S T A T E O F N E W Y O R K
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2978
2013-2014 Regular Sessions
I N A S S E M B L Y
January 22, 2013
___________
Introduced by M. of A. ORTIZ -- read once and referred to the Committee
on Ways and Means
AN ACT to amend the tax law, in relation to increasing the tax on alco-
hol; to amend the state finance law, in relation to creating the alco-
holism and substance abuse prevention and treatment fund; and to
require an annual report and a task force for the alcoholism and
substance abuse prevention and treatment fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. 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 para-
graph (f) as amended by chapter 508 of the laws of 1993, are amended and
a new paragraph (h) is added to read as follows:
(a) [Fourteen cents] ONE DOLLAR AND EIGHTY CENTS per gallon upon
beers;
(b) [Thirty cents] TWO DOLLARS AND SIXTY-THREE AND NINETY-TWO
HUNDREDTHS 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 and seventy-nine] FIFTY-TWO AND
EIGHTY-FOUR hundredths cents per gallon;
(c) [Thirty cents] TWO DOLLARS AND SIXTY-THREE AND NINETY-TWO
HUNDREDTHS CENTS per gallon upon artificially carbonated sparkling
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 and seventy-nine] FIFTY-TWO AND EIGHTY-FOUR
hundredths cents per gallon;
(d) [Thirty cents] TWO DOLLARS AND SIXTY-THREE AND NINETY-TWO
HUNDREDTHS CENTS per gallon upon natural sparkling wines, except natural
sparkling cider containing more than three and two-tenths per centum of
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD06855-01-3
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alcohol by volume, upon which the tax shall be [three and seventy-nine]
FIFTY-TWO AND EIGHTY-FOUR hundredths cents per gallon;
(e) [Sixty-seven] ONE DOLLAR AND TWENTY-THREE 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] TWO DOLLARS and [seventy] TWENTY-SIX 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, SEVENTY
PERCENT OF TAXES, INTEREST, PENALTIES AND FEES COLLECTED OR RECEIVED BY
THE COMMISSIONER UNDER PARAGRAPHS (A) THROUGH (F) OF THIS SECTION SHALL
BE ALLOCATED TO THE ALCOHOLISM AND SUBSTANCE ABUSE PREVENTION AND TREAT-
MENT FUND PURSUANT TO SUBDIVISION TWO OF SECTION NINETY-SEVEN-LLLL OF
THE STATE FINANCE LAW.
S 2. Section 424 of the tax law is amended by adding a new subdivision
6 to read as follows:
6. THE TAX IMPOSED BY SUBDIVISION ONE OF THIS SECTION SHALL BE
ADJUSTED EFFECTIVE JULY FIRST OF EACH YEAR BY APPLYING TO SUCH TAX AN
UPWARD OR DOWNWARD ADJUSTMENT, AS THE CASE MAY BE, USING AS THE FACTOR
FOR SUCH ADJUSTMENT THE PERCENTAGE AMOUNT BY WHICH THE ALL ITEMS CONSUM-
ER PRICE INDEX FOR ALL URBAN CONSUMERS (CPI-U) AS PREPARED BY THE UNITED
STATES DEPARTMENT OF LABOR FOR THE FIRST CALENDAR QUARTER OF SUCH YEAR
EXCEEDS OR IS LESS THAN SUCH INDEX FOR THE FIRST CALENDAR QUARTER OF THE
PROCEEDING YEAR. THE COMMISSIONER SHALL PROMULGATE REGULATIONS SPECIFY-
ING THE METHODOLOGY TO BE USED TO DETERMINE THE GOODS AND INVENTORY TO
WHICH THE INCREASE SHALL APPLY EFFECTIVE EACH JULY FIRST, EXCEPT THAT,
FOR AN INCREASE IN THE TAX PURSUANT TO THIS SUBDIVISION, SUCH REGU-
LATIONS SHALL APPLY ONLY IF SUCH INCREASE IS GREATER THAN TEN PERCENT.
S 3. The state finance law is amended by adding a new section 97-llll
to read as follows:
A. 2978 3
S 97-LLLL. THE ALCOHOLISM AND SUBSTANCE ABUSE PREVENTION AND TREATMENT
FUND. 1. THERE IS HEREBY ESTABLISHED IN JOINT CUSTODY OF THE COMP-
TROLLER AND THE COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN
AS THE ALCOHOLISM AND SUBSTANCE ABUSE PREVENTION AND TREATMENT FUND.
2. SUCH FUND SHALL CONSIST OF ALL MONEYS APPROPRIATED FOR THE PURPOSE
OF SUCH FUND, TAXES, INTEREST, PENALTIES AND FEES COLLECTED AND RECEIVED
BY THE COMMISSIONER OF TAXATION AND FINANCE PURSUANT TO PARAGRAPH (H) OF
SUBDIVISION ONE OF SECTION FOUR HUNDRED TWENTY-FOUR OF THE TAX LAW, AND
ALL MONEYS REQUIRED BY THE PROVISIONS OF THIS SECTION OR ANY OTHER LAW
TO BE PAID INTO OR CREDITED TO THIS FUND.
3. MONEYS WITHIN THE ALCOHOLISM AND SUBSTANCE ABUSE PREVENTION AND
TREATMENT FUND, UPON APPROPRIATION BY THE LEGISLATURE, SHALL BE AVAIL-
ABLE TO THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE
SERVICES WHO SHALL DISTRIBUTE FIFTY PERCENT OF THE FUND FOR PREVENTION
PROGRAMS, INCLUDING, BUT NOT LIMITED TO, LOCAL SCHOOL-BASED AND COMMUNI-
TY PROGRAMS WHICH PROVIDE ALCOHOL AND CHEMICAL DEPENDENCE PREVENTION AND
EDUCATION SERVICES, FORTY-FIVE PERCENT OF THE FUND FOR THE OPERATION OF
ALCOHOL AND SUBSTANCE ABUSE TREATMENT FACILITIES, ALCOHOL AND SUBSTANCE
ABUSE RESIDENTIAL TREATMENT FACILITIES, AND FIVE PERCENT OF THE FUND TO
THE STATE POLICE FOR DWI LAW ENFORCEMENT PURPOSES.
4. THE MONEYS, WHEN ALLOCATED, SHALL BE PAID OUT OF THE FUND ON THE
AUDIT AND WARRANT OF THE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED
BY THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE
SERVICES, OR BY AN OFFICER OR EMPLOYEE OF THE OFFICE OF ALCOHOLISM AND
SUBSTANCE ABUSE SERVICES DESIGNATED BY SUCH COMMISSIONER.
5. THE COMMISSIONER OF THE OFFICE OF ALCOHOLISM AND SUBSTANCE ABUSE
SERVICES SHALL PROMULGATE RULES AND REGULATIONS PERTAINING TO THE ALLO-
CATION OF MONEYS FROM THIS FUND.
S 4. The commissioner of taxation and finance in consultation with the
commissioner of the office of alcoholism and substance abuse services,
shall prepare a report on the spending and allocation of funds of the
alcoholism and substance abuse prevention and treatment fund. Such
report shall include, but not be limited to, the entities and programs
that receive monies from said fund, the amount of funding for each enti-
ty or program that is received, the purpose of said programs, and a
proposed budget of said fund for the upcoming year.
S 5. 1. A task force for the alcoholism and substance abuse prevention
and treatment fund is hereby established to develop eligibility guide-
lines and make recommendations regarding the funding of prevention and
treatment programs pursuant to section ninety-seven-llll of the state
finance law.
2. The alcoholism and substance abuse prevention and treatment task
force shall consist of 15 members. The commissioner of the office of
alcoholism and substance abuse services shall be the chair of such task
force and a nonvoting member. The remaining 14 members shall be
appointed as follows: eight members by the governor, two members by the
temporary president of the senate, two members by the speaker of the
assembly, one member by the minority leader of the senate, and one
member by the minority leader of the assembly. All members shall be
appointed only if they have demonstrated an active interest in the
prevention and treatment of alcohol and substance abuse generally, with
at least four of the eight members appointed by the governor, and one of
the two members of the temporary president of the senate, and speaker of
the assembly, being actively engaged in the prevention and treatment of
people suffering from alcoholism and substance abuse. Vacancies in the
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membership of such task force shall be filled in the manner provided for
original appointments.
3. The members of the task force for the alcoholism and substance
abuse prevention and treatment fund shall receive no compensation for
their services, but may be allowed their actual and necessary expenses
incurred in performing their duties pursuant to this act.
4. To the maximum extent feasible, the task force for the alcoholism
and substance abuse prevention and treatment fund shall be entitled to
request and receive, and shall utilize and be provided with such facili-
ties, resources and data of any court, department, division, board,
bureau, commission or agency of the state or any political subdivision
thereof as it may reasonably request to properly carry out its powers
and duties.
S 6. If any clause, sentence, paragraph, subdivision, section or part
of this act shall be adjudged by any court of competent jurisdiction to
be invalid, such judgment shall not affect, impair, or invalidate the
remainder thereof, but shall be confined in its operation to the clause,
sentence, paragraph, subdivision, section or part thereof directly
involved in the controversy in which such judgment shall have been
rendered. It is hereby declared to be the intent of the legislature that
this act would have been enacted even if such invalid provisions had not
been included herein.
S 7. This act shall take effect April 1, 2013, provided, however, that
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 commissioner of taxation and
finance may take any steps necessary to implement this act prior to its
effective date.