Finances the transportation and distribution of New York state farm grown products to food service markets, including restaurants, schools, colleges, and others, especially in underserved urban and other communities.
TITLE OF BILL: An act to amend the New York state urban development corporation act, in relation to financing the transportation and distribution of foods grown in New York state for delivery to food service institutions and underserved markets
PURPOSE OR GENERAL IDEA OF BILL: To provide Economic Development financing for transportation projects to facilitate delivery of New York farm products from farmers and associations of farmers to institutional food service purchasers such as restaurants, schools and other food service operations.
SUMMARY OF SPECIFIC PROVISIONS: Adds a new paragraph 1 to subdivision 1 of section 16-m of Chapter 174 of the laws of 1968 creating the Urban Development Corporation. Paragraph 1 would provide loans and grants to local and regional organizations to finance transportation and distribution projects facilitating distribution and sales of New York farm products by farmers to food and food services and processors, and buyers such as restaurants, food retailers, schools and other institutions in communities where New York foods are lacking. Financing can be used for construction, renovation, and acquisition of land, buildings, machinery and equipment.
JUSTIFICATION: New York farmers produce some of the finest fruits, vegetables, meats and dairy products anywhere and there is an increasing recognition of the taste, quality and freshness of these local farm products by chefs and consumers. Unfortunately, it is difficult for many of our family farmers to get their products to buyers who are very interested in purchasing them, especially in New York City, the number one restaurant location in the U.S. School food service programs are also looking for New York products as part of the New York Farm-to-School Law but distribution and delivery problems have sometimes been a problem. The volumes needed by some food service operations may require several farmers to combine their products to meet an order which further puts a strain on distribution and delivery.
Providing financing for farm product transportation projects would help the farm economy by opening up valuable food service markets. These projects could provide services that individual farmers could not afford and for which they do not have the time. The economic benefits to farm regions from increased sales could lead to increased business activity and jobs in those communities and new jobs for the transportation projects themselves. In addition, businesses and consumers in urban and suburban communities would benefit from the fresher, nutritious, quality food and meals available because of these projects.
This bill was amended for technical reasons that involve the effective date.
PRIOR LEGISLATIVE HISTORY:
2005/06 - A.8000 Referred to Agriculture 2007/08 - A.5024 Referred to Agriculture 2009/10 - S.6203 Referred to Corporations, Authorities, & Commissions, Passed Senate
FISCAL IMPLICATIONS: Subject to budget appropriations.
EFFECTIVE DATE: This act shall take effect immediately, provided that the amendments to section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York Urban Development Corporation Act, made by section one of this act, shall not affect the expiration of such section and shall be deemed to expire therewith.
STATE OF NEW YORK ________________________________________________________________________ 614--A 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________Introduced by Sens. KLEIN, KRUEGER, OPPENHEIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions -- 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 financing the transportation and distribution of foods grown in New York state for delivery to food service institutions and underserved markets THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. 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, is amended by adding a new paragraph (l) to read as follows: (L) LOANS, LOAN GUARANTEES, INTEREST SUBSIDIES AND GRANTS INCLUDING INTEREST SUBSIDY GRANTS TO LOCAL OR REGIONAL ORGANIZATIONS TO FINANCE TRANSPORTATION AND DISTRIBUTION PROJECTS THAT FACILITATE DISTRIBUTION AND SALES OF NEW YORK FARM PRODUCTS BY FARMERS AND ASSOCIATIONS OF FARM- ERS TO FOOD AND FOOD SERVICES BUYERS AND PROCESSORS, SUCH AS RESTAU- RANTS, SCHOOLS, FOOD RETAILERS, FARMERS' MARKETS, COLLEGES AND OTHER INSTITUTIONAL OPERATIONS ESPECIALLY IN URBAN AND OTHER COMMUNITIES WHERE THERE HAS BEEN A LACK OF AVAILABILITY OF SUCH PRODUCTS. LOANS, LOAN GUARANTEES AND INTEREST SUBSIDY GRANTS MAY BE USED TO FINANCE NEW CONSTRUCTION, RENOVATION OR LEASEHOLD IMPROVEMENTS AND THE ACQUISITION OF LAND, BUILDINGS, MACHINERY AND EQUIPMENT. S 2. This act shall take effect immediately; provided that the amend- ments to section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York state urban development corporation act, made by section one of this act, shall expire on the same date as such section expires and shall be deemed to expire therewith.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD03692-03-1