senate Bill S4520

Amended

Relates to creating a small farm modernization fund program and a small farm modernization fund

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 08 / Apr / 2013
    • REFERRED TO FINANCE
  • 08 / Jan / 2014
    • REFERRED TO FINANCE
  • 28 / May / 2014
    • AMEND (T) AND RECOMMIT TO FINANCE
  • 28 / May / 2014
    • PRINT NUMBER 4520A

Summary

Relates to creating a small farm modernization fund program and a small farm modernization fund.

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Bill Details

Versions:
S4520
S4520A
Legislative Cycle:
2013-2014
Current Committee:
Senate Finance
Law Section:
State Finance Law
Laws Affected:
Add ยง97-u, St Fin L

Sponsor Memo

BILL NUMBER:S4520

TITLE OF BILL: An act to amend the state finance law, in relation to
a small farm modernization revolving loan fund

SUMMARY OF SPECIFIC PROVISIONS::

Section 1 Amends the State Finance Law by adding a new section 97-u,
creating the "small farm modernization revolving loan fund," under the
joint custody of the State Comptroller and the Commissioner of the
Department of Taxation and Finance. Funding will be through
appropriation not to exceed $5 million.

Loans of up to $25,000 are to be made from the fund to small farmer
owners, upon the audit and warrant of the State Comptroller, for the
sole purpose of small farm modernization.The farm owner must provide a
written statement from the Department of Agriculture and Markets
verifying that such farm constitutes a small farm, and reasonable
written assurances of repayment that is satisfactory to the
comptroller. Any loans provided from the fund shall bear interest at
a below-market rate and repayment of such loan may be prorated over
the term of the expected or renewal contract, provided the term of the
loan does not exceed three years.

Within 90 days of the law's enactment, comptroller will promulgate
rules and regulations for the operation of the fund. Such regulations
must include, but not be limited to, the procedure and any necessary
information that small farm owners need to submit in connection with
an application for a loan from the small farm revolving loan fund; a
schedule for reviewing such applications, not to exceed thirty days,
and notification to an applicant of approval or disapproval of such
application, and any other requirements deemed necessary by the state
comptroller.

Section 2 establishes an effective date of 180 days after becoming
law.

JUSTIFICATION:: After a 70-year drop in numbers, small farms are
beginning to make a comeback. For decades, the number of farmers has
been shrinking as a share of the population, but the last Agricultural
Census in 2007 showed a 4 percent increase in the number of farms. It
is the first increase since 1920, and in many cases, young people and
college graduates are joining in the return to the land. Behind this
trend to a large degree is the appeal of locally grown and specialty
produce, filling a niche that larger farms geared to national and
international markets have left open for exploitation.

But while there has been an increase in promoting locally grown food,
New York's small farmers still struggle to get a foothold in this
promising new market.While start-up costs for the smallest operations
can still be daunting, the difference between success and failure can
be a matter of modernization that leads to greater productivity. The
Small Farm Modernization Revolving Loan Fund will feature low interest
loans of up to $25,000 to help small farms modernize, purchase new
equipment, or expand the amount of crops planted.


EXISTING LAW:: None.

PRIOR LEGISLATIVE HISTORY:: New Bill.

FISCAL IMPLICATIONS:: $5 million.

EFFECTIVE DATE:: 180 days after becoming law.

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

                                  4520

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                              April 8, 2013
                               ___________

Introduced  by  Sen. TKACZYK -- read twice and ordered printed, and when
  printed to be committed to the Committee on Finance

AN ACT to amend the state finance law,  in  relation  to  a  small  farm
  modernization revolving loan fund

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

  Section 1. The state finance law is amended by adding  a  new  section
97-u to read as follows:
  S  97-U.  SMALL  FARM  MODERNIZATION  REVOLVING LOAN FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT  CUSTODY  OF  THE  COMPTROLLER  AND  THE
COMMISSIONER  OF  TAXATION  AND  FINANCE A FUND TO BE KNOWN AS THE SMALL
FARM MODERNIZATION REVOLVING LOAN  FUND.  SUCH  FUND  SHALL  CONSIST  OF
MONEYS  MADE  AVAILABLE  PURSUANT  TO  APPROPRIATION  NOT TO EXCEED FIVE
MILLION DOLLARS AND ANY OTHER SOURCES IN ORDER TO  PROVIDE  SUPPORT  FOR
MODERNIZATION OF SMALL FARMS.
  2. MONEYS OF THE FUND MAY BE EXPENDED IN ACCORDANCE WITH THIS SECTION.
MONEYS  SHALL  BE  PAID  OUT OF THE FUND ON THE AUDIT AND WARRANT OF THE
STATE COMPTROLLER PURSUANT TO THIS SECTION.
  3. THE STATE COMPTROLLER IS AUTHORIZED TO PROVIDE LOANS FROM THIS FUND
TO ANY SMALL FARM OWNER IN RECEIPT  OF  A  WRITTEN  STATEMENT  FROM  THE
DEPARTMENT OF AGRICULTURE AND MARKETS INDICATING THAT SUCH PERSON'S FARM
CONSTITUTES  A SMALL FARM. THE STATE COMPTROLLER MAY PROVIDE SUCH A LOAN
TO A SMALL FARM OWNER UPON RECEIPT  OF  A  WRITTEN  AGREEMENT  PROVIDING
REASONABLE  ASSURANCES  OF  REPAYMENT  THAT IS SATISFACTORY TO THE COMP-
TROLLER. SUCH LOAN SHALL BEAR INTEREST AT A BELOW-MARKET RATE AND REPAY-
MENT OF SUCH LOAN MAY BE PRORATED OVER  THE  TERM  OF  THE  EXPECTED  OR
RENEWAL  CONTRACT,  PROVIDED  THE TERM OF THE LOAN DOES NOT EXCEED THREE
YEARS. THE AMOUNT OF EACH SUCH LOAN SHALL NOT EXCEED  TWENTY-FIVE  THOU-
SAND DOLLARS.
  4.  THE STATE COMPTROLLER SHALL ONLY MAKE LOANS AFTER FINDING THAT THE
SMALL FARM OWNER WILL USE THE  FUNDS  EXCLUSIVELY  FOR  THE  PURPOSE  OF

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09997-02-3

S. 4520                             2

MODERNIZING  HIS OR HER FARM. THE COMPTROLLER SHALL ESTABLISH ACCEPTABLE
FORMS OF PROOF THAT A SMALL FARM OWNER MAY  SUBMIT  TO  BE  ELIGIBLE  TO
RECEIVE A LOAN PURSUANT TO THIS SECTION.
  5. THE STATE COMPTROLLER SHALL PROMULGATE RULES AND REGULATIONS WITHIN
NINETY  DAYS  OF THE EFFECTIVE DATE OF THIS SECTION FOR THE OPERATION OF
THE SMALL FARM MODERNIZATION REVOLVING LOAN FUND  WHICH  SHALL  INCLUDE,
BUT  NOT BE LIMITED TO, THE PROCEDURE AND ANY NECESSARY INFORMATION THAT
SMALL FARM OWNERS NEED TO SUBMIT IN CONNECTION WITH AN APPLICATION FOR A
LOAN FROM THE SMALL FARM MODERNIZATION REVOLVING LOAN FUND;  A  SCHEDULE
FOR  REVIEWING SUCH APPLICATIONS, NOT TO EXCEED THIRTY DAYS, AND NOTIFI-
CATION TO AN APPLICANT OF APPROVAL OR DISAPPROVAL OF  SUCH  APPLICATION,
AND ANY OTHER REQUIREMENTS DEEMED NECESSARY BY THE STATE COMPTROLLER.
  6.  ANY  SMALL FARM OWNER RECEIVING A LOAN FROM THE SMALL FARM MODERN-
IZATION REVOLVING LOAN FUND SHALL BE INELIGIBLE TO RECEIVE  INTEREST  OR
ADVANCE PAYMENTS FROM A STATE AGENCY.
  S 2. This act shall take effect on the one hundred eightieth day after
it shall have become a law.

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