S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6892
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                            September 29, 2017
                                ___________
 
 Introduced  by  Sen. KENNEDY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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:

   Section  1.  Short  title. This act shall be known and may be cited as
 the "microenterprise development act".
   § 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  are important elements of New York's economy and
 play an essential role in job creation, entrepreneurial  skill  develop-
 ment, and enhancing the ability of low-income households to become self-
 sufficient.    Microenterprises provide a means for unemployed, underem-
 ployed or low-income individuals to find and  sustain  productive  work,
 and  they  provide opportunities for economically distressed communities
 to thrive.
   3. Microentrepreneurs, especially those with low incomes, often do not
 have access to commercial credit because of lack of business  experience
 or  training, collateral to secure business loans, or lack of history of
 business records to demonstrate their loan repayment potential.
   4. Local community-based microenterprise  support  organizations  have
 demonstrated  cost-effective  delivery  methods for providing financial,
 business, and technical  assistance,  including  microloans,  mentoring,
 physical space and other essential services to microenterprises.
   5.  Charitable foundation support, federal program funding and private
 sector support can be leveraged by a statewide program  for  development
 of microenterprises.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08900-01-7

 S. 6892                             2
 
   (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.
   §  3.  The economic development law is amended by adding a new article
 9-B to read as follows:
                                ARTICLE 9-B
                        MICROENTERPRISE DEVELOPMENT
 SECTION 217. MICROENTERPRISE DEVELOPMENT.
   § 217. MICROENTERPRISE DEVELOPMENT. (A) THERE IS HEREBY ESTABLISHED  A
 MICROENTERPRISE DEVELOPMENT PROGRAM UNDER THE PURVIEW OF THE DEPARTMENT.
 SUCH PROGRAM SHALL PROVIDE MICROENTERPRISES WITH FINANCIAL, BUSINESS, OR
 TECHNICAL  ASSISTANCE,  INCLUDING, BUT NOT LIMITED TO, ACCESS TO FINANC-
 ING, MENTORING, TRAINING OR ACQUIRING PHYSICAL SPACE.
   (B) AS USED IN THIS  SECTION,  THE  FOLLOWING  TERMS  SHALL  HAVE  THE
 FOLLOWING MEANINGS:
   1.    "MICROENTERPRISE"  MEANS  ANY BUSINESS, WHETHER NEW OR EXISTING,
 THAT IS A SOLE PROPRIETORSHIP, PARTNERSHIP,  OR  CORPORATION  WHICH  HAS
 FIVE OR LESS EMPLOYEES.
   2.  "MICROENTERPRISE DEVELOPMENT ORGANIZATION" MEANS A COMMUNITY-BASED
 ORGANIZATION, OR SOCIAL SERVICE ORGANIZATION, OR OTHER NONPROFIT  ENTITY
 THAT HAS DEVELOPED A PROGRAM TO PROVIDE MICROENTERPRISES WITH FINANCIAL,
 BUSINESS, OR TECHNICAL ASSISTANCE, INCLUDING, BUT NOT LIMITED TO, ACCESS
 TO FINANCING, MENTORING, TRAINING, OR ACQUIRING PHYSICAL SPACE.
   3.  "TRAINING  AND  TECHNICAL  ASSISTANCE"  MEANS SERVICES AND SUPPORT
 PROVIDED TO  MICROENTERPRISES,  ESPECIALLY  THOSE  THAT  ARE  LOW-INCOME
 OWNERS,  FOR  ENHANCING  BUSINESS  PLANNING,  MARKETING  MANAGEMENT, AND
 IMPROVING FINANCIAL MANAGEMENT SKILLS,  FOR  THE  PURPOSE  OF  ACCESSING
 FINANCIAL SERVICES, SUCH AS LOANS, MICROLOANS AND GRANTS.
   4.  "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  OF  THE
 METROPOLITAN AREA; 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.
   (C)  1.  THE COMMISSIONER IS AUTHORIZED TO ESTABLISH A MICROENTERPRISE
 TECHNICAL ASSISTANCE AND CAPACITY  BUILDING  GRANT  PROGRAM  TO  PROVIDE
 ASSISTANCE  IN  THE  FORM  OF  GRANTS  OF UP TO FIVE THOUSAND DOLLARS TO
 MICROENTERPRISE DEVELOPMENT ORGANIZATIONS TO USE  AS  PROVIDED  IN  THIS
 SUBDIVISION FROM AVAILABLE APPROPRIATIONS.
   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 ASSIST MICROENTERPRISES TO ACCESS EXISTING
 GRANTS, LOANS, AND OTHER PROGRAMS AND SERVICES CURRENTLY AVAILABLE  FROM
 ANY  STATE  ENTITY.  FURTHER,  THE  COMMISSIONER  SHALL ACTIVELY SEEK TO
 ENCOURAGE PRIVATE FINANCIAL INSTITUTIONS TO MAKE  LOANS  TO  MICROENTER-
 PRISES.

 S. 6892                             3
 
   §  4.  Rules and regulations. The commissioner of economic development
 is authorized to promulgate rules and regulations in accordance with the
 state administrative procedure act that are  necessary  to  fulfill  the
 purposes  of  this  act.  Such  rules and regulations shall be completed
 within one hundred eighty days after the effective date of this act.
   § 5. This act shall take effect July 1, 2018.