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.
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.
STATE OF NEW YORK ________________________________________________________________________ 2335 2013-2014 Regular Sessions IN 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.