03/01/2021 01:30 PM Senate LABOR & COMMERCE
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| SB45 | |
| Adjourn |
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| += | SB 45 | TELECONFERENCED | |
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ALASKA STATE LEGISLATURE
SENATE LABOR AND COMMERCE STANDING COMMITTEE
March 1, 2021
1:30 p.m.
MEMBERS PRESENT
Senator Mia Costello, Chair
Senator Roger Holland, Vice Chair
Senator Gary Stevens
Senator Joshua Revak (via teleconference)
Senator Elvi Gray-Jackson
MEMBERS ABSENT
All members present.
COMMITTEE CALENDAR
SENATE BILL NO. 45
"An Act raising the minimum age to purchase, sell, exchange, or
possess tobacco, a product containing nicotine, or an electronic
smoking product; relating to transporting tobacco, a product
containing nicotine, or an electronic smoking product; relating
to the taxation of electronic smoking products; and providing
for an effective date."
- HEARD & HELD
PREVIOUS COMMITTEE ACTION
BILL: SB 45
SHORT TITLE: AGE FOR NICOTINE/E-CIG; TAX E-CIG.
SPONSOR(s): SENATOR(s) STEVENS
01/25/21 (S) PREFILE RELEASED 1/15/21
01/25/21 (S) READ THE FIRST TIME - REFERRALS
01/25/21 (S) L&C, FIN
02/19/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
02/19/21 (S) Heard & Held
02/19/21 (S) MINUTE(L&C)
03/01/21 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
WITNESS REGISTER
DR. MELINDA RATHKOPF, MD
Medical Director
Allergy, Asthma and Immunology Center of Alaska
Anchorage, Alaska
POSITION STATEMENT: Provided supporting testimony on SB 45.
MICHELLE KETCHUM, representing self
Anchorage, Alaska
POSITION STATEMENT: Invited testimony in support of SB 45.
KATHY STEWART, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 45.
ALEX MCDONALD, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to SB 45.
ALYSSA KEILL, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in support of SB 45.
SARAH EATON, representing self
Wasilla, Alaska
POSITION STATEMENT: Testified in opposition to the tax portion
of SB 45.
SHAWN D'SYLVA, Co-Founder
Clear the Air Alaska
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to taxation related
to SB 45.
CHARLES EDGE, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to portions of SB
45.
JAMIE MORGAN, Senior Government Relations Director
American Heart Association (AHA)
Sacramento, California
POSITION STATEMENT: Testified in support of SB 45.
RYAN TUNSETH, representing self
Kenai, Alaska
POSITION STATEMENT: Testified in opposition to SB 45.
JOHN BERRIER, Senior Director of State Government Affairs
JUUL Labs
Sacramento, California
POSITION STATEMENT: Testified in opposition to the taxation
provision in SB 45.
CARRIE NYSSEN, Senior Director of Advocacy
American Lung Association
POSITION STATEMENT: Testified in support of SB 45.
GREGORY CONLEY, President
American Vaping Association (AVA)
Medford, New Jersey
POSITION STATEMENT: Testified in opposition to the tax portion
of SB 45.
JAY OKU, Government Relations Director
Five Pawns
Orange County, California
POSITION STATEMENT: Testified in opposition to SB 45.
LINDSEY STRAUD, Policy Analysist
Tax Payers Alliance
Washington, D.C.
POSITION STATEMENT: Testified in opposition to the taxation
portion of SB 45.
ALEX CLARK, CEO,
Consumer Advocates for Smoke-free Alternatives Association
Plattsburgh, New York
POSITION STATEMENT: Testified in opposition to SB 45.
KATIE STEFFENS, Public Health Specialist
Division of Public Health
Department of Health and Social Services (DHSS)
Anchorage, Alaska
POSITION STATEMENT: Answered questions and provided information
related to SB 45.
JOE DARNELL, Investigator
Tobacco Section
Division of Behavioral Health
Department of Health and Social Services (DHSS)
Anchorage, Alaska
POSITION STATEMENT: Answered questions and provided information
related to SB 45.
ACTION NARRATIVE
1:30:23 PM
CHAIR MIA COSTELLO called the Senate Labor and Commerce Standing
Committee meeting to order at 1:30 p.m. Present at call to order
were Senators Holland, Gray-Jackson, Stevens, and Chair
Costello.
SB 45-AGE FOR NICOTINE/E-CIG; TAX E-CIG.
1:30:58 PM
CHAIR COSTELLO announced the consideration of SENATE BILL NO.
45, "An Act raising the minimum age to purchase, sell, exchange,
or possess tobacco, a product containing nicotine, or an
electronic smoking product; relating to transporting tobacco, a
product containing nicotine, or an electronic smoking product;
relating to the taxation of electronic smoking products; and
providing for an effective date."
She advised that public testimony would follow invited
testimony. She listed the individuals available to answer
questions.
1:32:13 PM
At ease
1:33:38 PM
CHAIR COSTELLO reconvened the meeting.
1:33:59 PM
DR. MELINDA RATHKOPF, MD, Medical Director, Allergy, Asthma and
Immunology Center of Alaska, Anchorage, Alaska read the
following supporting testimony on SB 45 into the record:
Good afternoon Chairwoman Costello and members of the
committee. My name is Dr. Melinda Rathkopf and I am
the medical director of the Allergy, Asthma and
Immunology Center of Alaska. I am board certified in
Allergy/Immunology and Pediatrics. I am here today
representing the AK chapter of the American Academy of
Pediatrics and the AK State Medical Association. I
appreciate the opportunity to provide testimony in
support of Senate Bill 45.
I have been a practicing physician for over 20 years
and a very strong advocate for tobacco prevention. I
grew up in the deep South and tobacco was a way of
life. My parents smoked and unfortunately I buried a
parent due to lung cancer. My father's wedding gift
to me was to quit smoking; unfortunately it
contributed to his death also. I raised my two girls
understanding the dangers of tobacco. Imagine my
disbelief when I walked to my high school daughter's
room and found her and her friends vaping. Here was
my child, who would never think of smoking a
cigarette, holding an e-cigarette. Unfortunately e-
cigarettes are incredibly appealing to our youth and
since 2014 are the most popular nicotine product used
by teens. We had made steady progress in reducing the
smoking rate in AK but now e-cigs is threatening that
progress. It was introduced as a safe alternative to
smoking and a tool to even quit smoking.
Unfortunately this has not turned out to be true,
evidence does not support this claim. e-cigarette use
itself can lead to lung cancer, emphysema and heart
attacks. And what it is doing to our youth is
alarming.
1:35:39 PM
Current E-cigarette use by high school students MORE
THAN DOUBLED between 2017 to 2019, from 11.7% to 27.5%
and even more alarming, current E-cigarette use by
middle school students MORE THAN TRIPLED between 2017
to 2019, from 3.3% to 10.5%. In 2017 15.7% of AK high
school students reported having used e-cigarettes.
This climbed to 26.1% in 2019, just 2 years.
We know that kids that use e-cigarettes are more
likely to use traditional cigarettes in the future and
that 95% of adult smokers today started smoking before
the age of 21. The teenage and young adult brain is
still developing and when exposed to nicotine, whether
in an e-cigarette or regular cigarette, the pathways
that lead to addiction are altered. Addiction to
nicotine is quicker and quitting is harder for
teenagers. This also leads to an increase in mood
disorders, attention difficulties and increases their
risk of addiction to other substances. Even in
adults, e-cigarette use is highest among 18-24 year
olds, the young adult.
Fortunately we have ways to reduce tobacco use.
Raising the purchase age to 21 is a very important
part of this plan. In 2015, the Institute of Medicine
(now the National Academy of Medicine) concluded that
raising the minimum legal sales age for tobacco
products nationwide would reduce tobacco initiation,
particularly among adolescents aged 15 to 17, improve
health across the lifespan, and save lives; and that
raising the minimum legal sales age for tobacco
products nationwide to 21 would, over time, lead to a
12 percent decrease in smoking prevalence, would
result in 223,000 fewer premature deaths, 50,000 fewer
deaths from lung cancer, and 4.2 million fewer years
of life lost for those born between 2000 and 2019, and
would result in near immediate reductions in preterm
birth, low birth weight, and sudden infant death
syndrome.
1:37:32 PM
Three-quarters of adults support raising the minimum
legal sales age for tobacco products to 21, including
seven out of ten adults who smoke.
In short, we have a duty to protect the future health
of our teens and young adults. Passing Senate Bill 45
is an important step to limiting adolescents' access
to these products in our state. We have an
opportunity to make a lasting impact here.
Thank you for your time today and allowing me to
speak.
CHAIR COSTELLO asked if there were questions.
1:37:58 PM
SENATOR HOLLAND asked if she had a stand on the tax portion of
the bill. He related that his constituents' concern is that they
have used e-cigarettes to stop smoking tobacco and they believe
a tax would make it more difficult to use these products.
DR. RATHKOPF replied she believes that the benefit of raising
the taxes far outweighs the risk because, despite anecdotal
evidence, the data does not show that e-cigarettes are an
effective cessation device. She suggested that these people look
at other nicotine replacement options and cessation techniques.
1:39:40 PM
At ease
1:41:20 PM
CHAIR COSTELLO reconvened the meeting and advised that the next
testifier was invited to provide testimony on SB 45.
1:41:57 PM
MICHELLE KETCHUM, representing self, Anchorage, Alaska, related
that she received a call from her daughter's school asking for
permission to call 911 because her daughter was hallucinating
and then passed out. She later learned that her daughter briefly
stopped breathing and the school nurse did chest compressions
until the paramedics arrived. The paramedics checked her vital
signs and determined that she was okay and that there was no
harm in sending her home. She said the paramedics indicated that
they see this frequently.
MS. KETCHUM related the back-story on her daughter, including
that she was experiencing post-traumatic stress disorder (PTSD).
She was admitted to the hospital in October 2020 on suicide
watch and when she was released in November, she asked her
brother for a Dab Pen, which is a way to take synthetic
marijuana. He brought one home the next night and gave it to her
the next morning before school. Ms. Ketchum said her son smoked
some and her daughter apparently took a large hit, which is what
caused her to stop breathing.
MS. KETCHUM said this was the second time her daughter used
marijuana and what led to it was nicotine. When she was released
from the hospital, she started vaping and quickly became
addicted by using Puff Bars. She explained that a regular Puff
Bar contains 400 puffs, which is equivalent to a pack of
cigarettes and a Puff Bar Plus contains 800 puffs, which is
equivalent to two packs of cigarettes. Her daughter was able to
get these readily, particularly via Snapchat. She was trying to
quit and was told that it was better to use marijuana because
there were fewer bad side effects. She continued:
This is an intelligent girl who is a straight A
student who is kind-hearted and hard working. And in a
couple of months was severely addicted to nicotine,
which is readily available.
Part of the problem with this vaping, is that these
vape things are undetectable. It was happening in my
home, with doors open. You can't smell it you can't
see it. It is very - it's indiscrete. Kids are doing
it in the bathrooms at schools. They can hide it in
their sleeves and do it in classrooms. ... And the
nicotine in those devices is so powerful and those
kids get hooked very, very quickly. And they can't
stop. It is very difficult for them to stop.
MS. KETCHUM emphasized that companies that sell vaping products
specifically market to young children to get this new generation
addicted to nicotine. She maintained that people who do not
believe that vaping is a stepping-stone are ignorant.
1:49:41 PM
SENATOR GRAY-JACKSON asked how her daughter was doing.
MS. KETCHUM replied she is not using nicotine or marijuana, but
there were consequences for her behavior. She is receiving
counseling and will be allowed to attend school online, but she
will not be able to attend the graduation ceremony with her
class. She said her kids believe that half the high school has a
problem with these substances and 70 percent of juniors and
seniors have a problem. "Even when you have kids you don't know
how prevalent this is," she said.
CHAIR COSTELLO asked her to describe why these devices are so
difficult to detect, particularly the way they are packaged.
MS. KETCHUM said a regular Puff Bar looks like a USB pen and the
Puff Bar Plus is larger, brightly colored and advertises
friendly flavors that masks the taste of nicotine. She said you
would not know what it is by looking at it and the vape leaves
no telltale sign. She added that it is particularly frustrating
that federal legislation does not address these disposable
products. She suggested the committee check with other states
that have passed legislation and noted that truthinitiative.org
is a good resource.
1:56:02 PM
SENATOR STEVENS asked if she believes that raising the price
will result in fewer kids purchasing these products.
MS. KETCHUM said she did not believe so and she did not believe
that taxation was the right approach either. If the products are
taxed, she suggested using that money to enforce existing laws
and to start programs in schools to help kids find a way to
break their addiction.
SENATOR STEVENS questioned whether raising the age would help.
MS. KETCHUM said raising the age is a better option than
taxation, but it's the manufacturers/suppliers that should be
targeted. "I'm all about people having businesses and making a
living, but we have to protect our children," she said.
CHAIR COSTELLO thanked her for the testimony.
MS. KETCHUM thanked the members for their work and reiterated
that SB 45 needs to do more to address marketing and advertising
vaping products.
2:00:26 PM
CHAIR COSTELLO opened public testimony on SB 45.
2:00:38 PM
KATHY STEWART, representing self, Anchorage, Alaska, said that
as a nurse, mother, grandmother, and former smoker she is
concerned about how e-cigarette use is affecting youth in the
state and country. These products are not an approved cessation
device and in addition to nicotine, they contain chemicals like
propylene glycol and formaldehyde that are known to be harmful
to the lungs. She said the laws to protect youth from tobacco
related health hazards helped reduce cigarette use and now it is
necessary to pass legislation to protect them from unregulated
tobacco products like e-cigarettes.
2:03:28 PM
ALEX MCDONALD, representing self, Fairbanks, Alaska, shared that
he has not smoked since 2013 and he attributes it to e-cigarette
products. He stated opposition to SB 45 because portions are
already outdated. He highlighted that Congress further limited
online cigarette sales and included vaping products so FedEx,
UPS, and DHL will not ship vaping products and he wasn't sure
that vape shops would be able to get these products. He also
advised that distribution of Puff Bars in the U.S. ceased last
fall so they won't be marketed much longer. He maintained that
many of the e-cigarette sources that youth rely on are becoming
more regulated so it will be more like shipping firearms, which
is business-to-business or license-to-license. He said these
changes will limit access, particularly in Bush communities.
MR. MCDONALD cited Public Health England that said e-cigarettes
are "95 percent safer than smoking cigarettes at a conservative
estimate," the FDA that "recognized them as a modified risk
product," and former head of the FDA Dr. Gottlieb who identified
cigarettes as the riskiest products and vape products as low
risk along with other nicotine replacement therapies.
MR. MCDONALD credited e-cigarettes as the reason that he and his
entire family quit smoking. He noted that he submitted an
article from the New England Journal of Medicine that said vapor
products are "two to three times more effective in cessation
than traditional nicotine therapy." Furthermore, Public Health
England recently released a report that described vaping as the
most commonly used method for smokers to quit smoking and had
the highest success rates. He pointed out that, "Just because
the FDA doesn't recognize it as a cessation product doesn't mean
that people aren't using it as one. I did. I know it works."
MR. MCDONALD posited that taxing these products will cause
people to resume smoking, and raising the age will needlessly
make young adults criminals. He characterized the bill as more
likely to do harm than good.
2:07:17 PM
ALYSSA KEILL, representing self, Fairbanks, Alaska, reported
that she is a part-time swim coach for about 80 middle
schoolers. When she asks them about vaping and whether they know
kids who vape, they are uncertain about why they shouldn't try
it but always say they know students who have tried or currently
vape. She suggested that there is confusion because of the
misleading message that vaping is safer than smoking, but they
do understand nicotine addiction.
She said she is interested in SB 45 because it recognizes that
vaping products are nicotine products and treats them as such.
She characterized increasing the age for purchase to 21 and
taxing e-cigarettes at the level as other tobacco products as a
step in the right direction.
2:09:17 PM
SARAH EATON, representing self, Wasilla, Alaska, reported that
she started smoking at age 15 and she bought them from the
corner store or got an adult to make the purchase. She posited
that kids today find it similarly easy to get these products,
regardless of the age barrier or the tax.
She said vaping saved her life. This is evidenced by the fact
that doctors today can no longer find either emphysema or COPD
on her lungs and she had both nine years ago when she started
vaping. "They are healed from what combustible cigarettes did to
me."
MS. EATON said she opposes just the tax portion of SB 45 because
it will make the vaping product she uses unaffordable. Wasilla
already has a 55 percent tax on vaping products and the added
tax will bring the total to 130 percent. She agreed that
children should not have access to vaping products, but she
believes it falls to parents to educate their children to keep
them from putting anything but air in their lungs. She concluded
her comments asking the committee to look more closely at what
the federal government has done to regulate vaping products.
2:14:09 PM
SHAWN D'SYLVA, Co-Founder, Clear the Air Alaska, Anchorage,
Alaska, stated that he owns three vaping stores in Alaska and
his goal is to eliminate the use of combustible cigarettes
wherever he is located. He highlighted that he has helped almost
80,000 adults stop smoking in the last eight years. He confirmed
earlier testimony that the additional 75 percent wholesale tax
will translate to a 130 percent wholesale tax in both Anchorage
and Wasilla and highlighted that it will not affect young people
who are buying these products on Snapchat, not legitimate
stores.
He advised that e-liquid is the primary component in vaping
products and it has just four ingredients: propylene glycol,
vegetable glycerin, nicotine, and flavoring. Anybody who has
smoked understands that tobacco does not taste good. They would
prefer to stop and on way to do that it to use vaping products.
He said UK Public Health annually updates a study on vaping and
last week said that vaping is twice as effective as any other
cessation method. Their goal is to eliminate combustible
cigarettes by 2030.
MR. D'SYLVA acknowledged that vaping is not perfectly safe, but
posited that it is a safer alternative that should be
encouraged. He said it is unfortunate that kids are getting
vaping products but it is the parents' responsibility to ensure
their kids are not doing that. He also disputed the claim that
vaping is a gateway to smoking, pointing out that combustible
cigarette usage in the U.S. is the lowest it has ever been. He
concluded his comments restating that he absolutely opposes the
taxation provision in SB 45.
2:18:37 PM
CHARLES EDGE, representing self, Fairbanks, Alaska stated that
he opposes portions of SB 45 and increasing the age threshold in
particular. He related that he returned to Alaska after he left
military service because some of the laws in Virginia were
draconian, and it breaks his heart to see that Alaska is
considering similar legislation. He said he understands the
desire to keep kids from using vaping products, but if somebody
is old enough to stand trial as an adult and old enough to serve
in the military, he cannot fathom not allowing them to "take
advantage of being an actual adult." He attested, from personal
experience, that vaping is a lot better than smoking or dipping.
2:21:58 PM
JAMIE MORGAN, American Heart Association (AHA), Sacramento,
California, said the data shows that Alaska has made progress in
reducing cigarette use, particularly among youth. However, the
increased use of e-cigarettes, particularly among youth, is
reversing that progress. She said the tobacco industry has long
targeted Alaska's youth and e-cigarette use is an increasing
crisis among teens. Further, the National Academies of Sciences,
Engineering, and Medicine have cited substantial evidence that
youth or young adults who use e-cigarettes are increasingly
likely to use traditional cigarettes. They are falsely marketed
as a safe alternative and youth are targeted. To address this
epidemic among teens, the AHA supports public policies like
those in SB 45 that regulate and tax e-cigarettes like tobacco
and raise the legal age to sell or purchase to 21. AHA believes
that those who sell tobacco to minors and the industry that
aggressively markets to young people and profits from their
ensuing addiction should be held accountable.
MS. MORGAN said the data shows that increasing the tax on
tobacco products and e-cigarettes is a win-win. Significantly
increasing the tax results in fewer kids who start to smoke and
more adults who quit. She offered to provide more information on
the British study.
CHAIR COSTELLO asked her to send the testimony to her office.
2:24:36 PM
RYAN TUNSETH, representing self, Kenai, Alaska, said he opposes
SB 45 because federal law already addresses many of the online
sales and implementing the bill will just make people criminals
when they have an addiction. He agreed with Mr. McDonald's
comments more than the comments from the American Heart
Association and said he would prefer to see the committee work
on things that are more important.
2:26:31 PM
JOHN BERRIER, Senior Director of State Government Affairs, JUUL
Labs, Sacramento, California, stated that JUUL Labs is focused
on building constructive relationships with regulators, policy
makers, and other stakeholders to earn trust and reduce the
potential harm for adult smokers. JUUL looks forward to working
with stakeholders in Alaska to achieve full implementation of
Tobacco 21, he said.
2:27:24 PM
MR. BERRIER highlighted that underage use of e-cigarettes in the
U.S. is trending down. The 2020 National Youth Tobacco Survey
found that past 30-day e-cigarette use among high school
students decreased almost 30 percent from 2019. He also reported
that the Monitoring the Future 2020 Survey Results found that
the previous rise in underage e-cigarette use either slowed or
reversed. He said JUUL fully supports the age provision in SB
45.
In addition to the commitment to combat underage use through
evidence-based intervention like T 21, he said JUUL also
supports robust regulations weighted in favor of harm reduction.
Thus, the company is concerned that the tax provision of SB 45
because adult smokers may continue smoking or former smokers may
return to combustible cigarettes. He pointed to a study in the
Journal of Risk and Uncertainty that estimated that the 95
percent wholesale tax on vape products in Minnesota deterred
32,000 adult smokers in the state from transitioning away from
cigarettes. He suggested that Alaska could see similar results.
Furthermore, some adult consumers may seek out cheaper products
through illicit markets that predominantly occur outside of tax
regulation. This could cause responsible retailers in Alaska to
lose business and reduce expected revenue to the state, he said.
MR. BERRIER summarized that the company supports T 21 as an
effective policy to combat underage use of tobacco/vapor
products, but does not support the tax provision and
respectfully requests its removal. He offered to engage with the
committee and other stakeholders to develop a thoughtful risk-
proportionate tax framework for all tobacco and nicotine
products.
CHAIR COSTELLO asked for JUUL's national marketing budget and
questioned why the company designs its products to look like
things typically used in the classroom.
MR. BERRIER answered that the company stopped all marketing and
advertising in fall 2019 as part of their PMTA submission and
intends to submit a plan to the FDA that targets adult consumers
of cigarettes.
In response to the second question, he maintained that the
products were designed to be most effective for adult smokers to
transition off the products.
CHAIR COSTELLO asked what the acronym "PMTA" stands for.
MR. BERRIER replied it stands for the premarket tobacco
application. The FDA required all companies that make vapor and
other nicotine products to submit their applications for review
by November 2020. The agency will determine, by September 2021,
whether the products can remain on the market.
2:34:21 PM
CARRIE NYSSEN, Senior Director of Advocacy, American Lung
Association, stated that the ALA strongly supports taxing
electronic cigarettes and other tobacco products. Increasing
prices is a tool that works to decrease use, encourage consumers
to quit, and delay youth from using the products. She emphasized
heating toxic chemicals for inhalation is not safe or healthy.
Further, the flavorings added to entice youth and make the taste
more palatable can cause inflammation in the lungs. She said
some of the flavorings have been approved as food additives, but
they are not designed for inhalation.
In response to earlier testimony about a study from England that
allegedly shows these products are safer than cigarettes, she
said the weekly peer reviewed medical journal, "The Lancet,"
rebutted the claim in an editorial. It also pointed out that
some on the panel of experts appeared to have ties to the e-
cigarette industry. She noted that the European Respiratory
Society offered an alternative to the England study, pushing
back against the 95 percent less harmful claim.
M. NYSSEN emphasized that e-cigarette use sustains the addiction
to nicotine and that the manufacturers have taken no steps to
have them tested and approved as cessation devices.
CHAIR COSTELLO asked her to send "The Lancet" editorial she
referenced; she would distribute it and the other articles
referenced today to the members.
2:37:07 PM
GREGORY CONLEY, President, American Vaping Association (AVA),
Medford, New Jersey, stated that AVA strongly opposes the tax
portion of SB 45, but he was not defending the Snapchat drug
dealers selling to youth or the Snapchat vape sales of
unauthorized products. He said law enforcement needs to stop
those sales and companies like Puff Bar are already in violation
of the law. Any store in Alaska selling those is subject to FDA
enforcement.
MR. CONLEY referenced earlier testimony and stressed that the
only irreversible lung damage and/or death from vaping came when
a drug dealer sold contaminated illicit THC cartridges. He
pointed out that taxing these products would not stop that kind
of activity. Rather, it will only discourage adult smokers from
quitting. He made the final point that Alaska retailers are
permitted to ship to Alaska consumers via USPS.
2:39:55 PM
JAY OKU, Government Relations Director, Five Pawns, Orange
County, California, stated that this nonprofit helps adults
transition from smoking with maturely branded, meticulously
manufactured harm-reduction products. He voiced support for T 21
and advocated for tobacco harm-reduction technology. He
acknowledged that it is preferable if nobody smokes or vapes,
but pointed out that the peer-reviewed science illustrates that
e-cigarettes are a magnitude less harmful than smoking. He said
it is Five Pawns' goal to help offset the leading cause of
preventable deaths with this technology.
MR. OKU disputed the statements that the FDA has said nothing
about safely utilizing vaping as a tool. He cited Dr. Scott Lee
and Mitch Zeller [former director of the FDA Center for Tobacco
Products]. They talked about utilizing vaping as a tool to
switch from cigarettes and that it would be good for public
health if every smoker switched from cigarettes to a non-
combustible product like e-cigarettes.
He said that despite the rhetoric from proponents of this bill,
480,000 people die each year from smoking related disease.
Studies screened from international academic literature between
2018 and 2020 indicate that vaping is mainly concentrated in
young people who have experience smoking and less than one
percent of those young people who have never smoked are current
vapors. Furthermore, 10 years after e-cigarettes emerged,
smoking rates among 18-24 year olds declined 47 percent. He
maintained that the increasingly incorrect perception about the
harms of vaping could prevent some adult smokers from using
vaping products to quit smoking.
MR. OKU cited Alaska data to make the point that specialty vape
shops are not the problem. From January 2018 to September 2019,
he said the FDA administered 464 tobacco age-compliance
inspections in Alaska and just one percent involved the sale of
cigarettes or vaping devices. He said the culprit is the black
market and youth and parents need to be educated.
MR. OKU reported that Alaska received $83.2 million in tobacco
taxes and tobacco settlement payments in 2019, but the state
spent just 10 percent of that to fund tobacco control programs,
including education and prevention. He said tobacco sales in
Alaska generated $40 million in 2018 and he believes that excess
taxation will kill Alaskan businesses and grow a black market.
MR. OKU thanked the committee for taking time to hear the facts
and not rushing to judgment and committed to email the studies
he referenced.
2:44:34 PM
LINDSEY STRAUD, Policy Analysist, Tax Payers Alliance,
Washington, D.C., stated that vapor products are tobacco harm-
reduction tools that have helped millions of adults quit
smoking, so they should not be subject to sin taxes.
She conveyed that in 2019, 45.8 percent of high school students
reported having tried e-cigarettes; 26.1 percent reported use in
the past 30 days; and 4.5 percent reported daily use of vapor
products. She highlighted the all-time low use of combustible
cigarettes by youth in 2019. Just 27.5 percent of Alaska high
school students reported ever trying cigarettes, which is a 62
percent reduction from 1995. Reported use in the past 30 days
reduced from 36.5 percent in 1995 to 8.4 percent in 2019.
MS. STRAUD referenced earlier testimony and explained that
predominant e-cigarette use by 18-24 year olds correlates with a
major decrease in use in that age bracket.
Noting that she submitted written testimony that included
analyses from other states, she posited that vapor taxes have
not deterred youth from using e-cigarettes.
MS. STRAUD said Alaska is ranked second in funding tobacco
control programs. Over a 20-year period, Alaska allocated just
$143.9 million towards tobacco control programs yet it received
over $1 billion in cigarette taxes and $567.8 million in tobacco
tax settlement payments over that same time. For further
perspective, she said that Alaska spent about $94 per smoker on
tobacco control programs in 2019. She suggested that rather than
imposing sin taxes, Alaska should allocate additional existing
tobacco money to youth prevention and education programs.
2:47:39 PM
ALEX CLARK, CEO, Consumer Advocates for Smoke-free Alternatives
Association (CASAA), Plattsburgh, New York, stated that this
501(c)(4) nonprofit consumer advocacy organization is dedicated
to promoting tobacco harm reduction as a necessary strategy to
reduce early death and disease from smoking. He was speaking on
behalf of more than 600 Alaskan members who are concerned about
the ability to continue to access safer nicotine products.
He said CASAA opposes the taxing provision in SB 45 and raising
the age to purchase to 21, particularly criminalizing possession
and use. He described it as adding insult to injury for young
people caught using these products, particularly when 18-20 year
olds are considered adults in many other situations.
MR. CLARK suggested it was time to reset the narrative on who
makes up the industry and its consumers. He related that he did
not have success trying to quit smoking until he stopped
listening to public health authorities and started listening to
his dad who successfully switched from smoking to using nicotine
gum. He maintained that it is not as difficult to quit smoking
as it is made out to be and that there are plenty of resources
to help. It is a matter of having all the options on the table,
he said.
MR. CLARK summarized that CASAA is opposed to SB 45. It is
inaccurate to treat vaping products as tobacco products, to tax
them as such, or to say they carry the same risk. He said people
trying to quit smoking made these products and consumers added
flavors. He maintained that vaping products democratized
nicotine because consumers are no longer reliant on incumbent
cigarette companies or pharmaceutical companies to access the
safer form of nicotine. He suggested the legislature instead
focus on beefing up education programs that present facts, not
propaganda.
2:53:03 PM
CHAIR COSTELLO closed public testimony on SB 45.
SENATOR STEVENS said it is clear that the state gets a lot of
money from tobacco cessation and it should spend more money on
education.
CHAIR COSTELLO asked Ms. Steffens to comment on previous
testimony on the imbalance between the money the state receives
from tobacco taxes and spends on education/cessation programs.
2:54:01 PM
KATIE STEFFENS, Public Health Specialist, Division of Public
Health, Department of Health and Social Services (DHSS),
Anchorage, Alaska, advised that the state spends $550,000 on the
Alaska Tobacco Quit Line, which provides free counseling and
nicotine replacement therapy in the form of gum and lozenges.
CHAIR COSTELLO asked what the state receives from the tobacco
tax.
MS. STEFFENS replied the state received $8 million last fiscal
year.
2:55:21 PM
SENATOR STEVENS asked, other than vaping, what cessation
therapies and programs are available in Alaska.
MS. STEFFENS reminded the committee that e-cigarettes are not a
recognized cessation device in this country. She continued to
say that along with the Alaska Tobacco Quit Line, the department
funds 23 community grantees to conduct education through the
state. They talk with schools and other partners in the area to
spread information about e-products and tobacco products in
general.
CHAIR COSTELLO asked if information about the grant is available
online so the members could see where the funds are going.
MS. STEFFENS answered yes and she would send the annual fiscal
report as well. In response to a further question, she said the
quit line number is 1-800-quit-now.
CHAIR COSTELLO asked Mr. Darnell to describe his efforts
regarding underage sales of tobacco and vaping products.
2:57:22 PM
JOE DARNELL, Investigator, Tobacco Section, Division of
Behavioral Health, Department of Health and Social Services
(DHSS), Anchorage, Alaska, explained that student interns work
in the program to check vaping and tobacco retailers to ensure
they are complying with the underage laws. They also do premise
inspections to see that retailers are following licensing laws
and offer certification programs to help retailers establish
policies to prevent underage sales.
SENATOR GRAY-JACKSON asked if there are criteria to qualify for
free counseling.
MS. STEFFENS replied a person must be 18 years of age or older
to use the quit line, but the department recently added a
service to help parents be quit champions for youth under age 18
and to educate parents on the harmful effects of e-cigarettes
and how to help their kids quit.
CHAIR COSTELLO asked if a particular statute or legal
prohibition requires that help for a nicotine addiction can only
be given to people 18 years of age or older.
MS. STEFFENS replied is an informed consent state so the Alaska
Quit Line can only offer help to those 18 and older.
CHAIR COSTELLO how many parents use the service for their
children.
MS. STEFFENS offered to follow up with the information.
3:00:52 PM
SENATOR STEVENS asked if there is something that should be done
but isn't to help kids who are addicted.
MS. STEFFENS replied that taxing tobacco products is the most
effective way for youth and young adults to stop or even begin
using these products. Price increases also helps people of lower
socioeconomic status to stop using these products. Further,
raising the age to 21 would meet federal regulations and provide
clarity on enforcement.
CHAIR COSTELLO asked for the penalty for an underage person who
sells or possesses tobacco products.
MS. STEFFENS deferred the question to Mr. Darnell.
3:02:13 PM
MR. DARNELL said the penalty ranges from $300 to $500 for a
clerk who sells to somebody who is underage.
CHAIR COSTELLO asked for the penalty for possession by somebody
who is underage.
MR. DARNELL answered the statute provides a $500 penalty.
CHAIR COSTELLO asked if he had data on the number of youth found
guilty of possession who pay the $500 fine.
MR. DARNELL offered to follow up with the information.
CHAIR COSTELLO also asked him to provide the number of clerks
who are found guilty and pay the fine for selling to somebody
who is underage.
CHAIR COSTELLO held SB 45 in committee for future consideration.
3:04:18 PM
There being no further business to come before the committee,
Chair Costello adjourned the Senate Labor and Commerce Standing
Committee meeting at 3:04 p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 45 Opposition Charles Edge.pdf |
SL&C 3/1/2021 1:30:00 PM |
SB 45 |
| SB 45 Opposition American Vaping Association.pdf |
SL&C 3/1/2021 1:30:00 PM |
SB 45 |
| SB 45 Opposition Mike Coons.pdf |
SL&C 3/1/2021 1:30:00 PM |
SB 45 |
| SB 45 Opposition Greg McDonald.pdf |
SL&C 3/1/2021 1:30:00 PM |
SB 45 |
| SB 45 Testimony Taxpayers Protection Alliance 1.pdf |
SL&C 3/1/2021 1:30:00 PM |
SB 45 |
| SB 45 Testimony Taxpayers Protection Alliance 2.pdf |
SL&C 3/1/2021 1:30:00 PM |
SB 45 |