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A03767 Summary:

BILL NOA03767
 
SAME ASNo Same As
 
SPONSORQuart
 
COSPNSRPeoples-Stokes
 
MLTSPNSRBlake, Brindisi, Colton, Gunther, Hooper, Jaffee, Joyner, Kearns, Lupardo, Mosley, Rodriguez, Rosenthal, Seawright, Simanowitz, Titone, Titus, Weprin
 
Add Art 9-B 217, Ec Dev L
 
Establishes the microenterprise development act to assist very small businesses and low-income business people.
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A03767 Actions:

BILL NOA03767
 
01/30/2017referred to small business
05/02/2017reported referred to ways and means
05/16/2017reported
05/18/2017advanced to third reading cal.410
05/24/2017passed assembly
05/24/2017delivered to senate
05/24/2017REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
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A03767 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3767
 
                               2017-2018 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 30, 2017
                                       ___________
 
        Introduced  by  M.  of A. QUART -- Multi-Sponsored by -- M. of A. BLAKE,
          BRINDISI, COLTON, GUNTHER, HOOPER, JAFFEE,  JOYNER,  KEARNS,  LUPARDO,
          MOSLEY,  PEOPLES-STOKES,  RODRIGUEZ, ROSENTHAL, SEAWRIGHT, SIMANOWITZ,
          TITONE, TITUS, WEPRIN -- read once and referred to  the  Committee  on
          Small Business

        AN ACT to amend the economic development law, in relation to microenter-
          prise development
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Short title. This act shall be known and may  be  cited  as
     2  the "microenterprise development act".
     3    §  2.  Legislative  findings and purpose. (a) The legislature finds as
     4  follows:
     5    1. Development and expansion of businesses in economically  distressed
     6  communities  in  both rural and urban areas can assist residents who are
     7  unemployed, underemployed or in low-income jobs.
     8    2. Microenterprises are important elements of New York's  economy  and
     9  play  an  essential role in job creation, entrepreneurial skill develop-
    10  ment, and enhancing the ability of low-income households to become self-
    11  sufficient.  Microenterprises provide a means for  unemployed,  underem-
    12  ployed  or  low-income  individuals to find and sustain productive work,
    13  and they provide opportunities for economically  distressed  communities
    14  to thrive.
    15    3. Microentrepreneurs, especially those with low incomes, often do not
    16  have  access to commercial credit because of lack of business experience
    17  or training, collateral to secure business loans, or lack of history  of
    18  business records to demonstrate their loan repayment potential.
    19    4.  Local  community-based  microenterprise support organizations have
    20  demonstrated cost-effective delivery methods  for  providing  financial,
    21  business,  and  technical  assistance,  including microloans, mentoring,
    22  physical space and other essential services to microenterprises.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08900-01-7

        A. 3767                             2
 
     1    5. Charitable foundation support, federal program funding and  private
     2  sector  support  can be leveraged by a statewide program for development
     3  of microenterprises.
     4    (b)  The  purpose  of  this act is to strengthen the state economy and
     5  enable low-income residents to  become  self-sufficient  by  encouraging
     6  microenterprise development.
     7    §  3.  The economic development law is amended by adding a new article
     8  9-B to read as follows:
     9                                 ARTICLE 9-B
    10                         MICROENTERPRISE DEVELOPMENT
    11  Section 217. Microenterprise development.
    12    § 217. Microenterprise development. (a) There is hereby established  a
    13  microenterprise development program under the purview of the department.
    14  Such program shall provide microenterprises with financial, business, or
    15  technical  assistance,  including, but not limited to, access to financ-
    16  ing, mentoring, training or acquiring physical space.
    17    (b) As used in this  section,  the  following  terms  shall  have  the
    18  following meanings:
    19    1.    "Microenterprise"  means  any business, whether new or existing,
    20  that is a sole proprietorship, partnership,  or  corporation  which  has
    21  five or less employees.
    22    2.  "Microenterprise development organization" means a community-based
    23  organization, or social service organization, or other nonprofit  entity
    24  that has developed a program to provide microenterprises with financial,
    25  business, or technical assistance, including, but not limited to, access
    26  to financing, mentoring, training, or acquiring physical space.
    27    3.  "Training  and  technical  assistance"  means services and support
    28  provided to  microenterprises,  especially  those  that  are  low-income
    29  owners,  for  enhancing  business  planning,  marketing  management, and
    30  improving financial management skills,  for  the  purpose  of  accessing
    31  financial services, such as loans, microloans and grants.
    32    4.  "Low-income person" means a person with income adjusted for family
    33  size that does not exceed:
    34    a. For metropolitan areas, eighty percent  of  median  income  of  the
    35  metropolitan area; or
    36    b.  For  nonmetropolitan  areas,  the greater of eighty percent of the
    37  area median income or eighty percent of  the  statewide  nonmetropolitan
    38  area median income.
    39    (c)  1.  The commissioner is authorized to establish a microenterprise
    40  technical assistance and capacity  building  grant  program  to  provide
    41  assistance  in  the  form  of  grants  of up to five thousand dollars to
    42  microenterprise development organizations to use  as  provided  in  this
    43  subdivision from available appropriations.
    44    2.  A  microenterprise  development organization shall use grants made
    45  under this program to provide training and technical assistance to  low-
    46  income entrepreneurs operating microenterprises.
    47    3.  The  commissioner shall ensure that not less than fifty percent of
    48  the funds made available are  used  to  benefit  persons  whose  income,
    49  adjusted  for family size, is not more than one hundred fifty percent of
    50  the poverty line as defined in 42 U.S.C. 9902(2).
    51    4. A microenterprise development organization must  provide  at  least
    52  one dollar in matching funds for every dollar of state financial assist-
    53  ance. Fees, grants, and gifts from public or private sources may be used
    54  to comply with the matching funds requirement.
    55    5.  The  commissioner shall assist microenterprises to access existing
    56  grants, loans, and other programs and services currently available  from

        A. 3767                             3
 
     1  any  state  entity.  Further,  the  commissioner  shall actively seek to
     2  encourage private financial institutions to make  loans  to  microenter-
     3  prises.
     4    §  4.  Rules and regulations. The commissioner of economic development
     5  is authorized to promulgate rules and regulations in accordance with the
     6  state administrative procedure act that are  necessary  to  fulfill  the
     7  purposes  of  this  act.  Such  rules and regulations shall be completed
     8  within one hundred eighty days after the effective date of this act.
     9    § 5. This act shall take effect July 1, 2018.
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