Bill Text: NY S00771 | 2019-2020 | General Assembly | Introduced


Bill Title: 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.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO SOCIAL SERVICES [S00771 Detail]

Download: New_York-2019-S00771-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                           771
                               2019-2020 Regular Sessions
                    IN SENATE
                                       (Prefiled)
                                     January 9, 2019
                                       ___________
        Introduced  by  Sen. BRESLIN -- 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:
     1    Section 1. The social services law is amended by adding a new  section
     2  131-bb to read as follows:
     3    § 131-bb. Community capital loan program. 1. From amounts appropriated
     4  for  such  purpose,  the  department  of  labor in consultation with the
     5  department of family assistance is hereby  authorized  and  directed  to
     6  solicit proposals to establish programs to be known as community capital
     7  loan  programs.  Such programs shall provide small, no-interest loans to
     8  persons with income below two hundred percent  of  the  federal  poverty
     9  level for the purpose of assisting the loan recipient to become self-em-
    10  ployed.  Loans  awarded  through a community capital loan program may be
    11  paid directly to a third party on behalf of  a  loan  recipient  and  in
    12  either case shall not constitute income or resources for the purposes of
    13  public  assistance  and  care  so  long  as  the  funds are used for the
    14  intended purpose.
    15    2. The commissioner of labor shall enter into written agreements  with
    16  not-for-profit  organizations or local government agencies to administer
    17  loan pools. Agreements shall be entered into  with  no  more  than  four
    18  organizations  and/or  agencies,  no  more  than  one  of which shall be
    19  located in the city of New York.
    20    3. Program sites shall be approved based on the  demonstrated  ability
    21  of  the  organization  or  governmental  agency  to  secure funding from
    22  private and/or public sources sufficient to establish a loan pool to  be
    23  maintained through repayment agreements entered into by eligible low-in-
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05956-01-9

        S. 771                              2
     1  come  individuals.  Funds awarded by the department of labor to approved
     2  program sites shall be used for the express purposes of covering  staff-
     3  ing  and  administration  costs  associated  with administering the loan
     4  pool.
     5    § 2. A program site, as provided in subdivision 3 of section 131-bb of
     6  the  social  services  law,  as added by section one of this act, shall,
     7  within one year of receiving approval by the department of labor, report
     8  to the department of labor on the utilization of the loan pool,  includ-
     9  ing  but  not  limited  to,  the  number and average amount of the loans
    10  awarded, the rate of repayment on the loans, the purposes for which  the
    11  loans  were awarded, the financial circumstance of persons receiving the
    12  loans, and the  number  of  persons  receiving  loans  who  subsequently
    13  required  public  assistance.  The department of labor shall provide the
    14  findings to the temporary president of the senate and the speaker of the
    15  assembly within one month of receiving the reports.
    16    § 3. This act shall take effect immediately.
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