Action Alert SF 296

SF 296 (nickle-a-drink) proposes to raise the alcohol excise tax and dedicate funds towards prevention, treatment and enforcement. This is an important policy that will reduce youth access to alcohol and fund important efforts in Minnesota.

At the hearing on Friday, February 16 there was no vote taken on SF 296 which means that it will be discussed further in this committee at a later date. We will will send out an action alert when there is another hearing.

The overall testimony from supporters of the bill was excellent. Testifiers included researchers from the University of Minnesota, treatment advocates and citizens in recovery from alcohol. There was excellent attendance by advocates for the bill at this hearing.

The Minnesota License Beverage Association (MLBA) testified against the bill as well as a bar owner from Albert Lee.

It appeared that the Crime Prevention Committee did not seem to be against the bill, but we won't know till the vote takes place. Several Senators requested further data on how effective an alcohol excise tax is in reducing alcohol-related problems.

Please take the time and call the following legislators and ask them to support SF 296.

Crime Prevention Committee Members

Chair: Sen. Jane Ranum - District 63
Ph: 651-297-8061
E-mail: sen.jane.ranum@senate.leg.state.mn.us

Vice chair: Leo Foley - District 49
Ph: 651-296-4154
E-mail: sen.leo.foley@senate.leg.state.mn.us

Ranking Minority member: Thomas M. Neuville -District 25
Ph: 651-296-1279
E-mail: sen.thomas.neuville@senate.leg.state.mn.us

Members:

Senator Linda Berglin - District 61
Ph: 651-296-4261
E-mail: sen.linda.berglin@senate.leg.state.mn.us

Senator Don Betzold - District 48
Ph: 651-296-2556
E-mail: sen.don.betzold@senate.leg.state.mn.us

Senator Satveer Chaudhary - District 52
Ph: 651-296-4334
E-mail: sen.satveer.chaudhary@senate.leg.state.mn.us

Senator Randy C. Kelly - District 67
Ph: 651-296-5285
E-mail: sen.randy.kelly@senate.leg.state.mn.us

Senator Dave Kleis - District 16
Ph: 651-296-6455
E-mail: sen.dave.kleis@senate.leg.state.mn.us

Senator Jane Krentz - District 51
651-296-7061
E-mail: sen.jane.krentz@senate.leg.state.mn.us

Senator Warren Limmer - District 33
Ph: 651-296-2159
E-mail: sen.warren.limmer@senate.leg.state.mn.us

Senator Gen Olson - District 34
Ph: 651-296-1282
E-mail: sen.gen.olson@senate.leg.state.mn.us

Senator Grace S. Schwab - District 27
Ph: 651-296-9248
E-mail: sen.grace.schwab@senate.leg.state.mn.us

BACKGROUND:
Raising the alcohol excise tax is the single most effective strategy for lowering alcohol-related problems, especially among youth.^1-5 Increases in the alcohol tax greatly reduce alcohol consumption, particularly among youth and young adults and decrease alcohol-related violence and crime.⁶

Numerous economic studies have demonstrated that increasing alcohol excise taxes is one of the most effective means of saving young lives and reducing the incidence of liver cirrhosis mortality, the eleventh leading cause of death in the United States. Other studies have noted that alcohol price increases help raise college graduation rates and reduce crime.⁷

Alcohol taxes are low by historical and international standards. Past alcohol tax increases have not caught up with the rate of inflation. As a result, the real value of state alcohol taxes has declined by over 50 percent since 1966, and the excise tax in Minnesota has not been indexed to inflation since 1987.

Public support for increasing the alcohol tax is widespread. Three out of four Minneapolis residents and four out of five (80%) Minnesota residents "strongly favor" or "somewhat favor" an increase of five cents per drink in the tax on beer, wine, and liquor sold, to pay for programs to prevent underage youth from drinking and to pay for more alcohol treatment programs.^{8, 9}

References:
1. Stewart, KS. Strategies to reduce underage alcohol use: typology and brief overview. Pacific Institute for Research and Evaluation. Second Printing, June 1999.
2. Chaloupka, FJ, Grossman, M & Saffer, H. The effects of price on alcohol consumption. Alcohol Health and Research World, in press.
3. Chaloupka, FJ, Grossman, M & Saffer, H. The effects of price on the consequences of alcohol use and abuse. Recent Dev. Alcohol, 14:331-346, 1998.
4. Saffer, H & Grossman, M. Beer taxes, the legal drinking age and youth motor vehicle fatalities. Journal of Legal Studies, 16:351-374, 1987.
5. Manning, WG., Blumberg, L & Moulton, LH. The demand for alcohol: the differential response to price. Journal of Health Economics, 14:123-148, 1995.
6. Chaloupka, FJ, & Staffer, H. Illegal Drugs, Public Policy and Crime. Presented at the annual meeting of the Western Economic Association, San Francisco, California, July 1992.
7. Center for Science in the Public Interest. State alcohol taxes and health: a citizen’s action guide. Washington D.C., 1996.
8. Minneapolis Department of Health and Family Support (MN). Minneapolis teenage access to alcohol survey results. Wilder Research Center, St. Paul, MN. February 1998.
9. Robert Wood Johnson Foundation (RWJF) 1997. The 1997 RWJF Alcohol Policy Survey. Available Minnesota Join Together, Anoka, MN Tel: 612-427-7303.