S T A T E   O F   N E W   Y O R K
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                                   480

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                               (PREFILED)

                             January 7, 2015
                               ___________

Introduced  by  M. of A. RYAN -- read once and referred to the Committee
  on Economic Development

AN ACT to amend the public authorities law, in relation to  establishing
  the  biosciences commercialization assistance fund within the division
  of science, technology and innovation

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

  Section  1.  Section 3150 of the public authorities law, as amended by
section 4 of part C of chapter 63 of the laws of  2005,  is  amended  to
read as follows:
  S 3150. Definitions. As used in this [section] TITLE:
  1.  "[Foundation] DIVISION" shall mean the New York state [foundation]
DIVISION for science, technology and innovation created by [this  title]
SECTION THREE HUNDRED SIXTY OF THE ECONOMIC DEVELOPMENT LAW;
  2.  "Executive  director"  shall  mean  the  executive director of the
[foundation] DIVISION;
  3. "Board" shall mean the New York  state  [foundation]  DIVISION  for
science, technology and innovation board;
  4.  "Regional  partnerships" shall mean any association or group which
is:  (a) comprised of local economic  development  organizations  and  a
center  of  excellence  as defined by section three of part T of chapter
eighty-four of the laws of two thousand two, or in the absence  of  such
center  in  the  region,  at  least  one institution of higher education
involved in commercialization efforts similar to such centers of  excel-
lence  and  may  include  a  combination of private businesses, business
support organizations, commercial lending institutions, venture  capital
companies,  angel  investor  networks or foundations; (b) formed for the
creation and administration of regional partnership  programs;  and  (c)
certified by the [foundation] DIVISION as the regional partnership;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00280-01-5
              

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  5. "Regional partnership coordinator" shall mean a nonprofit organiza-
tion  chosen by a regional partnership and certified by the [foundation]
DIVISION to administer the regional partnership programs;
  6. "Partnership" shall mean regional partnerships; [and]
  7. "Coordinator" shall mean regional partnership coordinator[.];
  8.  "RESEARCH ENTITY" SHALL MEAN A NOT-FOR-PROFIT COLLEGE, UNIVERSITY,
MEDICAL CENTER, LABORATORY OR OTHER INSTITUTION THAT CONDUCTS AN  INTEN-
SIVE,  ONGOING  PROGRAM  OF STUDY DIRECTED TOWARD GREATER KNOWLEDGE OF A
SCIENTIFIC FOCUS AREA OR TOWARD APPLYING  NEW  SCIENTIFIC  KNOWLEDGE  TO
MEET A RECOGNIZED NEED;
  9.  "FOCUS  AREA"  SHALL  MEAN BIOSCIENCES RESEARCH INCLUDING, BUT NOT
LIMITED TO, THE BASIC, APPLIED, OR TRANSLATIONAL RESEARCH THAT LEADS  TO
THE  DEVELOPMENT  OF  THERAPEUTICS,  DIAGNOSTICS, OR DEVICES, TO IMPROVE
HUMAN HEALTH OR AGRICULTURE AND  THAT  REQUIRE  FEDERAL  FOOD  AND  DRUG
ADMINISTRATION APPROVAL.
  S  2.  The  public  authorities law is amended by adding a new section
3154-a to read as follows:
  S 3154-A. BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND. 1. THE  BIOS-
CIENCES  COMMERCIALIZATION  ASSISTANCE  FUND  IS  HEREBY CREATED FOR THE
PURPOSE OF:
  (A) ADVANCING THE EARLY-STAGE DEVELOPMENT  OF  COMMERCIALLY  PROMISING
INVENTIONS  IN  THE FOCUS AREA OWNED BY RESEARCH ENTITIES LOCATED IN NEW
YORK STATE;
  (B) ENCOURAGING ENTREPRENEURS TO FORM NEW  COMPANIES  LOCATED  IN  NEW
YORK STATE TO MANUFACTURE AND MARKET SUCH INVENTIONS;
  (C) ENABLING SMALL BUSINESSES RESIDENT IN THE STATE TO CONDUCT APPLIED
RESEARCH  AND  DEVELOPMENT  NECESSARY  TO  COMMERCIALIZE RESEARCH ENTITY
INVENTIONS; AND
  (D) ENCOURAGING BUSINESSES  RESIDENT  IN  THE  STATE  TO  DEVELOP  NEW
PRODUCTS  OR  PROCESSES  BASED  ON  PROMISING INVENTIONS OR TECHNOLOGIES
OWNED BY SUCH BUSINESSES THROUGH GRANTS OR LOANS TO SUCH RESIDENT  BUSI-
NESSES.
  2.  MONIES  IN THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND SHALL
BE AVAILABLE TO ELIGIBLE RESEARCH ENTITIES, START-UPS, SMALL  COMPANIES,
AND  OTHER BUSINESSES IN NEW YORK STATE, WITH ANTICIPATED COMMERCIALIZA-
TION TIME FRAMES OF UP TO FIFTEEN YEARS, FOR DEVELOPMENT AND COMMERCIAL-
IZATION OF PRODUCTS. THE DIVISION SHALL USE THE MONIES AVAILABLE IN  THE
BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND FOR:
  (A)  GRANTS  TO RESEARCH ENTITIES LOCATED IN NEW YORK STATE TO DEVELOP
COMMERCIALLY PROMISING RESEARCH DISCOVERIES IN THE FOCUS AREA BEYOND THE
CONCEPTUAL STAGE IN ORDER TO FURTHER THE CHANCE OF COMMERCIALIZATION AND
INCREASE MARKET VALUE. THE DIVISION  MAY  APPROVE  GRANTS  FOR  ELIGIBLE
PROJECTS,  PROVIDED  SUCH  GRANTS  DO  NOT  EXCEED  ONE HUNDRED THOUSAND
DOLLARS AND ARE USED EXCLUSIVELY TO ACCELERATE THE COMMERCIALIZATION  OF
DISCOVERIES THAT HAVE THE POTENTIAL TO POSITIVELY IMPACT EXISTING COMPA-
NIES  LOCATED  IN  NEW  YORK  OR  LEAD TO THE FORMATION OF NEW COMPANIES
LOCATED IN NEW YORK. GRANTS MAY NOT BE USED TO COMMERCIALIZE DISCOVERIES
THAT WILL BE LICENSED TO FIRMS THAT  DO  NOT  HAVE  THEIR  RESEARCH  AND
DEVELOPMENT  AND MANUFACTURING FACILITIES AND AT LEAST EIGHTY PERCENT OF
THEIR EMPLOYEES LOCATED IN NEW YORK STATE. THE  DIVISION  SHALL  APPROVE
GRANTS  ONLY TO THOSE RESEARCH ENTITIES THAT CAN DEMONSTRATE THE ABILITY
TO GUIDE THE DEVELOPMENT OF THE DISCOVERIES  TOWARD  SUCCESSFUL  COMMER-
CIALIZATION  IN  THE  STATE.  ANY REVENUES EARNED BY THE RESEARCH ENTITY
FROM THE LICENSING OF AN INVENTION DEVELOPED WITH A DIVISION GRANT  MUST
BE REINVESTED IN THE RESEARCH ENTITY'S EDUCATIONAL AND RESEARCH PROGRAMS
OR TECHNOLOGY TRANSFER ACTIVITIES;

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  (B)  INVESTMENTS  IN  START-UP  COMPANIES  FORMED  BY ENTREPRENEURS TO
COMMERCIALIZE INTELLECTUAL PROPERTY IN  THE  FOCUS  AREA  LICENSED  FROM
RESEARCH  ENTITIES  LOCATED  IN NEW YORK STATE. THE DIVISION MAY APPROVE
INVESTMENTS IN NEW COMPANIES BEING FORMED TO FURTHER  DEVELOP,  PRODUCE,
AND  SELL  INVENTIONS  LICENSED  FROM  RESEARCH INSTITUTIONS IN NEW YORK
STATE, PROVIDED THAT THE COMPANY'S RESEARCH AND DEVELOPMENT AND/OR MANU-
FACTURING FACILITIES WILL BE LOCATED IN  NEW  YORK  STATE;  THE  COMPANY
COMMITS  TO  REMAINING  IN THE STATE; THE INVESTMENT DOES NOT EXCEED ONE
HUNDRED FIFTY THOUSAND DOLLARS PER COMPANY; AND, THE INVESTMENT IS  USED
SOLELY  FOR  OPERATING  EXPENSES APPROVED BY THE DIVISION. IN RETURN FOR
INVESTMENT BY THE DIVISION, THE DIVISION SHALL TAKE AN  EQUITY  POSITION
IN  THE  COMPANY  OR NEGOTIATE ROYALTY PAYMENTS BASED ON THE SALE OF ANY
PRODUCTS RESULTING FROM THE LICENSED INVENTION.  IN  THE  EVENT  THAT  A
COMPANY  MOVES  ITS RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES
OR MORE THAN TWENTY PERCENT OF ITS EMPLOYEES OUT OF THE STATE, THE DIVI-
SION SHALL REQUIRE THE COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST FIVE
TIMES THE DIVISION'S TOTAL INVESTMENT;
  (C) MATCHING GRANTS TO SMALL BUSINESSES IN NEW YORK STATE FOR  COOPER-
ATIVE  APPLIED  RESEARCH AND DEVELOPMENT PROJECTS IN THE FOCUS AREA WITH
RESEARCH INSTITUTIONS TO TRANSLATE PROMISING DISCOVERIES OF THE RESEARCH
INSTITUTION INTO COMMERCIALLY VIABLE PRODUCTS. THE DIVISION MAY  APPROVE
MATCHING GRANTS FOR PROJECTS UNDERTAKEN JOINTLY BY A RESEARCH ENTITY AND
A  BUSINESS INCORPORATED IN NEW YORK STATE FOR UP TO HALF OF THE COST OF
PROJECTS THAT WILL APPLY DISCOVERIES OR USE THE  INTELLECTUAL  RESOURCES
OF  THE  RESEARCH ENTITY TO DEVELOP NEW, OR TO IMPROVE EXISTING, COMMER-
CIAL MATERIALS, DEVICES, SYSTEMS,  PROCESSES,  OR  PROTOTYPES,  PROVIDED
THAT  THE  GRANTS  DO NOT EXCEED ONE HUNDRED FIFTY THOUSAND DOLLARS; THE
COMPANY HAS LESS THAN ONE HUNDRED FULL-TIME EMPLOYEES, AT  LEAST  EIGHTY
PERCENT  OF  WHOM  WORK IN THE STATE; AND, THE COMPANY HAS ITS PRINCIPAL
RESEARCH AND DEVELOPMENT AND MANUFACTURING  FACILITIES  LOCATED  IN  THE
STATE. IN THE EVENT THAT A COMPANY MOVES ITS RESEARCH AND DEVELOPMENT OR
MANUFACTURING  FACILITIES  OR  MORE THAN TWENTY PERCENT OF ITS EMPLOYEES
OUT OF THE STATE, THE DIVISION SHALL REQUIRE THE  COMPANY  TO  REPAY  AN
AMOUNT EQUAL TO AT LEAST FIVE TIMES THE DIVISION'S TOTAL INVESTMENT;
  (D) MATCHING GRANTS AND/OR LOANS TO SMALL BUSINESSES IN NEW YORK STATE
FOR  COMMERCIAL  DEVELOPMENT OF THEIR INNOVATIONS OR TECHNOLOGIES IN THE
FOCUS AREA INTO NEW PRODUCTS OR PROCESSES  TO  BE  MANUFACTURED  IN  NEW
YORK.    ANY  REPAYMENTS OF LOANS OR EARNINGS ON INVESTMENTS MADE BY THE
DIVISION FROM THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND SHALL BE
DEPOSITED IN SUCH FUND. THE DIVISION MAY APPROVE GRANTS AND/OR LOANS  TO
BUSINESSES  INCORPORATED  IN  NEW  YORK STATE FOR UP TO ONE-THIRD OF THE
COSTS, INCLUDING WORKFORCE TRAINING, ASSOCIATED WITH THE DEVELOPMENT  OF
NEW  PRODUCTS OR PROCESSES FROM INVENTIONS OR TECHNOLOGIES OWNED BY SUCH
BUSINESSES, PROVIDED THAT THE GRANT DOES NOT EXCEED  TWO  HUNDRED  FIFTY
THOUSAND  DOLLARS;  THE  COMPANY  HAS  LESS  THAN  ONE HUNDRED FULL-TIME
EMPLOYEES, AT LEAST EIGHTY PERCENT OF WHOM WORK IN THE STATE;  AND,  THE
COMPANY  HAS  ITS  PRINCIPAL  RESEARCH AND DEVELOPMENT AND MANUFACTURING
FACILITIES LOCATED IN THE STATE. IN THE  EVENT  THE  COMPANY  MOVES  ITS
RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES OR MORE THAN TWENTY
PERCENT  OF  ITS  EMPLOYEES OUT OF THE STATE, THE DIVISION SHALL REQUIRE
THE COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST FIVE  TIMES  THE  DIVI-
SION'S TOTAL INVESTMENT; AND
  (E)  GRANTS  TO  BUSINESSES IN NEW YORK STATE TO OFFSET SOME OR ALL OF
THE COSTS OF FILING FOR FEDERAL REGULATORY APPROVAL FOR NEW OR  MODIFIED
PRODUCTS  OR  PROCESSES  WITHIN THE FOCUS AREA. THE DIVISION MAY APPROVE
GRANTS TO BUSINESSES INCORPORATED IN NEW YORK STATE  PROVIDED  THAT  THE

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COMPANY  HAS  ITS  PRINCIPAL  RESEARCH AND DEVELOPMENT AND MANUFACTURING
FACILITIES LOCATED IN THE STATE. IN THE  EVENT  THE  COMPANY  MOVES  THE
MANUFACTURE OF THE PRODUCT OUT OF NEW YORK STATE WITHIN A PERIOD OF FIVE
YEARS,  THE  DIVISION SHALL REQUIRE THE COMPANY TO REPAY AN AMOUNT EQUAL
TO AT LEAST FIVE TIMES THE DIVISION'S  TOTAL  INVESTMENT.  THE  DIVISION
SHALL  GIVE  PRIORITY  TO COMPANIES WITH LESS THAN ONE HUNDRED FULL-TIME
EMPLOYEES.
  3. PURSUANT TO SECTION THREE HUNDRED SIXTY OF THE ECONOMIC DEVELOPMENT
LAW, THE DIVISION SHALL PROMULGATE REGULATIONS ESTABLISHING THE APPLICA-
TION PROCESS AND THE CRITERIA THAT WILL BE USED TO EVALUATE APPLICATIONS
FOR  GRANTS  AND  INVESTMENTS  FROM  THE  BIOSCIENCES  COMMERCIALIZATION
ASSISTANCE  FUND.  SUCH REGULATIONS SHALL ALLOW A COMMERCIALIZATION TIME
FRAME OF UP TO FIFTEEN YEARS. SUCH APPLICATIONS SHALL INCLUDE,  BUT  NOT
BE LIMITED TO, A DESCRIPTION OF THE EXPECTED SIGNIFICANCE OF THE PROJECT
TO  NEW YORK STATE, INCLUDING THE ESTIMATED NUMBER OF JOBS THAT COULD BE
CREATED AS A RESULT OF THE PROJECT. IN SELECTING APPLICATIONS FOR  FUND-
ING  THE  DIVISION  SHALL  GIVE PRIORITY TO THOSE PROJECTS THAT HAVE THE
GREATEST POTENTIAL FOR COMMERCIAL SUCCESS AND EVENTUAL JOB  CREATION  IN
NEW  YORK  STATE  OR  THAT  WILL HAVE THE LARGEST POSITIVE IMPACT ON THE
HEALTH AND WELFARE OF THE STATE'S CITIZENS OR ON THE  NATURAL  OR  BUILT
ENVIRONMENT.
  S 3. Notwithstanding any other law to the contrary, any appropriations
to  the  New  York  state division of science, technology and innovation
board from the general fund, local assistance account for the  incentive
program part of the research development program established pursuant to
section  209-p  of  the  executive  law  that  have not been expended or
committed, as well as any other appropriations that  may  be  so  desig-
nated, may be made available for the purposes of the biosciences commer-
cialization assistance fund.
  S 4. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that effective immediate-
ly,  the  addition,  amendment  and/or  repeal of any rule or regulation
necessary for the implementation of this act on its  effective  date  is
authorized  and  directed  to  be  made  and completed on or before such
effective date.