Senate Bill S2776

                                 BILL NUMBER:  S2776

 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 :

This proposal seeks to broaden access to healthy foods, and to
increase the number of farmers' markets authorized to accept EBT
payment by alleviating the fees and costs associated with electronic
benefit transfer technology (EBT) equipment at farmers' markets.

 SUMMARY OF PROVISIONS :

Section 1 expands the Agriculture and Markets Law at section 262,
State aid for farmers' markets, by alleviating the service costs and
fees associated with furnishing electronic benefit transfer equipment,
including transaction fees, wireless technology fees, application fees
and seasonal reactivation fees.

Section 2 provides the effective date.

 EXISTING LAW :

Section 262 of the Agriculture and Markets law authorizes the use of
              

State funding to assist farmers' markets, specifically at subsection
(c), equipment costs associated with improving farmers' market
functions, including but not limited to expanding access to electronic
benefit transfer technology.

Further, the U.S. Department of Agriculture provides free electronic
benefit transfer equipment for eligible farmers' markets.

 JUSTIFICATION :

Many legislative initiatives are aimed at expanding access to healthy
foods by increasing the number of retailers accepting Electronic
Benefit Transfer (EBT) payment, including farmers' markets. Despite
these efforts, many farmers' markets are neither authorized nor
equipped to accept EBT payment. Nationally there are over 8,000
farmers' markets and of those, less than half are authorized to accept
benefit cards. In New York, pursuant to data from the State website,
there are about 700 farmers' markets that operate seasonally. While an
increasing number of farmers' markets across this state are authorized
to accept EBT payment, according to the USDA, only about 220 currently
accept EBT payment. This leaves the majority of markets unauthorized
to operate as EBT retailers.  Furthermore, authorization is not the
only hurdle to EBT use at farmers' markets. Even when a farmers'
market is authorized to accept EBT, an EBT recipient's access to
healthy foods is contingent on the farmers' market's ability to pay
costly processing fees.

In an effort to mitigate the deterrent effects high processing fees
have on farmers' markets seeking EBT authorization, this bill waives
the service fees associated with EBT processing equipment. Presently,
both Federal and State programs provide access to free electronic
benefit transfer point of sale equipment; however, the state is not
authorized to assist in the payment of the fees associated with the
use of the EBT equipment. At least 12 other states throughout the
country, including New Hampshire and California, have authorized the
use of state funds to cover the fees associated with the use of EBT
point of sale equipment, including but not limited to, wireless and
transaction fees. In each of these instances, the state aid allocated
for said fees is limited to EBT transactions.

This bill supports and promotes the use of EBT payment at farmers'
markets by waiving the service fees associated with EBT processing
equipment. Farmers' markets operating in New York State will be
alleviated of the fees and costs associated with furnishing EBT
technology. The service and transaction fees impacted by this proposal
will be limited to fees associated to EBT transactions. This
initiative expands access to healthy foods by allowing access to
necessary financial support to the several hundred unauthorized
farmers' markets across the state, thereby encouraging healthy eating,
supporting local economies and enabling all residents to purchase
foods at farmers' markets.

 LEGISLATIVE HISTORY :

S.7020 Referred and committed to Finance.

 FISCAL IMPLICATIONS :

To be determined.

 EFFECTIVE DATE :
This act shall take effect on the sixtieth day after it shall have
become a law.