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A02585 Summary:

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A02585 Floor Votes:

A02585 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2585--B
 
                               2013-2014 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 16, 2013
                                       ___________
 
        Introduced  by  M.  of  A.  SCARBOROUGH, MILLMAN, COLTON, CRESPO, FINCH,
          JAFFEE, AUBRY, CAMARA, ZEBROWSKI, ROBINSON, COOK, WEPRIN,  WEISENBERG,
          RODRIGUEZ,  SANTABARBARA,  PERRY  --  Multi-Sponsored  by  -- M. of A.
          MAGEE, MARKEY, THIELE, WRIGHT -- read once and referred to the Commit-
          tee on Small Business -- reported and referred  to  the  Committee  on

          Ways  and  Means  --  passed  by Assembly and delivered to the Senate,
          recalled from the Senate, vote  reconsidered,  bill  amended,  ordered
          reprinted,  retaining  its  place  on  the  order  of third reading --
          committed to the Committee on Small Business -- committee  discharged,
          bill  amended,  ordered  reprinted  as amended and recommitted to said
          committee
 
        AN ACT to amend the economic development law, in relation to  establish-
          ing  entrepreneurship assistance centers; to amend the economic devel-
          opment law  and  the  labor  law,  in  relation  to  making  technical
          corrections  relating thereto; and to repeal article 9 of the economic
          development law relating thereto
 
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
 

     1    Section 1. Article 9 of the economic development law is REPEALED and a
     2  new article 9 is added to read as follows:
     3                                  ARTICLE 9
     4                     ENTREPRENEURSHIP ASSISTANCE CENTERS
     5  Section 210. Definitions.
     6          211. Entrepreneurship assistance centers.
     7          212. Reporting.
     8    §  210.  Definitions.  As  used  in  this article the following terms,
     9  unless the context indicates otherwise, shall have the  following  mean-
    10  ings:
    11    1.  "Entrepreneurship  assistance  centers"  shall  mean  the business
    12  development centers which provide assistance to primarily minority group
    13  members, women, individuals with a disability and dislocated workers  as
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02719-04-4
        A. 2585--B                          2
 
     1  established  by the department pursuant to section two hundred eleven of
     2  this article.
     3    2. "Disability" shall mean, with respect to an individual:
     4    (a)  a  physical or mental impairment that substantially limits one or
     5  more of the major life activities of such individual;
     6    (b) a record of such an impairment; or
     7    (c) being regarded as having an impairment.
     8    3. "Minority business enterprise" shall mean any  business  enterprise

     9  which  is  at  least  fifty-one per centum owned by, or in the case of a
    10  publicly owned business at least fifty-one per centum of  the  stock  of
    11  which  is owned by, citizens or permanent resident aliens who are Black,
    12  Hispanic, Asian or American Indian, Pacific Islander or  Alaskan  Native
    13  where  such  ownership  interest is real, substantial and continuing and
    14  where such persons have the authority to independently control the  day-
    15  to-day business decisions of the entity.
    16    4.  "Minority  group  member"  shall  mean  a United States citizen or
    17  permanent resident alien who is and can demonstrate membership in one of
    18  the following groups:
    19    (a) Black persons having origins in any of the  Black  African  racial

    20  groups not of Hispanic origin;
    21    (b)  Hispanic  persons  of  Mexican,  Puerto  Rican, Dominican, Cuban,
    22  Central or South American descent of either Indian or  Hispanic  origin,
    23  regardless of race;
    24    (c) Asian and Pacific Islander persons having origins in the Far East,
    25  Southeast Asia, the Indian sub-continent or the Pacific Islands; or
    26    (d) American Indian or Alaskan Native persons having origins in any of
    27  the original peoples of North America.
    28    5.  "Women-owned  business  enterprise" shall mean any business enter-
    29  prise which is at least fifty-one per centum owned by, or in the case of
    30  a publicly owned business at least fifty-one per centum of the stock  of

    31  which  is  owned by, citizens or permanent resident aliens who are women
    32  where such ownership interest is real, substantial  and  continuing  and
    33  where  such persons have the authority to independently control the day-
    34  to-day business decisions of the entity.
    35    § 211. Entrepreneurship assistance centers. 1.  The  department  shall
    36  establish and support, within available appropriations, entrepreneurship
    37  assistance  centers  at  career  education  agencies  and not-for-profit
    38  corporations including, but  not limited to,  local  development  corpo-
    39  rations, chambers of commerce, community-based business outreach centers
    40  and  other  community-based organizations.   The purpose of such centers

    41  shall be to train minority group  members,  women,  individuals  with  a
    42  disability  and  dislocated  workers  in  the principles and practice of
    43  entrepreneurship in order to prepare such persons to pursue self-employ-
    44  ment opportunities and to pursue a minority  business  enterprise  or  a
    45  women-owned business enterprise. Such centers shall provide for training
    46  in  all aspects of business development and small business management as
    47  defined by the commissioner.  For  purposes  of  this  section,  "career
    48  education agency" shall mean a community college or board of cooperative
    49  educational services operating within the state.
    50    2.  The  department  shall establish criteria for selection and desig-

    51  nation of such centers which shall include, but not be limited to:
    52    (a) the level of support for  the  center  from  local  post-secondary
    53  education institutions, businesses, and government;
    54    (b) the level of financial assistance provided at the local and feder-
    55  al level to support the operations of the center;
        A. 2585--B                          3
 
     1    (c)  the  applicant's  understanding  of  program goals and objectives
     2  articulated by the department;
     3    (d)  the  plans  of  the  center to supplement state and local funding
     4  through fees for services which may be based on a sliding scale based on
     5  ability to pay;
     6    (e) the need for and anticipated impact of the center on the community

     7  in which it will function;
     8    (f) the quality of the proposed work plan and staff of the center; and
     9    (g) the extent of economic distress in the area to be served.
    10    3. Application for grants made pursuant to this section shall be  made
    11  in  the  manner and on forms prescribed by the department. Such applica-
    12  tion shall include, but shall not be limited to:
    13    (a) a description  of  the  training  programs  available  within  the
    14  geographic area to be served by the center to which eligible clients may
    15  be referred;
    16    (b) designation of a program director;
    17    (c) plans for providing ongoing technical assistance to program gradu-
    18  ates, including linkages with providers of other entrepreneurial assist-

    19  ance  programs and with providers of small business technical assistance
    20  and services;
    21    (d) a program budget, including matching funds, in-kind and otherwise,
    22  to be provided by the applicant; and
    23    (e) such other requirements as deemed necessary by the department.
    24    4. Each center shall:
    25    (a) be operated by a board of directors representing community leaders
    26  in business, education, finance and government;
    27    (b) be incorporated as a not-for-profit corporation;
    28    (c) be located in an area accessible to eligible clients;
    29    (d) establish an advisory group  of  community  business  experts,  at
    30  least  one-half  of  whom shall be representative of the clientele to be

    31  served by the center,  which  shall  constitute  a  support  network  to
    32  provide  counseling  and  mentoring  services to minority group members,
    33  women, individuals with a disability and  dislocated  workers  from  the
    34  concept  stage  of  development  through  the  first one to two years of
    35  existence on a regular basis and as needed thereafter; and
    36    (e) establish a referral system and linkages to  existing  area  small
    37  business assistance programs and financing sources.
    38    5.  Each  entrepreneurship  assistance  center  shall  provide  needed
    39  services to eligible clients, including, but not limited to:
    40    (a) orientation and screening of prospective entrepreneurs;
    41    (b) analysis of business concepts and technical feasibility;

    42    (c) market analysis;
    43    (d) management analysis and counseling;
    44    (e) business planning and financial planning assistance;
    45    (f) referrals to financial resources;
    46    (g) referral to existing educational programs  for  training  in  such
    47  areas  as  marketing, accounting and other such training programs as may
    48  be necessary and available; and
    49    (h) referral to business incubator facilities, where appropriate,  for
    50  the  purpose  of  entering  into  agreements  to  access  shared support
    51  services.
    52    6. Grants made pursuant to  this  section  shall  be  subject  to  the
    53  following limitations:
    54    (a)  no  grant  shall  be  made to any one or any consortium of career

    55  education agencies and not-for-profit corporations in excess  of  seven-
    56  ty-five thousand dollars; and
        A. 2585--B                          4
 
     1    (b)  each grant shall be disbursed for payment of the cost of services
     2  and expenses of the program director, the instructors of the participat-
     3  ing career education agency or not-for-profit corporation,  the  faculty
     4  and  support  personnel  thereof  and any other person in the service of
     5  providing instruction and counseling in furtherance of the program.
     6    § 212. Reporting. The department shall:
     7    1.  Monitor  the performance of each entrepreneurial assistance center
     8  and require  periodic  and  annual  reports  from  each  entrepreneurial

     9  assistance center at such time and in such a manner as prescribed by the
    10  commissioner.
    11    2.  Evaluate  the entrepreneurial assistance centers established under
    12  this article and report,  on  or  before  October  first,  two  thousand
    13  fifteen,  and on or before each October first thereafter, and submit the
    14  results of such evaluation to the governor  and  the  legislature.  Such
    15  report  shall  discuss  the  extent  to which the centers serve minority
    16  group members, women, individuals with a disability and dislocated work-
    17  ers; the extent to which the training program is coordinated with  other
    18  assistance programs targeted to small and new businesses; the ability of
    19  such  program  to leverage other sources of funding and support; and the

    20  success of the program in aiding entrepreneurs to  start  up  new  busi-
    21  nesses,  including  the  number of new business start-ups resulting from
    22  the program. Such report shall recommend changes and improvements in the
    23  training program and in the quality of supplemental technical assistance
    24  offered to graduates of the training programs.
    25    3. Submit to the director of the division of the  budget,  the  chair-
    26  person of the senate finance committee and the chairperson of the assem-
    27  bly  ways  and means committee an evaluation of the effectiveness of the
    28  programs established under this article prepared by an entity  independ-
    29  ent  of  the department. Such evaluation shall be submitted by September

    30  first, two thousand sixteen and by  September  first  every  four  years
    31  thereafter.
    32    4.  Between  evaluation  due dates, maintain the necessary records and
    33  data required to satisfy such evaluation  requirements  and  to  satisfy
    34  information  requests  received  from  the  director  of the budget, the
    35  chairperson of the senate finance committee and the chairperson  of  the
    36  assembly ways and means committee between such evaluation due dates.
    37    §  2. Paragraph (c) of subdivision 37-b of section 100 of the economic
    38  development law, as added by chapter 524 of the laws of 2005, is amended
    39  to read as follows:
    40    (c) Subdivision two of section two hundred [thirteen] twelve  of  this
    41  chapter,  submitting  the results of the annual evaluation of the entre-

    42  preneurial assistance programs established under article  nine  of  this
    43  chapter.
    44    §  3.  Subparagraph (iii) of paragraph (c) of subdivision 2 of section
    45  591-a of the labor law, as amended by section 1 of part Z of chapter  57
    46  of the laws of 2013, is amended to read as follows:
    47    (iii)  are  participating  in  self-employment  assistance  activities
    48  approved by the department and by the department of economic development
    49  which include but need not be limited to entrepreneurial training, busi-
    50  ness counseling, and technical assistance, including  financing  assist-
    51  ance  for qualified individuals as appropriate, offered by entrepreneur-
    52  ship [support] assistance centers established pursuant  to  section  two
    53  hundred [twelve] eleven of the economic development law, state universi-

    54  ty  of  New York small business development centers, programs offered by
    55  community-based  organizations,  local  development  corporations,   and
    56  boards of cooperative educational services (BOCES) as established pursu-
        A. 2585--B                          5
 
     1  ant  to  section  one  thousand nine hundred fifty of the education law;
     2  and, unless otherwise required by federal law or regulation, no individ-
     3  ual shall be prohibited from or disqualified from  eligibility  for  the
     4  program  if prior to applying for the program, an individual has printed
     5  business cards or has a website that is designed  but  not  active,  and
     6  neither are being used to solicit or conduct business;
     7    §  4. This act shall take effect immediately; provided that the amend-
     8  ments to subparagraph (iii) of paragraph (c) of subdivision 2 of section

     9  591-a of the labor law made by section  three  of  this  act  shall  not
    10  affect  the  repeal of such section and shall be deemed to repeal there-
    11  with.