S T A T E O F N E W Y O R K
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6436
2019-2020 Regular Sessions
I N A S S E M B L Y
March 7, 2019
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Introduced by M. of A. CRESPO, GOODELL, HEVESI, JAFFEE, PICHARDO,
RIVERA, STIRPE -- Multi-Sponsored by -- M. of A. COOK, CROUCH, FINCH,
LAWRENCE, LUPARDO, MOSLEY, SIMON, THIELE -- read once and referred to
the Committee on Ways and Means
AN ACT to amend the tax law and the state finance law, in relation to
allocating certain revenue to the tobacco use prevention and control
program fund for programs to help smokers quit and to keep children
from smoking
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Statement of legislative intent. The legislature finds
that:
New York state has raised over twelve billion dollars in tobacco
revenues over the past seven years, yet only three and one-half percent
of these revenues have been spent on the state's Tobacco Use Prevention
and Control Program.
In the year 2013, New York state spent only sixteen percent of the
amount recommended by the Centers for Disease Control and Prevention on
tobacco control. New York state was once a leader in tobacco control
support spending, but now ranks twenty-first in the United States.
From the years 2007-2013, funding for the New York State Tobacco Use
Prevention and Control Program was cut by more than half. This inade-
quate funding level for the program stands in contrast to promises made
in 1998 by public officials to invest state dollars earned from the
Tobacco Master Settlement Agreement in tobacco control programs.
The Tobacco Master Settlement Agreement states that its purpose is to
"achieve for the Settling States and their citizens significant funding
for the advancement of public health" and "the implementation of impor-
tant tobacco-related public health measures."
When more adequately funded, the State Tobacco Use Prevention and
Control Program achieved successes in the effort to curb tobacco use.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD10199-01-9
A. 6436 2
Teenage and adult tobacco use rates had fallen faster in New York state
than in the United States as a whole.
Limited funding prevents the State Tobacco Use Prevention and Control
Program from reaching the most vulnerable populations with the highest
rates of smoking, individuals with limited income. A recent analysis by
the American Cancer Society of New York and New Jersey found that lung
cancer rates in upstate New York are higher than the national average.
Tobacco use takes a terrible toll on New York. In the year 2009, twen-
ty-five thousand four hundred lives were prematurely lost due to tobacco
use, with an estimated nine thousand six hundred ten of those deaths
resulting from cancer. Tobacco costs New Yorkers over eight billion
dollars in health care costs, including nearly two billion seven hundred
thousand dollars in Medicaid expenditures.
The legislature therefore declares that New York state should fulfill
the promise made by state policy makers at the time of the State Tobacco
Master Settlement Agreement to use tobacco revenues for programs to help
smokers quit and to keep children from smoking. The legislature further
declares that funding for the Tobacco Use Prevention and Control Program
should be incrementally increased on an annual basis over the next ten
years to reach the level recommended by the United States Centers for
Disease Control and Prevention that would be current by the year 2029.
§ 2. Section 482 of the tax law, as amended by section 2 of part T of
chapter 61 of the laws of 2011, is amended to read as follows:
§ 482. Deposit and disposition of revenue. (a) All taxes, fees, inter-
est and penalties collected or received by the commissioner under this
article and article twenty-A of this chapter shall be deposited and
disposed of pursuant to the provisions of section one hundred seventy-
one-a of this chapter, AS ADDED BY CHAPTER SIXTY-NINE OF THE LAWS OF
NINETEEN HUNDRED SEVENTY-EIGHT. (b) From the taxes, interest and penal-
ties collected or received by the commissioner under sections four
hundred seventy-one and four hundred seventy-one-a of this article,
effective on and after March first, two thousand, forty-nine and fifty-
five hundredths, and effective on and after February first, two thousand
two, forty-three and seventy hundredths; and effective on and after May
first, two thousand two, sixty-four and fifty-five hundredths; and
effective on and after April first, two thousand three, sixty-one and
twenty-two hundredths percent; and effective on and after June third,
two thousand eight, seventy and sixty-three hundredths percent; and
effective on and after July first, two thousand ten, seventy-six percent
collected or received under those sections must be deposited to the
credit of the tobacco control and insurance initiatives pool to be
established and distributed by the commissioner of health in accordance
with section twenty-eight hundred seven-v of the public health law.
NOTWITHSTANDING THE PROVISIONS OF SECTION ONE HUNDRED SEVENTY-ONE-A OF
THIS CHAPTER, AS ADDED BY CHAPTER SIXTY-NINE OF THE LAWS OF NINETEEN
HUNDRED SEVENTY-EIGHT, FROM THE TAXES COLLECTED OR RECEIVED BY THE
COMMISSIONER PURSUANT TO THIS ARTICLE, EFFECTIVE ON AND AFTER APRIL
FIRST, TWO THOUSAND TWENTY-ONE, FIFTY-TWO MILLION DOLLARS AND, EFFECTIVE
FROM APRIL FIRST, TWO THOUSAND TWENTY-TWO UNTIL APRIL FIRST, TWO THOU-
SAND TWENTY-NINE AT LEAST FIVE PERCENT SHALL ANNUALLY BE ADDITIONALLY
CREDITED TO AND DEPOSITED IN THE TOBACCO USE PREVENTION AND CONTROL
PROGRAM FUND ESTABLISHED PURSUANT TO SECTION EIGHTY-SIX OF THE STATE
FINANCE LAW, PROVIDED HOWEVER, THAT EFFECTIVE APRIL FIRST, TWO THOUSAND
THIRTY THE TOTAL AMOUNT CREDITED TO AND DEPOSITED IN THE TOBACCO USE
PREVENTION AND CONTROL PROGRAM FUND ESTABLISHED PURSUANT TO SECTION
EIGHTY-SIX OF THE STATE FINANCE LAW SHALL NOT BE LESS THAN THE AMOUNT
A. 6436 3
RECOMMENDED BY THE UNITED STATES CENTERS FOR DISEASE CONTROL AND
PREVENTION ON SUCH DATE.
§ 3. The state finance law is amended by adding a new section 86 to
read as follows:
§ 86. TOBACCO USE PREVENTION AND CONTROL PROGRAM FUND. 1. THERE IS
HEREBY ESTABLISHED IN THE JOINT CUSTODY OF THE STATE COMPTROLLER AND THE
COMMISSIONER OF TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE
"TOBACCO USE PREVENTION AND CONTROL PROGRAM FUND".
2. THE TOBACCO USE PREVENTION AND CONTROL PROGRAM FUND SHALL CONSIST
OF MONEYS APPROPRIATED THERETO, AND FUNDS TRANSFERRED FROM ANY OTHER
FUND OR SOURCES INCLUDING TAX REVENUE REQUIRED TO BE DEPOSITED THEREIN
PURSUANT TO SECTION FOUR HUNDRED EIGHTY-TWO OF THE TAX LAW.
3. THE MONEYS RECEIVED BY SUCH FUND SHALL BE EXPENDED PURSUANT TO
APPROPRIATION ONLY FOR THE PURPOSES OF IMPLEMENTING THE TOBACCO USE
PREVENTION AND CONTROL PROGRAM PURSUANT TO SECTION THIRTEEN HUNDRED
NINETY-NINE-II OF THE PUBLIC HEALTH LAW.
§ 4. This act shall take effect April 1, 2021. 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.