senate Bill S1224

2013-2014 Legislative Session

Establishes the microenterprise development act to assist very small businesses and low-income business people

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 08, 2014 referred to finance
Jan 09, 2013 referred to finance

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S1224 - Bill Details

See Assembly Version of this Bill:
A2248
Current Committee:
Senate Finance
Law Section:
Appropriations
Laws Affected:
Add Art 9-B ยง217, Ec Dev L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S4202, A1117, A8889
2009-2010: A1639

S1224 - Bill Texts

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Establishes the microenterprise development act to assist very small businesses and low-income business people; appropriates funds therefor.

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BILL NUMBER:S1224

TITLE OF BILL: An act to amend the economic development law, in
relation to microenterprise development; and making an appropriation
therefor

PURPOSE OR GENERAL IDEA OF BILL:
Establishes the microenterprise development act to assist very small
businesses and low-income entrepreneurs.

SUMMARY OF SPECIFIC PROVISIONS:
This bill amends the economic development law by adding a new article
9-B. Section 217(a) provides definitions for terms. Section 217(b) (1)
requires the commissioner of the department of economic development to
establish a grant program for microenterprise technical assistance. In
addition, it mandates an annual appropriation of no less than one
million dollars. Subparagraph (2) establishes that the organizations
receiving funding shall use the grants to provide training and
technical assistance to the microenterprise entrepreneurs.
Subparagraph (3) provides that not less than fifty percent of the
funds made available are used to benefit person whose income is not
more than 150% of the poverty line as defined in 42 use 9902(2).
Subparagraph (4) requires the training organizations to have received
at least one dollar in matching funds for every dollar received from
the state. Section 4 of the legislation requires an initial allocation
of $1.5 million.

JUSTIFICATION:
Development and expansion of businesses in economically distressed
communities in both rural and urban areas can assist residents who are
unemployed, underemployed or in low-income jobs. Microenterprises are
an important factor is addressing this need for development. However,
many low-income entrepreneurs lack access to capital, training and
technical assistance. This legislation will provide vital funding to
local support organizations that can leverage charitable foundation
and private sector support, to provide the much needed these
entrepreneurs with vital assistance.

The recent awarding of the Nobel Peace Prize to Muhammad Yunus, a
pioneer in microfinancing, has brought attention to the lack of
financing for these well deserving businesses. An estimated 22 million
micro enterprises operate throughout the country, and provide 18% of
all private U.S. employment. This legislation will strengthen the
state economy by enabling new businesses and giving them the tools
needed to succeed.

PRIOR LEGISLATIVE HISTORY:
2011-12: S.4204 Referred to Finance
2009-10: A.1639 Referred to Economic Development
2007-08: Referred to Economic Development

FISCAL IMPLICATIONS:
$1.5 million appropriation.

EFFECTIVE DATE:


This act shall take effect on the first of July next
succeeding the date on which it shall have become law.

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                    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:

  Section  1.  Short  title. This act shall be known and may be cited as
the "microenterprise development act".
  S 2. Legislative findings and purpose. (a) The  legislature  finds  as
follows:
  1.  Development and expansion of businesses in economically distressed
communities in both rural and urban areas can assist residents  who  are
unemployed, underemployed or in low-income jobs.
  2.  Microenterprises  provide a means for unemployed, underemployed or
low-income individuals to find and sustain  productive  work,  and  they
provide opportunities for economically distressed communities to thrive.
  3.  Low-income microentrepreneurs lack access to capital, training and
technical assistance. Many low-income  microentrepreneurs  need  lending
services  and  technical  assistance  to  start, operate or expand their
businesses.
  4. Local microenterprise support organizations have demonstrated cost-
effective delivery methods for providing lending services and  technical
assistance.
  5.  Charitable foundation support, federal program funding and private
sector support can be leveraged by a statewide program  for  development
of microenterprises.
  (b)  The  purpose  of  this act is to strengthen the state economy and
enable low-income residents to  become  self-sufficient  by  encouraging
microenterprise development.
  S  3.  The economic development law is amended by adding a new article
9-B to read as follows:
                               ARTICLE 9-B
                       MICROENTERPRISE DEVELOPMENT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD04143-01-3

S. 1224                             2

SECTION 217. MICROENTERPRISE DEVELOPMENT.
  S  217.  MICROENTERPRISE DEVELOPMENT. (A) AS USED IN THIS SECTION, THE
FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC
DEVELOPMENT.
  2. "MICROENTERPRISE" MEANS  A  SOLE  PROPRIETORSHIP,  PARTNERSHIP,  OR
CORPORATION  THAT  HAS  FEWER  THAN  FOUR  EMPLOYEES AND GENERALLY LACKS
ACCESS TO CONVENTIONAL LOANS, EQUITY, OR OTHER BANKING SERVICES.
  3.  "MICROENTERPRISE  DEVELOPMENT  ORGANIZATION"  OR  "MICROENTERPRISE
DEVELOPMENT  PROGRAM" MEANS A NONPROFIT ENTITY OR A PROGRAM ADMINISTERED
BY SUCH AN ENTITY, INCLUDING COMMUNITY DEVELOPMENT CORPORATIONS OR OTHER
NONPROFIT DEVELOPMENT ORGANIZATIONS AND  SOCIAL  SERVICE  ORGANIZATIONS,
THAT PROVIDES SERVICES TO LOW-INCOME MICROENTERPRISES.
  4.  "TRAINING  AND  TECHNICAL  ASSISTANCE"  MEANS SERVICES AND SUPPORT
PROVIDED TO LOW-INCOME OWNERS AND OPERATORS OF MICROENTERPRISES, SUCH AS
ASSISTANCE FOR THE PURPOSE OF  ENHANCING  BUSINESS  PLANNING,  MARKETING
MANAGEMENT,  FINANCIAL MANAGEMENT SKILLS, AND ASSISTANCE FOR THE PURPOSE
OF ACCESSING FINANCIAL SERVICES.
  5. "LOW-INCOME PERSON" MEANS A PERSON WITH INCOME ADJUSTED FOR  FAMILY
SIZE THAT DOES NOT EXCEED:
  A. FOR METROPOLITAN AREAS, EIGHTY PERCENT OF MEDIAN INCOME; OR
  B.  FOR  NONMETROPOLITAN  AREAS,  THE GREATER OF EIGHTY PERCENT OF THE
AREA MEDIAN INCOME OR EIGHTY PERCENT OF  THE  STATEWIDE  NONMETROPOLITAN
AREA MEDIAN INCOME.
  (B)  1.  THE  COMMISSIONER SHALL ESTABLISH A MICROENTERPRISE TECHNICAL
ASSISTANCE AND CAPACITY BUILDING GRANT PROGRAM, WHICH SHALL  RECEIVE  AN
ANNUAL  APPROPRIATION  FROM  THE LEGISLATURE OF NO LESS THAN ONE MILLION
DOLLARS, TO PROVIDE ASSISTANCE IN THE FORM OF GRANTS TO  MICROENTERPRISE
DEVELOPMENT ORGANIZATIONS.
  2.  A  MICROENTERPRISE  DEVELOPMENT ORGANIZATION SHALL USE GRANTS MADE
UNDER THIS PROGRAM TO PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO  LOW-
INCOME ENTREPRENEURS OPERATING MICROENTERPRISES.
  3.  THE  COMMISSIONER SHALL ENSURE THAT NOT LESS THAN FIFTY PERCENT OF
THE FUNDS MADE AVAILABLE ARE  USED  TO  BENEFIT  PERSONS  WHOSE  INCOME,
ADJUSTED  FOR FAMILY SIZE, IS NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF
THE POVERTY LINE AS DEFINED IN 42 U.S.C. 9902(2).
  4. A MICROENTERPRISE DEVELOPMENT ORGANIZATION MUST  PROVIDE  AT  LEAST
ONE DOLLAR IN MATCHING FUNDS FOR EVERY DOLLAR OF STATE FINANCIAL ASSIST-
ANCE. FEES, GRANTS, AND GIFTS FROM PUBLIC OR PRIVATE SOURCES MAY BE USED
TO COMPLY WITH THE MATCHING FUNDS REQUIREMENT.
  5. THE COMMISSIONER SHALL ESTABLISH BY REGULATION SUCH REQUIREMENTS AS
MAY BE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION.
  S   4.   The   sum  of  one  million  five  hundred  thousand  dollars
($1,500,000), or so much thereof as may be necessary, is  hereby  appro-
priated  to  the department of economic development out of any moneys in
the state treasury in the general  fund  to  the  credit  of  the  state
purposes  account,  not  otherwise  appropriated,  and  made immediately
available, for the purpose of carrying out the provisions of  this  act.
Such moneys shall be payable on the audit and warrant of the comptroller
on vouchers certified or approved by the commissioner of economic devel-
opment, or his or her designee, in the manner prescribed by law.
  S  5.  This act shall take effect on the first of July next succeeding
the date on which it shall have become a law.

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