S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4053

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            February 26, 2015
                               ___________

Introduced  by  Sens.  GOLDEN,  GALLIVAN,  FUNKE,  GRIFFO,  RANZENHOFER,
  ROBACH, VALESKY -- read twice and ordered printed, and when printed to
  be committed to the Committee on Commerce,  Economic  Development  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04542-01-5
              

S. 4053                             2

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,
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.
  S  2.  The economic development law is amended by adding a new article
22 to read as follows:
                               ARTICLE 22
           THE NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL
         TRANSLATIONAL RESEARCH AND ENTREPRENEURSHIP INITIATIVE
SECTION 441. SHORT TITLE.
        442. DEFINITIONS.
        443. NEW YORK STATE BIOMEDICAL AND BIOTECHNOLOGICAL TRANSLATION-
               AL RESEARCH AND ENTREPRENEURSHIP INITIATIVE COMMITTEE.
        444. APPLICATION FOR DESIGNATION AS A NEW YORK STATE  BIOMEDICAL
               AND  BIOTECHNOLOGICAL  TRANSLATIONAL  RESEARCH AND ENTRE-
               PRENEURSHIP INITIATIVE CENTER.
        445. REVIEW AND APPROVAL OF APPLICATIONS.
        446. WAIVER IN CERTAIN CASES.
        447. OPERATION AND RE-DESIGNATION OF NEW YORK  STATE  BIOMEDICAL
               AND  BIOTECHNOLOGICAL  TRANSLATIONAL  RESEARCH AND ENTRE-
               PRENEURSHIP INITIATIVE CENTERS.
        448. SCIENTIFIC RESEARCH AND DISCOVERY BANK PROGRAM.
        449. UNIFIED CONTRACT.
  S 441. SHORT TITLE. THIS ARTICLE SHALL BE KNOWN AND MAY  BE  CITED  AS
THE  "NEW  YORK  STATE  BIOMEDICAL  AND  BIOTECHNOLOGICAL  TRANSLATIONAL
RESEARCH AND ENTREPRENEURSHIP INITIATIVE".
  S 442. 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.

S. 4053                             3

  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 FORTY-THREE OF THIS
ARTICLE.
  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.
  S  443.  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 FORTY-SEVEN OF THIS ARTICLE.
  (D) ESTABLISH A UNIFIED CONTRACT FOR PROJECTS PURSUANT TO SECTION FOUR
HUNDRED FORTY-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

S. 4053                             4

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.
  (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.
  S  444. 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

S. 4053                             5

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-
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.
  S  445.  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;

S. 4053                             6

  (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;
  (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  FORTY-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

S. 4053                             7

RECIPIENT AND STATE THE PROPOSED LOCATION, THE ESTIMATED PROJECT FUNDING
AND AWARD AND PROVIDE A BRIEF DESCRIPTION OF THE PROJECT.
  S  446.  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
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.
  S 447. 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.
  S 448. 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

S. 4053                             8

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
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.
  S  449.  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,

S. 4053                             9

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.
  S  3.  This  act  shall  take  effect  on  the first of September next
succeeding the date on which it shall have become a law.