NY State Senate Bill 2017-S7961

Senate Bill S7961

Signed By Governor

2017-2018 Legislative Session

Relates to the New York state business incubator and innovation hot spot support act

download bill text pdf

Archive: Last Bill Status Via A10105 - Signed by Governor

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Aug 24, 2018	signed chap.246
Aug 13, 2018	delivered to governor
Jun 19, 2018	returned to assembly passed senate 3rd reading cal.1253 substituted for s7961
Jun 19, 2018	substituted by a10105
May 22, 2018	advanced to third reading
May 16, 2018	2nd report cal.
May 15, 2018	1st report cal.1253
Mar 13, 2018	referred to corporations, authorities and commissions

Votes

- Jun 19, 2018 - Floor Vote
  A10105
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  1
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 19, 2018
      
      aye (62)
      
      Addabbo Jr.
      
      Akshar
      
      Alcantara
      
      Amedore
      
      Avella
      
      Bailey
      
      Benjamin
      
      Bonacic
      
      Boyle
      
      Breslin
      
      Brooks
      
      Carlucci
      
      Comrie
      
      DeFrancisco
      
      Dilan
      
      Felder
      
      Flanagan
      
      Funke
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Hamilton
      
      Hannon
      
      Helming
      
      Hoylman-Sigal
      
      Jacobs
      
      Kaminsky
      
      Kavanagh
      
      Kennedy
      
      Klein
      
      Krueger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Little
      
      Marcellino
      
      Marchione
      
      Mayer
      
      Montgomery
      
      Murphy
      
      O'Mara
      
      Ortt
      
      Parker
      
      Peralta
      
      Persaud
      
      Phillips
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serino
      
      Serrano
      
      Seward
      
      Stavisky
      
      Stewart-Cousins
      
      Tedisco
      
      Valesky
      
      Young
      
      excused (1)
      
      Croci
  May 15, 2018 - Corporations, Authorities And Commissions Committee Vote
  S7961
  
  6
  
  Aye
  
  0
  
  Nay
  
  1
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Corporations, Authorities And Commissions Committee Vote: May 15, 2018
      
      aye (6)
      
      Alcantara
      
      Amedore
      
      Comrie
      
      Larkin
      
      Ortt
      
      Ranzenhofer
      
      aye wr (1)
      
      Kavanagh

co-Sponsors

2017-S7961 (ACTIVE) - Details

See Assembly Version of this Bill:: A10105
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Amd §16-v, UDC Act

2017-S7961 (ACTIVE) - Summary

Relates to the New York state business incubator and innovation hot spot support act.

2017-S7961 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7961

SPONSOR: RANZENHOFER
 
TITLE OF BILL:  An act to amend the urban development corporation act,
in relation to the New York state business incubator and innovation hot
spot support act

 
PURPOSE OF BILL:

The proposed legislation amends the Incubator and Innovation Hot Spot
program to clarify language in the statute as it is written and provide
an environment that strengthens the program and fosters collaboration
amongst the Hot Spots and Incubators.  Summary of Provisions:

Section one of the proposed legislation amends paragraph (c) of
subsection 2 of section 16-v of the Urban Development Corporation Act to
clarify the designation of ten Hot Spots is not limited to a certain
timeframe.

Section two of this legislation amends paragraph (c) of subsection 5 of
section 16-v of the Urban Development Corporation Act to only exclude
indirect costs from acceptable expenses and require that at least eighty

five percent of all funds go towards operations for sponsored incuba-
tors.

Section three of the proposed legislation amends subsection 6 of section
16-v of the Urban Development Corporation Act to clarify that ESD making
other assistance available as appropriate to designees is discretionary
and not a mandatory requirement of the law.

Section four of the proposed legislation amends the Urban Development
Corporation Act to allow Hot Spots to enter into a memorandum of under-
standing with Incubators to provide tax benefits or provide services or
assistance to clients in addition to what is provided by the Incubator
without risk of the companies losing the tax benefits.

Section five of the proposed legislation provides that the proposed
legislation is to take effect immediately upon the effective date of the
bill.

 
JUSTIFICATION:

This proposed legislative change would strengthen the NYS Certified
Business Incubator and Innovation Hot Spot networks and leverage state
funding to expand services to a greater number of entrepreneurs and
startup companies. The statute, as it stands, creates competition among
the Innovation Hot Spots and NYS Certified Incubators instead of foster-
ing collaboration. Because current law can be interpreted to provide
that any company that works with both an incubator and a Hot Spot is not
eligible for the tax benefit, it is important to clarify that an early
stage company working with both an incubator and Hot Spot can still
realize the tax benefit through the Hot Spot if an MOU is in place
between both entities.

ESD is confident that the proposed changes would not only be beneficial
for the business entities but for the overall entrepreneurial ecosystem
of the State of New York.

 
PRIOR LEGISLATIVE HISTORY:
This is a new bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This bill would take effect immediately.

2017-S7961 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7961
 
                             I N  S E N A T E
 
                              March 13, 2018
                                ___________
 
 Introduced by Sen. RANZENHOFER -- (at request of the Empire State Devel-
   opment)  --  read  twice  and  ordered printed, and when printed to be
   committed to the Committee on Corporations,  Authorities  and  Commis-
   sions
 
 AN  ACT  to  amend the urban development corporation act, in relation to
   the New York state business incubator and innovation hot spot  support
   act

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (c) of subdivision 2 of section 16-v of section 1
 of chapter 174 of the laws of 1968, constituting the  urban  development
 corporation  act,  as  added by section 1 of part C of chapter 59 of the
 laws of 2013, is amended to read as follows:
   (c) The corporation,  subject  to  appropriations  provided  for  this
 purpose,  may  approve and designate [five] TEN New York state incubator
 hot spots [in fiscal year two thousand  thirteen-two  thousand  fourteen
 and  five  additional New York state innovation hot spots in fiscal year
 two thousand fourteen-two thousand  fifteen].  Such  designees  will  be
 required  to demonstrate an affiliation with and the application support
 of at least one college, university or independent research institution,
 and that its programs and purposes are consistent with regional economic
 development strategies.
   § 2. Paragraph (c) of subdivision 5 of section 16-v of  section  1  of
 chapter  174  of  the  laws  of 1968, constituting the urban development
 corporation act, as added by section 1 of part C of chapter  59  of  the
 laws of 2013, is amended to read as follows:
   (c)  No deduction. In addition to the foregoing requirements, an incu-
 bator sponsor shall agree to dedicate  all  funds  from  any  grants  or
 support  received  pursuant to this subdivision to the operations of the
 incubator without deductions for [overhead,] indirect costs[, or facili-
 ties and administration charges] of such sponsor.  IN NO CASE  SHALL  AN
 INCUBATOR  SPONSOR AGREE TO PROVIDE LESS THAN EIGHTY-FIVE PERCENT OF ALL
 FUNDS RECEIVED PURSUANT TO THIS SUBDIVISION TO  THE  OPERATIONS  OF  THE
 INCUBATOR WITHOUT EXCEPTION.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14327-01-8

 S. 7961                             2
 
   §  3. Subdivision 6 of section 16-v of section 1 of chapter 174 of the
 laws of 1968, constituting the urban  development  corporation  act,  as
 added  by  section  1  of  part  C of chapter 59 of the laws of 2013, is
 amended to read as follows:
   6.  Other assistance. The corporation [shall] MAY make such other aid,
 assistance, and resources available to New  York  state  innovation  hot
 spots  and  New York state incubators and their clients as it shall deem
 useful and appropriate for the furtherance of the purposes of this  act,
 including without limitation technical assistance, aid in marketing, aid
 in  reaching  and  providing  entrepreneurship training opportunities to
 such marginalized groups as those composed of individuals who are minor-
 ity, female, disabled, or poor, and others, curriculum development,  and
 other services and resources. The corporation shall also seek assistance
 from  other state agencies in the development of procurement and market-
 ing resources and training opportunities for New York  state  innovation
 hot spots and New York state incubators and their clients.
   §  4. Subdivision 8 of section 16-v of section 1 of chapter 174 of the
 laws of 1968, constituting the urban  development  corporation  act,  as
 added  by  section  1  of  part  C of chapter 59 of the laws of 2013, is
 amended to read as follows:
   8. New York state innovation hot spots may certify clients which  meet
 the  requirements of subdivision nine of this section as qualified enti-
 ties eligible for New York state innovation hot spot program  tax  bene-
 fits  pursuant to section thirty-eight of the tax law. [Under no circum-
 stance may business enterprises of incubators  designated  as  New  York
 state  incubators under paragraph (b) of subdivision one of this section
 be eligible for tax benefits under section thirty-eight of the tax law.]
 BUSINESS ENTERPRISES OF INCUBATORS DESIGNATED AS NEW YORK STATE  INCUBA-
 TORS  UNDER  PARAGRAPH  (A)  OF  SUBDIVISION  ONE OF THIS SECTION MAY BE
 CERTIFIED BY THE NEW YORK STATE INNOVATION HOT SPOT IF THE INCUBATOR HAS
 ENTERED INTO A MEMORANDUM OF UNDERSTANDING WITH SUCH HOT SPOT ESTABLISH-
 ING A PROCESS AND THRESHOLD FOR THE PROVISION  OF  INNOVATION  HOT  SPOT
 BENEFITS  TO  QUALIFIED  ENTERPRISES OR THE HOT SPOT IS PROVIDING DEMON-
 STRABLE SERVICES OR ASSISTANCE TO THE BUSINESS ENTERPRISE IN ADDITION TO
 THOSE PROVIDED BY THE INCUBATOR.
   § 5. This act shall take effect immediately.

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Senate Bill S7961

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Sponsored By

Michael H. Ranzenhofer