|SAME AS||SAME AS S03258-A|
|Add §§4608 & 4609, Ed L|
|Relates to creating the NYS entrepreneurial training act of 2016.|
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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: A9436 SPONSOR: Sepulveda
TITLE OF BILL: An act to amend the education law, in relation to creating the "NYS entrepreneurial training act of 2016"   PURPOSE OR GENERAL IDEA OF BILL: This bill would amend the education law to establish the NYS Entrepre- neurial Training Act of 2016.   SUMMARY OF SPECIFIC PROVISIONS: § 1 of this bill titles this bill the NYS Entrepreneurial Training Act of 2016. Subsection 2 details the provisions of the act as follows. 1. Cities of over 100,000 people shall be allocated $500,000 for a program to train entrepreneurial candidates. a. $100,000 for the operation of the program b. $400,000 for 40 $10,000 grants to successful graduates of the program. 2. Cities of over 1,000,000 people shall be allocated $5,000,000 for a program to train entrepreneurial candidates. a. $1,000,000 for the operation of the program b. $4,000,000 for 400 $10,000 grants to successful graduates of the program. 3. The New York State Education Department is to set guidelines for the program. Programs shall be administered by individual cities. 4. The New York State Education Department guidelines for the program shall require minimum grades and attending for successful graduation. Each participant, as part of the program, shall submit a gradable busi- ness plan for use of the grant money. 5. Program must include at least 20% participants who qualify as MWBEs under NYS law. 6. Program must include at least 10% participants who are veterans of the U.S. military.   JUSTIFICATION: According the Bureau of Labor Statistics, since the last recession, from mid-2009 to 2011, small firms accounted for 67 percent of the net new jobs. As New York State continues to recover from the "Great Recession," job growth has not been as strong as in past recessions. Given the fact that this economic downturn was the worst financial crisis in seven decades, it is understandable that the recovery has taken longer than normal. As a way to stimulate start-up businesses and job creation, the NYS Entrepreneurial Training Act of 2016 will help train potential entrepre- neurs. Instead of just handing money over to potential entrepreneurs, NYS Entrepreneurial Training Act of 2014 will train them how to start and manage a business. Training potential entrepreneurs will make their start-up businesses more like to succeed. As the new businesses begin to grow, they will hire new employees and increase tax revenues to the state.   PRIOR LEGISLATIVE HISTORY: 2014 S7406 Referred to Education   FISCAL IMPLICATIONS: The initial cost to the state will be approximately $5.5 million. Over time, the state will receive additional taxes, including sales and employments taxes, that is undetermined at this time.   EFFECTIVE DATE: This act shall take effect immediately.
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STATE OF NEW YORK ________________________________________________________________________ 9436 IN ASSEMBLY March 3, 2016 ___________ Introduced by M. of A. SEPULVEDA -- read once and referred to the Committee on Higher Education AN ACT to amend the education law, in relation to creating the "NYS entrepreneurial training act of 2016" The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. This act shall be known and may be cited as the "NYS entre- 2 preneurial training act of 2016". 3 § 2. The education law is amended by adding two new sections 4608 and 4 4609 to read as follows: 5 § 4608. Entrepreneurial training grant program. 1. There is hereby 6 established within the department an entrepreneurial training grant 7 program. The program shall be formulated by the commissioner and admin- 8 istered by individual participating cities. The purpose of the program 9 shall be to provide grants to eligible applicants to support and train 10 entrepreneurial candidates. 11 2. In order for an eligible applicant to receive an award of an annual 12 grant an applicant shall submit with its application a gradable business 13 plan for the use of the grant money. 14 3. A minimum of twenty percent of the participants of the program 15 shall be New York state certified minority and women's business enter- 16 prises and a minimum of ten percent shall be veterans of the United 17 States military. 18 § 4609. Entrepreneurial training grant program awards. 1. Within 19 amounts appropriated therefor, the commissioner shall be authorized to 20 grant awards for the support of approved entrepreneurial training grant 21 programs. 22 2. Grants to support an approved entrepreneurial training grant 23 program shall be awarded on a competitive basis in accordance with 24 criteria established by the commissioner. 25 3. The department shall, from within amounts appropriated to the 26 department, undertake all activities necessary to plan for and prelimi- 27 narily provide for the timely implementation of the entrepreneurial EXPLANATION--Matter in italics (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD08814-03-6A. 9436 2 1 training grant program authorized by this article for the state fiscal 2 year commencing one year following the effective date of this section. 3 4. Participating cities having a population of one million or more 4 shall be allocated five million dollars. One million dollars shall be 5 used for the operation of the program. Four million dollars shall be 6 used to grant four hundred ten thousand dollar grants to successful 7 graduates of the program. 8 5. Participating cities having a population of between one hundred 9 thousand and less than one million shall be allocated five hundred thou- 10 sand dollars. One hundred thousand dollars shall be used for the opera- 11 tion of the program. Four hundred thousand dollars shall be used to 12 grant forty ten thousand dollar grants to successful graduates of the 13 program. 14 § 3. This act shall take effect immediately; provided, however that 15 the commissioner of education shall have the authority to promulgate any 16 rules or regulations necessary for the implementation of this act.