03/23/2010 03:00 PM House HEALTH & SOCIAL SERVICES

                   HB 188-TAX ON MOIST SNUFF                                                                                
                                                                                                                                
3:21:48 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON announced  that the next order  of business would                                                               
be HOUSE BILL NO. 188, "An  Act relating to the taxation of moist                                                               
snuff tobacco,  and amending the definition  of 'tobacco product'                                                               
in provisions levying an excise  tax on those products."  [Before                                                               
the  committee, adopted  as  the working  draft  on 4/14/09,  and                                                               
amended on  2/23/10, was the  proposed committee  substitute (CS)                                                               
for HB 188, Version 26-LS0714\N, Bullock, 4/9/09.]                                                                              
                                                                                                                                
3:22:40 PM                                                                                                                    
                                                                                                                                
The committee took an at-ease from 3:22 p.m. to 3:26 p.m.                                                                       
                                                                                                                                
3:26:51 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved  to adopt  the  proposed  committee                                                               
substitute  (CS)  for  HB   188,  Version  26-LS0714\K,  Bullock,                                                               
2/24/10, as the working document.                                                                                               
                                                                                                                                
3:27:04 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON objected for discussion.                                                                               
                                                                                                                                
3:27:16 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE SEATON explained  the changes.  He  pointed to the                                                               
proposed CS, Version  K, page 1, line 8, and  said that the title                                                               
now included  "relating to  the offense of  selling tobacco  to a                                                               
minor;" page 3,  line 30, moved the word "sold"  from (b) to (1),                                                               
in front  of "as loose tobacco.";  and page 4, line  1, added the                                                               
wording after  "sold only"  in Sec  6 (b)(2)  to now  include "in                                                               
packages  of not  less  than 10  units and."    He also  directed                                                               
attention to page 7, reported that  Sec. 19 was repealed, and the                                                               
Applicability to the various sections was changed to conform.                                                                   
                                                                                                                                
3:28:15 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON, directing attention  to page 4, line 1,                                                               
asked if this referred to cigars.                                                                                               
                                                                                                                                
REPRESENTATIVE SEATON agreed.                                                                                                   
                                                                                                                                
3:28:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON asked why  packages of five cigars would                                                               
be sold, especially to a person who only wanted to buy one.                                                                     
                                                                                                                                
REPRESENTATIVE SEATON replied  that he had been  referring to Sec                                                               
6 (b) about smokeless tobacco.                                                                                                  
                                                                                                                                
3:29:25 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE T. WILSON asked for a definition to a unit.                                                                      
                                                                                                                                
REPRESENTATIVE SEATON replied that a unit was a dose.                                                                           
                                                                                                                                
3:30:01 PM                                                                                                                    
                                                                                                                                
CO-CHAIR HERRON  explained that these tobacco  products must come                                                               
in packets.                                                                                                                     
                                                                                                                                
REPRESENTATIVE T.  WILSON withdrew  her objection.   [There being                                                               
no  further  objection, Version  K  was  adopted as  the  working                                                               
document.]   She stated  that it was  not possible  through price                                                               
increase  to stop  people from  bad  behavior.   She opined  that                                                               
there was a bigger problem.                                                                                                     
                                                                                                                                
3:30:52 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  LYNN expressed  agreement with  Representative T.                                                               
Wilson  and  opined  that  taxes  were  not  intended  to  change                                                               
behavior.                                                                                                                       
                                                                                                                                
3:31:46 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE CISSNA  agreed that  taxation was  a means  to pay                                                               
for a  provided service.  She  discussed the cost and  tragedy of                                                               
tobacco  use.   She expressed  the rationale  for a  disincentive                                                               
which would also fund the state expenses due to tobacco use.                                                                    
                                                                                                                                
3:33:52 PM                                                                                                                    
                                                                                                                                
CO-CHAIR  HERRON  suggested that  the  tax  revenue be  put  into                                                               
education funds for the cessation  of tobacco use, especially for                                                               
youth.                                                                                                                          
                                                                                                                                
3:34:33 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  T. WILSON  pointed  out that  25  percent of  the                                                               
moist snuff  tobacco tax  revenue was to  be used  for education,                                                               
and  she suggested  that  the  remaining 75  percent  of the  tax                                                               
revenue be used for health care.                                                                                                
                                                                                                                                
3:35:43 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SEATON  moved to  report  CSHB  188, Version  26-                                                               
LS0714\K,  Bullock, 2/24/10,  out  of  committee with  individual                                                               
recommendations and  the accompanying fiscal notes.   There being                                                               
no objection, CSHB  188 (HSS) was reported from  the House Health                                                               
and Social Services Standing Committee.