senate Bill S6940

2013-2014 Legislative Session

Establishes the GrowNY pilot program, an economic gardening pilot program within the department of economic development

download bill text pdf

Sponsored By

Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

do you support this bill?

Actions

view actions (2)
Assembly Actions - Lowercase
Senate Actions - UPPERCASE
May 28, 2014 reported and committed to finance
Apr 04, 2014 referred to commerce, economic development and small business

Votes

view votes

May 28, 2014 - Commerce, Economic Development and Small Business committee Vote

S6940
11
0
committee
11
Aye
0
Nay
1
Aye with Reservations
0
Absent
0
Excused
0
Abstained
show Commerce, Economic Development and Small Business committee vote details

Commerce, Economic Development and Small Business Committee Vote: May 28, 2014

aye wr (1)

S6940 - Bill Details

See Assembly Version of this Bill:
A1567A
Current Committee:
Law Section:
Economic Development Law
Laws Affected:
Add Art 22 ยง450, Ec Dev L

S6940 - Bill Texts

view summary

Establishes the GrowNY pilot program, an economic gardening pilot program within the department of economic development to stimulate investment in the state economy by providing technical assistance for expanding businesses in the state.

view sponsor memo
BILL NUMBER:S6940

TITLE OF BILL: An act to amend the economic development law, in
relation to establishing an economic gardening pilot program within
the department of economic development

PURPOSE:

The purpose of this economic gardening pilot program is to stimulate
investment in New York's economy by providing technical assistance for
expanding businesses in the State.

SUMMARY OF PROVISIONS:

Section 1: Creates an economic gardening pilot program known as
"GrowNY". Directs the department to promulgate all necessary rules and
regulations to implement the GrowNY program.

The department shall contract with regional non-profit economic
development entities to administer the program. The department shall
award competitive grants up to $500,000 a year, for a period of up to
5 years to such entities to implement the program.

A participating economic development non-profit entity administering
the pilot program shall provide technical assistance for eligible
businesses, which includes, but is not limited to:

*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
optimization.

*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.

*Assistance in developing a listing of shovel ready sites currently
available to the needs of the business.

* Assistance in understanding NYS laws and regulations applicable to
such business.

* Any other form of consultation and technical assistance that may be
provided to the eligible business to assist with its business and
marketing needs.

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 5 persons, but not more than 99
persons, has maintained its principal place of business in the State
for at least the previous 2 years and generates at least $750,000, but
not more than $50 million, in annual revenue.


This bill establishes reporting requirements for the contracted
entities to show the impact of the program on NYS businesses.

Section 2: Effective date.

JUSTIFICATION:

Economic gardening is a long-term entrepreneurial strategy designed to
generate new jobs from the existing base of businesses in the
community. According to the Edward Lowe Foundation, the target
businesses with the largest potential for job growth are second-stage
companies. Second-stage companies are those that have grown past the
startup stage but have not grown to maturity and typically have
between 10-99 employees. According to YourEconomy.org, between 1993
and 2008 second-stage companies only represented 10.9% of U.S. based
businesses but represented 35.7% of jobs and 24.8% of positive job
growth.

Economic gardening was pioneered by Chris Gibbons in 1989 in the city
of Littleton, Colorado, a community that in the ensuing 15 years saw a
136% increase in new jobs. While it was introduced as a demonstration
program to deal with the sudden erosion of economic conditions
following the relocation of the largest employer in the city at that
time, it has emerged as a prototype for a rapidly expanding movement
to generate sustainable economic growth for communities, regions, and
states.

LEGISLATIVE HISTORY:

A.9603 (2011-12)

FISCAL IMPLICATIONS:

It is estimated that the GrowNY program would cost $10 million
annually to support regional economic gardening pilot programs.

EFFECTIVE DATE:

This act shall take effect immediately.

view full text
download pdf
                    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.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.