Establishes a biomedical research grants and working capital loan program within the urban development corporation

All monies dispersed shall be awarded only after such applications have been scientifically peer reviewed to ensure that the money is being spent prudently. It. is hoped that by promoting new biomedical research in New York that there will be additional spin-off benefits such as the expansion of manufacturing operations of products developed by such new technological advances.

New York is one of the nation's leaders in the manufacture of precision instruments, so encouraging the location of expanded research facilities in this State, may give our State's manufacturers an added "up" in securing contracts to manufacture new biomedical products. Further, the conduct of bio-medical research tends to occur in concentrated geographical locations. Encouraging the expansion of already existing research facilities may lead to the attraction of new research facilities and ancillary businesses associated such research.

Summary of specific provisions

Section 1: Adds new section 16-v to the New York State Urban Development Corporation Act to establish the Biomedical Research Grants and Working Capital Loan Program. This section provides definitions for the terms "Research Institution" and "Biomedical Research".

The new section 16-t establishes revolving loan and grant application criteria, a scientific peer review system, a funding stream that may be utilized to finance the program, and an advisory board to assist the Corporation in its success.

The biomedical research grants and working capital loan program can be funded by the Urban Development Corporation (UDC) and other sources of revenue. The Program could provide grants for salaries of biomedical researchers, staff support and non-personal service at biomedical research institutions.

The program could also provide working capital loans for projects and new equipment at such institutions. The bill would establish criteria for applying for program grants and loans, scientific peer review of all grant and loan applications, and require the fund to consist of appropriated amounts, repayments of loan amounts and interest earnings. The bill would establish an advisory board to oversee the process of providing grants and loans and require UDC to submit a biennial program evaluation to the Director of the Division of the Budget and to the State Legislature.

Section 2: States the effective date.

Justification

New York State's medical schools and research institutions are struggling to take advantage of a national boom in biomedical discovery and Federal grant-giving generosity. At the end of the 1990s, New York institutions received $970 million, or about 10% of the $9 billion available, from the National Institutes of Health (NIH), the country's largest and most prestigious source of biomedical research money. While the actual dollar amount of New York's grants has grown, the state's share is far less than the 15.2% New York was awarded in 1983.

As a result of rising competition from other states, New York has fallen from being the No. 1 recipient of grants from NIH and now ranks third behind California and Massachusetts. As New York's share of such grants has declined, the state has lost out on $2.4 billion in research grants as well as other income and jobs that money would have generated.

In 1998, the Federal government announced that it will double the NIH research budget during the next five years. The infusion of Federal money comes at a time of surging biomedical discoveries in areas like cancer treatment, new pharmaceutical treatment regimens, AIDS therapies and the identification of genes associated with particular diseases. In addition, the recent Federal Stimulus Law to help this nation out of the "Great Recession" has earmarked money for scientific research.

New York should take advantage of this increase in Federal funding to expand its medical and biological research industry, and hopefully its ancillary manufacturing processes of products related to such research. The state must do a better job of financing the recruitment and support of young research scientists who can attract these grants. Establishing a biomedical research grants and loan program would facilitate the continued vitality of New York's biomedical research institutions, and the growth of biotechnology-based businesses and New York's economy.

Prior legislative history

2010: S.6436 Committed to Finance - A.11176 Referred to Economic Development

Fiscal implications

None.

Effective date

Immediately.