Establishes Children's Health Promotion Fund.

S3899

SENATE, No. 3899

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 12, 2026

Sponsored by:

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Establishes Children's Health Promotion Fund.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning healthy eating for low-income children,
supplementing Title 54 of the Revised Statutes, and amending P.L.1980, c.150
and P.L.1966, c.30.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� (New section)� a.�� There
is established in the Department of the Treasury a nonlapsing, revolving fund
to be known as the "Children's Health Promotion Fund."� This fund
shall be the repository for monies provided pursuant to section 3 of P.L.1966,
c.30 (C.54:32B-3) and section 14 of P.L.1980, c.150 (C.54:32B-8.2), and any
other funds approved by the Department of Health.

���� b.��� The State Treasurer is
the custodian of the fund and all disbursements from the fund shall be made by
the State Treasurer upon vouchers signed by the Commissioner of Health or the
commissioner's designee.� The monies in the fund shall be invested and
reinvested by the Director of the Division of Investment in the Department of
the Treasury as are other trust funds in the custody of the State Treasurer, in
the manner provided by law.� Interest received on the monies in the fund shall
be credited to the fund.

���� c.���� The monies deposited in
the Children's Health Promotion Fund pursuant to subsection a. of this section
shall be distributed by the Department of Health to establish and expand
programs that:

���� (1)�� improve access to, and
encourage the consumption of, healthy, safe, and affordable foods and beverages
by low-income children;

���� (2)�� educate low-income
children and their families on the importance of proper diet and physical
activity in preventing childhood obesity; and

���� (3)�� raise public awareness
about educational, community-based, and public health approaches that promote
sound nutritional choices and an active and healthy lifestyle for low-income
children and their families.

���� 2.��� Section 3 of P.L.1966,
c.30 (C.54:32B-3) is amended to read as follows:

���� 3.��� There is imposed and
there shall be paid a tax of 7% upon:

���� (a)�� The receipts from every
retail sale of tangible personal property or a specified digital product for
permanent use or less than permanent use, and regardless of whether continued
payment is required, except as otherwise provided in this act.

���� (b)�� The receipts from every
sale, except for resale, of the following services:

���� (1)�� Producing, fabricating,
processing, printing or imprinting tangible personal property or a specified
digital product, performed for a person who directly or indirectly furnishes
the tangible personal property or specified digital product, not purchased by
him for resale, upon which such services are performed.

���� (2)�� Installing tangible
personal property or a specified digital product, or maintaining, servicing,
repairing tangible personal property or a specified digital product not held
for sale in the regular course of business, whether or not the services are
performed directly or by means of coin-operated equipment or by any other
means, and whether or not any tangible personal property or specified digital
product is transferred in conjunction therewith, except (i) such services
rendered by an individual who is engaged directly by a private homeowner or
lessee in or about his residence and who is not in a regular trade or business
offering his services to

���� (3)�� Storing all tangible personal property not held for sale in the
regular course of business; the rental of safe deposit boxes or similar space;
and the furnishing of space for storage of tangible personal property by a
person engaged in the business of furnishing space for such storage.

���� "Space for storage"
means secure areas, such as rooms, units, compartments or containers, whether
accessible from outside or from within a building, that are designated for the
use of a customer and wherein the customer has free access within reasonable
business hours, or upon reasonable notice to the furnisher of space for
storage, to store and retrieve property. Space for storage shall not include
the lease or rental of an entire building, such as a warehouse or airplane
hangar.

���� (4)�� Maintaining, servicing
or repairing real property, other than a residential heating system unit
serving not more than three families living independently of each other and
doing their cooking on the premises, whether the services are performed in or
outside of a building, as distinguished from adding to or improving such real
property by a capital improvement, but excluding services rendered by an
individual who is not in a regular trade or business offering his services to
the public, and excluding garbage removal and sewer services performed on a
regular contractual basis for a term not less than 30 days.

���� (5)�� Mail processing services
for printed advertising material, except for mail processing services in
connection with distribution of printed advertising material to out-of-State
recipients.

���� (6)�� (Deleted by amendment,
P.L.1995, c.184).

���� (7)�� Utility service provided
to persons in this State, any right or power over which is exercised in this
State.

���� (8)�� Tanning services,
including the application of a temporary tan provided by any means.

���� (9)�� Massage, bodywork or
somatic services, except such services provided pursuant to a doctor's
prescription.

���� (10)� Tattooing, including all
permanent body art and permanent cosmetic make-up applications, except such
services provided pursuant to a doctor's prescription in conjunction with
reconstructive breast surgery.

���� (11)� Investigation and
security services.

���� (12)� Information services.

���� (13)� Transportation services
originating in this State and provided by a limousine operator, as permitted by
law, except such services provided in connection with funeral services.

���� (14)� Telephone answering
services.

���� (15)� Radio subscription
services.

���� Wages, salaries and other
compensation paid by an employer to an employee for performing as an employee
the services described in this subsection are not receipts subject to the taxes
imposed under this subsection (b).

���� Services otherwise taxable
under paragraph (1) or (2) of this subsection (b) are not subject to the taxes
imposed under this subsection, where the tangible personal property or
specified digital product upon which the services were performed is delivered
to the purchaser outside this State for use outside this State.

���� (c)�� (1)� Receipts from the
sale of prepared food in or by restaurants, taverns, or other establishments in
this State, or by caterers, including in the amount of such receipts any cover,
minimum, entertainment or other charge made to patrons or customers, except for
meals especially prepared for and delivered to homebound elderly, age 60 or
older, and to disabled persons, or meals prepared and served at a group-sitting
at a location outside of the home to otherwise homebound elderly persons, age
60 or older, and otherwise homebound disabled persons, as all or part of any
food service project funded in whole or in part by government or as part of a
private, nonprofit food service project available to all such elderly or
disabled persons residing within an area of service designated by the private
nonprofit organization; and

���� (2)�� Receipts from sales of
food and beverages sold through vending machines, at the wholesale price of
such sale, which shall be defined as 70% of the retail vending machine selling
price, except sales of milk, which shall not be taxed. Nothing herein contained
shall affect other sales through coin-operated vending machines taxable
pursuant to subsection (a) above or the exemption thereto provided by section
21 of P.L.1980, c.105 (C.54:32B-8.9).

���� The tax imposed by this
subsection (c) shall not apply to food or drink which is sold to an airline for
consumption while in flight.

���� (3)�� For the purposes of this
subsection:

���� "Food and beverages sold
through vending machines" means food and beverages dispensed from a
machine or other mechanical device that accepts payment; and

���� "Prepared food"
means:

���� (i)��� A.� food sold in a
heated state or heated by the seller; or

���� B.��� two or more food
ingredients mixed or combined by the seller for sale as a single item, but not
including food that is only cut, repackaged, or pasteurized by the seller, and
eggs, fish, meat, poultry, and foods containing these raw animal foods requiring
cooking by the consumer as recommended by the Food and Drug Administration in
Chapter 3, part 401.11 of its Food Code so as to prevent food borne illnesses;
[
or
]

���� C.��� food sold with eating
utensils provided by the seller, including plates, knives, forks, spoons,
glasses, cups, napkins, or straws.� A plate does not include a container or
packaging used to transport the food;
or

����
D.�� bakery items,
including bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts,
danish, cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas
containing 30 or more grams of sugars;

provided however, that

���� (ii)�� "prepared
food" does not include the following sold without eating utensils:

���� A.�� food sold by a seller
whose proper primary NAICS classification is manufacturing in section 311,
except subsector 3118 (bakeries);

���� B.��� food sold in an unheated
state by weight or volume as a single item; or

���� C.��� bakery items, including
bread, rolls, buns, biscuits, bagels, croissants, pastries, donuts, danish,
cakes, tortes, pies, tarts, muffins, bars, cookies, and tortillas
containing
less than 30 grams of sugars
.

���� (d)�� The rent for every
occupancy of a room or rooms in a hotel in this State, except that the tax
shall not be imposed upon a permanent resident.

���� (e)�� (1) Any admission charge
to or for the use of any place of amusement in the State, including charges for
admission to race tracks, baseball, football, basketball or exhibitions,
dramatic or musical arts performances, motion picture theaters, except charges
for admission to boxing, wrestling, kick boxing or combative sports
exhibitions, events, performances or contests which charges are taxed under any
other law of this State or under section 20 of P.L.1985, c.83 (C.5:2A-20), and,
except charges to a patron for admission to, or use of, facilities for sporting
activities in which such patron is to be a participant, such as bowling alleys
and swimming pools.� For any person having the permanent use or possession of a
box or seat or lease or a license, other than a season ticket, for the use of a
box or seat at a place of amusement, the tax shall be upon the amount for which
a similar box or seat is sold for each performance or exhibition at which the
box or seat is used or reserved by the holder, licensee or lessee, and shall be
paid by the holder, licensee or lessee.

���� (2)�� The amount paid as
charge of a roof garden, cabaret or other similar place in this State, to the
extent that a tax upon such charges has not been paid pursuant to subsection
(c) hereof.

���� (f)�� (1) The receipts from
every sale, except for resale, of intrastate, interstate, or international
telecommunications services and ancillary services sourced to this State in
accordance with section 29 of P.L.2005, c.126 (C.54:32B-3.4).

���� (2)�� (Deleted by amendment,
P.L.2008, c.123)

���� (g)�� (Deleted by amendment,
P.L.2008, c.123)

���� (h)�� Charges in the nature of
initiation fees, membership fees or dues for access to or use of the property
or facilities of a health and fitness, athletic, sporting or shopping club or
organization in this State, except for: (1) membership in a club or organization
whose members are predominantly age 18 or under; and (2) charges in the nature
of membership fees or dues for access to or use of the property or facilities
of a health and fitness, athletic, sporting or shopping club or organization
that is exempt from taxation pursuant to paragraph (1) of subsection (a) of
section 9 of P.L.1966, c.30 (C.54:32B-9), or that is exempt from taxation
pursuant to paragraph (1) or (2) of subsection (b) of section 9 of P.L.1966,
c.30 and that has complied with subsection (d) of section 9 of P.L.1966, c.30.

���� (i)��� The receipts from
parking, storing or garaging a motor vehicle, excluding charges for the
following: residential parking; employee parking, when provided by an employer
or at a facility owned or operated by the employer; municipal parking, storing
or garaging; receipts from charges or fees imposed pursuant to section 3 of
P.L.1993, c.159 (C.5:12-173.3) or pursuant to an agreement between the Casino
Reinvestment Development Authority and a casino operator in effect on the date
of enactment of P.L.2007, c.105; and receipts from parking, storing or garaging
a motor vehicle subject to tax pursuant to any other law or ordinance.

For the purposes of this
subsection, "municipal parking, storing or garaging" means any motor
vehicle parking, storing or garaging provided by a municipality or county, or a
parking authority thereof.

����
(j)��� Notwithstanding the
provisions of this section, the tax imposed on all bakery items listed in
sub-subparagraph (D) of subparagraph (i) of paragraph (3) of this section, and
any interest or penalties imposed by the Director of the Division of Taxation
relating to that tax, shall be deposited by the State Treasurer into the
Children's Health Promotion Fund established pursuant to section 1 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill).�

(cf: P.L.2017, c.27, s.1)

���� 3.��� Section 14 of P.L.1980,
c.150 (C.54:32B-8.2) is amended to read as follows

���� 14.� a.� Receipts from the
following are exempt from the tax imposed under the "Sales and Use Tax
Act:" sales of food and food ingredients and dietary supplements, sold for
human consumption off the premises where sold but not including (1) candy, and
(2) soft drinks, all of which shall be subject to the retail sales and
compensating use taxes.

���� b.��� The exemption in this
section is not applicable to prepared food subject to tax under subsection (c)
of section 3 of the Sales and Use Tax Act (C.54:32B-3).

���� c.���� As used in this
section:

���� "Candy" means a
preparation of sugar, honey, or other natural or artificial sweeteners in
combination with chocolate, fruits, nuts or other ingredients or flavorings in
the form of bars, drops, or pieces
[
.
"Candy" does not include
]
,
and includes
any preparation containing flour or requiring refrigeration;

���� "Dietary supplement"
means any product, other than tobacco, intended to supplement the diet, that:

���� (1)�� contains one or more of
the following dietary ingredients: a vitamin; a mineral; an herb or other
botanical; an amino acid; a dietary substance for use by humans to supplement
the diet by increasing the total dietary intake; a concentrate, metabolite, constituent,
extract, or combination of any ingredient described herein;

���� (2)�� is intended for
ingestion in tablet, capsule, powder, softgel, gelcap, or liquid form, or if
not intended for ingestion in such a form, is not represented as conventional
food and is not represented for use as a sole item of a meal or of the diet;
and

���� (3)�� is required to be
labeled as a dietary supplement, identifiable by the "Supplemental
Facts" box found on the label and as required pursuant to 21 C.F.R.
s.101.36;

���� "Food and food
ingredients" means substances, whether in liquid, concentrated, solid,
frozen, dried, or dehydrated form, that are sold for ingestion or chewing by
humans and are consumed for their taste or nutritional value.� "Food and
food ingredients" does not include alcoholic beverages or tobacco;

���� "Soft drinks" means
non-alcoholic beverages that contain natural or artificial sweeteners.
"Soft drinks" does not include beverages that contain: milk or milk
products; soy, rice or similar milk substitutes; or greater than fifty percent
of vegetable or fruit juice by volume; and

���� "Tobacco" means
cigarettes, cigars, chewing or pipe tobacco, or any other item that contains
tobacco.

����
d.��� Notwithstanding the
provisions of this section, in the case of candy and soft drinks containing 30
or more grams of sugar, the tax on such items, and any interest or penalties
imposed by the Director of the Division of Taxation relating to that tax, shall
be deposited by the State Treasurer into the Children's Health Promotion Fund
established pursuant to section 1 of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill).

(cf: P.L.2008, c.123, s.7)

���� 4.��� (New section).� The
Commissioner of Health, pursuant to the "Administrative Procedure
Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and
regulations necessary to effectuate the purposes of this act.�

���� 5.��� This act shall take
effect immediately.

STATEMENT

���� This bill establishes the
"Children's Health Promotion Fund" in the Department of the
Treasury.� The fund would be a nonlapsing, revolving fund, the repository for
the funds provided pursuant to section 3 of P.L.1966, c.30 (C.54:32B-3),
section 14 of P.L.1980, c.150 (C.54:32B-8.2), and any other funds approved by
the Department of Health (DOH).

���� The State Treasurer would be
the custodian of the Children's Health Promotion Fund, and interest received on
the monies in the fund would be credited to the fund.� The monies in the fund
would be provided through the collection of taxes imposed on bakery items,
candy, and soft drinks containing 30 or more grams of sugar.

���� The monies deposited in the
fund pursuant to the provisions of the bill would be distributed by DOH to
establish and expand programs that: improve access to, and encourage the
consumption of, healthy, safe, and affordable foods and beverages by low-income
children; educate low-income children and their families on the importance of
proper diet and physical activity in preventing childhood obesity; and raise
public awareness about educational, community-based, and public health
approaches that promote sound nutritional choices and an active and healthy
lifestyle for low-income children and their families.

���� The bill amends section 3 of
P.L.1966, c.30 (C.54:32B-3) and section 14 of P.L.1980, c.150 (C.54:32B-8.2) to
require taxes imposed on bakery items, candy, and soft drinks containing 30 or
more grams of sugar, and any interest or penalties imposed by the Director of
the Division of Taxation relating to the taxes, to be deposited by the State
Treasurer into the Children's Health Promotion Fund.�

���� The bill also amends section 3
of P.L.1966, c.30 (C.54:32B-3) to require that bakery items (bread, rolls,
buns, biscuits, bagels, croissants, pastries, donuts, danish, cakes, tortes,
pies, tarts, muffins, bars, cookies, and tortillas) containing 30 or more grams
of sugars be subject to sales tax. �Bakery items containing less than 30 grams
of sugar would continue to be exempt from sales tax, as currently provided by
law.

���� Finally, the bill amends
section 14 of P.L.1980, c.150 (C.54:32B-8.2) to mandate that receipts for the
sale of candy prepared containing flour or candy requiring refrigeration and
containing 30 or more grams of sugar would be subject to sales tax.