Creates a high tech marketing program; requires the creation of an advisory committee; provides for funds on a matching basis to established regional economic development marketing coalitions; makes an appropriation therefor.

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S2335-2013 Actions

• Jan 16, 2013: REFERRED TO FINANCE

S2335-2013 Memo

BILL NUMBER:S2335

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
market- ing 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:  2012 - S. 993 - Referred to Finance 2010 -
S.6331 Committed to Commerce 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.

S2335-2013 Text

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

                                    2335

                         2013-2014 Regular Sessions

                              I N  SENATE

                              January 16, 2013
                                 ___________

  Introduced by Sens. KLEIN, SAVINO -- read twice and ordered printed, 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
  SECTORS: NANO-TECHNOLOGY; BIOTECHNOLOGY; AND PHOTONICS, OPTICS AND IMAG-
  ING.

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD06595-01-3

 S. 2335                             2

    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
  ECONOMIC  ACTIVITY  IN  THE  TARGETED HIGH TECHNOLOGY SECTORS WITHIN THE
  REGION, PROVIDED, HOWEVER, THAT:


 S. 2335                             3

    (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.