Bill Text: NY A03488 | 2017-2018 | General Assembly | Introduced
Bill Title: Establishes the biosciences commercialization assistance fund within the division for science, technology and innovation.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2018-01-03 - referred to economic development [A03488 Detail]
Download: New_York-2017-A03488-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 3488 2017-2018 Regular Sessions IN ASSEMBLY January 27, 2017 ___________ Introduced by M. of A. RYAN -- read once and referred to the Committee on Economic Development AN ACT to amend the public authorities law, in relation to establishing the biosciences commercialization assistance fund within the division of 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 § 3150. Definitions. As used in this [section] title: 5 1. "[Foundation] Division" shall mean the New York state [foundation] 6 division for science, technology and innovation created by [this title] 7 section three hundred sixty of the economic development law; 8 2. "Executive director" shall mean the executive director of the 9 [foundation] division; 10 3. "Board" shall mean the New York state [foundation] division for 11 science, technology and innovation board; 12 4. "Regional partnerships" shall mean any association or group which 13 is: (a) comprised of local economic development organizations and a 14 center of excellence as defined by section three of part T of chapter 15 eighty-four of the laws of two thousand two, or in the absence of such 16 center in the region, at least one institution of higher education 17 involved in commercialization efforts similar to such centers of excel- 18 lence and may include a combination of private businesses, business 19 support organizations, commercial lending institutions, venture capital 20 companies, angel investor networks or foundations; (b) formed for the 21 creation and administration of regional partnership programs; and (c) 22 certified by the [foundation] division as the regional partnership; EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD07937-01-7A. 3488 2 1 5. "Regional partnership coordinator" shall mean a nonprofit organiza- 2 tion chosen by a regional partnership and certified by the [foundation] 3 division to administer the regional partnership programs; 4 6. "Partnership" shall mean regional partnerships; [and] 5 7. "Coordinator" shall mean regional partnership coordinator[.]; 6 8. "Research entity" shall mean a not-for-profit college, university, 7 medical center, laboratory or other institution that conducts an inten- 8 sive, ongoing program of study directed toward greater knowledge of a 9 scientific focus area or toward applying new scientific knowledge to 10 meet a recognized need; 11 9. "Focus area" shall mean biosciences research including, but not 12 limited to, the basic, applied, or translational research that leads to 13 the development of therapeutics, diagnostics, or devices, to improve 14 human health or agriculture and that require federal food and drug 15 administration approval. 16 § 2. The public authorities law is amended by adding a new section 17 3154-a to read as follows: 18 § 3154-a. Biosciences commercialization assistance fund. 1. The bios- 19 ciences commercialization assistance fund is hereby created for the 20 purpose of: 21 (a) Advancing the early-stage development of commercially promising 22 inventions in the focus area owned by research entities located in New 23 York state; 24 (b) Encouraging entrepreneurs to form new companies located in New 25 York state to manufacture and market such inventions; 26 (c) Enabling small businesses resident in the state to conduct applied 27 research and development necessary to commercialize research entity 28 inventions; and 29 (d) Encouraging businesses resident in the state to develop new 30 products or processes based on promising inventions or technologies 31 owned by such businesses through grants or loans to such resident busi- 32 nesses. 33 2. Monies in the biosciences commercialization assistance fund shall 34 be available to eligible research entities, start-ups, small companies, 35 and other businesses in New York state, with anticipated commercializa- 36 tion time frames of up to fifteen years, for development and commercial- 37 ization of products. The division shall use the monies available in the 38 biosciences commercialization assistance fund for: 39 (a) Grants to research entities located in New York state to develop 40 commercially promising research discoveries in the focus area beyond the 41 conceptual stage in order to further the chance of commercialization and 42 increase market value. The division may approve grants for eligible 43 projects, provided such grants do not exceed one hundred thousand 44 dollars and are used exclusively to accelerate the commercialization of 45 discoveries that have the potential to positively impact existing compa- 46 nies located in New York or lead to the formation of new companies 47 located in New York. Grants may not be used to commercialize discoveries 48 that will be licensed to firms that do not have their research and 49 development and manufacturing facilities and at least eighty percent of 50 their employees located in New York state. The division shall approve 51 grants only to those research entities that can demonstrate the ability 52 to guide the development of the discoveries toward successful commer- 53 cialization in the state. Any revenues earned by the research entity 54 from the licensing of an invention developed with a division grant must 55 be reinvested in the research entity's educational and research programs 56 or technology transfer activities;A. 3488 3 1 (b) Investments in start-up companies formed by entrepreneurs to 2 commercialize intellectual property in the focus area licensed from 3 research entities located in New York state. The division may approve 4 investments in new companies being formed to further develop, produce, 5 and sell inventions licensed from research institutions in New York 6 state, provided that the company's research and development and/or manu- 7 facturing facilities will be located in New York state; the company 8 commits to remaining in the state; the investment does not exceed one 9 hundred fifty thousand dollars per company; and, the investment is used 10 solely for operating expenses approved by the division. In return for 11 investment by the division, the division shall take an equity position 12 in the company or negotiate royalty payments based on the sale of any 13 products resulting from the licensed invention. In the event that a 14 company moves its research and development or manufacturing facilities 15 or more than twenty percent of its employees out of the state, the divi- 16 sion shall require the company to repay an amount equal to at least five 17 times the division's total investment; 18 (c) Matching grants to small businesses in New York state for cooper- 19 ative applied research and development projects in the focus area with 20 research institutions to translate promising discoveries of the research 21 institution into commercially viable products. The division may approve 22 matching grants for projects undertaken jointly by a research entity and 23 a business incorporated in New York state for up to half of the cost of 24 projects that will apply discoveries or use the intellectual resources 25 of the research entity to develop new, or to improve existing, commer- 26 cial materials, devices, systems, processes, or prototypes, provided 27 that the grants do not exceed one hundred fifty thousand dollars; the 28 company has less than one hundred full-time employees, at least eighty 29 percent of whom work in the state; and, the company has its principal 30 research and development and manufacturing facilities located in the 31 state. In the event that a company moves its research and development or 32 manufacturing facilities or more than twenty percent of its employees 33 out of the state, the division shall require the company to repay an 34 amount equal to at least five times the division's total investment; 35 (d) Matching grants and/or loans to small businesses in New York state 36 for commercial development of their innovations or technologies in the 37 focus area into new products or processes to be manufactured in New 38 York. Any repayments of loans or earnings on investments made by the 39 division from the biosciences commercialization assistance fund shall be 40 deposited in such fund. The division may approve grants and/or loans to 41 businesses incorporated in New York state for up to one-third of the 42 costs, including workforce training, associated with the development of 43 new products or processes from inventions or technologies owned by such 44 businesses, provided that the grant does not exceed two hundred fifty 45 thousand dollars; the company has less than one hundred full-time 46 employees, at least eighty percent of whom work in the state; and, the 47 company has its principal research and development and manufacturing 48 facilities located in the state. In the event the company moves its 49 research and development or manufacturing facilities or more than twenty 50 percent of its employees out of the state, the division shall require 51 the company to repay an amount equal to at least five times the divi- 52 sion's total investment; and 53 (e) Grants to businesses in New York state to offset some or all of 54 the costs of filing for federal regulatory approval for new or modified 55 products or processes within the focus area. The division may approve 56 grants to businesses incorporated in New York state provided that theA. 3488 4 1 company has its principal research and development and manufacturing 2 facilities located in the state. In the event the company moves the 3 manufacture of the product out of New York state within a period of five 4 years, the division shall require the company to repay an amount equal 5 to at least five times the division's total investment. The division 6 shall give priority to companies with less than one hundred full-time 7 employees. 8 3. Pursuant to section three hundred sixty of the economic development 9 law, the division shall promulgate regulations establishing the applica- 10 tion process and the criteria that will be used to evaluate applications 11 for grants and investments from the biosciences commercialization 12 assistance fund. Such regulations shall allow a commercialization time 13 frame of up to fifteen years. Such applications shall include, but not 14 be limited to, a description of the expected significance of the project 15 to New York state, including the estimated number of jobs that could be 16 created as a result of the project. In selecting applications for fund- 17 ing the division shall give priority to those projects that have the 18 greatest potential for commercial success and eventual job creation in 19 New York state or that will have the largest positive impact on the 20 health and welfare of the state's citizens or on the natural or built 21 environment. 22 § 3. Notwithstanding any other law to the contrary, any appropriations 23 to the New York state division of science, technology and innovation 24 board from the general fund, local assistance account for the incentive 25 program part of the research development program established pursuant to 26 section 209-p of the executive law that have not been expended or 27 committed, as well as any other appropriations that may be so desig- 28 nated, may be made available for the purposes of the biosciences commer- 29 cialization assistance fund. 30 § 4. This act shall take effect on the one hundred eightieth day after 31 it shall have become a law; provided, however, that effective immediate- 32 ly, the addition, amendment and/or repeal of any rule or regulation 33 necessary for the implementation of this act on its effective date is 34 authorized and directed to be made and completed on or before such 35 effective date.
