SENATE COMMUNITY & REGIONAL AFFAIRS COMMITTEE                                                                               
                     May 16, 1999                                                                                               
                      4:20 p.m.                                                                                                 
                                                                                                                                
                                                                                                                                
MEMBERS PRESENT                                                                                                                 
                                                                                                                                
Senator Tim Kelly, Chair                                                                                                        
Senator Randy Phillips                                                                                                          
Senator Lyman Hoffman                                                                                                           
                                                                                                                                
MEMBERS ABSENT                                                                                                                  
                                                                                                                                
Senator Jerry Mackie, Vice Chair                                                                                                
Senator Jerry Ward                                                                                                              
                                                                                                                                
COMMITTEE CALENDAR                                                                                                              
                                                                                                                                
HOUSE BILL NO. 92                                                                                                               
"An Act relating to municipal taxation of alcoholic beverages."                                                                 
     -MOVED HB 92 OUT OF COMMITTEE                                                                                              
                                                                                                                                
PREVIOUS SENATE COMMITTEE ACTION                                                                                                
                                                                                                                                
HB 92 - No previous Senate action.                                                                                              
                                                                                                                                
WITNESS REGISTER                                                                                                                
                                                                                                                                
Representative Gary Davis                                                                                                       
Alaska State Legislature                                                                                                        
Juneau, Alaska  99801-1182                                                                                                      
POSITION STATEMENT:  Sponsor of HB 92                                                                                           
                                                                                                                                
Don Dapcevich                                                                                                                   
Advisory Board on Alcoholism and Drug Abuse                                                                                     
PO Box 021571                                                                                                                   
Juneau, AK  99802                                                                                                               
POSITION STATEMENT:  Supports HB 92                                                                                             
                                                                                                                                
Loren Jones                                                                                                                     
Division of Alcoholism and Drug Abuse                                                                                           
Dept. of Health and Social Services                                                                                             
PO Box 110602                                                                                                                   
Juneau, AK  99811-0607                                                                                                          
POSITION STATEMENT:  Supports HB 92                                                                                             
                                                                                                                                
ACTION NARRATIVE                                                                                                                
                                                                                                                                
TAPE 99-10, SIDE A                                                                                                              
Number 001                                                                                                                      
                                                                                                                                
CHAIRMAN TIM KELLY called the Senate Community & Regional Affairs                                                               
Committee meeting to order at 4:20 p.m.  Present were Senators                                                                  
Hoffman, Phillips, and Kelly.                                                                                                   
                                                                                                                                
              HB  92-MUNICIPAL TAXATION OF ALCOHOL                                                                              
                                                                                                                                
REPRESENTATIVE GARY DAVIS, sponsor of HB 92, explained the measure                                                              
is best described as a local control bill.  At present,                                                                         
municipalities cannot tax alcohol at a rate higher than the local                                                               
sales tax rate, if a sales tax exists.  HB 92 removes that                                                                      
restriction from statute and allows municipalities to charge a                                                                  
sales tax on alcohol sales at any rate approved by the voters of                                                                
the municipality.                                                                                                               
                                                                                                                                
Number 25                                                                                                                       
                                                                                                                                
DON DAPCEVICH, Director of the Advisory Board on Alcoholism and                                                                 
Drug Abuse, stated the Advisory Board strongly endorses passage of                                                              
HB 92.  Aside from the issue of alcohol consumption, HB 92 allows                                                               
communities to raise the resources to combat the costs associated                                                               
with alcohol misuse.  HB 92 provides that the associated costs fall                                                             
hardest on those who use the most alcohol.                                                                                      
                                                                                                                                
Number 050                                                                                                                      
                                                                                                                                
LOREN JONES, Director of the Division of Alcoholism and Drug Abuse,                                                             
Department of Health and Social Services (DHSS), stated support for                                                             
HB 92.  Many communities try to get local support for prevention                                                                
and treatment programs in their locales but find those effforts                                                                 
hindered by a lack of resources.  HB 92 allows communities to                                                                   
impose a tax to be used for law enforcement, prevention, and                                                                    
treatment programs.                                                                                                             
                                                                                                                                
There being no further testimony, SENATOR PHILLIPS moved HB 92 to                                                               
its next committee of referral.  There being no objection, the                                                                  
motion carried.                                                                                                                 
                                                                                                                                
CHAIRMAN KELLY adjourned the meeting at 4:23 p.m.