MINUTES SENATE COMMITTEE ON FINANCE Subcommittee on State Excise Taxes Tuesday, June 4, 2002 10:00 a.m. Capitol Extension, Room E1.036 ***** Pursuant to a notice posted in accordance with Senate Rule 11.18, a public hearing of the Senate Committee on Finance was held on Tuesday, June 4, 2002, in the Capitol Extension, Room E1.036, at Austin, Texas. ***** MEMBERS PRESENT: MEMBERS ABSENT: Senator Rodney Ellis Senator Chris Harris Senator Gonzalo Barrientos Senator Troy Fraser Senator Robert Duncan Senator Steve Ogden Senator Mike Jackson Senator Carlos Truan Senator Jon Lindsay Senator Eddie Lucio, Jr. Senator Todd Staples Senator John Whitmire Senator Judith Zaffirini ***** The chair called the meeting to order at 10:05 a.m. The chair made opening remarks and welcomed Senator Averitt to the hearing. There being a quorum present, the following business was transacted: Invited Testimony: John Keel, representing the Legislative Budget Board, answered questions and provided a detailed presentation entitled, Streamlined Sales Tax Implementing States Overview. Elenor Kim, representing the Comptroller of Public Accounts, was available throughout the hearing to answer questions and provide testimony on excise taxes. John Heleman, representing the Comptroller of Public Accounts, was available throughout the hearing to answer questions and brief the committee on excise taxes. Public Testimony: Mickey Moore, representing the Institute for State Studies, provided the committee with information on the key issues faced by most states surrounding the application of sales tax on remote sales. John Johnson, Michael Behrens and Thomas Doebner, all representing the Texas Department of Transportation, answered questions and briefed the committee on motor fuel taxes, their exemptions, and their effect on the Texas Department of Transportation. Glenn Gadbois, representing Just Transportation Alliances, provided a report entitled, Texas' Crisis in Transportation. Cyrus Reed, representing Texas Center for Policy Studies, answered questions and provided oral and written testimony concerning gasoline and diesel fuel taxes. Vic Suhm, representing North Texas Commission, answered questions and provided oral and written testimony concerning gasoline and diesel fuel taxes. Dr. Mark Canton, representing American Cancer Society, answered questions and provided oral testimony on tobacco taxes. Carter Headrick, representing the Campaign For Tobacco-Free Kids, answered questions and provided a handout entitled, Active State Cigarette Tax Increase Proposals. Dr. David Loose-Mitchell, representing the American Heart Association, answered questions from the committee and submitted a handout supporting a raise in cigarette taxes. Jay McCullough, representing Trust For a Smoke-Free Texas, answered questions from the committee. Ed Carter, representing the American Lung Association of Texas, answered questions from the committee. Ellen Ward, representing Texans Standing Tall, Mike McKinney, representing the Wholesale Beer Distributors of Texas, answered questions and submitted a packet entitled, Perspectives on the Taxation of Beer and Other Alcoholic Beverages in Texas. Bill Lewis, representing Mother's Against Drunk Driving, provided the committee with written and oral testimony. There being no further business, at 2:11 p.m. Senator Ellis moved that the Committee stand recessed subject to the call of the chair. Without objection, it was so ordered. ______________________ Senator Rodney Ellis, Chair ______________________ Amber Martin, Clerk