BILL NUMBER:S614A

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.

                                BILL NUMBER:S614B

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:

Section 1: Amends subdivision 1 of section 16-m of Chapter 174 of the
laws of 1968 creating the Urban Development Corporation. The new
paragraph 1 would provide loans, grants and interest subsidies to
businesses, local and regional economic development corporations,
not-for-profit corporations, regional marketing organizations,
agricultural cooperatives, and local and regional organizations to
finance transportation and distribution projects. These
              

transportation and distribution projects would need to promote the
distribution and sales of New York farm products by farmers to food
and food services and processors, and large buyers such as
restaurants, food retailers, schools and other institutions in
communities where locally produced 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 quality fruits, vegetables, meats and dairy
products. Further, there is an increasing recognition that the taste,
quality and freshness of these local farm products matter
significantly to 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 the New York
City market. School district food service programs are also looking
for more New York products as part of the New York Farm-to-School
Law, but distribution and delivery problems have sometimes arisen.
The high volumes of produce required by some food service operations
may require several farmers to combine their product shipments to
meet an order size or increase the frequency in which produce is
transported.
This situation has placed further strain on the need for a timely
distribution and delivery system to transport such agricultural
products.

This bill by authorizing and encouraging the financing of farm product
transportation and distribution projects would help both the urban
and farm economy by opening up valuable food service markets to each


other. These projects could provide services that individual farmers
could not afford on their own and for which they do not have the time
to provide, but in combination with others, would be beneficial to
all. 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 related to the effective
date and to expand the class of entities that can receive such loans,
grants or interest subsidies.

PRIOR LEGISLATIVE HISTORY:

2005/06: A.8000 Referred to Agriculture
2007/08: A.5024 Referred to Agriculture
2009/10: S.6203 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.