BILL NUMBER:S1655

TITLE OF BILL:
An act
to amend the education law, in relation to establishing the state
university commercialization facilities use policy

PURPOSE:
To codify state university facilities use policy for the purposes of
encouraging commercialization activity on campuses.

SUMMARY OF PROVISIONS:
University facilities may be used by private firms for the purposes of
commercializing new technologies. The cost of the use of university
space may be met with user fees, other non-university resources or
equity share in the applicant firm. The policy permits companies to
retain intellectual property rights under these circumstances. The
effectiveness of the policy will be evaluated annually.

Amends section 35 of the education law by adding a new subdivision 3-a.

JUSTIFICATION:
The state university system is one of the great sources for innovation
in the state. The majority of licensed SUNY technologies need
continued development in order to be made into a product or service
for public consumption. SUNY can ensure that those development
              

dollars stay in New York through programs that leverage use of its
facilities and equipment in consideration for equity in New York
based startup companies that license SUNY technology.

Companies often apply for access to university facilities to perform
development work, working side-by-side with SUNY researchers to solve
practical barriers to commercialization. However, SUNY must recover
the costs associated with the company's use of its facilities and
research, and development dollars are scarce. An equity-based
facilities access program will allow SUNY to open its doors and meet
the research and development needs of New York based startups, SUNY
can accept an equity position valued at the cash equivalent of its
cost to provide access to a given facility or equipment.

R&D assistance is a major incentive to entrepreneurs to create
companies around SUNY technology and locate in New York to gain
access to SUNY's state-of-the-art facilities and
equipment. With this program, SUNY can make New York an even more
attractive entrepreneurial environment and retain high growth
companies.

LEGISLATIVE HISTORY: 2012 S.7154.

FISCAL IMPLICATIONS: None expected.

EFFECTIVE DATE: Immediately.