assembly Bill A3168

2013-2014 Legislative Session

Establishes the biosciences commercialization assistance fund within the foundation for science, technology and innovation

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  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Jan 08, 2014 referred to economic development
Jan 23, 2013 referred to economic development

A3168 - Bill Details

See Senate Version of this Bill:
S1595
Current Committee:
Law Section:
Public Authorities Law
Laws Affected:
Amd §3150, add §3154-a, Pub Auth L
Versions Introduced in Previous Legislative Sessions:
2011-2012: A9311, S2710
2009-2010: A253, S2290

A3168 - Bill Texts

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Establishes the biosciences commercialization fund within the foundation for science, technology and innovation.

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

                                  3168

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                            January 23, 2013
                               ___________

Introduced  by  M. of A. RYAN -- read once and referred to the Committee
  on Economic Development

AN ACT to amend the public authorities law, in relation to  establishing
  the  biosciences  commercialization assistance fund within the founda-
  tion for science, technology and innovation

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

  Section  1.  Section 3150 of the public authorities law, as amended by
section 4 of part C of chapter 63 of the laws of  2005,  is  amended  to
read as follows:
  S 3150. Definitions. As used in this [section] TITLE:
  1.  "Foundation" shall mean the New York state foundation for science,
technology and innovation created by this title;
  2. "Executive director" shall mean the executive director of the foun-
dation;
  3. "Board" shall mean the New York state foundation for science, tech-
nology and innovation board;
  4. "Regional partnerships" shall mean any association or  group  which
is:    (a)  comprised  of local economic development organizations and a
center of excellence as defined by section three of part  T  of  chapter
eighty-four  of  the laws of two thousand two, or in the absence of such
center in the region, at  least  one  institution  of  higher  education
involved  in commercialization efforts similar to such centers of excel-
lence and may include a  combination  of  private  businesses,  business
support  organizations, commercial lending institutions, venture capital
companies, angel investor networks or foundations; (b)  formed  for  the
creation  and  administration  of regional partnership programs; and (c)
certified by the foundation as the regional partnership;
  5. "Regional partnership coordinator" shall mean a nonprofit organiza-
tion chosen by a regional partnership and certified by the foundation to
administer the regional partnership programs;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04133-01-3

A. 3168                             2

  6. "Partnership" shall mean regional partnerships; [and]
  7. "Coordinator" shall mean regional partnership coordinator[.];
  8.  "RESEARCH ENTITY" SHALL MEAN A NOT-FOR-PROFIT COLLEGE, UNIVERSITY,
MEDICAL CENTER, LABORATORY OR OTHER INSTITUTION THAT CONDUCTS AN  INTEN-
SIVE,  ONGOING  PROGRAM  OF STUDY DIRECTED TOWARD GREATER KNOWLEDGE OF A
SCIENTIFIC FOCUS AREA OR TOWARD APPLYING  NEW  SCIENTIFIC  KNOWLEDGE  TO
MEET A RECOGNIZED NEED;
  9.  "FOCUS  AREA"  SHALL  MEAN BIOSCIENCES RESEARCH INCLUDING, BUT NOT
LIMITED TO, THE BASIC, APPLIED, OR TRANSLATIONAL RESEARCH THAT LEADS  TO
THE  DEVELOPMENT  OF  THERAPEUTICS,  DIAGNOSTICS, OR DEVICES, TO IMPROVE
HUMAN HEALTH OR AGRICULTURE AND  THAT  REQUIRE  FEDERAL  FOOD  AND  DRUG
ADMINISTRATION APPROVAL.
  S  2.  The  public  authorities law is amended by adding a new section
3154-a to read as follows:
  S 3154-A. BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND. 1. THE  BIOS-
CIENCES  COMMERCIALIZATION  ASSISTANCE  FUND  IS  HEREBY CREATED FOR THE
PURPOSE OF:
  (A) ADVANCING THE EARLY-STAGE DEVELOPMENT  OF  COMMERCIALLY  PROMISING
INVENTIONS  IN  THE FOCUS AREA OWNED BY RESEARCH ENTITIES LOCATED IN NEW
YORK STATE;
  (B) ENCOURAGING ENTREPRENEURS TO FORM NEW  COMPANIES  LOCATED  IN  NEW
YORK STATE TO MANUFACTURE AND MARKET SUCH INVENTIONS;
  (C) ENABLING SMALL BUSINESSES RESIDENT IN THE STATE TO CONDUCT APPLIED
RESEARCH  AND  DEVELOPMENT  NECESSARY  TO  COMMERCIALIZE RESEARCH ENTITY
INVENTIONS; AND
  (D) ENCOURAGING BUSINESSES  RESIDENT  IN  THE  STATE  TO  DEVELOP  NEW
PRODUCTS  OR  PROCESSES  BASED  ON  PROMISING INVENTIONS OR TECHNOLOGIES
OWNED BY SUCH BUSINESSES THROUGH GRANTS OR LOANS TO SUCH RESIDENT  BUSI-
NESSES.
  2.  MONIES  IN THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND SHALL
BE AVAILABLE TO ELIGIBLE RESEARCH ENTITIES, START-UPS, SMALL  COMPANIES,
AND  OTHER BUSINESSES IN NEW YORK STATE, WITH ANTICIPATED COMMERCIALIZA-
TION TIME FRAMES OF UP TO FIFTEEN YEARS, FOR DEVELOPMENT AND COMMERCIAL-
IZATION OF PRODUCTS. THE FOUNDATION SHALL USE THE  MONIES  AVAILABLE  IN
THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND FOR:
  (A)  GRANTS  TO RESEARCH ENTITIES LOCATED IN NEW YORK STATE TO DEVELOP
COMMERCIALLY PROMISING RESEARCH DISCOVERIES IN THE FOCUS AREA BEYOND THE
CONCEPTUAL STAGE IN ORDER TO FURTHER THE CHANCE OF COMMERCIALIZATION AND
INCREASE MARKET VALUE. THE FOUNDATION MAY APPROVE  GRANTS  FOR  ELIGIBLE
PROJECTS,  PROVIDED  SUCH  GRANTS  DO  NOT  EXCEED  ONE HUNDRED THOUSAND
DOLLARS AND ARE USED EXCLUSIVELY TO ACCELERATE THE COMMERCIALIZATION  OF
DISCOVERIES THAT HAVE THE POTENTIAL TO POSITIVELY IMPACT EXISTING COMPA-
NIES  LOCATED  IN  NEW  YORK  OR  LEAD TO THE FORMATION OF NEW COMPANIES
LOCATED IN NEW YORK. GRANTS MAY NOT BE USED TO COMMERCIALIZE DISCOVERIES
THAT WILL BE LICENSED TO FIRMS THAT  DO  NOT  HAVE  THEIR  RESEARCH  AND
DEVELOPMENT  AND MANUFACTURING FACILITIES AND AT LEAST EIGHTY PERCENT OF
THEIR EMPLOYEES LOCATED IN NEW YORK STATE. THE FOUNDATION SHALL  APPROVE
GRANTS  ONLY TO THOSE RESEARCH ENTITIES THAT CAN DEMONSTRATE THE ABILITY
TO GUIDE THE DEVELOPMENT OF THE DISCOVERIES  TOWARD  SUCCESSFUL  COMMER-
CIALIZATION  IN  THE  STATE.  ANY REVENUES EARNED BY THE RESEARCH ENTITY
FROM THE LICENSING OF AN INVENTION DEVELOPED  WITH  A  FOUNDATION  GRANT
MUST  BE  REINVESTED  IN  THE RESEARCH ENTITY'S EDUCATIONAL AND RESEARCH
PROGRAMS OR TECHNOLOGY TRANSFER ACTIVITIES;
  (B) INVESTMENTS IN  START-UP  COMPANIES  FORMED  BY  ENTREPRENEURS  TO
COMMERCIALIZE  INTELLECTUAL  PROPERTY  IN  THE  FOCUS AREA LICENSED FROM
RESEARCH ENTITIES LOCATED IN NEW YORK STATE. THE FOUNDATION MAY  APPROVE

A. 3168                             3

INVESTMENTS  IN  NEW COMPANIES BEING FORMED TO FURTHER DEVELOP, PRODUCE,
AND SELL INVENTIONS LICENSED FROM  RESEARCH  INSTITUTIONS  IN  NEW  YORK
STATE, PROVIDED THAT THE COMPANY'S RESEARCH AND DEVELOPMENT AND/OR MANU-
FACTURING  FACILITIES  WILL  BE  LOCATED  IN NEW YORK STATE; THE COMPANY
COMMITS TO REMAINING IN THE STATE; THE INVESTMENT DOES  NOT  EXCEED  ONE
HUNDRED  FIFTY THOUSAND DOLLARS PER COMPANY; AND, THE INVESTMENT IS USED
SOLELY FOR OPERATING EXPENSES APPROVED BY THE FOUNDATION. IN RETURN  FOR
INVESTMENT  BY THE FOUNDATION, THE FOUNDATION SHALL TAKE AN EQUITY POSI-
TION IN THE COMPANY OR NEGOTIATE ROYALTY PAYMENTS BASED ON THE  SALE  OF
ANY  PRODUCTS RESULTING FROM THE LICENSED INVENTION. IN THE EVENT THAT A
COMPANY MOVES ITS RESEARCH AND DEVELOPMENT OR  MANUFACTURING  FACILITIES
OR MORE THAN TWENTY PERCENT OF ITS EMPLOYEES OUT OF THE STATE, THE FOUN-
DATION  SHALL  REQUIRE  THE COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST
FIVE TIMES THE FOUNDATION'S TOTAL INVESTMENT;
  (C) MATCHING GRANTS TO SMALL BUSINESSES IN NEW YORK STATE FOR  COOPER-
ATIVE  APPLIED  RESEARCH AND DEVELOPMENT PROJECTS IN THE FOCUS AREA WITH
RESEARCH INSTITUTIONS TO TRANSLATE PROMISING DISCOVERIES OF THE RESEARCH
INSTITUTION  INTO  COMMERCIALLY  VIABLE  PRODUCTS.  THE  FOUNDATION  MAY
APPROVE  MATCHING  GRANTS  FOR PROJECTS UNDERTAKEN JOINTLY BY A RESEARCH
ENTITY AND A BUSINESS INCORPORATED IN NEW YORK STATE FOR UP TO  HALF  OF
THE COST OF PROJECTS THAT WILL APPLY DISCOVERIES OR USE THE INTELLECTUAL
RESOURCES OF THE RESEARCH ENTITY TO DEVELOP NEW, OR TO IMPROVE EXISTING,
COMMERCIAL   MATERIALS,  DEVICES,  SYSTEMS,  PROCESSES,  OR  PROTOTYPES,
PROVIDED THAT THE GRANTS  DO  NOT  EXCEED  ONE  HUNDRED  FIFTY  THOUSAND
DOLLARS;  THE  COMPANY HAS LESS THAN ONE HUNDRED FULL-TIME EMPLOYEES, AT
LEAST EIGHTY PERCENT OF WHOM WORK IN THE STATE; AND, THE COMPANY HAS ITS
PRINCIPAL RESEARCH AND DEVELOPMENT AND MANUFACTURING FACILITIES  LOCATED
IN  THE STATE. IN THE EVENT THAT A COMPANY MOVES ITS RESEARCH AND DEVEL-
OPMENT OR MANUFACTURING FACILITIES OR MORE THAN TWENTY  PERCENT  OF  ITS
EMPLOYEES  OUT OF THE STATE, THE FOUNDATION SHALL REQUIRE THE COMPANY TO
REPAY AN AMOUNT EQUAL TO AT LEAST  FIVE  TIMES  THE  FOUNDATION'S  TOTAL
INVESTMENT;
  (D) MATCHING GRANTS AND/OR LOANS TO SMALL BUSINESSES IN NEW YORK STATE
FOR  COMMERCIAL  DEVELOPMENT OF THEIR INNOVATIONS OR TECHNOLOGIES IN THE
FOCUS AREA INTO NEW PRODUCTS OR PROCESSES  TO  BE  MANUFACTURED  IN  NEW
YORK.    ANY  REPAYMENTS OF LOANS OR EARNINGS ON INVESTMENTS MADE BY THE
FOUNDATION FROM THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND  SHALL
BE  DEPOSITED  IN  SUCH  FUND.  THE FOUNDATION MAY APPROVE GRANTS AND/OR
LOANS TO BUSINESSES INCORPORATED IN NEW YORK STATE FOR UP  TO  ONE-THIRD
OF THE COSTS, INCLUDING WORKFORCE TRAINING, ASSOCIATED WITH THE DEVELOP-
MENT  OF NEW PRODUCTS OR PROCESSES FROM INVENTIONS OR TECHNOLOGIES OWNED
BY SUCH BUSINESSES, PROVIDED THAT THE GRANT DOES NOT EXCEED TWO  HUNDRED
FIFTY  THOUSAND DOLLARS; THE COMPANY HAS LESS THAN ONE HUNDRED FULL-TIME
EMPLOYEES, AT LEAST EIGHTY PERCENT OF WHOM WORK IN THE STATE;  AND,  THE
COMPANY  HAS  ITS  PRINCIPAL  RESEARCH AND DEVELOPMENT AND MANUFACTURING
FACILITIES LOCATED IN THE STATE. IN THE  EVENT  THE  COMPANY  MOVES  ITS
RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES OR MORE THAN TWENTY
PERCENT  OF ITS EMPLOYEES OUT OF THE STATE, THE FOUNDATION SHALL REQUIRE
THE COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST FIVE TIMES THE  FOUNDA-
TION'S TOTAL INVESTMENT; AND
  (E)  GRANTS  TO  BUSINESSES IN NEW YORK STATE TO OFFSET SOME OR ALL OF
THE COSTS OF FILING FOR FEDERAL REGULATORY APPROVAL FOR NEW OR  MODIFIED
PRODUCTS  OR PROCESSES WITHIN THE FOCUS AREA. THE FOUNDATION MAY APPROVE
GRANTS TO BUSINESSES INCORPORATED IN NEW YORK STATE  PROVIDED  THAT  THE
COMPANY  HAS  ITS  PRINCIPAL  RESEARCH AND DEVELOPMENT AND MANUFACTURING
FACILITIES LOCATED IN THE STATE. IN THE  EVENT  THE  COMPANY  MOVES  THE

A. 3168                             4

MANUFACTURE OF THE PRODUCT OUT OF NEW YORK STATE WITHIN A PERIOD OF FIVE
YEARS, THE FOUNDATION SHALL REQUIRE THE COMPANY TO REPAY AN AMOUNT EQUAL
TO AT LEAST FIVE TIMES THE FOUNDATION'S TOTAL INVESTMENT. THE FOUNDATION
SHALL  GIVE  PRIORITY  TO COMPANIES WITH LESS THAN ONE HUNDRED FULL-TIME
EMPLOYEES.
  3. PURSUANT TO SECTION THIRTY-ONE HUNDRED FIFTY-ONE OF THIS TITLE, THE
FOUNDATION SHALL PROMULGATE  REGULATIONS  ESTABLISHING  THE  APPLICATION
PROCESS  AND THE CRITERIA THAT WILL BE USED TO EVALUATE APPLICATIONS FOR
GRANTS AND INVESTMENTS FROM THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE
FUND. SUCH REGULATIONS SHALL ALLOW A COMMERCIALIZATION TIME FRAME OF  UP
TO  FIFTEEN  YEARS.  SUCH APPLICATIONS SHALL INCLUDE, BUT NOT BE LIMITED
TO, A DESCRIPTION OF THE EXPECTED SIGNIFICANCE OF  THE  PROJECT  TO  NEW
YORK STATE, INCLUDING THE ESTIMATED NUMBER OF JOBS THAT COULD BE CREATED
AS  A  RESULT  OF THE PROJECT. IN SELECTING APPLICATIONS FOR FUNDING THE
FOUNDATION SHALL GIVE PRIORITY TO THOSE PROJECTS THAT HAVE THE  GREATEST
POTENTIAL  FOR  COMMERCIAL SUCCESS AND EVENTUAL JOB CREATION IN NEW YORK
STATE OR THAT WILL HAVE THE LARGEST POSITIVE IMPACT ON  THE  HEALTH  AND
WELFARE OF THE STATE'S CITIZENS OR ON THE NATURAL OR BUILT ENVIRONMENT.
  S 3. Notwithstanding any other law to the contrary, any appropriations
to  the New York state foundation for science, technology and innovation
board from the general fund, 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, as well as any other appropriations that  may  be  so  desig-
nated, may be made available for the purposes of the biosciences commer-
cialization assistance fund.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its  effective  date  is
authorized  and  directed  to  be  made  and completed on or before such
effective date.

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