senate Bill S2825

Creates the micro business outreach center assistance program and micro business outreach center

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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  • 02 / Feb / 2011
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • 04 / Jan / 2012
    • REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Summary

Creates the micro business outreach center assistance program within the department of economic development, and provides for its functions, powers and duties; further creates the micro business outreach center network; establishes a reporting requirement by the commissioner of economic development.

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Bill Details

See Assembly Version of this Bill:
A6669
Versions:
S2825
Legislative Cycle:
2011-2012
Current Committee:
Senate Commerce, Economic Development And Small Business
Law Section:
Economic Development Law
Laws Affected:
Add Art 9-B ยงยง216 - 219, Ec Dev L
Versions Introduced in Previous Legislative Cycles:
2009-2010: A3193, S5639, S7968, A10471, A3193
2007-2008: A2766, S1338, A2766

Sponsor Memo

BILL NUMBER:S2825

TITLE OF BILL:
An act
to amend the economic development law, in relation to creating the
micro business outreach center assistance program

PURPOSE OR GENERAL IDEA OF BILL:
To create a means of supporting existing business outreach centers and
creating additional centers that are serving micro enterprises as
well as providing them with the opportunity to facilitate individuals
of communities that are geographically and socially isolated from the
mainstream economy with access to economic development counseling
services and funds.

SUMMARY OF SPECIFIC PROVISIONS:
Adds a new article 9-b to the economic development law thereby
creating the micro business outreach center assistance program.

JUSTIFICATION:
Small businesses are the backbone of every community. In this
difficult economy small businesses are the source of the majority of
new jobs. Daily, more and more individuals realize the opportunities
that exist for people who have their own businesses and the benefits
that such small businesses provide to the surrounding community. In
New York State there are many people that have a talent or idea that
could become a very successful enterprise if only they knew how to
implement it. These are the types of people who are potential micro
enterprise owners proprietors of businesses that begin with five or
less employees, require less than $35,000 in start-up capital, and do
not have access to the traditional commercial banking sector.

Business outreach centers take hard working men and women who may not
have the knowledge or experience of how to create a micro business
and provide them with the tools they need to start an enterprise;
whether it is teaching the individual how to write a business plan or
matching the eager entrepreneur with a reasonable loan. With the help
of business outreach centers the American dream is actually
achievable. These programs are most helpful to minorities, women, and
immigrant communities who might not have access to capital and are
therefore ineligible to receive loans in the eyes of most major
lending companies.

The Small Business Association has reported that women of color start
businesses at six times the rate of men, and since 1997 the number of
women owned businesses in New York City alone has grown by over 21 %.
This has been able to occur through the hard work of centers that are
already in existence in the New York Metropolitan area. Studies by
the Aspen Institute have even shown that these types of services help
move the working-poor out of poverty. When women, immigrant, and
minority populations have the opportunity to become successful,
self supporting business people that cater to the needs of their
individual communities, local areas are revitalized and the entire
State benefits.


This legislation ensures that business outreach centers serving micro
enterprises will be able to receive federal funding as well as
provide the opportunity and benefits of these services to a greater
population throughout New York State thereby increasing both
community wealth and employment opportunities. The State has
historically been financially supportive of many such programs and
this legislation seeks to ensure that such support continues into the
future and is provided to a greater population.

LEGISLATIVE HISTORY:
2009 - S.5639 - Veto
63
2010 - S.7968 - Passed Senate

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect on the one hundred eightieth day after it
shall become law.

view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  2825

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                            February 2, 2011
                               ___________

Introduced  by  Sens.  STEWART-COUSINS,  ESPAILLAT,  HANNON, MONTGOMERY,
  OPPENHEIMER, SMITH -- read twice and ordered printed, and when printed
  to be committed to the Committee on Commerce, Economic Development and
  Small Business

AN ACT to amend the economic development law, in  relation  to  creating
  the micro business outreach center assistance program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The economic development law is amended  by  adding  a  new
article 9-B to read as follows:
                                ARTICLE 9-B
            MICRO BUSINESS OUTREACH CENTER ASSISTANCE PROGRAM
SECTION 216. DEFINITIONS.
        217. MICRO BUSINESS OUTREACH CENTERS.
        218. MICRO BUSINESS OUTREACH CENTER NETWORK.
        219. REPORTING REQUIREMENT.
  S  216.  DEFINITIONS.  FOR  THE PURPOSES OF THIS ARTICLE THE FOLLOWING
TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "MICRO BUSINESS" SHALL MEAN A SOLE PROPRIETORSHIP,  PARTNERSHIP  OR
FAMILY BUSINESS THAT HAS FEWER THAN FIVE EMPLOYEES.
  2.  "MICRO  BUSINESS  OUTREACH CENTERS" SHALL MEAN A BUSINESS OUTREACH
CENTER THAT SERVES THE BUSINESS DEVELOPMENT NEEDS OF  SPECIFIC  COMMUNI-
TIES.
  3.  "MICRO  BUSINESS  OUTREACH CENTER NETWORK" SHALL MEAN A NETWORK OF
BUSINESS OUTREACH CENTERS THAT PROVIDES SERVICES THROUGHOUT A REGION AND
HELPS DEVELOP  AND  ASSIST  INDIVIDUAL  MICRO-ENTERPRISE/SMALL  BUSINESS
DEVELOPMENT   ORGANIZATIONS  IN  THE  DELIVERY  OF  CUSTOMIZED  BUSINESS
SERVICES TO ENTREPRENEURS, AS  WELL  AS  CAPACITY-BUILDING  SERVICES  TO
ORGANIZATIONS  ESTABLISHING AND OPERATING COMMUNITY AND MICRO-ENTERPRISE
DEVELOPMENT PROGRAMS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04600-01-1

S. 2825                             2

  S 217. MICRO BUSINESS OUTREACH CENTERS. 1. THERE IS HEREBY ESTABLISHED
WITHIN THE  DEPARTMENT  A  MICRO  BUSINESS  OUTREACH  CENTER  ASSISTANCE
PROGRAM.  THE  DEPARTMENT IS AUTHORIZED, WITHIN AMOUNTS APPROPRIATED, TO
PROVIDE DIRECT TECHNICAL AND FINANCIAL ASSISTANCE TO THE MICRO  BUSINESS
OUTREACH CENTER NETWORK, A NOT-FOR-PROFIT CORPORATION, FOR THE FOLLOWING
ACTIVITIES:
  (A)  TO ASSIST THE MICRO BUSINESS OUTREACH CENTER IN SETTING UP, OR TO
ASSIST THE CENTER IN HELPING  LOCAL  SPONSOR  ORGANIZATIONS  AND/OR  NEW
ORGANIZATIONS  TO  SET UP ADDITIONAL MICRO BUSINESS OUTREACH CENTERS, IN
GEOGRAPHIC AREAS OF THE STATE THAT ARE WIDELY-SEPARATED FROM EACH  OTHER
BUT  ARE IN NEED OF, AND WOULD LIKELY BENEFIT FROM, THE ESTABLISHMENT OF
SUCH CENTER;
  (B) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER IN PROVIDING AID  FOR
THE  OPERATION AND MAINTENANCE OF THE ADDITIONAL MICRO BUSINESS OUTREACH
CENTERS SO CREATED AS WELL AS FOR THE OPERATION AND MAINTENANCE  OF  ITS
PRESENTLY EXISTING AFFILIATED MICRO BUSINESS OUTREACH CENTERS; AND
  (C)  TO  ASSIST  THE  MICRO  BUSINESS  OUTREACH  CENTER  TO EXPAND THE
CENTER'S COORDINATION OF NETWORKING AND TECHNICAL ASSISTANCE  ACTIVITIES
AMONG ALL MICRO BUSINESS OUTREACH CENTERS.
  2.  THE  DEPARTMENT  SHALL  PROVIDE MONIES, WITHIN AVAILABLE APPROPRI-
ATIONS, IN RESPONSE TO A COMMUNITY NEED FOR THE MICRO BUSINESS  OUTREACH
CENTERS  NETWORK.  THE DEPARTMENT SHALL ESTABLISH CRITERIA FOR SELECTION
AND DESIGNATION OF SUCH MICRO  BUSINESS  OUTREACH  CENTERS  WHICH  SHALL
INCLUDE BUT NOT BE LIMITED TO:
  (A)  COMMUNITIES THAT ARE GEOGRAPHICALLY AND/OR SOCIALLY ISOLATED FROM
THE MAINSTREAM ECONOMY;
  (B) A COORDINATED NETWORK  OF  CLIENT  INFORMATION  SYSTEMS,  REGIONAL
LINKAGES, AND OPERATIONAL GUIDELINES;
  (C)  A  MODEL  THAT  MAXIMIZES  THE  EFFICIENT  USE OF SCARCE EXISTING
ECONOMIC  DEVELOPMENT  RESOURCES,  ADDRESSES  THE  RECOGNIZED  NEED  FOR
PRE-LOAN AND POST LOAN TECHNICAL ASSISTANCE FOR GROWING SMALL BUSINESS;
  (D)  FACILITATING  ACCESS  TO  THE  COMPLEX INFRASTRUCTURE OF ECONOMIC
DEVELOPMENT PROGRAMS AND SMALL BUSINESS SERVICES, CONNECTING SMALL BUSI-
NESS TO NEEDED INFORMATION AND CAPITAL TECHNICAL ASSISTANCE.
  3. ASSISTANCE, SERVICES AND DATA AS  WILL  ENABLE  THE  DEPARTMENT  TO
PROPERLY  CARRY OUT ITS FUNCTIONS, POWERS, AND DUTIES UNDER THIS ARTICLE
SHALL BE PROVIDED BY THE COMMISSIONER AND TO ACCOMPLISH  THE  SAME,  THE
COMMISSIONER  MAY  REQUEST  THE  ASSISTANCE OF OTHER AGENCIES AND PUBLIC
CORPORATIONS AND DISTRICTS.
  S 218. MICRO BUSINESS OUTREACH CENTER  NETWORK.  1.  THERE  IS  HEREBY
ESTABLISHED  WITHIN  THE  DEPARTMENT  A  MICRO  BUSINESS OUTREACH CENTER
NETWORK. THE DEPARTMENT IS AUTHORIZED  WITHIN  AMOUNTS  APPROPRIATED  TO
PROVIDE  DIRECT TECHNICAL AND FINANCIAL ASSISTANCE TO THE MICRO BUSINESS
OUTREACH CENTER NETWORK, A NOT-FOR-PROFIT CORPORATION, FOR THE FOLLOWING
ACTIVITIES:
  (A) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER  NETWORK  IN  SETTING
UP,  OR  TO  ASSIST  THE  CENTER  IN HELPING LOCAL SPONSOR ORGANIZATIONS
AND/OR NEW ORGANIZATIONS TO SET UP ADDITIONAL  MICRO  BUSINESS  OUTREACH
CENTERS, IN GEOGRAPHIC AREAS OF THE STATE THAT ARE WIDELY-SEPARATED FROM
EACH OTHER BUT ARE IN NEED OF, AND WOULD LIKELY BENEFIT FROM, THE ESTAB-
LISHMENT OF SUCH CENTER;
  (B)  TO ASSIST THE MICRO BUSINESS OUTREACH CENTER NETWORK IN PROVIDING
AID FOR THE OPERATION AND MAINTENANCE OF THE ADDITIONAL  MICRO  BUSINESS
OUTREACH CENTERS SO CREATED AS WELL AS FOR THE OPERATION AND MAINTENANCE
OF  ITS  PRESENTLY  EXISTING AFFILIATED MICRO BUSINESS OUTREACH CENTERS;
AND

S. 2825                             3

  (C) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER NETWORK TO EXPAND THE
CENTER'S  COORDINATION OF NETWORKING AND TECHNICAL ASSISTANCE ACTIVITIES
AMONG ALL MICRO BUSINESS OUTREACH CENTERS.
  2.  THE  DEPARTMENT  SHALL  PROVIDE MONIES, WITHIN AVAILABLE APPROPRI-
ATIONS, IN RESPONSE TO A COMMUNITY NEED FOR THE MICRO BUSINESS  OUTREACH
CENTERS  NETWORK.  THE DEPARTMENT SHALL ESTABLISH CRITERIA FOR SELECTION
AND DESTINATION OF SUCH MICRO  BUSINESS  OUTREACH  CENTERS  WHICH  SHALL
INCLUDE BUT NOT BE LIMITED TO:
  (A)  COMMUNITIES THAT ARE GEOGRAPHICALLY AND/OR SOCIALLY ISOLATED FROM
THE MAINSTREAM ECONOMY;
  (B) A COORDINATED NETWORK  OF  CLIENT  INFORMATION  SYSTEMS,  REGIONAL
LINKAGES, AND OPERATIONAL GUIDELINES;
  (C)  A  MODEL  THAT  MAXIMIZES  THE  EFFICIENT  USE OF SCARCE EXISTING
ECONOMIC  DEVELOPMENT  RESOURCES,  ADDRESSES  THE  RECOGNIZED  NEED  FOR
PRE-LOAN AND POST LOAN TECHNICAL ASSISTANCE FOR GROWING SMALL BUSINESS;
  (D)  FACILITATING  ACCESS  TO  THE  COMPLEX INFRASTRUCTURE OF ECONOMIC
DEVELOPMENT PROGRAMS AND SMALL BUSINESS SERVICES, CONNECTING SMALL BUSI-
NESS TO NEEDED INFORMATION AND CAPITAL TECHNICAL ASSISTANCE.
  3. ASSISTANCE, SERVICES AND DATA AS  WILL  ENABLE  THE  DEPARTMENT  TO
PROPERLY  CARRY OUT ITS FUNCTIONS, POWERS, AND DUTIES UNDER THIS ARTICLE
SHALL BE PROVIDED BY THE COMMISSIONER AND TO ACCOMPLISH  THE  SAME,  THE
COMMISSIONER  MAY  REQUEST  THE  ASSISTANCE OF OTHER AGENCIES AND PUBLIC
CORPORATIONS AND DISTRICTS.
  S 219. REPORTING REQUIREMENT. THE DEPARTMENT SHALL MONITOR THE  EFFEC-
TIVENESS OF THE DIRECT TECHNICAL AND FINANCIAL ASSISTANCE IT PROVIDES TO
THE  MICRO  BUSINESS  OUTREACH CENTER NETWORK, INCORPORATED, IN ORDER TO
DETERMINE AND REPORT TO WHAT EXTENT THE GOALS SPECIFIED IN THIS  SECTION
HAVE  BEEN  ACHIEVED.  THE  COMMISSIONER  SHALL  MAKE AND FILE AN ANNUAL
REPORT TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF
THE ASSEMBLY WITHIN THIRTY DAYS  FOLLOWING  THE  CLOSE  OF  THE  STATE'S
FISCAL  YEAR  CONTAINING THE RESULTS OF SUCH MONITORING PURSUANT TO THIS
SECTION. SUCH ANNUAL REPORT SHALL CONTAIN  RECOMMENDATIONS  FOR  FURTHER
LEGISLATION TO IMPLEMENT THE PURPOSES OF THIS ARTICLE IF IN THE JUDGMENT
OF  THE  COMMISSIONER NEW LEGISLATION TO FURTHER EFFECTUATE THE PURPOSES
OF THIS ARTICLE IS WARRANTED.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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