NY State Senate Bill 2017-S8551

Senate Bill S8551

2017-2018 Legislative Session

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

download bill text pdf

Archive: Last Bill Status - In Senate Committee Rules Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jun 07, 2018	reported and committed to rules
May 10, 2018	referred to commerce, economic development and small business

Votes

- Jun 7, 2018 - Commerce, Economic Development And Small Business Committee Vote
  S8551
  
  11
  
  Aye
  
  0
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Commerce, Economic Development And Small Business Committee Vote: Jun 7, 2018
      
      aye (11)
      
      Bailey
      
      Boyle
      
      Felder
      
      Funke
      
      Gallivan
      
      Griffo
      
      Hamilton
      
      Kennedy
      
      Persaud
      
      Robach
      
      Sanders Jr.

2017-S8551 (ACTIVE) - Details

See Assembly Version of this Bill:: A4124
Current Committee:: Senate Rules
Law Section:: Economic Development Law
Laws Affected:: Add Art 9-B §§216 - 219, Ec Dev L
Versions Introduced in Other Legislative Sessions:: 2009-2010: S5639, S7968, A10471, A3193
2011-2012: S1876, S2825, A6669
2013-2014: S4574, A4358
2015-2016: S3443, A3559, A7796

2017-S8551 (ACTIVE) - Summary

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.

2017-S8551 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S8551

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

 
PURPOSE:

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 main-
stream economy with access to economic development counseling services
and funds.

 
SUMMARY OF 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, many people that have a talent or idea 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-proprie-
tors of businesses that begin with five or less employees including the
owner, require less than $50,000 in startup capital, and do not have
access to the traditional commercial banking sector. Microbusinesses and
start-ups have the largest unmet financing needs with 63% and 58%,
respectively, reporting a financial shortfall.

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 communi-
ties who might not have access to capital and are therefore ineligible
to receive loans in the eyes of most major lending companies.

Between 2007 and 2016, there was an increase of 3.5 million women-owned
firms. Fully 78% of these net new women-owned firms (nearly 2.8 million)
are firms owned by women of color - an average of 842 net new minority
women-owned firms were launched each day over the past nine years. As of
2012, there were 709,021 minority-owned businesses and 725,709 women-
owned businesses in New York, many of them small businesses.  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 Insti-
tute have even shown that these types of services help move the work-
ing-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:

2000: A.11029/S.7743B
2001-02: A.2789A/S.122A
2003-04: A.927
2005-06: A.6704A/S.4063A
2007-08: A.2766/S.1338
2009: A.3193/S.5639
2010: A.10471/S.7968
2011-12: A.6669/S.2825
2013-14: A.4358/S.4574
2015-16: A.7796/S.3443

 
FISCAL IMPLICATIONS:

To be determined.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred and eightieth (180) day
after it becomes law.

2017-S8551 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8551
 
                             I N  S E N A T E
 
                               May 10, 2018
                                ___________
 
 Introduced  by  Sen.  BOYLE  -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment 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.
   § 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.
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02755-01-7

 S. 8551                             2
 
 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.
   § 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.

 S. 8551                             3
 
   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.
   § 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.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law.

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