Finances the transportation and distribution of New York state farm grown products to food service markets especially in underserved communities

6 Co-sponsors

• David Carlucci
• Liz Krueger
• Velmanette Montgomery
• Suzi Oppenheimer
• Diane J. Savino
• David J. Valesky

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.