N.Y. Executive Law § 209-t: College applied research and technology (CART) program

§ 209-t. College applied research and technology (CART) program. In

order to encourage greater collaboration between private industry,

universities and colleges within the state in the development and

application of new technologies, the office is authorized to designate

such technological areas as the office identifies as having significant

potential for economic growth in New York state, or in which the

application of new technologies could significantly enhance the

productivity and stability of New York state businesses. Such

designations shall be made in accordance with the standards and criteria

set forth in subdivision two of this section. Colleges so designated

shall be eligible for support from the office in the manner provided for

in subdivision three of this section, and for such additional support as

may otherwise be provided by law.

1. As used in this section:

(a) "College applied research and technology center" or "CART" means a

college or college-affiliated research institute or a consortium of such

institutions, designated by the office, which conducts a continuing

program of basic and applied research, development, and technology

transfer in one or more technological areas, in collaboration with and

through the support of private business and industry; and

(b) "Applicant" means a college or college-affiliated research

institute or a consortium of such institutions which request designation

as a CART center in accordance with such requirements as are established

by the office for this purpose. For purposes of this section, applicant

shall not include any college or university that has a center for

advanced technology pursuant to subdivision three of section thirty-one

hundred two-b of the public authorities law.

2. The office shall:

(a) identify technological areas for which a CART center should be

designated, including technological areas that are related to industries

with significant potential for economic growth and development in New

York state, and technological areas that are related to the enhancement

of productivity in various industries located in New York state;

(b) establish criteria that applicants shall satisfy for designation

as a CART, including, but not limited to the following:

(i) an established record of research, development and instruction in

the area or areas of technology involved;

(ii) the capacity to conduct research and development activities in

collaboration with business and industry;

(iii) the capacity to secure substantial private and other

governmental funding for the proposed college or college-affiliated

research institute or a consortium of such institutions, in amounts at

least fifty percent of the total of support sought from the state;

(iv) the ability and willingness to cooperate with other institutions

in the state in conducting research and development activities, and in

disseminating research results;

(v) the ability and willingness to work with technical and community

colleges in the state to enhance the quality of technical education in

the area or areas of technology involved;

(vi) the ability and willingness to cooperate with the office and

other economic development agencies in promoting the growth and

development in New York state of industries based upon or benefiting

from the area or areas of technology involved;

(c) establish such requirements as it deems appropriate for the

format, content and filing of applications for designation as CART

centers; and

(d) establish such procedures as it deems appropriate for the

evaluation of applications for designation as a college applied research

and technology center, including the establishment of peer review panels

composed of nationally recognized experts in the technological areas and

industries to which the application is related.

3. (a) From such funds as may be appropriated for this purpose by the

legislature, the office may provide financial support, through contracts

or other means, to designated college applied research and technology

centers in order to enhance and accelerate the development of such

centers. Funds received pursuant to this subdivision may be used for

purchase of equipment and fixtures, employment of faculty and support

staff, provision of graduate fellowships, and other purposes approved by

the office, but may not be used for capital construction. In each case,

the amount provided by the office to a center shall be matched by

commitments of support from private and governmental, other than state,

sources in accordance with the following:

(i) for the academic year in which it is first funded as a designated

center, and the four subsequent years, the amount provided by the office

to a center shall be matched fifty percent by the center; and

(ii) upon a finding by the office that a technological area has

continued significant potential for enhancing economic growth in New

York state, or the application of technologies in the area could

significantly enhance the productivity and stability of New York state

businesses, the office shall initiate a redesignation process in

accordance with subdivision two of this section. Such redesignation

process shall be initiated by the office in such a manner that not more

than one-third of the centers in existence at the time of redesignation

shall become due for such redesignation at the same time.

(1) In the event a new center is selected in the redesignation

process, the office shall provide funds to such new center in accordance

with the funding match requirements set forth in this paragraph.

(2) In the event a previously designated center is redesignated in the

same area of technology, which redesignation is effective for the sixth

academic year following the first academic year of both designation and

funding, then, in that year and in each year thereafter, the office

shall provide funds of up to three hundred fifty thousand dollars to be

matched fifty percent by the center, amounts in excess of three hundred

fifty thousand dollars shall be matched seventy-five percent by the

center.

(3) In the event a currently designated center is not selected in the

redesignation process for an additional term, or upon a finding by the

office that the area of advanced technology does not have significant

potential for enhancing economic growth in New York state, or upon a

finding that the application of technologies in that area would not

significantly enhance the productivity and stability of New York state

businesses, then the office shall, in the fifth academic year following

such center's first both designation and funding, which year shall be

the final year of funding for such center, provide an amount of up to

two hundred fifty thousand dollars.

(b) Continued funding of the operations of each center shall be based

upon a showing that: the center continues to comply with the criteria

established by the office pursuant to paragraph (b) of subdivision two

of this section; a demonstration of assistance to small businesses in

New York state through research, technology transfer or other means as

approved by the office; compliance with the rules, regulations and

guidelines of the office; and, compliance with any contracts between the

office and the designated applied research center.

(c) Each center shall report on its activities to the office in a

manner and according to the schedule established by the office, and

shall provide such additional information as the office may require. The

office shall evaluate center operations using methods such as site

visits, reporting of specified information and peer review evaluations

using experts in the field of technology in which the center was

designated. The office shall notify each center of the results of its

evaluations and findings of deficiencies in the operation of such center

or its research, education, or technology transfer activities and shall

work with such centers to remedy such findings. If such factors are not

remedied, the office may withdraw the state funding support, in whole or

in part, or withdraw the center designation.

(d) In order to encourage that the results of center research benefit

New York state, designation and continued funding of each center shall

be contingent upon each center's establishing within its licensing

guidelines the following: after payment of the inventor's share, a

reduced payment due to the university of any royalty, income or other

consideration earned from the license or sale of intellectual property

rights created or developed at, or through the use of, the facilities of

the center by any person or entity if the manufacturing or use resulting

from such intellectual property rights occurs within New York state. The

office shall promulgate rules and regulations regarding the provisions

of the licensing guidelines described herein as they apply to such

reduced payment, and such provisions shall be subject to the approval of

the office.

4. From such funds as may be appropriated for this purpose by the

legislature, the office may provide grants to any one college or

college-affiliated research institution for purposes of planning and

program development aimed at enabling such college or college-affiliated

research institution to qualify for designation as a center. Such grants

shall be awarded on a competitive basis, and shall be available only to

those applicants which, in the judgment of the office, may reasonably be

expected to be designated as centers. No applicant shall receive more

than one such grant.

5. (a) From such funds as may be appropriated for the purpose of

incentive grants or other funds which may be available from the office

to enhance center activities in areas of crucial interest in the state's

economic development, the office may provide grants, on a competitive

basis, to centers for projects including, but not limited to, those

which:

(i) explore new technologies with commercial application conducted

jointly by two or more centers or a center and non-center university,

college or community college;

(ii) are aimed at enhancing or accelerating the process of bringing

new products, particularly those under development by new small

businesses, to the marketplace; or

(iii) increase technology transfer projects with the state's mature

manufacturing industries in applying technology in their manufacturing

processes or for new product development.

(b) State support for incentive grants may be matched on an individual

basis by the office, which may consider the type of project and the

availability of amounts from private, university and governmental, other

than state, sources.

6. (a) The office shall make a biannual report of the CART program to

the governor and the legislature not later than September first of every

other year. Such report shall include, but not be limited to, the

results of an evaluation of each center by the office, a description of

the achievement of each center, any deficiencies in the operation of

each center or its research, education and technology transfer

activities, remedial actions recommended by the office, remedial actions

taken by each center, a description of the small business assistance

provided by each center, a description of any incentive grant program

awarded a grant by the office and the achievements of such program, and

the amount of financial assistance provided by the office and the level

of matching funds provided by each center and the uses of such monies.

(b) Bi-annual reports shall include a discussion of any fields of

technology that the office has identified as having significant

potential for economic growth or improved productivity and stability of

New York state businesses and in which collaboration with a center for

advanced technology is encouraged.