Bill S1654-2013

Relates to the innovation and commercialization functions of state universities

Relates to the innovation and commercialization functions of the state university.

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  • Jan 8, 2014: REFERRED TO HIGHER EDUCATION
  • Jan 9, 2013: REFERRED TO HIGHER EDUCATION

Memo

BILL NUMBER:S1654

TITLE OF BILL: An act to amend the education law, in relation to the innovation and commercialization functions of the state university

PURPOSE: Establish commercialization development programs within the state university system to help strengthen its capacity to innovate and commercialize technology.

SUMMARY OF PROVISIONS: A technology accelerator fund is created to help support efforts by individual researchers on state university campuses to transform research discoveries into marketable technologies, products or processes to be commercialized or manufactured in New York State. The chancellor is charged with establishing a peer review process for awarding applicants. Awards would be limited to $100,000 and would be used to help meet the costs of prototyping and other expenses related to developing new technologies.

An Entrepreneurship in Residence (EIR) program would be created at selected technology transfer hubs within the university system. The EIR would be a proven entrepreneur and would assist campuses with the necessary steps in commercializing new technologies. The university would annually evaluate the impact of these programs on the system's commercialization efforts.

Amends Education Law by adding a new section, 355-D.

JUSTIFICATION: The State University of New York is one of great engines of innovation in New York. It has advanced several proposals worthy of support to strengthen the State's intellectual infrastructure for innovation including:

1) The SUNY Technology Accelerator Fund (TAF). A barrier to the commercialization of university technology is the lack of funding for promising technologies after sponsored support ends and before the technology is mature enough for conventional commercial investment. When basic research funding ends, further evaluation and "proof-of-concept" is often necessary to establish that a new technology is commercially viable.

The SUNY Technology Accelerator Fund demonstration project initially funded five projects in June 2011 , supporting new diagnostic tools, cutting edge electronic devices and innovative technologies in the fields of nano-bioscience, energy and biotechnology. Additional funding for this successful program would help SUNY support more researchers in their commercialization efforts.

2) The SUNY Entrepreneur-in-Residence Program (E1R). EIR programs are widely adopted today both by universities and venture capital firms as a means to bring experienced management to the challenge of commercializing a new, promising technology. Universities utilize

EIRs to help select high potential startup technologies and to develop the business and company launch plans. EIRs are also used to provide entrepreneurial experience and mentoring to a first time company founder, which increases the probability that an enterprise will be successful.

Through the SUNY EIR program, entrepreneurs with proven subject matter expertise and management experience will work with aspiring entrepreneurs at SUNY campuses across the state to identify the best ideas and most promising business opportunities and help map them to sources of funding and leadership talent so they may grow to full scale. The program will focus on SUNY's strengths in key research areas, such as energy and healthcare and work in concert with other SUNY programs.

An additional enhancement to a SUNY EIR program is the integration of SUNY's management and law graduate students who will help with market research and business plan development, intellectual property strategy and corporate legal structure, thereby fostering and training a new generation of entrepreneurs.

LEGISLATIVE HISTORY: 2012 S.7093.

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 1654 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend the education law, in relation to the innovation and commercialization functions of the state university THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The education law is amended by adding a new section 355-d to read as follows: S 355-D. THE POWER AND DUTIES OF TRUSTEES - INNOVATION AND COMMERCIAL- IZATION FUNCTIONS. 1. THE TRUSTEES ARE AUTHORIZED TO ESTABLISH AND SUPPORT THE NECESSARY PROGRAMS FOR THE RESEARCH, DEVELOPMENT AND COMMER- CIALIZATION OF NEW TECHNOLOGIES WITHIN THE STATE UNIVERSITY TO BENEFIT THE PEOPLE OF THE STATE OF NEW YORK. SUCH PROGRAMS SHALL INCLUDE OPPOR- TUNITIES FOR COLLABORATION AND COOPERATION WITH OTHER ACADEMIC RESEARCH INSTITUTIONS WHENEVER PRACTICABLE. 2. STATE UNIVERSITY TECHNOLOGY ACCELERATOR FUND. (A) THE STATE UNIVER- SITY TECHNOLOGY ACCELERATOR FUND IS HEREBY CREATED TO SUPPORT EFFORTS BY INDIVIDUAL RESEARCHERS ON STATE UNIVERSITY CAMPUSES TO TRANSFORM RESEARCH DISCOVERIES INTO MARKETABLE TECHNOLOGIES, PRODUCTS OR PROCESSES TO BE COMMERCIALIZED OR MANUFACTURED IN NEW YORK STATE. (B) THE TRUSTEES SHALL ESTABLISH A PEER-REVIEW PROCESS FOR THE PURPOSE OF REVIEWING APPLICATIONS FOR AWARDS. AWARDS MAY BE USED TO BUILD AND TEST PROTOTYPES AND FOR OTHER COSTS AS DETERMINED BY THE STATE UNIVERSI- TY ASSOCIATED WITH EARLY STAGES OF COMMERCIALIZATION. (C) ANY STATE FUNDS MADE AVAILABLE FOR THIS PROGRAM SHALL BE MATCHED ON A ONE TO ONE (1:1) BASIS WITH NON-STATE FUNDS. (D) GRANTS SHALL NOT EXCEED ONE HUNDRED THOUSAND DOLLARS FOR ANY INDI- VIDUAL AWARD, AND SHALL BE AWARDED ON AN ANNUAL BASIS.
3. THE STATE UNIVERSITY OF NEW YORK ENTREPRENEUR-IN-RESIDENCE PROGRAM. (A) THE STATE UNIVERSITY OF NEW YORK ENTREPRENEUR-IN-RESIDENCE PROGRAM IS HEREBY CREATED WITHIN THE STATE UNIVERSITY. (B) THE TRUSTEES MAY DESIGNATE ENTREPRENEURS-IN-RESIDENCE AT UNIVERSI- TY AND COLLEGE CAMPUSES, HEREAFTER REFERRED TO AS THE "EIR," UPON CONSULTATION WITH THE TECHNOLOGY TRANSFER STAFF AT THE CAMPUSES, FOR THE PURPOSES OF IDENTIFYING AND EXTRACTING PROMISING TECHNOLOGIES. (C) QUALIFICATIONS FOR THE POSITION OF EIR SHALL BE DETERMINED BY THE STATE UNIVERSITY UPON RECOMMENDATION BY EACH INSTITUTION AND SHALL INCLUDE SIGNIFICANT, SUCCESSFUL PRIVATE SECTOR EXPERIENCE WITH BUSINESS START-UPS. (D) POSITIONS SHALL BE HELD FOR THREE-YEAR PERIODS AND MAY BE RENEWED. (E) THE EIR SHALL ASSIST THE INSTITUTIONS PERFORMING THE FOLLOWING COMMERCIALIZATION-RELATED TASKS: (I) IDENTIFYING INDUSTRY-SPECIFIC MARKET/START-UP OPPORTUNITIES BASED ON UNIVERSITY TECHNOLOGIES; (II) DEVELOPING OPPORTUNITY ASSESSMENTS; (III) ORGANIZING PRE-SEED WORKSHOPS; (IV) CREATING BUSINESS PLANS; (V) DEVELOPING BUSINESS STRUCTURE PROPOSALS FOR START-UP ENTERPRISES; (VI) NEGOTIATING THE UNIVERSITY LICENSE. (F) EIRS SHALL SELECT PROJECTS THAT HAVE THE MOST PROMISE FOR FUNDING BASED ON COMMERCIAL FEASIBILITY AND SHALL PROVIDE ASSISTANCE FOR FACULTY AND STAFF WITH BUSINESS PLANS AND MANAGEMENT STRATEGIES OF SELECTED PROJECTS AS WELL AS DEVELOP A PROOF-OF-CONCEPT PROJECT PLAN AND PREPARE A PROPOSAL FOR FUNDING. (G) EIRS SHALL PROVIDE ASSISTANCE TO ALL CAMPUSES THROUGHOUT THE STATE AS DIRECTED UNDER THE PROGRAM. (H) ANY FUNDS MADE AVAILABLE FOR THIS PROGRAM SHALL BE MATCHED ON A ONE TO ONE (1:1) BASIS WITH CASH OR IN-KIND RESOURCES FROM EACH CAMPUS WHERE THE EIR IS LOCATED OR BY THE STATE UNIVERSITY. 4. THE TRUSTEES SHALL PROMULGATE ANY RULES AND REGULATIONS NECESSARY TO CARRY OUT THIS SECTION AND ON AN ANNUAL BASIS SHALL EVALUATE AND REPORT ON THE IMPACT OF THIS PROGRAM ON COMMERCIALIZATION ACTIVITY AND OUTCOMES IN NEW YORK STATE. S 2. This act shall take effect immediately.

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