senate Bill S2425

2013-2014 Legislative Session

Enacts the "food retail establishment subsidization for healthy communities act"

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Archive: Last Bill Status - In Committee


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor

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Assembly Actions - Lowercase
Senate Actions - UPPERCASE
Jan 17, 2013 referred to corporations, authorities and commissions

S2425 - Bill Details

Current Committee:
Law Section:
New York State Urban Development Corporation Act
Laws Affected:
Amd §16-m, UDC Act; amd §§210 & 606, Tax L
Versions Introduced in Previous Legislative Sessions:
2011-2012: S3724A
2009-2010: S3557A

S2425 - Bill Texts

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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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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.

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

                                  2425

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            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:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03739-02-3

S. 2425                             2

  (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. 2425                             3

  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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