CSHB 188(HSS): "An Act relating to the taxation of moist snuff tobacco, including spitless moist snuff tobacco; including different types of moist snuff tobacco in the definition of 'tobacco product' in provisions levying an excise tax on those products; relating to licensing for and taxation of tobacco products, including tobacco products imported for personal use and consumption; relating to the deposit of revenue from the taxation of moist snuff tobacco into the tobacco use education and cessation fund; defining 'moist snuff tobacco'; relating to the business license endorsement for the sale of tobacco products; relating to the offense of selling tobacco to a minor; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 188(HSS) 01 "An Act relating to the taxation of moist snuff tobacco, including spitless moist snuff 02 tobacco; including different types of moist snuff tobacco in the definition of 'tobacco 03 product' in provisions levying an excise tax on those products; relating to licensing for 04 and taxation of tobacco products, including tobacco products imported for personal use 05 and consumption; relating to the deposit of revenue from the taxation of moist snuff 06 tobacco into the tobacco use education and cessation fund; defining 'moist snuff 07 tobacco'; relating to the business license endorsement for the sale of tobacco products; 08 relating to the offense of selling tobacco to a minor; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 11.76.100(a) is amended to read: 11 (a) A person commits the offense of selling or giving tobacco or nicotine to a 12 minor if the person
01 (1) negligently sells a cigarette, a cigar, tobacco, or a product 02 containing tobacco or nicotine to a person under 19 years of age; 03 (2) is 19 years of age or older and negligently exchanges or gives a 04 cigarette, a cigar, tobacco, or a product containing tobacco or nicotine to a person 05 under 19 years of age; 06 (3) maintains a vending machine that dispenses cigarettes, cigars, 07 tobacco, or products containing tobacco or nicotine; or 08 (4) holds a business license endorsement under AS 43.70.075 and 09 allows a person under 19 years of age to sell a cigarette, a cigar, tobacco, or a product 10 containing tobacco or nicotine. 11 * Sec. 2. AS 37.05.580(a) is amended to read: 12 (a) There is created as a special account in the general fund the tobacco use 13 education and cessation fund into which shall be deposited 20 percent annually of the 14 revenue derived from the settlement of State of Alaska v. Philip Morris, Incorporated, 15 et al, No. 1JU-97-915 CI (Alaska Super. 1997) and 25 percent of the annual 16 revenue collected from the tax on moist snuff tobacco under AS 43.50.300 - 17 43.50.390. The purpose of the tobacco use education and cessation fund is to provide a 18 source to finance the comprehensive smoking education, tobacco use prevention, and 19 tobacco control program authorized by AS 44.29.020(a)(14). In this subsection, 20 "moist snuff tobacco" has the meaning given in AS 43.50.390. 21 * Sec. 3. AS 43.50.070(b) is amended to read: 22 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 23 43.50.180 or 43.50.300 - 43.50.390, except for a buyer required to be licensed 24 under AS 43.50.320(a)(2). 25 * Sec. 4. AS 43.50.300 is amended to read: 26 Sec. 43.50.300. Excise tax levied. (a) An excise tax is levied on tobacco 27 products in the state at the rate in (b) of this section [RATE OF 75 PERCENT OF 28 THE WHOLESALE PRICE OF THE TOBACCO PRODUCTS]. The tax is levied 29 when a person 30 (1) brings, or causes to be brought, a tobacco product into the state 31 from outside the state for sale;
01 (2) makes, manufactures, or fabricates a tobacco product in the state 02 for sale in the state; [OR] 03 (3) ships or transports a tobacco product to a retailer in the state for 04 sale by the retailer or to an individual for personal consumption; or 05 (4) brings or causes to be brought a tobacco product into the state 06 from outside the state for personal consumption. 07 * Sec. 5. AS 43.50.300 is amended by adding a new subsection to read: 08 (b) The excise tax rate on 09 (1) moist snuff tobacco, other than spitless moist snuff tobacco, is 10 $1.88 multiplied by the number of ounces of moist snuff tobacco, including fractions 11 of an ounce; 12 (2) spitless moist snuff tobacco is 100 percent of the wholesale price; 13 (3) tobacco products other than moist snuff tobacco products subject to 14 the tax rates in (1) and (2) of this subsection is 75 percent of the wholesale price of the 15 tobacco product. 16 * Sec. 6. AS 43.50.300, as amended by sec. 5 of this Act, is amended to read: 17 (b) The excise tax rate on 18 (1) [ MOIST SNUFF TOBACCO, OTHER THAN SPITLESS MOIST 19 SNUFF TOBACCO, IS $1.88 MULTIPLIED BY THE NUMBER OF OUNCES OF 20 MOIST SNUFF TOBACCO, INCLUDING FRACTIONS OF AN OUNCE; 21 (2)] spitless moist snuff tobacco is 100 percent of the wholesale price; 22 (2) [(3)] tobacco products other than spitless moist snuff tobacco 23 products subject to the tax rate [RATES] in (1) [AND (2)] of this subsection is 75 24 percent of the wholesale price of the tobacco product. 25 * Sec. 7. AS 43.50 is amended by adding a new section to read: 26 Sec. 43.50.305. Packaging of certain tobacco products for sale. (a) Cigars, 27 except for cigars that are hand-rolled and wrapped in whole tobacco leaf, shall be sold 28 in packages containing at least five cigars. 29 (b) Smokeless tobacco 30 (1) sold as loose tobacco shall be sold in packages containing at least 31 one ounce;
01 (2) in single-dose units shall be sold only in packages of not less than 02 10 units and in original unaltered manufacturer's packaging. 03 * Sec. 8. AS 43.50.320(a) is repealed and reenacted to read: 04 (a) Except as provided in (g) of this section, a person engaged in an activity 05 described in 06 (1) AS 43.50.300(a)(1) or (3) must be licensed by the department as a 07 distributor; 08 (2) AS 43.50.300(a)(4) must be licensed as a buyer. 09 * Sec. 9. AS 43.50.320(b) is amended to read: 10 (b) The department, upon application and payment of a fee of 11 (1) $50, shall issue a license for one year to a person who applies for a 12 license as a distributor under (a)(1) of this section; 13 (2) $25, shall issue a license for one year to a person who applies 14 for a license as a buyer under (a)(2) of this section. 15 * Sec. 10. AS 43.50.320(d) is amended to read: 16 (d) A license issued under (b)(1) of this section must include the name and 17 address of the licensee, the type of business to be conducted, and the year for which 18 the license is issued. 19 * Sec. 11. AS 43.50.320(e) is amended to read: 20 (e) The department may renew a license issued under 21 (1) (b)(1) of this section for a fee of $50; 22 (2) (b)(2) of this section for a fee of $25. 23 * Sec. 12. AS 43.50.330(a) is amended to read: 24 (a) On or before the last day of each calendar month, a licensee shall file a 25 return with the department. The return must state the number or amount of tobacco 26 products sold by the licensee during the preceding calendar month, the wholesale 27 price or purchase [SELLING] price of the tobacco products, and the amount of tax 28 imposed on 29 (1) [THE] tobacco products other than moist snuff tobacco; 30 (2) moist snuff tobacco other than spitless moist snuff tobacco; and 31 (3) spitless moist snuff tobacco.
01 * Sec. 13. AS 43.50.350 is repealed and reenacted to read: 02 Sec. 43.50.350. Disposition of proceeds. (a) The tax collected by the 03 department, other than the tax collected on moist snuff tobacco, shall be deposited in 04 the general fund. 05 (b) Of the tax collected by the department on moist snuff tobacco, 06 (1) 25 percent shall be deposited in the tobacco use education and 07 cessation fund established in AS 37.05.580; and 08 (2) 75 percent shall be deposited in the general fund. 09 (c) The annual estimated balance in the account maintained by the 10 commissioner of administration under AS 37.05.142 may be used by the legislature to 11 make appropriations for health care, health research, health promotion, and health 12 education programs. 13 * Sec. 14. AS 43.50.390(1) is amended to read: 14 (1) "distributor" means a person who 15 (A) brings, or causes to be brought, a tobacco product into the 16 state from outside the state for sale; 17 (B) makes, manufactures, or fabricates a tobacco product in the 18 state for sale in the state; or 19 (C) ships or transports a tobacco product to a retailer in the 20 state for sale by the retailer or to an individual for personal consumption; 21 * Sec. 15. AS 43.50.390(2) is amended to read: 22 (2) "licensee" means a distributor or buyer who is 23 (A) licensed under AS 43.50.320; or 24 (B) exempted by AS 43.50.320(g) from licensing under 25 AS 43.50.320; 26 * Sec. 16. AS 43.50.390(4) is amended to read: 27 (4) "tobacco product" means 28 (A) a cigar, including any roll of tobacco wrapped in leaf 29 tobacco; 30 (B) a cheroot; 31 (C) a stogie;
01 (D) a perique; 02 (E) snuff tobacco, including moist snuff tobacco, and snuff 03 flour; 04 (F) smoking tobacco, including granulated, plug-cut, crimp-cut, 05 ready-rubbed, and any form of tobacco suitable for smoking in a pipe or 06 cigarette; 07 (G) chewing tobacco, including cavendish, twist, plug, scrap, 08 and tobacco suitable for chewing; [OR] 09 (H) an article or product made of tobacco or a tobacco 10 substitute, but not including a cigarette as defined in AS 43.50.170; or 11 (I) any other product containing tobacco or nicotine that is 12 intended or expected to be consumed without being combusted unless it 13 has been approved by the United States Food and Drug Administration 14 for sale as a tobacco use cessation or harm reduction product or for other 15 medical purposes and is being marketed and sold solely for the approved 16 purposes; 17 * Sec. 17. AS 43.50.390 is amended by adding new paragraphs to read: 18 (6) "buyer" means a person who imports tobacco products for the 19 person's own consumption from any source other than licensee; 20 (7) "moist snuff tobacco" includes spitless moist snuff tobacco and 21 means any finely cut, ground, or powdered tobacco that is not intended to be 22 (A) smoked; or 23 (B) placed in the nasal cavity; 24 (8) "smokeless tobacco" means a tobacco product defined in (4)(E), 25 (G), (H), (I), and (9) of this section; 26 (9) "spitless moist snuff tobacco" means moist snuff tobacco that is 27 typically steam-pasteurized smokeless tobacco in a tea-bag-like pouch designed to be 28 placed between the cheek and gum and is manufactured to obviate the need for 29 spitting. 30 * Sec. 18. AS 43.70.110 is amended by adding a new paragraph to read: 31 (5) "cigarette" has the meaning given in AS 43.50.170.
01 * Sec. 19. AS 11.76.100(e) is repealed. 02 * Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 APPLICABILITY. (a) Sections 2 - 5 and 7 - 18 of this Act are applicable starting on 05 the first day of the month immediately following the effective date of this section. 06 (b) Section 6 of this Act is applicable starting on the first day of the month 07 immediately following the effective date of sec. 6. 08 * Sec. 21. Section 6 of this Act takes effect three years after the effective date of sec. 5 of 09 this Act. 10 * Sec. 22. Except as provided in sec. 21 of this Act, this Act takes effect immediately under 11 AS 01.10.070(c).