Legislature(1997 - 1998)
02/05/1997 09:00 AM Senate HES
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
SENATE HEALTH, EDUCATION & SOCIAL SERVICES COMMITTEE
February 5, 1997
9:00 a.m.
MEMBERS PRESENT
Senator Gary Wilken, Chairman
Senator Loren Leman, Vice Chairman
Senator Lyda Green
Senator Jerry Ward
Senator Johnny Ellis
MEMBERS ABSENT
All members present.
COMMITTEE CALENDAR
SENATE BILL NO. 13
"An Act relating to taxes on cigarettes and tobacco products, and
to the use of the proceeds of those taxes; and providing for an
effective date."
- HEARD AND HELD
SENATE BILL NO. 61
"An Act relating to taxes on cigarettes and tobacco products, and
to the use of the proceeds of those taxes; and providing for an
effective date."
- HEARD AND HELD
PREVIOUS SENATE COMMITTEE ACTION
SB 13 - No previous action to record.
SB 46 - No previous action to record.
WITNESS REGISTER
Senator Sharp
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Prime Sponsor of SB 13.
Senator Ellis
State Capitol
Juneau, Alaska 99801-1182
POSITION STATEMENT: Prime Sponsor of SB 61.
Barbara Cohea
Maniilaq Health Association
Box 43
Kotzebue, Alaska
POSITION STATEMENT: Supported tobacco tax increase.
Arliss Sturgulewski, Volunteer
Citizens to Protect Kids from Tobacco
POSITION STATEMENT: Supported tobacco tax increase.
John Petraitis, PhD
Research Psychologist
University of Alaska
30319 List Circle
Eagle River, Alaska 99577
POSITION STATEMENT: Stated that a tobacco tax increase is the most
effective way to decrease adolescent use.
Terry Strle
American Heart Association
412 Baranof
Fairbanks, Alaska 99701
POSITION STATEMENT: Supported the $1.00 tobacco tax increase.
Anne Marie Holen, Health Program Manager
Alaska Native Health Board
11241 Latta Circle
Anchorage, Alaska 99576
POSITION STATEMENT: Supported a tobacco tax increase of at least
$1.00.
Suzanne Meunier, Executive Director
American Heart Association
701 W. Fireweed
Anchorage, Alaska
POSITION STATEMENT: Supported a $1.00 tobacco tax increase.
Joyanne Bloom
Juneau Tobacco Prevention Network
883 Basin Road
Juneau, Alaska
POSITION STATEMENT: Discussed the networks work and award.
Cathy Flavin
Bristol Bay Area Health Corporation
PO Box 130
Dillingham, Alaska 99576
POSITION STATEMENT: Supported SB 13 and SB 61.
Matt Hanley, Student
Lathrop High School
Fairbanks, Alaska
POSITION STATEMENT: Discussed the tobacco tax increase.
Paul Aguilar
1156 Kodiak
Fairbanks, Alaska 99709
POSITION STATEMENT: Supported the tobacco tax increase.
Romie Deschamps
HC 5 Box 9779
Palmer, Alaska 99645
POSITION STATEMENT: Supported the tobacco tax.
Judith Bendersky
12901 Trent Circle
Anchorage, Alaska 99516
POSITION STATEMENT: Supported the tobacco tax.
Jean Murray
PO Box 3033
Anderson, Alaska 99744
POSITION STATEMENT: Supported the tobacco tax.
Ron Hammett, Vice Chairman
State Legislative Committee
American Association of Retired Persons
3512 Stanford Drive
Anchorage, Alaska 99508
POSITION STATEMENT: Supported at least a $1.00 tobacco tax
increase.
Margaret Wright, Board Member
Alaska Public Health Association
Box 755
Kotzebue, Alaska 99752
POSITION STATEMENT: Supported at least a $1.00 tobacco tax
increase.
Kim Greer, Health Care Professional
Homer Tobacco Alliance
PO Box 1683
Homer, Alaska 99603
POSITION STATEMENT: Supported a tobacco tax increase of at least
$1.00.
Rex Shattuck
21665 Sheltering Spruce
Chugiak, Anchorage 99562
POSITION STATEMENT: Opposed a tax increase for which the revenue
collected cannot be earmarked.
ACTION NARRATIVE
Tape 97-7, SIDE A
SB 13 INCREASE TOBACCO TAXES
SB 61 INCREASE TOBACCO TAXES
Number 001
CHAIRMAN WILKEN called the Senate Health, Education & Social
Services Committee (HES) to order at 9:00 a.m. and explained that
public testimony would be taken on SB 13 and SB 61 today. Expert
and agency testimony will be taken on Monday. He requested that
the testimony be limited to five minutes and reminded everyone to
keep comments directed to the legislation at hand.
SENATOR SHARP , Prime Sponsor of SB 13, read the following sponsor
statement:
This bill is a tax bill, an education bill, and a health bill.
Section 1 details the legislative intent and purposes of the bill.
Section 1, item (1) and (2) starting on line 6 directs the
cigarette tax be deposited to the existing "dedicated school fund"
and can only be used for rehabilitation, construction and repair of
the state's school facilities per <AS 43.50.140>.
Item (3), page 1, lines 12-14 and page 2, lines 1-3 states
legislative intent, "subject to appropriation," that the new
tobacco tax revenue be used for the establishment maintenance of an
aggressive anti-tobacco campaign targeting children and also to
establish and maintain a program of pass through grants to
municipalities for programs to detect and prosecute those who sell
or supply tobacco products to children.
Sections 3 and 4 increases the tax on each cigarette by $1.00 per
pack.
Section 5, increases the excise tax on tobacco products <non-
cigarettes> from 25% of wholesale value to 100% of wholesale value,
Sections 6,7 and 8 sets varying conditions and effective dates
depending on possible court decisions.
The accompanying fiscal note breaks the estimated revenue from
cigarettes and that from other tobacco products because of the
proposed different uses. These amounts would represent a
significant portion of the $66 million of new revenue that we have
committed to raise in FY 98 of our long range fiscal plan. I urge
your careful consideration of the several extremely positive public
policy elements of this proposal and the strong public support of
this action statewide.
Senator Sharp indicated that he may offer an amendment at the next
committee hearing in order to tighten the what if portion of the
bill. He noted that Jack Chenowith, the drafter, was present for
any questions regarding the legal reasoning behind portions of the
bill.
Number 153
SENATOR WARD asked if the dedicated school tax and the increase is
deemed unconstitutional, would SB 13 place the new tax in the
general fund. SENATOR SHARP replied, yes. If a court decides that
the money cannot be placed in the dedicated school fund, then the
money would be placed in the general fund for the same purposes per
the intent of the legislation. The bill was structured in this
manner in order to eliminate the possibility of court action
delaying the implementation which may or may not effect where the
money is placed. Therefore, the collection of the money during the
court process would not be precluded.
SENATOR ELLIS , Prime Sponsor of SB 61, informed the committee that
he sponsored a similar bill last year that passed the Senate with
a great deal of help from Senator Sharp, although the bill was
denied a final vote in the House of Representatives. Senator Ellis
noted that he was a co-sponsor on SB 13 and supported Senator
Sharp's efforts. SB 61 would raise the current tax on nicotine
from $.29 to $1.25 per pack which is $.25 more than all the other
proposals before the Legislature. Senator Ellis choose that amount
in order to more accurately reflect the true costs of nicotine
consumption in terms of health care costs to the state and society
as well as lost productivity and economy. That actual cost is
about $3.90 per pack of cigarettes.
Number 206
Senator Ellis informed the committee that nearly 84 percent of
Alaskan adults began their nicotine habit between the ages of 10
and 20. From reliable studies other than those hired by the
tobacco industry, the demand curve for underage consumption of
nicotine products is highly elastic; as the price increases the
demand for young people decreases. Senator Ellis pointed out that
as the Medicaid budget increases and other important services are
constricted, this tax increase is a tangible way in which to offset
those health care costs as well as preventing future costs. SB 61
places the cigarette tax revenues in the school construction fund
as well as contingency language for the possibility of court action
just as in SB 13. The non-cigarette tax increase of 75 percent
would be used for tobacco education and enforcement that is not
occurring now; this language was suggested by Senator Sharp last
year. In conclusion, Senator Ellis thanked the grass roots
supporters of this legislation.
In response to Senator Leman, SENATOR ELLIS clarified that the
total levy would be $1.25 plus the existing $.29.
Number 251
SENATOR WARD asked Senator Ellis why the tax increase was not
$3.90, if that is the actual cost incurred by the state for tobacco
users. SENATOR ELLIS said that he did not believe Senator Ward
would vote for that. SENATOR WARD commented that may be the only
way to get his vote. SENATOR ELLIS explained that he did not
believe people would be prepared to support a tax of that
magnitude. Senator Ellis said that he would consider the
possibility of the increase of $3.90, if Senator Ward was willing
to vote for that proposal. The $1.25 currently in the bill is a
realistic approach that has a better chance of passing.
SENATOR WARD inquired as to the current and projected percentage of
this tax that would be paid by minors versus adults. SENATOR ELLIS
said that he would be happy to provide that information.
BARBARA COHEA , testifying from Kotzebue, stated that the American
Cancer Society, Heart Association, Lung Association, Alaska Native
Health Board, Alaska State Medical Association, Dental Society,
Anchorage School District, American Association of Retired Persons-
Alaska Chapter plus 44 more, support an increase in the tobacco
tax. She reviewed the lies of the tobacco industry over the past
50 years. Ms. Cohea could not believe that at a 1994 Congressional
hearing, seven Chairman Presidents and CEOs of major tobacco
companies under oath each stated their disbelief that nicotine is
addictive.
Number 314
Ms. Cohea informed the committee of the following facts which those
in the tobacco industry refuse to believe:
(1) The National Science Foundation says that 400,000 people per
year die of smoking related illnesses.
(2) The World Health Organization, National Institute on Drug Use,
and the American Psychiatric Association and 87 percent of
smokers recognize that the nicotine in tobacco meets the
criteria on drug addiction.
(3) The American Lung Association and the Center for Disease
Control know that 90 percent of all smokers began smoking
before the age of 19. The average of those starting to smoke
is 14 and a half.
Ms. Cohea emphasized that the tobacco industry does know these
facts, especially the age of the beginning smoker. The tobacco
industry has a consumer base that dies from using its product,
therefore, the industry must recruit 1,100 customers to keep up
with those customers that die each day. Adults do not start
smoking, children do. Since the introduction of the cartoon
character, Joe Camel, Camel sales to teen smokers has increased 64
percent. Further, a Federal Trade Commission report to Congress
found that the tobacco industry spends $5.2 billion a year on
marketing cigarettes. The tobacco industry knows that studies show
that a one percent increase in tobacco taxes is expected to result
in a 31 percent reduction in consumption. Ms. Cohea stressed that
this is all about the tobacco industry's profit, if teen
consumption is reduced so is the industry's profits. Ms. Cohea
urged the committee to vote for the tobacco tax increase.
CHAIRMAN WILKEN welcomed Jim Sampson, Mayor of the Fairbanks
Northstar Borough.
Number 353
ARLISS STURGULEWSKI , volunteer for the Citizens to Protect Kids
from Tobacco, supported both bills before the committee. The
tobacco industry is under attack; some 19 states have brought suits
against tobacco companies in an attempt to recover state Medicare
and Medicaid as well as other health costs related to tobacco
related illnesses. The legislation before the committee today is
an opportunity to stop a substantial number of teens from being
hooked on cigarettes. Ms. Sturgulewski reiterated that studies
show that a significant tobacco tax increase would deter young
people from starting to use tobacco. Seventy percent of people
support this tobacco tax increase.
Ms. Sturgulewski echoed Ms. Cohea's comment regarding the large
amount of money the tobacco industry spends on advertising each
year. A year ago, Joe Camel was recognized by 91 percent of six-
year-olds which is about the same percentage who recognize the
Disney Channel - Mickey Mouse logo. Now Phillip Morris has begun
a record label entitled 'Woman Thing Music' after its Virginia
Slims, It's a Woman Thing brand. The album is available along with
two packs of Virginia Slims. Critics indicate that this is an
attempt to attract music loving teens. She said that the tobacco
industry is well aware that 84 percent of adults who smoke began
before the age of 20. Ms. Sturgulewski recounted the story of her
sister-in-law who was a smoker who tried numerous ways to quit;
people cannot just quit. Unfortunately, many years pass before the
ravages of smoking are recognized. She urged the committee to move
ahead on this issue.
Number 411
SENATOR WARD said that he agreed with most of Ms. Sturgulewski's
comments. He asked if she believed that nicotine is a drug and
should be regulated with increased penalties for those who sell to
children. ARLISS STURGULEWSKI agreed that a review of how the
industry is treated with regards to penalties and education is
necessary.
SENATOR ELLIS noted that when the tax was increased in 1989 and a
couple of years later many tobacco control pieces of legislation
were also passed. The most significant tobacco control legislation
passed was the $25 charge to the businesses who sell nicotine.
There is no enforcement of those who sell nicotine to children.
Senator Ellis indicated that a political will to enforce those laws
was all that was necessary.
JOHN PETRAITIS , PhD Research Psychology teacher at the University
of Alaska representing the American Lung Association, informed the
committee that he had received many federal grants to study
adolescent smoking, adolescent alcohol use, and adolescent drug
use. He has published a number of scholarly research articles on
the aforementioned issues. Most recently, Mr. Petraitis
contributed a chapter to the 1997 Surgeon General's report on
smoking.
Mr. Petraitis reviewed the following tobacco prevention strategies.
(1) Education - If children could be educated about the dangers of
smoking, that would work towards decreasing smoking. The
scientific literature regarding the effects of such education
programs illustrate that education programs have impressive
short-term effects on children's knowledge. However, the
evidence suggests that these education programs do not result
in smoking prevention in the future.
(2) Regulation of Access - Elimination of tobacco sales to minors.
Alaska has a fairly decent rate of compliance; a check last
summer found that 64 percent of the merchants refused to sell
to minors. That average is better than the national average,
however, Alaska's number of adolescent smokers is worse than
the national average. Recent evidence suggests that if the
compliance rate could be increased from 64 percent to 80
percent, there would not be an effect on the smoking rate of
Alaskan children. Social scientists believe that the
compliance rate must reach 90 percent in order to see a
decrease in the number of children who smoke.
Number 484
(3) Increased Taxation - Mr. Petraitis informed everyone that the
following information was obtained from Kenneth Warner, the
Scientific Editor for the 25th Anniversary of the Surgeon
General's Report on Smoking & Health. Mr. Warner found that
there is no debate among professional economists who have
studied the matter: the standard law of demand is operating
with cigarettes as with all other commodities. When the price
increases the demand decreases. Mr. Petraitis emphasized that
"all economists" refers to those economists oriented toward
public health and economists working for the tobacco industry.
Mr. Warner found that evidence strongly indicates with a tax
increase children's demand will be reduced more than adults.
Mr. Warner concluded that tobacco taxation is the single most
effective measure available to discourage smoking among
adolescents.
TERRY STRLE , American Heart Association, supported the $1.00
tobacco tax increase. She discussed the passage of a resolution
supporting a substantial tax increase on tobacco products by the
Statewide PTA Convention. The tobacco tax resolution passed with
overwhelming support and little discussion. The information is
available that illustrates that a $1.00 tax increase would deter
children from obtaining this life threatening habit. Ms. Strle
urged the committee to support the $1.00 tobacco tax and not lose
sight of the health benefits it would provide to future Alaskans.
CHAIRMAN WILKEN noted that Ms. Strle was the past President of
MADD in Fairbanks. He had read that the most effective campaign of
MADD was when the focus was placed on the drunk driver's friends
with the slogan, "Friends don't let friends drive drunk." Chairman
Wilken asked Ms. Strle if a similar campaign could be used with
smoking if one of the bills pass with money for educational
support. TERRY STRLE believed that would work. The American Heart
Association has programs targeting grades K-6 available for
schools.
Number 540
ANNE MARIE HOLEN , Health Program Manager with the Alaska Native
Health Board, noted that she was active on the tobacco tax issue
last year. The biggest change this year is that the tobacco
industry is much more active in its opposition to this legislation.
Ms. Holen cited numerous examples of how the tobacco industry is
quietly recruiting people to speak in opposition to tobacco control
legislation. For example, the Alaska Smoker's Rights group is
really a front group for RJ Reynolds. A friend of Ms. Holen's
attended one of the meetings in Anchorage which recruited people to
testify at a House State Affairs meeting in opposition to the
legislation. The tobacco industry is also organizing distributors
and retailers, recruiting them to testify at hearings, write
editorials with language provided by the industry and circulating
petitions. Ms. Holen stated that none of the activities would be
sinister, but the motive is to protect the industry's ability to
addict children and continue high rates of tobacco use in Alaska.
Tobacco use is already the leading cause of death in Alaska. Ms.
Holen urged the committee to pass the legislation with a tobacco
tax of at least $1.00.
SENATOR LEMAN asked Ms. Holen if she knew what portion of tobacco
products would be exempt from this tax. Senator Leman noted that
the tobacco products sold on military installations would be exempt
from this taxation. ANNE MARIE HOLEN recalled from a previous
meeting that the tobacco industry said that 45 percent would be
exempt, but since have issued a paper correcting that to 8 percent
which is in line with the Department of Revenue. She indicated
that perhaps, someone else could better answer Senator Leman's
question.
CHAIRMAN WILKEN noted that there is an effort to verify what
portion of tobacco products would be exempt from this tax. He
asked who comprised the Alaska Native Health Board (ANHB). ANNE
MARIE HOLEN explained that regional Native health corporations such
as the Tanana Chiefs Council. The ANHB is an umbrella
organization.
TAPE 97-7, SIDE B
In response to Chairman Wilken, Ms. Holen said that the mission of
ANHB is to promote improvements in health among Alaska Native
people. Ms. Holen noted that this project actually targets all
Alaskans, not just Alaska Natives. She said that she was acting as
the lead agency on behalf of the Statewide Coalition on the Alaska
Tobacco Control Alliance.
Number 585
SUZANNE MEUNIER , Executive Director of the American Heart
Association, informed the committee that heart disease claims more
lives in this country than any other cause of death combined.
Tobacco is a leading risk factor for heart disease. A major
tobacco tax increase is the single most effective way to rapidly
and significantly reduce the number of children who start smoking
as well as encourage many adults to quit. For every 10 percent
increase in cigarette prices, demand among youth declines by as
much as 14 percent. Ms. Meunier acknowledged that some people
believe that taxing tobacco is unfair. There is nothing unfair
about singling out tobacco because it is uniquely addictive and
lethal. Tobacco is the single leading cause of preventable death
in this country; it kills nearly 420,000 Americans each year. In
Alaska, smoking is the cause of one out of every five deaths and
costs the economy almost $300 million a year in direct health care
costs and lost productivity. In other words, for every dollar
collected in tobacco taxes the Alaskan economy loses over $18 from
the impacts of smoking. Tobacco is a unique public health problem
because the foe is the powerful industry with a vested interest in
making money from the very product causing the problem. Tobacco
use does not provide any health benefits and is harmful in all
circumstances. Unlike alcohol, tobacco kills even when used in
moderation. The public supports tobacco taxes. A January 1996
statewide survey found that 74 percent of Alaskans support an
increase of $1.00 per pack in the state excise tax on cigarettes.
Of those supporters, 55 percent were Alaskan smokers. In
conclusion, Ms. Meunier urged the committee to support the $1.00
increase of the cigarette excise tax.
SENATOR LEMAN commented that an awful byproduct of tobacco is the
effects of second-hand smoke on those who do not have the choice
such as unborn babies. What portion of the $300 million could be
attributed to second-hand smoke? SUZANNE MEUNIER offered to
forward statistics on that to the committee. With regard to women
carrying children, those who smoke have a higher rate of having a
spontaneous abortion.
In response to Chairman Wilken, SUZANNE MEUNIER said that no
position had been taken regarding the use of the money. The tax is
the single most effective way to reduce youth consumption as well
as adults.
Number 530
JOYANNE BLOOM , representing the Juneau Tobacco Prevention Network,
showed the committee a plaque given to the network by the Alaska
Public Health Association for being the most effective community
service group in Alaska for 1996. Ms. Bloom said that one reason
for the award was the 25 high school students who have been trained
and developed presentations about the dangers of tobacco use for
grammar school presentations. Friends telling friends not to smoke
is a very effective prevention tool as Chairman Wilken mentioned
earlier. Eleven of the teens gave presentations at the Kid's Safe
Fair in Juneau this past week. Another reason for the network's
recognition is the compliance checks to all tobacco vendors which
has resulted in close to a 90 percent compliance rate in Juneau.
Ms. Bloom asked the committee for their help in stopping children
from smoking.
SENATOR WARD asked Ms. Bloom if her group was responsible for
Juneau Physical Education teachers giving their students who say
they have stopped smoking a half grade increase in that subject.
JOYANNE BLOOM replied, no. The Juneau Tobacco Prevention Network
has been involved in starting smoking cessation classes in the high
school. Those classes will begin this month, during school time.
Also teen mothers are being targeted for this program.
Number 485
CATHY FLAVIN , representing Bristol Bay Area Health Corporation,
stated support for SB 13 and SB 61. Passage of these bills will
help reduce the number of Alaskans addicted to nicotine.
Practically, all new users of tobacco products are children.
Nicotine is highly additive and a gateway drug which often leads to
further drug experimentation. Ms. Flavin noted that increasing the
price of tobacco is merely one facet of the overall picture in
helping to prevent children from wanting to try tobacco products.
She reiterated the lack of any health benefit from tobacco as well
as the fact that it is harmful to all users at all doses. In
conclusion, Ms. Flavin urged the committee to pass the tobacco tax
increase at no less that $1.00 per pack.
MATT HANLEY , an 18-year-old non-smoking Senior at Lathrop High
School, stated that there is not enough dedication to this issue.
Mr. Hanley indicated that people should strive for 90 percent
compliance of vendors in order to make a difference in youth
consumption. This is not an issue with a quick fix. Mr. Hanley
pointed out that there are existing laws addressing the illegality
of minors smoking. He asked if the tax applies to other tobacco
products besides cigarettes. With regard to the appropriation of
these funds, Mr. Hanley indicated the need for some of the funds to
be used for the costs resulting from tobacco use.
Number 416
SENATOR ELLIS clarified that with the tax increase there would be
an equally proportionate increase on tobacco products other than
cigarettes.
PAUL AGUILAR , testifying from Fairbanks, believed the tobacco tax
is a great idea. Cigarettes are very addictive and are a drug.
Mr. Aguilar said that the only reason tobacco was legal was due to
the fact that it is grown and produced in the U.S. This tobacco
tax increase would be a beginning to end the use of this drug and
save many lives.
ROMIE DESCHAMPS , a former 20 year smoker, informed the committee
that he was a pharmacist and a parent of six children. He has been
the President of the Mat-Su American Cancer Society for two years
and on the state board. As a pharmacist, Mr. Deschamps has seen a
higher incident in asthma and breathing difficulties in youths and
adults. At a pharmacy convention last year an Anchorage
pulmonalogist stated that by the year 2015, 75 percent of health
care costs will be directly contributed to tobacco use and its
related products. Mr. Deschamps believed the tax to be the most
effective means to stop smoking and the use of tobacco products.
He expressed concern with the addiction potential; tobacco has a
higher addiction potential than crack cocaine and alcohol.
Number 361
JUDITH BENDERSKY , a former smoker and Certified Health Specialist,
was unsure as to why she ever started smoking, perhaps she may have
been attracted by the advertising. Ms. Bendersky informed the
committee that she works with those trying to quit their tobacco
habit for the American Lung Association. Ms. Bendersky said that
she has spent the last three years pursuing a degree in Public
Health. When trying to decide her focus, Ms. Bendersky determined
the most preventable problem of death and disability was the use of
tobacco. Currently, Ms. Bendersky works for RURALCAP as the Health
Coordinator for the Headstart Program. This allows her to travel
quite a bit, she has been appalled by the number of youth smoking
and chewing tobacco. For the most part, these youth are receiving
the tobacco from older youth and purchasing them directly from
vendors. Ms. Bendersky reiterated Mr. Hanley's comments regarding
the need to focus on the enforcement of existing laws. This tax
represents a good policy. Ms. Bendersky urged the committee to
pass the bill on to the next committee.
JEAN MURRAY , a non smoker testifying from Anderson, supported the
tobacco tax increase. Ms. Murray encouraged the committee to bring
the legislation before the floor. This is a tax on the user. In
the long-term, this tax will reduce the cost of Medicare and
Medicaid. Ms. Murray believed that families could encourage their
children to do positive things such as running, swimming, skiing
and skating. The importance of smuggling is overestimated. Ms.
Murray indicated that the military and small, rural business owners
may cooperate with this.
Number 269
RON HAMMETT , Vice Chairman of the State Legislative Committee for
the American Association of Retired Persons (AARP), noted that a
survey of some of the over 40,000 members in Alaska found that the
majority of AARP members support a tobacco tax increase of at least
$1.00 per pack. There is good reason, as previous testimony
indicated, that a tobacco tax increase would reduce the sale of
tobacco. Mr. Hammett believed that there are many other things
that could be done to reduce smoking. This tax increase would
effect the population as a whole, but the main concern is younger
people. With regards to where the money is allocated, Mr. Hammett
indicated that however the legislation can be passed is of
importance. However, if the money is dedicated to school
construction everyone wins even if smoking does not decrease. In
conclusion, Mr. Hammett related his experiences as a former smoker
and friend of smokers.
MARGARET WRIGHT , Board member of the Alaska Health Association,
stated that the organization believed that at least a $1.00 per
pack tobacco tax is necessary for the health of all Alaskans. Ms.
Wright related the true story of a two-year-old child who has had
so many ear infections that he had to have surgery to place tubes
in his ears, he is prone to colds, and has already experienced
reactive airway disease. The parents of this child smoke which
does not help. The parents smoke outside, even in winter storms,
to protect their child because they believe some of his problems
are a result of their smoking. Smoking outside the house does not
really protect the child; research in Bethel and the AMC has shown
that the clothes worn by smokers outside have enough smoke and
residue to increase the number of colds children have. Ms. Wright
discussed how easy cigarettes are to obtain in the villages;
cigarettes are cheaper than a candy bar.
Number 141
A significant tax increase of at least $1.00 would help these
people and their children. Studies show that for every 10 percent
increase in the tobacco tax about 10 percent fewer teens start
smoking. National numbers as well as those in Alaska show that
teens are the ones who start smoking, not adults. This year in
Alaska, 36 percent of high school children are smokers. Ms. Wright
reiterated that 84 percent of adult smokers started before the age
of 18, as did the parents of the two-year-old. The tax increase
will reduce teen consumption of tobacco. Ms. Wright said that the
message that cigarettes are unhealthy has reached parents and their
children, now that message should be transmitted to the tobacco
industry. Increase the tobacco tax to at least $1.00 per pack.
KIM GREER , Health Care Professional, informed the committee that
she was allied with the Homer Tobacco Alliance, Citizens to Protect
Kids from Tobacco, and any other organization that promotes health.
Ms. Greer noted that she is an Education Coordinator for the
Central Peninsula Hospital and teaches tobacco education in the
school. She grew up in second-hand smoke for 18 years. She urged
the committee to listen to the statistics given by the American
Lung Association, the American Cancer Society, the DCD, former
Surgeon General Koop and not the tobacco industry. Ms. Greer
related her experience with the results of smoking on her father
and patients. This tax is about the children, health and our
future. Research shows that when tobacco prices rise, consumption
declines. The majority of Alaskans support this tax. Ms. Greer
assured the committee of her dedication to decrease youth tobacco
consumption at the local level and urged the legislators to move
any bill to tax tobacco by at least a $1.00 or more.
REX SHATTUCK , retired military, pointed out that after listening to
House sessions and today's testimony, the people speaking represent
a few different factions. There were very few speaking as regular
people. Mr. Shattuck said that the price nor price increases
deterred him from smoking, the urging from his two sons ultimately
made him quit. However, he could not accept a 344 percent tax
increase which cannot be earmarked for what it is designated. In
the House legislation, Mr. Shattuck noted that for the money to go
into education a constitutional amendment was necessary. Although
he said that he was not as versed in the Senate bills, he believed
the same approach was being taken. This legislation is a tax
increase and Mr. Shattuck did not ideologically support raising
revenue from taxes. He suggested finding a better way of educating
youth.
TAPE 97-8, SIDE A
CHAIRMAN WILKEN asked if there was anyone else on teleconference
who would like to provide testimony. Hearing none, Chairman Wilken
thanked everyone and asked if anyone in the room would like to
provide testimony. Hearing none, he asked the committee if they
had any comments.
Number 013
SENATOR LEMAN noted that SB 61 adjusts for inflation with the CPI
adjustment which is a common approach. After some research, he
concluded that the CPI overstates inflation in many areas.
Perhaps, that question could be reviewed in Senate Finance.
Senator Leman noticed that today's testimony was devoid of any
input from the tobacco industry. He encouraged the tobacco
industry to come forward with testimony.
CHAIRMAN WILKEN commented that some say this legislation is a tax
increase and others believe it is a cost/tax shift from all
Alaskans to the users. He hoped that both of those view points
would be considered by the committee. Hearing no further
discussion, Chairman Wilken announced that testimony would be taken
on this issue on Monday. There being no further business before
the committee, the meeting was adjourned at 10:35 a.m.
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