S T A T E O F N E W Y O R K
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4507--A
2023-2024 Regular Sessions
I N A S S E M B L Y
February 16, 2023
___________
Introduced by M. of A. KELLES -- 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 New York state urban development corporation act, in
relation to establishing a matching grant program for certain small
businesses receiving funding under the federal small business inno-
vation research program or the small business technology transfer
program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 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 52-a to read as follows:
§ 52-A. SMALL BUSINESS INNOVATION RESEARCH AND SMALL BUSINESS TECHNOL-
OGY TRANSFER MATCHING GRANT PROGRAM. 1. THE CORPORATION, IN CONSULTATION
WITH THE DEPARTMENT OF ECONOMIC DEVELOPMENT'S DIVISION FOR SMALL-BUSI-
NESS, SHALL ESTABLISH A MATCHING GRANT PROGRAM TO PROVIDE FUNDS TO SMALL
BUSINESSES WHO HAVE BEEN AWARDED PHASE ONE OR PHASE TWO GRANTS UNDER THE
FEDERAL SMALL BUSINESS INNOVATION RESEARCH PROGRAM OR THE SMALL BUSINESS
TECHNOLOGY TRANSFER PROGRAM WITHIN THE LAST FOUR YEARS. SUCH GRANTS
SHALL BE AWARDED BASED ON A COMPANY'S POTENTIAL FOR COMMERCIALIZATION
AND JOB GROWTH. AS USED IN THIS SECTION, "SMALL BUSINESS" SHALL HAVE THE
SAME MEANING AS PROVIDED FOR IN SECTION ONE HUNDRED THIRTY-ONE OF THE
ECONOMIC DEVELOPMENT LAW.
2. THE MATCHING GRANT PROGRAM ESTABLISHED PURSUANT TO THIS SECTION
SHALL BE STAGED OVER A PERIOD OF THREE YEARS. THE FUNDING AMOUNTS FOR
SUCH GRANT PROGRAM SHALL BE AS FOLLOWS:
(A) FOR SMALL BUSINESSES THAT HAVE BEEN AWARDED PHASE ONE FUNDING
UNDER THE FEDERAL SMALL BUSINESS INNOVATION RESEARCH PROGRAM OR THE
SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM, THE AMOUNT SHALL BE ONE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03425-03-3
A. 4507--A 2
HUNDRED THOUSAND DOLLARS IN YEAR ONE, TWO HUNDRED THOUSAND DOLLARS IN
YEAR TWO, AND FIVE HUNDRED THOUSAND DOLLARS IN YEAR THREE.
(B) FOR SMALL BUSINESSES THAT HAVE BEEN AWARDED PHASE TWO FUNDING
UNDER THE FEDERAL SMALL BUSINESS INNOVATION RESEARCH PROGRAM OR THE
SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM, THE AMOUNT SHALL BE ONE
HUNDRED THOUSAND DOLLARS IN YEAR ONE, TWO HUNDRED THOUSAND DOLLARS IN
YEAR TWO, AND FIVE HUNDRED THOUSAND DOLLARS IN YEAR THREE.
3. (A) IN THE FIRST YEAR OF THE PROGRAM, TWENTY SMALL BUSINESSES SHALL
BE AWARDED GRANTS OF ONE HUNDRED THOUSAND DOLLARS.
(B) IN THE SECOND YEAR OF THE PROGRAM, TEN SMALL BUSINESSES SHALL BE
CHOSEN FROM THE COMPANIES THAT WERE AWARDED A GRANT IN THE FIRST YEAR,
TO RECEIVE GRANTS IN THE AMOUNT OF TWO HUNDRED THOUSAND DOLLARS.
(C) IN THE THIRD YEAR OF THE PROGRAM, FOUR SMALL BUSINESSES SHALL BE
CHOSEN FROM THE COMPANIES THAT WERE AWARDED A GRANT IN THE SECOND YEAR,
TO RECEIVE GRANTS OR EQUITY, DEPENDING ON THE SITUATION, IN THE AMOUNT
OF FIVE HUNDRED THOUSAND DOLLARS.
4. (A) SUCH FUNDS AWARDED PURSUANT TO THIS SECTION SHALL BE USED TO
EXPEDITE COMMERCIALIZATION AND GENERALLY USED TO COVER EXPENSES NOT
ALLOWED UNDER THE FEDERAL SMALL BUSINESS INNOVATION RESEARCH PROGRAM OR
THE SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM, INCLUDING BUT NOT LIMIT-
ED TO BUSINESS PLANNING, COMMERCIALIZATION, PATENTS AND MARKETING
STUDIES IN SALES EFFORTS.
(B) COMPANIES APPLYING TO THE FEDERAL PROGRAMS NAMED HEREIN SHALL
RECEIVE A COMMITMENT LETTER FROM THE CORPORATION THAT MAY BE INCLUDED
IN THEIR APPLICATIONS TO THE SMALL BUSINESS INNOVATION RESEARCH PROGRAM
OR THE SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM OR TO BE USED TO
SECURE GRANTS FROM OTHER FUNDING SOURCES. SUCH COMMITMENT LETTER SHALL
DEMONSTRATE CONTINGENT STATE SUPPORT, AND THEREFORE INCREASING THEIR
LIKELIHOOD OF RECEIVING FEDERAL FUNDING. STATE MATCHING GRANTS SHALL
ONLY BE PROVIDED TO SMALL BUSINESSES THAT ARE SELECTED FOR AN AWARD
THROUGH THE FEDERAL SMALL BUSINESS INNOVATION RESEARCH PROGRAM OR THE
SMALL BUSINESS TECHNOLOGY TRANSFER PROGRAM.
5. SUCH FUNDS SHALL BE AWARDED ON CONDITION THAT THE SMALL BUSINESS
RECIPIENT REMAINS HEADQUARTERED AND OPERATES OR MANUFACTURES IN THE
STATE FOR AT LEAST FIVE YEARS FOLLOWING THE SUCCESSFUL COMMERCIALIZATION
OF THE BUSINESS'S PRODUCT OR PRODUCTS. ANY SMALL BUSINESS THAT HAS
RECEIVED FUNDING UNDER THIS PROGRAM THAT IS NOT HEADQUARTERED AND OPER-
ATES OR MANUFACTURES IN THE STATE FOR AT LEAST FIVE YEARS FOLLOWING THE
SUCCESSFUL COMMERCIALIZATION OF THE BUSINESS'S PRODUCT OR PRODUCTS SHALL
RETURN ALL GRANT AWARDS TO THE STATE. IF THE SMALL BUSINESS CEASES OPER-
ATIONS BEFORE FIVE YEARS AFTER THE COMMERCIALIZATION OF ITS PRODUCT OR
PRODUCTS, SUCH BUSINESS SHALL BE ELIGIBLE FOR A WAIVER OF THIS CLAWBACK
PROVISION, AS DETERMINED BY THE CORPORATION, IN CONSULTATION WITH THE
DEPARTMENT OF ECONOMIC DEVELOPMENT'S DIVISION OF SMALL BUSINESS.
6. THE CORPORATION, IN CONSULTATION WITH THE DEPARTMENT OF ECONOMIC
DEVELOPMENT'S DIVISION FOR SMALL BUSINESS, SHALL ESTABLISH THE FORM AND
MANNER IN WHICH APPLICATIONS FOR GRANT AWARDS SHALL BE SUBMITTED AND
SHALL ESTABLISH GUIDELINES FOR THE GRANT PROGRAM. PREFERENCE FOR GRANT
AWARDS SHALL BE FOR APPLICANTS THAT CAN DEMONSTRATE TO THE SATISFACTION
OF THE CORPORATION THAT: (A) GREEN AND SUSTAINABLE DEVELOPMENT IS A
PRIORITY IN THEIR BUSINESS PLANNING, OPERATIONS OR MANUFACTURING. FOR
THE PURPOSES OF THIS SECTION, "GREEN AND SUSTAINABLE DEVELOPMENT" SHALL
MEAN A BUSINESS MODEL THAT PROMOTES THE USE OF PRODUCTS OR PRODUCT
COMPONENTS, MANUFACTURES, DEVELOPS TECHNOLOGIES OR PROCESSES THAT ARE
PRIMARILY TARGETED AT REDUCING GREENHOUSE GAS EMISSIONS OR SUPPORTING
THE USE OF CLEAN ENERGY IN A SOCIALLY EQUITABLE MANNER;
A. 4507--A 3
(B) SUCH GRANT AWARDEES' BUSINESS HEADQUARTERS AND OPERATIONS OR MANU-
FACTURING SHALL BE LOCATED IN NEW YORK STATE; AND
(C) GRANT AWARDEES SHALL CERTIFY TO THE CORPORATION THAT FUTURE
RESEARCH AND DEVELOPMENT SHALL BE PERFORMED PRINCIPALLY IN THIS STATE.
THE CORPORATION SHALL REVIEW EACH APPLICATION FOR COMPLIANCE WITH THE
ELIGIBILITY CRITERIA AND OTHER REQUIREMENTS SET FORTH IN THE PROGRAM
GUIDELINES ESTABLISHED BY THE COMMISSIONER. THE CORPORATION MAY APPROVE
OR REJECT EACH APPLICATION OR MAY RETURN AN APPLICATION FOR MODIFICA-
TIONS, IF NECESSARY.
7. THE CORPORATION, BEGINNING ON JUNE FIRST, TWO THOUSAND TWENTY-FOUR,
AND ANNUALLY THEREAFTER, PROVIDED PROGRAM FUNDS REMAIN, SHALL SUBMIT A
REPORT TO THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE
SPEAKER OF THE ASSEMBLY. SUCH ANNUAL REPORT SHALL INCLUDE, BUT NEED NOT
BE LIMITED TO: THE NUMBER OF APPLICANTS BY STAGE; THE NUMBER OF APPLI-
CANTS APPROVED TO RECEIVE GRANTS; THE TOTAL AMOUNT OF GRANTS AWARDED AND
THE AVERAGE AMOUNT OF SUCH GRANTS AWARDED; AND SUCH OTHER INFORMATION AS
THE CORPORATION DETERMINES NECESSARY AND APPROPRIATE. SUCH REPORT SHALL
BE INCLUDED ON THE CORPORATION'S WEBSITE AND ANY OTHER PUBLICLY ACCESSI-
BLE STATE DATABASES THAT LIST ECONOMIC DEVELOPMENT PROGRAMS, AS DETER-
MINED BY THE CORPORATION.
§ 2. This act shall take effect one year after it shall have become a
law. Effective immediately, the addition, amendment and/or repeal of any
rule or regulation necessary for the implementation of this act on its
effective date are authorized to be made and completed on or before such
effective date.