S T A T E O F N E W Y O R K
________________________________________________________________________
4224
2009-2010 Regular Sessions
I N A S S E M B L Y
February 2, 2009
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Introduced by M. of A. CROUCH, BURLING, BARCLAY, HAWLEY -- Multi-Spon-
sored by -- M. of A. BACALLES, FINCH, GIGLIO, OAKS, QUINN, RAIA --
read once and referred to the Committee on Agriculture
AN ACT to amend the public authorities law, in relation to creating the
concentrated animal feeding operation environmental compliance revolv-
ing loan program
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. The public authorities law is amended by adding a new
section 1285-s to read as follows:
S 1285-S. CONCENTRATED ANIMAL FEEDING OPERATION ENVIRONMENTAL COMPLI-
ANCE REVOLVING LOAN PROGRAM. 1. NOTWITHSTANDING THE PROVISIONS OF ANY
GENERAL OR SPECIAL LAW TO THE CONTRARY, THE CORPORATION SHALL UNDERTAKE
TO PROVIDE FINANCIAL ASSISTANCE TO FARM OPERATORS FOR THE PLANNING OF
CERTIFIED NUTRIENT MANAGEMENT PLANS AND THE IMPLEMENTATION OF SUCH PLANS
AS SET FORTH IN THIS SECTION.
2. FOR PURPOSES OF THIS SECTION, AND NOTWITHSTANDING ANY PROVISION OF
LAW TO THE CONTRARY, AS USED IN THIS SECTION:
(A) "CONCENTRATED ANIMAL FEEDING OPERATION" SHALL MEAN A FARM OPERA-
TION PERMITTED PURSUANT TO TITLE SEVEN OR EIGHT OF ARTICLE SEVENTEEN OF
THE ENVIRONMENTAL CONSERVATION LAW.
(B) "FARM OPERATOR" SHALL MEAN A PERSON WHO ENGAGES IN FARMING OR
DESIRES TO ENGAGE IN FARMING AND WHO IS THE OWNER OF A FARM OPERATION,
AS DEFINED IN SUBDIVISION ELEVEN OF SECTION THREE HUNDRED ONE OF THE
AGRICULTURE AND MARKETS LAW.
(C) "LENDER" SHALL MEAN ANY STATE OR FEDERALLY-CHARTERED SAVINGS BANK,
SAVINGS AND LOAN ASSOCIATION, STATE OR FEDERALLY CHARTERED SAVINGS BANKS
AND SAVINGS AND LOAN ASSOCIATIONS, FARM CREDIT SYSTEM INSTITUTION, OR
STATE OR FEDERALLY CHARTERED COMMERCIAL BANKS OR TRUST COMPANIES AUTHOR-
IZED TO DO BUSINESS IN THIS STATE.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06771-01-9
A. 4224 2
(D) "PROJECT" SHALL MEAN THE ARCHITECTURAL AND ENGINEERING SERVICES,
PLANS AND SPECIFICATIONS, INCLUDING WATERSHED BASED OR INDIVIDUAL AGRI-
CULTURAL NONPOINT SOURCE POLLUTION ASSESSMENTS, CONSULTANT AND LEGAL
SERVICES, CONSTRUCTION, AND OTHER DIRECT EXPENSES RELATED TO IMPLEMENTA-
TION OF A FARM OPERATION'S CERTIFIED NUTRIENT MANAGEMENT PLAN.
3. THE CORPORATION IS HEREBY AUTHORIZED TO ENTER INTO ANY CONTRACT,
FINANCING OR LOAN AGREEMENT, OR OTHER INSTRUMENT IN CONNECTION WITH A
LOAN MADE BY A LENDER TO A FARM OPERATOR FOR A PROJECT.
4. IN ORDER TO EFFECTUATE THE PURPOSES OF THIS SECTION, THE CORPO-
RATION MAY EXTEND CREDIT TO OR ON BEHALF OF A FARM OPERATOR FOR THE
CONSTRUCTION OR ACQUISITION OF A PROJECT, OR FOR THE REIMBURSEMENT FOR
COSTS INCURRED BY A FARM OPERATOR IN CONNECTION WITH A PROJECT, PROVIDED
SUCH FARM OPERATOR HAS RECEIVED A COMMITMENT TO RECEIVE FROM A LENDER A
LOAN OR OTHER FINANCIAL ASSISTANCE ACCEPTABLE TO THE CORPORATION. IN THE
EXERCISE OF THE POWERS GRANTED IN THIS SECTION IN CONNECTION WITH A
PROJECT FOR A FARM OPERATOR, THE CORPORATION MAY REQUIRE THE INCLUSION
IN ANY CONTRACT, LOAN AGREEMENT OR OTHER INSTRUMENT OF SUCH PROVISIONS
FOR THE FINANCING OF SUCH PROJECT AND SUCH OTHER FINANCIAL AND OTHER
COVENANTS AS MAY APPLY TO SUCH FARM OPERATORS AS THE CORPORATION MAY
DEEM DESIRABLE AND/OR APPROPRIATE AND TO DO ALL THINGS NECESSARY TO
EXECUTE ANY INSTRUMENT IN CONNECTION AND DESIRABLE WITH SUCH FINANCING.
5. IN CONNECTION WITH THE ISSUANCE OF ANY BOND OR NOTE ISSUED IN
CONNECTION WITH OR FOR THE CONCENTRATED ANIMAL FEEDING OPERATION ENVI-
RONMENTAL COMPLIANCE REVOLVING LOAN PROGRAM, THE CORPORATION MAY FIX AND
COLLECT ANY FEES AND CHARGES, INCLUDING BUT NOT LIMITED TO REIMBURSEMENT
OF ALL COSTS OF FINANCING INCURRED BY THE CORPORATION, AS THE CORPO-
RATION SHALL DETERMINE TO BE REASONABLE.
6. IN CONNECTION WITH THE EXTENSION OF CREDIT AND THE ISSUANCE OF A
BOND OR NOTE FOR THE CONSTRUCTION OR ACQUISITION OF A PROJECT AS
PROVIDED IN THIS SECTION, A FARM OPERATOR SHALL SUBMIT TO THE CORPO-
RATION AN APPLICATION FOR THE EXTENSION OF CREDIT OR A LOAN. THE CORPO-
RATION MAY DENY SUCH APPLICATION FOR ANY REASON IT DEEMS APPROPRIATE IN
THE PUBLIC INTEREST.
7. ANY BONDS OR NOTES ISSUED TO FINANCE THE PROVISIONS OF THIS SECTION
SHALL BE SPECIAL LIMITED OBLIGATIONS OF THE CORPORATION PAYABLE SOLELY
OUT OF THE REVENUE DERIVED FROM ANY LOAN OR FINANCE AGREEMENT, DEBT
OBLIGATION OR SALES CONTRACT, COLLATERAL OR OTHER PROPERTY RECEIVED IN
CONNECTION WITH THE CONCENTRATED ANIMAL FEEDING OPERATION ENVIRONMENTAL
COMPLIANCE REVOLVING LOAN PROGRAM. ALL ASSETS AND LIABILITIES CREATED
THROUGH THE ISSUANCE OF BONDS OR NOTES UNDER THIS SECTION SHALL BE SEPA-
RATE FROM ALL OTHER ASSETS AND LIABILITIES OF THE CORPORATION. THE
CORPORATION SHALL HAVE NO MORAL OR LEGAL OBLIGATION OR LIABILITY TO ANY
FARM OPERATOR OR OTHER PERSON UNDER THIS SECTION EXCEPT AS EXPRESSLY
PROVIDED BY WRITTEN CONTRACT. NO FUNDS IN THE CONCENTRATED ANIMAL FEED-
ING OPERATION ENVIRONMENTAL COMPLIANCE REVOLVING LOAN PROGRAM MAY BE
COMMINGLED WITH ANY OTHER FUNDS OF THE CORPORATION.
8. (A) THE CORPORATION SHALL PROMULGATE REGULATIONS, DEVELOPED IN
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE AND MARKETS, FOR THE
PURPOSE OF CARRYING OUT ITS RESPONSIBILITIES UNDER THIS SECTION, INCLUD-
ING ESTABLISHING THE CRITERIA AND STANDARDS FOR EVALUATING THE PROJECT
TO BE FINANCED AND THE ELIGIBILITY OF THE FARM OPERATOR.
(B) THE CORPORATION SHALL CONSULT WITH THE COMMISSIONER OF AGRICULTURE
AND MARKETS REGARDING PROMOTION OF THE PROGRAM AND AGRICULTURALLY
RELATED QUESTIONS REGARDING THE PROGRAM OR APPLICATIONS.
A. 4224 3
S 2. Paragraph (a) of subdivision 1 of section 1290 of the public
authorities law, as amended by chapter 366 of the laws of 2004, is
amended to read as follows:
(a) The corporation shall have power and is hereby authorized from
time to time to issue its negotiable or non-negotiable bonds and notes
in conformity with applicable provisions of the uniform commercial code
in such principal amount, as, in the opinion of the corporation, shall
be necessary to provide sufficient funds for achieving its purposes,
including the acquisition and construction, operation and maintenance of
sewage treatment works, sewage collecting systems, solid waste disposal
facilities, storm water collecting systems, water management facilities,
air pollution control facilities, the removal, disposal and remediation
of petroleum storage tanks and the remediation of the sites thereof and
any other project or projects authorized pursuant to the provisions of
this title, and paying the cost thereof; the making of loans to persons
and, for purposes of sections twelve hundred eighty-five-j, twelve
hundred eighty-five-m and twelve hundred eighty-five-o of this title
only, to any municipality or recipient for such purposes; the making of
loans, providing of financing or extension of credit to or on behalf of
beginning farmers for purposes of section twelve hundred eighty-five-r
of this title only; THE MAKING OF LOANS, PROVIDING OF FINANCING, OR
EXTENSION OF CREDIT TO OR ON BEHALF OF CONCENTRATED ANIMAL FEEDING OPER-
ATION ENVIRONMENTAL COMPLIANCE REVOLVING LOAN PROGRAM FOR PURPOSES OF
SECTION TWELVE HUNDRED EIGHTY-FIVE-S OF THIS TITLE ONLY; the financing
of the design, acquisition, construction, improvement and installation
of all or any portion of Riverbank Park, provided however, that any such
bonds or notes issued to finance Riverbank Park shall only be issued in
such principal amount as shall be necessary to provide sufficient funds
for the repayment of amounts disbursed pursuant to appropriations or
reappropriations under chapter fifty-four of the laws of nineteen
hundred ninety-one including any subsequent reappropriation of the unex-
pended balance of such appropriations or reappropriations for the
purpose of Riverbank Park, plus an amount sufficient to fund any debt
service reserve fund established by the corporation for the purpose of
Riverbank Park and to provide for the payment of fees and other charges
and expenses of the corporation in connection with such bonds and notes,
which principal amount shall constitute the statutory ceiling on the
amount of bonds and notes that can be issued for such purpose; the
financing of all or any portion of any state park infrastructure project
or reimbursement of the state for expenditures relating thereto, plus an
amount to provide for the payment of fees and other charges and expenses
of the corporation in connection with such bonds and notes; the
provision of funds to the state for any amounts contributed or to be
contributed to the water pollution control revolving fund, the pipeline
for jobs fund or the drinking water revolving fund provided, however,
that any such bonds or notes issued to provide funds to the water
pollution control revolving fund, the pipeline for jobs fund or the
drinking water revolving fund shall only be issued in such principal
amount as shall be necessary to provide sufficient funds for the repay-
ment of amounts disbursed pursuant to any appropriation or reappropri-
ation enacted for the pipeline for jobs fund or for the payment of the
state match for federal capitalization grants for the water pollution
control revolving fund or the drinking water revolving fund, plus an
amount sufficient to fund any debt service reserve fund and to provide
for fees, charges and other costs of issuance, which principal amount
shall constitute the statutory ceiling on the amount of bonds and notes
A. 4224 4
that can be issued for such purpose; the financing of any environmental
infrastructure projects authorized by section twelve hundred eighty-
five-p of this title; the purchase of municipal bonds and notes, and
bonds and notes of a state agency, the payment of the cost of any
project, the payment of interest on bonds and notes of the corporation,
the establishment of reserves to secure such bonds and notes; the
provision of working capital and all other expenditures of the corpo-
ration incident to and necessary or convenient to carry out its purposes
and powers;
S 3. Paragraph (c) of subdivision 1 of section 1290 of the public
authorities law, as amended by chapter 366 of the laws of 2004, is
amended to read as follows:
(c) Except as may otherwise be expressly provided by the corporation,
every issue of its notes or bonds shall be (i) general obligations of
the corporation payable out of any revenues or monies of the corpo-
ration, subject only to any agreements with the holders of particular
notes or bonds pledging any particular receipts or revenues, (ii)
special obligations of the corporation payable solely from the revenues,
service charges, rentals, proceeds or other payments to be received on
account of the mortgage, loan or other agreements and payments, reserve
and insurance funds or accounts issuance of special obligations, and
fees, charges or other monies to be received by the corporation in
respect to loans pursuant to section twelve hundred eighty-five-b or
twelve hundred eighty-five-j of this title, or from amounts received by
the corporation pursuant to any contract, lease, easement, license or
other instrument entered into by the corporation pursuant to sections
twelve hundred eighty-five-k and twelve hundred eighty-five-l of this
title or, (iii) special obligations of the corporation payable solely
from amounts received pursuant to an agreement with the commissioner of
environmental conservation pursuant to subdivision twelve of section
twelve hundred eighty-five-j of this title, and may, but need not, be
secured by mortgages, assignments or pledges of such revenues, service
charges, rentals, proceeds, other payments, funds and accounts, fees,
charges and other monies, and by mortgages or assignments thereof in
respect to projects, and may include pooled financings subject only to
any agreements with the holders of particular special obligation notes
or bonds issued to finance the cost of, or loans for, a project or
projects; no general obligations of the corporation shall be issued to
finance the cost of, or loans for, a project or projects authorized to
be constructed pursuant to section twelve hundred eighty-five-b or
twelve hundred eighty-five-j of this title or to finance (A) the
contribution of the state to the water pollution control revolving fund,
(B) the design, acquisition, construction, improvement and installation
of all or any portion of Riverbank Park or (C) state park infrastructure
projects and no funds, monies, revenues or other assets of the corpo-
ration shall be used for loans authorized pursuant to section twelve
hundred eighty-five-b or twelve hundred eighty-five-j of this title,
except as may be available with respect to a project and a contract with
a person as aforesaid, or for the payment to the state for amounts
contributed by the state to the water pollution control revolving fund,
to finance the design, acquisition, construction, improvement and
installation of all or any portion of Riverbank Park or state park
infrastructure projects. Nor shall any special obligation authorized
pursuant hereto be payable from or secured by any debt service reserve
fund created pursuant to section twelve hundred ninety-one of this
title, and the state shall not be entitled to require the redemption of
A. 4224 5
such special obligations pursuant to section twelve hundred ninety-three
of this title; and such special obligation and the security therefor
shall not be subject to the provisions of section twelve hundred nine-
ty-four of this title but the remedies of the holders thereof shall be
set forth in the terms of such special obligations and the instruments
constituting such security; the making of loans, providing of financial
or extension of credit to or on behalf of beginning farmers for purposes
of section twelve hundred eighty-five-r of this title only; THE MAKING
OF LOANS, PROVIDING OF FINANCING, OR EXTENSION OF CREDIT TO OR ON BEHALF
OF FARM OPERATORS FOR THE PURPOSES OF SECTION TWELVE HUNDRED
EIGHTY-FIVE-S OF THIS TITLE ONLY;
S 4. This act shall take effect on the one hundred twentieth day after
it shall have become a law.