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.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A8692
SPONSOR: Stirpe 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 the
establishment or retention of food retail establishments selling fresh
food in underserved communities.
SUMMARY OF 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 limited 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 (0).
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 expenditure and greenhouse gas
emissions by encouraging reliance on less processed food and reducing
the need for long-distance transportation. Retail establishments 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, and hire residents living
within a twenty-mile radius of their business.
PRIOR LEGISLATIVE HISTORY:
2023-24: S3546 Passed Senate, Passed Assembly, Vetoed by Governor
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
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.
STATE OF NEW YORK
________________________________________________________________________
8692
2025-2026 Regular Sessions
IN ASSEMBLY
May 29, 2025
___________
Introduced by M. of A. STIRPE -- read once and referred to the Committee
on Economic Development
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:
1 Section 1. Short title. This act shall be known and may be cited as
2 the "food retail establishment subsidization for healthy communities
3 act".
4 § 2. Legislative intent. The legislature finds that the lack of access
5 to fresh foods is a problem of growing concern in many communities
6 across the state. Substantial increases in urban land values and rents,
7 limited access to financing and other economic pressures have left many
8 lower-income residents in urban and rural areas underserved by supermar-
9 kets and other food retail establishments. The resulting lack of access
10 to a variety of fresh food retailers makes it more difficult and expen-
11 sive for these residents to maintain a nutritionally balanced diet and
12 leads to increased public health costs, dilutes the value of public
13 assistance for food purchases, leads to greater travel times and energy
14 expenditures to obtain fresh food, and deprives the state's farmers of
15 markets for their products. Providing access to financial assistance for
16 urban and rural supermarkets in underserved areas will remedy these
17 adverse conditions, create employment opportunities and help to revital-
18 ize and stabilize currently underserved neighborhoods.
19 § 3. Subdivision 1 of section 16-m of section 1 of chapter 174 of the
20 laws of 1968, constituting the New York state urban development corpo-
21 ration act, is amended by adding a new paragraph (p) to read as follows:
22 (p) Loans, loan guarantees, interest subsidies and grants to busi-
23 nesses, municipalities, not-for-profit corporations or local development
24 corporations for the purpose of attracting, maintaining or permitting
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09510-01-5
A. 8692 2
1 the expansion of food retail establishments in underserved areas. The
2 corporation shall consider the economic viability of the project and the
3 potential impact on the community when evaluating applications for such
4 loans, loan guarantees, interest subsidies and grants. The corporation
5 shall establish performance indicators to assess the progress of the
6 projects receiving monies pursuant to the authorization provided in this
7 paragraph, and track and publish this information on its website. For
8 purposes of this paragraph, "underserved areas" shall include low or
9 moderate-income census tracts, areas of below average supermarket densi-
10 ty or having a supermarket customer base with more than fifty percent
11 living in low-income census tracts, or other areas demonstrated to have
12 significant access limitations due to travel distance, as determined by
13 the corporation, and "food retail establishments" shall include super-
14 markets and other grocery retailers that operate on a self-service basis
15 and sell a minimum percentage, as determined by the corporation, of
16 produce, meat, poultry, seafood, baked goods and/or dairy products and
17 which:
18 (i) participate in the New York grown and certified program;
19 (ii) accept payment from electronic benefit transfer through the
20 supplemental nutrition assistance program and through the special
21 supplemental nutrition program for women, infants, and children;
22 (iii) do not charge a membership fee; and
23 (iv) hire residents living within a twenty mile radius of such retail
24 food establishment.
25 § 4. This act shall take effect on the first of April next succeeding
26 the date on which it shall have become a law; provided, however that the
27 urban development corporation shall be immediately authorized to take
28 any and all actions necessary to fully implement the provision of
29 section three of this act on or before such effective date; and provided
30 further, that the amendments to section 16-m of the urban development
31 corporation act made by section three of this act shall not affect the
32 expiration of such section and shall be deemed to expire therewith.
