Fund Grants for NY Businesses

Section 1. The general business law is amended by adding a new article 29-JJ to read as follows:

ARTICLE 29-JJ

MADE BY NEW YORKERS Section 613. Definitions.

613-a."Made by New Yorkers"; labeling.

613-b. Requirements.

613-c. Issuance of the label.

613-d. Application for registration.

613-e. Filing of applications.

613-f. Fees.

613-g. Administration and enforcement.

613-h. Suspension and revocation of registrations.

613-i. Renewal.

613-j. Reporting.

613-k. Rules and regulations.

§ 613. Definitions. As used in this article, the following terms shall have the following meanings:

1. "Applicant" shall mean the person filing an application, or a member of the firm or an officer of the corporation or association applying for registration for use of the "Made by New Yorkers" label.

2. "Department" shall mean the department of state.

3. "Products or goods" shall include any recognizable goods, merchandise, 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.

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4. "Secretary" shall mean the secretary of state.

§ 613-a. "Made by New Yorkers"; labeling. The department is authorized to establish and implement a made by New Yorkers labeling program for all products or goods made in accordance with the requirements of this article. The department may consult with the department of economic development in the implementation of this article.

§ 613-b. Requirements. 1. Any products or goods made in this state in accordance to this article shall be eligible to be labeled with a "Made by New Yorkers" label if:

a. the product or good is substantially made by a business located in the state; and

b. the finished product or good could lawfully use a "Made in U.S.A." or "Made in America" label.

2. For purposes of this section, "substantially made" means completing an act that adds at least fifty-one percent of a final product's wholesale value by manufacture, assembly or production to create a final recognizable product. "Substantially made" does not include the act of packaging the product.

§ 613-c. Issuance of the label. In accordance with the provisions of this article, the department shall consult with the department of economic development in the design and issuance of the "Made by New Yorkers" label.

§ 613-d. Application for registration. The department shall require each business that chooses to participate in the program to register with the department for use of the "Made by New Yorkers" label. An applicant for registration for use of the label shall submit an application to the secretary in such form as shall be prescribed by the secretary. An application for registration for use of the label shall include:

1. the name and business address of the person applying for such registration;

2. a description of each product or good being sold in connection with the label; and

3. a statement by the applicant that their products or goods are made in accordance with this article.

The application shall be signed and verified by oath, affirmation or declaration subject to the penalties of perjury by the applicant.

§ 613-e. Filing of applications. 1. Upon the filing of an application for registration for use of the label, the secretary shall examine the application for conformity with this article.

2. The applicant shall provide any additional pertinent information requested by the secretary.

3. The department shall, before making a final determination to deny a business an application for registration for use of the "Made by New Yorkers" label, notify the applicant in writing of the reasons for such denial and shall afford the applicant an opportunity to be heard in person or by counsel prior to the denial of the application. Such notification shall be delivered or mailed to the applicant. If a hearing is requested, such hearing shall be held at such time and place as the secretary shall prescribe. If the applicant fails to make a written request for a hearing within thirty days after receipt of such notification, then the notification shall become the final determination of the secretary. If, after hearing, the registration is denied, written notice of such denial shall be delivered or mailed to the applicant.

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§ 613-f. Fees. The application for registration or renewal shall be accompanied by a filing fee of one hundred dollars payable to the secretary.

§ 613-g. Administration and enforcement. The secretary shall have the power to enforce the provisions of this article, and upon complaint of any person, or on his or her own initiative, to investigate any violation thereof or to investigate a business if in the opinion of the secretary such investigation is warranted. Each such applicant or registered business shall be obliged, on request of the secretary, to supply such information, books, papers or records as may be required concerning his, her, their or its business. Failure to comply with a lawful request of the secretary shall be a ground for denying an application for registration, or for revoking, suspending or denial of renewal of a registration for use of the label under this article.

§ 613-h. Suspension and revocation of registrations. The secretary shall have the power to revoke or suspend any registration or deny any registration upon proof:

1. that the applicant or registrant has violated any of the provisions of this article or the rules and regulations promulgated pursuant thereto;

2. that the applicant or registrant has practiced fraud, deceit or misrepresentation; or

3. that the applicant or registrant has made a materially false statement in their application for registration.

§ 613-i. Renewal. The registration for use of the label shall be effective for a term of three years from the date of registration and, upon application filed within six months prior to the expiration of such term, in a manner complying with the requirements of the secretary, the registration may be renewed for a like term from the end of the expiring term. The department shall require between the time of registration and renewal that the registrant submit a sworn statement on an annual basis that their products or goods are made in accordance with this article.

§ 613-j. Reporting. The department shall submit an annual report regarding its expenditures, to the governor, temporary president of the senate, speaker of the assembly and appropriate committees of the legislature.

§ 613-k. Rules and regulations. The department shall promulgate such rules and regulations as shall be necessary to implement the provisions of this article.

§ 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-aa to read as follows:

§ 16-aa. Made by New Yorkers fund. 1. The Made by New Yorkers fund is hereby created. The purpose of the Made by New Yorkers fund is to make grants to eligible applicants, to support businesses in their growth and expansion efforts, and to encourage the growth of New York businesses and products both within and outside the state.

2. The corporation is authorized, within available appropriations, to award grants of no less than fifty thousand dollars and up to one hundred fifty thousand dollars to established small or medium sized businesses, for the purpose of encouraging the growth and expansion efforts of small or medium sized businesses. Such grants shall be awarded on a competitive basis.

3. For the purposes of this section:

(a) "expansion" shall include growth of a business' operation within the state or expansion of a business' sales inside or outside the state.

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(b) "small or medium sized business" shall mean a business which employs five hundred or fewer employees within the state on a full-time basis.

4. Grants awarded by the corporation pursuant to this section shall be subject to the following:

(a) grants shall not be less than fifty thousand dollars per year and shall not exceed one hundred fifty thousand dollars per year; and

(b) the corporation shall enter into no more than one grant per year per applicant under this subdivision.

5. Grants shall be awarded for projects dedicated to growth and expansion efforts taken by a business. Growth and expansion efforts shall include, but not be limited to, projects that:

(a) assist established businesses in their growth through market diversification and expansion;

(b) increase a business' adoption of new technologies; or

(c) increase a business' capacity to participate in national and international markets.

6. The corporation shall establish a competitive process for the evaluation of applicants for the Made by New Yorkers fund. When awarding funds pursuant to this section, the corporation shall ensure that applicants meet the criteria and requirements determined by the corporation pursuant to this section.

7. Recipients shall be required to report the status of funds received pursuant to this section to the corporation on a biannual basis until such project is completed. Failure to comply with reporting criteria, or any other criteria set forth by the corporation, may result in suspension of all future payments.

8. The corporation shall:

(a) monitor the performance of each recipient of a grant under the provisions of this section to ensure monies are used only for expenses related to the approved project; and

(b) on or before April first, two thousand eighteen and annually thereafter, submit to the governor, the temporary president of the senate, the speaker of the assembly, and the chairpersons of the senate finance committee and the assembly ways and means committee a report on the investments and accomplishments of the Made by New Yorkers fund. Such report shall include for each grant awarded, the name and location of the recipient, the amount awarded, a description of the expansion project, the number of jobs created or retained through the grant fund monies, a description of any funds that were not disbursed, and such other information as the corporation may deem appropriate.

§ 3. The New York state urban development corporation is hereby authorized to promulgate such rules and regulations, in accordance with the state administrative procedure act, as are necessary to fulfill the purposes of section two of this act.

§ 4. This act shall take effect immediately, except that section one of this act shall take effect on the one hundred eightieth day after it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of section one of this act on its effective date are authorized and directed to be made and completed on or before the effective date of such section.