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S. 3804 Summary:

BILL NOS03804
 
SAME ASSAME AS A02805
 
SPONSORBAILEY
 
COSPNSR
 
MLTSPNSR
 
Rpld & add Art 9 210 - 212, amd 100, Ec Dev L; amd 591-a, Lab L
 
Establishes entrepreneurship assistance centers to provide assistance to primarily minority group members, women, individuals with a disability and dislocated workers and veterans; requires the department of economic development to establish criteria and designation of such centers; sets forth requirements for each center.
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S. 3804 Actions:

BILL NOS03804
 
01/27/2017REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
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S. 3804 Memo:

Memo not available
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S. 3804 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3804
 
                               2017-2018 Regular Sessions
 
                    IN SENATE
 
                                    January 27, 2017
                                       ___________
 
        Introduced  by  Sen.  BAILEY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Commerce, Economic  Devel-
          opment and Small Business
 
        AN  ACT to amend the economic development law, in relation to establish-
          ing entrepreneurship assistance centers; to amend the economic  devel-
          opment  law  and  the  labor  law,  in  relation  to  making technical
          corrections relating thereto; and to repeal article 9 of the  economic
          development law relating thereto
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. Article 9 of the economic development law is REPEALED and a
     2  new article 9 is added to read as follows:
     3                                  ARTICLE 9
     4                     ENTREPRENEURSHIP ASSISTANCE CENTERS
     5  Section 210. Definitions.
     6          211. Entrepreneurship assistance centers.
     7          212. Reporting.
     8    § 210. Definitions. As used  in  this  article  the  following  terms,
     9  unless  the  context indicates otherwise, shall have the following mean-
    10  ings:
    11    1. "Entrepreneurship  assistance  centers"  shall  mean  the  business
    12  development centers which provide assistance to primarily minority group
    13  members,  women,  individuals  with a disability, dislocated workers and
    14  veterans as established  by  the  department  pursuant  to  section  two
    15  hundred eleven of this article.
    16    2. "Disability" shall mean, with respect to an individual:
    17    (a)  a  physical or mental impairment that substantially limits one or
    18  more of the major life activities of such individual;
    19    (b) a record of such an impairment; or
    20    (c) being regarded as having an impairment.
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08418-01-7

        S. 3804                             2
 
     1    3. "Minority business enterprise" shall mean any  business  enterprise
     2  which  is  at  least  fifty-one per centum owned by, or in the case of a
     3  publicly owned business at least fifty-one per centum of  the  stock  of
     4  which  is owned by, citizens or permanent resident aliens who are Black,
     5  Hispanic,  Asian  or American Indian, Pacific Islander or Alaskan Native
     6  where such ownership interest is real, substantial  and  continuing  and
     7  where  such persons have the authority to independently control the day-
     8  to-day business decisions of the entity.
     9    4. "Minority group member" shall  mean  a  United  States  citizen  or
    10  permanent resident alien who is and can demonstrate membership in one of
    11  the following groups:
    12    (a)  Black  persons  having origins in any of the Black African racial
    13  groups not of Hispanic origin;
    14    (b) Hispanic persons  of  Mexican,  Puerto  Rican,  Dominican,  Cuban,
    15  Central  or  South American descent of either Indian or Hispanic origin,
    16  regardless of race;
    17    (c) Asian and Pacific Islander persons having origins in the Far East,
    18  Southeast Asia, the Indian sub-continent or the Pacific Islands; or
    19    (d) American Indian or Alaskan Native persons having origins in any of
    20  the original peoples of North America.
    21    5. "Women-owned business enterprise" shall mean  any  business  enter-
    22  prise which is at least fifty-one per centum owned by, or in the case of
    23  a  publicly owned business at least fifty-one per centum of the stock of
    24  which is owned by, citizens or permanent resident aliens who  are  women
    25  where  such  ownership  interest is real, substantial and continuing and
    26  where such persons have the authority to independently control the  day-
    27  to-day business decisions of the entity.
    28    6. "Veteran" shall mean a person who served in and who has received an
    29  honorable  or  general discharge from, the United States army, navy, air
    30  force, marines, coast guard, and/or reserves thereof, and/or in the army
    31  national guard, air national guard, New York guard and/or New York naval
    32  militia.
    33    § 211. Entrepreneurship assistance centers. 1.  The  department  shall
    34  establish and support, within available appropriations, entrepreneurship
    35  assistance  centers  at  career  education  agencies  and not-for-profit
    36  corporations including, but  not limited to,  local  development  corpo-
    37  rations, chambers of commerce, community-based business outreach centers
    38  and  other  community-based organizations.   The purpose of such centers
    39  shall be to train minority group  members,  women,  individuals  with  a
    40  disability,  dislocated workers and veterans in the principles and prac-
    41  tice of entrepreneurship in order to  prepare  such  persons  to  pursue
    42  self-employment  opportunities  and to pursue a minority business enter-
    43  prise or a women-owned business enterprise. Such centers  shall  provide
    44  for  training  in all aspects of business development and small business
    45  management as defined by the commissioner. For purposes of this section,
    46  "career education agency" shall mean a community  college  or  board  of
    47  cooperative educational services operating within the state.
    48    2.  The  department  shall establish criteria for selection and desig-
    49  nation of such centers which shall include, but not be limited to:
    50    (a) the level of support for  the  center  from  local  post-secondary
    51  education institutions, businesses, and government;
    52    (b) the level of financial assistance provided at the local and feder-
    53  al level to support the operations of the center;
    54    (c)  the  applicant's  understanding  of  program goals and objectives
    55  articulated by the department;

        S. 3804                             3
 
     1    (d) the plans of the center to  supplement  state  and  local  funding
     2  through fees for services which may be based on a sliding scale based on
     3  ability to pay;
     4    (e) the need for and anticipated impact of the center on the community
     5  in which it will function;
     6    (f) the quality of the proposed work plan and staff of the center; and
     7    (g) the extent of economic distress in the area to be served.
     8    3.  Application for grants made pursuant to this section shall be made
     9  in the manner and on forms prescribed by the department.  Such  applica-
    10  tion shall include, but shall not be limited to:
    11    (a)  a  description  of  the  training  programs  available within the
    12  geographic area to be served by the center to which eligible clients may
    13  be referred;
    14    (b) designation of a program director;
    15    (c) plans for providing ongoing technical assistance to program gradu-
    16  ates, including linkages with providers of other entrepreneurial assist-
    17  ance programs and with providers of small business technical  assistance
    18  and services;
    19    (d) a program budget, including matching funds, in-kind and otherwise,
    20  to be provided by the applicant; and
    21    (e) such other requirements as deemed necessary by the department.
    22    4. Each center shall:
    23    (a) be operated by a board of directors representing community leaders
    24  in business, education, finance and government;
    25    (b) be incorporated as a not-for-profit corporation;
    26    (c) be located in an area accessible to eligible clients;
    27    (d)  establish  an  advisory  group  of community business experts, at
    28  least one-half of whom shall be representative of the  clientele  to  be
    29  served  by  the  center,  which  shall  constitute  a support network to
    30  provide counseling and mentoring services  to  minority  group  members,
    31  women,  individuals  with  a disability, dislocated workers and veterans
    32  from the concept stage of development through the first one to two years
    33  of existence on a regular basis and as needed thereafter; and
    34    (e) establish a referral system and linkages to  existing  area  small
    35  business assistance programs and financing sources.
    36    5.  Each  entrepreneurship  assistance  center  shall  provide  needed
    37  services to eligible clients, including, but not limited to:
    38    (a) orientation and screening of prospective entrepreneurs;
    39    (b) analysis of business concepts and technical feasibility;
    40    (c) market analysis;
    41    (d) management analysis and counseling;
    42    (e) business planning and financial planning assistance;
    43    (f) referrals to financial resources;
    44    (g) referral to existing educational programs  for  training  in  such
    45  areas  as  marketing, accounting and other such training programs as may
    46  be necessary and available; and
    47    (h) referral to business incubator facilities, where appropriate,  for
    48  the  purpose  of  entering  into  agreements  to  access  shared support
    49  services.
    50    6. Grants made pursuant to  this  section  shall  be  subject  to  the
    51  following limitations:
    52    (a)  no  grant  shall  be  made to any one or any consortium of career
    53  education agencies and not-for-profit corporations in excess  of  seven-
    54  ty-five thousand dollars; and
    55    (b)  each grant shall be disbursed for payment of the cost of services
    56  and expenses of the program director, the instructors of the participat-

        S. 3804                             4
 
     1  ing career education agency or not-for-profit corporation,  the  faculty
     2  and  support  personnel  thereof  and any other person in the service of
     3  providing instruction and counseling in furtherance of the program.
     4    § 212. Reporting. The department shall:
     5    1.  Monitor  the performance of each entrepreneurial assistance center
     6  and require quarterly  and  annual  reports  from  each  entrepreneurial
     7  assistance center at such time and in such a manner as prescribed by the
     8  commissioner.
     9    2.  Evaluate  the entrepreneurial assistance centers established under
    10  this article and report quarterly and annually,  on  or  before  January
    11  first, two thousand eighteen, and on or before each January first there-
    12  after, and submit the results of such evaluation to the governor and the
    13  legislature.  Such  report shall discuss the extent to which the centers
    14  serve minority group members,  women,  individuals  with  a  disability,
    15  dislocated  workers  and  veterans;  the  extent  to  which the training
    16  program is coordinated with other assistance programs targeted to  small
    17  and new businesses; the ability of such program to leverage other sourc-
    18  es  of  funding  and  support;  and the success of the program in aiding
    19  entrepreneurs to start up new businesses, including the  number  of  new
    20  business  start-ups resulting from the program. Such report shall recom-
    21  mend changes and improvements in the training program and in the quality
    22  of supplemental technical assistance offered to graduates of the  train-
    23  ing  programs. Such reports shall be made available to the public on the
    24  department's website.
    25    3. Submit to the director of the division of the  budget,  the  chair-
    26  person of the senate finance committee and the chairperson of the assem-
    27  bly  ways  and means committee an evaluation of the effectiveness of the
    28  programs established under this article prepared by an entity  independ-
    29  ent  of  the  department.  Such evaluation shall be submitted by January
    30  first, two thousand nineteen and by January first every year thereafter.
    31    4. Between evaluation due dates, maintain the  necessary  records  and
    32  data  required  to  satisfy  such evaluation requirements and to satisfy
    33  information requests received from  the  director  of  the  budget,  the
    34  chairperson  of  the senate finance committee and the chairperson of the
    35  assembly ways and means committee between such evaluation due dates.
    36    § 2. Paragraph (c) of subdivision 37-b of section 100 of the  economic
    37  development law, as added by chapter 524 of the laws of 2005, is amended
    38  to read as follows:
    39    (c)  Subdivision  two of section two hundred [thirteen] twelve of this
    40  chapter, submitting the results of the annual evaluation of  the  entre-
    41  preneurial  assistance  programs  established under article nine of this
    42  chapter.
    43    § 3. Subparagraph (iii) of paragraph (c) of subdivision 2  of  section
    44  591-a  of the labor law, as amended by section 1 of part Z of chapter 57
    45  of the laws of 2013, is amended to read as follows:
    46    (iii)  are  participating  in  self-employment  assistance  activities
    47  approved by the department and by the department of economic development
    48  which include but need not be limited to entrepreneurial training, busi-
    49  ness  counseling,  and technical assistance, including financing assist-
    50  ance for qualified individuals as appropriate, offered by  entrepreneur-
    51  ship  [support]  assistance  centers established pursuant to section two
    52  hundred [twelve] eleven of the economic development law, state universi-
    53  ty of New York small business development centers, programs  offered  by
    54  community-based   organizations,  local  development  corporations,  and
    55  boards of cooperative educational services (BOCES) as established pursu-
    56  ant to section one thousand nine hundred fifty  of  the  education  law;

        S. 3804                             5
 
     1  and, unless otherwise required by federal law or regulation, no individ-
     2  ual  shall  be  prohibited from or disqualified from eligibility for the
     3  program if prior to applying for the program, an individual has  printed
     4  business  cards  or  has  a website that is designed but not active, and
     5  neither are being used to solicit or conduct business;
     6    § 4. This act shall take effect immediately; provided that the  amend-
     7  ments to subparagraph (iii) of paragraph (c) of subdivision 2 of section
     8  591-a  of  the  labor  law  made  by section three of this act shall not
     9  affect the repeal of such section and shall be deemed to  repeal  there-
    10  with.
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