S T A T E O F N E W Y O R K
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I N A S S E M B L Y
March 6, 2014
___________
Introduced by M. of A. MORELLE -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the economic development law, in relation to the New
York state biomedical and biotechnological translational research and
entrepreneurship initiative
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Legislative intent. The legislature hereby finds and
declares that a coordinated program of research, entrepreneurship, and
public-private partnerships and collaborations centered in and with the
state's public and private medical schools can significantly increase
the speed and amount of commercialization of research from lab to
market, materially expanding economic and job opportunities for all New
Yorkers in this high growth sector and increasing the likelihood of high
impact healthcare breakthroughs, which will improve the health and well-
being of New Yorkers and potentially reduce health care costs.
The legislature further finds that although New York state's biomedi-
cal and biotechnological research and infrastructure includes many of
the nation's top institutions, researchers and scientists, and has many
natural advantages compared to other states, development has lagged
behind the nation as a whole and many states in job growth and economic
activity for a decade; and further, that as other states make signif-
icant and targeted investments to recruit top tier scientists and
researchers, and develop incentives that are creating rapid growth, the
gap between New York and other states will increase, along with a poten-
tial migration of scientific and research talent to other states in
search of opportunity and professional advancement.
The legislature further finds that recent changes that have made New
York's economic development programs more sophisticated and competitive
can be combined with other statutory approaches and precedents to
support and incentivize an effective plan for development of biomedical
and biotechnological entrepreneurship by and through the medical schools
in this state, and declares that the program enacted by this act will
expand economic activity and job development; maintain and attract high
quality scientists and researchers; increase resources available to the
schools and researchers from grants, private investments, patents,
royalties, and licensure, and leverage significant partnerships with
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13390-06-4
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public and private entities; enhance our scientific and research capa-
bilities; and increase the speed of commercialization of research and
the expansion of economic opportunity, which are in every sense to the
benefit of the people of this state.
S 2. The economic development law is amended by adding a new article
22 to read as follows:
ARTICLE 22
THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
SECTION 441. SHORT TITLE.
442. DEFINITIONS.
443. NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATION-
AL RESEARCH AND ENTREPRENEURSHIP INITIATIVE COMMITTEE.
444. APPLICATION FOR DESIGNATION AS A NEW YORK STATE BIOMEDICAL
AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTRE-
PRENEURSHIP INITIATIVE CENTER.
445. REVIEW AND APPROVAL OF APPLICATIONS.
446. WAIVER IN CERTAIN CASES.
447. OPERATION AND RE-DESIGNATION OF NEW YORK STATE BIOMEDICAL
AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTRE-
PRENEURSHIP INITIATIVE CENTERS.
448. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM.
449. UNIFIED CONTRACT.
S 441. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
THE "NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE".
S 442. DEFINITIONS. AS USED IN THIS ARTICLE:
1. "MEDICAL SCHOOL" MEANS A PUBLIC OR PRIVATE MEDICAL SCHOOL ACCRED-
ITED BY THE LIAISON COMMITTEE ON MEDICAL EDUCATION OR THE COMMISSION ON
OSTEOPATHIC COLLEGE ACCREDITATION, OR SUCH MEDICAL SCHOOL AND AN AFFIL-
IATED ENTITY, LOCATED IN THIS STATE.
2. "NEW YORK STATE INCUBATORS" AND "NEW YORK STATE INNOVATION
HOTSPOTS" OR "INCUBATORS" AND "HOTSPOTS" MEAN AND REFER TO "NEW YORK
STATE INCUBATORS" AND "NEW YORK STATE INNOVATION HOTSPOTS" DESIGNATED
PURSUANT TO SECTION SIXTEEN-V OF THE URBAN DEVELOPMENT CORPORATION ACT.
3. "PEER REVIEW COMMITTEE" MEANS THE PEER REVIEW COMMITTEE CREATED BY
THE DEPARTMENT AND THE DEPARTMENT OF HEALTH, CONSISTING OF SCIENTIFIC
AND RESEARCH EXPERTS IN BIOMEDICAL AND BIOTECHNOLOGICAL DEVELOPMENT, AND
COMPANY REPRESENTATIVES AT THE EXECUTIVE OFFICER LEVEL ENGAGED IN MAKING
DEVELOPMENT, FINANCING, AND COMMERCIALIZATION OF BIOMEDICAL AND BIOTECH-
NOLOGICAL RESEARCH.
4. "PLAN" MEANS THE MULTI-YEAR PLAN THAT ACCOMPANIES THE APPLICATION
OF A MEDICAL SCHOOL TO BECOME A NEW YORK STATE BIOMEDICAL AND BIOTECHNO-
LOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTER.
5. "PROJECT" IS THE EXECUTION OF AN APPROVED PLAN BY A NEW YORK STATE
BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEUR-
SHIP INITIATIVE CENTER.
6. "START-UP NY" PROGRAM MEANS THE START-UP PROGRAM AUTHORIZED PURSU-
ANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER, AND THE "TAX-FREE NY AREA"
HAS THE SAME MEANING AS IN ARTICLE TWENTY-ONE OF THIS CHAPTER.
7. "STATE INITIATIVE COMMITTEE" OR "STATE COMMITTEE" MEANS THE BIOMED-
ICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP
INITIATIVE COMMITTEE CREATED BY SECTION FOUR HUNDRED FORTY-THREE OF THIS
ARTICLE.
8. "TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP CENTER" OR "CENTER" IS
THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
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RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTER CREATED AT A MEDICAL
SCHOOL PURSUANT TO THIS ARTICLE.
9. "UNIFIED CONTRACT" IS THE CONTRACT BETWEEN THE DEPARTMENT AND A
MEDICAL SCHOOL THAT INCLUDES ALL ITEMS NECESSARY TO THE IMPLEMENTATION
AND ADMINISTRATION OF THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE PROJECT AS
DESCRIBED IN THIS ARTICLE BY A CENTER.
S 443. NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE COMMITTEE. THE NEW YORK STATE
BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEUR-
SHIP INITIATIVE COMMITTEE IS HEREBY CREATED, TO CONSIST OF THE COMMIS-
SIONERS OF THE DEPARTMENTS OF HEALTH, EDUCATION, ECONOMIC DEVELOPMENT,
LABOR, TAX AND FINANCE, THE CHANCELLOR OF THE STATE UNIVERSITY OF NEW
YORK, THE CHANCELLOR OF THE CITY UNIVERSITY OF NEW YORK, THE PRESIDENT
OF THE EMPIRE STATE DEVELOPMENT CORPORATION, THE DIRECTOR OF THE DIVI-
SION OF THE BUDGET, AND THE STATE COMPTROLLER. THE COMMITTEE SHALL BE
CHAIRED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AND CO-CHAIRED BY
THE COMMISSIONER OF HEALTH. COMMISSIONERS MAY BE REPRESENTED BY DESIG-
NEES AT MEETINGS OF THE COMMITTEE.
1. POWERS AND DUTIES. THE COMMITTEE SHALL:
(A) ESTABLISH GUIDELINES APPROPRIATE TO THE ACTIVITIES REQUIRED UNDER
THIS ARTICLE.
(B) DESIGNATE AS NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRAN-
SITIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTERS MEDICAL
SCHOOLS WHICH MEET THE CRITERIA ESTABLISHED IN THIS ARTICLE.
(C) APPROVE WAIVERS OF REGULATIONS AND PROCEDURES PURSUANT TO SECTION
FOUR HUNDRED FORTY-SEVEN OF THIS ARTICLE.
(D) ESTABLISH A UNIFIED CONTRACT FOR PROJECTS PURSUANT TO SECTION FOUR
HUNDRED FORTY-NINE OF THIS ARTICLE.
(E) RECEIVE AND REVIEW PERFORMANCE METRICS REPORTS FROM CENTERS.
(F) RE-DESIGNATE THE CENTERS EVERY FIVE YEARS PURSUANT TO THIS ARTI-
CLE.
(G) DEVELOP RESOURCES AND PROCEDURES TO AID IN COMMERCIALIZATION OF
RESEARCH AND FUNDING OF ENTREPRENEURIAL EFFORTS CREATED AS A RESULT OF
PROJECTS, INCLUDING BUT NOT LIMITED TO SUCH ACTIVITIES AS PROCUREMENT OF
GOODS OR SERVICES FROM COMPANIES CREATED IN THE PROJECTS; ENDORSING,
COLLABORATING, OR UPON REQUEST OF A CENTER, ACTING AS A CO-PRINCIPAL
INVESTIGATOR OR OTHER LEVEL OF PARTICIPANT ON GRANTS OR OTHER ACTIVITIES
THAT WILL AID IN FURTHERING PROJECT ACTIVITIES; AND SUCH OTHER ACTIV-
ITIES AS CAN AID RAPID COMMERCIALIZATION AS ARE PERMISSIBLE UNDER LAW.
(H) OVERSEE AND MAKE RECOMMENDATIONS FOR APPROVAL OF APPLICATIONS TO
THE SCIENTIFIC RESEARCH AND DISCOVERY BANK CREATED BY THIS ARTICLE FOR
THE RECRUITMENT OF OUT OF STATE AND RETENTION OF IN-STATE STAR SCIEN-
TISTS AND RESEARCHERS.
(I) UPON REQUEST, PROVIDE TECHNICAL ASSISTANCE TO APPLICANTS, AND AS
MAY BE NEEDED FOR SUCCESSFUL IMPLEMENTATION OF A PROJECT, INCLUDING BUT
NOT LIMITED TO ASSISTANCE IN IDENTIFYING AND OBTAINING RESOURCES AND
FUNDING.
(J) IDENTIFY STATUTORY REQUIREMENTS THAT THE COMMITTEE VIEWS AS IMPED-
IMENTS TO SUCCESSFUL IMPLEMENTATION OF APPROVED PLANS, AND AS NECESSARY,
SUBMIT REQUESTS TO THE LEGISLATURE IN ACCORDANCE WITH ARTICLE VII OF THE
STATE CONSTITUTION FOR SPECIFIC LEGISLATIVE ENACTMENTS NECESSARY TO
REMOVE SUCH IMPEDIMENTS.
(K) ENTER INTO AGREEMENTS BETWEEN AND AMONG THE MEMBERS OF THE COMMIT-
TEE AS NECESSARY TO DELINEATE THEIR RESPECTIVE ROLES REGARDING THE COOP-
ERATIVE PROVISION OF FUNDING AND ASSISTANCE.
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2. THE COMMITTEE MAY ACT THROUGH ITS CHAIRS IN ALL MATTERS OF OVER-
SIGHT AND IMPLEMENTATION OF THE PROGRAM AUTHORIZED BY THIS ARTICLE.
S 444. APPLICATION FOR DESIGNATION AS A NEW YORK STATE BIOMEDICAL AND
BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
CENTER. IN RESPONSE TO A REQUEST FOR PROPOSALS, A MEDICAL SCHOOL OR A
MEDICAL SCHOOL AND AN AFFILIATED ENTITY MAY APPLY FOR FUNDING AND DESIG-
NATION AS A NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTER BY SUBMITTING AN APPLI-
CATION AND PLAN TO THE COMMISSIONER. THE COMMISSIONER SHALL FORWARD ALL
SUCH APPLICATIONS TO THE PEER REVIEW COMMITTEE FOR REVIEW AND RECOMMEN-
DATION AS HEREIN PROVIDED, AND THEN TO THE STATE COMMITTEE. IN ADDITION
TO SUCH OTHER ITEMS, WARRANTIES, AND INFORMATION AS THE STATE INITIATIVE
COMMITTEE MAY REQUIRE, PLANS MUST SHOW THAT THE ACTIVITIES TO BE UNDER-
TAKEN WILL COMMERCIALIZE RESEARCH FROM LAB TO MARKETPLACE, DEMONSTRATE
THAT THE CENTER MEETS THE MATCHING FUNDS AND ENTREPRENEUR RELATIONSHIP
REQUIREMENTS HEREUNDER, AND MEET A MAJORITY OF THE REMAINDER OF THE
FOLLOWING ITEMS:
1. COMMITMENT: A MULTI-YEAR COMMITMENT TO IMPLEMENT THE PLAN, OVER A
PERIOD OF NOT LESS THAN FIVE YEARS, DEMONSTRATED BY A COMMITMENT OF
RESOURCES, PERSONNEL, AND FUNDS THAT THE SCHOOL WILL USE, DIRECTLY OR
THROUGH PARTNERSHIPS AND COLLABORATIONS, TO PROVIDE AND/OR INCENTIVIZE
AN INTEGRATED PROGRAM OF RESEARCH, EDUCATION, CLINICAL PRACTICE, ENTRE-
PRENEURSHIP, FINANCING, PARTNERSHIPS, AND RAPID COMMERCIALIZATION OF
RESEARCH. SUCH DEMONSTRATION MAY ALSO INCLUDE CAPITAL INVESTMENTS MADE
OR PLANNED FOR NEW OR REHABILITATED RESEARCH OR LABORATORY SPACE,
CONTINUED SUPPORT FOR ACTIVITIES AFTER THE CONCLUSION OF THE PROJECT,
AND OTHER ACTIVITIES DEMONSTRATING COMMITMENT.
2. RESOURCES: A DESCRIPTION OF THE ACTIONS AND RESOURCES NECESSARY TO
MEET THE PLAN OBJECTIVES OVER ITS DURATION; A DEMONSTRATION THAT THE
MEDICAL SCHOOL HAS OR IS DEVELOPING OPERATIONAL CLINICAL FACILITIES AND
EXPERTISE OR EVIDENCE OF BONA FIDE COLLABORATIONS AND PARTNERSHIPS THAT
CAN PROVIDE SUCH FACILITIES AND EXPERTISE TO SUCCESSFULLY IMPLEMENT THE
PLAN; A DEMONSTRATION THAT THE PROJECT WILL HAVE A PROFESSIONAL MANAGE-
MENT TEAM WITH EXPERIENCE, EXPERTISE, OR CREDENTIALS IN AREAS INCLUDING
BUT NOT LIMITED TO MANAGEMENT, ENTREPRENEURSHIP, BUSINESS DEVELOPMENT,
OR OTHER EQUIVALENT AREAS. THE DEMONSTRATION MAY INCLUDE RECRUITMENT
PLANS OR COMMITMENTS FOR HIGH LEVEL RESEARCH PROFESSIONALS, INCLUDING
HOW THE SCHOOL WOULD MAKE USE OF THE SCIENTIFIC RESEARCH AND DISCOVERY
BANK.
3. ENTREPRENEURIAL AND RESEARCH COLLABORATIONS: EVIDENCE OF BONA FIDE
ENTREPRENEURIAL RELATIONSHIPS WITH ONE OR MORE INCUBATORS OR HOTSPOTS,
AND RESEARCH COLLABORATIONS WITH OTHER ENTITIES INCLUDING BUT NOT LIMIT-
ED TO OTHER RESEARCH INSTITUTIONS, PHARMACEUTICAL AND BIOMEDICAL AND
BIOTECHNOLOGY COMPANIES.
4. LEVERAGED AND APPLIED FUNDING: A DEMONSTRATION THAT THE SCHOOL
ALREADY POSSESSES OR HAS A COMMITMENT FOR AND WILL MAINTAIN DURING THE
PLAN PERIOD THE REQUIRED FUNDING MATCH RATIO OF AT LEAST TWO DOLLARS FOR
EVERY STATE DOLLAR PROVIDED PURSUANT TO THIS ARTICLE TO AN APPROVED
PLAN, AND HOW THE SCHOOL WILL USE OTHER RESOURCES, PARTNERSHIPS, AND
COLLABORATIONS TO AID DIRECTLY OR INDIRECTLY IN ACTIVITIES CRITICAL TO
THE COMMERCIALIZATION OF RESEARCH. INSOFAR AS PRACTICABLE, SUCH MATCHING
FUNDS SHOULD NOT CONSIST OF DIRECT STATE GRANTS FROM THE DEPARTMENT OR
FROM ANOTHER STATE AGENCY OR STATE PUBLIC AUTHORITY, PROVIDED THAT NOTH-
ING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT A MEDICAL SCHOOL OF
THE STATE UNIVERSITY OF NEW YORK WHICH HAS BEEN DESIGNATED AS A CENTER
FROM USING A PORTION OF ITS OPERATING FUNDS AS MATCHING FUNDS.
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5. ADDITIONAL PLANS AND PROGRAMS: OTHER PLANS AND PROGRAMS INTEGRAL TO
THE SUCCESSFUL EXECUTION OF THE PROJECT, INCLUDING BUT NOT LIMITED TO
PATENT AND INTELLECTUAL PROPERTY PLANS, TRAINING AND EDUCATIONAL
PROGRAMS, AND EDUCATIONAL INTEGRATION WITH RESEARCH AND CLINICAL ACTIV-
ITIES.
6. COMMUNITY SUPPORT: A DEMONSTRATION OF COMMUNITY SUPPORT FROM BUSI-
NESS AND GOVERNMENT LEADERS AND ORGANIZATIONS.
7. BEST PRACTICES: A DEMONSTRATION THAT THE MEDICAL SCHOOL HAS OR WILL
ADOPT BEST PRACTICES AND USE OF MULTI-YEAR METRICS FOR PERFORMANCE, AND
THAT IT WILL REPORT DATA AS REQUESTED OR REQUIRED TO THE DEPARTMENT AND
THE STATE INITIATIVE COMMITTEE.
8. PERFORMANCE METRICS: ANTICIPATED ANNUAL AND CUMULATIVE OUTCOMES OF
THE PROJECT IN TERMS OF DIRECT, INDIRECT, AND RETAINED JOBS, INVESTMENT,
AND ECONOMIC AND OTHER ACTIVITY, STATED IN A SPECIFIC AND MEASURABLE
WAY, AND RESEARCH FINDINGS AND PROGRESS.
9. ADVISORY COUNCIL: AN ADVISORY COUNCIL OF FIVE MEMBERS OR MORE THAT
INCLUDES ONE OR MORE EXECUTIVE OFFICERS OF FIRMS THAT HAVE BEEN CREATED
FROM RESEARCH AT THE SCHOOL, AND INDIVIDUALS WITH EXPERTISE IN AREAS
APPROPRIATE TO THE SPECIFIC DEVELOPMENTAL SECTOR OR CONCENTRATION OF
CLIENTS, OR TO BIOMEDICAL AND BIOTECHNOLOGICAL RESEARCH AND DEVELOPMENT,
AND TO THE MISSION AND GOAL OF THE PROJECT.
S 445. REVIEW AND APPROVAL OF APPLICATIONS. REVIEW OF APPLICATIONS
SHALL TAKE PLACE AS FOLLOWS:
1. THE COMMISSIONER SHALL REVIEW APPLICATIONS AND PLANS RECEIVED FOR
COMPLETENESS, AND THEN FORWARD THEM TO THE PEER REVIEW COMMITTEE. NO
PLAN SHALL BE APPROVED BY THE STATE INITIATIVE COMMITTEE THAT HAS
RECEIVED A DESIGNATION OF NOT RECOMMENDED FOR FURTHER CONSIDERATION
(NRFC) BY THE PEER REVIEW COMMITTEE. NO PLANS SHALL BE FORWARDED BY THE
COMMISSIONER TO EITHER COMMITTEE THAT REQUIRE THAT FUNDS MADE AVAILABLE
PURSUANT TO THIS ARTICLE SHALL BE DIRECTLY OR INDIRECTLY UTILIZED FOR
RESEARCH INVOLVING HUMAN REPRODUCTIVE CLONING.
2. THE MEMBERS OF THE PEER REVIEW COMMITTEE SHALL BE SELECTED BY THE
CHAIR AND THE CO-CHAIR OF THE STATE INITIATIVE COMMITTEE USING GUIDE-
LINES APPROVED BY SUCH COMMITTEE, WHICH SHALL INCLUDE REQUIREMENTS
CONCERNING EXPERTISE AND AVOIDANCE OF CONFLICT OF INTEREST. IF NECESSARY
AND DEEMED APPROPRIATE BY THE STATE INITIATIVE COMMITTEE, PLANS MAY BE
SUBMITTED BLIND TO THE PEER REVIEW PANEL. PEER REVIEW PANELS SHALL
INCLUDE A MINIMUM OF FIVE MEMBERS.
3. THE PEER REVIEW COMMITTEE SHALL REVIEW AND SCORE PLANS BASED ON THE
FOLLOWING CRITERIA:
(A) SCIENTIFIC AND TECHNICAL MERIT;
(B) THE LEVEL OF SCIENTIFIC KNOWLEDGE, TECHNICAL CAPABILITY, AND/OR
CLINICAL PRACTICE AND OTHER NECESSARY PLAN COMPONENTS THAT WOULD BE
REQUIRED TO BE HOUSED AT THE MEDICAL SCHOOL, INCLUDING IMPROVEMENTS THAT
MAY BE ANTICIPATED BASED ON THE PLAN;
(C) THE SUITABILITY OF PRINCIPAL INVESTIGATIONS, COLLABORATORS, AND
OTHER RESEARCHERS TO THE PROJECT, INCLUDING THE EXPERIENCE AND TRAINING
OF STAFF AND COLLABORATORS;
(D) THE ONGOING RECORD OF ACCOMPLISHMENTS AND INTEGRATED EXPERTISE AT
THE SCHOOL OR AS PROPOSED IN THE PLAN, INCLUDING LEADERSHIP APPROACH,
GOVERNANCE AND ORGANIZATIONAL STRUCTURE;
(E) PLANS FOR PROTECTION OF HUMAN SUBJECTS;
(F) THE SCIENTIFIC ENVIRONMENT IN WHICH THE WORK WILL BE DONE;
(G) APPROPRIATENESS OF INSTITUTIONAL SUPPORT, EQUIPMENT, AND OTHER
PHYSICAL RESOURCES; AND
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(H) SUCH OTHER INFORMATION AS THE STATE INITIATIVE COMMITTEE SHALL
REQUIRE.
4. AN APPLICATION RECEIVING A LOW SCORE BY THE PEER REVIEW COMMITTEE
BASED ON THE CRITERIA IN SUBDIVISION THREE OF THIS SECTION, OR WHICH
LACKS SIGNIFICANT AND SUBSTANTIAL MERIT, OR WHICH PRESENTS IN THE VIEW
OF THE PEER REVIEW COMMITTEE SERIOUS ETHICAL PROBLEMS IN THE PROTECTION
OF HUMAN SUBJECTS FROM RESEARCH RISKS, OR OTHER SERIOUS ETHICAL PROB-
LEMS, SHALL BE DESIGNATED NOT RECOMMENDED FOR FURTHER CONSIDERATION
(NRFC). SUCH PLANS SHALL BE RETURNED TO THE COMMISSIONER AND BY THE
COMMISSIONER TO THE STATE INITIATIVE COMMITTEE WITH WRITTEN RECOMMENDA-
TIONS FOR CHANGE.
5. THE STATE INITIATIVE COMMITTEE SHALL REVIEW AND SCORE PLANS BASED
ON THE CATEGORIES REQUIRED IN THE APPLICATION PURSUANT TO SECTION FOUR
HUNDRED FORTY-FOUR OF THIS ARTICLE, AND SHALL ADDITIONALLY CONSIDER THE
FOLLOWING:
(A) THE ANTICIPATED EFFECTIVENESS OF THE PLAN AS EVIDENCED BY THE
EXISTENCE OF AVAILABLE RESOURCES DEDICATED TO THE PLAN AND THE COMMIT-
MENT OF THE MEDICAL SCHOOL;
(B) THE ABILITY OF THE APPLICANT TO UNDERTAKE AND COMPLETE THE PLAN,
THE FEASIBILITY OF MEETING THE METRICS AND GOALS PROVIDED FOR DETERMIN-
ING THE SUCCESS OF THE PLAN, THE DURABILITY AND EXTENT OF THE RELATION-
SHIPS WITH INCUBATORS AND HOTSPOTS, AND WITH START-UP NY PROJECTS, AND
WITH PRIVATE AND OTHER PUBLIC COLLABORATORS;
(C) THE ABILITY OF THE APPLICANT TO PROVIDE THE NECESSARY DATA FOR AN
EFFECTIVE EVALUATION OF THE PROJECT;
(D) THE AMOUNT OF FEDERAL AND PRIVATE GRANTS, OR OTHER RESOURCES THAT
WILL BE INCENTIVIZED AND MADE AVAILABLE TO THE SCHOOL TO ASSIST IN FUND-
ING OF THE PROJECT; AND
(E) SUCH OTHER MEASURABLE CRITERIA AS SHALL BE DETERMINED BY THE
COMMITTEE.
6. PLANS DESIGNATED AS NOT RECOMMENDED FOR FURTHER CONSIDERATION
(NRFC) BY THE PEER REVIEW COMMITTEE OR THE STATE INITIATIVE COMMITTEE
SHALL BE RETURNED TO THE APPLICANT WITH ANY RECOMMENDATIONS FOR AMEND-
MENT AND MAY BE RESUBMITTED IN THE FOLLOWING YEAR.
7. THE STATE INITIATIVE COMMITTEE SHALL REVIEW THE APPLICATIONS AND
PLANS SUBMITTED TO IT AND RECOMMEND CHANGES AND DETERMINE FUNDING LEVELS
AND SOURCES TO BE INCLUDED IN THE UNIFIED CONTRACT, PROVIDED THAT NOT
MORE THAN FORTY PERCENT OF FUNDS, APPROPRIATED PURSUANT TO THIS ARTICLE
SHALL BE USED FOR ANY SINGLE PROJECT IN ANY YEAR. INSOFAR AS PRACTICABLE
IN APPROVING APPLICATIONS, THE COMMITTEE SHALL SEEK TO PROVIDE A
GEOGRAPHICALLY BALANCED DISTRIBUTION AMONG THE REGIONS OF THE STATE IN
DESIGNATING NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTERS.
8. AS SOON AS PRACTICABLE AFTER APPROVING AN APPLICATION THE COMMITTEE
SHALL NOTIFY THE TEMPORARY PRESIDENT OF THE SENATE AND THE SPEAKER OF
THE ASSEMBLY OF ITS APPROVAL. SUCH NOTIFICATION SHALL IDENTIFY THE
RECIPIENT AND STATE THE PROPOSED LOCATION, THE ESTIMATED PROJECT FUNDING
AND AWARD AND PROVIDE A BRIEF DESCRIPTION OF THE PROJECT.
S 446. WAIVER IN CERTAIN CASES. TO PROMOTE INNOVATIVE APPROACHES AND
MAXIMIZE EFFECTIVE USE OF PUBLIC MONIES AND THE LIKELIHOOD OF SUCCESS IN
OPERATION OF APPROVED NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTERS, AND
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMMISSIONER OR DIRECTOR
OF ANY STATE AGENCY THAT IS A MEMBER OF THE STATE INITIATIVE COMMITTEE
MAY WAIVE, UPON APPLICATION BY SUCH CENTER AND SUBJECT TO THE APPROVAL
OF THE STATE INITIATIVE COMMITTEE AND THE DIRECTOR OF THE BUDGET, ANY OF
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SUCH AGENCY'S REGULATORY OR PROCEDURAL REQUIREMENTS THAT MAY IMPEDE THE
SUCCESSFUL IMPLEMENTATION OF A PROJECT UNDERTAKEN BY THE CENTER,
PROVIDED THAT SUCH WAIVER IS CONSISTENT WITH APPLICABLE STATE AND FEDER-
AL STATUTES AND WILL NOT IMPAIR THE GENERAL HEALTH OR WELFARE OF THE
PEOPLE RECEIVING SERVICES UNDER SUCH PROJECT OR OTHERS. SUCH COMMISSION-
ER OR DIRECTOR SHALL BE AUTHORIZED, IN CONSULTATION WITH THE DIRECTOR OF
THE BUDGET, TO IMPOSE APPROPRIATE ALTERNATIVE STANDARDS IN PLACE OF ANY
WAIVED REQUIREMENTS.
S 447. OPERATION AND RE-DESIGNATION OF NEW YORK STATE BIOMEDICAL AND
BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
CENTERS. IN ADDITION TO ANY OTHER REQUIREMENTS OF THIS ARTICLE, A CENTER
WILL AGREE TO PROVIDE DATA SHOWING ITS SUCCESS IN MEETING PROJECT PLAN
GOALS, INCLUDING YEAR BY YEAR COMPARISON OF RESEARCH ACTIVITY AND
COMMERCIALIZATION THEREOF, FIRM FINANCING AND EQUITY CAPITAL RAISED,
PROVIDED OR LEVERAGED FROM ALL SOURCES, PERSONNEL EMPLOYED ON THE
PROJECT, AND JOBS CREATED BY AND THROUGH THE PROJECT. THE DEPARTMENT
SHALL DESIGN SIMPLIFIED FORMS TO AID IN THE SUBMISSION OF SUCH DATA,
WHICH MAY BE SUBMITTED ELECTRONICALLY.
THE CHAIRS OF THE STATE INITIATIVE COMMITTEE SHALL EVALUATE AND REPORT
ON THE OPERATIONS OF THE CENTER USING METHODS INCLUDING BUT NOT LIMITED
TO SITE VISITS, REPORTS PURSUANT TO SPECIFIC INFORMATION, AND REVIEW
EVALUATIONS. IF THE CHAIRS DETERMINE THE PROJECT IS NOT PROGRESSING AS
AGREED, THE CENTER WILL BE NOTIFIED OF DEFICIENCIES AND THE CENTER SHALL
REMEDY ANY DEFICIENCIES IN ITS OPERATIONS IN A TIMELY MANNER. SUCH EVAL-
UATIONS SHALL TAKE PLACE NO LESS THAN ONCE EVERY THREE YEARS OR MORE
OFTEN FOR ANY INDIVIDUAL CENTER AT THE DISCRETION OF THE CHAIRS, AND
SHALL RESULT IN A WRITTEN REPORT THAT INCLUDES PROGRAMMATIC AND FISCAL
EVALUATION OF THE PROJECT AND RECOMMENDATIONS FOR IMPROVEMENT.
FAILURE TO TIMELY CURE A DEFICIENCY AFTER REVIEW SHALL RESULT IN
DISQUALIFICATION OF THE MEDICAL SCHOOL AS A CENTER.
A CENTER SHALL BE DEEMED RE-DESIGNATED UPON APPLICATION EVERY FIVE
YEARS UNLESS IT SHALL RECEIVE A NEGATIVE EVALUATION FROM THE PEER REVIEW
GROUP ON ITS APPLICATION FOR RE-DESIGNATION, OR IF IT SHALL FAIL TO
REMEDY IDENTIFIED DEFECTS IN ITS OPERATION MADE KNOWN TO IT PURSUANT TO
THIS SECTION, OR IF THE STATE INITIATIVE COMMITTEE DETERMINES THAT SUCH
DEFECTS ARE OF SUCH A NATURE, INVOLVE FRAUD, OR ARE OF SUCH EXTENT THAT
THEY CANNOT BE REMEDIED.
S 448. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM. THE SCIENTIFIC
RESEARCH AND DISCOVERY BANK PROGRAM IS HEREBY CREATED, WHOSE PURPOSE
SHALL BE TO PROVIDE FUNDS TO CENTERS FOR RECRUITMENT OF OUT OF STATE AND
RETENTION OF IN-STATE SCIENTISTS AND RESEARCHERS NECESSARY TO THE
SUCCESSFUL IMPLEMENTATION OF APPROVED PROJECTS. MONIES SHALL BE MADE
AVAILABLE TO CENTERS FROM FUNDS APPROPRIATED FOR THE PURPOSES OF THIS
ARTICLE, AFTER REVIEW AND UPON APPROVAL BY THE STATE INITIATIVE COMMIT-
TEE PURSUANT TO A PLAN SUBMITTED BY A CENTER. SUCH PLAN MAY BE SUBMITTED
AT THE TIME OF THE APPLICATION OR AT ANY TIME DURING THE IMPLEMENTATION
OF THE MULTI-YEAR APPROVED PLAN AND MUST DEMONSTRATE TO THE SATISFACTION
OF THE COMMITTEE THAT THE CENTER HAS OR WILL HAVE DURING THE PERIOD OF
THE GRANT A MATCH OF TWO DOLLARS FOR EVERY STATE DOLLAR PROVIDED PURSU-
ANT TO THIS SECTION. PLANS MUST SHOW THE TIMELINE AND USAGE OF FUNDS
REQUIRED AND SUCH OTHER INFORMATION AS THE COMMITTEE SHALL REQUIRE,
INCLUDING: THE NEED FOR SUCH FUNDS AND THE MANNER IN WHICH SUCH AWARD
WOULD ENHANCE THE RESEARCH CAPABILITIES OF THE CENTER NECESSARY TO
SUCCESSFUL IMPLEMENTATION OF THE PROJECT PLAN; THE ABILITY OF THE
RESEARCHER TO LEVERAGE AND ATTRACT FEDERAL FUNDS, VENTURE CAPITAL AND
PRIVATE INDUSTRY FUNDS; AND THE WILLINGNESS OF SUCH RESEARCHER TO PURSUE
A. 9000 8
ENTREPRENEURIAL ENTERPRISES RESULTING IN NEW BUSINESS OR THE EXPANSION
OF EXISTING BUSINESS IN THIS STATE. THE COMMITTEE SHALL ESTABLISH A
SCHEDULE FOR PAYMENT OF THE AWARD. FUNDS PROVIDED PURSUANT TO THIS
SECTION MUST BE APPLIED DIRECTLY TO NECESSARY EXPENSES FOR RECRUITMENT
AND RETENTION OF SCIENTISTS AND RESEARCHERS, AND MAY NOT BE USED FOR
INDIRECT OR OTHER OVERHEAD COSTS OF THE MEDICAL SCHOOL. INSOFAR AS PRAC-
TICABLE, SUCH MATCHING FUNDS SHOULD NOT CONSIST OF DIRECT STATE GRANTS
FROM THE DEPARTMENT OR FROM ANOTHER STATE AGENCY OR STATE PUBLIC AUTHOR-
ITY, PROVIDED THAT NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT A
MEDICAL SCHOOL OF THE STATE UNIVERSITY OF NEW YORK WHICH HAS BEEN DESIG-
NATED AS A CENTER FROM USING A PORTION OF ITS OPERATING FUNDS AS MATCH-
ING FUNDS. FUNDS USED FOR MATCH MAY INCLUDE REASONABLE ADMINISTRATIVE
COSTS ASSOCIATED WITH OUT OF STATE RECRUITMENT OR IN-STATE RETENTION.
S 449. UNIFIED CONTRACT. THE COMMISSIONER ON BEHALF OF THE STATE
INITIATIVE COMMITTEE SHALL ENTER INTO A UNIFIED CONTRACT WITH EACH
CENTER. THE PROVISIONS OF SUCH CONTRACT SHALL INCLUDE, BUT NOT BE LIMIT-
ED TO: A DESCRIPTION OF PROJECT SERVICES AND ACTIVITIES; THE PLAN;
ALLOWABLE PROJECT COSTS; SPECIFIC SOURCES OF FUNDS THAT WILL SUPPORT THE
APPROVED COSTS, INCLUDING GOVERNMENTAL AND NON-GOVERNMENTAL FUNDS OR
REVENUES THAT ARE PROPOSED TO BE USED IN SUPPORT OF PROJECT COSTS; AND
THE ALLOCATION OF COSTS BY FUNDING SOURCE. THE FORM OF SUCH UNIFIED
CONTRACT SHALL BE DEVELOPED IN CONSULTATION WITH THE DIVISION OF THE
BUDGET AND THE OFFICE OF STATE COMPTROLLER. THE COMPTROLLER IS AUTHOR-
IZED PURSUANT TO A CERTIFICATE OF ALLOCATION SUBMITTED BY THE DIVISION
OF THE BUDGET TO INTERCHANGE OR TRANSFER FROM APPROPRIATIONS MADE TO THE
AGENCIES OF THE COMMITTEE OR ANY OTHER APPROPRIATION, AS APPROPRIATE,
SUCH AMOUNTS AS MAY BE REQUIRED TO FULFILL THE OBLIGATIONS OF THE STATE
PURSUANT TO SUCH UNIFIED CONTRACTS FOR PAYMENTS OF SUCH OBLIGATIONS. THE
DIVISION OF THE BUDGET SHALL PROVIDE THE CHAIRS OF THE SENATE FINANCE
COMMITTEE AND THE ASSEMBLY WAYS AND MEANS COMMITTEE WITH QUARTERLY
REPORTS OF ALL INTERCHANGES AND TRANSFERS WHICH OCCUR PURSUANT TO THIS
SUBDIVISION.
1. ALLOWABLE COSTS FOR A PROJECT SHALL INCLUDE, BUT NOT BE LIMITED TO
COSTS REASONABLY INCURRED FOR:
(A) PREPARATION OF THE PLAN;
(B) ACTIVITIES AS APPROVED IN THE PROJECT APPLICATION;
(C) EVALUATION OF THE APPROVED PROJECT; AND
(D) RENOVATIONS TO EXISTING STRUCTURES AS MAY BE NEEDED IN FURTHERANCE
OF THE PLAN, EXCEPT THAT IN NO CASE SHALL THE STATE SUPPORT OF SUCH
COSTS EXCEED EITHER TWENTY-FIVE PERCENT OF THE AMOUNT TO BE PROVIDED
PURSUANT TO THE CONTRACT OR FIFTY PERCENT OF THE TOTAL RENOVATION COSTS,
WHICHEVER IS LESS.
2. FUNDING MADE AVAILABLE PURSUANT TO THIS ARTICLE SHALL NOT BE USED
TO SUPPLANT OTHER FUNDS FOR OPERATIONS OR PROJECTS OF A CENTER.
IN ADDITION TO THE FOREGOING REQUIREMENTS, A CENTER SHALL AGREE TO
DEDICATE ALL FUNDS FROM ANY SUPPORT RECEIVED PURSUANT TO THIS ARTICLE,
EXCEPT FOR FUNDS RECEIVED PURSUANT TO PARAGRAPH (D) OF SUBDIVISION ONE
OF THIS SECTION, TO OPERATIONS OF THE CENTER WITHOUT DEDUCTIONS FOR
OVERHEAD, INDIRECT COSTS, OR FACILITIES AND ADMINISTRATION CHARGES OF
THE MEDICAL SCHOOL, AND TO LIMIT TO TEN PERCENT OR LESS THE ALLOCATION
OF FUNDS RECEIVED THROUGH THIS ARTICLE TO ADMINISTRATIVE COSTS OF THE
CENTER.
S 3. This act shall take effect on the first of September next
succeeding the date on which it shall have become a law.