S T A T E   O F   N E W   Y O R K
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                                  4246

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 29, 2015
                               ___________

Introduced  by  M.  of  A.  SCARBOROUGH,  COLTON, CRESPO, FINCH, JAFFEE,
  AUBRY, CAMARA, ZEBROWSKI, ROBINSON, COOK, WEPRIN, RODRIGUEZ, SANTABAR-
  BARA, PERRY -- Multi-Sponsored by -- M. of A. MAGEE,  MARKEY,  THIELE,
  WRIGHT -- 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:

  Section 1. Article 9 of the economic development law is REPEALED and a
new article 9 is added to read as follows:
                                ARTICLE 9
                   ENTREPRENEURSHIP ASSISTANCE CENTERS
SECTION 210. DEFINITIONS.
        211. ENTREPRENEURSHIP ASSISTANCE CENTERS.
        212. REPORTING.
  S 210. DEFINITIONS. AS USED  IN  THIS  ARTICLE  THE  FOLLOWING  TERMS,
UNLESS  THE  CONTEXT INDICATES OTHERWISE, SHALL HAVE THE FOLLOWING MEAN-
INGS:
  1. "ENTREPRENEURSHIP  ASSISTANCE  CENTERS"  SHALL  MEAN  THE  BUSINESS
DEVELOPMENT CENTERS WHICH PROVIDE ASSISTANCE TO PRIMARILY MINORITY GROUP
MEMBERS,  WOMEN, INDIVIDUALS WITH A DISABILITY AND DISLOCATED WORKERS AS
ESTABLISHED BY THE DEPARTMENT PURSUANT TO SECTION TWO HUNDRED ELEVEN  OF
THIS ARTICLE.
  2. "DISABILITY" SHALL MEAN, WITH RESPECT TO AN INDIVIDUAL:
  (A)  A  PHYSICAL OR MENTAL IMPAIRMENT THAT SUBSTANTIALLY LIMITS ONE OR
MORE OF THE MAJOR LIFE ACTIVITIES OF SUCH INDIVIDUAL;
  (B) A RECORD OF SUCH AN IMPAIRMENT; OR
  (C) BEING REGARDED AS HAVING AN IMPAIRMENT.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07929-01-5
              

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  3. "MINORITY BUSINESS ENTERPRISE" SHALL MEAN ANY  BUSINESS  ENTERPRISE
WHICH  IS  AT  LEAST  FIFTY-ONE PER CENTUM OWNED BY, OR IN THE CASE OF A
PUBLICLY OWNED BUSINESS AT LEAST FIFTY-ONE PER CENTUM OF  THE  STOCK  OF
WHICH  IS OWNED BY, CITIZENS OR PERMANENT RESIDENT ALIENS WHO ARE BLACK,
HISPANIC,  ASIAN  OR AMERICAN INDIAN, PACIFIC ISLANDER OR ALASKAN NATIVE
WHERE SUCH OWNERSHIP INTEREST IS REAL, SUBSTANTIAL  AND  CONTINUING  AND
WHERE  SUCH PERSONS HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE DAY-
TO-DAY BUSINESS DECISIONS OF THE ENTITY.
  4. "MINORITY GROUP MEMBER" SHALL  MEAN  A  UNITED  STATES  CITIZEN  OR
PERMANENT RESIDENT ALIEN WHO IS AND CAN DEMONSTRATE MEMBERSHIP IN ONE OF
THE FOLLOWING GROUPS:
  (A)  BLACK  PERSONS  HAVING ORIGINS IN ANY OF THE BLACK AFRICAN RACIAL
GROUPS NOT OF HISPANIC ORIGIN;
  (B) HISPANIC PERSONS  OF  MEXICAN,  PUERTO  RICAN,  DOMINICAN,  CUBAN,
CENTRAL  OR  SOUTH AMERICAN DESCENT OF EITHER INDIAN OR HISPANIC ORIGIN,
REGARDLESS OF RACE;
  (C) ASIAN AND PACIFIC ISLANDER PERSONS HAVING ORIGINS IN THE FAR EAST,
SOUTHEAST ASIA, THE INDIAN SUB-CONTINENT OR THE PACIFIC ISLANDS; OR
  (D) AMERICAN INDIAN OR ALASKAN NATIVE PERSONS HAVING ORIGINS IN ANY OF
THE ORIGINAL PEOPLES OF NORTH AMERICA.
  5. "WOMEN-OWNED BUSINESS ENTERPRISE" SHALL MEAN  ANY  BUSINESS  ENTER-
PRISE WHICH IS AT LEAST FIFTY-ONE PER CENTUM OWNED BY, OR IN THE CASE OF
A  PUBLICLY OWNED BUSINESS AT LEAST FIFTY-ONE PER CENTUM OF THE STOCK OF
WHICH IS OWNED BY, CITIZENS OR PERMANENT RESIDENT ALIENS WHO  ARE  WOMEN
WHERE  SUCH  OWNERSHIP  INTEREST IS REAL, SUBSTANTIAL AND CONTINUING AND
WHERE SUCH PERSONS HAVE THE AUTHORITY TO INDEPENDENTLY CONTROL THE  DAY-
TO-DAY BUSINESS DECISIONS OF THE ENTITY.
  S  211.  ENTREPRENEURSHIP  ASSISTANCE CENTERS. 1. THE DEPARTMENT SHALL
ESTABLISH AND SUPPORT, WITHIN AVAILABLE APPROPRIATIONS, ENTREPRENEURSHIP
ASSISTANCE CENTERS  AT  CAREER  EDUCATION  AGENCIES  AND  NOT-FOR-PROFIT
CORPORATIONS  INCLUDING,  BUT   NOT LIMITED TO, LOCAL DEVELOPMENT CORPO-
RATIONS, CHAMBERS OF COMMERCE, COMMUNITY-BASED BUSINESS OUTREACH CENTERS
AND OTHER COMMUNITY-BASED ORGANIZATIONS.   THE PURPOSE OF  SUCH  CENTERS
SHALL  BE  TO  TRAIN  MINORITY  GROUP MEMBERS, WOMEN, INDIVIDUALS WITH A
DISABILITY AND DISLOCATED WORKERS IN  THE  PRINCIPLES  AND  PRACTICE  OF
ENTREPRENEURSHIP IN ORDER TO PREPARE SUCH PERSONS TO PURSUE SELF-EMPLOY-
MENT  OPPORTUNITIES  AND  TO  PURSUE A MINORITY BUSINESS ENTERPRISE OR A
WOMEN-OWNED BUSINESS ENTERPRISE. SUCH CENTERS SHALL PROVIDE FOR TRAINING
IN ALL ASPECTS OF BUSINESS DEVELOPMENT AND SMALL BUSINESS MANAGEMENT  AS
DEFINED  BY  THE  COMMISSIONER.  FOR  PURPOSES  OF THIS SECTION, "CAREER
EDUCATION AGENCY" SHALL MEAN A COMMUNITY COLLEGE OR BOARD OF COOPERATIVE
EDUCATIONAL SERVICES OPERATING WITHIN THE STATE.
  2. THE DEPARTMENT SHALL ESTABLISH CRITERIA FOR  SELECTION  AND  DESIG-
NATION OF SUCH CENTERS WHICH SHALL INCLUDE, BUT NOT BE LIMITED TO:
  (A)  THE  LEVEL  OF  SUPPORT  FOR THE CENTER FROM LOCAL POST-SECONDARY
EDUCATION INSTITUTIONS, BUSINESSES, AND GOVERNMENT;
  (B) THE LEVEL OF FINANCIAL ASSISTANCE PROVIDED AT THE LOCAL AND FEDER-
AL LEVEL TO SUPPORT THE OPERATIONS OF THE CENTER;
  (C) THE APPLICANT'S UNDERSTANDING  OF  PROGRAM  GOALS  AND  OBJECTIVES
ARTICULATED BY THE DEPARTMENT;
  (D)  THE  PLANS  OF  THE  CENTER TO SUPPLEMENT STATE AND LOCAL FUNDING
THROUGH FEES FOR SERVICES WHICH MAY BE BASED ON A SLIDING SCALE BASED ON
ABILITY TO PAY;
  (E) THE NEED FOR AND ANTICIPATED IMPACT OF THE CENTER ON THE COMMUNITY
IN WHICH IT WILL FUNCTION;
  (F) THE QUALITY OF THE PROPOSED WORK PLAN AND STAFF OF THE CENTER; AND

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  (G) THE EXTENT OF ECONOMIC DISTRESS IN THE AREA TO BE SERVED.
  3.  APPLICATION FOR GRANTS MADE PURSUANT TO THIS SECTION SHALL BE MADE
IN THE MANNER AND ON FORMS PRESCRIBED BY THE DEPARTMENT.  SUCH  APPLICA-
TION SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO:
  (A)  A  DESCRIPTION  OF  THE  TRAINING  PROGRAMS  AVAILABLE WITHIN THE
GEOGRAPHIC AREA TO BE SERVED BY THE CENTER TO WHICH ELIGIBLE CLIENTS MAY
BE REFERRED;
  (B) DESIGNATION OF A PROGRAM DIRECTOR;
  (C) PLANS FOR PROVIDING ONGOING TECHNICAL ASSISTANCE TO PROGRAM GRADU-
ATES, INCLUDING LINKAGES WITH PROVIDERS OF OTHER ENTREPRENEURIAL ASSIST-
ANCE PROGRAMS AND WITH PROVIDERS OF SMALL BUSINESS TECHNICAL  ASSISTANCE
AND SERVICES;
  (D) A PROGRAM BUDGET, INCLUDING MATCHING FUNDS, IN-KIND AND OTHERWISE,
TO BE PROVIDED BY THE APPLICANT; AND
  (E) SUCH OTHER REQUIREMENTS AS DEEMED NECESSARY BY THE DEPARTMENT.
  4. EACH CENTER SHALL:
  (A) BE OPERATED BY A BOARD OF DIRECTORS REPRESENTING COMMUNITY LEADERS
IN BUSINESS, EDUCATION, FINANCE AND GOVERNMENT;
  (B) BE INCORPORATED AS A NOT-FOR-PROFIT CORPORATION;
  (C) BE LOCATED IN AN AREA ACCESSIBLE TO ELIGIBLE CLIENTS;
  (D)  ESTABLISH  AN  ADVISORY  GROUP  OF COMMUNITY BUSINESS EXPERTS, AT
LEAST ONE-HALF OF WHOM SHALL BE REPRESENTATIVE OF THE  CLIENTELE  TO  BE
SERVED  BY  THE  CENTER,  WHICH  SHALL  CONSTITUTE  A SUPPORT NETWORK TO
PROVIDE COUNSELING AND MENTORING SERVICES  TO  MINORITY  GROUP  MEMBERS,
WOMEN,  INDIVIDUALS  WITH  A  DISABILITY AND DISLOCATED WORKERS FROM THE
CONCEPT STAGE OF DEVELOPMENT THROUGH THE  FIRST  ONE  TO  TWO  YEARS  OF
EXISTENCE ON A REGULAR BASIS AND AS NEEDED THEREAFTER; AND
  (E)  ESTABLISH  A  REFERRAL SYSTEM AND LINKAGES TO EXISTING AREA SMALL
BUSINESS ASSISTANCE PROGRAMS AND FINANCING SOURCES.
  5.  EACH  ENTREPRENEURSHIP  ASSISTANCE  CENTER  SHALL  PROVIDE  NEEDED
SERVICES TO ELIGIBLE CLIENTS, INCLUDING, BUT NOT LIMITED TO:
  (A) ORIENTATION AND SCREENING OF PROSPECTIVE ENTREPRENEURS;
  (B) ANALYSIS OF BUSINESS CONCEPTS AND TECHNICAL FEASIBILITY;
  (C) MARKET ANALYSIS;
  (D) MANAGEMENT ANALYSIS AND COUNSELING;
  (E) BUSINESS PLANNING AND FINANCIAL PLANNING ASSISTANCE;
  (F) REFERRALS TO FINANCIAL RESOURCES;
  (G)  REFERRAL  TO  EXISTING  EDUCATIONAL PROGRAMS FOR TRAINING IN SUCH
AREAS AS MARKETING, ACCOUNTING AND OTHER SUCH TRAINING PROGRAMS  AS  MAY
BE NECESSARY AND AVAILABLE; AND
  (H)  REFERRAL TO BUSINESS INCUBATOR FACILITIES, WHERE APPROPRIATE, FOR
THE PURPOSE  OF  ENTERING  INTO  AGREEMENTS  TO  ACCESS  SHARED  SUPPORT
SERVICES.
  6.  GRANTS  MADE  PURSUANT  TO  THIS  SECTION  SHALL BE SUBJECT TO THE
FOLLOWING LIMITATIONS:
  (A) NO GRANT SHALL BE MADE TO ANY ONE  OR  ANY  CONSORTIUM  OF  CAREER
EDUCATION  AGENCIES  AND NOT-FOR-PROFIT CORPORATIONS IN EXCESS OF SEVEN-
TY-FIVE THOUSAND DOLLARS; AND
  (B) EACH GRANT SHALL BE DISBURSED FOR PAYMENT OF THE COST OF  SERVICES
AND EXPENSES OF THE PROGRAM DIRECTOR, THE INSTRUCTORS OF THE PARTICIPAT-
ING  CAREER  EDUCATION AGENCY OR NOT-FOR-PROFIT CORPORATION, THE FACULTY
AND SUPPORT PERSONNEL THEREOF AND ANY OTHER PERSON  IN  THE  SERVICE  OF
PROVIDING INSTRUCTION AND COUNSELING IN FURTHERANCE OF THE PROGRAM.
  S 212. REPORTING. THE DEPARTMENT SHALL:
  1.  MONITOR  THE PERFORMANCE OF EACH ENTREPRENEURIAL ASSISTANCE CENTER
AND REQUIRE  PERIODIC  AND  ANNUAL  REPORTS  FROM  EACH  ENTREPRENEURIAL

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ASSISTANCE CENTER AT SUCH TIME AND IN SUCH A MANNER AS PRESCRIBED BY THE
COMMISSIONER.
  2.  EVALUATE  THE ENTREPRENEURIAL ASSISTANCE CENTERS ESTABLISHED UNDER
THIS ARTICLE AND REPORT,  ON  OR  BEFORE  OCTOBER  FIRST,  TWO  THOUSAND
SIXTEEN,  AND ON OR BEFORE EACH OCTOBER FIRST THEREAFTER, AND SUBMIT THE
RESULTS OF SUCH EVALUATION TO THE GOVERNOR  AND  THE  LEGISLATURE.  SUCH
REPORT  SHALL  DISCUSS  THE  EXTENT  TO WHICH THE CENTERS SERVE MINORITY
GROUP MEMBERS, WOMEN, INDIVIDUALS WITH A DISABILITY AND DISLOCATED WORK-
ERS; THE EXTENT TO WHICH THE TRAINING PROGRAM IS COORDINATED WITH  OTHER
ASSISTANCE PROGRAMS TARGETED TO SMALL AND NEW BUSINESSES; THE ABILITY OF
SUCH  PROGRAM  TO LEVERAGE OTHER SOURCES OF FUNDING AND SUPPORT; AND THE
SUCCESS OF THE PROGRAM IN AIDING ENTREPRENEURS TO  START  UP  NEW  BUSI-
NESSES,  INCLUDING  THE  NUMBER OF NEW BUSINESS START-UPS RESULTING FROM
THE PROGRAM. SUCH REPORT SHALL RECOMMEND CHANGES AND IMPROVEMENTS IN THE
TRAINING PROGRAM AND IN THE QUALITY OF SUPPLEMENTAL TECHNICAL ASSISTANCE
OFFERED TO GRADUATES OF THE TRAINING PROGRAMS.
  3. SUBMIT TO THE DIRECTOR OF THE DIVISION OF THE  BUDGET,  THE  CHAIR-
PERSON OF THE SENATE FINANCE COMMITTEE AND THE CHAIRPERSON OF THE ASSEM-
BLY  WAYS  AND MEANS COMMITTEE AN EVALUATION OF THE EFFECTIVENESS OF THE
PROGRAMS ESTABLISHED UNDER THIS ARTICLE PREPARED BY AN ENTITY  INDEPEND-
ENT  OF  THE DEPARTMENT. SUCH EVALUATION SHALL BE SUBMITTED BY SEPTEMBER
FIRST, TWO THOUSAND SEVENTEEN AND BY SEPTEMBER FIRST  EVERY  FOUR  YEARS
THEREAFTER.
  4.  BETWEEN  EVALUATION  DUE DATES, MAINTAIN THE NECESSARY RECORDS AND
DATA REQUIRED TO SATISFY SUCH EVALUATION  REQUIREMENTS  AND  TO  SATISFY
INFORMATION  REQUESTS  RECEIVED  FROM  THE  DIRECTOR  OF THE BUDGET, THE
CHAIRPERSON OF THE SENATE FINANCE COMMITTEE AND THE CHAIRPERSON  OF  THE
ASSEMBLY WAYS AND MEANS COMMITTEE BETWEEN SUCH EVALUATION DUE DATES.
  S  2. Paragraph (c) of subdivision 37-b of section 100 of the economic
development law, as added by chapter 524 of the laws of 2005, is amended
to read as follows:
  (c) Subdivision two of section two hundred [thirteen] TWELVE  OF  THIS
CHAPTER,  submitting  the results of the annual evaluation of the entre-
preneurial assistance programs established under article  nine  OF  THIS
CHAPTER.
  S  3.  Subparagraph (iii) of paragraph (c) of subdivision 2 of section
591-a of the labor law, as amended by section 1 of part Z of chapter  57
of the laws of 2013, is amended to read as follows:
  (iii)  are  participating  in  self-employment  assistance  activities
approved by the department and by the department of economic development
which include but need not be limited to entrepreneurial training, busi-
ness counseling, and technical assistance, including  financing  assist-
ance  for qualified individuals as appropriate, offered by entrepreneur-
ship [support] ASSISTANCE centers established pursuant  to  section  two
hundred [twelve] ELEVEN of the economic development law, state universi-
ty  of  New York small business development centers, programs offered by
community-based  organizations,  local  development  corporations,   and
boards of cooperative educational services (BOCES) as established pursu-
ant  to  section  one  thousand nine hundred fifty of the education law;
and, unless otherwise required by federal law or regulation, no individ-
ual shall be prohibited from or disqualified from  eligibility  for  the
program  if prior to applying for the program, an individual has printed
business cards or has a website that is designed  but  not  active,  and
neither are being used to solicit or conduct business;
  S  4. This act shall take effect immediately; provided that the amend-
ments to subparagraph (iii) of paragraph (c) of subdivision 2 of section

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591-a of the labor law made by section  three  of  this  act  shall  not
affect  the  repeal of such section and shall be deemed to repeal there-
with.