What's happening
This bill creates the New York State Innovation Voucher Program to help small businesses access research and development resources for innovative products and job growth.
Why it matters
Targets truly innovative projects. The program specifically prioritizes projects with high potential for economic growth and job creation, especially in emerging technology fields, meaning it aims to boost sectors where New York could become a leader.
Direct collaboration with public R&D resources. By facilitating partnerships between small businesses and New York’s colleges, universities, and public research institutes, the program gives businesses access to cutting-edge facilities and expertise that might otherwise be out of reach.
Requires recipient investment and oversight. Small businesses must match the value of the voucher dollar-for-dollar, ensuring they are committed to the project’s success and leveraging their own resources alongside public funds; advisory committees with diverse expertise will evaluate and oversee project selection.
Emphasizes transparency and inclusion. The bill mandates regular public reporting on program outcomes—such as jobs created, patents produced, and economic impact—and includes outreach to minority-, women-, and veteran-owned businesses, aiming for broader participation and accountability.
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Who cares
Headline styles
Fund Small Business Innovation
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 55
No co-sponsors yet.
History
- Substituted by A1260A
- Ordered to third reading cal.1846
- Reported and committed to rules
- Print number 817a
- Amend and recommit to finance
- Referred to finance
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Fund Innovation Vouchers for Small Business
Vetoed · Sponsor David Buchwald
Full text
3 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
817--A
2017-2018 Regular Sessions
IN SENATE
January 5, 2017
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Finance -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee
AN ACT to amend the urban development corporation act, in relation to establishing the New York state innovation voucher program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Short title. This act shall be known and may be cited as the "New York state innovation voucher program act".
§ 2. Section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new section 16-bb to read as follows:
§ 16-bb. New York state innovation voucher program. (1) Program established. There is hereby established a New York state innovation voucher program under the purview of the empire state development corporation. Such program shall provide small businesses with access to research and development by colleges and universities, government laboratories and public research institutes in order to assist such businesses in the creation of innovative products or services that provide job retention and expansion.
(2) Definitions. For the purposes of this section, the following terms shall have the following meanings:
(a) "Eligible recipient" shall mean small businesses as defined in section one hundred thirty-one of the economic development law.
(b) "Eligible projects" for vouchers authorized pursuant to this section shall mean research and development projects leading to innovation of products or services. Eligible costs shall include, but not be limited to, the development of prototypes, field testing, engineering or other projects authorized by the corporation that enhance innovation of
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01581-03-7
S. 817--A 2
products or services that result in job growth and business expansion within the state.
(c) "Ineligible expense" shall mean reimbursement of time spent by the employees or owners of the small business; grant or voucher application costs; routine and readily-predictable business expenses; design and production of marketing or advertising materials; basic professional services such as ongoing routine accounting, tax or legal services; building or equipment construction costs; financing fees; travel and entertainment costs; hospitality costs; and any other expenses deemed ineligible by the corporation.
(d) "Research and development partner" shall mean colleges, universities, state and national government laboratories, and public research institutes in New York state.
(e) "Exceptionally innovative projects" shall mean projects that demonstrate a potential for substantial economic growth and job development in an emerging technology field, as defined by the corporation, through the promulgation of rules and regulations, as emerging technology fields from those fields listed in subparagraphs (1), (2), (3), (4) and (5) of paragraph (b) of subdivision one of section thirty-one hundred two-e of the public authorities law.
(3) Selection of eligible recipients. (a) Eligible recipients shall be selected by the corporation based on the strength of their proposals, including evaluation of the innovative nature of the project, its technical feasibility, commercial viability and the potential impact on the retention and creation of new jobs.
(b) Small businesses may identify desired or potential research and development partners as part of their applications. Advance determinations of the business' research and development partner shall not be a requirement for receipt of an innovation voucher.
(c) Applications shall be judged by an advisory committee, or regional advisory committee, appointed by the president of the corporation consisting of members of the higher education, science and technology, and business communities.
(4) Research and development partners. The corporation shall identify a list of potential research and development partners in New York state that have appropriate facilities and resources to participate in the innovation voucher program and are willing to accept vouchers from eligible recipients for payment of their services. The list of potential research and development partners shall be displayed on the corporation's website, and shall be reviewed and revised at least quarterly.
(5) Vouchers and matching funds. (a) The corporation, upon the recommendation of the advisory committee, may award vouchers up to ten thousand dollars for each eligible project. Upon the recommendation of the advisory committee, the corporation may award a voucher in an amount up to fifty thousand dollars where a project is deemed exceptionally innovative. Criteria for determination of awards shall be established by the corporation in rules and regulations. Eligible recipients shall match the value of the voucher on a dollar-for-dollar basis and shall apply such amount to the voucher-funded project.
(b) If an applicant is approved by the corporation for a voucher based on the merits of an eligible project, such eligible recipient shall be authorized to enter into a working agreement with the appropriate research and development partner. The eligible recipient shall notify the corporation of the research and development partner collaboration to be formed to further research and development. Payment of the voucher shall be made based on a payment structure established by the corpo-
S. 817--A 3
ration in rules and regulations promulgated pursuant to section four of this act to administer a collaboration.
(6) Outreach. To ensure maximum awareness of the innovation voucher program, the corporation shall develop and implement a plan to disseminate information and materials to small businesses, including but not limited to minority- and women-owned enterprises and veteran-owned businesses.
(7) Reports. The corporation shall post quarterly reports stating: the number and monetary value of vouchers issued; the amount of program funding used for the vouchers; the recipient of the the vouchers and research and development partner; and any other appropriate metrics to measure the success of the program, including but not limited to, the number of jobs created or retained, the number of patents produced as a result of the collaboration, a description of the economic development impact and such other information as the corporation may deem necessary. Such quarterly reports shall also include a list of current advisory committee members and a list of current research and development partners approved by the corporation.
(8) Funding. The corporation is authorized, within available appropriations in the empire state development fund established pursuant to section sixteen-m of this act or from any other funds appropriated, to make innovative vouchers available to eligible recipients.
§ 3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, is amended by adding a new paragraph (o) to read as follows:
(o) Vouchers to eligible entities as set forth in section 16-bb of this act to support the New York State Innovation Voucher Program to assist small business access to research and development by colleges and universities, government laboratories and public research institutes to support such businesses in the creation of innovative products or services.
§ 4. Rules and regulations. The empire state development corporation is authorized to promulgate rules and regulations in accordance with the state administrative procedure act that are necessary to fulfill the purposes of this act. Such rules and regulations shall be completed within one hundred eighty days after the effective date of this act.
§ 5. This act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, that the amendments to subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, made by section three of this act shall not affect the expiration of such section and shall be deemed to expire therewith; provided, further, that any rules and regulations necessary for the timely implementation of this act on its effective date may be promulgated on or before such effective date.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the urban development corporation act, in relation to establishing the New York state innovation voucher program
Purpose or general idea of bill
This legislation creates the New York State "Innovation Vouchers" 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 facilities to create jobs and innovation in New York.
Summary of specific provisions
Section 1 defines the title as the "New York State Innovation Voucher Program Act."
Read the full memo (768 words)
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. In rare occasions, Innovation 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 Corporation to provide outreach to small businesses, including but not limited to minority- and women-owned enterprises and veteran-owned businesses.
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 Corporation 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 promulgate 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, technological 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 for innovation.
According to "The 2014 State New Economy Index" published by The Information 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. Based on information from Senter Novem, an innovation agency in Holland, "eight out of ten vouchers issued resulted in an innovation that otherwise would not have come to fruition, and 80 percent of new R&D jobs created in Holland since 2005 are attributable to the vouchers."
In addition, Connecticut's "Entrepreneur Innovation Award" program administered by the state's CTNext 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 patents produced as a result of the collaborations.
Fiscal implications
Undetermined.
Legislative history
S.3894A/A.2126A of 2015-2016; Referred to Finance A.10195 of 2014; referred to small business
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 regulations necessary for the timely implementation of this act on its effective date may be promulgated on or before such effective date.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.