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

                                  6940

                            I N  S E N A T E

                              April 4, 2014
                               ___________

Introduced  by Sen. GALLIVAN -- 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 establish-
  ing an economic gardening  pilot  program  within  the  department  of
  economic development

  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 22 to read as follows:
                               ARTICLE 22
                             GROWNY PROGRAM
SECTION 450. GROWNY PILOT PROGRAM.
  S 450. GROWNY PILOT PROGRAM. 1. (A) THERE IS HEREBY CREATED WITHIN THE
DEPARTMENT THE GROWNY PILOT PROGRAM. THE PURPOSE OF THE PILOT PROGRAM IS
TO  STIMULATE  INVESTMENT  IN  THE  STATE ECONOMY BY PROVIDING TECHNICAL
ASSISTANCE FOR EXPANDING BUSINESSES IN THE STATE.
  (B) THE DEPARTMENT IS AUTHORIZED AND DIRECTED TO PROMULGATE ALL NECES-
SARY RULES AND  REGULATIONS  REQUIRED  TO  IMPLEMENT  THE  GROWNY  PILOT
PROGRAM.
  2. (A) THE DEPARTMENT SHALL CONTRACT WITH REGIONAL NON-PROFIT ECONOMIC
DEVELOPMENT ENTITIES TO ADMINISTER THE PILOT PROGRAM UNDER THIS SECTION.
THE  DEPARTMENT  SHALL  AWARD  COMPETITIVE  GRANTS OF UP TO FIVE HUNDRED
THOUSAND DOLLARS A YEAR FOR A PERIOD OF UP TO FIVE YEARS TO EACH  ENTITY
THAT  DEMONSTRATES  THE  ABILITY TO IMPLEMENT THE PILOT PROGRAM IN THEIR
REGION, HAS AN OUTREACH PLAN, AND HAS THE ABILITY TO PROVIDE  COUNSELING
SERVICES,  ACCESS  TO TECHNOLOGY AND INFORMATION, MARKETING SERVICES AND
ADVICE, BUSINESS MANAGEMENT SUPPORT, AND OTHER SIMILAR SERVICES.
  (B) CONTRACTS WITH SELECTED ECONOMIC DEVELOPMENT ENTITIES SHALL BE FOR
A PERIOD OF FIVE YEARS AND SHALL BE REEVALUATED BY THE DEPARTMENT  EVERY
TWELVE  MONTHS  TO  ENSURE  SUCH ENTITIES CONTINUE TO PROVIDE A POSITIVE
ECONOMIC BENEFIT TO THE COMMUNITY AND CONFORM TO THE  PROGRAM  CRITERIA.
CONTRACTED  ENTITIES SHALL NOT LIMIT SERVICES OFFERED UNDER THIS PROGRAM
TO MEMBERS OF SUCH ENTITY AND SHALL SEEK TO PROVIDE  ECONOMIC  GARDENING

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

                                                           LBD03323-03-4

S. 6940                             2

SERVICES  TO  EVERY  ELIGIBLE  BUSINESS  THAT  MEETS THE CRITERIA OF THE
PROGRAM.
  (C)  CONTRACTED ENTITIES SHALL COORDINATE THEIR EFFORTS WITH THE LOCAL
NEW YORK STATE SMALL BUSINESS DEVELOPMENT CENTER OR OTHER LEAD  ECONOMIC
DEVELOPMENT  ORGANIZATIONS  IN  COUNTIES AND CITIES WITHIN THE REGION OF
THE CONTRACTED ENTITY AND SHALL ESTABLISH A REFERRAL SYSTEM AND LINKAGES
TO EXISTING AREA SMALL BUSINESS ASSISTANCE PROGRAMS AND FINANCING SOURC-
ES.
  3. A CONTRACTED ENTITY ADMINISTERING THE PILOT PROGRAM  SHALL  PROVIDE
TECHNICAL  ASSISTANCE FOR ELIGIBLE BUSINESSES WHICH INCLUDES, BUT IS NOT
LIMITED TO:
  (A) ACCESS TO AFFORDABLE INFORMATION SERVICES AND CONSULTING SERVICES,
INCLUDING INFORMATION ON MARKETS, CUSTOMERS, AND  COMPETITORS,  BUSINESS
DATABASES,  GEOGRAPHIC  INFORMATION  SYSTEMS,  INTERNET AND SOCIAL MEDIA
STRATEGIES, BUSINESS TO BUSINESS REFERRALS, AND SEARCH ENGINE  OPTIMIZA-
TION;
  (B)  DEVELOPMENT  OF  BUSINESS  CONNECTIONS, INCLUDING INTERACTION AND
EXCHANGE  AMONG  BUSINESS  OWNERS  AND  RESOURCE  PROVIDERS,   INCLUDING
COLLEGES  AND  UNIVERSITIES,  TRADE  ASSOCIATIONS, THINK TANKS, ACADEMIC
INSTITUTIONS, BUSINESS  ROUNDTABLES,  FINANCIAL  SERVICE  AND  WORKFORCE
DEVELOPMENT  PROVIDERS,  PEER-TO-PEER  LEARNING  SESSIONS, AND MENTORING
PROGRAMS;
  (C) ASSISTANCE IN DEVELOPING A LISTING OF SHOVEL READY SITES CURRENTLY
AVAILABLE TO THE NEEDS OF THE BUSINESS;
  (D) ASSISTANCE IN UNDERSTANDING STATE LAWS AND REGULATIONS  APPLICABLE
TO SUCH BUSINESS;
  (E)  ANY  OTHER FORM OF CONSULTATION AND TECHNICAL ASSISTANCE THAT MAY
BE PROVIDED TO THE ELIGIBLE BUSINESS TO ASSIST  WITH  ITS  BUSINESS  AND
MARKETING NEEDS.
  4.  (A)  THIS PROGRAM SHALL BE TARGETED AT EMERGING GROWTH BUSINESSES,
KNOWN AS SECOND STAGE COMPANIES. TO BE ELIGIBLE FOR ASSISTANCE UNDER THE
PILOT PROGRAM, A BUSINESS MUST BE A FOR-PROFIT, PRIVATELY HELD  BUSINESS
THAT  EMPLOYS  AT  LEAST  FIVE  PERSONS,  BUT  NOT MORE THAN NINETY-NINE
PERSONS, HAS MAINTAINED ITS PRINCIPAL PLACE OF BUSINESS IN THE STATE FOR
AT LEAST THE PREVIOUS TWO YEARS, AND GENERATES AT  LEAST  SEVEN  HUNDRED
FIFTY  THOUSAND  DOLLARS,  BUT  NOT  MORE THAN FIFTY MILLION DOLLARS, IN
ANNUAL REVENUE. THE  COMMISSIONER  SHALL  HAVE  THE  AUTHORITY  TO  MAKE
EXCEPTIONS TO THESE PROVISIONS AT HIS OR HER SOLE DISCRETION.
  (B)  A CONTRACTED ENTITY ADMINISTERING THE PILOT PROGRAM, IN SELECTING
THE ELIGIBLE BUSINESSES TO RECEIVE ASSISTANCE, SHALL ACTIVELY REACH  OUT
TO  BUSINESSES  IN  MORE  THAN  ONE INDUSTRY CLUSTER AND, TO THE MAXIMUM
EXTENT PRACTICABLE, SHALL  CHOOSE  BUSINESSES  THAT  ARE  GEOGRAPHICALLY
DISTRIBUTED  THROUGHOUT  THE  REGION WITH THE GREATEST POTENTIAL FOR JOB
GROWTH.
  5. (A) A BUSINESS RECEIVING ASSISTANCE UNDER THE  PILOT  PROGRAM  MUST
ENTER  INTO  AN  AGREEMENT  WITH THE CONTRACTED ENTITY ADMINISTERING THE
PROGRAM TO ESTABLISH THE BUSINESS' COMMITMENT TO  PARTICIPATION  IN  THE
PILOT  PROGRAM.  THE  ARRANGEMENT  MUST  REQUIRE, AT A MINIMUM, THAT THE
BUSINESS:
  (I) ATTEND A MINIMUM NUMBER OF MEETINGS BETWEEN THE BUSINESS  AND  THE
CONTRACTED  ENTITY  ADMINISTERING THE PILOT PROGRAM. SUCH MEETINGS SHALL
BE HELD AT THE CONVENIENCE OF THE BUSINESS;
  (II) REPORT INVESTMENT, REVENUE, AND JOB CREATION AND  RETENTION  DATA
IN  THE  MANNER  PRESCRIBED  BY  THE CONTRACTED ENTITY ADMINISTERING THE
PILOT PROGRAM; AND

S. 6940                             3

  (III) PROVIDE NON-PROPRIETARY FINANCIAL DATA IN THE MANNER  PRESCRIBED
BY THE CONTRACTED ENTITY ADMINISTERING THE PROGRAM.
  (B)  THE  REGIONAL  NON-PROFIT  ECONOMIC  DEVELOPMENT  ENTITY  OR  THE
CONTRACTED ENTITY ADMINISTERING  THE  PILOT  PROGRAM  SHALL  REPORT  THE
INFORMATION TO THE DEPARTMENT ON AN ANNUAL BASIS.
  6.  A  CONTRACTED ENTITY ADMINISTERING THE PILOT PROGRAM IS AUTHORIZED
TO PROMOTE THE GENERAL BUSINESS INTERESTS OR INDUSTRIAL INTERESTS OF THE
STATE.
  7. THE DEPARTMENT SHALL REVIEW THE PROGRESS OF THE  CONTRACTED  ENTITY
ADMINISTERING  THE  PILOT  PROGRAM AT LEAST ONCE EVERY TWELVE MONTHS AND
SHALL DETERMINE WHETHER THE CONTRACTED ENTITY IS MEETING ITS CONTRACTUAL
OBLIGATIONS FOR ADMINISTERING THE  PILOT  PROGRAM.  THE  DEPARTMENT  MAY
TERMINATE  AND  REBID  A CONTRACT IF THE CONTRACTED ENTITY DOES NOT MEET
ITS CONTRACTUAL OBLIGATIONS.
  8. BY MARCH THIRTY-FIRST, TWO THOUSAND FIFTEEN AND ANNUALLY  THEREAFT-
ER,  THE DEPARTMENT SHALL SUBMIT A REPORT TO THE GOVERNOR, THE TEMPORARY
PRESIDENT OF THE SENATE, THE SPEAKER OF THE ASSEMBLY, THE MINORITY LEAD-
ER OF THE SENATE AND THE MINORITY LEADER OF THE ASSEMBLY WHICH DESCRIBES
IN DETAIL THE PROGRESS OF THE GROWNY PILOT  PROGRAM.  THE  REPORT  SHALL
INCLUDE,  BUT  IS  NOT  LIMITED  TO,  THE NUMBER OF BUSINESSES RECEIVING
ASSISTANCE, THE NUMBER OF FULL-TIME EQUIVALENT JOBS CREATED OR  RETAINED
AS A RESULT OF THE ASSISTANCE, IF ANY, AND THE AGGREGATE AMOUNT OF WAGES
PAID TO SUCH EMPLOYEES.
  S 2. This act shall take effect immediately.