00 HOUSE CS FOR CS FOR SENATE BILL NO. 24(FIN) am H 01 "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, 02 and products containing nicotine; raising the minimum age to purchase, exchange, or 03 possess tobacco, a product containing nicotine, or an electronic smoking product; 04 relating to the tobacco use education and cessation fund; relating to retail cigar stores; 05 relating to the taxation of electronic smoking products and vapor products; and 06 providing for an effective date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08  * Section 1. AS 11.76.100(a) is amended to read: 09 (a) A person commits the offense of selling or giving tobacco to a person  10 under 21 years of age [MINOR] if the person 11 (1) negligently sells a cigarette, a cigar, tobacco, or a product 12 containing tobacco to a person under 21 [19] years of age; 13 (2) is 21 [19] years of age or older and negligently exchanges or gives 01 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 02 years of age; 03 (3) maintains a vending machine that dispenses cigarettes, cigars, 04 tobacco, or products containing tobacco; or 05 (4) holds a business license endorsement under AS 43.70.075 and 06 allows a person under 19 years of age to sell a cigarette, a cigar, tobacco, or a product 07 containing tobacco. 08  * Sec. 2. AS 11.76.100(b) is amended to read: 09 (b) Notwithstanding the provisions of (a) of this section, a person who 10 maintains a vending machine is not in violation of (a)(3) of this section if the vending 11 machine is located 12 (1) on premises licensed as a beverage dispensary under AS 04.09.200 13 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 14 under AS 04.09.230 and 15 (A) as far as practicable from the primary entrance; and 16 (B) in a place that is directly and continually supervised by a 17 person employed on the licensed premises during the hours the vending 18 machine is accessible to the public; or 19 (2) in an employee break room or other controlled area of a private 20 work place that is not generally considered a public place and the room or area 21 contains a posted warning sign at least 11 inches by 14 inches indicating that 22 possession of tobacco by a person under 21 [19] years of age is prohibited under 23 AS 11.76.105. 24  * Sec. 3. AS 11.76.105 is amended to read: 25 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or  26 products containing nicotine by a person under 21 years of age [MINOR]. (a) 27 Except as provided in (e) of this section, a [A] person under 21 [19] years of age 28 may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 29 an electronic smoking product, or a product containing nicotine in this state. [THIS 30 SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 31 ADULT CORRECTIONAL FACILITY.]  01 (b) In a prosecution under (a) of this section for possession of an electronic 02 smoking product or a product containing nicotine, it is an affirmative defense that the 03 electronic smoking product or product containing nicotine possessed by the person 04 under 21 [19] years of age was intended or expected to be consumed without being 05 combusted, and the electronic smoking product or product containing nicotine 06 (1) has been approved by the United States Food and Drug 07 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 08 or for other medical purposes; 09 (2) was being marketed and sold for the approved purposes; and 10 (3) was 11 (A) prescribed by a health care professional; 12 (B) given to the person by the person's parent or guardian; 13 (C) provided by a state-approved tobacco cessation program 14 administered by the Department of Health; or 15 (D) provided by a pharmacist to a person 18 years of age or 16 older without a prescription. 17 (c) Possession of tobacco, an electronic smoking product, or a product 18 containing nicotine by a person under 21 years of age [MINOR] is a violation 19 punishable by a fine of not more than $100. Notwithstanding AS 12.55.035(b), in  20 place of any fine imposed for the violation of this subsection, the court may refer  21 a defendant, at the request of the defendant, to a tobacco education program. 22  * Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 23 (d) The supreme court shall establish by rule or order a schedule of bail 24 amounts that may be forfeited without court appearance for a violation of this section. 25 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 26 of age who is employed by a person with a business license endorsement under 27 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 28 product containing tobacco, an electronic smoking product, or a product containing 29 nicotine. 30  * Sec. 5. AS 11.76.106(b) is amended to read: 31 (b) Subsection (a) does not apply if the sale 01 (1) is by vending machine as provided under AS 11.76.100(b) or 02 11.76.109(d); 03 (2) is a wholesale transaction, the person is licensed as a manufacturer 04 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 05 transactions occur; 06 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 07 products containing tobacco, electronic smoking products, or products containing 08 nicotine and who restricts access to the premises to only those individuals who are 21 09 [19] years of age or older; or 10 (4) is of electronic smoking products over the Internet to a person 21 11 [19] years of age or older. 12  * Sec. 6. AS 11.76.109(a) is amended to read: 13 (a) A person commits the offense of selling or giving an electronic smoking 14 product or a product containing nicotine to a person under 21 years of age [MINOR] 15 if the person 16 (1) negligently sells an electronic smoking product or a product 17 containing nicotine to a person under 21 [19] years of age; 18 (2) is 21 [19] years of age or older and negligently exchanges or gives 19 an electronic smoking product or a product containing nicotine to a person under 21 20 [19] years of age; 21 (3) maintains a vending machine that dispenses electronic smoking 22 products or products containing nicotine; or 23 (4) holds a business license endorsement under AS 43.70.075 and 24 allows a person under 19 years of age to sell an electronic smoking product or a 25 product containing nicotine. 26  * Sec. 7. AS 11.76.109(b) is amended to read: 27 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 28 gift to a person under 21 [19] years of age of an electronic smoking product or a 29 product containing nicotine that is intended or expected to be consumed without being 30 combusted if the electronic smoking product or product containing nicotine 31 (1) has been approved by the United States Food and Drug 01 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 02 or for other medical purposes; 03 (2) is being marketed and sold solely for the approved purposes; and 04 (3) is 05 (A) prescribed by a health care professional; 06 (B) given to a person by the person's parent or legal guardian; 07 (C) provided by a state-approved tobacco cessation program 08 administered by the Department of Health; or 09 (D) provided by a pharmacist to a person 18 years of age or 10 older without a prescription. 11  * Sec. 8. AS 11.76.109(d) is amended to read: 12 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 13 machine is not in violation of (a)(3) of this section if the vending machine is located 14 (1) on premises licensed as a beverage dispensary under AS 04.09.200 15 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 16 under AS 04.09.230, and is located 17 (A) as far as practicable from the primary entrance; and 18 (B) in a place that is directly and continually supervised by a 19 person employed on the licensed premises during the hours the vending 20 machine is accessible to the public; or 21 (2) in an employee break room or other controlled area of a private 22 work place that is not generally considered a public place and the room or area 23 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 24 possession of electronic smoking products or products containing nicotine by a person 25 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 26 [THIS SECTION]. 27  * Sec. 9. AS 11.76.109(g) is amended to read: 28 (g) Selling or giving an electronic smoking product or a product containing 29 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 30 conviction, is punishable by a fine of not less than $300. 31  * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 01 (71) "nicotine" includes a chemical or chemical compound intended, 02 when introduced into the human body, to mimic or simulate the effect of nicotine from 03 tobacco. 04  * Sec. 11. AS 18.35.301(i) is amended by adding a new paragraph to read: 05 (5) "retail cigar store" means a store 06 (A) that derives at least 60 percent of its gross revenue in a 07 calendar year from the on-site sale of cigars and rentals of on-site humidors; 08 (B) that does not allow cigarettes or cigarette tobacco on the 09 premises; and 10 (C) contains a walk-in or stand-up humidor as a built-in feature 11 on the premises. 12  * Sec. 12. AS 18.35.301 is amended by adding a new subsection to read: 13 (j) Notwithstanding (a) and (b) of this section, unless the owner or operator 14 prohibits it, an individual may smoke at a retail cigar store 15 (1) that is in a building that 16 (A) is freestanding; or 17 (B) if it is attached to another business or building, 18 (i) has a separate entrance; 19 (ii) is separated from the other business or building in a 20 manner that does not allow cigar aerosols to travel into the other 21 business or building; and 22 (iii) the other business or building does not serve as a 23 residence, child care facility, facility providing care for adults on a fee- 24 for-service basis, school, or health care facility; 25 (2) where smoking is limited to the smoking of cigars; 26 (3) that is not 27 (A) a business that is licensed under AS 05.15 to sell pull-tabs; 28 or 29 (B) a retail store that is within an indoor public place or 30 workplace. * Sec. 13. AS 29.35.085(c) is amended to read: 31 (c) The community work provisions of AS 47.12.030(b)(5) 01 [AS 47.12.030(b)(6)] apply to punishment for a minor's conviction of a violation of a 02 curfew ordinance for which a penalty is provided under AS 29.25.070(a). 03  * Sec. 14. AS 37.05.580(a) is amended to read: 04 (a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 05 GENERAL FUND THE] tobacco use education and cessation fund is established as a  06 separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 07 DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 08 the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 09 CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the 10 tobacco use education and cessation fund is to provide a source to finance the 11 comprehensive smoking education, tobacco use prevention, and tobacco control 12 program authorized by AS 44.29.020(a)(12). 13  * Sec. 15. AS 43.50.070 is amended to read: 14 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license.  15 (a) The department may suspend, revoke, or refuse to renew a license issued under this 16 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 17 11.76.109, or a violation of this chapter or a regulation of the department adopted 18 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 19 was issued; or (3) if a licensee negligently sells tobacco or products containing 20 tobacco to a person who is required to, but does not, hold a license endorsement under 21 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 22 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 23 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 24 products, or electronic smoking products to be sold, during the period of the 25 suspension or revocation on the premises occupied or controlled by that person. A 26 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 27 surrender, renewal, or extension of a license issued under this chapter. The 28 department shall comply with the provisions of AS 44.62 (Administrative Procedure 29 Act), except that a hearing officer of the department, rather than a hearing officer 30 assigned under AS 44.62.350, may conduct hearings.  31 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 01 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 02  * Sec. 16. AS 43.50.105(b) is amended to read: 03 (b) A person who is licensed under this chapter may not ship or cause to be 04 shipped cigarettes to a person in this state unless the person receiving the cigarettes 05 (1) is licensed under this chapter; 06 (2) holds a business license endorsement under AS 43.70.075; 07 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 08 1311 or 19 U.S.C. 1555; 09 (4) is an instrumentality of the federal government or an Indian tribal 10 organization authorized by law to possess cigarettes not taxed under this chapter; or 11 (5) is an individual 21 [19] years of age or older and the individual's  12 age was verified at the time of purchase by a third-party verification service, the  13 individual is receiving the cigarettes for personal consumption, and the tax imposed 14 on the cigarettes under this chapter has been paid. 15  * Sec. 17. AS 43.50.105(c) is amended to read: 16 (c) A common or contract carrier may not knowingly transport cigarettes to a 17 person in this state unless the person 18 (1) shipping the cigarettes is licensed under this chapter and, before 19 shipment, provides the common or contract carrier with a copy of the person's current 20 license issued by the department and 21 (A) an affidavit from the intended recipient certifying that the 22 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 23 (5)] of this section; or 24 (B) the common or contract carrier verifies the age of the  25 recipient as 21 years of age or older before delivery; or 26 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 27 this section or is licensed under this chapter and, before receipt, provides the common 28 or contract carrier with a copy of the person's current license issued by the department. 29  * Sec. 18. AS 43.50.150(c) is amended to read: 30 (c) The department may enter into an agreement with a municipality that 31 imposes a tax on cigarettes, [OR OTHER] tobacco products, synthetic nicotine  01 products, nicotine substitutes, or electronic smoking products for the purpose of 02 jointly auditing a person liable for a tax under AS 43.50.010 - 43.50.390 or 43.50.850  03 - 43.50.900 and the municipal tax on cigarettes, [OR OTHER] tobacco products,  04 synthetic nicotine products, nicotine substitutes, or electronic smoking products. 05  * Sec. 19. AS 43.50.190(d) is amended to read: 06 (d) A portion of the annual proceeds of the tax levied under (a) of this section 07 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 08 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 09 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 10 UNDER AS 37.05.580(a).] 11  * Sec. 20. AS 43.50.300 is amended to read: 12 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco 13 products, synthetic nicotine products, and nicotine substitutes in the state at the rate 14 of 75 percent of the wholesale price of the tobacco products. The tax is levied when a 15 person 16 (1) brings, or causes to be brought, a tobacco product, synthetic  17 nicotine product, or nicotine substitute into the state from outside the state for sale; 18 (2) makes, manufactures, or fabricates a tobacco product, synthetic  19 nicotine product, or nicotine substitute in the state for sale in the state; or 20 (3) ships or transports a tobacco product, synthetic nicotine product,  21 or nicotine substitute to a retailer in the state for sale by the retailer. 22  * Sec. 21. AS 43.50.320(a) is amended to read: 23 (a) Except as provided in (g) of this section, a person must be licensed by the 24 department if the person engages in business as a distributor for a tobacco product,  25 synthetic nicotine product, or nicotine substitute that is subject to the tax. 26  * Sec. 22. AS 43.50 is amended by adding a new section to read: 27 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products,  28 synthetic nicotine products, and nicotine substitutes. (a) A person who is not 29 licensed under this chapter may not ship or cause to be shipped a tobacco product, 30 synthetic nicotine product, or nicotine substitute to a person in this state unless the 31 person receiving the tobacco product, synthetic nicotine product, or nicotine substitute 01 is  02 (1) licensed under this chapter; 03 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 04 or 19 U.S.C. 1555; 05 (3) an instrumentality of the federal government or an Indian tribal 06 organization authorized by law to possess tobacco products not taxed under this 07 chapter; or 08 (4) an individual purchasing a cigar or pipe tobacco for personal 09 consumption who is 21 years of age or older and whose age was verified at the time of 10 purchase though a third-party verification service. 11 (b) A person who is licensed under this chapter may not ship or cause to be 12 shipped a tobacco product, synthetic nicotine product, or nicotine substitute to a 13 person in this state unless the person receiving the tobacco product, synthetic nicotine 14 product, or nicotine substitute 15 (1) is licensed under this chapter; 16 (2) holds a business license endorsement under AS 43.70.075; 17 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 18 1311 or 19 U.S.C. 1555; 19 (4) is an instrumentality of the federal government or an Indian tribal 20 organization authorized by law to possess tobacco products, synthetic nicotine 21 products, or nicotine substitutes not taxed under this chapter; or 22 (5) is an individual 21 years of age or older and the individual's age 23 was verified at the time of purchase though a third-party verification service, the 24 individual is receiving the tobacco product, synthetic nicotine product, or nicotine 25 substitute for personal consumption, and the tax imposed on the tobacco product, 26 synthetic nicotine product, or nicotine substitute under this chapter has been paid. 27 (c) A common or contract carrier may not knowingly transport a tobacco 28 product, synthetic nicotine product, or nicotine substitute to a person in this state 29 unless 30 (1) the common or contract carrier verifies the age of the recipient as 31 21 years of age or older before delivery; or 01 (2) the person receiving the tobacco product, synthetic nicotine 02 product, or nicotine substitute is a person described under (a)(2), (3), or (4) of this 03 section or is licensed under this chapter and, before receipt, provides the common or 04 contract carrier with a copy of the person's current license issued by the department. 05 (d) If a tobacco product, synthetic nicotine product, or nicotine substitute is 06 transported by a common or contract carrier to a home or residence, it is rebuttably 07 presumed that the common or contract carrier knew that the recipient of the tobacco 08 product, synthetic nicotine product, or nicotine substitute was not a person described 09 under (b)(1) - (5) of this section, unless the common or contract carrier has satisfied 10 the requirements in (c)(1) of this section. 11 (e) A person, other than a common or contract carrier, may not knowingly 12 transport a tobacco product, synthetic nicotine product, or nicotine substitute to a 13 person in this state, unless the recipient of the tobacco product, synthetic nicotine 14 product, or nicotine substitute is a person described under (a)(4) or (b)(1) - (5) of this 15 section. 16 (f) A person who ships or causes to be shipped a tobacco product, synthetic 17 nicotine product, or nicotine substitute to a person in this state shall plainly and visibly 18 mark the container or wrapping with the words "product containing nicotine" if the 19 tobacco product, synthetic nicotine product, or nicotine substitute is shipped in a 20 container or wrapping other than the manufacturer's original container or wrapping of 21 the tobacco product, synthetic nicotine product, or nicotine substitute. 22 (g) A person who violates the provisions of this section is guilty of a class A 23 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 24 tobacco product, synthetic nicotine product, or nicotine substitute. 25 (h) In addition to the criminal penalty under (g) of this section, the department 26 may assess a civil penalty of not more than $5,000 for each violation of this section. 27 (i) A person who violates the provisions of this section is jointly and severally 28 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 29 permitted by the Constitution of the United States, a person who violates the 30 provisions of this section is required to collect the taxes and pay them to the 31 department. 01  * Sec. 23. AS 43.50.390(1) is amended to read: 02 (1) "distributor" means a person who 03 (A) brings, or causes to be brought, a tobacco product,  04 synthetic nicotine product, or nicotine substitute into the state from outside 05 the state for sale; 06 (B) makes, manufactures, or fabricates a tobacco product,  07 synthetic nicotine product, or nicotine substitute in the state for sale in the 08 state; or 09 (C) ships or transports a tobacco product, synthetic nicotine  10 product, or nicotine substitute to a retailer in the state for sale by the retailer; 11  * Sec. 24. AS 43.50.390(4) is amended to read: 12 (4) "tobacco product" means 13 (A) a cigar; 14 (B) a cheroot; 15 (C) a stogie; 16 (D) a perique; 17 (E) snuff and snuff flour; 18 (F) smoking tobacco, including granulated, plug-cut, crimp-cut, 19 ready-rubbed, and any form of tobacco suitable for smoking in a pipe or 20 cigarette; 21 (G) chewing tobacco, including cavendish, twist, plug, scrap, 22 and tobacco suitable for chewing; or 23 (H) an article or product made of tobacco, [OR] a tobacco 24 substitute, or synthetic tobacco, but not including a cigarette as defined in 25 AS 43.50.170; 26  * Sec. 25. AS 43.50 is amended by adding new sections to read: 27 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax.  28 Sec. 43.50.850. Tax levied; collection. (a) A tax is levied on closed electronic 29 smoking products and vapor products in the state. The tax is 25 percent of the retail 30 sales price of a closed electronic smoking product or a vapor product. 31 (b) A licensee located in the state shall collect and remit the tax to the 01 department. A licensee located outside of the state shall collect and remit the tax to 02 the department if the licensee has more than 200 transactions in the state in the current 03 or preceding calendar year. 04 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 05 (1) a closed electronic smoking product or vapor product 06 (A) sold in a facility operated by one of the uniformed services 07 of the United States; 08 (B) approved for sale by the United States Food and Drug 09 Administration as a drug, drug product, including a drug product used to treat 10 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 11 (Federal Food, Drug, and Cosmetic Act); 12 (C) if the United States Constitution or other federal laws 13 prohibit the levying of the tax on the product by the state; 14 (D) designed, marketed, and sold for the purpose of vaporizing 15 or aerosolizing marijuana, marijuana products, hemp, or hemp products if the 16 marijuana, marijuana products, hemp, or hemp products do not contain 17 nicotine and are intended for sale only in a retail marijuana store; 18 (2) marijuana or marijuana products subject to tax under AS 43.61 if 19 the marijuana or marijuana products do not contain nicotine; or 20 (3) hemp or hemp products if the hemp or hemp products do not 21 contain nicotine. 22 (b) In this section, 23 (1) "hemp" and "hemp products" mean hemp or a hemp product 24 produced by an individual registered under AS 03.05.076; 25 (2) "marijuana," "marijuana products," and "retail marijuana store" 26 have the meanings given in AS 17.38.900; 27 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 28 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 29 person must be licensed by the department if the person engages in business as a 30 retailer of an electronic smoking product.  31 (b) The department, upon application and payment of a fee of $50, shall issue 01 a license for one year to a person who applies for a license under (a) of this section. 02 (c) The department may refuse to issue a license under this section if 03 (1) there is reasonable cause to believe the information submitted in 04 the application is false or misleading and is not made in good faith; 05 (2) the applicant is not in good standing under AS 10.06 (Alaska 06 Corporations Code); or 07 (3) a tax levied under this chapter is due and unpaid by the applicant. 08 (d) A license issued under this section must include the name and address of 09 the licensee, the type of business to be conducted, and the year for which the license is 10 issued. 11 (e) The department may renew a license issued under this section for a fee of 12 $50 if the applicant 13 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 14 and 15 (2) does not have unpaid taxes under this chapter. 16 (f) The department may suspend, revoke, or refuse to renew a license issued 17 under this section as provided in AS 43.50.070. 18 (g) A license required by this section is in addition to any other license 19 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 20 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 21 (h) A license issued under this section is not assignable or transferable, except 22 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 23 if the business of the licensee is transferred to another by operation of law, the 24 department may extend the license for a limited time to the executor, administrator, 25 trustee, receiver, or transferee. 26 (i) A person licensed under this section may not 27 (1) distribute an electronic smoking product designed or packaged so 28 as not to be clearly recognizable as an electronic smoking product; or 29 (2) market an electronic smoking product, including a flavored 30 electronic smoking product, in a manner likely to promote use of the electronic 31 smoking product by a person under 21 years of age. 01 Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 02 licensee shall file a return with the department. The return must state the number or 03 amount of closed electronic smoking products, vapor products, and other electronic 04 smoking products sold by the licensee during the preceding calendar month, the 05 selling price of the electronic smoking products, and the amount of tax imposed on the 06 closed electronic smoking products and vapor products. 07 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate 08 record of all electronic smoking products of the licensee, including purchase prices, 09 sales prices, the names and addresses of the sellers, the dates of delivery, the quantities 10 of electronic smoking products, and the trade names and brands. Statements and 11 records required by this section must be in the form prescribed by the department, 12 preserved for three years, and available for inspection upon demand by the 13 department. 14 Sec. 43.50.875. Disposition of proceeds. The annual proceeds of the tax 15 levied under AS 43.50.850 shall be deposited into the tobacco use education and 16 cessation fund established in AS 37.05.580 and may be appropriated from the fund for 17 the purposes listed in AS 44.29.020(a)(12) or for efforts to prevent or detect the use of 18 tobacco or electronic smoking products in a school. 19 Sec. 43.50.880. Restrictions on shipping or transporting electronic  20 smoking products. (a) A person who is not licensed under this chapter may not ship 21 or cause to be shipped an electronic smoking product to a person in this state unless 22 the person receiving the electronic smoking product is  23 (1) licensed under this chapter; 24 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 25 or 19 U.S.C. 1555; or 26 (3) an instrumentality of the federal government or an Indian tribal 27 organization authorized by law to possess electronic smoking products not taxed under 28 this chapter. 29 (b) A person who is licensed under this chapter may not ship or cause to be 30 shipped an electronic smoking product to a person in this state unless the person 31 receiving the electronic smoking product 01 (1) is licensed under this chapter; 02 (2) holds a business license endorsement under AS 43.70.075; 03 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 04 1311 or 19 U.S.C. 1555; 05 (4) is an instrumentality of the federal government or an Indian tribal 06 organization authorized by law to possess electronic smoking products not taxed under 07 this chapter; or 08 (5) is an individual 21 years of age or older and the individual's age 09 was verified at the time of purchase though a third-party verification service, the 10 individual is receiving the electronic smoking product for personal consumption, and 11 the tax imposed on the electronic smoking product under this chapter has been paid. 12 (c) A common or contract carrier may not knowingly transport an electronic 13 smoking product to a person in this state unless the person 14 (1) shipping the electronic smoking product is licensed under this 15 chapter and, before shipment, provides the common or contract carrier with a copy of 16 the person's current license issued by the department and 17 (A) an affidavit from the intended recipient certifying that the 18 person receiving the electronic smoking product is a person described under 19 (b)(1) - (4) of this section; or 20 (B) the common or contract carrier verifies the age of the 21 recipient as 21 years of age or older before delivery; or 22 (2) receiving the electronic smoking product is a person described 23 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 24 provides the common or contract carrier with a copy of the person's current license 25 issued by the department. 26 (d) If an electronic smoking product is transported by a common or contract 27 carrier to a home or residence, it is rebuttably presumed that the common or contract 28 carrier knew that the recipient of the electronic smoking product was not a person 29 described under (b)(1) - (5) of this section, unless the person shipping the electronic 30 smoking product has satisfied the requirements in (c)(1) of this section. 31 (e) A person, other than a common or contract carrier, may not knowingly 01 transport an electronic smoking product to a person in this state, unless the recipient of 02 the electronic smoking product is a person described under (b)(1) - (5) of this section. 03 (f) A person who ships or causes to be shipped an electronic smoking product 04 to a person in this state shall plainly and visibly mark the container or wrapping with 05 the words "electronic smoking product" if the electronic smoking product is shipped in 06 a container or wrapping other than the manufacturer's original container or wrapping 07 of the electronic smoking product. 08 (g) A person who violates the provisions of this section is guilty of a class A 09 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 10 electronic smoking product. 11 (h) In addition to the criminal penalty under (g) of this section, the department 12 may assess a civil penalty of not more than $5,000 for each violation of this section. 13 (i) A person who violates the provisions of this section is jointly and severally 14 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 15 Constitution of the United States, a person who violates the provisions of this section 16 is required to collect the taxes and pay them to the department. 17 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 18 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 19 for sale or distribution in this state, or import or cause to be imported into this state for 20 sale or distribution in this state only electronic smoking products 21 (1) for which the component vapor product 22 (A) has a nicotine content of not more than 70 milligrams of 23 nicotine for each milliliter of vapor product; 24 (B) is protected from breakage and leakage; 25 (C) does not contain added vitamins or other additives 26 marketed to create the impression of health benefits; in this subparagraph, 27 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 28 stimulants, and colorants; 29 (2) that are packaged to be child- and tamper-proof; and 30 (3) that are labeled to inform consumers about all vapor product 31 ingredients and nicotine content, including the nicotine concentration in milligrams 01 per milliliter and the total amount of milligrams of nicotine in the product. 02 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, 03 (1) "retailer" means a person in the state who is engaged in the 04 business of selling electronic smoking products at retail;  05 (2) "sales price" 06 (A) means the total amount of consideration, including cash, 07 credit, property, and services, for which an electronic smoking product is 08 purchased or sold, valued in money, whether received in money or otherwise, 09 without any deduction for 10 (i) the seller's cost of the electronic smoking product 11 sold; 12 (ii) the cost of materials used, labor or service cost, 13 interest, losses, cost of transportation, taxes, or other expenses of the 14 seller; 15 (iii) charges by the seller for services necessary to 16 complete the sale; 17 (iv) delivery charges; 18 (B) does not include 19 (i) discounts, including cash or coupons that are not 20 reimbursed by a third party, that are allowed by a seller and taken by a 21 purchaser on a sale; 22 (ii) interest, financing, and carrying charges from credit 23 extended on the sale of an electronic smoking product if the amount is 24 separately stated on the invoice, bill of sale, or similar document given 25 to the purchaser; and 26 (iii) taxes legally imposed directly on the consumer that 27 are separately stated on the invoice, bill of sale, or similar document 28 given to the purchaser. 29 Article 9. General Provisions.  30 Sec. 43.50.990. Definitions. In this chapter, 31 (1) "closed electronic smoking product" means a single-use electronic 01 smoking product that includes a pre-filled disposable cartridge of vapor product; 02 (2) "electronic smoking product" 03 (A) includes 04 (i) a product that can be used to deliver aerosolized or 05 vaporized nicotine to the person inhaling; 06 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 07 or other similar device of any shape; 08 (iii) a component, part, accessory, or device related to 09 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 10 device of any shape; 11 (iv) a vapor product used in a device or product 12 described in (i) or (ii) of this subparagraph; 13 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 14 or other similar device of any shape sold together with a solution, vapor 15 product, or other similar product as a disposable nonrefillable unit; 16 (B) does not include a 17 (i) battery, battery charger, heating element, electronic 18 coil, or mouthpiece intended for use in an electronic smoking product, 19 when sold separately from the electronic smoking product; 20 (ii) cartridge, pod, tank, or similar container intended to 21 transport a vapor product, if sold empty; 22 (3) "nicotine" has the meaning given in AS 11.81.900(b); 23 (4) "vapor product" means a substance intended to be aerosolized or 24 vaporized during the use of an electronic smoking product. 25  * Sec. 26. AS 43.70.075(f) is amended to read: 26 (f) A person who holds a license endorsement issued under this section shall 27 post on the licensed premises a warning sign as described in this subsection. A 28 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 29 must read: "The sale of electronic smoking products or products containing nicotine 30 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 31 person holding an endorsement issued under this section shall display the warning sign 01 in a manner conspicuous to a person purchasing or consuming tobacco products, 02 electronic smoking products, or products containing nicotine on the licensed premises. 03 The department shall make available the warning signs required under this section to a 04 person who holds an endorsement issued under this section or a person who requests 05 the sign with the intention of displaying it. 06  * Sec. 27. AS 43.70.075(m) is amended to read: 07 (m) The department may initiate suspension of a business license endorsement 08 or the right to obtain a business license endorsement under this section by sending the 09 person subject to the suspension a notice by certified mail, return receipt requested, or 10 by delivering the notice to the person. The notice must contain information that 11 informs the person of the grounds for suspension, the length of any suspension sought, 12 and the person's right to administrative review. A suspension begins 30 days after 13 receipt of notice described in this subsection unless the person delivers a timely 14 written request for a hearing to the department in the manner provided by regulations 15 of the department. If a hearing is requested under this subsection, an administrative 16 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 17 issues by using the preponderance of the evidence test and shall, to the extent they do 18 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 19 manner provided by regulations of the department. A hearing under this subsection is 20 limited to the following questions: 21 (1) was the person holding the business license endorsement, or an 22 agent or employee of the person while acting within the scope of the agency or 23 employment of the person, convicted by plea or judicial finding of violating 24 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 25 (2) if the department does not allege a conviction of AS 11.76.100, 26 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 27 person while acting within the scope of the agency or employment of the person, 28 violate a provision of (a) or (g) of this section; 29 (3) within the 24 months before the date of the department's notice 30 under this subsection, was the person, or an agent or employee of the person while 31 acting within the scope of the agency or employment of the person, convicted of 01 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 02 violating a provision of (a) or (g) of this section; 03 (4) did the person holding the business license endorsement establish 04 that the person holding the business license endorsement had adopted and enforced an 05 education, a compliance, and a disciplinary program for agents and employees of the 06 person as provided in (t) of this section; 07 (5) did the person holding the business license endorsement overcome 08 the rebuttable presumption established in (w) of this section; 09 (6) within five years before the date of the violation that is the subject 10 of the hearing, did the department establish that the person holding the business 11 license endorsement 12 (A) previously violated (a) or (g) of this section; 13 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 14 11.76.109 at a location or outlet in a location for which the person holds a 15 business license endorsement, or had an agent or employee previously violate 16 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 17 apply to a prior conviction that served to enhance a suspension period under 18 (d)(2) - (4) of this section; or 19 (C) engaged at a location owned by the person in other conduct 20 that was or is likely to result in the sale of tobacco, electronic smoking 21 products, or products containing nicotine to a person under 21 [19] years of 22 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 23  * Sec. 28. AS 43.70.075(t) is amended to read: 24 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 25 section, the department may reduce the license suspension period under (d) of this 26 section if the person holding the business license endorsement establishes that, before 27 the date of the violation, the person had 28 (1) adopted and enforced a written policy against selling cigarettes, 29 cigars, tobacco, products containing tobacco, electronic smoking products, or products 30 containing nicotine to a person under 21 [19] years of age in violation of 31 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 01 (2) informed the person's agents and employees of the applicable laws 02 and their requirements and conducted training on complying with the laws and 03 requirements; 04 (3) required each agent and employee of the person to sign a form 05 stating that the agent and employee has been informed of and understands the written 06 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 07 (4) determined that the agents and employees of the person had 08 sufficient experience and ability to comply with the written policy and requirements of 09 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 10 (5) required the agents and employees of the person to verify the age 11 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 12 electronic smoking products, or products containing nicotine by means of a valid 13 government issued photographic identification; 14 (6) established and enforced disciplinary sanctions for noncompliance 15 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 16 and 11.76.109; and 17 (7) monitored the compliance of the agents and employees of the 18 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 19 11.76.107, and 11.76.109. 20  * Sec. 29. AS 43.70.075(w) is amended to read: 21 (w) For purposes of (m)(5) of this section, a conviction for a violation of 22 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 23 person who holds the business license endorsement is rebuttably presumed to 24 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 25 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 26 product containing nicotine to a person under 21 [19] years of age. The person who 27 holds the business license endorsement may overcome the presumption by 28 establishing by clear and convincing evidence that the agent or employee did not 29 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 30 electronic smoking product, or a product containing nicotine to a person under 21 [19] 31 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 01 alleged in the citation issued to the agent or employee. The presentation of evidence 02 authorized by this subsection does not constitute a collateral attack on the conviction 03 described in this subsection. 04  * Sec. 30. AS 45.50.471(b) is amended by adding a new paragraph to read: 05 (58) marketing an electronic smoking product in a manner likely to 06 promote use of electronic smoking products by a person under 21 years of age; in this 07 paragraph, "electronic smoking product" 08 (A) includes 09 (i) a product that can be used to deliver aerosolized or 10 vaporized nicotine to the person inhaling; 11 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 12 or other similar device of any shape; 13 (iii) a component, part, accessory, or device related to 14 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 15 device of any shape; 16 (iv) a vapor product used in a device or product 17 described in (i) or (ii) of this subparagraph; 18 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 19 or other similar device of any shape sold together with a solution, vapor 20 product, or other similar product as a disposable nonrefillable unit; 21 (B) does not include a 22 (i) battery, battery charger, heating element, electronic 23 coil, or mouthpiece intended for use in an electronic smoking product, 24 when sold separately from the electronic smoking product; 25 (ii) cartridge, pod, tank, or similar container intended to 26 transport a vapor product, if sold empty. 27  * Sec. 31. AS 45.50.471(b)(58), enacted by sec. 30 of this Act, is amended to read: 28 (58) marketing an electronic smoking product in a manner likely to 29 promote use of electronic smoking products by a person under 21 years of age; in this 30 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990 31 [(A) INCLUDES 01 (i) A PRODUCT THAT CAN BE USED TO 02 DELIVER AEROSOLIZED OR VAPORIZED NICOTINE TO THE 03 PERSON INHALING; 04 (ii) AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 05 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 06 SHAPE; 07 (iii) A COMPONENT, PART, ACCESSORY, OR 08 DEVICE RELATED TO AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 09 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 10 SHAPE; 11 (iv) A VAPOR PRODUCT USED IN A DEVICE OR 12 PRODUCT DESCRIBED IN (i) OR (ii) OF THIS SUBPARAGRAPH; 13 (v) AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 14 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 15 SHAPE SOLD TOGETHER WITH A SOLUTION, VAPOR 16 PRODUCT, OR OTHER SIMILAR PRODUCT AS A DISPOSABLE 17 NONREFILLABLE UNIT; 18 (B) DOES NOT INCLUDE A 19 (i) BATTERY, BATTERY CHARGER, HEATING 20 ELEMENT, ELECTRONIC COIL, OR MOUTHPIECE INTENDED 21 FOR USE IN AN ELECTRONIC SMOKING PRODUCT, WHEN 22 SOLD SEPARATELY FROM THE ELECTRONIC SMOKING 23 PRODUCT; 24 (ii) CARTRIDGE, POD, TANK, OR SIMILAR 25 CONTAINER INTENDED TO TRANSPORT A VAPOR PRODUCT, 26 IF SOLD EMPTY]. 27  * Sec. 32. AS 47.12.030(b) is amended to read: 28 (b) When a minor is accused of violating a statute specified in this subsection, 29 other than a statute the violation of which is a felony, this chapter and the Alaska 30 Delinquency Rules do not apply and the minor accused of the offense shall be 31 charged, prosecuted, and sentenced in the district court in the same manner as an 01 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 02 subsection, the minor's parent, guardian, or legal custodian shall be present at all 03 proceedings; the provisions of this subsection apply when a minor is accused of 04 violating 05 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 06 a municipality; 07 (2) AS 11.76.105, relating to the possession of tobacco by a person 08 under 21 [19] years of age; 09 (3) a fish and game statute or regulation under AS 16; 10 (4) a parks and recreational facilities statute or regulation under 11 AS 41.21; 12 (5) [REPEALED 13 (6)] a municipal curfew ordinance, whether adopted under 14 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 15 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 16 the violation of a municipal curfew ordinance, the court shall allow a defendant the 17 option of performing community work; the value of the community work, which may 18 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 19 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 20 or work that, on the recommendation of the municipal or borough assembly, city 21 council, or traditional village council of the defendant's place of residence, would 22 benefit persons within the municipality or village who are elderly or disabled; 23 (6) [(7)] AS 04.16.050, relating to consumption, possession, or control 24 of alcohol by a person under 21 years of age. 25  * Sec. 33. AS 11.76.100(e) is repealed. 26  * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 APPLICABILITY. The following sections apply to offenses committed on or after the 29 effective date of those sections: 30 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 31 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 01 (3) AS 11.76.105, as amended by sec. 3 of this Act; 02 (4) AS 11.76.105(d) and (e), enacted by sec. 4 of this Act; 03 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 04 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 05 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 06 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 07 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 08 (10) AS 11.81.900(b)(71), enacted by sec. 10 of this Act; 09 (11) AS 43.50.325, enacted by sec. 22 of this Act; 10 (12) AS 43.50.880, enacted by sec. 25 of this Act; and 11 (13) AS 47.12.030(b), as amended by sec. 32 of this Act. 12  * Sec. 35. Sections 15, 18, 25, and 31 of this Act take effect July 1, 2027. 13  * Sec. 36. Except as provided in sec. 35 of this Act, this Act takes effect July 1, 2026.