Bill S1188-2013

Establishes a community capital loan program

Provides that the department of labor in consultation with the department of family assistance is authorized and directed to solicit proposals to establish community loan programs providing small, no-interest loans to persons with income below 200% of the federal poverty level in order to become self-employed; requires the commissioner to contract with not-for-profit corps to administer loan pools.

Details

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  • Jan 8, 2014: REFERRED TO SOCIAL SERVICES
  • Jan 9, 2013: REFERRED TO SOCIAL SERVICES

Memo

BILL NUMBER:S1188

TITLE OF BILL: 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

PURPOSE: To allow individuals on public assistance and the working poor to qualify for small, low-interest loans for the purpose of becoming self-employed.

SUMMARY OF PROVISIONS: Section 1 amends the social services law by adding a new section 131-bb, which does the following:

Subdivision 1 authorizes the Department of Labor to solicit proposals to establish programs to be known as community capital loan program? Such programs shall provide small, low interest loans to persons with incomes below two hundred percent of the federal poverty level for the purpose of assisting the loan recipient to become self-employed. Such loans shall not constitute income or resources for the purposes of public assistance so long as the funds are used for the intended purpose;

Subdivision 2 authorizes the Commissioner of Labor to enter into written agreements with not-for-profit organizations or local government agencies (program site) for the purpose of administering loan pools; Subdivision 3 designates how sites will be approved and how funds will be applied.

Section 2 outlines the necessary information to be reported by the program site to the Department of Labor, and from the Department of Labor to the Legislature.

JUSTIFICATION: With more individuals moving from welfare to work, it is necessary to create stable, decent-paying jobs that will allow individuals to remain off public assistance. One way to address this problem is by encouraging self-employment for those who have the capability. Several agencies in Albany County have indicated that they would like to provide loans to welfare recipients for the purpose of becoming self-employed. Further, as large corporations downsize, small business is one of the fastest growing employment sectors in our economy. Facilitating self-employment for both welfare recipients and the working poor will allow them to enter this growing field. Creating a "community capital loan program" would benefit welfare recipients across the state. It may also prevent certain low-income individuals from ever becoming dependent on public assistance.

LEGISLATIVE HISTORY:; 2011-2012 - S.1444 Remained in the Senate Committee on Social Services 2009/2010 - S.415 Senate Committee on Social Services, Children, and Families discharged and Committed to Social Services 2007/2008 - S.742 Remained in the Senate Committee on Social

Services, Children and Families 2005/2006 - S.234 Remained in the Senate Committee on Social Services, Children and Families

FISCAL IMPLICATIONS:; None.

EFFECTIVE DATE:; Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 1188 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sens. BRESLIN, ADAMS, DILAN, HASSELL-THOMPSON, KRUEGER, 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 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.

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