S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                        2063--A
                              2015-2016 Regular Sessions
                                 I N  A S S E M B L Y
                                   January 15, 2015
                                      ___________
       Introduced by M. of A. QUART, BLAKE, JOYNER, COLTON, MOSLEY, ROBINSON --
         Multi-Sponsored  by  --  M.  of A. BRENNAN, BRINDISI, GUNTHER, HOOPER,
         JAFFEE, KEARNS, LAVINE, LUPARDO, ROSENTHAL, SCHIMEL, SEAWRIGHT,  SIMA-
         NOWITZ, TITONE, TITUS, WEPRIN -- read once and referred to the Commit-
         tee  on  Economic Development -- reference changed 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 microenter-
         prise development
         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 are important elements of New York's  economy  and
    9  play  an  essential role in job creation, entrepreneurial skill develop-
   10  ment, and enhancing the ability of low-income households to become self-
   11  sufficient.  Microenterprises provide a means for  unemployed,  underem-
   12  ployed  or  low-income  individuals to find and sustain productive work,
   13  and they provide opportunities for economically  distressed  communities
   14  to thrive.
   15    3. Microentrepreneurs, especially those with low incomes, often do not
   16  have  access to commercial credit because of lack of business experience
   17  or training, collateral to secure business loans, or lack of history  of
   18  business records to demonstrate their loan repayment potential.
   19    4.  Local  community-based  microenterprise support organizations have
   20  demonstrated cost-effective delivery methods  for  providing  financial,
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD04471-03-5
       A. 2063--A                          2
    1  business,  and  technical  assistance,  including microloans, mentoring,
    2  physical space and other essential services to microenterprises.
    3    5.  Charitable foundation support, federal program funding and private
    4  sector support can be leveraged by a statewide program  for  development
    5  of microenterprises.
    6    (b)  The  purpose  of  this act is to strengthen the state economy and
    7  enable low-income residents to  become  self-sufficient  by  encouraging
    8  microenterprise development.
    9    S  3.  The economic development law is amended by adding a new article
   10  9-B to read as follows:
   11                                 ARTICLE 9-B
   12                         MICROENTERPRISE DEVELOPMENT
   13  SECTION 217. MICROENTERPRISE DEVELOPMENT.
   14    S 217. MICROENTERPRISE DEVELOPMENT. (A) THERE IS HEREBY ESTABLISHED  A
   15  MICROENTERPRISE  DEVELOPMENT PROGRAM UNDER THE PURVIEW OF THE DEPARTMENT
   16  OF ECONOMIC DEVELOPMENT.   SUCH PROGRAM SHALL  PROVIDE  MICROENTERPRISES
   17  WITH  FINANCIAL,  BUSINESS,  OR TECHNICAL ASSISTANCE, INCLUDING, BUT NOT
   18  LIMITED TO, ACCESS TO FINANCING, MENTORING, TRAINING OR ACQUIRING  PHYS-
   19  ICAL SPACE.
   20    (B)  AS  USED  IN  THIS  SECTION,  THE  FOLLOWING TERMS SHALL HAVE THE
   21  FOLLOWING MEANINGS:
   22    1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC
   23  DEVELOPMENT.
   24    2. "MICROENTERPRISE" MEANS ANY BUSINESS, WHETHER NEW OR EXISTING, THAT
   25  IS A SOLE PROPRIETORSHIP, PARTNERSHIP, OR CORPORATION WHICH HAS FIVE  OR
   26  LESS EMPLOYEES.
   27    3.  "MICROENTERPRISE DEVELOPMENT ORGANIZATION" MEANS A COMMUNITY-BASED
   28  ORGANIZATION, OR SOCIAL SERVICE ORGANIZATION, OR OTHER NONPROFIT  ENTITY
   29  THAT HAS DEVELOPED A PROGRAM TO PROVIDE MICROENTERPRISES WITH FINANCIAL,
   30  BUSINESS, OR TECHNICAL ASSISTANCE, INCLUDING, BUT NOT LIMITED TO, ACCESS
   31  TO FINANCING, MENTORING, TRAINING, OR ACQUIRING PHYSICAL SPACE.
   32    4.  "TRAINING  AND  TECHNICAL  ASSISTANCE"  MEANS SERVICES AND SUPPORT
   33  PROVIDED TO  MICROENTERPRISES,  ESPECIALLY  THOSE  THAT  ARE  LOW-INCOME
   34  OWNERS,  FOR  ENHANCING  BUSINESS  PLANNING,  MARKETING  MANAGEMENT, AND
   35  IMPROVING FINANCIAL MANAGEMENT SKILLS,  FOR  THE  PURPOSE  OF  ACCESSING
   36  FINANCIAL SERVICES, SUCH AS LOANS, MICROLOANS AND GRANTS.
   37    5.  "LOW-INCOME PERSON" MEANS A PERSON WITH INCOME ADJUSTED FOR FAMILY
   38  SIZE THAT DOES NOT EXCEED:
   39    A. FOR METROPOLITAN AREAS, EIGHTY PERCENT  OF  MEDIAN  INCOME  OF  THE
   40  METROPOLITAN AREA; OR
   41    B.  FOR  NONMETROPOLITAN  AREAS,  THE GREATER OF EIGHTY PERCENT OF THE
   42  AREA MEDIAN INCOME OR EIGHTY PERCENT OF  THE  STATEWIDE  NONMETROPOLITAN
   43  AREA MEDIAN INCOME.
   44    (C)  1.  THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A MICROENTERPRISE
   45  TECHNICAL ASSISTANCE AND CAPACITY  BUILDING  GRANT  PROGRAM  TO  PROVIDE
   46  ASSISTANCE  IN  THE  FORM  OF  GRANTS  OF UP TO FIVE THOUSAND DOLLARS TO
   47  MICROENTERPRISE DEVELOPMENT ORGANIZATIONS TO USE  AS  PROVIDED  IN  THIS
   48  SUBDIVISION FROM AVAILABLE APPROPRIATIONS.
   49    2.  A  MICROENTERPRISE  DEVELOPMENT ORGANIZATION SHALL USE GRANTS MADE
   50  UNDER THIS PROGRAM TO PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO  LOW-
   51  INCOME ENTREPRENEURS OPERATING MICROENTERPRISES.
   52    3.  THE  COMMISSIONER SHALL ENSURE THAT NOT LESS THAN FIFTY PERCENT OF
   53  THE FUNDS MADE AVAILABLE ARE  USED  TO  BENEFIT  PERSONS  WHOSE  INCOME,
   54  ADJUSTED  FOR FAMILY SIZE, IS NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF
   55  THE POVERTY LINE AS DEFINED IN 42 U.S.C. 9902(2).
       A. 2063--A                          3
    1    4. A MICROENTERPRISE DEVELOPMENT ORGANIZATION MUST  PROVIDE  AT  LEAST
    2  ONE DOLLAR IN MATCHING FUNDS FOR EVERY DOLLAR OF STATE FINANCIAL ASSIST-
    3  ANCE. FEES, GRANTS, AND GIFTS FROM PUBLIC OR PRIVATE SOURCES MAY BE USED
    4  TO COMPLY WITH THE MATCHING FUNDS REQUIREMENT.
    5    5.  THE  COMMISSIONER SHALL ASSIST MICROENTERPRISES TO ACCESS EXISTING
    6  GRANTS, LOANS, AND OTHER PROGRAMS AND SERVICES CURRENTLY AVAILABLE  FROM
    7  ANY  STATE  ENTITY.  FURTHER,  THE  COMMISSIONER  SHALL ACTIVELY SEEK TO
    8  ENCOURAGE PRIVATE FINANCIAL INSTITUTIONS TO MAKE  LOANS  TO  MICROENTER-
    9  PRISES.
   10    S  4.  Rules and regulations. The commissioner of economic development
   11  is authorized to promulgate rules and regulations in accordance with the
   12  state administrative procedure act that are  necessary  to  fulfill  the
   13  purposes  of  this  act.  Such  rules and regulations shall be completed
   14  within one hundred eighty days after the effective date of this act.
   15    S 5. This act shall take effect July 1, 2016.