Recodifies the small business innovation research program within the New York state urban development corporation act; alters provisions under the small business innovation research program particularly as they affect Phase I award winners; prohibits arbitrary exclusion of technologies and companies; provides for matching of federal funds, to a certain extent.
STATE OF NEW YORK
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4408--A
2015-2016 Regular Sessions
IN ASSEMBLY
January 30, 2015
___________
Introduced by M. of A. SCHIMMINGER, MORELLE, LUPARDO -- Multi-Sponsored
by -- M. of A. COLTON, MAGNARELLI -- read once and referred to the
Committee on Small Business -- recommitted to the Committee on Small
Business in accordance with Assembly Rule 3, sec. 2 -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the New York state urban development corporation act, in
relation to recodification of the small business innovation research
program and the awards made thereunder within the urban development
corporation; and to repeal section 3102-c of the public authorities
law relating to the small business innovation research program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 1 of chapter 174 of the laws of 1968, constituting
2 the New York state urban development corporation act, is amended by
3 adding a new section 52 to read as follows:
4 § 52. Small business innovation research program. 1. As used in this
5 section, the following terms have the following meanings:
6 (a) "Small business innovation research program" or "SBIR" means that
7 program, enacted pursuant to the small business innovation development
8 act of 1982 (P.L. 97-219), which provides funds to small businesses to
9 conduct innovative research having commercial application.
10 (b) "Small business" means a corporation, partnership, limited liabil-
11 ity company, sole proprietorship, or individual, operating a business
12 for profit, with two hundred fifty employees or fewer, including employ-
13 ees employed in any subsidiary or affiliated corporation or other enti-
14 ty, which otherwise meets the requirements of the federal small business
15 innovation research program.
16 2. (a) Within thirty days of the public announcement of the small
17 business innovation research program Phase I award winners by the appro-
18 priate federal agency, the corporation shall contact all Phase I award
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD00667-04-6
A. 4408--A 2
1 recipients whose principal place of business is located in this state,
2 provide them with information concerning the program authorized pursuant
3 to this section, and advise them of the requirements relating thereto.
4 Any such recipient, at least thirty days prior to the completion of its
5 SBIR Phase I grant period, may, at its discretion, submit to the corpo-
6 ration a notice of its desire to secure research funding pursuant to the
7 provisions of this section, along with a copy of its original federal
8 SBIR proposal and such additional information as the corporation may
9 require to assist it in determining the eligibility of such recipient
10 for this program.
11 (b) In addition to receipt of an SBIR award, any small business shall
12 meet the following criteria:
13 i. Such small business's principal place of business shall be located
14 in this state;
15 ii. Such small business shall certify that the research to be
16 conducted will be performed solely in this state;
17 iii. No moneys shall be expended for travel, equipment, or facilities;
18 and
19 iv. Not more than one-third of any moneys awarded to a firm by the
20 foundation may be used to contract for research or other related
21 services.
22 (c) Upon a finding by the corporation that: (i) a Phase I award recip-
23 ient whose principal place of business is in New York has satisfactorily
24 met all the requirements of this section and any additional requirements
25 the corporation may deem necessary; provided, however, that any such
26 additional requirements shall not arbitrarily exclude a particular group
27 or groups of technologies or companies; and (ii) the research conducted
28 may result in the development of innovative technology having the poten-
29 tial to lead to commercialization or fabrication within New York of new
30 or improved products, processes, or services, the corporation shall
31 notify such small business that it will award the firm a research
32 contract. Such contract shall be compatible with and a continuation of
33 the research to be performed under the SBIR contract awarded by the
34 federal agency involved and shall be calculated as follows: (i) the
35 amount of each contract shall equal the amount of the federal SBIR award
36 or fifty thousand dollars, whichever is less; provided, however, that
37 the total amount of all such contracts shall not exceed the amount
38 appropriated for this purpose, or (ii) in the event that the total,
39 possible, maximum amount of all contracts, such total, possible, maximum
40 amount calculated on the basis of matching each federal SBIR award in an
41 amount equal to the amount of such award, or fifty thousand dollars,
42 whichever is less, exceeds the total amount appropriated for this
43 purpose, the amount of each contract shall be reduced by a ratio equal
44 to the amount appropriated for this purpose divided by the total, possi-
45 ble, maximum amount of all contracts to be awarded.
46 (d) The corporation shall establish rules and regulations for the
47 small business innovation research program, including award selection
48 criteria, which shall serve as the basis for awards funded under this
49 program.
50 3. The corporation shall not disburse any moneys to a small business
51 until:
52 (a) such small business has completed its SBIR Phase I research;
53 (b) its final Phase I report with respect thereto has been accepted by
54 the federal agency involved;
55 (c) its Phase II research proposal has been properly submitted to the
56 federal agency involved; and
A. 4408--A 3
1 (d) it has submitted copies of its final Phase I report and its Phase
2 II proposal to the corporation.
3 4. Consistent with federal SBIR procedures, the corporation shall not
4 disclose proprietary information when requested not to do so by partic-
5 ipants in this program.
6 5. The corporation shall annually submit a report to the governor, the
7 temporary president of the senate, and the speaker of the assembly
8 detailing the results of the program, including but not limited to the
9 number of New York small businesses applying for SBIR awards, the number
10 receiving Phase I awards, the number receiving Phase II awards, any
11 products or processes developed as a result of the SBIR research
12 involved, any patents applied for or licenses granted based on the SBIR
13 research involved, an abstract of the SBIR Phase I and II work performed
14 by New York firms, and any other information pertinent in evaluating the
15 program.
16 6. The corporation shall conduct a program to inform small businesses
17 of the federal SBIR program and this New York state program in order to
18 ensure that all firms have the opportunity to participate in these
19 programs.
20 7. The corporation shall facilitate and promote the establishment of
21 joint small business-university technology councils at the centers for
22 advanced technology and other universities within the state whereby
23 small firms and university experts can facilitate the transfer of tech-
24 nology and work together on research projects related to the SBIR
25 program or other research projects of mutual interest.
26 8. The provisions of this section shall be effective if, and as long
27 as, federal financial participation is available therefor pursuant to
28 the small business innovation development act of 1982.
29 § 2. Section 3102-c of the public authorities law is REPEALED.
30 § 3. This act shall take effect immediately.
