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

                                  4550

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 4, 2009
                               ___________

Introduced  by  M.  of A. TOWNS, SPANO, JAFFFEE, SCHROEDER, CHRISTENSEN,
  LUPARDO, DelMONTE, CASTRO,  RAMOS,  MILLMAN,  FIELDS,  CLARK,  GORDON,
  WRIGHT  --  Multi-Sponsored  by -- M. of A. ALFANO, BARCALLES, CROUCH,
  ERRIGO, GUNTHER, KOLB, KOON, MOLINARO, OAKS, PEOPLES-STOKES, ROBINSON,
  SCARBOROUGH -- read once and referred to the Committee on Small  Busi-
  ness

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-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
A                                                          LBD08036-01-9
              

A. 4550                             2

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
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-t to read as follows:
  S 16-T. 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.