Bill Text: NY A10399 | 2011-2012 | General Assembly | Introduced
Bill Title: Establishes the New York business incubator network.
Spectrum: Strong Partisan Bill (Republican 16-1)
Status: (Introduced - Dead) 2012-05-25 - referred to economic development [A10399 Detail]
Download: New_York-2011-A10399-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
10399
I N A S S E M B L Y
May 25, 2012
___________
Introduced by M. of A. KOLB -- read once and referred to the Committee
on Economic Development
AN ACT to amend the economic development law, in relation to establish-
ing the New York business incubator network; and to amend chapter 53
of the laws of 2012 appropriating money for aid to localities, in
relation to providing additional funding for technology development
organization matching grants
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 New York needs to support a statewide network of academic affiliated
3 business incubators. The New York business incubator network is designed
4 to accelerate the growth and success of entrepreneurial companies
5 through an array of business support resources and services that include
6 physical space, capital, coaching, common services, and networking
7 connections. Start-up and early-stage businesses will be selected on a
8 competitive basis to receive support under the program. Each business
9 incubator will utilize a system of best practices as established by the
10 division of science, technology and innovation to provide a cost effec-
11 tive approach to supporting start-up and early stage companies. Addi-
12 tional appropriation authority included in this bill will provide opera-
13 tional support for these incubators as well as increase funding for
14 technology transfer officers and assist in the transition technological
15 breakthroughs with commercial potential from the laboratory to the
16 marketplace. This investment in university affiliated business incuba-
17 tors will support regional development and local economic diversifica-
18 tion, job creation, and the retention of the state's vast resources of
19 intellectual capital.
20 S 2. The economic development law is amended by adding a new section
21 361 to read as follows:
22 S 361. NEW YORK BUSINESS INCUBATOR NETWORK. THE COMMISSIONER, IN COOP-
23 ERATION WITH THE DIVISION OF SCIENCE, TECHNOLOGY AND INNOVATION IS
24 AUTHORIZED TO ACCEPT APPLICATIONS AND DESIGNATE INCUBATORS AS PART OF
25 THE NEW YORK BUSINESS ACADEMIC INCUBATOR NETWORK. SUCH DESIGNATIONS
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15963-01-2
A. 10399 2
1 SHALL BE MADE IN ACCORDANCE WITH THE STANDARDS AND CRITERIA SET FORTH IN
2 SUBDIVISION TWO OF THIS SECTION. INCUBATORS SO DESIGNATED SHALL BE
3 ELIGIBLE FOR SUPPORT FROM THE URBAN DEVELOPMENT CORPORATION, AND FOR
4 SUCH ADDITIONAL SUPPORT AS MAY OTHERWISE BE PROVIDED BY LAW.
5 1. AS USED IN THIS SECTION: (A) "INCUBATOR" MEANS AN ACADEMIC INCUBA-
6 TOR FACILITY AS DEFINED IN SUBPARAGRAPH (VI) OF PARAGRAPH (E) OF SUBDI-
7 VISION TWELVE-G OF SECTION TWO HUNDRED TEN OF THE TAX LAW;
8 (B) "APPLICANT" MEANS A COLLEGE OR UNIVERSITY, OR COLLEGE OR UNIVERSI-
9 TY-AFFILIATED RESEARCH INSTITUTE OR FOUNDATION PROVIDING A BASE FOR AN
10 INCUBATOR; AND
11 (C) "DIVISION" MEANS THE DIVISION OF SCIENCE, TECHNOLOGY AND INNO-
12 VATION.
13 2. THE DIVISION SHALL:
14 (A) IDENTIFY GEOGRAPHIC AREAS WITH THE GREATEST POTENTIAL FOR GROWTH
15 AND DEVELOPMENT IN NEW YORK STATE AND TECHNOLOGICAL AREAS THAT ARE
16 RELATED TO THE ENHANCEMENT OF PRODUCTIVITY IN VARIOUS INDUSTRIES LOCATED
17 THROUGHOUT NEW YORK STATE;
18 (B) AID IN THE ESTABLISHMENT OF INCUBATORS AT ACCREDITED UNIVERSITIES
19 AND COLLEGES THROUGHOUT THE STATE TO THE EXTENT POSSIBLE IN AREAS WHERE
20 THERE IS NOT ALREADY SIGNIFICANT SUPPORT FOR BUSINESS INCUBATION;
21 (C) PURSUANT TO THE STANDARDS ADHERING TO AN INCUBATOR, ESTABLISH
22 CONGRUENT CRITERIA THAT APPLICANTS MUST SATISFY FOR DESIGNATION AS AN
23 INCUBATOR FOR THE PURPOSES OF A DESIGNATION AS A MEMBER OF THE NETWORK,
24 INCLUDING, BUT NOT LIMITED TO THE FOLLOWING:
25 (I) AN ESTABLISHED RECORD OF, OR PLAN TO CONFORM TO, BEST PRACTICES
26 INCLUDING CLEAR POLICIES FOR BUSINESS ENTRY AND GRADUATION;
27 (II) A COMPREHENSIVE SUITE OF ENTREPRENEURIAL MENTORING PRACTICES
28 INCLUDING ADVISING, COACHING, PLANNING AND CONNECTING TO FUNDING SOURC-
29 ES;
30 (III) THE CAPACITY TO SECURE SUBSTANTIAL PRIVATE AND OTHER NON-STATE
31 GOVERNMENTAL FUNDING FOR THE PROPOSED INCUBATOR, NOT INCLUDING DIRECT
32 SUPPORT FROM THE SPONSORING ACADEMIC INSTITUTION OR RELATED FOUNDATION,
33 IN AMOUNTS AT LEAST EQUAL TO THE TOTAL OF SUPPORT SOUGHT FROM THE STATE
34 OR ITS DIVISIONS;
35 (IV) THE ABILITY AND WILLINGNESS TO COOPERATE AND COORDINATE WITH
36 SMALL BUSINESS DEVELOPMENT CENTERS AND WITH OTHER LOCAL, REGIONAL AND
37 STATEWIDE ECONOMIC DEVELOPMENT ORGANIZATIONS, STATEWIDE BUSINESS INCUBA-
38 TOR ASSOCIATIONS, BUSINESS SUPPORT NETWORKS, VENTURE AND ANGEL CAPITAL
39 FUNDING SOURCES, AND WORKFORCE DEVELOPMENT ADVOCATES; AND
40 (V) THE CAPACITY TO COLLABORATE WITH BUSINESS AND INDUSTRY INDIVIDUAL-
41 LY AND AS PART OF A STATEWIDE INCUBATOR ASSOCIATION;
42 (D) ESTABLISH SUCH REQUIREMENTS AS IT DEEMS APPROPRIATE FOR THE
43 FORMAT, CONTENT AND FILING OF APPLICATIONS FOR DESIGNATION AS INCUBA-
44 TORS;
45 (E) ESTABLISH SUCH PROCEDURES AS IT DEEMS APPROPRIATE FOR THE EVALU-
46 ATION OF APPLICATIONS FOR DESIGNATION AS INCUBATORS, INCLUDING THE
47 ESTABLISHMENT OF A REVIEW PANEL COMPOSED OF STATEWIDE RECOGNIZED EXPERTS
48 IN BUSINESS INCUBATION; AND
49 (F) UPON THE APPROVAL OF AN APPLICATION BY THE COMMISSIONER, CONFER AN
50 INCUBATOR DESIGNATION UPON A SUCCESSFUL APPLICANT UNLESS OTHERWISE
51 REVOKED BY THE COMMISSIONER IN CONSULTATION WITH THE DIVISION.
52 3. THE COMMISSIONER SHALL APPROVE AND PROMULGATE RULES AND REGULATIONS
53 FOR SELECTION OF INCUBATORS AND SHALL MAKE FINAL DESIGNATIONS REGARDING
54 ALL MATTERS RELATING TO THE STATUS OF AN APPLICANT OR INCUBATOR.
55 4. (A) (I) FROM SUCH FUNDS AS MAY BE APPROPRIATED OR OTHERWISE AUTHOR-
56 IZED FOR THIS PURPOSE BY THE LEGISLATURE, THE URBAN DEVELOPMENT CORPO-
A. 10399 3
1 RATION SHALL PROVIDE FINANCIAL SUPPORT, THROUGH CONTRACTS OR OTHER
2 MEANS, TO ENHANCE AND ACCELERATE THE DEVELOPMENT OF SUCH INCUBATORS.
3 FUNDS RECEIVED PURSUANT TO THIS SUBDIVISION MAY BE USED FOR PURCHASE OF
4 EQUIPMENT AND FIXTURES, EMPLOYMENT OF TECHNOLOGY TRANSFER STAFF AND
5 PROVISION OF INTERNSHIPS SERVING THE INCUBATOR, BUT NOT PRIMARILY SERV-
6 ING AS EMPLOYEES OF MEMBER FIRMS LEASING SPACE IN AN INCUBATOR, AND
7 OTHER PURPOSES APPROVED BY THE DIVISION, BUT MAY NOT BE USED FOR CAPITAL
8 CONSTRUCTION OF REAL PROPERTY. PARTICIPATING BUSINESS INCUBATORS SHALL
9 BE ELIGIBLE FOR COMPETITIVE GRANTS UP TO TWO HUNDRED THOUSAND ANNUALLY,
10 IF MATCHED AT A RATE OF 1AGING BY PRIVATE INVESTMENT.
11 (II) BEGINNING IN THE FOURTH ACADEMIC YEAR FOLLOWING THE ACADEMIC YEAR
12 IN WHICH AN INCUBATOR IS FIRST DESIGNATED, THE INCUBATOR SHALL PRESENT
13 TO THE COMMISSIONER A BIANNUAL REPORT CATALOGING ITS REVENUE AND
14 EXPENSES, THE NUMBER OF PRIVATE SECTOR FIRMS THAT HAVE LEASED SPACE IN
15 THE INCUBATOR, THE NUMBER OF COMPANIES THAT HAVE GRADUATED FROM AN INCU-
16 BATOR, WHETHER SUCH GRADUATING COMPANIES HAVE REMAINED IN NEW YORK
17 STATE, AND BEST ESTIMATES AS TO THE NUMBER OF FULL TIME EQUIVALENT POSI-
18 TIONS CREATED BY INCUBATOR MEMBER COMPANIES AND THEIR SUCCESSORS FOR A
19 PERIOD OF FIVE YEARS UPON GRADUATION. THE DIVISION SHALL EVALUATE SUCH
20 INCUBATOR'S PERFORMANCE ACCORDING TO THE ABOVE LISTED CRITERIA, AND
21 SHALL PRESENT ITS FINDINGS TO THE COMMISSIONER WHO SHALL MAKE A BINDING
22 RECOMMENDATION WHETHER SUCH INCUBATOR SHALL RETAIN ITS STATUS AS A
23 MEMBER OF THE NETWORK.
24 (III) THE DIVISION CAN RECOMMEND, SUBJECT TO THE APPROVAL OF THE
25 COMMISSIONER, ADDITIONAL MEMBERS TO THE NETWORK ACCORDING TO THE CRITE-
26 RIA ESTABLISHED IN SUBDIVISION TWO OF THIS SECTION.
27 (B) ADDITIONAL FUNDING OF THE OPERATIONS OF EACH INCUBATOR RECIPIENT
28 IN THE NETWORK SHALL BE BASED UPON A SHOWING THAT: THE INCUBATOR CONTIN-
29 UES TO COMPLY WITH THE CRITERIA ESTABLISHED BY THE COMMISSIONER IN
30 CONSULTATION WITH THE DIVISION PURSUANT TO PARAGRAPH (B) OF SUBDIVISION
31 TWO OF THIS SECTION; A DEMONSTRATION OF ASSISTANCE TO EMERGING BUSI-
32 NESSES IN NEW YORK STATE; COMPLIANCE WITH THE RULES, REGULATIONS AND
33 GUIDELINES OF THE URBAN DEVELOPMENT CORPORATION, IN PARTICULAR, AND THE
34 DIVISION; AND COMPLIANCE WITH ANY CONTRACTS BETWEEN THE URBAN DEVELOP-
35 MENT CORPORATION AND THE DESIGNATED INCUBATOR.
36 (C) EACH INCUBATOR SHALL REPORT TO THE COMMISSIONER IN A MANNER AND
37 ACCORDING TO THE SCHEDULE ESTABLISHED BY THE DIVISION, AND SHALL PROVIDE
38 SUCH ADDITIONAL INFORMATION AS THE COMMISSIONER MAY REQUIRE. THE DIVI-
39 SION SHALL EVALUATE INCUBATOR OPERATIONS USING METHODS SUCH AS SITE
40 VISITS, REPORTING OF SPECIFIED INFORMATION AND REVIEW EVALUATIONS USING
41 EXPERTS IN ENTREPRENEURIAL DEVELOPMENT. IF THE DIVISION IS UNSATISFIED
42 WITH THE PROGRESS OF AN INCUBATOR MEMBER IT SHALL NOTIFY SUCH INCUBATOR
43 OF THE RESULTS OF ITS EVALUATIONS AND FINDINGS OF DEFICIENCIES IN THE
44 OPERATION OF SUCH INCUBATOR AND SHALL ALLOW AND COOPERATE WITH SUCH
45 INCUBATORS TO REMEDY SUCH FINDINGS IN A TIMELY MANNER. IF SUCH FACTORS
46 ARE NOT REMEDIED, THE COMMISSIONER MAY WITHDRAW THE STATE FUNDING
47 SUPPORT, IN PART UNTIL SUCH DEFICIENCIES ARE REMEDIED, OR IN WHOLE IMME-
48 DIATELY FOLLOWING THE WITHDRAWAL OF AN INCUBATOR NETWORK DESIGNATION.
49 5. BEGINNING NO LATER THAN THE END OF THE FOURTH YEAR OF THE FORMATION
50 OF THE NETWORK, THE COMMISSIONER SHALL MAKE A BIANNUAL REPORT OF THE
51 INCUBATOR NETWORK PROGRAM TO THE GOVERNOR, THE SPEAKER OF THE ASSEMBLY,
52 THE TEMPORARY PRESIDENT OF THE SENATE, THE MINORITY LEADER OF THE ASSEM-
53 BLY, THE MINORITY LEADER OF THE SENATE, THE LEGISLATIVE COMMITTEES ON
54 ECONOMIC DEVELOPMENT AND TO THE FISCAL COMMITTEES NOT LATER THAN DECEM-
55 BER THIRTY-FIRST OF EACH ENUMERATED YEAR. SUCH REPORT SHALL INCLUDE, BUT
56 NOT BE LIMITED TO, A LIST OF IMMEDIATE PAST AND ACTIVE TENANTS OF THE
A. 10399 4
1 INCUBATORS IN THE NETWORK, THE RESULTS OF THE DIVISION'S EVALUATION OF
2 EACH INCUBATOR, A DESCRIPTION OF THE ACHIEVEMENTS OF EACH INCUBATOR, ANY
3 DEFICIENCIES IN THE OPERATION OF EACH INCUBATOR, REMEDIAL ACTIONS RECOM-
4 MENDED BY THE DIVISION, REMEDIAL ACTIONS TAKEN BY THE INCUBATOR, A
5 DESCRIPTION OF BUSINESS ASSISTANCE PROVIDED BY EACH INCUBATOR, A
6 DESCRIPTION OF ANY EXTERNAL FUNDING ATTRACTED BY THE INCUBATOR, PARTNER-
7 SHIPS ENTERED INTO BY THE INCUBATOR, THE AMOUNT OF FINANCIAL ASSISTANCE
8 PROVIDED BY THE STATE, INCLUDING THE URBAN DEVELOPMENT CORPORATION, AND
9 THE LEVEL OF MATCHING FUNDS PROVIDED EACH INCUBATOR, AND A DESCRIPTION
10 OF THE USE OF SUCH MONIES TO THE EXTENT THAT SUCH DISCLOSURE DOES NOT
11 COMPROMISE GENERALLY ACCEPTED BUSINESS CONFIDENTIALITY STANDARDS.
12 S 3. Section 1 of chapter 53 of the laws of 2012, enacting the aid to
13 localities budget, is amended by repealing the items herein below set
14 forth in brackets and by adding to such section the items underscored in
15 this section.
16 DEPARTMENT OF ECONOMIC DEVELOPMENT
17 AID TO LOCALITIES 2012-13
18 HIGH TECHNOLOGY PROGRAM
19 General Fund
20 Local Assistance Account
21 Technology development organization matching grants, to
22 be awarded on a competitive basis in accordance with
23 the provisions of section 3102-d of the public author-
24 ities law. Notwithstanding any inconsistent provision
25 of law, the director of the budget may suballocate up
26 to the full amount of this appropriation to any
27 department, agency or authority. No funds shall be
28 expended from this appropriation until the director of
29 the budget has approved a spending plan .. [1,382,000] 3,382,000
30 S 4. This act shall take effect immediately.
