S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 5432--A

                       2015-2016 Regular Sessions

                            I N  S E N A T E

                              May 14, 2015
                               ___________

Introduced by Sens. FUNKE, AVELLA -- read twice and ordered printed, and
  when printed to be committed to the Committee on Agriculture -- recom-
  mitted  to the Committee on Agriculture in accordance with Senate Rule
  6, sec. 8 -- reported favorably from said committee and  committed  to
  the  Committee  on  Finance  --  committee  discharged,  bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the agriculture and markets law  and  the  tax  law,  in
  relation  to the healthy options and community outreach program and to
  direct the empire state development corporation to establish a  public
  awareness campaign regarding such program

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The agriculture and markets law is amended by adding a  new
article 29-A to read as follows:
                              ARTICLE 29-A
             HEALTHY OPTIONS AND COMMUNITY OUTREACH PROGRAM
SECTION 520. HEALTHY OPTIONS AND COMMUNITY OUTREACH PROGRAM.
  S 520. HEALTHY OPTIONS AND COMMUNITY OUTREACH PROGRAM. 1. (A) THERE IS
HEREBY  CREATED  WITHIN THE DEPARTMENT THE HEALTHY OPTIONS AND COMMUNITY
OUTREACH PROGRAM. THE DEPARTMENT SHALL CONDUCT AN OUTREACH  PROGRAM  FOR
THE  PURPOSE  OF  EXPANDING  THE  NUMBER OF CONVENIENCE STORES AND SMALL
GROCERS OFFERING HEALTHY FOOD AND BEVERAGE OPTIONS TO  AT-RISK  COMMUNI-
TIES  IN  UNDERSERVED AREAS. THE OUTREACH PROGRAM SHALL ALSO EDUCATE THE
PUBLIC ON THE IMPORTANCE OF HEALTHY EATING AND THE AVAILABILITY OF HEAL-
THY PRODUCTS IN LOCAL COMMUNITIES.
  (B) FOR PURPOSES OF THIS SECTION, THE FOLLOWING TERMS SHALL  HAVE  THE
FOLLOWING MEANINGS:
  (I)  "UNDERSERVED  AREAS"  MEANS LOW OR MODERATE-INCOME CENSUS TRACTS,
AREAS OF BELOW AVERAGE  SUPERMARKET  DENSITY  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  LIMITA-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11031-03-6
              

S. 5432--A                          2

TIONS  TO  SUPERMARKETS  DUE  TO  TRAVEL  DISTANCE, AS DETERMINED BY THE
DEPARTMENT;
  (II)  "AT-RISK COMMUNITIES" MEANS THOSE AREAS THE DEPARTMENT OF HEALTH
HAS IDENTIFIED AS SUFFERING FROM HIGH RATES  OF  OBESITY,  DIABETES  AND
OTHER HEALTH PROBLEMS ASSOCIATED WITH LIMITED ACCESS TO NUTRITIOUS FOODS
AND BEVERAGES; AND
  (III)  "SMALL  GROCER"  MEANS  ANY RETAIL ESTABLISHMENT WITH LESS THAN
THREE THOUSAND FIVE HUNDRED SQUARE FEET WHERE FOODSTUFFS  ARE  REGULARLY
AND CUSTOMARILY SOLD IN A BONA FIDE MANNER FOR CONSUMPTION OFF THE PREM-
ISES.
  2.  THE  DEPARTMENT  SHALL  IDENTIFY  AND  INFORM ELIGIBLE CONVENIENCE
STORES AND SMALL GROCERS OF THE OUTREACH PROGRAM AND  THE  TAX  BENEFITS
SHOULD  SUCH  STORES  OR  GROCERS CHOOSE TO PARTICIPATE.   PARTICIPATING
CONVENIENCE STORES AND SMALL GROCERS FOUND TO BE IN COMPLIANCE WITH  THE
PROGRAM  SHALL  BE  ELIGIBLE TO RECEIVE TAX CREDITS PURSUANT TO SECTIONS
TWO HUNDRED TEN-B AND SIX HUNDRED SIX OF THE TAX LAW.
  3. THE  COMMISSIONER  SHALL  DETERMINE  ELIGIBILITY  REQUIREMENTS  FOR
PARTICIPATION  IN THE PROGRAM, PROVIDED, HOWEVER, THAT SUCH REQUIREMENTS
SHALL INCLUDE THE FOLLOWING:
  (A) A PARTICIPATING CONVENIENCE STORE OR SMALL GROCER SHALL BE LOCATED
IN AN UNDERSERVED AREA AND SERVE AN AT-RISK COMMUNITY;
  (B) A PARTICIPATING CONVENIENCE STORE OR SMALL GROCER SHALL:
  (I) STOCK AND SELL WHOLESOME FOODS, AS DETERMINED BY  THE  DEPARTMENT,
SUCH  AS  FRESH  FRUITS,  VEGETABLES,  WHOLE  GRAIN  PRODUCTS  AND DAIRY
PRODUCTS;
  (II) PROMINENTLY DISPLAY SUCH FOODS AND BEVERAGES; AND
  (III) LABEL AND PROMOTE SUCH FOODS AND BEVERAGES.
  4. APPLICATIONS FOR PARTICIPATION IN THE PROGRAM SHALL BE SUBMITTED BY
EACH CONVENIENCE STORE OR SMALL GROCER SEEKING  TO  PARTICIPATE  IN  THE
PROGRAM,  AND  SHALL  BE IN THE FORM AND CONTAIN SUCH INFORMATION AS THE
COMMISSIONER MAY PRESCRIBE. THE COMMISSIONER SHALL REVIEW  ALL  APPLICA-
TIONS  FOR PARTICIPATION IN THE PROGRAM FOR ELIGIBILITY AND SHALL REGIS-
TER ELIGIBLE APPLICANTS.   THE  DEPARTMENT  SHALL  ANNUALLY  VISIT  EACH
PARTICIPATING  CONVENIENCE  STORE OR SMALL GROCER TO ASSESS EACH PARTIC-
IPANT'S COMPLIANCE WITH THIS SECTION. AFTER SUCH VISIT, THE COMMISSIONER
SHALL PROVIDE A CERTIFICATE CERTIFYING THAT THE  REGISTERED  CONVENIENCE
STORE OR SMALL GROCER IS ELIGIBLE FOR TAX CREDITS PURSUANT TO THIS ARTI-
CLE.
  5.  THE  DEPARTMENT, IN CONSULTATION WITH THE EMPIRE STATE DEVELOPMENT
CORPORATION, SHALL  PROMOTE  SUCH  PROGRAM  WITHIN  AT-RISK  COMMUNITIES
THROUGH EDUCATIONAL AND INFORMATIONAL MATERIALS IN PRINT, AUDIO, VISUAL,
ELECTRONIC  OR  OTHER  MEDIA AS WELL AS PUBLIC SERVICE ANNOUNCEMENTS AND
ADVERTISEMENTS.
  6. THE DEPARTMENT, IN CONSULTATION WITH THE EMPIRE  STATE  DEVELOPMENT
CORPORATION,  SHALL  PROVIDE  STORE  OWNERS  WITH  INFORMATION  ON LOCAL
DISTRIBUTORS INCLUDING  FARMERS'  MARKETS.  THE  DEPARTMENT  SHALL  ALSO
PROVIDE  TECHNICAL  ASSISTANCE  AND  TRAINING  TO PARTICIPANTS INCLUDING
GUIDANCE ON STORE LAYOUTS AND FOOD DISPLAYS.
  7. THE DEPARTMENT MAY PRODUCE, MAKE AVAILABLE TO  OTHERS  FOR  REPROD-
UCTION,  OR  CONTRACT WITH OTHERS TO DEVELOP SUCH MATERIALS MENTIONED IN
THIS SECTION AS THE  COMMISSIONER  DEEMS  APPROPRIATE.  THESE  MATERIALS
SHALL  BE  MADE  AVAILABLE TO THE PUBLIC AND FOR DISTRIBUTION IN PARTIC-
IPATING CONVENIENCE STORES AND SMALL GROCERS.
  8. THE COMMISSIONER MAY  MAKE  RULES  AND  REGULATIONS  NECESSARY  AND
APPROPRIATE FOR IMPLEMENTATION OF THIS SECTION.

S. 5432--A                          3

  S  2. Section 210-B of the tax law is amended by adding a new subdivi-
sion 49 to read as follows:
  49.  CREDIT  FOR CONVENIENCE STORES AND SMALL GROCERS PARTICIPATING IN
THE HEALTHY OPTIONS AND COMMUNITY OUTREACH  PROGRAM.  (A)  ALLOWANCE  OF
CREDIT.  A  TAXPAYER THAT IS A CONVENIENCE STORE OR SMALL GROCER PARTIC-
IPATING IN THE HEALTHY OPTIONS AND COMMUNITY OUTREACH  PROGRAM  PURSUANT
TO  SECTION FIVE HUNDRED TWENTY OF THE AGRICULTURE AND MARKETS LAW SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE  FOR  THE
PURCHASE,  INSTALLATION  OR  UPGRADE  OF  ANY  REFRIGERATION, STORAGE OR
DISPLAY UNITS NECESSARY FOR PARTICIPATION IN THE PROGRAM. THE AMOUNT  OF
THE  CREDIT  SHALL  BE  EQUAL  TO ONE HUNDRED PERCENT OF THE EXPENDITURE
INCURRED IN PURCHASING, INSTALLING OR UPGRADING ANY REFRIGERATION, STOR-
AGE OR DISPLAY EQUIPMENT.
  (B) WHEN CREDIT ALLOWED. THE  CREDIT  PROVIDED  FOR  HEREIN  SHALL  BE
ALLOWED  WITH RESPECT TO THE TAXABLE YEAR COMMENCING IN WHICH THE EQUIP-
MENT IS INSTALLED, UPGRADED OR PURCHASED.
  (C) PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED  TAXPAYER
TO  FURNISH  PROOF OF PARTICIPATION IN THE HEALTHY OPTIONS AND COMMUNITY
OUTREACH PROGRAM AND OF THE COST OF ANY PURCHASE, UPGRADE, OR  INSTALLA-
TION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBDIVISION.
  (D)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBDIVISION FOR  ANY  TAXABLE  YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 3. Section 606 of the tax law is amended by adding a new  subsection
(ccc) to read as follows:
  (CCC) CREDIT FOR CONVENIENCE STORES AND SMALL GROCERS PARTICIPATING IN
THE  HEALTHY  OPTIONS  AND  COMMUNITY OUTREACH PROGRAM. (1) ALLOWANCE OF
CREDIT. A TAXPAYER THAT IS A CONVENIENCE STORE OR A SMALL GROCER PARTIC-
IPATING IN THE HEALTHY OPTIONS AND COMMUNITY OUTREACH  PROGRAM  PURSUANT
TO  SECTION FIVE HUNDRED TWENTY OF THE AGRICULTURE AND MARKETS LAW SHALL
BE ALLOWED A CREDIT AGAINST THE TAX IMPOSED  BY  THIS  ARTICLE  FOR  THE
PURCHASE,  INSTALLATION  OR  UPGRADE  OF  ANY  REFRIGERATION, STORAGE OR
DISPLAY UNITS NECESSARY FOR PARTICIPATION IN THE PROGRAM. THE AMOUNT  OF
THE  CREDIT  SHALL  BE  EQUAL  TO ONE HUNDRED PERCENT OF THE EXPENDITURE
INCURRED IN PURCHASING, INSTALLING OR UPGRADING ANY REFRIGERATION, STOR-
AGE OR DISPLAY EQUIPMENT.
  (2) WHEN CREDIT ALLOWED. THE  CREDIT  PROVIDED  FOR  HEREIN  SHALL  BE
ALLOWED  WITH RESPECT TO THE TAXABLE YEAR COMMENCING IN WHICH THE EQUIP-
MENT IS INSTALLED, UPGRADED OR PURCHASED.
  (3) PROOF OF CLAIM. THE COMMISSIONER MAY REQUIRE A QUALIFIED  TAXPAYER
TO  FURNISH  PROOF OF PARTICIPATION IN THE HEALTHY OPTIONS AND COMMUNITY
OUTREACH PROGRAM AND OF THE COST OF ANY PURCHASE, UPGRADE, OR  INSTALLA-
TION IN SUPPORT OF HIS OR HER CLAIM FOR CREDIT UNDER THIS SUBSECTION.
  (4)  CARRYOVER  OF CREDIT. IF THE AMOUNT OF THE CREDIT, AND CARRYOVERS
OF SUCH CREDIT, ALLOWABLE UNDER THIS SUBSECTION  FOR  ANY  TAXABLE  YEAR
SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH YEAR, SUCH EXCESS AMOUNT MAY BE
CARRIED  OVER  TO THE FIVE TAXABLE YEARS NEXT FOLLOWING THE TAXABLE YEAR
WITH RESPECT TO WHICH THE CREDIT IS ALLOWED AND MAY BE DEDUCTED FROM THE
TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 4. The empire state development corporation shall develop, establish
and implement a public awareness campaign regarding the healthy  options
and  community  outreach  program established pursuant to section 520 of
the agriculture and markets law. The campaign shall include  information

S. 5432--A                          4

on  the  benefits  of  healthy eating and on the availability of healthy
foods and beverages  in  the  local  community.  Such  public  awareness
campaign  shall  be  made  available  to  the public by any means deemed
appropriate  by the corporation including, but not limited to, internet,
radio, and print advertising  such  as  billboards  and  posters.    The
campaign  may also identify and recruit individuals to serve as visible,
public ambassadors to promote this message.  The campaign may include an
internet website providing information on the benefits of healthy  foods
and  beverages  and  on  the availability of such foods and beverages at
local convenience stores and small grocers. The campaign shall begin  no
later than January 1, 2017.
  S  5.  This  act shall take effect immediately; provided that sections
two and three of this act shall apply to taxable years beginning on  and
after January 1, 2017.