S T A T E O F N E W Y O R K
________________________________________________________________________
6825
2015-2016 Regular Sessions
I N A S S E M B L Y
April 6, 2015
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Introduced by M. of A. CRESPO -- 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 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.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03954-01-5
A. 6825 2
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.
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.