Bill Text: NY A02805 | 2017-2018 | General Assembly | Introduced

Bill Title: Establishes entrepreneurship assistance centers to provide assistance to primarily minority group members, women, individuals with a disability and dislocated workers and veterans; requires the department of economic development to establish criteria and designation of such centers; sets forth requirements for each center.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Passed) 2018-12-07 - approval memo.8 [A02805 Detail]

Download: New_York-2017-A02805-Introduced.html

                STATE OF NEW YORK
                               2017-2018 Regular Sessions
                   IN ASSEMBLY
                                    January 23, 2017
        Introduced  by  M.  of A. THIELE, RIVERA, HYNDMAN, BICHOTTE -- read once
          and referred to the Committee on Small Business
        AN ACT to amend the economic development law, in relation to  establish-
          ing  entrepreneurship assistance centers; to amend the economic devel-
          opment law  and  the  labor  law,  in  relation  to  making  technical
          corrections  relating thereto; and to repeal article 9 of the economic
          development law relating thereto
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. Article 9 of the economic development law is REPEALED and a
     2  new article 9 is added to read as follows:
     3                                  ARTICLE 9
     5  Section 210. Definitions.
     6          211. Entrepreneurship assistance centers.
     7          212. Reporting.
     8    §  210.  Definitions.  As  used  in  this article the following terms,
     9  unless the context indicates otherwise, shall have the  following  mean-
    10  ings:
    11    1.  "Entrepreneurship  assistance  centers"  shall  mean  the business
    12  development centers which provide assistance to primarily minority group
    13  members, women, individuals with a disability,  dislocated  workers  and
    14  veterans  as  established  by  the  department  pursuant  to section two
    15  hundred eleven of this article.
    16    2. "Disability" shall mean, with respect to an individual:
    17    (a) a physical or mental impairment that substantially limits  one  or
    18  more of the major life activities of such individual;
    19    (b) a record of such an impairment; or
    20    (c) being regarded as having an impairment.
    21    3.  "Minority  business enterprise" shall mean any business enterprise
    22  which is at least fifty-one per centum owned by, or in  the  case  of  a
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

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     1  publicly  owned  business  at least fifty-one per centum of the stock of
     2  which is owned by, citizens or permanent resident aliens who are  Black,
     3  Hispanic,  Asian  or American Indian, Pacific Islander or Alaskan Native
     4  where  such  ownership  interest is real, substantial and continuing and
     5  where such persons have the authority to independently control the  day-
     6  to-day business decisions of the entity.
     7    4.  "Minority  group  member"  shall  mean  a United States citizen or
     8  permanent resident alien who is and can demonstrate membership in one of
     9  the following groups:
    10    (a) Black persons having origins in any of the  Black  African  racial
    11  groups not of Hispanic origin;
    12    (b)  Hispanic  persons  of  Mexican,  Puerto  Rican, Dominican, Cuban,
    13  Central or South American descent of either Indian or  Hispanic  origin,
    14  regardless of race;
    15    (c) Asian and Pacific Islander persons having origins in the Far East,
    16  Southeast Asia, the Indian sub-continent or the Pacific Islands; or
    17    (d) American Indian or Alaskan Native persons having origins in any of
    18  the original peoples of North America.
    19    5.  "Women-owned  business  enterprise" shall mean any business enter-
    20  prise which is at least fifty-one per centum owned by, or in the case of
    21  a publicly owned business at least fifty-one per centum of the stock  of
    22  which  is  owned by, citizens or permanent resident aliens who are women
    23  where such ownership interest is real, substantial  and  continuing  and
    24  where  such persons have the authority to independently control the day-
    25  to-day business decisions of the entity.
    26    6. "Veteran" shall mean a person who served in and who has received an
    27  honorable or general discharge from, the United States army,  navy,  air
    28  force, marines, coast guard, and/or reserves thereof, and/or in the army
    29  national guard, air national guard, New York guard and/or New York naval
    30  militia.
    31    §  211.  Entrepreneurship  assistance centers. 1. The department shall
    32  establish and support, within available appropriations, entrepreneurship
    33  assistance centers  at  career  education  agencies  and  not-for-profit
    34  corporations  including,  but   not limited to, local development corpo-
    35  rations, chambers of commerce, community-based business outreach centers
    36  and other community-based organizations.   The purpose of  such  centers
    37  shall  be  to  train  minority  group members, women, individuals with a
    38  disability, dislocated workers and veterans in the principles and  prac-
    39  tice  of  entrepreneurship  in  order  to prepare such persons to pursue
    40  self-employment opportunities and to pursue a minority  business  enter-
    41  prise  or  a women-owned business enterprise. Such centers shall provide
    42  for training in all aspects of business development and  small  business
    43  management as defined by the commissioner. For purposes of this section,
    44  "career  education  agency"  shall  mean a community college or board of
    45  cooperative educational services operating within the state.
    46    2. The department shall establish criteria for  selection  and  desig-
    47  nation of such centers which shall include, but not be limited to:
    48    (a)  the  level  of  support  for the center from local post-secondary
    49  education institutions, businesses, and government;
    50    (b) the level of financial assistance provided at the local and feder-
    51  al level to support the operations of the center;
    52    (c) the applicant's understanding  of  program  goals  and  objectives
    53  articulated by the department;
    54    (d)  the  plans  of  the  center to supplement state and local funding
    55  through fees for services which may be based on a sliding scale based on
    56  ability to pay;

        A. 2805                             3
     1    (e) the need for and anticipated impact of the center on the community
     2  in which it will function;
     3    (f) the quality of the proposed work plan and staff of the center; and
     4    (g) the extent of economic distress in the area to be served.
     5    3.  Application for grants made pursuant to this section shall be made
     6  in the manner and on forms prescribed by the department.  Such  applica-
     7  tion shall include, but shall not be limited to:
     8    (a)  a  description  of  the  training  programs  available within the
     9  geographic area to be served by the center to which eligible clients may
    10  be referred;
    11    (b) designation of a program director;
    12    (c) plans for providing ongoing technical assistance to program gradu-
    13  ates, including linkages with providers of other entrepreneurial assist-
    14  ance programs and with providers of small business technical  assistance
    15  and services;
    16    (d) a program budget, including matching funds, in-kind and otherwise,
    17  to be provided by the applicant; and
    18    (e) such other requirements as deemed necessary by the department.
    19    4. Each center shall:
    20    (a) be operated by a board of directors representing community leaders
    21  in business, education, finance and government;
    22    (b) be incorporated as a not-for-profit corporation;
    23    (c) be located in an area accessible to eligible clients;
    24    (d)  establish  an  advisory  group  of community business experts, at
    25  least one-half of whom shall be representative of the  clientele  to  be
    26  served  by  the  center,  which  shall  constitute  a support network to
    27  provide counseling and mentoring services  to  minority  group  members,
    28  women,  individuals  with  a disability, dislocated workers and veterans
    29  from the concept stage of development through the first one to two years
    30  of existence on a regular basis and as needed thereafter; and
    31    (e) establish a referral system and linkages to  existing  area  small
    32  business assistance programs and financing sources.
    33    5.  Each  entrepreneurship  assistance  center  shall  provide  needed
    34  services to eligible clients, including, but not limited to:
    35    (a) orientation and screening of prospective entrepreneurs;
    36    (b) analysis of business concepts and technical feasibility;
    37    (c) market analysis;
    38    (d) management analysis and counseling;
    39    (e) business planning and financial planning assistance;
    40    (f) referrals to financial resources;
    41    (g) referral to existing educational programs  for  training  in  such
    42  areas  as  marketing, accounting and other such training programs as may
    43  be necessary and available; and
    44    (h) referral to business incubator facilities, where appropriate,  for
    45  the  purpose  of  entering  into  agreements  to  access  shared support
    46  services.
    47    6. Grants made pursuant to  this  section  shall  be  subject  to  the
    48  following limitations:
    49    (a)  no  grant  shall  be  made to any one or any consortium of career
    50  education agencies and not-for-profit corporations in excess  of  seven-
    51  ty-five thousand dollars; and
    52    (b)  each grant shall be disbursed for payment of the cost of services
    53  and expenses of the program director, the instructors of the participat-
    54  ing career education agency or not-for-profit corporation,  the  faculty
    55  and  support  personnel  thereof  and any other person in the service of
    56  providing instruction and counseling in furtherance of the program.

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     1    § 212. Reporting. The department shall:
     2    1.  Monitor  the performance of each entrepreneurial assistance center
     3  and require quarterly  and  annual  reports  from  each  entrepreneurial
     4  assistance center at such time and in such a manner as prescribed by the
     5  commissioner.
     6    2.  Evaluate  the entrepreneurial assistance centers established under
     7  this article and report quarterly and annually,  on  or  before  January
     8  first, two thousand eighteen, and on or before each January first there-
     9  after, and submit the results of such evaluation to the governor and the
    10  legislature.  Such  report shall discuss the extent to which the centers
    11  serve minority group members,  women,  individuals  with  a  disability,
    12  dislocated  workers  and  veterans;  the  extent  to  which the training
    13  program is coordinated with other assistance programs targeted to  small
    14  and new businesses; the ability of such program to leverage other sourc-
    15  es  of  funding  and  support;  and the success of the program in aiding
    16  entrepreneurs to start up new businesses, including the  number  of  new
    17  business  start-ups resulting from the program. Such report shall recom-
    18  mend changes and improvements in the training program and in the quality
    19  of supplemental technical assistance offered to graduates of the  train-
    20  ing  programs. Such reports shall be made available to the public on the
    21  department's website.
    22    3. Submit to the director of the division of the  budget,  the  chair-
    23  person of the senate finance committee and the chairperson of the assem-
    24  bly  ways  and means committee an evaluation of the effectiveness of the
    25  programs established under this article prepared by an entity  independ-
    26  ent  of  the  department.  Such evaluation shall be submitted by January
    27  first, two thousand nineteen and by January first every year thereafter.
    28    4. Between evaluation due dates, maintain the  necessary  records  and
    29  data  required  to  satisfy  such evaluation requirements and to satisfy
    30  information requests received from  the  director  of  the  budget,  the
    31  chairperson  of  the senate finance committee and the chairperson of the
    32  assembly ways and means committee between such evaluation due dates.
    33    § 2. Paragraph (c) of subdivision 37-b of section 100 of the  economic
    34  development law, as added by chapter 524 of the laws of 2005, is amended
    35  to read as follows:
    36    (c)  Subdivision  two of section two hundred [thirteen] twelve of this
    37  chapter, submitting the results of the annual evaluation of  the  entre-
    38  preneurial  assistance  programs  established under article nine of this
    39  chapter.
    40    § 3. Subparagraph (iii) of paragraph (c) of subdivision 2  of  section
    41  591-a  of the labor law, as amended by section 1 of part Z of chapter 57
    42  of the laws of 2013, is amended to read as follows:
    43    (iii)  are  participating  in  self-employment  assistance  activities
    44  approved by the department and by the department of economic development
    45  which include but need not be limited to entrepreneurial training, busi-
    46  ness  counseling,  and technical assistance, including financing assist-
    47  ance for qualified individuals as appropriate, offered by  entrepreneur-
    48  ship  [support]  assistance  centers established pursuant to section two
    49  hundred [twelve] eleven of the economic development law, state universi-
    50  ty of New York small business development centers, programs  offered  by
    51  community-based   organizations,  local  development  corporations,  and
    52  boards of cooperative educational services (BOCES) as established pursu-
    53  ant to section one thousand nine hundred fifty  of  the  education  law;
    54  and, unless otherwise required by federal law or regulation, no individ-
    55  ual  shall  be  prohibited from or disqualified from eligibility for the
    56  program if prior to applying for the program, an individual has  printed

        A. 2805                             5
     1  business  cards  or  has  a website that is designed but not active, and
     2  neither are being used to solicit or conduct business;
     3    §  4. This act shall take effect immediately; provided that the amend-
     4  ments to subparagraph (iii) of paragraph (c) of subdivision 2 of section
     5  591-a of the labor law made by section  three  of  this  act  shall  not
     6  affect  the  repeal of such section and shall be deemed to repeal there-
     7  with.