Legislature(2017 - 2018)SENATE FINANCE 532

02/16/2018 09:00 AM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 15 E-CIGS: SALE TO AND POSSESSION BY MINOR TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 125 EXTEND BOND AUTH FOR INTERIOR ENERGY PROJ TELECONFERENCED
Moved CSSB 125(CRA) Out of Committee
                 SENATE FINANCE COMMITTEE                                                                                       
                     February 16, 2018                                                                                          
                         9:04 a.m.                                                                                              
                                                                                                                                
9:04:07 AM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair  MacKinnon  called  the  Senate  Finance  Committee                                                                    
meeting to order at 9:04 a.m.                                                                                                   
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Senator Anna MacKinnon, Co-Chair                                                                                                
Senator Click Bishop, Vice-Chair                                                                                                
Senator Peter Micciche                                                                                                          
Senator Donny Olson                                                                                                             
Senator Gary Stevens                                                                                                            
Senator Natasha von Imhof                                                                                                       
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Senator Lyman Hoffman, Co-Chair                                                                                                 
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Senator  Pete Kelly,  Sponsor;  Tim  Lamkin, Staff,  Senator                                                                    
Gary  Stevens; Alison  Kulas,  Executive Director,  Advisory                                                                    
Board  on  Alcoholism &  Drug  Abuse,  Juneau; Kristin  Cox,                                                                    
Tobacco Prevention and Control  Program, National Council on                                                                    
Alcoholism and Drug Dependence, Juneau.                                                                                         
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Jay Butler, Chief Medical Officer,  Department of Health and                                                                    
Social  Services;  Pamela  Howard, Self,  Soldotna;  Zachary                                                                    
Stockton,  Self,  Kenai;  Jennifer  Brandt,  Self,  Wasilla;                                                                    
Ethan  Brandt,  Self,  Wasilla;  Noel  Crowley  Bell,  Self,                                                                    
Palmer;  Terrence Robbins,  Self,  Ketchikan; Robin  Minard,                                                                    
Director  of   Public  Affairs,  Matsu   Health  Foundation,                                                                    
Wasilla;   Jennifer   Summers,   Self,   Anchorage;   Joseph                                                                    
Yourkoski, Self,  Nikiski; Joe Darnell,  Chief Investigator,                                                                    
Youth  Tobacco Enforcement  Program, Division  of Behavioral                                                                    
Health,   Department   of   Health  and   Social   Services,                                                                    
Anchorage.                                                                                                                      
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
SB 15     E-CIGS: SALE TO AND POSSESSION BY MINOR                                                                               
                                                                                                                                
          SB 15 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
SB 125    EXTEND BOND AUTH FOR INTERIOR ENERGY PROJ                                                                             
                                                                                                                                
          CSSB 125(CRA) was REPORTED out of committee with                                                                      
          a "no recommendation" recommendation and with one                                                                     
          zero fiscal note: FN1(CED).                                                                                           
                                                                                                                                
SENATE BILL NO. 125                                                                                                           
                                                                                                                                
     "An  Act  relating to  the  financing  and issuance  of                                                                    
     bonds  for a  liquefied natural  gas production  system                                                                    
     and natural gas distribution  system; and providing for                                                                    
     an effective date."                                                                                                        
                                                                                                                                
9:04:32 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon informed  that SB 125 was  heard and held                                                                    
on Monday, February 12, 1018.  The public hearing was opened                                                                    
and  closed. The  committee had  discussed the  fiscal notes                                                                    
and there were no proposed amendments.                                                                                          
                                                                                                                                
SENATOR PETE KELLY, SPONSOR, stated  that he appreciated the                                                                    
committee hearing the bill.                                                                                                     
                                                                                                                                
Vice-Chair Bishop  stated that  FN1 was  a zero  fiscal note                                                                    
from  the Department  of  Commerce,  Community and  Economic                                                                    
Development.                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop  MOVED to  report  CSSB  125(CRA) out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal  note. There being NO  OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  125(CRA) was  REPORTED  out of  committee  with a  "no                                                                    
recommendation"  recommendation  and  with one  zero  fiscal                                                                    
note: FN1(CED).                                                                                                                 
                                                                                                                                
9:06:22 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:08:48 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
SENATE BILL NO. 15                                                                                                            
                                                                                                                                
     "An  Act  relating  to   possession  of  an  electronic                                                                    
     smoking product  or a product containing  nicotine by a                                                                    
     minor and  to selling  or giving an  electronic smoking                                                                    
     product  to  a  minor;  relating  to  business  license                                                                    
     endorsements  to  sell   cigarettes,  cigars,  tobacco,                                                                    
     products   containing   tobacco,   electronic   smoking                                                                    
     products,   or   products  containing   nicotine;   and                                                                    
     relating to  citations for certain  offenses concerning                                                                    
     tobacco or nicotine products."                                                                                             
                                                                                                                                
9:08:48 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon read the title of the bill.                                                                                  
                                                                                                                                
Senator Stevens, Sponsor, spoke to  the bill. He stated that                                                                    
the  purpose  of  the  bill was  to  protect  children  from                                                                    
becoming addicted  to nicotine. The bill  clearly restricted                                                                    
the  possession  and  sale of  electronic  smoking  products                                                                    
containing  nicotine. Additionally,  the bill  gave agencies                                                                    
the means to enforce the restriction.                                                                                           
                                                                                                                                
TIM  LAMKIN, STAFF,  SENATOR GARY  STEVENS,  showed a  brief                                                                    
slideshow  that  depicted  the  components  of  e-cigarettes                                                                    
(copy on file). He cited  information from the United States                                                                    
Center for  Disease Control (CDC) that  indicated there were                                                                    
approximately  4  million  middle  school  and  high  school                                                                    
students   using  the   products   nationwide.  In   Alaska,                                                                    
approximately 15  to 25  percent of  middle school  and high                                                                    
school students had been exposed to e-cigarette products.                                                                       
                                                                                                                                
                                                                                                                                
Mr. Lamkin alleged that there  was a statutory loophole that                                                                    
made it  illegal to buy  or sell tobacco products  to minors                                                                    
while it remained legal for  minors to possess the products.                                                                    
There was no provision  for law enforcement or investigators                                                                    
to enforce or  issue violations for minors  in possession of                                                                    
nicotine.  There was  no provision  for  citing vendors  for                                                                    
selling  e-cigarette products  to minors.  He referenced  an                                                                    
informal  survey that  showed  about 78  percent of  Alaskan                                                                    
educators  had  concern  about   youth  use  of  e-cigarette                                                                    
products.                                                                                                                       
                                                                                                                                
9:11:49 AM                                                                                                                    
                                                                                                                                
Mr.  Lamkin continued  to discuss  SB 15.  He discussed  the                                                                    
lack of  available information on the  safety of e-cigarette                                                                    
products. He  thought that there  would be  information that                                                                    
suggested  the chemicals  used  in  e-cigarettes were  safer                                                                    
than tobacco but contended that  it was not true. He details                                                                    
that   although   the   United    States   Food   and   Drug                                                                    
Administration  (FDA)  had  approved certain  chemicals  for                                                                    
consumption,  the chemicals  were not  necessarily safe  for                                                                    
absorption  through  the  lungs. He  thought  the  long-term                                                                    
effects of e-cigarettes were only beginning to be studied.                                                                      
                                                                                                                                
Mr. Lamkin  proposed that  the prudent way  to deal  with e-                                                                    
cigarette usage was to use  the same policy and treatment as                                                                    
with tobacco  usage. The bill addressed  commercial activity                                                                    
and  required  a  special endorsement  for  sales  (as  with                                                                    
tobacco  sales). He  discussed  local  businesses that  were                                                                    
selling  e-cigarette products  and noted  that there  was no                                                                    
current way to identify such businesses.                                                                                        
                                                                                                                                
Mr. Lamkin  addressed potential opposition  to the  bill. He                                                                    
thought  that  opponents  would   suggest  that  there  were                                                                    
adequate federal  laws in place.  He mentioned  the Alcohol,                                                                    
Drug Abuse, and  Mental Health Administration Reorganization                                                                    
Act  of 1992,  which required  states to  enact and  enforce                                                                    
laws restricting youth access to substances.                                                                                    
                                                                                                                                
9:15:22 AM                                                                                                                    
                                                                                                                                
Mr.   Lamkin  discussed   the   FDA's  limited   enforcement                                                                    
resources.  He  contended  that the  federal  penalties  for                                                                    
vendors were not enough. He  thought the bill was needed for                                                                    
any  meaningful  monitoring  and  enforcement  of  youth  e-                                                                    
cigarette   use.  He   discussed  the   tobacco  endorsement                                                                    
proposed by  the bill, which  he opined was not  onerous nor                                                                    
damaging to businesses.                                                                                                         
                                                                                                                                
Mr. Lamkin  discussed the use  of e-cigarettes as  a smoking                                                                    
cessation  tool,  which  he thought  precluded  use  of  the                                                                    
products by  youth. He  reiterated that  the purpose  of the                                                                    
bill was to prevent youth from using tobacco products.                                                                          
                                                                                                                                
Mr. Lamkin  relayed that in  August 2017, the FDA  had ruled                                                                    
that for regulatory purposes,  e-cigarettes would be treated                                                                    
as tobacco  products. There  were currently  no requirements                                                                    
to verify or  regulate marketing of the  chemicals that went                                                                    
into the devices. He referenced  a study from the University                                                                    
of North Dakota that indicated  51 percent of samples tested                                                                    
contained higher  amounts of nicotine than  indicated on the                                                                    
label.                                                                                                                          
                                                                                                                                
Mr. Lamkin showed  a sample of an e-cigarette.  He read fine                                                                    
print from  the e-cigarette label that  stated, "may contain                                                                    
trace  amounts of  nicotine." He  thought some  vendors were                                                                    
not making an effort to  restrict the access of e-cigarettes                                                                    
to minors. He  summarized that the bill was  about closing a                                                                    
loophole and  providing tools for state  agencies to monitor                                                                    
and enforce the restrictions.                                                                                                   
                                                                                                                                
9:19:14 AM                                                                                                                    
                                                                                                                                
Mr. Lamkin detailed that an  important component of the bill                                                                    
was the  differentiation between different types  of tobacco                                                                    
products.  Changes to  statute would  address both  relevant                                                                    
statutes  related   to  tobacco  products   and  alternative                                                                    
tobacco products.  He addressed  the Sectional  Analysis for                                                                    
the Committee Substitute (CS) for SB 15(JUD):                                                                                   
                                                                                                                                
     Section 1:     AS  11.76.IOS(a)  Adds to  existing  law                                                                    
     that,  as  with   prohibiting  minors  from  possessing                                                                    
     cigarettes or  tobacco, to also prohibit  possession of                                                                    
     electronic cigarettes and any component thereof.                                                                           
                                                                                                                                
     Section   2:  AS   11.76.IOS(c)  Extends   an  existing                                                                    
     exception  for   possession  by  minor  of   a  tobacco                                                                    
     product, to  include E-cigarettes  possession, provided                                                                  
     the  minor  is using  an  e-cigarette  for an  approved                                                                    
     medical  purpose, such  as  smoking  cessation, and  is                                                                    
     provided by a parent or prescribed by a doctor.                                                                            
                                                                                                                                
     Section 3:     AS  ll.76.106(b)   Extends  an  existing                                                                    
     exception to  clerk-controlled access to  tobacco or E-                                                                  
     Cigarette  products  sold  through a  vending  machine,                                                                    
     which are covered in the next section.                                                                                     
                                                                                                                                
     Section 4:     AS  11.76.107(a)  Adds to  existing  law                                                                    
     that,  as   with  tobacco  product   vending  machines,                                                                    
     vending  machines  dispensing electronic  cigarette  or                                                                    
     nicotine products must also be supervised.                                                                                 
                                                                                                                                
     Section  5:  AS  ll.76.109(a)   Adds  to  existing  law                                                                    
     prohibiting   the  sale   of   nicotine  products   and                                                                    
     electronic   cigarettes,  or   any  related   component                                                                    
     thereof, to a minor under 19 years old.                                                                                    
                                                                                                                                
     Section   6:  AS   ll.76.109(b)  Extends   an  existing                                                                    
     exception for  minor possession of a  nicotine product,                                                                    
     to include E-cigarettes  possession, provided the minor                                                                    
     is  using  an  e-cigarette   for  an  approved  medical                                                                    
     purpose, such as smoking cessation,  and is provided by                                                                    
     a parent or prescribed by a doctor.                                                                                        
                                                                                                                                
                                                                                                                                
     Section 7:  AS ll.76.109(e)  Extends the  existing fine                                                                    
     of  at  least $300  for  selling  nicotine products  to                                                                    
     minors, to include selling e-cigarette products.                                                                           
                                                                                                                                
                                                                                                                                
     Section 8:  AS 11.76.109(?) adds a  new subsection that                                                                    
     is consistent with existing  law regarding placement of                                                                    
     vending machines dispensing  tobacco products; that the                                                                    
     same  requirements  are  applied  to  vending  machines                                                                    
     dispensing E-cigarette or nicotine products.                                                                               
                                                                                                                                
9:23:18 AM                                                                                                                    
                                                                                                                                
Mr. Lamkin  detailed that  the sponsor  had worked  with the                                                                    
previous committee  of referral as well  as Senator Micciche                                                                    
(who had sponsored legislation related  to smoking) to align                                                                    
definitions for e-cigarettes.                                                                                                   
                                                                                                                                
Mr. Lamkin continued to address the Sectional Analysis:                                                                         
                                                                                                                                
     Section  9: AS  ll.8l.900(b)  Establishes a  definition                                                                    
     for   "electronic  smoking   product,"  summarized   as                                                                    
     follows:                                                                                                                   
                                                                                                                                
     (i)  any product  containing or delivering  nicotine or                                                                    
     any  other  substance  intended for  human  consumption                                                                    
     that  can be  used by  a person  through inhalation  of                                                                    
     vapor  or aerosol  from  the product,  of  any size  or                                                                    
     shape,   whether    the   product    is   manufactured,                                                                    
     distributed  marketed, or  sold as  an e-cigarette,  e-                                                                    
     cigar, e-pipe,  hookah, vape pen, or  any other product                                                                    
     name or descriptor; or                                                                                                     
                                                                                                                                
     (ii) a   component,   solution,   alternative   tobacco                                                                    
     product, e-liquid,  e-juice, vapor  product, flavoring,                                                                    
     or other  related product  of an  electronic cigarette,                                                                    
     electronic  cigar,   electronic  cigarillo,  electronic                                                                    
     pipe,  or other  similar device  of any  size or  shape                                                                    
     used for, or to  assist with, aerosolizing and inhaling                                                                    
     chemical substances  that may  cause an  adverse effect                                                                    
     on human health;                                                                                                           
                                                                                                                                
     (B)  does  not  include  marijuana  as  defined  in  AS                                                                    
     11.71.900                                                                                                                  
                                                                                                                                
     Section 10: AS  43.50.0?0(a) Adds enforcement provision                                                                    
     for the state to suspend,  revoke, or refuse to renew a                                                                    
     business for  violating provisions relating  to selling                                                                    
     E-cigarette products to minors.                                                                                            
                                                                                                                                
     Section 11:  AS 43.50.IOS(b) is amended  for conformity                                                                    
     and  consolidation,  changing "tobacco  endorsement  to                                                                    
     "business   license"  endorsement,   for  purposes   of                                                                    
     shipping or  transport of cigarettes.  It also  sets up                                                                    
     conformity  for the  following Section  8 of  the bill,                                                                    
     relating  to a  required  business license  endorsement                                                                    
     for  selling  E-cigarette  or  nicotine  products.  The                                                                    
     effect  is that  existing  tobacco license  endorsement                                                                    
     holders   may  also   sell  E-Cigarette   products  and                                                                    
     eliminates  a  need  for  the   state  to  establish  a                                                                    
     separate  database for  vendors  only  selling only  E-                                                                    
     Cigarette  products (and  not  tobacco), thus  reducing                                                                    
     fiscal costs of implementation.                                                                                            
                                                                                                                                
     Section  12:   AS  43.70.075(a)  amends   existing  law                                                                    
     requiring  a special  business  license endorsement  in                                                                    
     order  to  lawfully  sell  tobacco  products  for  each                                                                    
     location the  products are sold, by  including the same                                                                    
     license endorsement  requirements for  lawfully selling                                                                    
     E-cigarette  or nicotine  products, an  endorsement for                                                                    
     each location.                                                                                                             
                                                                                                                                
     Section  13:   AS  43.70.075(d)  amends   existing  law                                                                    
     relating to  selling tobacco to  minors, by  adding the                                                                    
     same  penalty  provisions, including  graduated  fines,                                                                    
     for  selling   E-cigarette  or  nicotine   products  to                                                                    
     minors. Following repeated convictions  within a 2 year                                                                    
     period, civil fines are structured as follows:                                                                             
                                                                                                                                
     1st offense: a civil penalty of $1,000 (from $300)                                                                         
     2nd offense: a civil penalty of $2,000 (from $500)                                                                         
     3rd offense: a civil penalty of $4,000 (from $1,000)                                                                       
                                                                                                                                
     After  3  convictions:   suspend  license  indefinitely                                                                    
     (from  1-year) and  a civil  penalty  of $10,000  (from                                                                    
     $2,500)                                                                                                                    
                                                                                                                                
9:27:17 AM                                                                                                                    
                                                                                                                                
Senator Micciche asked about the significance of the                                                                            
penalty for "after 3 convictions" in Section 13 of the                                                                          
Sectional Analysis.                                                                                                             
                                                                                                                                
Mr. Lamkin stated that the new statute would revoke a                                                                           
license indefinitely after 3 convictions to deter                                                                               
businesses from selling e-cigarette products to youth.                                                                          
                                                                                                                                
Mr. Lamkin continued to address the Sectional Analysis:                                                                         
                                                                                                                                
     Section  14:   AS  43.70.075(f)  amends   existing  law                                                                    
     requiring  signage when  selling  tobacco products,  to                                                                    
     also  require  signage   for  selling,  E-cigarette  or                                                                    
     nicotine products.  The signage must read  "The sale of                                                                    
     electronic  smoking  products  or  products  containing                                                                    
     nicotine  to a  person under  the age  of 19  without a                                                                    
     prescription  is illegal."  Signage must  be 8.5-inches                                                                    
     by 11-inches,  which is  a change  to make  sign design                                                                    
     and  printing more  efficient for  both  the state  and                                                                    
     vendors.                                                                                                                   
                                                                                                                                
     Section   15:    AS   43.70.075(i)    amends   existing                                                                    
     enforcement provisions that, as  with tobacco sales, to                                                                    
     allow  the  State  to  seize  and  destroy  a  vendor's                                                                    
     inventory of  E-cigarette or  nicotine products  in the                                                                    
     event  violating the  law  prohibiting  sales of  those                                                                    
     products to minors.                                                                                                        
                                                                                                                                
     Section 16:  AS 43.70.075(l) is amended  for conformity                                                                    
     that,  as with  tobacco  sales, to  allow one  business                                                                    
     license  endorsement  to  serve  as an  umbrella  if  a                                                                    
     vendor  has  multiple  locations they  are  selling  E-                                                                    
     cigarette or  nicotine products, and to  shut down only                                                                    
     the  offending vending  machine or  outlet location  in                                                                    
     the event of a violation.                                                                                                  
                                                                                                                                
     Sections 17?22:  AS 43.70.075(m),  (r), (t),  (v), (w),                                                                    
     and  (x)  are  amended  for conformity  that,  as  with                                                                    
     tobacco   sales,   to    allow   an   evidentiary   and                                                                    
     administrative hearing,  appeal process,  and penalties                                                                    
     in  the   event  of   violations  of   these  statutes,                                                                    
     involving the sale of  E-cigarette or nicotine products                                                                    
     to minors.                                                                                                                 
                                                                                                                                
Mr. Lamkin  relayed that  Sections 17  - 22  were conforming                                                                    
and  were related  to the  appeal and  hearing process  when                                                                    
vendors had been cited for violation.                                                                                           
                                                                                                                                
Mr. Lamkin continued to address the Sectional Analysis:                                                                         
                                                                                                                                
     Section 23:  AS 43.70.105(b) is amended  for conformity                                                                    
     that, as with tobacco products,  a vendor must have the                                                                    
     appropriate  business license  endorsement in  order to                                                                    
     lawfully sell E-cigarette or nicotine products.                                                                            
                                                                                                                                
     Section  24:  AS  43.70.110 is  added  for  conformity,                                                                    
     linking   the   definitions  of   "electronic   smoking                                                                    
     products,"   and  distinguishing   between  traditional                                                                    
     cigarette (tobacco) products  and other modern nicotine                                                                    
     alternatives.                                                                                                              
                                                                                                                                
Mr. Lamkin pointed out that  there had been a drafting error                                                                    
on page  6, Line 13 of  the bill. The number  of the statute                                                                    
referenced was incorrect.                                                                                                       
                                                                                                                                
Co-Chair MacKinnon  stated that the committee  would include                                                                    
the corrected reference in a committee substitute.                                                                              
                                                                                                                                
9:31:31 AM                                                                                                                    
                                                                                                                                
Mr. Lamkin explained that language  in Section 24 was in aid                                                                    
of making a distinction  in tobacco statutes versus statutes                                                                    
concerning  other newer  tobacco products.  He continued  to                                                                    
address the Sectional Analysis:                                                                                                 
                                                                                                                                
     Section  25: AS  44.29.092  is  amended for  conformity                                                                    
     that,  as with  tobacco sales,  providing the  Dept. of                                                                    
     Health  and  Social  Services the  authority  to  issue                                                                    
     citations  for  violating  state law  regarding  minors                                                                    
     buying, selling  or possessing E-cigarette  or nicotine                                                                    
     products.                                                                                                                  
                                                                                                                                
     Section 26:  Is the  applicability and  effective date,                                                                    
     applying   to  offenses   committed   only  after   the                                                                    
     effective  date of  the bill,  which would  be 90  days                                                                    
     after the bill is enacted.                                                                                                 
                                                                                                                                
9:32:31 AM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
9:33:32 AM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
JAY BUTLER, CHIEF MEDICAL OFFICER,  DEPARTMENT OF HEALTH AND                                                                    
SOCIAL SERVICES  (via teleconference), testified  in support                                                                    
of  the bill.  He thought  Mr.  Lamkin had  provided a  good                                                                    
background  on  e-cigarettes.  He   knew  there  was  public                                                                    
opinion   that  suggested   e-cigarettes  were   safer  than                                                                    
conventional  cigarettes. He  considered three  factors: the                                                                    
effects of e-cigarette use  for smoking cessation, intrinsic                                                                    
health  effects of  e-cigarettes,  and the  effect on  youth                                                                    
initiation of combustible products.  He thought the focus of                                                                    
SB  15  was  the  initiation of  youth  into  using  smoking                                                                    
combustible products.                                                                                                           
                                                                                                                                
Dr.  Butler addressed  the public  health perspective  on e-                                                                    
cigarettes as it related to  youth. He referenced a study by                                                                    
the National  Academy on  Science, Engineering  and Medicine                                                                    
that gave  an extensive review  of the health effects  of e-                                                                    
cigarettes. There had been substantial  evidence that use of                                                                    
e-cigarettes   increased   risk   of   combustible   tobacco                                                                    
cigarettes  among youth  and young  adults.  He pointed  out                                                                    
that  it  was  important  to recognize  that  refillable  e-                                                                    
cigarette devices  could also be  drug delivery  devices. He                                                                    
mentioned the  Anchorage outbreak of a  drug called "spice,"                                                                    
where  public health  officials became  aware that  the drug                                                                    
was being  used with liquids  packaged as car  air freshener                                                                    
and  vaped  using  refillable e-cigarettes.  He  echoed  Mr.                                                                    
Lamkin's  comments regarding  the  lack of  knowledge as  to                                                                    
where the devices could be purchased.                                                                                           
                                                                                                                                
Dr. Butler  continued his testimony.  He discussed  the role                                                                    
of the federal government and  recalled a 2016 FDA ruling to                                                                    
extend  regulatory   authority  to  all   tobacco  products,                                                                    
including  e-cigarettes.  It  allowed the  FDA  to  regulate                                                                    
manufacturing,  distribution and  marketing of  the products                                                                    
including e-cigarettes;  as well as automatic  provisions to                                                                    
address youth  access. More recently  the FDA  had announced                                                                    
that it would  delay a ruling on  regulation of e-cigarettes                                                                    
until August  of 2022. He  thought it was important  to have                                                                    
leadership to  have regulation of  e-cigarettes that  was as                                                                    
beneficial to health as possible.                                                                                               
                                                                                                                                
9:37:39 AM                                                                                                                    
                                                                                                                                
Senator Stevens understood  that if a minor  was addicted to                                                                    
nicotine it was possible to  get medical approval for use of                                                                    
nicotine products for smoking cessation.                                                                                        
                                                                                                                                
Dr.  Butler understood  the same,  although  noted that  the                                                                    
devices  in   question  were   not  recognized   as  tobacco                                                                    
cessation  tools by  the  FDA. There  were  other tools  for                                                                    
nicotine replacement therapy.                                                                                                   
                                                                                                                                
9:38:35 AM                                                                                                                    
                                                                                                                                
PAMELA  HOWARD, SELF,  SOLDOTNA (via  teleconference), spoke                                                                    
in support  of the  bill. She  relayed that  she had  been a                                                                    
school  nurse for  over 30  years and  had been  involved in                                                                    
teen peer  health education. She referenced  statistics that                                                                    
showed increased  e-cigarette use by middle  school and high                                                                    
school  students. She  considered that  e-cigarettes were  a                                                                    
gateway to use  of tobacco products. She  referenced a Youth                                                                    
Risk  Behavior Survey  and  thought  that although  students                                                                    
were not intending  to use nicotine, it had  been found that                                                                    
flavored  juices  in  e-cigarettes contained  nicotine.  She                                                                    
thought even though it was  not legal for minors to purchase                                                                    
the devices, it was possible  to obtain them. Peer educators                                                                    
that  she worked  with had  expressed great  concern on  the                                                                    
number  of   students  that  were   concealing  use   of  e-                                                                    
cigarettes.                                                                                                                     
                                                                                                                                
Ms.  Howard relayed  anecdotal stories  about the  frequency                                                                    
she had  seen minors using  vape devices. She  discussed the                                                                    
popularity and increased  use of the device.  She quoted the                                                                    
United States Surgeon  General's comments about e-cigarettes                                                                    
use by youth  being a significant public  health concern and                                                                    
the  importance of  action taken  by parents,  educators and                                                                    
policy-makers.                                                                                                                  
                                                                                                                                
9:43:03 AM                                                                                                                    
                                                                                                                                
ZACHARY   STOCKTON,   SELF,  KENAI   (via   teleconference),                                                                    
testified in support  of the bill. He relayed that  he was a                                                                    
junior at Kenai  Central High School. He  had seen increased                                                                    
use  of vape  devices. He  observed many  students that  had                                                                    
obtained the  devices in various ways  including through the                                                                    
internet.  He  had  seen   students  using  e-cigarettes  in                                                                    
bathrooms  and  classrooms.  He   thought  youth  usage  was                                                                    
increasing.                                                                                                                     
                                                                                                                                
9:44:39 AM                                                                                                                    
                                                                                                                                
ALISON   KULAS,  EXECUTIVE   DIRECTOR,  ADVISORY   BOARD  ON                                                                    
ALCOHOLISM  & DRUG  ABUSE, JUNEAU,  testified in  support of                                                                    
the  bill. She  relayed that  she  had served  as a  tobacco                                                                    
regulatory  science  fellow  with the  National  Academy  of                                                                    
Medicine,  placed at  the FDA  Center for  Tobacco Products.                                                                    
She believed  the bill was  an important step  in protecting                                                                    
youth.  She  stated that  nicotine  was  a highly  addictive                                                                    
substance that  harmed the developing  brains of  teens. She                                                                    
cited  research that  indicated that  nicotine use  re-wired                                                                    
the brains  of teenagers and  made them more  susceptible to                                                                    
other addictive substances. She  discussed the common use of                                                                    
e-cigarettes.  She  emphasized  that  the  use  of  products                                                                    
containing nicotine in any form were unsafe for youth.                                                                          
                                                                                                                                
Ms. Kulas continued her testimony.  She thought the bill was                                                                    
needed  to  align  the   e-cigarette  products  (now  deemed                                                                    
tobacco  products  by  the   federal  government)  with  the                                                                    
protections  already in  place for  other tobacco  products.                                                                    
She   discussed   the   importance  of   tobacco   retailers                                                                    
preventing  sales  to minors.  She  thought  youth would  be                                                                    
further  protected  by  extending  the  tobacco  endorsement                                                                    
license requirement to all tobacco products.                                                                                    
                                                                                                                                
9:47:28 AM                                                                                                                    
                                                                                                                                
KRISTIN  COX,   TOBACCO  PREVENTION  AND   CONTROL  PROGRAM,                                                                    
NATIONAL COUNCIL ON ALCOHOLISM  AND DRUG DEPENDENCE, JUNEAU,                                                                    
spoke in  support of the  bill. She discussed the  choice of                                                                    
fruit  flavors  as  tools  for  marketing  to  children  and                                                                    
asserted  that  the  use of  flavors  initiated  youth  into                                                                    
nicotine use and  addiction. She referenced a  2017 study by                                                                    
the Yale School of  Medicine that indicated that non-smoking                                                                    
teens that  used e-cigarettes were  seven times  more likely                                                                    
to start  smoking than  non-vaping peers.  Additionally, the                                                                    
study found that  vaping increased the risk  of smoking, but                                                                    
the inverse was  not true. She discussed  the increased rate                                                                    
of youth vaping.                                                                                                                
                                                                                                                                
9:49:37 AM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
JENNIFER   BRANDT,  SELF,   WASILLA  (via   teleconference),                                                                    
testified in  support of the  bill. She had two  children in                                                                    
middle  school. She  had been  surprised at  hearing of  her                                                                    
children's peer's  usage of e-cigarettes. She  discussed the                                                                    
addictive  nature of  nicotine. She  referenced a  report by                                                                    
the Department of Health and  Social Services. She mentioned                                                                    
the effects of nicotine on brain development.                                                                                   
                                                                                                                                
9:51:25 AM                                                                                                                    
                                                                                                                                
ETHAN BRANDT,  SELF, WASILLA (via teleconference),  spoke in                                                                    
support of  the bill. He  discussed the danger  of addiction                                                                    
and  nicotine.  He  thought people  were  being  misinformed                                                                    
about the effects of e-cigarettes.                                                                                              
                                                                                                                                
Senator Micciche asked about the grade of the testifier.                                                                        
                                                                                                                                
Mr. Brandt indicated he was in the eighth grade.                                                                                
                                                                                                                                
9:52:28 AM                                                                                                                    
                                                                                                                                
NOEL  CROWLEY  BELL,   SELF,  PALMER  (via  teleconference),                                                                    
testified in  support of the  bill. She thanked  the sponsor                                                                    
of   the  bill   for   the  comprehensive   nature  of   the                                                                    
legislation. She  thought shops  that sold  tobacco products                                                                    
needed  more oversight.  She asserted  that  nicotine was  a                                                                    
danger to  adolescent brains.  She referenced  research that                                                                    
indicated  that  if  an individual  had  not  used  nicotine                                                                    
before  the age  of 21,  they would  most likely  not become                                                                    
addicted. She urged the committee to pass the bill.                                                                             
                                                                                                                                
9:54:07 AM                                                                                                                    
                                                                                                                                
TERRENCE  ROBBINS,  SELF,  KETCHIKAN  (via  teleconference),                                                                    
testified in support of the  bill. He recalled trying Kodiak                                                                    
brand chewing tobacco at the  age of 13. He thought flavored                                                                    
tobacco products  were enticing to  youth and would  lead to                                                                    
addiction. He agreed with the provisions of the bill.                                                                           
                                                                                                                                
9:55:13 AM                                                                                                                    
                                                                                                                                
ROBIN  MINARD,  DIRECTOR  OF PUBLIC  AFFAIRS,  MATSU  HEALTH                                                                    
FOUNDATION, WASILLA  (via teleconference), spoke  in support                                                                    
of the  bill. She  referenced a  2016 investigation  by DHSS                                                                    
that found there was a 26  percent sell rate of vaping fluid                                                                    
to  minors in  the  vape  shops investigated.  Additionally,                                                                    
there  was a  9 percent  rates of  sales of  e-cigarettes to                                                                    
minors. She thought the bill  was about protecting the youth                                                                    
of Alaska. She considered  that e-cigarettes were a grooming                                                                    
tool for  accepting and becoming dependent  upon smoking and                                                                    
nicotine.  She  referenced  a  2015  report  that  showed  a                                                                    
correlation between e-cigarette and tobacco use.                                                                                
                                                                                                                                
9:57:01 AM                                                                                                                    
                                                                                                                                
JENNIFER  SUMMERS,  SELF,  ANCHORAGE  (via  teleconference),                                                                    
testified  in  support  of  the   bill.  She  discussed  the                                                                    
proportion of  youth that became  smokers. She  thought that                                                                    
e-cigarettes were  the most  commonly used  tobacco products                                                                    
amongst youth.  She discussed  marketing designed  to entice                                                                    
young people  to use  e-cigarettes. She was  the coach  of a                                                                    
youth sports  team. She had  learned that  e-cigarettes were                                                                    
extremely  popular   among  junior  high  and   high  school                                                                    
students. She discussed the easily concealed nature of e-                                                                       
cigarettes. She  thought that  there was  wide-spread belief                                                                    
that  e-cigarettes  were  safe,   despite  evidence  to  the                                                                    
contrary. She  thought the  bill would  reduce access  to e-                                                                    
cigarettes by youth.                                                                                                            
                                                                                                                                
9:59:22 AM                                                                                                                    
                                                                                                                                
JOSEPH  YOURKOWSKI,  SELF,   NIKISKI  (via  teleconference),                                                                    
testified  in support  of the  bill. He  was a  sophomore at                                                                    
Nikiski Middle High School. He  relayed that his schoolmates                                                                    
had  no problem  obtaining e-cigarette  devices. He  thought                                                                    
his peers  believed that e-cigarettes  were safe to  use. He                                                                    
was a cancer survivor.                                                                                                          
                                                                                                                                
10:00:21 AM                                                                                                                   
                                                                                                                                
JOE DARNELL,  CHIEF INVESTIGATOR, YOUTH  TOBACCO ENFORCEMENT                                                                    
PROGRAM,  DIVISION  OF   BEHAVIORAL  HEALTH,  DEPARTMENT  OF                                                                    
HEALTH AND SOCIAL  SERVICES, ANCHORAGE (via teleconference),                                                                    
spoke in  support of the  bill. He  relayed that he  was the                                                                    
chief investigator for underage  tobacco enforcement for the                                                                    
state. He discussed surveys on  the retail violation rate of                                                                    
selling vaping  products to youth.  He indicated  that there                                                                    
was a 26 percent sell rate  of e-juice to minors compared to                                                                    
a 5.4 percent sell rate of  tobacco to minors. He thought it                                                                    
was  important that  the bill  had an  endorsement added  to                                                                    
tobacco retailers.                                                                                                              
                                                                                                                                
Senator Stevens asked Mr. Darnell  how the bill would affect                                                                    
his office and job.                                                                                                             
                                                                                                                                
Mr. Darnell  shared that the  bill would not impact  his job                                                                    
to  a great  degree.  He discussed  doing compliance  checks                                                                    
with tobacco  retailers and  noted that  he would  be adding                                                                    
vape shops to his purview.                                                                                                      
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
Senator Micciche asked when the bill was noticed.                                                                               
                                                                                                                                
Co-Chair MacKinnon indicated that  the bill had been noticed                                                                    
the previous Thursday.                                                                                                          
                                                                                                                                
Senator  Micciche noted  that there  was  no testimony  from                                                                    
vape  shops. He  thought there  was an  indication that  the                                                                    
shops realized it was important  that the sale to minors not                                                                    
occur.                                                                                                                          
                                                                                                                                
Co-Chair  MacKinnon had  expected to  hear from  the various                                                                    
shops that  might be affected  by the  proposed legislation.                                                                    
She advised  the committee  that the  fiscal notes  would be                                                                    
reviewed  the  next  time  the   bill  was  considered.  She                                                                    
informed  that proposed  amendments were  due the  following                                                                    
Monday.                                                                                                                         
                                                                                                                                
Co-Chair MacKinnon discussed the  schedule for the following                                                                    
week.                                                                                                                           
                                                                                                                                
ADJOURNMENT                                                                                                                   
10:05:20 AM                                                                                                                   
                                                                                                                                
The meeting was adjourned at 10:05 a.m.                                                                                         
                                                                                                                                
                                                                                                                                

Document Name Date/Time Subjects
SB 15 Support Rodewald.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 AK Survey_Results_06April2017.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_Sectional_Version_N.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cig Sales to AK Youth 2017.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cig Sales to AK Youth 2016.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 NationalAcademiesScience_EffectsOfE-Cigs.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 UnivPittsburgh_E-Cigarettes Promote Smoking (002).pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 EXCERPTed_Surgeon General Report_E-Cigs Use Among Youth 2016.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_SummaryChanges_VersionA_to_R(LC).pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_Slideshow_WEB.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cig_Fires.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_AAAS_AsDangerousAsTobacco.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigarettes Poison the Airways.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_NCSL_Legisbrief.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_ADHSS_Bulletin.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_Memo_HSS_Sales_To_AK_Youth.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_Sectional_Version R.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 E-Cigs_SponsorStatement.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 Support Rogers.pdf SFIN 2/16/2018 9:00:00 AM
SB 15
SB 15 Opposition Letter McDonald.pdf SFIN 2/16/2018 9:00:00 AM
SB 15