HCS HB 1162 -- EXCISE TAX AND ALCOHOL-RELATED PROBLEMS

SPONSOR:  Cooper, 155 (Deeken)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Health
Care Policy by a vote of 11 to 0.

This substitute creates the Fund for the Reduction of
Alcohol-Related Problems and Underage Drinking to be administered
by the State Treasurer.  The fund will receive moneys through
appropriation by the General Assembly, private donations, and
excise tax revenues from the sale of alcohol.  The funds will be
implemented over a three-year period, beginning in Fiscal Year
2008 with one-third of the amount received to be deposited into
the fund.  For Fiscal Year 2009, two-thirds will be deposited;
and for Fiscal Year 2010, all moneys received will be deposited
into the fund.

Half of the moneys in the fund will be used for prevention and
law enforcement and half for treatment and recovery of
alcohol-related problems through statutory programs.
"Alcohol-related problems" are defined and described, along with
examples of services and programs.

The provisions of the substitute will expire six years from the
effective date.

FISCAL NOTE:  Estimated Cost on General Revenue Fund of $0 in
FY 2007, $9,057,551 in FY 2008, and $18,115,103 in FY 2009.  No
impact on Other State Funds in FY 2007, FY 2008, and FY 2009.

PROPONENTS:  Supporters say the bill will give the citizens of
Missouri the opportunity to decide if they are willing to support
an excise tax increase on the sale of alcohol.  Currently,
Missouri has the second lowest excise tax on beer, and the tax
has not been increased in 36 years.  Treatment and prevention are
the best methods in handling alcohol-related problems; however,
limited budgets result in treatment centers having long waiting
lists and often turning people away at crucial times.  The bill
will have only an insignificant affect on non-problem drinkers
and no affect on those who do not drink.

Testifying for the bill were Representative Deeken; Missouri
Recovery Network; United Methodist Church Missouri Conference
Task Force on Alcohol, Tobacco, and Other Drugs; Mothers Against
Drunk Driving - Missouri; National Alliance on Mental Illness;
Preferred Family Healthcare; Crossroads Community Recovery
Center; Missouri's Youth/Adult Alliance; National Council on
Alcoholism and Drug Abuse; Southeast Missouri Youth Substance
Abuse Coalition; Amanda Davis; Jamie Myers; Amanda Underwood;
Patty Berger; Edward Duff; Kathy Neal; Kelly Vansell; Donald V.
Cline; Ed Moses; Don Carter; Bill Tackett; Connie Berhorst;
Daphne Walker-Thoth; Jamie Scott; and Gary Hillebrand.

OPPONENTS:  Those who oppose the bill say that one industry
should not be singled out to pay for services that are available
to everyone.  Last year this industry paid $29 million in excise
tax fees, and there is a need to see where this money is being
spent.  Some argue that the increase in the tax will be
ineffective since treatment success is greater for those who seek
help, rather than for those who were court ordered.  It is the
responsibility of parents to look after their children and not
the duty of the government.  Some questioned if citizens would be
able to understand the bill if it went to a referendum.

Testifying against the bill were Anheuser-Busch, Incorporated;
Missouri Beer Wholesalers Association; Miller Brewing Company;
and Missouri Wine and Grape Board.

OTHERS:  Others testifying on the bill say that more money for
alcohol and drug treatment will help many people.

Others testifying on the bill were Missouri Partners in
Prevention; Department of Mental Health; and Honorable Peggy D.
Davis.

Dominic Lackey, Legislative Analyst

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:42 am