3102-c. Small business innovation research program. 1. As used in this section, the following terms shall have the following meanings:
(a) "Small business innovation research program" or "SBIR" means that program, enacted pursuant to the small business innovation development act of 1982 (P.L. 97-219), which provides funds to small businesses to conduct innovative research having commercial application.
(b) "Small business" means a corporation, partnership, sole proprietorship or individual, operating a business for profit, with two hundred fifty employees or less, including employees employed in any subsidiary or affiliated corporation which otherwise meets the requirements of the federal small business innovation research program.
2. (a) Within thirty days of the public announcement of the small business innovation research program Phase I award winners by the appropriate federal agency, the foundation shall contact all Phase I award recipients, whose principal place of business is located in this state, provide them with information concerning the program authorized pursuant to this section and advise them of the requirements relating thereto. Any such recipient, at least thirty days prior to the completion of its SBIR Phase I grant period, may, at its discretion, submit to the foundation a notice of its desire to secure research funding pursuant to the provisions of this section, along with a copy of its original federal SBIR proposal and such additional information the foundation may require to assist it in determining the eligibility of such recipient for this program.
(b) In addition to receipt of an SBIR award, any small business shall meet the following criteria:
i. Such small business' principal place of business shall be located in this state;
ii. Such small business shall certify that the research to be conducted will be performed solely in this state;
iii. No moneys shall be expended for travel, equipment or facilities; and
iv. Not more than one-third of any moneys awarded to a firm by the foundation may be used to contract for research or other related services.
(c) Upon a finding by the science and technology foundation that (i) a Phase I award recipient whose principal place of business is in New York has satisfactorily met all the requirements of this section and any additional requirements the foundation may deem necessary; and (ii) the research conducted may result in the development of emerging and innovative technology which is evaluated by the foundation as having the potential to lead to commercialization or fabrication within New York of new or improved products or processes, the foundation shall notify such small business that it will award the firm a research contract. Such contract shall be compatible with and a continuation of the research to be performed under the SBIR contract awarded by the federal agency involved and shall not exceed the amount of the SBIR award or fifty thousand dollars whichever is less, provided, however, that the total amount of all contracts shall not exceed the amount appropriated for this purpose.
(d) The foundation shall establish rules and regulations for the small business innovation research program, including award selection criteria which shall serve as the basis for awards funded under this program.
3. The foundation shall not disburse any moneys to a small business until:
(a) such small business has completed its SBIR Phase I research;
(b) its final Phase I report with respect thereto has been accepted by the federal agency involved;
(c) its Phase II research proposal has been properly submitted to the federal agency involved; and
(d) it has submitted copies of its final Phase I report and its Phase II proposal to the foundation.
4. Consistent with federal SBIR procedures, the foundation shall not disclose proprietary information when so requested by participants in this program.
5. The foundation shall annually submit a report to the governor, the temporary president of the senate and the speaker of the assembly detailing the results of the program, including but not limited to the number of New York small businesses applying for SBIR awards, the number receiving Phase I awards, the number receiving Phase II awards, any products or processes developed as a result of the SBIR research involved, any patents applied for or licenses granted based on the SBIR research involved and an abstract of the SBIR Phase I and II work performed by New York firms and any other information pertinent in evaluating the program.
6. The foundation shall conduct a program to inform small businesses of the federal SBIR program and this New York state program in order to insure that all firms have the opportunity to participate in these programs.
7. The foundation shall facilitate and promote the establishment of joint small business-university technology councils at the centers for advanced technology and other universities within the state whereby small firms and university experts can facilitate the transfer of technology and work together on research projects related to the SBIR program or other research projects of mutual interest.
8. The provisions of this section shall be effective if, and as long as federal financial participation is available therefor pursuant to the small business innovation development act of 1982.
Last modified: February 3, 2019