BILL NUMBER:S1498

TITLE OF BILL:  An act to amend the New York state urban development
corporation act, in relation to enacting the food retail establishment
subsidization for healthy communities (FRESH Communities) act

PURPOSE OR GENERAL IDEA OF BILL:

To promote public health and nutrition by authorizing assistance for
establishment or retention of food retail establishments selling fresh
food in underserved communities.

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.