1994-01-28                     House Journal                      Page 2180
HB 413                                                                       
                                                                               
HOUSE BILL NO. 413 by the House Rules Committee by request of                  
the Governor, entitled:                                                        
                                                                               
"An Act increasing excise taxes on cigarettes, tobacco products,              
and alcoholic beverages; and providing for an effective date."                 
                                                                               
was read the first time and referred to the Labor & Commerce, State            
Affairs and Finance Committees.                                                
                                                                               
                                                                               
The following fiscal note applies:                                             
                                                                               
Zero fiscal note, Dept. of Revenue, 1/28/94                                    
                                                                               
                                                                               
The Governor's transmittal letter, dated January 28, 1994, appears             
below:                                                                         
                                                                               
"Dear Speaker Barnes:                                                          
                                                                               
Under the authority of art. III, sec. 18, of the Alaska Constitution, I am     
transmitting a bill to increase the excise tax rate on alcoholic beverages     
and cigarettes and other tobacco products.                                     
                                                                               
                                                                               
This bill is one of four relatively modest revenue proposals I am              
offering this session to help offset the large revenue shortfalls the state    
is facing in fiscal year 1995 and in the years to follow.  In addition to      
providing $15 million annually in increased revenues, enactment of this        
bill into law may help reduce the consumption of tobacco and alcohol,          
resulting in long-term public health benefits, increased public safety,        
and medical care cost savings.                                                 
                                                                               
                                                                               
Tobacco use is the number one cause of preventable death and disease           
in America, accounting for some 400,000 deaths per year. Alcohol is            
the number three cause of preventable death and disease at 100,000             
deaths per year.  The social costs of tobacco and alcohol in Alaska in         
terms of mortality and morbidity are staggering.  The most recent              
estimates made by the Department of Health and Social Services of the