§ 10. 1. The department of agriculture and markets, within moneys
appropriated therefor, shall enter into a contract or contracts with the
New York wine/grape foundation created by section two of this act for:

(a) a research study or studies into new or improved methods of
production, packaging, and processing of wine, grapes, and grape
products; production of by-products of grape manufacturing processes and
any other marketable products; improved methods of grape breeding, virus
resistance and control of pests and disease; vineyard conversion;
mechanization of brandy production; and overall improvement in the
production and quality of wines, grapes and grape products;

(b) a demonstration project or projects to reduce agricultural
unemployment and increase state and local revenues by developing methods
and techniques to enhance the image and quality of New York wine and
grape products so as to expand existing markets and develop new markets
therefor;

(c) advertising and promotion of the sale of wine and other grape
products in areas that will reach the greatest number of potential
consumers;

(d) publication and distribution to producers, retailers and consumers
information relating to the grape, wine and grape products industries;

(e) the facilitating of educational and promotional activities to
enhance the image of New York wines and grape products through
coordination, promotional and educational activities with other
organizations; and

(f) the carrying out in any other way the declared policy of this act
to promote wine and other grape products and the grape industry of this
state.

Not less than twenty-five percent and not more than forty percent of
the sum total of moneys made available to the foundation through such
contract or contracts shall be applied for purposes of paragraph (a) of
this subdivision, and not more than two and one-half percent of such
moneys shall be applied for purposes of administration of the
foundation.

2. Any such contract shall provide that the cost of the work to be
performed thereunder during the state fiscal year commencing April 1,
1987 shall be at least one hundred eleven percent of the amount to be
paid by the state to such foundation. Any such contract shall provide
that the cost of the work to be performed thereunder during the state
fiscal year commencing April 1, 1988 shall be at least one hundred
thirty-three percent of the amount to be paid by the state to such
foundation. Any such contract shall provide that the cost of the work to
be performed thereunder during the state fiscal year commencing April 1,
1989 shall be at least two hundred percent of the amount paid by the
state to such foundation. Any such contract shall provide that the work
to be performed thereunder during the state fiscal year commencing April
1, 1990 shall be at least four hundred percent of the amount paid by the
state to such foundation. No such contract shall be entered into between
the foundation and the department of agriculture and markets unless and
until the foundation expressly commits funds of the foundation in an
amount sufficient, together with the amount to be paid by the state, to
pay the total cost of the work to be performed under such contract;
provided, however, that no such commitment shall be required in the case
of a contract to be entered into prior to April 1, 1987.