Relates to establishing the state university commercialization facilities use policy.
TITLE OF BILL: An act to amend the education law, in relation to establishing the state university commercialization facilities use policy
PURPOSE: To codify state university facilities use policy for the purposes of encouraging commercialization activity on campuses.
SUMMARY OF PROVISIONS: University facilities may be used by private firms for the purposes of commercializing new technologies. The cost of the use of university space may be met with user fees, other non university resources or equity share in the applicant firm. The policy permits companies to retain intellectual property rights under these circumstances. The effectiveness of the policy will be evaluated annually.
Amends section 355 of the education law by adding a new subdivision 3-a.
JUSTIFICATION: The state university system is one of the great sources for innovation in the state. The majority of licensed SUNY technologies need continued development in order to be made into a product or service for public consumption. SUNY can ensure that those development dollars stay in New York through programs that leverage use of its facilities and equipment in consideration for equity in New York based startup companies that license SUNY technology.
Companies often apply for access to university facilities to perform development work, working side-by-side with SUNY researchers to solve practical barriers to commercialization. However, SUNY must recover the costs associated with the company's use of its facilities and research, and development dollars are scarce. An equity-based facilities access program will allow SUNY to open its doors and meet the research and development needs of New York based startups, SUNY can accept an equity position valued at the cash equivalent of its cost to provide access to a given facility or equipment.
R&D assistance is a major incentive to entrepreneurs to create companies around SUNY technology and locate in New York to gain access to SUNY's state-of-the-art facilities and equipment. With this program, SUNY can make New York an even more attractive entrepreneurial environment and retain high growth companies.
LEGISLATIVE HISTORY: New legislation.
EFFECTIVE DATE: Immediately.
STATE OF NEW YORK ________________________________________________________________________ 7154 IN SENATE May 1, 2012 ___________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 establishing the state university commercialization facilities use policy THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 355 of the education law is amended by adding a new subdivision 3-a to read as follows: 3-A. A. THE STATE UNIVERSITY MAY MAKE AVAILABLE FACILITIES RELATED TO THE COMMERCIALIZATION OF NEW TECHNOLOGIES AS AUTHORIZED BY THE CHANCEL- LOR IN CONSULTATION WITH STATE UNIVERSITY CAMPUSES. B. COSTS ASSOCIATED WITH THE USE OF THESE FACILITIES MAY BE PAID FROM USER FEES, OR FROM OTHER NON-UNIVERSITY RESOURCES, OR IN THE FORM OF EQUITY SHARES IN THE COMPANY. STATE FUNDS MAY BE MADE AVAILABLE TO OFFSET OVERHEAD COSTS AS EQUITY HOLDINGS MATURE AND EVENTUALLY ARE LIQUIDATED. C. COMPANIES, INCLUDING THEIR EMPLOYEES AND CONSULTANTS FROM OUTSIDE THE STATE UNIVERSITY WHO UTILIZE UNIVERSITY FACILITIES UNDER THIS POLI- CY, MAY RETAIN OWNERSHIP OF ALL PATENTABLE INVENTIONS AND DISCOVERIES. D. THE TRUSTEES SHALL PROMULGATE ANY RULES AND REGULATIONS NECESSARY TO CARRY OUT THIS PROGRAM, 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.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD14849-02-2