Bill S3819-2013

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

Enacts the "food retail establishment subsidization for healthy communities act" (FRESH Communities); provides 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.

Details

Actions

  • Jan 8, 2014: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Feb 21, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Memo

BILL NUMBER:S3819

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: 2009-2010 A.7975-A, 2007-2008 A.11771, 2011-2012; A. Referred to Economic Development, passed Assembly, S.7385 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.


Text

STATE OF NEW YORK ________________________________________________________________________ 3819 2013-2014 Regular Sessions IN SENATE February 21, 2013 ___________
Introduced by Sen. KENNEDY -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Authorities and Commissions 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 THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known and may be cited as the "food retail establishment subsidization for healthy communities act". S 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. Substantial increases in urban land values and rents, limited access to financing and other economic pressures have left many lower-income residents in urban and rural areas underserved by supermar- kets and other food retail establishments. The resulting lack of access to a variety of fresh food retailers makes it more difficult and expen- sive for these residents to maintain a nutritionally balanced diet and leads to increased public health costs, dilutes the value of public assistance for food purchases, leads to greater travel times and energy expenditures to obtain fresh food, and deprives the state's farmers of markets for their products. Providing access to financial assistance for urban and rural supermarkets in underserved areas will remedy these adverse conditions, create employment opportunities and help to revital- ize and stabilize currently underserved neighborhoods. S 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 corpo- ration act, is amended by adding a new paragraph (o) to read as follows: (O) LOANS, LOAN GUARANTEES, INTEREST SUBSIDIES AND GRANTS TO BUSI- NESSES, 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 DENSI- TY OR HAVING A 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 SUPER- MARKETS 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. S 4. 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 provision 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.

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