Legislature(2007 - 2008)HOUSE FINANCE 519

05/10/2007 08:30 AM FINANCE


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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+= HB 22 EXTEND BOARD OF GOVERNORS ABA TELECONFERENCED
Moved Out of Committee
<Teleconference Listen Only>
+= SB 125 PERS /TRS CONTRIBUT'NS;UNFUNDED LIABILITY TELECONFERENCED
Heard & Held
<Teleconference Listen Only>
+ SB 84 TESTING & PACKAGING OF CIGARETTES TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
CS FOR SENATE BILL NO. 84(JUD)                                                                                                
                                                                                                                                
     "An Act relating to the testing and packaging of                                                                           
     cigarettes to be sold, offered for sale, or possessed                                                                      
     in this state; and providing for an effective date."                                                                       
                                                                                                                                
SENATOR  DONNY OLSON,  sponsor, explained  that a  fire in  a                                                                   
small village  is very  devastating.   He related a  personal                                                                   
story about  a fire in  Nome to explain  why he  sponsored SB                                                                   
84.  SB  84 mandates that only self-extinguishing  cigarettes                                                                   
can be sold in Alaska.                                                                                                          
                                                                                                                                
DENISE  LICCIOLI, STAFF,  SENATOR DONNY  OLSON, related  that                                                                   
the  bill provides  that only  self-extinguishing  cigarettes                                                                   
can be sold  in the state.   It also establishes  testing and                                                                   
certification  requirements.   These cigarettes are  designed                                                                   
to be less likely to ignite soft  furnishings.  The bill also                                                                   
requires cigarette  packaging to be marked,  identifying them                                                                   
as self-extinguishing.                                                                                                          
                                                                                                                                
Ms.  Liccioli  continued  to  say  that  cigarettes  are  the                                                                   
leading cause  of home fire fatalities  in Alaska and  in the                                                                   
United States.   The most common materials first  ignited are                                                                   
mattresses  and  bedding,  upholstered  furniture  and  floor                                                                   
coverings.    She shared  a  story  about  a recent  fire  in                                                                   
Juneau.                                                                                                                         
                                                                                                                                
9:15:04 AM                                                                                                                    
                                                                                                                                
Ms. Liccioli  reported statistics  relevant to the  danger of                                                                   
cigarettes.   She pointed to a  handout (copy on  file) which                                                                   
demonstrates  the self-extinguishing  property.   She  shared                                                                   
statistics about  legislation in  ten other states  regarding                                                                   
this issue.  SB 84 is supported  by the Association of Alaska                                                                   
Fire    Chiefs   Association,    the   Alaska    Firefighters                                                                   
Association,  and the Department  of Public Safety,  Division                                                                   
of Fire Protection.   She reported that during  the first six                                                                   
months since  New York  has had  this law,  there has  been a                                                                   
significant  reduction  in the  number  of  cigarette-related                                                                   
fires.   SB 84 will  save lives, as  well as reduce  injuries                                                                   
and damage  to property in Alaska.   It will have  a positive                                                                   
impact  because it  allows a fee  to be  charged which  would                                                                   
more than cover the expense of the program.                                                                                     
                                                                                                                                
9:18:32 AM                                                                                                                    
                                                                                                                                
Co-Chair Meyer  asked if fees  or receipts could be  used for                                                                   
the program.   Ms.  Liccioli said  that is  the intent.   The                                                                   
fiscal  notes  for  the Departments  of  Revenue  and  Public                                                                   
Safety need to be revised to show that.                                                                                         
                                                                                                                                
Vice  Chair Stoltze  asked if  this bill  would regulate  the                                                                   
sale of papers  for rolled cigarettes.  Ms.  Liccioli said it                                                                   
would not.   Vice  Chair Stoltze  asked if  the paper  is the                                                                   
self-extinguishing  substance.    Ms. Liccioli  replied  that                                                                   
there  are several  ways  that  this could  be  accomplished.                                                                   
"Speed bumps" are  built into the cigarettes  themselves.  In                                                                   
response to a question by Vice-Chair  Stoltz, she reported no                                                                   
loss of  tax revenue  due to decreased  smoking.   Vice Chair                                                                   
Stoltze stated support for the bill.                                                                                            
                                                                                                                                
9:22:08 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer  asked if  the  cigarettes  cost more.    Ms.                                                                   
Liccioli said  there is no  additional cost.   Co-Chair Meyer                                                                   
asked if  there is a difference  in the taste.   Ms. Liccioli                                                                   
reported that studies  show no difference in  taste or health                                                                   
impact.   Co-Chair Meyer  asked if  the cigarette would  burn                                                                   
out at rest.   Ms. Liccioli explained how the  speed bumps in                                                                   
the cigarettes work.                                                                                                            
                                                                                                                                
Representative Gara noted that  the American Lung Association                                                                   
supports the bill.                                                                                                              
                                                                                                                                
Representative Crawford asked  about an additive in the paper                                                                   
that would make a cigarette burn  continuously.  He asked how                                                                   
long it  would continue  to burn  between speed  bumps.   Ms.                                                                   
Liccioli thought  the additive  was in  the tobacco,  not the                                                                   
paper.  Soon after the speed bump, the filter is reached.                                                                       
                                                                                                                                
9:26:22 AM                                                                                                                    
                                                                                                                                
In  response  to  a question  by  Representative  Joule,  Ms.                                                                   
Liccioli referred  to the transitional section,  which states                                                                   
the affective date  when the old cigarettes would  need to be                                                                   
out of the stock.                                                                                                               
                                                                                                                                
Representative   Hawker  observed   that  "reverse   ignition                                                                   
propensity"  is very  appropriate.   Ms.  Liccioli  corrected                                                                   
"reduced     ignition     propensity"     is     appropriate.                                                                   
Representative Hawker said RIP is appropriate.                                                                                  
                                                                                                                                
In response  to a  question by  Co-Chair Meyer, Ms.  Liccioli                                                                   
reported  that the  tobacco  industry is  in  support of  the                                                                   
legislation.   The industry's  wish is  that all states  have                                                                   
similar legislation.                                                                                                            
                                                                                                                                
9:29:54 AM                                                                                                                    
                                                                                                                                
STEVE  BELANGER,  STATE  FIRE   MARSHALL,  ANCHORAGE,  stated                                                                   
support  for  SB  84.    He  related   statistics  caused  by                                                                   
cigarette fires.                                                                                                                
                                                                                                                                
DOUG SCHRAGE, ANCHORAGE FIRE DEPARTMENT,  spoke in support of                                                                   
SB 84.                                                                                                                          
                                                                                                                                
9:32:57 AM                                                                                                                    
                                                                                                                                
JACK SMITH, BARROW  FIRE DEPARTMENT, testified  in support of                                                                   
SB 84.  He  related personal experience with  fires caused by                                                                   
cigarettes.                                                                                                                     
                                                                                                                                
WARREN CUMMINGS,  ALASKA FIRE CHIEFS ASSOCIATION,  FAIRBANKS,                                                                   
testified in support of the bill.                                                                                               
                                                                                                                                
9:35:53 AM                                                                                                                    
                                                                                                                                
Co-Chair  Meyer turned  to the  fiscal notes.   Ms.  Liccioli                                                                   
noted a change to fiscal note  #3, which would move money out                                                                   
of  the general  fund.   The money  would  come from  receipt                                                                   
supported services instead.                                                                                                     
                                                                                                                                
9:36:36 AM                                                                                                                    
                                                                                                                                
At-ease.                                                                                                                        
                                                                                                                                
9:38:50 AM                                                                                                                    
                                                                                                                                
Ms. Liccioli  clarified the  change in fiscal  note #3.   The                                                                   
fiscal note by the Department  of Revenue, which is where the                                                                   
expenditures   are,  should  come   from  receipt   supported                                                                   
services, which  is the revenue  that is shown in  the fiscal                                                                   
note by the Department of Public Safety.                                                                                        
                                                                                                                                
EMILY NENON,  AMERICAN CANCER  SOCIETY, testified  that there                                                                   
does not  seem to be evidence  that the new  cigarettes would                                                                   
have a negative affect on a person's health.                                                                                    
                                                                                                                                
CSSB 84  (JUD) was  heard and HELD  in Committee  for further                                                                   
consideration.                                                                                                                  
                                                                                                                                
9:42:00 AM                                                                                                                    
                                                                                                                                

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