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CSSB 45(FIN): "An Act raising the minimum age to purchase, sell, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to selling a tobacco product; relating to possession of tobacco, electronic smoking products, or products containing nicotine by a person under 21 years of age; relating to the definition of 'nicotine'; relating to transporting tobacco, a product containing nicotine, or an electronic smoking product; relating to the taxation of electronic smoking products; relating to electronic smoking products; relating to the marketing of electronic smoking products; relating to tobacco products; and providing for an effective date."

00 CS FOR SENATE BILL NO. 45(FIN) 01 "An Act raising the minimum age to purchase, sell, exchange, or possess tobacco, a 02 product containing nicotine, or an electronic smoking product; relating to selling a 03 tobacco product; relating to possession of tobacco, electronic smoking products, or 04 products containing nicotine by a person under 21 years of age; relating to the definition 05 of 'nicotine'; relating to transporting tobacco, a product containing nicotine, or an 06 electronic smoking product; relating to the taxation of electronic smoking products; 07 relating to electronic smoking products; relating to the marketing of electronic smoking 08 products; relating to tobacco products; 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 to a person 12 under 21 years of age [MINOR] if the person

01 (1) negligently sells a cigarette, a cigar, tobacco, or a product 02 containing tobacco to a person under 21 [19] years of age; 03 (2) is 21 [19] years of age or older and negligently exchanges or gives 04 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 05 years of age; 06 (3) maintains a vending machine that dispenses cigarettes, cigars, 07 tobacco, or products containing tobacco; or 08 (4) holds a business license endorsement under AS 43.70.075 and 09 allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 10 product containing tobacco. 11 * Sec. 2. AS 11.76.100(b) is amended to read: 12 (b) Notwithstanding the provisions of (a) of this section, a person who 13 maintains a vending machine is not in violation of (a)(3) of this section if the vending 14 machine is located 15 (1) on premises licensed as a beverage dispensary under AS 04.11.090, 16 licensed as a club under AS 04.11.110, or licensed as a package store under 17 AS 04.11.150; and 18 (A) as far as practicable from the primary entrance; and 19 (B) in a place that is directly and continually supervised by a 20 person employed on the licensed premises during the hours the vending 21 machine is accessible to the public; or 22 (2) in an employee break room or other controlled area of a private 23 work place that is not generally considered a public place and the room or area 24 contains a posted warning sign at least 11 inches by 14 inches indicating that 25 possession of tobacco by a person under 21 [19] years of age is prohibited under 26 AS 11.76.105. 27 * Sec. 3. AS 11.76.105 is amended to read: 28 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 29 products containing nicotine by a person under 21 years of age [MINOR]. (a) A 30 person under 21 [19] years of age may not knowingly possess a cigarette, a cigar, 31 tobacco, a product containing tobacco, an electronic smoking product, or a product

01 containing nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A 02 PERSON WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.] 03 (b) In a prosecution under (a) of this section for possession of an electronic 04 smoking product or a product containing nicotine, it is an affirmative defense that the 05 electronic smoking product or product containing nicotine possessed by the person 06 under 21 [19] years of age was intended or expected to be consumed without being 07 combusted, and the electronic smoking product or product containing nicotine 08 (1) has been approved by the United States Food and Drug 09 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 10 or for other medical purposes; 11 (2) was being marketed and sold for the approved purposes; and 12 (3) was 13 (A) prescribed by a health care professional; 14 (B) given to the person by the person's parent or guardian; 15 (C) provided by a state-approved tobacco cessation program 16 administered by the Department of Health and Social Services; or 17 (D) provided by a pharmacist to a person 18 years of age or 18 older without a prescription. 19 (c) Possession of tobacco, an electronic smoking product, or a product 20 containing nicotine by a person under 21 years of age [MINOR] is a violation 21 punishable by a fine of not more than $300. 22 * Sec. 4. AS 11.76.105 is amended by adding a new subsection to read: 23 (d) The supreme court shall establish by rule or order a schedule of bail 24 amounts that may be forfeited without court appearance for a violation of this section. 25 * Sec. 5. AS 11.76.106(b) is amended to read: 26 (b) Subsection (a) does not apply if the sale 27 (1) is by vending machine as provided under AS 11.76.100(b) or 28 11.76.109(d); 29 (2) is a wholesale transaction, the person is licensed as a manufacturer 30 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 31 transactions occur;

01 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 02 products containing tobacco, electronic smoking products, or products containing 03 nicotine and who restricts access to the premises to only those individuals who are 21 04 [19] years of age or older; or 05 (4) is of electronic smoking products over the Internet to a person 21 06 [19] years of age or older. 07 * Sec. 6. AS 11.76.109(a) is amended to read: 08 (a) A person commits the offense of selling or giving an electronic smoking 09 product or a product containing nicotine to a person under 21 years of age [MINOR] 10 if the person 11 (1) negligently sells an electronic smoking product or a product 12 containing nicotine to a person under 21 [19] years of age; 13 (2) is 21 [19] years of age or older and negligently exchanges or gives 14 an electronic smoking product or a product containing nicotine to a person under 21 15 [19] years of age; 16 (3) maintains a vending machine that dispenses electronic smoking 17 products or products containing nicotine; or 18 (4) holds a business license endorsement under AS 43.70.075 and 19 allows a person under 21 [19] years of age to sell an electronic smoking product or a 20 product containing nicotine. 21 * Sec. 7. AS 11.76.109(b) is amended to read: 22 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 23 gift to a person under 21 [19] years of age of an electronic smoking product or a 24 product containing nicotine that is intended or expected to be consumed without being 25 combusted if the electronic smoking product or product containing nicotine 26 (1) has been approved by the United States Food and Drug 27 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 28 or for other medical purposes; 29 (2) is being marketed and sold solely for the approved purposes; and 30 (3) is 31 (A) prescribed by a health care professional;

01 (B) given to a person by the person's parent or legal guardian; 02 (C) provided by a state-approved tobacco cessation program 03 administered by the Department of Health and Social Services; or 04 (D) provided by a pharmacist to a person 18 years of age or 05 older without a prescription. 06 * Sec. 8. AS 11.76.109(d) is amended to read: 07 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 08 machine is not in violation of (a)(3) of this section if the vending machine is located 09 (1) on premises licensed as a beverage dispensary under AS 04.11.090, 10 licensed as a club under AS 04.11.110, or licensed as a package store under 11 AS 04.11.150, and is located 12 (A) as far as practicable from the primary entrance; and 13 (B) in a place that is directly and continually supervised by a 14 person employed on the licensed premises during the hours the vending 15 machine is accessible to the public; or 16 (2) in an employee break room or other controlled area of a private 17 work place that is not generally considered a public place and the room or area 18 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 19 possession of electronic smoking products or products containing nicotine by a person 20 under 21 [19] years of age without a prescription is prohibited under AS 11.76.109. 21 * Sec. 9. AS 11.76.109(g) is amended to read: 22 (g) Selling or giving an electronic smoking product or a product containing 23 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 24 conviction, is punishable by a fine of not less than $300. 25 * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 26 (69) "nicotine" includes a chemical or chemical compound intended, 27 when introduced into the human body, to mimic or simulate the effect of nicotine from 28 tobacco. 29 * Sec. 11. AS 43.50.105(b) is amended to read: 30 (b) A person who is licensed under this chapter may not ship or cause to be 31 shipped cigarettes to a person in this state unless the person receiving the cigarettes

01 (1) is licensed under this chapter; 02 (2) holds a business license endorsement under AS 43.70.075; 03 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 04 1311 or 19 U.S.C. 1555; 05 (4) is an instrumentality of the federal government or an Indian tribal 06 organization authorized by law to possess cigarettes not taxed under this chapter; or 07 (5) is an individual 21 [19] years of age or older and the individual's 08 age was verified at the time of purchase by a third-party verification service, the 09 individual is receiving the cigarettes for personal consumption, and the tax imposed 10 on the cigarettes under this chapter has been paid. 11 * Sec. 12. AS 43.50.105(c) is amended to read: 12 (c) A common or contract carrier may not knowingly transport cigarettes to a 13 person in this state unless the person 14 (1) shipping the cigarettes is licensed under this chapter and, before 15 shipment, provides the common or contract carrier with a copy of the person's current 16 license issued by the department and 17 (A) an affidavit from the intended recipient certifying that the 18 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 19 (5)] of this section; or 20 (B) the common or contract carrier verifies the age of the 21 recipient as 21 years of age or older before delivery; or 22 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 23 this section or is licensed under this chapter and, before receipt, provides the common 24 or contract carrier with a copy of the person's current license issued by the department. 25 * Sec. 13. AS 43.50.150(c) is amended to read: 26 (c) The department may enter into an agreement with a municipality that 27 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 28 products for the purpose of jointly auditing a person liable for a tax under 29 AS 43.50.010 - 43.50.390 and the municipal tax on cigarettes, [OR OTHER] tobacco 30 products, or electronic smoking products. In this subsection, "electronic smoking 31 product" has the meaning given in AS 43.50.390.

01 * Sec. 14. AS 43.50.300 is amended to read: 02 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 03 and electronic smoking products in the state. The tax is 04 (1) [AT THE RATE OF] 75 percent of the wholesale price of [THE] 05 tobacco products; 06 (2) 45 percent of the wholesale price of an electronic smoking 07 product, including a closed-system electronic smoking product. [THE TAX IS 08 LEVIED WHEN A PERSON 09 (1) BRINGS, OR CAUSES TO BE BROUGHT, A TOBACCO 10 PRODUCT INTO THE STATE FROM OUTSIDE THE STATE FOR SALE; 11 (2) MAKES, MANUFACTURES, OR FABRICATES A TOBACCO 12 PRODUCT IN THE STATE FOR SALE IN THE STATE; OR 13 (3) SHIPS OR TRANSPORTS A TOBACCO PRODUCT TO A 14 RETAILER IN THE STATE FOR SALE BY THE RETAILER.] 15 * Sec. 15. AS 43.50.300 is amended by adding new subsections to read: 16 (b) The tax under (a) of this section is levied when a person 17 (1) brings, or causes to be brought, a tobacco product or electronic 18 smoking product into the state from outside the state for sale; 19 (2) makes, manufactures, or fabricates a tobacco product or electronic 20 smoking product in the state for sale in the state; or 21 (3) ships or transports a tobacco product or electronic smoking product 22 to a retailer in the state for sale by the retailer. 23 (c) In this section, "closed-system electronic smoking product" means an 24 electronic smoking product that includes an e-cigarette, e-cigar, e-pipe, e-hookah, 25 vape pen, or other similar device of any shape sold together with a solution, vapor 26 product, or other similar product as a disposable nonrefillable unit. 27 * Sec. 16. AS 43.50.310(b) is amended to read: 28 (b) The tax does not apply to 29 (1) a tobacco product if the United States Constitution or other federal 30 laws prohibit the levying of the tax on the product by the state; or 31 (2) an electronic smoking product

01 (A) that is subject to taxation under AS 43.61.010 - 02 43.61.030 and that does not contain nicotine; 03 (B) approved for sale by the United States Food and Drug 04 Administration as a drug, drug product, including a drug product used to 05 treat tobacco dependence, or combination product under 21 U.S.C. 301 - 06 392 (Federal Food, Drug, and Cosmetic Act); 07 (C) if the United States Constitution or other federal laws 08 prohibit the levying of the tax on the product by the state; 09 (D) designed, marketed, and sold solely for the purpose of 10 vaporizing or aerosolizing marijuana or marijuana products and intended 11 for sale only in a retail marijuana store; in this subparagraph, 12 "marijuana," "marijuana products," and "retail marijuana store" have 13 the meanings given in AS 17.38.900. 14 * Sec. 17. AS 43.50.320(a) is amended to read: 15 (a) Except as provided in (g) of this section, a person must be licensed by the 16 department if the person engages in business as a distributor for a tobacco product or 17 electronic smoking product that is subject to the tax. 18 * Sec. 18. AS 43.50.320 is amended by adding a new subsection to read: 19 (i) A person licensed under this section may not 20 (1) distribute an electronic smoking product designed or packaged so 21 as not to be clearly recognizable as a tobacco product; or 22 (2) market an electronic smoking product, including a flavored 23 electronic smoking product, in a manner likely to promote use of the electronic 24 smoking product by a person under 21 years of age. 25 * Sec. 19. AS 43.50 is amended by adding a new section to read: 26 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products 27 and electronic smoking products. (a) A person who is not licensed under this chapter 28 may not ship or cause to be shipped a tobacco product or electronic smoking product 29 to a person in this state unless the person receiving the tobacco product or electronic 30 smoking product is 31 (1) licensed under this chapter;

01 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 02 or 19 U.S.C. 1555; or 03 (3) an instrumentality of the federal government or an Indian tribal 04 organization authorized by law to possess tobacco products or electronic smoking 05 products not taxed under this chapter. 06 (b) A person who is licensed under this chapter may not ship or cause to be 07 shipped a tobacco product or electronic smoking product to a person in this state 08 unless the person receiving the tobacco product or electronic smoking product 09 (1) is licensed under this chapter; 10 (2) holds a business license endorsement under AS 43.70.075; 11 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 12 1311 or 19 U.S.C. 1555; 13 (4) is an instrumentality of the federal government or an Indian tribal 14 organization authorized by law to possess tobacco products or electronic smoking 15 products not taxed under this chapter; or 16 (5) is an individual 21 years of age or older and the individual's age 17 was verified at the time of purchase though a third-party verification service, the 18 individual is receiving the tobacco product or electronic smoking product for personal 19 consumption, and the tax imposed on the tobacco product or electronic smoking 20 product under this chapter has been paid. 21 (c) A common or contract carrier may not knowingly transport a tobacco 22 product or electronic smoking product to a person in this state unless the person 23 (1) shipping the tobacco product or electronic smoking product is 24 licensed under this chapter and, before shipment, provides the common or contract 25 carrier with a copy of the person's current license issued by the department and 26 (A) an affidavit from the intended recipient certifying that the 27 person receiving the tobacco product or electronic smoking product is a person 28 described under (b)(1) - (4) of this section; or 29 (B) the common or contract carrier verifies the age of the 30 recipient as 21 years of age or older before delivery; or 31 (2) receiving the tobacco product or electronic smoking product is a

01 person described under (a)(2) or (3) of this section or is licensed under this chapter 02 and, before receipt, provides the common or contract carrier with a copy of the 03 person's current license issued by the department. 04 (d) If a tobacco product or electronic smoking product is transported by a 05 common or contract carrier to a home or residence, it is rebuttably presumed that the 06 common or contract carrier knew that the recipient of the tobacco product or electronic 07 smoking product was not a person described under (b)(1) - (5) of this section, unless 08 the person shipping the tobacco product or electronic smoking product has satisfied 09 the requirements in (c)(1) of this section. 10 (e) A person, other than a common or contract carrier, may not knowingly 11 transport a tobacco product or electronic smoking product to a person in this state, 12 unless the recipient of the tobacco product or electronic smoking product is a person 13 described under (b)(1) - (5) of this section. 14 (f) A person who ships or causes to be shipped a tobacco product or electronic 15 smoking product to a person in this state shall plainly and visibly mark the container 16 or wrapping with the words "tobacco product" or "electronic smoking product" or 17 both, as applicable, if the tobacco product or electronic smoking product is shipped in 18 a container or wrapping other than the manufacturer's original container or wrapping 19 of the tobacco product or electronic smoking product. 20 (g) A person who violates the provisions of this section is guilty of a class A 21 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 22 tobacco product or electronic smoking product. 23 (h) In addition to the criminal penalty under (g) of this section, the department 24 may assess a civil penalty of not more than $5,000 for each violation of this section. 25 (i) A person who violates the provisions of this section is jointly and severally 26 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 27 permitted by the Constitution of the United States, a person who violates the 28 provisions of this section is required to collect the taxes and pay them to the 29 department. 30 * Sec. 20. AS 43.50.330(a) is amended to read: 31 (a) On or before the last day of each calendar month, a licensee shall file a

01 return with the department. The return must state the number or amount of tobacco 02 products and electronic smoking products sold by the licensee during the preceding 03 calendar month, the selling price of the tobacco products and electronic smoking 04 products, and the amount of tax imposed on the tobacco products and electronic 05 smoking products. 06 * Sec. 21. AS 43.50.335 is amended to read: 07 Sec. 43.50.335. Tax credits and refunds. The department shall adopt 08 procedures for a refund or credit to a licensee of the tax paid for tobacco products or 09 electronic smoking products that have become unfit for sale, are destroyed, or are 10 returned to the manufacturer for credit or replacement if the licensee provides proof 11 acceptable to the department that the tobacco products or electronic smoking 12 products have not been and will not be consumed in this state. 13 * Sec. 22. AS 43.50.340 is amended to read: 14 Sec. 43.50.340. Records. A licensee shall keep a complete and accurate record 15 of all tobacco products and electronic smoking products of the licensee subject to 16 the tax, including purchase prices, sales prices, the names and addresses of the sellers 17 and the purchasers, the dates of delivery, the quantities of tobacco products and 18 electronic smoking products, and the trade names and brands. Statements and 19 records required by this section must be in the form prescribed by the department, 20 preserved for three years, and available for inspection upon demand by the 21 department. 22 * Sec. 23. AS 43.50.350 is amended to read: 23 Sec. 43.50.350. Disposition of proceeds. Except as provided in (b) of this 24 section, the [THE] tax collected by the department shall be deposited in the general 25 fund. The annual estimated balance in the account maintained by the commissioner of 26 administration under AS 37.05.142 may be used by the legislature to make 27 appropriations for health care, health research, health promotion, and health education 28 programs. 29 * Sec. 24. AS 43.50.350 is amended by adding a new subsection to read: 30 (b) The department shall separately account for tax collected on electronic 31 smoking products under AS 43.50.300. The annual estimated balance in the account

01 may be appropriated by the legislature to provide for education, programs, and 02 advertising related to the hazards of electronic smoking products. 03 * Sec. 25. AS 43.50.390(1) is amended to read: 04 (1) "distributor" means a person who 05 (A) brings, or causes to be brought, a tobacco product or 06 electronic smoking product into the state from outside the state for sale; 07 (B) makes, manufactures, or fabricates a tobacco product or 08 electronic smoking product in the state for sale in the state; or 09 (C) ships or transports a tobacco product or electronic 10 smoking product to a retailer in the state for sale by the retailer; 11 * Sec. 26. AS 43.50.390(5) is amended to read: 12 (5) "wholesale price" means 13 (A) the established price for which a manufacturer sells a 14 tobacco product or electronic smoking product to a distributor after 15 deduction of a discount or other reduction received by the distributor for 16 quantity or cash if the manufacturer's established price is adequately supported 17 by bona fide arm's length sales as determined by the department; or 18 (B) the price, as determined by the department, for which 19 tobacco products or electronic smoking products of comparable retail price 20 are sold to distributors in the ordinary course of trade if the manufacturer's 21 established price does not meet the standards of (A) of this paragraph. 22 * Sec. 27. AS 43.50.390 is amended by adding new paragraphs to read: 23 (6) "electronic smoking product" 24 (A) includes a product that can be used to deliver aerosolized 25 or vaporized nicotine to the person inhaling; an e-cigarette, e-cigar, e-pipe, e- 26 hookah, or vape pen and any component, part, accessory, or device related to 27 an e-cigarette, e-cigar, e-pipe, e-hookah, or vape pen; and a substance intended 28 to be aerosolized or vaporized during use of the device; 29 (B) does not include a battery or battery charger when sold 30 separately; 31 (7) "nicotine" has the meaning given in AS 11.81.900(b).

01 * Sec. 28. AS 43.70.075(f) is amended to read: 02 (f) A person who holds a license endorsement issued under this section shall 03 post on the licensed premises a warning sign as described in this subsection. A 04 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 05 must read: "The sale of electronic smoking products or products containing nicotine 06 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 07 person holding an endorsement issued under this section shall display the warning sign 08 in a manner conspicuous to a person purchasing or consuming tobacco products, 09 electronic smoking products, or products containing nicotine on the licensed premises. 10 The department shall make available the warning signs required under this section to a 11 person who holds an endorsement issued under this section or a person who requests 12 the sign with the intention of displaying it. 13 * Sec. 29. AS 43.70.075(m) is amended to read: 14 (m) The department may initiate suspension of a business license endorsement 15 or the right to obtain a business license endorsement under this section by sending the 16 person subject to the suspension a notice by certified mail, return receipt requested, or 17 by delivering the notice to the person. The notice must contain information that 18 informs the person of the grounds for suspension, the length of any suspension sought, 19 and the person's right to administrative review. A suspension begins 30 days after 20 receipt of notice described in this subsection unless the person delivers a timely 21 written request for a hearing to the department in the manner provided by regulations 22 of the department. If a hearing is requested under this subsection, an administrative 23 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 24 issues by using the preponderance of the evidence test and shall, to the extent they do 25 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 26 manner provided by regulations of the department. A hearing under this subsection is 27 limited to the following questions: 28 (1) was the person holding the business license endorsement, or an 29 agent or employee of the person while acting within the scope of the agency or 30 employment of the person, convicted by plea or judicial finding of violating 31 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109;

01 (2) if the department does not allege a conviction of AS 11.76.100, 02 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 03 person while acting within the scope of the agency or employment of the person, 04 violate a provision of (a) or (g) of this section; 05 (3) within the 24 months before the date of the department's notice 06 under this subsection, was the person, or an agent or employee of the person while 07 acting within the scope of the agency or employment of the person, convicted of 08 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 09 violating a provision of (a) or (g) of this section; 10 (4) did the person holding the business license endorsement establish 11 that the person holding the business license endorsement had adopted and enforced an 12 education, a compliance, and a disciplinary program for agents and employees of the 13 person as provided in (t) of this section; 14 (5) did the person holding the business license endorsement overcome 15 the rebuttable presumption established in (w) of this section; 16 (6) within five years before the date of the violation that is the subject 17 of the hearing, did the department establish that the person holding the business 18 license endorsement 19 (A) previously violated (a) or (g) of this section; 20 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 21 11.76.109 at a location or outlet in a location for which the person holds a 22 business license endorsement, or had an agent or employee previously violate 23 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 24 apply to a prior conviction that served to enhance a suspension period under 25 (d)(2) - (4) of this section; or 26 (C) engaged at a location owned by the person in other conduct 27 that was or is likely to result in the sale of tobacco, electronic smoking 28 products, or products containing nicotine to a person under 21 [19] years of 29 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 30 * Sec. 30. AS 43.70.075(t) is amended to read: 31 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this

01 section, the department may reduce the license suspension period under (d) of this 02 section if the person holding the business license endorsement establishes that, before 03 the date of the violation, the person had 04 (1) adopted and enforced a written policy against selling cigarettes, 05 cigars, tobacco, products containing tobacco, electronic smoking products, or products 06 containing nicotine to a person under 21 [19] years of age in violation of 07 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 08 (2) informed the person's agents and employees of the applicable laws 09 and their requirements and conducted training on complying with the laws and 10 requirements; 11 (3) required each agent and employee of the person to sign a form 12 stating that the agent and employee has been informed of and understands the written 13 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 14 (4) determined that the agents and employees of the person had 15 sufficient experience and ability to comply with the written policy and requirements of 16 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 17 (5) required the agents and employees of the person to verify the age 18 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 19 electronic smoking products, or products containing nicotine by means of a valid 20 government issued photographic identification; 21 (6) established and enforced disciplinary sanctions for noncompliance 22 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 23 and 11.76.109; and 24 (7) monitored the compliance of the agents and employees of the 25 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 26 11.76.107, and 11.76.109. 27 * Sec. 31. AS 43.70.075(w) is amended to read: 28 (w) For purposes of (m)(5) of this section, a conviction for a violation of 29 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 30 person who holds the business license endorsement is rebuttably presumed to 31 constitute proof of the fact that the agent or employee negligently sold a cigarette, a

01 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 02 product containing nicotine to a person under 21 [19] years of age. The person who 03 holds the business license endorsement may overcome the presumption by 04 establishing by clear and convincing evidence that the agent or employee did not 05 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 06 electronic smoking product, or a product containing nicotine to a person under 21 [19] 07 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 08 alleged in the citation issued to the agent or employee. The presentation of evidence 09 authorized by this subsection does not constitute a collateral attack on the conviction 10 described in this subsection. 11 * Sec. 32. AS 45.50.471(b) is amended by adding a new paragraph to read: 12 (58) marketing an electronic smoking product in a manner likely to 13 promote use of electronic smoking products by a person under 21 years of age; in this 14 paragraph, "electronic smoking product" has the meaning given in AS 43.50.390. 15 * Sec. 33. AS 47.12.030(b) is amended to read: 16 (b) When a minor is accused of violating a statute specified in this subsection, 17 other than a statute the violation of which is a felony, this chapter and the Alaska 18 Delinquency Rules do not apply and the minor accused of the offense shall be 19 charged, prosecuted, and sentenced in the district court in the same manner as an 20 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 21 subsection, the minor's parent, guardian, or legal custodian shall be present at all 22 proceedings; the provisions of this subsection apply when a minor is accused of 23 violating 24 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 25 a municipality; 26 (2) AS 11.76.105, relating to the possession of tobacco by a person 27 under 21 [19] years of age; 28 (3) a fish and game statute or regulation under AS 16; 29 (4) a parks and recreational facilities statute or regulation under 30 AS 41.21; 31 (5) [REPEALED]

01 (6) a municipal curfew ordinance, whether adopted under 02 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 03 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 04 the violation of a municipal curfew ordinance, the court shall allow a defendant the 05 option of performing community work; the value of the community work, which may 06 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 07 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 08 or work that, on the recommendation of the municipal or borough assembly, city 09 council, or traditional village council of the defendant's place of residence, would 10 benefit persons within the municipality or village who are elderly or disabled; 11 (7) AS 04.16.050, relating to consumption, possession, or control of 12 alcohol by a person under 21 years of age. 13 * Sec. 34. AS 11.76.100(e) is repealed. 14 * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 15 read: 16 APPLICABILITY. (a) The following sections apply to offenses committed on or after 17 the effective date of those sections: 18 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 19 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 20 (3) AS 11.76.105, as amended by sec. 3 of this Act; 21 (4) AS 11.76.105(d), enacted by sec. 4 of this Act; 22 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 23 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 24 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 25 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 26 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 27 (10) AS 11.81.900(b)(69), enacted by sec. 10 of this Act; 28 (11) AS 43.50.325, enacted by sec. 19 of this Act; and 29 (12) AS 47.12.030(b), as amended by sec. 33 of this Act. 30 (b) AS 11.76.100(a)(4), as amended by sec. 1 of this Act, and AS 11.76.109(a)(4), as 31 amended by sec. 6 of this Act, do not apply to a person 19 years of age or older who is

01 employed on the effective date of sec. 1 of this Act by a person with a business license 02 endorsement under AS 43.70.075. 03 * Sec. 36. This Act takes effect July 1, 2023.