Senate Bill S415

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

                                   415

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 7, 2009
                               ___________

Introduced  by  Sens.  BRESLIN,  ADAMS,  DILAN, DUANE, HASSELL-THOMPSON,
  KRUEGER, KRUGER, MONTGOMERY, ONORATO, PARKER,  SAMPSON,  SCHNEIDERMAN,
  SMITH,  STACHOWSKI,  STAVISKY  --  read twice and ordered printed, and
  when printed to be committed to  the  Committee  on  Social  Services,
  Children and Families

AN ACT to amend the social services law, in relation to establishing the
  community  capital  loan  program  and  providing  for the filing of a
  report thereon

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

  Section  1. The social services law is amended by adding a new section
131-bb to read as follows:
  S 131-BB. COMMUNITY CAPITAL LOAN PROGRAM. 1. FROM AMOUNTS APPROPRIATED
FOR SUCH PURPOSE, THE DEPARTMENT  OF  LABOR  IN  CONSULTATION  WITH  THE
DEPARTMENT  OF  FAMILY  ASSISTANCE  IS HEREBY AUTHORIZED AND DIRECTED TO
SOLICIT PROPOSALS TO ESTABLISH PROGRAMS TO BE KNOWN AS COMMUNITY CAPITAL
LOAN PROGRAMS. SUCH PROGRAMS SHALL PROVIDE SMALL, NO-INTEREST  LOANS  TO
PERSONS  WITH  INCOME  BELOW  TWO HUNDRED PERCENT OF THE FEDERAL POVERTY
LEVEL FOR THE PURPOSE OF ASSISTING THE LOAN RECIPIENT TO BECOME SELF-EM-
PLOYED. LOANS AWARDED THROUGH A COMMUNITY CAPITAL LOAN  PROGRAM  MAY  BE
PAID  DIRECTLY  TO  A  THIRD  PARTY ON BEHALF OF A LOAN RECIPIENT AND IN
EITHER CASE SHALL NOT CONSTITUTE INCOME OR RESOURCES FOR THE PURPOSES OF
PUBLIC ASSISTANCE AND CARE SO  LONG  AS  THE  FUNDS  ARE  USED  FOR  THE
INTENDED PURPOSE.
  2.  THE COMMISSIONER OF LABOR SHALL ENTER INTO WRITTEN AGREEMENTS WITH
NOT-FOR-PROFIT ORGANIZATIONS OR LOCAL GOVERNMENT AGENCIES TO  ADMINISTER
LOAN  POOLS.  AGREEMENTS  SHALL  BE  ENTERED INTO WITH NO MORE THAN FOUR
ORGANIZATIONS AND/OR AGENCIES, NO  MORE  THAN  ONE  OF  WHICH  SHALL  BE
LOCATED IN THE CITY OF NEW YORK.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03584-01-9
              

S. 415                              2

  3.  PROGRAM  SITES SHALL BE APPROVED BASED ON THE DEMONSTRATED ABILITY
OF THE ORGANIZATION  OR  GOVERNMENTAL  AGENCY  TO  SECURE  FUNDING  FROM
PRIVATE  AND/OR PUBLIC SOURCES SUFFICIENT TO ESTABLISH A LOAN POOL TO BE
MAINTAINED THROUGH REPAYMENT AGREEMENTS ENTERED INTO BY ELIGIBLE LOW-IN-
COME  INDIVIDUALS.  FUNDS AWARDED BY THE DEPARTMENT OF LABOR TO APPROVED
PROGRAM SITES SHALL BE USED FOR THE EXPRESS PURPOSES OF COVERING  STAFF-
ING  AND  ADMINISTRATION  COSTS  ASSOCIATED  WITH ADMINISTERING THE LOAN
POOL.
  S 2. A program site, as provided in subdivision 3 of section 131-bb of
the social services law, as added by section one  of  this  act,  shall,
within one year of receiving approval by the department of labor, report
to  the department of labor on the utilization of the loan pool, includ-
ing but not limited to, the number  and  average  amount  of  the  loans
awarded,  the rate of repayment on the loans, the purposes for which the
loans were awarded, the financial circumstance of persons receiving  the
loans,  and  the  number  of  persons  receiving  loans who subsequently
required public assistance. The department of labor  shall  provide  the
findings to the temporary president of the senate and the speaker of the
assembly within one month of receiving the reports.
  S 3. This act shall take effect immediately.