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