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

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.