Senate Bill S2862A

2013-2014 Legislative Session

Relates to providing a tax credit to businesses for qualified expenses relating to occupational wellness

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Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 28, 2014	print number 2862a
Jan 28, 2014	amend and recommit to investigations and government operations
Jan 08, 2014	referred to investigations and government operations
Jan 24, 2013	referred to investigations and government operations

Bill Amendments

Original

A (Active)

2013-S2862 - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in 2011-2012 Legislative Session:: S4154

2013-S2862 - Summary

Relates to providing a tax credit to businesses for qualified expenses relating to occupational wellness; provides such credit shall equal, up to one hundred dollars per employee and shall not exceed one hundred thousand dollars per employer, the amount paid by the taxpayer during the taxable year for qualified expenses relating to occupational wellness.

2013-S2862 - Sponsor Memo

                                BILL NUMBER:S2862

TITLE OF BILL:  An act to amend the tax law, in relation to providing an
occupational wellness tax credit for businesses; and providing for the
repeal of such provisions upon expiration thereof

PURPOSE:  in the interest of the health and well being of individuals,
and the collectivity of New York State as a whole, this legislation will
grant qualified employers, that provide occupational wellness programs
to their employees, a tax credit of up to $200 per year, per employee.

SUMMARY OF PROVISIONS:

Section 1-- Details the legislative findings and intent relative to the
value and benefit of occupational wellness programs to the overall
health and well-being of individual employees and to the associated
business or corporate enterprise offering such programs.

Section 2-- Details the application process, criteria and requirements
pertaining to the prospective agreement between the Department of Health
(hereinafter, the Department) and an applicant for an occupational well-
ness tax credit. Among other provisions, this section provides that the
applicant applying for credit submit a detailed application to the
Department, outlining the occupational wellness plan to be implemented
including information relative to goals, costs, and expected results and
benefits of the program.  Requirements pertaining to the agreement for a

tax credit between the Commissioner of the Department and the applicant
are enumerated, including a maintenance of plan clause, a detailed
reporting mechanism, a non-compliance with agreement clause, and limita-
tion of the credit application to "qualified employees." This section
further provides that the Commissioner of the Department award tax cred-
its on a competitive basis, in writing, within. 45 days of receiving an
application. Requirements for application approval are provided, includ-
ing a priority to small businesses in the amount of $10 Million in dedi-
cated funding, a preference for "new programs," weighing the strength of
the application and ensuring geographical diversity.

Section 3-- Amends Section 210 of the tax law by adding a new subdivi-
sion 22a, that establishes the occupational wellness tax credit. This
section formally allows "taxpayers" a tax credit for providing an occu-
pational wellness program to their employees. This section spells out
the range of activities that fall under the definition of an occupa-
tional wellness program, that will qualify for the tax credit associated
thereto. Specifically, this section provides that the Department shall
determine the relevant components of an occupational wellness program,
including, but not limited to provision of health and lifestyle educa-
tion and information, conduction of health screenings and clinical test-
ing, encouragement of fitness enhancement opportunities, and provision
of a formal Employee Assistance Program. This section further provides
that the amount of credit to be allowed to a singular "taxpayer" for a
given year shall not exceed two hundred dollars per employee, capped at

an absolute maximum of ten thousand dollars per employer. The amount of
credit issued to all "taxpayers" under this subdivision shall not exceed
twenty million dollars annually.

Section 4-- Amends section 606 of the tax law by adding a new subsection
(numbered hh) that will compute the amount of the occupational wellness
tax credit, under subdivision 22-a of Section 210 of the tax law.

Section 5-- Establishes the same exact provisions in Section 606 of the
tax law as provided for in Section 3 of the instant bill, amending
Section 210 of the tax law. For more elucidation, see Section 3 above,

Section 6-- Clarifies that in addition to state funds appropriated for
Program purposes under this act, the Commissioner of the Department may
accept grants from public or private sources to further the ends of the
occupational wellness tax credit program. Allows the Commissioner of the
Department to contract with independent organizations relative to the
development of criteria for occupational wellness programs.

Section 7-- Requires the Commissioner of the Department to submit an
annual report, concerning the occupational wellness program, to the
Governor, Temporary President of the Senate and the Speaker of the
Assembly.

Section 8-- Establishes the effective date of this act and provides a
five year sunset provision.

JUSTIFICATION:  Spiraling health care costs are a penultimate issue
facing our state.  Employers continually worry as the cost of providing
health care increases to unprecedented levels. Chronic diseases, many of
which can be ameliorated, if not prevented, by diet and exercise, result
in disability and premature death. The average per capita spending on
health care increased 99% between 1990 and 2002. In 2001, premiums for
employer-sponsored health insurance increased by 11.0%. For reasons
related to the fiscal, as well as physical well-being of New York State,
the legislature must take an interest in and play an active role in
keeping its workforce healthy.

Almost every American is adversely affected by chronic disease in one
way or another--through the death of a loved one; a family member's
struggle with lifelong illness, disability, or compromised quality of
life; or the huge personal and societal financial toll wrought by chron-
ic disease. More than 1.7 million Americans die of a chronic disease
each year. The five chronic diseases are heart disease, stroke,
diabetes, cancer, and chronic pulmonary diseases such as asthma, bron-
chitis and emphysema. One million Americans can no longer perform daily
tasks, such as walking or bathing, without help due to a stroke. Expend-
itures for health care have continued to rise. Much of these costs can
be attributed to the diagnosis and treatment of chronic diseases and
conditions such as diabetes, obesity; cardiovascular disease and asthma.
Although chronic diseases are among the most common and costly of all
health problems, they are also among the most preventable. Many of the

disease conditions responsible for skyrocketing expenditures can be
traced back to modifiable risk factors. Individual behavior and life-
style choices influence the development and course of these chronic
conditions. Unhealthy behaviors, such as poor diet, lack of physical
activity, and tobacco and alcohol use are risk factors for many chronic
conditions. For example, overweight and obesity are risk factors for
type 2 diabetes, congestive heart failure, stroke, and hypertension.
Encouraging individuals to adopt healthy habits and have health screen-
ings may reduce the burden of chronic disease.  Society and employers
are increasingly designing programs to promote healthy behaviors. Compa-
nies are increasingly spending enormous amounts of money on health care
and productivity when you start adding up the medical dollars, absentee-
ism, disability, workers compensation, and safety issues. Large employ-
ers such as Johnson & Johnson {J & J) and DuPont Corporation, among
others, have reported the effectiveness of their occupational health
promotion programs.  Human capital is an employer's greatest investment
toward business success. An occupational wellness program benefits
employers by improving morale, reducing turnover, reducing absenteeism
due to illness and injury, and decrease health insurance costs. J & J
calculated a $225 per employee, per year savings in health care expendi-
tures due to lower utilization of health care services. Furthermore, J J
saw results within three years. Other big companies such as Citibank,
Steelcase Corporation of Michigan, United Airlines, Travelers Corpo-
ration, Motorola and DuPont all reported returns of $1.42-$16 for every
dollar spent on employee wellness programs.

When companies promote wellness and healthy living to their employees,
they can save on health care costs and reduce absenteeism. Studies
demonstrate that the health of employees impacts a business's bottom
line by helping companies reduce health care costs an average of $3.72
for each dollar invested. In addition, companies average $5.06 in
reduced absenteeism fox each dollar invested in a wellness program.
These programs save companies money, boost productivity, and motivate
employees.

A healthy employee with few health risks spends less money on medical
care due to fewer chronic illnesses and avoidance of serious health
incidents. On the other hand, poor health leads to symptoms and clinical
outcomes that lower functionality and increase the need for expensive
medical care. Absences from work leads to lost productivity, whereas
healthy workers get the job done better, faster, and cheaper. Therefore,
healthy employees not only cost less in medical care, they also are more
functional at work, absent less often, experience fewer injuries, and
return to work more quickly after illness or injury.

This bill would encourage employers to create occupational work and
wellness programs by allowing tax credits for establishing such
programs. A model program would include formal training as a component
of job related instruction which provides information on subjects relat-
ing to personal and family health, assess employee health levels,
encourages opportunities for employees' fitness-related activities, and

provides incentives for employees who regularly engage in physical
activity.

Despite the evidence that prevention works, the focus in our health care
system over the past century has not been on prevention of chronic
disease, but on treatment of short-term, acute health problems. As a
nation, we have emphasized expensive cures for disease rather than cost
effective prevention.

With an employer-based health program that embraces prevention and heal-
thy behavior, we can become a healthier nation. Evidence indicates that
with education and social support, people can and will take charge of
their health. The state must therefore support initiatives that focus on
individual responsibility and behavior change related to health.

If we are serious about improving the health and quality of life of
Americans, while lowering health care costs in the long term, we cannot
afford to ignore the power of prevention.

LEGISLATIVE HISTORY:  Senate 3835 of 2005-2006; Referred to Committee.
Senate 2595 of 2007-2008;referred to Investigations and Government Oper-
ations Senate 4154 of 2011-2012;referred to Investigations and Govern-
ment Operations

FISCAL IMPLICATIONS:  Short-term, to be determined; Long-term, benefi-
cial savings to the State.

LOCAL FISCAL IMPLICATIONS:  None specifically noted, at present.

EFFECTIVE DATE: Immediately.

2013-S2862 - Bill Text download pdf

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

                                  2862

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 24, 2013
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations

AN ACT to amend the tax law, in relation to  providing  an  occupational
  wellness  tax  credit  for businesses; and providing for the repeal of
  such provisions upon expiration thereof

  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 hereby
finds that healthier  employees  experience  less  absenteeism,  greater
productivity, better mental performance, and increased job satisfaction,
performance and morale.
  The  legislature  hereby  finds  that  occupational  wellness programs
directly prevent the leading causes of premature death and disability in
the United States. Furthermore, the vital importance of this  issue  was
recently  crystallized  by the United States Centers for Disease Control
and Prevention (CDC) who earmarked $14  million  to  study  occupational
wellness programs.
  The  legislature hereby finds that there is a significant state inter-
est in encouraging a proactive approach to preventing illness and  inju-
ry, as opposed to the traditional reactive, sick-care method. A reorien-
tation  of  our  systematic  approach  to  health care is exemplified by
United States Senate Bill 2558, the Healthy  Lifestyles  and  Prevention
(HeLP)  America  Act  of  2004  and New York State Senate Bill 5774-A of
1999-2000, The Wellness and Preventative Health Care Program.
  The legislature hereby finds that individual studies  and  evaluations
of wellness programs have concluded that such endeavors have dual, rein-
forcing,  and  parallel  benefits. In the first instance, employees have
become more fit, reduced obesity, lessened stress levels, quit  smoking,
and  achieved  other propitious outcomes. Secondarily, wellness programs

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07238-01-3

S. 2862                             2

have increased overall productivity,  economic  viability,  and  reduced
health care costs.
  The  legislature  hereby  finds  that encouragement of a healthy life-
style, while accruing  concrete  benefits  to  employees  and  employers
alike,  in the final analysis -- empowers individuals, strengthens fami-
lies, and promotes a greater quality of life.
  The legislature intends to ensconce the ethic of a  healthy  workforce
into  the fabric of our personal and professional lives, while realizing
the tertiary benefits of savings on insurance premiums as the result  of
reducing  the  number  and  instance  of  health  insurance and workers'
compensation claims filed by employees.
  S 2. Agreement for tax credits;  application,  criteria  and  require-
ments.  1.    Application criteria.   (a) The department of health shall
promulgate an application form for  taxpayers  to  apply  for  a  credit
established  in  subdivision  22-a of section 210 and subsection (vv) of
section 606 of the tax law.   The application  form  shall  include  all
relevant information deemed necessary by the commissioner of health.
  (b)  Application.   An application submitted in writing to the commis-
sioner of health shall include a detailed description  of  the  wellness
plan  to  be  implemented.    Such description shall include, but not be
limited to, the purpose of the plan, target goals,  type  or  nature  of
plan,  estimated cost of plan, expected results and benefits and enunci-
ation of a program coordinator as a liaison to the department of health.
  2. Agreement.  After receipt of an application pursuant to subdivision
one of this section, the commissioner of  health  shall  enter  into  an
agreement with an applicant for a credit established in subdivision 22-a
of  section  210 and subsection (vv) of section 606 of the tax law.  The
agreement shall include, but not be limited to:
  (a) A requirement that such plan be maintained for the duration of the
tax credit.
  (b) A requirement that the  taxpayer  shall  annually  report  to  the
commissioner of health concerning the number of employees participating,
costs,  benefits,  results and any other information the commissioner of
health deems necessary to carry out the purposes of this act.
  (c) A non-compliance with agreement clause.  If  the  commissioner  of
health determines that a taxpayer who has received credit is not comply-
ing with the tax credit agreement, such commissioner shall, after giving
the  taxpayer an opportunity to remedy non-compliance, terminate the tax
credit.
  (d) Requirements that specify that the credit can only be  applied  to
qualified employees.  The credit shall not apply to independent contrac-
tors of the taxpayer.
  3.  Requirements.  Tax credits shall be awarded by the commissioner of
health on a competitive basis in writing within 45 days.    Requirements
for consideration shall include, but not be limited to:
  (a) A requirement that priority shall be given to small businesses.
  (b) A requirement that priority shall be given to new programs.
  (c)  Tax credits shall be awarded on a competitive basis.  The commis-
sioner of health shall award tax credits on the basis of the strength of
the applicants' proposals, as well as the goal of ensuring that wellness
and preventive health care programs are distributed across the state.
  4. Definitions.  For the purposes of this section:
  (a) "Independent contractor" shall mean an employee who does not  work
directly under the auspices and purview of the business applying for the
credit established in this act.

S. 2862                             3

  (b) "New program" shall mean a program in a business that did not have
an existing wellness program prior to the effective date of this act.
  (c)  "Qualified  employee" shall mean an individual, excluding general
executive officers, in the case of a corporation, employed for at  least
35  hours  per week and for at least one-half of the taxable year.  Such
employee shall reside in New York state or work in New  York  state  but
reside outside the state and shall not be an independent contractor.
  (d)  "Small  businesses" shall mean any corporation, limited liability
company or partnership having 100 or less employees.
  (e) "Taxpayer" means any corporation or any partnership doing business
for profit within the state of New York subject to  tax  under  the  tax
law.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
22-a to read as follows:
  22-A.  OCCUPATIONAL WELLNESS CREDIT. (A) GENERAL.  A TAXPAYER SHALL BE
ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED IN THIS SUBDIVISION,
AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR PROVIDING  AN  OCCUPATIONAL
WELLNESS PROGRAM TO ITS EMPLOYEES.
  (B)  OCCUPATIONAL  WELLNESS PROGRAM.  AN OCCUPATIONAL WELLNESS PROGRAM
IS A COORDINATED AND SYSTEMATIC ORGANIZATIONAL ENDEAVOR WHICH  HELPS  TO
PROMOTE GOOD HEALTH, HELPS TO PREVENT OR MITIGATE ACUTE OR CHRONIC SICK-
NESS  OR  DISEASE AND MINIMIZES ADVERSE HEALTH CONSEQUENCES DUE TO LIFE-
STYLE. AN OCCUPATIONAL WELLNESS PROGRAM SHALL  INCLUDE  RELEVANT  COMPO-
NENTS,  AS  DETERMINED  BY  THE DEPARTMENT OF HEALTH, INCLUDING, BUT NOT
LIMITED TO:
  (I) PROVIDING INFORMATION AND GUIDANCE ON SUBJECTS INCLUDING, BUT  NOT
LIMITED  TO,  PERSONAL  AND  FAMILY HEALTH, HEALTH EDUCATION, NUTRITION,
PHYSICAL ACTIVITY, PREVENTIVE HEALTH CARE,  STRESS  MANAGEMENT,  SMOKING
CESSATION,  ANGER  MANAGEMENT, CONFLICT MANAGEMENT, ANXIETY, DEPRESSION,
SLEEP DISORDERS, MOOD DISORDERS, LIFESTYLE PATTERNS, HEALTHY FOOD CHOIC-
ES, OBESITY, SUBSTANCE ABUSE AND WEIGHT LOSS;
  (II) ASSESSING EMPLOYEE HEALTH LEVELS, INCLUDING, BUT NOT LIMITED  TO,
BIOMETRICS  TESTING, HEALTH SCREENING TESTS, QUESTIONNAIRES AND CLINICAL
TESTING;
  (III) ENCOURAGING OR PROVIDING  INSTRUCTION  IN  AND  OPPORTUNITY  FOR
FITNESS  ENHANCEMENT  ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, AEROBIC
EXERCISE, WEIGHT BEARING EXERCISE, YOGA, PILATES, MUSCLE  STRETCHING  OR
MARTIAL ARTS;
  (IV)  ENCOURAGING  OR PROVIDING INCENTIVES FOR EMPLOYEES WHO REGULARLY
ENGAGE IN PHYSICAL ACTIVITY AND PREVENTIVE HEALTH CARE,  INCLUDING,  BUT
NOT  LIMITED TO, HEALTH SCREENINGS OR MEMBERSHIPS WITH A FITNESS CENTER;
OR
  (V) PROVIDING AN EMPLOYEE ASSISTANCE PROGRAM (EAP).   FOR THE  PURPOSE
OF THIS SUBPARAGRAPH, "EMPLOYEE ASSISTANCE PROGRAM" SHALL MEAN A PROGRAM
WHICH  INCLUDES EARLY INTERVENTION STRATEGY AND COUNSELING FOR BOTH WORK
AND PERSONAL PROBLEMS.   AN  EMPLOYEE  ASSISTANCE  PROGRAM  SHALL  OFFER
PROGRAMS INCLUDING, BUT NOT LIMITED TO, COUNSELING TO EMPLOYEES WHO NEED
HELP  WITH  ISSUES  RELATED  TO DRUGS, ALCOHOL, FINANCES, STRESS, FAMILY
PROBLEMS AND OTHER PERSONAL PROBLEMS.
  (C) AMOUNT OF CREDIT.  A CREDIT SHALL BE ALLOWED  FOR  THE  AMOUNT  OF
EXPENDITURES  FOR  OCCUPATIONAL  WELLNESS  INCURRED BY AN EMPLOYER.  THE
AMOUNT OF CREDIT SHALL NOT EXCEED ONE HUNDRED DOLLARS PER  EMPLOYEE  FOR
WHOM  SUCH  PROGRAMS HAVE BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH
SUCH EXPENDITURES WERE MADE AND SHALL NOT EXCEED  ONE  HUNDRED  THOUSAND
DOLLARS  PER  EMPLOYER PER TAXABLE YEAR.  TAXPAYERS SHALL BE REQUIRED TO
REAPPLY FOR THE CREDIT ESTABLISHED BY  THIS  SUBDIVISION  ON  AN  ANNUAL

S. 2862                             4

BASIS.  THE  DEPARTMENT OF HEALTH SHALL ESTABLISH THE CRITERIA FOR WHICH
TAXPAYERS SHALL RECEIVE  SUCH  CREDIT.  THE  DEPARTMENT  OF  HEALTH  MAY
CONTRACT  WITH  INDEPENDENT  ORGANIZATIONS TO DEVELOP CRITERIA FOR WHICH
TAXPAYERS  SHALL RECEIVE SUCH CREDIT. THE AMOUNT OF CREDIT ISSUED TO ALL
TAXPAYERS COMBINED  UNDER  THIS  SUBDIVISION  SHALL  NOT  EXCEED  TWENTY
MILLION  DOLLARS  ANNUALLY.  FUNDS  NOT  DISPERSED IN A GIVEN YEAR SHALL
CARRY OVER TO THE NEXT YEAR.
  (D) CARRYOVER.   THE CREDIT ALLOWED UNDER  THIS  SUBDIVISION  FOR  ANY
TAXABLE 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 NOT BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY  NOT  BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  4. 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) OCCUPATIONAL WELLNESS            AMOUNT OF CREDIT UNDER
CREDIT UNDER                            SUBDIVISION TWENTY-TWO-A
SUBSECTION (VV)                         OF SECTION TWO HUNDRED
                                        TEN
  S  5. Section 606 of the tax law is amended by adding a new subsection
(vv) to read as follows:
  (VV) OCCUPATIONAL WELLNESS CREDIT. (1) GENERAL. A  TAXPAYER  SHALL  BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE  TAX IMPOSED BY THIS ARTICLE, FOR PROVIDING AN OCCUPATIONAL WELLNESS
PROGRAM TO ITS EMPLOYEES.
  (2) OCCUPATIONAL WELLNESS PROGRAM. AN OCCUPATIONAL WELLNESS PROGRAM IS
A COORDINATED AND SYSTEMATIC  ORGANIZATIONAL  ENDEAVOR  WHICH  HELPS  TO
PROMOTE GOOD HEALTH, HELPS TO PREVENT OR MITIGATE ACUTE OR CHRONIC SICK-
NESS  OR DISEASE, AND MINIMIZES ADVERSE HEALTH CONSEQUENCES DUE TO LIFE-
STYLE. AN OCCUPATIONAL WELLNESS PROGRAM SHALL  INCLUDE  RELEVANT  COMPO-
NENTS,  AS  DETERMINED  BY  THE DEPARTMENT OF HEALTH, INCLUDING, BUT NOT
LIMITED TO:
  (A) PROVIDING INFORMATION AND GUIDANCE ON SUBJECTS INCLUDING, BUT  NOT
LIMITED  TO,  RELATING  TO PERSONAL AND FAMILY HEALTH, HEALTH EDUCATION,
NUTRITION, PHYSICAL ACTIVITY, PREVENTIVE HEALTH CARE, STRESS MANAGEMENT,
SMOKING  CESSATION,  ANGER  MANAGEMENT,  CONFLICT  MANAGEMENT,  ANXIETY,
DEPRESSION, SLEEP DISORDERS, MOOD DISORDERS, LIFESTYLE PATTERNS, HEALTHY
FOOD CHOICES, OBESITY, SUBSTANCE ABUSE AND WEIGHT LOSS;
  (B)  ASSESSING AND TARGETING PROGRAMS ADDRESSING EMPLOYEE HEALTH RISKS
AND NEEDS, INCLUDING, BUT NOT LIMITED  TO,  BIOMETRICS  TESTING,  HEALTH
SCREENING TESTS, QUESTIONNAIRES AND CLINICAL TESTING;
  (C)  ENCOURAGING  OR  PROVIDING  INSTRUCTION  IN  AND  OPPORTUNITY FOR
FITNESS ENHANCEMENT ACTIVITIES, INCLUDING, BUT NOT LIMITED  TO,  AEROBIC
EXERCISE,  WEIGHT  BEARING EXERCISE, YOGA, PILATES, MUSCLE STRETCHING OR
MARTIAL ARTS;
  (D) ENCOURAGING OR PROVIDING INCENTIVES FOR  EMPLOYEES  WHO  REGULARLY
ENGAGE  IN  PHYSICAL ACTIVITY AND PREVENTIVE HEALTH CARE, INCLUDING, BUT
NOT LIMITED TO, HEALTH SCREENINGS OR MEMBERSHIP WITH A  FITNESS  CENTER;
OR
  (E) PROVIDES AN EMPLOYEE ASSISTANCE PROGRAM (EAP).  FOR THE PURPOSE OF
THIS  SUBPARAGRAPH,  "EMPLOYEE  ASSISTANCE PROGRAM" SHALL MEAN A PROGRAM
WHICH INCLUDES EARLY INTERVENTION STRATEGY AND COUNSELING FOR BOTH  WORK

S. 2862                             5

AND  PERSONAL  PROBLEMS.    AN  EMPLOYEE  ASSISTANCE PROGRAM SHALL OFFER
PROGRAMS INCLUDING, BUT NOT LIMITED TO, COUNSELING TO EMPLOYEES WHO NEED
HELP WITH ISSUES RELATED TO DRUGS,  ALCOHOL,  FINANCES,  STRESS,  FAMILY
PROBLEMS AND OTHER PERSONAL PROBLEMS.
  (3)  AMOUNT  OF  CREDIT.  A  CREDIT SHALL BE ALLOWED FOR THE AMOUNT OF
EXPENDITURES FOR OCCUPATIONAL WELLNESS  INCURRED  BY  AN  EMPLOYER.  THE
AMOUNT  OF  CREDIT SHALL NOT EXCEED ONE HUNDRED DOLLARS PER EMPLOYEE FOR
WHOM SUCH PROGRAMS HAVE BEEN PROVIDED DURING THE TAXABLE YEAR  IN  WHICH
SUCH  EXPENDITURES  WERE  MADE AND SHALL NOT EXCEED ONE HUNDRED THOUSAND
DOLLARS PER EMPLOYER PER TAXABLE YEAR.  TAXPAYERS SHALL BE  REQUIRED  TO
REAPPLY  FOR  THE  CREDIT  ESTABLISHED  BY  THIS SUBSECTION ON AN ANNUAL
BASIS. THE DEPARTMENT OF HEALTH SHALL ESTABLISH THE CRITERIA  FOR  WHICH
TAXPAYERS  SHALL  RECEIVE  SUCH  CREDIT.  THE  DEPARTMENT  OF HEALTH MAY
CONTRACT WITH INDEPENDENT ORGANIZATIONS TO DEVELOP  CRITERIA  FOR  WHICH
TAXPAYERS SHALL RECEIVE SUCH CREDIT.  THE AMOUNT OF CREDIT ISSUED TO ALL
TAXPAYERS COMBINED UNDER THIS SUBSECTION SHALL NOT EXCEED TWENTY MILLION
DOLLARS ANNUALLY. FUNDS NOT DISPERSED IN A GIVEN FISCAL YEAR SHALL CARRY
OVER TO THE NEXT FISCAL YEAR.
  (4) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR  ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH TAX YEAR,
THE EXCESS MAY NOT BE CARRIED OVER TO THE FOLLOWING YEAR OR  YEARS,  AND
MAY NOT BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S  6. Additional funding.  In addition to state funds appropriated for
programs under this act, the commissioner of health  may  accept  grants
from  public or private sources for the program established by this act.
The commissioner of health may contract with  independent  organizations
to develop criteria regarding occupational wellness programs.
  S 7. Reporting requirement. The commissioner of health shall submit an
annual  report  to  the governor, the temporary president of the senate,
and the speaker of the assembly. Such report shall include an evaluation
of how the occupational wellness programs  and  credits  established  by
this  act  are  functioning  and whether this act has been successful in
getting more businesses to create occupational wellness programs.
  S 8. This act shall take effect immediately and shall apply to taxable
years beginning on and after the first of January  next  succeeding  the
date  on  which it shall have become a law; provided that the provisions
of this act shall expire and be  deemed  repealed  5  years  after  such
effective date.

2013-S2862A (ACTIVE) - Details

Current Committee:: Senate Investigations And Government Operations
Law Section:: Tax Law
Laws Affected:: Amd §§210 & 606, Tax L
Versions Introduced in 2011-2012 Legislative Session:: S4154

2013-S2862A (ACTIVE) - Summary

2013-S2862A (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2862A

TITLE OF BILL:  An act to amend the tax law, in relation to providing
an occupational wellness tax credit for businesses; and providing for
the repeal of such provisions upon expiration thereof

PURPOSE:  in the interest of the health and well being of individuals,
and the collectivity of New York State as a whole, this legislation
will grant qualified employers, that provide occupational wellness
programs to their employees, a tax credit of up to $200 per year, per
employee.

SUMMARY OF PROVISIONS:

Section 1-- Details the legislative findings and intent relative to
the value and benefit of occupational wellness programs to the overall
health and well-being of individual employees and to the associated
business or corporate enterprise offering such programs.

Section 2-- Details the application process, criteria and requirements
pertaining to the prospective agreement between the Department of
Health (hereinafter, the Department) and an applicant for an
occupational wellness tax credit. Among other provisions, this section
provides that the applicant applying for credit submit a detailed
application to the Department, outlining the occupational wellness
plan to be implemented including information relative to goals, costs,

and expected results and benefits of the program.  Requirements
pertaining to the agreement for a tax credit between the Commissioner
of the Department and the applicant are enumerated, including a
maintenance of plan clause, a detailed reporting mechanism, a
non-compliance with agreement clause, and limitation of the credit
application to "qualified employees." This section further provides
that the Commissioner of the Department award tax credits on a
competitive basis, in writing, within. 45 days of receiving an
application. Requirements for application approval are provided,
including a priority to small businesses in the amount of $10 Million
in dedicated funding, a preference for "new programs," weighing the
strength of the application and ensuring geographical diversity.

Section 3-- Amends Section 210 of the tax law by adding a new
subdivision 22a, that establishes the occupational wellness tax
credit. This section formally allows "taxpayers" a tax credit for
providing an occupational wellness program to their employees. This
section spells out the range of activities that fall under the
definition of an occupational wellness program, that will qualify for
the tax credit associated thereto. Specifically, this section provides
that the Department shall determine the relevant components of an
occupational wellness program, including, but not limited to provision
of health and lifestyle education and information, conduction of
health screenings and clinical testing, encouragement of fitness
enhancement opportunities, and provision of a formal Employee
Assistance Program. This section further provides that the amount of
credit to be allowed to a singular "taxpayer" for a given year shall
not exceed two hundred dollars per employee, capped at an absolute
maximum of ten thousand dollars per employer. The amount of credit
issued to all "taxpayers" under this subdivision shall not exceed
twenty million dollars annually.


Section 4-- Amends section 606 of the tax law by adding a new
subsection (numbered hh) that will compute the amount of the
occupational wellness tax credit, under subdivision 22-a of Section
210 of the tax law.

Section 5-- Establishes the same exact provisions in Section 606 of
the tax law as provided for in Section 3 of the instant bill, amending
Section 210 of the tax law. For more elucidation, see Section 3 above,

Section 6-- Clarifies that in addition to state funds appropriated for
Program purposes under this act, the Commissioner of the Department
may accept grants from public or private sources to further the ends
of the occupational wellness tax credit program. Allows the
Commissioner of the Department to contract with independent
organizations relative to the development of criteria for occupational
wellness programs.

Section 7-- Requires the Commissioner of the Department to submit an
annual report, concerning the occupational wellness program, to the
Governor, Temporary President of the Senate and the Speaker of the
Assembly.

Section 8-- Establishes the effective date of this act and provides a
five year sunset provision.

JUSTIFICATION:  Spiraling health care costs are a penultimate issue
facing our state.  Employers continually worry as the cost of
providing health care increases to unprecedented levels. Chronic
diseases, many of which can be ameliorated, if not prevented, by diet
and exercise, result in disability and premature death. The average
per capita spending on health care increased 99% between 1990 and
2002. In 2001, premiums for employer-sponsored health insurance
increased by 11.0%. For reasons related to the fiscal, as well as
physical well-being of New York State, the legislature must take an
interest in and play an active role in keeping its workforce healthy.

Almost every American is adversely affected by chronic disease in one
way or another--through the death of a loved one; a family member's
struggle with lifelong illness, disability, or compromised quality of
life; or the huge personal and societal financial toll wrought by
chronic disease. More than 1.7 million Americans die of a chronic
disease each year. The five chronic diseases are heart disease,
stroke, diabetes, cancer, and chronic pulmonary diseases such as
asthma, bronchitis and emphysema. One million Americans can no longer
perform daily tasks, such as walking or bathing, without help due to a
stroke. Expenditures for health care have continued to rise. Much of
these costs can be attributed to the diagnosis and treatment of
chronic diseases and conditions such as diabetes, obesity;
cardiovascular disease and asthma.  Although chronic diseases are
among the most common and costly of all health problems, they are also
among the most preventable. Many of the disease conditions responsible
for skyrocketing expenditures can be traced back to modifiable risk
factors. Individual behavior and lifestyle choices influence the
development and course of these chronic conditions. Unhealthy
behaviors, such as poor diet, lack of physical activity, and tobacco
and alcohol use are risk factors for many chronic conditions. For
example, overweight and obesity are risk factors for type 2 diabetes,


congestive heart failure, stroke, and hypertension. Encouraging
individuals to adopt healthy habits and have health screenings may
reduce the burden of chronic disease.  Society and employers are
increasingly designing programs to promote healthy behaviors.
Companies are increasingly spending enormous amounts of money on
health care and productivity when you start adding up the medical
dollars, absenteeism, disability, workers compensation, and safety
issues. Large employers such as Johnson & Johnson {J & J) and DuPont
Corporation, among others, have reported the effectiveness of their
occupational health promotion programs.  Human capital is an
employer's greatest investment toward business success. An
occupational wellness program benefits employers by improving morale,
reducing turnover, reducing absenteeism due to illness and injury, and
decrease health insurance costs. J & J calculated a $225 per employee,
per year savings in health care expenditures due to lower utilization
of health care services. Furthermore, J J saw results within three
years. Other big companies such as Citibank, Steelcase Corporation of
Michigan, United Airlines, Travelers Corporation, Motorola and DuPont
all reported returns of $1.42-$16 for every dollar spent on employee
wellness programs.

When companies promote wellness and healthy living to their employees,
they can save on health care costs and reduce absenteeism. Studies
demonstrate that the health of employees impacts a business's bottom
line by helping companies reduce health care costs an average of $3.72
for each dollar invested. In addition, companies average $5.06 in
reduced absenteeism fox each dollar invested in a wellness program.
These programs save companies money, boost productivity, and motivate
employees.

A healthy employee with few health risks spends less money on medical
care due to fewer chronic illnesses and avoidance of serious health
incidents. On the other hand, poor health leads to symptoms and
clinical outcomes that lower functionality and increase the need for
expensive medical care. Absences from work leads to lost productivity,
whereas healthy workers get the job done better, faster, and cheaper.
Therefore, healthy employees not only cost less in medical care, they
also are more functional at work, absent less often, experience fewer
injuries, and return to work more quickly after illness or injury.

This bill would encourage employers to create occupational work and
wellness programs by allowing tax credits for establishing such
programs. A model program would include formal training as a component
of job related instruction which provides information on subjects
relating to personal and family health, assess employee health levels,
encourages opportunities for employees' fitness-related activities,
and provides incentives for employees who regularly engage in physical
activity.

Despite the evidence that prevention works, the focus in our health
care system over the past century has not been on prevention of
chronic disease, but on treatment of short-term, acute health
problems. As a nation, we have emphasized expensive cures for disease
rather than cost effective prevention.

With an employer-based health program that embraces prevention and
healthy behavior, we can become a healthier nation. Evidence indicates


that with education and social support, people can and will take
charge of their health. The state must therefore support initiatives
that focus on individual responsibility and behavior change related to
health.

If we are serious about improving the health and quality of life of
Americans, while lowering health care costs in the long term, we
cannot afford to ignore the power of prevention.

LEGISLATIVE HISTORY:  Senate 3835 of 2005-2006; Referred to Committee.
Senate 2595 of 2007-2008; referred to Investigations and Government
Operations Senate 4154 of 2011-2012; referred to Investigations and
Government Operations

FISCAL IMPLICATIONS:  Short-term, to be determined; Long-term,
beneficial savings to the State.

LOCAL FISCAL IMPLICATIONS:  None specifically noted, at present.

EFFECTIVE DATE: Immediately.

2013-S2862A (ACTIVE) - Bill Text download pdf

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

                                 2862--A

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                            January 24, 2013
                               ___________

Introduced  by  Sen.  SMITH  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Investigations and Govern-
  ment Operations -- recommitted to the Committee on Investigations  and
  Government  Operations  in  accordance  with  Senate Rule 6, sec. 8 --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend the tax law, in relation to providing an occupational
  wellness tax credit for businesses; and providing for  the  repeal  of
  such provisions upon expiration thereof

  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  hereby
finds  that  healthier  employees  experience  less absenteeism, greater
productivity, better mental performance, and increased job satisfaction,
performance and morale.
  The legislature  hereby  finds  that  occupational  wellness  programs
directly prevent the leading causes of premature death and disability in
the  United  States. Furthermore, the vital importance of this issue was
recently crystallized by the United States Centers for  Disease  Control
and  Prevention  (CDC)  who  earmarked $14 million to study occupational
wellness programs.
  The legislature hereby finds that there is a significant state  inter-
est  in encouraging a proactive approach to preventing illness and inju-
ry, as opposed to the traditional reactive, sick-care method. A reorien-
tation of our systematic approach  to  health  care  is  exemplified  by
United  States  Senate  Bill 2558, the Healthy Lifestyles and Prevention
(HeLP) America Act of 2004 and New York  State  Senate  Bill  5774-A  of
1999-2000, The Wellness and Preventative Health Care Program.
  The  legislature  hereby finds that individual studies and evaluations
of wellness programs have concluded that such endeavors have dual, rein-
forcing, and parallel benefits. In the first  instance,  employees  have

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD07238-02-4

S. 2862--A                          2

become  more fit, reduced obesity, lessened stress levels, quit smoking,
and achieved other propitious outcomes. Secondarily,  wellness  programs
have  increased  overall  productivity,  economic viability, and reduced
health care costs.
  The  legislature  hereby  finds  that encouragement of a healthy life-
style, while accruing  concrete  benefits  to  employees  and  employers
alike,  in the final analysis -- empowers individuals, strengthens fami-
lies, and promotes a greater quality of life.
  The legislature intends to ensconce the ethic of a  healthy  workforce
into  the fabric of our personal and professional lives, while realizing
the tertiary benefits of savings on insurance premiums as the result  of
reducing  the  number  and  instance  of  health  insurance and workers'
compensation claims filed by employees.
  S 2. Agreement for tax credits;  application,  criteria  and  require-
ments.  1.    Application criteria.   (a) The department of health shall
promulgate an application form for  taxpayers  to  apply  for  a  credit
established  in  subdivision  22-a of section 210 and subsection (xx) of
section 606 of the tax law.   The application  form  shall  include  all
relevant information deemed necessary by the commissioner of health.
  (b)  Application.   An application submitted in writing to the commis-
sioner of health shall include a detailed description  of  the  wellness
plan  to  be  implemented.    Such description shall include, but not be
limited to, the purpose of the plan, target goals,  type  or  nature  of
plan,  estimated cost of plan, expected results and benefits and enunci-
ation of a program coordinator as a liaison to the department of health.
  2. Agreement.  After receipt of an application pursuant to subdivision
one of this section, the commissioner of  health  shall  enter  into  an
agreement with an applicant for a credit established in subdivision 22-a
of  section  210 and subsection (xx) of section 606 of the tax law.  The
agreement shall include, but not be limited to:
  (a) A requirement that such plan be maintained for the duration of the
tax credit.
  (b) A requirement that the  taxpayer  shall  annually  report  to  the
commissioner of health concerning the number of employees participating,
costs,  benefits,  results and any other information the commissioner of
health deems necessary to carry out the purposes of this act.
  (c) A non-compliance with agreement clause.  If  the  commissioner  of
health determines that a taxpayer who has received credit is not comply-
ing with the tax credit agreement, such commissioner shall, after giving
the  taxpayer an opportunity to remedy non-compliance, terminate the tax
credit.
  (d) Requirements that specify that the credit can only be  applied  to
qualified employees.  The credit shall not apply to independent contrac-
tors of the taxpayer.
  3.  Requirements.  Tax credits shall be awarded by the commissioner of
health on a competitive basis in writing within 45 days.    Requirements
for consideration shall include, but not be limited to:
  (a) A requirement that priority shall be given to small businesses.
  (b) A requirement that priority shall be given to new programs.
  (c)  Tax credits shall be awarded on a competitive basis.  The commis-
sioner of health shall award tax credits on the basis of the strength of
the applicants' proposals, as well as the goal of ensuring that wellness
and preventive health care programs are distributed across the state.
  4. Definitions.  For the purposes of this section:

S. 2862--A                          3

  (a) "Independent contractor" shall mean an employee who does not  work
directly under the auspices and purview of the business applying for the
credit established in this act.
  (b) "New program" shall mean a program in a business that did not have
an existing wellness program prior to the effective date of this act.
  (c)  "Qualified  employee" shall mean an individual, excluding general
executive officers, in the case of a corporation, employed for at  least
35  hours  per week and for at least one-half of the taxable year.  Such
employee shall reside in New York state or work in New  York  state  but
reside outside the state and shall not be an independent contractor.
  (d)  "Small  businesses" shall mean any corporation, limited liability
company or partnership having 100 or less employees.
  (e) "Taxpayer" means any corporation or any partnership doing business
for profit within the state of New York subject to  tax  under  the  tax
law.
  S 3. Section 210 of the tax law is amended by adding a new subdivision
22-a to read as follows:
  22-A.  OCCUPATIONAL WELLNESS CREDIT. (A) GENERAL.  A TAXPAYER SHALL BE
ALLOWED  A  CREDIT,  TO  BE  COMPUTED  AS  PROVIDED IN THIS SUBDIVISION,
AGAINST THE TAX IMPOSED BY THIS ARTICLE, FOR PROVIDING  AN  OCCUPATIONAL
WELLNESS PROGRAM TO ITS EMPLOYEES.
  (B)  OCCUPATIONAL  WELLNESS PROGRAM.  AN OCCUPATIONAL WELLNESS PROGRAM
IS A COORDINATED AND SYSTEMATIC ORGANIZATIONAL ENDEAVOR WHICH  HELPS  TO
PROMOTE GOOD HEALTH, HELPS TO PREVENT OR MITIGATE ACUTE OR CHRONIC SICK-
NESS  OR  DISEASE AND MINIMIZES ADVERSE HEALTH CONSEQUENCES DUE TO LIFE-
STYLE. AN OCCUPATIONAL WELLNESS PROGRAM SHALL  INCLUDE  RELEVANT  COMPO-
NENTS,  AS  DETERMINED  BY  THE DEPARTMENT OF HEALTH, INCLUDING, BUT NOT
LIMITED TO:
  (I) PROVIDING INFORMATION AND GUIDANCE ON SUBJECTS INCLUDING, BUT  NOT
LIMITED  TO,  PERSONAL  AND  FAMILY HEALTH, HEALTH EDUCATION, NUTRITION,
PHYSICAL ACTIVITY, PREVENTIVE HEALTH CARE,  STRESS  MANAGEMENT,  SMOKING
CESSATION,  ANGER  MANAGEMENT, CONFLICT MANAGEMENT, ANXIETY, DEPRESSION,
SLEEP DISORDERS, MOOD DISORDERS, LIFESTYLE PATTERNS, HEALTHY FOOD CHOIC-
ES, OBESITY, SUBSTANCE ABUSE AND WEIGHT LOSS;
  (II) ASSESSING EMPLOYEE HEALTH LEVELS, INCLUDING, BUT NOT LIMITED  TO,
BIOMETRICS  TESTING, HEALTH SCREENING TESTS, QUESTIONNAIRES AND CLINICAL
TESTING;
  (III) ENCOURAGING OR PROVIDING  INSTRUCTION  IN  AND  OPPORTUNITY  FOR
FITNESS  ENHANCEMENT  ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, AEROBIC
EXERCISE, WEIGHT BEARING EXERCISE, YOGA, PILATES, MUSCLE  STRETCHING  OR
MARTIAL ARTS;
  (IV)  ENCOURAGING  OR PROVIDING INCENTIVES FOR EMPLOYEES WHO REGULARLY
ENGAGE IN PHYSICAL ACTIVITY AND PREVENTIVE HEALTH CARE,  INCLUDING,  BUT
NOT  LIMITED TO, HEALTH SCREENINGS OR MEMBERSHIPS WITH A FITNESS CENTER;
OR
  (V) PROVIDING AN EMPLOYEE ASSISTANCE PROGRAM (EAP).   FOR THE  PURPOSE
OF THIS SUBPARAGRAPH, "EMPLOYEE ASSISTANCE PROGRAM" SHALL MEAN A PROGRAM
WHICH  INCLUDES EARLY INTERVENTION STRATEGY AND COUNSELING FOR BOTH WORK
AND PERSONAL PROBLEMS.   AN  EMPLOYEE  ASSISTANCE  PROGRAM  SHALL  OFFER
PROGRAMS INCLUDING, BUT NOT LIMITED TO, COUNSELING TO EMPLOYEES WHO NEED
HELP  WITH  ISSUES  RELATED  TO DRUGS, ALCOHOL, FINANCES, STRESS, FAMILY
PROBLEMS AND OTHER PERSONAL PROBLEMS.
  (C) AMOUNT OF CREDIT.  A CREDIT SHALL BE ALLOWED  FOR  THE  AMOUNT  OF
EXPENDITURES  FOR  OCCUPATIONAL  WELLNESS  INCURRED BY AN EMPLOYER.  THE
AMOUNT OF CREDIT SHALL NOT EXCEED ONE HUNDRED DOLLARS PER  EMPLOYEE  FOR
WHOM  SUCH  PROGRAMS HAVE BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH

S. 2862--A                          4

SUCH EXPENDITURES WERE MADE AND SHALL NOT EXCEED  ONE  HUNDRED  THOUSAND
DOLLARS  PER  EMPLOYER PER TAXABLE YEAR.  TAXPAYERS SHALL BE REQUIRED TO
REAPPLY FOR THE CREDIT ESTABLISHED BY  THIS  SUBDIVISION  ON  AN  ANNUAL
BASIS.  THE  DEPARTMENT OF HEALTH SHALL ESTABLISH THE CRITERIA FOR WHICH
TAXPAYERS SHALL RECEIVE  SUCH  CREDIT.  THE  DEPARTMENT  OF  HEALTH  MAY
CONTRACT  WITH  INDEPENDENT  ORGANIZATIONS TO DEVELOP CRITERIA FOR WHICH
TAXPAYERS SHALL RECEIVE SUCH CREDIT. THE AMOUNT OF CREDIT ISSUED TO  ALL
TAXPAYERS  COMBINED  UNDER  THIS  SUBDIVISION  SHALL  NOT  EXCEED TWENTY
MILLION DOLLARS ANNUALLY. FUNDS NOT DISPERSED  IN  A  GIVEN  YEAR  SHALL
CARRY OVER TO THE NEXT YEAR.
  (D)  CARRYOVER.    THE  CREDIT  ALLOWED UNDER THIS SUBDIVISION FOR ANY
TAXABLE 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  NOT  BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND MAY NOT BE
DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 4. Subparagraph (B) of paragraph 1 of subsection (i) of section  606
of  the  tax  law  is  amended by adding a new clause (xxxvi) to read as
follows:

(XXXVI) OCCUPATIONAL WELLNESS           AMOUNT OF CREDIT UNDER
CREDIT UNDER                            SUBDIVISION TWENTY-TWO-A
SUBSECTION (XX)                         OF SECTION TWO HUNDRED
                                        TEN
  S 5. Section 606 of the tax law is amended by adding a new  subsection
(xx) to read as follows:
  (XX)  OCCUPATIONAL  WELLNESS  CREDIT. (1) GENERAL. A TAXPAYER SHALL BE
ALLOWED A CREDIT, TO BE COMPUTED AS PROVIDED IN THIS SUBSECTION, AGAINST
THE TAX IMPOSED BY THIS ARTICLE, FOR PROVIDING AN OCCUPATIONAL  WELLNESS
PROGRAM TO ITS EMPLOYEES.
  (2) OCCUPATIONAL WELLNESS PROGRAM. AN OCCUPATIONAL WELLNESS PROGRAM IS
A  COORDINATED  AND  SYSTEMATIC  ORGANIZATIONAL  ENDEAVOR WHICH HELPS TO
PROMOTE GOOD HEALTH, HELPS TO PREVENT OR MITIGATE ACUTE OR CHRONIC SICK-
NESS OR DISEASE, AND MINIMIZES ADVERSE HEALTH CONSEQUENCES DUE TO  LIFE-
STYLE.  AN  OCCUPATIONAL  WELLNESS PROGRAM SHALL INCLUDE RELEVANT COMPO-
NENTS, AS DETERMINED BY THE DEPARTMENT OF  HEALTH,  INCLUDING,  BUT  NOT
LIMITED TO:
  (A)  PROVIDING INFORMATION AND GUIDANCE ON SUBJECTS INCLUDING, BUT NOT
LIMITED TO, RELATING TO PERSONAL AND FAMILY  HEALTH,  HEALTH  EDUCATION,
NUTRITION, PHYSICAL ACTIVITY, PREVENTIVE HEALTH CARE, STRESS MANAGEMENT,
SMOKING  CESSATION,  ANGER  MANAGEMENT,  CONFLICT  MANAGEMENT,  ANXIETY,
DEPRESSION, SLEEP DISORDERS, MOOD DISORDERS, LIFESTYLE PATTERNS, HEALTHY
FOOD CHOICES, OBESITY, SUBSTANCE ABUSE AND WEIGHT LOSS;
  (B) ASSESSING AND TARGETING PROGRAMS ADDRESSING EMPLOYEE HEALTH  RISKS
AND  NEEDS,  INCLUDING,  BUT  NOT LIMITED TO, BIOMETRICS TESTING, HEALTH
SCREENING TESTS, QUESTIONNAIRES AND CLINICAL TESTING;
  (C) ENCOURAGING  OR  PROVIDING  INSTRUCTION  IN  AND  OPPORTUNITY  FOR
FITNESS  ENHANCEMENT  ACTIVITIES, INCLUDING, BUT NOT LIMITED TO, AEROBIC
EXERCISE, WEIGHT BEARING EXERCISE, YOGA, PILATES, MUSCLE  STRETCHING  OR
MARTIAL ARTS;
  (D)  ENCOURAGING  OR  PROVIDING INCENTIVES FOR EMPLOYEES WHO REGULARLY
ENGAGE IN PHYSICAL ACTIVITY AND PREVENTIVE HEALTH CARE,  INCLUDING,  BUT
NOT  LIMITED  TO, HEALTH SCREENINGS OR MEMBERSHIP WITH A FITNESS CENTER;
OR

S. 2862--A                          5

  (E) PROVIDES AN EMPLOYEE ASSISTANCE PROGRAM (EAP).  FOR THE PURPOSE OF
THIS SUBPARAGRAPH, "EMPLOYEE ASSISTANCE PROGRAM" SHALL  MEAN  A  PROGRAM
WHICH  INCLUDES EARLY INTERVENTION STRATEGY AND COUNSELING FOR BOTH WORK
AND PERSONAL PROBLEMS.   AN  EMPLOYEE  ASSISTANCE  PROGRAM  SHALL  OFFER
PROGRAMS INCLUDING, BUT NOT LIMITED TO, COUNSELING TO EMPLOYEES WHO NEED
HELP  WITH  ISSUES  RELATED  TO DRUGS, ALCOHOL, FINANCES, STRESS, FAMILY
PROBLEMS AND OTHER PERSONAL PROBLEMS.
  (3) AMOUNT OF CREDIT. A CREDIT SHALL BE  ALLOWED  FOR  THE  AMOUNT  OF
EXPENDITURES  FOR  OCCUPATIONAL  WELLNESS  INCURRED  BY AN EMPLOYER. THE
AMOUNT OF CREDIT SHALL NOT EXCEED ONE HUNDRED DOLLARS PER  EMPLOYEE  FOR
WHOM  SUCH  PROGRAMS HAVE BEEN PROVIDED DURING THE TAXABLE YEAR IN WHICH
SUCH EXPENDITURES WERE MADE AND SHALL NOT EXCEED  ONE  HUNDRED  THOUSAND
DOLLARS  PER  EMPLOYER PER TAXABLE YEAR.  TAXPAYERS SHALL BE REQUIRED TO
REAPPLY FOR THE CREDIT ESTABLISHED  BY  THIS  SUBSECTION  ON  AN  ANNUAL
BASIS.  THE  DEPARTMENT OF HEALTH SHALL ESTABLISH THE CRITERIA FOR WHICH
TAXPAYERS SHALL RECEIVE  SUCH  CREDIT.  THE  DEPARTMENT  OF  HEALTH  MAY
CONTRACT  WITH  INDEPENDENT  ORGANIZATIONS TO DEVELOP CRITERIA FOR WHICH
TAXPAYERS SHALL RECEIVE SUCH CREDIT.  THE AMOUNT OF CREDIT ISSUED TO ALL
TAXPAYERS COMBINED UNDER THIS SUBSECTION SHALL NOT EXCEED TWENTY MILLION
DOLLARS ANNUALLY. FUNDS NOT DISPERSED IN A GIVEN FISCAL YEAR SHALL CARRY
OVER TO THE NEXT FISCAL YEAR.
  (4) CARRYOVER. IF THE AMOUNT OF CREDIT ALLOWABLE UNDER THIS SUBSECTION
FOR ANY TAXABLE YEAR SHALL EXCEED THE TAXPAYER'S TAX FOR SUCH TAX  YEAR,
THE  EXCESS  MAY NOT BE CARRIED OVER TO THE FOLLOWING YEAR OR YEARS, AND
MAY NOT BE DEDUCTED FROM THE TAXPAYER'S TAX FOR SUCH YEAR OR YEARS.
  S 6. Additional funding.  In addition to state funds appropriated  for
programs  under  this  act, the commissioner of health may accept grants
from public or private sources for the program established by this  act.
The  commissioner  of health may contract with independent organizations
to develop criteria regarding occupational wellness programs.
  S 7. Reporting requirement. The commissioner of health shall submit an
annual report to the governor, the temporary president  of  the  senate,
and the speaker of the assembly. Such report shall include an evaluation
of  how  the  occupational  wellness programs and credits established by
this act are functioning and whether this act  has  been  successful  in
getting more businesses to create occupational wellness programs.
  S 8. This act shall take effect immediately and shall apply to taxable
years  beginning  on  and after the first of January next succeeding the
date on which it shall have become a law; provided that  the  provisions
of  this  act  shall  expire  and  be deemed repealed 5 years after such
effective date.

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Malcolm Smith

Archive: Last Bill Status - In Senate Committee Investigations And Government Operations Committee

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