1997-01-13                     House Journal                      Page 0047
HB 61                                                                        
HOUSE BILL NO. 61 by the House Rules Committee by request of                   
the Governor, entitled:                                                        
                                                                               
An Act relating to the disposition and use of the proceeds of                 
excise taxes on cigarettes and tobacco products; increasing the                
rates on certain of those excise taxes; and providing for an                   
effective date.                                                                
                                                                               
was read the first time and referred to the State Affairs and Health,          
Education & Social Services Committees, the House Special                      
Committee on World Trade and State/Federal Relations and the                   
Finance Committee.                                                             
                                                                               
The following fiscal note applies:                                             
                                                                               
Fiscal note, Dept. of Revenue, 1/13/97                                         
                                                                               
The Governor's transmittal letter, dated January 13, 1997, appears             
below:                                                                         
                                                                               
Dear Speaker Phillips:                                                         
                                                                               
Tobacco is a killer.  Thats why I am transmitting a bill today to              
increase the excise tax on cigarettes and other tobacco products.              
                                                                               
A recent state study of youth behavior says Alaskas young people use           
tobacco products at a much higher rate than the national average.  The         
implications for the future are sobering.  As adults, Alaskans who             
started using tobacco at a young age will be at risk for smoking-related       
diseases and premature death.  Health care costs for all of us will            
continue to rise as a result.                                                  

1997-01-13                     House Journal                      Page 0048
HB 61                                                                        
Its clear we need to act quickly to reduce the number of Alaska                
youngsters making the tragic decision to start smoking or chewing.             
One proven and very effective way to discourage such behavior is               
significantly increasing the cost of tobacco.  The attached bill will raise    
the tax on cigarettes by $1 per pack.                                          
                                                                               
Ive often said I hope this new tax wont raise a dime--that would               
mean current smokers were changing their minds and young people                
werent starting at all.  But even with reduced demand, this bill will          
generate more money for the state treasury--an estimated $40 million           
for Fiscal Year 1998.  I am proposing these new revenues be                    
legislatively designated for education and childrens health programs.          
                                                                               
I urge your support of this important legislation.                             
                                                                               
							Sincerely,                                                              
							/s/                                                                     
							Tony Knowles                                                            
							Governor