S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6349--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               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:
 
   Section 1. This act shall be known and may be cited as the  "addiction
 prevention and recovery act of 2019".
   §  2.  Paragraphs  (a), (b), (c), (d), (e) and (f) of subdivision 1 of
 section 424 of the tax law, paragraphs (a), (b), (c) and (d) as  amended
 by  section  1  of part X-1 of chapter 57 of the laws of 2009, paragraph
 (e) as amended by chapter 190 of the laws of 1990 and paragraph  (f)  as
 amended  by chapter 508 of the laws of 1993, are amended and a new para-
 graph (h) is added to read as follows:
   (a) [Fourteen] TWENTY-EIGHT cents per gallon upon beers;
   (b) [Thirty] SIXTY cents per gallon upon  still  wines,  except  cider
 containing  more  than  three  and  two-tenths  per centum of alcohol by
 volume, upon which the tax shall be  [three]  SEVEN  and  [seventy-nine]
 FIFTY-EIGHT hundredths cents per gallon;
   (c) [Thirty] SIXTY cents per gallon upon artificially carbonated spar-
 kling  wines,  except artificially carbonated sparkling cider containing
 more than three and two-tenths per centum of  alcohol  by  volume,  upon
 which  the  tax  shall  be  [three] SEVEN and [seventy-nine] FIFTY-EIGHT
 hundredths cents per gallon;
   (d) [Thirty] SIXTY cents per  gallon  upon  natural  sparkling  wines,
 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
 
 per  centum  of  alcohol  by volume, upon which the tax shall be [three]
 SEVEN and [seventy-nine] FIFTY-EIGHT hundredths cents per gallon;
   (e)  [Sixty-seven]  ONE  DOLLAR  AND  THIRTY-FOUR cents per liter upon
 liquors containing not more than twenty-four per centum  of  alcohol  by
 volume except liquors containing not more than two per centum of alcohol
 by  volume,  upon which the tax shall be [one cent] TWO CENTS per liter;
 and
   (f) [One dollar] THREE DOLLARS and [seventy]  FORTY  cents  per  liter
 upon all other liquors; when sold or used within this state, except when
 sold  or  used under such circumstances that this state is without power
 to impose such tax or when sold to the United States  and  except  beers
 when  sold to or by a voluntary unincorporated organization of the armed
 forces of the United States operating a place  for  the  sale  of  goods
 pursuant  to regulations promulgated by the appropriate executive agency
 of the United States, to the extent provided in such regulations, direc-
 tives and policy statements of such an agency applicable to such  sales,
 and  except  when  sold to professional foreign consuls-general, consuls
 and vice-consuls who are nationals of the state appointing them and  who
 are assigned to foreign consulates in this state, provided that American
 consular  officers  of  equal rank who are citizens of the United States
 and who exercise their official functions at American consulates in such
 foreign country are granted reciprocal  exemptions;  provided,  however,
 that  the  commissioner  may permit the sale of alcohol without tax to a
 holder of any industrial  alcohol  permit,  alcohol  permit  or  alcohol
 distributor's  permit,  issued by the state liquor authority, and by the
 holder of an alcohol distributor's  permit,  class  A,  issued  by  such
 authority  to  a  holder  of a distiller's license, class B, or a winery
 license, issued by such authority and may also permit the use of alcohol
 for any purpose other than the production of alcoholic beverages by such
 holders without tax; provided also that the commissioner may permit  the
 sale  of  cider  without  tax  by a holder of a cider producer's license
 issued by the state liquor authority to a holder of a  cider  producer's
 license or a cider wholesaler's license issued by such authority.
   (H)  NOTWITHSTANDING  ANY OTHER PROVISION OF THIS ARTICLE, HALF OF ALL
 TAXES, INTEREST, PENALTIES AND FEES COLLECTED OR RECEIVED BY THE COMMIS-
 SIONER FROM EACH GALLON OF BEER, STILL WINE, CIDER, ARTIFICIALLY  CARBO-
 NATED  SPARKLING WINES, ARTIFICIALLY CARBONATED SPARKLING CIDER, NATURAL
 SPARKLING WINES, NATURAL SPARKLING CIDER AND FROM EACH LITER  OF  LIQUOR
 UNDER  PARAGRAPHS (A) THROUGH (F) OF THIS SUBDIVISION SHALL BE ALLOCATED
 TO THE ALCOHOL AND SUBSTANCE ABUSE  ADDICTION  PREVENTION  AND  RECOVERY
 FUND ESTABLISHED PURSUANT TO SECTION NINETY-NINE-FF OF THE STATE FINANCE
 LAW.
   § 3. The state finance law is amended by adding a new section 99-ff to
 read as follows:
   § 99-FF. ALCOHOL AND SUBSTANCE ABUSE ADDICTION PREVENTION AND RECOVERY
 FUND.  1.  THERE IS HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE COMP-
 TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A SPECIAL  FUND  TO
 BE  KNOWN  AS  THE "ALCOHOL AND SUBSTANCE ABUSE ADDICTION PREVENTION AND
 RECOVERY FUND".
   2. (A) SUCH FUND SHALL CONSIST OF ALL REVENUES RECEIVED BY THE DEPART-
 MENT OF TAXATION AND FINANCE, PURSUANT TO THE  PROVISIONS  OF  PARAGRAPH
 (H)  OF  SUBDIVISION  ONE OF SECTION FOUR HUNDRED TWENTY-FOUR OF THE TAX
 LAW, AND ALL OTHER MONEYS APPROPRIATED, CREDITED OR TRANSFERRED  THERETO
 FROM ANY OTHER FUND OR SOURCE PURSUANT TO LAW. NOTHING CONTAINED IN THIS
 SECTION SHALL PREVENT THE STATE FROM RECEIVING GRANTS, GIFTS OR BEQUESTS

 A. 6349--A                          3
 
 FOR  THE  PURPOSES OF THE FUND AS DEFINED IN THIS SECTION AND DEPOSITING
 THEM INTO THE FUND ACCORDING TO LAW.
   (B) MONIES EXPENDED FROM SUCH FUND SHALL BE USED TO SUPPLEMENT AND NOT
 SUPPLANT  ANY  OTHER  FUNDS WHICH WOULD OTHERWISE HAVE BEEN EXPENDED FOR
 ALCOHOL AND SUBSTANCE ABUSE ADDICTION PREVENTION OR RECOVERY.  ALL  SUCH
 FUNDS  SHALL  BE  USED  TO IMPROVE ALCOHOL AND SUBSTANCE ABUSE ADDICTION
 PREVENTION AND RECOVERY SERVICES IN THE STATE. NOTHING IN THIS PARAGRAPH
 SHALL PRECLUDE THE STATE FROM DECREASING FUNDS  AS  LONG  AS  THE  STATE
 DEMONSTRATES  TO  THE  OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES
 THAT THE QUALITY OF SERVICES HAS BEEN MAINTAINED  OR  ENHANCED  NOTWITH-
 STANDING THE USE OF STATE FUNDS.
   3. MONIES OF THE FUND SHALL BE EXPENDED ONLY FOR ALCOHOL AND SUBSTANCE
 ABUSE ADDICTION PREVENTION AND RECOVERY. AS USED IN THIS SECTION, "ALCO-
 HOL AND SUBSTANCE ABUSE ADDICTION PREVENTION AND RECOVERY" SHALL INCLUDE
 EDUCATIONAL  PROJECTS,  INCLUDING GRANTS FOR ALCOHOL AND SUBSTANCE ABUSE
 ADDICTION EDUCATION AND PREVENTION PROGRAMS, AND ALCOHOL  AND  SUBSTANCE
 ABUSE ADDICTION RECOVERY SERVICES AND PROGRAMS WHICH ARE APPROVED BY THE
 DEPARTMENT OF HEALTH.
   4.  MONIES  SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND WARRANT OF
 THE COMPTROLLER ON VOUCHERS APPROVED AND CERTIFIED BY  THE  COMMISSIONER
 OF  THE  OFFICE  OF  ALCOHOLISM  AND  SUBSTANCE ABUSE SERVICES, PROVIDED
 HOWEVER THAT FIFTY PERCENT OF THE FUNDS SHALL BE EXPENDED ON ALCOHOL AND
 SUBSTANCE ABUSE ADDICTION PREVENTION AND  FIFTY  PERCENT  OF  THE  FUNDS
 SHALL  BE  EXPENDED  ON  ALCOHOL  AND SUBSTANCE ABUSE ADDICTION RECOVERY
 SERVICES AND PROGRAMS.
   5. TO THE EXTENT PRACTICABLE, THE COMMISSIONER OF THE OFFICE OF  ALCO-
 HOLISM  AND  SUBSTANCE  ABUSE  SERVICES  SHALL  ENSURE  THAT  ALL MONIES
 RECEIVED DURING A FISCAL YEAR ARE EXPENDED  PRIOR  TO  THE  END  OF  THE
 FISCAL YEAR.
   6.  ON OR BEFORE THE FIRST DAY OF FEBRUARY EACH YEAR, THE COMMISSIONER
 OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE SERVICES SHALL PROVIDE A
 WRITTEN REPORT TO THE TEMPORARY PRESIDENT OF THE SENATE, SPEAKER OF  THE
 ASSEMBLY,  CHAIR  OF THE SENATE FINANCE COMMITTEE, CHAIR OF THE ASSEMBLY
 WAYS AND MEANS COMMITTEE, CHAIR OF THE SENATE COMMITTEE ON HEALTH, CHAIR
 OF THE ASSEMBLY HEALTH COMMITTEE, THE STATE COMPTROLLER AND THE  PUBLIC.
 SUCH  REPORT  SHALL  INCLUDE  HOW  THE  MONIES OF THE FUND WERE UTILIZED
 DURING THE PRECEDING CALENDAR YEAR, AND SHALL INCLUDE:
   (A) THE AMOUNT OF MONEY DISBURSED FROM THE FUND AND THE AWARD  PROCESS
 USED FOR SUCH DISBURSEMENTS;
   (B) RECIPIENTS OF AWARDS FROM THE FUND;
   (C) THE AMOUNT AWARDED TO EACH;
   (D) THE PURPOSES FOR WHICH SUCH AWARDS WERE GRANTED; AND
   (E) A SUMMARY FINANCIAL PLAN FOR SUCH MONIES WHICH SHALL INCLUDE ESTI-
 MATES OF ALL RECEIPTS AND ALL DISBURSEMENTS FOR THE CURRENT AND SUCCEED-
 ING  FISCAL  YEARS,  ALONG WITH THE ACTUAL RESULTS FROM THE PRIOR FISCAL
 YEAR.
   § 4. This act shall take effect April 1, 2020. Effective  immediately,
 any  rules  or regulations necessary to implement the provisions of this
 act may be promulgated and any procedures, forms, or instructions neces-
 sary for such implementation may be adopted and issued on or  after  the
 date this act shall have become a law. The commissioners of taxation and
 finance  and  the  office of alcoholism and substance abuse services may
 take any steps necessary to implement this act prior  to  its  effective
 date.