S T A T E   O F   N E W   Y O R K
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                                  8292--A
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               June 6, 2017
                                ___________
 
 Introduced  by  M.  of  A.  SEAWRIGHT  --  read once and referred to the
   Committee on Economic Development -- recommitted to the  Committee  on
   Economic  Development  in  accordance  with Assembly Rule 3, sec. 2 --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted to said committee

 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-bb to read as follows:
   § 16-BB. 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 SIXTEEN-I OF  THIS  ACT,  TO
 AWARD  GRANTS,  ON A COMPETITIVE BASIS IN RESPONSE TO REQUEST-FOR-PROPO-
 SALS, TO LOCAL  DEVELOPMENT  CORPORATIONS,  MUNICIPALITIES,  EDUCATIONAL
 INSTITUTIONS,  AND  OTHER  NOT-FOR-PROFIT  ORGANIZATIONS  FOR  THE COSTS
 INVOLVED IN STARTING OR EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN
 FACILITY.  THE CORPORATION IS FURTHER AUTHORIZED TO  CONTRACT  WITH  THE
 COMMISSIONER  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 FACILI-
 TIES THAT ARE OPERATED  BY  NOT-FOR-PROFIT  CORPORATIONS  OR  GOVERNMENT
 AGENCIES  AND USED PRIMARILY BY SMALL AND EMERGING BUSINESSES, INCLUDING
              

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD06262-02-8

 A. 8292--A                          2
 
 BOTH FULL-TIME FACILITY TENANTS AND BUSINESSES  THAT  RENT  SPACE  ON  A
 TEMPORARY BASIS.  THEY MUST PROVIDE OR MAKE AVAILABLE FOR FACILITY BUSI-
 NESSES:  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  BUSI-
 NESSES, SERVICES SUCH AS FOOD PRODUCTION OR PROCESSING TECHNICAL ASSIST-
 ANCE,  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.
   §  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;
   § 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.