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

                                  4103

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 9, 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  and  the  New  York  state
  urban development corporation act, in relation to establishing a stra-
  tegic network partnerships program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1.  Section 190 of the economic development law is amended  by
adding three new subdivisions 7, 8 and 9 to read as follows:
  7.  "STRATEGIC  INDUSTRY"  SHALL  MEAN  A REGIONAL OR STATEWIDE INDUS-
TRY GROUP ENGAGED IN MANUFACTURING  OR  OTHER  PRODUCTION  OF  GOODS  OR
SERVICES, INCLUDING RESEARCH AND DEVELOPMENT ACTIVITIES, THAT IS CONSID-
ERED  TO BE CRITICAL TO THE ECONOMY OF THE STATE IN TERMS OF EMPLOYMENT,
AND/OR IN WHICH THE STATE APPEARS TO HAVE A COMPARATIVE ADVANTAGE  WHICH
WOULD  ENABLE  SUCH  AN INDUSTRY GROUP TO CONTINUE TO MAKE A SIGNIFICANT
CONTRIBUTION TO THE ECONOMIC HEALTH OF THE STATE  OR  A  REGION  OF  THE
STATE, AND WHICH IS DESIGNATED BY THE COMMISSIONER AS A STRATEGIC INDUS-
TRY PURSUANT TO SECTION ONE HUNDRED NINETY-TWO-B OF THIS ARTICLE.
  8.  "SUPPLIER  NETWORK"  SHALL  MEAN  A STATEWIDE OR REGIONAL GROUP OF
SMALL AND MEDIUM-SIZED MANUFACTURING FIRMS OR OTHER PRODUCERS  OF  GOODS
OR SERVICES, INCLUDING RESEARCH AND DEVELOPMENT ACTIVITIES, IN DIFFERENT
INDUSTRY  GROUPS WHICH SUPPLY THE SAME MANUFACTURING COMPANY OR GROUP OF
SIMILAR MANUFACTURING COMPANIES WITH PRODUCTS USED IN  THE  MANUFACTURE,
PRODUCTION, OR ASSEMBLING OF FINAL PRODUCTS.
  9.  "STRATEGIC ALLIANCES" SHALL MEAN AN INFORMAL OR FORMAL ASSOCIATION
OF BUSINESSES IN A STRATEGIC INDUSTRY FOR THE PURPOSE OF SOLVING  COMMON
PROBLEMS AND ENGAGING IN COOPERATIVE ACTIVITIES.
  S  2.  The  economic  development  law  is amended by adding three new
sections 192-a, 192-b and l92-c to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03944-01-9

              

S. 4103                             2

  S 192-A. STRATEGIC NETWORK PARTNERSHIPS  PROGRAM.  1.  THE  DEPARTMENT
SHALL  ENTER INTO AN AGREEMENT WITH THE NEW YORK STATE URBAN DEVELOPMENT
CORPORATION, THE NEW YORK STATE JOB DEVELOPMENT AUTHORITY, THE NEW  YORK
STATE  OFFICE  OF  SCIENCE,  TECHNOLOGY AND ACADEMIC RESEARCH, THE STATE
UNIVERSITY  OF  NEW YORK, THE STATE EDUCATION DEPARTMENT, THE DEPARTMENT
OF LABOR AND OTHER STATE AGENCIES TO CREATE A STRATEGIC NETWORK PARTNER-
SHIPS PROGRAM WHICH SHALL BE COORDINATED BY THE DEPARTMENT.
  2. IN ORDER TO EFFECT SUCH COORDINATION, THE COMMISSIONER SHALL ESTAB-
LISH THROUGH THE STRATEGIC NETWORK PARTNERSHIPS PROGRAM AN  INTER-AGENCY
COMMITTEE  COMPOSED OF REPRESENTATIVES OF EACH OF THE STATE AGENCIES SET
FORTH IN SUBDIVISION ONE OF THIS SECTION, WHICH SHALL PROVIDE INTEGRATED
PLANNING OF STATE-SUPPORTED INDUSTRIAL MODERNIZATION ACTIVITIES, INCLUD-
ING DEVELOPMENT OF CRITERIA AND  PROCESSES  FOR  THE  IDENTIFICATION  OF
STRATEGIC  INDUSTRIES  IN  COOPERATION WITH THE STRATEGIC INDUSTRY GROUP
AND SUPPLIER NETWORK ADVISORY PANEL ESTABLISHED PURSUANT TO SECTION  ONE
HUNDRED NINETY-TWO-B OF THIS ARTICLE.
  3.  THROUGH  THE STRATEGIC NETWORK PARTNERSHIPS PROGRAM THE DEPARTMENT
SHALL:
  (A) ORGANIZE, INTEGRATE AND  COORDINATE  STATE  PROGRAMS  DESIGNED  TO
ASSIST MANUFACTURING INDUSTRIES AND OTHER PRODUCERS OF GOODS OR SERVICES
TO BECOME MORE COMPETITIVE AND PRODUCTIVE.
  (B) ANALYZE THE MODERNIZATION NEEDS OF SMALL AND MEDIUM-SIZED MANUFAC-
TURERS  AND  OTHER  PRODUCERS  OF  GOODS OR SERVICES, INCLUDING SELECTED
BRANCH PLANTS OF LARGER FIRMS, AT BOTH THE INDIVIDUAL FIRM  AND  OVERALL
INDUSTRY  LEVELS, FOR THE PURPOSE OF TARGETING APPROPRIATE AND NECESSARY
RESOURCES TO IMPROVE PRODUCTIVITY AND COMPETITIVENESS.
  (C) STIMULATE SELF-HELP ACTIVITIES THAT ARE DEVELOPED THROUGH  COOPER-
ATIVE  EFFORTS  BY  FIRMS  OR  GROUPS OF FIRMS AT THE STATE AND REGIONAL
LEVELS, WHICH ARE DESIGNED TO DEVELOP SOLUTIONS TO FUNDAMENTAL  PROBLEMS
FACING INDUSTRY GROUPS.
  (D)  ENCOURAGE,  WHERE APPROPRIATE, THE FORMATION OF FLEXIBLE MANUFAC-
TURING NETWORKS AMONG SMALLER FIRMS.
  (E) CREATE A COMPUTER NETWORK AMONG MANUFACTURING FIRMS IN  THE  STATE
OR REGION.
  (F)  ESTABLISH  A STRATEGIC INDUSTRIES GROUP SERVICES PROGRAM PURSUANT
TO SECTION ONE HUNDRED NINETY-TWO-B OF THIS ARTICLE.
  (G) ESTABLISH A SUPPLIER NETWORK GROUP SERVICES  PROGRAM  PURSUANT  TO
SECTION ONE HUNDRED NINETY-TWO-C OF THIS ARTICLE.
  4.  THE  FOLLOWING PROGRAMS WITHIN THE DEPARTMENT AND THE AGENCIES AND
AUTHORITIES SET FORTH IN SUBDIVISION ONE OF THIS SECTION SHALL BE  COOR-
DINATED  WITH  THE  STRATEGIC NETWORK PARTNERSHIPS PROGRAM:   INDUSTRIAL
EFFECTIVENESS PROGRAM, PROCUREMENT ASSISTANCE PROGRAMS,  EXPORT  ASSIST-
ANCE PROGRAMS, EXCELSIOR LINKED DEPOSIT PROGRAM, THE URBAN AND COMMUNITY
DEVELOPMENT  PROGRAM,  THE  EMPIRE  STATE ECONOMIC DEVELOPMENT FUND, THE
STRATEGIC TRAINING ALLIANCE PROGRAM AND OTHER PROGRAMS AS DETERMINED  BY
THE COMMISSIONER.
  5.  THE  COMMISSIONER  SHALL  ESTABLISH,  WITHIN THE STRATEGIC NETWORK
PARTNERSHIPS PROGRAM, A QUALITY COUNCIL PROGRAM DESIGNED  TO  COORDINATE
EDUCATIONAL  AND  ECONOMIC  DEVELOPMENT ASSISTANCE ACTIVITIES RELATED TO
FURTHERING THE IMPLEMENTATION OF  TOTAL  QUALITY  MANAGEMENT  PRINCIPLES
WITHIN  MANUFACTURING  FIRMS AND INDUSTRIES AND OTHER PRODUCERS OF GOODS
OR SERVICES.  THE QUALITY COUNCIL PROGRAM SHALL INCLUDE COMMUNICATION ON
INFORMATION CONCERNING QUALITY PRINCIPLES AND  BEST  QUALITY  PRACTICES,
SPONSORSHIP  OF  QUALITY  CONFERENCES, SEMINARS AND WORKSHOPS, AND SHALL
SERVE AS A QUALITY INFORMATION CLEARINGHOUSE FOR MANUFACTURERS.

S. 4103                             3

  S 192-B. STRATEGIC INDUSTRIES GROUP SERVICES PROGRAM.  1.  THE DEPART-
MENT SHALL:
  (A)  ESTABLISH  WITHIN  THE  STRATEGIC  NETWORK PARTNERSHIPS PROGRAM A
STRATEGIC INDUSTRIES GROUP SERVICES PROGRAM AND CREATE A PROCESS, PURSU-
ANT TO SUBDIVISION TWO OF THIS SECTION, TO DESIGNATE CERTAIN  INDUSTRIAL
GROUPS  ENGAGED  IN  MANUFACTURING  OR  THE PRODUCTION OF OTHER GOODS OR
SERVICES AS STRATEGIC INDUSTRIES.
  (B) ACTIVELY PROMOTE COOPERATION AMONG FIRMS IN A  STRATEGIC  INDUSTRY
TO  IDENTIFY NEEDS, SOLVE COMMON PROBLEMS, AND ENCOURAGE AND BUILD COOP-
ERATIVE PROGRAMS AMONG MEMBER COMPANIES OF STRATEGIC NETWORKS  OR  ALLI-
ANCES  IN AREAS CRITICAL TO THEIR SURVIVAL AND GROWTH, SUCH AS WORKFORCE
DEVELOPMENT, MARKET DEVELOPMENT AND EXPANSION,  EXPORT  TRADE,  COMPETI-
TIVENESS IMPROVEMENT, PRODUCT QUALITY IMPROVEMENT, TOTAL QUALITY MANAGE-
MENT, PRODUCT DIVERSIFICATION, AND HIGH PERFORMANCE WORK ORGANIZATIONS.
  (C) OFFER COMPANIES WITHIN A STRATEGIC INDUSTRY VARIOUS FORMS OF TECH-
NICAL  AND  FINANCIAL ASSISTANCE, IN COOPERATION WITH THE NEW YORK STATE
URBAN DEVELOPMENT  CORPORATION,  THE  NEW  YORK  STATE  JOB  DEVELOPMENT
AUTHORITY, THE NEW YORK STATE OFFICE OF SCIENCE, TECHNOLOGY AND ACADEMIC
RESEARCH,  AND  OTHER STATE AGENCIES, AS INCENTIVES FOR THE FORMATION OF
STRATEGIC ALLIANCES AMONG FIRMS IN A DESIGNATED STRATEGIC  INDUSTRY  AND
DIRECT  SUCH  ASSISTANCE  TOWARD  ADDRESSING  THE  PROBLEMS OF STRATEGIC
INDUSTRIES PURSUANT TO AGREEMENTS ENTERED INTO WITH STATE  AGENCIES  AND
AUTHORITIES  PURSUANT  TO SECTION ONE HUNDRED NINETY-TWO-A OF THIS ARTI-
CLE.
  (D) PROVIDE IN-DEPTH ASSISTANCE FOR ACTIVITIES SPONSORED  BY  INDUSTRY
ASSOCIATIONS  AND  STRATEGIC ALLIANCES IN STRATEGIC INDUSTRIES TO STIMU-
LATE INDUSTRIAL MODERNIZATION AND MARKET EXPANSION ACTIVITY.
  (E) IN COOPERATION WITH THE OFFICE OF SCIENCE, TECHNOLOGY AND ACADEMIC
RESEARCH, ASSIST AND SUPPORT STRATEGIC INDUSTRIES IN ACCESSING  MANUFAC-
TURING  TECHNOLOGY  SERVICE AND OUTREACH CENTERS CREATED PURSUANT TO THE
FEDERAL DEFENSE CONVERSION REINVESTMENT AND TRANSITION ASSISTANCE ACT OF
1992 (P.L. 102-484) AND OTHER SOURCES OF STATE AND  LOCAL  MODERNIZATION
ASSISTANCE DESIGNED TO:
  (I)  COLLECT  AND DISSEMINATE THE MOST CURRENT INFORMATION ON MANUFAC-
TURING AND PRODUCTION  METHODS,  PROCEDURES,  PROCESS  AND  TECHNOLOGIES
RELEVANT  TO  MEMBERS OF THE STRATEGIC INDUSTRY SERVED BY THE CENTER AND
CREATE AN INFORMATION RETRIEVAL SYSTEM FOR USE BY MEMBERS OF A STRATEGIC
INDUSTRY.
  (II) CONDUCT DEMONSTRATIONS OF  THE  MOST  CURRENT  MANUFACTURING  AND
PRODUCTION  METHODS,  PROCEDURES, PROCESSES AND TECHNOLOGIES FOR MEMBERS
OF THE STRATEGIC INDUSTRY AND UNDERTAKE TECHNOLOGY TRANSFER ACTIVITIES.
  (III) PROVIDE TECHNICAL ASSISTANCE TO STRATEGIC INDUSTRY GROUP MEMBERS
TO ASSIST THEM IN ANALYZING PRODUCTION PROBLEMS AND IN IMPLEMENTING  NEW
MANUFACTURING  AND PRODUCTION PRACTICES, PROCESSES, PROCEDURES AND TECH-
NOLOGIES.
  (IV) PROVIDE THE OPPORTUNITY FOR SHARED MANUFACTURING  AND  PRODUCTION
SPACE  AND  THE  USE  OF  SPECIALIZED DEMONSTRATION EQUIPMENT FOR USE BY
INDIVIDUAL FIRMS OR GROUPS OF FIRMS IN A STRATEGIC INDUSTRY GROUP.
  (V) ESTABLISH TIES WITH UNIVERSITIES AND CONDUCT JOINT  RESEARCH  INTO
THE PROBLEMS AFFECTING A STRATEGIC INDUSTRY GROUP.
  (VI)  OFFER MANAGEMENT AND TECHNICAL COURSES TO MEMBERS OF A STRATEGIC
INDUSTRY GROUP.
  (VII) ARRANGE FOR AND CONDUCT WORKER PARTICIPATION  AND  TRAINING  FOR
STRATEGIC INDUSTRY GROUP MEMBERS.
  (VIII)  ARRANGE  FOR  AND  PROVIDE  EXPORT INFORMATION, ASSISTANCE AND
REPRESENTATION AT TRADE SHOWS.

S. 4103                             4

  (IX) ACT AS PACKAGERS, WHERE APPROPRIATE, OF GROUP INSURANCE FOR STRA-
TEGIC INDUSTRY GROUP MEMBERS.
  (F) GRADUALLY REDUCE ASSISTANCE TO STRATEGIC INDUSTRY GROUPS OVER TIME
TO ALLOW INDUSTRY GROUPS TO BECOME USER-FUNDED AND SELF-SUPPORTING.
  2. (A) THE COMMISSIONER SHALL DESIGNATE A STRATEGIC INDUSTRY GROUP AND
SUPPLIER NETWORK ADVISORY PANEL.
  (I)  SUCH  ADVISORY  PANEL SHALL BE COMPOSED OF LEADING UNIVERSITY AND
PRIVATE SECTOR ECONOMISTS, REPRESENTATIVES OF  LABOR  GROUPS,  REPRESEN-
TATIVES  FROM THE PRIVATE BUSINESS SECTOR, SELECTED MEMBERS OF THE BOARD
OF DIRECTORS OF THE NEW YORK STATE URBAN  DEVELOPMENT  CORPORATION,  THE
NEW  YORK STATE JOB DEVELOPMENT AUTHORITY, AND THE NEW YORK STATE OFFICE
OF SCIENCE, TECHNOLOGY AND ACADEMIC RESEARCH AND  OTHER  SUCH  REPRESEN-
TATIVES AS THE COMMISSIONER DEEMS APPROPRIATE.
  (II)  THE  MEMBERS OF THE ADVISORY BOARD SHALL RECEIVE NO COMPENSATION
FOR THEIR SERVICES BUT SHALL  BE  ALLOWED  THEIR  ACTUAL  AND  NECESSARY
EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES.
  (B)  THE  STRATEGIC INDUSTRY GROUP AND SUPPLIER NETWORK ADVISORY PANEL
SHALL:
  (I) ASSIST THE COMMISSIONER IN DEVELOPING CRITERIA FOR  DESIGNATING  A
STRATEGIC  INDUSTRY  GROUP, SUCH CRITERIA TO BE PUBLISHED BY THE COMMIS-
SIONER.
  (II)  USE  SUCH  CRITERIA  TO  PERIODICALLY  REVIEW THE  CONDITION  OF
MANUFACTURING  INDUSTRIES IN THE STATE AND RECOMMEND TO THE COMMISSIONER
INDUSTRY GROUPS FOR DESIGNATION AS STRATEGIC INDUSTRIES.
  (III) ASSIST A  STRATEGIC  INDUSTRY  DESIGNATED  BY  THE  COMMISSIONER
PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION TO DEVELOP A COMPACT AMONG
ITS  MEMBER  INDUSTRIES  AND BETWEEN ITS MEMBER INDUSTRIES AND THE STATE
SETTING FORTH AN AGREEMENT OF COOPERATION CONSISTENT WITH THE  APPROPRI-
ATE  AND  RELEVANT  ELEMENTS  OF  COOPERATION  SET  FORTH IN SECTION ONE
HUNDRED NINETY-TWO-A OF THIS ARTICLE AND THIS SECTION, SUCH  COMPACT  TO
BE  SIGNED  BY THE MEMBER INDUSTRIES OF A STRATEGIC INDUSTRY, THE GOVER-
NOR, THE TEMPORARY PRESIDENT OF THE  SENATE,  AND  THE  SPEAKER  OF  THE
ASSEMBLY.
  (C) THE COMMISSIONER SHALL, FROM AMONG THE INDUSTRY GROUPS RECOMMENDED
BY  THE  ADVISORY  PANEL  FOR  DESIGNATION AS STRATEGIC INDUSTRY GROUPS,
DESIGNATE STRATEGIC INDUSTRIES, SUCH DESIGNATION TO BE  FINAL  UPON  THE
SIGNING  OF  THE  COMPACT AS SET FORTH IN PARAGRAPH (B) OF THIS SUBDIVI-
SION.
  (D) NO DESIGNATION OF AN INDUSTRY GROUP AS A STRATEGIC INDUSTRY  SHALL
BE  MADE FOR A PERIOD OF LONGER THAN THREE YEARS FROM THE TIME OF DESIG-
NATION; PROVIDED, HOWEVER, THAT THE ADVISORY  PANEL  SHALL  BE  ABLE  TO
COMMEND  AN INDUSTRY GROUP FOR REDESIGNATION UNDER THE PROCESS SET FORTH
IN THIS SUBDIVISION, AND THE COMMISSIONER MAY  REDESIGNATE  AN  INDUSTRY
GROUP AS A STRATEGIC INDUSTRY.
  3. INDUSTRIES DESIGNATED OR REDESIGNATED AS STRATEGIC INDUSTRIES SHALL
HAVE  PREFERENCE FOR ASSISTANCE UNDER THE STRATEGIC NETWORK PARTNERSHIPS
PROGRAM SET FORTH IN SECTION ONE HUNDRED NINETY-TWO-A OF THIS ARTICLE.
  4.  THE DEPARTMENT SHALL MONITOR AND PERIODICALLY REVIEW THE  PERFORM-
ANCE  OF STRATEGIC INDUSTRY GROUPS TO DETERMINE WHETHER OR NOT CONTINUED
PREFERENCE UNDER SUBDIVISION THREE OF THIS SECTION IS WARRANTED  ACCORD-
ING  TO  CRITERIA  DEVELOPED BY THE DEPARTMENT, SUCH CRITERIA TO INCLUDE
THE EXTENT TO WHICH THE INDUSTRY HAS UNDERTAKEN THE SELF-HELP  MEASURES,
THE  FINANCIAL  CONTRIBUTIONS  TO THE   PROGRAM   BY THE INVOLVED FIRMS,
PROGRESS TOWARD SELF-SUFFICIENCY, AND THE  JOB  RETENTION  AND  CREATION
EFFECTS  OF  THE  PROGRAM  ON  A PARTICULAR STRATEGIC INDUSTRY, AND  MAY
DISCONTINUE SUCH PREFERENCE AT ANY TIME  THAT  IT  DETERMINES  THAT  THE

S. 4103                             5

PERFORMANCE  OF A STRATEGIC INDUSTRY GROUP IS NOT SATISFACTORY ACCORDING
TO SUCH CRITERIA.
  S  192-C.  SUPPLIER  NETWORK GROUP SERVICES PROGRAM. L. THE DEPARTMENT
SHALL:
  (A) ESTABLISH WITHIN THE  STRATEGIC  NETWORK  PARTNERSHIPS  PROGRAM  A
SUPPLIER  NETWORK  GROUP SERVICES PROGRAM AND CREATE A PROCESS, PURSUANT
TO SUBDIVISION TWO OF THIS SECTION, TO DESIGNATE  AS  SUPPLIER  NETWORKS
CERTAIN  SMALL  AND MEDIUM-SIZED MANUFACTURING FIRMS AND OTHER PRODUCERS
OF GOODS OR SERVICES IN DIFFERENT INDUSTRY GROUPS WHICH SUPPLY THE  SAME
MANUFACTURING  COMPANY  OR GROUP OF SIMILAR MANUFACTURING COMPANIES WITH
THE PRODUCTS USED IN THE MANUFACTURE, PRODUCTION, OR ASSEMBLING OF FINAL
PRODUCTS.
  (B) ACTIVELY PROMOTE COOPERATION AMONG FIRMS IN A SUPPLIER NETWORK  TO
IDENTIFY NEEDS AND SOLVE COMMON PROBLEMS.
  (C) OFFER COMPANIES WITHIN A SUPPLIER NETWORK VARIOUS FORMS OF TECHNI-
CAL  AND FINANCIAL ASSISTANCE, IN COOPERATION  WITH  THE NEW  YORK STATE
URBAN DEVELOPMENT  CORPORATION,  THE  NEW  YORK  STATE  JOB  DEVELOPMENT
AUTHORITY, THE NEW YORK STATE OFFICE OF SCIENCE, TECHNOLOGY AND ACADEMIC
RESEARCH,  AND  OTHER STATE AGENCIES, AS INCENTIVES FOR THE FORMATION OF
STRATEGIC ALLIANCES AMONG FIRMS IN A  DESIGNATED  SUPPLIER  NETWORK  AND
DIRECT  SUCH ASSISTANCE TOWARD ADDRESSING THE PROBLEMS OF THE FIRMS IN A
SUPPLIER NETWORK PURSUANT TO AGREEMENTS ENTERED INTO WITH STATE AGENCIES
AND AUTHORITIES PURSUANT TO SECTION ONE  HUNDRED  NINETY-THREE  OF  THIS
ARTICLE.
  (D) ASSIST AND SUPPORT SUPPLIER NETWORKS BY:
  (I) COLLECTING AND DISSEMINATING THE MOST CURRENT INFORMATION ON MANU-
FACTURING  METHODS,  PROCEDURES,  PROCESSES AND TECHNOLOGIES RELEVANT TO
MEMBERS OF A SUPPLIER NETWORK AND CREATE AN INFORMATION RETRIEVAL SYSTEM
FOR USE BY MEMBERS OF A SUPPLIER NETWORK.
  (II) CONDUCT DEMONSTRATIONS OF  THE  MOST  CURRENT  MANUFACTURING  AND
PRODUCTION  METHODS,  PROCEDURES, PROCESSES AND TECHNOLOGIES FOR MEMBERS
OF THE SUPPLIER NETWORK AND UNDERTAKE TECHNOLOGY TRANSFER ACTIVITIES.
  (III) PROVIDE TECHNICAL ASSISTANCE TO A SUPPLIER NETWORK TO ASSIST ITS
MEMBERS IN ANALYZING PRODUCTION PROBLEMS AND IN IMPLEMENTING  NEW  MANU-
FACTURING PRACTICES, PROCESSES, PROCEDURES AND TECHNOLOGIES.
  (IV)  PROVIDE  THE  OPPORTUNITY FOR SHARED MANUFACTURING OR PRODUCTION
SPACE AND THE USE OF SPECIALIZED  DEMONSTRATION  EQUIPMENT  FOR  USE  BY
INDIVIDUAL FIRMS OR GROUPS OF FIRMS IN A SUPPLIER NETWORK.
  (V)  ESTABLISH  TIES WITH UNIVERSITIES AND CONDUCT JOINT RESEARCH INTO
THE PROBLEMS AFFECTING A SUPPLIER NETWORK.
  (VI) OFFER MANAGEMENT AND TECHNICAL COURSES TO MEMBERS OF  A  SUPPLIER
NETWORK GROUP.
  (VII) CONDUCT JOB TRAINING FOR SUPPLIER NETWORK GROUP MEMBERS.
  (VIII)  PROVIDE  EXPORT  INFORMATION, ASSISTANCE AND REPRESENTATION AT
TRADE SHOWS.
  (IX) ACT AS PACKAGERS,  WHERE  APPROPRIATE,  OF  GROUP  INSURANCE  FOR
SUPPLIER NETWORK GROUP MEMBERS.
  (E)  WHERE APPROPRIATE, AND IN COOPERATION WITH THE OFFICE OF SCIENCE,
TECHNOLOGY AND ACADEMIC RESEARCH, ASSIST AND SUPPORT  SUPPLIER  NETWORKS
IN  ACCESSING  MANUFACTURING  TECHNOLOGY  SERVICE  AND  OUTREACH CENTERS
CREATED PURSUANT TO THE  FEDERAL  DEFENSE  CONVERSION  REINVESTMENT  AND
TRANSITION  ASSISTANCE  ACT  OF 1992 (P.L. 102-484) AND OTHER SOURCES OF
STATE AND LOCAL MODERNIZATION ASSISTANCE.
  (F) GRADUALLY REDUCE ASSISTANCE TO  SUPPLIER  NETWORKS  OVER  TIME  TO
ALLOW INDUSTRY GROUPS TO BECOME USER-FUNDED AND SELF-SUPPORTING.

S. 4103                             6

  2.  DESIGNATION OF SUPPLIER NETWORKS. (A) THE STRATEGIC INDUSTRY GROUP
AND SUPPLIER NETWORK ADVISORY PANEL ESTABLISHED PURSUANT TO SECTION  ONE
HUNDRED NINETY-TWO-B OF THIS ARTICLE SHALL:
  (I)  ASSIST  THE COMMISSIONER IN DEVELOPING CRITERIA FOR DESIGNATING A
SUPPLIER NETWORK, SUCH CRITERIA TO BE PUBLISHED BY THE COMMISSIONER.
  (II) USE SUCH CRITERIA TO PERIODICALLY REVIEW THE CONDITION  OF  MANU-
FACTURING  INDUSTRIES  IN  THE  STATE  AND RECOMMEND TO THE COMMISSIONER
GROUPS OF MANUFACTURING FIRMS FOR DESIGNATION AS SUPPLIER NETWORKS.
  (III) ASSIST A SUPPLIER NETWORK DESIGNATED BY THE COMMISSIONER  PURSU-
ANT  TO  PARAGRAPH  (B) OF THIS SUBDIVISION TO DEVELOP A COMPACT BETWEEN
ITS MEMBER INDUSTRIES AND AMONG ITS  MEMBER  INDUSTRIES  AND  THE  STATE
SETTING  FORTH AN AGREEMENT OF COOPERATION CONSISTENT WITH THE APPROPRI-
ATE AND RELEVANT ELEMENTS  OF  COOPERATION  SET  FORTH  IN  SECTION  ONE
HUNDRED  NINETY-TWO-A  OF THIS ARTICLE AND THIS SECTION, SUCH COMPACT TO
BE SIGNED BY THE MEMBER INDUSTRIES OF A SUPPLIER NETWORK, THE  GOVERNOR,
THE TEMPORARY PRESIDENT OF THE SENATE, AND THE SPEAKER OF THE ASSEMBLY.
  (B)  THE  COMMISSIONER SHALL, FROM AMONG THE GROUPS RECOMMENDED BY THE
ADVISORY PANEL FOR DESIGNATION AS SUPPLIER NETWORKS, DESIGNATE  SUPPLIER
NETWORKS,  SUCH  DESIGNATION TO BE FINAL UPON THE SIGNING OF THE COMPACT
AS SET FORTH IN PARAGRAPH (A) OF THIS SUBDIVISION.
  (C) NO DESIGNATION OF A GROUP OF  MANUFACTURING  OR  OTHER  PRODUCTION
FIRMS  AS  A  SUPPLIER NETWORK SHALL BE MADE FOR A PERIOD OF LONGER THAN
THREE YEARS FROM TIME OF DESIGNATION; PROVIDED, HOWEVER, THAT THE  ADVI-
SORY  PANEL  SHALL  BE ABLE TO RECOMMEND THAT A GROUP OF FIRMS SHOULD BE
REDESIGNATED UNDER THE PROCESS SET FORTH IN THIS  SUBDIVISION,  AND  THE
COMMISSIONER MAY REDESIGNATE SUCH A GROUP AS A SUPPLIER NETWORK.
  3.  INDUSTRIES  DESIGNATED  OR REDESIGNATED AS SUPPLIER NETWORKS SHALL
HAVE PREFERENCE FOR ASSISTANCE UNDER THE STRATEGIC NETWORK  PARTNERSHIPS
PROGRAM SET FORTH IN SECTION ONE HUNDRED NINETY-TWO-A OF THIS ARTICLE.
  4.  THE  DEPARTMENT SHALL MONITOR AND PERIODICALLY REVIEW THE PERFORM-
ANCE OF SUPPLIER NETWORKS TO DETERMINE WHETHER OR NOT CONTINUED  PREFER-
ENCE  UNDER  SUBDIVISION  TWO  OF THIS SECTION IS WARRANTED ACCORDING TO
CRITERIA DEVELOPED BY THE  DEPARTMENT,  SUCH  CRITERIA  TO  INCLUDE  THE
EXTENT  TO WHICH THE SUPPLIER NETWORK HAS UNDERTAKEN THE SELF-HELP MEAS-
URES, THE FINANCIAL CONTRIBUTIONS TO THE PROGRAM BY THE INVOLVED  FIRMS,
PROGRESS  TOWARD  SELF-SUFFICIENCY,  AND  THE JOB RETENTION AND CREATION
EFFECTS OF THE PROGRAM AT ANY TIME THAT IT DETERMINES THAT THE  PERFORM-
ANCE  OF A SUPPLIER NETWORK IS NOT SATISFACTORY ACCORDING TO SUCH CRITE-
RIA.
  S 3. The opening paragraph  of  paragraph  (e)  of  subdivision  7  of
section  16-d of section 1 of chapter 174 of the laws of 1968 constitut-
ing the New York state urban development corporation act,  as  added  by
chapter 169 of the laws of 1994, is amended to read as follows:
  Not-for-profit corporations, business improvement districts and commu-
nity  development  organizations,  INCLUDING  ASSOCIATIONS  REPRESENTING
STRATEGIC NETWORK PARTNERSHIPS DESIGNATED PURSUANT TO SECTIONS 192-B AND
192-C OF THE ECONOMIC DEVELOPMENT LAW, WHICH MAY APPLY FOR UP  TO  FIFTY
PERCENT  OF  PROJECT  COSTS,  PARAGRAPH (B) OF THIS SUBDIVISION NOTWITH-
STANDING, shall be eligible to apply for support under this  subdivision
to  operate  a  program or programs of business and economic development
services to stabilize, retain or revitalize existing businesses, and  to
assist  small and new businesses, including, but not limited to, assist-
ance to individual businesses or business sectors in such project  areas
as:
  S 4. The opening paragraph of subdivision 1 of section 16-m of section
1  of  chapter  174  of the laws of 1968 constituting the New York state

S. 4103                             7

urban development corporation act, as added by section 1 of  part  N  of
chapter 84 of the laws of 2002, is amended to read as follows:
  The  empire  state  economic  development  fund is hereby created. The
corporation is authorized, within available appropriations,  to  provide
financial,  technical  or  other  assistance from such fund TO QUALIFIED
BUSINESSES AND OTHER ENTITIES, INCLUDING ASSOCIATIONS REPRESENTING STRA-
TEGIC NETWORK PARTNERSHIPS DESIGNATED PURSUANT  TO  SECTIONS  192-B  AND
192-C OF THE ECONOMIC DEVELOPMENT LAW for the following:
  S  5. Subdivision 1 of section 16-j of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration act, as amended by chapter 624 of the laws of 1999, is amended to
read as follows:
  1.  Program created.  Pursuant to this section and article 24-A of the
labor law there is hereby established within  the  corporation  and  the
department  of  labor  a strategic training alliance program to identify
and address employer demands for skilled workers.  The  corporation  and
the  department  of  labor may cooperate with the department of economic
development, the state university of New York, the  city  university  of
New York, and the state education department, in providing support with-
in  amounts  available  for  the  program  for training activities by an
eligible applicant which is defined as an employer  or  an  employer  in
conjunction  with  a labor organization, a strategic alliance or network
or association of employers with common problems or concerns,  INCLUDING
ASSOCIATIONS  REPRESENTING  STRATEGIC  NETWORK  PARTNERSHIPS  DESIGNATED
PURSUANT TO SECTIONS 192-B AND 192-C OF THE ECONOMIC DEVELOPMENT LAW,  a
private  industry council established pursuant to the federal job train-
ing partnership act (P.L. 97-300) or one or more local workforce invest-
ment boards established pursuant to the federal workforce investment act
(P.L. 105-300) representing a strategic alliance.
  S 6. This act shall take effect immediately; provided,  however,  that
the  amendments to subdivision 1 of section 16-m of section 1 of chapter
174 of the laws of 1968 constituting the New York state  urban  develop-
ment  corporation  act made by section four of this act shall not affect
the expiration of such section and shall be deemed to expire therewith.