BILL NO A02063B SAME AS No Same as SPONSOR Quart COSPNSR Blake, Joyner, Colton, Mosley, Robinson, Rodriguez, Peoples-Stokes MLTSPNSR Brennan, Brindisi, Gunther, Hooper, Jaffee, Kearns, Lavine, Lupardo, Rosenthal, Schimel, 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.Go to top
BILL NO A02063B 01/15/2015 referred to economic development 05/21/2015 reference changed to small business 05/28/2015 amend (t) and recommit to small business 05/28/2015 print number 2063a 06/02/2015 reported referred to ways and means 06/08/2015 reported referred to rules 06/10/2015 reported 06/10/2015 rules report cal.212 06/10/2015 ordered to third reading rules cal.212 06/11/2015 passed assembly 06/11/2015 delivered to senate 06/11/2015 REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS 01/06/2016 DIED IN SENATE 01/06/2016 RETURNED TO ASSEMBLY 01/06/2016 ordered to third reading cal.99 01/11/2016 amended on third reading 2063bGo to top
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NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2063B SPONSOR: Quart (MS)
TITLE OF BILL: An act to amend the economic development law, in relation to microenter- prise development   PURPOSE OR GENERAL IDEA OF BILL: Establishes the microenterprise development act to assist very small businesses and low-income entrepreneurs.   SUMMARY OF SPECIFIC PROVISIONS: Section 1: Short Title Section 2: Legislative Findings and Purpose Section 3: Adds a new article 9-B, Section 217 to the economic develop- ment law. This article would: * require the commissioner of the department of economic development to establish a grant program for microenterprise technical assistance; * establish that the organizations receiving funding shall use the grants to provide training and technical assistance to the microenter- prise entrepreneurs. * provide 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; * require the training organizations to have received at least one dollar in matching funds for every dollar received from the state. Section 4: Rules and Regulations Section 5: Effective Date   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 entrepre- neurs 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 need- ed to succeed.   PRIOR LEGISLATIVE HISTORY: 2015: Re-referenced to Small Business Committee, Passed Assembly 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: None noted.   EFFECTIVE DATE: This act shall take effect on the July 1, 2017.
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STATE OF NEW YORK ________________________________________________________________________ 2063--B Cal. No. 99 2015-2016 Regular Sessions IN ASSEMBLY January 15, 2015 ___________ Introduced by M. of A. QUART, BLAKE, JOYNER, COLTON, MOSLEY, ROBINSON, RODRIGUEZ -- Multi-Sponsored by -- M. of A. BRENNAN, BRINDISI, GUNTHER, HOOPER, JAFFEE, KEARNS, LAVINE, LUPARDO, ROSENTHAL, SCHIMEL, SEAWRIGHT, SIMANOWITZ, TITONE, TITUS, WEPRIN -- read once and referred to the Committee on Economic Development -- reference changed to the Committee on Small Business -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee -- advanced to a third reading, amended and ordered reprinted, retaining its place on the order of third reading 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. EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD04471-04-6A. 2063--B 2 1 4. Local community-based microenterprise support organizations have 2 demonstrated cost-effective delivery methods for providing financial, 3 business, and technical assistance, including microloans, mentoring, 4 physical space and other essential services to microenterprises. 5 5. Charitable foundation support, federal program funding and private 6 sector support can be leveraged by a statewide program for development 7 of microenterprises. 8 (b) The purpose of this act is to strengthen the state economy and 9 enable low-income residents to become self-sufficient by encouraging 10 microenterprise development. 11 § 3. The economic development law is amended by adding a new article 12 9-B to read as follows: 13 ARTICLE 9-B 14 MICROENTERPRISE DEVELOPMENT 15 Section 217. Microenterprise development. 16 § 217. Microenterprise development. (a) There is hereby established a 17 microenterprise development program under the purview of the department 18 of economic development. Such program shall provide microenterprises 19 with financial, business, or technical assistance, including, but not 20 limited to, access to financing, mentoring, training or acquiring phys- 21 ical space. 22 (b) As used in this section, the following terms shall have the 23 following meanings: 24 1. "Commissioner" means the commissioner of the department of economic 25 development. 26 2. "Microenterprise" means any business, whether new or existing, that 27 is a sole proprietorship, partnership, or corporation which has five or 28 less employees. 29 3. "Microenterprise development organization" means a community-based 30 organization, or social service organization, or other nonprofit entity 31 that has developed a program to provide microenterprises with financial, 32 business, or technical assistance, including, but not limited to, access 33 to financing, mentoring, training, or acquiring physical space. 34 4. "Training and technical assistance" means services and support 35 provided to microenterprises, especially those that are low-income 36 owners, for enhancing business planning, marketing management, and 37 improving financial management skills, for the purpose of accessing 38 financial services, such as loans, microloans and grants. 39 5. "Low-income person" means a person with income adjusted for family 40 size that does not exceed: 41 a. For metropolitan areas, eighty percent of median income of the 42 metropolitan area; or 43 b. For nonmetropolitan areas, the greater of eighty percent of the 44 area median income or eighty percent of the statewide nonmetropolitan 45 area median income. 46 (c) 1. The commissioner is authorized to establish a microenterprise 47 technical assistance and capacity building grant program to provide 48 assistance in the form of grants of up to five thousand dollars to 49 microenterprise development organizations to use as provided in this 50 subdivision from available appropriations. 51 2. A microenterprise development organization shall use grants made 52 under this program to provide training and technical assistance to low- 53 income entrepreneurs operating microenterprises. 54 3. The commissioner shall ensure that not less than fifty percent of 55 the funds made available are used to benefit persons whose income,A. 2063--B 3 1 adjusted for family size, is not more than one hundred fifty percent of 2 the poverty line as defined in 42 U.S.C. 9902(2). 3 4. A microenterprise development organization must provide at least 4 one dollar in matching funds for every dollar of state financial assist- 5 ance. Fees, grants, and gifts from public or private sources may be used 6 to comply with the matching funds requirement. 7 5. The commissioner shall assist microenterprises to access existing 8 grants, loans, and other programs and services currently available from 9 any state entity. Further, the commissioner shall actively seek to 10 encourage private financial institutions to make loans to microenter- 11 prises. 12 § 4. Rules and regulations. The commissioner of economic development 13 is authorized to promulgate rules and regulations in accordance with the 14 state administrative procedure act that are necessary to fulfill the 15 purposes of this act. Such rules and regulations shall be completed 16 within one hundred eighty days after the effective date of this act. 17 § 5. This act shall take effect July 1, 2017.