S01224 Summary:

BILL NOS01224
 
SAME ASSAME AS A02248
 
SPONSORPERKINS
 
COSPNSRHASSELL-THOMPSON, KENNEDY
 
MLTSPNSR
 
Add Art 9-B S217, Ec Dev L
 
Establishes the microenterprise development act to assist very small businesses and low-income business people; appropriates funds therefor.
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S01224 Actions:

BILL NOS01224
 
01/09/2013REFERRED TO FINANCE
01/08/2014REFERRED TO FINANCE
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S01224 Floor Votes:

There are no votes for this bill in this legislative session.
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S01224 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          1224
 
                               2013-2014 Regular Sessions
 
                    IN SENATE
 
                                       (Prefiled)
 
                                     January 9, 2013
                                       ___________
 
        Introduced  by  Sen. PERKINS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Finance
 
        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    § 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    §  3.  The economic development law is amended by adding a new article
    25  9-B to read as follows:
    26                                 ARTICLE 9-B
    27                         MICROENTERPRISE DEVELOPMENT
 

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD04143-01-3

        S. 1224                             2
 
     1  Section 217. Microenterprise development.
     2    §  217.  Microenterprise development. (a) As used in this section, the
     3  following terms shall have the following meanings:
     4    1. "Commissioner" means the commissioner of the department of economic
     5  development.
     6    2. "Microenterprise" means  a  sole  proprietorship,  partnership,  or
     7  corporation  that  has  fewer  than  four  employees and generally lacks
     8  access to conventional loans, equity, or other banking services.

     9    3.  "Microenterprise  development  organization"  or  "microenterprise
    10  development  program" means a nonprofit entity or a program administered
    11  by such an entity, including community development corporations or other
    12  nonprofit development organizations and  social  service  organizations,
    13  that provides services to low-income microenterprises.
    14    4.  "Training  and  technical  assistance"  means services and support
    15  provided to low-income owners and operators of microenterprises, such as
    16  assistance for the purpose of  enhancing  business  planning,  marketing
    17  management,  financial management skills, and assistance for the purpose
    18  of accessing financial services.
    19    5. "Low-income person" means a person with income adjusted for  family

    20  size that does not exceed:
    21    a. For metropolitan areas, eighty percent of median income; or
    22    b.  For  nonmetropolitan  areas,  the greater of eighty percent of the
    23  area median income or eighty percent of  the  statewide  nonmetropolitan
    24  area median income.
    25    (b)  1.  The  commissioner shall establish a microenterprise technical
    26  assistance and capacity building grant program, which shall  receive  an
    27  annual  appropriation  from  the legislature of no less than one million
    28  dollars, to provide assistance in the form of grants to  microenterprise
    29  development organizations.
    30    2.  A  microenterprise  development organization shall use grants made
    31  under this program to provide training and technical assistance to  low-

    32  income entrepreneurs operating microenterprises.
    33    3.  The  commissioner shall ensure that not less than fifty percent of
    34  the funds made available are  used  to  benefit  persons  whose  income,
    35  adjusted  for family size, is not more than one hundred fifty percent of
    36  the poverty line as defined in 42 U.S.C. 9902(2).
    37    4. A microenterprise development organization must  provide  at  least
    38  one dollar in matching funds for every dollar of state financial assist-
    39  ance. Fees, grants, and gifts from public or private sources may be used
    40  to comply with the matching funds requirement.
    41    5. The commissioner shall establish by regulation such requirements as
    42  may be necessary to carry out the provisions of this section.

    43    §   4.   The   sum  of  one  million  five  hundred  thousand  dollars
    44  ($1,500,000), or so much thereof as may be necessary, is  hereby  appro-
    45  priated  to  the department of economic development out of any moneys in
    46  the state treasury in the general  fund  to  the  credit  of  the  state
    47  purposes  account,  not  otherwise  appropriated,  and  made immediately
    48  available, for the purpose of carrying out the provisions of  this  act.
    49  Such moneys shall be payable on the audit and warrant of the comptroller
    50  on vouchers certified or approved by the commissioner of economic devel-
    51  opment, or his or her designee, in the manner prescribed by law.
    52    §  5.  This act shall take effect on the first of July next succeeding
    53  the date on which it shall have become a law.
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