Home » 2007 Issues » May 30, 2007 » UDC-22-07-00006-E Economic Development and Job Creation Throughout New York State
UDC-22-07-00006-E Economic Development and Job Creation Throughout New York State
5/30/07 N.Y. St. Reg. UDC-22-07-00006-E
NEW YORK STATE REGISTER
VOLUME XXIX, ISSUE 22
May 30, 2007
RULE MAKING ACTIVITIES
URBAN DEVELOPMENT CORPORATION
EMERGENCY RULE MAKING
I.D No. UDC-22-07-00006-E
Filing No. 489
Filing Date. May. 14, 2007
Effective Date. May. 14, 2007
Economic Development and Job Creation Throughout New York State
PURSUANT TO THE PROVISIONS OF THE State Administrative Procedure Act, NOTICE is hereby given of the following action:
Action taken:
Amendment of Part 4242 of Title 21 NYCRR.
Statutory authority:
L. 1994, ch. 169; L. 2001, ch. 471; Urban Development Corporation Act, section 5(4); and L. 1968, ch. 174
Finding of necessity for emergency rule:
Preservation of general welfare.
Specific reasons underlying the finding of necessity:
Effective provision of economic development assistance in accordance with the enabling legislation (including recent amendments thereto) requires the addition of new forms of assistance to the rule.
Subject:
Economic development and job creation throughout New York State.
Purpose:
To provide the framework for administration of the JOBS Now Program, evaluation criteria, terms and conditions, and the application and evaluation process. The amended Rule makes changes to expand the type of program assistance available and makes the JOBS Now Program assistance in accordance with the requirements of the enabling legislation for the Dairy Assistance Program.
Substance of emergency rule:
The JOBS Now program (the “Program”) was created pursuant to Chapter 309 of the Laws of 1996 (the “Enabling Legislation”). The general purpose of the Program is to promote the economic health of New York State (the “State”) and increase economic activity within the State by encouraging the expansion of business within the State and the attraction of businesses to the State.
The Enabling Legislation creates Section 16-h of the New York State Urban Development Corporation Act (the “UDC Act”) which governs the Program. The Enabling Legislation requires the New York State Urban Development Corporation d/b/a the Empire State Development Corporation (the “Corporation”) to promulgate rules and regulations for the Program (the “Rules”) in accordance with the provisions of the State Administrative Procedure Act (“SAPA”). The Rules set forth the framework for the eligibility, evaluation criteria, application and project process and administrative procedures of the Program as follows:
1. Program Assistance:
a) Job Creation Grants to eligible businesses undertaking eligible projects, which grant may be used by the recipient to defray its State or local tax liability for any taxable period beginning on or after the date such grant is approved by ESD.
b) Worker training grants to eligible businesses undertaking eligible projects as full or partial reimbursement of the cost incurred by such businesses in conducting programs of worker training in connection with the eligible expansion or attraction project, including, without limitation, programs of recruitment, skills training and/or upgrading, productivity enhancement and total product/service quality improvement.
c) Capital loans and grants to eligible businesses undertaking eligible projects to finance, in connection with such projects, the acquisition of land, buildings, and machinery and equipment, or an interest therein; new construction, renovation or leasehold improvements; infrastructure improvements, including, without limitation, drainage systems, sewer systems, access roads, parking areas, sidewalks, docks, wharves, water supply systems and demolition and site clearance, preparation and improvement; and costs related to the above including, without limitation, legal expenses, appraisal costs, brokerage commissions, interest costs, survey expenses, design, architectural and engineering fees and expenses, site preparation expenses and relocation expenses; provided, however, that Program funds shall not be awarded for consultant costs relating to the preparation of an application for Program assistance.
d) Interest Subsidy Grants for the benefit of eligible businesses undertaking eligible projects to offset debt service costs associated with loans made to such businesses by a private lending institution, either directly or through an intermediary such as an industrial development agency of the State, to finance, in connection with such projects, the acquisition of land, building, or machinery and equipment, or an interest therein; new construction, renovation or leasehold improvements; and infrastructure improvements, as set forth in paragraph C. above.
e) Working capital loans and loan guarantees to or for the benefit of eligible businesses undertaking eligible projects to finance capital-related expenses such as, without limitation, accounts receivable and inventory, provided that such expenses are necessary to upgrade and reconfigure the business's competitive position. Working capital assistance shall be provided primarily in the form of loan guarantees; working capital loans shall be provided only under limited circumstances, as determined in ESD's sole discretion.
The proposed amended Rule expands the types of assistance available under the Program. Specifically, the proposed Section 4242.11 allows for payments to producers of milk to assist the dairy farmers of New York State and their industry in a time of great need and to prevent further loss of the dairy industry and it infrastructure which are critical to New York State's agricultural economy.
This notice is intended
to serve only as a notice of emergency adoption. This agency does not intend to adopt the provisions of this emergency rule as a permanent rule. The rule will expire August 11, 2007.
Text of emergency rule and any required statements and analyses may be obtained from:
Antovk Pidedjian, Urban Development Corporation d/b/a Empire State Development Corporation, 633 Third Ave. 37th Fl., New York, NY 10017, (212) 803-3792
Regulatory Impact Statement
1. Statutory Authority:
Chapter 57 of the laws of 2007 created Article 21-D of the Agricultural Markets Law and amended Section 16-h of the New York State Urban Development Corporation Act to permit the Commissioner of Agriculture and Markets (the “Commissioner”) and the New York State Urban Development Corporation, d/b/a Empire State Development Corporation (the “Corporation”) to implement the Dairy Assistance Program (the “Program”) to promote economic development in the State by assisting the dairy producers of New York State in a time of great need and to prevent further loss in the dairy industry and its infrastructure which are critical to the State's agricultural economy.
2. Legislative Objective:
The objective of the statute authorizing the Program is to promote the economic health of New York State by facilitating the creation or retention of jobs or increasing business activity within municipalities or regions of the State.
3. Need and Benefits:
The Program's legislation assists job creation throughout the State by providing the following types of assistance:
a) The Program pays eligible producers the difference between target prices to be established by the Commissioner and the combined announced Northeast Federal Order Statistical Uniform Price plus the amount of the Milk Income Loss Contract X payment rate on a per-hundredweight basis. Further, other factors may be used by the Commissioner in determining payment to producers for milk.
1. Evaluation Criteria – The Corporation, will review and act upon information provided to the Corporation by the Commissioner with respect to applications for assistance provided by applicants to the Commissioner and the Commissioner's determinations pursuant to Article 21-D of the Agricultural and Markets Law regarding eligibility requirements and award criteria.
2. Application procedure – Approval of applications shall be made only upon a determination by the Corporation after consultation with the Commissioner and based upon the information provided by the Commissioner.
4. Costs:
The changes should not increase costs for the Program.
The funding source is appropriation funds. Savings will occur as a result of the use of standard applications by the Commissioner which allow Department of Agriculture and Markets staff to efficiently assist in the application process and for UDC staff to efficiently process information provided by the Commissioner for prompt payment of Program assistance to applicants determined to be eligible by the Commissioner based on amounts determined by the Commissioner.
5. Local Government Mandates:
There is no imposition of any mandates upon local governments by the amended rule.
6. Paperwork:
There are no additional reporting or paperwork requirements as a result of this amended rule. Standard applications used by the Department of Agriculture and Markets will be employed.
7. Duplication:
There are no duplicative, overlapping or conflicting rules or legal requirements, either federal or state.
8. Federal Standards:
There are no applicable federal government standards which apply. However, the Commissioner of the Department of Agriculture and Markets shall request the United States Department of Agriculture's Farm Service Agency to provide production data for producers and assist the Department of Agriculture and Markets in administering the Program.
9. Alternatives:
This Program was created by the Legislature in our representative form of government. The Corporation is implementing this legislation. It is not for the Corporation to say what harm would be caused by doing nothing. With respect to implementing legislation, doing nothing is NOT an option.
10. Compliance Schedule:
No significant time will be needed for compliance.
Regulatory Flexibility Analysis
1. Effect of Rule:
The amended Rule will improve the accessibility of the program to eligible entities throughout the State and enable the Corporation to more effectively administer the Program. The goal of such improvements is to better achieve the Program's objectives, including assisting the State's dairy producers, the retention and creation of employment opportunities, and to otherwise contribute to the economic health of New York State.
The proposed amended Rule expands the types of assistance available under the Program. Specifically, the proposed Section 4242.11 allows for payments to producers of milk to assist the dairy farmers of New York State and their industry in a time of great need and to prevent further loss of the dairy industry and it infrastructure which are critical to New York State's agricultural economy.
This should not affect the Program's accessibility to small business.
2. Compliance Requirement:
No affirmative acts will be needed to comply.
3. Professional Services:
No professional services will be needed to comply.
4. Compliance Costs:
No initial costs will be needed to comply with the amended rule.
5. Economic and Technological Feasibility:
The Rule makes assistance feasible for small businesses that are dairy producers, by expressly stating that all producers shall be reimbursed for up to four million eight hundred thousand pounds of milk until such time as thirty million dollars in state funding is expended. The Rule is also economically feasible for local governments to coordinate their respective economic development and job retention and attraction efforts with the program. There are no aspects of the Rule that make the assistance or the Rule technologically infeasible for small business or local government.
6. Minimizing Adverse Impact:
The revised rule will have no adverse economic impact on small business or local governments.
7. Small Business and Local Participation:
The Program is a product of the legislative process and, thereby, has had the input of all small businesses participating in the representative process of government. The Program emphasizes the effective provision of economic development throughout New York State. Small business may participate by requesting assistance when the requisite eligibility criteria are met. Pursuant to the enabling legislation, the Corporation will work with the Commissioner of Agriculture and Markets who will work with local entities to make the assistance available.
Rural Area Flexibility Analysis
A Rural Area Flexibility Analysis Statement is not submitted because the amended rule will not impose any adverse economic impact, reporting requirements, recordkeeping or other compliance requirements on public or private entities in rural areas.
Job Impact Statement
A JIS is not submitted because it is apparent from the nature and purpose of the rule that it will not have a substantial adverse impact on jobs and employment opportunities. In fact, the proposed amended rule should have a positive impact on job creation because it will facilitate administration of and access to the JOBS Now program for providing assistance to dairy producers pursuant to the Dairy Assistance Program, which should improve the opportunities to maintain and create of jobs throughout the State by encouraging the continuation of the State's dairy industry.
