  (4)  RESEARCH PARTNERS. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL
IDENTIFY AND SUGGEST A PRELIMINARY SET OF RESEARCH PARTNERS IN NEW  YORK
STATE  THAT  HAVE APPROPRIATE FACILITIES AND RESOURCES TO PARTICIPATE IN
THE INNOVATION VOUCHER PROGRAM AND ARE WILLING TO  ACCEPT  VOUCHERS  AND
MATCHING  FUNDS  FROM ELIGIBLE RECIPIENTS FOR PAYMENT OF THEIR SERVICES.
SUCH SUGGESTED LIST OF POTENTIAL RESEARCH PARTNERS SHALL BE DISPLAYED ON
THE EMPIRE STATE DEVELOPMENT CORPORATION'S WEBSITE, AND MAY  BE  SUPPLE-
MENTED FROM TIME TO TIME.
  (5)  VOUCHERS  AND  MATCHING  FUNDS. (A) VOUCHERS AWARDED SHALL BE TEN
THOUSAND DOLLARS FOR EACH ELIGIBLE PROJECT. UPON THE  RECOMMENDATION  OF
AN ADVISORY COMMITTEE, THE PRESIDENT MAY AWARD A VOUCHER IN AN AMOUNT UP
TO  FIFTY THOUSAND DOLLARS WHERE A PROJECT IS DEEMED EXCEPTIONALLY INNO-
VATIVE.  CRITERIA FOR THE DETERMINATION OF AWARDS SHALL  BE  ESTABLISHED
BY  THE EMPIRE STATE DEVELOPMENT CORPORATION.  ELIGIBLE RECIPIENTS SHALL
MATCH THE VALUE OF THE VOUCHER DOLLAR-FOR-DOLLAR AND  SHALL  APPLY  SUCH
AMOUNT TO THE VOUCHER-FUNDED PROJECT.
  (B) IF AN APPLICANT IS APPROVED FOR A VOUCHER BASED ON THE APPROVAL OF
AN ELIGIBLE PROJECT, SUCH ELIGIBLE RECIPIENT SHALL APPROACH THE RESEARCH
PARTNER THE ELIGIBLE RECIPIENT WISHES TO WORK WITH. THE ELIGIBLE RECIPI-
ENT  SHALL  NOTIFY  THE  EMPIRE  STATE  DEVELOPMENT  CORPORATION  OF THE
RESEARCH PARTNER THEY WILL BE WORKING  WITH  ON  THE  ELIGIBLE  PROJECT.
PAYMENT OF THE VOUCHER SHALL BE MADE BASED ON A PAYMENT STRUCTURE ESTAB-
LISHED BY THE EMPIRE STATE DEVELOPMENT CORPORATION.
  (6)  EVALUATION. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL EVALU-
ATE RECIPIENTS OF THE INNOVATION VOUCHERS AT PERIODIC INTERVALS TO MEAS-
URE: (A) WHETHER JOBS HAVE BEEN CREATED AS  A  RESULT  OF  THE  MOMENTUM
FOSTERED  THROUGH  THE  VOUCHERS; AND (B) ANY OTHER PERFORMANCE METRICS,
SUCH AS THE NUMBER OF PATENTS  PRODUCED  AS  A  RESULT  OF  THE  COLLAB-
ORATIONS,  THAT  THE EMPIRE STATE DEVELOPMENT CORPORATION DETERMINES ARE
USEFUL IN TRACKING THE PROGRAM'S SUCCESS.
  (7) GUIDELINES. THE EMPIRE STATE DEVELOPMENT CORPORATION SHALL  ESTAB-
LISH  GUIDELINES  FOR THE IMPLEMENTATION AND ADMINISTRATION OF THE INNO-
VATION VOUCHER PROGRAM.
  S 3. The sum of ten million dollars ($10,000,000), or so much  thereof
as may be necessary, is hereby appropriated to the Empire State Develop-
ment  Corporation out of any moneys in the state treasury in the general

A. 10195                            3

fund to the credit of the local assistance account, not otherwise appro-
priated, and made immediately available. Such moneys shall be payable on
the audit and warrant  of  the  comptroller  on  vouchers  certified  or
approved in the manner prescribed by law.
  S 4. This act shall take effect on the one hundred eightieth day after
it  shall  have  become  a  law;  provided, however, that any guidelines
necessary for the timely implementation of this  act  on  its  effective
date may be promulgated on or before such effective date.