NY State Senate Bill 2017-S7546

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 23, 2018	referred to corporations, authorities and commissions

2017-S7546 (ACTIVE) - Details

See Assembly Version of this Bill:: A9671
Current Committee:: Senate Corporations, Authorities And Commissions
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §16-bb, amd §16-m, UDC Act
Versions Introduced in Other Legislative Sessions:: 2013-2014: A10195
2015-2016: S3894, A2126
2019-2020: S4361, A45
2021-2022: S205, A6317
2023-2024: S1862, A3549

2017-S7546 (ACTIVE) - Summary

Establishes the New York state innovation voucher program; provides 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.

2017-S7546 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7546

SPONSOR: FUNKE
 
TITLE OF BILL:  An act to amend the urban development corporation act,
in relation to establishing the New York state innovation voucher
program

 
PURPOSE OR GENERAL IDEA OF BILL:

This legislation creates the New York State "Innovation Vouchers"
program. Under the program, Innovation Vouchers would go directly to
small businesses, to provide dollar-for-dollar matching funds to acquire
expertise from colleges and universities, government laboratories and
public research institutes. A public-private partnership would be
formed, connecting small businesses with research and development facil-
ities to create jobs and innovation in New York.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 defines the title as the "New York State Innovation Voucher
Program Act."

Section 2, Paragraph 1 establishes the New York State Innovation Voucher
Program within the Empire State Development Corporation.

Section 2, Paragraph 2 defines the terms in the act.

Section 2, Paragraph 3 describes the selection of eligible recipients.

Section 2, Paragraph 4 requires the Empire State Development Corporation
to identify a list of potential research and development partners in New
York State, and post such list on their website, which would be required
to be updated quarterly.

Section 2, Paragraph 5 establishes Innovation Vouchers for up to $10,000
and requires the Empire State Development Corporation to institute
criteria for voucher eligibility determination. In rare occasions, Inno-
vation Vouchers of $50,000 may be awarded to an exceptional applicant.
Recipients must match each voucher dollar-for-dollar, and may choose a
research and development partner that they find compatible. The Empire
State Development Corporation is authorized to establish a payment
structure to the recipient through rules and regulations.

Section 2, Paragraph 6 requires the Empire State Development Corporation
to provide outreach to small businesses, including but not limited to
minority- and women-owned enterprises and veteran-owned businesses.

Section 2, Paragraph 7 requires periodic evaluation of the Innovative
Voucher program to measure its economic impact. Section 2, Paragraph 8
authorizes the Empire State Development Corporation use funds available
under the Economic Development Fund (Section 16-m of the Urban Develop-
ment Corporation Act) or from any other funds appropriated.

Section 3 amends Section 16-m of the Urban Development Corporation Act
to authorize the Innovative Vouchers program as an eligible program
under the Economic Development Fund.

Section 4 authorizes the Empire State Development Corporation to promul-
gate rules and regulations.
Section 5 sets the effective date.

 
JUSTIFICATION:

Small businesses often do not have the resources needed to harness
expertise in research and development. Meanwhile, scientific, technolog-
ical and other research facilities have the capacity to provide insights
and assistance to new projects. Funding the linkage between these two
groups would lead to new opportunities for economic growth in New York
State.

Under this Program, Innovation Vouchers would be issued directly to
small businesses that apply. Small businesses would be selected based on
the strength of their proposals and would then provide matching funds of
their own to take advantage and demonstrate a commitment to the collab-
oration. The sum of the public and private monies would be directed
toward universities, national laboratories and public research insti-
tutes for assisting the businesses with technical challenges for inno-
vation.

According to "The 2014 State New Economy Index" published by The Infor-
mation Technology and Innovation Foundation (ITIF), this is an idea that
has a recorded history of success in other countries, including Austria,
Belgium, Canada, Denmark, Germany, the Netherlands, Ireland, and Sweden.
Based on information from Senter Novem, an innovation agency in Holland,
"eight out of ten vouchers issued resulted in an innovation that other-
wise would not have come to fruition, and 80 percent of new R&D jobs
created in Holland since 2005 are attributable to the vouchers."

In addition, Connecticut's "Entrepreneur Innovation Award" program
administered by the state's CTNext agency has proven that this is a
concept that can be successful in the United States. The prospect of
creating jobs for small businesses, while harnessing the innovation of
our research institutions, argues strongly for bringing Innovation
Vouchers to New York.

The number of jobs created and the economic momentum fostered would be
the metric used to measure the success of the Program. Another signif-
icant performance metric that will be analyzed is the number patents
produced as a result of the collaborations.

 
FISCAL IMPLICATIONS:

Undetermined.

 
LEGISLATIVE HISTORY:

S817a/A1260a of 2017; vetoed
S.3894A/A.2126A of 2015-2016; Referred to Finance
A.10195 of 2014; referred to small business

 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law; provided, however, that any rules or regu-
lations necessary for the timely implementation of this act on its
effective date may be promulgated on or before such effective date.

2017-S7546 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7546
 
                             I N  S E N A T E
 
                             January 23, 2018
                                ___________
 
 Introduced  by  Sen.  FUNKE  -- 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, 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".
   § 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-bb to read as follows:
   § 16-BB. 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
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD01581-05-8

 S. 7546                             2
 
 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 BY THE CORPORATION,
 THROUGH THE PROMULGATION OF RULES AND REGULATIONS, AS EMERGING TECHNOLO-
 GY FIELDS FROM THOSE FIELDS LISTED IN  SUBPARAGRAPHS  ONE,  TWO,  THREE,
 FOUR  AND FIVE OF PARAGRAPH (B) OF SUBDIVISION ONE OF 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.
   (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

 S. 7546                             3
 
 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.
   §  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 SIXTEEN-BB
 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.
   §  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  fulfill  the
 purposes  of  this  act.  Such  rules and regulations shall be completed
 within one hundred eighty days after the effective date of this act.
   § 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.

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Senate Bill S7546

Sponsored By

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2017-S7546 (ACTIVE) - Details

2017-S7546 (ACTIVE) - Summary

2017-S7546 (ACTIVE) - Sponsor Memo

2017-S7546 (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S7546

Share this bill

Sponsored By

Rich Funke

Archive: Last Bill Status - In Senate Committee Corporations, Authorities And Commissions Committee

2017-S7546 (ACTIVE) - Details

2017-S7546 (ACTIVE) - Summary

2017-S7546 (ACTIVE) - Sponsor Memo

2017-S7546 (ACTIVE) - Bill Text download pdf

Comments