S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3944
 
                        2017-2018 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 30, 2017
                                ___________
 
 Introduced by M. of A. QUART -- Multi-Sponsored by -- M. of A. BICHOTTE,
   PEOPLES-STOKES  -- read once and referred to the Committee on Agricul-
   ture
 
 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.
   § 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-
 TIONS  TO  SUPERMARKETS  DUE  TO  TRAVEL  DISTANCE, AS DETERMINED BY THE
 DEPARTMENT;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD04267-01-7
              

 A. 3944                             2
 
   (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.
   §  2. Section 210-B of the tax law is amended by adding a new subdivi-
 sion 49 to read as follows:

 A. 3944                             3
 
   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.
   § 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.
   § 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
 on  the  benefits  of  healthy eating and on the availability of healthy
 foods and beverages  in  the  local  community.  Such  public  awareness

 A. 3944                             4
 
 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, 2018.
   §  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, 2018.