Legislature(2003 - 2004)

2004-06-24 House Journal

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2004-06-24                     House Journal                      Page 4480
SB 1001                                                                                           
The following was read the second time:                                                             
                                                                                                    
     SENATE BILL NO. 1001                                                                           
     "An Act relating to taxes on cigarettes and tobacco products, to                               
     tax stamps on cigarettes, to forfeiture of cigarettes and of property                          
     used in the manufacture, transportation, possession, or sale of                                
     unstamped cigarettes, to accounting for and use of part of the                                 
     proceeds of the additional cigarette tax, and to licenses and                                  
     licensees under the Cigarette Tax Act; relating to unfair cigarette                            
     sales; and providing for an effective date."                                                   
                                                                                                    
with the:                                                     Journal Page                          
                                                                                                    
 FIN RPT HCS(FIN) NT 2DP 2DNP 6NR 1AM                                 4478                          
 FN4: ZERO(H.FIN/VARIOUS DEPTS)                                       4479                          
                                                                                                    
Representative Coghill moved and asked unanimous consent that the                                   
following committee substitute be adopted in lieu of the original bill:                             
                                                                                                    
     HOUSE CS FOR SENATE BILL NO. 1001(FIN)                                                         
     "An Act relating to restrictions on shipping or transporting                                   
     cigarettes; relating to taxes on cigarettes and tobacco products, to                           
     tax stamps on cigarettes, to forfeiture of cigarettes and of property                          
     used in the manufacture, transportation, facilitation of                                       
     transportation, possession, offering for sale, or sale of unstamped                            
     cigarettes, to accounting for and use of part of the proceeds of the                           
     additional cigarette tax, and to licenses and licensees under the                              

2004-06-24                     House Journal                      Page 4481
     Cigarette Tax Act; relating to unfair cigarette sales; relating to                             
     supersedeas bonds in certain tobacco-related litigation; amending                              
     Rules 204 and 205, Alaska Rules of Appellate Procedure; and                                    
     providing for an effective date."                                                              
                                                                                                    
There being no objection, it was so ordered.                                                        
                                                                                                    
Amendment No. 1 was offered  by Representatives Williams and                                         
Meyer:                                                                                              
                                                                                                    
Page 5, line 18:                                                                                    
 Delete "June 30, 2004"                                                                             
 Insert "December 31, 2004"                                                                         
                                                                                                    
Page 15, line 7:                                                                                    
 Delete "June 30, 2004"                                                                             
 Insert "December 31, 2004"                                                                         
                                                                                                    
Representative Williams moved and asked unanimous consent that                                      
Amendment No. 1 be adopted.  There being no objection, it was so                                    
ordered.                                                                                            
                                                                                                    
Amendment No. 2 was offered  by Representative Harris:                                               
                                                                                                    
Page 1, line 7, following "litigation;" (title amendment):                                        
 Insert "relating to the tobacco Master Settlement Agreement;"                                    
                                                                                                    
Page 14, line 20:                                                                                   
 Insert a new bill sections to read:                                                                
   * Section 38.  AS 45.53.020(b) is amended to read:                                             
         (b)  A tobacco product manufacturer that places money into                                 
     escrow under (a)(2) of this section is entitled to receive the interest                        
     or other appreciation on such money as earned.  Such money itself                              
     shall be released from escrow only under the following                                         
     circumstances:                                                                                 
              (1)  to pay a judgment or settlement on a released claim                              
     brought against such tobacco product manufacturer by this state or                             
     a releasing party located or residing in this state; the funds shall be                        
     released from escrow under this paragraph in the order in which                                
     they were placed into escrow and only to the extent and at the time                            

2004-06-24                     House Journal                      Page 4482
     necessary to make payments required under the judgment or                                      
     settlement;                                                                                    
              (2)  to the extent that the tobacco product manufacturer                              
     establishes that the amount that it was required to place into                                 
     escrow on account of units sold in the state in a particular year                          
     was greater than the Master Settlement Agreement payments,                                 
     as determined under sec. IX(i) of the Master Settlement                                    
     Agreement,  including,  after  final  determination  of  all                               
     adjustments,  payments  that  the manufacturer would have                                  
     been required to make on account of those units had it been a                              
     participating manufacturer [STATE'S ALLOCABLE SHARE                                        
     OF THE TOTAL PAYMENTS THAT THE MANUFACTURER                                                    
     WOULD HAVE BEEN REQUIRED TO MAKE  IN THAT                                                      
     YEAR UNDER THE MASTER SETTLEMENT AGREEMENT                                                     
     HAD IT BEEN A PARTICIPATING MANUFACTURER, AS                                                   
     SUCH PAYMENTS ARE DETERMINED UNDER SEC.                                                        
     IX(i)(2) OF THE MASTER SETTLEMENT AGREEMENT AND                                                
     BEFORE ANY OF THE ADJUSTMENTS OR OFFSETS                                                       
     DESCRIBED IN SEC. IX(i)(3) OF THAT AGREEMENT                                                   
     OTHER THAN THE INFLATION ADJUSTMENT], the excess                                               
     shall be released from escrow and revert back to that tobacco                                  
     product manufacturer; or                                                                       
              (3)  to the extent not released from escrow under (1) or                              
     (2) of this subsection [SUBSECTIONS], funds placed into                                    
     escrow shall be released from escrow and revert back to the                                    
     tobacco product manufacturer 25 years after the date on which                                  
     they were placed into escrow.                                                                  
   * Sec. 39.  AS 45.53.020(b) is repealed and reenacted to read:                                 
         (b)  A tobacco product manufacturer that places money into                                 
     escrow under (a)(2) of this section is entitled to receive the interest                        
     or other appreciation on such money as earned. Such money itself                               
     shall be released from escrow only under the following                                         
     circumstances:                                                                                 
              (1)  to pay a judgment or settlement on a released claim                              
     brought against such tobacco product manufacturer by this state or                             
     a releasing party located or residing in this state; the funds shall be                        
     released from escrow under this paragraph in the order in which                                
     they were placed into escrow and only to the extent and at the time                            
     necessary to make payments required under the judgment or                                      
     settlement;                                                                                    

2004-06-24                     House Journal                      Page 4483
              (2)  to the extent not released from escrow under (1) of                              
     this subsection, funds placed into escrow shall be released from                               
     escrow and revert back to the tobacco product manufacturer 25                                  
     years after the date on which they were placed into escrow.                                    
   * Sec. 40.  AS 45.53.020(b) is repealed and reenacted to read:                                 
         (b)  A tobacco product manufacturer that places money into                                 
     escrow under (a)(2) of this section is entitled to receive the interest                        
     or other appreciation on such money as earned.  Such money itself                              
     shall be released from escrow only under the following                                         
     circumstances:                                                                                 
              (1)  to pay a judgment or settlement on a released claim                              
     brought against such tobacco product manufacturer by this state or                             
     a releasing party located or residing in this state; the funds shall be                        
     released from escrow under this paragraph in the order in which                                
     they were placed into escrow and only to the extent and at the time                            
     necessary to make payments required under the judgment or                                      
     settlement;                                                                                    
              (2)  to the extent that the tobacco product manufacturer                              
     establishes that the amount that it was required to place into                                 
     escrow in a particular year was greater than the state's allocable                             
     share of the total payments that the manufacturer would have been                              
     required to make in that year under the master settlement                                      
     agreement had it been a participating manufacturer, as such                                    
     payments are determined under sec. IX(i)(2) of the master                                      
     settlement agreement and before any of the adjustments or offsets                              
     described in sec. IX(i)(3) of that agreement other than the inflation                          
     adjustment, the excess shall be released from escrow and revert                                
     back to that tobacco product manufacturer; or                                                  
              (3)  to the extent not released from escrow under (1) or                              
     (2) of this subsection, funds placed into escrow shall be released                             
     from escrow and revert back to the tobacco product manufacturer                                
      25 years after the date on which they were placed into escrow.                               
                                                                                                    
Page 15, line 30:                                                                                   
 Insert a new bill section to read:                                                                 
   * Sec. 48.  The uncodified law of the State of Alaska is amended by                            
adding a new section to read:                                                                       
CONDITIONAL EFFECT.  (a)  Section 2 of this Act takes effect only                                   
if AS 45.53.020(b)(2),  as  amended in sec. 1 of this Act, is held by a                             
court of  competent jurisdiction to be unconstitutional.                                            

2004-06-24                     House Journal                      Page 4484
     (b)  Section 3 of this Act takes effect only if AS 45.53.020(b)(2),                            
as amended in sec. 1 and in sec. 2 of this Act, are held by a court of                              
competent jurisdiction to be unconstitutional.                                                      
                                                                                                    
Page 16, line 4:                                                                                    
 Insert new bill sections to read:                                                                  
   * Sec. 50.  Section 1 of this Act takes effect July 1, 2004.                                   
   * Sec. 51.  If sec. 2 of this Act takes effect under sec. 4(a) of this                         
Act, it takes effect on the day after the date of a final order or decision                         
by a court of competent jurisdiction holding AS 45.53.020(b)(2), as                                 
amended in sec. 1 of this Act, to be unconstitutional.                                              
   * Sec. 52.  If sec. 3 of this Act takes effect under sec. 4(b) of this                         
Act, it takes effect on the day after the date of a final order or decision                         
by a court of competent jurisdiction holding AS 45.53.020(b)(2), as                                 
amended in sec. 2 of this Act, to be unconstitutional.                                              
                                                                                                    
Renumber the following sections accordingly.                                                        
                                                                                                    
Representative Harris moved and asked unanimous consent that                                        
Amendment No. 2 be adopted.  There being no objection, it was so                                    
ordered and the new title follows:                                                                  
                                                                                                    
     HOUSE CS FOR SENATE BILL NO. 1001(FIN) am H                                                    
     "An Act relating to restrictions on shipping or transporting                                   
     cigarettes; relating to taxes on cigarettes and tobacco products, to                           
     tax stamps on cigarettes, to forfeiture of cigarettes and of property                          
     used in the manufacture, transportation, facilitation of                                       
     transportation, possession, offering for sale, or sale of unstamped                            
     cigarettes, to accounting for and use of part of the proceeds of the                           
     additional cigarette tax, and to licenses and licensees under the                              
     Cigarette Tax Act; relating to unfair cigarette sales; relating to                             
     supersedeas bonds in certain tobacco-related litigation; relating to                           
     the tobacco product Master Settlement Agreement; amending                                      
     Rules 204 and 205, Alaska Rules of Appellate Procedure; and                                    
     providing for an effective date."                                                              
                                                                                                    
Representative Coghill moved and asked unanimous consent that HCS                                   
SB 1001(FIN) am H be considered engrossed, advanced to third                                        
reading, and placed on final passage.  There being no objection, it was                             
so ordered.                                                                                         
                                                                                                    

2004-06-24                     House Journal                      Page 4485
HCS SB 1001(FIN) am H was read the third time.                                                      
                                                                                                    
The question being:  "Shall HCS SB 1001(FIN) am H pass the                                          
House?"  The roll was taken with the following result:                                              
                                                                                                    
HCS SB 1001(FIN) am H                                                                               
Third Reading                                                                                       
Final Passage                                                                                       
                                                                                                    
YEAS:  23   NAYS:  15   EXCUSED:  2   ABSENT:  0                                                  
                                                                                                    
Yeas:  Anderson, Berkowitz, Cissna, Crawford, Croft, Dahlstrom,                                     
Gara, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Joule, Kapsner,                                 
Kerttula, Kookesh, McGuire, Meyer, Morgan, Rokeberg, Samuels,                                       
Seaton, Weyhrauch                                                                                   
                                                                                                    
Nays:  Chenault, Coghill, Fate, Foster, Holm, Kohring, Kott, Lynn,                                  
Masek, Moses, Ogg, Stepovich, Stoltze, Williams, Wolf                                               
                                                                                                    
Excused:  Heinze, Wilson                                                                            
                                                                                                    
And so, HCS SB 1001(FIN) am H passed the House.                                                     
                                                                                                    
Representative Coghill moved the effective date clauses.                                            
                                                                                                    
The question being:  "Shall the effective date clauses be adopted?"                                 
The roll was taken with the following result:                                                       
                                                                                                    
HCS SB 1001(FIN) am H                                                                               
Third Reading                                                                                       
Effective Dates                                                                                     
                                                                                                    
YEAS:  38   NAYS:  0   EXCUSED:  2   ABSENT:  0                                                   
                                                                                                    
Yeas:  Anderson, Berkowitz, Chenault, Cissna, Coghill, Crawford,                                    
Croft, Dahlstrom, Fate, Foster, Gara, Gatto, Gruenberg, Guttenberg,                                 
Harris, Hawker, Holm, Joule, Kapsner, Kerttula, Kohring, Kookesh,                                   
Kott, Lynn, Masek, McGuire, Meyer, Morgan, Moses, Ogg, Rokeberg,                                    
Samuels, Seaton, Stepovich, Stoltze, Weyhrauch, Williams, Wolf                                      
                                                                                                    
Excused:  Heinze, Wilson                                                                            
                                                                                                    
Gara changed from "Nay" to "Yea".                                                                   
                                                                                                    
And so, the effective date clauses were adopted.                                                    
                                                                                                    

2004-06-24                     House Journal                      Page 4486
Representative Coghill moved the court rule changes.                                                
                                                                                                    
The question being:  "Shall the court rule changes be adopted?"  The                                
roll was taken with the following result:                                                           
                                                                                                    
HCS SB 1001(FIN) am H                                                                               
Third Reading                                                                                       
Court Rules                                                                                         
                                                                                                    
YEAS:  31   NAYS:  7   EXCUSED:  2   ABSENT:  0                                                   
                                                                                                    
Yeas:  Anderson, Chenault, Cissna, Coghill, Crawford, Dahlstrom,                                    
Fate, Foster, Gatto, Gruenberg, Guttenberg, Harris, Hawker, Holm,                                   
Joule, Kapsner, Kerttula, Kookesh, Kott, Lynn, McGuire, Meyer,                                      
Morgan, Moses, Rokeberg, Samuels, Seaton, Stepovich, Weyhrauch,                                     
Williams, Wolf                                                                                      
                                                                                                    
Nays:  Berkowitz, Croft, Gara, Kohring, Masek, Ogg, Stoltze                                         
                                                                                                    
Excused:  Heinze, Wilson                                                                            
                                                                                                    
Croft changed from "Yea" to "Nay".                                                                  
Ogg changed from "Yea" to "Nay".                                                                    
                                                                                                    
And so, the court rule changes were adopted.                                                        
                                                                                                    
In accordance with Rule 43(b) of the Uniform Rules, the Speaker                                     
waived engrossment of HCS SB 1001(FIN) am H, and it was referred                                    
to the Chief Clerk and transmitted to the Senate with copies of                                     
certified amendments attached.