2023 -- H 6387

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LC002954

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2023

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A N   A C T

     RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND

COMPUTATION

     Introduced By: Representatives Vella-Wilkinson, Batista, Casimiro, Perez, McEntee,
Diaz, and Noret

     Date Introduced: May 10, 2023

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Chapter 44-18 of the General Laws entitled "Sales and Use Taxes — Liability

and Computation" is hereby amended by adding thereto the following section:

     44-18-18.2. Alcohol Tax.

     (a) This section shall be known and may be cited as "The Alcohol Treatment Support Act".

     (b) The purpose of this section is to establish a tax on alcohol to fund drug and alcohol

treatment centers in the State of Rhode Island and to provide financial support for individuals

seeking treatment for drug and alcohol addiction.

     (c) There is hereby imposed a sales tax on all alcohol sold within the State of Rhode Island

at the rate of one percent.

     (d) The tax imposed under subsection (c) of this section shall be paid by the distributor or

seller of the alcohol, and shall be collected at the time of sale.

     (e) The tax imposed under subsection (c) of this section shall be in addition to any other

taxes imposed on the sale of all alcohol.

     (f)(1) The proceeds of the alcohol tax imposed under subsection (c) of this section shall be

deposited into the drug and alcohol treatment support fund, established as a special fund to provide

financial support for individuals seeking treatment for drug and alcohol addiction.

     (2) The funds deposited into the drug and alcohol treatment support fund shall be allocated

to drug and alcohol treatment centers in this state.

     (g)(1) The State of Rhode Island shall establish a seven (7) member board of Rhode Island

citizens who are not state employees nor state office holders to administer the fund.

     (2) The citizen board shall serve as a dedicated and responsible steward of the treatment

fund, ensuring that it is being used to provide high-quality and effective drug and alcohol treatment

services to individuals in need.

     (3) The citizen board shall oversee the allocation of funds from the treatment fund to

various treatment centers and organizations that provide drug and alcohol treatment services to

individuals in need.

     (4) The citizen board shall regularly evaluate the performance and effectiveness of the

treatment centers that receive funding from the treatment fund. This evaluation may include

monitoring the quality of care provided, patient satisfaction rates, and treatment outcomes.

     (5) The citizen board shall establish eligibility criteria for individuals seeking financial

assistance from the treatment fund. These criteria may include criteria related to income, residency,

and severity of drug and alcohol addiction.

     (6) The citizen board shall review and either approve or deny applications from treatment

centers seeking financial assistance from the treatment fund. This review may involve verifying

eligibility criteria, evaluating the proposed treatment plan, and determining the amount of financial

assistance to be provided.

     (h) The citizen board shall ensure that the treatment fund is being managed in a responsible

and transparent manner. This oversight may involve reviewing financial statements, monitoring

expenses, and ensuring that funds are being used for their intended purposes.

     (i) The citizen board shall engage in public outreach and education efforts to raise

awareness about the treatment fund and its availability to individuals in need of drug and alcohol

treatment. This outreach may include developing informational materials, hosting community

events, and collaborating with local organizations to reach underserved populations.

     (j) The citizen board shall provide regular reports to all relevant government agencies

regarding the status of the treatment fund, including the allocation of funds, treatment outcomes,

and any challenges faced by the board in fulfilling its duties.

     (k)(1) To be eligible for financial support from the drug and alcohol treatment support fund,

an individual must be seeking treatment for drug or alcohol addiction at a treatment center that

receives funds from the support fund.

     (2) The financial support provided by the drug and alcohol treatment support fund shall be

used to cover the cost of treatment, including, but not limited to, medication, therapy and other

related services.

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     (l)(1) The drug and alcohol treatment centers shall be operated by qualified nonprofit or

for-profit organizations that specialize in drug and alcohol treatment.

     (2) The drug and alcohol treatment centers shall provide treatment services to individuals

who are seeking treatment for drug or alcohol addiction.

     (3) The department of health shall establish minimum standards, rules and regulations for

the operation of the drug and alcohol treatment centers.

     (m)(1) The distributor or seller of alcohol shall report and remit the tax imposed under

subsection (c) of this section to the department of revenue on a monthly basis.

     (2) The department of revenue shall audit the distributor or seller of alcohol to ensure

compliance with this chapter at least once per calendar year.

     (n) Severability. If any provision of this section or the application thereof to any person or

circumstances is held invalid, the invalidity shall not affect other provisions or applications of this

section which can be given effect without the invalid provision or application, and to this end, the

provisions of this section are severable.

     SECTION 2. This act shall take effect on January 1, 2024.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO TAXATION -- SALES AND USE TAXES -- LIABILITY AND

COMPUTATION

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     This act would establish the drug and alcohol treatment support fund and provide funding

by imposing a one percent sales tax on all alcohol sold in Rhode Island by a distributor or seller.

The fund would be administered with funds disbursed by a seven (7) member citizens board to drug

and alcohol treatment centers providing treatment to individuals in need.

     This act would take effect on January 1, 2024.

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