S T A T E   O F   N E W   Y O R K
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                                 2126--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 15, 2015
                               ___________

Introduced  by  M.  of  A.  BUCHWALD, JAFFEE, BRONSON, MOSLEY, PICHARDO,
  RAIA, LAVINE, SCHIMEL, STIRPE, WRIGHT -- Multi-Sponsored by --  M.  of
  A.  CLARK,  COOK,  HAWLEY,  HIKIND, PALMESANO, PERRY, ROBINSON -- read
  once and referred to the Committee  on  Small  Business  --  committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN  ACT  to  amend the urban development corporation act, in relation to
  establishing the New York state innovation voucher program

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

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York state innovation voucher program act".
  S 2. 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-x to read as follows:
  S  16-X. NEW YORK STATE INNOVATION VOUCHER PROGRAM. (1) PROGRAM ESTAB-
LISHED. THERE IS HEREBY ESTABLISHED A NEW YORK STATE INNOVATION  VOUCHER
PROGRAM  UNDER  THE PURVIEW OF THE EMPIRE STATE DEVELOPMENT CORPORATION.
SUCH PROGRAM SHALL PROVIDE SMALL BUSINESSES WITH ACCESS TO RESEARCH  AND
DEVELOPMENT  BY  COLLEGES  AND UNIVERSITIES, GOVERNMENT LABORATORIES AND
PUBLIC RESEARCH INSTITUTES IN ORDER TO ASSIST  SUCH  BUSINESSES  IN  THE
CREATION  OF  INNOVATIVE PRODUCTS OR SERVICES THAT PROVIDE JOB RETENTION
AND EXPANSION.
  (2) DEFINITIONS. FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING TERMS
SHALL HAVE THE FOLLOWING MEANINGS:
  (A) "ELIGIBLE RECIPIENT" SHALL MEAN SMALL  BUSINESSES  AS  DEFINED  IN
SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW.
  (B)  "ELIGIBLE  PROJECTS"  FOR  VOUCHERS  AUTHORIZED  PURSUANT TO THIS
SECTION SHALL MEAN RESEARCH AND DEVELOPMENT PROJECTS  LEADING  TO  INNO-
VATION OF PRODUCTS OR SERVICES. ELIGIBLE COSTS SHALL INCLUDE, BUT NOT BE
LIMITED TO, THE DEVELOPMENT OF PROTOTYPES, FIELD TESTING, ENGINEERING OR

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD02874-04-5
              

A. 2126--A                          2

OTHER  PROJECTS AUTHORIZED BY THE CORPORATION THAT ENHANCE INNOVATION OF
PRODUCTS OR SERVICES THAT RESULT IN JOB GROWTH  AND  BUSINESS  EXPANSION
WITHIN THE STATE.
  (C) "INELIGIBLE EXPENSE" SHALL MEAN REIMBURSEMENT OF TIME SPENT BY THE
EMPLOYEES  OR OWNERS OF THE SMALL BUSINESS; GRANT OR VOUCHER APPLICATION
COSTS; ROUTINE AND READILY-PREDICTABLE  BUSINESS  EXPENSES;  DESIGN  AND
PRODUCTION  OF  MARKETING  OR  ADVERTISING MATERIALS; BASIC PROFESSIONAL
SERVICES SUCH AS ONGOING ROUTINE  ACCOUNTING,  TAX  OR  LEGAL  SERVICES;
BUILDING  OR  EQUIPMENT  CONSTRUCTION  COSTS; FINANCING FEES; TRAVEL AND
ENTERTAINMENT COSTS; HOSPITALITY COSTS; AND ANY  OTHER  EXPENSES  DEEMED
INELIGIBLE BY THE CORPORATION.
  (D)  "RESEARCH AND DEVELOPMENT PARTNER" SHALL MEAN COLLEGES, UNIVERSI-
TIES, STATE AND NATIONAL GOVERNMENT LABORATORIES,  AND  PUBLIC  RESEARCH
INSTITUTES IN NEW YORK STATE.
  (E)  "EXCEPTIONALLY  INNOVATIVE  PROJECTS"  SHALL  MEAN  PROJECTS THAT
DEMONSTRATE A POTENTIAL FOR SUBSTANTIAL ECONOMIC GROWTH AND JOB DEVELOP-
MENT IN AN EMERGING TECHNOLOGY FIELD AS DEFINED  IN  SECTION  THIRTY-ONE
HUNDRED TWO-E OF THE PUBLIC AUTHORITIES LAW.
  (3) SELECTION OF ELIGIBLE RECIPIENTS. (A) ELIGIBLE RECIPIENTS SHALL BE
SELECTED  BY  THE  CORPORATION BASED ON THE STRENGTH OF THEIR PROPOSALS,
INCLUDING EVALUATION OF THE INNOVATIVE NATURE OF THE PROJECT, ITS  TECH-
NICAL  FEASIBILITY, COMMERCIAL VIABILITY AND THE POTENTIAL IMPACT ON THE
RETENTION AND CREATION OF NEW JOBS.
  (B) SMALL BUSINESSES MAY IDENTIFY DESIRED OR  POTENTIAL  RESEARCH  AND
DEVELOPMENT  PARTNERS  AS  PART  OF THEIR APPLICATIONS. ADVANCE DETERMI-
NATIONS OF THE BUSINESS' RESEARCH AND DEVELOPMENT PARTNER SHALL NOT BE A
REQUIREMENT FOR RECEIPT OF AN INNOVATION VOUCHER.
  (C) APPLICATIONS SHALL BE JUDGED BY AN ADVISORY COMMITTEE, OR REGIONAL
ADVISORY COMMITTEE,  APPOINTED  BY  THE  PRESIDENT  OF  THE  CORPORATION
CONSISTING  OF  MEMBERS OF THE HIGHER EDUCATION, SCIENCE AND TECHNOLOGY,
AND BUSINESS COMMUNITIES.
  (4) RESEARCH AND DEVELOPMENT PARTNERS. THE CORPORATION SHALL  IDENTIFY
A  LIST OF POTENTIAL RESEARCH AND DEVELOPMENT PARTNERS IN NEW YORK STATE
THAT HAVE APPROPRIATE FACILITIES AND RESOURCES  TO  PARTICIPATE  IN  THE
INNOVATION  VOUCHER  PROGRAM  AND  ARE  WILLING  TO ACCEPT VOUCHERS FROM
ELIGIBLE RECIPIENTS FOR PAYMENT OF THEIR SERVICES. THE LIST OF POTENTIAL
RESEARCH AND DEVELOPMENT PARTNERS  SHALL  BE  DISPLAYED  ON  THE  CORPO-
RATION'S WEBSITE, AND SHALL BE REVIEWED AND REVISED AT LEAST QUARTERLY.
  (5)  VOUCHERS AND MATCHING FUNDS. (A) THE CORPORATION, UPON THE RECOM-
MENDATION OF THE ADVISORY COMMITTEE, MAY AWARD VOUCHERS UP TO TEN  THOU-
SAND  DOLLARS  FOR EACH ELIGIBLE PROJECT. UPON THE RECOMMENDATION OF THE
ADVISORY COMMITTEE, THE CORPORATION MAY AWARD A VOUCHER IN AN AMOUNT  UP
TO  FIFTY THOUSAND DOLLARS WHERE A PROJECT IS DEEMED EXCEPTIONALLY INNO-
VATIVE. CRITERIA FOR DETERMINATION OF AWARDS SHALL BE ESTABLISHED BY THE
CORPORATION IN RULES AND REGULATIONS. ELIGIBLE  RECIPIENTS  SHALL  MATCH
THE  VALUE  OF  THE VOUCHER ON A DOLLAR-FOR-DOLLAR BASIS AND SHALL APPLY
SUCH AMOUNT TO THE VOUCHER-FUNDED PROJECT.
  (B) IF AN APPLICANT IS APPROVED BY THE CORPORATION FOR A VOUCHER BASED
ON THE MERITS OF AN ELIGIBLE PROJECT, SUCH ELIGIBLE RECIPIENT  SHALL  BE
AUTHORIZED  TO  ENTER  INTO  A  WORKING  AGREEMENT  WITH THE APPROPRIATE
RESEARCH AND DEVELOPMENT PARTNER. THE ELIGIBLE  RECIPIENT  SHALL  NOTIFY
THE CORPORATION OF THE RESEARCH AND DEVELOPMENT PARTNER COLLABORATION TO
BE  FORMED  TO  FURTHER RESEARCH AND DEVELOPMENT. PAYMENT OF THE VOUCHER
SHALL BE MADE BASED ON A PAYMENT STRUCTURE  ESTABLISHED  BY  THE  CORPO-
RATION  IN RULES AND REGULATIONS PROMULGATED PURSUANT TO SECTION FOUR OF
THIS ACT TO ADMINISTER A COLLABORATION.

A. 2126--A                          3

  (6) OUTREACH. TO ENSURE MAXIMUM AWARENESS OF  THE  INNOVATION  VOUCHER
PROGRAM,  THE  CORPORATION SHALL DEVELOP AND IMPLEMENT A PLAN TO DISSEM-
INATE INFORMATION AND MATERIALS TO SMALL BUSINESSES, INCLUDING  BUT  NOT
LIMITED TO MINORITY- AND WOMEN-OWNED ENTERPRISES AND VETERAN-OWNED BUSI-
NESSES.
  (7) REPORTS. THE CORPORATION SHALL POST QUARTERLY REPORTS STATING: THE
NUMBER  AND  MONETARY  VALUE  OF  VOUCHERS ISSUED; THE AMOUNT OF PROGRAM
FUNDING USED FOR THE VOUCHERS; THE RECIPIENT OF  THE  THE  VOUCHERS  AND
RESEARCH  AND  DEVELOPMENT PARTNER; AND ANY OTHER APPROPRIATE METRICS TO
MEASURE THE SUCCESS OF THE PROGRAM, INCLUDING BUT NOT  LIMITED  TO,  THE
NUMBER  OF JOBS CREATED OR RETAINED, THE NUMBER OF PATENTS PRODUCED AS A
RESULT OF THE COLLABORATION, A DESCRIPTION OF THE  ECONOMIC  DEVELOPMENT
IMPACT AND SUCH OTHER INFORMATION AS THE CORPORATION MAY DEEM NECESSARY.
SUCH  QUARTERLY  REPORTS  SHALL  ALSO INCLUDE A LIST OF CURRENT ADVISORY
COMMITTEE MEMBERS AND A LIST OF CURRENT RESEARCH AND  DEVELOPMENT  PART-
NERS APPROVED BY THE CORPORATION.
  (8) FUNDING. THE CORPORATION IS AUTHORIZED, WITHIN AVAILABLE APPROPRI-
ATIONS  IN  THE  EMPIRE  STATE  DEVELOPMENT FUND ESTABLISHED PURSUANT TO
SECTION SIXTEEN-M OF THIS ACT OR FROM ANY OTHER FUNDS  APPROPRIATED,  TO
MAKE INNOVATIVE VOUCHERS AVAILABLE TO ELIGIBLE RECIPIENTS.
  S  3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, is amended by adding a new paragraph (o) to read as follows:
  (O) VOUCHERS TO ELIGIBLE ENTITIES AS SET FORTH IN SECTION 16-X OF THIS
ACT  TO  SUPPORT THE NEW YORK STATE INNOVATION VOUCHER PROGRAM TO ASSIST
SMALL BUSINESS ACCESS  TO  RESEARCH  AND  DEVELOPMENT  BY  COLLEGES  AND
UNIVERSITIES,  GOVERNMENT LABORATORIES AND PUBLIC RESEARCH INSTITUTES TO
SUPPORT SUCH BUSINESSES  IN  THE  CREATION  OF  INNOVATIVE  PRODUCTS  OR
SERVICES.
  S  4.  Rules and regulations. The empire state development corporation
is authorized to promulgate rules and regulations in accordance with the
state administrative procedure act that  are  necessary  to  fulfil  the
purposes  of  this  act.  Such  rules and regulations shall be completed
within one hundred eighty days after the effective date of this act.
  S 5. This act shall take effect on the one hundred eightieth day after
it shall have become a law; provided, however, that  the  amendments  to
subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of
1968, constituting the New York state urban development corporation act,
made  by  section  three  of this act shall not affect the expiration of
such section and shall be deemed to expire therewith; provided, further,
that any rules and regulations necessary for the  timely  implementation
of  this  act on its effective date may be promulgated on or before such
effective date.