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HB 413: "An Act relating to the burning capability of cigarettes being sold, offered for sale, or possessed for sale; and providing for an effective date."

00 HOUSE BILL NO. 413 01 "An Act relating to the burning capability of cigarettes being sold, offered for sale, or 02 possessed for sale; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. The uncodified law of the State of Alaska is amended by adding a new section 05 to read: 06 LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that 07 (1) cigarettes are the leading cause of fire deaths in the United States each 08 year, claiming 1,000 lives and causing nearly 2,000 injuries and nearly $400,000,000 in direct 09 property damage; 10 (2) technology exists to significantly reduce the number of fires caused by 11 cigarettes; 12 (3) the states of New York and California have enacted cigarette fire safety 13 statutes that require that cigarettes sold in those states meet a fire safety performance 14 standard;

01 (4) New York state's cigarette fire safety performance standard is based on 02 decades of research by the National Institute of Standards and Technology, congressional 03 research groups, and private industry; and 04 (5) cigarettes meeting fire safety performance standards have been found not 05 to increase the costs to consumers. 06 (b) It is the intent of the Legislature to adopt 07 (1) a cigarette fire safety performance standard that is similar to the standard 08 that is in effect in California in order to reduce the likelihood that cigarettes will cause fires 09 that result in deaths, injuries, and property damage; 10 (2) a cigarette fire safety performance standard that has a minimum cost to the 11 state. 12 (c) The legislature declares that establishing fire safety performance standards for 13 cigarettes sold in this state in order to protect the health and safety of the people of this state is 14 within the police powers of this state. 15 * Sec. 2. AS 18 is amended by adding a new chapter to read: 16 Chapter 74. Cigarette Fire Safety. 17 Sec. 18.74.010. Requirement for sale. A person may not sell, offer to sell, or 18 possess for sale in this state cigarettes unless 19 (1) the cigarettes are tested by the manufacturer under AS 18.74.030 20 and satisfy the standard in AS 18.74.030(d), are tested under AS 18.74.050 and satisfy 21 a standard equivalent to the standard in AS 18.74.030(d), or are exempt under 22 AS 18.74.060; 23 (2) the cigarettes comply with the banding requirement of 24 AS 18.74.040, if applicable; 25 (3) the cigarettes comply with the marking requirements of 26 AS 18.74.120 - 18.74.150; and 27 (4) the manufacturer complies with the certification requirements of 28 AS 18.74.080 - 18.74.100. 29 Sec. 18.74.020. Exemptions from requirement. (a) The prohibition in 30 AS 18.74.010 does not prohibit a person from manufacturing or selling cigarettes that 31 do not meet the requirements of AS 18.74.010 if the cigarettes are or will be affixed

01 with a tax stamp payment indicator for sale in another state or are placed in packaging 02 for sale outside the United States. In this subsection, "tax payment indicator" means 03 the indicator of payment of a tobacco tax, including a stamp, a meter impression, or 04 another method for indicating the payment of the tax. 05 (b) This chapter does not apply to cigarettes sold by a facility operated by an 06 agency of the United States, including a facility operated by the uniformed services of 07 the United States. In this subsection, "uniformed services" has the meaning given in 5 08 U.S.C. 2101. 09 Sec. 18.74.030. Testing of cigarettes. (a) Cigarettes shall be tested under 10 (1) the ASTM International Standard E2187-04, entitled "Standard 11 Test Method for Measuring the Ignition Strength of Cigarettes"; or 12 (2) a test method established under (b) of this section. 13 (b) The state fire marshal may adopt an ASTM International standard test 14 method that is adopted by the American Society of Testing and Materials after the 15 standard test method identified under (a) of this section. The state fire marshal may not 16 adopt this standard test method unless the state fire marshal makes a finding regarding 17 the test method. The finding must state that the method does not result in a change in 18 the percentage of full-length burns exhibited by any tested cigarette when compared to 19 the percentage of full-length burns that the same cigarette would exhibit when tested 20 under 21 (1) the standard test method identified under (a)(1) of this section; and 22 (2) the criteria established under (c) - (e) of this section. 23 (c) The testing under this section shall be conducted on 10 layers of filter 24 paper. A complete test trial consists of 40 replicate tests of each cigarette. 25 (d) When tested under (a) of this section, only 25 percent or less of the 26 cigarettes tested in a test trial may exhibit full-length burns in order to pass the test. 27 (e) A laboratory that conducts cigarette testing under this section shall 28 implement a quality control and quality assurance program that ensures the 29 repeatability of the testing results. The repeatability value may not be greater than 0.19 30 under (d) of this section. In this subsection, 31 (1) "quality control and quality assurance program" means the

01 laboratory procedures implemented to ensure that operator bias, systematic and 02 nonsystematic methodological errors, and equipment-related problems do not affect 03 the results of the testing quality control program; 04 (2) "repeatability" means the range of values within which the repeat 05 results of cigarette test trials from a single laboratory will fall 95 percent of the time. 06 Sec. 18.74.040. Banding requirement. Each cigarette listed in a certification 07 submitted under AS 18.74.080 that uses lowered permeability bands in the cigarette 08 paper to achieve compliance with the testing standard in AS 18.74.030(d) must have at 09 least two nominally identical bands on the paper surrounding the tobacco column. At 10 least one complete band must be located at least 15 millimeters from the lighting end 11 of the cigarette. For cigarettes on which the bands are positioned by design, there must 12 be at least two bands fully located at least 13 (1) 15 millimeters from the lighting end; and 14 (2) 10 millimeters from 15 (A) the filter end of the tobacco column; or 16 (B) the labeled end of the tobacco column of a nonfiltered 17 cigarette. 18 Sec. 18.74.050. Alternate test method. A manufacturer of cigarettes that 19 cannot be tested by a test method established in AS 18.74.030(a) may use a test 20 method that is different from the test method established in AS 18.74.030(a) and may 21 satisfy a standard that is equivalent to the testing standard in AS 18.74.030(d). The 22 manufacturer may employ that test method and performance standard to certify the 23 cigarette under AS 18.74.080, but all other applicable requirements of this chapter 24 apply to the manufacturer of the cigarette. 25 Sec. 18.74.060. Exemption from testing. AS 18.74.030 does not require 26 cigarettes to be tested if the cigarettes are tested for another purpose and the testing is 27 consistent with AS 18.74.030 - 18.74.050. 28 Sec. 18.74.070. Maintenance of records. A manufacturer shall keep data from 29 testing conducted by the manufacturer to comply with AS 18.74.030 - 18.74.050 on 30 file for three years after the initial date of certification or for three years after each 31 recertification required under AS 18.74.100. The manufacturer shall provide the data

01 to the state fire marshal and the attorney general on the request of the state fire 02 marshal or the attorney general. 03 Sec. 18.74.080. Certification requirement. A manufacturer shall certify in 04 writing to the state fire marshal that each brand of cigarette listed in the certificate has 05 been tested under AS 18.74.030 and satisfies the testing standard in AS 18.74.030(d), 06 or has been tested under AS 18.74.050 and satisfies a standard equivalent to the 07 standard in AS 18.74.030(d). 08 Sec. 18.74.090. Contents of certification. The certification required by 09 AS 18.74.080 must provide the following information for each brand of cigarette 10 listed in the certification: 11 (1) the brand; 12 (2) the style; 13 (3) the length in millimeters; 14 (4) the circumference in millimeters; 15 (5) the flavor, if applicable; 16 (6) whether the cigarette is filtered or nonfiltered; 17 (7) a description of the pack; and 18 (8) the marking approved under AS 18.74.120. 19 Sec. 18.74.100. Recertification schedule. Each brand of cigarette certified 20 under AS 18.74.080 shall be recertified every three years. 21 Sec. 18.74.110. Provision of copies. A manufacturer who certifies a brand of 22 cigarette under AS 18.74.080 shall provide a copy of the certification to each 23 distributor or wholesaler to whom the manufacturer sells the cigarette. The 24 manufacturer shall also provide the distributor or wholesaler with sufficient copies of 25 an illustration of the cigarette packaging marking used by the manufacturer under 26 AS 18.74.130 to enable the distributor or wholesaler to give a copy to each retailer to 27 whom the distributor or wholesaler sells cigarettes. A distributor or wholesaler shall 28 provide a copy of the cigarette packaging markings received from a manufacturer to 29 each retailer to whom the distributor or wholesaler sells cigarettes. 30 Sec. 18.74.120. Certification marking approval. Before a brand of cigarette 31 may be sold in the state, a manufacturer shall submit its proposed marking to the state

01 fire marshal. The state fire marshal shall approve the marking if the state fire marshal 02 finds that it complies with AS 18.74.130. Proposed markings shall be considered 03 approved if the state fire marshal fails to act within 10 business days after receiving a 04 proposed marking. 05 Sec. 18.74.130. Contents of certification marking. The packaging containing 06 a brand and style of cigarette that a manufacturer certifies under AS 18.74.080 must be 07 marked to indicate compliance with the requirements of this chapter. The marking 08 must be in eight-point type or larger and consist of 09 (1) a modification of the universal product code to include a visible 10 mark printed at or around the area of the code; the mark may consist of alphanumeric 11 or symbolic characters and must be permanently stamped, engraved, embossed, or 12 printed in conjunction with the universal product code; 13 (2) any visible combination of alphanumeric or symbolic characters 14 permanently stamped, engraved, or embossed on the packaging; or 15 (3) printed, stamped, engraved, or embossed text on the cigarette 16 packaging that indicates that the cigarettes satisfy the requirements of this chapter. 17 Sec. 18.74.140. Uniformity in marking. A manufacturer shall use only one 18 marking for certification and apply this marking uniformly to all packaging and to all 19 brands marketed by the manufacturer. 20 Sec. 18.74.150. Modification of marking. A manufacturer who modifies the 21 manufacturer's marking shall notify the state fire marshal of this modification and 22 submit to the state fire marshal a copy of the new marking. The new marking must 23 comply with AS 18.74.130 and 18.74.140. 24 Sec. 18.74.160. Penalties for violations. (a) A manufacturer or another person 25 who knowingly sells or offers to sell cigarettes other than through retail sale and in 26 violation of this chapter is subject to a civil penalty not to exceed $10,000 for each 27 sale. 28 (b) A retailer, distributor, or wholesaler who knowingly sells or offers to sell 29 cigarettes in violation of this chapter is subject to 30 (1) a civil penalty not to exceed $500 for each sale or offer for sale in 31 which the total number of cigarettes sold or offered for sale does not exceed 50 packs

01 of cigarettes; 02 (2) a civil penalty not to exceed $1,000 for each sale or offer for sale in 03 which the total number of cigarettes sold or offered for sale exceeds 50 packs of 04 cigarettes. 05 (c) In addition to any other penalty prescribed by law, a person engaged in the 06 manufacture of cigarettes who knowingly makes a false certification under 07 AS 18.74.080 is subject to a civil penalty not to exceed $10,000 for each false 08 certification. 09 (d) If a person violates a provision of this chapter and a civil penalty is not set 10 for the violation, the person is subject to a civil penalty not to exceed $1,000 for each 11 violation. 12 (e) The state fire marshal and the attorney general may enforce the penalties 13 established under this section. 14 Sec. 18.74.170. Defense to action for civil penalty. It is a defense in an action 15 for a civil penalty under AS 18.74.160 that a distributor, wholesaler, retailer, or 16 another person in the stream of commerce relied in good faith on the manufacturer's 17 certification or marking that the cigarettes complied with the requirements of this 18 chapter. 19 Sec. 18.74.180. Separate accounting. The civil penalties imposed under 20 AS 18.74.160 shall be deposited into the general fund and separately accounted for 21 under AS 37.05.142. The legislature may appropriate the money received under this 22 section to the cigarette fire safety fund established under AS 18.74.220. 23 Sec. 18.74.190. Seizure of cigarettes. (a) If the state fire marshal or a law 24 enforcement agency of the state discovers that a person is offering or possesses for 25 sale, or has made a sale of, a cigarette in violation of AS 18.74.010, the state fire 26 marshal or the law enforcement agency may seize or dispose of the cigarette. 27 (b) If a cigarette is sold or offered for sale and the cigarette does not comply 28 with the testing standard in AS 18.74.030(d), does not comply with an equivalent 29 standard under AS 18.74.050, or is not exempt under AS 18.74.020 or 18.74.060, the 30 state fire marshal or a law enforcement agency of the state may seize and dispose of 31 the cigarette.

01 (c) Before disposal of a cigarette under (a) or (b) of this section, the state fire 02 marshal or the law enforcement agency of the state shall provide the person from 03 whom the cigarette was seized with notice of the seizure and an opportunity for a 04 hearing regarding the seizure. 05 Sec. 18.74.200. Other remedies. The attorney general may bring an action to 06 restrain violations of this chapter and to obtain other relief that may be appropriate. 07 Sec. 18.74.210. Inspection of violation site. (a) The state fire marshal or a law 08 enforcement agency of the state may inspect a site where cigarettes are sold, offered 09 for sale, or stored, or any site where there is evidence of a violation of AS 18.74.010. 10 (b) A manufacturer, distributor, wholesaler, or retailer shall permit an 11 employee of the state fire marshal or a law enforcement agency of the state, on 12 presentation of the appropriate identification and credentials, to enter into and conduct 13 an inspection of a building, facility, or other site described in (a) of this section. 14 Sec. 18.74.220. Cigarette fire safety fund. (a) The cigarette fire safety fund is 15 established. The fund consists of appropriations made to the fund. 16 (b) The purpose of the fund is to pay the expenses of the state fire marshal for 17 implementing and enforcing this chapter. 18 (c) Money appropriated to the fund may be spent for the purposes of the fund 19 without further appropriation. Money appropriated to the fund does not lapse. 20 Sec. 18.74.230. Relationship to federal law. If a provision of this chapter is 21 preempted by or conflicts with federal law in a particular situation, the provision does 22 not apply to the extent of the preemption or conflict. 23 Sec. 18.74.290. Definitions. In this chapter, 24 (1) "cigarette" means any roll for smoking, made wholly or in part of 25 tobacco, irrespective of size or shape and irrespective of whether the tobacco is 26 flavored, adulterated, or mixed with another ingredient, if the roll has a wrapper or 27 cover made of paper or another material, unless the wrapper is wholly or in the greater 28 part made of tobacco and the roll weighs over three pounds for each one thousand 29 cigarettes; 30 (2) "distributor" means a person who distributes cigarettes or who sells 31 or accepts orders for cigarettes that are to be transported from a point outside this state

01 to a person in this state; 02 (3) "manufacturer" means 03 (A) a person who manufactures or otherwise produces 04 cigarettes, or causes cigarettes to be manufactured or produced, if the 05 manufacturer intends the cigarettes to be sold in the state, including cigarettes 06 intended to be sold in the United States through an importer; 07 (B) the first purchaser who intends to resell in the United States 08 cigarettes that the original manufacturer or maker does not intend to be sold in 09 the United States; or 10 (C) a person who becomes a successor of a person described in 11 (A) or (B) of this paragraph; 12 (4) "offer to sell" means to offer or agree to sell; 13 (5) "pack" means the individual pack, box, or other container in which 14 retail sales of cigarettes are normally made or intended to be made, but does not 15 include a container that contains smaller packaging units of cigarettes; 16 (6) "packaging" includes packs, boxes, cartons, cases, other containers 17 and wrapping; 18 (7) "retailer" has the meaning given in AS 43.50.170; 19 (8) "sale" or "sell" means a transfer, exchange, or barter, in any manner 20 or by any means, or an agreement to transfer, exchange, or barter, and includes 21 (A) giving cigarettes as samples, prizes, or gifts; or 22 (B) exchanging cigarettes for any consideration other than 23 money; 24 (9) "wholesaler" has the meaning given in AS 43.50.849. 25 Sec. 18.74.295. Short title. This chapter may be cited as the Alaska Cigarette 26 Fire Safety Act. 27 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 28 read: 29 TRANSITION. (a) AS 18.74.010, enacted by sec. 2 of this Act, does not prohibit a 30 distributor, wholesaler, or retailer from selling or offering to sell an inventory of cigarettes 31 existing on July 1, 2007, if the distributor, wholesaler, or retailer establishes that

01 (1) a stamp or meter impression was affixed to the cigarettes under AS 43.50 02 before July 31, 2007; and 03 (2) the inventory was purchased before July 1, 2007, in comparable quantity to 04 the inventory purchased during the same period of 2005. 05 (b) In this section, 06 (1) "distributor," "offer to sell," "retailer," "sell," and "wholesaler" have the 07 meanings given in AS 18.74.290; 08 (2) "tax payment indicator" has the meaning given in AS 18.74.020(a). 09 * Sec. 4. This Act takes effect July 1, 2007.