Legislature(2009 - 2010)SENATE FINANCE 532
03/29/2010 09:00 AM Senate FINANCE
Audio | Topic |
---|---|
Start | |
SB217 | |
SB219 | |
SB284 | |
SB117 | |
SB239 | |
SB243 | |
SB279 | |
Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
+= | SB 217 | TELECONFERENCED | |
+= | SB 219 | TELECONFERENCED | |
+= | SB 279 | TELECONFERENCED | |
+= | SB 284 | TELECONFERENCED | |
+ | SB 117 | TELECONFERENCED | |
+ | SB 239 | TELECONFERENCED | |
+ | SB 243 | TELECONFERENCED | |
+ | TELECONFERENCED | ||
= | SB 305 | ||
SENATE BILL NO. 117 "An Act requiring the Department of Revenue to set the minimum price for cigarettes for sale by wholesalers and retailers; and prohibiting a wholesaler or retailer from selling at wholesale or retail cigarettes at a lower price than the price set by the Department of Revenue." ESTHER CHA, STAFF, SENATOR LESIL MCGUIRE, explained that the bill addresses a current loophole in legislation which allows large high volume cigarette sellers to price their cigarettes at less than the minimum price set by law if they can prove that their actual cost of doing business is lower than the mandated minimum price. The original purpose of Article 7 in Title 43 was to prevent wholesalers and retailers from using predatory pricing practices to promote the sale of cheap cigarettes and use them as a loss leader. However, AS 43.50.800(c) specifically states that a wholesaler or retailer that wishes to advertise, offer to sell, or sell cigarettes at less than the presumptive, actual cost to the wholesaler or retailer, must first obtain approval from the department. The department may grant approval only if the wholesaler or retailer provides proof satisfactory to the department that the wholesaler's or retailer's actual cost is lower than presumed. She gave an example. SB 117 would repeal AS 43.50.800 and replace it with Section 6 in the bill, which establishes AS 43.50.801. Ms. Cha explained that the only change between the original bill and the CS are the multipliers. The original bill held the percentages to what is currently in statute, which was 4.5 percent at wholesale and 6 percent at retail. The new CS changes those percentages to 2 percent and 4 percent respectively. The Department of Revenue approves of the change. The percentages in the CS are currently higher than the percentage granted at the exemption. Ms. Cha shared that the original reasoning behind fixing a minimum price for cigarettes was based on studies showing how increased prices would work to provide a financial incentive for existing smokers to quit, as well as to discourage new smokers. The expected price increase found in the CS will not have as great an effect. The bill will not change the amount of tax received by the state on cigarette sales. By getting rid of a wholesaler's or retailer's ability to apply for an exemption, the CS would bring parity and balance to competition. It would level the playing field by ensuring that all vendors, regardless of size, volume, or accounting practices, will have to price at, or above, the minimum price set in law. 9:24:45 AM Co-Chair Stedman noted one zero fiscal note from the Department of Revenue. 9:25:06 AM MIKE ELERDING, KETCHIKAN (via teleconference), spoke in favor of the legislation. He requested that the topic of the bill be limited to only one topic, the price of cigarettes. He spoke as a tobacco distributor and shared the history of his company's involvement in cigarette taxes. He provided information about the correlation between increasing prices and decreasing consumption. He described how cigarette pricing is controlled. He emphasized that if the state is doing its part to increase the price of tobacco, cigarettes should not be sold for less than the market cost. He agreed that SB 117 closed a loophole and stated his support for the bill. 9:29:21 AM CLIFF KRAEMER, NORTHERN SALES COMPANY (via teleconference), spoke in support of the proposed changes contained in SB 117. The recommendation to set a minimum price for cigarettes is a compromise among wholesalers and retailers. SB 177 was heard and HELD in Committee for further consideration. 9:31:01 AM
Document Name | Date/Time | Subjects |
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AHFC Vets Loan Activity.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 217 |
SB217 AHFC Vets Sec Analysis.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 217 |
SB 217 Vets Bonds Sponsor Statement.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 217 |
00 Sponsor Statement CSSB219.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
04 Summary of Changes_E.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
05 Sectional Analysis.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
06 Alaska Data Graphs.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
07 TBI Scorecard and Dashboard 032009.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
08 Medicaid BrainInjury Program Costs.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
09 StateofAlaska_Services_Congenital_Degenerative_BrainInjury.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
10 Acquired Brain Injury Definition.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
11 Letters of Support.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
13 Summary of Changes_S.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
SB 219 Amendment 1.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
Explanation of CS SB 279 (S FIN).doc |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 About the SAFE Act by HUD.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 Back-Up.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 Letters of Support.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 SAFE Mortgage Licensing Act.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 Sectional Analysis.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 Sponsor Statement.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
SB 279 Talking Points by Lorie Hovanec.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
AG Opinion 02.19.10.PDF |
SFIN 3/29/2010 9:00:00 AM |
SB 284 |
CSSB284(JUD) Sectional Analysis.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 284 |
Explanation of Changes CSSB284 JUD.doc |
SFIN 3/29/2010 9:00:00 AM |
SB 284 |
Leg. Legal Opinion 01.25.10.PDF |
SFIN 3/29/2010 9:00:00 AM |
SB 284 |
Leg. Legal Opinion 03.17.10.PDF |
SFIN 3/29/2010 9:00:00 AM |
SB 284 |
00 Sponsor Statement SB 117.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
03 SB 117 Summary of Changes.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
04 SB 117 Sectional Analysis.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
05 Costco Letter SB 117.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
07 Elerding Attachment.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
NCSL Ignition Interlock Device.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 239 |
SB 239 Sponsor Statement.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 239 |
SB 239 Support Letter APOA.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 239 |
Akutan Support Letter.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 243 |
Changes to SB 243 in Version E.docx |
SFIN 3/29/2010 9:00:00 AM |
SB 243 |
Geothermal Royalty Rates.docx |
SFIN 3/29/2010 9:00:00 AM |
SB 243 |
Ormat SB242 and SB243 for Senate Resouce Hearing 11-Mar-10 ver0 (2).pptx |
SFIN 3/29/2010 9:00:00 AM |
SB 242 SB 243 |
SB 243 Sectional.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 243 |
USGS Geothermal Packet.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 243 |
HB 300 Budget Amendments 0326Pkt#1.pdf |
SFIN 3/29/2010 9:00:00 AM |
HB 300 |
HB 300 Buget Amendment Pkt #2 0326.pdf |
SFIN 3/29/2010 9:00:00 AM |
HB 300 |
SB117-Stedman.pdf |
SFIN 3/29/2010 9:00:00 AM SFIN 4/2/2010 9:00:00 AM |
SB 117 |
CS Senate Bill 279--Talking Points (S FIN).pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
CS for SB 279 (S FIN).pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |
CSSB217(FIN)-New DOR-AHFC-3-28-10.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 217 |
SB 217 Proposed CS Version R SFIN 032910.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 217 |
SB 219 Proposed CS Version P SFIN 032910.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 219 |
SB 284 amendment 1 032910.pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 284 |
SB 279 Amendment 1 032910 .pdf |
SFIN 3/29/2010 9:00:00 AM |
SB 279 |