Bill Text: NY A05837 | 2019-2020 | General Assembly | Introduced

Bill Title: Relates to incubators for entrepreneurial development.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-02-19 - referred to economic development [A05837 Detail]

Download: New_York-2019-A05837-Introduced.html

                STATE OF NEW YORK
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    February 19, 2019
        Introduced by M. of A. MOSLEY -- read once and referred to the Committee
          on Economic Development
        AN  ACT to amend the public authorities law, in relation to the New York
          incubator network
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1.  Legislative intent. The legislature hereby recognizes that
     2  supporting a statewide network of university affiliated business incuba-
     3  tors,  selected  on  a competitive basis that maintain not only physical
     4  facilities but also most current industry best practice business  devel-
     5  opment  services is a cost effective approach to supporting start-up and
     6  early stage companies and helping  the  state's  creative  entrepreneurs
     7  successfully  transition  technological  breakthroughs  with  commercial
     8  potential from the laboratory to the  marketplace.  This  investment  in
     9  university affiliated business incubators will support regional develop-
    10  ment and local economic diversification, job creation, and the retention
    11  of the state's vast resources of intellectual capital.
    12    §  2.    The public authorities law is amended by adding a new section
    13  3102-h to read as follows:
    14    § 3102-h. New York incubator network. The foundation is authorized  to
    15  designate ten incubators as part of the New York incubator network. Such
    16  designations shall be made in accordance with the standards and criteria
    17  set  forth in subdivision two of this section and will last for a period
    18  of five years. Incubators so designated shall be  eligible  for  support
    19  from  the  foundation in the manner provided for in subdivision three of
    20  this section, and for  such  additional  support  as  may  otherwise  be
    21  provided by law.
    22    1.  As  used  in  this  section: (a) "incubator" or "incubate" means a
    23  university or university-affiliated research institute or  a  consortium
    24  of  such  institutions,  designated  by  the  foundation, which provides
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 5837                             2
     1  services and facilities to entrepreneurs during the  start-up  phase  of
     2  their company life-cycle.
     3    (b)  "applicant"  means a university, a university-affiliated research
     4  institute or independent not-for-profit incubator  established  for  the
     5  purpose  of  development  of entrepreneurial companies through providing
     6  business support resources for entrepreneurs during the start-up period.
     7    2. The foundation shall:
     8    (a) identify areas for which incubators should be designated including
     9  areas that are related to  industries  with  significant  potential  for
    10  economic  growth  and  development  in  New York state and technological
    11  areas that are related to the enhancement  of  productivity  in  various
    12  industries located in New York state.
    13    (b) locate incubators, in each of the ten economic development regions
    14  to  the  extent possible in areas where there is not already significant
    15  support for business incubation.
    16    (c) establish criteria that applicants must satisfy for designation as
    17  an incubator, including, but not limited to the  following:
    18    (i) an established record of, or plan to conform  to,  best  practices
    19  including clear policies for business entry and graduation;
    20    (ii)  a  comprehensive  suite  of  entrepreneurial mentoring practices
    21  including advising, coaching, planning and connecting to funding  sourc-
    22  es;
    23    (iii)  the  capacity  to  secure substantial private and other govern-
    24  mental funding for the proposed incubator, in amounts at least equal  to
    25  the total of support sought from the state;
    26    (iv)  the  ability  and  willingness  to  cooperate  with other local,
    27  regional and statewide economic development, business support, ventures,
    28  capital, workforce and other partners;
    29    (v) the capacity to collaborate with business and industry.
    30    (d) establish such  requirements  as  it  deems  appropriate  for  the
    31  format, content and filing of applications for designation as incubators
    32  for entrepreneurial development.
    33    (e)  establish  such procedures as it deems appropriate for the evalu-
    34  ation of applications for designation as incubators for  entrepreneurial
    35  development,  including  the establishment of a review panel composed of
    36  nationally recognized experts in business incubation.
    37    (f) upon the approval of an application, confer  an  incubator  desig-
    38  nation  upon  a  successful applicant for a period of five years, unless
    39  otherwise revoked by the foundation.
    40    (g) the foundation board  shall  approve  rules  and  regulations  for
    41  selection  of  incubators and shall make final designations through vote
    42  of majority of appointed members of the foundation board.
    43    3. (a) From such funds as may be appropriated for this purpose by  the
    44  legislature,  the  foundation  shall  provide financial support, through
    45  contracts or other means, to designated incubators  for  entrepreneurial
    46  development,  in order to enhance and accelerate the development of such
    47  incubators. Funds received pursuant to this subdivision may be used  for
    48  purchase  of equipment and fixtures, employment of direct service staff,
    49  provision of internships, and other purposes approved by the foundation,
    50  but may not be used for capital construction. In each case,  the  amount
    51  provided  by  the foundation to an incubator shall be matched by commit-
    52  ments of support from private and governmental sources other than  state
    53  sources.
    54    (i)  beginning in the fourth academic year following the academic year
    55  in which an incubator is first designated, the foundation shall evaluate
    56  its performance.

        A. 5837                             3
     1    (ii) the foundation will initiate a redesignation process  in  accord-
     2  ance  with  the  standards  and  criteria  set forth in paragraph (b) of
     3  subdivision two of this section and in accordance  with  paragraphs  (c)
     4  and (d) of subdivision two of this section.
     5    (iii)  in year five the foundation may designate, subject to available
     6  appropriations, additional incubators.
     7    In the event a new incubator is selected in the redesignation process,
     8  the foundation shall provide funds to such new incubator  in  accordance
     9  with  the  funding match requirements set forth in subparagraphs (i) and
    10  (ii) of this paragraph.
    11    (b) Continued funding of the operations of  each  incubator  shall  be
    12  based  upon  a  showing  that:  the  center continues to comply with the
    13  criteria established by the foundation  pursuant  to  paragraph  (b)  of
    14  subdivision two of this section; a demonstration of assistance to emerg-
    15  ing businesses in New York state; compliance with the rules, regulations
    16  and  guidelines  of  the  foundation;  and compliance with any contracts
    17  between the foundation and the designated incubator.
    18    (c) Each incubator shall report on its activities  to  the  foundation
    19  board in a manner and according to the schedule established by the foun-
    20  dation,  and shall provide such additional information as the foundation
    21  may require.  The foundation shall evaluate incubator  operations  using
    22  methods  such  as  site  visits,  reporting of specified information and
    23  review evaluations using experts  in  entrepreneurial  development.  The
    24  foundation shall notify each incubator of the results of its evaluations
    25  and  findings  of  deficiencies  in  the operation of such incubator and
    26  shall work with such incubators to remedy such findings. If such factors
    27  are not remedied, the foundation may withdraw the state funding support,
    28  in whole or in part, or withdraw the incubator designation.
    29    4. The foundation shall make an annual report of  the  incubators  for
    30  entrepreneurial  development  program to the governor and the speaker of
    31  the assembly, the temporary president of  the  senate,  the  legislative
    32  committees  on  economic  development  and  to the fiscal committees not
    33  later than  December  thirty-first  of  each  year.  Such  report  shall
    34  include, but not be limited to, a list of active tenants, the results of
    35  the  foundation's  evaluation  of  each  incubator, a description of the
    36  achievements of each incubator, a complete financial  statement  of  the
    37  corporation,  any deficiencies in the operation of each incubator, reme-
    38  dial actions recommended by the foundation, remedial  actions  taken  by
    39  the  incubator,  a  description  of business assistance provided by each
    40  incubator, a description of any external funding attracted by the  incu-
    41  bator,  partnerships entered into by the incubator, the amount of finan-
    42  cial assistance provided by the foundation and  the  level  of  matching
    43  funds  provided  each  incubator  and  a  description of the use of such
    44  monies.
    45    § 3. This act shall take effect immediately.