S T A T E   O F   N E W   Y O R K
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                                  6997

                       2013-2014 Regular Sessions

                          I N  A S S E M B L Y

                             April 29, 2013
                               ___________

Introduced  by M. of A. COOK, ORTIZ, MORELLE, JACOBS, COLTON, LUPARDO --
  Multi-Sponsored by -- M. of A. CLARK, GANTT, GOTTFRIED, HOOPER, MAGEE,
  MILLMAN, RAMOS, RIVERA, ROBINSON, SCARBOROUGH, WRIGHT -- read once and
  referred to the Committee on Economic Development

AN ACT to amend the New York state urban development corporation act, in
  relation to kitchen incubator/shared-use kitchen facilities

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1. 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 16-w to read as follows:
  S  16-W.  SMALL BUSINESS KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM.
1. THERE IS HEREBY ESTABLISHED WITHIN THE CORPORATION A  SMALL  BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN PROGRAM. THE CORPORATION IS AUTHOR-
IZED WITHIN AVAILABLE APPROPRIATIONS IN THE EMPIRE STATE ECONOMIC DEVEL-
OPMENT  FUND  ESTABLISHED PURSUANT TO SECTION 16-I OF THIS ACT, TO AWARD
GRANTS, ON A COMPETITIVE BASIS IN RESPONSE TO REQUEST-FOR-PROPOSALS,  TO
LOCAL   DEVELOPMENT  CORPORATIONS,  MUNICIPALITIES,  EDUCATIONAL  INSTI-
TUTIONS, AND OTHER NOT-FOR-PROFIT ORGANIZATIONS FOR THE  COSTS  INVOLVED
IN  STARTING OR EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILI-
TY.  THE CORPORATION IS FURTHER AUTHORIZED TO CONTRACT WITH THE  COMMIS-
SIONER  OF  AGRICULTURE AND MARKETS, AND SUCH COMMISSIONER IS AUTHORIZED
TO CONTRACT WITH THE CORPORATION, TO  PREPARE  AND  ISSUE  REQUESTS  FOR
PROPOSALS,  ACCEPT GRANT APPLICATIONS, RECOMMEND THOSE APPLICATIONS THAT
BEST MEET ESTABLISHED CRITERIA, TO ESTABLISH CRITERIA AND TO  ADMINISTER
GRANTS  AWARDED UNDER THIS SUBDIVISION.  SUCH GRANTS MAY BE USED FOR THE
CONSTRUCTION OR REHABILITATION OF SUCH FACILITY, PURCHASE OF  EQUIPMENT,
TRAINING,  TECHNICAL  ASSISTANCE,  AND  OTHER PURPOSES NECESSARY FOR THE
SUCCESSFUL DEVELOPMENT OR EXPANSION OF  A  KITCHEN  INCUBATOR/SHARED-USE
KITCHEN  FACILITY. KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES SHALL
BE FOOD PROCESSING  OR  PREPARATION  FACILITIES  THAT  ARE  OPERATED  BY

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01853-03-3
              

A. 6997                             2

NOT-FOR-PROFIT CORPORATIONS OR GOVERNMENT AGENCIES AND USED PRIMARILY BY
SMALL AND EMERGING BUSINESSES, INCLUDING BOTH FULL-TIME FACILITY TENANTS
AND  BUSINESSES THAT RENT SPACE ON A TEMPORARY BASIS.  THEY MUST PROVIDE
OR MAKE AVAILABLE FOR FACILITY BUSINESSES: LOW-COST SPACE, BELOW CURRENT
MARKET  VALUE  IN  THE  AREA  THE FACILITY SERVES; AND SUPPORT SERVICES,
INCLUDING BUT NOT LIMITED TO, BUSINESS PLANNING, MANAGEMENT  ASSISTANCE,
FINANCIAL  PACKAGING,  LINKAGES  TO  FINANCING SOURCES, AND COORDINATION
WITH OTHER SOURCES OF TRAINING AND ASSISTANCE.  THEY MAY PROVIDE OR MAKE
AVAILABLE FOR FACILITY BUSINESSES, SERVICES SUCH AS FOOD  PRODUCTION  OR
PROCESSING  TECHNICAL  ASSISTANCE,  MARKETING, DISTRIBUTION, PURCHASING,
STORAGE, PACKING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES.
  2. PROJECT PLANS.   APPLICANTS FOR GRANTS MUST  PROVIDE  A  MANAGEMENT
PLAN  AND A BUSINESS PLAN FOR OPERATING THE KITCHEN INCUBATOR/SHARED-USE
KITCHEN FACILITY WHICH DEMONSTRATES TO THE SATISFACTION  OF  THE  CORPO-
RATION:  (I)  LOCAL  BUSINESS  INTEREST  IN  A NEW OR EXPANDED FACILITY,
INCLUDING THE FOOD PROCESSING NEEDS OF EXISTING AND POTENTIAL FOOD BUSI-
NESSES; (II) THE APPLICANT'S ABILITY TO DELIVER SERVICES AND  ASSISTANCE
AS DESCRIBED IN SUBDIVISION ONE OF THIS SECTION, INCLUDING A DESCRIPTION
OF HOW SUCH ASSISTANCE AND SERVICES WILL BE DELIVERED; (III) WHETHER THE
SERVICES  PROVIDED  TO  FACILITY  TENANTS  WILL  BE  COVERED  BY FEES OR
INCLUDED IN THE RENT, AND HOW RENTALS AND/OR FEES  WILL  BE  STRUCTURED;
(IV) A POLICY FOR TENANTS' ENTRANCE TO AND EXIT, OR GRADUATION, FROM THE
FACILITY; AND, (V) THAT THE FACILITY CAN BE SELF-SUSTAINING AND WILL NOT
REQUIRE LONG-TERM STATE OPERATING SUBSIDIES.
  3.  GRANT  CRITERIA. GRANTS AND LOANS MADE BY THE CORPORATION PURSUANT
TO THIS SECTION SHALL BE SUBJECT TO THE FOLLOWING LIMITATIONS:
  A. NO SUCH GRANT SHALL EXCEED TWO HUNDRED FIFTY THOUSAND  DOLLARS  PER
YEAR; AND
  B.  PREFERENCE  SHALL  BE  GIVEN  TO APPLICANTS WHICH: (I) MEET HIGHLY
DISTRESSED AREA CRITERIA; PROVIDE A  LOCAL  MATCH;  MEET  A  SUBSTANTIAL
LOCAL  OR  REGIONAL  NEED; COMPLEMENT LOCAL PROGRAMS OR PROVIDE SERVICES
NOT READILY AVAILABLE FROM UNITS OF  LOCAL  GOVERNMENT  OR  THE  PRIVATE
SECTOR;  PLAN  TO  PROVIDE  OR  MAKE  AVAILABLE FOR FACILITY BUSINESSES,
SERVICES, INCLUDING BUT NOT LIMITED TO, FOOD  PRODUCTION  OR  PROCESSING
TECHNICAL  ASSISTANCE,  MARKETING,  DISTRIBUTION,  PURCHASING,  STORAGE,
PACKAGING, INSURANCE, ON-SITE RETAILING OR OTHER SERVICES; AND (II) HAVE
DEVELOPED A PLAN TO ASSIST BUSINESSES PARTICIPATING IN  THE  APPLICANT'S
KITCHEN  INCUBATOR/SHARED-USE  KITCHEN FACILITY WITH PURCHASING NEW YORK
STATE AGRICULTURAL PRODUCTS, AND  PROMOTING  THE  FACILITY  TO  REGIONAL
FARMERS.
  S  2.  Paragraph  (b) of subdivision 1 of section 16-m of section 1 of
chapter 174 of the laws of 1968, constituting the New York  state  urban
development  corporation act, as added by section 1 of part N of chapter
84 of the laws of 2002, is amended to read as follows:
  (b) Loans, loan guarantees,  and  grants  including  interest  subsidy
grants  may  be provided to municipalities, industrial development agen-
cies, not-for-profit corporations or local development corporations  for
the  purpose  of  developing  federal  facility  sites, urban industrial
sites, industrial parks and incubator buildings INCLUDING SMALL BUSINESS
KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITIES; or to undertake prelim-
inary planning relating thereto;
  S 3. This act shall take effect immediately, provided,  however,  that
the  amendments to section 16-m of the urban development corporation act
made by section two of this act shall not affect the expiration of  such
section and shall expire and be deemed repealed therewith.