A02063 Summary:

BILL NO    A02063 

SAME AS    No same as 

SPONSOR    Quart (MS)

COSPNSR    Blake, Joyner, Colton, Mosley, Robinson

MLTSPNSR   Brennan, Brindisi, Gunther, Hooper, Jaffee, Kearns, Lavine, Lupardo,
           Rosenthal, Schimel, Seawright, 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.
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A02063 Actions:

BILL NO    A02063 

01/15/2015 referred to economic development
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A02063 Votes:

There are no votes for this bill in this legislative session.
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A02063 Memo:

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.
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A02063 Text:

                           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.
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