S T A T E O F N E W Y O R K ________________________________________________________________________ 8889 I N A S S E M B L Y (PREFILED) January 4, 2012 ___________ Introduced by M. of A. QUART -- read once and referred to the Committee on Economic Development 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: 1 Section 1. Short title. This act shall be known and may be cited as 2 the "microenterprise development act". 3 S 2. Legislative findings and purpose. (a) The legislature finds as 4 follows: 5 1. Development and expansion of businesses in economically distressed 6 communities in both rural and urban areas can assist residents who are 7 unemployed, underemployed or in low-income jobs. 8 2. Microenterprises provide a means for unemployed, underemployed or 9 low-income individuals to find and sustain productive work, and they 10 provide opportunities for economically distressed communities to thrive. 11 3. Low-income microentrepreneurs lack access to capital, training and 12 technical assistance. Many low-income microentrepreneurs need lending 13 services and technical assistance to start, operate or expand their 14 businesses. 15 4. Local microenterprise support organizations have demonstrated cost- 16 effective delivery methods for providing lending services and technical 17 assistance. 18 5. Charitable foundation support, federal program funding and private 19 sector support can be leveraged by a statewide program for development 20 of microenterprises. 21 (b) The purpose of this act is to strengthen the state economy and 22 enable low-income residents to become self-sufficient by encouraging 23 microenterprise development. 24 S 3. The economic development law is amended by adding a new article 25 9-B to read as follows: 26 ARTICLE 9-B 27 MICROENTERPRISE DEVELOPMENT EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00662-01-1 A. 8889 2 1 SECTION 217. MICROENTERPRISE DEVELOPMENT. 2 S 217. MICROENTERPRISE DEVELOPMENT. (A) AS USED IN THIS SECTION, THE 3 FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 4 1. "COMMISSIONER" MEANS THE COMMISSIONER OF THE DEPARTMENT OF ECONOMIC 5 DEVELOPMENT. 6 2. "MICROENTERPRISE" MEANS A SOLE PROPRIETORSHIP, PARTNERSHIP, OR 7 CORPORATION THAT HAS FEWER THAN FOUR EMPLOYEES AND GENERALLY LACKS 8 ACCESS TO CONVENTIONAL LOANS, EQUITY, OR OTHER BANKING SERVICES. 9 3. "MICROENTERPRISE DEVELOPMENT ORGANIZATION" OR "MICROENTERPRISE 10 DEVELOPMENT PROGRAM" MEANS A NONPROFIT ENTITY OR A PROGRAM ADMINISTERED 11 BY SUCH AN ENTITY, INCLUDING COMMUNITY DEVELOPMENT CORPORATIONS OR OTHER 12 NONPROFIT DEVELOPMENT ORGANIZATIONS AND SOCIAL SERVICE ORGANIZATIONS, 13 THAT PROVIDES SERVICES TO LOW-INCOME MICROENTERPRISES. 14 4. "TRAINING AND TECHNICAL ASSISTANCE" MEANS SERVICES AND SUPPORT 15 PROVIDED TO LOW-INCOME OWNERS AND OPERATORS OF MICROENTERPRISES, SUCH AS 16 ASSISTANCE FOR THE PURPOSE OF ENHANCING BUSINESS PLANNING, MARKETING 17 MANAGEMENT, FINANCIAL MANAGEMENT SKILLS, AND ASSISTANCE FOR THE PURPOSE 18 OF ACCESSING FINANCIAL SERVICES. 19 5. "LOW-INCOME PERSON" MEANS A PERSON WITH INCOME ADJUSTED FOR FAMILY 20 SIZE THAT DOES NOT EXCEED: 21 A. FOR METROPOLITAN AREAS, EIGHTY PERCENT OF MEDIAN INCOME; OR 22 B. FOR NONMETROPOLITAN AREAS, THE GREATER OF EIGHTY PERCENT OF THE 23 AREA MEDIAN INCOME OR EIGHTY PERCENT OF THE STATEWIDE NONMETROPOLITAN 24 AREA MEDIAN INCOME. 25 (B) 1. THE COMMISSIONER SHALL ESTABLISH A MICROENTERPRISE TECHNICAL 26 ASSISTANCE AND CAPACITY BUILDING GRANT PROGRAM, WHICH SHALL RECEIVE AN 27 ANNUAL APPROPRIATION FROM THE LEGISLATURE OF NO LESS THAN ONE MILLION 28 DOLLARS, TO PROVIDE ASSISTANCE IN THE FORM OF GRANTS TO MICROENTERPRISE 29 DEVELOPMENT ORGANIZATIONS. 30 2. A MICROENTERPRISE DEVELOPMENT ORGANIZATION SHALL USE GRANTS MADE 31 UNDER THIS PROGRAM TO PROVIDE TRAINING AND TECHNICAL ASSISTANCE TO LOW- 32 INCOME ENTREPRENEURS OPERATING MICROENTERPRISES. 33 3. THE COMMISSIONER SHALL ENSURE THAT NOT LESS THAN FIFTY PERCENT OF 34 THE FUNDS MADE AVAILABLE ARE USED TO BENEFIT PERSONS WHOSE INCOME, 35 ADJUSTED FOR FAMILY SIZE, IS NOT MORE THAN ONE HUNDRED FIFTY PERCENT OF 36 THE POVERTY LINE AS DEFINED IN 42 U.S.C. 9902(2). 37 4. A MICROENTERPRISE DEVELOPMENT ORGANIZATION MUST PROVIDE AT LEAST 38 ONE DOLLAR IN MATCHING FUNDS FOR EVERY DOLLAR OF STATE FINANCIAL ASSIST- 39 ANCE. FEES, GRANTS, AND GIFTS FROM PUBLIC OR PRIVATE SOURCES MAY BE USED 40 TO COMPLY WITH THE MATCHING FUNDS REQUIREMENT. 41 5. THE COMMISSIONER SHALL ESTABLISH BY REGULATION SUCH REQUIREMENTS AS 42 MAY BE NECESSARY TO CARRY OUT THE PROVISIONS OF THIS SECTION. 43 S 4. The sum of one million five hundred thousand dollars 44 ($1,500,000), or so much thereof as may be necessary, is hereby appro- 45 priated to the department of economic development out of any moneys in 46 the state treasury in the general fund to the credit of the state 47 purposes account, not otherwise appropriated, and made immediately 48 available, for the purpose of carrying out the provisions of this act. 49 Such moneys shall be payable on the audit and warrant of the comptroller 50 on vouchers certified or approved by the commissioner of economic devel- 51 opment, or his or her designee, in the manner prescribed by law. 52 S 5. This act shall take effect on the first of July next succeeding 53 the date on which it shall have become a law.