NY State Senate Bill 2009-S3594

Senate Bill S3594

Vetoed By Governor

2009-2010 Legislative Session

Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation

download bill text pdf

Archive: Last Bill Status Via A4166 - Vetoed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Vetoed By Governor
Signed By Governor

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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 22, 2009	tabled
Jul 21, 2009	vetoed memo.13
Jul 10, 2009	delivered to governor
Jun 03, 2009	returned to assembly passed senate
May 26, 2009	3rd reading cal.376 substituted for s3594
May 26, 2009	substituted by a4166 advanced to third reading
May 20, 2009	2nd report cal.
May 19, 2009	1st report cal.376
Apr 22, 2009	reported and committed to finance
Mar 25, 2009	referred to corporations, authorities and commissions

Votes

- Jun 3, 2009 - Floor Vote
  A4166
  
  62
  
  Aye
  
  0
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Jun 3, 2009
      
      aye (62)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      McDonald
      
      Monserrate
      
      Montgomery
      
      Morahan
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Volker
      
      Winner
      
      Young

2009-S3594 (ACTIVE) - Details

See Assembly Version of this Bill:: A4166
Law Section:: New York State Urban Development Corporation Act
Laws Affected:: Add §16-t, amd §16-m, UDC Act

2009-S3594 (ACTIVE) - Summary

Establishes a kitchen incubator/shared-use kitchen facility program within the urban development corporation to provide grant funding to local development corporations, municipalities, educational institutions and not-for-profit entities for the development or expansion of kitchen incubator/shared-use kitchen facilities which make available services such as food production, technical assistance, business management and marketing, distribution, storage and retailing assistance, particularly in economically distressed areas.

2009-S3594 (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3594

 TITLE OF BILL :
An act to amend chapter 174 of the laws of 1968 constituting the New
York state urban development corporation act, in relation to kitchen
incubator/shared-use kitchen facilities


 PURPOSE OF BILL :
To enable not-far-profit sponsors of small-scale food processing
facilities to apply for start-up funding from the empire state
economic development fund.

 SUMMARY OF SPECIFIC PROVISIONS :
Would add a new section 16-t to chapter 174 of the laws of 1968
constituting the NYS Urban Development Corporation Act creating a
kitchen incubator/shared-use kitchen facility grant program.

Section 1. Subdivision (1) defines these facilities as government
licensed food processing or preparation facilities, sponsored by
not-for-profits or government agencies, and used by small emerging
food businesses who are either full-time or temporary tenants. The
sponsors must provide low-cost space and financing and business
support services. Other services, such as technical, production,
distribution and sales assistance to tenants, may be provided. The
corporation is. authorized to award competitive grants to sponsors for

construction, rehabilitation, equipment, training, technical
assistance and other approved purposes.

Subdivision (2) requires grant applicants to provide management plans
for financial self-sufficiency, community needs assessment, and
planning for providing assistance described in paragraph (1).

Subdivision (3) allows for one grant per applicant per year, up to
$250,000.  preference is given to applicants: from distressed areas or
economic development zones; providing a local match; meeting local
needs; providing services not offered by local governments or
business; providing services and assistance in addition to that
required in subdivision one; and, with a plan, developed in
cooperation with the Department of Agriculture and Markets, to assist
facility businesses with purchasing NYS farm products and promoting
the facility to regional farmers.

Section 2. amends paragraph b of subdivision 1 of section 16-m of
section 1 of chapter 174 of the laws of 1968 as added by chapter 84 of
the laws of 2002 to include kitchen incubator/shared-use kitchen
programs in the Economic Development Fund.

 EFFECTS OF PRESENT LAW WHICH THIS BILL WOULD ALTER :
Expands the list of ventures that can apply for loans, loan guarantees
and grants for the purposes of developing federal facility sites,
urban industrial sites, industrial parks and incubator buildings to
also include small business kitchen incubator/shared-use kitchen
facilities.

 JUSTIFICATION :
Small businesses provide a significant portion of the jobs, and
opportunities for financial success, in our State. This is especially
true for distressed communities, rural areas, immigrant populations
and women and minorities. In the food sector of our economy many
successful enterprises have been started at home or on the farm by
individuals who may not have an advanced degree or investment income
but have created a great recipe or family dish that could be developed
into a profitable product.


The growth of these types of businesses is often dependent on
affordable, available processing space, financing, management
assistance and other services that can nurture an emerging firm. A
facility assisting the growth of new or expanding businesses is called
an incubator. Kitchen incubators are similar to other types of
business incubators; they provide inexpensive space, shared services,
access to financing and other support to multiple small enterprises
such as specialty food producers, farmers, street vendors,
restaurants, caterers, and food service training programs. These food
business incubators can be built from scratch but most often are
located in buildings, such as abandoned or under used food service
facilities, that already have available food preparation space and
equipment. The goals of these "kitchen" facilities are to foster
entrepreneurship, job development, and community revitalization. An
additional goal is improving local farm sustainability by providing an
outlet for farmers to sell, or add value themselves, to their farm
products. This bill would provide seed funding for communities to
establish facilities that provide opportunities for all segments of
our society to become food business owners. New business owners create
jobs for the surrounding area. The facility could also participate in
workforce training and development. The proposed funding for these
facilities would be targeted and carefully allocated. Program sponsors
would be required to develop a facility that is based on a sound plan
that analyzes community needs, and ensures fiscal responsibility. The
State's economic development efforts currently focus financial
assistance to large companies; however, major food processors have
virtually disappeared from New York. Creating a program for small
scale food businesses will help reverse this trend, benefiting local
economies, workers and farmers.

 FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS :
Grants and loans shall be subject to state appropriations available in
the empire state economic development fund.

 EFFECTIVE DATE :
Immediate.

2009-S3594 (ACTIVE) - Bill Text download pdf

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

                                  3594

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             March 25, 2009
                               ___________

Introduced  by  Sen. KRUEGER -- read twice and ordered printed, and when
  printed to be committed to the Committee on Corporations,  Authorities
  and Commissions

AN  ACT  to  amend  chapter 174 of the laws of 1968 constituting 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-t to read as follows:
  S 16-T. 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 TO AWARD GRANTS, ON  A  COMPETITIVE
BASIS  IN RESPONSE TO REQUEST-FOR-PROPOSALS, TO LOCAL DEVELOPMENT CORPO-
RATIONS,   MUNICIPALITIES,   EDUCATIONAL   INSTITUTIONS,    AND    OTHER
NOT-FOR-PROFIT  ORGANIZATIONS  FOR  THE  COSTS  INVOLVED  IN STARTING OR
EXPANDING A KITCHEN INCUBATOR/SHARED-USE KITCHEN FACILITY.  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 NOT-FOR-PROFIT  CORPORATIONS
OR  GOVERNMENT  AGENCIES  AND USED PRIMARILY BY SMALL AND EMERGING BUSI-
NESSES, INCLUDING BOTH FULL-TIME FACILITY TENANTS  AND  BUSINESSES  THAT
RENT  SPACE  ON A TEMPORARY BASIS.  THESE FACILITIES MUST BE LICENSED OR
CERTIFIED BY APPROPRIATE STATE AND FEDERAL FOOD SAFETY AGENCIES.    THEY
MUST  PROVIDE OR MAKE AVAILABLE FOR FACILITY BUSINESSES: LOW-COST SPACE,
BELOW CURRENT MARKET VALUE IN THE AREA THE FACILITY SERVES; AND  SUPPORT

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD01258-01-9

S. 3594                             2

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;
  B. NO MORE THAN ONE GRANT PER YEAR PER APPLICATION; AND
  C. PREFERENCE SHALL BE GIVEN TO  APPLICANTS  WHICH:  (I)  MEET  HIGHLY
DISTRESSED  AREA  CRITERIA  OR  WHICH  SUPPORT  EMPIRE ZONES ESTABLISHED
PURSUANT TO ARTICLE 18-B OF THE GENERAL MUNICIPAL LAW; 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,  IN COOPERATION WITH THE
DEPARTMENT OF AGRICULTURE AND MARKETS, TO ASSIST BUSINESSES  PARTICIPAT-
ING  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.

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