1997-01-13                     Senate Journal                      Page 0029
SB 44                                                                        
SENATE BILL NO. 44 BY THE SENATE 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 Health, Education and Social       
Services and Finance Committees.                                               
                                                                               
Fiscal note published today from Department of Revenue.                        
                                                                               
Governor's transmittal letter dated January 13:                                
                                                                               

1997-01-13                     Senate Journal                      Page 0030
SB 44                                                                        
Dear President Miller:                                                         
                                                                               
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.                                                  
                                                                               
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