Legislature(1999 - 2000)
1999-02-19 House JournalFull Journal pdf
1999-02-19 House Journal Page 0258 HB 102 HOUSE BILL NO. 102 by the House Rules Committee by request of the Governor, entitled: "An Act imposing certain requirements relating to cigarette sales in this state by tobacco product manufacturers, including requirements for escrow, payment, and reporting of money from cigarette sales in this state; providing penalties for noncompliance with those requirements; and providing for an effective date." was read the first time and referred to the Judiciary and Finance Committees. The following fiscal notes apply: Zero fiscal note, Dept. of Revenue, 2/19/99 Zero fiscal note, Dept. of Law, 2/19/99 1999-02-19 House Journal Page 0259 HB 102 The Governor's transmittal letter dated February 19, 1999, appears below: "Dear Speaker Porter: Cigarette smoking presents serious public health concerns to the state and its citizens. Recently, this Administration, along with virtually every other state, reached a monumental master settlement agreement with the leading tobacco producers. That agreement was approved by the Alaska Superior Court on February 9, 1999. Under the terms of the settlement, it is anticipated the State of Alaska will receive $670 million over the next 25 years and will benefit from important restrictions on advertising and other matters to address public health concerns. While this is an important step forward in addressing this significant health problem, the states that are parties to the agreement wanted to be sure the problem was more comprehensively addressed. This bill I transmit today would help do that by placing some requirements on tobacco product manufacturers who sell cigarettes in the state but do not sign the settlement agreement. Under this bill, the non-participating tobacco manufacturers will take responsibility for their share of the financial burden caused by their products by setting up escrow accounts to cover qualified claims for health-related concerns. The availability of the escrow money will better ensure a source of compensation for Alaskans while preventing those manufacturers from deriving large, short-term profits from sales in this state and then becoming judgment-proof before liability may arise. This bill is fair and puts all tobacco product manufacturers on an equal footing regarding cigarette sales in Alaska. I urge your prompt and favorable action on this bill, as part of an overall solution to address this major public health concern. Sincerely, /s/ Tony Knowles Governor"