Establishes the strategic network partnerships program to organize, integrate and coordinate state programs designed to assist manufacturing industries to become more competitive and productive; establishes the supplier network group services program for businesses supplying the same manufacturing company or a group of similar companies with products used in the manufacture or assembling of final products.
STATE OF NEW YORK
________________________________________________________________________
7087--A
2011-2012 Regular Sessions
IN ASSEMBLY
April 12, 2011
___________
Introduced by M. of A. SCHIMMINGER, SCHROEDER -- Multi-Sponsored by --
M. of A. ABBATE, AMEDORE, CLARK, COOK, GALEF, HOOPER, KOLB, MAGEE,
McENENY, ORTIZ, SWEENEY -- read once and referred to the Committee on
Economic Development -- committee discharged, bill amended, ordered
reprinted as amended and recommitted to said committee
AN ACT to amend the economic development law and the New York state
urban development corporation act, in relation to establishing a stra-
tegic network partnerships program
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 190 of the economic development law is amended by
2 adding three new subdivisions 7, 8 and 9 to read as follows:
3 7. "Strategic industry" shall mean a regional or statewide indus-
4 try group engaged in manufacturing or other production of goods or
5 services, including research and development activities, that is consid-
6 ered to be critical to the economy of the state in terms of employment,
7 and/or in which the state appears to have a comparative advantage which
8 would enable such an industry group to continue to make a significant
9 contribution to the economic health of the state or a region of the
10 state, and which is designated by the commissioner as a strategic indus-
11 try pursuant to section one hundred ninety-two-b of this article.
12 8. "Supplier network" shall mean a statewide or regional group of
13 small and medium-sized manufacturing firms or other producers of goods
14 or services, including research and development activities, in different
15 industry groups which supply the same manufacturing company or group of
16 similar manufacturing companies with products used in the manufacture,
17 production, or assembling of final products.
18 9. "Strategic alliances" shall mean an informal or formal association
19 of businesses in a strategic industry for the purpose of solving common
20 problems and engaging in cooperative activities.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD07272-02-1
A. 7087--A 2
1 § 2. The economic development law is amended by adding three new
2 sections 192-a, 192-b and l92-c to read as follows:
3 § 192-a. Strategic network partnerships program. 1. The department
4 shall enter into an agreement with the New York state urban development
5 corporation, the New York state job development authority, the state
6 university of New York, the state education department, the department
7 of labor and other state agencies to create a strategic network partner-
8 ships program which shall be coordinated by the department.
9 2. In order to effect such coordination, the commissioner shall estab-
10 lish through the strategic network partnerships program an inter-agency
11 committee composed of representatives of each of the state agencies set
12 forth in subdivision one of this section, which shall provide integrated
13 planning of state-supported industrial modernization activities, includ-
14 ing development of criteria and processes for the identification of
15 strategic industries in cooperation with the strategic industry group
16 and supplier network advisory panel established pursuant to section one
17 hundred ninety-two-b of this article.
18 3. Through the strategic network partnerships program the department
19 shall:
20 (a) Organize, integrate and coordinate state programs designed to
21 assist manufacturing industries and other producers of goods or services
22 to become more competitive and productive.
23 (b) Analyze the modernization needs of small and medium-sized manufac-
24 turers and other producers of goods or services, including selected
25 branch plants of larger firms, at both the individual firm and overall
26 industry levels, for the purpose of targeting appropriate and necessary
27 resources to improve productivity and competitiveness.
28 (c) Stimulate self-help activities that are developed through cooper-
29 ative efforts by firms or groups of firms at the state and regional
30 levels, which are designed to develop solutions to fundamental problems
31 facing industry groups.
32 (d) Encourage, where appropriate, the formation of flexible manufac-
33 turing networks among smaller firms.
34 (e) Create a computer network among manufacturing firms in the state
35 or region.
36 (f) Establish a strategic industries group services program pursuant
37 to section one hundred ninety-two-b of this article.
38 (g) Establish a supplier network group services program pursuant to
39 section one hundred ninety-two-c of this article.
40 4. The following programs within the department and the agencies and
41 authorities set forth in subdivision one of this section shall be coor-
42 dinated with the strategic network partnerships program: industrial
43 effectiveness program, procurement assistance programs, export assist-
44 ance programs, excelsior linked deposit program, the urban and community
45 development program, the empire state economic development fund, the
46 strategic training alliance program and other programs as determined by
47 the commissioner.
48 5. The commissioner shall establish, within the strategic network
49 partnerships program, a quality council program designed to coordinate
50 educational and economic development assistance activities related to
51 furthering the implementation of total quality management principles
52 within manufacturing firms and industries and other producers of goods
53 or services. The quality council program shall include communication on
54 information concerning quality principles and best quality practices,
55 sponsorship of quality conferences, seminars and workshops, and shall
56 serve as a quality information clearinghouse for manufacturers.
A. 7087--A 3
1 § 192-b. Strategic industries group services program. 1. The depart-
2 ment shall:
3 (a) Establish within the strategic network partnerships program a
4 strategic industries group services program and create a process, pursu-
5 ant to subdivision two of this section, to designate certain industrial
6 groups engaged in manufacturing or the production of other goods or
7 services as strategic industries.
8 (b) Actively promote cooperation among firms in a strategic industry
9 to identify needs, solve common problems, and encourage and build coop-
10 erative programs among member companies of strategic networks or alli-
11 ances in areas critical to their survival and growth, such as workforce
12 development, market development and expansion, export trade, competi-
13 tiveness improvement, product quality improvement, total quality manage-
14 ment, product diversification, and high performance work organizations.
15 (c) Offer companies within a strategic industry various forms of tech-
16 nical and financial assistance, in cooperation with the New York state
17 urban development corporation, the New York state job development
18 authority, and other state agencies, as incentives for the formation of
19 strategic alliances among firms in a designated strategic industry and
20 direct such assistance toward addressing the problems of strategic
21 industries pursuant to agreements entered into with state agencies and
22 authorities pursuant to section one hundred ninety-two-a of this arti-
23 cle.
24 (d) Provide in-depth assistance for activities sponsored by industry
25 associations and strategic alliances in strategic industries to stimu-
26 late industrial modernization and market expansion activity.
27 (e) Assist and support strategic industries in accessing sources of
28 federal, state and local manufacturing modernization assistance designed
29 to:
30 (i) collect and disseminate the most current information on manufac-
31 turing and production methods, procedures, process and technologies
32 relevant to members of the strategic industry served by the center and
33 create an information retrieval system for use by members of a strategic
34 industry.
35 (ii) conduct demonstrations of the most current manufacturing and
36 production methods, procedures, processes and technologies for members
37 of the strategic industry and undertake technology transfer activities.
38 (iii) provide technical assistance to strategic industry group members
39 to assist them in analyzing production problems and in implementing new
40 manufacturing and production practices, processes, procedures and tech-
41 nologies.
42 (iv) provide the opportunity for shared manufacturing and production
43 space and the use of specialized demonstration equipment for use by
44 individual firms or groups of firms in a strategic industry group.
45 (v) establish ties with universities and conduct joint research into
46 the problems affecting a strategic industry group.
47 (vi) offer management and technical courses to members of a strategic
48 industry group.
49 (vii) arrange for and conduct worker participation and training for
50 strategic industry group members.
51 (viii) arrange for and provide export information, assistance and
52 representation at trade shows.
53 (ix) act as packagers, where appropriate, of group insurance for stra-
54 tegic industry group members.
55 (f) Gradually reduce assistance to strategic industry groups over time
56 to allow industry groups to become user-funded and self-supporting.
A. 7087--A 4
1 2. (a) The commissioner shall designate a strategic industry group and
2 supplier network advisory panel.
3 (i) Such advisory panel shall be composed of leading university and
4 private sector economists, representatives of labor groups, represen-
5 tatives from the private business sector, selected members of the board
6 of directors of the New York state urban development corporation, and
7 the New York state job development authority, and other such represen-
8 tatives as the commissioner deems appropriate.
9 (ii) The members of the advisory board shall receive no compensation
10 for their services but shall be allowed their actual and necessary
11 expenses incurred in the performance of their duties.
12 (b) The strategic industry group and supplier network advisory panel
13 shall:
14 (i) assist the commissioner in developing criteria for designating a
15 strategic industry group, such criteria to be published by the commis-
16 sioner.
17 (ii) use such criteria to periodically review the condition of
18 manufacturing industries in the state and recommend to the commissioner
19 industry groups for designation as strategic industries.
20 (iii) assist a strategic industry designated by the commissioner
21 pursuant to paragraph (c) of this subdivision to develop a compact among
22 its member industries and between its member industries and the state
23 setting forth an agreement of cooperation consistent with the appropri-
24 ate and relevant elements of cooperation set forth in section one
25 hundred ninety-two-a of this article and this section, such compact to
26 be signed by the member industries of a strategic industry, the gover-
27 nor, the temporary president of the senate, and the speaker of the
28 assembly.
29 (c) The commissioner shall, from among the industry groups recommended
30 by the advisory panel for designation as strategic industry groups,
31 designate strategic industries, such designation to be final upon the
32 signing of the compact as set forth in paragraph (b) of this subdivi-
33 sion.
34 (d) No designation of an industry group as a strategic industry shall
35 be made for a period of longer than three years from the time of desig-
36 nation; provided, however, that the advisory panel shall be able to
37 commend an industry group for redesignation under the process set forth
38 in this subdivision, and the commissioner may redesignate an industry
39 group as a strategic industry.
40 3. Industries designated or redesignated as strategic industries shall
41 have preference for assistance under the strategic network partnerships
42 program set forth in section one hundred ninety-two-a of this article.
43 4. The department shall monitor and periodically review the perform-
44 ance of strategic industry groups to determine whether or not continued
45 preference under subdivision three of this section is warranted accord-
46 ing to criteria developed by the department, such criteria to include
47 the extent to which the industry has undertaken the self-help measures,
48 the financial contributions to the program by the involved firms,
49 progress toward self-sufficiency, and the job retention and creation
50 effects of the program on a particular strategic industry, and may
51 discontinue such preference at any time that it determines that the
52 performance of a strategic industry group is not satisfactory according
53 to such criteria.
54 § 192-c. Supplier network group services program. l. The department
55 shall:
A. 7087--A 5
1 (a) Establish within the strategic network partnerships program a
2 supplier network group services program and create a process, pursuant
3 to subdivision two of this section, to designate as supplier networks
4 certain small and medium-sized manufacturing firms and other producers
5 of goods or services in different industry groups which supply the same
6 manufacturing company or group of similar manufacturing companies with
7 the products used in the manufacture, production, or assembling of final
8 products.
9 (b) Actively promote cooperation among firms in a supplier network to
10 identify needs and solve common problems.
11 (c) Offer companies within a supplier network various forms of techni-
12 cal and financial assistance, in cooperation with the New York state
13 urban development corporation, the New York state job development
14 authority, and other state agencies, as incentives for the formation of
15 strategic alliances among firms in a designated supplier network and
16 direct such assistance toward addressing the problems of the firms in a
17 supplier network pursuant to agreements entered into with state agencies
18 and authorities pursuant to section one hundred ninety-three of this
19 article.
20 (d) Assist and support supplier networks by:
21 (i) collecting and disseminating the most current information on manu-
22 facturing methods, procedures, processes and technologies relevant to
23 members of a supplier network and create an information retrieval system
24 for use by members of a supplier network.
25 (ii) conduct demonstrations of the most current manufacturing and
26 production methods, procedures, processes and technologies for members
27 of the supplier network and undertake technology transfer activities.
28 (iii) provide technical assistance to a supplier network to assist its
29 members in analyzing production problems and in implementing new manu-
30 facturing practices, processes, procedures and technologies.
31 (iv) provide the opportunity for shared manufacturing or production
32 space and the use of specialized demonstration equipment for use by
33 individual firms or groups of firms in a supplier network.
34 (v) establish ties with universities and conduct joint research into
35 the problems affecting a supplier network.
36 (vi) offer management and technical courses to members of a supplier
37 network group.
38 (vii) conduct job training for supplier network group members.
39 (viii) provide export information, assistance and representation at
40 trade shows.
41 (ix) act as packagers, where appropriate, of group insurance for
42 supplier network group members.
43 (e) Where appropriate, assist and support supplier networks in access-
44 ing sources of federal, state and local manufacturing modernization
45 assistance.
46 (f) Gradually reduce assistance to supplier networks over time to
47 allow industry groups to become user-funded and self-supporting.
48 2. Designation of supplier networks. (a) The strategic industry group
49 and supplier network advisory panel established pursuant to section one
50 hundred ninety-two-b of this article shall:
51 (i) assist the commissioner in developing criteria for designating a
52 supplier network, such criteria to be published by the commissioner.
53 (ii) use such criteria to periodically review the condition of manu-
54 facturing industries in the state and recommend to the commissioner
55 groups of manufacturing firms for designation as supplier networks.
A. 7087--A 6
1 (iii) assist a supplier network designated by the commissioner pursu-
2 ant to paragraph (b) of this subdivision to develop a compact between
3 its member industries and among its member industries and the state
4 setting forth an agreement of cooperation consistent with the appropri-
5 ate and relevant elements of cooperation set forth in section one
6 hundred ninety-two-a of this article and this section, such compact to
7 be signed by the member industries of a supplier network, the governor,
8 the temporary president of the senate, and the speaker of the assembly.
9 (b) The commissioner shall, from among the groups recommended by the
10 advisory panel for designation as supplier networks, designate supplier
11 networks, such designation to be final upon the signing of the compact
12 as set forth in paragraph (a) of this subdivision.
13 (c) No designation of a group of manufacturing or other production
14 firms as a supplier network shall be made for a period of longer than
15 three years from time of designation; provided, however, that the advi-
16 sory panel shall be able to recommend that a group of firms should be
17 redesignated under the process set forth in this subdivision, and the
18 commissioner may redesignate such a group as a supplier network.
19 3. Industries designated or redesignated as supplier networks shall
20 have preference for assistance under the strategic network partnerships
21 program set forth in section one hundred ninety-two-a of this article.
22 4. The department shall monitor and periodically review the perform-
23 ance of supplier networks to determine whether or not continued prefer-
24 ence under subdivision two of this section is warranted according to
25 criteria developed by the department, such criteria to include the
26 extent to which the supplier network has undertaken the self-help meas-
27 ures, the financial contributions to the program by the involved firms,
28 progress toward self-sufficiency, and the job retention and creation
29 effects of the program at any time that it determines that the perform-
30 ance of a supplier network is not satisfactory according to such crite-
31 ria.
32 § 3. The opening paragraph of paragraph (e) of subdivision 7 of
33 section 16-d of section 1 of chapter 174 of the laws of 1968 constitut-
34 ing the New York state urban development corporation act, as added by
35 chapter 169 of the laws of 1994, is amended to read as follows:
36 Not-for-profit corporations, business improvement districts and commu-
37 nity development organizations, including associations representing
38 strategic network partnerships designated pursuant to sections 192-b and
39 192-c of the economic development law, which may apply for up to fifty
40 percent of project costs, paragraph (b) of this subdivision notwith-
41 standing, shall be eligible to apply for support under this subdivision
42 to operate a program or programs of business and economic development
43 services to stabilize, retain or revitalize existing businesses, and to
44 assist small and new businesses, including, but not limited to, assist-
45 ance to individual businesses or business sectors in such project areas
46 as:
47 § 4. The opening paragraph of subdivision 1 of section 16-m of section
48 1 of chapter 174 of the laws of 1968 constituting the New York state
49 urban development corporation act, as added by section 1 of part N of
50 chapter 84 of the laws of 2002, is amended to read as follows:
51 The empire state economic development fund is hereby created. The
52 corporation is authorized, within available appropriations, to provide
53 financial, technical or other assistance from such fund to qualified
54 businesses and other entities, including associations representing stra-
55 tegic network partnerships designated pursuant to sections 192-b and
56 192-c of the economic development law for the following:
A. 7087--A 7
1 § 5. Subdivision 1 of section 16-j of section 1 of chapter 174 of the
2 laws of 1968, constituting the New York state urban development corpo-
3 ration act, as amended by chapter 624 of the laws of 1999, is amended to
4 read as follows:
5 1. Program created. Pursuant to this section and article 24-A of the
6 labor law there is hereby established within the corporation and the
7 department of labor a strategic training alliance program to identify
8 and address employer demands for skilled workers. The corporation and
9 the department of labor may cooperate with the department of economic
10 development, the state university of New York, the city university of
11 New York, and the state education department, in providing support with-
12 in amounts available for the program for training activities by an
13 eligible applicant which is defined as an employer or an employer in
14 conjunction with a labor organization, a strategic alliance or network
15 or association of employers with common problems or concerns, [a private
16 industry council established pursuant to the federal job training part-
17 nership act (P.L. 97-300) or] including associations representing stra-
18 tegic network partnerships designated pursuant to sections 192-b and
19 192-c of the economic development law, one or more local workforce
20 investment boards established pursuant to the federal workforce invest-
21 ment act (P.L. 105-300) representing a strategic alliance.
22 § 6. Subdivision 3 of section 16-m of section 1 of chapter 174 of the
23 laws of 1968, constituting the New York state urban development corpo-
24 ration act, as amended by section 1 of part KK of chapter 59 of the laws
25 of 2008, is amended to read as follows:
26 3. The provisions of this section shall expire, notwithstanding any
27 inconsistent provision of subdivision 4 of section 469 of chapter 309 of
28 the laws of 1996 or of any other law, upon the effective date of a chap-
29 ter of the laws of [2009] 2011 which appropriates funds for the princi-
30 pal support of the urban development corporation for the [2009-2010]
31 2011-2012 state fiscal year.
32 § 7. This act shall take effect immediately; provided, however, that
33 the amendments to subdivision 1 of section 16-m of section 1 of chapter
34 174 of the laws of 1968 constituting the New York state urban develop-
35 ment corporation act made by section four of this act shall not affect
36 the expiration of such section and shall be deemed to expire therewith.
