2002-02-19                     Senate Journal                      Page 2228
was read the first time and referred to the State Affairs Committee.                                
                                                                                                    
SB 298                                                                                            
SENATE BILL NO. 298 BY THE SENATE RULES COMMITTEE                                                   
BY REQUEST OF THE GOVERNOR, entitled:                                                               
                                                                                                    
          "An Act relating to certain licenses for the sale of                                      
          tobacco products; relating to tobacco taxes and sales                                     
          and cigarette tax stamps; relating to provisions                                          
          making certain cigarettes contraband and subject to                                       
          seizure and forfeiture; relating to certain crimes,                                       
          penalties, and interest concerning tobacco taxes and                                      
          sales; relating to notification regarding a cigarette                                     
          manufacturer's noncompliance with the tobacco                                             
          product Master Settlement Agreement or related                                            
          statutory provisions and to confiscation of the                                           
          affected cigarettes; and providing for an effective                                       
          date."                                                                                    
                                                                                                    
was read the first time and referred to the Labor and Commerce,                                     
Judiciary and Finance Committees.                                                                   
                                                                                                    
The following fiscal information was published today:                                               
 Fiscal Note No. 1, Department of Revenue                                                           
                                                                                                    
Governor's transmittal letter dated February 13:                                                    
                                                                                                    
Dear President Halford:                                                                             
                                                                                                    
This bill I am transmitting today is designed to reduce the importation                             
of black market cigarettes into Alaska by requiring each pack of                                    
cigarettes sold in the state be clearly marked with a tobacco tax stamp.                            
                                                                                                    
On October 1, 1997, Alaska increased its tobacco tax rate on cigarettes                             
from 29 cents per pack to $1 per pack. The impetus for the tax                                      
increase was to promote public health. The Legislature and the                                      
Administration believed that if cigarettes were more expensive, fewer                               
people would smoke. Our particular hope was that the increase in cost                               
would cause fewer young people to take up the unhealthy habit in the                                
first place.