* § 131-i. Family loan program. 1. From amounts appropriated for such
purpose, the department of labor in consultation with the department is
hereby authorized and directed to solicit proposals to establish
programs to be known as family loan programs. Such programs shall
provide small, no-interest loans to custodial parents with income below
two hundred percent of the federal poverty level and who are working or
enrolled in a post-secondary education program, to aid in covering the
costs of unexpected expenses that could interfere with their ability to
maintain employment or continue education. Loans awarded through a
family loan program may be paid directly to a third party on behalf of a
loan recipient and in either case shall not constitute income or
resources for the purposes of public assistance and care so long as the
funds are used for the intended purpose.

2. The commissioner of labor shall enter into written agreements with
not-for-profit organizations or local government agencies to administer
loan pools. Agreements shall be entered into with no more than four
organizations and/or agencies, no more than one of which shall be
located in the city of New York.

3. Program sites shall be approved based on the demonstrated ability
of the organization or governmental agency to secure funding from
private and/or public sources sufficient to establish a loan pool to be
maintained through repayment agreements entered into by eligible
low-income families. Funds awarded by the department of labor to
approved program sites shall be used for the express purposes of
covering staffing and administration costs associated with administering
the loan pool.

4. From amounts appropriated for such purpose, the department of labor
in consultation with the office of temporary and disability assistance
is hereby authorized and directed to solicit proposals to establish up
to four new family loan programs. Such programs shall operate according
to provisions set forth in subdivision one through three of this
section; provided, however, that such programs may provide no- or
low-interest loans, and further provided that applications submitted by
a consortium of not-for-profit organizations or local government
agencies shall be viewed as one program and may receive greater funding
by the department of labor than an application submitted by a single
organization or agency. Low-interest loans shall not exceed a rate
greater than two-thirds of the prime rate. No not-for-profit
organization or local government agency awarded funding from
appropriations made in the nineteen hundred ninety-seven--nineteen
hundred ninety-eight fiscal year shall be eligible for funds made
available from appropriations made in the nineteen hundred
ninety-nine--two thousand fiscal year.

* NB There are 2 § 131-i's