BILL NUMBER: S2005
SPONSOR: SANDERS
 
TITLE OF BILL:
An act to amend the New York state urban development corporation act, in
relation to creating the "NYS entrepreneurial training act"
 
PURPOSE:
This bill would amend the New York state urban development corporation
act to establish the NYS Entrepreneurial Training Act.
 
SUMMARY OF PROVISIONS:
1 of this bill titles this bill the NYS Entrepreneurial Training Act.
Section 2:
1. Establishes the NYS Entrepreneurial Training Act within the empire
state development corporation.
2. In order for an eligible applicant to receive an award of an annual
grant an applicant shall submit with its application a gradable business
plan for the use of the grant money.
3. Program must include at least 20% participants who qualify as MWBEs
under NYS law and must include at least 10% participants who are veter-
ans of the U.S. military.
4. Cities of over 1,000,000 people shall be allocated $5,000,000 for a
program to train entrepreneurial candidates. $1,000,000 for the opera-
tion of the program. $4,000,000 for 400 $10,000 grants to successful
graduates of the program.
5. Cities and towns of over 90,000 people shall be allocated $500,000
for a program to train entrepreneurial candidates. $100,000 for the
operation of the program. $400,000 for 40 $10,000 grants to successful
graduates of the program.
Section 3: Effective date.
 
EXISTING LAW:
Such program does not exist under current law.
 
JUSTIFICATION:
According the Bureau of Labor Statistics, since the last recession, from
mid-2009 to 2011, small firms accounted for 67 percent of the net new
jobs. As New York State continues to struggle through an economic down-
turn due to the COVID-19 pandemic, this program is needed more than
ever.
As a way to stimulate start-up businesses and job creation, the NYS
Entrepreneurial Training Act will help train potential entrepreneurs.
Instead of just handing money over to potential entrepreneurs, NYS
Entrepreneurial Training Act will train them how to start and manage a
business. Training potential entrepreneurs will make their start-up
businesses more like to succeed. As the new businesses begin to grow,
they will hire new employees and increase tax revenues to the state.
 
LEGISLATIVE HISTORY:
2015: REFERRED TO SENATE EDUCATION
2016: REFERRED TO SENATE EDUCATION
2017: REFERRED TO SENATE EDUCATION
2018: REFERRED TO SENATE EDUCATION
2019: REFERRED TO SENATE EDUCATION
2020: REFERRED TO SENATE EDUCATION
2021: REFERRED TO SENATE CORPORATIONS, AUTHORITIES AND COMMISSIONS
2021: referred to assembly economic development
2022: REFERRED TO SENATE CORPORATIONS, AUTHORITIES AND COMMISSIONS
2022: referred to assembly economic development
 
FISCAL IMPLICATIONS:
The initial cost to the state will be approximately $5.5 million. Over
time, the state will receive additional taxes, including sales and
employments taxes, that is undetermined at this time.
 
LOCAL FISCAL IMPLICATIONS:
None
 
EFFECTIVE DATE:
This act shall take effect immediately.