BILL NUMBER: S3546

SPONSOR: KENNEDY
 
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 act."

Section 2. Legislative intent. The legislature finds that the lack of
access to fresh foods is a problem of growing concern in many communi-
              

ties 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, inter-
est 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 custom-
er 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 New York grown and certified program;

(ii) accept payment from electronic benefit transfer through the supple-
mental 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.

Section 4. Establishes the effective date.

 
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 increas-
ingly 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 under-
served 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 admissions by encouraging reliance on less processed food and reduc-
ing 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 assist-
ance program, do not charge a membership fee, hire residents living
within a twenty mile radius of their business.

 
PRIOR LEGISLATIVE HISTORY:

2007-2008 AA 1771. 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

2015-16 S1498/A.4960 Referred to Corporations. Authorities and Commis-
sions

2017-18 S2783 Referred to Corporations, Authorities and Commissions

2019-20: S.584A Passed Senate

2021-22: S6233 Passed Senate

 
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.