A09436 Summary:

BILL NOA09436
 
SAME ASSAME AS S03258-A
 
SPONSORSepulveda
 
COSPNSR
 
MLTSPNSR
 
Add 4608 & 4609, Ed L
 
Relates to creating the NYS entrepreneurial training act of 2016.
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A09436 Memo:

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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A09436 Text:



 
                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.
                                                                   LBD08814-03-6

        A. 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.
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