S104-2013 Actions

• Jan 9, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S104-2013 Memo

BILL NUMBER:S104

TITLE OF BILL:
An act
to amend the New York state urban development corporation act,
in relation to recodification of
the small business innovation research program and the awards made
thereunder within the urban development corporation;
and to repeal section 3102-c of
the public authorities
law relating to the small business innovation research
program

PURPOSE:
This bill would recodify the Small Business Innovation Research
Program within the New York State Urban Development Corporation. This
bill would repeal � 3102-c of the Public Authorities Law.

SUMMARY OF PROVISIONS:
Section 1- Amends Chapter 174 of the Laws of 1968 by adding a new
section 46.

Section 2- Repeals � 3102-c of the Public Authorities Law.

Section 3- Effective date.

JUSTIFICATION:
The State Small Business Innovation Research (SBIR) Program, which
began in FY 1984-1985, was designed to provide assistance to New
York's newer high technology companies, helping them compete for a
greater share of the federal research contracts awarded under the
federal SBIR program. The State program was highly successful,
increasing the amount of federal SBIR dollars coming into the State
from under $5 million annually to over $30 million by 1991. As
importantly, State assistance under this program greatly increased
the success of federal SBIR Phase I award winners to compete for much
larger SBIR Phase II awards.

Although the State SBIR statute remains in effect, the State stopped
funding the program after its initial success, in part because of
disagreement over how to allocate limited funds among the federal
SBIR award winners. Consequently, New York State, which had moved
from 6th to 3rd place among the states in the number of Phase I
winners, has seen its number of state winners decrease dramatically
since funding for the State program ceased. This bill clarifies how
funds will be allocated so that the program can begin anew to assist
small high technology companies compete for federal SBIR funds which
will help them grow and provide new jobs for New York citizens.

LEGISLATIVE HISTORY:
2011-12: S.7257/A.3410-B Referred to Corporations, Authorities, and
         Commissions
2009-10: S.4434/A.4198 Referred to Ways and Means
2007-08: A.6149
2005-06: A.3443
2003-04: A.4766


2001-02: A.1070
1999-00: A.1304
1997-98: A.9404

FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

S104-2013 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          104
 2013-2014 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 9, 2013
 
 Introduced  by Sen. GALLIVAN -- read twice and ordered printed, and when
 printed to be committed to the Committee on Corporations,  Authorities
 and Commissions
 

AN ACT to amend the New York state urban development corporation act, in
 relation  to  recodification of the small business innovation research
 program and the awards made thereunder within  the  urban  development
 corporation;  and  to  repeal section 3102-c of the public authorities
 law relating to the small business innovation research 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 46 to read as follows:

 

S  46.  SMALL BUSINESS INNOVATION RESEARCH PROGRAM. 1. AS USED IN THIS
 SECTION, THE FOLLOWING TERMS HAVE THE FOLLOWING MEANINGS:

 (A) "SMALL BUSINESS INNOVATION RESEARCH PROGRAM" OR "SBIR" MEANS  THAT
 PROGRAM,  ENACTED  PURSUANT TO THE SMALL BUSINESS INNOVATION DEVELOPMENT
 ACT OF 1982 (P.L. 97-219), WHICH PROVIDES FUNDS TO SMALL  BUSINESSES  TO
 CONDUCT INNOVATIVE RESEARCH HAVING COMMERCIAL APPLICATION.
 (B) "SMALL BUSINESS" MEANS A CORPORATION, PARTNERSHIP, LIMITED LIABIL
 ITY  COMPANY,  SOLE  PROPRIETORSHIP, OR INDIVIDUAL, OPERATING A BUSINESS
 FOR PROFIT, WITH TWO HUNDRED FIFTY EMPLOYEES OR FEWER, INCLUDING EMPLOY
 EES EMPLOYED IN ANY SUBSIDIARY OR AFFILIATED CORPORATION OR OTHER  ENTI
 TY, WHICH OTHERWISE MEETS THE REQUIREMENTS OF THE FEDERAL SMALL BUSINESS
 INNOVATION RESEARCH PROGRAM.
 2.  (A)  WITHIN  THIRTY  DAYS  OF THE PUBLIC ANNOUNCEMENT OF THE SMALL
 BUSINESS INNOVATION RESEARCH PROGRAM PHASE I AWARD WINNERS BY THE APPRO
 PRIATE FEDERAL AGENCY, THE CORPORATION SHALL CONTACT ALL PHASE  I  AWARD
 RECIPIENTS  WHOSE  PRINCIPAL PLACE OF BUSINESS IS LOCATED IN THIS STATE,
 PROVIDE THEM WITH INFORMATION CONCERNING THE PROGRAM AUTHORIZED PURSUANT
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD01966-01-3
 
       S. 104                              2
 TO THIS SECTION, AND ADVISE THEM OF THE REQUIREMENTS  RELATING  THERETO.
 ANY  SUCH RECIPIENT, AT LEAST THIRTY DAYS PRIOR TO THE COMPLETION OF ITS
 SBIR PHASE I GRANT PERIOD, MAY, AT ITS DISCRETION, SUBMIT TO THE  CORPO
 RATION A NOTICE OF ITS DESIRE TO SECURE RESEARCH FUNDING PURSUANT TO THE
 PROVISIONS  OF  THIS  SECTION, ALONG WITH A COPY OF ITS ORIGINAL FEDERAL
 SBIR PROPOSAL AND SUCH ADDITIONAL INFORMATION  AS  THE  CORPORATION  MAY
 REQUIRE  TO  ASSIST  IT IN DETERMINING THE ELIGIBILITY OF SUCH RECIPIENT
 FOR THIS PROGRAM.
 (B) IN ADDITION TO RECEIPT OF AN SBIR AWARD, ANY SMALL BUSINESS  SHALL
 MEET THE FOLLOWING CRITERIA:

 I.  SUCH SMALL BUSINESS'S PRINCIPAL PLACE OF BUSINESS SHALL BE LOCATED
 IN THIS STATE;
 II. SUCH  SMALL  BUSINESS  SHALL  CERTIFY  THAT  THE  RESEARCH  TO  BE
 CONDUCTED WILL BE PERFORMED SOLELY IN THIS STATE;
 III. NO MONEYS SHALL BE EXPENDED FOR TRAVEL, EQUIPMENT, OR FACILITIES;
 AND
 IV.  NOT  MORE  THAN  ONE-THIRD OF ANY MONEYS AWARDED TO A FIRM BY THE
 FOUNDATION MAY BE  USED  TO  CONTRACT  FOR  RESEARCH  OR  OTHER  RELATED
 SERVICES.
 (C) UPON A FINDING BY THE CORPORATION THAT: (I) A PHASE I AWARD RECIP
 IENT WHOSE PRINCIPAL PLACE OF BUSINESS IS IN NEW YORK HAS SATISFACTORILY
 MET ALL THE REQUIREMENTS OF THIS SECTION AND ANY ADDITIONAL REQUIREMENTS
 THE  CORPORATION  MAY  DEEM  NECESSARY; PROVIDED, HOWEVER, THAT ANY SUCH
 ADDITIONAL REQUIREMENTS SHALL NOT ARBITRARILY EXCLUDE A PARTICULAR GROUP
 OR GROUPS OF TECHNOLOGIES OR COMPANIES; AND (II) THE RESEARCH  CONDUCTED
 MAY RESULT IN THE DEVELOPMENT OF INNOVATIVE TECHNOLOGY HAVING THE POTEN
 TIAL  TO LEAD TO COMMERCIALIZATION OR FABRICATION WITHIN NEW YORK OF NEW
 OR IMPROVED PRODUCTS, PROCESSES,  OR  SERVICES,  THE  CORPORATION  SHALL
 NOTIFY  SUCH  SMALL  BUSINESS  THAT  IT  WILL  AWARD THE FIRM A RESEARCH
 CONTRACT. SUCH CONTRACT SHALL BE COMPATIBLE WITH AND A  CONTINUATION  OF
 THE  RESEARCH  TO  BE  PERFORMED  UNDER THE SBIR CONTRACT AWARDED BY THE
 FEDERAL AGENCY INVOLVED AND SHALL BE  CALCULATED  AS  FOLLOWS:  (I)  THE
 AMOUNT OF EACH CONTRACT SHALL EQUAL THE AMOUNT OF THE FEDERAL SBIR AWARD
 OR  FIFTY  THOUSAND  DOLLARS, WHICHEVER IS LESS; PROVIDED, HOWEVER, THAT
 THE TOTAL AMOUNT OF ALL SUCH  CONTRACTS  SHALL  NOT  EXCEED  THE  AMOUNT
 APPROPRIATED  FOR  THIS  PURPOSE,  OR  (II) IN THE EVENT THAT THE TOTAL,
 POSSIBLE, MAXIMUM AMOUNT OF ALL CONTRACTS, SUCH TOTAL, POSSIBLE, MAXIMUM
 AMOUNT CALCULATED ON THE BASIS OF MATCHING EACH FEDERAL SBIR AWARD IN AN
 AMOUNT EQUAL TO THE AMOUNT OF SUCH AWARD,  OR  FIFTY  THOUSAND  DOLLARS,
 WHICHEVER  IS  LESS,  EXCEEDS  THE  TOTAL  AMOUNT  APPROPRIATED FOR THIS
 PURPOSE, THE AMOUNT OF EACH CONTRACT SHALL BE REDUCED BY A  RATIO  EQUAL
 TO THE AMOUNT APPROPRIATED FOR THIS PURPOSE DIVIDED BY THE TOTAL, POSSI
 BLE, MAXIMUM AMOUNT OF ALL CONTRACTS TO BE AWARDED.
 (D)  THE  CORPORATION  SHALL  ESTABLISH  RULES AND REGULATIONS FOR THE
 SMALL BUSINESS INNOVATION RESEARCH PROGRAM,  INCLUDING  AWARD  SELECTION
 CRITERIA,  WHICH  SHALL  SERVE AS THE BASIS FOR AWARDS FUNDED UNDER THIS
 PROGRAM.
 3. THE CORPORATION SHALL NOT DISBURSE ANY MONEYS TO A  SMALL  BUSINESS
 UNTIL:

 (A) SUCH SMALL BUSINESS HAS COMPLETED ITS SBIR PHASE I RESEARCH;
 (B) ITS FINAL PHASE I REPORT WITH RESPECT THERETO HAS BEEN ACCEPTED BY
 THE FEDERAL AGENCY INVOLVED;
 (C)  ITS PHASE II RESEARCH PROPOSAL HAS BEEN PROPERLY SUBMITTED TO THE
 FEDERAL AGENCY INVOLVED; AND
 (D) IT HAS SUBMITTED COPIES OF ITS FINAL PHASE I REPORT AND ITS  PHASE
 II PROPOSAL TO THE CORPORATION.
 
       S. 104                              3
 4.  CONSISTENT WITH FEDERAL SBIR PROCEDURES, THE CORPORATION SHALL NOT
 DISCLOSE PROPRIETARY INFORMATION WHEN REQUESTED NOT TO DO SO BY  PARTIC
 IPANTS IN THIS PROGRAM.
 5. THE CORPORATION SHALL ANNUALLY SUBMIT A REPORT TO THE GOVERNOR, THE
 TEMPORARY  PRESIDENT  OF  THE  SENATE,  AND  THE SPEAKER OF THE ASSEMBLY
 DETAILING THE RESULTS OF THE PROGRAM, INCLUDING BUT NOT LIMITED  TO  THE
 NUMBER OF NEW YORK SMALL BUSINESSES APPLYING FOR SBIR AWARDS, THE NUMBER
 RECEIVING  PHASE  I  AWARDS,  THE  NUMBER RECEIVING PHASE II AWARDS, ANY
 PRODUCTS OR PROCESSES  DEVELOPED  AS  A  RESULT  OF  THE  SBIR  RESEARCH
 INVOLVED,  ANY PATENTS APPLIED FOR OR LICENSES GRANTED BASED ON THE SBIR
 RESEARCH INVOLVED, AN ABSTRACT OF THE SBIR PHASE I AND II WORK PERFORMED
 BY NEW YORK FIRMS, AND ANY OTHER INFORMATION PERTINENT IN EVALUATING THE
 PROGRAM.
 6. THE CORPORATION SHALL CONDUCT A PROGRAM TO INFORM SMALL  BUSINESSES
 OF  THE FEDERAL SBIR PROGRAM AND THIS NEW YORK STATE PROGRAM IN ORDER TO
 ENSURE THAT ALL FIRMS HAVE  THE  OPPORTUNITY  TO  PARTICIPATE  IN  THESE
 PROGRAMS.
 7.  THE  CORPORATION SHALL FACILITATE AND PROMOTE THE ESTABLISHMENT OF
 JOINT SMALL BUSINESS-UNIVERSITY TECHNOLOGY COUNCILS AT THE  CENTERS  FOR
 ADVANCED  TECHNOLOGY  AND  OTHER  UNIVERSITIES  WITHIN THE STATE WHEREBY
 SMALL FIRMS AND UNIVERSITY EXPERTS CAN FACILITATE THE TRANSFER OF  TECH
 NOLOGY  AND  WORK  TOGETHER  ON  RESEARCH  PROJECTS  RELATED TO THE SBIR
 PROGRAM OR OTHER RESEARCH PROJECTS OF MUTUAL INTEREST.
 8. THE PROVISIONS OF THIS SECTION SHALL BE EFFECTIVE IF, AND  AS  LONG
 AS,  FEDERAL  FINANCIAL  PARTICIPATION IS AVAILABLE THEREFOR PURSUANT TO
 THE SMALL BUSINESS INNOVATION DEVELOPMENT ACT OF 1982.
 

S 2.

Section 3102-c of the public authorities law is REPEALED.
 

S 3. This act shall take effect immediately.

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