senate Bill S6793

2013-2014 Legislative Session

Relates to enacting the New York state digital game development and incentive act

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Archive: Last Bill Status - In Committee


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

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Actions

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Apr 28, 2014 reported and committed to finance
Mar 11, 2014 referred to corporations, authorities and commissions

Votes

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Apr 28, 2014 - Corporations, Authorities and Commissions committee Vote

S6793
5
0
committee
5
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
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Abstained
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Corporations, Authorities and Commissions Committee Vote: Apr 28, 2014

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Co-Sponsors

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S6793 - Bill Details

See Assembly Version of this Bill:
A9081
Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Add §16-w, UDC Act; add §99-v, St Fin L

S6793 - Bill Texts

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Relates to enacting the New York state digital game development and incentive act to enhance opportunities in the gaming industry.

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BILL NUMBER:S6793

TITLE OF BILL: An act to amend the urban development corporation act
and the state finance law, in relation to establishing the New York
state digital game development and incentive act

PURPOSE: To incentivize rapid growth and job creation in the digital
game development industry by providing competitions and events around
the state

SUMMARY OF PROVISIONS:

Section 1 New 16-w in the urban development corporation act, the NYS
digital game development and incentive act. Key provisions:

Raise NYS profile

* NYS digital game summit, regional events, & representation at national
events. The summit will be a celebration of New York's industry spon-
sored by one or more private groups, and regional support is to include
support of regional and local events. The purpose is to create an
ecosystem of related gatherings, meetings, and competitions. Represen-
tation at events will entail ESDC organizing and/or participating in
representation of New York digital game companies, entrepreneurs,
academics, and others at major game events and venues.

* NYS digital game development competition, a three stage judged compe-
tition for prizes over a 24-month period. Judges are from industry,
academia, and economic development. Competitors must be residents of the
state, new and emerging talent, and early seed stage startup entrepre-
neurs. The competition is as follows:

- First competition - 10 winners from each NYS 10 economic development
regions. Prize is $10,000 Requires conceptualization, design document,
and at least a digital prototype. Winners use the prizes to link with
incubators and to develop business attributes and product completion
necessary for the next phase of the competition.

- Second competition - 10 winners from the winners of the first competi-
tion, scheduled at different venues around the state. Prize is matching
funds of up to $100,000. Entrants should be in pre-production, with a
vertical slice, and have raised funds for match. Prizes will include
access to incubator space and mentoring.

- Final competition - two winners from the ten, selected at the NYS
digital game summit. Prize is $500,000. Entrants must have a completed
game, and update the information required in the second competition.

- Competition 2 and 3 winners must agree to remain resident in the state
for game development purposes for three years, and to return the award
to the state should they leave or sell the game or the game company
prior to that. Winners must also agree to contribute one percent of

profits of the game to the New York state digital game development fund
for three years after publication of the game, or until the amount
contributed matches the amount of the award received, whichever time
period is less.

* NYS digital game development fund, To receive funds from revenues
contributed by winners of the competitions.

EXISTING LAW: New bill.

JUSTIFICATION: The digital game industry is $21 billion domestically
(2012), greater than the music industry ($16.5 billion), the movie
industry ($10.44 billion) and the DVD industry ($18 billion), growing at
10% per year, with an average salary for direct employees of $90,000.

New York ranks 4th among the top states, with 71 developers and publish-
ers and 5,474 direct and indirect jobs. Average compensation is $96,602.
Top states are California, Washington, Texas, with Massachusetts coming
up behind.

The changes in this legislation will dramatically increase New York's
share of the industry they are based on recommendations and discussions
conducted with the industry in all-day roundtables and other
discussions.

FISCAL IMPLICATIONS: To be determined, but minimal in the current fiscal
year, and then limited thereafter to appropriations and tax credit caps.

EFFECTIVE DATE:

On the ninetieth day after it shall have become law.

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

                                  6793

                            I N  S E N A T E

                             March 11, 2014
                               ___________

Introduced  by  Sens. GOLDEN, GALLIVAN, BALL, GRIFFO, ROBACH, VALESKY --
  read twice and ordered printed, and when printed to  be  committed  to
  the Committee on Corporations, Authorities and Commissions

AN  ACT  to  amend  the  urban development corporation act and the state
  finance law, in relation to establishing the New  York  state  digital
  game development and incentive act

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

  Section 1. 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-w to read as follows:
  S 16-W. THE NEW YORK STATE DIGITAL GAME DEVELOPMENT AND INCENTIVE ACT.
1. AS USED IN THIS SECTION:
  A. "DIGITAL GAME DEVELOPMENT" OR  "DIGITAL  GAME  SOFTWARE"  COMPANIES
(COLLECTIVELY,  "DIGITAL  GAME  COMPANIES") AND PUBLISHERS ARE COMPANIES
ENGAGED IN DEVELOPING, PRODUCING, OR PUBLISHING  ENTERTAINMENT  SOFTWARE
FOR  ONE OR MULTIPLE PLATFORMS OR PLAYING DEVICES THAT MAY OR MAY NOT BE
DOWNLOADED ELECTRONICALLY, INCLUDING COMPANIES  THAT  ARE  OR  WOULD  BE
CLASSIFIED UNDER NAIC CODE 511210 OR ANY SUCCESSOR THERETO;
  B.  "NEW YORK STATE INCUBATOR" OR "NEW YORK STATE INNOVATION HOT SPOT"
HAVE THE SAME MEANINGS AS "NEW YORK  STATE  INCUBATORS"  AND  "NEW  YORK
STATE INNOVATION HOT SPOTS" AS USED IN SECTION SIXTEEN-V OF THIS ACT;
  C.  "ANCHOR  TENANT"  MEANS  ENTITIES  OR PERSONS SO DESIGNATED BY THE
COMMISSIONER OF ECONOMIC DEVELOPMENT THAT ARE DIGITAL GAME COMPANIES, OR
ARE SUBSIDIARIES OF OR NEW VENTURES OWNED WHOLLY OR IN PART  BY  DIGITAL
GAME COMPANIES. AN ENTITY OR PERSON CANNOT BE AN ANCHOR TENANT UNLESS IT
IS RESIDENT IN NEW YORK STATE AND ESTABLISHES OPERATIONS PURSUANT TO THE
START-UP NY PROGRAM AUTHORIZED UNDER ARTICLE 21 OF THE ECONOMIC DEVELOP-
MENT LAW IN AN INDUSTRY CLUSTER OF DIGITAL GAME COMPANIES.
  2.  THE  CORPORATION  IS  AUTHORIZED AND DIRECTED, WITHIN AMOUNTS MADE
AVAILABLE TO IT BY APPROPRIATION THEREFOR  AND  SUCH  OTHER  PUBLIC  AND
PRIVATE  FUNDS AS SHALL ADDITIONALLY BE MADE AVAILABLE, TO PROVIDE LOANS
AND GRANTS FOR SERVICES AND EXPENSES RELATED TO PLANNING AND  IMPLEMENT-
ING  A  NEW YORK STATE DIGITAL GAME SUMMIT, TO SUPPORT AND PROMOTE OTHER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14395-01-4

S. 6793                             2

LOCAL AND REGIONAL DIGITAL GAME EVENTS, AND TO ORGANIZE STATE  REPRESEN-
TATION  AT  NATIONAL  DIGITAL GAME EVENTS DEEMED AFTER CONSULTATION WITH
THE NEW YORK STATE DIGITAL GAME DEVELOPMENT ADVISORY BOARD TO BE SIGNIF-
ICANT  AND  APPROPRIATE  TO RAISING NEW YORK'S PROFILE AND STATUS IN THE
GAME DEVELOPMENT INDUSTRY. PRIOR TO TAKING SUCH ACTIONS, THE CORPORATION
SHALL CONSULT WITH AND DEVELOP A PLAN TO MAXIMIZE  THE  EFFECT  OF  SUCH
ACTIVITIES  WITH  THE  NEW YORK DIGITAL GAME DEVELOPMENT ADVISORY BOARD.
GENERAL REQUIREMENTS AND PARAMETERS FOR THESE  ACTIVITIES  SHALL  BE  AS
FOLLOWS:
  A.  NEW  YORK  STATE  GAME  SUMMIT SHALL BE A MULTI-DAY CONVENTION AND
CELEBRATION OF NEW YORK'S DIGITAL  GAME  INDUSTRY,  INCLUDING  ENTREPRE-
NEURS, STUDENTS, ACADEMIC INSTITUTIONS, AND COMPANIES, TO BE HELD IN NEW
YORK  CITY  AT A TIME WHEN THERE IS THE LEAST AMOUNT OF COMPETITION FROM
OTHER NATIONAL AND IN-STATE EVENTS, AT A VENUE WITH A HISTORY AND INTER-
EST IN DIGITAL GAMING OR IN CONVENTIONS WHICH  ARE  ABLE  TO  HOUSE  THE
LAUNCH  OF A GROWING EVENT. THE GAME SUMMIT WILL ALSO INCLUDE THE FINALS
OF THE NEW  YORK  DIGITAL  GAME  DEVELOPMENT  COMPETITION,  CREATED  AND
AUTHORIZED  BY  THIS  SECTION,  AND  SHALL  INCLUDE  DEMONSTRATIONS  AND
DISCUSSIONS OF GAMES, EDUCATIONAL FORUMS IN WHICH  EDUCATORS  CAN  LEARN
ABOUT  USING  GAMES IN THE CLASSROOM, AND OTHER ACTIVITIES DEEMED APPRO-
PRIATE BY THE CORPORATION TO SUCH AN EVENT.  THE CORPORATION SHALL PART-
NER WITH AND SUPPORT ONE OR MORE PRIVATE ENTITIES AND TRADE ASSOCIATIONS
THAT CREATE AND IMPLEMENT THE SUMMIT.
  B. REGIONAL SUPPORT SHALL INCLUDE SUPPORT OF AND  COLLABORATIONS  WITH
REGIONAL AND LOCAL DIGITAL GAME PUBLISHERS AND DEVELOPER EVENTS, FOR THE
PURPOSE  OF  CREATING  AN ECOSYSTEM OF RELATED GATHERINGS, MEETINGS, AND
COMPETITIONS IN THIS STATE.
  C. REPRESENTATION AT EVENTS WILL  ENTAIL  THE  CORPORATION  ORGANIZING
AND/OR  PARTICIPATING  IN REPRESENTATION OF NEW YORK DIGITAL GAME COMPA-
NIES, ENTREPRENEURS, ACADEMICS, AND OTHERS  AT  MAJOR  GAME  EVENTS  AND
VENUES.
  3.  THE CORPORATION IS AUTHORIZED, WITHIN AMOUNTS MADE AVAILABLE TO IT
BY APPROPRIATION THEREFOR AND WITH SUCH OTHER PUBLIC AND  PRIVATE  FUNDS
AS  SHALL  ADDITIONALLY BE MADE AVAILABLE, TO PLAN AND IMPLEMENT THE NEW
YORK STATE DIGITAL GAME DEVELOPMENT COMPETITION, THE  PURPOSE  OF  WHICH
SHALL  BE  TO  ANNUALLY  RECOGNIZE AND ENCOURAGE EMERGING TALENT IN GAME
DEVELOPMENT IN THIS STATE THROUGH A THREE STAGE JUDGED  COMPETITION  FOR
PRIZES OVER A PERIOD NOT LONGER THAN TWENTY-FOUR MONTHS. THE CORPORATION
SHALL  CONSULT WITH AND DEVELOP A PLAN FOR THE GAME DEVELOPMENT COMPETI-
TION WITH THE NEW YORK DIGITAL GAME DEVELOPMENT ADVISORY BOARD.  GENERAL
REQUIREMENTS AND PARAMETERS FOR THESE ACTIVITIES ARE AS FOLLOWS:
  A.  THE FIRST COMPETITION SHALL TAKE PLACE WITHIN EACH ECONOMIC DEVEL-
OPMENT REGION IN THE STATE, AND SHALL RESULT IN TEN WINNERS PER  REGION.
NOTHING  CONTAINED HEREIN SHALL PREVENT TWO OR MORE REGIONS FROM COLLAB-
ORATING IN THIS STAGE OF THE  COMPETITION,  AND  THE  CORPORATION  SHALL
ESTABLISH  RULES OR GUIDELINES TO GOVERN SUCH COLLABORATIONS. THE SECOND
COMPETITION SHALL TAKE PLACE AMONG THE WINNERS OF THE FIRST COMPETITION,
AND SHALL RESULT IN TEN WINNERS. THIS COMPETITION SHALL BE SCHEDULED  AT
DIFFERENT  VENUES  WITHIN  THE  STATE  EACH  YEAR TO ASSURE GEOGRAPHICAL
BALANCE. THE FINAL COMPETITION SHALL RESULT IN TWO WINNERS AND SHALL  BE
CONDUCTED  AS PART OF THE NEW YORK STATE DIGITAL GAME SUMMIT. WINNERS OF
THE FIRST COMPETITION SHALL RECEIVE PRIZES OF TEN THOUSAND DOLLARS EACH.
WINNERS OF THE SECOND COMPETITION SHALL RECEIVE MATCHING FUND PRIZES  OF
UP  TO  ONE HUNDRED THOUSAND DOLLARS EACH. WINNERS OF THE THIRD COMPETI-
TION SHALL RECEIVE PRIZES OF FIVE HUNDRED THOUSAND DOLLARS EACH.

S. 6793                             3

  B. EACH COMPETITION SHALL BE JUDGED BY A SEVEN-MEMBER PANEL OF  INDUS-
TRY  OFFICIALS, ENTREPRENEURS, ACADEMICS, AND ECONOMIC DEVELOPMENT OFFI-
CIALS IN THE REGION OR IN THE STATE AS APPROPRIATE TO THE LEVEL  OF  THE
COMPETITION,  SELECTED  BY THE CORPORATION BASED ON RECOMMENDATIONS FROM
THE  COMMUNITY,  THE GAMING INDUSTRY, AND GOVERNMENT AND OTHER OFFICIALS
IN THE REGION. THE PANELS SHOULD INCLUDE A PREPONDERANCE OF  JUDGES  WHO
ARE INDUSTRY OFFICIALS, ENTREPRENEURS, ACADEMICS, AND SUCH JUDGES SHOULD
HAVE A BACKGROUND IN OR KNOWLEDGE OF DIGITAL GAMES, GAME PUBLISHING, AND
GAME  DEVELOPMENT AND AN UNDERSTANDING OF COMMERCIAL APPEAL AND MARKETA-
BILITY OF GAMES.
  C. THE CORPORATION SHALL ESTABLISH CRITERIA FOR ELIGIBILITY OF  COMPE-
TITION  ENTRANTS  THAT  REQUIRE  RESIDENCY  IN THIS STATE AND THAT LIMIT
ENTRANTS TO NEW AND EMERGING TALENT AND EARLY SEED STAGE STARTUP  ENTRE-
PRENEURS  AS  EVIDENCED  BY  FACTORS  SUCH  AS  THAT THE ENTRANT HAS NOT
PUBLISHED A GAME PREVIOUSLY OR, IF SUCH ENTRANT HAS PUBLISHED A GAME  IT
HAS EARNED A SMALL AMOUNT AS DETERMINED BY THE CORPORATION, OR THAT SUCH
ENTRANT  IS CURRENTLY A CLIENT OF A NEW YORK STATE INCUBATOR OR NEW YORK
STATE INNOVATION HOT SPOT, AND THE COMPANY HAS  BEEN  IN  EXISTENCE  FOR
LESS THAN THREE YEARS, AND OTHER SIMILAR FACTORS.
  D. FACTORS TO BE INCLUDED IN JUDGING EACH PHASE OF THE COMPETITION ARE
AS FOLLOWS:
  (I)  FOR  THE  FIRST  PHASE  ENTRANTS SHOULD SHOW CONCEPTUALIZATION, A
DESIGN DOCUMENT, AND PRE-PRODUCTION WITH CODING COMPLETED TO AT LEAST  A
DIGITAL  PROTOTYPE THAT SHOWS HOW THE GAME WOULD WORK. ADDITIONALLY, THE
JUDGES SHALL CONSIDER THE QUALITY OF THE GAME CONCEPT, THE PITCH OF  THE
INDIVIDUAL  TEAMS, THE TEAM DYNAMIC, AND THE LEVEL OF REAL, SUBSTANTIAL,
AND CONTINUING CONTROL OF THE I.P. WINNERS SHALL USE THE FUNDS  TO  LINK
WITH  NEW  YORK  STATE  INCUBATORS  FOR  COUNSELING AND MENTORING AND TO
DEVELOP THE NECESSARY BUSINESS ATTRIBUTES AS WELL AS ADDITIONAL  PRODUCT
COMPLETION NECESSARY FOR THE NEXT PHASE OF THE COMPETITION;
  (II)  FOR  THE SECOND PHASE COMPETITION AMONG THE WINNERS OF THE FIRST
PHASE, ENTRANTS SHOULD BE IN  PRE-PRODUCTION,  AND  SHOULD  HAVE  RAISED
FUNDS FROM INVESTORS OR FUNDING SITES OR OTHER SOURCES. PRIZES WILL BE A
MATCH  TO SUCH FUNDS, UP TO ONE HUNDRED THOUSAND DOLLARS, PLUS ACCESS TO
INCUBATOR SPACE AND MENTORING, SKILL BUILDING, AND OTHER SERVICES AVAIL-
ABLE TO BEING AN INCUBATOR CLIENT, AS NEGOTIATED AND  DEVELOPED  BY  THE
CORPORATION.  JUDGES  WILL LOOK AT ASPECTS OF THE PRODUCT AS WELL AS THE
BUSINESS PROPOSAL.  COMPETITORS  SHOULD  HAVE  COMPLETED  AND  SUBMITTED
EVIDENCE SATISFACTORY TO THE CORPORATION OF:
  (A) A BUSINESS TEAM (BAIL TEAM) AND A BUSINESS AND MARKETING PLAN;
  (B) A STRATEGIC MONETIZATION INVESTMENT AND FUNDING PLAN;
  (C)  A BUSINESS (INCLUDING A DBA, OR ANY OTHER FORM OF BUSINESS ORGAN-
IZATION);
  (D) A COMPLETED PRODUCT PLAN FOR MARKETING AND FINAL DEVELOPMENT;
  (E) PROOF OF CONCEPT CONSISTING AT LEAST OF A "VERTICAL SLICE" OF  THE
GAME,  MEANING  AT  LEAST ONE LEVEL OF PLAY, POLISH AND FINISH, WITH THE
INFRASTRUCTURE LARGELY COMPLETED;
  (F) PUBLIC TESTING OR ACCEPTANCE OR OTHER EVIDENCE OF MARKETING  VALUE
OF THE GAME;
  (III)  FOR  THE  THIRD  PHASE  COMPETITION AMONG WINNERS OF THE SECOND
PHASE, ENTRANTS MUST HAVE A COMPLETED GAME SUBMITTED  FOR  JUDGING,  AND
UPDATE THE INFORMATION REQUIRED IN PHASE TWO OF THE COMPETITION. CONTES-
TANTS  SHOULD ALSO REVEAL WHAT THEY INTEND TO DO WITH THE AWARD MONEY IF
THEY WIN.
  E. AS A CONDITION OF RECEIPT OF AWARDS  RECEIVED  IN  PHASES  TWO  AND
THREE,  CONTESTANTS SHALL AGREE TO REMAIN RESIDENT IN THE STATE FOR GAME

S. 6793                             4

DEVELOPMENT PURPOSES FOR A PERIOD OF FIVE YEARS, AND TO RETURN THE AWARD
TO THE STATE SHOULD THEY LEAVE OR SELL THE  GAME  OR  THE  GAME  COMPANY
PRIOR TO THAT FIVE-YEAR PERIOD. WINNERS IN PHASES ONE AND TWO SHALL ALSO
AGREE, AS A CONDITION OF RECEIPT OF THE AWARD, TO CONTRIBUTE ONE PERCENT
OF  PROFITS  OF  THE GAME TO THE NEW YORK STATE DIGITAL GAME DEVELOPMENT
FUND CREATED PURSUANT TO SECTION NINETY-NINE-V OF THE STATE FINANCE LAW,
FOR A PERIOD OF THREE YEARS AFTER PUBLICATION OF THE GAME, OR UNTIL  THE
AMOUNT  CONTRIBUTED  MATCHES THE AMOUNT OF THE AWARD RECEIVED, WHICHEVER
TIME PERIOD IS LESS.
  F. THE CORPORATION SHALL TAKE SUCH STEPS AS ARE NECESSARY  OR  CONVEN-
IENT  IN  ASSOCIATION  WITH GAME PUBLISHERS TO PROVIDE OPPORTUNITIES FOR
PHASE TWO AWARD RECIPIENTS TO OBTAIN  CONSIDERATION  OF  PUBLICATION  OF
THEIR GAMES.
  S  2. The state finance law is amended by adding a new section 99-v to
read as follows:
  S 99-V. NEW YORK STATE DIGITAL GAME DEVELOPMENT FUND.    1.  THERE  IS
HEREBY  ESTABLISHED  IN  THE  JOINT  CUSTODY  OF THE COMPTROLLER AND THE
COMMISSIONER OF ECONOMIC DEVELOPMENT AN  ACCOUNT  IN  THE  MISCELLANEOUS
SPECIAL  REVENUE  FUND  TO  BE KNOWN AS THE "NEW YORK STATE DIGITAL GAME
DEVELOPMENT FUND".
  2. SUCH ACCOUNT SHALL CONSIST OF MONIES DEPOSITED  INTO  IT  FROM  THE
REQUIREMENTS ESTABLISHED PURSUANT TO PARAGRAPH E OF SUBDIVISION THREE OF
SECTION SIXTEEN-W OF THE URBAN DEVELOPMENT CORPORATION ACT.
  3.  ALL MONIES IN THE ACCOUNT SHALL BE AVAILABLE, SUBJECT TO APPROPRI-
ATION, FOR THE PAYMENT OF EXPENSES AND PRIZES OF THE  NEW  YORK  DIGITAL
GAME DEVELOPMENT COMPETITION.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law.

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