S T A T E   O F   N E W   Y O R K
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                                  1444

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             January 7, 2011
                               ___________

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

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.
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD05127-01-1
              

S. 1444                             2

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.