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

                                  2359

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            January 18, 2011
                               ___________

Introduced by M. of A. GIBSON -- read once and referred to the Committee
  on Economic Development, Job Creation, Commerce and Industry

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
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.  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD06275-01-1

              

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59  of  the laws of 2006, is amended and a new paragraph (1) is added to
read as follows:
  (k)  Assistance  for  regional  partnership  proposals, as provided in
subdivision 12 of section 3154 of the public authorities law[.]; AND
  (1) 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) PARTICIPATES 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
43 to read as follows:
  43. 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 (L) 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 (xxxi) to read as
follows:
   (XXXI) RETAIL FOOD                     AMOUNT OF CREDIT

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   ESTABLISHMENT TAX CREDIT UNDER         UNDER SUBDIVISION
   SUBSECTION (K-1)                       FORTY-THREE 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  (1)  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 THE 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:
  1. that the urban development corporation shall be immediately author-
ized to take any and  all  actions  necessary  to  fully  implement  the
provision 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
  2. that the credit established by sections four, five and six of  this
act shall apply to taxable years beginning on or after January 1, 2011.