Relates to the reimbursement rate for purchases made through the use of electronic benefit transfer technology made at farmers' markets

Title of bill

An act to amend the social services law, in relation to electronic benefit system transfer technology and reimbursements for the use of such technology

Purpose

To support farmers' markets by incentivizing purchases made using Electronic Benefit Transfer (EBT) payment thereby increasing access to fresh, locally grown produce.

Summary of provisions

Section 1 adds a new provision at section 21-a of the Social Services law directing the Department of Social Services to create a method by which electronic benefit transfers made through technology available at farmers' markets can be identified as occurring at such locations.

Further, subdivision 3 will provide a 150% reimbursement for purchases made at designated farmers' markets through electronic benefit transfer technology.

Section 2 provides the effective date.

Justification

In late 2011, Governor Cuomo launched the "New York Fresh Connect Farmers' Market" program, which was created to promote and expand access to healthy food purchases at farmers' markets statewide. The Governors program issues "FreshConnect" vouchers to participants in the SNAP program who patronize farmers markets participating in the program at a rate of $2 for every $5 spent. The vouchers are accepted at participating markets and redeemed for value by farmers through the Farmers Market Federation of NY.

This proposal intends to improve upon the FreshConnect program by eliminating the use of vouchers or tokens and devising a method in which the department of Social Services can instantaneously reimburse the EBT user. Further this initiative will increase the reimbursement rate of the current "FreshConnect" program by returning a 150% reimbursement when using EBT benefits to purchase healthy, local produce at designated farmers markets.

Farmers' markets play an integral role in communities with limited access to healthy foods. An increased reimbursement rate for the purchase of fresh produce from farmers' markets enables low-income consumers to purchase more healthy produce. Implementing a restructured reimbursement system eliminates the exchange of vouchers during the sale of produce and in so doing farmers are no longer tasked to redeem such vouchers for value. Also, this streamlined reimbursement system will benefit farmers in that it reduces the cost associated with the use of vouchers and tokens.

Legislative history

New bill.

Fiscal implications

To be determined.

Effective date

This act shall take effect on the sixtieth day after it shall have become a law; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.