S T A T E   O F   N E W   Y O R K
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                                  9081

                          I N  A S S E M B L Y

                             March 13, 2014
                               ___________

Introduced  by M. of A. MORELLE -- read once and referred to the Commit-
  tee on Economic Development

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
LOCAL  AND REGIONAL DIGITAL GAME EVENTS, AND TO ORGANIZE STATE REPRESEN-

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

                                                           LBD14395-01-4

A. 9081                             2

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.
  B.  EACH COMPETITION SHALL BE JUDGED BY A SEVEN-MEMBER PANEL OF INDUS-
TRY OFFICIALS, ENTREPRENEURS, ACADEMICS, AND ECONOMIC DEVELOPMENT  OFFI-

A. 9081                             3

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
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

A. 9081                             4

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.