Relates to providing state funding for the fees and costs associated with providing electronic benefit transfer technology at farmers' markets

Section 2 provides the effective date.

Existing law

Section 262 of the Agriculture and Markets law authorizes the use of State funding to assist farmers' markets, specifically at subsection (c), equipment costs associated with improving farmers' market functions, including but not limited to expanding access to electronic benefit transfer technology.

Further, the U.S. Department of Agriculture provides free electronic benefit transfer equipment for eligible farmers' markets.

Justification

Many legislative initiatives are aimed at expanding access to healthy foods by increasing the number of retailers accepting Electronic Benefit Transfer (EBT) payment, including farmers' markets. Despite these efforts, many farmers' markets are neither authorized nor equipped to accept EBT payment. Nationwide there are over 8,000 farmers' markets and of those less than half are authorized to accept benefit cards. In New York, pursuant to data from the State website, there are about 700 farmers' markets that operate seasonally. While an increasing number of farmers' markets across this state are authorized to accept EBT payment, according to the USDA, only about 220 currently accept EBT payment. This leaves the majority of markets unauthorized to operate as EBT retailers. Furthermore, authorization is not the only hurdle to EBT use at farmers' markets. Even when a farmers' market is authorized to accept EBT, an EBT recipient's access to healthy foods is contingent on the farmers' market's ability to pay costly processing fees.

In an effort to mitigate the deterrent effects high processing fees have on farmers' markets seeking EBT authorization, this bill waives the service fees associated with EBT processing equipment. Presently, both Federal and State programs provide access to free electronic benefit transfer point of sale equipment; however, the state is not authorized to assist in the payment of the fees associated with the use of the EBT equipment. At least 12 other states throughout the country, including New Hampshire and California, have authorized the use of state funds to cover the fees associated with the use of EBT point of sale equipment, including but not limited to, wireless and transaction fees. In each of these instances, the state aid allocated for said fees is limited to EBT transactions. This bill supports and promotes the usage of EBT payment at farmers' markets by waiving the service fees associated with EBT processing equipment. Farmers' markets operating in New York State will be alleviated of the fees and costs associated with furnishing EBT technology. The service and transaction fees impacted by this proposal will be limited to fees associated to EBT transactions. This initiative expands access to healthy foods by allowing access to necessary financial support to the several hundred unauthorized farmers' markets across the state, thereby encouraging healthy eating, supporting local economies and enabling all residents to purchase foods at farmers' markets.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the thirtieth day after it shall have become a law.