S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4881

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2009
                               ___________

Introduced   by  M.  of  A.  SCHIMMINGER,  SCHROEDER,  J. RIVERA,  KOON,
  DelMONTE, CAHILL -- Multi-Sponsored by -- M. of A.  BOYLAND,  KOLB  --
  read  once  and referred to the Committee on Economic Development, Job
  Creation, Commerce and Industry

AN ACT to amend the economic development law and the public  authorities
  law,  in  relation  to  authorizing  the  job development authority to
  create and administer the bank export incentive program with the tech-
  nical assistance of the department of economic development

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

  Section  1.  Legislative  intent.  The  legislature  hereby  finds and
declares that the economy of the state of New York can be bolstered  and
enhanced  through  the sale of additional products and services from New
York state to customers in foreign countries.  The  legislature  further
finds  that  one  of the impediments to an increase in export sales from
New York state is the unavailability of loans at a competitive  interest
rate  for  relatively  small  amounts of money borrowed for time periods
between one and five years from the commercial banks of  our  state  and
nation.  It  is  further  found  that one of the major reasons that such
monies are unavailable is the high cost  of  processing  such  loans  by
banking organizations because of the complexities of international tran-
sactions.  The  legislature, therefore, finds and declares that it is in
the interest of a stronger and more viable economy for the state of  New
York  to  encourage the banking industry of our state to provide medium-
term financing for low dollar volume  export  transactions  through  the
creation of a bank export incentive program.
  S  2.   Subdivision 47 of section 100 of the economic development law,
as renumbered by chapter 427 of the laws of 2008, is renumbered subdivi-
sion 48 and a new subdivision 47 is added to read as follows:
  47. THE COMMISSIONER SHALL, THROUGH THE USE  OF  SEMINARS,  WORKSHOPS,
ADVERTISING OR OTHER APPROPRIATE METHODS, MAKE POTENTIAL ELIGIBLE APPLI-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03499-01-9
              

A. 4881                             2

CANTS  AWARE OF THE EXPORT FINANCE FUND AND OF ITS POTENTIAL USE TO SUCH
APPLICANTS. FURTHER, THE COMMISSIONER SHALL MAKE  BANKING  ORGANIZATIONS
PARTICIPATING  IN  THE USE OF THE EXPORT FINANCE FUND AWARE OF POTENTIAL
ELIGIBLE  APPLICANTS  AND SHALL ASSIST BOTH SUCH ELIGIBLE APPLICANTS AND
BANKING ORGANIZATIONS AS MAY BE REQUIRED IN  ORDER  TO  HELP  FACILITATE
FURTHERANCE  OF  THE SALES OF MANUFACTURED PRODUCTS TO THE INTERNATIONAL
MARKETPLACE.
  S 3. Section 1801 of the public authorities law is amended  by  adding
six new subdivisions 20, 21, 22, 23, 24 and 25 to read as follows:
  20.  "COMPETITIVE  INTEREST  RATE" SHALL MEAN A RATE OF INTEREST WHICH
MUST BE APPLIED TO A LOAN MADE TO AN ELIGIBLE APPLICANT FOR AN  ELIGIBLE
PROJECT,  AT  A LEVEL OF INTEREST DESIGNED TO INDUCE ELIGIBLE APPLICANTS
TO RETAIN A COMPETITIVE POSITION IN THE WORLD MARKETPLACE.
  21. "BANKING ORGANIZATION" SHALL MEAN (A) ANY ORGANIZATION DEFINED  BY
SUBDIVISION  ELEVEN OF SECTION TWO OF THE BANKING LAW, (B) ANY AGENCY OR
BRANCH OF A FOREIGN BANKING CORPORATION LICENSED BY THE BANKING  DEPART-
MENT  UNDER  ARTICLE  FIVE  OF  THE  BANKING LAW, (C) ANY NATIONAL BANK,
FEDERAL SAVINGS AND LOAN ASSOCIATION AND FEDERAL CREDIT UNION,  (D)  ANY
AUTHORIZED INSURER DEFINED BY PARAGRAPH TEN OF SUBSECTION (A) OF SECTION
ONE  HUNDRED  SEVEN  OF THE INSURANCE LAW, AND (E) ANY OTHER INSTITUTION
WITHIN THE STATE AUTHORIZED TO ORIGINATE AND  SERVICE  LOANS  INCLUDING,
BUT NOT LIMITED TO, CREDIT UNIONS AND MORTGAGE LOAN COMPANIES.
  22.  "ELIGIBLE  APPLICANT"  SHALL  MEAN A FIRM WHICH EMPLOYS LESS THAN
FIVE HUNDRED WORKERS AND WHOSE PRINCIPAL PLACE OF BUSINESS IS WITHIN THE
BORDERS OF NEW YORK STATE OR AN EXPORT TRADING COMPANY AS DEFINED IN THE
EXPORT TRADING COMPANY ACT (P.L. 97-290) PRESENTING AN ELIGIBLE  PROJECT
ON BEHALF OF SUCH FIRM.
  23.  "ELIGIBLE PROJECT" SHALL MEAN A SALE OF A PRODUCT MANUFACTURED OR
SERVICE DELIVERED BY AN ELIGIBLE APPLICANT TO A CUSTOMER RESIDING IN AND
REPRESENTING A BUSINESS, NATURAL PERSON, OR  GOVERNMENTAL  ENTITY  OF  A
NATION  OTHER THAN THE UNITED STATES OR ITS TERRITORIES, WHICH (A) IS TO
BE FINANCED FOR A PERIOD NOT LESS THAN ONE YEAR NOR MORE THAN FIVE YEARS
FROM THE POINT OF SALE, (B) IS INSURED BY THE FCIA OR THE  EXPORT-IMPORT
BANK OF THE UNITED STATES.
  24. "PROJECT LOAN" SHALL MEAN MONIES LENT TO AN ELIGIBLE APPLICANT FOR
AN  ELIGIBLE  PROJECT  AT A COMPETITIVE INTEREST RATE FROM A COOPERATING
BANKING ORGANIZATION.
  25. "EXPORT FINANCE FUND" OR "FUND" SHALL MEAN MONIES PROVIDED BY  THE
AUTHORITY  TO  A  COOPERATING  BANKING  ORGANIZATION OR ORGANIZATIONS IN
ORDER THAT SUCH ORGANIZATION OR ORGANIZATIONS  SHALL  BE  ABLE  TO  MAKE
LOANS TO ELIGIBLE APPLICANTS FOR ELIGIBLE PROJECTS AT COMPETITIVE INTER-
EST  RATES  BY INVESTING SUCH FUND IN INTEREST-BEARING INVESTMENTS WHICH
THE AUTHORITY MAY AUTHORIZE.
  S 4. The public authorities law is amended by  adding  a  new  section
1835-bb to read as follows:
  S 1835-BB. ADDITIONAL POWERS OF THE AUTHORITY. THE AUTHORITY IS HEREBY
DIRECTED  TO ESTABLISH THE NEW YORK STATE BANK EXPORT INCENTIVE PROGRAM.
1. IN ORDER TO IMPLEMENT THE PROGRAM, THE AUTHORITY MAY ENTER INTO COOP-
ERATIVE AGREEMENTS WITH ONE OR MORE  BANKING  ORGANIZATIONS  WITHIN  THE
STATE  TO  PROVIDE  THEM  WITH AN EXPORT FINANCE FUND IN ORDER THAT SUCH
COOPERATING BANKING ORGANIZATIONS MAY LEND THEIR OWN ASSETS TO  ELIGIBLE
APPLICANTS FOR ELIGIBLE PROJECTS AT COMPETITIVE INTEREST RATES.
  2.  SUCH  AGREEMENT  WITH  A  COOPERATING  BANKING  ORGANIZATION SHALL
INCLUDE BUT NOT BE LIMITED TO:
  (A) A REQUIREMENT THAT AN AMOUNT EQUAL TO NOT LESS THAN TWO TIMES  THE
AMOUNT  OF  MONIES ON DEPOSIT WITH SUCH COOPERATING BANKING ORGANIZATION

A. 4881                             3

MUST BE LENT TO ELIGIBLE APPLICANTS FOR  ELIGIBLE  PROJECTS  WITHIN  THE
AGREED  UPON TIME PERIOD FOLLOWING DEPOSIT OF SAID MONIES WITH THE BANK-
ING CORPORATION.
  (B)  THE  CRITERIA  AND  STANDARDS WITHIN WHICH THE TERMS AND INTEREST
RATES OFFERED TO  ELIGIBLE  APPLICANTS  FOR  ELIGIBLE  PROJECTS  MAY  BE
CONSIDERED TO BE COMPETITIVE.
  (C)  A  REQUIREMENT  THAT LOANS TO ELIGIBLE APPLICANTS BE MADE FOR NOT
LESS THAN TWENTY-FIVE THOUSAND DOLLARS NOR MORE THAN FIVE HUNDRED  THOU-
SAND DOLLARS.
  3.  IN  ORDER  TO  MAKE  SUCH  FINANCING POSSIBLE, THE AUTHORITY SHALL
ESTABLISH CRITERIA FOR THE SELECTION OF  COOPERATING  BANKING  ORGANIZA-
TIONS  AND  FOR  THE AMOUNTS AND TERMS UNDER WHICH THE INVESTMENT OF THE
FUND MAY BE MADE IN SUCH BANKING ORGANIZATIONS.
  4. A PROVISION STATING THAT IF THE AUTHORITY  IN  ITS  JUDGMENT  FINDS
THAT  SUCH BANKING ORGANIZATION HAS NOT MET THE CONDITIONS OF THE AGREE-
MENT ENTERED INTO BETWEEN THE AUTHORITY AND SAID  BANKING  ORGANIZATION,
THE  AUTHORITY SHALL NOTIFY THE BANKING ORGANIZATION OF THOSE ASPECTS OF
THE AGREEMENT THAT THE AUTHORITY DETERMINES ARE NOT BEING  MET;  AND  IF
AFTER  THIRTY  DAYS SUBSEQUENT TO SUCH NOTIFICATION THE AUTHORITY DETER-
MINES THAT THE BANKING ORGANIZATION HAS NOT MET THE  CONDITIONS  OF  THE
AGREEMENT, THE AUTHORITY MAY REMOVE ANY MONIES DEPOSITED WITH SUCH BANK-
ING ORGANIZATION AND MAY TERMINATE THE AGREEMENT.
  5.  THE  AUTHORITY  SHALL  ALLOCATE  THE  MONIES  APPROPRIATED FOR THE
PURPOSES OF THIS PROGRAM FOR DEPOSIT IN ONE OR MORE COOPERATING  BANKING
ORGANIZATIONS LOCATED WITHIN THE STATE OF NEW YORK.
  6. AT THE END OF EACH FISCAL YEAR FOLLOWING THE EFFECTIVE DATE OF THIS
SECTION,  THE  AUTHORITY  SHALL  REPORT  TO  THE GOVERNOR AND THE FISCAL
COMMITTEES OF THE LEGISLATURE AS TO: (A) THE NUMBER  OF  LOANS  MADE  TO
ELIGIBLE  PROJECTS;  (B) THE AMOUNT OF EACH LOAN AND ITS REPAYMENT TERMS
TO INCLUDE INTEREST CHARGED AND DURATION OF THE LOAN; (C) THE  PRINCIPAL
PRODUCT  OR SERVICES INVOLVED IN THE ELIGIBLE PROJECT; (D) THE NATION IN
WHICH THE PRODUCT OR SERVICE WAS SOLD; AND (E)  THE  NUMBER  OF  BANKING
ORGANIZATIONS PARTICIPATING IN THE PROGRAM.
  S 5. This act shall take effect on the one hundred twentieth day after
it  shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of the foregoing sections of this act on their effective date  is
authorized  and  directed  to  be  made  and completed on or before such
effective date.