Bill S1530-2013

Requires state economic development agencies to provide preferences to small businesses and entrepreneurs in the programs that they administer

Requires the department of economic development, job development authority, and urban development corporation to provide preferences to small businesses and entrepreneurs in the administration of their economic development assistance programs; requires annual reports thereon.

Details

Actions

  • Jan 8, 2014: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • Jun 21, 2013: COMMITTED TO RULES
  • May 20, 2013: ADVANCED TO THIRD READING
  • May 8, 2013: 2ND REPORT CAL.
  • May 7, 2013: 1ST REPORT CAL.581
  • Jan 9, 2013: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Votes

VOTE: COMMITTEE VOTE: - Commerce, Economic Development and Small Business - May 7, 2013
Ayes (10): Valesky, Boyle, Gallivan, Felder, Fuschillo, Griffo, Robach, Kennedy, Sanders, O'Brien
Ayes W/R (1): Hassell-Thompson

Memo

BILL NUMBER:S1530

TITLE OF BILL: An act to amend the economic development law, the public authorities law and the New York state urban development corporation act, in relation to providing a preference to small businesses and entrepreneurs in the award of state economic development assistance

PURPOSE OR GENERAL IDEA OF BILL: To require that State economic development agencies give preference to the small businesses and entrepreneurs in the award of State economic development assistance.

SUMMARY OF SPECIFIC PROVISIONS: This bill would direct the Department of Economic Development, the Job Development Authority, the New York State Office of Science, Technology and Academic Research and the Urban Development Corporation to give preference to small businesses and entrepreneurs seeking State economic development funds.

This bill would require that within each statutory economic development program, the State agency or authority actively market the program to small businesses and entrepreneurs, assist small businesses and entrepreneurs in accessing the program, and in the review of applications for program funds, give priority to those applications from small businesses and entrepreneurs. The bill would also require each State economic development agency to report annually on activities undertaken to provide small businesses and entrepreneurs with a preference in the award of funds, and to list those businesses and entrepreneurs.

This bill would amend the economic development law, the public authorities law with respect to the Job Development Authority and the New York State Office of Science, Technology and Academic Research and the Urban Development Corporation Act.

JUSTIFICATION: Small businesses and entrepreneurs create eight out of every ten new jobs in New York State. Although many State economic development Programs have been created specifically to assist small businesses and entrepreneurs in creating or retaining jobs, in reality larger businesses often have a competitive advantage in accessing State assistance, with greater levels of resources and in-house expertise. Often times state economic development agencies also display a clear preference for larger, higher-profile capital projects at the expense of small business formation and growth.

This bill would vest each State economic development agency and each State economic development program with the mission of ensuring that small businesses and entrepreneurs are provided with the information and assistance they require accessing every state economic development program. The bill would also direct each state economic

development agency to evaluate applications for financial assistance with the goal of ensuring that small businesses and entrepreneurs receive priority consideration in the award of limited state funds.

By establishing a clear preference in the award of State economic development funds to small businesses and entrepreneurs, the state may more effectively target its limited economic development resources to those businesses in greatest need of assistance and with greatest job creation potential.

PRIOR LEGISLATIVE HISTORY: 2004: Senate Commerce Cmte./Passed Assembly 2005-06: Senate Commerce Cmte./Passed Assembly 2007-08: Passed Senate/Passed Assembly 2009-10: S.3802 Commerce, Economic Development & Small Business Cmte. 2011-12: S.4410 Passed Senate 2011; Committed to Rules in 2012 / Assembly Ways and Means

FISCAL IMPLICATIONS: No fiscal implications have been identified.

EFFECTIVE DATE: Immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 1530 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________
Introduced by Sens. FLANAGAN, DeFRANCISCO, LARKIN, MARTINS -- read twice and ordered printed, and when printed to be committed to the Committee on Commerce, Economic Development and Small Business AN ACT to amend the economic development law, the public authorities law and the New York state urban development corporation act, in relation to providing a preference to small businesses and entrepreneurs in the award of state economic development assistance THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The economic development law is amended by adding a new section 101-a to read as follows: S 101-A. PREFERENCES TO SMALL BUSINESSES AND ENTREPRENEURS. IN EACH PROGRAM ADMINISTERED BY OR ON BEHALF OF THE DEPARTMENT PURSUANT TO AN APPROPRIATION OF FUNDS, AND CONSISTENT WITH ANY STATUTE GOVERNING SUCH PROGRAM, PREFERENCE SHALL BE GIVEN TO THE AWARD OF SUCH FUNDS TO SMALL BUSINESSES AND ENTREPRENEURS. SUCH PREFERENCE SHALL INCLUDE, BUT NOT BE LIMITED TO, ACTIVE MARKETING OF THE PROGRAM SPECIFICALLY TO SMALL BUSI- NESSES AND ENTREPRENEURS, PROVIDING ASSISTANCE TO INDIVIDUAL SMALL BUSI- NESSES AND ENTREPRENEURS IN ACCESSING AVAILABLE FUNDS UNDER THE PROGRAM, AND ESTABLISHING AND WORKING TO MEET THE GOAL OF AWARDING TWENTY PERCENT OF AVAILABLE FUNDS UNDER THE PROGRAM TO SMALL BUSINESSES AND ENTREPRE- NEURS. FOR PURPOSES OF THIS SECTION, THE TERM "ENTREPRENEUR" SHALL MEAN A PERSON WHO ORGANIZES, OPERATES, AND ASSUMES THE RISK OF A START-UP BUSINESS VENTURE. THE DEPARTMENT SHALL INCLUDE IN THE ANNUAL REPORT REQUIRED PURSUANT TO SUBDIVISION THIRTY-SEVEN-A OF SECTION ONE HUNDRED OF THIS ARTICLE A DESCRIPTION OF ACTIVITIES, A LISTING OF PROPOSALS RECEIVING FINANCIAL ASSISTANCE PURSUANT TO THIS SECTION AND IDENTIFY WHETHER THE TWENTY PERCENT GOAL WAS MET FOR EACH PROGRAM. S 2. Section 1823 of the public authorities law is amended by adding a new subdivision 8 to read as follows:
8. IN EACH PROGRAM ADMINISTERED BY OR ON BEHALF OF THE AUTHORITY, AND CONSISTENT WITH ANY STATUTE GOVERNING SUCH PROGRAM, PREFERENCE SHALL BE GIVEN TO THE AWARD OF SUCH FUNDS TO SMALL BUSINESSES AND ENTREPRENEURS. SUCH PREFERENCE SHALL INCLUDE, BUT NOT BE LIMITED TO, ACTIVE MARKETING OF THE PROGRAM SPECIFICALLY TO SMALL BUSINESSES AND ENTREPRENEURS, PROVIDING ASSISTANCE TO INDIVIDUAL SMALL BUSINESSES AND ENTREPRENEURS IN ACCESSING AVAILABLE FUNDS UNDER THE PROGRAM, AND ESTABLISHING AND WORK- ING TO MEET THE GOAL OF AWARDING TWENTY PERCENT OF AVAILABLE FUNDS UNDER THE PROGRAM TO SMALL BUSINESSES AND ENTREPRENEURS. FOR PURPOSES OF THIS SUBDIVISION, THE TERM "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION ONE HUNDRED THIRTY-ONE OF THE ECONOMIC DEVELOPMENT LAW AND THE TERM "ENTREPRENEUR" SHALL MEAN A PERSON OR PERSONS WHO ORGANIZES, OPERATES, AND ASSUMES THE RISK OF A START-UP BUSINESS VENTURE. THE AUTHORITY SHALL INCLUDE IN THE ANNUAL PROGRAM REPORT REQUIRED PURSUANT TO SECTION EIGHTEEN HUNDRED TWENTY-NINE-A OF THIS TITLE A DESCRIPTION OF ACTIVITIES, A LISTING OF PROPOSALS PROVIDED WITH FINANCIAL ASSISTANCE PURSUANT TO THIS SECTION AND IDENTIFY WHETHER THE TWENTY PERCENT GOAL WAS MET FOR EACH PROGRAM. S 3. Section 1 of chapter 174 of the laws of 1968 constituting the New York state urban development corporation act is amended by adding a new section 4-a to read as follows: S 4-A. PREFERENCES TO SMALL BUSINESSES AND ENTREPRENEURS. IN EACH PROGRAM ADMINISTERED BY OR ON BEHALF OF THE CORPORATION PURSUANT TO AN APPROPRIATION OF FUNDS, AND CONSISTENT WITH ANY STATUTE GOVERNING SUCH PROGRAM, PREFERENCE SHALL BE GIVEN TO THE AWARD OF SUCH FUNDS TO SMALL BUSINESSES AND ENTREPRENEURS. SUCH PREFERENCE SHALL INCLUDE, BUT NOT BE LIMITED TO, ACTIVE MARKETING OF THE PROGRAM SPECIFICALLY TO SMALL BUSI- NESSES AND ENTREPRENEURS, PROVIDING ASSISTANCE TO INDIVIDUAL SMALL BUSI- NESSES AND ENTREPRENEURS IN ACCESSING AVAILABLE FUNDS UNDER THE PROGRAM, AND ESTABLISHING AND WORKING TO MEET THE GOAL OF AWARDING TWENTY PERCENT OF AVAILABLE FUNDS UNDER THE PROGRAM TO SMALL BUSINESSES AND ENTREPRE- NEURS. FOR PURPOSES OF THIS SECTION, THE TERM "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS PROVIDED IN SECTION 131 OF THE ECONOMIC DEVEL- OPMENT LAW AND THE TERM "ENTREPRENEUR" SHALL MEAN A PERSON OR PERSONS WHO ORGANIZES, OPERATES, AND ASSUMES THE RISK OF A START-UP BUSINESS VENTURE. THE CORPORATION SHALL INCLUDE IN THE ANNUAL PROGRAM REPORT REQUIRED PURSUANT TO SECTION THIRTY OF THIS ACT A DESCRIPTION OF ACTIV- ITIES, A LISTING OF PROPOSALS PROVIDED WITH FINANCIAL ASSISTANCE PURSU- ANT TO THIS SECTION AND IDENTIFY WHETHER THE TWENTY PERCENT GOAL WAS MET FOR EACH PROGRAM. S 4. This act shall take effect immediately.

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