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.
