BILL NUMBER: S322
SPONSOR: RYAN S
 
TITLE OF BILL:
An act to amend the urban development corporation act, in relation to
establishing the New York state innovation voucher program
 
PURPOSE:
This legislation creates the New York State "Innovation Voucher"
program. Under the program, Innovation Vouchers would go directly to
small businesses, to provide dollar-for-dollar matching funds to acquire
expertise from colleges and universities, government laboratories and
public research institutes. A public-private partnership would be
formed, connecting small businesses with research and development facil-
ities to create jobs and innovation in New York.
 
SUMMARY OF PROVISIONS:
Section 1 defines the title as the "New York State Innovation Voucher
Program Act."
Section 2, Paragraph 1 establishes the New York State Innovation Voucher
Program within the Empire State Development Corporation
Section 2, Paragraph 2 defines the terms in the act.
Section 2, Paragraph 3 describes the selection of eligible recipients.
Section 2, Paragraph 4 requires the Empire State Development Corporation
to identify a list of potential research and development partners in New
York State, and post such list on their website, which would be required
to be updated quarterly.
Section 2, Paragraph 5 establishes Innovation Vouchers for up to $10,000
and requires the Empire State Development Corporation to institute
criteria for voucher eligibility determination. On rare occasions, Inno-
vation Vouchers of $50,000 may be awarded to an exceptional applicant.
Recipients must match each voucher dollar-for-dollar, and may choose a
research and development partner that they find compatible. The Empire
State Development Corporation is authorized to establish a payment
structure to the recipient through rules and regulations.
Section 2, Paragraph 6 requires the Empire State Development. Corpo-
ration to provide outreach to small businesses, including but not limit-
ed to minority- and women-owned enterprises and veteran-owned busi-
nesses.
Section 2, Paragraph 7 requires periodic evaluation of the Innovative
Voucher program to measure its economic impact.
Section 2, Paragraph 8 authorizes the Empire State Development Corpo-
ration to use funds available under the Economic Development Fund
(Section 16-m of the Urban Development Corporation Act) or from any
other funds Appropriated.
Section 3 amends Section 16-m of the Urban Development Corporation Act
to authorize the Innovative Vouchers program as an eligible program
under the Economic Development Fund.
Section 4 authorizes the Empire State Development Corporation to promul-
gate rules and regulations.
Section 5 sets the effective date.
 
JUSTIFICATION:
Small businesses often do not have the resources needed to harness
expertise in research and development. Meanwhile, scientific, technolog-
ical and other research facilities have the capacity to provide insights
and assistance to new projects. Funding the linkage between these two
groups would lead to new opportunities for economic growth in New York
State. Under this program, Innovation Vouchers would be issued directly
to small businesses that apply. Small businesses would be selected based
on the strength of their proposals and would then provide matching funds
of their own to take advantage and demonstrate a commitment to the
collaboration. The sum of the public and private monies would be
directed toward universities, national laboratories and public research
institutes for assisting the businesses with technical challenges to
innovation.
According to "The 2014 State New Economy Index" published by The Infor-
mation Technology and Innovation Foundation (ITIF), this is an idea that
has a recorded history of success in other countries, including Austria,
Belgium, Canada, Denmark, Germany, the Netherlands, Ireland, and Sweden.
In addition, Connecticut's "Entrepreneur Innovation Award" program
administered by the state's CT Next agency has proven that this is a
concept that can be successful in the United States.
The prospect of creating jobs for small businesses, while harnessing the
innovation of our research institutions, argues strongly for bringing
Innovation Vouchers to New York. The number of jobs created and the
economic momentum fostered would be the metric used to measure the
success of the program. Another significant performance metric that will
be analyzed is the number of patents produced as a result of the collab-
orations.
 
LEGISLATIVE HISTORY:
2024: S.1862 - Referred to Corporation, A.3549 - Referred to Small Busi-
ness
2023: S.1862 - Passed Senate, A.3549 - Referred to Small Business
2022: S.205 - Referred to Rules Committee, A.6317 - Referred to Small
Business
2021: S.205 - Referred to Finance Committee, A.6317 - Referred to Small
Business
2019-2020: S.4361 - Referred to Finance Committee, A.45 - Referred to
Small Business
2018: S.7546 - Referred to Corporations Committee, A.9671 - Referred to
Small Business
2017: S.817A - Passed Senate, A.1260 - Passed Assembly Vetoed by Gover-
nor, Veto NO 206
2015-2016: S.3894A - Referred to Finance, A.2126A - Passed Assembly
 
FISCAL IMPLICATIONS:
Undetermined.
 
EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall have become a law; provided, however, that any rules or regu-
lations necessary for the timely implementation of this act on its
effective date may be promulgated on or before such effective date.