Establishes the addiction prevention and recovery act of 2019; increases taxes on alcohol by fifty percent and allocates the increased revenue to a special fund to be used for the purposes of alcohol and substance abuse addiction prevention and recovery services and programs.
STATE OF NEW YORK
________________________________________________________________________
6349--A
2019-2020 Regular Sessions
IN ASSEMBLY
March 6, 2019
___________
Introduced by M. of A. DenDEKKER, PICHARDO, EPSTEIN, M. G. MILLER,
ARROYO, ROMEO, MOSLEY, DINOWITZ, D'URSO, SIMON, JAFFEE, REILLY, HEVE-
SI, ORTIZ, ASHBY, SALKA -- Multi-Sponsored by -- M. of A. COOK -- read
once and referred to the Committee on Ways and Means -- committee
discharged, bill amended, ordered reprinted as amended and recommitted
to said committee
AN ACT to amend the tax law and the state finance law, in relation to
enacting the addiction prevention and recovery act of 2019
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. This act shall be known and may be cited as the "addiction
2 prevention and recovery act of 2019".
3 § 2. Paragraphs (a), (b), (c), (d), (e) and (f) of subdivision 1 of
4 section 424 of the tax law, paragraphs (a), (b), (c) and (d) as amended
5 by section 1 of part X-1 of chapter 57 of the laws of 2009, paragraph
6 (e) as amended by chapter 190 of the laws of 1990 and paragraph (f) as
7 amended by chapter 508 of the laws of 1993, are amended and a new para-
8 graph (h) is added to read as follows:
9 (a) [Fourteen] Twenty-eight cents per gallon upon beers;
10 (b) [Thirty] Sixty cents per gallon upon still wines, except cider
11 containing more than three and two-tenths per centum of alcohol by
12 volume, upon which the tax shall be [three] seven and [seventy-nine]
13 fifty-eight hundredths cents per gallon;
14 (c) [Thirty] Sixty cents per gallon upon artificially carbonated spar-
15 kling wines, except artificially carbonated sparkling cider containing
16 more than three and two-tenths per centum of alcohol by volume, upon
17 which the tax shall be [three] seven and [seventy-nine] fifty-eight
18 hundredths cents per gallon;
19 (d) [Thirty] Sixty cents per gallon upon natural sparkling wines,
20 except natural sparkling cider containing more than three and two-tenths
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD09347-04-9
A. 6349--A 2
1 per centum of alcohol by volume, upon which the tax shall be [three]
2 seven and [seventy-nine] fifty-eight hundredths cents per gallon;
3 (e) [Sixty-seven] One dollar and thirty-four cents per liter upon
4 liquors containing not more than twenty-four per centum of alcohol by
5 volume except liquors containing not more than two per centum of alcohol
6 by volume, upon which the tax shall be [one cent] two cents per liter;
7 and
8 (f) [One dollar] Three dollars and [seventy] forty cents per liter
9 upon all other liquors; when sold or used within this state, except when
10 sold or used under such circumstances that this state is without power
11 to impose such tax or when sold to the United States and except beers
12 when sold to or by a voluntary unincorporated organization of the armed
13 forces of the United States operating a place for the sale of goods
14 pursuant to regulations promulgated by the appropriate executive agency
15 of the United States, to the extent provided in such regulations, direc-
16 tives and policy statements of such an agency applicable to such sales,
17 and except when sold to professional foreign consuls-general, consuls
18 and vice-consuls who are nationals of the state appointing them and who
19 are assigned to foreign consulates in this state, provided that American
20 consular officers of equal rank who are citizens of the United States
21 and who exercise their official functions at American consulates in such
22 foreign country are granted reciprocal exemptions; provided, however,
23 that the commissioner may permit the sale of alcohol without tax to a
24 holder of any industrial alcohol permit, alcohol permit or alcohol
25 distributor's permit, issued by the state liquor authority, and by the
26 holder of an alcohol distributor's permit, class A, issued by such
27 authority to a holder of a distiller's license, class B, or a winery
28 license, issued by such authority and may also permit the use of alcohol
29 for any purpose other than the production of alcoholic beverages by such
30 holders without tax; provided also that the commissioner may permit the
31 sale of cider without tax by a holder of a cider producer's license
32 issued by the state liquor authority to a holder of a cider producer's
33 license or a cider wholesaler's license issued by such authority.
34 (h) Notwithstanding any other provision of this article, half of all
35 taxes, interest, penalties and fees collected or received by the commis-
36 sioner from each gallon of beer, still wine, cider, artificially carbo-
37 nated sparkling wines, artificially carbonated sparkling cider, natural
38 sparkling wines, natural sparkling cider and from each liter of liquor
39 under paragraphs (a) through (f) of this subdivision shall be allocated
40 to the alcohol and substance abuse addiction prevention and recovery
41 fund established pursuant to section ninety-nine-ff of the state finance
42 law.
43 § 3. The state finance law is amended by adding a new section 99-ff to
44 read as follows:
45 § 99-ff. Alcohol and substance abuse addiction prevention and recovery
46 fund. 1. There is hereby established in the joint custody of the comp-
47 troller and the commissioner of taxation and finance a special fund to
48 be known as the "alcohol and substance abuse addiction prevention and
49 recovery fund".
50 2. (a) Such fund shall consist of all revenues received by the depart-
51 ment of taxation and finance, pursuant to the provisions of paragraph
52 (h) of subdivision one of section four hundred twenty-four of the tax
53 law, and all other moneys appropriated, credited or transferred thereto
54 from any other fund or source pursuant to law. Nothing contained in this
55 section shall prevent the state from receiving grants, gifts or bequests
A. 6349--A 3
1 for the purposes of the fund as defined in this section and depositing
2 them into the fund according to law.
3 (b) Monies expended from such fund shall be used to supplement and not
4 supplant any other funds which would otherwise have been expended for
5 alcohol and substance abuse addiction prevention or recovery. All such
6 funds shall be used to improve alcohol and substance abuse addiction
7 prevention and recovery services in the state. Nothing in this paragraph
8 shall preclude the state from decreasing funds as long as the state
9 demonstrates to the office of alcoholism and substance abuse services
10 that the quality of services has been maintained or enhanced notwith-
11 standing the use of state funds.
12 3. Monies of the fund shall be expended only for alcohol and substance
13 abuse addiction prevention and recovery. As used in this section, "alco-
14 hol and substance abuse addiction prevention and recovery" shall include
15 educational projects, including grants for alcohol and substance abuse
16 addiction education and prevention programs, and alcohol and substance
17 abuse addiction recovery services and programs which are approved by the
18 department of health.
19 4. Monies shall be payable from the fund on the audit and warrant of
20 the comptroller on vouchers approved and certified by the commissioner
21 of the office of alcoholism and substance abuse services, provided
22 however that fifty percent of the funds shall be expended on alcohol and
23 substance abuse addiction prevention and fifty percent of the funds
24 shall be expended on alcohol and substance abuse addiction recovery
25 services and programs.
26 5. To the extent practicable, the commissioner of the office of alco-
27 holism and substance abuse services shall ensure that all monies
28 received during a fiscal year are expended prior to the end of the
29 fiscal year.
30 6. On or before the first day of February each year, the commissioner
31 of the office of alcoholism and substance abuse services shall provide a
32 written report to the temporary president of the senate, speaker of the
33 assembly, chair of the senate finance committee, chair of the assembly
34 ways and means committee, chair of the senate committee on health, chair
35 of the assembly health committee, the state comptroller and the public.
36 Such report shall include how the monies of the fund were utilized
37 during the preceding calendar year, and shall include:
38 (a) the amount of money disbursed from the fund and the award process
39 used for such disbursements;
40 (b) recipients of awards from the fund;
41 (c) the amount awarded to each;
42 (d) the purposes for which such awards were granted; and
43 (e) a summary financial plan for such monies which shall include esti-
44 mates of all receipts and all disbursements for the current and succeed-
45 ing fiscal years, along with the actual results from the prior fiscal
46 year.
47 § 4. This act shall take effect April 1, 2020. Effective immediately,
48 any rules or regulations necessary to implement the provisions of this
49 act may be promulgated and any procedures, forms, or instructions neces-
50 sary for such implementation may be adopted and issued on or after the
51 date this act shall have become a law. The commissioners of taxation and
52 finance and the office of alcoholism and substance abuse services may
53 take any steps necessary to implement this act prior to its effective
54 date.
