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