A05302 Summary:

BILL NOA05302
 
SAME ASNo Same As
 
SPONSORAngelino
 
COSPNSRMorinello, McDonough, Manktelow, Salka, Lemondes
 
MLTSPNSR
 
Add §1285-v, amd §1290, Pub Auth L
 
Creates the concentrated animal feeding operation environmental compliance revolving loan program.
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A05302 Actions:

BILL NOA05302
 
02/12/2021referred to agriculture
01/05/2022referred to agriculture
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A05302 Committee Votes:

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A05302 Floor Votes:

There are no votes for this bill in this legislative session.
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A05302 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A5302
 
SPONSOR: Angelino
  TITLE OF BILL: An act to amend the public authorities law, in relation to creating the concentrated animal feeding operation environmental compliance revolving loan program   PURPOSE OR GENERAL IDEA OF BILL: To establish, within the New York State Environmental Facilities Corpo- ration, a revolving loan program to assist farmers operating concen- trated animal feeding operations (CAFOs) in planning and implementing certified nutrient management plans. Certified nutrient management plans are designed to properly manage liquid and solid waste generated by the CAFOs in order to eliminate the discharge of pollutants into groundwater and the state's rivers and lakes.   SUMMARY OF PROVISIONS: Adds a new Section 1285-v to the Public Authorities Law to establish a concentrated animal feeding operation environmental compliance revolving loan program.   JUSTIFICATION: Among five general categories of pollution sources, nationally, agricul- ture (crops and animal husbandry) is ranked as the number one cause of impaired rivers, streams, and lakes and the number three cause of impaired estuaries. Many diseases potentially can be contracted from drinking water or eating shellfish contaminated by animal wastes, or by direct contact with such wastes. The 1976 Federal Clean Water Act began the process of ensuring that animal wastes were managed in a way to eliminate this source of pollution. Over the years since then, the number of large concentrated animal feeding operations has increased and both federal and state regulations to contain waste and eliminate groundwater pollution have expanded. In agriculture, a concentrated animal feeding operation (CAFO) is a farm that raises livestock and seeks to maximize production by making highly efficient use of space and other resources. CAFOs hold large numbers (up to hundreds of thousands) of animals, often indoors. Operators of large CAFOs are faced with the continuing need to manage their feed and waste programs in an environ- mentally sound manner and to comply with strict federal and state mandates. Establishing a revolving loan program within the Environmental Facilities Corporation will ensure that farm operators have a reliable source of funding to develop and implement appropriate and environ- mentally sound programs for containment and reduction of animal waste.   PRIOR LEGISLATIVE HISTORY: New bill.   FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS: None.   EFFECTIVE DATE: This act shall take effect on the 120th day after it shall have become a law.
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A05302 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          5302
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    February 12, 2021
                                       ___________
 
        Introduced by M. of A. ANGELINO -- read once and referred to the Commit-
          tee 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:
 
     1    Section  1.  The  public  authorities  law  is amended by adding a new
     2  section 1285-v  to read as follows:
     3    § 1285-v. Concentrated animal feeding operation environmental  compli-
     4  ance  revolving  loan  program. 1. Notwithstanding the provisions of any
     5  general or special law to the contrary, the corporation shall  undertake
     6  to  provide  financial  assistance to farm operators for the planning of
     7  certified nutrient management plans and the implementation of such plans
     8  as set forth in this section.
     9    2. For purposes of this section, and notwithstanding any provision  of
    10  law to the contrary, as used in this section:
    11    (a)  "Concentrated  animal feeding operation" shall mean a farm opera-
    12  tion permitted pursuant to title seven or eight of article seventeen  of
    13  the environmental conservation law.
    14    (b)  "Farm  operator"  shall  mean  a person who engages in farming or
    15  desires to engage in farming and who is the owner of a  farm  operation,
    16  as  defined  in  subdivision  eleven of section three hundred one of the
    17  agriculture and markets law.
    18    (c) "Lender" shall mean any state or federally-chartered savings bank,
    19  savings and loan association, state or federally chartered savings banks
    20  and savings and loan associations, farm credit  system  institution,  or
    21  state or federally chartered commercial banks or trust companies author-
    22  ized to do business in this state.
    23    (d)  "Project"  shall mean the architectural and engineering services,
    24  plans and specifications, including watershed based or individual  agri-
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD09279-01-1

        A. 5302                             2
 
     1  cultural  nonpoint  source  pollution  assessments, consultant and legal
     2  services, construction, and other direct expenses related to implementa-
     3  tion of a farm operation's certified nutrient management plan.
     4    3.  The  corporation  is hereby authorized to enter into any contract,
     5  financing or loan agreement, or other instrument in  connection  with  a
     6  loan made by a lender to a farm operator for a project.
     7    4.  In  order  to  effectuate the purposes of this section, the corpo-
     8  ration may extend credit to or on behalf of  a  farm  operator  for  the
     9  construction  or  acquisition of a project, or for the reimbursement for
    10  costs incurred by a farm operator in connection with a project, provided
    11  such farm operator has received a commitment to receive from a lender  a
    12  loan or other financial assistance acceptable to the corporation. In the
    13  exercise  of  the  powers  granted  in this section in connection with a
    14  project for a farm operator, the corporation may require  the  inclusion
    15  in  any  contract, loan agreement or other instrument of such provisions
    16  for the financing of such project and such  other  financial  and  other
    17  covenants  as  may  apply  to such farm operators as the corporation may
    18  deem desirable and/or appropriate and to  do  all  things  necessary  to
    19  execute any instrument in connection and desirable with such financing.
    20    5.  In  connection  with  the  issuance  of any bond or note issued in
    21  connection with or for the concentrated animal feeding  operation  envi-
    22  ronmental compliance revolving loan program, the corporation may fix and
    23  collect any fees and charges, including but not limited to reimbursement
    24  of  all  costs  of  financing incurred by the corporation, as the corpo-
    25  ration shall determine to be reasonable.
    26    6. In connection with the extension of credit and the  issuance  of  a
    27  bond  or  note  for  the  construction  or  acquisition  of a project as
    28  provided in this section, a farm operator shall  submit  to  the  corpo-
    29  ration an application for the extension of credit or a loan.  The corpo-
    30  ration  may deny such application for any reason it deems appropriate in
    31  the public interest.
    32    7. Any bonds or notes issued to finance the provisions of this section
    33  shall be special limited obligations of the corporation  payable  solely
    34  out  of  the  revenue  derived  from any loan or finance agreement, debt
    35  obligation or sales contract, collateral or other property  received  in
    36  connection  with the concentrated animal feeding operation environmental
    37  compliance revolving loan program. All assets  and  liabilities  created
    38  through the issuance of bonds or notes under this section shall be sepa-
    39  rate  from  all  other  assets  and  liabilities of the corporation. The
    40  corporation shall have no moral or legal obligation or liability to  any
    41  farm  operator  or  other  person under this section except as expressly
    42  provided by written contract. No funds in the concentrated animal  feed-
    43  ing  operation  environmental  compliance  revolving loan program may be
    44  commingled with any other funds of the corporation.
    45    8. (a) The corporation  shall  promulgate  regulations,  developed  in
    46  consultation  with  the commissioner of agriculture and markets, for the
    47  purpose of carrying out its responsibilities under this section, includ-
    48  ing establishing the criteria and standards for evaluating  the  project
    49  to be financed and the eligibility of the farm operator.
    50    (b) The corporation shall consult with the commissioner of agriculture
    51  and  markets  regarding  promotion  of  the  program  and agriculturally
    52  related questions regarding the program or applications.
    53    § 2. Paragraph (a) of subdivision 1 of  section  1290  of  the  public
    54  authorities  law,  as  amended  by  chapter  366 of the laws of 2004, is
    55  amended to read as follows:

        A. 5302                             3
 
     1    (a) The corporation shall have power and  is  hereby  authorized  from
     2  time  to  time to issue its negotiable or non-negotiable bonds and notes
     3  in conformity with applicable provisions of the uniform commercial  code
     4  in  such  principal amount, as, in the opinion of the corporation, shall
     5  be  necessary  to  provide  sufficient funds for achieving its purposes,
     6  including the acquisition and construction, operation and maintenance of
     7  sewage treatment works, sewage collecting systems, solid waste  disposal
     8  facilities, storm water collecting systems, water management facilities,
     9  air  pollution control facilities, the removal, disposal and remediation
    10  of petroleum storage tanks and the remediation of the sites thereof  and
    11  any  other  project or projects authorized pursuant to the provisions of
    12  this title, and paying the cost thereof; the making of loans to  persons
    13  and,  for  purposes  of  sections  twelve  hundred eighty-five-j, twelve
    14  hundred eighty-five-m and twelve hundred  eighty-five-o  of  this  title
    15  only,  to any municipality or recipient for such purposes; the making of
    16  loans, providing of financing or extension of credit to or on behalf  of
    17  beginning  farmers  for purposes of section twelve hundred eighty-five-r
    18  of this title only; the making of  loans,  providing  of  financing,  or
    19  extension of credit to or on behalf of concentrated animal feeding oper-
    20  ation  environmental  compliance  revolving loan program for purposes of
    21  section twelve hundred eighty-five-v of this title only;  the  financing
    22  of  the  design, acquisition, construction, improvement and installation
    23  of all or any portion of Riverbank Park, provided however, that any such
    24  bonds or notes issued to finance Riverbank Park shall only be issued  in
    25  such  principal amount as shall be necessary to provide sufficient funds
    26  for the repayment of amounts disbursed  pursuant  to  appropriations  or
    27  reappropriations  under  chapter  fifty-four  of  the  laws  of nineteen
    28  hundred ninety-one including any subsequent reappropriation of the unex-
    29  pended balance  of  such  appropriations  or  reappropriations  for  the
    30  purpose  of  Riverbank  Park, plus an amount sufficient to fund any debt
    31  service reserve fund established by the corporation for the  purpose  of
    32  Riverbank  Park and to provide for the payment of fees and other charges
    33  and expenses of the corporation in connection with such bonds and notes,
    34  which principal amount shall constitute the  statutory  ceiling  on  the
    35  amount  of  bonds  and  notes  that  can be issued for such purpose; the
    36  financing of all or any portion of any state park infrastructure project
    37  or reimbursement of the state for expenditures relating thereto, plus an
    38  amount to provide for the payment of fees and other charges and expenses
    39  of the  corporation  in  connection  with  such  bonds  and  notes;  the
    40  provision  of  funds  to  the state for any amounts contributed or to be
    41  contributed to the water pollution control revolving fund, the  pipeline
    42  for  jobs  fund  or the drinking water revolving fund provided, however,
    43  that any such bonds or notes  issued  to  provide  funds  to  the  water
    44  pollution  control  revolving  fund,  the  pipeline for jobs fund or the
    45  drinking water revolving fund shall only be  issued  in  such  principal
    46  amount  as shall be necessary to provide sufficient funds for the repay-
    47  ment of amounts disbursed pursuant to any appropriation  or  reappropri-
    48  ation  enacted  for the pipeline for jobs fund or for the payment of the
    49  state match for federal capitalization grants for  the  water  pollution
    50  control  revolving  fund  or  the drinking water revolving fund, plus an
    51  amount sufficient to fund any debt service reserve fund and  to  provide
    52  for  fees,  charges  and other costs of issuance, which principal amount
    53  shall constitute the statutory ceiling on the amount of bonds and  notes
    54  that  can be issued for such purpose; the financing of any environmental
    55  infrastructure projects authorized by  section  twelve  hundred  eighty-
    56  five-p  of  this  title;  the purchase of municipal bonds and notes, and

        A. 5302                             4
 
     1  bonds and notes of a state agency,  the  payment  of  the  cost  of  any
     2  project,  the payment of interest on bonds and notes of the corporation,
     3  the establishment of reserves  to  secure  such  bonds  and  notes;  the
     4  provision  of  working  capital and all other expenditures of the corpo-
     5  ration incident to and necessary or convenient to carry out its purposes
     6  and powers;
     7    § 3. Paragraph (c) of subdivision 1 of  section  1290  of  the  public
     8  authorities  law,  as  amended  by  chapter  366 of the laws of 2004, is
     9  amended to read as follows:
    10    (c) Except as may otherwise be expressly provided by the  corporation,
    11  every  issue  of  its notes or bonds shall be (i) general obligations of
    12  the corporation payable out of any revenues  or  monies  of  the  corpo-
    13  ration,  subject  only  to any agreements with the holders of particular
    14  notes or bonds  pledging  any  particular  receipts  or  revenues,  (ii)
    15  special obligations of the corporation payable solely from the revenues,
    16  service  charges,  rentals, proceeds or other payments to be received on
    17  account of the mortgage, loan or other agreements and payments,  reserve
    18  and  insurance  funds  or  accounts issuance of special obligations, and
    19  fees, charges or other monies to  be  received  by  the  corporation  in
    20  respect  to  loans  pursuant  to section twelve hundred eighty-five-b or
    21  twelve hundred eighty-five-j of this title, or from amounts received  by
    22  the  corporation  pursuant  to any contract, lease, easement, license or
    23  other instrument entered into by the corporation  pursuant  to  sections
    24  twelve  hundred  eighty-five-k  and twelve hundred eighty-five-l of this
    25  title or, (iii) special obligations of the  corporation  payable  solely
    26  from  amounts received pursuant to an agreement with the commissioner of
    27  environmental conservation pursuant to  subdivision  twelve  of  section
    28  twelve  hundred  eighty-five-j  of this title, and may, but need not, be
    29  secured by mortgages, assignments or pledges of such  revenues,  service
    30  charges,  rentals,  proceeds,  other payments, funds and accounts, fees,
    31  charges and other monies, and by mortgages  or  assignments  thereof  in
    32  respect  to  projects, and may include pooled financings subject only to
    33  any agreements with the holders of particular special  obligation  notes
    34  or  bonds  issued  to  finance  the  cost of, or loans for, a project or
    35  projects; no general obligations of the corporation shall be  issued  to
    36  finance  the  cost of, or loans for, a project or projects authorized to
    37  be constructed pursuant  to  section  twelve  hundred  eighty-five-b  or
    38  twelve  hundred  eighty-five-j  of  this  title  or  to  finance (A) the
    39  contribution of the state to the water pollution control revolving fund,
    40  (B) the design, acquisition, construction, improvement and  installation
    41  of all or any portion of Riverbank Park or (C) state park infrastructure
    42  projects  and  no  funds, monies, revenues or other assets of the corpo-
    43  ration shall be used for loans authorized  pursuant  to  section  twelve
    44  hundred  eighty-five-b  or  twelve  hundred eighty-five-j of this title,
    45  except as may be available with respect to a project and a contract with
    46  a person as aforesaid, or for the  payment  to  the  state  for  amounts
    47  contributed  by the state to the water pollution control revolving fund,
    48  to  finance  the  design,  acquisition,  construction,  improvement  and
    49  installation  of  all  or  any  portion  of Riverbank Park or state park
    50  infrastructure projects. Nor shall  any  special  obligation  authorized
    51  pursuant  hereto  be payable from or secured by any debt service reserve
    52  fund created pursuant to  section  twelve  hundred  ninety-one  of  this
    53  title,  and the state shall not be entitled to require the redemption of
    54  such special obligations pursuant to section twelve hundred ninety-three
    55  of this title; and such special obligation  and  the  security  therefor
    56  shall  not  be subject to the provisions of section twelve hundred nine-

        A. 5302                             5
 
     1  ty-four of this title but the remedies of the holders thereof  shall  be
     2  set  forth  in the terms of such special obligations and the instruments
     3  constituting such security; the making of loans, providing of  financial
     4  or extension of credit to or on behalf of beginning farmers for purposes
     5  of  section  twelve hundred eighty-five-r of this title only; the making
     6  of loans, providing of financing, or extension of credit to or on behalf
     7  of farm operators for the purposes of  section  twelve  hundred  eighty-
     8  five-v of this title only;
     9    § 4. This act shall take effect on the one hundred twentieth day after
    10  it shall have become a law.
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