HB 176: "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, and products containing nicotine; raising the minimum age to purchase, sell, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to the taxation of electronic smoking products and vapor products; and providing for an effective date."
00 HOUSE BILL NO. 176 01 "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, 02 and products containing nicotine; raising the minimum age to purchase, sell, exchange, 03 or possess tobacco, a product containing nicotine, or an electronic smoking product; 04 relating to the taxation of electronic smoking products and vapor products; and 05 providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 11.76.100(a) is amended to read: 08 (a) A person commits the offense of selling or giving tobacco to a person 09 under 21 years of age [MINOR] if the person 10 (1) negligently sells a cigarette, a cigar, tobacco, or a product 11 containing tobacco to a person under 21 [19] years of age; 12 (2) is 21 [19] years of age or older and negligently exchanges or gives 13 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19]
01 years of age; 02 (3) maintains a vending machine that dispenses cigarettes, cigars, 03 tobacco, or products containing tobacco; or 04 (4) holds a business license endorsement under AS 43.70.075 and 05 allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 06 product containing tobacco. 07 * Sec. 2. AS 11.76.100(b), as amended by sec. 153, ch. 8, SLA 2022, is amended to read: 08 (b) Notwithstanding the provisions of (a) of this section, a person who 09 maintains a vending machine is not in violation of (a)(3) of this section if the vending 10 machine is located 11 (1) on premises licensed as a beverage dispensary under AS 04.09.200 12 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 13 under AS 04.09.230 and 14 (A) as far as practicable from the primary entrance; and 15 (B) in a place that is directly and continually supervised by a 16 person employed on the licensed premises during the hours the vending 17 machine is accessible to the public; or 18 (2) in an employee break room or other controlled area of a private 19 work place that is not generally considered a public place and the room or area 20 contains a posted warning sign at least 11 inches by 14 inches indicating that 21 possession of tobacco by a person under 21 [19] years of age is prohibited under 22 AS 11.76.105. 23 * Sec. 3. AS 11.76.105 is amended to read: 24 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 25 products containing nicotine by a person under 21 years of age [MINOR]. (a) A 26 person under 21 [19] years of age may not knowingly possess a cigarette, a cigar, 27 tobacco, a product containing tobacco, an electronic smoking product, or a product 28 containing nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A 29 PERSON WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.] 30 (b) In a prosecution under (a) of this section for possession of an electronic 31 smoking product or a product containing nicotine, it is an affirmative defense that the
01 electronic smoking product or product containing nicotine possessed by the person 02 under 21 [19] years of age was intended or expected to be consumed without being 03 combusted, and the electronic smoking product or product containing nicotine 04 (1) has been approved by the United States Food and Drug 05 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 06 or for other medical purposes; 07 (2) was being marketed and sold for the approved purposes; and 08 (3) was 09 (A) prescribed by a health care professional; 10 (B) given to the person by the person's parent or guardian; 11 (C) provided by a state-approved tobacco cessation program 12 administered by the Department of Health; or 13 (D) provided by a pharmacist to a person 18 years of age or 14 older without a prescription. 15 (c) Possession of tobacco, an electronic smoking product, or a product 16 containing nicotine by a person under 21 years of age [MINOR] is a violation 17 punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 18 place of any fine imposed for the violation of this subsection, the court may refer 19 a defendant, at the request of the defendant, to a tobacco education program. 20 * Sec. 4. AS 11.76.105 is amended by adding a new subsection to read: 21 (d) The supreme court shall establish by rule or order a schedule of bail 22 amounts that may be forfeited without court appearance for a violation of this section. 23 * Sec. 5. AS 11.76.106(a) is amended to read: 24 (a) Except as provided under (b) of this section, a person may not sell 25 cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, 26 or products containing nicotine 27 (1) unless the sale occurs in a manner that allows only the sales clerk 28 to control access to the cigarettes, cigars, tobacco, products containing tobacco, 29 electronic smoking products, or products containing nicotine; 30 (2) over the Internet to an individual for the individual's personal 31 consumption.
01 * Sec. 6. AS 11.76.106(b) is amended to read: 02 (b) Subsection (a) does not apply if the sale 03 (1) is by vending machine as provided under AS 11.76.100(b) or 04 11.76.109(d); 05 (2) is a wholesale transaction, the person is licensed as a manufacturer 06 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 07 transactions occur; 08 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 09 products containing tobacco, electronic smoking products, or products containing 10 nicotine and who restricts access to the premises to only those individuals who are 21 11 [19] years of age or older; or 12 (4) is of electronic smoking products over the Internet to a person 19 13 years of age or older. 14 * Sec. 7. AS 11.76.109(a) is amended to read: 15 (a) A person commits the offense of selling or giving an electronic smoking 16 product or a product containing nicotine to a person under 21 years of age [MINOR] 17 if the person 18 (1) negligently sells an electronic smoking product or a product 19 containing nicotine to a person under 21 [19] years of age; 20 (2) is 21 [19] years of age or older and negligently exchanges or gives 21 an electronic smoking product or a product containing nicotine to a person under 21 22 [19] years of age; 23 (3) maintains a vending machine that dispenses electronic smoking 24 products or products containing nicotine; or 25 (4) holds a business license endorsement under AS 43.70.075 and 26 allows a person under 21 [19] years of age to sell an electronic smoking product or a 27 product containing nicotine. 28 * Sec. 8. AS 11.76.109(b) is amended to read: 29 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 30 gift to a person under 21 [19] years of age of an electronic smoking product or a 31 product containing nicotine that is intended or expected to be consumed without being
01 combusted if the electronic smoking product or product containing nicotine 02 (1) has been approved by the United States Food and Drug 03 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 04 or for other medical purposes; 05 (2) is being marketed and sold solely for the approved purposes; and 06 (3) is 07 (A) prescribed by a health care professional; 08 (B) given to a person by the person's parent or legal guardian; 09 (C) provided by a state-approved tobacco cessation program 10 administered by the Department of Health; or 11 (D) provided by a pharmacist to a person 18 years of age or 12 older without a prescription. 13 * Sec. 9. AS 11.76.109(d), as amended by sec. 155, ch. 8, SLA 2022, is amended to read: 14 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 15 machine is not in violation of (a)(3) of this section if the vending machine is located 16 (1) on premises licensed as a beverage dispensary under AS 04.09.200 17 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 18 under AS 04.09.230, and is located 19 (A) as far as practicable from the primary entrance; and 20 (B) in a place that is directly and continually supervised by a 21 person employed on the licensed premises during the hours the vending 22 machine is accessible to the public; or 23 (2) in an employee break room or other controlled area of a private 24 work place that is not generally considered a public place and the room or area 25 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 26 possession of electronic smoking products or products containing nicotine by a person 27 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 28 [THIS SECTION]. 29 * Sec. 10. AS 11.76.109(g) is amended to read: 30 (g) Selling or giving an electronic smoking product or a product containing 31 nicotine to a person under 21 years of age [MINOR] is a violation and, upon
01 conviction, is punishable by a fine of not less than $300. 02 * Sec. 11. AS 11.81.900(b) is amended by adding a new paragraph to read: 03 (69) "nicotine" includes a chemical or chemical compound intended, 04 when introduced into the human body, to mimic or simulate the effect of nicotine from 05 tobacco. 06 * Sec. 12. AS 43.50.070 is amended to read: 07 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 08 (a) The department may suspend, revoke, or refuse to renew a license issued under this 09 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 10 11.76.109, or a violation of this chapter or a regulation of the department adopted 11 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 12 was issued; or (3) if a licensee negligently sells tobacco or products containing 13 tobacco to a person who is required to, but does not, hold a license endorsement under 14 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 15 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 16 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 17 products, or electronic smoking products to be sold, during the period of the 18 suspension or revocation on the premises occupied or controlled by that person. A 19 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 20 surrender, renewal, or extension of a license issued under this chapter. The department 21 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 22 that a hearing officer of the department, rather than a hearing officer assigned under 23 AS 44.62.350, may conduct hearings. 24 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 25 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 26 * Sec. 13. AS 43.50.105(b) is amended to read: 27 (b) A person who is licensed under this chapter may not ship or cause to be 28 shipped cigarettes to a person in this state unless the person receiving the cigarettes 29 (1) is licensed under this chapter; 30 (2) holds a business license endorsement under AS 43.70.075; 31 (3) is an operator of a customs bonded warehouse under 19 U.S.C.
01 1311 or 19 U.S.C. 1555; 02 (4) is an instrumentality of the federal government or an Indian tribal 03 organization authorized by law to possess cigarettes not taxed under this chapter; or 04 (5) is an individual 21 [19] years of age or older and the individual's 05 age was verified at the time of purchase by a third-party verification service, the 06 individual is receiving the cigarettes for personal consumption, and the tax imposed 07 on the cigarettes under this chapter has been paid. 08 * Sec. 14. AS 43.50.105(c) is amended to read: 09 (c) A common or contract carrier may not knowingly transport cigarettes to a 10 person in this state unless the person 11 (1) shipping the cigarettes is licensed under this chapter and, before 12 shipment, provides the common or contract carrier with a copy of the person's current 13 license issued by the department and 14 (A) an affidavit from the intended recipient certifying that the 15 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 16 (5)] of this section; or 17 (B) the common or contract carrier verifies the age of the 18 recipient as 21 years of age or older before delivery; or 19 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 20 this section or is licensed under this chapter and, before receipt, provides the common 21 or contract carrier with a copy of the person's current license issued by the department. 22 * Sec. 15. AS 43.50.150(c) is amended to read: 23 (c) The department may enter into an agreement with a municipality that 24 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 25 products for the purpose of jointly auditing a person liable for a tax under 26 AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 27 cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 28 * Sec. 16. AS 43.50 is amended by adding a new section to read: 29 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 30 (a) A person who is not licensed under this chapter may not ship or cause to be 31 shipped a tobacco product to a person in this state unless the person receiving the
01 tobacco product is 02 (1) licensed under this chapter; 03 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 04 or 19 U.S.C. 1555; or 05 (3) an instrumentality of the federal government or an Indian tribal 06 organization authorized by law to possess tobacco products not taxed under this 07 chapter. 08 (b) A person who is licensed under this chapter may not ship or cause to be 09 shipped a tobacco product to a person in this state unless the person receiving the 10 tobacco product 11 (1) is licensed under this chapter; 12 (2) holds a business license endorsement under AS 43.70.075; 13 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 14 1311 or 19 U.S.C. 1555; 15 (4) is an instrumentality of the federal government or an Indian tribal 16 organization authorized by law to possess tobacco products not taxed under this 17 chapter; or 18 (5) is an individual 21 years of age or older and the individual's age 19 was verified at the time of purchase though a third-party verification service, the 20 individual is receiving the tobacco product for personal consumption, and the tax 21 imposed on the tobacco product under this chapter has been paid. 22 (c) A common or contract carrier may not knowingly transport a tobacco 23 product to a person in this state unless the person 24 (1) shipping the tobacco product is licensed under this chapter and, 25 before shipment, provides the common or contract carrier with a copy of the person's 26 current license issued by the department and 27 (A) an affidavit from the intended recipient certifying that the 28 person receiving the tobacco product is a person described under (b)(1) - (4) of 29 this section; or 30 (B) the common or contract carrier verifies the age of the 31 recipient as 21 years of age or older before delivery; or
01 (2) receiving the tobacco product is a person described under (a)(2) or 02 (3) of this section or is licensed under this chapter and, before receipt, provides the 03 common or contract carrier with a copy of the person's current license issued by the 04 department. 05 (d) If a tobacco product is transported by a common or contract carrier to a 06 home or residence, it is rebuttably presumed that the common or contract carrier knew 07 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 08 of this section, unless the person shipping the tobacco product has satisfied the 09 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 to a person in this state, unless the recipient of the tobacco 12 product is a person described under (b)(1) - (5) of this section. 13 (f) A person who ships or causes to be shipped a tobacco product to a person 14 in this state shall plainly and visibly mark the container or wrapping with the words 15 "tobacco product" if the tobacco product is shipped in a container or wrapping other 16 than the manufacturer's original container or wrapping of the tobacco product. 17 (g) A person who violates the provisions of this section is guilty of a class A 18 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 19 tobacco product. 20 (h) In addition to the criminal penalty under (g) of this section, the department 21 may assess a civil penalty of not more than $5,000 for each violation of this section. 22 (i) A person who violates the provisions of this section is jointly and severally 23 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 24 permitted by the Constitution of the United States, a person who violates the 25 provisions of this section is required to collect the taxes and pay them to the 26 department. 27 * Sec. 17. AS 43.50 is amended by adding new sections to read: 28 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 29 Sec. 43.50.850. Tax levied. A tax is levied on closed electronic smoking 30 products and vapor products in the state. The tax is 25 percent of the retail sales price 31 of a closed electronic smoking product or a vapor product.
01 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 02 (1) a closed electronic smoking product or vapor product 03 (A) sold in a facility operated by one of the uniformed services 04 of the United States; 05 (B) approved for sale by the United States Food and Drug 06 Administration as a drug, drug product, including a drug product used to treat 07 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 08 (Federal Food, Drug, and Cosmetic Act); 09 (C) if the United States Constitution or other federal laws 10 prohibit the levying of the tax on the product by the state; 11 (D) designed, marketed, and sold for the purpose of vaporizing 12 or aerosolizing marijuana, marijuana products, hemp, or hemp products and 13 intended for sale only in a retail marijuana store; 14 (2) marijuana or marijuana products subject to tax under AS 43.61 if 15 the marijuana or marijuana products do not contain nicotine; or 16 (3) hemp or hemp products if the hemp or hemp products do not 17 contain nicotine. 18 (b) In this section, 19 (1) "hemp" and "hemp products" mean hemp or a hemp product 20 produced by an individual registered under AS 03.05.076; 21 (2) "marijuana," "marijuana products," and "retail marijuana store" 22 have the meanings given in AS 17.38.900; 23 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 24 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 25 person must be licensed by the department if the person engages in business as a 26 retailer of an electronic smoking product. 27 (b) The department, upon application and payment of a fee of $50, shall issue 28 a license for one year to a person who applies for a license under (a) of this section. 29 (c) The department may refuse to issue a license under this section if 30 (1) there is reasonable cause to believe the information submitted in 31 the application is false or misleading and is not made in good faith;
01 (2) the applicant is not in good standing under AS 10.06 (Alaska 02 Corporations Code); or 03 (3) a tax levied under this chapter is due and unpaid by the applicant. 04 (d) A license issued under this section must include the name and address of 05 the licensee, the type of business to be conducted, and the year for which the license is 06 issued. 07 (e) The department may renew a license issued under this section for a fee of 08 $50 if the applicant 09 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 10 and 11 (2) does not have unpaid taxes under this chapter. 12 (f) The department may suspend, revoke, or refuse to renew a license issued 13 under this section as provided in AS 43.50.070. 14 (g) A license required by this section is in addition to any other license 15 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 16 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 17 (h) A license issued under this section is not assignable or transferable, except 18 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 19 if the business of the licensee is transferred to another by operation of law, the 20 department may extend the license for a limited time to the executor, administrator, 21 trustee, receiver, or transferee. 22 (i) A person licensed under this section may not 23 (1) distribute an electronic smoking product designed or packaged so 24 as not to be clearly recognizable as an electronic smoking product; or 25 (2) market an electronic smoking product, including a flavored 26 electronic smoking product, in a manner likely to promote use of the electronic 27 smoking product by a person under 21 years of age. 28 Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 29 licensee shall file a return with the department. The return must state the number or 30 amount of closed electronic smoking products, vapor products, and other electronic 31 smoking products sold by the licensee during the preceding calendar month, the
01 selling price of the electronic smoking products, and the amount of tax imposed on the 02 closed electronic smoking products and vapor products. 03 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 04 of all electronic smoking products of the licensee, including purchase prices, sales 05 prices, the names and addresses of the sellers, the dates of delivery, the quantities of 06 electronic smoking products, and the trade names and brands. Statements and records 07 required by this section must be in the form prescribed by the department, preserved 08 for three years, and available for inspection upon demand by the department. 09 Sec. 43.50.875. Disposition of proceeds. The department shall separately 10 account for tax collected on closed electronic smoking products and vapor products 11 under AS 43.50.850. The annual estimated balance in the account may be appropriated 12 by the legislature to provide for 13 (1) health care, health research, health promotion, and health 14 education; 15 (2) health programs, education, or advertising related to the hazards of 16 electronic smoking products; or 17 (3) efforts to prevent or detect the use of tobacco or electronic smoking 18 products in a school, including the hiring of health advocates or for electronic smoking 19 product detection devices. 20 Sec. 43.50.880. Restrictions on shipping or transporting electronic 21 smoking products. (a) A person who is not licensed under this chapter may not ship 22 or cause to be shipped an electronic smoking product to a person in this state unless 23 the person receiving the electronic smoking product is 24 (1) licensed under this chapter; 25 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 26 or 19 U.S.C. 1555; or 27 (3) an instrumentality of the federal government or an Indian tribal 28 organization authorized by law to possess electronic smoking products not taxed under 29 this chapter. 30 (b) A person who is licensed under this chapter may not ship or cause to be 31 shipped an electronic smoking product to a person in this state unless the person
01 receiving the electronic smoking product 02 (1) is licensed under this chapter; 03 (2) holds a business license endorsement under AS 43.70.075; 04 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 05 1311 or 19 U.S.C. 1555; 06 (4) is an instrumentality of the federal government or an Indian tribal 07 organization authorized by law to possess electronic smoking products not taxed under 08 this chapter; or 09 (5) is an individual 21 years of age or older and the individual's age 10 was verified at the time of purchase though a third-party verification service, the 11 individual is receiving the electronic smoking product for personal consumption, and 12 the tax imposed on the electronic smoking product under this chapter has been paid. 13 (c) A common or contract carrier may not knowingly transport an electronic 14 smoking product to a person in this state unless the person 15 (1) shipping the electronic smoking product is licensed under this 16 chapter and, before shipment, provides the common or contract carrier with a copy of 17 the person's current license issued by the department and 18 (A) an affidavit from the intended recipient certifying that the 19 person receiving the electronic smoking product is a person described under 20 (b)(1) - (4) of this section; or 21 (B) the common or contract carrier verifies the age of the 22 recipient as 21 years of age or older before delivery; or 23 (2) receiving the electronic smoking product is a person described 24 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 25 provides the common or contract carrier with a copy of the person's current license 26 issued by the department. 27 (d) If an electronic smoking product is transported by a common or contract 28 carrier to a home or residence, it is rebuttably presumed that the common or contract 29 carrier knew that the recipient of the electronic smoking product was not a person 30 described under (b)(1) - (5) of this section, unless the person shipping the electronic 31 smoking product has satisfied the requirements in (c)(1) of this section.
01 (e) A person, other than a common or contract carrier, may not knowingly 02 transport an electronic smoking product to a person in this state, unless the recipient of 03 the electronic smoking product is a person described under (b)(1) - (5) of this section. 04 (f) A person who ships or causes to be shipped an electronic smoking product 05 to a person in this state shall plainly and visibly mark the container or wrapping with 06 the words "electronic smoking product" if the electronic smoking product is shipped in 07 a container or wrapping other than the manufacturer's original container or wrapping 08 of the electronic smoking product. 09 (g) A person who violates the provisions of this section is guilty of a class A 10 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 11 electronic smoking product. 12 (h) In addition to the criminal penalty under (g) of this section, the department 13 may assess a civil penalty of not more than $5,000 for each violation of this section. 14 (i) A person who violates the provisions of this section is jointly and severally 15 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 16 Constitution of the United States, a person who violates the provisions of this section 17 is required to collect the taxes and pay them to the department. 18 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 19 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 20 for sale or distribution in this state, or import or cause to be imported into this state for 21 sale or distribution in this state only electronic smoking products 22 (1) for which the component vapor product 23 (A) has a nicotine content of less than 60 milligrams of nicotine 24 for each milliliter of vapor product; 25 (B) is protected from breakage and leakage; 26 (C) does not contain added vitamins or other additives 27 marketed to create the impression of health benefits; in this subparagraph, 28 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 29 stimulants, and colorants; 30 (2) that are packaged to be child- and tamper-proof; and 31 (3) that are labeled to inform consumers about all vapor product
01 ingredients and nicotine content. 02 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 03 (1) means the total amount of consideration, including cash, credit, 04 property, and services, for which an electronic smoking product is purchased or sold, 05 valued in money, whether received in money or otherwise, without any deduction for 06 (A) the seller's cost of the electronic smoking product sold; 07 (B) the cost of materials used, labor or service cost, interest, 08 losses, cost of transportation, taxes, or other expenses of the seller; 09 (C) charges by the seller for services necessary to complete the 10 sale; 11 (D) delivery charges; 12 (2) does not include 13 (A) discounts, including cash or coupons that are not 14 reimbursed by a third party, that are allowed by a seller and taken by a 15 purchaser on a sale; 16 (B) interest, financing, and carrying charges from credit 17 extended on the sale of an electronic smoking product if the amount is 18 separately stated on the invoice, bill of sale, or similar document given to the 19 purchaser; and 20 (C) taxes legally imposed directly on the consumer that are 21 separately stated on the invoice, bill of sale, or similar document given to the 22 purchaser. 23 Article 9. General Provisions. 24 Sec. 43.50.990. Definitions. In this chapter, 25 (1) "closed electronic smoking product" means a single-use electronic 26 smoking product that includes a pre-filled disposable cartridge of vapor product; 27 (2) "electronic smoking product" 28 (A) includes 29 (i) a product that can be used to deliver aerosolized or 30 vaporized nicotine to the person inhaling; 31 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen,
01 or other similar device of any shape; 02 (iii) a component, part, accessory, or device related to 03 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 04 device of any shape; 05 (iv) a vapor product used in a device or product 06 described in (i) or (ii) of this subparagraph; 07 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 08 or other similar device of any shape sold together with a solution, vapor 09 product, or other similar product as a disposable nonrefillable unit; 10 (B) does not include a 11 (i) battery, battery charger, heating element, electronic 12 coil, or mouthpiece intended for use in an electronic smoking product, 13 when sold separately from the electronic smoking product; 14 (ii) cartridge, pod, tank, or similar container intended to 15 transport a vapor product, if sold empty; 16 (3) "nicotine" has the meaning given in AS 11.81.900(b); 17 (4) "retailer" means a person in the state who is engaged in the 18 business of selling electronic smoking products at retail; 19 (5) "vapor product" means a substance intended to be aerosolized or 20 vaporized during the use of an electronic smoking product. 21 * Sec. 18. AS 43.70.075(f) is amended to read: 22 (f) A person who holds a license endorsement issued under this section shall 23 post on the licensed premises a warning sign as described in this subsection. A 24 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 25 must read: "The sale of electronic smoking products or products containing nicotine 26 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 27 person holding an endorsement issued under this section shall display the warning sign 28 in a manner conspicuous to a person purchasing or consuming tobacco products, 29 electronic smoking products, or products containing nicotine on the licensed premises. 30 The department shall make available the warning signs required under this section to a 31 person who holds an endorsement issued under this section or a person who requests
01 the sign with the intention of displaying it. 02 * Sec. 19. AS 43.70.075(m) is amended to read: 03 (m) The department may initiate suspension of a business license endorsement 04 or the right to obtain a business license endorsement under this section by sending the 05 person subject to the suspension a notice by certified mail, return receipt requested, or 06 by delivering the notice to the person. The notice must contain information that 07 informs the person of the grounds for suspension, the length of any suspension sought, 08 and the person's right to administrative review. A suspension begins 30 days after 09 receipt of notice described in this subsection unless the person delivers a timely 10 written request for a hearing to the department in the manner provided by regulations 11 of the department. If a hearing is requested under this subsection, an administrative 12 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 13 issues by using the preponderance of the evidence test and shall, to the extent they do 14 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 15 manner provided by regulations of the department. A hearing under this subsection is 16 limited to the following questions: 17 (1) was the person holding the business license endorsement, or an 18 agent or employee of the person while acting within the scope of the agency or 19 employment of the person, convicted by plea or judicial finding of violating 20 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 21 (2) if the department does not allege a conviction of AS 11.76.100, 22 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 23 person while acting within the scope of the agency or employment of the person, 24 violate a provision of (a) or (g) of this section; 25 (3) within the 24 months before the date of the department's notice 26 under this subsection, was the person, or an agent or employee of the person while 27 acting within the scope of the agency or employment of the person, convicted of 28 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 29 violating a provision of (a) or (g) of this section; 30 (4) did the person holding the business license endorsement establish 31 that the person holding the business license endorsement had adopted and enforced an
01 education, a compliance, and a disciplinary program for agents and employees of the 02 person as provided in (t) of this section; 03 (5) did the person holding the business license endorsement overcome 04 the rebuttable presumption established in (w) of this section; 05 (6) within five years before the date of the violation that is the subject 06 of the hearing, did the department establish that the person holding the business 07 license endorsement 08 (A) previously violated (a) or (g) of this section; 09 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 10 11.76.109 at a location or outlet in a location for which the person holds a 11 business license endorsement, or had an agent or employee previously violate 12 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 13 apply to a prior conviction that served to enhance a suspension period under 14 (d)(2) - (4) of this section; or 15 (C) engaged at a location owned by the person in other conduct 16 that was or is likely to result in the sale of tobacco, electronic smoking 17 products, or products containing nicotine to a person under 21 [19] years of 18 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 19 * Sec. 20. AS 43.70.075(t) is amended to read: 20 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 21 section, the department may reduce the license suspension period under (d) of this 22 section if the person holding the business license endorsement establishes that, before 23 the date of the violation, the person had 24 (1) adopted and enforced a written policy against selling cigarettes, 25 cigars, tobacco, products containing tobacco, electronic smoking products, or products 26 containing nicotine to a person under 21 [19] years of age in violation of 27 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 28 (2) informed the person's agents and employees of the applicable laws 29 and their requirements and conducted training on complying with the laws and 30 requirements; 31 (3) required each agent and employee of the person to sign a form
01 stating that the agent and employee has been informed of and understands the written 02 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 03 (4) determined that the agents and employees of the person had 04 sufficient experience and ability to comply with the written policy and requirements of 05 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 06 (5) required the agents and employees of the person to verify the age 07 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 08 electronic smoking products, or products containing nicotine by means of a valid 09 government issued photographic identification; 10 (6) established and enforced disciplinary sanctions for noncompliance 11 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 12 and 11.76.109; and 13 (7) monitored the compliance of the agents and employees of the 14 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 15 11.76.107, and 11.76.109. 16 * Sec. 21. AS 43.70.075(w) is amended to read: 17 (w) For purposes of (m)(5) of this section, a conviction for a violation of 18 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 19 person who holds the business license endorsement is rebuttably presumed to 20 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 21 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 22 product containing nicotine to a person under 21 [19] years of age. The person who 23 holds the business license endorsement may overcome the presumption by 24 establishing by clear and convincing evidence that the agent or employee did not 25 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 26 electronic smoking product, or a product containing nicotine to a person under 21 [19] 27 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 28 alleged in the citation issued to the agent or employee. The presentation of evidence 29 authorized by this subsection does not constitute a collateral attack on the conviction 30 described in this subsection. 31 * Sec. 22. AS 45.50.471(b) is amended by adding a new paragraph to read:
01 (58) marketing an electronic smoking product in a manner likely to 02 promote use of electronic smoking products by a person under 21 years of age; in this 03 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 04 * Sec. 23. AS 47.12.030(b) is amended to read: 05 (b) When a minor is accused of violating a statute specified in this subsection, 06 other than a statute the violation of which is a felony, this chapter and the Alaska 07 Delinquency Rules do not apply and the minor accused of the offense shall be 08 charged, prosecuted, and sentenced in the district court in the same manner as an 09 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 10 subsection, the minor's parent, guardian, or legal custodian shall be present at all 11 proceedings; the provisions of this subsection apply when a minor is accused of 12 violating 13 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 14 a municipality; 15 (2) AS 11.76.105, relating to the possession of tobacco by a person 16 under 21 [19] years of age; 17 (3) a fish and game statute or regulation under AS 16; 18 (4) a parks and recreational facilities statute or regulation under 19 AS 41.21; 20 (5) [REPEALED] 21 (6) a municipal curfew ordinance, whether adopted under 22 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 23 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 24 the violation of a municipal curfew ordinance, the court shall allow a defendant the 25 option of performing community work; the value of the community work, which may 26 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 27 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 28 or work that, on the recommendation of the municipal or borough assembly, city 29 council, or traditional village council of the defendant's place of residence, would 30 benefit persons within the municipality or village who are elderly or disabled; 31 (7) AS 04.16.050, relating to consumption, possession, or control of
01 alcohol by a person under 21 years of age. 02 * Sec. 24. AS 11.76.100(e) and 11.76.106(b)(4) are repealed. 03 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 APPLICABILITY. (a) The following sections apply to offenses committed on or after 06 the effective date of those sections: 07 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 08 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 09 (3) AS 11.76.105, as amended by sec. 3 of this Act; 10 (4) AS 11.76.105(d), enacted by sec. 4 of this Act; 11 (5) AS 11.76.106(a), as amended by sec. 5 of this Act; 12 (6) AS 11.76.106(b), as amended by sec. 6 of this Act; 13 (7) AS 11.76.109(a), as amended by sec. 7 of this Act; 14 (8) AS 11.76.109(b), as amended by sec. 8 of this Act; 15 (9) AS 11.76.109(d), as amended by sec. 9 of this Act; 16 (10) AS 11.76.109(g), as amended by sec. 10 of this Act; 17 (11) AS 11.81.900(b)(69), enacted by sec. 11 of this Act; 18 (12) AS 43.50.325, enacted by sec. 16 of this Act; 19 (13) AS 43.50.880, enacted by sec. 17 of this Act; and 20 (14) AS 47.12.030(b), as amended by sec. 23 of this Act. 21 (b) AS 11.76.100(a)(4), as amended by sec. 1 of this Act, and AS 11.76.109(a)(4), as 22 amended by sec. 7 of this Act, do not apply to a person 19 years of age or older who is 23 employed on the effective date of secs. 1 and 7 of this Act by a person with a business license 24 endorsement under AS 43.70.075. 25 * Sec. 26. This Act takes effect January 1, 2024.