S. 4602--A 2
DEFINED IN SECTION 5(B)(3) OF THE ORPHAN DRUG ACT (21 U.S.C.
360EE(B)(3)).
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.
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
S. 4602--A 3
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,
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 REVIEWED ANNUALLY
AND ADJUSTED PERIODICALLY BY THE COMMISSIONER AS NEEDED TO MAINTAIN A
CONSISTENT EFFECT RELATIVE TO INFLATION.
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.
S. 4602--A 4
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. LOCAL TAXES ON SUGARY DRINKS BY MUNICIPALITIES. 1. ANY CITY OR
MUNICIPALITY IN THIS STATE ACTING THROUGH ITS LOCAL LEGISLATIVE BODY,
IS HEREBY AUTHORIZED AND EMPOWERED TO ADOPT AND AMEND LOCAL LAWS IMPOS-
ING IN ANY SUCH MUNICIPALITY AN EXCISE TAX ON A DISTRIBUTOR ON THE
FOLLOWING PRODUCTS:
(A) BEVERAGES WITH MORE THAN SEVEN AND A HALF GRAMS OF SUGARS PER
TWELVE FLUID OUNCES.
(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 IF THE BEVERAGES MADE FROM
THE SYRUP OR POWDER HAVE MORE THAN SEVEN AND A HALF GRAMS OF SUGARS PER
TWELVE FLUID OUNCES.
2. ALL THE PROVISIONS OF THIS ARTICLE SHALL APPLY TO THE TAXES AUTHOR-
IZED BY SUBDIVISION ONE OF THIS SECTION, SO FAR AS SUCH ARTICLE CAN BE
MADE APPLICABLE TO THE TAXES AUTHORIZED BY THIS SECTION WITH SUCH LIMI-
TATIONS AS SET FORTH IN THIS SECTION AND SUCH MODIFICATIONS AS MAY BE
NECESSARY IN ORDER TO ADAPT SUCH LANGUAGE TO THE LOCAL TAXES AUTHORIZED
BY THIS SECTION. PROVIDED, HOWEVER, IN EVERY CASE WHERE THE WORDS "THIS
STATE" APPEAR, SUCH WORDS "THIS STATE" SHALL BE READ AS "THIS MUNICI-
PALITY" FOR PURPOSES OF THE TAXES AUTHORIZED BY THIS SECTION. WHERE THE
WORD "STATE" IS USED IN A PHRASE REFERRING TO THE SALE OR USE OF SUGARY
DRINKS IN THIS STATE, SUCH WORD "STATE" SHALL BE READ AS "MUNICIPALITY"
FOR PURPOSES OF THE TAXES AUTHORIZED BY THIS SECTION, UNLESS THE WORD
"MUNICIPALITY" CLEARLY IS NOT APPLICABLE.
3. ANY TAXES IMPOSED PURSUANT TO THE AUTHORITY OF THIS SECTION SHALL
BE ADMINISTERED AND COLLECTED BY THE TAX COMMISSION IN THE SAME MANNER
AS THE TAXES IMPOSED UNDER SECTION FOUR HUNDRED ONE OF THIS ARTICLE
SUBJECT TO ALL PROVISIONS OF THIS ARTICLE AS MAY BE APPLICABLE. THE
STATE TAX COMMISSION IS HEREBY EMPOWERED TO MAKE SUCH PROVISIONS AS IT
DEEMS NECESSARY FOR THE JOINT ADMINISTRATION AND COLLECTION OF THE STATE
AND LOCAL TAXES IMPOSED AND AUTHORIZED BY THIS ARTICLE. NOTHING IN THIS
ARTICLE WHICH REQUIRES PAYMENT OF BOTH STATE AND LOCAL TAXES TO THE TAX
COMMISSION SHALL BE CONSTRUED AS THE PAYMENT OF EITHER TAX MORE THAN
ONCE.
4. A LOCAL LAW IMPOSING TAXES PURSUANT TO THE AUTHORITY OF THIS
SECTION OR REPEALING OR SUSPENDING SUCH TAXES MUST GO INTO EFFECT ONLY
ON THE FIRST DAY OF A CALENDAR MONTH. NO SUCH LOCAL LAW SHALL BE EFFEC-
TIVE UNLESS A CERTIFIED COPY OF SUCH LAW IS MAILED BY REGISTERED MAIL TO
THE STATE TAX COMMISSION AT ITS OFFICE IN ALBANY AT LEAST SIXTY DAYS
PRIOR TO THE DATE IT IS TO BECOME EFFECTIVE. HOWEVER, THE TAX COMMIS-
SION, BY RESOLUTION, MAY WAIVE AND REDUCE SUCH SIXTY DAY MINIMUM NOTICE
REQUIREMENT TO A MAILING OF SUCH CERTIFIED COPY BY REGISTERED MAIL WITH-
IN A PERIOD OF NOT LESS THAN THIRTY DAYS PRIOR TO SUCH EFFECTIVE DATE IF
IT DEEMS SUCH ACTION TO BE CONSISTENT WITH ITS DUTIES UNDER THIS
SECTION.
5. CERTIFIED COPIES OF ANY LOCAL LAW DESCRIBED IN THIS SECTION SHALL
ALSO BE FILED WITH THE CLERK OF THE MUNICIPALITY, THE SECRETARY OF STATE
AND THE STATE COMPTROLLER WITHIN FIVE DAYS AFTER THE DATE IT IS ENACTED.
6. ALL TAXES, PENALTIES AND INTEREST IMPOSED BY A MUNICIPALITY UNDER
THE AUTHORITY OF THIS SECTION, WHICH ARE COLLECTED BY THE STATE TAX
COMMISSION, SHALL BE DEPOSITED DAILY WITH SUCH RESPONSIBLE BANKS, BANK-
ING HOUSES OR TRUST COMPANIES, AS MAY BE DESIGNATED BY THE STATE COMP-
TROLLER, TO THE CREDIT OF THE COMPTROLLER, IN TRUST FOR SUCH MUNICI-
PALITY IMPOSING THE TAX. SUCH DEPOSITS SHALL BE KEPT SEPARATE AND APART
S. 4602--A 5
FROM ALL OTHER MONIES IN THE POSSESSION OF THE COMPTROLLER. THE COMP-
TROLLER SHALL REQUIRE ADEQUATE SECURITY FROM ALL SUCH DEPOSITORIES OF
SUCH REVENUE COLLECTED BY THE TAX COMMISSION. THE COMPTROLLER SHALL
RETAIN IN HIS HANDS SUCH AMOUNT AS THE COMMISSIONER OF TAXATION AND
FINANCE MAY DETERMINE TO BE NECESSARY FOR REFUNDS IN RESPECT OF THE
TAXES IMPOSED UNDER THE AUTHORITY OF THIS SECTION, AND FOR REASONABLE
COSTS OF THE STATE TAX COMMISSION IN ADMINISTERING, COLLECTING AND
DISTRIBUTING SUCH TAXES, OUT OF WHICH THE COMPTROLLER SHALL PAY ANY
REFUNDS OF SUCH TAXES TO WHICH TAXPAYERS SHALL BE ENTITLED UNDER THE
PROVISIONS OF THIS ARTICLE. THE AMOUNT SO PAYABLE SHALL BE CERTIFIED TO
THE COMPTROLLER BY THE PRESIDENT OF THE STATE TAX COMMISSION OR HIS
DELEGATE, WHO SHALL NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH
CERTIFICATE. WHERE THE AMOUNT SO PAID OVER TO SUCH MUNICIPALITY IN ANY
SUCH DISTRIBUTION IS MORE OR LESS THAN THE AMOUNT THEN DUE TO SUCH MUNI-
CIPALITY, THE AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE CERTI-
FIED TO THE COMPTROLLER BY THE PRESIDENT OF THE STATE TAX COMMISSION OR
HIS DELEGATE, WHO SHALL NOT BE HELD LIABLE FOR ANY INACCURACY IN SUCH
CERTIFICATE. THE AMOUNT OF THE OVERPAYMENT OR UNDERPAYMENT SHALL BE SO
CERTIFIED TO THE COMPTROLLER AS SOON AFTER THE DISCOVERY OF THE OVERPAY-
MENT OR UNDERPAYMENT AS REASONABLY POSSIBLE AND SUBSEQUENT PAYMENTS AND
DISTRIBUTIONS BY THE COMPTROLLER TO SUCH MUNICIPALITY SHALL BE ADJUSTED
BY SUBTRACTING THE AMOUNT OF ANY SUCH OVERPAYMENT FROM OR BY ADDING THE
AMOUNT OF ANY SUCH UNDERPAYMENT TO SUCH NUMBER OF SUBSEQUENT PAYMENTS
AND DISTRIBUTIONS AS THE COMPTROLLER AND THE PRESIDENT OF THE STATE TAX
COMMISSION SHALL CONSIDER REASONABLE IN VIEW OF THE AMOUNT OF THE OVER-
PAYMENT OR UNDERPAYMENT AND ALL OTHER FACTS OR CIRCUMSTANCES.
7. AS USED IN THIS SECTION, "MUNICIPALITY" SHALL MEAN ANY COUNTY,
TOWN, VILLAGE OR CITY WITHIN THE STATE.
§ 403. REPORT OF SALES AND REMITTANCE OF TAX. ANY DISTRIBUTOR OR
RETAILER LIABLE FOR THE TAX IMPOSED BY THIS ARTICLE SHALL, ON OR BEFORE
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.
§ 404. DEPOSIT AND DISPOSITION OF REVENUE. ALL TAXES COLLECTED OR
RECEIVED BY THE DEPARTMENT UNDER THIS ARTICLE SHALL BE DEPOSITED IN THE
COMMUNITY HEALTH EQUITY FUND ESTABLISHED PURSUANT TO THE PROVISIONS OF
SECTION NINETY-NINE-OO OF THE STATE FINANCE LAW; PROVIDED, HOWEVER, THAT
THE PROVISIONS OF THIS SECTION SHALL NOT APPLY TO TAXES COLLECTED OR
RECEIVED PURSUANT TO ANY TAX IMPOSED PURSUANT TO THE PROVISIONS OF
SECTION FOUR HUNDRED TWO OF THIS ARTICLE.
§ 405. 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.
§ 406. 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
S. 4602--A 6
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. UNSWEETENED DRINKS TO WHICH A PURCHASER CAN ADD, OR CAN REQUEST
THAT A SELLER ADD, SUGAR AT THE POINT OF SALE, SUCH AS COFFEE OR TEA.
7. INFANT FORMULA.
8. BEVERAGES FOR MEDICAL USE.
9. WATER WITHOUT ADDED SUGARS.
§ 407. RULES AND REGULATIONS. THE COMMISSIONER SHALL PROMULGATE ANY
RULES AND REGULATIONS NECESSARY TO CARRY OUT THE PROVISIONS OF THIS
ARTICLE.
§ 408. 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-oo to
read as follows:
§ 99-OO. COMMUNITY HEALTH EQUITY FUND. 1. THERE IS HEREBY ESTABLISHED
IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF TAXATION
AND FINANCE A FUND TO BE KNOWN AS THE "COMMUNITY HEALTH EQUITY FUND".
THE COMMUNITY HEALTH EQUITY FUND SHALL CONSIST OF ALL TAXES, INTEREST,
PENALTIES, AND OTHER AMOUNTS COLLECTED PURSUANT TO ARTICLE SEVENTEEN OF
THE TAX LAW.
2. ALL MONEYS IN THE COMMUNITY HEALTH EQUITY FUND SHALL, UPON APPRO-
PRIATION BY THE LEGISLATURE, BE ALLOCATED FOR THE PURPOSES OF STATEWIDE
PROGRAMS. UP TO FIVE HUNDRED THOUSAND DOLLARS SHALL BE ALLOCATED TO THE
COMMUNITY HEALTH BENEFITS TRUST ACCOUNT FOR THE ESTABLISHMENT AND OPERA-
TION OF THE COMMUNITY ADVISORY BOARD ON HEALTH EQUITY, AS PROVIDED IN
SECTION TWO HUNDRED FORTY-FOUR-B OF THE PUBLIC HEALTH LAW. OF THE
REMAINING FUNDS, MONEYS SHALL BE ALLOCATED AS FOLLOWS:
(A) FIFTY PERCENT TO SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM (SNAP)
INCENTIVES. SUCH FUNDING SHALL SUPPORT PROGRAMS THAT PROVIDE RECIPIENTS
OF SNAP WITH ADDITIONAL MONEYS OR COUPONS DIRECTED TO THEIR ELECTRONIC
BENEFITS TRANSFER CARD WHEN THEY PURCHASE FRUITS AND VEGETABLES. THIS
ALLOCATION OF FUNDS SHALL BE USED TO PROMOTE THE CONSUMPTION OF FRUITS
AND VEGETABLES AND FOSTER A HEALTHIER COMMUNITY.
(B) FIFTY PERCENT TO BE DISPERSED TO THE COMMUNITY HEALTH BENEFITS
TRUST ESTABLISHED PURSUANT TO THE PROVISIONS OF SECTION TWO HUNDRED
FORTY-FOUR-A OF THE PUBLIC HEALTH LAW.
3. MONEYS 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. Article 2 of the public health law is amended by adding a new
title 3-A to read as follows:
S. 4602--A 7
TITLE III-A
COMMUNITY HEALTH BENEFITS
SECTION 244. EMPIRE STATE COMMUNITY BENEFITS GRANT.
244-A. COMMUNITY HEALTH BENEFITS TRUST.
244-B. COMMUNITY ADVISORY BOARD ON HEALTH EQUITY.
§ 244. EMPIRE STATE COMMUNITY BENEFITS GRANT. THE COMMISSIONER SHALL
ESTABLISH A GRANT PROGRAM TO BE ADMINISTERED BY THE DEPARTMENT AND TO BE
KNOWN AS THE "EMPIRE STATE COMMUNITY BENEFITS GRANT". SUCH GRANT SHALL
BE MADE AVAILABLE TO, BUT NOT LIMITED TO, COMMUNITY-BASED PROGRAMS AND
ORGANIZATIONS RELATED TO PROMOTING FOOD ACCESS AND EQUITY IN THE COMMU-
NITY, IMPROVING COMMUNITY NUTRITION, INCREASING ACCESS TO NUTRIENT RICH
FOODS IN SCHOOLS, IDENTIFYING AND IMPROVING THE QUALITY OF SCHOOL-BASED
COURTS, PLAYGROUNDS, PARKS OR TRAILS, PROMOTING PHYSICAL ACTIVITY AND
EXERCISE, REDUCING NUTRITION RELATED CHRONIC ILLNESSES INCLUDING
DIABETES, HEART DISEASE, OBESITY AND TOOTH DECAY, AND TARGETING COMMUNI-
TIES MOST AFFECTED BY ADVERSE HEALTH DISPARITIES, COMMUNITY-BASED INITI-
ATIVES THAT IMPACT SOCIAL DETERMINERS OF HEALTH, AMONG OTHER COMMUNITY-
BASED PROGRAMS AND ORGANIZATIONS. SUCH COMMUNITY-BASED PROGRAMS AND
ORGANIZATIONS SHALL SUBMIT AN APPLICATION TO THE DEPARTMENT TO DETERMINE
THEIR ELIGIBILITY. THE COMMISSIONER SHALL PROMULGATE RULES AND REGU-
LATIONS REGARDING ELIGIBILITY, THE APPLICATION PROCESS, AND AWARDING OF
GRANTS PURSUANT TO THIS SECTION. ALL MONEYS FOR GRANTS AWARDED PURSUANT
TO THIS SECTION SHALL BE FROM THE COMMUNITY HEALTH BENEFITS TRUST ESTAB-
LISHED PURSUANT TO SECTION TWO HUNDRED FORTY-FOUR-A OF THIS TITLE.
§ 244-A. COMMUNITY HEALTH BENEFITS TRUST. 1. THERE IS HEREBY ESTAB-
LISHED IN THE JOINT CUSTODY OF THE COMMISSIONER AND THE COMPTROLLER, A
TRUST FUND TO BE KNOWN AS THE "COMMUNITY HEALTH BENEFITS TRUST". MONEYS
DEPOSITED INTO THE COMMUNITY HEALTH BENEFITS TRUST SHALL BE UTILIZED
SOLELY FOR THE PURPOSE OF AWARDING GRANTS PURSUANT TO THE PROVISIONS OF
SECTION TWO HUNDRED FORTY-FOUR OF THIS TITLE.
2. THE COMPTROLLER SHALL TRACK AND MAINTAIN A RECORD OF ALL MONEYS OF
THE COMMUNITY HEALTH BENEFITS TRUST AND SHALL PROVIDE AN ANNUAL REPORT
TO THE GOVERNOR, TEMPORARY PRESIDENT OF THE SENATE AND SPEAKER OF THE
ASSEMBLY OUTLINING HOW SUCH MONEYS WERE ALLOCATED, HOW THE ALLOCATION OF
SUCH MONEYS WAS DETERMINED AND HOW SUCH MONEYS WERE ULTIMATELY SPENT.
THIS REPORT SHALL BE SUBMITTED TO THE EXECUTIVE AND LEGISLATURE NO LATER
THAN DECEMBER THIRTY-FIRST OF EACH CALENDAR YEAR. THIS REPORT SHALL BE
PUBLISHED AND MADE PUBLIC ON THE DEPARTMENT'S WEBSITE NO LATER THAN
THIRTY DAYS AFTER SUBMISSION.
§ 244-B. COMMUNITY ADVISORY BOARD ON HEALTH EQUITY. 1. A COMMUNITY
ADVISORY BOARD ON HEALTH EQUITY SHALL BE ESTABLISHED WITHIN THE DEPART-
MENT TO MAKE RECOMMENDATIONS ON THE ALLOCATION OF FUNDS RECEIVED PURSU-
ANT TO SECTION NINETY-NINE-OO OF THE STATE FINANCE LAW TO SUPPORT AND
IMPROVE HEALTH EQUITY.
2. (A) THE BOARD SHALL CONSIST OF THIRTEEN MEMBERS AND SHALL BE
APPOINTED AS FOLLOWS:
(I) FIVE MEMBERS SHALL BE APPOINTED BY THE GOVERNOR;
(II) THREE MEMBERS SHALL BE APPOINTED BY THE TEMPORARY PRESIDENT OF
THE SENATE;
(III) THREE MEMBERS SHALL BE APPOINTED BY THE SPEAKER OF THE ASSEMBLY;
(IV) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE
SENATE; AND
(V) ONE MEMBER SHALL BE APPOINTED BY THE MINORITY LEADER OF THE ASSEM-
BLY.
S. 4602--A 8
(B) FOUR MEMBERS OF THE BOARD SHALL BE REPRESENTATIVES OF THE PUBLIC
HEALTH SYSTEM; THREE MEMBERS SHALL HAVE EXPERIENCE IN THE IMPLEMENTATION
OF COMMUNITY-BASED PROGRAMS AND ORGANIZATIONS THAT HAVE A FOCUS ON
EXPANDING HEALTH FOOD ACCESS AND FOOD SECURITY; THREE MEMBERS SHALL HAVE
EXPERIENCE IN RESEARCHING OR EVALUATING PROGRAMS RELATED TO THE CONSUMP-
TION OF SUGARY BEVERAGES; AND THREE MEMBERS SHALL BE REPRESENTATIVE OF
THOSE COMMUNITIES THAT HAVE BEEN DISPROPORTIONATELY IMPACTED BY THE
EFFECTS OF SUGAR-SWEETENED BEVERAGE CONSUMPTION.
(C) FOR THE PURPOSES OF THIS SECTION, COMMUNITIES THAT HAVE BEEN
DISPROPORTIONATELY AFFECTED BY THE CONSUMPTION OF SUGAR-SWEETENED BEVER-
AGES SHALL BE DETERMINED BY THE COMMISSIONER BY REVIEWING DATA WHICH
SHALL INCLUDE, BUT IS NOT LIMITED TO, THE FOLLOWING:
(I) THE RATE OF ADULT OR CHILDHOOD OBESITY IN A COMMUNITY;
(II) THE RATE OF DIABETES IN A COMMUNITY;
(III) THE RATE OF CARDIOVASCULAR DISEASE IN A COMMUNITY;
(IV) THE RATE OF GEOGRAPHIC PROXIMITY TO HEALTHY FOOD AND BEVERAGE
OPTIONS IN A COMMUNITY;
(V) THE RATE OF DENTAL DECAY IN A COMMUNITY; AND
(VI) THE RATE OF LIVER DISEASE IN A COMMUNITY.
3. THE BOARD SHALL HAVE ITS FIRST MEETING WITHIN SIX MONTHS OF THE
EFFECTIVE DATE OF THIS SECTION AND SHALL MEET EVERY SIX MONTHS THEREAFT-
ER.
4. A MAJORITY OF THE APPOINTED VOTING MEMBERSHIP OF THE BOARD SHALL
CONSTITUTE A QUORUM, BUT NOT LESS THAN SEVEN VOTING MEMBERS SHALL BE
NECESSARY FOR ANY ACTION TAKEN BY THE BOARD.
5. THE BOARD SHALL BE STAFFED BY THE DEPARTMENT AND MAY CREATE TECHNI-
CAL ADVISORY WORKGROUPS AS DEEMED NECESSARY.
6. MEMBERS OF THE BOARD SHALL SERVE FOR A TERM OF THREE YEARS, AT
WHICH POINT SUCH MEMBERSHIP POSITION SHALL BE SUBJECT TO REAPPOINTMENT.
7. VACANCIES ON THE BOARD SHALL BE FILLED IN THE SAME MANNER AS THE
ORIGINAL APPOINTMENT UPON THE EXPIRATION OF A MEMBER'S TERM PURSUANT TO
SUBDIVISION SIX OF THIS SECTION, OR UPON THE DEATH, RESIGNATION OR
REMOVAL OF ANY SUCH MEMBER.
8. COMMUNITY ADVISORY BOARD MEMBERS SHALL SERVE WITHOUT COMPENSATION
BUT SHALL BE REIMBURSED FOR THEIR NECESSARY AND ACTUAL EXPENSES INCURRED
WHILE ENGAGED IN THE BUSINESS OF THE COMMUNITY ADVISORY BOARD.
9. THE BOARD SHALL PREPARE AN ANNUAL REPORT DETAILING THE AMOUNT OF
FUNDS IN THE HEALTH EQUITY ACCOUNT PURSUANT TO SECTION NINETY-NINE-OO OF
THE STATE FINANCE LAW, INCLUDING BUT NOT LIMITED TO ANY UNSPENT FUNDS,
RECOMMENDATIONS FOR THE USE OF ANY UNSPENT FUNDS, THE PROGRAMS AND
INITIATIVES IMPLEMENTED WITH THE ALLOCATED FUNDING, AND AN IMPACT EVALU-
ATION OF SUCH INITIATIVES. THE INITIAL REPORT SHALL BE SUBMITTED TO THE
GOVERNOR, SPEAKER OF THE ASSEMBLY AND TEMPORARY PRESIDENT OF THE SENATE
NO LATER THAN TWO YEARS FOLLOWING THE EFFECTIVE DATE OF THIS SECTION.
SUCH REPORTS SHALL ALSO BE POSTED ON THE DEPARTMENT'S WEBSITE.
§ 4. 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.
