A05147 Summary:
BILL NO | A05147 |
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SAME AS | SAME AS S05469 |
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SPONSOR | Gabryszak (MS) |
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COSPNSR | Schimminger, Jaffee, Lupardo, Magnarelli |
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MLTSPNSR | Brennan, Cook, Magee, Maisel, Mayersohn, McEneny, Millman, Peoples-Stokes, Reilly, Robinson, Sweeney, Weisenberg |
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Add S3154-a, amd S3150, Pub Auth L | |
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Creates the small business technology investment fund; requires reporting by regional investment funds receiving investments and requires the foundation to report to the governor and legislature a summary of the program and an evaluation of reports submitted by the funds. |
A05147 Actions:
BILL NO | A05147 | |||||||||||||||||||||||||||||||||||||||||||||||||
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02/14/2011 | referred to economic development | |||||||||||||||||||||||||||||||||||||||||||||||||
01/04/2012 | referred to economic development | |||||||||||||||||||||||||||||||||||||||||||||||||
04/26/2012 | enacting clause stricken |
A05147 Floor Votes:
There are no votes for this bill in this legislative session.
Go to topA05147 Text:
Go to top STATE OF NEW YORK ________________________________________________________________________ 5147 2011-2012 Regular Sessions IN ASSEMBLY February 14, 2011 ___________ Introduced by M. of A. GABRYSZAK, SCHIMMINGER, JAFFEE, LUPARDO, MAGNAR- ELLI -- Multi-Sponsored by -- M. of A. BRENNAN, COOK, MAGEE, MAISEL, MAYERSOHN, McENENY, MILLMAN, PEOPLES-STOKES, REILLY, ROBINSON, SWEE- NEY, WEISENBERG -- read once and referred to the Committee on Economic Development AN ACT to amend the public authorities law, in relation to creating the small business technology investment fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The public authorities law is amended by adding a new 2 section 3154-a to read as follows: 3 § 3154-a. The small business technology investment fund. 1. Defi- 4 nitions. For the purposes of this section, the following words and terms 5 shall have the following meanings unless the context shall indicate 6 another or different meaning or intent: 7 (a) "Regional investment fund" shall mean a limited partnership, a 8 limited liability partnership, a limited liability company or a not-for- 9 profit fund that is professionally managed by an experienced fund manag- 10 er, is formed for the purpose of providing private equity to technolo- 11 gy-based companies in their formative stages, encompasses at least two 12 counties, and invests in qualified enterprises located within New York 13 state. 14 (b) "Qualified enterprise" shall mean a company or a proposed company 15 that has or will locate its principal place of business in New York 16 state, that is, or proposes to be, engaged in this state in research and 17 development or manufacturing, and that demonstrates the potential for 18 substantial growth and job development in an emerging technology field 19 as defined in section thirty-one hundred two-e of this article or as 20 adopted by the board. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD08350-01-1A. 5147 2 1 (c) "Seed capital" shall mean financial assistance to a qualified 2 enterprise, which has formulated a detailed business plan, for proof-of- 3 concept or initial product commercialization. 4 2. Investments in regional investment funds. (a) The foundation is 5 authorized to make investments to encourage and facilitate the creation 6 or expansion of regional investment funds that serve the purposes of 7 this section. The foundation's board of directors shall adopt criteria 8 and guidelines governing such investments, which shall require that: 9 (i) there exists a need for seed capital in the region served or to be 10 served by a regional investment fund; 11 (ii) support for a regional investment fund exists from local govern- 12 ments, economic development agencies, and business communities within 13 the region or area to be served by such fund; 14 (iii) the regional investment fund has the capacity to provide manage- 15 ment expertise and other value-added services to its portfolio compa- 16 nies; 17 (iv) the regional investment fund establishes conflict-of-interest 18 provisions acceptable to the foundation; 19 (v) to the maximum extent feasible, the regional investment fund will 20 invest in firms which have the greatest potential for job creation; 21 (vi) investments made by the foundation in a regional investment fund 22 shall not exceed two million dollars and shall be matched by the 23 regional fund on at least a one-to-one basis with monies, other than 24 state monies; and 25 (vii) investments made by a regional investment fund that include 26 funds received from the foundation shall be made only for the financing 27 authorized by subdivision three of this section. 28 (b) The foundation shall make investments in qualified regional 29 investment funds via the issuance of a request for proposals to regional 30 and local economic development organizations, technology development 31 organizations, research universities, and investment funds that provide 32 small-scale investments in high-technology companies in New York state. 33 3. Regional investment funds. (a) Regional investment funds receiving 34 investments from the foundation under this section shall use such funds 35 and the required matching funds to provide seed capital and follow-on 36 financing to qualified enterprises, provided that the regional invest- 37 ment fund shall not: (i) invest an amount in any single qualified enter- 38 prise that exceeds fifty percent of the total investment from all other 39 sources in any such enterprise; or (ii) invest over five hundred thou- 40 sand dollars in any one company. 41 (b) A regional investment fund, before approving any application for 42 financial assistance under this section shall find that: (i) the quali- 43 fied enterprise and its product or process have a reasonable chance of 44 being commercially successful; and (ii) the employment created or main- 45 tained as a result of the fund's investment will be in New York state. 46 The regional investment fund shall further ensure that provisions are in 47 place for the repayment of the funds if the company receiving assistance 48 leaves the state. 49 4. Regional investment fund reporting. The foundation shall require 50 any regional investment fund receiving investments under this section to 51 file a report with the foundation by December first, two thousand thir- 52 teen and annually thereafter until December first, two thousand eigh- 53 teen. Such report shall include: 54 (a) the total amount of funds committed to the regional investment 55 fund and the amount that has been invested; 56 (b) the net asset value of the fund;A. 5147 3 1 (c) the amount invested in each portfolio company from the fund and 2 from other sources; 3 (d) the type of product or technology being developed by each portfo- 4 lio company; 5 (e) the location of each portfolio company; 6 (f) the number of jobs projected to be created and retained; and 7 (g) such other information as the foundation deems necessary. 8 5. Assets and liabilities. All of the assets and liabilities of the 9 small business technology investment fund shall be made available for 10 the purposes of this section. The board shall prepare a plan within 11 ninety days following the effective date of this section to liquidate 12 all current assets and liabilities of the fund. The publicly-traded 13 assets and any working capital shall be made fully available for allo- 14 cation to regional investment funds as soon as practicable. The board 15 shall also take whatever actions are necessary to liquidate the remain- 16 ing assets of the small business technology investment fund as soon as 17 practicable, but not more than two years following the effective date of 18 this section. 19 6. Report of the foundation. The foundation shall submit to the gover- 20 nor and the legislature a summary and evaluation of the reports submit- 21 ted to the foundation pursuant to subdivision four of this section and 22 an evaluation of the performance of the regional investment funds on or 23 before February first, two thousand fourteen and annually thereafter 24 until February first, two thousand nineteen. 25 § 2. The opening paragraph of section 3150 of the public authorities 26 law, as amended by section 4 of part C of chapter 63 of the laws of 27 2005, is amended to read as follows: 28 As used in this [section] title: 29 § 3. This act shall take effect immediately.