BILL NUMBER:  S6203

 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 j to subdivision 1 of section 16-m of Chapter 174
of the laws of 1968 creating the Urban Development Corporation.
Paragraph j 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 us. 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.

 PRIOR LEGISLATIVE HISTORY :
2005/06 - Referred to Agriculture 2007/08 A.5024 - Referred to
Agriculture

 FISCAL IMPLICATIONS :
Subject to budget appropriations.

 EFFECTIVE DATE :
Immediately upon passage.
Contact:  Task Force on Food, Farm & Nutrition Policy 455-5203 4/28/05