Legislature(2017 - 2018)SENATE FINANCE 532
02/16/2018 09:00 AM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB125 | |
| SB15 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 15 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 125 | TELECONFERENCED | |
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.