Bill S2425-2013

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; establishes the retail food establishment living wages tax credit.

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  • Jan 17, 2013: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Memo

BILL NUMBER:S2425

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; and to amend the tax law, in relation to establishing the retail food establishment living wages tax credit

PURPOSE OR GENERAL IDEA OF BILL: This bill promotes 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 and may be cited as the "food retail establishment subsidization for health 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 communities across the state.

Section 3. Paragraph k of 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, as added by section 4 of part FF of chapter 59 of the laws of 2006, is amended and a new paragraph 1 is added. The new paragraph includes provisions for underserved communities that participate in the pride of New York program, 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, and pay their employees an amount at least equal to a living wage rate.

Section 4. Section 210 of the tax law is amended by adding a new subdivision 46. Retail food establishment living wage tax credit. A taxpayer that is a retail food establishment will be allowed a credit against the tax imposed for providing living wages to its employees. The amount of the credit shall be equal to the difference between the New York State minimum wage and the living wage, to be defined by the commissioner of labor.

Section 5. Subparagraph B of paragraph 1 of subsection i of section 606 of the tax law is amended by adding new clause xxxi for retail food.

Section 6. Section 606 of the tax law is amended by adding a new subsection k-1. Defines the tax credit for reimbursement to establishments providing a living wage.

Section 7. Effective date.

JUSTIFICATION: Development pressures in New York's urban areas, increased consolidation of the retail industry and other socio economic factors

have led to a decline in the number of supermarkets and other retail outlets selling fresh foods. The increasing disappearance of retailers offering fresh food choices in cities has been identified across the country as a factor in 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 emissions by encouraging reliance on less processed food and reducing the need for long distance transportation. The result will be improved health, both personal and economic, for communities across New York.

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, and pay their employees an amount at least equal to a living wage rate. Establishments that adhere to the living wage provision will be reimbursed through tax credits.

PRIOR LEGISLATIVE HISTORY: 2010: A.7975-A/S.3557-A Held in Finance Formerly sponsored by Assemblyman Diaz. A.11771 (2008), A.5814 (2009).

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; and that the credit established by section four, five and six of this act shall apply to taxable years beginning on or after January 1, 2014.


Text

STATE OF NEW YORK ________________________________________________________________________ 2425 2013-2014 Regular Sessions IN SENATE January 17, 2013 ___________
Introduced by Sen. ADAMS -- 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; and to amend the tax law, in relation to establishing the retail food establishment living wages tax credit 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 (FRESH 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: (A) PARTICIPATE IN THE PRIDE OF NEW YORK PROGRAM; (B) ACCEPT PAYMENT FROM ELECTRONIC BENEFIT TRANSFER THROUGH THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM AND THROUGH THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN; (C) DO NOT CHARGE A MEMBERSHIP FEE; (D) HIRE RESIDENTS LIVING WITHIN A TWENTY MILE RADIUS OF SUCH RETAIL FOOD ESTABLISHMENT; AND (E) PAY ITS EMPLOYEES AN AMOUNT AT LEAST EQUAL TO A LIVING WAGE RATE, WHICH SHALL BE DETERMINED BY THE COMMISSIONER OF LABOR; PROVIDED, HOWEV- ER, THAT SUCH TERM SHALL NOT INCLUDE CONVENIENCE STORES, AND THAT REAL ESTATE PROJECTS WHICH HAVE MULTI-TENANT USES ARE NOT ELIGIBLE UNLESS A MINIMUM OF FIFTY PERCENT OF THE BUILDING AREA FOR WHICH ASSISTANCE IS SOUGHT WILL BE USED FOR FOOD RETAIL ESTABLISHMENTS. S 4. Section 210 of the tax law is amended by adding a new subdivision 46 to read as follows: 46. RETAIL FOOD ESTABLISHMENT LIVING WAGES TAX CREDIT. (A) GENERAL. A TAXPAYER THAT IS A RETAIL FOOD ESTABLISHMENT AS DEFINED IN PARAGRAPH (B) OF THIS SUBDIVISION SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR PROVIDING LIVING WAGES TO ITS EMPLOYEES. (B) RETAIL FOOD ESTABLISHMENTS. AN ELIGIBLE TAXPAYER SHALL BE A RETAIL FOOD ESTABLISHMENT AS DEFINED IN PARAGRAPH (O) OF SUBDIVISION ONE OF SECTION SIXTEEN-M OF SECTION ONE OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT. (C) AMOUNT OF CREDIT. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE DIFFERENCE BETWEEN THE NEW YORK STATE MINIMUM WAGE ESTABLISHED PURSUANT TO SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW AND THE LIVING WAGE, TO BE DEFINED BY THE COMMISSIONER OF LABOR. (D) CARRYOVER. THE CREDIT ALLOWED UNDER THIS SUBDIVISION FOR ANY TAXA- BLE YEAR SHALL NOT REDUCE THE TAX DUE FOR SUCH YEAR TO LESS THAN THE HIGHER OF THE AMOUNTS PRESCRIBED IN PARAGRAPHS (C) AND (D) OF SUBDIVI- SION ONE OF THIS SECTION. PROVIDED, HOWEVER, IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBDIVISION FOR ANY TAXABLE YEAR REDUCES THE TAX TO SUCH AMOUNT, ANY AMOUNT OF CREDIT NOT DEDUCTIBLE IN SUCH TAXABLE YEAR MAY BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS. S 5. Subparagraph (B) of paragraph 1 of subsection (i) of section 606 of the tax law is amended by adding a new clause (xxxv) to read as follows: (XXXV) RETAIL FOOD AMOUNT OF CREDIT ESTABLISHMENT TAX CREDIT UNDER UNDER SUBDIVISION SUBSECTION (K-1) FORTY-SIX OF SECTION TWO HUNDRED TEN
S 6. Section 606 of the tax law is amended by adding a new subsection (k-1) to read as follows: (K-1) RETAIL FOOD ESTABLISHMENT LIVING WAGES TAX CREDIT. (1) A TAXPAY- ER THAT IS A RETAIL FOOD ESTABLISHMENT AS DEFINED IN PARAGRAPH (O) OF SUBDIVISION ONE OF SECTION SIXTEEN-M OF SECTION ONE OF THE NEW YORK STATE URBAN DEVELOPMENT CORPORATION ACT SHALL BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED BY THIS ARTICLE. THE AMOUNT OF THE CREDIT SHALL BE EQUAL TO THE DIFFERENCE BETWEEN THE NEW YORK STATE MINIMUM WAGE ESTABLISHED PURSUANT TO SECTION SIX HUNDRED FIFTY-TWO OF THE LABOR LAW AND THE LIVING WAGE TO BE DETERMINED BY THE COMMISSIONER OF LABOR. (2) IF THE AMOUNT OF THE CREDIT ALLOWED UNDER THIS SUBSECTION FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, THE EXCESS SHALL BE TREATED AS AN OVERPAYMENT OF TAX TO BE CREDITED OR REFUNDED IN ACCORDANCE WITH THE PROVISIONS OF SECTION SIX HUNDRED EIGHTY-SIX OF THIS ARTICLE, PROVIDED, HOWEVER, THAT NO INTEREST SHALL BE PAID THEREON. S 7. 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: 1. 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; 2. 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; and 3. the credit established by sections four, five and six of this act shall apply to taxable years beginning on or after January 1, 2014.

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