Legislature(1997 - 1998)

1997-05-08 House Journal

Full Journal pdf

1997-05-08                     House Journal                      Page 1672
SB 13                                                                        
Amendment No. 3 was offered  by Representative Vezey:                           
                                                                               
Page 3, line 3:                                                                
Insert a new bill section to read:                                            
                                                                               

1997-05-08                     House Journal                      Page 1673
SB 13                                                                        
	"*Sec. 7.  AS 21.09.210, 21.33.055, 21.33.061, 21.34.180 are               
repealed."                                                                     
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Representative Vezey moved and asked unanimous consent that                    
Amendment No. 3 be adopted.                                                    
                                                                               
Representative Bunde objected.                                                 
                                                                               
Representative Ryan placed a call of the House and lifted the call.            
                                                                               
Representative Hudson placed a call of the House.                              
                                                                               
The call was satisfied.                                                        
                                                                               
The question being:  "Shall Amendment No. 3 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 3                                                                
                                                                               
YEAS:  15   NAYS:  25   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kohring, Kott,                 
Martin, Masek, Moses, Mulder, Ogan, Phillips, Ryan, Vezey                      
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kelly,          
Kemplen, Kookesh, Kubina, Nicholia, Porter, Rokeberg, Sanders,                 
Therriault, Williams                                                           
                                                                               
And so, Amendment No. 3 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 4 was offered  by Representative Williams:                        
                                                                               
Page 2, lines 20 - 28:                                                         
	Delete all material and insert:                                               
	"Sec. 43.50.300.  Excise tax levied.  (a)  An excise tax is            
levied                                                                         

1997-05-08                     House Journal                      Page 1674
SB 13                                                                        
		(1)  on the following tobacco products in the state at the          
rate of 25 percent of the wholesale price of the tobacco product:            
		(A)  cigars, cheroots, and stogies if the wholesale                        
price of the cigar, cheroot, or stogie is more than $1.75;                     
and                                                                            
		(B)  tobacco in any form suitable for smoking in a                         
pipe;                                                                          
		(2)  on a tobacco product, except a product described                       
in (1) of this subsection, in the state at the rate of 75 percent              
of the wholesale price of the tobacco product ªPRODUCTSß.                    
	(b)  The tax imposed under (a) of this section is levied when        
a person                                                                       
		(1)  brings, or causes to be brought, a tobacco product into                
the state from outside the state for sale;                                     
		(2)  makes, manufactures, or fabricates a tobacco product                   
in the state for sale in the state; or                                         
		(3)  ships or transports a tobacco product to a retailer in                 
the state for sale by the retailer."                                           
                                                                               
Representative Williams moved and asked unanimous consent that                 
Amendment No. 4 be adopted.                                                    
                                                                               
Objection was heard.                                                           
                                                                               
The Speaker invoked Section 102 of Mason's Manual regarding debate.            
                                                                               
The question being:  "Shall Amendment No. 4 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 4                                                                
                                                                               
YEAS:  18   NAYS:  22   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Davis, Dyson, Foster, Hodgins, Ivan, Kelly,            
Kohring, Kott, Masek, Moses, Mulder, Ogan, Phillips, Rokeberg,                 
Vezey, Williams                                                                
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Elton,               
Green, Grussendorf, Hanley, Hudson, James, Joule, Kemplen, Kookesh,            
Kubina, Martin, Nicholia, Porter, Ryan, Sanders, Therriault                    

1997-05-08                     House Journal                      Page 1675
SB 13                                                                        
Cowdery changed from "Nay" to "Yea".                                           
                                                                               
And so, Amendment No. 4 was not adopted..                                      
                                                                               
Amendment No. 5 was offered  by Representative Sanders:                         
                                                                               
Page 2, line 1:                                                                
Delete "There"                                                                
Insert "Except with respect to cigarettes consumed by any member              
from District 22 first elected to the House in 1978, there"                    
                                                                               
Page 2, line 9:                                                                
Delete "There"                                                                
Insert "Except with respect to cigarettes consumed by any member              
from District 22 first elected to the House in 1978, there"                    
                                                                               
Page 2, line 17:                                                               
Delete "There"                                                                
Insert "Except with respect to cigarettes consumed by any member              
from District 22 first elected to the House in 1978, there"                    
                                                                               
Page 2, line 20:                                                               
Delete "An"                                                                   
Insert "Except with respect to tobacco products consumed by any               
member from District 22 first elected to the House in 1978, an"                
                                                                               
Representative Sanders moved and asked unanimous consent that                  
Amendment No. 5 be adopted.                                                    
                                                                               
Representative Barnes objected.                                                
                                                                               
The question being:  "Shall Amendment No. 5 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 5                                                                
                                                                               
YEAS:  12   NAYS:  28   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Cowdery, Croft, Davies, Foster, Kohring, Kookesh, Kott,                 
Moses, Ogan, Rokeberg, Sanders, Vezey                                          

1997-05-08                     House Journal                      Page 1676
SB 13                                                                        
Nays:  Austerman, Barnes, Berkowitz, Brice, Bunde, Davis, Dyson,               
Elton, Green, Grussendorf, Hanley, Hodgins, Hudson, Ivan, James,               
Joule, Kelly, Kemplen, Kubina, Martin, Masek, Mulder, Nicholia,                
Phillips, Porter, Ryan, Therriault, Williams                                   
                                                                               
And so, Amendment No. 5 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 6 was offered  by Representative Hodgins:                         
                                                                               
Page 2, line 21:                                                               
	Delete "75"                                                               
	Insert "15"                                                               
                                                                               
Page 2, line 29, through page 3, line 2:                                       
	Delete all material.                                                          
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
                                                                               
Page 3, line 12:                                                               
	Delete "sec. 7"                                                               
	Insert "sec. 6"                                                               
                                                                               
Page 3, line 18:                                                               
	Delete "6, and 8"                                                             
	Insert "and 7"                                                                
                                                                               
Page 3, line 19:                                                               
	Delete "sec. 7"                                                               
	Insert "sec. 6"                                                               
                                                                               
                                                                               
Representative Hodgins moved and asked unanimous consent that                  
Amendment No. 6 be adopted.                                                    
                                                                               
Representative Bunde objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 6 be adopted?"  The roll             
was taken with the following result:                                           

1997-05-08                     House Journal                      Page 1677
SB 13                                                                        
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 6                                                                
                                                                               
YEAS:  13   NAYS:  27   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kohring, Kott,                 
Masek, Moses, Mulder, Ogan, Phillips, Vezey                                    
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kelly,          
Kemplen, Kookesh, Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan,            
Sanders, Therriault, Williams                                                  
                                                                               
And so, Amendment No. 6 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 7 was offered  by Representative Hodgins:                         
                                                                               
Page 1, line 8:                                                                
	Delete "(1)"                                                                  
                                                                               
Page 1, line 10:                                                               
	Delete "; and"                                                                
	Insert "."                                                                    
                                                                               
Page 1, lines 11 - 13:                                                         
	Delete all material.                                                          
                                                                               
Page 2, lines 8 - 18:                                                          
	Delete all material.                                                          
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 2, line 21:                                                               
	Delete "75"                                                               
	Insert "20"                                                               
                                                                               
Page 2, line 29, through page 3, line 27:                                      
	Delete all material and insert:                                               
   "* Sec. 4.  This Act takes effect October 1, 1997."                       

1997-05-08                     House Journal                      Page 1678
SB 13                                                                        
Representative Hodgins moved and asked unanimous consent that                  
Amendment No. 7 be adopted.                                                    
                                                                               
Representative Bunde objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 7 be adopted?"  The roll             
was taken with the following result:                                           
                                                                               
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 7                                                                
                                                                               
YEAS:  15   NAYS:  25   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kelly, Kohring,                
Kott, Masek, Moses, Mulder, Ogan, Phillips, Sanders, Vezey                     
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule,                 
Kemplen, Kookesh, Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan,            
Therriault, Williams                                                           
                                                                               
And so, Amendment No. 7 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 8 was not offered.                                               
                                                                               
                                                                               
Amendment No. 9 was offered  by Representative Hodgins:                         
                                                                               
Page 3, line 18:                                                               
	Delete "October 1, 1997"                                                      
	Insert "October 1, 2002"                                                      
                                                                               
Representative Hodgins moved and asked unanimous consent that                  
Amendment No. 9 be adopted.                                                    
                                                                               
Representative Bunde objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 9 be adopted?"  The roll             
was taken with the following result:                                           

1997-05-08                     House Journal                      Page 1679
SB 13                                                                        
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 9                                                                
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kohring, Kott,                 
Masek, Moses, Mulder, Ogan, Phillips, Sanders, Vezey                           
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kelly,          
Kemplen, Kookesh, Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan,            
Therriault, Williams                                                           
                                                                               
And so, Amendment No. 9 was not adopted.                                       
                                                                               
                                                                               
Amendment No. 10 was offered  by Representative Hodgins:                        
                                                                               
Page 1, line 6, through page 3, line 27:                                       
	Delete all material and insert:                                               
   "* Section 1.  AS 43.50.090(a) is amended to read:                        
	(a)  There is levied an excise tax ªOF TWO AND ONE-HALF                      
MILLSß on each cigarette imported or acquired in the state, as               
follows:                                                                       
		(1)  the excise tax on each cigarette is 38 mills; each ª.                
EACHß licensee shall, at the time of filing the return reporting             
the levy made by this paragraph that is required by AS                       
43.50.080, pay to the department the excise for the calendar month             
covered by the return, deducting four-tenths of one percent of the         
total tax due, which the licensee shall retain to cover the expense            
of accounting and filing returns; cigarettes ª. CIGARETTESß                
upon which the excise is imposed are not again subject to the                  
excise when acquired by another person;                                      
		(2)  notwithstanding (1) of this subsection, on and after                   
the date that is 30 days after the later of (A) the date a court               
enters a final judgment that the amendment made to this                        
subsection by this Act changing the rate of taxation on                        
cigarettes violates the prohibition set out in art. IX, sec. 7,                
Constitution of the State of Alaska, against dedication of the                 
proceeds of a state tax or license, and (B) the expiration of any              

1997-05-08                     House Journal                      Page 1680SB 13                                                                        
time for appeal of that judgment, or upon entry of a final                    
order on the appeal that this subsection, as amended by this                   
Act, violates art. IX, sec.7, Constitution of the State of Alaska,             
the excise tax on each cigarette is two and one-half mills; each               
licensee shall, at the time of filing the return reporting the levy            
made by this paragraph required by AS 43.50.080, pay to the                    
department the excise tax for the calendar month covered by                    
the return, deducting four-tenths of one percent of the total tax              
due, which the licensee shall retain to cover the expense of                   
accounting and filing returns; cigarettes upon which the excise                
is imposed are not again subject to the excise when acquired                   
by another person;                                                             
		(3)  notwithstanding (1) and (2) of this subsection, on                     
and after the date that is two years after the effective date of               
this Act, the excise tax on each cigarette is two and one-half                 
mills; each licensee shall, at the time of filing the return                   
required by AS 43.50.080, pay to the department the excise tax                 
for the calendar month covered by the return, deducting one                    
percent of the total tax due, which the licensee shall retain to               
cover the expense of accounting and filing returns; cigarettes                 
upon which the excise is imposed are not again subject to the                  
excise when acquired by another person.                                      
   * Sec. 2.  AS 43.50.190(a) is amended to read:                            
	(a) There is levied an additional excise tax ªOF 12 MILLSß               
on each cigarette imported or acquired in this state, as follows:            
		(1)  the additional excise tax on each cigarette is 12                      
mills;                                                                         
		(2)  notwithstanding (1) of this subsection, on and after                   
the date that is 30 days after the later of (A) the date a court               
enters a final judgment that the amendment made to AS                          
43.50.090(a) by this Act changing the rate of taxation on                      
cigarettes violates the prohibition set out in art. IX, sec. 7,                
Constitution of the State of Alaska, against dedication of the                 
proceeds of a state tax or license, and (B) the expiration of any              
time for appeal of that judgment, or upon entry of a final                     
order on the appeal that AS 43.50.090(a), as amended by this                   
Act, violates art. IX, sec. 7, Constitution of the State of Alaska,            
and retroactive to the effective date of this Act the additional               
excise tax on each cigarette is 47.5 mills;                                    
                                                                               
                                                                               

1997-05-08                     House Journal                      Page 1681SB 13                                                                        
		(3)  notwithstanding (1) and (2) of this subsection, on                     
and after the date that is two years after the effective date of               
this Act, the additional excise tax on each cigarette is 12 mills.           
   * Sec. 3.  AS 43.50.300 is amended to read:                               
	Sec. 43.50.300.  Excise tax levied.  An excise tax is levied on            
tobacco products in the state ªAT THE RATE OF 25 PERCENT                       
OF THE WHOLESALE PRICE OF THE TOBACCO                                          
PRODUCTSß.  The tax is levied when a person                                    
		(1)  brings, or causes to be brought, a tobacco product into                
the state from outside the state for sale;                                     
		(2)  makes, manufactures, or fabricates a tobacco product                   
in the state for sale in the state; or                                         
		(3)  ships or transports a tobacco product to a retailer in                 
the state for sale by the retailer.                                            
   * Sec. 4.  AS 43.50.300 is amended by adding a new subsection to          
read:                                                                          
	(b)  The excise tax levied under (a) of this section is                      
		(1)  levied at the rate of 75 percent of the wholesale price                
of the tobacco products;                                                       
		(2)  notwithstanding (1) of this subsection, on and after                   
the date that is two years after the effective date of the Act, levied         
at the rate of 25 percent of the wholesale price of the tobacco                
products.                                                                      
                                                                               
   * Sec. 5.  AS 43.50.330(b) is amended to read:                            
	(b)  The licensee shall remit with the return the tax due under              
AS 43.50.300 for the month covered by the return.  The licensee              
may                                                                            
		(1)  until the date set in (2) of this subsection, deduct                   
four-tenths of ª, AFTER DEDUCTINGß one percent of the tax                    
due and ª, WHICH THE LICENSEE SHALLß retain it to cover                
the expense of accounting and filing the return; and                         
		(2)  on and after the date that is two years after the                      
effective date of this Act, deduct one percent of the tax due                  
and retain it to cover the expense of accounting and filing the                
return.                                                                      
   * Sec. 6.  RETROACTIVE CREDIT.  If AS 43.50.090(a)(2), added              
by sec. 1 of this Act, and AS 43.50.190(a)(2), added by sec. 2 of this         
Act, become operative, then 35.5 mills per cigarette of the tax levied         
under AS 43.50.090(a)(1), as amended by sec. 1 of this Act, for                
cigarettes sold on or after the effective date of this Act and before the      

1997-05-08                     House Journal                      Page 1682
SB 13                                                                        
operative date of AS 43.50.090(a)(2) shall be credited to the retroactive      
tax levied under AS 43.50.190(a)(2), as amended by sec. 2 of this Act.         
   * Sec. 7.  This Act takes effect October 1, 1997."                        
                                                                               
Representative Hodgins moved and asked unanimous consent that                  
Amendment No. 10 be adopted.                                                   
                                                                               
Representative Bunde objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 10 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 10                                                               
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kohring, Kott,                 
Masek, Moses, Mulder, Ogan, Phillips, Sanders, Vezey                           
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kelly,          
Kemplen, Kookesh, Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan,            
Therriault, Williams                                                           
                                                                               
And so, Amendment No. 10 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 11 was offered  by Representative Ogan:                           
                                                                               
Page 1, line 11:                                                               
	Delete "sec. 4"                                                               
	Insert "sec. 5"                                                               
                                                                               
Page 2, following line 15:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 4.  AS 43.50.090(a) is repealed and reenacted to read:            
	(a)  There is levied an excise tax of two and one-half mills on              
each cigarette imported or acquired in the state.  Each licensee               
shall, at the time of filing the return required by AS 43.50.080,              
pay to the department the excise for the calendar month covered                

1997-05-08                     House Journal                      Page 1683
SB 13                                                                        
by the return, deducting one percent of the total tax due, which the          
licensee shall retain to cover the expense of accounting and filing            
returns.  Cigarettes upon which the excise is imposed are not again            
subject to the excise when acquired by another person."                        
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 2, following line 18:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 6.  AS 43.50.190(a) is repealed and reenacted to read:            
	(a)  There is levied an excise tax of 12 mills on each cigarette             
imported or acquired in this state."                                           
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 2, following line 28:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 8.  AS 43.50.300 is repealed and reenacted to read:               
	Sec. 43.50.300.  Excise tax levied.  An excise tax is levied on            
tobacco products in the state at the rate of 25 percent of the                 
wholesale price of the tobacco products.  The tax is levied when               
a person                                                                       
		(1)  brings, or causes to be brought, a tobacco product into                
the state from outside the state for sale;                                     
		(2)  makes, manufactures, or fabricates a tobacco product                   
in the state for sale in the state; or                                         
		(3)  ships or transports a tobacco product to a retailer in                 
the state for sale by the retailer."                                           
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
Page 3, following line 2:                                                      
	Insert a new bill section to read:                                            
   "* Sec. 10.  AS 43.50.330(b) is repealed and reenacted to read:           
	(b)  The licensee shall remit with the return the tax due under              
AS43.50.300 for the month covered by the return, after deducting               
one percent of the tax due, which the licensee shall retain to cover           
the expense of accounting and filing the return."                              
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               

1997-05-08                     House Journal                      Page 1684
SB 13                                                                        
Page 3, line 3:                                                                
	Delete "and 4"                                                                
	Insert "and 5"                                                                
                                                                               
Page 3, line 8:                                                                
	Delete "and"                                                                  
                                                                               
Page 3, line 11, following "Alaska":                                           
	Insert "; and                                                                 
		(3)  secs. 4, 6, 8, and 10 of this Act have not taken effect, or             
will not within 30 days take effect, under sec. 13 of this Act"                
                                                                               
Page 3, line 12:                                                               
	Delete "and 4"                                                                
	Insert "and 5"                                                                
	Delete "sec. 7"                                                               
	Insert "sec. 11"                                                              
                                                                               
Page 3, line 13:                                                               
	Delete "and 4"                                                                
	Insert "and 5"                                                                
                                                                               
Page 3, line 17:                                                               
	Delete "sec. 4"                                                               
	Insert "sec. 5"                                                               
                                                                               
Page 3, following line 17:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 13.  CONDITIONAL EFFECT OF CERTAIN SECTIONS.                      
Sections 4, 6, 8, and 10 of this Act take effect only if                       
		(1)  a court enters a final judgment that the taxation of                    
cigarettes or tobacco products under AS 43.50 is preempted in a part           
of the state that is subject to the authority of a tribal government and       
the preemption is due either to infringement with retained tribal              
sovereignty or to federal protection of the interests of Alaska Natives        
based upon an application of the supremacy clause, art. VI, sec. 2,            
Constitution of the United States; a judgment does not satisfy the             
requirements of this paragraph if it finds preemption only in a                
municipality organized under federal law as an Indian reserve that             
existed before enactment of 43 U.S.C. 1618(a) and is continued in              
existence under that subsection; and                                           

1997-05-08                     House Journal                      Page 1685
SB 13                                                                        
		(2)  either the time for appeal of or petition for certiorari                
concerning that judgment expires or, if an appeal is taken or petition         
for certiorari filed, the court having final appellate authority enters a      
final order on appeal sustaining that judgment or denies the petition for      
certiorari."                                                                   
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
                                                                               
Page 3, line 18:                                                               
	Delete "5, 6, and 8"                                                          
	Insert "7, 9, and 11 - 13"                                                    
                                                                               
Page 3, line 19:                                                               
	Delete "and 4"                                                                
	Insert "and 5"                                                                
	Delete "sec. 7"                                                               
	Insert "sec. 11"                                                              
                                                                               
Page 3, following line 27:                                                     
	Insert a new bill section to read:                                            
   "* Sec. 16.  (a)  If secs. 4, 6, 8, and 10 of this Act take effect under  
sec. 13 of this Act, they take effect on the 30th day after the later of       
		(1)  the date on which the court enters a final judgment that                
the taxation of cigarettes or tobacco products under AS 43.50 is               
preempted in a part of the state that is subject to the authority of a         
tribal government and the preemption is due either to  infringement            
with retained tribal sovereignty or to federal protection of the interests     
of Alaska Natives based upon an application of the supremacy clause,           
art. VI, sec. 2, Constitution of the United States; a judgment does not        
satisfy the requirements of this paragraph if it finds preemption only         
in a municipality organized under federal law as an Indian reserve that        
existed before enactment of 43 U.S.C. 1618(a) and is continued in              
existence under that subsection; and                                           
		(2)  the expiration of any time for appeal of that judgment or,              
if an appeal is taken, the court having final appellate authority enters       
a final order on appeal sustaining that judgment.                              
	(b)  The attorney general shall promptly notify the lieutenant                
governor, the commissioner of revenue, and the revisor of statutes of          
a judgment described in (a) of this section."                                  
                                                                               

1997-05-08                     House Journal                      Page 1686
SB 13                                                                        
Representative Ogan moved and asked unanimous consent that                     
Amendment No. 11 be adopted.                                                   
                                                                               
Representative Bunde objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 11 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 11                                                               
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kelly, Kohring,                
Kott, Masek, Mulder, Ogan, Phillips, Sanders, Vezey                            
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule,                 
Kemplen, Kookesh, Kubina, Martin, Moses, Nicholia, Porter,                     
Rokeberg, Ryan, Therriault, Williams                                           
                                                                               
And so, Amendment No. 11 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 12 was offered  by Representative Kott:                           
                                                                               
Page 2, lines 20 - 28:                                                         
	Delete all material and insert:                                               
	"Sec. 43.50.300.  Excise tax levied.  (a)  An excise tax is            
levied                                                                         
		(1)  on snuff, snuff flour, and chewing tobacco                     
[PRODUCTSß in the state at the rate of 50 ª25ß percent of the              
wholesale price of the snuff, snuff flour, and chewing tobacco;              
and                                                                            
		(2)  on a tobacco product, except a product described                   
in (1) of this subsection, in the state at the rate of 75 percent              
of the wholesale price of the tobacco product ªPRODUCTSß.                    
	(b)  The tax imposed under (a) of this section is levied when        
a person                                                                       
		(1)  brings, or causes to be brought, a tobacco product into                
the state from outside the state for sale;                                     

1997-05-08                     House Journal                      Page 1687
SB 13                                                                        
		(2)  makes, manufactures, or fabricates a tobacco product                   
in the state for sale in the state; or                                         
		(3)  ships or transports a tobacco product to a retailer in                 
the state for sale by the retailer."                                           
                                                                               
Representative Kott moved and asked unanimous consent that                     
Amendment No. 12 be adopted.                                                   
                                                                               
Representative Bunde objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 12 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 12                                                               
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Davis, Dyson, Foster, Hodgins, Kohring,                
Kott, Masek, Moses, Mulder, Ogan, Phillips, Vezey                              
                                                                               
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Elton,               
Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kelly,                 
Kemplen, Kookesh, Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan,            
Sanders, Therriault, Williams                                                  
                                                                               
And so, Amendment No. 12 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 13 was offered  by Representative Ogan:                           
                                                                               
Page 1, lines 1 - 3 (title amendment):                                         
	Delete "and to the use of the proceeds of those taxes, and                   
increasing by at least 35.5 mills the amount of excise tax levied on           
each cigarette imported or acquired in the state"                             
	Insert "and to the use of cigarette tax proceeds"                           
                                                                               
                                                                               
Page 1, line 6, through page 2, line 15:                                       
	Delete all material.                                                          
                                                                               

1997-05-08                     House Journal                      Page 1688
SB 13                                                                        
Page 2, line 16:                                                               
	Delete "* Sec. 4.  AS 43.50.190(a)"                                         
	Insert "* Section 1.  AS 43.50.190"                                         
                                                                               
Renumber the following bill sections accordingly.                              
                                                                               
                                                                               
Page 2, line 17, before "(a)":                                                 
	Insert "Sec. 43.50.190.  Additional tax levy on cigarettes."                
	Delete "47.5"                                                             
	Insert "17"                                                               
                                                                               
                                                                               
Page 2, following line 18:                                                     
	Insert new subsections to read:                                               
	"(b)  The tax levied by this section is in addition to the tax               
levied by AS 43.50.010  -  43.50.180.  The tax shall be                        
administered and collected in the same manner as the tax levied by             
AS 43.50.010  - 43.50.180.  The ª, EXCEPT THATß receipts from              
the tax shall be deposited in the general fund.  The commissioner            
of administration shall separately account for receipts from the               
tax in excess of the amounts recovered from a tax levy of 12                   
mills.  The annual estimated balance in the account maintained                 
by the commissioner of administration under AS 37.05.142                       
may be used by the legislature to make appropriations for law                  
enforcement grants and programs.                                               
	(c)  The penalties provided in AS 43.05 apply to the tax levied            
in this section."                                                              
                                                                               
Page 3, lines 3 - 27:                                                          
	Delete all material and insert:                                               
   "* Sec. 4.  This Act takes effect October 1, 1997."                       
                                                                               
                                                                               
Representative Ogan moved and asked unanimous consent that                     
Amendment No. 13 be adopted.                                                   
                                                                               
Representative Bunde objected.                                                 
                                                                               
The question being:  "Shall Amendment No. 13 be adopted?"  The roll            
was taken with the following result:                                           

1997-05-08                     House Journal                      Page 1689
SB 13                                                                        
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 13                                                               
                                                                               
YEAS:  16   NAYS:  24   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Austerman, Barnes, Cowdery, Dyson, Foster, Hodgins, Kelly,              
Kohring, Kott, Masek, Moses, Mulder, Ogan, Phillips, Sanders, Vezey            
                                                                               
Nays:  Berkowitz, Brice, Bunde, Croft, Davies, Davis, Elton, Green,            
Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kemplen, Kookesh,             
Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan, Therriault, Williams         
                                                                               
And so, Amendment No. 13 was not adopted.                                      
                                                                               
                                                                               
Amendment No. 14 was offered  by Representative Ogan:                           
                                                                               
Page 2, line 12:                                                               
	Delete "four-tenths of"                                                       
	Insert "ªFOUR-TENTHS OFß"                                                     
                                                                               
                                                                               
Representative Ogan moved and asked unanimous consent that                     
Amendment No. 14 be adopted.                                                   
                                                                               
Representative Bunde objected.                                                 
                                                                               
                                                                               
The question being:  "Shall Amendment No. 14 be adopted?"  The roll            
was taken with the following result:                                           
                                                                               
HCS CSSB 13(HES)                                                               
Second Reading                                                                 
Amendment No. 14                                                               
                                                                               
                                                                               
YEAS:  14   NAYS:  26   EXCUSED:  0   ABSENT:  0                             
                                                                               
Yeas:  Barnes, Cowdery, Dyson, Foster, Hodgins, Kohring, Kott,                 
Masek, Moses, Mulder, Ogan, Phillips, Sanders, Vezey                           
                                                                               

1997-05-08                     House Journal                      Page 1690
SB 13                                                                        
Nays:  Austerman, Berkowitz, Brice, Bunde, Croft, Davies, Davis,               
Elton, Green, Grussendorf, Hanley, Hudson, Ivan, James, Joule, Kelly,          
Kemplen, Kookesh, Kubina, Martin, Nicholia, Porter, Rokeberg, Ryan,            
Therriault, Williams                                                           
                                                                               
And so, Amendment No. 14 was not adopted.                                      
                                                                               
Representative Porter moved and asked unanimous consent that                   
HCSCSSB 13(HES) be considered engrossed, advanced to third                     
reading and placed on final passage.                                           
                                                                               
Objection was heard.                                                           
                                                                               
The Speaker stated that HCS CSSB 13(HES) will be in third reading              
on tomorrow's calendar.