Assembly Bill A10801

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   10801
 
                           I N  A S S E M B L Y
 
                               April 1, 2026
                                ___________
 
 Introduced by M. of A. NOVAKHOV -- read once and referred to the Commit-
   tee on Governmental Operations
 
 AN  ACT to amend the executive law, in relation to clarifying the limits
   of municipal authority regarding grocery price controls  and  prohibit
   non-emergency  local  regulations  that  interfere  with  food  supply
   systems in the state of New York

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Legislative findings and intent. The legislature finds that
 artificially  freezing  grocery prices below market rates causes grocery
 stores to reduce payments to suppliers and farmers, who are often unable
 to continue producing food at a loss. Countries and cities  that  imple-
 mented  long-term  price  controls  have  experienced  sharp declines in
 domestic food production, supply shortages, hunger crises, and the  rise
 of  black  markets.  In  Venezuela,  Soviet-era  Ukraine,  Zimbabwe, and
 others, government price mandates led directly to farm abandonment, food
 rationing, and chronic  scarcity,  disproportionately  harming  working-
 class and rural populations. A municipally run grocery system with price
 mandates  discourages  innovation,  prevents  sustainable  farming,  and
 disincentivizes  private  investment  in  agriculture,  logistics,   and
 retail.  Government resources are better allocated toward expanding SNAP
 benefits, subsidizing food infrastructure, and directly assisting house-
 holds  in  need,  rather  than  suppressing  prices  in a way that harms
 supply. Section 24 of the executive law grants local  leaders  temporary
 emergency powers, not permanent economic control, and should not be used
 to  override  agricultural  or  market  stability outside of those clear
 bounds.
   § 2. The executive law is amended by adding a new section 24-a to read
 as follows:
   § 24-A. CLARIFICATION OF EMERGENCY POWERS. 1.  (A)  NO  CITY,  COUNTY,
 MUNICIPALITY, OR LOCAL GOVERNMENT SUBDIVISION IN NEW YORK SHALL ENACT OR
 ENFORCE  ANY  LAW,  ORDINANCE, OR EXECUTIVE ORDER THAT FREEZES, CAPS, OR
 SETS MAXIMUM GROCERY PRICES UNLESS:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD15138-01-6
              

 A. 10801                            2
 
   (I) A STATE OF EMERGENCY HAS BEEN DECLARED UNDER  SECTION  TWENTY-FOUR
 OF THIS ARTICLE; AND
   (II)  THE  REGULATION  IS  ISSUED  IN  ACCORDANCE  WITH SUCH EMERGENCY
 AUTHORITY.
   (B) ANY LOCAL ACTION OUTSIDE THE LIMITS OF SECTION TWENTY-FOUR OF THIS
 ARTICLE SHALL BE NULL AND VOID.
   2. NOTHING IN THIS ACT SHALL BE CONSTRUED TO LIMIT THE  GOVERNOR'S  OR
 LOCAL  CHIEF  EXECUTIVES'  AUTHORITY  UNDER  SECTION TWENTY-FOUR OF THIS
 ARTICLE TO REGULATE PRICES DURING A  FORMALLY  DECLARED  EMERGENCY.  ALL
 SUCH  ORDERS  SHALL  BE LIMITED IN SCOPE AND DURATION AS DEFINED BY SUCH
 STATUTE.
   § 3. Severability. If any clause,  sentence,  paragraph,  subdivision,
 section  or part of this act shall be adjudged by any court of competent
 jurisdiction to be invalid, such judgment shall not affect,  impair,  or
 invalidate the remainder thereof, but shall be confined in its operation
 to the clause, sentence, paragraph, subdivision, section or part thereof
 directly  involved  in the controversy in which such judgment shall have
 been rendered. It is hereby declared to be the intent of the legislature
 that this act would have been enacted even if  such  invalid  provisions
 had not been included herein.
   § 4. This act shall take effect immediately.