Section 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
  transfer 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 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.
    (b)  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; compliance with  the  rules,  regulations
  and  guidelines  of  the  foundation; and, compliance with any contracts
  between the foundation and the designated center.
    (c) 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.
  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 transfer 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.
    (d) 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 transfer 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.