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.

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S1188-2013 Actions

• Jan 9, 2013: REFERRED TO SOCIAL SERVICES

S1188-2013 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.

S1188-2013 Text

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

                                    1188

                         2013-2014 Regular Sessions

                              I N  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

   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD01803-01-3

 S. 1188                             2

  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.