Requires economic development program performance plans and evaluations; establishes private industry review council

§ 2- Amends the Economic Development Law by adding a new Article 7-A.

§ 3- Amends subdivision 1 of § 196 of the Economic Development Law.

§ 4- Amends paragraph (b) of subdivision 7 of § 202 of the Economic Development Law.

§ 5- Amends the opening paragraph of subdivision 2 and paragraph (a) 3 of § 213 of the Economic Development Law.

§ 6- Amends paragraph (a) of subdivision 3 of § 223 of the Economic Development Law.

§ 7- Amends subdivisions 9 and 10 of § 224 of the Economic Development Law.

§ 8- Amends subdivisions 4 and 5 of § 225 of the Economic Development Law.

§ 9- Amends paragraph (a) of subdivision 9 of § 250 of the Economic Development Law.

§ 10- Effective date.

Justification

This legislation seeks to accomplish two related goals. First, it establishes a Private Industry Review Council charged with the duty of conducting a complete and thorough review of current state economic development financial and business assistance programs and submitting a report to the Governor and the Legislature recommending changes necessary to eliminate duplication and streamline/reorganize economic development programs and services. Second, this legislation requires that the state's major economic development agencies develop and implement performance planning techniques which will be used to judge the utility and effectiveness of economic development programs. Essentially, performance planning requires that goals be set to establish the level of performance or results to be achieved by a particular program and that the goals established be defined in measurable, quantifiable terms. Performance indicators are then designed and used to assess the extent to which actual program results meet the established program goals.

The State of New York expends millions of dollars each year on economic development programs designed to enhance the economic well being of the state. Unfortunately, the present economic development system is a confusing patchwork of programs which lack coherence and create impediments to full program utilization by the business community. This legislation will, through the establishment of a Private Industry Review Council, provide the private sector a crucial role in "reinventing" economic development programs and services. Nowhere in state government is meaningful private sector involvement more important or appropriate than in the delivery of programs and services intended to enhance and promote economic development. This legislation creates a forum for a detailed and specific private sector review of existing economic development programs and services and directs that recommendations be made regarding the retention, modifications, consolidation or elimination of each such program or service. The Council's recommendations are intended to provide private sector input on ways to promote economy, efficiency and improved delivery of economic development programs: Performance planning as required by this bill seeks to bring private sector concepts to bear on the actual delivery of economic development programs and services by requiring that performance plans be prepared for each financial and business assistance program administered by the Department of Economic Development, Urban Development Corporation, Job Development Authority and Science and Technology Foundation. Given the importance of economic development efforts and the large sums of state funds involved, performance planning is critical to assuring that economic development programs are performing as intended and achieving the results envisioned. This legislation will strengthen and improve program and service delivery by bringing the private sector, and private sector principles and techniques, into the economic development system.

Prior legislative history

2007-2008: A.3135-A; 2005-2006: A.3188; 2003-2004: A.3470; 2001-2002: A.1004-B; 1999-2000: A.1925-A; 1997-1998: A.5416-A; 1995-1996: A.3728-A; 1993-1994: A.8197-A/S.616-B.

Fiscal implications

None.

Effective date

This act shall take effect immediately; provided that the provisions of Article 7-A of the Economic Development Law, added by section two of this act, shall take effect on the first of September next succeeding the date on which it shall have become a law and shall expire and be deemed repealed 2 years after such effective date; and provided further that, insofar as the amendment of sections 223, 224, and 225 of the Economic Development Law made by sections six, seven and eight, respectively, of this act pertain to the Port Authority of New York and New Jersey, each shall respectively apply to such Port Authority only upon the enactment into law by the state of New Jersey of legislation having an identical effect with sections six, seven and eight of this act, respectively, but if the state of New Jersey shall have already enacted such legislation, the corresponding section of this act shall apply to such Port Authority immediately provided that the Commissioner of Economic Development shall notify the Legislative Bill Drafting Commission upon the occurrence of the enactment of the legislation provided for in sections six, seven and eight of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the stat of New York in furtherance of effectuating the provisions of section 44 of the Legislative Law and section 70-b of the Public Officers Law.