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A06436 Summary:

A06436 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
 submitted in accordance with Assembly Rule III, Sec 1(f)



 
BILL NUMBER: A6436
 
SPONSOR: Crespo (MS)

 
TITLE OF BILL:  An act to amend the tax law and the state finance law,
in relation to allocating certain revenue to the tobacco use prevention
and control program fund for programs to help smokers quit and to keep
children from smoking
 
 
PURPOSE:
 
The purpose of this bill is to reduce the number of people who smoke in
New York State by allocating funding levels for the Tobacco Use
Prevention and Control Program that are recommended by the Centers for
Disease Control and Prevention (CDC).
 
 
SUMMARY OF PROVISIONS:

Section 1 of the bill provides a Legislative Intent.
 
Section 2 of the bill amends Section 482 of the Tax Law to require that
a portion of tobacco taxes collected or received by the Commissioner of
Taxation pursuant to Article 20 of the Tax Law must be credited to and
deposited in a new Tobacco Use Prevention and Control Fund over a ten
period with funding levels meeting the CDC recommendations that are In
place in 2029. Allocations to the fund would be made in accordance with
the following schedule:
 
*Effective on and after April 1, 2021, $52 million;
 
*Effective from April 1, 2022 to April 1, 2029, an increase that is no
less than 5% annually;
 
*Effective April 1, 2029, no less than the amount recommended by the CDC
on such date.
 
Section 3 adds a new Section 86 to the State Finance Law to establish
the Tobacco Use Prevention and Control Fund. The bill requires that all
funds received by the Fund must be expended through an appropriation
only for the purposes of implementing the Tobacco Use Prevention and
Control Program in accordance with Section 1399-ii of the Public Health
Law.
 
 
JUSTIFICATION:
 
The New York Tobacco Use Prevention and Control Program has been proven
effective in reducing the number of women and men who smoke and the
number of children taking up this deadly addiction. The program is inde-
pendently reviewed and those reviews have concluded that the program is
responsible for significant public health improvements.  However, the
review has most recently identified the program's single biggest weak-
ness - dwindling state support.
 
Since 2007 state funding for the program has been cut in half, to $39.3
million. Since that time, New York has dropped from 5th to 21st among
states' per capita spending on tobacco control. The CDC recommends that
New York spend $254 million annually on the Tobacco Use Prevention and
Control Program. This past summer, an independent evaluator of the
program recommended that funds for the program be increased to $85
million, with subsequent steps to meet the CDC standard.
The State collects over $2 billion annually in tobacco tax revenues, but
spends only 16% of the CDC recommended amount on tobacco control
support. This inadequate funding level for the program stands in stark
contrast to promises made in 1988 by public officials to invest state
dollars earned from the Tobacco Master Settlement Agreement in tobacco
control programs. In fact, the State Attorney General at that time stat-
ed that: "As a result, millions of children who are not yet smokers will
be sparred horrific diseases and suffering, and millions of current
smokers will get a real chance to quit and reclaim their good health."
 
In addition, the Tobacco Master Settlement Agreement states that it's
purpose is to "achieve for the Settling States and their citizens
significant funding for the advancement of public health" and "the
implementation of important tobacco-related public health measures."
This bill allocates a small portion of tobacco tax revenues over a 10
year period to the Tobacco Use Prevention and Control pro gram to bring
funding levels in line with the recommendations of the CDC by 2024.
Funding levels will increase from the current $39.3 million in 2014 to
the amount recommended by the CDC in 2024.
 
This investment will save money and lives. In 2009, 25,400 lives were
prematurely lost due to tobacco use. Tobacco costs New Yorkers an esti-
mated $8.17 billion annually in health care costs, including $5.47
billion in Medicaid costs, about half of which is absorbed by state
taxpayers. Upstate New York has seen it own share of serious health
problems, particularly affecting those of limited income who have not
experienced reductions in smoking rates over the past 10 years. Accord-
ing to a recent report by the American Cancer Society, upstate New York,
which has exceptionally high smoking rates, has a much higher lung
cancer rate than downstate New York and is higher than the national
average.
 
 
LEGISLATIVE HISTORY:
 
A7426B died in Assembly Ways and Means, died in Investigations and
Government Operations.
 
A5987A died in ways and means.
 
BILL NOA06074
 
02/23/2017referred to ways and means
 
01/03/2018referred to ways and means
 
 
FISCAL IMPLICATIONS:
 
This bill will save the State money. Tobacco costs New Yorkers an esti-
mated 58.17 billion in health care costs, including $2.7 billion in
Medicaid costs as a result of smoking.
 
 
EFFECTIVE DATE:
April 1, 2021