Bill Text: NY A06349 | 2019-2020 | General Assembly | Amended


Bill Title: 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.

Spectrum: Strong Partisan Bill (Democrat 20-2)

Status: (Introduced) 2019-03-18 - print number 6349a [A06349 Detail]

Download: New_York-2019-A06349-Amended.html


                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.
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