S T A T E O F N E W Y O R K
2011-2012 Regular Sessions
I N S E N A T E
January 5, 2011
Introduced by Sen. ROBACH -- 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 public authorities
law, in relation to authorizing the job development authority to
create and administer the bank export incentive program with the tech-
nical assistance of 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. Legislative intent. The legislature hereby finds and
declares that the economy of the state of New York can be bolstered and
enhanced through the sale of additional products and services from New
York state to customers in foreign countries. The legislature further
finds that one of the impediments to an increase in export sales from
New York state is the unavailability of loans at a competitive interest
rate for relatively small amounts of money borrowed for time periods
between one and five years from the commercial banks of our state and
nation. It is further found that one of the major reasons that such
monies are unavailable is the high cost of processing such loans by
banking organizations because of the complexities of international tran-
sactions. The legislature, therefore, finds and declares that it is in
the interest of a stronger and more viable economy for the state of New
York to encourage the banking industry of our state to provide medium-
term financing for low dollar volume export transactions through the
creation of a bank export incentive program.
S 2. Subdivision 47 of section 100 of the economic development law,
as renumbered by chapter 427 of the laws of 2008, is renumbered subdivi-
sion 48 and a new subdivision 47 is added to read as follows:
47. MAKE POTENTIAL ELIGIBLE APPLICANTS AWARE OF, THROUGH THE USE OF
SEMINARS, WORKSHOPS, ADVERTISING OR OTHER APPROPRIATE METHODS, THE
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
S. 354 2
EXPORT FINANCE FUND AND OF ITS POTENTIAL USE TO SUCH APPLICANTS.
FURTHER, THE COMMISSIONER SHALL MAKE BANKING ORGANIZATIONS PARTICIPATING
IN THE USE OF THE EXPORT FINANCE FUND AWARE OF POTENTIAL ELIGIBLE APPLI-
CANTS AND SHALL ASSIST BOTH SUCH ELIGIBLE APPLICANTS AND BANKING ORGAN-
IZATIONS AS MAY BE REQUIRED IN ORDER TO HELP FACILITATE FURTHERANCE OF
THE SALES OF MANUFACTURED PRODUCTS TO THE INTERNATIONAL MARKETPLACE.
S 3. Section 1801 of the public authorities law is amended by adding
six new subdivisions 20, 21, 22, 23, 24 and 25 to read as follows:
20. "COMPETITIVE INTEREST RATE" SHALL MEAN A RATE OF INTEREST WHICH
MUST BE APPLIED TO A LOAN MADE TO AN ELIGIBLE APPLICANT FOR AN ELIGIBLE
PROJECT, AT A LEVEL OF INTEREST DESIGNED TO INDUCE ELIGIBLE APPLICANTS
TO RETAIN A COMPETITIVE POSITION IN THE WORLD MARKETPLACE.
21. "BANKING ORGANIZATION" SHALL MEAN (A) ANY ORGANIZATION DEFINED BY
SUBDIVISION ELEVEN OF SECTION TWO OF THE BANKING LAW, (B) ANY AGENCY OR
BRANCH OF A FOREIGN BANKING CORPORATION LICENSED BY THE BANKING DEPART-
MENT UNDER ARTICLE FIVE OF THE BANKING LAW, (C) ANY NATIONAL BANK,
FEDERAL SAVINGS AND LOAN ASSOCIATION AND FEDERAL CREDIT UNION, (D) ANY
AUTHORIZED INSURER DEFINED BY PARAGRAPH TEN OF SUBSECTION (A) OF SECTION
ONE HUNDRED SEVEN OF THE INSURANCE LAW, AND (E) ANY OTHER INSTITUTION
WITHIN THE STATE AUTHORIZED TO ORIGINATE AND SERVICE LOANS INCLUDING,
BUT NOT LIMITED TO, CREDIT UNIONS AND MORTGAGE LOAN COMPANIES.
22. "ELIGIBLE APPLICANT" SHALL MEAN A FIRM WHICH EMPLOYS LESS THAN
FIVE HUNDRED WORKERS AND WHOSE PRINCIPAL PLACE OF BUSINESS IS WITHIN THE
BORDERS OF NEW YORK STATE OR AN EXPORT TRADING COMPANY AS DEFINED IN THE
EXPORT TRADING COMPANY ACT (P.L. 97-290) PRESENTING AN ELIGIBLE PROJECT
ON BEHALF OF SUCH FIRM.
23. "ELIGIBLE PROJECT" SHALL MEAN A SALE OF A PRODUCT MANUFACTURED OR
SERVICE DELIVERED BY AN ELIGIBLE APPLICANT TO A CUSTOMER RESIDING IN AND
REPRESENTING A BUSINESS, NATURAL PERSON, OR GOVERNMENTAL ENTITY OF A
NATION OTHER THAN THE UNITED STATES OR ITS TERRITORIES, WHICH (A) IS TO
BE FINANCED FOR A PERIOD NOT LESS THAN ONE YEAR NOR MORE THAN FIVE YEARS
FROM THE POINT OF SALE, (B) IS INSURED BY THE FCIA OR THE EXPORT-IMPORT
BANK OF THE UNITED STATES.
24. "PROJECT LOAN" SHALL MEAN MONIES LENT TO AN ELIGIBLE APPLICANT FOR
AN ELIGIBLE PROJECT AT A COMPETITIVE INTEREST RATE FROM A COOPERATING
25. "EXPORT FINANCE FUND" OR "FUND" SHALL MEAN MONIES PROVIDED BY THE
AUTHORITY TO A COOPERATING BANKING ORGANIZATION OR ORGANIZATIONS IN
ORDER THAT SUCH ORGANIZATION OR ORGANIZATIONS SHALL BE ABLE TO MAKE
LOANS TO ELIGIBLE APPLICANTS FOR ELIGIBLE PROJECTS AT COMPETITIVE INTER-
EST RATES BY INVESTING SUCH FUND IN INTEREST-BEARING INVESTMENTS WHICH
THE AUTHORITY MAY AUTHORIZE.
S 4. The public authorities law is amended by adding a new section
1835-bb to read as follows:
S 1835-BB. ADDITIONAL POWERS OF THE AUTHORITY. THE AUTHORITY IS HEREBY
DIRECTED TO ESTABLISH THE NEW YORK STATE BANK EXPORT INCENTIVE PROGRAM.
1. IN ORDER TO IMPLEMENT THE PROGRAM, THE AUTHORITY MAY ENTER INTO COOP-
ERATIVE AGREEMENTS WITH ONE OR MORE BANKING ORGANIZATIONS WITHIN THE
STATE TO PROVIDE THEM WITH AN EXPORT FINANCE FUND IN ORDER THAT SUCH
COOPERATING BANKING ORGANIZATIONS MAY LEND THEIR OWN ASSETS TO ELIGIBLE
APPLICANTS FOR ELIGIBLE PROJECTS AT COMPETITIVE INTEREST RATES.
2. SUCH AGREEMENT WITH A COOPERATING BANKING ORGANIZATION SHALL
INCLUDE BUT NOT BE LIMITED TO:
(A) A REQUIREMENT THAT AN AMOUNT EQUAL TO NOT LESS THAN TWO TIMES THE
AMOUNT OF MONIES ON DEPOSIT WITH SUCH COOPERATING BANKING ORGANIZATION
MUST BE LENT TO ELIGIBLE APPLICANTS FOR ELIGIBLE PROJECTS WITHIN THE
S. 354 3
AGREED UPON TIME PERIOD FOLLOWING DEPOSIT OF SAID MONIES WITH THE BANK-
(B) THE CRITERIA AND STANDARDS WITHIN WHICH THE TERMS AND INTEREST
RATES OFFERED TO ELIGIBLE APPLICANTS FOR ELIGIBLE PROJECTS MAY BE
CONSIDERED TO BE COMPETITIVE.
(C) A REQUIREMENT THAT LOANS TO ELIGIBLE APPLICANTS BE MADE FOR NOT
LESS THAN TWENTY-FIVE THOUSAND DOLLARS NOR MORE THAN FIVE HUNDRED THOU-
3. IN ORDER TO MAKE SUCH FINANCING POSSIBLE, THE AUTHORITY SHALL
ESTABLISH CRITERIA FOR THE SELECTION OF COOPERATING BANKING ORGANIZA-
TIONS AND FOR THE AMOUNTS AND TERMS UNDER WHICH THE INVESTMENT OF THE
FUND MAY BE MADE IN SUCH BANKING ORGANIZATIONS.
4. A PROVISION STATING THAT IF THE AUTHORITY IN ITS JUDGMENT FINDS
THAT SUCH BANKING ORGANIZATION HAS NOT MET THE CONDITIONS OF THE AGREE-
MENT ENTERED INTO BETWEEN THE AUTHORITY AND SAID BANKING ORGANIZATION,
THE AUTHORITY SHALL NOTIFY THE BANKING ORGANIZATION OF THOSE ASPECTS OF
THE AGREEMENT THAT THE AUTHORITY DETERMINES ARE NOT BEING MET; AND IF
AFTER THIRTY DAYS SUBSEQUENT TO SUCH NOTIFICATION THE AUTHORITY DETER-
MINES THAT THE BANKING ORGANIZATION HAS NOT MET THE CONDITIONS OF THE
AGREEMENT, THE AUTHORITY MAY REMOVE ANY MONIES DEPOSITED WITH SUCH BANK-
ING ORGANIZATION AND MAY TERMINATE THE AGREEMENT.
5. THE AUTHORITY SHALL ALLOCATE THE MONIES APPROPRIATED FOR THE
PURPOSES OF THIS PROGRAM FOR DEPOSIT IN ONE OR MORE COOPERATING BANKING
ORGANIZATIONS LOCATED WITHIN THE STATE OF NEW YORK.
6. AT THE END OF EACH FISCAL YEAR FOLLOWING THE EFFECTIVE DATE OF THIS
SECTION, THE AUTHORITY SHALL REPORT TO THE GOVERNOR AND THE FISCAL
COMMITTEES OF THE LEGISLATURE AS TO: (A) THE NUMBER OF LOANS MADE TO
ELIGIBLE PROJECTS; (B) THE AMOUNT OF EACH LOAN AND ITS REPAYMENT TERMS
TO INCLUDE INTEREST CHARGED AND DURATION OF THE LOAN; (C) THE PRINCIPAL
PRODUCT OR SERVICES INVOLVED IN THE ELIGIBLE PROJECT; (D) THE NATION IN
WHICH THE PRODUCT OR SERVICE WAS SOLD; AND (E) THE NUMBER OF BANKING
ORGANIZATIONS PARTICIPATING IN THE PROGRAM.
S 5. This act shall take effect on the one hundred twentieth day after
it shall have become a law. Effective immediately, the addition, amend-
ment and/or repeal of any rule or regulation necessary for the implemen-
tation of the foregoing sections of this act on their effective date is
authorized and directed to be made and completed on or before such