NY State Senate Bill 2019-S1238

Senate Bill S1238

2019-2020 Legislative Session

Relates to requiring state economic development agencies to provide preferences to small businesses and entrepreneurs in the programs that they administer

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Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to commerce, economic development and small business
Jan 11, 2019	referred to commerce, economic development and small business

co-Sponsors

2019-S1238 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Economic Development Law
Laws Affected:: Add §101-a, Ec Dev L; amd §1823, Pub Auth L; add §4-a, UDC Act
Versions Introduced in Other Legislative Sessions:: 2009-2010: S3802
2011-2012: S4410
2013-2014: S1530
2015-2016: S2089, S6588
2017-2018: S2138
2021-2022: S3038
2023-2024: S5407

2019-S1238 (ACTIVE) - Summary

Requires the department of economic development, job development authority, and urban development corporation to provide preferences to small businesses and entrepreneurs in the administration of their economic development assistance programs; requires annual reports thereon.

2019-S1238 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S1238

SPONSOR: SERINO
 
TITLE OF BILL:

An act to amend the economic development law, the public authorities law
and the New York state urban development corporation act, in relation to
providing a preference to small businesses and entrepreneurs in the
award of state economic development assistance

 
PURPOSE:

To require that State economic development agencies give preference to
the small businesses and entrepreneurs in the award of State economic
development assistance.

 
SUMMARY OF PROVISIONS:

This bill amends the economic development law, the public authorities
law with respect to the Job Development Authority and the New York State
Office of Science, Technology and Academic Research and the Urban Devel-

opment Corporation Act.

This bill would direct the Department of Economic Development, the Job
Development Authority, the New York State Office of Science, Technology
and Academic Research and the Urban Development Corporation to give
preference to small businesses and entrepreneurs seeking State economic
development funds.

This bill would require that within each statutory economic development
program, the State agency or authority actively market the program to
small businesses and entrepreneurs, assist small businesses and entre-
preneurs in accessing the program, and in the review of applications for
program funds, give priority to those applications from small businesses
and entrepreneurs. The bill would also require each State economic
development agency to report annually on activities undertaken to
provide small businesses and entrepreneurs with a preference in the
award of funds, and to list those businesses and entrepreneurs.

 
JUSTIFICATION:

Small businesses and entrepreneurs create eight out of every ten new
jobs in New York State. Although many State economic development
programs have been created specifically to assist small businesses and
entrepreneurs in creating or retaining jobs, in reality larger busi-
nesses often have a competitive advantage in accessing State assistance,
with greater levels of resources and in-house expertise.  Often times,
state economic development agencies also display a clear preference for
larger, higher-profile capital projects at the expense of small business
formation and growth.

This bill would vest each State economic development agency and each
State economic development program with the mission of ensuring that
small businesses and entrepreneurs are provided with the information and
assistance they require accessing every state economic development
program. The bill would also direct each state economic development
agency to evaluate applications for financial assistance with the goal
of ensuring that small businesses and entrepreneurs receive priority
consideration in the award of limited state funds.  By establishing a
clear preference in the award of State economic development funds to
small businesses and entrepreneurs, the state may more effectively
target its limited economic development resources to those businesses in
greatest need of assistance and with greatest job creation potential.

 
LEGISLATIVE HISTORY:

2017-18: S.2138 Passed Senate/A.3486 Reported Referred to Ways and Means
2015-16: S.6588 Passed Senate/A.5480 Reported Referred to Ways and Means
2013-14: S.1530 Passed Senate/A.4738 Reported Referred to Ways and Means
2011-12: S.4410 Passed Senate/A.8671 Committed to Ways and Means
2009-10: S.3802 Referred to Commerce, Economic Development & Small Busi-
ness
2007-08: S.3581 Passed Senate/A.6906 Passed Assembly-Vetoed
2005-06: S.2823-B Referred to Commerce, Economic Development & Small
Business/A.521-B Passed Assembly
2003-04: S.7065 Referred to Commerce, Economic Development & Small
Business/A.3913 Passed Assembly

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2019-S1238 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   1238
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                             January 11, 2019
                                ___________
 
 Introduced  by  Sens.  SERINO, AKSHAR, HELMING -- read twice and ordered
   printed, and  when  printed  to  be  committed  to  the  Committee  on
   Commerce, Economic Development and Small Business
 
 AN ACT to amend the economic development law, the public authorities law
   and  the New York state urban development corporation act, in relation
   to providing a preference to small businesses and entrepreneurs in the
   award of state economic development assistance
 
   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
 section 101-a to read as follows:
   § 101-A. PREFERENCES TO SMALL BUSINESSES AND  ENTREPRENEURS.  IN  EACH
 PROGRAM  ADMINISTERED  BY  OR ON BEHALF OF THE DEPARTMENT PURSUANT TO AN
 APPROPRIATION OF FUNDS, AND CONSISTENT WITH ANY STATUTE  GOVERNING  SUCH
 PROGRAM,  PREFERENCE  SHALL BE GIVEN TO THE AWARD OF SUCH FUNDS TO SMALL
 BUSINESSES AND ENTREPRENEURS. SUCH PREFERENCE SHALL INCLUDE, BUT NOT  BE
 LIMITED  TO, ACTIVE MARKETING OF THE PROGRAM SPECIFICALLY TO SMALL BUSI-
 NESSES AND ENTREPRENEURS, PROVIDING ASSISTANCE TO INDIVIDUAL SMALL BUSI-
 NESSES AND ENTREPRENEURS IN ACCESSING AVAILABLE FUNDS UNDER THE PROGRAM,
 AND ESTABLISHING AND WORKING TO MEET THE GOAL OF AWARDING TWENTY PERCENT
 OF AVAILABLE FUNDS UNDER THE PROGRAM TO SMALL BUSINESSES  AND  ENTREPRE-
 NEURS.  FOR PURPOSES OF THIS SECTION, THE TERM "ENTREPRENEUR" SHALL MEAN
 A PERSON WHO ORGANIZES, OPERATES, AND ASSUMES THE  RISK  OF  A  START-UP
 BUSINESS  VENTURE.  THE  DEPARTMENT  SHALL  INCLUDE IN THE ANNUAL REPORT
 REQUIRED PURSUANT TO SUBDIVISION THIRTY-SEVEN-A OF SECTION  ONE  HUNDRED
 OF  THIS  ARTICLE  A  DESCRIPTION  OF ACTIVITIES, A LISTING OF PROPOSALS
 RECEIVING FINANCIAL ASSISTANCE PURSUANT TO  THIS  SECTION  AND  IDENTIFY
 WHETHER THE TWENTY PERCENT GOAL WAS MET FOR EACH PROGRAM.
   § 2. Section 1823 of the public authorities law is amended by adding a
 new subdivision 8 to read as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06712-01-9

 S. 1238                             2
 
   8.  IN EACH PROGRAM ADMINISTERED BY OR ON BEHALF OF THE AUTHORITY, AND
 CONSISTENT WITH ANY STATUTE GOVERNING SUCH PROGRAM, PREFERENCE SHALL  BE
 GIVEN  TO THE AWARD OF SUCH FUNDS TO SMALL BUSINESSES AND ENTREPRENEURS.
 SUCH PREFERENCE SHALL INCLUDE, BUT NOT BE LIMITED TO,  ACTIVE  MARKETING
 OF  THE  PROGRAM  SPECIFICALLY  TO  SMALL  BUSINESSES AND ENTREPRENEURS,
 PROVIDING ASSISTANCE TO INDIVIDUAL SMALL BUSINESSES AND ENTREPRENEURS IN
 ACCESSING AVAILABLE FUNDS UNDER THE PROGRAM, AND ESTABLISHING AND  WORK-
 ING TO MEET THE GOAL OF AWARDING TWENTY PERCENT OF AVAILABLE FUNDS UNDER
 THE PROGRAM TO SMALL BUSINESSES AND ENTREPRENEURS.  FOR PURPOSES OF THIS
 SUBDIVISION,  THE  TERM  "SMALL BUSINESS" SHALL HAVE THE SAME MEANING AS
 PROVIDED IN SECTION ONE HUNDRED THIRTY-ONE OF THE  ECONOMIC  DEVELOPMENT
 LAW  AND  THE  TERM  "ENTREPRENEUR"  SHALL  MEAN A PERSON OR PERSONS WHO
 ORGANIZES, OPERATES,  AND  ASSUMES  THE  RISK  OF  A  START-UP  BUSINESS
 VENTURE.  THE  AUTHORITY  SHALL  INCLUDE  IN  THE  ANNUAL PROGRAM REPORT
 REQUIRED PURSUANT TO SECTION  EIGHTEEN  HUNDRED  TWENTY-NINE-A  OF  THIS
 TITLE  A DESCRIPTION OF ACTIVITIES, A LISTING OF PROPOSALS PROVIDED WITH
 FINANCIAL ASSISTANCE PURSUANT TO THIS SECTION AND IDENTIFY  WHETHER  THE
 TWENTY PERCENT GOAL WAS MET FOR EACH PROGRAM.
   § 3. Section 1 of chapter 174 of the laws of 1968 constituting the New
 York  state urban development corporation act is amended by adding a new
 section 4-a to read as follows:
   § 4-A.  PREFERENCES TO SMALL BUSINESSES AND ENTREPRENEURS.    IN  EACH
 PROGRAM  ADMINISTERED  BY OR ON BEHALF OF THE CORPORATION PURSUANT TO AN
 APPROPRIATION OF FUNDS, AND CONSISTENT WITH ANY STATUTE  GOVERNING  SUCH
 PROGRAM,  PREFERENCE  SHALL BE GIVEN TO THE AWARD OF SUCH FUNDS TO SMALL
 BUSINESSES AND ENTREPRENEURS.  SUCH PREFERENCE SHALL INCLUDE, BUT NOT BE
 LIMITED TO, ACTIVE MARKETING OF THE PROGRAM SPECIFICALLY TO SMALL  BUSI-
 NESSES AND ENTREPRENEURS, PROVIDING ASSISTANCE TO INDIVIDUAL SMALL BUSI-
 NESSES AND ENTREPRENEURS IN ACCESSING AVAILABLE FUNDS UNDER THE PROGRAM,
 AND ESTABLISHING AND WORKING TO MEET THE GOAL OF AWARDING TWENTY PERCENT
 OF  AVAILABLE  FUNDS UNDER THE PROGRAM TO SMALL BUSINESSES AND ENTREPRE-
 NEURS.  FOR PURPOSES OF THIS SECTION, THE TERM  "SMALL  BUSINESS"  SHALL
 HAVE  THE SAME MEANING AS PROVIDED IN SECTION 131 OF THE ECONOMIC DEVEL-
 OPMENT LAW AND THE TERM "ENTREPRENEUR" SHALL MEAN A  PERSON  OR  PERSONS
 WHO  ORGANIZES,  OPERATES,  AND  ASSUMES THE RISK OF A START-UP BUSINESS
 VENTURE. THE CORPORATION SHALL INCLUDE  IN  THE  ANNUAL  PROGRAM  REPORT
 REQUIRED  PURSUANT TO SECTION THIRTY OF THIS ACT A DESCRIPTION OF ACTIV-
 ITIES, A LISTING OF PROPOSALS PROVIDED WITH FINANCIAL ASSISTANCE  PURSU-
 ANT TO THIS SECTION AND IDENTIFY WHETHER THE TWENTY PERCENT GOAL WAS MET
 FOR EACH PROGRAM.
   § 4. This act shall take effect immediately.

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Senate Bill S1238

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Sponsored By

Susan Serino