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HB 260: "An Act relating to purchase and possession of cigarettes or tobacco products by a person under 19 years of age, to licenses for persons engaged in activities involving tobacco products, to taxes on cigarettes and tobacco products, and to the amount of the bond required to stay execution of a judgment in civil litigation involving a signatory, a successor of a signatory, or an affiliate of a signatory to the tobacco product Master Settlement Agreement during an appeal; amending Rules 204, 205, and 603, Alaska Rules of Appellate Procedure; and providing for an effective date."

00 HOUSE BILL NO. 260 01 "An Act relating to purchase and possession of cigarettes or tobacco products by a 02 person under 19 years of age, to licenses for persons engaged in activities involving 03 tobacco products, to taxes on cigarettes and tobacco products, and to the amount of the 04 bond required to stay execution of a judgment in civil litigation involving a signatory, a 05 successor of a signatory, or an affiliate of a signatory to the tobacco product Master 06 Settlement Agreement during an appeal; amending Rules 204, 205, and 603, Alaska 07 Rules of Appellate Procedure; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 11.76.105 is amended to read: 10 Sec. 11.76.105. Purchase, possession, attempted purchase, or attempted 11 possession [POSSESSION] of tobacco by a person under 19 years of age 12 [MINOR]. (a) A person under 19 years of age may not knowingly purchase, 13 possess, attempt to purchase, or attempt to possess a cigarette, a cigar, tobacco, or a

01 product containing tobacco in this state. This subsection does not apply to a person 02 who is a prisoner at an adult correctional facility or to a person who is assisting a 03 peace officer in the enforcement of this section. 04 (b) Purchase, possession, attempted purchase, or attempted possession 05 [POSSESSION] of tobacco by a person under 19 years of age [MINOR] is a 06 violation. 07 * Sec. 2. AS 43.50.190(a) is amended to read: 08 (a) There is levied an excise tax on each cigarette imported or acquired in this 09 state, 10 (1) after December 31, 2004, but before January [JULY ]1, 2006, 42 11 mills; 12 (2) on or after January 1 [JUNE 30], 2006 [, BUT BEFORE JULY 1, 13 2007, 52 MILLS; 14 (3) AFTER JUNE 30, 2007], 62 mills. 15 * Sec. 3. AS 43.50.300 is amended to read: 16 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco 17 products in the state. The rate of the tax is 100 [AT THE RATE OF 75] percent of 18 the wholesale price of the tobacco products. The tax is levied when a person 19 (1) brings, or causes to be brought, a tobacco product into the state 20 from outside the state for sale; 21 (2) makes, manufactures, or fabricates a tobacco product in the state 22 for sale in the state; [OR] 23 (3) ships or transports a tobacco product to a retailer in the state for 24 sale by the retailer or to an individual for personal consumption; or 25 (4) brings, or causes to be brought, a tobacco product into the state 26 from outside the state for personal consumption. 27 * Sec. 4. AS 43.50.320(a) is repealed and reenacted to read: 28 (a) Except as provided in (g) of this section, a person engaging in an activity 29 described in AS 43.50.300(1) - (3) must be licensed by the department as a distributor, 30 and a person engaging in an activity described in AS 43.50.300(4) must be licensed as 31 a buyer.

01 * Sec. 5. AS 43.50.320(b) is amended to read: 02 (b) The department, upon application and payment of a fee of $50, shall issue 03 a license for one year to a person who applies for a distributor license. The 04 department, upon application and payment of a fee of $25, shall issue a license 05 for one year to a person who applies for a buyer license [UNDER (a) OF THIS 06 SECTION]. 07 * Sec. 6. AS 43.50.320(d) is amended to read: 08 (d) A distributor license issued under this section must include the name and 09 address of the licensee, the type of business to be conducted, and the year for which 10 the license is issued. 11 * Sec. 7. AS 43.50.320(e) is amended to read: 12 (e) The department may renew a distributor license issued under this section 13 for a fee of $50. The department may renew a buyer license issued under this 14 section for a fee of $25. 15 * Sec. 8. AS 43.50.330(a) is amended to read: 16 (a) On or before the last day of each calendar month, a licensee shall file a 17 return with the department. The return must state the number or amount of tobacco 18 products sold or imported for personal consumption by the licensee during the 19 preceding calendar month, the selling price or purchase price of the tobacco 20 products, and the amount of tax imposed on the tobacco products. 21 * Sec. 9. 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 into the 24 state from outside the state for sale; 25 (B) makes, manufactures, or fabricates a tobacco product in the 26 state for sale in the state; or 27 (C) ships or transports a tobacco product to a retailer in the 28 state for sale by the retailer or to an individual for personal consumption; 29 * Sec. 10. AS 43.50.390(2) is amended to read: 30 (2) "licensee" means a distributor or buyer who is 31 (A) licensed under AS 43.50.320; or

01 (B) exempted by AS 43.50.320(g) from licensing under 02 AS 43.50.320; 03 * Sec. 11. AS 43.50.390 is amended by adding a new paragraph to read: 04 (6) "buyer" means a person who imports tobacco products for the 05 person's own consumption from a source other than a licensee. 06 * Sec. 12. AS 45.53 is amended by adding a new section to read: 07 Sec. 45.53.050. Stays pending appeal in civil cases. (a) Except as provided 08 in (b) of this section, in order to secure and protect the money to be received as a result 09 of the Master Settlement Agreement, in civil tobacco-related litigation under any legal 10 theory involving a signatory, a successor of a signatory, or an affiliate of a signatory to 11 the Master Settlement Agreement, the supersedeas bond to be furnished in order to 12 stay the execution of the judgment during the entire course of appellate review shall be 13 set in accordance with applicable laws or court rules, except that the total bond that is 14 required of all appellants collectively may not exceed $100,000,000 regardless of the 15 value of the judgment. 16 (b) If an appellee proves by a preponderance of the evidence that an appellant 17 is dissipating assets to avoid the payment of a judgment, a court may require the 18 appellant to post a bond in an amount up to the full amount of the judgment. 19 * Sec. 13. AS 47.12.030(b) is amended to read: 20 (b) When a minor is accused of violating a statute specified in this subsection, 21 other than a statute the violation of which is a felony, this chapter and the Alaska 22 Delinquency Rules do not apply and the minor accused of the offense shall be 23 charged, prosecuted, and sentenced in the district court in the same manner as an 24 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 25 subsection, the minor's parent, guardian, or legal custodian shall be present at all 26 proceedings; the provisions of this subsection apply when a minor is accused of 27 violating 28 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 29 a municipality; 30 (2) AS 11.76.105, relating to the purchase, possession, attempted 31 purchase, or attempted possession of tobacco by a person under 19 years of age;

01 (3) a fish and game statute or regulation under AS 16; 02 (4) a parks and recreational facilities statute or regulation under 03 AS 41.21; 04 (5) AS 04.16.050, relating to possession, control, or consumption of 05 alcohol, except for conduct constituting habitual minor consuming or in possession or 06 control under AS 04.16.050(d); and 07 (6) a municipal curfew ordinance, whether adopted under 08 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 09 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 10 the violation of a municipal curfew ordinance, the court shall allow a defendant the 11 option of performing community work; the value of the community work, which may 12 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 13 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 14 or work that, on the recommendation of the municipal or borough assembly, city 15 council, or traditional village council of the defendant's place of residence, would 16 benefit persons within the municipality or village who are elderly or disabled. 17 * Sec. 14. Section 4, ch. 48, SLA 1997, as amended by sec. 42, ch. 1, FSSLA 2004, is 18 repealed and reenacted to read: 19 Sec. 4. AS 43.50.190(a) is repealed and reenacted to read: 20 (a) There is levied an excise tax on each cigarette imported or acquired in this 21 state, 22 (1) after December 31, 2004, but before January 1, 2006, 77.5 mills; 23 (2) on or after January 1, 2006, 97.5 mills. 24 * Sec. 15. The uncodified law of the State of Alaska is amended by adding a new section to 25 read: 26 INDIRECT COURT RULE AMENDMENT. AS 45.53.050, added by sec. 12 of this 27 Act, has the effect of changing Rules 204, 205, and 603, Alaska Rules of Appellate 28 Procedure, by limiting the court's discretion to determine the amount of a supersedeas bond in 29 certain cases. 30 * Sec. 16. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:

01 APPLICABILITY. AS 43.53.050, added by sec. 12 of this Act, applies to all cases 02 pending on or filed on or after the effective date of this Act. 03 * Sec. 17. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 CONDITIONAL EFFECT OF SECTIONS 2, 3, 12, and 14. AS 45.53.050, added by 06 sec. 12 of this Act, the amendments to AS 43.50.190(a) and 43.50.300 made in secs. 2 and 3 07 of this Act, and the repeal and reenactment of AS 43.50.190(a) by sec. 14 of this Act take 08 effect only if sec. 15 of this Act receives the two-thirds majority vote of each house required 09 by art. IV, sec. 15, Constitution of the State of Alaska. 10 * Sec. 18. This Act takes effect immediately under AS 01.10.070(c).