S T A T E   O F   N E W   Y O R K
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                                 4408--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 30, 2015
                               ___________

Introduced  by M. of A. SCHIMMINGER, MORELLE, LUPARDO -- Multi-Sponsored
  by -- M. of A.  COLTON, MAGNARELLI -- read once and  referred  to  the
  Committee  on  Small Business -- recommitted to the Committee on Small
  Business in accordance with Assembly  Rule  3,  sec.  2  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the New York state urban development corporation act, in
  relation  to  recodification of the small business innovation research
  program and the awards made thereunder within  the  urban  development
  corporation;  and  to  repeal section 3102-c of the public authorities
  law relating to the small business innovation research program

  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 52 to read as follows:
  S  52.  SMALL BUSINESS INNOVATION RESEARCH PROGRAM. 1. AS USED IN THIS
SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:
  (A) "SMALL BUSINESS INNOVATION RESEARCH PROGRAM" OR "SBIR" MEANS  THAT
PROGRAM,  ENACTED  PURSUANT TO THE SMALL BUSINESS INNOVATION DEVELOPMENT
ACT OF 1982 (P.L. 97-219), WHICH PROVIDES FUNDS TO SMALL  BUSINESSES  TO
CONDUCT INNOVATIVE RESEARCH HAVING COMMERCIAL APPLICATION.
  (B) "SMALL BUSINESS" MEANS A CORPORATION, PARTNERSHIP, LIMITED LIABIL-
ITY  COMPANY,  SOLE  PROPRIETORSHIP, OR INDIVIDUAL, OPERATING A BUSINESS
FOR PROFIT, WITH TWO HUNDRED FIFTY EMPLOYEES OR FEWER, INCLUDING EMPLOY-
EES EMPLOYED IN ANY SUBSIDIARY OR AFFILIATED CORPORATION OR OTHER  ENTI-
TY, WHICH OTHERWISE MEETS THE REQUIREMENTS OF THE FEDERAL SMALL BUSINESS
INNOVATION RESEARCH PROGRAM.
  2.  (A)  WITHIN  THIRTY  DAYS  OF THE PUBLIC ANNOUNCEMENT OF THE SMALL
BUSINESS INNOVATION RESEARCH PROGRAM PHASE I AWARD WINNERS BY THE APPRO-
PRIATE FEDERAL AGENCY, THE CORPORATION SHALL CONTACT ALL PHASE  I  AWARD

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00667-04-6
              

A. 4408--A                          2

RECIPIENTS  WHOSE  PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THIS STATE,
PROVIDE THEM WITH INFORMATION CONCERNING THE PROGRAM AUTHORIZED PURSUANT
TO THIS SECTION, AND ADVISE THEM OF THE REQUIREMENTS  RELATING  THERETO.
ANY  SUCH RECIPIENT, AT LEAST THIRTY DAYS PRIOR TO THE COMPLETION OF ITS
SBIR PHASE I GRANT PERIOD, MAY, AT ITS DISCRETION, SUBMIT TO THE  CORPO-
RATION A NOTICE OF ITS DESIRE TO SECURE RESEARCH FUNDING PURSUANT TO THE
PROVISIONS  OF  THIS  SECTION, ALONG WITH A COPY OF ITS ORIGINAL FEDERAL
SBIR PROPOSAL AND SUCH ADDITIONAL INFORMATION  AS  THE  CORPORATION  MAY
REQUIRE  TO  ASSIST  IT IN DETERMINING THE ELIGIBILITY OF SUCH RECIPIENT
FOR THIS PROGRAM.
  (B) IN ADDITION TO RECEIPT OF AN SBIR AWARD, ANY SMALL BUSINESS  SHALL
MEET THE FOLLOWING CRITERIA:
  I.  SUCH SMALL BUSINESS'S PRINCIPAL PLACE OF BUSINESS SHALL BE LOCATED
IN THIS STATE;
  II. SUCH  SMALL  BUSINESS  SHALL  CERTIFY  THAT  THE  RESEARCH  TO  BE
CONDUCTED WILL BE PERFORMED SOLELY IN THIS STATE;
  III. NO MONEYS SHALL BE EXPENDED FOR TRAVEL, EQUIPMENT, OR FACILITIES;
AND
  IV.  NOT  MORE  THAN  ONE-THIRD OF ANY MONEYS AWARDED TO A FIRM BY THE
FOUNDATION MAY BE  USED  TO  CONTRACT  FOR  RESEARCH  OR  OTHER  RELATED
SERVICES.
  (C) UPON A FINDING BY THE CORPORATION THAT: (I) A PHASE I AWARD RECIP-
IENT WHOSE PRINCIPAL PLACE OF BUSINESS IS IN NEW YORK HAS SATISFACTORILY
MET ALL THE REQUIREMENTS OF THIS SECTION AND ANY ADDITIONAL REQUIREMENTS
THE  CORPORATION  MAY  DEEM  NECESSARY; PROVIDED, HOWEVER, THAT ANY SUCH
ADDITIONAL REQUIREMENTS SHALL NOT ARBITRARILY EXCLUDE A PARTICULAR GROUP
OR GROUPS OF TECHNOLOGIES OR COMPANIES; AND (II) THE RESEARCH  CONDUCTED
MAY RESULT IN THE DEVELOPMENT OF INNOVATIVE TECHNOLOGY HAVING THE POTEN-
TIAL  TO LEAD TO COMMERCIALIZATION OR FABRICATION WITHIN NEW YORK OF NEW
OR IMPROVED PRODUCTS, PROCESSES,  OR  SERVICES,  THE  CORPORATION  SHALL
NOTIFY  SUCH  SMALL  BUSINESS  THAT  IT  WILL  AWARD THE FIRM A RESEARCH
CONTRACT. SUCH CONTRACT SHALL BE COMPATIBLE WITH AND A  CONTINUATION  OF
THE  RESEARCH  TO  BE  PERFORMED  UNDER THE SBIR CONTRACT AWARDED BY THE
FEDERAL AGENCY INVOLVED AND SHALL BE  CALCULATED  AS  FOLLOWS:  (I)  THE
AMOUNT OF EACH CONTRACT SHALL EQUAL THE AMOUNT OF THE FEDERAL SBIR AWARD
OR  FIFTY  THOUSAND  DOLLARS, WHICHEVER IS LESS; PROVIDED, HOWEVER, THAT
THE TOTAL AMOUNT OF ALL SUCH  CONTRACTS  SHALL  NOT  EXCEED  THE  AMOUNT
APPROPRIATED  FOR  THIS  PURPOSE,  OR  (II) IN THE EVENT THAT THE TOTAL,
POSSIBLE, MAXIMUM AMOUNT OF ALL CONTRACTS, SUCH TOTAL, POSSIBLE, MAXIMUM
AMOUNT CALCULATED ON THE BASIS OF MATCHING EACH FEDERAL SBIR AWARD IN AN
AMOUNT EQUAL TO THE AMOUNT OF SUCH AWARD,  OR  FIFTY  THOUSAND  DOLLARS,
WHICHEVER  IS  LESS,  EXCEEDS  THE  TOTAL  AMOUNT  APPROPRIATED FOR THIS
PURPOSE, THE AMOUNT OF EACH CONTRACT SHALL BE REDUCED BY A  RATIO  EQUAL
TO THE AMOUNT APPROPRIATED FOR THIS PURPOSE DIVIDED BY THE TOTAL, POSSI-
BLE, MAXIMUM AMOUNT OF ALL CONTRACTS TO BE AWARDED.
  (D)  THE  CORPORATION  SHALL  ESTABLISH  RULES AND REGULATIONS FOR THE
SMALL BUSINESS INNOVATION RESEARCH PROGRAM,  INCLUDING  AWARD  SELECTION
CRITERIA,  WHICH  SHALL  SERVE AS THE BASIS FOR AWARDS FUNDED UNDER THIS
PROGRAM.
  3. THE CORPORATION SHALL NOT DISBURSE ANY MONEYS TO A  SMALL  BUSINESS
UNTIL:
  (A) SUCH SMALL BUSINESS HAS COMPLETED ITS SBIR PHASE I RESEARCH;
  (B) ITS FINAL PHASE I REPORT WITH RESPECT THERETO HAS BEEN ACCEPTED BY
THE FEDERAL AGENCY INVOLVED;
  (C)  ITS PHASE II RESEARCH PROPOSAL HAS BEEN PROPERLY SUBMITTED TO THE
FEDERAL AGENCY INVOLVED; AND

A. 4408--A                          3

  (D) IT HAS SUBMITTED COPIES OF ITS FINAL PHASE I REPORT AND ITS  PHASE
II PROPOSAL TO THE CORPORATION.
  4.  CONSISTENT WITH FEDERAL SBIR PROCEDURES, THE CORPORATION SHALL NOT
DISCLOSE PROPRIETARY INFORMATION WHEN REQUESTED NOT TO DO SO BY  PARTIC-
IPANTS IN THIS PROGRAM.
  5. THE CORPORATION SHALL ANNUALLY SUBMIT A REPORT TO THE GOVERNOR, THE
TEMPORARY  PRESIDENT  OF  THE  SENATE,  AND  THE SPEAKER OF THE ASSEMBLY
DETAILING THE RESULTS OF THE PROGRAM, INCLUDING BUT NOT LIMITED  TO  THE
NUMBER OF NEW YORK SMALL BUSINESSES APPLYING FOR SBIR AWARDS, THE NUMBER
RECEIVING  PHASE  I  AWARDS,  THE  NUMBER RECEIVING PHASE II AWARDS, ANY
PRODUCTS OR PROCESSES  DEVELOPED  AS  A  RESULT  OF  THE  SBIR  RESEARCH
INVOLVED,  ANY PATENTS APPLIED FOR OR LICENSES GRANTED BASED ON THE SBIR
RESEARCH INVOLVED, AN ABSTRACT OF THE SBIR PHASE I AND II WORK PERFORMED
BY NEW YORK FIRMS, AND ANY OTHER INFORMATION PERTINENT IN EVALUATING THE
PROGRAM.
  6. THE CORPORATION SHALL CONDUCT A PROGRAM TO INFORM SMALL  BUSINESSES
OF  THE FEDERAL SBIR PROGRAM AND THIS NEW YORK STATE PROGRAM IN ORDER TO
ENSURE THAT ALL FIRMS HAVE  THE  OPPORTUNITY  TO  PARTICIPATE  IN  THESE
PROGRAMS.
  7.  THE  CORPORATION SHALL FACILITATE AND PROMOTE THE ESTABLISHMENT OF
JOINT SMALL BUSINESS-UNIVERSITY TECHNOLOGY COUNCILS AT THE  CENTERS  FOR
ADVANCED  TECHNOLOGY  AND  OTHER  UNIVERSITIES  WITHIN THE STATE WHEREBY
SMALL FIRMS AND UNIVERSITY EXPERTS CAN FACILITATE THE TRANSFER OF  TECH-
NOLOGY  AND  WORK  TOGETHER  ON  RESEARCH  PROJECTS  RELATED TO THE SBIR
PROGRAM OR OTHER RESEARCH PROJECTS OF MUTUAL INTEREST.
  8. THE PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE IF, AND  AS  LONG
AS,  FEDERAL  FINANCIAL  PARTICIPATION IS AVAILABLE THEREFOR PURSUANT TO
THE SMALL BUSINESS INNOVATION DEVELOPMENT ACT OF 1982.
  S 2. Section 3102-c of the public authorities law is REPEALED.
  S 3. This act shall take effect immediately.