Legislature(1999 - 2000)

04/10/2000 02:20 PM Senate JUD

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
Number 377                                                                                                                      
                                                                                                                                
        HB  37-CIGARETTES:SALES/ EDUC & CESSAT'N PROGRAM                                                                        
                                                                                                                                
SENATOR ELLIS moved to adopt a proposed SCS CSHB 37(JUD), labeled                                                               
version Y.  There being no objection, the motion carried.                                                                       
                                                                                                                                
REPRESENTATIVE ROKEBERG, sponsor of HB 37, said that on page 2,                                                                 
line 20, after the word "is" the word "not" was deleted, and "any                                                               
health warning, including" was added to the sentence.  The new                                                                  
wording is:  (B)  any health warning, including a health warning                                                                
that is specified in 15 U.S.C. 133 (Federal Cigarette Labeling and                                                              
Advertising Act).                                                                                                               
                                                                                                                                
On page 3, line 20,  "required to be" was added.  The new wording                                                               
is:  (g)  A person who is required to hold a business license                                                                   
endorsement under this section, or who is required to be licensed                                                               
or agrees to be licensed under AS 43.50.010, or an agent or                                                                     
employee of the person, may not...."                                                                                            
                                                                                                                                
Page 5 contains the outline of what a tobacco control and cessation                                                             
program should do and more emphasis on youth was added.                                                                         
                                                                                                                                
REPRESENTATIVE ROKEBERG noted that, in large part, the bill                                                                     
includes a provision prohibiting grey market sales,  the sale of                                                                
export cigarettes for manufacture for export.  HB 37 also has a                                                                 
provision prohibiting the sale of loose cigarettes, and a provision                                                             
that applies to the duty-free shop at the Anchorage airport.  HB 37                                                             
does have a fiscal note that will be addressed by the Senate                                                                    
Finance Committee.  That fiscal note reflects the need for HB 37 to                                                             
be in compliance with the Master Smoking Agreement.  Over the years                                                             
Alaska should receive around $680 million from that settlement so                                                               
the fiscal note represents a mere token of that amount.  The Center                                                             
for Disease Control recommends that the State of Alaska spend as                                                                
much as $8 million to add a comprehensive smoking control program.                                                              
                                                                                                                                
REPRESENTATIVE ROKEBERG said the primary thrust of HB 37 is the                                                                 
provision on page 5 that dictates the state shall administer the                                                                
program by grant or contract.   He emphasized that he sees no need                                                              
to create a bureaucracy to do that as DHSS will only be passing                                                                 
money to other agencies.  The wording for that provision reads:                                                                 
(15) a comprehensive smoking education, tobacco use prevention, and                                                             
tobacco control program; to the maximum extent possible, the                                                                    
department shall administer the program required under this                                                                     
paragraph by grant or contract with more than one organization in                                                               
the state; the department's program must include.                                                                               
                                                                                                                                
Representative Rokeberg explained that his intention is to send a                                                               
policy statement from the legislature saying there is no need for                                                               
the bureaucracy to administer these programs, there are existing                                                                
organizations in the state that have that capability.                                                                           
                                                                                                                                
Number 634                                                                                                                      
                                                                                                                                
CHAIRMAN TAYLOR asked for the meaning of the phrase "an enforcement                                                             
component."  He wondered if this will enable a review of the grants                                                             
and programs.                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG said an evaluation component is essential                                                               
to make sure the program is working.  The enforcement provision                                                                 
contains broad language intended for follow-up.                                                                                 
                                                                                                                                
CHAIRMAN TAYLOR asked what the penalties are for grey market sales.                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG said there is no penalty, the department                                                                
confiscates and destroys the cigarettes.  A provision on page 4,                                                                
line 8, (h) A violation of (g) of this section is an unfair or                                                                  
deceptive act or practice under AS 45.50.471, makes grey market                                                                 
sales a violation.                                                                                                              
                                                                                                                                
CHAIRMAN TAYLOR said that his only concern with HB 37 is that the                                                               
crime is not even a class B misdemeanor.  He noted that he would                                                                
like to hold the bill in committee just long enough to get an                                                                   
amendment for the purpose of stiffening the penalty provision.                                                                  
                                                                                                                                
Number 835                                                                                                                      
                                                                                                                                
SENATOR HALFORD said that on page 2 the bill reads, "the                                                                        
commissioner shall treat as confidential certain information," and                                                              
he wondered what the information is and why it has to be                                                                        
confidential.                                                                                                                   
                                                                                                                                
REPRESENTATIVE ROKEBERG replied it is marketing information.                                                                    
                                                                                                                                
SENATOR HALFORD noted that on page 3, line 7, the language says                                                                 
"for personal use free of federal tax or duty," and it looks like                                                               
this only applies to importation for sale.  He asked if there is a                                                              
penalty in existing law for importation of large quantities not for                                                             
sale.                                                                                                                           
                                                                                                                                
Number 925                                                                                                                      
                                                                                                                                
REPRESENTATIVE ROKEBERG said he can only answer in part, cigarettes                                                             
cannot be brought in from a foreign country.                                                                                    
                                                                                                                                
SENATOR HALFORD said his real concern is with importation from a                                                                
state that has a lower tax rate than Alaska.                                                                                    
                                                                                                                                
REPRESENTATIVE ROKEBERG said he believes that is prohibited but he                                                              
is not certain.                                                                                                                 
                                                                                                                                
SENATOR HALFORD asked if HB 37 creates an exemption that does not                                                               
exist or if a penalty that exists is being reduced.                                                                             
                                                                                                                                
REPRESENTATIVE ROKEBERG said he would get back to the committee                                                                 
with that information.                                                                                                          
                                                                                                                                
Number 992                                                                                                                      
                                                                                                                                
CHAIRMAN TAYLOR asked if there was an objection to the adoption of                                                              
Version Y.  There being no objection, Version Y was adopted.                                                                    
                                                                                                                                
MR. ELMER LINDSTROM, Special Assistant for the Department of Health                                                             
and Social Services (DHSS), said he has been working with Section                                                               
3 of HB 37 and recommends two minor changes.  First, DHSS suggests                                                              
deleting the word "tobacco" on page 5, line 7, and inserting the                                                                
word "nicotine" prior to the word "gum."  The new wording will                                                                  
read:  (A) a community-based tobacco use prevention and cessation                                                               
component addressing the needs of youth and adults that includes                                                                
use of cessation aids such as a nicotine patch or a nicotine gum                                                                
tobacco substitute;".                                                                                                           
                                                                                                                                
REPRESENTATIVE ROKEBERG agreed with the amendment.                                                                              
                                                                                                                                
SENATOR DONLEY moved to adopt amendment 1.  There being no                                                                      
objection, amendment 1 was adopted.                                                                                             
                                                                                                                                
MR. LINDSTROM said the other change DHSS suggests is on page 5,                                                                 
line 12; delete the word "smokers" and insert "tobacco users."  The                                                             
new language will read:  (C)  anti-tobacco counter-marketing                                                                    
targeting both youth and adult populations designed to communicate                                                              
messages to help prevent youth initiation of tobacco use, promote                                                               
cessation among current tobacco users, and educate the public about                                                             
the lethal effects of exposure to secondhand smoke;.                                                                            
                                                                                                                                
REPRESENTATIVE ROKEBERG agreed with the amendment.                                                                              
                                                                                                                                
SENATOR DONLEY moved to adopt amendment 2.  There being no                                                                      
objection, amendment 2 was adopted.                                                                                             
                                                                                                                                
Number 1138                                                                                                                     
                                                                                                                                
MS. CHRISTIE MCINTIRE, Executive Director of the American Lung                                                                  
Association of Alaska (ALA), said she supports CSHB 37.  The ALA                                                                
supports the prohibition of the sale of single cigarettes or                                                                    
"LUCYS", as they are commonly known.  LUCYS are easier and cheaper                                                              
to purchase; requiring cigarettes to be purchased in packs of 20                                                                
will limit the number of cigarettes that end up in the hands of                                                                 
children.  Laws which limit the supply of tobacco is one strategy                                                               
for reducing addiction. ALA supports DHSS administering a                                                                       
comprehensive tobacco prevention, cessation, and control program in                                                             
Alaska.  As a leading cause of preventable death in Alaska, tobacco                                                             
addiction needs to be specifically identified and recognized as the                                                             
tragic epidemic that it is.  Other states have made significant                                                                 
improvements in reducing tobacco use.  These improvements are only                                                              
effective if three conditions are met.  They must be comprehensive,                                                             
sustained over time, and well funded.  The cost to Alaska will be                                                               
about $8 million dollars annually.                                                                                              
                                                                                                                                
MS. MCINTIRE noted that during the last legislative session, $1.4                                                               
million was allocated to a startup effort aimed at reducing tobacco                                                             
addiction.  There are now several components in place for that                                                                  
program: counter-marketing advertising, media campaigns, theater                                                                
slides, and bus panels.  The theme of this advertising campaign is                                                              
cessation and environmental tobacco smoke, and currently a program                                                              
is being developed around youth prevention.  There are also four                                                                
other pilot projects for cessation.  ALA is also working with the                                                               
Alaska Tobacco Control Alliance (ATCA) to develop goals and                                                                     
objectives for future programs, as well as evaluation measures.                                                                 
ALA has received 22 proposals totaling over $1.1 million for                                                                    
cessation needs alone.  The current level of funding is inadequate                                                              
for the job at hand.                                                                                                            
                                                                                                                                
Number 1367                                                                                                                     
                                                                                                                                
CHAIRMAN TAYLOR asked Ms. McIntire if she is employed by the Lung                                                               
Association as part of the $1.1 million grant.                                                                                  
                                                                                                                                
MS. MCINTIRE replied that she is the executive director of ALA and                                                              
the $1.4 million grant is to her organization.                                                                                  
                                                                                                                                
CHAIRMAN TAYLOR asked if any other organization has applied for                                                                 
this grant.                                                                                                                     
                                                                                                                                
MS. MCINTIRE replied that last year it was a designated grant to                                                                
the ALA and they are serving on behalf of the Alaska Tobacco                                                                    
Control Alliance.  Many health partners throughout Alaska are                                                                   
working on the goals and objectives that ALA is pursuing in this                                                                
grant.  Last June the ALA met and defined the goals and objectives                                                              
for this money.                                                                                                                 
                                                                                                                                
Number 1447                                                                                                                     
                                                                                                                                
MS. DELISA CULPEPPER, Chair of the Alaska Tobacco Control Alliance                                                              
(ATCA), explained that ATCA is a statewide alliance of non-profit                                                               
and governmental agencies that work toward reducing tobacco-related                                                             
disease in Alaska.  ATCA is not a non-profit group and, therefore,                                                              
when the settlement money came through they were not able to accept                                                             
it.  This is why ATCA organizations got together and chose ALA.                                                                 
It was thought that ALA was the best non-profit organization to                                                                 
implement the program.  ATCA works with ALA in an advisory capacity                                                             
on an ongoing basis and is developing a comprehensive tobacco plan                                                              
for Alaska.  That plan will delineate ideas of where ATCA thinks                                                                
things will need to go in the future and how to measure progress.                                                               
MS. CULPEPPER said that ATCA supports HB 37 and she urged committee                                                             
members to move the bill on today.                                                                                              
                                                                                                                                

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