Bill S2825-2011

Creates the micro business outreach center assistance program and micro business outreach center

Creates the micro business outreach center assistance program within the department of economic development, and provides for its functions, powers and duties; further creates the micro business outreach center network; establishes a reporting requirement by the commissioner of economic development.

Details

Actions

  • Jan 4, 2012: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS
  • Feb 2, 2011: REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL BUSINESS

Memo

BILL NUMBER:S2825

TITLE OF BILL: An act to amend the economic development law, in relation to creating the micro business outreach center assistance program

PURPOSE OR GENERAL IDEA OF BILL: To create a means of supporting existing business outreach centers and creating additional centers that are serving micro enterprises as well as providing them with the opportunity to facilitate individuals of communities that are geographically and socially isolated from the mainstream economy with access to economic development counseling services and funds.

SUMMARY OF SPECIFIC PROVISIONS: Adds a new article 9-b to the economic development law thereby creating the micro business outreach center assistance program.

JUSTIFICATION: Small businesses are the backbone of every community. In this difficult economy small businesses are the source of the majority of new jobs. Daily, more and more individuals realize the opportunities that exist for people who have their own businesses and the benefits that such small businesses provide to the surrounding community. In New York State there are many people that have a talent or idea that could become a very successful enterprise if only they knew how to implement it. These are the types of people who are potential micro enterprise owners proprietors of businesses that begin with five or less employees, require less than $35,000 in start-up capital, and do not have access to the traditional commercial banking sector.

Business outreach centers take hard working men and women who may not have the knowledge or experience of how to create a micro business and provide them with the tools they need to start an enterprise; whether it is teaching the individual how to write a business plan or matching the eager entrepreneur with a reasonable loan. With the help of business outreach centers the American dream is actually achievable. These programs are most helpful to minorities, women, and immigrant communities who might not have access to capital and are therefore ineligible to receive loans in the eyes of most major lending companies.

The Small Business Association has reported that women of color start businesses at six times the rate of men, and since 1997 the number of women owned businesses in New York City alone has grown by over 21 %. This has been able to occur through the hard work of centers that are already in existence in the New York Metropolitan area. Studies by the Aspen Institute have even shown that these types of services help move the working-poor out of poverty. When women, immigrant, and minority populations have the opportunity to become successful, self supporting business people that cater to the needs of their individual communities, local areas are revitalized and the entire State benefits.

This legislation ensures that business outreach centers serving micro enterprises will be able to receive federal funding as well as provide the opportunity and benefits of these services to a greater population throughout New York State thereby increasing both community wealth and employment opportunities. The State has historically been financially supportive of many such programs and this legislation seeks to ensure that such support continues into the future and is provided to a greater population.

LEGISLATIVE HISTORY: 2009 - S.5639 - Veto 63 2010 - S.7968 - Passed Senate

FISCAL IMPLICATIONS: To be determined.

EFFECTIVE DATE: This act shall take effect on the one hundred eightieth day after it shall become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 2825 2011-2012 Regular Sessions IN SENATE February 2, 2011 ___________
Introduced by Sens. STEWART-COUSINS, ESPAILLAT, HANNON, MONTGOMERY, OPPENHEIMER, SMITH -- 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, in relation to creating the micro business outreach center assistance program 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 article 9-B to read as follows: ARTICLE 9-B MICRO BUSINESS OUTREACH CENTER ASSISTANCE PROGRAM SECTION 216. DEFINITIONS. 217. MICRO BUSINESS OUTREACH CENTERS. 218. MICRO BUSINESS OUTREACH CENTER NETWORK. 219. REPORTING REQUIREMENT. S 216. DEFINITIONS. FOR THE PURPOSES OF THIS ARTICLE THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS: 1. "MICRO BUSINESS" SHALL MEAN A SOLE PROPRIETORSHIP, PARTNERSHIP OR FAMILY BUSINESS THAT HAS FEWER THAN FIVE EMPLOYEES. 2. "MICRO BUSINESS OUTREACH CENTERS" SHALL MEAN A BUSINESS OUTREACH CENTER THAT SERVES THE BUSINESS DEVELOPMENT NEEDS OF SPECIFIC COMMUNI- TIES. 3. "MICRO BUSINESS OUTREACH CENTER NETWORK" SHALL MEAN A NETWORK OF BUSINESS OUTREACH CENTERS THAT PROVIDES SERVICES THROUGHOUT A REGION AND HELPS DEVELOP AND ASSIST INDIVIDUAL MICRO-ENTERPRISE/SMALL BUSINESS DEVELOPMENT ORGANIZATIONS IN THE DELIVERY OF CUSTOMIZED BUSINESS SERVICES TO ENTREPRENEURS, AS WELL AS CAPACITY-BUILDING SERVICES TO ORGANIZATIONS ESTABLISHING AND OPERATING COMMUNITY AND MICRO-ENTERPRISE DEVELOPMENT PROGRAMS.
S 217. MICRO BUSINESS OUTREACH CENTERS. 1. THERE IS HEREBY ESTABLISHED WITHIN THE DEPARTMENT A MICRO BUSINESS OUTREACH CENTER ASSISTANCE PROGRAM. THE DEPARTMENT IS AUTHORIZED, WITHIN AMOUNTS APPROPRIATED, TO PROVIDE DIRECT TECHNICAL AND FINANCIAL ASSISTANCE TO THE MICRO BUSINESS OUTREACH CENTER NETWORK, A NOT-FOR-PROFIT CORPORATION, FOR THE FOLLOWING ACTIVITIES: (A) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER IN SETTING UP, OR TO ASSIST THE CENTER IN HELPING LOCAL SPONSOR ORGANIZATIONS AND/OR NEW ORGANIZATIONS TO SET UP ADDITIONAL MICRO BUSINESS OUTREACH CENTERS, IN GEOGRAPHIC AREAS OF THE STATE THAT ARE WIDELY-SEPARATED FROM EACH OTHER BUT ARE IN NEED OF, AND WOULD LIKELY BENEFIT FROM, THE ESTABLISHMENT OF SUCH CENTER; (B) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER IN PROVIDING AID FOR THE OPERATION AND MAINTENANCE OF THE ADDITIONAL MICRO BUSINESS OUTREACH CENTERS SO CREATED AS WELL AS FOR THE OPERATION AND MAINTENANCE OF ITS PRESENTLY EXISTING AFFILIATED MICRO BUSINESS OUTREACH CENTERS; AND (C) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER TO EXPAND THE CENTER'S COORDINATION OF NETWORKING AND TECHNICAL ASSISTANCE ACTIVITIES AMONG ALL MICRO BUSINESS OUTREACH CENTERS. 2. THE DEPARTMENT SHALL PROVIDE MONIES, WITHIN AVAILABLE APPROPRI- ATIONS, IN RESPONSE TO A COMMUNITY NEED FOR THE MICRO BUSINESS OUTREACH CENTERS NETWORK. THE DEPARTMENT SHALL ESTABLISH CRITERIA FOR SELECTION AND DESIGNATION OF SUCH MICRO BUSINESS OUTREACH CENTERS WHICH SHALL INCLUDE BUT NOT BE LIMITED TO: (A) COMMUNITIES THAT ARE GEOGRAPHICALLY AND/OR SOCIALLY ISOLATED FROM THE MAINSTREAM ECONOMY; (B) A COORDINATED NETWORK OF CLIENT INFORMATION SYSTEMS, REGIONAL LINKAGES, AND OPERATIONAL GUIDELINES; (C) A MODEL THAT MAXIMIZES THE EFFICIENT USE OF SCARCE EXISTING ECONOMIC DEVELOPMENT RESOURCES, ADDRESSES THE RECOGNIZED NEED FOR PRE-LOAN AND POST LOAN TECHNICAL ASSISTANCE FOR GROWING SMALL BUSINESS; (D) FACILITATING ACCESS TO THE COMPLEX INFRASTRUCTURE OF ECONOMIC DEVELOPMENT PROGRAMS AND SMALL BUSINESS SERVICES, CONNECTING SMALL BUSI- NESS TO NEEDED INFORMATION AND CAPITAL TECHNICAL ASSISTANCE. 3. ASSISTANCE, SERVICES AND DATA AS WILL ENABLE THE DEPARTMENT TO PROPERLY CARRY OUT ITS FUNCTIONS, POWERS, AND DUTIES UNDER THIS ARTICLE SHALL BE PROVIDED BY THE COMMISSIONER AND TO ACCOMPLISH THE SAME, THE COMMISSIONER MAY REQUEST THE ASSISTANCE OF OTHER AGENCIES AND PUBLIC CORPORATIONS AND DISTRICTS. S 218. MICRO BUSINESS OUTREACH CENTER NETWORK. 1. THERE IS HEREBY ESTABLISHED WITHIN THE DEPARTMENT A MICRO BUSINESS OUTREACH CENTER NETWORK. THE DEPARTMENT IS AUTHORIZED WITHIN AMOUNTS APPROPRIATED TO PROVIDE DIRECT TECHNICAL AND FINANCIAL ASSISTANCE TO THE MICRO BUSINESS OUTREACH CENTER NETWORK, A NOT-FOR-PROFIT CORPORATION, FOR THE FOLLOWING ACTIVITIES: (A) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER NETWORK IN SETTING UP, OR TO ASSIST THE CENTER IN HELPING LOCAL SPONSOR ORGANIZATIONS AND/OR NEW ORGANIZATIONS TO SET UP ADDITIONAL MICRO BUSINESS OUTREACH CENTERS, IN GEOGRAPHIC AREAS OF THE STATE THAT ARE WIDELY-SEPARATED FROM EACH OTHER BUT ARE IN NEED OF, AND WOULD LIKELY BENEFIT FROM, THE ESTAB- LISHMENT OF SUCH CENTER; (B) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER NETWORK IN PROVIDING AID FOR THE OPERATION AND MAINTENANCE OF THE ADDITIONAL MICRO BUSINESS OUTREACH CENTERS SO CREATED AS WELL AS FOR THE OPERATION AND MAINTENANCE OF ITS PRESENTLY EXISTING AFFILIATED MICRO BUSINESS OUTREACH CENTERS; AND
(C) TO ASSIST THE MICRO BUSINESS OUTREACH CENTER NETWORK TO EXPAND THE CENTER'S COORDINATION OF NETWORKING AND TECHNICAL ASSISTANCE ACTIVITIES AMONG ALL MICRO BUSINESS OUTREACH CENTERS. 2. THE DEPARTMENT SHALL PROVIDE MONIES, WITHIN AVAILABLE APPROPRI- ATIONS, IN RESPONSE TO A COMMUNITY NEED FOR THE MICRO BUSINESS OUTREACH CENTERS NETWORK. THE DEPARTMENT SHALL ESTABLISH CRITERIA FOR SELECTION AND DESTINATION OF SUCH MICRO BUSINESS OUTREACH CENTERS WHICH SHALL INCLUDE BUT NOT BE LIMITED TO: (A) COMMUNITIES THAT ARE GEOGRAPHICALLY AND/OR SOCIALLY ISOLATED FROM THE MAINSTREAM ECONOMY; (B) A COORDINATED NETWORK OF CLIENT INFORMATION SYSTEMS, REGIONAL LINKAGES, AND OPERATIONAL GUIDELINES; (C) A MODEL THAT MAXIMIZES THE EFFICIENT USE OF SCARCE EXISTING ECONOMIC DEVELOPMENT RESOURCES, ADDRESSES THE RECOGNIZED NEED FOR PRE-LOAN AND POST LOAN TECHNICAL ASSISTANCE FOR GROWING SMALL BUSINESS; (D) FACILITATING ACCESS TO THE COMPLEX INFRASTRUCTURE OF ECONOMIC DEVELOPMENT PROGRAMS AND SMALL BUSINESS SERVICES, CONNECTING SMALL BUSI- NESS TO NEEDED INFORMATION AND CAPITAL TECHNICAL ASSISTANCE. 3. ASSISTANCE, SERVICES AND DATA AS WILL ENABLE THE DEPARTMENT TO PROPERLY CARRY OUT ITS FUNCTIONS, POWERS, AND DUTIES UNDER THIS ARTICLE SHALL BE PROVIDED BY THE COMMISSIONER AND TO ACCOMPLISH THE SAME, THE COMMISSIONER MAY REQUEST THE ASSISTANCE OF OTHER AGENCIES AND PUBLIC CORPORATIONS AND DISTRICTS. S 219. REPORTING REQUIREMENT. THE DEPARTMENT SHALL MONITOR THE EFFEC- TIVENESS OF THE DIRECT TECHNICAL AND FINANCIAL ASSISTANCE IT PROVIDES TO THE MICRO BUSINESS OUTREACH CENTER NETWORK, INCORPORATED, IN ORDER TO DETERMINE AND REPORT TO WHAT EXTENT THE GOALS SPECIFIED IN THIS SECTION HAVE BEEN ACHIEVED. THE COMMISSIONER SHALL MAKE AND FILE AN ANNUAL REPORT TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE ASSEMBLY WITHIN THIRTY DAYS FOLLOWING THE CLOSE OF THE STATE'S FISCAL YEAR CONTAINING THE RESULTS OF SUCH MONITORING PURSUANT TO THIS SECTION. SUCH ANNUAL REPORT SHALL CONTAIN RECOMMENDATIONS FOR FURTHER LEGISLATION TO IMPLEMENT THE PURPOSES OF THIS ARTICLE IF IN THE JUDGMENT OF THE COMMISSIONER NEW LEGISLATION TO FURTHER EFFECTUATE THE PURPOSES OF THIS ARTICLE IS WARRANTED. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.

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