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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4905
2017-2018 Regular Sessions
IN ASSEMBLY
February 6, 2017
___________
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
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
19 recipients whose principal place of business is located in this state,
20 provide them with information concerning the program authorized pursuant
21 to this section, and advise them of the requirements relating thereto.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08631-01-7
A. 4905 2
1 Any such recipient, at least thirty days prior to the completion of its
2 SBIR Phase I grant period, may, at its discretion, submit to the corpo-
3 ration a notice of its desire to secure research funding pursuant to the
4 provisions of this section, along with a copy of its original federal
5 SBIR proposal and such additional information as the corporation may
6 require to assist it in determining the eligibility of such recipient
7 for this program.
8 (b) In addition to receipt of an SBIR award, any small business shall
9 meet the following criteria:
10 i. Such small business's principal place of business shall be located
11 in this state;
12 ii. Such small business shall certify that the research to be
13 conducted will be performed solely in this state;
14 iii. No moneys shall be expended for travel, equipment, or facilities;
15 and
16 iv. Not more than one-third of any moneys awarded to a firm by the
17 foundation may be used to contract for research or other related
18 services.
19 (c) Upon a finding by the corporation that: (i) a Phase I award recip-
20 ient whose principal place of business is in New York has satisfactorily
21 met all the requirements of this section and any additional requirements
22 the corporation may deem necessary; provided, however, that any such
23 additional requirements shall not arbitrarily exclude a particular group
24 or groups of technologies or companies; and (ii) the research conducted
25 may result in the development of innovative technology having the poten-
26 tial to lead to commercialization or fabrication within New York of new
27 or improved products, processes, or services, the corporation shall
28 notify such small business that it will award the firm a research
29 contract. Such contract shall be compatible with and a continuation of
30 the research to be performed under the SBIR contract awarded by the
31 federal agency involved and shall be calculated as follows: (i) the
32 amount of each contract shall equal the amount of the federal SBIR award
33 or fifty thousand dollars, whichever is less; provided, however, that
34 the total amount of all such contracts shall not exceed the amount
35 appropriated for this purpose, or (ii) in the event that the total,
36 possible, maximum amount of all contracts, such total, possible, maximum
37 amount calculated on the basis of matching each federal SBIR award in an
38 amount equal to the amount of such award, or fifty thousand dollars,
39 whichever is less, exceeds the total amount appropriated for this
40 purpose, the amount of each contract shall be reduced by a ratio equal
41 to the amount appropriated for this purpose divided by the total, possi-
42 ble, maximum amount of all contracts to be awarded.
43 (d) The corporation shall establish rules and regulations for the
44 small business innovation research program, including award selection
45 criteria, which shall serve as the basis for awards funded under this
46 program.
47 3. The corporation shall not disburse any moneys to a small business
48 until:
49 (a) such small business has completed its SBIR Phase I research;
50 (b) its final Phase I report with respect thereto has been accepted by
51 the federal agency involved;
52 (c) its Phase II research proposal has been properly submitted to the
53 federal agency involved; and
54 (d) it has submitted copies of its final Phase I report and its Phase
55 II proposal to the corporation.
A. 4905 3
1 4. Consistent with federal SBIR procedures, the corporation shall not
2 disclose proprietary information when requested not to do so by partic-
3 ipants in this program.
4 5. The corporation shall annually submit a report to the governor, the
5 temporary president of the senate, and the speaker of the assembly
6 detailing the results of the program, including but not limited to the
7 number of New York small businesses applying for SBIR awards, the number
8 receiving Phase I awards, the number receiving Phase II awards, any
9 products or processes developed as a result of the SBIR research
10 involved, any patents applied for or licenses granted based on the SBIR
11 research involved, an abstract of the SBIR Phase I and II work performed
12 by New York firms, and any other information pertinent in evaluating the
13 program.
14 6. The corporation shall conduct a program to inform small businesses
15 of the federal SBIR program and this New York state program in order to
16 ensure that all firms have the opportunity to participate in these
17 programs.
18 7. The corporation shall facilitate and promote the establishment of
19 joint small business-university technology councils at the centers for
20 advanced technology and other universities within the state whereby
21 small firms and university experts can facilitate the transfer of tech-
22 nology and work together on research projects related to the SBIR
23 program or other research projects of mutual interest.
24 8. The provisions of this section shall be effective if, and as long
25 as, federal financial participation is available therefor pursuant to
26 the small business innovation development act of 1982.
27 § 2. Section 3102-c of the public authorities law is REPEALED.
28 § 3. This act shall take effect immediately.
