Bill Text: NY S01224 | 2013-2014 | General Assembly | Introduced
Bill Title: Establishes the microenterprise development act to assist very small businesses and low-income business people; appropriates funds therefor.
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2014-01-08 - REFERRED TO FINANCE [S01224 Detail]
Download: New_York-2013-S01224-Introduced.html
S T A T E O F N E W Y O R K
________________________________________________________________________
1224
2013-2014 Regular Sessions
I N S E N A T E
(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 S 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 S 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 S 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 S 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 S 5. This act shall take effect on the first of July next succeeding
53 the date on which it shall have become a law.
