Bill Text: NY S05186 | 2017-2018 | General Assembly | Introduced


Bill Title: Establishes the Made by New Yorkers fund to provide grants to certain small and medium businesses in the state that are seeking to expand; authorizes the department of state to establish a "Made by New Yorkers" labeling program for products predominantly made in this state.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2018-03-06 - REPORTED AND COMMITTED TO FINANCE [S05186 Detail]

Download: New_York-2017-S05186-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          5186
                               2017-2018 Regular Sessions
                    IN SENATE
                                     March 10, 2017
                                       ___________
        Introduced  by Sen. CARLUCCI -- read twice and ordered printed, and when
          printed to be committed to the Committee on Consumer Protection
        AN ACT to amend the general business law and the New  York  state  urban
          development  corporation act, in relation to establishing the "Made by
          New Yorkers" program
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new article
     2  29-JJ to read as follows:
     3                                ARTICLE 29-JJ
     4                             MADE BY NEW YORKERS
     5  Section 613.   Definitions.
     6          613-a."Made by New Yorkers"; labeling.
     7          613-b. Requirements.
     8          613-c. Issuance of the label.
     9          613-d. Application for registration.
    10          613-e. Filing of applications.
    11          613-f. Fees.
    12          613-g. Administration and enforcement.
    13          613-h. Suspension and revocation of registrations.
    14          613-i. Renewal.
    15          613-j. Reporting.
    16          613-k. Rules and regulations.
    17    § 613. Definitions. As used in this article, the following terms shall
    18  have the following meanings:
    19    1.  "Applicant"  shall  mean  the  person  filing an application, or a
    20  member of the firm or an  officer  of  the  corporation  or  association
    21  applying for registration for use of the "Made by New Yorkers" label.
    22    2. "Department" shall mean the department of state.
    23    3.  "Products or goods" shall include any recognizable goods, merchan-
    24  dise, wares, or tangible or intangible products of any kind.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10610-02-7

        S. 5186                             2
     1    4. "Secretary" shall mean the secretary of state.
     2    § 613-a. "Made by New Yorkers"; labeling. The department is authorized
     3  to  establish  and  implement a made by New Yorkers labeling program for
     4  all products or goods made in accordance with the requirements  of  this
     5  article.  The  department  may  consult  with the department of economic
     6  development in the implementation of this article.
     7    § 613-b. Requirements. 1. Any products or goods made in this state  in
     8  accordance  to this article shall be eligible to be labeled with a "Made
     9  by New Yorkers" label if:
    10    a. the product or good is substantially made by a business located  in
    11  the state; and
    12    b.  the finished product or good could lawfully use a "Made in U.S.A."
    13  or "Made in America" label.
    14    2. For purposes of this section, "substantially made" means completing
    15  an act that adds at least fifty-one percent of a final product's  whole-
    16  sale  value  by  manufacture,  assembly  or production to create a final
    17  recognizable product. "Substantially made" does not include the  act  of
    18  packaging the product.
    19    §  613-c.  Issuance of the label. In accordance with the provisions of
    20  this article, the  department  shall  consult  with  the  department  of
    21  economic  development  in  the  design  and issuance of the "Made by New
    22  Yorkers" label.
    23    § 613-d. Application for registration.  The department  shall  require
    24  each  business  that  chooses  to participate in the program to register
    25  with the department for use of the  "Made  by  New  Yorkers"  label.  An
    26  applicant for registration for use of the label shall submit an applica-
    27  tion  to the secretary in such form as shall be prescribed by the secre-
    28  tary. An application  for  registration  for  use  of  the  label  shall
    29  include:
    30    1.  the  name  and  business  address  of the person applying for such
    31  registration;
    32    2. a description of each product or good being sold in connection with
    33  the label; and
    34    3. a statement by the applicant that their products or goods are  made
    35  in accordance with this article.
    36    The  application  shall be signed and verified by oath, affirmation or
    37  declaration subject to the penalties of perjury by the applicant.
    38    § 613-e. Filing of applications. 1. Upon the filing of an  application
    39  for  registration  for use of the label, the secretary shall examine the
    40  application for conformity with this article.
    41    2. The applicant shall provide any  additional  pertinent  information
    42  requested by the secretary.
    43    3.   The department shall, before making a final determination to deny
    44  a business an application for registration for use of the "Made  by  New
    45  Yorkers"  label, notify the applicant in writing of the reasons for such
    46  denial and shall afford the applicant an  opportunity  to  be  heard  in
    47  person  or  by  counsel  prior  to  the  denial of the application. Such
    48  notification shall be delivered or mailed to the applicant.  If a  hear-
    49  ing  is  requested, such hearing shall be held at such time and place as
    50  the secretary shall prescribe. If the applicant fails to make a  written
    51  request for a hearing within thirty days after receipt of such notifica-
    52  tion,  then the notification shall become the final determination of the
    53  secretary.   If, after hearing,  the  registration  is  denied,  written
    54  notice of such denial shall be delivered or mailed to the applicant.

        S. 5186                             3
     1    §  613-f.  Fees.  The application for registration or renewal shall be
     2  accompanied by a filing fee of one hundred dollars payable to the secre-
     3  tary.
     4    §  613-g. Administration and enforcement. The secretary shall have the
     5  power to enforce the provisions of this article, and upon  complaint  of
     6  any  person,  or  on  his  or  her  own  initiative,  to investigate any
     7  violation thereof or to investigate a business if in the opinion of  the
     8  secretary such investigation is warranted. Each such applicant or regis-
     9  tered  business shall be obliged, on request of the secretary, to supply
    10  such information, books, papers or records as may be required concerning
    11  his, her, their or its business. Failure to comply with a lawful request
    12  of the secretary shall be a ground for denying an application for regis-
    13  tration, or for revoking, suspending or denial of renewal of a registra-
    14  tion for use of the label under this article.
    15    § 613-h. Suspension and revocation  of  registrations.  The  secretary
    16  shall  have  the power to revoke or suspend any registration or deny any
    17  registration upon proof:
    18    1. that the applicant or registrant has violated any of the provisions
    19  of this article or the rules and regulations promulgated pursuant there-
    20  to;
    21    2. that the applicant or registrant has  practiced  fraud,  deceit  or
    22  misrepresentation; or
    23    3. that the applicant or registrant has made a materially false state-
    24  ment in their application for registration.
    25    §  613-i.  Renewal.  The  registration  for  use of the label shall be
    26  effective for a term of three years from the date of  registration  and,
    27  upon application filed within six months prior to the expiration of such
    28  term,  in a manner complying with the requirements of the secretary, the
    29  registration may be renewed for a like term from the end of the expiring
    30  term.  The department shall require between the time of registration and
    31  renewal that the registrant submit a sworn statement on an annual  basis
    32  that their products or goods are made in accordance with this article.
    33    §  613-j.  Reporting.  The  department  shall  submit an annual report
    34  regarding its expenditures, to the governor, temporary president of  the
    35  senate, speaker of the assembly and appropriate committees of the legis-
    36  lature.
    37    §  613-k.  Rules and regulations. The department shall promulgate such
    38  rules and regulations as shall be necessary to implement the  provisions
    39  of this article.
    40    §  2.  Section 1 of chapter 174  of the laws of 1968, constituting the
    41  New York state urban development corporation act, is amended by adding a
    42  new section 16-aa to read as follows:
    43    § 16-aa. Made by New Yorkers fund.  1. The Made by New Yorkers fund is
    44  hereby created. The purpose of the Made by New Yorkers fund is  to  make
    45  grants to eligible applicants, to support businesses in their growth and
    46  expansion  efforts,  and  to encourage the growth of New York businesses
    47  and products both within and outside the state.
    48    2. The corporation is authorized, within available appropriations,  to
    49  award  grants  of  no  less  than  fifty  thousand dollars and up to one
    50  hundred fifty thousand dollars to  established  small  or  medium  sized
    51  businesses,  for  the  purpose  of  encouraging the growth and expansion
    52  efforts of small or  medium  sized  businesses.  Such  grants  shall  be
    53  awarded on a competitive basis.
    54    3. For the purposes of this section:
    55    (a)  "expansion"  shall include growth of a business' operation within
    56  the state or expansion of a business' sales inside or outside the state.

        S. 5186                             4
     1    (b) "small or medium sized  business"  shall  mean  a  business  which
     2  employs  five hundred or fewer employees within the state on a full-time
     3  basis.
     4    4. Grants awarded by the corporation pursuant to this section shall be
     5  subject to the following:
     6    (a)  grants shall not be less than fifty thousand dollars per year and
     7  shall not exceed one hundred fifty thousand dollars per year; and
     8    (b) the corporation shall enter into no more than one grant  per  year
     9  per applicant under this subdivision.
    10    5. Grants shall be awarded for projects dedicated to growth and expan-
    11  sion  efforts  taken  by  a business. Growth and expansion efforts shall
    12  include, but not be limited to, projects that:
    13    (a) assist established  businesses  in  their  growth  through  market
    14  diversification and expansion;
    15    (b) increase a business' adoption of new technologies; or
    16    (c)  increase  a  business'  capacity  to  participate in national and
    17  international markets.
    18    6. The corporation shall establish a competitive process for the eval-
    19  uation of applicants for the Made by New  Yorkers  fund.  When  awarding
    20  funds pursuant to this section, the corporation shall ensure that appli-
    21  cants  meet  the criteria and requirements determined by the corporation
    22  pursuant to this section.
    23    7. Recipients shall be required to report the status of funds received
    24  pursuant to this section to the corporation on a  biannual  basis  until
    25  such project is completed. Failure to comply with reporting criteria, or
    26  any  other  criteria set forth by the corporation, may result in suspen-
    27  sion of all future payments.
    28    8. The corporation shall:
    29    (a) monitor the performance of each recipient of  a  grant  under  the
    30  provisions  of  this section to ensure monies are used only for expenses
    31  related to the approved project; and
    32    (b) on or before April first, two thousand eighteen and annually ther-
    33  eafter, submit to the governor, the temporary president of  the  senate,
    34  the  speaker of the assembly, and the chairpersons of the senate finance
    35  committee and the assembly ways and means  committee  a  report  on  the
    36  investments  and  accomplishments  of the Made by New Yorkers fund. Such
    37  report shall include for each grant awarded, the name  and  location  of
    38  the  recipient,  the  amount  awarded,  a  description  of the expansion
    39  project, the number of jobs created or retained through the  grant  fund
    40  monies,  a  description  of  any funds that were not disbursed, and such
    41  other information as the corporation may deem appropriate.
    42    § 3. The New  York  state  urban  development  corporation  is  hereby
    43  authorized  to promulgate such rules and regulations, in accordance with
    44  the state administrative procedure act, as are necessary to fulfill  the
    45  purposes of section two of this act.
    46    §  4.  This act shall take effect immediately, except that section one
    47  of this act shall take effect on the one hundred eightieth day after  it
    48  shall  have become a law; provided, however, that effective immediately,
    49  the addition, amendment and/or repeal of any rule or  regulation  neces-
    50  sary  for the implementation of section one of this act on its effective
    51  date are authorized and directed to be made and completed on  or  before
    52  the effective date of such section.
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