S T A T E   O F   N E W   Y O R K
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                                 2627--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                            January 27, 2015
                               ___________

Introduced  by  Sen. HASSELL-THOMPSON -- read twice and ordered printed,
  and when printed to be committed to the Committee on Commerce, Econom-
  ic Development and Small Business -- recommitted to the  Committee  on
  Commerce,  Economic  Development and Small Business in accordance with
  Senate Rule 6, sec. 8 -- committee discharged, bill  amended,  ordered
  reprinted as amended and recommitted to said committee

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 Article 9 of the economic development law is REPEALED and a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, DISLOCATED WORKERS AND
VETERANS 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;

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07929-03-6
              

S. 2627--A                          2

  (B) A RECORD OF SUCH AN IMPAIRMENT; OR
  (C) BEING REGARDED AS HAVING AN IMPAIRMENT.
  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.
  6. "VETERAN" SHALL MEAN A PERSON WHO SERVED IN AND WHO HAS RECEIVED AN
HONORABLE  OR  GENERAL DISCHARGE FROM, THE UNITED STATES ARMY, NAVY, AIR
FORCE, MARINES, COAST GUARD, AND/OR RESERVES THEREOF, AND/OR IN THE ARMY
NATIONAL GUARD, AIR NATIONAL GUARD, NEW YORK GUARD AND/OR NEW YORK NAVAL
MILITIA.
  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,  DISLOCATED WORKERS AND VETERANS IN THE PRINCIPLES AND PRAC-
TICE OF ENTREPRENEURSHIP IN ORDER TO  PREPARE  SUCH  PERSONS  TO  PURSUE
SELF-EMPLOYMENT  OPPORTUNITIES  AND TO PURSUE A MINORITY BUSINESS ENTER-
PRISE 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;

S. 2627--A                          3

  (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
  (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, DISLOCATED  WORKERS  AND  VETERANS
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

S. 2627--A                          4

  (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 QUARTERLY  AND  ANNUAL  REPORTS  FROM  EACH  ENTREPRENEURIAL
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 QUARTERLY AND ANNUALLY,  ON  OR  BEFORE  JANUARY
FIRST, TWO THOUSAND SEVENTEEN, AND ON OR BEFORE EACH JANUARY FIRST THER-
EAFTER,  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 DISABIL-
ITY,  DISLOCATED  WORKERS AND VETERANS; 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 SOURC-
ES  OF  FUNDING  AND  SUPPORT;  AND THE SUCCESS OF THE PROGRAM IN AIDING
ENTREPRENEURS TO START UP NEW BUSINESSES, INCLUDING THE  NUMBER  OF  NEW
BUSINESS  START-UPS RESULTING FROM THE PROGRAM. SUCH REPORT SHALL RECOM-
MEND CHANGES AND IMPROVEMENTS IN THE TRAINING PROGRAM AND IN THE QUALITY
OF SUPPLEMENTAL TECHNICAL ASSISTANCE OFFERED TO GRADUATES OF THE  TRAIN-
ING  PROGRAMS. SUCH REPORTS SHALL BE MADE AVAILABLE TO THE PUBLIC ON THE
DEPARTMENT'S WEBSITE.
  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 JANUARY
FIRST, TWO THOUSAND EIGHTEEN AND BY JANUARY FIRST EVERY YEAR 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

S. 2627--A                          5

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
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.