S1768-2011 Actions

• Jan 5, 2012: PRINT NUMBER 1768A
• Jan 5, 2012: AMEND AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
• Jan 4, 2012: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
• Jan 12, 2011: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

S1768-2011 Memo

BILL NUMBER:S1768

TITLE OF BILL:
An act
to amend the New York state urban development corporation act, in
relation to creating niche market assistance projects to promote
economic development

PURPOSE OR GENERAL IDEA OF BILL:
To assist small manufacturers to seek niche markets.

SUMMARY OF SPECIFIC PROVISIONS:
A "niche market" is a targeted market composed of individuals and
businesses that have similar interests and needs, which can be
readily identified and that can be easily targeted and reached, or
group of potential customers who share common characteristics making
them especially receptive to the company's product, service or
opportunity.

The bill establishes a competitive program in UDC providing grants of
up to $200,000 to a not-for-profit corporation or Manufacturing
Extension partnership program with a demonstrated capacity to conduct
market analysis and seek new markets for niche products for
manufacturers, to enable the grant recipients to work with and assist
small manufacturers identify and develop niche markets.

Entities eligible to apply for funding for a niche market assistance
project include not-for-profit corporations, local development
corporations, trade associations, educational institutions,
technology development corporations which operate manufacturing
extension programs, and other not-for-profit organizations which
promote economic development.

Projects eligible to be a niche market assistance include research,
market analysis, marketing assistance, and identifying sources of
financial assistance to enter into new markets.

JUSTIFICATION:
Small manufacturing enterprises are responsible for an estimated
28%-40% of employment in the manufacturing sector. They tend to be
more effective at job creation and job replacement, more innovative
in the development of products and process improvements, more
flexible and thus more competitive, in terms of the ability to
produce small quantities. All of these factors help to explain the
shift to a smaller average plant size and the national trend toward
more of the total production of goods coming from smaller
manufacturers.

Small manufacturing enterprises, often owned by, minorities and
immigrants, have been growing. Leading this expansion in New York are
specialty and ethnic food manufacturers, which have grown by more
than 8 percent over the past year. other evidence suggests that there
is similar growth in construction; specialty apparel for niche
markets and other design-based manufacturing industries such as
luxury consumer goods like jewelry; medical instruments; suppliers to


service industries; end companies serving local markets, such as
makers of food products or suppliers of construction materials.

Often, small manufacturers can not only survive, but grow, if they can
identify and develop niche markets - targeted markets composed of
individuals and businesses that have similar interests and needs,
which can be readily identified, and that can be easily targeted and
reached, or group of potential customers who share common
characteristics making them especially receptive to the company's
product, services, or opportunity.

Small firms are traditionally hard to reach by centralized state
programs. Therefore this program reaches out to local and regional
partners who are familiar with and have established relationships
with businesses in their areas.

PRIOR LEGISLATIVE HISTORY:
2009-2010: Referred to Corporations, Authorities and Commissions
Reported and Committed to Finance

FISCAL IMPLICATIONS:
Undetermined.

EFFECTIVE DATE:
Immediate.

S1768-2011 Text

 S T A T E   O F   N E W   Y O R K
 
 
                                         1768
 2011-2012 Regular Sessions
 I N  SENATE
 January 12, 2011
 
 Introduced  by  Sen. PERKINS -- read twice and ordered printed, and when
 printed to be committed to the Committee on Corporations,  Authorities
 and Commissions
 

AN ACT to amend the New York state urban development corporation act, in
 relation  to  creating  niche  market  assistance  projects to promote
 economic development
 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM
 BLY, DO ENACT AS FOLLOWS:

 

Section 1. Statement of legislative intent. Small manufacturing enter
 prises are responsible for an estimated twenty-eight to forty percent of
 employment  in  the manufacturing sector. They tend to be more effective
 at job creation and job replacement, more innovative in the  development
 of  products  and  process  improvements,  more  flexible, and thus more
 competitive, in terms of the ability to produce small quantities. All of
 these factors help to explain the shift to  smaller  and  average  sized
 plants  and  the  national  trend toward more of the total production of
 goods coming from small manufacturers.
 Small manufacturing enterprises, often owned  by  minorities  and  new
 immigrants,  have  been  growing. Leading this expansion in New York are
 specialty and ethnic food manufacturers, which have grown by  more  than
 eight  percent over the past year. Other evidence suggests that there is
 similar growth in construction; specialty apparel for niche markets  and
 other  design-based  manufacturing  industries  such  as luxury consumer
 goods like jewelry; medical instruments;  suppliers  to  service  indus
 tries;  and  companies  serving  local  markets,  such as makers of food
 products or suppliers of construction materials.
 Often, small manufacturers can not only survive, but grow, if they can
 identify and develop niche markets - targeted markets composed of  indi
 viduals  and businesses that have similar interests and needs, which can
 be readily identified, and that can be easily targeted and reached, or a
 group of potential customers who  share  common  characteristics  making
 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD06744-01-1
 
       S. 1768                             2
 them especially receptive to the company's product, service, or opportu
 nity.
 

S  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-u to read as follows:

 

S 16-U. NICHE MARKET ASSISTANCE PROJECTS. 1. THE CORPORATION IS HEREBY
 AUTHORIZED TO PROVIDE ASSISTANCE TO  NICHE  MARKET  ASSISTANCE  PROJECTS
 DESIGNED TO ENCOURAGE AND ASSIST SMALL AND MEDIUM-SIZED MANUFACTURING OR
 FOOD  PROCESSING  BUSINESSES WITH FEWER THAN TWO HUNDRED FIFTY EMPLOYEES
 TO IDENTIFY AND DEVELOP NICHE MARKETS FOR THEIR PRODUCTS.
 2. FOR THE PURPOSES OF THIS  SECTION,  "NICHE  MARKET"  SHALL  MEAN  A
 TARGETED MARKET COMPOSED OF INDIVIDUALS AND BUSINESSES THAT HAVE SIMILAR
 INTERESTS  AND  NEEDS,  WHICH  CAN BE READILY IDENTIFIED AND REACHED, OR
 GROUP OF POTENTIAL CUSTOMERS WHO  SHARE  COMMON  CHARACTERISTICS  MAKING
 THEM  ESPECIALLY RECEPTIVE TO THE COMPANY'S PRODUCT, SERVICE OR OPPORTU
 NITY.
 3. THE CORPORATION  SHALL  ACTIVELY  SEEK  TO  IDENTIFY  ENTITIES  AND
 DISSEMINATE  INFORMATION  TO  SUCH  ENTITIES  WHICH  MAY  BE ELIGIBLE TO
 RECEIVE ASSISTANCE PURSUANT TO  THIS  SECTION  AND  SHALL  MAKE  AWARDS,
 SUBJECT  TO  AVAILABLE  APPROPRIATIONS,  FOR  NICHE MARKETING ASSISTANCE
 PROJECTS ON A COMPETITIVE BASIS TO SUCH ENTITIES.
 (A) ENTITIES ELIGIBLE TO APPLY FOR FUNDING FOR A NICHE MARKET  ASSIST
 ANCE  PROJECT  SHALL INCLUDE NOT-FOR-PROFIT CORPORATIONS, LOCAL DEVELOP
 MENT CORPORATIONS, TRADE ASSOCIATIONS, EDUCATIONAL  INSTITUTIONS,  TECH
 NOLOGY  DEVELOPMENT  CORPORATIONS ESTABLISHED PURSUANT TO SECTION 3102-D
 OF THE PUBLIC AUTHORITIES  LAW  WHICH  OPERATE  MANUFACTURING  EXTENSION
 PROGRAMS,  AND OTHER NOT-FOR-PROFIT ORGANIZATIONS WHICH PROMOTE ECONOMIC
 DEVELOPMENT.
 (B) APPLICANTS SHALL BE REQUIRED TO DEMONSTRATE:

 (I) THEIR ABILITY TO PROVIDE THE SERVICES PROPOSED;
 (II) THE POTENTIAL FOR MANUFACTURING OR FOOD PROCESSING INDUSTRIES  IN
 THEIR AREA OF SERVICE TO DEVELOP NICHE MARKETS;
 (III)  THE  POSSIBILITY  THAT  THE  SERVICES TO BE FUNDED WOULD BECOME
 SELF-SUSTAINING;
 (IV) THE PARTICIPATION OF  LOCAL  AND  REGIONAL  ECONOMIC  DEVELOPMENT
 ORGANIZATIONS; AND
 (V) TO PROVIDE A PROGRAM BUDGET, INCLUDING MATCHING FUNDS, IN-KIND AND
 OTHERWISE, TO BE PROVIDED BY THE APPLICANT.
 (C)  A  PROJECT  ELIGIBLE  TO BE A NICHE MARKET ASSISTANCE PROJECT MAY
 INCLUDE, BUT NOT BE LIMITED TO,  RESEARCH,  MARKET  ANALYSIS,  MARKETING
 ASSISTANCE,  AND  IDENTIFYING  SOURCES  OF FINANCIAL ASSISTANCE TO ENTER
 INTO NEW MARKETS.
 4. NO SINGLE GRANT FOR A NICHE MARKET ASSISTANCE PROJECT SHALL  EXCEED
 TWO HUNDRED THOUSAND DOLLARS.
 

S 3. This act shall take effect immediately.

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