Enacts the "food retail establishment subsidization for healthy communities act"

Summary of specific provisions

Section 1. Short title. This act shall be known as the "food retail establishment subsidization for healthy communities (FRESH) act."

Section 2. Legislative intent. The legislature finds that the lack of access to fresh foods is a problem of growing concern in many communities across the state and a contributing factor to a number of problems ranging from malnutrition and obesity to increased public health care costs and limit economic opportunities for farmers in the state.

Section 3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the laws of 1968, constituting the New York State urban development corporation act, is amended by adding a new paragraph (o) The new paragraph includes provisions for loans, loan guarantees, interest subsidies and grants to businesses, municipalities, not-for-profit corporations or local development corporations for the purpose of attracting, maintaining or permitting the expansion of food retail establishments in underserved areas. For purposes of this paragraph, "underserved areas" shall include low or moderate-income census tracts, areas of below average supermarket density or having supermarket customer base with more than fifty percent living in low-income census tracts, or other areas demonstrated to have significant access limitations due to travel distance, as determined by the corporation, and "food retail establishments" shall include supermarkets and other grocery retailers that operate on a self service basis and sell a minimum percentage of produce, meat, poultry, seafood, baked goods and/or dairy products and which:

(i) participate in the Pride of New York program;

(ii) accept payment from electronic benefit transfer through the supplemental nutrition assistance program and through the special supplemental nutrition program for women, infants, and children;

(iii) do not charge a membership fee; and

(iv) hire residents living within a twenty mile radius of such retail food establishment.

Justification

Development pressures in New York's urban areas, increased consolidation of the retail industry and other socioeconomic factors

have led to a decline in the number of supermarkets and other retail outlets selling fresh foods. The lack of sufficient access to retailers offering fresh food choices in urban areas is a growing problem nationally and increasingly a contributing factor to increased rates of obesity, diabetes and other nutrition-related health concerns our neighboring state of Pennsylvania has responded by enacting a First Industries Program that provides grants, loans and loan guarantees to provide financial assistance to urban and rural supermarkets in underserved communities. Ensuring an adequate number of outlets for fresh produce, dairy products, meat, poultry, seafood and bakery items will not only benefit the residents of currently underserved communities, but will also benefit local and regional growers and processors. In addition, the bill would reduce energy expenditures and greenhouse gas emissions by encouraging reliance on less processed food and reducing the need for long distance transportation. Retail establishment that participate in this program will be required to accept payment from electronic benefit transfer through the supplemental nutrition assistance program, do not charge a membership fee, hire residents living within a twenty mile radius of their business.

Prior legislative history

2007-2008 A.11771, Referred to Economic Development 2009-2010 A.7975-A, Referred to Economic Development 2011-2012; Referred to Economic Development, passed Assembly, S.7385 2013-14: S.3819 referred to Corporations, Authorities, and Commissions

Fiscal implications

Undetermined

Effective date

This act shall take effect on the first of April next succeeding the date on which it shall have become a law; provided, however: that the urban development corporation shall be immediately authorized to take any and all actions necessary to fully implement the provisions of section three of this act on or before such effective date; and provided further, that the amendments to section 16-m of the urban development corporation act made by section three of this act shall not affect the expiration of such section and shall be deemed to expire therewith.