S993-2011 Actions

• Jan 4, 2012: REFERRED TO FINANCE
• Jan 5, 2011: REFERRED TO FINANCE

S993-2011 Memo

BILL NUMBER:S993

TITLE OF BILL:

An act
to amend the economic development law, in relation to creating a high
tech marketing program; and making an
appropriation therefor

PURPOSE OR GENERAL IDEA OF BILL:

The purpose of this bill is to encourage and stimulate business
development and economic activity in the targeted high technology
sectors within New York State.

SUMMARY OF SPECIFIC PROVISIONS:

This legislation would establish a high-tech marketing program in the
areas of nano-technology, biotechnology, and photonics, optics, and
imaging. The bill Would also provide funds on a matching basis to
established regional economic development marketing coalitions.

* $3 million would be allocated for three distinct business attraction
marketing programs focusing on nano-technology, bio-technology, and
photonics, imaging, and optics. Targets would be primary and supplier
manufacturers in targeted industries. Program elements would include:

* Participation at key international and domestic trade shows and
industry conferences.

* Development of targeted industry profiles and other primary research
on targeted industries.

* Development of targeted industry collateral material.

* One-on-one meetings with industry decision makers.

* Direct mail to corporate, site location consultants, and other key
decision makers for targeted technology sectors

* Development of New York Nano Tech, New York Bio Tech, and New York
photonics web sites.

* Advertising in influential trade and other publications.

* NYS tours with targeted industry decision makers.

* $2 million invested on a competitive matched basis to regional
marketing corporations. ($500,000 awarded to four regional marketing
coalitions annually.)

JUSTIFICATION:

New York's colleges and universities invested a record $2.43 billion
in research and development in 2001, an investment that will lead to
the creation of new technologies, new companies and new jobs for New


Yorkers. In the last five years, New York State has invested more
than $2 billion in university-based R&D initiatives through programs
such as GeNYsis, Centers of Excellence, and RESTORE NY. New York
State continues to build its economy through strategic investments in
job-creating high technology innovations and initiatives. The funding
of R&D at New York's prestigious, world-class colleges and
universities will foster future economic growth in the State.

Unfortunately, while New York invests more than $20 million annually
to attract tourists to our state and communities, it invests nothing
to market its high tech advantages. Consequently, the quality and
breadth of New York's high tech assets are a relatively well-kept
secret.

Given the importance the state has placed on its high tech investment
strategy, and the critical role those investments are playing in
developing regional economies, New York should establish a robust
marketing program that promotes both statewide advantages and
regional strengths.

The proposal will accommodate and meet statewide high tech marketing
needs, and provide funds on a matching basis to established regional
economic development marketing coalitions so that sectional
advantages can also be promoted. Regional high tech marketing
activities funded through this program would be consistent and
coordinated with the statewide marketing program.

PRIOR LEGISLATIVE HISTORY:

2010 - S.6331 Committed to Commerce - A.2207 Referred to Economic
Development
2008 - A.2527 Referred to Economic Development
2006 - A.3429 Referred to Economic Development
2004 - A.10989 Referred to Economic Development

FISCAL IMPLICATIONS:

$5 million.

EFFECTIVE DATE:

Immediately.

S993-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                          993
 2011-2012 Regular Sessions
 I N  SENATE
 (PREFILED)
 January 5, 2011
 
 Introduced  by Sens. KLEIN, OPPENHEIMER -- read twice and ordered print
 ed, and when printed to be committed to the Committee on Finance
 

AN ACT to amend the economic development law, in relation to creating  a
 high tech marketing program; and making an appropriation therefor
 

THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. The economic development law is amended  by  adding  a  new
 article 11-B to read as follows:

 ARTICLE 11-B
 HIGH TECH MARKETING PROGRAM
 SECTION 239-A. DEFINITIONS.
 239-B. APPLICATION.
 239-C. USE OF FUNDS.
 239-D. ADVISORY COMMITTEE.
 239-E. REPORTING REQUIREMENTS.
 

S 239-A. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING WORDS AND
 TERMS SHALL HAVE THE FOLLOWING MEANINGS:

 1.  "ELIGIBLE  APPLICANT"  SHALL MEAN A STATEWIDE ECONOMIC DEVELOPMENT
 NOT-FOR-PROFIT ORGANIZATION ESTABLISHED TO PROMOTE THE ECONOMIC DEVELOP
 MENT OF THE STATE AND ITS COMMUNITIES, ENCOURAGE SOUND PRACTICES IN  THE
 CONDUCT  OF  REGIONAL AND STATEWIDE DEVELOPMENT PROGRAMS, AND TO DEVELOP
 EDUCATION PROGRAMS THAT ENHANCE THE PROFESSIONAL DEVELOPMENT  SKILLS  OF
 ITS  MEMBERS,  AND  THE MEMBERS OF WHICH REPRESENT COUNTY, STATEWIDE AND
 LOCAL GOVERNMENT JURISDICTIONS FOR THE PURPOSE OF ATTRACTING  INVESTMENT
 AND JOBS TO THE REGIONS THEY REPRESENT.
 2.  "STATEWIDE  HIGH TECH MARKETING PROGRAM" SHALL MEAN A PROGRAM THAT
 PROMOTES THE STATE'S STRENGTHS AND ASSETS IN  THE  FOLLOWING  TECHNOLOGY
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04991-01-1
 
       S. 993                              2
 SECTORS: NANO-TECHNOLOGY; BIOTECHNOLOGY; AND PHOTONICS, OPTICS AND IMAG
 ING.
 3.   "REGIONAL   BUSINESS   MARKETING   CORPORATION"  SHALL  MEAN  ANY
 NOT-FOR-PROFIT CORPORATION CREATED FOR THE PRIMARY PURPOSE OF MARKING  A
 MULTI-COUNTY  REGION  OF THE STATE FOR THE PURPOSE OF ATTRACTING PRIVATE
 SECTOR INVESTMENT AND CREATING JOBS, AND WHICH HAS RECEIVED  THE  FINAN
 CIAL SUPPORT OF AT LEAST THREE COUNTY GOVERNMENTS.
 

S  239-B.  APPLICATION. THE COMMISSIONER SHALL, WITHIN THREE MONTHS OF
 THE EFFECTIVE DATE OF THIS ARTICLE, IMPLEMENT A  REQUEST  FOR  PROPOSALS
 PROCESS  FOR  SELECTING  THE  ELIGIBLE APPLICANT. THE COMMISSIONER SHALL
 ENSURE THAT THE APPLICATION OF THE  WINNING  APPLICANT  FOR  SUCH  FUNDS
 SHALL  HAVE  SET  FORTH  THE  SCHEDULE, BUDGET, SCOPE, USES OF FUNDS AND
 THEME OF THE PROPOSED STATEWIDE MARKETING PROGRAM TO BE  UNDERTAKEN  FOR
 THE  PURPOSE  OF  ENCOURAGING  AND  STIMULATING BUSINESS DEVELOPMENT AND
 ECONOMIC ACTIVITY IN THE TARGETED HIGH  TECHNOLOGY  SECTORS  WITHIN  THE
 STATE  AND ITS REGIONS. THE APPROPRIATION FOR THIS PROGRAM SHALL BE PAID
 TO THE WINNING APPLICANT WITHIN SIXTY DAYS OF ITS SELECTION.
 

S 239-C. USE OF FUNDS. 1. A. THREE MILLION DOLLARS OF THE FUNDS MAY BE
 USED BY THE SELECTED APPLICANT TO DEVELOP AND IMPLEMENT A STATEWIDE HIGH
 TECH MARKETING PROGRAM, AND MAY BE USED FOR THE FOLLOWING PURPOSES:

 (I) PARTICIPATION AT KEY INTERNATIONAL AND DOMESTIC  TRADE  SHOWS  AND
 INDUSTRY CONFERENCES;
 (II)  DEVELOPMENT  OF  TARGETED  INDUSTRY  PROFILES  AND OTHER PRIMARY
 RESEARCH ON TARGETED INDUSTRIES;
 (III) DEVELOPMENT OF TARGETED INDUSTRY COLLATERAL MATERIAL;
 (IV) ONE-ON-ONE MEETINGS WITH INDUSTRY DECISION MAKERS;
 (V) DIRECT MAIL TO CORPORATE, SITE LOCATION CONSULTANTS AND OTHER  KEY
 DECISION MAKERS FOR TARGETED TECHNOLOGY SECTORS;
 (VI) DEVELOPMENT OF NEW YORK LOVES NANO TECH, NEW YORK LOVES BIO TECH,
 AND NEW YORK LOVES PHOTONICS WEB SITES;
 (VII) ADVERTISING IN INFLUENTIAL TRADE AND OTHER PUBLICATIONS; AND
 (VIII) STATE TOURS WITH TARGETED INDUSTRY DECISION MAKERS.
 B.  ALL FUNDS AWARDED TO THE WINNING APPLICANT MUST BE EXPENDED WITHIN
 TWELVE MONTHS, UNLESS AN EXTENSION OF TIME IS REQUESTED AND, UPON  SHOW
 ING OF GOOD CAUSE, GRANTED BY THE DEPARTMENT.
 C.  NO  MORE  THAN TEN PERCENT OF THE TOTAL AMOUNT OF FUNDS AWARDED TO
 THE SELECTED  APPLICANT  SHALL  BE  USED  FOR  ADMINISTRATIVE  PURPOSES,
 INCLUDING  SALARIES  ASSOCIATED  WITH IMPLEMENTING A STATEWIDE HIGH TECH
 MARKETING PROGRAM.
 2. TWO MILLION DOLLARS OF THE FUNDS MAY BE  AWARDED  BY  THE  SELECTED
 APPLICANT  ON  A  MATCHING  BASIS TO NO MORE THAN FOUR ELIGIBLE BUSINESS
 REGIONAL MARKETING CORPORATIONS FOR THE PURPOSE OF IMPLEMENTING BUSINESS
 MARKETING INITIATIVES WITHIN THE TARGETED TECHNOLOGY SECTORS.
 A. THE SELECTED APPLICANT SHALL  ESTABLISH  A  REQUEST  FOR  PROPOSALS
 PROCESS  FOR  SELECTING  REGIONAL  BUSINESS MARKETING CORPORATIONS TO BE
 RECIPIENTS OF MATCHING GRANTS FROM THIS PROGRAM. THE  SELECTED  REGIONAL
 BUSINESS MARKETING CORPORATIONS SHALL HAVE DEMONSTRATED THAT:

 (I) THE CORPORATION EXISTS IN LEGAL FORM;
 (II)  THE  CORPORATION  HAS SECURED AN AMOUNT EQUAL TO THE TOTAL MATCH
 AWARDED BY THE SELECTED APPLICANT; AND
 (III) THE CORPORATION HAS RECEIVED AND IS RECEIVING FINANCIAL  SUPPORT
 FROM AT LEAST COUNTY GOVERNMENTS FROM WITHIN ITS JURISDICTION.
 B.  APPLICATIONS  OF SELECTED REGIONAL BUSINESS MARKETING CORPORATIONS
 SHALL HAVE SET FORTH THE SCHEDULE, BUDGET,  SCOPE,  USES  OF  FUNDS  AND
 THEME  OF  THE PROPOSED STATEWIDE MARKETING PROGRAM TO BE UNDERTAKEN FOR
 THE PURPOSE OF ENCOURAGING  AND  STIMULATING  BUSINESS  DEVELOPMENT  AND
 
       S. 993                              3
 ECONOMIC  ACTIVITY  IN  THE  TARGETED HIGH TECHNOLOGY SECTORS WITHIN THE
 REGION, PROVIDED, HOWEVER, THAT:

 (I)  NO SUCH MATCHING FUNDS SHALL EXCEED THE SUM OF FIVE HUNDRED THOU
 SAND DOLLARS;
 (II) NO MATCHING FUNDS WILL BE USED FOR ADMINISTRATIVE COSTS,  INCLUD
 ING SALARIES, ASSOCIATED WITH THE IMPLEMENTATION OF A REGIONAL HIGH TECH
 BUSINESS MARKETING PROGRAM;
 (III) NO SUCH MATCHING FUNDS SHALL BE USED FOR THE DIRECT BENEFIT OF A
 FOR-PROFIT  BUSINESS  UNLESS  SUCH  EXPENDITURE  SHALL  FURTHER A PUBLIC
 PURPOSE AND HAVE A CLEAR, LONG-TERM BENEFIT TO THE REGIONAL ECONOMY;
 (IV) THE USES OF THE FUNDS ARE CONSISTENT WITH THE BUSINESS  MARKETING
 PROGRAMS DEVELOPED AND IMPLEMENTED BY THE WINNING APPLICANT; AND
 (V)  ALL  FUNDS  AWARDED  TO  REGIONAL BUSINESS MARKETING CORPORATIONS
 SHALL BE EXPENDED WITHIN TWELVE MONTHS OF SUCH PAYMENT UNLESS AN  EXTEN
 SION  OF  TIME  IS REQUESTED AND, UPON SHOWING OF GOOD CAUSE, GRANTED BY
 THE WINNING APPLICANT.
 C. NO ADVERTISING OR MARKETING FUNDED FOR THE PURPOSE OF THIS  ARTICLE
 SHALL  CONTAIN  REFERENCES  TO OR THE NAME OF ANY PUBLIC OFFICIAL OF THE
 STATE, OR ITS POLITICAL SUBDIVISIONS. REFERENCE SHALL INCLUDE BUT NOT BE
 LIMITED  TO  PHOTOGRAPHS,  DRAWINGS,  CARICATURES,  OR  SOUND  OR  VIDEO
 RECORDINGS,  UNLESS  EXPRESSLY  AUTHORIZED  BY  THE  ADVISORY  COMMITTEE
 DESCRIBED IN SECTION TWO HUNDRED THIRTY-NINE-D OF THIS ARTICLE.
 

S 239-D. ADVISORY COMMITTEE. THE WINNING APPLICANT SHALL ESTABLISH  AN
 ADVISORY  COMMITTEE  CONSISTING  OF  KEY  STAKEHOLDERS  TO ADVISE ON THE
 DEVELOPMENT AND IMPLEMENTATION OF A MARKETING  PLAN  FOR  EACH  TARGETED
 INDUSTRY SECTOR. THE ADVISORY COMMITTEE SHALL CONSIST OF REPRESENTATIVES
 OF  REGIONAL  MARKETING  CORPORATIONS,  ECONOMIC  DEVELOPERS, UNIVERSITY
 REPRESENTATIVES, PRIVATE INDUSTRY, EMPIRE STATE DEVELOPMENT CORPORATION,
 THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF  THE  SENATE.
 THE  CHAIRPERSON  OF THE ADVISORY COMMITTEE SHALL BE SELECTED FROM AMONG
 ALL ITS MEMBERS.
 

S 239-E. REPORTING REQUIREMENTS. 1.  EACH REGIONAL BUSINESS  MARKETING
 CORPORATION SHALL PROVIDE AN ANNUAL FINANCIAL STATEMENT PREPARED ACCORD
 ING  TO  GENERALLY  ACCEPTED ACCOUNTING PRINCIPLES TO THE WINNING APPLI
 CANT, THE COMMISSIONER, THE SPEAKER OF THE ASSEMBLY  AND  THE  TEMPORARY
 PRESIDENT OF THE SENATE.
 2.  THE  WINNING APPLICANT SHALL PROVIDE AN ANNUAL FINANCIAL STATEMENT
 PREPARED ACCORDING TO GENERALLY ACCEPTED ACCOUNTING  PRINCIPLES  TO  THE
 COMMISSIONER, THE SPEAKER OF THE ASSEMBLY AND THE TEMPORARY PRESIDENT OF
 THE  SENATE,  AS  WELL AS A PERFORMANCE REPORT INDICATING HOW FUNDS WERE
 EXPENDED, AND RESULTS OF THOSE EXPENDITURES.
 

S 2. The sum of five million dollars ($5,000,000), or so much  thereof
 as may be necessary, is hereby appropriated to the department of econom
 ic development from any moneys in the state treasury in the general fund
 to  the  credit  of the local assistance account not otherwise appropri
 ated, and made immediately available, for services and expenses  includ
 ing  the  expenses  of  the  department of economic development, for the
 purposes of carrying out the provisions of this act. Such sum  shall  be
 payable  on  the  audit and warrant of the state comptroller on vouchers
 certified or approved by the commissioner of  economic  development,  or
 his or her duly designated representative in the manner provided by law.
 

S 3. This act shall take effect immediately.

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