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H.322

Introduced by Representatives Alfano of Calais, Aswad of Burlington, Atkins of Winooski, Bohi of Hartford, Connell of Warren, Cross of Winooski, Darrow of Newfane, Doyle of Richmond, Emmons of Springfield, Fisher of Lincoln, Heath of Westford, Jordan of Middlesex, Kainen of Hartford, Kitzmiller of Montpelier, Larson of Burlington, Lippert of Hinesburg, Milkey of Brattleboro, Osman of Plainfield, Reese of Pomfret, Sweaney of Windsor and Vincent of Waterbury

Referred to Committee on

Date:

Subject: Taxation; beer and wine gallonage tax; health; substance abuse treatment

Statement of purpose: This bill proposes to increase the tax on beer by two cents per can, with the new revenue used to fund substance abuse treatment programs.

AN ACT RELATING TO SUBSTANCE ABUSE TREATMENT AND BEER GALLONAGE TAX

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 7 V.S.A. § 421(a) and (e) are amended to read:

§ 421. TAX ON MALT AND VINOUS BEVERAGES

(a) Every bottler and wholesaler shall pay to the commissioner of taxes the sum of *[twenty-six and one-half]* 48 and eight-tenths cents per gallon for every gallon or its equivalent of malt beverage containing not more than six percent of alcohol by volume at *[sixty]* 60 degrees fahrenheit sold by them to retailers in the state and the sum of *[fifty-five]* 55 cents per gallon for each gallon of malt beverage containing more than six percent and not more than eight percent of alcohol by volume at *[sixty]* 60 degrees fahrenheit and each gallon of vinous beverages sold by them to retailers in the state and shall also pay to the liquor control board all fees for bottler’s and wholesaler’s licenses.

(e) A person or corporation failing to pay the tax when due, or failing to make returns as required by this section shall be subject to and governed by the provisions of sections 3202, 3203, 5868, *[5869,]* 5873 *[and 5875]*, 5883, 5884 and 5885 of Title 32.

Sec. 2. TREATMENT AND PREVENTION ADVISORY COMMITTEE; CREATION

The treatment and prevention advisory committee is created and shall be composed of geographically-diverse members, to include: a prevention specialist, an adult treatment provider, a child treatment provider, a representative of the Student Assistance Program, a representative of the department of health, a representative of the law enforcement community, a representative of the recovery community, a representative of the advocacy community, one member of the house of representatives, and one member of the senate.

Sec. 3. 7 V.S.A. § 421(g) is added to read:

(g) An amount equal to 45 and seven-tenths percent of the revenue from the tax under this section on malt beverage containing not more than six percent of alcohol shall be transferred from the general fund to the department of health. These funds shall be used by the office of alcohol and drug abuse programs in a manner to be determined by the commissioner of health in collaboration with the treatment and prevention advisory committee. These funds shall be used for substance abuse treatment programs as follows:

(1) An amount equal to 14.3 percent for adolescent substance abuse treatment.

(2) An amount equal to 17.8 percent for the New Directions Program.

(3) An amount equal to 17.8 percent for Opiate Addiction Treatment programs.

(4) An amount equal to 14.3 percent for adult treatment programs.

(5) An amount equal to 35.8 percent to the department of education for use in the school substance abuse programs.

Sec. 3. EFFECTIVE DATE

This act shall apply to sales of malt beverages on and after June 1, 2001.