00                             HOUSE BILL NO. 110                                                                          
01 "An Act raising the minimum age to purchase, sell, exchange, or possess tobacco, a                                      
02 product containing nicotine, or an electronic smoking product; relating to transporting                                 
03 tobacco, a product containing nicotine, or an electronic smoking product; relating to the                               
04 taxation of electronic smoking products; and providing for an effective date."                                          
05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
06    * Section 1. AS 11.76.100(a) is amended to read:                                                                   
07            (a)  A person commits the offense of selling or giving tobacco to a person                               
08       under 21 years of age [MINOR] if the person                                                                   
09                 (1)  negligently sells a cigarette, a cigar, tobacco, or a product                                      
10       containing tobacco to a person under 21 [19] years of age;                                                    
11                 (2)  is 21 [19] years of age or older and negligently exchanges or gives                            
12       a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19]                      
13       years of age;                                                                                                     
14                 (3)  maintains a vending machine that dispenses cigarettes, cigars,                                     
01       tobacco, or products containing tobacco; or                                                                       
02                 (4)  holds a business license endorsement under AS 43.70.075 and                                        
03       allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a                        
04       product containing tobacco.                                                                                       
05    * Sec. 2. AS 11.76.100(b) is amended to read:                                                                      
06            (b)  Notwithstanding the provisions of (a) of this section, a person who                                     
07       maintains a vending machine is not in violation of (a)(3) of this section if the vending                          
08       machine is located                                                                                                
09                 (1)  on premises licensed as a beverage dispensary under AS 04.11.090,                                  
10 licensed as a club under AS 04.11.110, or licensed as a package store under                                             
11       AS 04.11.150; and                                                                                                 
12                      (A)  as far as practicable from the primary entrance; and                                          
13 (B)  in a place that is directly and continually supervised by a                                                        
14 person employed on the licensed premises during the hours the vending                                                   
15            machine is accessible to the public; or                                                                      
16 (2)  in an employee break room or other controlled area of a private                                                    
17 work place that is not generally considered a public place and the room or area                                         
18 contains a posted warning sign at least 11 inches by 14 inches indicating that                                          
19 possession of tobacco by a person under 21 [19] years of age is prohibited under                                    
20       AS 11.76.105.                                                                                                     
21    * Sec. 3. AS 11.76.105 is amended to read:                                                                         
22 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or                                                
23 products containing nicotine by a person under 21 years of age [MINOR]. (a) A                                       
24 person under 21 [19] years of age may not knowingly possess a cigarette, a cigar,                                   
25 tobacco, a product containing tobacco, an electronic smoking product, or a product                                      
26 containing nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A                                                 
27       PERSON WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.]                                                      
28 (b)  In a prosecution under (a) of this section for possession of an electronic                                         
29 smoking product or a product containing nicotine, it is an affirmative defense that the                                 
30 electronic smoking product or product containing nicotine possessed by the person                                       
31 under 21 [19] years of age was intended or expected to be consumed without being                                    
01       combusted, and the electronic smoking product or product containing nicotine                                      
02                 (1)  has been approved by the United States Food and Drug                                               
03       Administration for sale as a tobacco use cessation or harm reduction product or for                               
04       other medical purposes;                                                                                           
05                 (2)  was being marketed and sold for the approved purposes; and                                         
06                 (3)  was                                                                                                
07                      (A)  prescribed by a health care professional;                                                     
08                      (B)  given to the person by the person's parent or guardian;                                       
09                      (C)  provided by a state-approved tobacco cessation program                                        
10            administered by the Department of Health and Social Services; or                                             
11 (D)  provided by a pharmacist to a person 18 years of age or                                                            
12            older without a prescription.                                                                                
13 (c)  Possession of tobacco, an electronic smoking product, or a product                                                 
14       containing nicotine by a person under 21 years of age [MINOR] is a violation.                                 
15    * Sec. 4. AS 11.76.106(a) is amended to read:                                                                      
16 (a)  Except as provided under (b) of this section, a person may not sell                                                
17 cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products,                                  
18       or products containing nicotine                                                                                   
19 (1)  unless the sale occurs in a manner that allows only the sales clerk                                            
20 to control access to the cigarettes, cigars, tobacco, products containing tobacco,                                      
21       electronic smoking products, or products containing nicotine;                                                 
22 (2)  over the Internet to an individual for the individual's personal                                               
23       consumption.                                                                                                  
24    * Sec. 5. AS 11.76.106(b) is amended to read:                                                                      
25 (b)  Paragraph (a)(1) of this section [SUBSECTION (a)] does not apply if                                            
26       the sale                                                                                                          
27 (1)  is by vending machine as provided under AS 11.76.100(b) or                                                         
28       11.76.109(d);                                                                                                     
29 (2)  is a wholesale transaction, the person is licensed as a manufacturer                                               
30 or distributor under AS 43.50.010, and the sale occurs on premises where no retail                                      
31       transactions occur;                                                                                               
01 (3)  is by a retailer who sells primarily cigarettes, cigars, tobacco,                                                  
02 products containing tobacco, electronic smoking products, or products containing                                        
03 nicotine and who restricts access to the premises to only those individuals who are 21                              
04       [19] years of age or older; or                                                                                    
05                 (4)  is of electronic smoking products over the Internet to a person 19                                 
06       years of age or older.                                                                                            
07    * Sec. 6. AS 11.76.109(a) is amended to read:                                                                      
08            (a)  A person commits the offense of selling or giving an electronic smoking                                 
09       product or a product containing nicotine to a person under 21 years of age [MINOR]                            
10       if the person                                                                                                     
11 (1)  negligently sells an electronic smoking product or a product                                                       
12       containing nicotine to a person under 21 [19] years of age;                                                   
13 (2)  is 21 [19] years of age or older and negligently exchanges or gives                                            
14 an electronic smoking product or a product containing nicotine to a person under 21                                 
15       [19] years of age;                                                                                                
16 (3)  maintains a vending machine that dispenses electronic smoking                                                      
17       products or products containing nicotine; or                                                                      
18 (4)  holds a business license endorsement under AS 43.70.075 and                                                        
19 allows a person under 21 [19] years of age to sell an electronic smoking product or a                               
20       product containing nicotine.                                                                                      
21    * Sec. 7. AS 11.76.109(b) is amended to read:                                                                      
22 (b)  The provisions of (a) of this section do not apply to the sale, exchange, or                                       
23 gift to a person under 21 [19] years of age of an electronic smoking product or a                                   
24 product containing nicotine that is intended or expected to be consumed without being                                   
25       combusted if the electronic smoking product or product containing nicotine                                        
26 (1)  has been approved by the United States Food and Drug                                                               
27 Administration for sale as a tobacco use cessation or harm reduction product or for                                     
28       other medical purposes;                                                                                           
29                 (2)  is being marketed and sold solely for the approved purposes; and                                   
30                 (3)  is                                                                                                 
31                      (A)  prescribed by a health care professional;                                                     
01                      (B)  given to a person by the person's parent or legal guardian;                                   
02                      (C)  provided by a state-approved tobacco cessation program                                        
03            administered by the Department of Health and Social Services; or                                             
04                      (D)  provided by a pharmacist to a person 18 years of age or                                       
05            older without a prescription.                                                                                
06    * Sec. 8. AS 11.76.109(d) is amended to read:                                                                      
07            (d)  Notwithstanding (a)(3) of this section, a person who maintains a vending                                
08       machine is not in violation of (a)(3) of this section if the vending machine is located                           
09                 (1)  on premises licensed as a beverage dispensary under AS 04.11.090,                                  
10 licensed as a club under AS 04.11.110, or licensed as a package store under                                             
11       AS 04.11.150, and is located                                                                                      
12                      (A)  as far as practicable from the primary entrance; and                                          
13 (B)  in a place that is directly and continually supervised by a                                                        
14 person employed on the licensed premises during the hours the vending                                                   
15            machine is accessible to the public; or                                                                      
16 (2)  in an employee break room or other controlled area of a private                                                    
17 work place that is not generally considered a public place and the room or area                                         
18 contains a posted warning sign at least 11 inches by 8.5 inches indicating that                                         
19 possession of electronic smoking products or products containing nicotine by a person                                   
20       under 21 [19] years of age without a prescription is prohibited under AS 11.76.109.                           
21    * Sec. 9. AS 11.76.109(g) is amended to read:                                                                      
22 (g)  Selling or giving an electronic smoking product or a product containing                                            
23 nicotine to a person under 21 years of age [MINOR] is a violation and, upon                                         
24       conviction, is punishable by a fine of not less than $300.                                                        
25    * Sec. 10. AS 43.50.105(b) is amended to read:                                                                     
26 (b)  A person who is licensed under this chapter may not ship or cause to be                                            
27       shipped cigarettes to a person in this state unless the person receiving the cigarettes                           
28                 (1)  is licensed under this chapter;                                                                    
29                 (2)  holds a business license endorsement under AS 43.70.075;                                           
30 (3)  is an operator of a customs bonded warehouse under 19 U.S.C.                                                       
31       1311 or 19 U.S.C. 1555;                                                                                           
01                 (4)  is an instrumentality of the federal government or an Indian tribal                                
02       organization authorized by law to possess cigarettes not taxed under this chapter; or                             
03 (5)  is an individual 21 [19] years of age or older and the individual's                                        
04 age was verified at the time of purchase by a third-party verification service, the                                 
05 individual is receiving the cigarettes for personal consumption, and the tax imposed                            
06       on the cigarettes under this chapter has been paid.                                                               
07    * Sec. 11. AS 43.50.105(c) is amended to read:                                                                     
08            (c)  A common or contract carrier may not knowingly transport cigarettes to a                                
09       person in this state unless the person                                                                            
10 (1)  shipping the cigarettes is licensed under this chapter and, before                                                 
11 shipment, provides the common or contract carrier with a copy of the person's current                                   
12       license issued by the department and                                                                              
13 (A)  an affidavit from the intended recipient certifying that the                                                   
14 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) -                                  
15            (5)] of this section; or                                                                                     
16 (B)  the common or contract carrier verifies the age of the                                                         
17            recipient as 21 years of age or older before delivery; or                                                
18 (2)  receiving the cigarettes is a person described under (a)(2) or (3) of                                              
19 this section or is licensed under this chapter and, before receipt, provides the common                                 
20 or contract carrier with a copy of the person's current license issued by the department.                               
21    * Sec. 12. AS 43.50.150(c) is amended to read:                                                                     
22 (c)  The department may enter into an agreement with a municipality that                                                
23 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking                                 
24 products for the purpose of jointly auditing a person liable for a tax under                                        
25 AS 43.50.010 - 43.50.390 and the municipal tax on cigarettes, [OR OTHER] tobacco                                    
26 products, or electronic smoking products. In this subsection, "electronic smoking                                   
27       product" has the meaning given in AS 43.50.390.                                                               
28    * Sec. 13. AS 43.50.300 is amended to read:                                                                        
29 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products                                        
30 and electronic smoking products in the state at the rate of 75 percent of the                                       
31       wholesale price of the [TOBACCO] products. The tax is levied when a person                                        
01                 (1)  brings, or causes to be brought, a tobacco product or electronic                               
02       smoking product into the state from outside the state for sale;                                               
03                 (2)  makes, manufactures, or fabricates a tobacco product or electronic                             
04       smoking product in the state for sale in the state; or                                                        
05                 (3)  ships or transports a tobacco product or electronic smoking                                    
06       product to a retailer in the state for sale by the retailer.                                                  
07    * Sec. 14. AS 43.50.310(b) is amended to read:                                                                     
08            (b)  The tax does not apply to a                                                                             
09                 (1)  tobacco product if the United States Constitution or other federal                             
10       laws prohibit the levying of the tax on the product by the state; or                                          
11                 (2)  an electronic smoking product                                                                  
12 (A)  that is subject to taxation under AS 43.61.010 -                                                               
13            43.61.030 and that does not contain nicotine;                                                            
14 (B)  approved for sale by the United States Food and Drug                                                           
15 Administration as a drug, drug product, including a drug product used to                                            
16 treat tobacco dependence, or combination product under 21 U.S.C. 301 -                                              
17            392 (Federal Food, Drug, and Cosmetic Act);                                                              
18 (C)  if the United States Constitution or other federal laws                                                        
19            prohibit the levying of the tax on the product by the state.                                             
20    * Sec. 15. AS 43.50.320(a) is amended to read:                                                                     
21 (a)  Except as provided in (g) of this section, a person must be licensed by the                                        
22 department if the person engages in business as a distributor for a tobacco product or                              
23       electronic smoking product that is subject to the tax.                                                        
24    * Sec. 16. AS 43.50 is amended by adding a new section to read:                                                    
25 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products                                             
26 and electronic smoking products. (a) A person who is not licensed under this chapter                                  
27 may not ship or cause to be shipped a tobacco product or electronic smoking product                                     
28 to a person in this state unless the person receiving the tobacco product or electronic                                 
29       smoking product is                                                                                              
30                 (1)  licensed under this chapter;                                                                       
31 (2)  an operator of a customs bonded warehouse under 19 U.S.C. 1311                                                     
01       or 19 U.S.C. 1555; or                                                                                             
02                 (3)  an instrumentality of the federal government or an Indian tribal                                   
03       organization authorized by law to possess tobacco products or electronic smoking                                  
04       products not taxed under this chapter.                                                                            
05            (b)  A person who is licensed under this chapter may not ship or cause to be                                 
06       shipped a tobacco product or electronic smoking product to a person in this state                                 
07       unless the person receiving the tobacco product or electronic smoking product                                     
08                 (1)  is licensed under this chapter;                                                                    
09                 (2)  holds a business license endorsement under AS 43.70.075;                                           
10 (3)  is an operator of a customs bonded warehouse under 19 U.S.C.                                                       
11       1311 or 19 U.S.C. 1555;                                                                                           
12 (4)  is an instrumentality of the federal government or an Indian tribal                                                
13 organization authorized by law to possess tobacco products or electronic smoking                                        
14       products not taxed under this chapter; or                                                                         
15 (5)  is an individual 21 years of age or older and the individual's age                                                 
16 was verified at the time of purchase though a third-party verification service, the                                     
17 individual is receiving the tobacco product or electronic smoking product for personal                                  
18 consumption, and the tax imposed on the tobacco product or electronic smoking                                           
19       product under this chapter has been paid.                                                                         
20 (c)  A common or contract carrier may not knowingly transport a tobacco                                                 
21       product or electronic smoking product to a person in this state unless the person                                 
22 (1)  shipping the tobacco product or electronic smoking product is                                                      
23 licensed under this chapter and, before shipment, provides the common or contract                                       
24       carrier with a copy of the person's current license issued by the department and                                  
25 (A)  an affidavit from the intended recipient certifying that the                                                       
26 person receiving the tobacco product or electronic smoking product is a person                                          
27            described under (b)(1) - (4) of this section; or                                                             
28 (B)  the common or contract carrier verifies the age of the                                                             
29            recipient as 21 years of age or older before delivery; or                                                    
30 (2)  receiving the tobacco product or electronic smoking product is a                                                   
31 person described under (a)(2) or (3) of this section or is licensed under this chapter                                  
01 and, before receipt, provides the common or contract carrier with a copy of the                                         
02       person's current license issued by the department.                                                                
03 (d)  If a tobacco product or electronic smoking product is transported by a                                             
04 common or contract carrier to a home or residence, it is rebuttably presumed that the                                   
05 common or contract carrier knew that the recipient of the tobacco product or electronic                                 
06 smoking product was not a person described under (b)(1) - (5) of this section, unless                                   
07 the person shipping the tobacco product or electronic smoking product has satisfied                                     
08       the requirements in (c)(1) of this section.                                                                       
09 (e)  A person, other than a common or contract carrier, may not knowingly                                               
10 transport a tobacco product or electronic smoking product to a person in this state,                                    
11 unless the recipient of the tobacco product or electronic smoking product is a person                                   
12       described under (b)(1) - (5) of this section.                                                                     
13 (f)  A person who ships or causes to be shipped a tobacco product or electronic                                         
14 smoking product to a person in this state shall plainly and visibly mark the container                                  
15 or wrapping with the words "tobacco product" or "electronic smoking product" or                                         
16 both, as applicable, if the tobacco product or electronic smoking product is shipped in                                 
17 a container or wrapping other than the manufacturer's original container or wrapping                                    
18       of the tobacco product or electronic smoking product.                                                             
19 (g)  A person who violates the provisions of this section is guilty of a class A                                        
20 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a                                       
21       tobacco product or electronic smoking product.                                                                    
22 (h)  In addition to the criminal penalty under (g) of this section, the department                                      
23       may assess a civil penalty of not more than $5,000 for each violation of this section.                            
24 (i)  A person who violates the provisions of this section is jointly and severally                                      
25 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent                                       
26 permitted by the Constitution of the United States, a person who violates the                                           
27 provisions of this section is required to collect the taxes and pay them to the                                         
28       department.                                                                                                       
29    * Sec. 17. AS 43.50.330(a) is amended to read:                                                                     
30 (a)  On or before the last day of each calendar month, a licensee shall file a                                          
31 return with the department. The return must state the number or amount of tobacco                                       
01 products and electronic smoking products sold by the licensee during the preceding                                  
02 calendar month, the selling price of the tobacco products and electronic smoking                                    
03 products, and the amount of tax imposed on the tobacco products and electronic                                  
04       smoking products.                                                                                             
05    * Sec. 18. AS 43.50.335 is amended to read:                                                                        
06 Sec. 43.50.335. Tax credits and refunds. The department shall adopt                                                   
07 procedures for a refund or credit to a licensee of the tax paid for tobacco products or                             
08 electronic smoking products that have become unfit for sale, are destroyed, or are                                  
09 returned to the manufacturer for credit or replacement if the licensee provides proof                                   
10 acceptable to the department that the tobacco products or electronic smoking                                        
11       products have not been and will not be consumed in this state.                                                
12    * Sec. 19. AS 43.50.340 is amended to read:                                                                        
13 Sec. 43.50.340. Records. A licensee shall keep a complete and accurate record                                         
14 of all tobacco products and electronic smoking products of the licensee subject to                                  
15 the tax, including purchase prices, sales prices, the names and addresses of the sellers                                
16 and the purchasers, the dates of delivery, the quantities of tobacco products and                                   
17 electronic smoking products, and the trade names and brands. Statements and                                         
18 records required by this section must be in the form prescribed by the department,                                      
19 preserved for three years, and available for inspection upon demand by the                                              
20       department.                                                                                                       
21    * Sec. 20. AS 43.50.390(1) is amended to read:                                                                     
22                 (1)  "distributor" means a person who                                                                   
23 (A)  brings, or causes to be brought, a tobacco product or                                                          
24            electronic smoking product into the state from outside the state for sale;                               
25 (B)  makes, manufactures, or fabricates a tobacco product or                                                        
26            electronic smoking product in the state for sale in the state; or                                        
27 (C)  ships or transports a tobacco product or electronic                                                            
28            smoking product to a retailer in the state for sale by the retailer;                                     
29    * Sec. 21. AS 43.50.390(5) is amended to read:                                                                     
30                 (5)  "wholesale price" means                                                                            
31 (A)  the established price for which a manufacturer sells a                                                             
01 tobacco product or electronic smoking product to a distributor after                                                
02 deduction of a discount or other reduction received by the distributor for                                              
03 quantity or cash if the manufacturer's established price is adequately supported                                        
04            by bona fide arm's length sales as determined by the department; or                                          
05 (B)  the price, as determined by the department, for which                                                              
06 tobacco products or electronic smoking products of comparable retail price                                          
07 are sold to distributors in the ordinary course of trade if the manufacturer's                                          
08            established price does not meet the standards of (A) of this paragraph.                                      
09    * Sec. 22. AS 43.50.390 is amended by adding a new paragraph to read:                                              
10                 (6)  "electronic smoking product" means a                                                               
11 (A)  component, solution, vapor product, or other related                                                               
12 product that is manufactured and sold for use in an electronic cigarette,                                               
13 electronic cigar, electronic cigarillo, electronic pipe, or other similar device for                                    
14            the purpose of delivering nicotine or other substances to the person inhaling;                               
15 (B)  product under (A) of this paragraph that is sold as part of a                                                      
16 disposable integrated unit containing a power source and delivery system or as                                          
17            a kit containing a refillable electronic smoking system and power source.                                    
18    * Sec. 23. AS 43.70.075(f) is amended to read:                                                                     
19 (f)  A person who holds a license endorsement issued under this section shall                                           
20 post on the licensed premises a warning sign as described in this subsection. A                                         
21 warning sign required by this subsection must be at least 8.5 inches by 11 inches and                                   
22 must read: "The sale of electronic smoking products or products containing nicotine                                     
23 without a prescription or tobacco products to persons under age 21 [19] is illegal." A                              
24 person holding an endorsement issued under this section shall display the warning sign                                  
25 in a manner conspicuous to a person purchasing or consuming tobacco products,                                           
26 electronic smoking products, or products containing nicotine on the licensed premises.                                  
27 The department shall make available the warning signs required under this section to a                                  
28 person who holds an endorsement issued under this section or a person who requests                                      
29       the sign with the intention of displaying it.                                                                     
30    * Sec. 24. AS 43.70.075(m) is amended to read:                                                                     
31 (m)  The department may initiate suspension of a business license endorsement                                           
01 or the right to obtain a business license endorsement under this section by sending the                                 
02 person subject to the suspension a notice by certified mail, return receipt requested, or                               
03 by delivering the notice to the person. The notice must contain information that                                        
04 informs the person of the grounds for suspension, the length of any suspension sought,                                  
05 and the person's right to administrative review. A suspension begins 30 days after                                      
06 receipt of notice described in this subsection unless the person delivers a timely                                      
07 written request for a hearing to the department in the manner provided by regulations                                   
08 of the department. If a hearing is requested under this subsection, an administrative                                   
09 law judge of the office of administrative hearings (AS 44.64.010) shall determine the                                   
10 issues by using the preponderance of the evidence test and shall, to the extent they do                                 
11 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the                                    
12 manner provided by regulations of the department. A hearing under this subsection is                                    
13       limited to the following questions:                                                                               
14 (1)  was the person holding the business license endorsement, or an                                                     
15 agent or employee of the person while acting within the scope of the agency or                                          
16 employment of the person, convicted by plea or judicial finding of violating                                            
17       AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109;                                                                 
18 (2)  if the department does not allege a conviction of AS 11.76.100,                                                    
19 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the                                      
20 person while acting within the scope of the agency or employment of the person,                                         
21       violate a provision of (a) or (g) of this section;                                                                
22 (3)  within the 24 months before the date of the department's notice                                                    
23 under this subsection, was the person, or an agent or employee of the person while                                      
24 acting within the scope of the agency or employment of the person, convicted of                                         
25 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for                                           
26       violating a provision of (a) or (g) of this section;                                                              
27 (4)  did the person holding the business license endorsement establish                                                  
28 that the person holding the business license endorsement had adopted and enforced an                                    
29 education, a compliance, and a disciplinary program for agents and employees of the                                     
30       person as provided in (t) of this section;                                                                        
31 (5)  did the person holding the business license endorsement overcome                                                   
01       the rebuttable presumption established in (w) of this section;                                                    
02                 (6)  within five years before the date of the violation that is the subject                             
03       of the hearing, did the department establish that the person holding the business                                 
04       license endorsement                                                                                               
05                      (A)  previously violated (a) or (g) of this section;                                               
06 (B)  previously violated AS 11.76.100, 11.76.106, 11.76.107, or                                                         
07 11.76.109 at a location or outlet in a location for which the person holds a                                            
08 business license endorsement, or had an agent or employee previously violate                                            
09 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not                                            
10 apply to a prior conviction that served to enhance a suspension period under                                            
11            (d)(2) - (4) of this section; or                                                                             
12 (C)  engaged at a location owned by the person in other conduct                                                         
13 that was or is likely to result in the sale of tobacco, electronic smoking                                              
14 products, or products containing nicotine to a person under 21 [19] years of                                        
15            age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109.                                        
16    * Sec. 25. AS 43.70.075(t) is amended to read:                                                                     
17 (t)  Based on evidence provided at the hearing under (m)(4) - (6) of this                                               
18 section, the department may reduce the license suspension period under (d) of this                                      
19 section if the person holding the business license endorsement establishes that, before                                 
20       the date of the violation, the person had                                                                         
21 (1)  adopted and enforced a written policy against selling cigarettes,                                                  
22 cigars, tobacco, products containing tobacco, electronic smoking products, or products                                  
23 containing nicotine to a person under 21 [19] years of age in violation of                                          
24       AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109;                                                                 
25 (2)  informed the person's agents and employees of the applicable laws                                                  
26 and their requirements and conducted training on complying with the laws and                                            
27       requirements;                                                                                                     
28 (3)  required each agent and employee of the person to sign a form                                                      
29 stating that the agent and employee has been informed of and understands the written                                    
30       policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109;                                 
31 (4)  determined that the agents and employees of the person had                                                         
01       sufficient experience and ability to comply with the written policy and requirements of                           
02       AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109;                                                                
03 (5)  required the agents and employees of the person to verify the age                                                  
04 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco,                                        
05 electronic smoking products, or products containing nicotine by means of a valid                                        
06       government issued photographic identification;                                                                    
07                 (6)  established and enforced disciplinary sanctions for noncompliance                                  
08       with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107,                                
09       and 11.76.109; and                                                                                                
10 (7)  monitored the compliance of the agents and employees of the                                                        
11 person with the written policy and the requirements of AS 11.76.100, 11.76.106,                                         
12       11.76.107, and 11.76.109.                                                                                         
13    * Sec. 26. AS 43.70.075(w) is amended to read:                                                                     
14 (w)  For purposes of (m)(5) of this section, a conviction for a violation of                                            
15 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the                                        
16 person who holds the business license endorsement is rebuttably presumed to                                             
17 constitute proof of the fact that the agent or employee negligently sold a cigarette, a                                 
18 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a                                    
19 product containing nicotine to a person under 21 [19] years of age. The person who                                  
20 holds the business license endorsement may overcome the presumption by                                                  
21 establishing by clear and convincing evidence that the agent or employee did not                                        
22 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an                                     
23 electronic smoking product, or a product containing nicotine to a person under 21 [19]                              
24 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as                                        
25 alleged in the citation issued to the agent or employee. The presentation of evidence                                   
26 authorized by this subsection does not constitute a collateral attack on the conviction                                 
27       described in this subsection.                                                                                     
28    * Sec. 27. AS 47.12.030(b) is amended to read:                                                                     
29 (b)  When a minor is accused of violating a statute specified in this subsection,                                       
30 other than a statute the violation of which is a felony, this chapter and the Alaska                                    
31 Delinquency Rules do not apply and the minor accused of the offense shall be                                            
01 charged, prosecuted, and sentenced in the district court in the same manner as an                                       
02 adult; if a minor is charged, prosecuted, and sentenced for an offense under this                                       
03 subsection, the minor's parent, guardian, or legal custodian shall be present at all                                    
04 proceedings; the provisions of this subsection apply when a minor is accused of                                         
05       violating                                                                                                         
06                 (1)  a traffic statute or regulation, or a traffic ordinance or regulation of                           
07       a municipality;                                                                                                   
08                 (2)  AS 11.76.105, relating to the possession of tobacco by a person                                    
09       under 21 [19] years of age;                                                                                   
10                 (3)  a fish and game statute or regulation under AS 16;                                                 
11 (4)  a parks and recreational facilities statute or regulation under                                                    
12       AS 41.21;                                                                                                         
13                 (5)  [REPEALED]                                                                                         
14 (6)  a municipal curfew ordinance, whether adopted under                                                                
15 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its                                      
16 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for                                   
17 the violation of a municipal curfew ordinance, the court shall allow a defendant the                                    
18 option of performing community work; the value of the community work, which may                                         
19 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c);                                    
20 in this paragraph, "community work" includes the work described in AS 12.55.055(b)                                      
21 or work that, on the recommendation of the municipal or borough assembly, city                                          
22 council, or traditional village council of the defendant's place of residence, would                                    
23       benefit persons within the municipality or village who are elderly or disabled.                                   
24    * Sec. 28. AS 11.76.100(e) and 11.76.106(b)(4) are repealed.                                                       
25    * Sec. 29. The uncodified law of the State of Alaska is amended by adding a new section to                         
26 read:                                                                                                                   
27 APPLICABILITY. The following sections apply to offenses committed on or after the                                       
28 effective date of those sections:                                                                                       
29            (1)  AS 11.76.100(a), as amended by sec. 1 of this Act;                                                      
30            (2)  AS 11.76.100(b), as amended by sec. 2 of this Act;                                                      
31            (3)  AS 11.76.105, as amended by sec. 3 of this Act;                                                         
01            (4)  AS 11.76.106(a), as amended by sec. 4 of this Act;                                                      
02            (5)  AS 11.76.106(b), as amended by sec. 5 of this Act;                                                      
03 (6)  AS 11.76.109(a), as amended by sec. 6 of this Act;                                                                 
04 (7)  AS 11.76.109(b), as amended by sec. 7 of this Act;                                                                 
05 (8)  AS 11.76.109(d), as amended by sec. 8 of this Act;                                                                 
06 (9)  AS 11.76.109(g), as amended by sec. 9 of this Act;                                                                 
07            (10)  AS 43.50.325, enacted by sec. 16 of this Act; and                                                      
08            (11)  AS 47.12.030(b), as amended by sec. 27 of this Act.                                                    
09    * Sec. 30. This Act takes effect January 1, 2022.