S T A T E O F N E W Y O R K
________________________________________________________________________
4161
2009-2010 Regular Sessions
I N S E N A T E
April 15, 2009
___________
Introduced by Sen. AUBERTINE -- read twice and ordered printed, and when
printed to be committed to the Committee on Commerce, Economic Devel-
opment and Small Business
AN ACT to amend the economic development law, in relation to providing
matching funds for eligible applicants in regional marketing programs
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 12-A to read as follows:
ARTICLE 12-A
REGIONAL MARKETING PROGRAMS
SECTION 245. DEFINITIONS.
246. MATCHING FUNDS FOR ELIGIBLE APPLICANTS.
247. APPLICATION PROCESS.
248. PAYMENTS OF FUNDS TO ELIGIBLE APPLICANTS.
249. REPORTING REQUIREMENTS.
S 245. DEFINITIONS. AS USED IN THIS ARTICLE, UNLESS A DIFFERENT MEAN-
ING APPEARS FROM THE CONTEXT, THE FOLLOWING WORDS AND TERMS SHALL HAVE
THE FOLLOWING MEANINGS:
1. "ELIGIBLE APPLICANT" MEANS ANY NOT-FOR-PROFIT CORPORATION OR OTHER
NONPROFIT ORGANIZATION, ASSOCIATION, OR AGENCY THAT IS DESIGNATED BY
RESOLUTION OF THE SEVERAL COUNTY LEGISLATURES OR OTHER GOVERNING BODIES
OF COUNTIES WITHIN AN ECONOMIC DEVELOPMENT REGION OF THE STATE ESTAB-
LISHED PURSUANT TO SECTION TWO HUNDRED THIRTY OF THIS CHAPTER, OR UPON
THE DESIGNATION OF THE CITY COUNCIL OF THE CITY OF NEW YORK, AS AN AGEN-
CY AUTHORIZED TO MAKE APPLICATION FOR AND RECEIVE GRANTS FOR THE
PURPOSES SPECIFIED IN THIS ARTICLE.
2. "RECOGNIZED ADVERTISING" MEANS MEDIA ADVERTISING AND PROMOTIONAL
MATERIALS TO BE BROADCAST, DISSEMINATED, OR OTHERWISE DISTRIBUTED IN
ACCORDANCE WITH A PLAN APPROVED BY THE COMMISSIONER.
3. "REGION" MEANS AN ECONOMIC DEVELOPMENT REGION OF THE STATE ESTAB-
LISHED PURSUANT TO SECTION TWO HUNDRED THIRTY OF THIS CHAPTER, AN INTER-
NATIONAL REGION, OR A MULTI-STATE REGION.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03804-01-9
S. 4161 2
4. "REGIONAL MARKETING PROGRAM" MEANS THE USE OF MEDIA ADVERTISING AND
PROMOTIONAL MATERIALS FOR PURPOSES OF MARKETING: (A) THE NATURAL
RESOURCES, INFRASTRUCTURE, AND OTHER ATTRACTIONS OF A REGION WHICH ARE
NON-PROPRIETARY IN NATURE AND WHICH SERVE TO PROMOTE AND ENCOURAGE THE
LOCATION AND DEVELOPMENT OF NEW BUSINESSES WITHIN THE REGION; (B)
PRODUCTS MANUFACTURED BY STRATEGIC ALLIANCES OF BUSINESSES WITHIN A
REGION; AND (C) OTHER PRODUCTS MANUFACTURED IN ACCORDANCE WITH AN OFFI-
CIAL QUALITY CONTROL PROGRAM, WHICH MAY INCLUDE THE USE OF A LOGO-TYPE
OR SIMILAR ADVERTISING CONSTRUCT ESTABLISHED BY THE LEGISLATURE.
5. "STRATEGIC ALLIANCE" MEANS AN INFORMAL OR FORMAL ASSOCIATION OF
BUSINESSES IN A MANUFACTURING INDUSTRY ESTABLISHED FOR THE PURPOSE OF
SOLVING COMMON PROBLEMS AND ENGAGING IN COOPERATIVE ACTIVITIES AND THAT
IS CONSIDERED TO BE CRITICAL TO THE ECONOMY OF A REGION.
S 246. MATCHING FUNDS FOR ELIGIBLE APPLICANTS. 1. THE COMMISSIONER, IN
FURTHERANCE OF THE OBJECTIVES OF THE REGIONAL BUSINESS MARKETING
PROGRAM, IS AUTHORIZED TO MATCH FUNDS EXPENDED BY ELIGIBLE APPLICANTS
FOR THE PURPOSE OF IMPLEMENTATION OF REGIONAL MARKETING PROGRAMS AS
DEFINED IN SUBDIVISION FOUR OF SECTION TWO HUNDRED FORTY-FIVE OF THIS
ARTICLE; PROVIDED, HOWEVER, THAT:
(A) NO SUCH MATCHING FUNDS SHALL EXCEED THE SUM OF FIVE HUNDRED THOU-
SAND DOLLARS OR FIFTY PERCENT OF THE TOTAL COST OF IMPLEMENTATION OF THE
REGIONAL MARKETING PLAN, WHICHEVER IS LESS;
(B) NO SUCH MATCHING FUNDS SHALL BE USED FOR ADMINISTRATIVE COSTS,
INCLUDING SALARIES, ASSOCIATED WITH THE IMPLEMENTATION OF A REGIONAL
MARKETING PLAN;
(C) 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.
2. THE COMMISSIONER IS AUTHORIZED TO MATCH FUNDS EXPENDED BY AN ELIGI-
BLE APPLICANT IF THE ELIGIBLE APPLICANT REPRESENTS ONE OR MORE COUNTIES,
BUT FEWER THAN EACH OF THE SEVERAL COUNTIES, IN A STATE ECONOMIC DEVEL-
OPMENT REGION.
S 247. APPLICATION PROCESS. 1. THE COMMISSIONER, UPON INVESTIGATION
AND RECEIPT OF CERTIFIED COPIES OF SUCH RESOLUTIONS AS MAY BE NECESSARY
TO SATISFY HIM OR HER THAT AN ELIGIBLE APPLICANT HAS BEEN DULY DESIG-
NATED TO REPRESENT A PARTICULAR REGION, SHALL RECOGNIZE SUCH ELIGIBLE
APPLICANT AS THE SOLE SUCH APPLICANT WITHIN SUCH REGION. IN THE EVENT
THAT EACH OF THE SEVERAL COUNTIES WITHIN A REGION IS UNABLE OR UNWILLING
TO DESIGNATE A SINGLE APPLICANT TO REPRESENT A PARTICULAR REGION, OR IS
UNABLE OR UNWILLING TO ENCUMBER FUNDS PURSUANT TO SECTION TWO HUNDRED
FORTY-EIGHT OF THIS ARTICLE, ONE OR MORE COUNTIES WITHIN A REGION MAY
DESIGNATE AN ELIGIBLE APPLICANT TO REPRESENT A PARTICULAR REGION. IN
REVIEWING SUCH APPLICATIONS, THE COMMISSIONER MAY SELECT FROM AMONG
COMPETING OR OVERLAPPING APPLICATIONS THE APPLICATION THAT THE COMMIS-
SIONER CONSIDERS TO BE OF GREATER BENEFIT TO A PARTICULAR REGION AND THE
WELFARE OF THE PEOPLE OF THE STATE.
2. THE COMMISSIONER IS AUTHORIZED TO ACCEPT AND SET REASONABLE DEAD-
LINES FOR THE SUBMISSION OF APPLICATIONS FOR EACH FISCAL YEAR COVERED BY
APPROPRIATIONS IN ORDER TO MATCH FUNDS EXPENDED BY ELIGIBLE APPLICANTS
FOR THE PURPOSE OF THE IMPLEMENTATION OF REGIONAL MARKETING PROGRAMS. IN
REVIEWING AND SELECTING APPLICATIONS FROM ELIGIBLE APPLICANTS FOR
ASSISTANCE UNDER THIS PROGRAM, THE COMMISSIONER SHALL ENSURE THAT EACH
APPLICATION FOR SUCH FUNDS SHALL HAVE THEREIN SET FORTH THE SCHEDULE,
BUDGET, SCOPE, AND THEME OF THE PROPOSED REGIONAL MARKETING PROGRAM TO
BE UNDERTAKEN FOR THE PURPOSE OF ENCOURAGING AND STIMULATING BUSINESS
DEVELOPMENT AND ECONOMIC ACTIVITY WITHIN THE REGION OF THE STATE.
S. 4161 3
3. FOR THE PURPOSE OF PROMOTING INTERREGIONAL ECONOMIC DEVELOPMENT,
THE COMMISSIONER MAY APPROVE APPLICATIONS DULY SUBMITTED BY ONE OR MORE
COUNTIES IN EACH OF AT LEAST TWO STATE ECONOMIC DEVELOPMENT REGIONS. IN
APPROVING SUCH APPLICATIONS, THE COMMISSIONER SHALL DETERMINE THAT SUCH
APPLICATIONS ARE OF GREATER BENEFIT TO ONE OR MORE COUNTIES IN EACH OF
AT LEAST TWO REGIONS OF THE STATE AND TO THE WELFARE OF THE PEOPLE OF
THE STATE THAN APPLICATIONS SUBMITTED PURSUANT TO SUBDIVISION ONE OF
THIS SECTION.
4. NOTHING SHALL LIMIT AN ELIGIBLE APPLICANT FROM CREATING A REGIONAL
MARKETING PROGRAM WITH ANOTHER STATE, TERRITORY, PROTECTORATE, DEPENDEN-
CY, OR COUNTRY.
S 248. PAYMENTS OF FUNDS TO ELIGIBLE APPLICANTS. 1. UPON SUBMISSION
AND APPROVAL OF EACH APPLICATION AND THE AUTHORIZATION OF FUNDS BY THE
COMMISSIONER IN ACCORDANCE THEREWITH, THE COMMISSIONER SHALL GIVE NOTICE
TO THE ELIGIBLE APPLICANT OF SUCH APPROVAL AND AUTHORIZATION AND SHALL
DIRECT SUCH ELIGIBLE APPLICANT TO PROCEED WITH ITS PROPOSED BUSINESS
MARKETING PROGRAM AS DESCRIBED IN ITS APPLICATION. UPON THE FURNISHING
OF SATISFACTORY EVIDENCE TO THE DEPARTMENT THAT THE SEVERAL COUNTY
LEGISLATURES OR OTHER GOVERNING BODIES OF THE COUNTIES, OR THE CITY
COUNCIL OF THE CITY OF NEW YORK, IDENTIFIED IN THE APPLICATION HAVE
ENCUMBERED FUNDS IN THE AMOUNT COMMITTED AND APPROVED BY THE COMMISSION-
ER, THE STATE MATCHING FUNDS ALLOCATED TO SUCH ELIGIBLE APPLICANT SHALL
BE PAID, FROM THE FUNDS APPROPRIATED FOR SUCH PURPOSE, PURSUANT TO THIS
ARTICLE. ANY STATE FUNDS SO PAID MAY BE EXPENDED ONLY ON A MATCHING
BASIS AND ONLY WITHIN TWELVE MONTHS OF SUCH PAYMENT, UNLESS AN EXTENSION
OF TIME HAS BEEN REQUESTED AND, UPON SHOWING OF GOOD CAUSE, GRANTED BY
THE COMMISSIONER.
2. NO ADVERTISING OR MARKETING FUNDED FOR THE PURPOSES OF THIS ARTICLE
SHALL CONTAIN REFERENCE TO OR THE NAME OF ANY PUBLIC OFFICIAL OF THE
STATE OF NEW YORK OR ITS POLITICAL SUBDIVISIONS. "REFERENCE" INCLUDES
BUT IS NOT LIMITED TO PHOTOGRAPHS, DRAWINGS, CARICATURES, QUOTATIONS,
INVITATIONS, SIGNATURES, ENDORSEMENTS, OR SOUND OR VIDEO RECORDINGS.
3. ANY LOGOTYPE, SPECIAL PRINTING CHARACTERS, SLOGAN, OR LIKE DEVICE
DEVELOPED BY THE DEPARTMENT PURSUANT TO AN ADVERTISING CONSTRUCT ESTAB-
LISHED BY THE LEGISLATURE USED TO IDENTIFY PRODUCTS MANUFACTURED IN
ACCORDANCE WITH AN OFFICIAL QUALITY CONTROL PROGRAM AS PART OF A
REGIONAL BUSINESS MARKETING PROGRAM SHALL BECOME THE PROPERTY OF THE
STATE OF NEW YORK, AND ITS USE MAY BE SUBJECT TO ADDITIONAL REQUIRE-
MENTS, AS AND IF DEEMED NECESSARY BY THE LEGISLATURE.
S 249. REPORTING REQUIREMENTS. 1. IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, EACH ELIGIBLE APPLICANT SHALL FURNISH AN
ANNUAL FINANCIAL STATEMENT TO THE COMMISSIONER. SUCH REPORTS SHALL BE
SUBMITTED ON OR BEFORE JANUARY FIRST OF EACH YEAR.
2. THE DEPARTMENT SHALL ANNUALLY, ON OR BEFORE MARCH FIRST, SUBMIT TO
THE GOVERNOR, THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF
THE ASSEMBLY A REPORT ON THE ACTIVITIES OF THE REGIONAL BUSINESS MARKET-
ING MATCHING FUNDS PROGRAM. SUCH REPORT SHALL INCLUDE A SUMMARY OF THE
FINANCIAL STATEMENTS RECEIVED BY THE DEPARTMENT FROM ELIGIBLE APPLI-
CANTS, A SUMMARY OF ACTIVITIES CONDUCTED BY ELIGIBLE APPLICANTS, AND
ANALYSES OF THE EFFECTIVENESS OF THE PROGRAM IN STIMULATING ECONOMIC
GROWTH AND JOB CREATION. AS A PRODUCT OF SUCH ANALYSES, THE DEPARTMENT
SHALL COMPILE AND DISSEMINATE TO EACH ELIGIBLE APPLICANT A LIST AND
DESCRIPTION OF BEST PRACTICES IN ORDER TO FURTHER PROMOTE AND ENCOURAGE
THE LOCATION AND DEVELOPMENT OF NEW BUSINESSES IN THE STATE AND THE
EXPANSION AND DEVELOPMENT OF NEW MARKETS FOR NEW YORK PRODUCTS.
S 2. This act shall take effect immediately.