Bill Text: NY A00045 | 2019-2020 | General Assembly | Introduced


Bill Title: Establishes the New York state innovation voucher program; provides small businesses with access to research and development by colleges and universities, government laboratories and public research institutes in order to assist such businesses in the creation of innovative products or services.

Spectrum: Slight Partisan Bill (Democrat 9-5)

Status: (Introduced) 2020-01-08 - referred to small business [A00045 Detail]

Download: New_York-2019-A00045-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           45
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by  M.  of  A.  BUCHWALD,  RODRIGUEZ,  FAHY, LAVINE, MOSLEY,
          STIRPE, RIVERA, BENEDETTO, RAIA, GOODELL, STERN -- Multi-Sponsored  by
          --  M.  of  A.    CROUCH,  PALMESANO  -- read once and referred to the
          Committee on Small Business
        AN ACT to amend the urban development corporation act,  in  relation  to
          establishing the New York state innovation voucher program
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "New York state innovation voucher program act".
     3    §  2.  Section  1 of chapter 174 of the laws of 1968, constituting the
     4  New York state urban development corporation act, is amended by adding a
     5  new section 16-bb to read as follows:
     6    § 16-bb. New York state innovation voucher program. (1) Program estab-
     7  lished. There is hereby established a New York state innovation  voucher
     8  program  under  the purview of the empire state development corporation.
     9  Such program shall provide small businesses with access to research  and
    10  development  by  colleges  and universities, government laboratories and
    11  public research institutes in order to assist  such  businesses  in  the
    12  creation  of  innovative products or services that provide job retention
    13  and expansion.
    14    (2) Definitions. For the purposes of this section, the following terms
    15  shall have the following meanings:
    16    (a) "Eligible recipient" shall mean small  businesses  as  defined  in
    17  section one hundred thirty-one of the economic development law.
    18    (b)  "Eligible  projects"  for  vouchers  authorized  pursuant to this
    19  section shall mean research and development projects  leading  to  inno-
    20  vation of products or services. Eligible costs shall include, but not be
    21  limited to, the development of prototypes, field testing, engineering or
    22  other  projects authorized by the corporation that enhance innovation of
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00934-01-9

        A. 45                               2
     1  products or services that result in job growth  and  business  expansion
     2  within the state.
     3    (c) "Ineligible expense" shall mean reimbursement of time spent by the
     4  employees  or owners of the small business; grant or voucher application
     5  costs; routine and readily-predictable  business  expenses;  design  and
     6  production  of  marketing  or  advertising materials; basic professional
     7  services such as ongoing routine  accounting,  tax  or  legal  services;
     8  building  or  equipment  construction  costs; financing fees; travel and
     9  entertainment costs; hospitality costs; and any  other  expenses  deemed
    10  ineligible by the corporation.
    11    (d)  "Research and development partner" shall mean colleges, universi-
    12  ties, state and national government laboratories,  and  public  research
    13  institutes in New York state.
    14    (e)  "Exceptionally  innovative  projects"  shall  mean  projects that
    15  demonstrate a potential for substantial economic growth and job develop-
    16  ment in an emerging technology field, as  defined  by  the  corporation,
    17  through the promulgation of rules and regulations, as emerging technolo-
    18  gy  fields  from  those  fields listed in subparagraphs one, two, three,
    19  four and five of paragraph (b) of subdivision one of section  thirty-one
    20  hundred two-e of the public authorities law.
    21    (3) Selection of eligible recipients. (a) Eligible recipients shall be
    22  selected  by  the  corporation based on the strength of their proposals,
    23  including evaluation of the innovative nature of the project, its  tech-
    24  nical  feasibility, commercial viability and the potential impact on the
    25  retention and creation of new jobs.
    26    (b) Small businesses may identify desired or  potential  research  and
    27  development  partners  as  part  of their applications. Advance determi-
    28  nations of the business' research and development partner shall not be a
    29  requirement for receipt of an innovation voucher.
    30    (c) Applications shall be judged by an advisory committee, or regional
    31  advisory committee,  appointed  by  the  president  of  the  corporation
    32  consisting  of  members of the higher education, science and technology,
    33  and business communities.
    34    (4) Research and development partners. The corporation shall  identify
    35  a  list of potential research and development partners in New York state
    36  that have appropriate facilities and resources  to  participate  in  the
    37  innovation  voucher  program  and  are  willing  to accept vouchers from
    38  eligible recipients for payment of their services. The list of potential
    39  research and development partners  shall  be  displayed  on  the  corpo-
    40  ration's website, and shall be reviewed and revised at least quarterly.
    41    (5)  Vouchers and matching funds. (a) The corporation, upon the recom-
    42  mendation of the advisory committee, may award vouchers up to ten  thou-
    43  sand  dollars  for each eligible project. Upon the recommendation of the
    44  advisory committee, the corporation may award a voucher in an amount  up
    45  to  fifty thousand dollars where a project is deemed exceptionally inno-
    46  vative. Criteria for determination of awards shall be established by the
    47  corporation in rules and regulations. Eligible  recipients  shall  match
    48  the  value  of  the voucher on a dollar-for-dollar basis and shall apply
    49  such amount to the voucher-funded project.
    50    (b) If an applicant is approved by the corporation for a voucher based
    51  on the merits of an eligible project, such eligible recipient  shall  be
    52  authorized  to  enter  into  a  working  agreement  with the appropriate
    53  research and development partner. The eligible  recipient  shall  notify
    54  the corporation of the research and development partner collaboration to
    55  be  formed  to  further research and development. Payment of the voucher
    56  shall be made based on a payment structure  established  by  the  corpo-

        A. 45                               3
     1  ration  in rules and regulations promulgated pursuant to section four of
     2  this act to administer a collaboration.
     3    (6)  Outreach.  To  ensure maximum awareness of the innovation voucher
     4  program, the corporation shall develop and implement a plan  to  dissem-
     5  inate  information  and materials to small businesses, including but not
     6  limited to minority- and women-owned enterprises and veteran-owned busi-
     7  nesses.
     8    (7) Reports. The corporation shall post quarterly reports stating: the
     9  number and monetary value of vouchers  issued;  the  amount  of  program
    10  funding  used  for  the  vouchers; the recipient of the the vouchers and
    11  research and development partner; and any other appropriate  metrics  to
    12  measure  the  success  of the program, including but not limited to, the
    13  number of jobs created or retained, the number of patents produced as  a
    14  result  of  the collaboration, a description of the economic development
    15  impact and such other information as the corporation may deem necessary.
    16  Such quarterly reports shall also include a  list  of  current  advisory
    17  committee  members  and a list of current research and development part-
    18  ners approved by the corporation.
    19    (8) Funding. The corporation is authorized, within available appropri-
    20  ations in the empire state  development  fund  established  pursuant  to
    21  section  sixteen-m  of this act or from any other funds appropriated, to
    22  make innovative vouchers available to eligible recipients.
    23    § 3. Subdivision 1 of section 16-m of section 1 of chapter 174 of  the
    24  laws  of  1968, constituting the New York state urban development corpo-
    25  ration act, is amended by adding a new paragraph (o) to read as follows:
    26    (o) Vouchers to eligible entities as set forth in  section  sixteen-bb
    27  of  this act to support the New York state innovation voucher program to
    28  assist small business access to research and development by colleges and
    29  universities, government laboratories and public research institutes  to
    30  support  such  businesses  in  the  creation  of  innovative products or
    31  services.
    32    § 4. Rules and regulations. The empire state  development  corporation
    33  is authorized to promulgate rules and regulations in accordance with the
    34  state  administrative  procedure  act  that are necessary to fulfill the
    35  purposes of this act. Such rules  and  regulations  shall  be  completed
    36  within one hundred eighty days after the effective date of this act.
    37    § 5. This act shall take effect on the one hundred eightieth day after
    38  it  shall  have  become a law; provided, however, that the amendments to
    39  subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of
    40  1968, constituting the New York state urban development corporation act,
    41  made by section three of this act shall not  affect  the  expiration  of
    42  such section and shall be deemed to expire therewith; provided, further,
    43  that  any  rules and regulations necessary for the timely implementation
    44  of this act on its effective date may be promulgated on or  before  such
    45  effective date.
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