Bill Text: NY S07893 | 2023-2024 | General Assembly | Introduced
Bill Title: Relates to incubators for entrepreneurial development.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-01-03 - REFERRED TO INTERNET AND TECHNOLOGY [S07893 Detail]
Download: New_York-2023-S07893-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 7893 IN SENATE January 3, 2024 ___________ Introduced by Sens. PARKER, ADDABBO -- read twice and ordered printed, and when printed to be committed to the Committee on Internet and Technology 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 25 services and facilities to entrepreneurs during the start-up phase of 26 their company life-cycle. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD04531-01-3S. 7893 2 1 (b) "applicant" means a university, a university-affiliated research 2 institute or independent not-for-profit incubator established for the 3 purpose of development of entrepreneurial companies through providing 4 business support resources for entrepreneurs during the start-up period. 5 2. The foundation shall: 6 (a) identify areas for which incubators should be designated including 7 areas that are related to industries with significant potential for 8 economic growth and development in New York state and technological 9 areas that are related to the enhancement of productivity in various 10 industries located in New York state. 11 (b) locate incubators, in each of the ten economic development regions 12 to the extent possible in areas where there is not already significant 13 support for business incubation. 14 (c) establish criteria that applicants must satisfy for designation as 15 an incubator, including, but not limited to the following: 16 (i) an established record of, or plan to conform to, best practices 17 including clear policies for business entry and graduation; 18 (ii) a comprehensive suite of entrepreneurial mentoring practices 19 including advising, coaching, planning and connecting to funding sourc- 20 es; 21 (iii) the capacity to secure substantial private and other govern- 22 mental funding for the proposed incubator, in amounts at least equal to 23 the total of support sought from the state; 24 (iv) the ability and willingness to cooperate with other local, 25 regional and statewide economic development, business support, ventures, 26 capital, workforce and other partners; 27 (v) the capacity to collaborate with business and industry. 28 (d) establish such requirements as it deems appropriate for the 29 format, content and filing of applications for designation as incubators 30 for entrepreneurial development. 31 (e) establish such procedures as it deems appropriate for the evalu- 32 ation of applications for designation as incubators for entrepreneurial 33 development, including the establishment of a review panel composed of 34 nationally recognized experts in business incubation. 35 (f) upon the approval of an application, confer an incubator desig- 36 nation upon a successful applicant for a period of five years, unless 37 otherwise revoked by the foundation. 38 (g) the foundation board shall approve rules and regulations for 39 selection of incubators and shall make final designations through vote 40 of majority of appointed members of the foundation board. 41 3. (a) From such funds as may be appropriated for this purpose by the 42 legislature, the foundation shall provide financial support, through 43 contracts or other means, to designated incubators for entrepreneurial 44 development, in order to enhance and accelerate the development of such 45 incubators. Funds received pursuant to this subdivision may be used for 46 purchase of equipment and fixtures, employment of direct service staff, 47 provision of internships, and other purposes approved by the foundation, 48 but may not be used for capital construction. In each case, the amount 49 provided by the foundation to an incubator shall be matched by commit- 50 ments of support from private and governmental sources other than state 51 sources. 52 (i) beginning in the fourth academic year following the academic year 53 in which an incubator is first designated, the foundation shall evaluate 54 its performance. 55 (ii) the foundation will initiate a redesignation process in accord- 56 ance with the standards and criteria set forth in paragraph (b) ofS. 7893 3 1 subdivision two of this section and in accordance with paragraphs (c) 2 and (d) of subdivision two of this section. 3 (iii) in year five the foundation may designate, subject to available 4 appropriations, additional incubators. 5 In the event a new incubator is selected in the redesignation process, 6 the foundation shall provide funds to such new incubator in accordance 7 with the funding match requirements set forth in subparagraphs (i) and 8 (ii) of this paragraph. 9 (b) Continued funding of the operations of each incubator shall be 10 based upon a showing that: the center continues to comply with the 11 criteria established by the foundation pursuant to paragraph (b) of 12 subdivision two of this section; a demonstration of assistance to emerg- 13 ing businesses in New York state; compliance with the rules, regulations 14 and guidelines of the foundation; and compliance with any contracts 15 between the foundation and the designated incubator. 16 (c) Each incubator shall report on its activities to the foundation 17 board in a manner and according to the schedule established by the foun- 18 dation, and shall provide such additional information as the foundation 19 may require. The foundation shall evaluate incubator operations using 20 methods such as site visits, reporting of specified information and 21 review evaluations using experts in entrepreneurial development. The 22 foundation shall notify each incubator of the results of its evaluations 23 and findings of deficiencies in the operation of such incubator and 24 shall work with such incubators to remedy such findings. If such factors 25 are not remedied, the foundation may withdraw the state funding support, 26 in whole or in part, or withdraw the incubator designation. 27 4. The foundation shall make an annual report of the incubators for 28 entrepreneurial development program to the governor and the speaker of 29 the assembly, the temporary president of the senate, the legislative 30 committees on economic development and to the fiscal committees not 31 later than December thirty-first of each year. Such report shall 32 include, but not be limited to, a list of active tenants, the results of 33 the foundation's evaluation of each incubator, a description of the 34 achievements of each incubator, a complete financial statement of the 35 corporation, any deficiencies in the operation of each incubator, reme- 36 dial actions recommended by the foundation, remedial actions taken by 37 the incubator, a description of business assistance provided by each 38 incubator, a description of any external funding attracted by the incu- 39 bator, partnerships entered into by the incubator, the amount of finan- 40 cial assistance provided by the foundation and the level of matching 41 funds provided each incubator and a description of the use of such 42 monies. 43 § 3. This act shall take effect immediately.
