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A11053 Summary:

A11053 Actions:

A11053 Floor Votes:

A11053 Text:

 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          11053
 
                   IN ASSEMBLY
 
                                      May 12, 2010
                                       ___________
 
        Introduced  by  M.  of  A.  ESPAILLAT,  DESTITO, ZEBROWSKI, SCARBOROUGH,
          JAFFEE, CHRISTENSEN,  COLTON,  MILLMAN,  KOON,  CRESPO,  FINCH,  MENG,
          GIBSON,  AUBRY,  CASTRO  --  Multi-Sponsored  by -- M. of A. DelMONTE,
          HYER-SPENCER, WRIGHT -- read once and referred  to  the  Committee  on
          Small Business
 
        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 Article 9 of the economic development law is REPEALED and a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
    14  established by the department pursuant to section two hundred eleven  of
    15  this article.
    16    2. "Disability" shall mean, with respect to an individual:
    17    (a)  a  physical or mental impairment that substantially limits one or
    18  more of the major life activities of such individual;
    19    (b) a record of such an impairment; or
    20    (c) being regarded as having an impairment.

    21    3. "Minority business enterprise" shall mean any  business  enterprise
    22  which  is  at  least  fifty-one per centum owned by, or in the case of a
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08074-02-0
        A. 11053                            2
 
     1  publicly owned business at least fifty-one per centum of  the  stock  of
     2  which  is owned by, citizens or permanent resident aliens who are Black,
     3  Hispanic, Asian or American Indian, Pacific Islander or  Alaskan  Native
     4  where  such  ownership  interest is real, substantial and continuing and

     5  where such persons have the authority to independently control the  day-
     6  to-day business decisions of the entity.
     7    4.  "Minority  group  member"  shall  mean  a United States citizen or
     8  permanent resident alien who is and can demonstrate membership in one of
     9  the following groups:
    10    (a) Black persons having origins in any of the  Black  African  racial
    11  groups not of Hispanic origin;
    12    (b)  Hispanic  persons  of  Mexican,  Puerto  Rican, Dominican, Cuban,
    13  Central or South American descent of either Indian or  Hispanic  origin,
    14  regardless of race;
    15    (c) Asian and Pacific Islander persons having origins in the Far East,
    16  Southeast Asia, the Indian sub-continent or the Pacific Islands; or

    17    (d) American Indian or Alaskan Native persons having origins in any of
    18  the original peoples of North America.
    19    5.  "Women-owned  business  enterprise" shall mean any business enter-
    20  prise which is at least fifty-one per centum owned by, or in the case of
    21  a publicly owned business at least fifty-one per centum of the stock  of
    22  which  is  owned by, citizens or permanent resident aliens who are women
    23  where such ownership interest is real, substantial  and  continuing  and
    24  where  such persons have the authority to independently control the day-
    25  to-day business decisions of the entity.
    26    § 211. Entrepreneurship assistance centers. 1.  The  department  shall
    27  establish and support, within available appropriations, entrepreneurship

    28  assistance  centers  at  career  education  agencies  and not-for-profit
    29  corporations including, but  not limited to,  local  development  corpo-
    30  rations, chambers of commerce, community-based business outreach centers
    31  and  other  community-based organizations.   The purpose of such centers
    32  shall be to train minority group  members,  women,  individuals  with  a
    33  disability  and  dislocated  workers  in  the principles and practice of
    34  entrepreneurship in order to prepare such persons to pursue self-employ-
    35  ment opportunities and to pursue a minority  business  enterprise  or  a
    36  women-owned business enterprise. Such centers shall provide for training
    37  in  all aspects of business development and small business management as

    38  defined by the commissioner.  For  purposes  of  this  section,  "career
    39  education agency" shall mean a community college or board of cooperative
    40  educational services operating within the state.
    41    2.  The  department  shall establish criteria for selection and desig-
    42  nation of such centers which shall include, but not be limited to:
    43    (a) the level of support for  the  center  from  local  post-secondary
    44  education institutions, businesses, and government;
    45    (b) the level of financial assistance provided at the local and feder-
    46  al level to support the operations of the center;
    47    (c)  the  applicant's  understanding  of  program goals and objectives
    48  articulated by the department;

    49    (d) the plans of the center to  supplement  state  and  local  funding
    50  through fees for services which may be based on a sliding scale based on
    51  ability to pay;
    52    (e) the need for and anticipated impact of the center on the community
    53  in which it will function;
    54    (f) the quality of the proposed work plan and staff of the center; and
    55    (g) the extent of economic distress in the area to be served.
        A. 11053                            3
 
     1    3.  Application for grants made pursuant to this section shall be made
     2  in the manner and on forms prescribed by the department.  Such  applica-
     3  tion shall include, but shall not be limited to:
     4    (a)  a  description  of  the  training  programs  available within the

     5  geographic area to be served by the center to which eligible clients may
     6  be referred;
     7    (b) designation of a program director;
     8    (c) plans for providing ongoing technical assistance to program gradu-
     9  ates, including linkages with providers of other entrepreneurial assist-
    10  ance programs and with providers of small business technical  assistance
    11  and services;
    12    (d) a program budget, including matching funds, in-kind and otherwise,
    13  to be provided by the applicant; and
    14    (e) such other requirements as deemed necessary by the department.
    15    4. Each center shall:
    16    (a) be operated by a board of directors representing community leaders
    17  in business, education, finance and government;

    18    (b) be incorporated as a not-for-profit corporation;
    19    (c) be located in an area accessible to eligible clients;
    20    (d)  establish  an  advisory  group  of community business experts, at
    21  least one-half of whom shall be representative of the  clientele  to  be
    22  served  by  the  center,  which  shall  constitute  a support network to
    23  provide counseling and mentoring services  to  minority  group  members,
    24  women,  individuals  with  a  disability and dislocated workers from the
    25  concept stage of development through the  first  one  to  two  years  of
    26  existence on a regular basis and as needed thereafter; and
    27    (e)  establish  a  referral system and linkages to existing area small
    28  business assistance programs and financing sources.

    29    5.  Each  entrepreneurship  assistance  center  shall  provide  needed
    30  services to eligible clients, including, but not limited to:
    31    (a) orientation and screening of prospective entrepreneurs;
    32    (b) analysis of business concepts and technical feasibility;
    33    (c) market analysis;
    34    (d) management analysis and counseling;
    35    (e) business planning and financial planning assistance;
    36    (f) referrals to financial resources;
    37    (g)  referral  to  existing  educational programs for training in such
    38  areas as marketing, accounting and other such training programs  as  may
    39  be necessary and available; and
    40    (h)  referral to business incubator facilities, where appropriate, for

    41  the purpose  of  entering  into  agreements  to  access  shared  support
    42  services.
    43    6.  Grants  made  pursuant  to  this  section  shall be subject to the
    44  following limitations:
    45    (a) no grant shall be made to any one  or  any  consortium  of  career
    46  education  agencies  and not-for-profit corporations in excess of seven-
    47  ty-five thousand dollars; and
    48    (b) each grant shall be disbursed for payment of the cost of  services
    49  and expenses of the program director, the instructors of the participat-
    50  ing  career  education agency or not-for-profit corporation, the faculty
    51  and support personnel thereof and any other person  in  the  service  of
    52  providing instruction and counseling in furtherance of the program.

    53    § 212. Reporting. The department shall:
    54    1.  Monitor  the performance of each entrepreneurial assistance center
    55  and require  periodic  and  annual  reports  from  each  entrepreneurial
        A. 11053                            4
 
     1  assistance center at such time and in such a manner as prescribed by the
     2  commissioner.
     3    2.  Evaluate  the entrepreneurial assistance centers established under
     4  this article and report, on or before October first, two thousand  elev-
     5  en,  and  on  or  before  each  October first thereafter, and submit the
     6  results of such evaluation to the governor  and  the  legislature.  Such
     7  report  shall  discuss  the  extent  to which the centers serve minority

     8  group members, women, individuals with a disability and dislocated work-
     9  ers; the extent to which the training program is coordinated with  other
    10  assistance programs targeted to small and new businesses; the ability of
    11  such  program  to leverage other sources of funding and support; and the
    12  success of the program in aiding entrepreneurs to  start  up  new  busi-
    13  nesses,  including  the  number of new business start-ups resulting from
    14  the program. Such report shall recommend changes and improvements in the
    15  training program and in the quality of supplemental technical assistance
    16  offered to graduates of the training programs.
    17    3. Submit to the director of the division of the  budget,  the  chair-

    18  person of the senate finance committee and the chairperson of the assem-
    19  bly  ways  and means committee an evaluation of the effectiveness of the
    20  programs established under this article prepared by an entity  independ-
    21  ent  of  the department. Such evaluation shall be submitted by September
    22  first, two thousand thirteen and by September  first  every  four  years
    23  thereafter.
    24    4.  Between  evaluation  due dates, maintain the necessary records and
    25  data required to satisfy such evaluation  requirements  and  to  satisfy
    26  information  requests  received  from  the  director  of the budget, the
    27  chairperson of the senate finance committee and the chairperson  of  the
    28  assembly ways and means committee between such evaluation due dates.

    29    §  2. Paragraph (c) of subdivision 37-b of section 100 of the economic
    30  development law, as added by chapter 524 of the laws of 2005, is amended
    31  to read as follows:
    32    (c) Subdivision two of section two hundred [thirteen] twelve  of  this
    33  chapter,  submitting  the results of the annual evaluation of the entre-
    34  preneurial assistance programs established under article  nine  of  this
    35  chapter.
    36    §  3.  Subparagraph (iii) of paragraph (c) of subdivision 2 of section
    37  591-a of the labor law, as added by chapter 413 of the laws of 2003,  is
    38  amended to read as follows:
    39    (iii)  are  participating  in  self-employment  assistance  activities
    40  approved by the department and by the department of economic development
    41  which include but need not be limited to entrepreneurial training, busi-

    42  ness counseling, and technical assistance, including  financing  assist-
    43  ance  for qualified individuals as appropriate, offered by entrepreneur-
    44  ship [support] assistance centers established pursuant  to  section  two
    45  hundred [twelve] eleven of the economic development law, state universi-
    46  ty  of  New York small business development centers, programs offered by
    47  community-based  organizations,  local  development  corporations,   and
    48  boards of cooperative educational services (BOCES) as established pursu-
    49  ant to section one thousand nine hundred fifty of the education law;
    50    §  4. This act shall take effect immediately; provided that the amend-
    51  ments to subparagraph (iii) of paragraph (c) of subdivision 2 of section
    52  591-a of the labor law made by section  three  of  this  act  shall  not

    53  affect  the  repeal of such section and shall be deemed to repeal there-
    54  with.