S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  9925--A
 
                           I N  A S S E M B L Y
 
                             February 27, 2020
                                ___________
 
 Introduced  by M. of A. ORTIZ -- 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
   imposing an excise tax on sugary drinks
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The tax law is amended by adding a new article 17 to read
 as follows:
                                ARTICLE 17
                        EXCISE TAX ON SUGARY DRINKS
 SECTION 400. DEFINITIONS.
         401. IMPOSITION OF EXCISE TAX.
         402. REPORT OF SALES AND REMITTANCE OF TAX.
         403. DEPOSIT AND DISPOSITION OF REVENUE
         404. RECORDS OF DISTRIBUTORS.
         405. EXEMPTIONS.
         406. RULES AND REGULATIONS.
         407. SEVERABILITY.
   § 400. DEFINITIONS. AS USED IN THIS ARTICLE, THE FOLLOWING TERMS SHALL
 HAVE THE FOLLOWING MEANINGS:
   1. "BEVERAGE FOR MEDICAL USE" MEANS  A  BEVERAGE  SUITABLE  FOR  HUMAN
 CONSUMPTION  AND MANUFACTURED FOR USE AS AN ORAL NUTRITIONAL THERAPY FOR
 PERSONS WHO CANNOT ABSORB OR METABOLIZE DIETARY NUTRIENTS FROM  FOOD  OR
 BEVERAGES,  OR  FOR  USE AS AN ORAL REHYDRATION ELECTROLYTE SOLUTION FOR
 INFANTS AND CHILDREN FORMULATED TO PREVENT OR TREAT DEHYDRATION  DUE  TO
 ILLNESS.  "BEVERAGE FOR MEDICAL USE" SHALL ALSO MEAN A "MEDICAL FOOD" AS
 DEFINED  IN  SECTION  5(B)(3)  OF  THE  ORPHAN  DRUG  ACT   (21   U.S.C.
 360EE(B)(3)).  "BEVERAGE  FOR  MEDICAL  USE"  SHALL  NOT  INCLUDE DRINKS
 COMMONLY REFERRED TO AS "SPORTS DRINKS" OR ANY OTHER COMMON  NAMES  THAT
 ARE DERIVATIONS THEREOF.
   2. "BOTTLE" MEANS ANY CLOSED OR SEALED CONTAINER REGARDLESS OF SIZE OR
 SHAPE, INCLUDING, WITHOUT LIMITATION, THOSE MADE OF GLASS, METAL, PAPER,
 PLASTIC OR ANY OTHER MATERIAL OR COMBINATION OF MATERIALS.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
              

                       [ ] is old law to be omitted.
                                                            LBD15297-04-0

 A. 9925--A                          2
 
   3. "BOTTLED SUGARY DRINK" MEANS ANY SUGARY DRINK CONTAINED IN A BOTTLE
 THAT  IS READY FOR CONSUMPTION WITHOUT FURTHER PROCESSING SUCH AS, WITH-
 OUT LIMITATION, DILUTION OR CARBONATION.
   4. "CONSUMER" MEANS A PERSON WHO PURCHASES A SUGARY DRINK FOR CONSUMP-
 TION AND NOT FOR SALE TO ANOTHER.
   5.  "DISTRIBUTOR" MEANS ANY PERSON, INCLUDING MANUFACTURERS AND WHOLE-
 SALE  DEALERS,  WHO  RECEIVES,  STORES,  MANUFACTURES,  BOTTLES   AND/OR
 DISTRIBUTES  BOTTLED  SUGARY  DRINKS,  SYRUPS  OR  POWDERS,  FOR SALE TO
 RETAILERS DOING BUSINESS IN THE STATE, WHETHER OR NOT THAT  PERSON  ALSO
 SELLS SUCH PRODUCTS TO CONSUMERS.
   6.  "MILK"  MEANS  NATURAL  LIQUID  MILK REGARDLESS OF ANIMAL OR PLANT
 SOURCE OR BUTTERFAT CONTENT; NATURAL MILK CONCENTRATE,  WHETHER  OR  NOT
 RECONSTITUTED; OR DEHYDRATED NATURAL MILK, WHETHER OR NOT RECONSTITUTED.
   7.  "NATURAL FRUIT JUICE" MEANS THE ORIGINAL LIQUID RESULTING FROM THE
 PRESSING OF FRUITS, OR THE LIQUID RESULTING FROM THE DILUTION WITH WATER
 OF DEHYDRATED NATURAL FRUIT JUICE.
   8. "NATURAL VEGETABLE JUICE" MEANS THE ORIGINAL LIQUID RESULTING  FROM
 THE  PRESSING  OF  VEGETABLES, OR THE LIQUID RESULTING FROM THE DILUTION
 WITH WATER OF DEHYDRATED NATURAL VEGETABLE JUICE.
   9. "NON-NUTRITIVE SWEETENER" MEANS ANY NON-NUTRITIVE  SUBSTANCE  SUIT-
 ABLE  FOR  HUMAN CONSUMPTION THAT HUMANS PERCEIVE AS SWEET AND INCLUDES,
 BUT IS NOT LIMITED  TO,  ASPARTAME,  ACESULFAME-K,  NEOTAME,  SACCHARIN,
 SUCRALOSE  AND  STEVIA.  "NON-NUTRITIVE  SWEETENER" EXCLUDES SUGARS. FOR
 PURPOSES OF THIS DEFINITION, "NON-NUTRITIVE SWEETENER" MEANS A SUBSTANCE
 THAT CONTAINS FEWER THAN FIVE CALORIES PER SERVING.
   10. "PERSON" MEANS ANY NATURAL PERSON, PARTNERSHIP, COOPERATIVE  ASSO-
 CIATION,  LIMITED  LIABILITY  COMPANY,  CORPORATION,  PERSONAL REPRESEN-
 TATIVE, RECEIVER, TRUSTEE, ASSIGNEE OR ANY OTHER LEGAL ENTITY.
   11. "PLACE OF BUSINESS" MEANS ANY PLACE WHERE SUGARY DRINKS, SYRUPS OR
 POWDERS ARE MANUFACTURED OR RECEIVED FOR SALE IN THE STATE.
   12. "POWDER" MEANS ANY SOLID MIXTURE OF INGREDIENTS  USED  IN  MAKING,
 MIXING,  OR  COMPOUNDING SUGARY DRINKS BY MIXING THE POWDER WITH ANY ONE
 OR MORE OTHER INGREDIENTS,  INCLUDING  WITHOUT  LIMITATION  WATER,  ICE,
 SYRUP,  SIMPLE  SYRUP, FRUITS, VEGETABLES, FRUIT JUICE, VEGETABLE JUICE,
 CARBONATION OR OTHER GAS.
   13. "RETAILER" MEANS ANY PERSON WHO SELLS OR  OTHERWISE  DISPENSES  IN
 THE  STATE  A  SUGARY  DRINK TO A CONSUMER WHETHER OR NOT THAT PERSON IS
 ALSO A DISTRIBUTOR AS DEFINED IN THIS SECTION.
   14. "SALE" MEANS THE TRANSFER OF  TITLE  OR  POSSESSION  FOR  VALUABLE
 CONSIDERATION  REGARDLESS  OF  THE  MANNER  BY  WHICH  THE  TRANSFER  IS
 COMPLETED.
   15. "SUGARS" MEANS ANY MONOSACCHARIDE OR DISACCHARIDE NUTRITIVE SWEET-
 ENER SUCH AS GLUCOSE, FRUCTOSE, LACTOSE, AND SUCROSE. EXAMPLES  INCLUDE,
 BUT  ARE  NOT  LIMITED  TO,  CANE  SUGAR, BEET SUGAR, HIGH-FRUCTOSE CORN
 SYRUP, HONEY, FRUIT JUICE CONCENTRATE, AND OTHER CALORIC SWEETENERS. FOR
 PURPOSES OF THIS DEFINITION, "NUTRITIVE" MEANS A SUBSTANCE THAT CONTAINS
 FIVE OR MORE CALORIES PER SERVING.
   16. "SUGARY DRINK" MEANS  ANY  NONALCOHOLIC  BEVERAGE,  CARBONATED  OR
 NONCARBONATED,  WHICH IS INTENDED FOR HUMAN CONSUMPTION AND CONTAINS ANY
 ADDED SUGARS. AS USED IN THIS DEFINITION, "NONALCOHOLIC BEVERAGE"  MEANS
 ANY BEVERAGE THAT CONTAINS LESS THAN ONE-HALF OF ONE PERCENT ALCOHOL PER
 VOLUME.
   17.  "SYRUP"  MEANS  A  LIQUID  MIXTURE OF INGREDIENTS USED IN MAKING,
 MIXING, OR COMPOUNDING SUGARY DRINKS USING ONE OR MORE OTHER INGREDIENTS
 INCLUDING, WITHOUT LIMITATION,  WATER,  ICE,  A  POWDER,  SIMPLE  SYRUP,

 A. 9925--A                          3
 
 FRUITS,  VEGETABLES,  FRUIT JUICE, VEGETABLE JUICE, CARBONATION OR OTHER
 GAS.
   18.  "WATER"  MEANS  NO-CALORIE LIQUID WATER, WHICH IS EITHER NON-FLA-
 VORED OR FLAVORED WITHOUT THE USE OF SUGARS. "WATER" MAY  BE  CARBONATED
 (INCLUDING  BUT  NOT LIMITED TO CLUB SODA AND SELTZER), STILL, DISTILLED
 AND/OR PURIFIED.
   § 401. IMPOSITION OF EXCISE  TAX.  1.  THERE  ARE  HEREBY  LEVIED  AND
 IMPOSED ON A DISTRIBUTOR EXCISE TAXES AT THE FOLLOWING RATES:
   (A) BEVERAGES:
   (I) BEVERAGES WITH SEVEN AND A HALF GRAMS OF SUGARS OR LESS PER TWELVE
 FLUID OUNCES SHALL NOT BE TAXED.
   (II)  BEVERAGES  WITH  MORE  THAN SEVEN AND A HALF GRAMS BUT LESS THAN
 THIRTY GRAMS OF SUGARS PER TWELVE FLUID OUNCES SHALL BE TAXED AT A  RATE
 OF ONE CENT PER OUNCE.
   (III)  BEVERAGES  WITH THIRTY GRAMS OF SUGARS OR MORE PER TWELVE FLUID
 OUNCES SHALL BE TAXED AT A RATE OF TWO CENTS PER OUNCE.
   (B) SYRUPS AND POWDERS SOLD OR OFFERED FOR SALE TO A RETAILER FOR SALE
 IN THE STATE TO A CONSUMER, EITHER AS SYRUP OR POWDER  OR  AS  A  SUGARY
 DRINK DERIVED FROM SUCH SYRUP OR POWDER:
   (I)  IF  THE  BEVERAGES MADE FROM THE SYRUP OR POWDER HAVE SEVEN AND A
 HALF GRAMS OF SUGARS OR LESS PER TWELVE  FLUID  OUNCES,  SUCH  SYRUP  OR
 POWDER SHALL NOT BE TAXED.
   (II)  IF  THE  BEVERAGES  MADE FROM THE SYRUP OR POWDER HAVE MORE THAN
 SEVEN AND A HALF GRAMS BUT LESS THAN THIRTY GRAMS OF SUGARS  PER  TWELVE
 FLUID OUNCES, SUCH SYRUP OR POWDER SHALL BE TAXED AT A RATE EQUAL TO ONE
 CENT PER OUNCE OF SUGARY DRINK PRODUCED FROM THAT SYRUP OR POWDER.
   (III) IF THE BEVERAGES MADE FROM THE SYRUP OR POWDER HAVE THIRTY GRAMS
 OF SUGARS OR MORE PER TWELVE FLUID OUNCES, SUCH SYRUP OR POWDER SHALL BE
 TAXED  AT  A  RATE EQUAL TO TWO CENTS PER OUNCE OF SUGARY DRINK PRODUCED
 FROM THAT SYRUP OR POWDER.
   (C) FOR PURPOSES OF CALCULATING THE TAX IMPOSED PURSUANT TO  PARAGRAPH
 (B) OF THIS SUBDIVISION, THE VOLUME OF SUGARY DRINK PRODUCED FROM SYRUPS
 OR  POWDERS SHALL BE THE LARGER OF (I) THE LARGEST VOLUME RESULTING FROM
 USE  OF  THE  SYRUPS  OR  POWDERS  ACCORDING   TO   THE   MANUFACTURER'S
 INSTRUCTIONS,  OR  (II) THE VOLUME ACTUALLY PRODUCED BY THE RETAILER, AS
 REASONABLY DETERMINED BY THE COMMISSIONER.
   2. THE NUTRITION FACTS PRODUCT LABEL, AS REQUIRED BY THE FOOD AND DRUG
 ADMINISTRATION, SHALL BE USED TO DETERMINE  THE  AMOUNT  OF  SUGARS  PER
 TWELVE  OUNCES  OF  SUGARY  DRINK  BY REFERENCING THE "SERVING SIZE" AND
 "SUGARS" OR "TOTAL SUGARS" LINES ON THE LABEL.
   3. THE TAX RATES SET FORTH IN THIS SECTION SHALL BE ADJUSTED  ANNUALLY
 BY  THE  COMMISSIONER  IN  PROPORTION WITH THE CONSUMER PRICE INDEX: ALL
 URBAN CONSUMERS FOR ALL ITEMS FOR THE NORTHEAST REGION STATISTICAL  AREA
 AS  REPORTED  BY  THE  UNITED  STATES  BUREAU OF LABOR STATISTICS OR ANY
 SUCCESSOR TO THAT INDEX.
   4. MANUFACTURERS, BOTTLERS, WHOLESALERS OR DISTRIBUTORS SHALL ADD  THE
 AMOUNT  OF THE TAX IMPOSED BY THIS SECTION TO THE RETAIL PRICE OF SUGARY
 DRINKS.
   5. A RETAILER WHO SELLS BOTTLED SUGARY DRINKS, SYRUPS  OR  POWDERS  IN
 THE  STATE  TO  A CONSUMER, ON WHICH THE TAX IMPOSED BY THIS SECTION HAS
 NOT BEEN PAID BY A DISTRIBUTOR, IS LIABLE FOR THE TAX IMPOSED IN  SUBDI-
 VISION ONE OF THIS SECTION AT THE POINT OF SALE TO A CONSUMER.
   6.  THE  TAXES  IMPOSED  BY  THIS SECTION ARE IN ADDITION TO ANY OTHER
 TAXES THAT MAY APPLY TO PERSONS OR PRODUCTS SUBJECT TO THIS CHAPTER.
   § 402. REPORT OF SALES AND  REMITTANCE  OF  TAX.  ANY  DISTRIBUTOR  OR
 RETAILER  LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE SHALL, ON OR BEFORE

 A. 9925--A                          4
 
 THE LAST DAY OF MARCH, JUNE, OCTOBER, AND DECEMBER OF  EACH  YEAR,  FILE
 WITH  THE  DEPARTMENT A RETURN, ON FORMS TO BE PRESCRIBED BY THE COMMIS-
 SIONER AND FURNISHED BY THE DEPARTMENT, STATING THE QUANTITY  OF  SUGARY
 DRINKS,  SYRUPS  AND  POWDERS  SUBJECT TO THE EXCISE TAX IMPOSED BY THIS
 ARTICLE SOLD OR OFFERED FOR SALE IN THE THREE MONTHS IMMEDIATELY PRECED-
 ING THE MONTH IN WHICH THE REPORT IS  DUE,  AND  ANY  OTHER  INFORMATION
 REQUIRED BY THE COMMISSIONER, ALONG WITH THE TAX DUE.
   §  403.  DEPOSIT  AND  DISPOSITION  OF REVENUE. ALL TAXES COLLECTED OR
 RECEIVED BY THE DEPARTMENT UNDER THIS ARTICLE SHALL BE DEPOSITED IN  THE
 CHILDREN'S  HEALTH PROMOTION FUND ESTABLISHED PURSUANT TO THE PROVISIONS
 OF SECTION NINETY-NINE-II OF THE STATE FINANCE LAW.
   § 404. RECORDS OF DISTRIBUTORS. EVERY DISTRIBUTOR, AND EVERY  RETAILER
 SUBJECT  TO  THIS  CHAPTER,  SHALL  MAINTAIN FOR NOT LESS THAN TWO YEARS
 ACCURATE RECORDS, SHOWING ALL TRANSACTIONS THAT GAVE RISE, OR  MAY  HAVE
 GIVEN  RISE,  TO  TAX  LIABILITY  UNDER  THIS  CHAPTER. SUCH RECORDS ARE
 SUBJECT TO INSPECTION BY THE COMMISSIONER AT ALL REASONABLE TIMES DURING
 NORMAL BUSINESS HOURS.
   § 405. EXEMPTIONS. THE FOLLOWING SHALL BE EXEMPT FROM THE TAX  IMPOSED
 BY THIS CHAPTER:
   1.  BOTTLED  SUGARY  DRINKS,  SYRUPS,  AND  POWDERS SOLD TO THE UNITED
 STATES GOVERNMENT OR AN INDIAN NATION OR TRIBE.
   2. BOTTLED SUGARY DRINKS, SYRUPS, AND POWDERS SOLD BY A DISTRIBUTOR TO
 ANOTHER DISTRIBUTOR IF THE SALES INVOICE CLEARLY INDICATES THAT THE SALE
 IS EXEMPT. IF THE SALE IS TO A PERSON WHO IS BOTH A  DISTRIBUTOR  AND  A
 RETAILER,  THE  SALE  SHALL ALSO BE TAX EXEMPT AND THE TAX SHALL BE PAID
 WHEN THE PURCHASING DISTRIBUTOR OR RETAILER RESELLS  THE  PRODUCT  TO  A
 RETAILER  OR A CONSUMER. THIS EXEMPTION DOES NOT APPLY TO ANY OTHER SALE
 TO A RETAILER.
   3. BEVERAGES SWEETENED SOLELY WITH NON-NUTRITIVE SWEETENERS.
   4. BEVERAGES CONSISTING OF ONE HUNDRED PERCENT NATURAL FRUIT OR  VEGE-
 TABLE JUICE WITH NO ADDED SUGARS.
   5.  BEVERAGES  IN WHICH MILK, OR SOY, RICE OR SIMILAR MILK SUBSTITUTE,
 IS THE PRIMARY INGREDIENT OR THE FIRST LISTED INGREDIENT ON THE LABEL OF
 THE BEVERAGE.
   6. COFFEE OR TEA WITHOUT ADDED SUGARS.
   7. INFANT FORMULA.
   8. BEVERAGES FOR MEDICAL USE.
   9. WATER WITHOUT ADDED SUGARS.
   § 406. RULES AND REGULATIONS. THE COMMISSIONER  SHALL  PROMULGATE  ANY
 RULES  AND  REGULATIONS  NECESSARY  TO  CARRY OUT THE PROVISIONS OF THIS
 ARTICLE.
   § 407. SEVERABILITY. IF ANY CLAUSE, SENTENCE,  PARAGRAPH,  SECTION  OR
 PART  OF THIS ARTICLE SHALL BE ADJUDGED BY ANY COURT OF COMPETENT JURIS-
 DICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT AFFECT, IMPAIR, OR INVAL-
 IDATE THE REMAINDER THEREOF, BUT SHALL BE CONFINED IN ITS  OPERATION  TO
 THE  CLAUSE,  SENTENCE,  PARAGRAPH,  SECTION,  OR  PART THEREOF DIRECTLY
 INVOLVED IN THE CONTROVERSY IN  WHICH  SUCH  JUDGMENT  SHALL  HAVE  BEEN
 RENDERED.
   § 2. The state finance law is amended by adding a new section 99-ii to
 read as follows:
   §  99-II.  CHILDREN'S HEALTH PROMOTION FUND. 1. THERE IS HEREBY ESTAB-
 LISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE  COMMISSIONER  OF
 TAXATION  AND  FINANCE  A  FUND  TO  BE  KNOWN AS THE "CHILDREN'S HEALTH
 PROMOTION FUND". THE CHILDREN'S HEALTH PROMOTION FUND SHALL  CONSIST  OF
 ALL  TAXES, INTEREST, PENALTIES, AND OTHER AMOUNTS COLLECTED PURSUANT TO
 ARTICLE SEVENTEEN OF THE TAX LAW.

 A. 9925--A                          5
 
   2. ALL MONEYS IN THE CHILDREN'S  HEALTH  PROMOTION  FUND  SHALL,  UPON
 APPROPRIATION  BY  THE  LEGISLATURE,  BE  ALLOCATED  FOR THE PURPOSES OF
 STATEWIDE  CHILDHOOD  OBESITY  PREVENTION  ACTIVITIES  AND  PROGRAMS  AS
 FOLLOWS:
   (A) TWENTY PERCENT TO THE DEPARTMENT OF HEALTH TO COORDINATE STATEWIDE
 CHILDHOOD  OBESITY  PREVENTION ACTIVITIES AND TO FUND STATE-LEVEL CHILD-
 HOOD OBESITY PREVENTION AND CHILDREN'S  DENTAL  PROGRAMS.  THIS  FUNDING
 SHALL  SUPPORT PROGRAMS THAT USE EDUCATIONAL, ENVIRONMENTAL, POLICY, AND
 OTHER PUBLIC HEALTH APPROACHES THAT ACHIEVE THE FOLLOWING GOALS: IMPROVE
 ACCESS TO AND CONSUMPTION OF HEALTHY, SAFE,  AND  AFFORDABLE  FOODS  AND
 BEVERAGES;  REDUCE ACCESS TO AND CONSUMPTION OF CALORIE-DENSE, NUTRIENT-
 POOR FOODS; ENCOURAGE PHYSICAL ACTIVITY;  DECREASE  SEDENTARY  BEHAVIOR;
 AND  RAISE  AWARENESS  ABOUT  THE  IMPORTANCE  OF NUTRITION AND PHYSICAL
 ACTIVITY TO CHILDHOOD OBESITY PREVENTION.
   (B)  THIRTY-FIVE  PERCENT  FOR   COMMUNITY-BASED   CHILDHOOD   OBESITY
 PREVENTION PROGRAMS. THIS FUNDING SHALL SUPPORT PROGRAMS THAT USE EDUCA-
 TIONAL,  ENVIRONMENTAL,  POLICY, AND OTHER PUBLIC HEALTH APPROACHES THAT
 ACHIEVE THE FOLLOWING GOALS: IMPROVE ACCESS TO AND CONSUMPTION OF  HEAL-
 THY,  SAFE,  AND  AFFORDABLE  FOODS  AND BEVERAGES; REDUCE ACCESS TO AND
 CONSUMPTION OF CALORIE-DENSE, NUTRIENT-POOR  FOODS;  ENCOURAGE  PHYSICAL
 ACTIVITY;  DECREASE  SEDENTARY  BEHAVIOR;  AND RAISE AWARENESS ABOUT THE
 IMPORTANCE OF NUTRITION  AND  PHYSICAL  ACTIVITY  TO  CHILDHOOD  OBESITY
 PREVENTION.  THE  COMMISSIONER  OF  HEALTH  SHALL BE RESPONSIBLE FOR THE
 DISTRIBUTION OF THESE FUNDS  TO  COMMUNITY-BASED  ORGANIZATIONS  AND  TO
 LOCAL  HEALTH DEPARTMENTS, WITH PRIORITY GIVEN TO COUNTIES THAT HAVE THE
 HIGHEST RATES OF CHILDHOOD OBESITY.
   (C) TEN PERCENT TO EVIDENCE-BASED PREVENTION, EARLY RECOGNITION, MONI-
 TORING, AND WEIGHT MANAGEMENT INTERVENTION  ACTIVITIES  IN  THE  MEDICAL
 SETTING. THE COMMISSIONER OF HEALTH SHALL BE RESPONSIBLE FOR IDENTIFYING
 ACTIVITIES AND ALLOCATING THESE FUNDS.
   (D) THIRTY-FIVE PERCENT TO ELEMENTARY AND SECONDARY SCHOOLS FOR EDUCA-
 TIONAL,  ENVIRONMENTAL,  POLICY  AND OTHER PUBLIC HEALTH APPROACHES THAT
 PROMOTE NUTRITION AND PHYSICAL ACTIVITY. THE APPROACHES FUNDED  PURSUANT
 TO  THIS PARAGRAPH CAN INCLUDE IMPROVING OR BUILDING SCHOOL RECREATIONAL
 FACILITIES THAT ARE USED FOR RECESS AND  PHYSICAL  EDUCATION;  PROVIDING
 CONTINUING  EDUCATION  TRAINING  FOR PHYSICAL EDUCATION TEACHERS; HIRING
 QUALIFIED PHYSICAL EDUCATION TEACHERS; IMPROVING THE QUALITY AND  NUTRI-
 TION  OF  SCHOOL  BREAKFASTS,  LUNCHES, AND SNACKS; ENSURING FREE, CLEAN
 DRINKING WATER ACCESS THROUGHOUT THE SCHOOL DAY; AND INCORPORATING PRAC-
 TICAL NUTRITION EDUCATION  INTO  THE  CURRICULUM.  THE  COMMISSIONER  OF
 EDUCATION  IS  RESPONSIBLE  FOR THE ALLOCATION AND DISTRIBUTION OF THESE
 FUNDS.
   3. MONIES SHALL BE PAYABLE FROM THE FUND ON THE AUDIT AND  WARRANT  OF
 THE  COMPTROLLER  ON VOUCHERS APPROVED AND CERTIFIED BY THE COMMISSIONER
 OF HEALTH.
   § 3. This act shall take effect on the first of January next  succeed-
 ing the date on which it shall have become a law. Effective immediately,
 the  addition,  amendment and/or repeal of any rule or regulation neces-
 sary for the implementation of  this  act  on  its  effective  date  are
 authorized to be made and completed on or before such effective date.