Bill Text: NY A00253 | 2009-2010 | General Assembly | Introduced
Bill Title: Establishes the biosciences commercialization fund within the foundation for science, technology and innovation.
Spectrum: Partisan Bill (Democrat 26-0)
Status: (Introduced - Dead) 2010-04-20 - reported referred to ways and means [A00253 Detail]
Download: New_York-2009-A00253-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 253 2009-2010 Regular Sessions I N A S S E M B L Y (PREFILED) January 7, 2009 ___________ Introduced by M. of A. MAGNARELLI, MORELLE, DESTITO, DelMONTE, SCHIM- MINGER, JAFFEE, BENEDETTO, LUPARDO, KOON, HOYT, CAHILL, MILLMAN, STIRPE, BOYLAND, ESPAILLAT, JOHN, HOOPER -- Multi-Sponsored by -- M. of A. BRENNAN, GREENE, MARKEY, McENENY, PEOPLES, PHEFFER, REILLY, SWEENEY, WEISENBERG, ZEBROWSKI -- read once and referred to the Committee on Economic Development, Job Creation, Commerce and Industry AN ACT to amend the public authorities law, in relation to establishing the biosciences commercialization assistance fund within the founda- tion for science, technology and innovation THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Section 3150 of the public authorities law, as amended by 2 section 4 of part C of chapter 63 of the laws of 2005, is amended to 3 read as follows: 4 S 3150. Definitions. As used in this [section] TITLE: 5 1. "Foundation" shall mean the New York state foundation for science, 6 technology and innovation created by this title; 7 2. "Executive director" shall mean the executive director of the foun- 8 dation; 9 3. "Board" shall mean the New York state foundation for science, tech- 10 nology and innovation board; 11 4. "Regional partnerships" shall mean any association or group which 12 is: (a) comprised of local economic development organizations and a 13 center of excellence as defined by section three of part T of chapter 14 eighty-four of the laws of two thousand two, or in the absence of such 15 center in the region, at least one institution of higher education 16 involved in commercialization efforts similar to such centers of excel- 17 lence and may include a combination of private businesses, business 18 support organizations, commercial lending institutions, venture capital 19 companies, angel investor networks or foundations; (b) formed for the EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00551-01-9 A. 253 2 1 creation and administration of regional partnership programs; and (c) 2 certified by the foundation as the regional partnership; 3 5. "Regional partnership coordinator" shall mean a nonprofit organiza- 4 tion chosen by a regional partnership and certified by the foundation to 5 administer the regional partnership programs; 6 6. "Partnership" shall mean regional partnerships; [and] 7 7. "Coordinator" shall mean regional partnership coordinator[.]; 8 8. "RESEARCH ENTITY" SHALL MEAN A NOT-FOR-PROFIT COLLEGE, UNIVERSITY, 9 MEDICAL CENTER, LABORATORY OR OTHER INSTITUTION THAT CONDUCTS AN INTEN- 10 SIVE, ONGOING PROGRAM OF STUDY DIRECTED TOWARD GREATER KNOWLEDGE OF A 11 SCIENTIFIC FOCUS AREA OR TOWARD APPLYING NEW SCIENTIFIC KNOWLEDGE TO 12 MEET A RECOGNIZED NEED; 13 9. "FOCUS AREA" SHALL MEAN BIOSCIENCES RESEARCH INCLUDING, BUT NOT 14 LIMITED TO, THE BASIC, APPLIED, OR TRANSLATIONAL RESEARCH THAT LEADS TO 15 THE DEVELOPMENT OF THERAPEUTICS, DIAGNOSTICS, OR DEVICES, TO IMPROVE 16 HUMAN HEALTH OR AGRICULTURE AND THAT REQUIRE FEDERAL FOOD AND DRUG 17 ADMINISTRATION APPROVAL. 18 S 2. The public authorities law is amended by adding a new section 19 3154-a to read as follows: 20 S 3154-A. BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND. 1. THE BIOS- 21 CIENCES COMMERCIALIZATION ASSISTANCE FUND IS HEREBY CREATED FOR THE 22 PURPOSE OF: 23 (A) ADVANCING THE EARLY-STAGE DEVELOPMENT OF COMMERCIALLY PROMISING 24 INVENTIONS IN THE FOCUS AREA OWNED BY RESEARCH ENTITIES LOCATED IN NEW 25 YORK STATE; 26 (B) ENCOURAGING ENTREPRENEURS TO FORM NEW COMPANIES LOCATED IN NEW 27 YORK STATE TO MANUFACTURE AND MARKET SUCH INVENTIONS; 28 (C) ENABLING SMALL BUSINESSES RESIDENT IN THE STATE TO CONDUCT APPLIED 29 RESEARCH AND DEVELOPMENT NECESSARY TO COMMERCIALIZE RESEARCH ENTITY 30 INVENTIONS; AND 31 (D) ENCOURAGING BUSINESSES RESIDENT IN THE STATE TO DEVELOP NEW 32 PRODUCTS OR PROCESSES BASED ON PROMISING INVENTIONS OR TECHNOLOGIES 33 OWNED BY SUCH BUSINESSES THROUGH GRANTS OR LOANS TO SUCH RESIDENT BUSI- 34 NESSES. 35 2. MONIES IN THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND SHALL 36 BE AVAILABLE TO ELIGIBLE RESEARCH ENTITIES, START-UPS, SMALL COMPANIES, 37 AND OTHER BUSINESSES IN NEW YORK STATE, WITH ANTICIPATED COMMERCIALIZA- 38 TION TIME FRAMES OF UP TO FIFTEEN YEARS, FOR DEVELOPMENT AND COMMERCIAL- 39 IZATION OF PRODUCTS. THE FOUNDATION SHALL USE THE MONIES AVAILABLE IN 40 THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND FOR: 41 (A) GRANTS TO RESEARCH ENTITIES LOCATED IN NEW YORK STATE TO DEVELOP 42 COMMERCIALLY PROMISING RESEARCH DISCOVERIES IN THE FOCUS AREA BEYOND THE 43 CONCEPTUAL STAGE IN ORDER TO FURTHER THE CHANCE OF COMMERCIALIZATION AND 44 INCREASE MARKET VALUE. THE FOUNDATION MAY APPROVE GRANTS FOR ELIGIBLE 45 PROJECTS, PROVIDED SUCH GRANTS DO NOT EXCEED ONE HUNDRED THOUSAND 46 DOLLARS AND ARE USED EXCLUSIVELY TO ACCELERATE THE COMMERCIALIZATION OF 47 DISCOVERIES THAT HAVE THE POTENTIAL TO POSITIVELY IMPACT EXISTING COMPA- 48 NIES LOCATED IN NEW YORK OR LEAD TO THE FORMATION OF NEW COMPANIES 49 LOCATED IN NEW YORK. GRANTS MAY NOT BE USED TO COMMERCIALIZE DISCOVERIES 50 THAT WILL BE LICENSED TO FIRMS THAT DO NOT HAVE THEIR RESEARCH AND 51 DEVELOPMENT AND MANUFACTURING FACILITIES AND AT LEAST EIGHTY PERCENT OF 52 THEIR EMPLOYEES LOCATED IN NEW YORK STATE. THE FOUNDATION SHALL APPROVE 53 GRANTS ONLY TO THOSE RESEARCH ENTITIES THAT CAN DEMONSTRATE THE ABILITY 54 TO GUIDE THE DEVELOPMENT OF THE DISCOVERIES TOWARD SUCCESSFUL COMMER- 55 CIALIZATION IN THE STATE. ANY REVENUES EARNED BY THE RESEARCH ENTITY 56 FROM THE LICENSING OF AN INVENTION DEVELOPED WITH A FOUNDATION GRANT A. 253 3 1 MUST BE REINVESTED IN THE RESEARCH ENTITY'S EDUCATIONAL AND RESEARCH 2 PROGRAMS OR TECHNOLOGY TRANSFER ACTIVITIES; 3 (B) INVESTMENTS IN START-UP COMPANIES FORMED BY ENTREPRENEURS TO 4 COMMERCIALIZE INTELLECTUAL PROPERTY IN THE FOCUS AREA LICENSED FROM 5 RESEARCH ENTITIES LOCATED IN NEW YORK STATE. THE FOUNDATION MAY APPROVE 6 INVESTMENTS IN NEW COMPANIES BEING FORMED TO FURTHER DEVELOP, PRODUCE, 7 AND SELL INVENTIONS LICENSED FROM RESEARCH INSTITUTIONS IN NEW YORK 8 STATE, PROVIDED THAT THE COMPANY'S RESEARCH AND DEVELOPMENT AND/OR MANU- 9 FACTURING FACILITIES WILL BE LOCATED IN NEW YORK STATE; THE COMPANY 10 COMMITS TO REMAINING IN THE STATE; THE INVESTMENT DOES NOT EXCEED ONE 11 HUNDRED FIFTY THOUSAND DOLLARS PER COMPANY; AND, THE INVESTMENT IS USED 12 SOLELY FOR OPERATING EXPENSES APPROVED BY THE FOUNDATION. IN RETURN FOR 13 INVESTMENT BY THE FOUNDATION, THE FOUNDATION SHALL TAKE AN EQUITY POSI- 14 TION IN THE COMPANY OR NEGOTIATE ROYALTY PAYMENTS BASED ON THE SALE OF 15 ANY PRODUCTS RESULTING FROM THE LICENSED INVENTION. IN THE EVENT THAT A 16 COMPANY MOVES ITS RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES 17 OR MORE THAN TWENTY PERCENT OF ITS EMPLOYEES OUT OF THE STATE, THE FOUN- 18 DATION SHALL REQUIRE THE COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST 19 FIVE TIMES THE FOUNDATION'S TOTAL INVESTMENT; 20 (C) MATCHING GRANTS TO SMALL BUSINESSES IN NEW YORK STATE FOR COOPER- 21 ATIVE APPLIED RESEARCH AND DEVELOPMENT PROJECTS IN THE FOCUS AREA WITH 22 RESEARCH INSTITUTIONS TO TRANSLATE PROMISING DISCOVERIES OF THE RESEARCH 23 INSTITUTION INTO COMMERCIALLY VIABLE PRODUCTS. THE FOUNDATION MAY 24 APPROVE MATCHING GRANTS FOR PROJECTS UNDERTAKEN JOINTLY BY A RESEARCH 25 ENTITY AND A BUSINESS INCORPORATED IN NEW YORK STATE FOR UP TO HALF OF 26 THE COST OF PROJECTS THAT WILL APPLY DISCOVERIES OR USE THE INTELLECTUAL 27 RESOURCES OF THE RESEARCH ENTITY TO DEVELOP NEW, OR TO IMPROVE EXISTING, 28 COMMERCIAL MATERIALS, DEVICES, SYSTEMS, PROCESSES, OR PROTOTYPES, 29 PROVIDED THAT THE GRANTS DO NOT EXCEED ONE HUNDRED FIFTY THOUSAND 30 DOLLARS; THE COMPANY HAS LESS THAN ONE HUNDRED FULL-TIME EMPLOYEES, AT 31 LEAST EIGHTY PERCENT OF WHOM WORK IN THE STATE; AND, THE COMPANY HAS ITS 32 PRINCIPAL RESEARCH AND DEVELOPMENT AND MANUFACTURING FACILITIES LOCATED 33 IN THE STATE. IN THE EVENT THAT A COMPANY MOVES ITS RESEARCH AND DEVEL- 34 OPMENT OR MANUFACTURING FACILITIES OR MORE THAN TWENTY PERCENT OF ITS 35 EMPLOYEES OUT OF THE STATE, THE FOUNDATION SHALL REQUIRE THE COMPANY TO 36 REPAY AN AMOUNT EQUAL TO AT LEAST FIVE TIMES THE FOUNDATION'S TOTAL 37 INVESTMENT; 38 (D) MATCHING GRANTS AND/OR LOANS TO SMALL BUSINESSES IN NEW YORK STATE 39 FOR COMMERCIAL DEVELOPMENT OF THEIR INNOVATIONS OR TECHNOLOGIES IN THE 40 FOCUS AREA INTO NEW PRODUCTS OR PROCESSES TO BE MANUFACTURED IN NEW 41 YORK. ANY REPAYMENTS OF LOANS OR EARNINGS ON INVESTMENTS MADE BY THE 42 FOUNDATION FROM THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE FUND SHALL 43 BE DEPOSITED IN SUCH FUND. THE FOUNDATION MAY APPROVE GRANTS AND/OR 44 LOANS TO BUSINESSES INCORPORATED IN NEW YORK STATE FOR UP TO ONE-THIRD 45 OF THE COSTS, INCLUDING WORKFORCE TRAINING, ASSOCIATED WITH THE DEVELOP- 46 MENT OF NEW PRODUCTS OR PROCESSES FROM INVENTIONS OR TECHNOLOGIES OWNED 47 BY SUCH BUSINESSES, PROVIDED THAT THE GRANT DOES NOT EXCEED TWO HUNDRED 48 FIFTY THOUSAND DOLLARS; THE COMPANY HAS LESS THAN ONE HUNDRED FULL-TIME 49 EMPLOYEES, AT LEAST EIGHTY PERCENT OF WHOM WORK IN THE STATE; AND, THE 50 COMPANY HAS ITS PRINCIPAL RESEARCH AND DEVELOPMENT AND MANUFACTURING 51 FACILITIES LOCATED IN THE STATE. IN THE EVENT THE COMPANY MOVES ITS 52 RESEARCH AND DEVELOPMENT OR MANUFACTURING FACILITIES OR MORE THAN TWENTY 53 PERCENT OF ITS EMPLOYEES OUT OF THE STATE, THE FOUNDATION SHALL REQUIRE 54 THE COMPANY TO REPAY AN AMOUNT EQUAL TO AT LEAST FIVE TIMES THE FOUNDA- 55 TION'S TOTAL INVESTMENT; AND A. 253 4 1 (E) GRANTS TO BUSINESSES IN NEW YORK STATE TO OFFSET SOME OR ALL OF 2 THE COSTS OF FILING FOR FEDERAL REGULATORY APPROVAL FOR NEW OR MODIFIED 3 PRODUCTS OR PROCESSES WITHIN THE FOCUS AREA. THE FOUNDATION MAY APPROVE 4 GRANTS TO BUSINESSES INCORPORATED IN NEW YORK STATE PROVIDED THAT THE 5 COMPANY HAS ITS PRINCIPAL RESEARCH AND DEVELOPMENT AND MANUFACTURING 6 FACILITIES LOCATED IN THE STATE. IN THE EVENT THE COMPANY MOVES THE 7 MANUFACTURE OF THE PRODUCT OUT OF NEW YORK STATE WITHIN A PERIOD OF FIVE 8 YEARS, THE FOUNDATION SHALL REQUIRE THE COMPANY TO REPAY AN AMOUNT EQUAL 9 TO AT LEAST FIVE TIMES THE FOUNDATION'S TOTAL INVESTMENT. THE FOUNDATION 10 SHALL GIVE PRIORITY TO COMPANIES WITH LESS THAN ONE HUNDRED FULL-TIME 11 EMPLOYEES. 12 3. PURSUANT TO SECTION THIRTY-ONE HUNDRED FIFTY-ONE OF THIS TITLE, THE 13 FOUNDATION SHALL PROMULGATE REGULATIONS ESTABLISHING THE APPLICATION 14 PROCESS AND THE CRITERIA THAT WILL BE USED TO EVALUATE APPLICATIONS FOR 15 GRANTS AND INVESTMENTS FROM THE BIOSCIENCES COMMERCIALIZATION ASSISTANCE 16 FUND. SUCH REGULATIONS SHALL ALLOW A COMMERCIALIZATION TIME FRAME OF UP 17 TO FIFTEEN YEARS. SUCH APPLICATIONS SHALL INCLUDE, BUT NOT BE LIMITED 18 TO, A DESCRIPTION OF THE EXPECTED SIGNIFICANCE OF THE PROJECT TO NEW 19 YORK STATE, INCLUDING THE ESTIMATED NUMBER OF JOBS THAT COULD BE CREATED 20 AS A RESULT OF THE PROJECT. IN SELECTING APPLICATIONS FOR FUNDING THE 21 FOUNDATION SHALL GIVE PRIORITY TO THOSE PROJECTS THAT HAVE THE GREATEST 22 POTENTIAL FOR COMMERCIAL SUCCESS AND EVENTUAL JOB CREATION IN NEW YORK 23 STATE OR THAT WILL HAVE THE LARGEST POSITIVE IMPACT ON THE HEALTH AND 24 WELFARE OF THE STATE'S CITIZENS OR ON THE NATURAL OR BUILT ENVIRONMENT. 25 S 3. Notwithstanding any other law to the contrary, any appropriations 26 to the New York state foundation for science, technology and innovation 27 board from the general fund, local assistance account for the incentive 28 program part of the research development program established pursuant to 29 section 209-p of the executive law that have not been expended or 30 committed, as well as any other appropriations that may be so desig- 31 nated, may be made available for the purposes of the biosciences commer- 32 cialization assistance fund. 33 S 4. This act shall take effect on the one hundred eightieth day after 34 it shall have become a law; provided, however, that effective immediate- 35 ly, the addition, amendment and/or repeal of any rule or regulation 36 necessary for the implementation of this act on its effective date is 37 authorized and directed to be made and completed on or before such 38 effective date.