2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 14, 2019
        Introduced  by  M.  of  A. L. ROSENTHAL -- read once and referred to the
          Committee on Ways and Means
        AN ACT to amend the tax law, in relation to establishing an  excise  tax
          on  certain  prescription opioids; and to amend the state finance law,
          in relation to establishing an opiate addiction  trust  fund  for  the
          purpose of funding opiate addiction prevention and treatment programs
          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  "budgeting
     2  for opioid addiction treatment in New York act".
     3    §  2.  The  tax law is amended by adding a new article 20-C to read as
     4  follows:
     5                                ARTICLE 20-C
     6                     EXCISE TAX ON PRESCRIPTION OPIOIDS
     7  Section 495. Definitions.
     8          496. Administration of prescription opioid tax.
     9    § 495. Definitions. For the purposes of this  article,  the  following
    10  terms shall have the following meanings:
    11    1.  "Taxable active opioid" means any opiate having an addiction-form-
    12  ing or addiction-sustaining liability similar to morphine or being capa-
    13  ble of conversion into a drug having an addiction-forming or  addiction-
    14  sustaining  liability.  It  does not include a prescription drug that is
    15  used exclusively for the treatment of opioid  addiction  as  part  of  a
    16  medically   assisted   treatment   effort.   Nor  does  it  include  any
    17  prescription drug that  is  used  exclusively  for  certain  cancer  and
    18  hospice patients.
    19    2.  "Certain cancer and hospice patients" means a patient for whom any
    20  taxable active opioid is prescribed to treat pain relating to cancer  or
    21  cancer treatment or a patient participating in hospice care.
    22    3. "Covered entity" means any manufacturer, producer, or importer of a
    23  substance described in subdivision one of this section.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.

        A. 1107                             2
     1    §  496.  Administration of prescription opioid tax. 1. There is hereby
     2  imposed an excise tax on the gross receipts from  the  sale  of  taxable
     3  active  opioids,  to  be  paid by the covered entity, at the rate of one
     4  cent per milligram. The tax imposed by this  article  shall  be  charged
     5  against  and  be  paid by the covered entity and shall not be added as a
     6  separate charge or line item on any  sales  slip,  invoice,  receipt  or
     7  other statement or memorandum of the price given to the retail customer.
     8    2.  The  commissioner  may  make,  adopt and amend rules, regulations,
     9  procedures and forms necessary for the  proper  administration  of  this
    10  article.
    11    3.  All  taxes,  interest  and  penalties collected or received by the
    12  commissioner under this article  shall  be  deposited  and  disposed  of
    13  pursuant  to  the  provisions  of the opiate addiction trust fund estab-
    14  lished by section eighty-nine-j of the state finance law.
    15    § 3. The state finance law is amended by adding a new section 89-j  to
    16  read as follows:
    17    § 89-j. Opiate addiction trust fund. 1. There is hereby established in
    18  the joint custody of the state comptroller and the commissioner of taxa-
    19  tion  and  finance  a  special fund to be known as the "opiate addiction
    20  trust fund".
    21    2. The opiate  addiction  trust  fund  shall  consist  of  all  moneys
    22  required  to be deposited in the opiate addiction trust fund pursuant to
    23  the provisions of section four hundred ninety-six of the tax law.
    24    3. The moneys in the opiate addiction trust fund shall be  kept  sepa-
    25  rate and shall not be commingled with any other moneys in the custody of
    26  the commissioner of taxation and finance and the state comptroller.
    27    4.  The  moneys  of the opiate addiction trust fund shall be allocated
    28  upon a certificate of approval of availability by the  director  of  the
    29  budget  as follows: (a) establishing new addiction treatment facilities,
    30  residential and outpatient, including covering capital costs; (b) estab-
    31  lishing  sober  living  facilities;  (c)   recruiting   and   increasing
    32  reimbursement  for certified mental health providers providing substance
    33  abuse treatment in medically underserved communities or communities with
    34  high rates of prescription drug abuse; (d)  expanding  access  to  long-
    35  term, residential treatment programs for opioid addicts, including thir-
    36  ty-day,  sixty-day, and ninety-day programs; (e) establishing or operat-
    37  ing support programs that offer employer services,  housing,  and  other
    38  support  services to help recovering addicts transition back into socie-
    39  ty; (f) establishing or operating housing for children whose parents are
    40  participating in substance abuse treatment programs,  including  capital
    41  costs;  (g)  establishing  or  operating  facilities to provide care for
    42  babies born with neonatal abstinence syndrome, including capital  costs;
    43  and  (h)  other treatment programs, as the commissioner of health deter-
    44  mines appropriate.
    45    § 4. This act shall take effect immediately.