S T A T E O F N E W Y O R K
________________________________________________________________________
1764
2009-2010 Regular Sessions
I N A S S E M B L Y
January 12, 2009
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Introduced by M. of A. MORELLE, SCHIMMINGER, GALEF -- Multi-Sponsored by
-- M. of A. MAGEE -- read once and referred to the Committee on
Economic Development, Job Creation, Commerce and Industry
AN ACT to amend the economic development law and the public authorities
law, in relation to authorizing the department of economic development
and the job development authority to provide pre-exporting assistance
to firms seeking to export from New York
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subdivision 47 of section 100 of the economic development
law, as renumbered by chapter 427 of the laws of 2008, is renumbered
subdivision 48 and a new subdivision 47 is added to read as follows:
47. THE COMMISSIONER SHALL ASSIST THE JOB DEVELOPMENT AUTHORITY IN THE
IDENTIFICATION OF MANUFACTURERS ELIGIBLE FOR ASSISTANCE THROUGH THE
EXPORT TRADE REVOLVING LOAN FUND AND SHALL PROVIDE TECHNICAL ASSISTANCE
TO SUCH MANUFACTURERS AS MAY BE REQUIRED BY THEM IN ORDER TO ASSIST THEM
TO BE MORE EFFECTIVE IN THE AREA OF INTERNATIONAL SALES WHENEVER POSSI-
BLE.
S 2. Subdivision 14 of section 1801 of the public authorities law, as
amended by chapter 788 of the laws of 1983, is amended to read as
follows:
14. "Project" shall mean (i) the construction of a new industrial or
manufacturing plant, a new research and development building or other
new eligible business facility, (ii) the acquisition, rehabilitation or
improvement of a former or existing industrial or manufacturing plant,
of a former or existing building to be used for research and develop-
ment, of a former or existing other eligible business facility, (iii)
the construction, acquisition, rehabilitation or improvement of
pollution control facilities, (iv) the purchase of machinery and equip-
ment, for which financial assistance from the authority is sought, [or]
(v) assistance to employees under an employee ownership assistance loan
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04137-01-9
A. 1764 2
agreement made pursuant to subtitle six of this title, OR (VI) FINANCIAL
ASSISTANCE FOR EXPORT TRADE PURPOSES PURSUANT TO SUBTITLE FIVE-B OF THIS
TITLE; provided, however, that any such plant, building, facility or
machinery and equipment therefore shall not be primarily used in making
retail sales of goods or services to customers who personally visit such
facilities to obtain such goods or services, or used primarily as a
hotel, apartment house or other place of business which furnishes dwell-
ing space or accommodations to either residents or transients.
S 3. Title 8 of article 8 of the public authorities law is amended by
adding a new subtitle 5-B to read as follows:
SUBTITLE V-B
EXPORT TRADE REVOLVING LOAN FUND
SECTION 1835-AA. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE.
1835-BB. DEFINITIONS.
1835-CC. ADDITIONAL POWERS OF THE AUTHORITY.
1835-DD. REPAYMENT OF LOANS.
1835-EE. RULES AND REGULATIONS OF THE AUTHORITY.
S 1835-AA. STATEMENT OF LEGISLATIVE FINDINGS AND PURPOSE. THE LEGISLA-
TURE HEREBY FINDS AND DECLARES THAT SMALL AND MEDIUM-SIZED COMPANIES
HAVE SOUGHT TO INCREASE THEIR SALES AND EMPLOYMENT BY ENTERING THE WORLD
MARKET IN THAT THEY ARE DESIROUS OF MAKING INTERNATIONAL SALES. HOWEVER,
SUCH BUSINESS TRANSACTIONS ARE SUBSTANTIALLY MORE COMPLEX THAN A NORMAL
DOMESTIC SALES RELATIONSHIP FAMILIAR TO THE UNITED STATES BUSINESS
COMMUNITY. FURTHER, THE INTERNATIONAL SALE REQUIRES A GREAT DEAL OF
DOCUMENTATION, KNOWLEDGE OF FOREIGN MARKETS, HIGH RISK RELATIVE TO A
DOMESTIC SALE, SPECIAL FREIGHT FORWARDING TRANSACTION, AND MOST IMPOR-
TANTLY, SPECIAL FINANCING.
THE LEGISLATURE FURTHER FINDS AND DECLARES THAT SMALL AND MEDIUM-SIZED
MANUFACTURERS REQUIRE SHORT-TERM FINANCING WHICH IS CURRENTLY NOT AVAIL-
ABLE THROUGHOUT THE STATE OF NEW YORK FOR ACTIVITIES THAT MUST BE
COMPLETED PRIOR TO THE FOREIGN SALE OF GOODS KNOWN AS PRE-EXPORT ACTIV-
ITIES. THEREFORE, TO HELP BUSINESS IN THIS STATE TO BETTER EXPORT ITS
PRODUCTS, THE LEGISLATURE DESIRES THAT THE JOB DEVELOPMENT AUTHORITY
PROVIDE LOANS TO SMALL AND MEDIUM-SIZED COMPANIES THROUGH APPROPRIATE
AND EFFICIENT METHODS SO THAT MORE BUSINESSES IN THE STATE OF NEW YORK
MAY ENTER THE INTERNATIONAL SALES MARKETPLACE.
S 1835-BB. DEFINITIONS. AS USED IN THIS SUBTITLE:
1. "AGREEMENT" MEANS AN EXPORT TRADE LOAN AGREEMENT MADE PURSUANT TO
THIS SUBTITLE.
2. "AUTHORITY" MEANS THE JOB DEVELOPMENT AUTHORITY CREATED BY SECTION
EIGHTEEN HUNDRED TWO OF THIS TITLE.
3. "EXPORT TRADING ENTITY" MEANS A PERSON, FIRM, PARTNERSHIP, CORPO-
RATION OR OTHER ENTITY, PRINCIPALLY DOING BUSINESS IN THE STATE OF NEW
YORK, WITH FEWER THAN ONE HUNDRED EMPLOYEES, ENGAGED IN OR SEEKING TO
ENGAGE IN AN ELIGIBLE PROJECT.
4. "ELIGIBLE PROJECT" MEANS PRE-EXPORT ACTIVITIES CONDUCTED BY AN
EXPORT TRADING ENTITY, ENGAGED IN ACTIVITIES INVOLVING THE EXPORT OF
GOODS AND SERVICES, INCLUDING BUT NOT LIMITED TO MARKET SURVEYS,
RESEARCH, PRODUCT SOURCING, MARKETING, ADVERTISING, BONDING, INSURING,
WAREHOUSING, SHIPPING, STORAGE, DOCUMENTATION, EXPORT MARKET DEVELOP-
MENT, EXPERT ADVICE AND TRADE SHOWS.
5. "BORROWER" MEANS ANY ENTITY WHICH RECEIVES A LOAN UNDER THIS SUBTI-
TLE TO PARTICIPATE IN AN ELIGIBLE PROJECT.
6. "PROJECT COST" INCLUDES ALL REASONABLE AND NECESSARY COSTS TO BE
INCURRED WHILE COMPLETING AN ELIGIBLE PROJECT, INCLUDING LEGAL, FINAN-
CIAL, INSURANCE AND EXPORT TRADING SERVICES.
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S 1835-CC. ADDITIONAL POWERS OF THE AUTHORITY. THE AUTHORITY SHALL
HAVE THE POWER AND DUTY TO:
1. ASSIST AND COUNSEL EXPORT TRADING ENTITIES IN THEIR DEALINGS WITH
FEDERAL, STATE AND LOCAL GOVERNMENTS, INCLUDING BUT NOT LIMITED TO
PROVIDING ACCESS TO INFORMATION REGARDING GOVERNMENT REQUIREMENTS
AFFECTING EXPORT TRADING ACTIVITIES.
2. PRESCRIBE STANDARDS AND CRITERIA FOR THE GRANTING OF APPLICATIONS
FOR LOANS TO EXPORT TRADING ENTITIES AND FOR THE MAKING OF LOANS FOR
ELIGIBLE PROJECTS. SUCH STANDARDS AND CRITERIA SHALL IMPLEMENT THE
LEGISLATIVE FINDINGS AND PURPOSE SET FORTH IN THIS SUBTITLE. IN DEVELOP-
ING SUCH STANDARDS AND CRITERIA, THE AUTHORITY SHALL CONSULT WITH THE
SUPERINTENDENT OF BANKS, THE SUPERINTENDENT OF INSURANCE AND THE COMMIS-
SIONER OF ECONOMIC DEVELOPMENT REGARDING STANDARDS AND CRITERIA FOR THE
MAKING OF LOANS FOR AN ELIGIBLE PROJECT; TO PLAN, DEVELOP AND UNDERTAKE
A PROGRAM WHEREIN SUCH LOANS FOR ELIGIBLE PROJECTS CAN BE DISBURSED TO
THE GENERAL BUSINESS COMMUNITY OF THE STATE OF NEW YORK FOR ELIGIBLE
PROJECTS.
3. MAKE AND EXECUTE CONTRACTS FOR THE ADMINISTRATION OR SERVICING OF
ANY LOAN MADE BY THE AUTHORITY IN FURTHERANCE OF THIS SUBTITLE AND TO
PAY THE REASONABLE VALUES OF SUCH SERVICES RENDERED TO THE AUTHORITY
PURSUANT TO SUCH CONTRACT.
4. ACCESS FUNDS FOR THE PROMOTION OF THIS ACTIVITY AS DEFINED IN THIS
SUBTITLE AND TO DO ALL THINGS REASONABLE TO DEVELOP A VIABLE POOL OF
FUNDS TO CARRY OUT THE LEGISLATIVE INTENT OF THIS SUBTITLE TO INCLUDE
SEEKING OUT AND SECURING MONIES FROM THE SMALL BUSINESS ADMINISTRATION,
EXPORT-IMPORT BANK OF THE UNITED STATES, ECONOMIC DEVELOPMENT ADMINIS-
TRATION, AGENCY FOR INTERNATIONAL DEVELOPMENT, THE DEPARTMENT OF HOUSING
AND URBAN DEVELOPMENT OR OTHER FEDERAL AGENCIES.
5. DO ANY AND ALL THINGS NECESSARY OR CONVENIENT TO CARRY OUT THIS
CORPORATE PURPOSE AND EXERCISE THE POWERS GIVEN AND GRANTED IN THIS
SUBTITLE.
6. NOTWITHSTANDING ANY OF THE PROVISIONS OF THIS SUBTITLE, THE BORROW-
ER MAY ONLY USE FUNDS MADE AVAILABLE BY THE AUTHORITY THROUGH LOANS FOR
ELIGIBLE PROJECTS. SPECIFICALLY, THE AUTHORITY SHALL NOT FINANCE THE
SALE OF PRODUCTS OR SERVICES BEING EXPORTED AS PART OF AN EXPORT SALE
FROM THE UNITED STATES.
S 1835-DD. REPAYMENT OF LOANS. 1. THE ENTIRE AMOUNT LOANED SHALL BE
REPAID BY THE BORROWER TO THE AUTHORITY IN A TERM NOT LONGER THAN ONE
YEAR.
2. INTEREST SHALL ACCRUE ON THE UNPAID BALANCE THROUGHOUT THE LIFETIME
OF THE LOAN AT A RATE TO BE DETERMINED BY THE JOB DEVELOPMENT AUTHORITY.
S 1835-EE. RULES AND REGULATIONS OF THE AUTHORITY. 1. THE AUTHORITY
SHALL MAKE, PROMULGATE AND ENFORCE SUCH REASONABLE RULES AND REGULATIONS
RELATING TO ITS DUTIES UNDER THIS SUBTITLE AS IT MAY DEEM APPROPRIATE.
2. TO EFFECTUATE THE PURPOSE OF THIS SUBTITLE, THE AUTHORITY MAY
REQUEST FROM ANY AUTHORITY, DIVISION, BOARD, BUREAU, COMMISSION OR ANY
OTHER AGENCY OF THE STATE OR FROM ANY PUBLIC CORPORATION, AND THE SAME
ARE AUTHORIZED TO PROVIDE SUCH SERVICES, ASSISTANCE AND DATA AS WILL
ENABLE THE AUTHORITY TO PROPERLY CARRY OUT ITS FUNCTIONS, POWERS AND
DUTIES UNDER THIS SUBTITLE.
S 4. 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 to be made on or before such effective date.