S T A T E O F N E W Y O R K
________________________________________________________________________
6749
2013-2014 Regular Sessions
I N A S S E M B L Y
April 17, 2013
___________
Introduced by M. of A. BARRON -- read once and referred to the Committee
on Small Business
AN ACT to amend the New York state urban development corporation act, in
relation to creating niche market assistance projects to promote
economic development
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Statement of legislative intent. Small manufacturing enter-
prises are responsible for an estimated twenty-eight to forty percent of
employment in the manufacturing sector. They tend to be more effective
at job creation and job replacement, more innovative in the development
of products and process improvements, more flexible, and thus more
competitive, in terms of the ability to produce small quantities. All of
these factors help to explain the shift to smaller and average sized
plants and the national trend toward more of the total production of
goods coming from small manufacturers.
Small manufacturing enterprises, often owned by minorities and new
immigrants, have been growing. Leading this expansion in New York are
specialty and ethnic food manufacturers, which have grown by more than
eight percent over the past year. Other evidence suggests that there is
similar growth in construction; specialty apparel for niche markets and
other design-based manufacturing industries such as luxury consumer
goods like jewelry; medical instruments; suppliers to service indus-
tries; and companies serving local markets, such as makers of food
products or suppliers of construction materials.
Often, small manufacturers can not only survive, but grow, if they can
identify and develop niche markets - targeted markets composed of indi-
viduals and businesses that have similar interests and needs, which can
be readily identified, and that can be easily targeted and reached, or a
group of potential customers who share common characteristics making
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03583-01-3
A. 6749 2
them especially receptive to the company's product, service, or opportu-
nity.
S 2. Section 1 of chapter 174 of the laws of 1968, constituting the
New York state urban development corporation act, is amended by adding a
new section 16-v to read as follows:
S 16-V. NICHE MARKET ASSISTANCE PROJECTS. 1. THE CORPORATION IS HEREBY
AUTHORIZED TO PROVIDE ASSISTANCE TO NICHE MARKET ASSISTANCE PROJECTS
DESIGNED TO ENCOURAGE AND ASSIST SMALL AND MEDIUM-SIZED MANUFACTURING OR
FOOD PROCESSING BUSINESSES WITH FEWER THAN TWO HUNDRED FIFTY EMPLOYEES
TO IDENTIFY AND DEVELOP NICHE MARKETS FOR THEIR PRODUCTS.
2. FOR THE PURPOSES OF THIS SECTION, "NICHE MARKET" SHALL MEAN A
TARGETED MARKET COMPOSED OF INDIVIDUALS AND BUSINESSES THAT HAVE SIMILAR
INTERESTS AND NEEDS, WHICH CAN BE READILY IDENTIFIED AND REACHED, OR
GROUP OF POTENTIAL CUSTOMERS WHO SHARE COMMON CHARACTERISTICS MAKING
THEM ESPECIALLY RECEPTIVE TO THE COMPANY'S PRODUCT, SERVICE OR OPPORTU-
NITY.
3. THE CORPORATION SHALL ACTIVELY SEEK TO IDENTIFY ENTITIES AND
DISSEMINATE INFORMATION TO SUCH ENTITIES WHICH MAY BE ELIGIBLE TO
RECEIVE ASSISTANCE PURSUANT TO THIS SECTION AND SHALL MAKE AWARDS,
SUBJECT TO AVAILABLE APPROPRIATIONS, FOR NICHE MARKETING ASSISTANCE
PROJECTS ON A COMPETITIVE BASIS TO SUCH ENTITIES.
(A) ENTITIES ELIGIBLE TO APPLY FOR FUNDING FOR A NICHE MARKET ASSIST-
ANCE PROJECT SHALL INCLUDE NOT-FOR-PROFIT CORPORATIONS, LOCAL DEVELOP-
MENT CORPORATIONS, TRADE ASSOCIATIONS, EDUCATIONAL INSTITUTIONS, TECH-
NOLOGY DEVELOPMENT CORPORATIONS ESTABLISHED PURSUANT TO SECTION 3102-D
OF THE PUBLIC AUTHORITIES LAW WHICH OPERATE MANUFACTURING EXTENSION
PROGRAMS, AND OTHER NOT-FOR-PROFIT ORGANIZATIONS WHICH PROMOTE ECONOMIC
DEVELOPMENT.
(B) APPLICANTS SHALL BE REQUIRED TO DEMONSTRATE:
(I) THEIR ABILITY TO PROVIDE THE SERVICES PROPOSED;
(II) THE POTENTIAL FOR MANUFACTURING OR FOOD PROCESSING INDUSTRIES IN
THEIR AREA OF SERVICE TO DEVELOP NICHE MARKETS;
(III) THE POSSIBILITY THAT THE SERVICES TO BE FUNDED WOULD BECOME
SELF-SUSTAINING;
(IV) THE PARTICIPATION OF LOCAL AND REGIONAL ECONOMIC DEVELOPMENT
ORGANIZATIONS; AND
(V) TO PROVIDE A PROGRAM BUDGET, INCLUDING MATCHING FUNDS, IN-KIND AND
OTHERWISE, TO BE PROVIDED BY THE APPLICANT.
(C) A PROJECT ELIGIBLE TO BE A NICHE MARKET ASSISTANCE PROJECT MAY
INCLUDE, BUT NOT BE LIMITED TO, RESEARCH, MARKET ANALYSIS, MARKETING
ASSISTANCE, AND IDENTIFYING SOURCES OF FINANCIAL ASSISTANCE TO ENTER
INTO NEW MARKETS.
4. NO SINGLE GRANT FOR A NICHE MARKET ASSISTANCE PROJECT SHALL EXCEED
TWO HUNDRED THOUSAND DOLLARS.
S 3. This act shall take effect immediately.