Bill Text: AZ HB2267 | 2011 | Fiftieth Legislature 1st Regular | Introduced
Bill Title: Microenterprise development program; establishment
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-01-27 - Referred to House BI Committee [HB2267 Detail]
Download: Arizona-2011-HB2267-Introduced.html
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REFERENCE TITLE: microenterprise development program; establishment |
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State of Arizona House of Representatives Fiftieth Legislature First Regular Session 2011
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HB 2267 |
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Introduced by Representative Ableser
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AN ACT
amending title 6, Arizona Revised Statutes, by adding chapter 18; relating to the microenterprise development program.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Title 6, Arizona Revised Statutes, is amended by adding chapter 18, to read:
CHAPTER 18
MICROENTERPRISE DEVELOPMENT PROGRAM
ARTICLE 1. GENERAL PROVISIONS
6-1801. Definitions
In this chapter, unless the context otherwise requires:
1. "Microenterprise development organization" means a community development corporation, a nonprofit development organization, a nonprofit social services organization or another locally operated nonprofit entity that provides services to low‑income entrepreneurs.
2. "Statewide microenterprise association" means a nonprofit entity that has microenterprise development organizations as members and that serves as an intermediary between the department and community, trade, economic development and local microenterprise development organizations.
6-1802. Microenterprise development program; microenterprise development advisory group; rules
A. The microenterprise development program is established in the department. On or before September 1, 2013, the department shall do all of the following:
1. Provide organizational support to a statewide microenterprise association and contract with the association for the delivery of services and distribution of grants. The association shall serve as the department's agent in carrying out the purpose and service delivery requirements of this chapter. The contract must provide for an annual accounting of program outcomes, including job creation, access to capital, leveraging of nonstate monies and other outcome measures specified by the department.
2. Establish the microenterprise development advisory group. The microenterprise development advisory group shall meet regularly to coordinate the work of state agencies and other entities related to microenterprise activity and to develop a coherent framework for state agency efforts related to microenterprise activity. The microenterprise development advisory group shall consist of a representative from each of the following who is appointed by the superintendent:
(a) The department of economic security.
(b) The industrial commission of Arizona.
(c) The department of commerce.
(d) The office of the attorney general.
(e) The Arizona commission of Indian affairs.
(f) Community college districts.
(g) The Arizona board of regents.
(h) Other entities whose work relates to microenterprise activity in this state.
(i) Statewide microenterprise support organizations.
3. Provide monies for capacity building for the statewide microenterprise association and microenterprise development organizations throughout this state.
4. Provide grants and loans to microenterprise development organizations for the delivery of training and technical assistance services.
5. Identify and facilitate the availability of state, federal and private sources of monies that may enhance microenterprise development in this state.
6. With the statewide microenterprise association, develop criteria for the distribution of grants and loans to microenterprise development organizations. The criteria may include:
(a) The geographic representation of all regions of this state, including both urban and rural communities.
(b) The ability of the microenterprise development organization to provide business development services in low‑income communities. For the purposes of this subdivision, "low‑income" means income adjusted for family size that does not exceed:
(i) Eighty per cent of median income for nonmetropolitan areas.
(ii) The greater of eighty per cent of the area median income or eighty per cent of the statewide nonmetropolitan area median income for nonmetropolitan areas.
(c) The scope of services offered by a microenterprise development organization and its efficiency in delivery of the services.
(d) The ability of the microenterprise development organization to monitor the progress of its customers and identify technical and financial assistance needs.
(e) The ability of the microenterprise development organization to work with other organizations, public entities and financial institutions to meet the technical and financial assistance needs of its customers.
(f) The sufficiency of operating monies for the microenterprise development organization.
(g) Other criteria that are agreed to by the department and the association.
7. Require the statewide microenterprise association and any microenterprise development organization receiving monies through the microenterprise development program to raise and contribute to the effort funded by the microenterprise development program an amount equal to twenty‑five per cent of the microenterprise development program grant monies received. The matching monies may come from private foundations, federal or local sources, financial institutions or any other source other than monies appropriated by the legislature.
B. The department may adopt rules as necessary to implement this chapter.
6-1803. Microenterprise development fund
A. The microenterprise development fund is established. The fund shall consist of monies from the following sources:
1. All interest received on loans received directly from a microenterprise development organization.
2. Grants, donations and any other private or public monies.
B. The superintendent shall administer the fund and shall allocate the monies to a microenterprise development organization for the purposes of implementing section 6‑1802. The superintendent may not use more than ten per cent of the monies to cover administrative expenses. Monies in the fund are continuously appropriated.
6-1804. Annual audit
Each microenterprise development organization that receives a loan pursuant to this chapter shall provide the department with an annual audit from an independent certified public accountant. The audit must cover all of the microenterprise development organization's activities and must include verification of compliance with requirements specific to the microenterprise development program.
6-1805. Default; refund of loan
A microenterprise development organization that is in default for nonperformance under rules established by the department may be required to refund the outstanding balance of loans awarded before the default declaration. A loan is secured by a first lien on all monies and all receivables administered under this chapter by the entity receiving the loan. END_STATUTE
6-1806. Joint legislative audit committee evaluation
On or before January 1, 2016, the joint legislative audit committee shall use the outcome measures pursuant to section 6‑1802, subsection A, paragraph 1 and other relevant information to evaluate the microenterprise development program established by section 6‑1802.
6-1807. Program termination
The microenterprise development program established by this chapter ends on July 1, 2021 pursuant to section 41‑3102.
Sec. 2. Legislative findings
A. The legislature finds that:
1. Microenterprise development organizations are an important portion of the economy.
2. While community‑based microenterprise development organizations have expanded their assistance to their microentrepreneur customers in recent years, there remains a lack of access to capital, training and technical assistance for low‑income microentrepreneurs.
3. Support for microenterprise development offers a means to expand business and job creation in low‑income communities in both rural and urban areas of this state.
4. Local and state charitable foundation support, federal program funding and private sector support can be leveraged by a statewide program for development of microenterprises.
B. It is the purpose of this act to assist microenterprise development organizations in job creation by increasing the training, technical assistance and financial resources available to microenterprises. It is the intention of the legislature to carry out this purpose by enabling the department of financial institutions to contract with a statewide microenterprise association with the potential to provide organizational support and administer loans and grants to local microenterprise development organizations, subject to the requirements of this act, and to leverage additional monies from sources other than monies appropriated from the state general fund.
