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H. 3663
STATUS INFORMATION
General Bill
Sponsors: Reps. J.H. Neal, Weeks, Whipper, Anderson, Branham, J. Brown, Cobb-Hunter, M. Hines, Hosey, Lee, Mack, Parks and Rutherford
Document Path: l:\council\bills\bbm\10590mm05.doc
Introduced in the House on March 1, 2005
Currently residing in the House Committee on Ways and Means
Summary: Microenterprise Development Act
HISTORY OF LEGISLATIVE ACTIONS
Date Body Action Description with journal page number
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3/1/2005 House Introduced and read first time HJ-6
3/1/2005 House Referred to Committee on Ways and Means HJ-6
View the latest legislative information at the LPITS web site
VERSIONS OF THIS BILL
TO AMEND THE CODE OF LAWS OF SOUTH CAROLINA, 1976, BY ADDING SECTION 13-1-1780 SO AS TO ENACT THE "MICROENTERPRISE DEVELOPMENT ACT" AND TO PROVIDE THAT THE COORDINATING COUNCIL FOR ECONOMIC DEVELOPMENT ESTABLISH A MATCHING GRANT PROGRAM TO OFFER TECHNICAL ASSISTANCE AND CAPACITY BUILDING TO ORGANIZATIONS QUALIFIED TO PROVIDE SERVICES TO LOW-INCOME MICROENTERPRISES, TO DEFINE TERMS, TO ESTABLISH GUIDELINES FOR AVAILABILITY OF GRANTS AND FOR ELIGIBILITY OF RECIPIENTS, AND TO AUTHORIZE THE DEPARTMENT OF COMMERCE TO PROMULGATE NECESSARY REGULATIONS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. The General Assembly finds that:
(1) there is a need to develop and expand businesses in economically distressed communities in both rural and urban areas of South Carolina, and there is a need to assist residents who are unemployed, underemployed, or in low-income jobs;
(2) microenterprises provide a means for unemployed, underemployed, or low-income individuals to find and sustain productive work, and opportunities for economically distressed communities to thrive, one microentrepreneur at a time;
(3) there is a lack of access to capital, training, and technical assistance for low-income microentrepreneurs. Many low-income microentrepreneurs need technical assistance to start, operate, or expand their businesses;
(4) local microenterprise support organizations have demonstrated cost-effective delivery methods for providing technical assistance;
(5) charitable foundation support, federal program funding, and private sector support can be leveraged by and coordinated for a statewide program for development of microenterprises; and
(6) such a statewide strategy strengthens the South Carolina economy and enables low-income residents of the State to become self-sufficient by encouraging microenterprise development.
SECTION 2. Article 11, Chapter 1, Title 13 of the 1976 Code is amended by adding:
"Section 13-1-1780. (A) This act may be cited as the 'Microenterprise Development Act'.
(B)(1) 'Council' means the Coordinating Council for Economic Development.
(2) 'Microenterprise' means a sole proprietorship, partnership, or corporation that has fewer than five employees and generally lacks access to conventional loans, equity, or other banking services.
(3) 'Microenterprise development organization or program' means a nonprofit entity, or a program administered by a nonprofit entity, including community development corporations or other nonprofit development organizations and social service organizations, that provides services to low-income microenterprises.
(4) 'Training and technical assistance' means services and support provided to low-income owners and operators of microenterprises including, but not limited to, assistance for the purpose of enhancing business planning, marketing, management, financial management skills, and accessing financial services.
(5) 'Low income person' means a person with income adjusted for family size that does not exceed for:
(a) metropolitan areas, eighty percent of median income; or
(b) nonmetropolitan areas, the greater of eighty percent of the area median income or eighty percent of the state nonmetropolitan area median income.
(C)(1) The council shall establish a microenterprise technical assistance and capacity building grant program to provide assistance in the form of grants to qualified organizations. A qualified organization shall use these grants made to provide training and technical assistance to low-income entrepreneurs. The council shall ensure that at least fifty percent of the funds made available through this program are used to benefit persons whose income, adjusted for family size, is not more than one hundred fifty percent of the poverty line as defined in 42 U.S.C. 9902(2).
(2) To be eligible for a grant, a qualified organization shall be a nonprofit microenterprise development organization that has a demonstrated record of delivering services to low-income individuals.
(3) A qualified organization must provide at least one dollar in matching funds for every dollar of state financial assistance. Grants and gifts from public or private sources may be used to comply with the matching funds requirement.
(4) The Department of Commerce shall establish by regulation the requirements necessary to carry out this section."
SECTION 3. This act takes effect upon approval by the Governor.
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