S04078 Summary:

SAME ASNo same as
Add S16-v, UDC Act
Enacts the New York state business incubator support act to develop financially stable successful firms by providing a comprehensive array of entrepreneurial supports, resources, and services, including management guidance, technical assistance, consulting, mentoring, education, networking opportunities, and access to capital and markets, tailored to the individual needs of the business entities being incubated.
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S04078 Text:

                STATE OF NEW YORK
                               2013-2014 Regular Sessions
                    IN SENATE
                                      March 7, 2013
          MAZIARZ, RANZENHOFER,  SEWARD,  VALESKY,  ZELDIN  --  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 the New York state small business incubator support act
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section  1.  Legislative  findings  and intent. The legislature hereby
     2  finds and declares that the path to prosperity and the economic recovery
     3  of New York state lies in job creation and in broadening economic choice
     4  and career opportunities for  all  citizens  of  this  state,  and  that
     5  achieving  these  goals  can  be  accelerated  by the enhancement of the
     6  state's innovation and entrepreneurial spirit via the growth and  devel-
     7  opment  of  business  incubator  programs  that provide entrepreneurial,
     8  economic, and business development support and resources.
     9    The legislature further finds that the goal and  purpose  of  business

    10  incubation  programs  that  include  physical space or are virtual incu-
    11  bation programs is to develop financially  stable  successful  firms  by
    12  providing  a comprehensive array of entrepreneurial supports, resources,
    13  and  services,  including  management  guidance,  technical  assistance,
    14  consulting,  mentoring,  education,  networking opportunities, access to
    15  capital and markets, tailored to the individual needs  of  the  business
    16  entities being incubated.
    17    The  legislature further finds that the concept of business incubation
    18  and business development programs originated in New York  in  1959  when
    19  Joseph Mancuso opened the Batavia Industrial Center in a Batavia factory
    20  building,  a  concept that has since spread from New York throughout the
    21  country and the world, to the extent that there  are  now  an  estimated
    22  1,400 incubators in North America, and 7,000 in the world.

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

        S. 4078                             2
     1    The  legislature  further  finds  that it has been conclusively demon-
     2  strated that firms originating and graduating  from  a  New  York  state
     3  incubator  program  have  a  markedly  better chance of remaining in and
     4  expanding employment opportunities in New York state compared  to  firms
     5  that  begin outside an incubator environment, that entrepreneurial coun-
     6  seling and mentoring has a significant positive effect on  firm  growth,
     7  development,  and  sustainability,  and that research has shown that the
     8  success of business incubation programs and the  resulting  intensifica-

     9  tion  of  the  entrepreneurial  ethos  in  an  area can often rise above
    10  regional economic conditions, so long as high level in-incubator factors
    11  are maintained, such as qualified staff, program  comprehensiveness  and
    12  integration, adherence to best practices, the extent of participation by
    13  client entrepreneurs in the program, and the vitality and composition of
    14  the advisory board.
    15    The  legislature  further  finds  that  these  important  programs are
    16  supported by a mixed variety of local sponsorships, public  and  private
    17  foundation grants, rental and program fee revenues, and other sources of
    18  funds,  many  of them short-term and unstable, and that such instability
    19  can act as a barrier that stifles the ability of the business incubation
    20  program to meet its goals  and  achieve  maximum  effectiveness  in  job
    21  creation and economic impact.

    22    The legislature further declares that any incubator support program to
    23  be  successful shall require metrics of incubators that requires that in
    24  order to retain designation, such incubators must provide  evidence  for
    25  evaluation  of the relative success of their programs, allow for compar-
    26  ison of program effectiveness  to  other  programs  similarly  composed,
    27  targeted, and situated, provide evidence of program and service quality,
    28  demonstrate  the value provided to clients, demonstrate continued imple-
    29  mentation of best practices, and assure that the  program  continues  to
    30  meet the requirements for designation.
    31    The  legislature therefore declares that it is in every respect appro-
    32  priate public policy to provide support for incubators in New York, as a
    33  means of increasing economic opportunity and choice to the  citizens  of

    34  this  state,  maintaining  high  standards  for incubation programs, and
    35  building and expanding the economy of this state.
    36    § 2. Section 1 of chapter 174 of the laws of  1968,  constituting  the
    37  New York state urban development corporation act, is amended by adding a
    38  new section 16-v to read as follows:
    39    §  16-v.  New  York  state business incubator support act. 1. New York
    40  state incubators. The corporation  shall  designate  programs  which  on
    41  application  meet the requirements of subdivision two of this section as
    42  New York state  incubators,  and  shall  provide  support  and  services
    43  described  in this section or which as may otherwise be available by and
    44  through the corporation or, assisted by  the  commissioner  of  economic

    45  development and in consultation with the department of economic develop-
    46  ment,  by  and through the department of economic development. "New York
    47  state incubator" shall mean a business  incubation  program  which  also
    48  provides  physical  space  or which is a virtual incubation program that
    49  has been designated upon application by the corporation as  a  New  York
    50  state  incubator  pursuant  to  this  section  and which thereby becomes
    51  eligible for benefits, support, services, and programs available  pursu-
    52  ant to such designation.
    53    2. Requirements for designation. A program wishing to be designated as
    54  a  New  York state incubator pursuant to this section shall have been in
    55  existence as a program with, in, or as the current organization  for,  a

    56  period  of at least three fiscal years prior to the current fiscal year,

        S. 4078                             3
     1  or demonstrate continuity of staffing, program, and  purpose  showing  a
     2  continuation of the program through another auspice or governing entity,
     3  and  shall  provide  the  following in a manner prescribed by the corpo-
     4  ration:
     5    (a)  unless  otherwise stated, for the current and two previous fiscal
     6  years the program provides, possesses, or has developed at least  twelve
     7  of  the following programs, services, and attributes, including subpara-
     8  graph (xiii) of this  paragraph  regarding  stability  and  support  and
     9  subparagraph (xviii) of this paragraph regarding the strategic plan:

    10    (i)  an  integrated  array of services which includes management guid-
    11  ance, technical assistance, consulting, mentoring, business plan  devel-
    12  opment, aid in creation of the business entity, and ongoing counseling;
    13    (ii)  entrepreneurial  education of at least thirty hours of classroom
    14  instruction and ten hours of technical assistance, or the equivalent  in
    15  individualized counseling and mentoring services for clients;
    16    (iii)  opportunities  for  clients  to network, collaborate with other
    17  business programs, and gain access to services, including  through  such
    18  programs  as  the  small  business development center, the local or area
    19  chamber of commerce or other business association, programs of the small

    20  business administration, and/or other  similar  business  organizations,
    21  associations, and programs;
    22    (iv)  access to capital via referral or other arrangements with finan-
    23  cial institutions,  venture  capitalists,  angel  investors,  investment
    24  funds  managed or financed by state or local economic development organ-
    25  izations, or other similar or equivalent capital sources,  evidenced  by
    26  written  agreements, memorandums of understanding, letters of intent, or
    27  other endorsements acceptable to the corporation, and including readying
    28  clients for the financial meetings and interviews;
    29    (v) aid in accessing markets, via bid assistance  or  access  programs
    30  that may include but are not limited to literature review, establishment

    31  of  a resource documents room (physical or virtual), opportunity notifi-
    32  cation of local, state, and federal governmental  and  private  opportu-
    33  nities,  and  identification  of  and  introductions  to potential first
    34  customers;
    35    (vi) physical office space and/or laboratory space and/or  manufactur-
    36  ing  space  under  a  written  agreement for a period not to exceed five
    37  years for any individual incubator client,  provided  that  the  average
    38  period  during  which  space  is provided for all such clients accessing
    39  space shall not exceed three years;
    40    (vii) policies requiring participation by  clients  in  the  incubator
    41  program,  including  disqualification or suspension from the program for
    42  failure to participate;

    43    (viii) criteria for graduation from the program or physical space, and
    44  terms and conditions for ongoing  relationships,  if  any,  between  the
    45  incubator and the client;
    46    (ix)  at  least  fifty  percent of the total incubator budget provided
    47  from sources other than tenant rents and fees and in-kind  support  from
    48  the  sponsoring  entity,  must be from sources other than New York state
    49  government agencies;
    50    (x) an  independent  community-based  board  or  advisory  board  that
    51  includes  one  or  more  executive officers of firms that have graduated
    52  from the incubator, and one or more professionals in one of the  follow-
    53  ing  areas:  accounting,  intellectual property, law (business or corpo-
    54  rate), or economic development;

    55    (xi) an independent advisory council or related network that  includes
    56  one  or  more  executive  officers of firms that have graduated from the

        S. 4078                             4
     1  incubator, and individuals with expertise in areas  appropriate  to  the
     2  sector  or  concentration  of  clients,  and the mission and goal of the
     3  incubator;
     4    (xii) a professional management and service delivery team with experi-
     5  ence,  expertise,  or credentials in management, entrepreneurship, busi-
     6  ness development, or other equivalent areas;
     7    (xiii) institutional stability and long term viability, indicated  by:
     8  the  sponsor's  commitment  to financially and programmatically maintain

     9  the incubator for at least two years in addition to the  current  fiscal
    10  year;  receipt of at least two non-state public and private grant and/or
    11  other revenue sources including property rentals and program  fees  that
    12  are  or  have proven to be predictable and reliable; and manageable debt
    13  service not exceeding an average of twenty-five percent of total  budget
    14  (exclusive  of any in-year cash advances against program or grant reven-
    15  ues);
    16    (xiv) a limitation to twenty percent or less of  the  total  incubator
    17  budget for administrative costs, which includes only that portion of the
    18  salaries  and  benefits  of  the  chief executive officer, any deputy or
    19  assistant to the chief executive officer, and the chief financial  offi-

    20  cer  or  controller,  which cannot be attributed to programs or services
    21  funded from non-state revenues or not otherwise paid  by  the  incubator
    22  sponsor from its own sources;
    23    (xv)   access  by  clients  to  mentoring,  advisory,  or  educational
    24  services,  including  classroom  teaching,  from  individuals  who   are
    25  lawyers, professional accountants, or individuals who have been in busi-
    26  ness at an executive level for at least five years;
    27    (xvi)  a  written  or  otherwise  demonstrable  connection to regional
    28  sources of innovation and  expertise  or  sources  of  human  resources,
    29  including  but  not  limited  to a college or university, an independent
    30  research institution, a business association, or to employees,  members,

    31  or graduates from any of such sources, and the programs or activities by
    32  which such sources can and have procured or provided services and exper-
    33  tise to advance client development;
    34    (xvii)  evidence  that  the  incubator  is a center of entrepreneurial
    35  activities of a city, region, or distressed portion  thereof,  as  docu-
    36  mented  by  programs  and  activities  coordinated  with county or local
    37  economic development organizations,  investor  and  financial  clubs  or
    38  institutions,  or  student or youth-oriented entrepreneurial activities.
    39  For purposes of this paragraph, distress may be demonstrated by location
    40  of the program or its clients in a  federal  historically  underutilized

    41  business  zone  (HUB zone) or empowerment zone, an area that is or was a
    42  New York state empire zone, or census data  demonstrating  lower  median
    43  income and employment, and higher poverty than in the surrounding commu-
    44  nities within the county or city, plus lower access to capital, business
    45  formation statistics, and other similar factors; and
    46    (xviii)  a  strategic  plan  that describes the impact on the regional
    47  entrepreneurial ecosystem that the incubator is  intended  to  have  and
    48  commits  the  incubator  to  best  incubation  practices and describes a
    49  defined process that accelerates commercialization and development for a
    50  client company or entity  through  provision  of  technical  assistance,

    51  direct  mentorship,  entrepreneurial education, and business development
    52  services, including development of a business plan and markets, develop-
    53  ment of the management team and aid in development of  product,  custom-
    54  ers,  and local or regional supply chain partners, access to investment,
    55  and launching of a successful business which will employ New Yorkers;

        S. 4078                             5
     1    (b) annually demonstrate that it meets the goals of creating jobs  and
     2  incubating businesses with survival rates in excess of average startups,
     3  and that the program has a strategic plan to continue to meet such goals
     4  for  the three years succeeding designation and that commits the program

     5  to  implementing  best  practices.  Such  demonstration  shall include a
     6  commitment by the sponsor to continue to maintain  the  program  for  at
     7  least  three  years  after  such designation. Programs shall provide the
     8  following data for: (i) the program year just completed, (ii) the  accu-
     9  mulated  data  for  the  three years that includes the program year just
    10  completed and the preceding two years, the first year of which shall  be
    11  considered  the base year, and (iii) using the first year of data as the
    12  base year, the increase or decrease in each factor applicable  from  the
    13  initial or base year:
    14    (1) Number of clients served in the incubator;
    15    (2) Total number of graduates;

    16    (3)  Number  of graduate firms that are still in business or have been
    17  merged or acquired;
    18    (4) The following data for firms in the incubation  program,  reported
    19  as aggregate data:
    20    I.  The  number  of individuals employed full time or full time equiv-
    21  alents, including company principals, who are working or are intended to
    22  work full weeks for a year;
    23    II. Compensation paid;
    24    III. Gross revenues of firms;
    25    IV. Firm debt financing from  all  sources,  including  bank,  family,
    26  friends, and other loan sources;
    27    V. Equity capital financing from all sources;
    28    VI. Grant funds from all sources;
    29    VII.  Where  applicable  and available, the number of full time equiv-

    30  alent  jobs,  contract  valuation,  and/or  other  economic   valuation,
    31  provided  by  New  York  state  suppliers  to  firms  that are incubator
    32  clients;
    33    (5) Numbers of businesses that on graduation from the incubator  moved
    34  to  the  surrounding community, or within a regional distressed area, or
    35  within New York state;
    36    (6) Numbers of  individuals  counseled,  mentored,  attended  classes,
    37  completed business plans;
    38    (7)  A description of the entrepreneurial and economic impact that the
    39  incubator has had on the surrounding region and community  that  can  be
    40  attributed to resources assembled by the incubator or to persons partic-
    41  ipating  in its programs in roles including but not limited to advisors,

    42  mentors,  investors,  entrepreneurs-in-residence,   professional-service
    43  providers,  student interns.   The description shall insofar as possible
    44  include such quantifiable factors and outcomes as  increased  number  of
    45  startups,  increased business or financings (including among individuals
    46  and entities which are not clients), widely-attended programs and events
    47  sponsored by the incubator  or  produced  in  collaboration  with  other
    48  institutions   or  business  associations  or  programs,  news  stories,
    49  outreach and attendance of entrepreneurial events and classes  into  new
    50  or non-traditional groups within the community, surveys, endorsements by
    51  public  officials,  economic-development and business-attraction profes-

    52  sionals, and leaders of business associations, and other similar signif-
    53  icant factors.
    54    The program shall also provide to the corporation the two most  recent
    55  audited  financial  statements of the sponsoring entity whose engagement
    56  scope includes the incubator program, or if no sponsoring  entity,  then

        S. 4078                             6
     1  of the incubator program.  Such final statements shall be prepared by an
     2  independent auditing firm whose principals are certified public account-
     3  ants licensed by the state education department.
     4    3.  Designation.  (a) The corporation shall designate applicants which
     5  meet the requirements of subdivision two of this  section  as  New  York
     6  state incubators.

     7    (b)  As  a  condition of maintaining designation, each incubator shall
     8  annually submit to the corporation in a manner and according to a sched-
     9  ule established by the corporation:
    10    (i) updated information as required in paragraph  (b)  of  subdivision
    11  two of this section, maintaining the initial base year in order to meas-
    12  ure the increase or decrease in each factor or data;
    13    (ii)  its strategic plan, as updated along with a brief description of
    14  its success in meeting the goals of its strategic plan;
    15    (iii) a statement that the items listed in paragraph (a)  of  subdivi-
    16  sion  two  of this section are still applicable to the operations of the
    17  incubator, or any change in applicability; and

    18    (iv) such additional information as the commissioner may require.
    19    (c) The corporation shall  design  simplified  forms  to  aid  in  the
    20  submission  of  the  data  required  in  this  subdivision, which may be
    21  submitted electronically.  Such forms shall state the  purposes  of  the
    22  required data submissions.
    23    (d)  The  corporation  shall  evaluate the operations of the incubator
    24  using methods including but not limited to site visits, reports pursuant
    25  to specified information, and review evaluations. If the corporation  is
    26  unsatisfied  with  the  progress  of an incubator, the corporation shall
    27  notify such incubator of the results of its evaluations and the findings
    28  of deficiencies in its operations and shall  allow  and  cooperate  with

    29  such  incubator to remedy such findings in a timely manner. For New York
    30  state incubators which receive sustaining operating grants  pursuant  to
    31  paragraph  (a)  of  subdivision  four  of this section, such evaluations
    32  shall include peer review and shall take place no less than  once  every
    33  three years or more often for any individual incubator which is a recip-
    34  ient  of  such  grant  at  the discretion of the corporation.  Such peer
    35  review shall be implemented through contract with a  state  association,
    36  as  provided in subdivision eight of this section, and shall result in a
    37  written report that includes programmatic and fiscal evaluation  of  the
    38  incubation program and recommendations for improvement.  Members of such

    39  peer review group shall include operators of other incubator programs, a
    40  significant  portion  of whom shall be directors or operators of incuba-
    41  tors which are located outside of New York state.
    42    4. Grants. (a) Sustaining operating grants. A program designated as  a
    43  New  York state incubator shall be eligible for an operating grant in an
    44  amount not to exceed one  hundred  fifty  thousand  dollars  from  funds
    45  available   to  the  corporation  or  otherwise  appropriated  therefor,
    46  provided however that:
    47    (i) Any such grant shall be matched  on  a  two-to-one  basis  by  the
    48  institution  receiving  the funds and collaborative partners in the form
    49  of cash or in-kind personnel, equipment, material donations,  and  other

    50  facility  and  operations expenditures, provided that no more than fifty
    51  percent of such match shall be in-kind;
    52    (ii) A program  applying  for  a  grant  shall  demonstrate  financial
    53  stability and long term viability, as provided in subparagraph (xiii) of
    54  paragraph (a) of subdivision two of this section;

        S. 4078                             7
     1    (iii) A grant recipient shall agree to provide data as required to the
     2  department  and  shall agree to conform to best practices as outlined by
     3  state and/or national business incubator associations; and
     4    (iv)  Failure  to  abide by the requirements of this subdivision or to
     5  cure a default after review and agreement  with  the  corporation  shall

     6  result  in  loss  of the grant and disqualification of the designee as a
     7  New York state incubator.
     8    (b) Planning grants. A sponsor seeking to develop an incubator program
     9  may be eligible for a planning grant in an amount not to exceed  fifteen
    10  thousand  dollars.  A  sponsor  seeking to obtain a planning grant shall
    11  provide the following basic data and other  information  to  demonstrate
    12  viability to the satisfaction of the corporation:
    13    (i) name, financial strength, history, corporate form, and evidence of
    14  the commitment and financial and programmatic ability of the sponsor and
    15  its consultants and collaborators to bring the project to completion and
    16  to  sustain the project for at least three years after creation, includ-

    17  ing relevant signed copies of federal tax  returns  for  the  prior  two
    18  years;
    19    (ii)  a business plan detailing estimated financing costs and sources,
    20  staffing, program design, how it will meet space size and costs require-
    21  ments for at least five years, including evidence that it  has  or  will
    22  shortly  have  complete  or contingent control of the space, and project
    23  timeline, outcomes and deliverables;
    24    (iii) the kinds and numbers of short and long term jobs anticipated to
    25  be created by and through the project, the target areas for client incu-
    26  bation, and how the project will recruit and  select  the  companies  it
    27  will accept for incubation;
    28    (iv)  the  qualifications that make the project a unique and/or neces-

    29  sary economic priority for the region, municipality,  or  community,  by
    30  creating jobs and economic investment and development, leading community
    31  revitalization, and other similar factors;
    32    (v)  whether  the project has been endorsed by area municipal or other
    33  area representative public officials, and area business associations;
    34    (vi) whether the project or a phase of the project  has  been  awarded
    35  state  or  other  funding,  the  amount of funding received, whether any
    36  expenditure for the project has been made  prior  to  the  date  of  the
    37  application; and
    38    (vii)  a  statement  that the applicant in this or some other form has
    39  not previously received a planning grant pursuant to this section.

    40    (c) Stabilization grants. A program  which  has  received  a  planning
    41  grant,  and  which  otherwise meets the requirements of paragraph (a) of
    42  subdivision two of this  section,  including  subparagraphs  (xiii)  and
    43  (xviii)  of  such paragraph, shall be eligible for a stabilization grant
    44  in an annual amount not to  exceed  twenty-five  thousand  dollars  from
    45  funds  available  to the corporation or appropriated therefor. A program
    46  may not receive more than three such stabilization grants,  which  shall
    47  only  be  available  on  successive  years,  and only for so long as the
    48  program meets the requirements of paragraph (a) of  subdivision  two  of
    49  this  section,  including subparagraphs (xiii) and (xviii) of such para-
    50  graph.

    51    (d) Capital assistance. The corporation shall make programs designated
    52  as New York state incubators or which are in receipt of or have  applied
    53  for planning or stabilization grants, aware of opportunities for capital
    54  funding  or  grants  by  or through the corporation or the department of
    55  economic development.

        S. 4078                             8
     1    (e) No deduction. In addition to the foregoing requirements, an  incu-
     2  bator  sponsor  shall  agree  to  dedicate  all funds from any grants or
     3  support received pursuant to this subdivision except for  paragraph  (d)
     4  of  this  subdivision  which  is  subject to separate agreements, to the
     5  operations  of the incubator or the planning therefor without deductions

     6  for overhead, indirect costs, or facilities and  administration  charges
     7  of such sponsor.
     8    5.  Procurement. (a) A client of a New York state incubator designated
     9  pursuant to this section shall be deemed a small business concern pursu-
    10  ant to subdivision 6 of section 163 of the state  finance  law,  and  to
    11  paragraph n of subdivision 2 of section 161 of such law. The corporation
    12  shall  collaborate  with  the  commissioner  of  the  office  of general
    13  services and the commissioner of economic development who shall use  his
    14  or  her membership on the state procurement council, to advance, target,
    15  and develop procurement  programs  for  the  purchase  of  services  and
    16  commodities,  including technologies or commodities that are recycled or

    17  remanufactured, toward clients of New York state incubators. The  corpo-
    18  ration  shall  additionally, through membership on the state procurement
    19  council and collaboration with the commissioner of general services  and
    20  other  state  agencies,  develop  opportunities for teaming on contracts
    21  between small business concerns which are  clients  of  New  York  state
    22  incubators  and  other  business entities which may provide resources or
    23  credit necessary for the successful completion of contract  requirements
    24  for  such  commodities, services, or technologies by such small business
    25  concerns.
    26    (b) The corporation shall propose and implement an incubator rate  for
    27  access by clients of New York state incubators to the procurement oppor-

    28  tunities newsletter website and to enhanced access services of the news-
    29  letter.  Such  rate  shall  in no case be more than the marginal cost of
    30  providing such access to clients of New  York  state  incubators.  Addi-
    31  tionally  the  corporation shall provide access to BidLinx by clients of
    32  New York state incubators at a rate no greater than the lowest rate paid
    33  by any user of the service. If the lowest rate paid by  a  user  of  the
    34  service  is  zero,  then that shall be the rate for access by clients of
    35  New York state incubators.
    36    6. Incubators as educational entities. Real property owned  or  leased
    37  by  a  New York state incubator which is a nonprofit organization having
    38  tax exempt status under section 501(c)(3) of the United States  internal

    39  revenue code, or which is a New York state incubator owned and sponsored
    40  by  a  nonprofit organization having such tax exempt status, or which is
    41  affiliated with a college chartered by the regents of the state  of  New
    42  York  or  a  college incorporated by special act of the legislature, and
    43  which is used for the purposes described in this  section  of  training,
    44  educating,  mentoring,  and developing client entrepreneurs and business
    45  entities, which are the criteria for designation of a program as  a  New
    46  York  state  incubator, shall be deemed to be property of an educational
    47  corporation for purposes of section 420-a of the real property tax  law,
    48  including  any  classrooms, conference rooms, laboratory, meeting space,

    49  administration area, kitchen area, parking, storage, or other area which
    50  is used primarily to provide direct and indirect  services  to  resident
    51  clients  of  such  facility,  and  including space for resident clients'
    52  offices pursuant to a license or lease between such incubator and  resi-
    53  dent clients, notwithstanding that such resident clients may, or may not
    54  be,  not-for-profit  organizations.  The  exemption  provided for in the
    55  preceding sentence shall  also  apply  to  a  program  which  meets  the
    56  requirements established therein, but which is a program that the corpo-

        S. 4078                             9
     1  ration  has determined is eligible to receive or is receiving stabiliza-

     2  tion grants pursuant to this section. Any portion of such real  property
     3  which is leased or licensed to an individual or business entity which is
     4  not  a  resident  client  of the New York state incubator or the program
     5  described in this subdivision which is eligible to receive or is receiv-
     6  ing stabilization grants, or which does not otherwise meet the  require-
     7  ments  of  subdivision  1 of such section 420-a of the real property tax
     8  law, shall be subject to the provisions  of  subdivision  2  of  section
     9  420-a of the real property tax law.
    10    7.  Other  assistance.  The  corporation  shall  make  such other aid,
    11  assistance, and resources available to New  York  state  incubators  and

    12  their  clients  as  he  or she shall deem useful and appropriate for the
    13  furtherance of the purposes of this act,  including  without  limitation
    14  technical  assistance,  aid  in marketing, aid in reaching and providing
    15  entrepreneurship training opportunities to such marginalized  groups  as
    16  those  composed  of  individuals  who are minority, female, disabled, or
    17  poor,  and  others,  curriculum  development,  and  other  services  and
    18  resources.  The  corporation shall also seek assistance from other state
    19  agencies in the development of procurement and marketing  resources  and
    20  training opportunities for New York state incubators and their clients.
    21    8.  Service  contract. The corporation shall contract with a statewide

    22  entity which is a membership association of incubators  and  others  and
    23  which  has expertise in providing services to incubators for the purpose
    24  of providing services to entities designated as New York  state  incuba-
    25  tors  and  to  entities  seeking to apply or applying to become New York
    26  state incubators or  which  otherwise  are  included  as  recipients  of
    27  services  pursuant to this section. Such services shall include advising
    28  concerning best practices of incubation  and  development  of  plans  to
    29  incorporate and integrate such practices, development of data concerning
    30  incubation  in  this  state  and recommendations for improvement, aid in
    31  marketing and event sponsorship, and such other services as  the  corpo-

    32  ration  shall  deem  necessary  and  appropriate to the strengthening of
    33  business incubation in this state.
    34    § 3. This act shall take effect immediately.
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