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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A1389A
SPONSOR: Ortiz (MS) 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 devel-
opment corporations, not-for-profit corporations, regional marketing
organizations, agricultural cooperative, and local and regional organ-
izations 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
matters 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 situ-
ation 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 consum-
ers 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- A.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.
STATE OF NEW YORK
________________________________________________________________________
1389--A
2011-2012 Regular Sessions
IN ASSEMBLY(Prefiled)
January 5, 2011
___________
Introduced by M. of A. ORTIZ, BROOK-KRASNY, LUPARDO -- Multi-Sponsored
by -- M. of A. BENEDETTO, BOYLAND, GOTTFRIED, MAGEE, PHEFFER, TOWNS
-- read once and referred to the Committee on Agriculture -- 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:
1 Section 1. Subdivision 1 of section 16-m of section 1 of chapter 174
2 of the laws of 1968, constituting the New York state urban development
3 corporation act, is amended by adding a new paragraph (l) to read as
4 follows:
5 (l) Loans, loan guarantees, interest subsidies and grants including
6 interest subsidy grants to businesses, local and regional economic
7 development corporations, not-for-profit corporations, regional market-
8 ing organizations, agricultural cooperatives organized pursuant to the
9 cooperative corporations law, and other local or regional organizations
10 to finance transportation and distribution projects that facilitate
11 distribution and sales of New York farm products by farmers and associ-
12 ations of farmers to food and food services buyers and processors, such
13 as restaurants, schools, food retailers, farmers' markets, colleges and
14 other institutional operations especially in urban and other communities
15 where there has been a lack of availability of such products. Loans,
16 loan guarantees and interest subsidy grants may be used to finance new
17 construction, renovation or leasehold improvements and the acquisition
18 of land, buildings, machinery and equipment.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD03692-05-1
A. 1389--A 2
1 § 2. This act shall take effect immediately; provided that the amend-
2 ments to section 16-m of section 1 of chapter 174 of the laws of 1968,
3 constituting the New York state urban development corporation act, made
4 by section one of this act, shall expire on the same date as such
5 section expires and shall be deemed to expire therewith.
