S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8549
 
                             I N  S E N A T E
 
                                May 9, 2018
                                ___________
 
 Introduced  by  Sen.  BOYLE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT  to  amend  the economic development law, in relation to the New
   York state biomedical and biotechnological translational research  and
   entrepreneurship initiative

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1.  Legislative  intent.  The  legislature  hereby  finds  and
 declares  that  a coordinated program of research, entrepreneurship, and
 public-private partnerships and collaborations centered in and with  the
 state's  public  and  private medical schools can significantly increase
 the speed and amount  of  commercialization  of  research  from  lab  to
 market,  materially expanding economic and job opportunities for all New
 Yorkers in this high growth sector and increasing the likelihood of high
 impact healthcare breakthroughs, which will improve the health and well-
 being of New Yorkers and potentially reduce health care costs.
   The legislature further finds that although New York state's  biomedi-
 cal  and  biotechnological  research and infrastructure includes many of
 the nation's top institutions, researchers and scientists, and has  many
 natural  advantages  compared  to  other  states, development has lagged
 behind the nation as a whole and many states in job growth and  economic
 activity  for  a  decade; and further, that as other states make signif-
 icant and targeted  investments  to  recruit  top  tier  scientists  and
 researchers,  and develop incentives that are creating rapid growth, the
 gap between New York and other states will increase, along with a poten-
 tial migration of scientific and research  talent  to  other  states  in
 search of opportunity and professional advancement.
   The  legislature  further finds that recent changes that have made New
 York's economic development programs more sophisticated and  competitive
 can  be  combined  with  other  statutory  approaches  and precedents to
 support and incentivize an effective plan for development of  biomedical
 and biotechnological entrepreneurship by and through the medical schools
 in  this  state,  and declares that the program enacted by this act will
 expand economic activity and job development; maintain and attract  high
 quality  scientists and researchers; increase resources available to the
              

 schools and  researchers  from  grants,  private  investments,  patents,
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD01066-01-7

 S. 8549                             2
 
 royalties,  and  licensure,  and  leverage significant partnerships with
 public and private entities; enhance our scientific and  research  capa-
 bilities;  and  increase  the speed of commercialization of research and
 the  expansion  of economic opportunity, which are in every sense to the
 benefit of the people of this state.
   § 2. The economic development law is amended by adding a  new  article
 23 to read as follows:
                                ARTICLE 23
            THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
          TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
 SECTION 451. SHORT TITLE.
         452. DEFINITIONS.
         453. NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATION-
                AL RESEARCH AND ENTREPRENEURSHIP INITIATIVE COMMITTEE.
         454. APPLICATION  FOR DESIGNATION AS A NEW YORK STATE BIOMEDICAL
                AND BIOTECHNOLOGICAL TRANSLATIONAL  RESEARCH  AND  ENTRE-
                PRENEURSHIP INITIATIVE CENTER.
         455. REVIEW AND APPROVAL OF APPLICATIONS.
         456. WAIVER IN CERTAIN CASES.
         457. OPERATION  AND  RE-DESIGNATION OF NEW YORK STATE BIOMEDICAL
                AND BIOTECHNOLOGICAL TRANSLATIONAL  RESEARCH  AND  ENTRE-
                PRENEURSHIP INITIATIVE CENTERS.
         458. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM.
         459. UNIFIED CONTRACT.
   §  451.  SHORT  TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY BE CITED AS
 THE  "NEW  YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL  TRANSLATIONAL
 RESEARCH AND ENTREPRENEURSHIP INITIATIVE".
   § 452. DEFINITIONS. AS USED IN THIS ARTICLE:
   1.  "MEDICAL  SCHOOL" MEANS A PUBLIC OR PRIVATE MEDICAL SCHOOL ACCRED-
 ITED BY THE LIAISON COMMITTEE ON MEDICAL EDUCATION OR THE COMMISSION  ON
 OSTEOPATHIC  COLLEGE ACCREDITATION, OR SUCH MEDICAL SCHOOL AND AN AFFIL-
 IATED ENTITY, LOCATED IN THIS STATE.
   2.  "NEW  YORK  STATE  INCUBATORS"  AND  "NEW  YORK  STATE  INNOVATION
 HOTSPOTS"  OR  "INCUBATORS"  AND  "HOTSPOTS" MEAN AND REFER TO "NEW YORK
 STATE INCUBATORS" AND "NEW YORK STATE  INNOVATION  HOTSPOTS"  DESIGNATED
 PURSUANT TO SECTION SIXTEEN-V OF THE URBAN DEVELOPMENT CORPORATION ACT.
   3.  "PEER REVIEW COMMITTEE" MEANS THE PEER REVIEW COMMITTEE CREATED BY
 THE DEPARTMENT AND THE DEPARTMENT OF HEALTH,  CONSISTING  OF  SCIENTIFIC
 AND RESEARCH EXPERTS IN BIOMEDICAL AND BIOTECHNOLOGICAL DEVELOPMENT, AND
 COMPANY REPRESENTATIVES AT THE EXECUTIVE OFFICER LEVEL ENGAGED IN MAKING
 DEVELOPMENT, FINANCING, AND COMMERCIALIZATION OF BIOMEDICAL AND BIOTECH-
 NOLOGICAL RESEARCH.
   4.  "PLAN"  MEANS THE MULTI-YEAR PLAN THAT ACCOMPANIES THE APPLICATION
 OF A MEDICAL SCHOOL TO BECOME A NEW YORK STATE BIOMEDICAL AND BIOTECHNO-
 LOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTER.
   5. "PROJECT" IS THE EXECUTION OF AN APPROVED PLAN BY A NEW YORK  STATE
 BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEUR-
 SHIP INITIATIVE CENTER.
   6.  "START-UP NY" PROGRAM MEANS THE START-UP PROGRAM AUTHORIZED PURSU-
 ANT TO ARTICLE TWENTY-ONE OF THIS CHAPTER, AND THE  "TAX-FREE  NY  AREA"
 HAS THE SAME MEANING AS IN ARTICLE TWENTY-ONE OF THIS CHAPTER.
   7. "STATE INITIATIVE COMMITTEE" OR "STATE COMMITTEE" MEANS THE BIOMED-
 ICAL  AND  BIOTECHNOLOGICAL  TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP
 INITIATIVE COMMITTEE CREATED BY SECTION FOUR HUNDRED FIFTY-THREE OF THIS
 ARTICLE.

 S. 8549                             3
 
   8. "TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP CENTER" OR "CENTER" IS
 THE  NEW  YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL   TRANSLATIONAL
 RESEARCH  AND  ENTREPRENEURSHIP  INITIATIVE  CENTER CREATED AT A MEDICAL
 SCHOOL PURSUANT TO THIS ARTICLE.
   9.  "UNIFIED  CONTRACT"  IS  THE CONTRACT BETWEEN THE DEPARTMENT AND A
 MEDICAL SCHOOL THAT INCLUDES ALL ITEMS NECESSARY TO  THE  IMPLEMENTATION
 AND ADMINISTRATION OF THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
 TRANSLATIONAL   RESEARCH  AND  ENTREPRENEURSHIP  INITIATIVE  PROJECT  AS
 DESCRIBED IN THIS ARTICLE BY A CENTER.
   § 453. NEW YORK STATE BIOMEDICAL  AND  BIOTECHNOLOGICAL  TRANSLATIONAL
 RESEARCH  AND  ENTREPRENEURSHIP INITIATIVE COMMITTEE. THE NEW YORK STATE
 BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL RESEARCH AND ENTREPRENEUR-
 SHIP INITIATIVE COMMITTEE IS HEREBY CREATED, TO CONSIST OF  THE  COMMIS-
 SIONERS  OF  THE DEPARTMENTS OF HEALTH, EDUCATION, ECONOMIC DEVELOPMENT,
 LABOR, TAX AND FINANCE, THE CHANCELLOR OF THE STATE  UNIVERSITY  OF  NEW
 YORK,  THE  CHANCELLOR OF THE CITY UNIVERSITY OF NEW YORK, THE PRESIDENT
 OF THE EMPIRE STATE DEVELOPMENT CORPORATION, THE DIRECTOR OF  THE  DIVI-
 SION  OF  THE  BUDGET, AND THE STATE COMPTROLLER. THE COMMITTEE SHALL BE
 CHAIRED BY THE COMMISSIONER OF ECONOMIC DEVELOPMENT, AND  CO-CHAIRED  BY
 THE  COMMISSIONER  OF HEALTH. COMMISSIONERS MAY BE REPRESENTED BY DESIG-
 NEES AT MEETINGS OF THE COMMITTEE.
   1. POWERS AND DUTIES. THE COMMITTEE SHALL:
   (A) ESTABLISH GUIDELINES APPROPRIATE TO THE ACTIVITIES REQUIRED  UNDER
 THIS ARTICLE.
   (B)  DESIGNATE AS NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRAN-
 SITIONAL  RESEARCH  AND  ENTREPRENEURSHIP  INITIATIVE  CENTERS   MEDICAL
 SCHOOLS WHICH MEET THE CRITERIA ESTABLISHED IN THIS ARTICLE.
   (C)  APPROVE WAIVERS OF REGULATIONS AND PROCEDURES PURSUANT TO SECTION
 FOUR HUNDRED FIFTY-SEVEN OF THIS ARTICLE.
   (D) ESTABLISH A UNIFIED CONTRACT FOR PROJECTS PURSUANT TO SECTION FOUR
 HUNDRED FIFTY-NINE OF THIS ARTICLE.
   (E) RECEIVE AND REVIEW PERFORMANCE METRICS REPORTS FROM CENTERS.
   (F) RE-DESIGNATE THE CENTERS EVERY FIVE YEARS PURSUANT TO  THIS  ARTI-
 CLE.
   (G)  DEVELOP  RESOURCES  AND PROCEDURES TO AID IN COMMERCIALIZATION OF
 RESEARCH AND FUNDING OF ENTREPRENEURIAL EFFORTS CREATED AS A  RESULT  OF
 PROJECTS, INCLUDING BUT NOT LIMITED TO SUCH ACTIVITIES AS PROCUREMENT OF
 GOODS  OR  SERVICES  FROM  COMPANIES CREATED IN THE PROJECTS; ENDORSING,
 COLLABORATING, OR UPON REQUEST OF A CENTER,  ACTING  AS  A  CO-PRINCIPAL
 INVESTIGATOR OR OTHER LEVEL OF PARTICIPANT ON GRANTS OR OTHER ACTIVITIES
 THAT  WILL  AID  IN FURTHERING PROJECT ACTIVITIES; AND SUCH OTHER ACTIV-
 ITIES AS CAN AID RAPID COMMERCIALIZATION AS ARE PERMISSIBLE UNDER LAW.
   (H) OVERSEE AND MAKE RECOMMENDATIONS FOR APPROVAL OF  APPLICATIONS  TO
 THE  SCIENTIFIC  RESEARCH AND DISCOVERY BANK CREATED BY THIS ARTICLE FOR
 THE RECRUITMENT OF OUT OF STATE AND RETENTION OF  IN-STATE  STAR  SCIEN-
 TISTS AND RESEARCHERS.
   (I)  UPON  REQUEST, PROVIDE TECHNICAL ASSISTANCE TO APPLICANTS, AND AS
 MAY BE NEEDED FOR SUCCESSFUL IMPLEMENTATION OF A PROJECT, INCLUDING  BUT
 NOT  LIMITED  TO  ASSISTANCE  IN IDENTIFYING AND OBTAINING RESOURCES AND
 FUNDING.
   (J) IDENTIFY STATUTORY REQUIREMENTS THAT THE COMMITTEE VIEWS AS IMPED-
 IMENTS TO SUCCESSFUL IMPLEMENTATION OF APPROVED PLANS, AND AS NECESSARY,
 SUBMIT REQUESTS TO THE LEGISLATURE IN ACCORDANCE WITH ARTICLE VII OF THE
 STATE CONSTITUTION FOR  SPECIFIC  LEGISLATIVE  ENACTMENTS  NECESSARY  TO
 REMOVE SUCH IMPEDIMENTS.

 S. 8549                             4
 
   (K) ENTER INTO AGREEMENTS BETWEEN AND AMONG THE MEMBERS OF THE COMMIT-
 TEE AS NECESSARY TO DELINEATE THEIR RESPECTIVE ROLES REGARDING THE COOP-
 ERATIVE PROVISION OF FUNDING AND ASSISTANCE.
   2.  THE  COMMITTEE  MAY ACT THROUGH ITS CHAIRS IN ALL MATTERS OF OVER-
 SIGHT AND IMPLEMENTATION OF THE PROGRAM AUTHORIZED BY THIS ARTICLE.
   § 454. APPLICATION FOR DESIGNATION AS A NEW YORK STATE BIOMEDICAL  AND
 BIOTECHNOLOGICAL  TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
 CENTER. IN RESPONSE TO A REQUEST FOR PROPOSALS, A MEDICAL  SCHOOL  OR  A
 MEDICAL SCHOOL AND AN AFFILIATED ENTITY MAY APPLY FOR FUNDING AND DESIG-
 NATION AS A NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
 RESEARCH  AND ENTREPRENEURSHIP INITIATIVE CENTER BY SUBMITTING AN APPLI-
 CATION AND PLAN TO THE COMMISSIONER. THE COMMISSIONER SHALL FORWARD  ALL
 SUCH  APPLICATIONS TO THE PEER REVIEW COMMITTEE FOR REVIEW AND RECOMMEN-
 DATION AS HEREIN PROVIDED, AND THEN TO THE STATE COMMITTEE. IN  ADDITION
 TO SUCH OTHER ITEMS, WARRANTIES, AND INFORMATION AS THE STATE INITIATIVE
 COMMITTEE  MAY REQUIRE, PLANS MUST SHOW THAT THE ACTIVITIES TO BE UNDER-
 TAKEN WILL COMMERCIALIZE RESEARCH FROM LAB TO  MARKETPLACE,  DEMONSTRATE
 THAT  THE  CENTER MEETS THE MATCHING FUNDS AND ENTREPRENEUR RELATIONSHIP
 REQUIREMENTS HEREUNDER, AND MEET A MAJORITY  OF  THE  REMAINDER  OF  THE
 FOLLOWING ITEMS:
   1.  COMMITMENT:  A MULTI-YEAR COMMITMENT TO IMPLEMENT THE PLAN, OVER A
 PERIOD OF NOT LESS THAN FIVE YEARS,  DEMONSTRATED  BY  A  COMMITMENT  OF
 RESOURCES,  PERSONNEL,  AND  FUNDS THAT THE SCHOOL WILL USE, DIRECTLY OR
 THROUGH PARTNERSHIPS AND COLLABORATIONS, TO PROVIDE  AND/OR  INCENTIVIZE
 AN  INTEGRATED PROGRAM OF RESEARCH, EDUCATION, CLINICAL PRACTICE, ENTRE-
 PRENEURSHIP, FINANCING, PARTNERSHIPS,  AND  RAPID  COMMERCIALIZATION  OF
 RESEARCH.  SUCH  DEMONSTRATION MAY ALSO INCLUDE CAPITAL INVESTMENTS MADE
 OR PLANNED FOR  NEW  OR  REHABILITATED  RESEARCH  OR  LABORATORY  SPACE,
 CONTINUED  SUPPORT  FOR  ACTIVITIES AFTER THE CONCLUSION OF THE PROJECT,
 AND OTHER ACTIVITIES DEMONSTRATING COMMITMENT.
   2. RESOURCES: A DESCRIPTION OF THE ACTIONS AND RESOURCES NECESSARY  TO
 MEET  THE  PLAN  OBJECTIVES  OVER ITS DURATION; A DEMONSTRATION THAT THE
 MEDICAL SCHOOL HAS OR IS DEVELOPING OPERATIONAL CLINICAL FACILITIES  AND
 EXPERTISE  OR EVIDENCE OF BONA FIDE COLLABORATIONS AND PARTNERSHIPS THAT
 CAN PROVIDE SUCH FACILITIES AND EXPERTISE TO SUCCESSFULLY IMPLEMENT  THE
 PLAN;  A DEMONSTRATION THAT THE PROJECT WILL HAVE A PROFESSIONAL MANAGE-
 MENT TEAM WITH EXPERIENCE, EXPERTISE, OR CREDENTIALS IN AREAS  INCLUDING
 BUT  NOT  LIMITED TO MANAGEMENT, ENTREPRENEURSHIP, BUSINESS DEVELOPMENT,
 OR OTHER EQUIVALENT AREAS. THE  DEMONSTRATION  MAY  INCLUDE  RECRUITMENT
 PLANS  OR  COMMITMENTS  FOR HIGH LEVEL RESEARCH PROFESSIONALS, INCLUDING
 HOW THE SCHOOL WOULD MAKE USE OF THE SCIENTIFIC RESEARCH  AND  DISCOVERY
 BANK.
   3.  ENTREPRENEURIAL AND RESEARCH COLLABORATIONS: EVIDENCE OF BONA FIDE
 ENTREPRENEURIAL RELATIONSHIPS WITH ONE OR MORE INCUBATORS  OR  HOTSPOTS,
 AND RESEARCH COLLABORATIONS WITH OTHER ENTITIES INCLUDING BUT NOT LIMIT-
 ED  TO  OTHER  RESEARCH  INSTITUTIONS, PHARMACEUTICAL AND BIOMEDICAL AND
 BIOTECHNOLOGY COMPANIES.
   4. LEVERAGED AND APPLIED FUNDING:  A  DEMONSTRATION  THAT  THE  SCHOOL
 ALREADY  POSSESSES  OR HAS A COMMITMENT FOR AND WILL MAINTAIN DURING THE
 PLAN PERIOD THE REQUIRED FUNDING MATCH RATIO OF AT LEAST TWO DOLLARS FOR
 EVERY STATE DOLLAR PROVIDED PURSUANT TO  THIS  ARTICLE  TO  AN  APPROVED
 PLAN,  AND  HOW  THE  SCHOOL WILL USE OTHER RESOURCES, PARTNERSHIPS, AND
 COLLABORATIONS TO AID DIRECTLY OR INDIRECTLY IN ACTIVITIES  CRITICAL  TO
 THE COMMERCIALIZATION OF RESEARCH. INSOFAR AS PRACTICABLE, SUCH MATCHING
 FUNDS  SHOULD  NOT CONSIST OF DIRECT STATE GRANTS FROM THE DEPARTMENT OR
 FROM ANOTHER STATE AGENCY OR STATE PUBLIC AUTHORITY, PROVIDED THAT NOTH-

 S. 8549                             5

 ING IN THIS SUBDIVISION SHALL BE DEEMED TO PROHIBIT A MEDICAL SCHOOL  OF
 THE  STATE  UNIVERSITY OF NEW YORK WHICH HAS BEEN DESIGNATED AS A CENTER
 FROM USING A PORTION OF ITS OPERATING FUNDS AS MATCHING FUNDS.
   5. ADDITIONAL PLANS AND PROGRAMS: OTHER PLANS AND PROGRAMS INTEGRAL TO
 THE  SUCCESSFUL  EXECUTION  OF THE PROJECT, INCLUDING BUT NOT LIMITED TO
 PATENT  AND  INTELLECTUAL  PROPERTY  PLANS,  TRAINING  AND   EDUCATIONAL
 PROGRAMS,  AND EDUCATIONAL INTEGRATION WITH RESEARCH AND CLINICAL ACTIV-
 ITIES.
   6. COMMUNITY SUPPORT: A DEMONSTRATION OF COMMUNITY SUPPORT FROM  BUSI-
 NESS AND GOVERNMENT LEADERS AND ORGANIZATIONS.
   7. BEST PRACTICES: A DEMONSTRATION THAT THE MEDICAL SCHOOL HAS OR WILL
 ADOPT  BEST PRACTICES AND USE OF MULTI-YEAR METRICS FOR PERFORMANCE, AND
 THAT IT WILL REPORT DATA AS REQUESTED OR REQUIRED TO THE DEPARTMENT  AND
 THE STATE INITIATIVE COMMITTEE.
   8.  PERFORMANCE METRICS: ANTICIPATED ANNUAL AND CUMULATIVE OUTCOMES OF
 THE PROJECT IN TERMS OF DIRECT, INDIRECT, AND RETAINED JOBS, INVESTMENT,
 AND ECONOMIC AND OTHER ACTIVITY, STATED IN  A  SPECIFIC  AND  MEASURABLE
 WAY, AND RESEARCH FINDINGS AND PROGRESS.
   9.  ADVISORY COUNCIL: AN ADVISORY COUNCIL OF FIVE MEMBERS OR MORE THAT
 INCLUDES ONE OR MORE EXECUTIVE OFFICERS OF FIRMS THAT HAVE BEEN  CREATED
 FROM  RESEARCH  AT  THE  SCHOOL, AND INDIVIDUALS WITH EXPERTISE IN AREAS
 APPROPRIATE TO THE SPECIFIC DEVELOPMENTAL  SECTOR  OR  CONCENTRATION  OF
 CLIENTS, OR TO BIOMEDICAL AND BIOTECHNOLOGICAL RESEARCH AND DEVELOPMENT,
 AND TO THE MISSION AND GOAL OF THE PROJECT.
   §  455.  REVIEW  AND  APPROVAL OF APPLICATIONS. REVIEW OF APPLICATIONS
 SHALL TAKE PLACE AS FOLLOWS:
   1. THE COMMISSIONER SHALL REVIEW APPLICATIONS AND PLANS  RECEIVED  FOR
 COMPLETENESS,  AND  THEN  FORWARD  THEM TO THE PEER REVIEW COMMITTEE. NO
 PLAN SHALL BE APPROVED  BY  THE  STATE  INITIATIVE  COMMITTEE  THAT  HAS
 RECEIVED  A  DESIGNATION  OF  NOT  RECOMMENDED FOR FURTHER CONSIDERATION
 (NRFC) BY THE PEER REVIEW COMMITTEE. NO PLANS SHALL BE FORWARDED BY  THE
 COMMISSIONER  TO EITHER COMMITTEE THAT REQUIRE THAT FUNDS MADE AVAILABLE
 PURSUANT TO THIS ARTICLE SHALL BE DIRECTLY OR  INDIRECTLY  UTILIZED  FOR
 RESEARCH INVOLVING HUMAN REPRODUCTIVE CLONING.
   2.  THE  MEMBERS OF THE PEER REVIEW COMMITTEE SHALL BE SELECTED BY THE
 CHAIR AND THE CO-CHAIR OF THE STATE INITIATIVE  COMMITTEE  USING  GUIDE-
 LINES  APPROVED  BY  SUCH  COMMITTEE,  WHICH  SHALL INCLUDE REQUIREMENTS
 CONCERNING EXPERTISE AND AVOIDANCE OF CONFLICT OF INTEREST. IF NECESSARY
 AND DEEMED APPROPRIATE BY THE STATE INITIATIVE COMMITTEE, PLANS  MAY  BE
 SUBMITTED  BLIND  TO  THE  PEER  REVIEW  PANEL. PEER REVIEW PANELS SHALL
 INCLUDE A MINIMUM OF FIVE MEMBERS.
   3. THE PEER REVIEW COMMITTEE SHALL REVIEW AND SCORE PLANS BASED ON THE
 FOLLOWING CRITERIA:
   (A) SCIENTIFIC AND TECHNICAL MERIT;
   (B) THE LEVEL OF SCIENTIFIC KNOWLEDGE,  TECHNICAL  CAPABILITY,  AND/OR
 CLINICAL  PRACTICE  AND  OTHER  NECESSARY  PLAN COMPONENTS THAT WOULD BE
 REQUIRED TO BE HOUSED AT THE MEDICAL SCHOOL, INCLUDING IMPROVEMENTS THAT
 MAY BE ANTICIPATED BASED ON THE PLAN;
   (C) THE SUITABILITY OF PRINCIPAL  INVESTIGATIONS,  COLLABORATORS,  AND
 OTHER  RESEARCHERS TO THE PROJECT, INCLUDING THE EXPERIENCE AND TRAINING
 OF STAFF AND COLLABORATORS;
   (D) THE ONGOING RECORD OF ACCOMPLISHMENTS AND INTEGRATED EXPERTISE  AT
 THE  SCHOOL  OR  AS PROPOSED IN THE PLAN, INCLUDING LEADERSHIP APPROACH,
 GOVERNANCE AND ORGANIZATIONAL STRUCTURE;
   (E) PLANS FOR PROTECTION OF HUMAN SUBJECTS;
   (F) THE SCIENTIFIC ENVIRONMENT IN WHICH THE WORK WILL BE DONE;

 S. 8549                             6

   (G) APPROPRIATENESS OF INSTITUTIONAL  SUPPORT,  EQUIPMENT,  AND  OTHER
 PHYSICAL RESOURCES; AND
   (H)  SUCH  OTHER  INFORMATION  AS THE STATE INITIATIVE COMMITTEE SHALL
 REQUIRE.
   4. AN APPLICATION RECEIVING A LOW SCORE BY THE PEER  REVIEW  COMMITTEE
 BASED  ON  THE  CRITERIA  IN SUBDIVISION THREE OF THIS SECTION, OR WHICH
 LACKS SIGNIFICANT AND SUBSTANTIAL MERIT, OR WHICH PRESENTS IN  THE  VIEW
 OF  THE PEER REVIEW COMMITTEE SERIOUS ETHICAL PROBLEMS IN THE PROTECTION
 OF HUMAN SUBJECTS FROM RESEARCH RISKS, OR OTHER  SERIOUS  ETHICAL  PROB-
 LEMS,  SHALL  BE  DESIGNATED  NOT  RECOMMENDED FOR FURTHER CONSIDERATION
 (NRFC). SUCH PLANS SHALL BE RETURNED TO  THE  COMMISSIONER  AND  BY  THE
 COMMISSIONER  TO THE STATE INITIATIVE COMMITTEE WITH WRITTEN RECOMMENDA-
 TIONS FOR CHANGE.
   5. THE STATE INITIATIVE COMMITTEE SHALL REVIEW AND SCORE  PLANS  BASED
 ON  THE  CATEGORIES REQUIRED IN THE APPLICATION PURSUANT TO SECTION FOUR
 HUNDRED FIFTY-FOUR OF THIS ARTICLE, AND SHALL ADDITIONALLY CONSIDER  THE
 FOLLOWING:
   (A)  THE  ANTICIPATED  EFFECTIVENESS  OF  THE PLAN AS EVIDENCED BY THE
 EXISTENCE OF AVAILABLE RESOURCES DEDICATED TO THE PLAN AND  THE  COMMIT-
 MENT OF THE MEDICAL SCHOOL;
   (B)  THE  ABILITY OF THE APPLICANT TO UNDERTAKE AND COMPLETE THE PLAN,
 THE FEASIBILITY OF MEETING THE METRICS AND GOALS PROVIDED FOR  DETERMIN-
 ING  THE SUCCESS OF THE PLAN, THE DURABILITY AND EXTENT OF THE RELATION-
 SHIPS WITH INCUBATORS AND HOTSPOTS, AND WITH START-UP NY  PROJECTS,  AND
 WITH PRIVATE AND OTHER PUBLIC COLLABORATORS;
   (C)  THE ABILITY OF THE APPLICANT TO PROVIDE THE NECESSARY DATA FOR AN
 EFFECTIVE EVALUATION OF THE PROJECT;
   (D) THE AMOUNT OF FEDERAL AND PRIVATE GRANTS, OR OTHER RESOURCES  THAT
 WILL BE INCENTIVIZED AND MADE AVAILABLE TO THE SCHOOL TO ASSIST IN FUND-
 ING OF THE PROJECT; AND
   (E)  SUCH  OTHER  MEASURABLE  CRITERIA  AS  SHALL BE DETERMINED BY THE
 COMMITTEE.
   6. PLANS DESIGNATED  AS  NOT  RECOMMENDED  FOR  FURTHER  CONSIDERATION
 (NRFC)  BY  THE  PEER REVIEW COMMITTEE OR THE STATE INITIATIVE COMMITTEE
 SHALL BE RETURNED TO THE APPLICANT WITH ANY RECOMMENDATIONS  FOR  AMEND-
 MENT AND MAY BE RESUBMITTED IN THE FOLLOWING YEAR.
   7.  THE  STATE  INITIATIVE COMMITTEE SHALL REVIEW THE APPLICATIONS AND
 PLANS SUBMITTED TO IT AND RECOMMEND CHANGES AND DETERMINE FUNDING LEVELS
 AND SOURCES TO BE INCLUDED IN THE UNIFIED CONTRACT,  PROVIDED  THAT  NOT
 MORE  THAN FORTY PERCENT OF FUNDS, APPROPRIATED PURSUANT TO THIS ARTICLE
 SHALL BE USED FOR ANY SINGLE PROJECT IN ANY YEAR. INSOFAR AS PRACTICABLE
 IN APPROVING  APPLICATIONS,  THE  COMMITTEE  SHALL  SEEK  TO  PROVIDE  A
 GEOGRAPHICALLY  BALANCED  DISTRIBUTION AMONG THE REGIONS OF THE STATE IN
 DESIGNATING NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATIONAL
 RESEARCH AND ENTREPRENEURSHIP INITIATIVE CENTERS.
   8. AS SOON AS PRACTICABLE AFTER APPROVING AN APPLICATION THE COMMITTEE
 SHALL NOTIFY THE TEMPORARY PRESIDENT OF THE SENATE AND  THE  SPEAKER  OF
 THE  ASSEMBLY  OF  ITS  APPROVAL.  SUCH  NOTIFICATION SHALL IDENTIFY THE
 RECIPIENT AND STATE THE PROPOSED LOCATION, THE ESTIMATED PROJECT FUNDING
 AND AWARD AND PROVIDE A BRIEF DESCRIPTION OF THE PROJECT.
   § 456. WAIVER IN CERTAIN CASES. TO PROMOTE INNOVATIVE  APPROACHES  AND
 MAXIMIZE EFFECTIVE USE OF PUBLIC MONIES AND THE LIKELIHOOD OF SUCCESS IN
 OPERATION  OF  APPROVED  NEW  YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
 TRANSLATIONAL RESEARCH  AND  ENTREPRENEURSHIP  INITIATIVE  CENTERS,  AND
 NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMMISSIONER OR DIRECTOR
 OF  ANY  STATE AGENCY THAT IS A MEMBER OF THE STATE INITIATIVE COMMITTEE

 S. 8549                             7
 
 MAY WAIVE, UPON APPLICATION BY SUCH CENTER AND SUBJECT TO  THE  APPROVAL
 OF THE STATE INITIATIVE COMMITTEE AND THE DIRECTOR OF THE BUDGET, ANY OF
 SUCH  AGENCY'S REGULATORY OR PROCEDURAL REQUIREMENTS THAT MAY IMPEDE THE
 SUCCESSFUL  IMPLEMENTATION  OF  A  PROJECT  UNDERTAKEN  BY  THE  CENTER,
 PROVIDED THAT SUCH WAIVER IS CONSISTENT WITH APPLICABLE STATE AND FEDER-
 AL STATUTES AND WILL NOT IMPAIR THE GENERAL HEALTH  OR  WELFARE  OF  THE
 PEOPLE RECEIVING SERVICES UNDER SUCH PROJECT OR OTHERS. SUCH COMMISSION-
 ER OR DIRECTOR SHALL BE AUTHORIZED, IN CONSULTATION WITH THE DIRECTOR OF
 THE  BUDGET, TO IMPOSE APPROPRIATE ALTERNATIVE STANDARDS IN PLACE OF ANY
 WAIVED REQUIREMENTS.
   § 457. OPERATION AND RE-DESIGNATION OF NEW YORK STATE  BIOMEDICAL  AND
 BIOTECHNOLOGICAL  TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
 CENTERS. IN ADDITION TO ANY OTHER REQUIREMENTS OF THIS ARTICLE, A CENTER
 WILL AGREE TO PROVIDE DATA SHOWING ITS SUCCESS IN MEETING  PROJECT  PLAN
 GOALS,  INCLUDING  YEAR  BY  YEAR  COMPARISON  OF  RESEARCH ACTIVITY AND
 COMMERCIALIZATION THEREOF, FIRM FINANCING  AND  EQUITY  CAPITAL  RAISED,
 PROVIDED  OR  LEVERAGED  FROM  ALL  SOURCES,  PERSONNEL  EMPLOYED ON THE
 PROJECT, AND JOBS CREATED BY AND THROUGH  THE  PROJECT.  THE  DEPARTMENT
 SHALL  DESIGN  SIMPLIFIED  FORMS  TO AID IN THE SUBMISSION OF SUCH DATA,
 WHICH MAY BE SUBMITTED ELECTRONICALLY.
   THE CHAIRS OF THE STATE INITIATIVE COMMITTEE SHALL EVALUATE AND REPORT
 ON THE OPERATIONS OF THE CENTER USING METHODS INCLUDING BUT NOT  LIMITED
 TO  SITE  VISITS,  REPORTS  PURSUANT TO SPECIFIC INFORMATION, AND REVIEW
 EVALUATIONS. IF THE CHAIRS DETERMINE THE PROJECT IS NOT  PROGRESSING  AS
 AGREED, THE CENTER WILL BE NOTIFIED OF DEFICIENCIES AND THE CENTER SHALL
 REMEDY ANY DEFICIENCIES IN ITS OPERATIONS IN A TIMELY MANNER. SUCH EVAL-
 UATIONS  SHALL  TAKE  PLACE  NO LESS THAN ONCE EVERY THREE YEARS OR MORE
 OFTEN FOR ANY INDIVIDUAL CENTER AT THE DISCRETION  OF  THE  CHAIRS,  AND
 SHALL  RESULT  IN A WRITTEN REPORT THAT INCLUDES PROGRAMMATIC AND FISCAL
 EVALUATION OF THE PROJECT AND RECOMMENDATIONS FOR IMPROVEMENT.
   FAILURE TO TIMELY CURE A  DEFICIENCY  AFTER  REVIEW  SHALL  RESULT  IN
 DISQUALIFICATION OF THE MEDICAL SCHOOL AS A CENTER.
   A  CENTER  SHALL  BE  DEEMED RE-DESIGNATED UPON APPLICATION EVERY FIVE
 YEARS UNLESS IT SHALL RECEIVE A NEGATIVE EVALUATION FROM THE PEER REVIEW
 GROUP ON ITS APPLICATION FOR RE-DESIGNATION, OR  IF  IT  SHALL  FAIL  TO
 REMEDY  IDENTIFIED DEFECTS IN ITS OPERATION MADE KNOWN TO IT PURSUANT TO
 THIS SECTION, OR IF THE STATE INITIATIVE COMMITTEE DETERMINES THAT  SUCH
 DEFECTS  ARE OF SUCH A NATURE, INVOLVE FRAUD, OR ARE OF SUCH EXTENT THAT
 THEY CANNOT BE REMEDIED.
   § 458. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM. THE  SCIENTIFIC
 RESEARCH  AND  DISCOVERY  BANK  PROGRAM IS HEREBY CREATED, WHOSE PURPOSE
 SHALL BE TO PROVIDE FUNDS TO CENTERS FOR RECRUITMENT OF OUT OF STATE AND
 RETENTION OF  IN-STATE  SCIENTISTS  AND  RESEARCHERS  NECESSARY  TO  THE
 SUCCESSFUL  IMPLEMENTATION  OF  APPROVED  PROJECTS. MONIES SHALL BE MADE
 AVAILABLE TO CENTERS FROM FUNDS APPROPRIATED FOR THE  PURPOSES  OF  THIS
 ARTICLE,  AFTER REVIEW AND UPON APPROVAL BY THE STATE INITIATIVE COMMIT-
 TEE PURSUANT TO A PLAN SUBMITTED BY A CENTER. SUCH PLAN MAY BE SUBMITTED
 AT THE TIME OF THE APPLICATION OR AT ANY TIME DURING THE  IMPLEMENTATION
 OF THE MULTI-YEAR APPROVED PLAN AND MUST DEMONSTRATE TO THE SATISFACTION
 OF  THE  COMMITTEE THAT THE CENTER HAS OR WILL HAVE DURING THE PERIOD OF
 THE GRANT A MATCH OF TWO DOLLARS FOR EVERY STATE DOLLAR PROVIDED  PURSU-
 ANT  TO  THIS  SECTION.  PLANS MUST SHOW THE TIMELINE AND USAGE OF FUNDS
 REQUIRED AND SUCH OTHER INFORMATION  AS  THE  COMMITTEE  SHALL  REQUIRE,
 INCLUDING:  THE  NEED  FOR SUCH FUNDS AND THE MANNER IN WHICH SUCH AWARD
 WOULD ENHANCE THE RESEARCH  CAPABILITIES  OF  THE  CENTER  NECESSARY  TO
 SUCCESSFUL  IMPLEMENTATION  OF  THE  PROJECT  PLAN;  THE  ABILITY OF THE

 S. 8549                             8
 
 RESEARCHER TO LEVERAGE AND ATTRACT FEDERAL FUNDS,  VENTURE  CAPITAL  AND
 PRIVATE INDUSTRY FUNDS; AND THE WILLINGNESS OF SUCH RESEARCHER TO PURSUE
 ENTREPRENEURIAL  ENTERPRISES  RESULTING IN NEW BUSINESS OR THE EXPANSION
 OF  EXISTING  BUSINESS  IN  THIS  STATE. THE COMMITTEE SHALL ESTABLISH A
 SCHEDULE FOR PAYMENT OF THE  AWARD.  FUNDS  PROVIDED  PURSUANT  TO  THIS
 SECTION  MUST  BE APPLIED DIRECTLY TO NECESSARY EXPENSES FOR RECRUITMENT
 AND RETENTION OF SCIENTISTS AND RESEARCHERS, AND MAY  NOT  BE  USED  FOR
 INDIRECT OR OTHER OVERHEAD COSTS OF THE MEDICAL SCHOOL. INSOFAR AS PRAC-
 TICABLE,  SUCH  MATCHING FUNDS SHOULD NOT CONSIST OF DIRECT STATE GRANTS
 FROM THE DEPARTMENT OR FROM ANOTHER STATE AGENCY OR STATE PUBLIC AUTHOR-
 ITY, PROVIDED THAT NOTHING IN THIS SECTION SHALL BE DEEMED TO PROHIBIT A
 MEDICAL SCHOOL OF THE STATE UNIVERSITY OF NEW YORK WHICH HAS BEEN DESIG-
 NATED AS A CENTER FROM USING A PORTION OF ITS OPERATING FUNDS AS  MATCH-
 ING  FUNDS.  FUNDS  USED FOR MATCH MAY INCLUDE REASONABLE ADMINISTRATIVE
 COSTS ASSOCIATED WITH OUT OF STATE RECRUITMENT OR IN-STATE RETENTION.
   § 459. UNIFIED CONTRACT. THE  COMMISSIONER  ON  BEHALF  OF  THE  STATE
 INITIATIVE  COMMITTEE  SHALL  ENTER  INTO  A  UNIFIED CONTRACT WITH EACH
 CENTER. THE PROVISIONS OF SUCH CONTRACT SHALL INCLUDE, BUT NOT BE LIMIT-
 ED TO: A DESCRIPTION OF  PROJECT  SERVICES  AND  ACTIVITIES;  THE  PLAN;
 ALLOWABLE PROJECT COSTS; SPECIFIC SOURCES OF FUNDS THAT WILL SUPPORT THE
 APPROVED  COSTS,  INCLUDING  GOVERNMENTAL  AND NON-GOVERNMENTAL FUNDS OR
 REVENUES THAT ARE PROPOSED TO BE USED IN SUPPORT OF PROJECT  COSTS;  AND
 THE  ALLOCATION  OF  COSTS  BY  FUNDING SOURCE. THE FORM OF SUCH UNIFIED
 CONTRACT SHALL BE DEVELOPED IN CONSULTATION WITH  THE  DIVISION  OF  THE
 BUDGET  AND  THE OFFICE OF STATE COMPTROLLER. THE COMPTROLLER IS AUTHOR-
 IZED PURSUANT TO A CERTIFICATE OF ALLOCATION SUBMITTED BY  THE  DIVISION
 OF THE BUDGET TO INTERCHANGE OR TRANSFER FROM APPROPRIATIONS MADE TO THE
 AGENCIES  OF  THE  COMMITTEE OR ANY OTHER APPROPRIATION, AS APPROPRIATE,
 SUCH AMOUNTS AS MAY BE REQUIRED TO FULFILL THE OBLIGATIONS OF THE  STATE
 PURSUANT TO SUCH UNIFIED CONTRACTS FOR PAYMENTS OF SUCH OBLIGATIONS. THE
 DIVISION  OF  THE  BUDGET SHALL PROVIDE THE CHAIRS OF THE SENATE FINANCE
 COMMITTEE AND THE ASSEMBLY  WAYS  AND  MEANS  COMMITTEE  WITH  QUARTERLY
 REPORTS  OF  ALL INTERCHANGES AND TRANSFERS WHICH OCCUR PURSUANT TO THIS
 SUBDIVISION.
   1. ALLOWABLE COSTS FOR A PROJECT SHALL INCLUDE, BUT NOT BE LIMITED  TO
 COSTS REASONABLY INCURRED FOR:
   (A) PREPARATION OF THE PLAN;
   (B) ACTIVITIES AS APPROVED IN THE PROJECT APPLICATION;
   (C) EVALUATION OF THE APPROVED PROJECT; AND
   (D) RENOVATIONS TO EXISTING STRUCTURES AS MAY BE NEEDED IN FURTHERANCE
 OF  THE  PLAN,  EXCEPT  THAT  IN NO CASE SHALL THE STATE SUPPORT OF SUCH
 COSTS EXCEED EITHER TWENTY-FIVE PERCENT OF THE  AMOUNT  TO  BE  PROVIDED
 PURSUANT TO THE CONTRACT OR FIFTY PERCENT OF THE TOTAL RENOVATION COSTS,
 WHICHEVER IS LESS.
   2.  FUNDING  MADE AVAILABLE PURSUANT TO THIS ARTICLE SHALL NOT BE USED
 TO SUPPLANT OTHER FUNDS FOR OPERATIONS OR PROJECTS OF A CENTER.
   IN ADDITION TO THE FOREGOING REQUIREMENTS, A  CENTER  SHALL  AGREE  TO
 DEDICATE  ALL  FUNDS FROM ANY SUPPORT RECEIVED PURSUANT TO THIS ARTICLE,
 EXCEPT FOR FUNDS RECEIVED PURSUANT TO PARAGRAPH (D) OF  SUBDIVISION  ONE
 OF  THIS  SECTION,  TO  OPERATIONS  OF THE CENTER WITHOUT DEDUCTIONS FOR
 OVERHEAD, INDIRECT COSTS, OR FACILITIES AND  ADMINISTRATION  CHARGES  OF
 THE  MEDICAL  SCHOOL, AND TO LIMIT TO TEN PERCENT OR LESS THE ALLOCATION
 OF FUNDS RECEIVED THROUGH THIS ARTICLE TO ADMINISTRATIVE  COSTS  OF  THE
 CENTER.
   §  3.  This  act  shall  take  effect  on  the first of September next
 succeeding the date on which it shall have become a law.