BILL NO A02063
SAME AS No same as
SPONSOR Quart (MS)
COSPNSR
MLTSPNSR Brennan, Brindisi, Gunther, Hooper, Jaffee, Lavine, Lupardo,
Rosenthal, Simanowitz, Titone, Titus, Weprin
Add Art 9-B S217, Ec Dev L
Establishes the microenterprise development act to assist very small businesses
and low-income business people; appropriate funds therefor.
BILL NUMBER:A2063
TITLE OF BILL:
An act to amend the economic development law, in relation to
microenterprise development; and making an appropriation therefor
PURPOSE OR GENERAL IDEA OF BILL:
Establishes the microenterprise development act to assist very small
businesses and low-income entrepreneurs.
SUMMARY OF SPECIFIC PROVISIONS:
This bill amends the economic development law by adding a new article
9-B. Section 217(a) provides definitions for terms. Section 217(b)(1)
requires the commissioner of the department of economic development to
establish a grant program for microenterprise technical assistance. In
addition, it mandates an annual appropriation of no less than one
million dollars. Subparagraph (2) establishes that the organizations
receiving funding shall use the grants to provide training and
technical assistance to the microenterprise entrepreneurs.
Subparagraph (3) provides that not less than fifty percent of the
funds made available are used to benefit person whose income is not
more than 150% of the poverty line. Subparagraph (4) requires the
training organizations to have received at least one dollar in
matching funds for every dollar received from the state.
Section 4 of the legislation requires an initial allocation of $1.5
million.
JUSTIFICATION:
Development and expansion of businesses in economically distressed
communities in both rural and urban areas can assist residents who are
unemployed, underemployed or in low-income jobs. Microenterprises can
address this need for development. However, many low-income
entrepreneurs lack access to capital, training and technical
assistance. This legislation will provide vital funding to local
support organizations that can leverage charitable foundation and
private sector support, to provide these entrepreneurs with vital
assistance. An estimated 22 million microenterprises operate
throughout the country and provide 18% of all private U.S.
employment. This legislation will strengthen the state economy by
enabling new businesses and giving them the tools needed to succeed.
PRIOR LEGISLATIVE HISTORY:
2014: Referred to Economic Development
2012: Reported from Economic Development, referred to Ways and Means
2011: Referred to Economic Development
2010: Referred to Economic Development
2008: Referred to Economic Development
FISCAL IMPLICATIONS:
$1.5 million appropriation.
EFFECTIVE DATE:
This act shall take effect on the first of July next succeeding the
date on which it shall have become law.
S T A T E O F N E W Y O R K
________________________________________________________________________
2063
2015-2016 Regular Sessions
I N A S S E M B L Y
January 15, 2015
___________
Introduced by M. of A. QUART -- Multi-Sponsored by -- M. of A. BRENNAN,
BRINDISI, GUNTHER, HOOPER, JAFFEE, LAVINE, LUPARDO, ROSENTHAL, SIMA-
NOWITZ, TITONE, TITUS, WEPRIN -- read once and referred to the Commit-
tee on Economic Development
AN ACT to amend the economic development law, in relation to microenter-
prise development; and making an appropriation therefor
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 S 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 provide a means for unemployed, underemployed or
9 low-income individuals to find and sustain productive work, and they
10 provide opportunities for economically distressed communities to thrive.
11 3. Low-income microentrepreneurs lack access to capital, training and
12 technical assistance. Many low-income microentrepreneurs need lending
13 services and technical assistance to start, operate or expand their
14 businesses.
15 4. Local microenterprise support organizations have demonstrated cost-
16 effective delivery methods for providing lending services and technical
17 assistance.
18 5. Charitable foundation support, federal program funding and private
19 sector support can be leveraged by a statewide program for development
20 of microenterprises.
21 (b) The purpose of this act is to strengthen the state economy and
22 enable low-income residents to become self-sufficient by encouraging
23 microenterprise development.
24 S 3. The economic development law is amended by adding a new article
25 9-B to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD04471-01-5
A. 2063 2
1 ARTICLE 9-B
2 MICROENTERPRISE DEVELOPMENT
3 SECTION 217. MICROENTERPRISE DEVELOPMENT.
4 S 217. MICROENTERPRISE DEVELOPMENT. (A) AS USED IN THIS SECTION, THE
5 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
6 1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC
7 DEVELOPMENT.
8 2. "MICROENTERPRISE" MEANS A SOLE PROPRIETORSHIP, PARTNERSHIP, OR
9 CORPORATION THAT HAS FEWER THAN FOUR EMPLOYEES AND GENERALLY LACKS
10 ACCESS TO CONVENTIONAL LOANS, EQUITY, OR OTHER BANKING SERVICES.
11 3. "MICROENTERPRISE DEVELOPMENT ORGANIZATION" OR "MICROENTERPRISE
12 DEVELOPMENT PROGRAM" MEANS A NONPROFIT ENTITY OR A PROGRAM ADMINISTERED
13 BY SUCH AN ENTITY, INCLUDING COMMUNITY DEVELOPMENT CORPORATIONS OR OTHER
14 NONPROFIT DEVELOPMENT ORGANIZATIONS AND SOCIAL SERVICE ORGANIZATIONS,
15 THAT PROVIDES SERVICES TO LOW-INCOME MICROENTERPRISES.
16 4. "TRAINING AND TECHNICAL ASSISTANCE" MEANS SERVICES AND SUPPORT
17 PROVIDED TO LOW-INCOME OWNERS AND OPERATORS OF MICROENTERPRISES, SUCH AS
18 ASSISTANCE FOR THE PURPOSE OF ENHANCING BUSINESS PLANNING, MARKETING
19 MANAGEMENT, FINANCIAL MANAGEMENT SKILLS, AND ASSISTANCE FOR THE PURPOSE
20 OF ACCESSING FINANCIAL SERVICES.
21 5. "LOW-INCOME PERSON" MEANS A PERSON WITH INCOME ADJUSTED FOR FAMILY
22 SIZE THAT DOES NOT EXCEED:
23 A. FOR METROPOLITAN AREAS, EIGHTY PERCENT OF MEDIAN INCOME; OR
24 B. FOR NONMETROPOLITAN AREAS, THE GREATER OF EIGHTY PERCENT OF THE
25 AREA MEDIAN INCOME OR EIGHTY PERCENT OF THE STATEWIDE NONMETROPOLITAN
26 AREA MEDIAN INCOME.
27 (B) 1. THE COMMISSIONER SHALL ESTABLISH A MICROENTERPRISE TECHNICAL
28 ASSISTANCE AND CAPACITY BUILDING GRANT PROGRAM, WHICH SHALL RECEIVE AN
29 ANNUAL APPROPRIATION FROM THE LEGISLATURE OF NO LESS THAN ONE MILLION
30 DOLLARS, TO PROVIDE ASSISTANCE IN THE FORM OF GRANTS TO MICROENTERPRISE
31 DEVELOPMENT ORGANIZATIONS.
32 2. A MICROENTERPRISE DEVELOPMENT ORGANIZATION SHALL USE GRANTS MADE
33 UNDER THIS PROGRAM TO PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO LOW-
34 INCOME ENTREPRENEURS OPERATING MICROENTERPRISES.
35 3. THE COMMISSIONER SHALL ENSURE THAT NOT LESS THAN FIFTY PERCENT OF
36 THE FUNDS MADE AVAILABLE ARE USED TO BENEFIT PERSONS WHOSE INCOME,
37 ADJUSTED FOR FAMILY SIZE, IS NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF
38 THE POVERTY LINE AS DEFINED IN 42 U.S.C. 9902(2).
39 4. A MICROENTERPRISE DEVELOPMENT ORGANIZATION MUST PROVIDE AT LEAST
40 ONE DOLLAR IN MATCHING FUNDS FOR EVERY DOLLAR OF STATE FINANCIAL ASSIST-
41 ANCE. FEES, GRANTS, AND GIFTS FROM PUBLIC OR PRIVATE SOURCES MAY BE USED
42 TO COMPLY WITH THE MATCHING FUNDS REQUIREMENT.
43 5. THE COMMISSIONER SHALL ESTABLISH BY REGULATION SUCH REQUIREMENTS AS
44 MAY BE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
45 S 4. The sum of one million five hundred thousand dollars
46 ($1,500,000), or so much thereof as may be necessary, is hereby appro-
47 priated to the department of economic development out of any moneys in
48 the state treasury in the general fund to the credit of the state
49 purposes account, not otherwise appropriated, and made immediately
50 available, for the purpose of carrying out the provisions of this act.
51 Such moneys shall be payable on the audit and warrant of the comptroller
52 on vouchers certified or approved by the commissioner of economic devel-
53 opment, or his or her designee, in the manner prescribed by law.
54 S 5. This act shall take effect on the first of July next succeeding
55 the date on which it shall have become a law.
