NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2431
SPONSOR: Dilan TITLE OF BILL:
An act to amend the New York state urban development corporation act, in
relation to creating the "NYS entrepreneurial training act"
PURPOSE::
This bill would amend the New York state urban development corporation
act to establish the NYS Entrepreneurial Training Act.
SUMMARY OF PROVISIONS::
1 of this bill titles this bill the NYS Entrepreneurial Training Act.
Section 2:
1. Establishes the NYS Entrepreneurial Training Act within the empire
state development corporation.
2. In order for an eligible applicant to receive an award of an annual
grant an applicant shall submit with its application a gradable business
plan for the use of the grant money.
3. Program must include at least 20% participants who qualify as MWBEs
under NYS law and must include at least 10% participants who are veter-
ans of the U.S. military.
4. Cities of over 1,000,000 people shall be allocated $5,000,000 for a
program to train entrepreneurial candidates. $1,000,000 for the opera-
tion of the program. $4,000,000 for 400 $10,000 grants to successful
graduates of the program.
5. Cities and towns of over 90,000 people shall be allocated $500,000
for a program to train entrepreneurial candidates. $100,000 for the
operation of the program. $400,000 for 40 $10,000 grants to successful
graduates of the program.
Section 3: Effective date.
EXISTING LAW::
Such program does not exist under current law. JUSTIFICATION: According
the Bureau of Labor Statistics, since the last recession, from mid-2009
to 2011, small firms accounted for 67 percent of the net new jobs. As
New York State continues to struggle through an economic downturn due to
the COVID-19 pandemic, this program is needed more than ever. As a way
to stimulate start-up businesses and job creation, the NYS Entrepreneu-
rial Training Act will help train potential entrepreneurs. Instead of
just handing money over to potential entrepreneurs, NYS Entrepreneurial
Training Act will train them how to start and manage a business. Train-
ing potential entrepreneurs will make their start-up businesses more
like to succeed. As the new businesses begin to grow, they will hire new
employees and increase tax revenues to the state.
LEGISLATIVE HISTORY::
FISCAL IMPLICATIONS::
The initial cost to the state will be approximately $5.5 million. Over
time, the state will receive additional taxes, including sales and
employments taxes, that is undetermined at this time..
LOCAL FISCAL IMPLICATIONS::
None
EFFECTIVE DATE::
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2431
2023-2024 Regular Sessions
IN ASSEMBLY
January 26, 2023
___________
Introduced by M. of A. DILAN -- read once and referred to the Committee
on Economic Development
AN ACT to amend the New York state urban development corporation act, in
relation to creating the "NYS entrepreneurial training act"
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "NYS entre-
2 preneurial training act".
3 § 2. Section 1 of chapter 174 of the laws of 1968, constituting the
4 New York state urban development corporation act, is amended by adding
5 two new sections 16-hh and 16-ii to read as follows:
6 § 16-hh. Entrepreneurial training grant program. 1. There is hereby
7 established within the empire state development corporation an entrepre-
8 neurial training grant program. The program shall be formulated by such
9 corporation and administered by individual participating cities and
10 towns. The purpose of the program shall be to provide grants to eligi-
11 ble applicants to support and train entrepreneurial candidates.
12 2. In order for an eligible applicant to receive an award of an annual
13 grant an applicant shall submit with its application a gradable business
14 plan for the use of the grant money.
15 3. A minimum of twenty percent of the participants of the program
16 shall be New York state certified minority and women's business enter-
17 prises and a minimum of ten percent shall be veterans of the United
18 States military.
19 § 16-ii. Entrepreneurial training grant program awards. 1. Within
20 amounts appropriated therefor, the empire state development corporation
21 shall be authorized to grant awards for the support of approved entre-
22 preneurial training grant programs.
23 2. Grants to support an approved entrepreneurial training grant
24 program shall be awarded on a competitive basis in accordance with
25 criteria established by the empire state development corporation.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03233-01-3
A. 2431 2
1 3. The empire state development corporation shall, from within amounts
2 appropriated to such corporation, undertake all activities necessary to
3 plan for and preliminarily provide for the timely implementation of the
4 entrepreneurial training grant program authorized by section sixteen-hh
5 of this act for the state fiscal year commencing one year following the
6 effective date of this section.
7 4. Participating cities having a population of one million or more
8 shall be allocated five million dollars. One million dollars shall be
9 used for the operation of the program. Four million dollars shall be
10 used to grant four hundred ten thousand dollar grants to successful
11 graduates of the program.
12 5. Participating cities and towns having a population of between nine-
13 ty thousand and less than one million shall be allocated five hundred
14 thousand dollars. One hundred thousand dollars shall be used for the
15 operation of the program. Four hundred thousand dollars shall be used to
16 grant forty ten thousand dollar grants to successful graduates of the
17 program.
18 § 3. This act shall take effect immediately.
