Legislature(1997 - 1998)
04/17/1997 08:05 AM House STA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 79 - MINOR IN POSSESSION OF TOBACCO The next order of business to come before the House State Affairs Standing Committee was HB 79, "An Act relating to the offense of possession of tobacco by a person under 19 years of age." Number 0477 PATRICIA SWENSON, Legislative Assistant to Representative Con Bunde, explained the committee substitute (0-LS0348/P, Chenoweth, 4/16/97). MS. SWENSON explained Section 1 added language to prevent the business license endorsement owner, employee, or agent from being charged with a violation of selling or giving tobacco to a minor if the person showed proper identification. The new language was included under AS 11.76 to allow for enforcement by local authorities. Similar language was also included on page 7-8 in AS 43.70.075. The requirement of a person to sign a statement of age was dropped in the section. The intent was basically: no identification, no sale. It would not let the retailer off the hook in any way. The language concerning an employee in a break room was deleted in this section also. MS. SWENSON explained Sec. 2 addressed the issue of single cigarettes. It was renamed to "Unlawful sale of products containing tobacco." It made the unlawful sale an offense punishable upon conviction of a fine of $300. In addition, the Department of Commerce and Economic Development (DCED) could act with an administrative hearing to suspend or revoke an endorsement. The offenses chargeable were the following: to sell cigarettes that were not in their original package, to sell cigarettes in a package of less than 20, to sell cigarettes that did not display a warning, to sell cigarettes without assuring that they were kept in a secure place, to sell cigarettes in a store that failed to post the warning sign, or to sell cigarettes to a person under 19 years of age. The section also made it an offense to present false identification. MS. SWENSON explained Sec. 3 renamed Sec. 11.76.105 to "Possession of tobacco by a person under 19 years of age." It also removed the ability of a minor to posses tobacco while in an adult correctional facility. It clarified the amount of the fine for a minor in possession of tobacco at $300. MS. SWENSON explained Sec. 4 made the failure to supervise a cigarette vending machine an offense with criminal negligence. MS. SWENSON explained Sec. 5 remained the same. MS. SWENSON explained Sec. 6 added the language "or from developing tobacco-related education programs." as part of the anti-exemption provision so that the local government would not be preempted from adding other access programs. MS. SWENSON explained Sec. 8 combined Sec. 7,8,9,10 and 11 of the last committee substitute. The changes were under AS 43.70 requiring each owner to have a separate business license endorsement for each establishment that sold cigarettes. It also allowed the DCED to refuse a license to an establishment that had a suspended or revoked endorsement. The intent was to prevent an owner from changing the name of his establishment upon revocation then turning around and getting a new endorsement under the new name. It also allowed for the revocation of a business license endorsement without an administrative hearing when the owner had been convicted of a regulation violation. It also allowed for the signing of a statement of age instead of showing identification. MS. SWENSON explained Sec. 9 gave the department the ability to suspend or revoke a license without an administrative hearing upon conviction. MS. SWENSON explained Sec. 11 allowed the legislature to appropriate money from the increased business license endorsement fee for enforcement. MS. SWENSON explained Sec. 12 granted the department the authority to adopt regulations to determine and collect the fees imposed. Number 0943 REPRESENTATIVE IVAN IVAN commented that he represented a lot of small communities. He asked Ms. Swenson how the training provision in the bill would be executed? Number 0978 MS. SWENSON replied the department indicated it would set up a correspondence type training. Number 1001 REPRESENTATIVE KIM ELTON asked Ms. Swenson if a new fiscal note had been requested from the Department of Commerce and Economic Development? MS. SWENSON replied, "Yes." There was a department member here who could speak to the new fiscal note. It would end up being a wash. Number 1040 CHAIR JAMES asked Ms. Swenson if there was a penalty in the bill for kids caught selling cigarettes to other kids? MS. SWENSON replied the major thrust of the bill was aimed at the retailer for accountability rather than the minor. She did not know if anything like that could be added at this time. Number 1088 REPRESENTATIVE FRED DYSON commented Alaska law already spoke to the issue. He shared a story about a cop busting a kid for selling single cigarettes for $1. Number 1115 REPRESENTATIVE ETHAN BERKOWITZ commented that Sec. 2 covered the issue as well. He read, "(a) A person commits the offense of unlawful sale of products containing tobacco if the person (1) sells cigarettes (A) that are not in their original, unopened package or container obtained from the distributor;" MS. SWENSON commented it was a crime to begin with for a minor to possess cigarettes. Number 1136 REPRESENTATIVE ELTON asked Ms. Swenson if there was a prohibition on municipalities from establishing a tobacco tax now? MS. SWENSON replied, "No." But often tobacco companies enter at the local level and try to preempt their ability. Number 1174 LOREN JONES, Director, Division of Alcoholism and Drug Abuse, Department of Health and Social Services, was the first person to testify in Juneau. The committee substitute addressed a lot of the concerns of the department. The bill was a very important part of the enforcement package as a whole. Number 1232 REPRESENTATIVE IVAN asked Mr. Jones how the department planned to execute the training portion? Number 1245 MR. JONES replied, according to the DCED, it would establish a mechanism so that the course could be taken without leaving the area to address the concerns of the rural areas. It would be addressed further in the regulations. Number 1275 JENNIFER STRICKLER, Administrative Officer, Division of Occupational Licensing, Department of Commerce and Economic Development, was the next person to testify in Juneau. The committee substitute she announced satisfied the concerns of the department. The changes would create a fiscal impact. A draft fiscal note was pending the adoption of the committee substitute. CHAIR JAMES asked Ms. Strickler if the fiscal note would be neutral as the sponsor indicated? MS. STRICKLER replied, "Yes." The fiscal note indicated a little extra because the increased fees covered the cost of the training course. The extra could be used towards enforcement. Number 1367 LOIS IRVIN was the first person to testify via teleconference in Homer. She did not have the committee substitute before her so she did not have any idea what the discussion was about. It was interesting, however. CHAIR JAMES announced she would fax the committee substitute to her. MS. IRVIN said she would like to review it. CHAIR JAMES asked that Ms. Irvin review the committee substitute and direct any questions to the sponsor. Number 1476 REPRESENTATIVE DYSON asked Mr. Jones how the world would change for a responsible distributor as a result of the bill? In other words, a distributor that did not have a vending machine and the products were kept in a secured place. Number 1506 MR. JONES replied there were four significant changes. They were as followed: An employer would have to make his employees aware of the law; employees would have to go through a refresher course of the laws every couple of years; identification would be asked for more often; and the cost would go up for business. There were a lot of responsible people who already asked for identification. REPRESENTATIVE DYSON asked how much would the cost of business go up? MR. JONES replied from $25 to $100 for a single site. A multiple employer of 5 sites the cost would go from $25 to $500, for example. Number 1567 REPRESENTATIVE DYSON asked Mr. Jones how the bill would affect the business environment of tobacco type establishments? Number 1576 MR. JONES replied he did not frequent tobacco type shops so he did not know. The areas of change that he mentioned earlier would probably apply as well as the display of the tobacco products so that only a sales person could have access to them. Number 1618 REPRESENTATIVE DYSON asked Mr. Jones, if the shop would have to keep the items behind the counter, if it precluded those under the age of 19 from entering? Number 1629 MR. JONES replied he was not sure. Number 1635 CHAIR JAMES explained the issue of excluding tobacco shops could be addressed in the next committee of referral - the House Judiciary Standing Committee. Number 1665 REPRESENTATIVE IVAN asked Mr. Jones if there was an age restriction for employees who worked in a small mom and pop store that sold cigarettes? This was common in the smaller communities. Number 1697 MR. JONES replied he did not know. However, if he was the owner of a business he would error on the conservative side and not allow someone under 19 to sell any type of tobacco product. Maybe it was a question to take up in the House Standing Judiciary Committee as well. Number 1745 REPRESENTATIVE ELTON moved that the committee substitute (0- LS0348/P, Chenoweth, 4/16/97) be adopted. There was no objection, the committee substitute was so adopted. Number 1760 REPRESENTATIVE DYSON moved that CSHB 79(STA) move from the committee with individual recommendations and the attached fiscal note(s). Number 1770 REPRESENTATIVE AL VEZEY objected. A roll call vote was taken. Representatives James, Berkowitz, Dyson, Elton and Ivan voted in favor of the motion. Representative Vezey voted against the motion. The CSHB 79(STA) was so moved from the House State Affairs Standing Committee.
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