CS FOR SENATE BILL NO. 42(CRA):                                              
                                                                               
       An Act  relating  to municipal  taxation  of  alcoholic                 
       beverages; and providing for an effective date.                         
                                                                               
  Co-chair Pearce announced  that CSSB 42(CRA) was  before the                 
  committee.  SENATOR GEORGE JACKO, sponsor of  the bill, said                 
  that  CSSB  42(CRA)   would  allow  municipalities  to   tax                 
  alcoholic beverages at a  higher rate than other items,  and                 
  to  hold  a  municipal election  to  decide  that  tax.   He                 
  believed  it  was  an additional  revenue  tool  for smaller                 
  communities with a population of less than 2,500.  In answer                 
  to Co-chair Frank, Senator Jacko said that limiting the size                 
                                                                               
                                                                               
  of the community was done by  Senator Miller.  Senator Jacko                 
  would  have  preferred   that  it   was  available  to   all                 
  communities.                                                                 
                                                                               
  Senator Kerttula voiced his  support on taxing alcohol.   He                 
  pointed out that if  the tax is too high,  bootlegging could                 
  result.  Senator Jacko also voiced his concern in that area,                 
  that this legislation would  leave the amount of the  tax up                 
  to the community,  letting the community judge the  limit of                 
  the tax for themselves.                                                      
                                                                               
  Senator  Jacko  MOVED  for  passage  of  CSSB  42(CRA)  from                 
  committee with  individual recommendations.   No  objections                 
  being raised,  CSSB 42(CRA)  was REPORTED  OUT of  committee                 
  with a zero fiscal  note for the Department of  Commerce and                 
  Economic  Development.   Co-chairs  Frank,  Pearce, Senators                 
  Kerttula, Rieger, and Jacko signed the committee report with                 
  a "do pass" recommendation.  Senator Sharp and Kelly did not                 
  sign.                                                                        
                                                                               
  ADJOURNMENT                                                                  
                                                                               
  The meeting was adjourned at approximately 10:10 a.m.