S T A T E   O F   N E W   Y O R K
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                                 9227--A

                          I N  A S S E M B L Y

                              April 2, 2014
                               ___________

Introduced by M. of A. CRESPO -- read once and referred to the Committee
  on Economic Development -- 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  including kitchen incubators in the New York state busi-
  ness incubator and innovation hot spot support act

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

  Section  1.  Legislative  intent. The legislature hereby finds that in
order to improve economic opportunities for New York state citizens  and
entrepreneurs,  it must use the capabilities of government, business and
community based organizations to offer space and resources to  the  next
generation of food manufacturing businesses.
  One  of the chief obstacles for start-up food manufacturing businesses
is their  inability  to  access  affordable  commercial  kitchen  space.
Currently,  all  over the state, there are only a few kitchen incubators
which are facing high demand and are unable to meet  the  needs  of  the
many potential start-up businesses.
  Kitchen  incubators  are  a valuable resource for New York state as it
moves  to  promote  more  job  development,  business  development   and
increased tax revenues.
  In  New York City alone, there are more than 900 food firms, with over
16,000 employees and another 2,500 who are self-employed. This data  has
been  viewed  as evidence of entrepreneurs' intent to develop their food
manufacturing ideas into full scale production  capabilities  and  fully
functional business entities.
  Minority  and immigrant populations are growing significantly through-
out the state and so are their number  in  entrepreneurship  activities,
including  in  the development and sale of foods from their native place
of origin.  This increase in the population of  minority  and  immigrant
communities, creates growing demand for such foods.
  Kitchen  incubators  housed  at  select  locations throughout New York
state will help develop new  entrepreneurs  and  increase  the  economic
benefits of such activities for the entire state.

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

                                                           LBD14568-03-4

A. 9227--A                          2

  However,  New York must do more to propel these business start-ups and
potential manufacturers into full scale operations and  should  move  to
allow  its  governmental  and  non-governmental entities to expand their
regional economic catalyst activities to serve entrepreneurs looking  to
enter the food manufacturing sector. Kitchen incubators should be recog-
nized and included within New York state's business incubator program.
  S  2.  Subparagraph  (xvi)  of paragraph b of subdivision 2 of section
16-v 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 C of chapter 59 of the laws of  2013,  is  amended  to  read  as
follows:
  (xvi)  a  plan  to  recruit IMMIGRANT, minority- and women-owned busi-
nesses for location and participation with the incubator program.
  S 3. Subdivision 10 of section 16-v of section 1 of chapter 174 of the
laws of 1968, constituting the New York state urban  development  corpo-
ration  act  is  renumbered  subdivision  11 and a new subdivision 10 is
added to read as follows:
  10. (A) NOTWITHSTANDING THE PROVISIONS OF ANY OTHER LAW TO THE CONTRA-
RY, THE CORPORATION IS AUTHORIZED, WITHIN APPROPRIATIONS MADE  AVAILABLE
UNDER  THIS SECTION, TO AWARD GRANTS, LOW INTEREST LOANS OR OTHER FINAN-
CIAL SUPPORT IN RESPONSE TO REQUESTS FOR PROPOSALS FROM  LOCAL  DEVELOP-
MENT  CORPORATIONS,  EDUCATIONAL  INSTITUTIONS  AND OTHER NOT-FOR-PROFIT
ORGANIZATIONS FOR THE COSTS ASSOCIATED WITH  STARTING  OR  OPERATING,  A
KITCHEN  INCUBATOR. SUCH GRANTS, LOANS OR OTHER FINANCIAL SUPPORT MAY BE
USED FOR THE PURPOSES OF THE PURCHASE OF EQUIPMENT, TRAINING,  TECHNICAL
ASSISTANCE, AND OTHER PURPOSES NECESSARY FOR THE SUCCESSFUL OPERATION OF
THE  KITCHEN INCUBATOR.  KITCHEN INCUBATORS SHALL BE "FOOD PROCESSING OR
PREPARATION FACILITIES" THAT PROVIDE  SHARED  EQUIPMENT  AND  SPACE  FOR
BUSINESSES  IN THE FORMATIVE STAGE OF DEVELOPMENT AND ARE LOCATED IN NEW
YORK STATE. ORGANIZATIONS PROVIDING KITCHEN INCUBATOR SPACE MUST, TO THE
BEST OF THEIR ABILITY, ALSO MAKE AVAILABLE OR ASSIST PARTICIPATING BUSI-
NESSES IN ACCESSING FOOD PRODUCTION, PREPARATION OR PROCESSING TECHNICAL
ASSISTANCE, COMPLYING WITH ALL STATE AND LOCAL SANITARY  CODES,  MARKET-
ING,  STORAGE,  DISTRIBUTION,  BUSINESS  DEVELOPMENT  SERVICES,  CAPITAL
ACCESS AND OTHER SERVICES. APPLICANTS FOR GRANTS, LOW-INTEREST LOANS  OR
OTHER  FINANCIAL  SUPPORT MUST PROVIDE A PRACTICAL BUSINESS PLAN FOR THE
PROFITABLE OPERATING OF THE KITCHEN INCUBATOR WHICH  INCLUDES  A  POLICY
FOR  TENANTS'  ENTRANCE  TO AND EXIT FROM THE FACILITY; DOCUMENTATION OF
THE APPLICANT'S ABILITY TO PROVIDE SERVICES TO TENANTS, COMPLY WITH  ALL
STATE AND LOCAL SANITARY CODES, AND HOW SERVICES WILL BE FINANCED; AND A
PLAN  FOR RECRUITING IMMIGRANT, MINORITY- AND WOMEN-OWNED BUSINESSES FOR
PARTICIPATION IN THE INCUBATOR.
  (B) FOR THE PURPOSES OF THIS SUBDIVISION, "FOOD PROCESSING OR PREPARA-
TION FACILITIES" SHALL MEAN THOSE  FACILITIES  IN  WHICH  FOOD  OR  FOOD
PRODUCTS  ARE ASSEMBLED, PROCESSED, COOKED, PRESERVED, FROZEN, OR CANNED
OR BOTTLED TO BE USED  FOR    HUMAN  CONSUMPTION.  SUCH  FACILITIES  MAY
INCLUDE  ALL  SUPPORTING ANCILLARY FACILITIES TO BE USED FOR THE STORAGE
OR WAREHOUSING OF PROCESSED OR  MANUFACTURED  FOODS  OR  FOOD  PRODUCTS,
EMPTY CONTAINERS, BOTTLES AND CANS TO BE USED IN THE PROCESS OF MANUFAC-
TURING  SUCH  FOOD  ITEMS AND THE EQUIPMENT NEEDED TO PROCESS, BOTTLE OR
PACKAGE SUCH FOODS OR FOOD PRODUCTS.
  S 4. This act shall take effect immediately.