N.Y. Public Authorities Law § 3102-b: Centers for advanced technology

§ 3102-b. Centers for advanced technology. In order to encourage

greater collaboration between private industry and the universities of

the state in the development and application of new technologies, the

foundation is authorized to designate for advanced technology such areas

as integrated electronics, optics, biotechnology, telecommunications,

automation and robotics, electronics packaging, imaging technology and

others identified by the foundation as having significant potential for

economic growth in New York, or in which the application of new

technologies could significantly enhance the productivity and stability

of New York businesses. Such designations shall be made in accordance

with the standards and criteria set forth in subdivision two of this

section. Centers so designated shall be eligible for support from the

foundation 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) "center for advanced technology" or "center" means a university or

university-affiliated research institute or a consortium of such

institutions, designated by the foundation, which conducts a continuing

program of basic and applied research, development, and technology

commercialization in one or more technological areas, in collaboration

with and through the support of private business and industry; and

(b) "applicant" means a university or university-affiliated research

institute or a consortium of such institutions which request designation

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

the foundation for this purpose.

2. The foundation shall:

(a) identify technological areas for which centers 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 must satisfy for designation as

a center, 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 center, in amounts at least equal

to 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; and 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;

(v) the ability and willingness to cooperate with the foundation 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 centers

for advanced technology.

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

evaluation of applications for designation as centers for advanced

technology, 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 foundation may provide financial support, through

contracts or other means, to designated centers for advanced technology,

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

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

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

commitments of support from private and governmental other than state

sources provided that:

(i) funds or in-kind resources provided by the public or private

university of which the center is a part may be counted towards the

match;

(ii) such match shall not be required on a project-by-project basis;

(iii) matching funds received from businesses with no more than one

hundred employees shall count as double the actual dollar amount toward

the center's overall match requirement;

(iv) funds used by the center for any workforce development activities

required by the foundation shall not be included as part of the center's

award when determining the amount of matching funds required by the

foundation. Such activities shall include, but are not limited to,

helping incumbent workers expand their skill sets through short courses,

seminars, and workshops; providing industry-driven research assistant

opportunities for students, and aiding in the development of

undergraduate and graduate courses in the center's technology focus to

help ensure that students are trained to meet the needs of industry;

(v) centers may use not more then twenty-five percent of indirect

costs towards any match requirements.

(b) The amount provided by the foundation shall be made in accordance

with the following:

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

center, and the five subsequent years, the amount provided by the

foundation to a center shall be matched equally by the center;

(ii) beginning in the sixth academic year following the academic year

in which a center is first funded as a designated center and for each

academic year thereafter, amounts provided by the foundation of up to

seven hundred fifty thousand dollars shall be matched equally by the

center, amounts in excess of seven hundred fifty thousand dollars shall

be matched by the center in amounts of at least the percentage set forth

herein: in the sixth year, one hundred twenty percent; in the seventh

year, one hundred forty percent; in the eighth year, one hundred sixty

percent; in the ninth year, one hundred eighty percent; in the tenth

year and each year thereafter, two hundred percent;

(iii) beginning in the ninth academic year following the academic year

in which a center is first funded as a designated center, the foundation

shall evaluate such center's area of advanced technology to determine

whether it has continued significant potential for enhancing economic

growth in New York, or whether the application of technologies in the

area could significantly enhance the productivity and stability of New

York businesses;

(iv) upon a finding by the foundation that an area of advanced

technology has continued significant potential for enhancing economic

growth in New York, or that the application of technologies in the area

could significantly enhance the productivity and stability of New York

businesses, the foundation will initiate a redesignation process in

accordance with the standards and criteria set forth in paragraph (b) of

subdivision two and in accordance with paragraphs (c) and (d) of

subdivision two of this section.

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

process, the foundation shall provide funds to such new center in

accordance with the funding match requirements set forth in

subparagraphs (i) and (ii) of paragraph (a) of this subdivision.

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

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

academic year following the first academic year of both designation and

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

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

matched equally by the center, amounts in excess of seven hundred fifty

thousand dollars shall be matched by the center in amounts of at least

two hundred percent.

(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

foundation that the area of advanced technology does not have

significant potential for enhancing economic growth in New York, or upon

a finding that the application of technologies in that area would not

significantly enhance the productivity and stability of New York

businesses, then the foundation shall, in the tenth 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 five hundred thousand dollars.

(c) 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 foundation 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 foundation; evidence of partnerships with other

appropriate entities to develop outreach networks and ensure that

companies receive access to appropriate federal funding for technology

development and commercialization as well as non-research assistance

such as general business consulting. Appropriate partners are those with

which the center demonstrates a relationship that enhances and advances

the center's ability to aid economic growth in New York state; and

compliance with the rules, regulations and guidelines of the foundation;

and, compliance with any contracts between the foundation and the

designated center.

(d) Each center shall report on its activities to the foundation in a

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

shall provide such additional information as the foundation may require

provided, that quantifiable economic development impact measures are not

restricted to any period less than five years and that centers provide a

full description of all non-quantifiable measures. The foundation 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

foundation 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 commercialization activities and

shall work with such centers to remedy such findings. If such factors

are not remedied, the foundation may withdraw the state funding support,

in whole or in part, or withdraw the center designation.

(e) 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

foundation 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 foundation.

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

legislature, the foundation may provide grants to any one university or

university-affiliated research institution for purposes of planning and

program development aimed at enabling such university or

university-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

foundation 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

foundation to enhance center activities in areas of crucial interest in

the state's economic development, the foundation 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 foundation, which may consider the type of project and the

availability of amounts from private, university and governmental, other

than state, sources.

6. (a) The foundation shall make an annual report of the centers for

advanced technology program to the governor and the legislature not

later than September first of each year. Such report shall include, but

not be limited to, the results of the foundation's evaluation of each

center, a description of the achievement of each center, any

deficiencies in the operation of each center or its research, education

and technology commercialization activities, remedial actions

recommended by the foundation, 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

foundation and the achievements of such program, and the amount of

financial assistance provided by the foundation and the level of

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

(b) Annual reports shall include a discussion of any fields of

technology that the foundation has identified as having significant

potential for economic growth or improved productivity and stability of

New York businesses and in which no center for advanced technology has

been designated and recommendations of the foundation as to actions that

should be taken.