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HCS CSSB 45(FIN): "An Act raising the minimum age to purchase, sell, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to selling a tobacco product; relating to possession of tobacco, electronic smoking products, or products containing nicotine by an underaged person; relating to the definition of 'nicotine'; relating to transporting tobacco, a product containing nicotine, or an electronic smoking product; relating to the taxation of electronic smoking products; relating to electronic smoking products; relating to the marketing of electronic smoking products; relating to tobacco products; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 45(FIN) 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 selling a 03 tobacco product; relating to possession of tobacco, electronic smoking products, or 04 products containing nicotine by an underaged person; relating to the definition of 05 'nicotine'; relating to transporting tobacco, a product containing nicotine, or an 06 electronic smoking product; relating to the taxation of electronic smoking products; 07 relating to electronic smoking products; relating to the marketing of electronic smoking 08 products; relating to tobacco products; and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 11.76.100(a) is amended to read: 11 (a) A person commits the offense of selling or giving tobacco to an 12 underaged person [A MINOR] if the person

01 (1) negligently sells a cigarette, a cigar, tobacco, or a product 02 containing tobacco to a person under 21 [19] years of age; 03 (2) is 21 [19] years of age or older and negligently exchanges or gives 04 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 19 05 years of age; 06 (3) maintains a vending machine that dispenses cigarettes, cigars, 07 tobacco, or products containing tobacco; or 08 (4) holds a business license endorsement under AS 43.70.075 and 09 allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 10 product containing tobacco. 11 * Sec. 2. AS 11.76.105 is amended to read: 12 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 13 products containing nicotine by a person under 19 years of age [MINOR]. (a) A 14 person under 19 years of age may not knowingly possess a cigarette, a cigar, tobacco, 15 a product containing tobacco, an electronic smoking product, or a product containing 16 nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A PERSON 17 WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.] 18 (b) In a prosecution under (a) of this section for possession of an electronic 19 smoking product or a product containing nicotine, it is an affirmative defense that the 20 electronic smoking product or product containing nicotine possessed by the person 21 under 19 years of age was intended or expected to be consumed without being 22 combusted, and the electronic smoking product or product containing nicotine 23 (1) has been approved by the United States Food and Drug 24 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 25 or for other medical purposes; 26 (2) was being marketed and sold for the approved purposes; and 27 (3) was 28 (A) prescribed by a health care professional; 29 (B) given to the person by the person's parent or guardian; 30 (C) provided by a state-approved tobacco cessation program 31 administered by the Department of Health and Social Services; or

01 (D) provided by a pharmacist to a person 18 years of age or 02 older without a prescription. 03 (c) Possession of tobacco, an electronic smoking product, or a product 04 containing nicotine by a person under 19 years of age [MINOR] is a violation 05 punishable by a fine of not more than $150. 06 * Sec. 3. AS 11.76.105 is amended by adding a new subsection to read: 07 (d) The supreme court shall establish by rule or order a schedule of bail 08 amounts that may be forfeited without court appearance for a violation of this section. 09 * Sec. 4. AS 11.76.106(b) is amended to read: 10 (b) Subsection (a) does not apply if the sale 11 (1) is by vending machine as provided under AS 11.76.100(b) or 12 11.76.109(d); 13 (2) is a wholesale transaction, the person is licensed as a manufacturer 14 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 15 transactions occur; 16 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 17 products containing tobacco, electronic smoking products, or products containing 18 nicotine and who restricts access to the premises to only those individuals who are 21 19 [19] years of age or older; or 20 (4) is of electronic smoking products over the Internet to a person 21 21 [19] years of age or older. 22 * Sec. 5. AS 11.76.109(a) is amended to read: 23 (a) A person commits the offense of selling or giving an electronic smoking 24 product or a product containing nicotine to an underaged person [A MINOR] if the 25 person 26 (1) negligently sells an electronic smoking product or a product 27 containing nicotine to a person under 21 [19] years of age; 28 (2) is 21 [19] years of age or older and negligently exchanges or gives 29 an electronic smoking product or a product containing nicotine to a person under 19 30 years of age; 31 (3) maintains a vending machine that dispenses electronic smoking

01 products or products containing nicotine; 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 an electronic smoking product or a 04 product containing nicotine. 05 * Sec. 6. AS 11.76.109(b) is amended to read: 06 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 07 gift [TO A PERSON UNDER 19 YEARS OF AGE] of an electronic smoking product 08 or a product containing nicotine that is intended or expected to be consumed without 09 being combusted if the electronic smoking product or product containing nicotine 10 (1) has been approved by the United States Food and Drug 11 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 12 or for other medical purposes; 13 (2) is being marketed and sold solely for the approved purposes; and 14 (3) is 15 (A) prescribed by a health care professional; 16 (B) given to a person by the person's parent or legal guardian; 17 (C) provided by a state-approved tobacco cessation program 18 administered by the Department of Health and Social Services; or 19 (D) provided by a pharmacist to a person 18 years of age or 20 older without a prescription. 21 * Sec. 7. AS 11.76.109(d) is amended to read: 22 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 23 machine is not in violation of (a)(3) of this section if the vending machine is located 24 (1) on premises licensed as a beverage dispensary under AS 04.11.090, 25 licensed as a club under AS 04.11.110, or licensed as a package store under 26 AS 04.11.150, and is located 27 (A) as far as practicable from the primary entrance; and 28 (B) in a place that is directly and continually supervised by a 29 person employed on the licensed premises during the hours the vending 30 machine is accessible to the public; or 31 (2) in an employee break room or other controlled area of a private

01 work place that is not generally considered a public place and the room or area 02 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 03 possession of electronic smoking products or products containing nicotine by a person 04 under 19 years of age without a prescription is prohibited under AS 11.76.105 05 [AS 11.76.109]. 06 * Sec. 8. AS 11.76.109(g) is amended to read: 07 (g) Selling or giving an electronic smoking product or a product containing 08 nicotine to an underaged person [A MINOR] is a violation and, upon conviction, is 09 punishable by a fine of not less than $300. 10 * Sec. 9. AS 11.81.900(b) is amended by adding a new paragraph to read: 11 (69) "nicotine" includes a chemical or chemical compound intended, 12 when introduced into the human body, to mimic or simulate the effect of nicotine from 13 tobacco. 14 * Sec. 10. AS 43.50.105(b) is amended to read: 15 (b) A person who is licensed under this chapter may not ship or cause to be 16 shipped cigarettes to a person in this state unless the person receiving the cigarettes 17 (1) is licensed under this chapter; 18 (2) holds a business license endorsement under AS 43.70.075; 19 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 20 1311 or 19 U.S.C. 1555; 21 (4) is an instrumentality of the federal government or an Indian tribal 22 organization authorized by law to possess cigarettes not taxed under this chapter; or 23 (5) is an individual 21 [19] years of age or older and the individual's 24 age was verified at the time of purchase by a third-party verification service, the 25 individual is receiving the cigarettes for personal consumption, and the tax imposed 26 on the cigarettes under this chapter has been paid. 27 * Sec. 11. AS 43.50.105(c) is amended to read: 28 (c) A common or contract carrier may not knowingly transport cigarettes to a 29 person in this state unless the person 30 (1) shipping the cigarettes is licensed under this chapter and, before 31 shipment, provides the common or contract carrier with a copy of the person's current

01 license issued by the department and 02 (A) an affidavit from the intended recipient certifying that the 03 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 04 (5)] of this section; or 05 (B) the common or contract carrier verifies the age of the 06 recipient as 21 years of age or older before delivery; or 07 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 08 this section or is licensed under this chapter and, before receipt, provides the common 09 or contract carrier with a copy of the person's current license issued by the department. 10 * Sec. 12. AS 43.50.150(c) is amended to read: 11 (c) The department may enter into an agreement with a municipality that 12 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 13 products for the purpose of jointly auditing a person liable for a tax under 14 AS 43.50.010 - 43.50.390 and the municipal tax on cigarettes, [OR OTHER] tobacco 15 products, or electronic smoking products. In this subsection, "electronic smoking 16 product" has the meaning given in AS 43.50.390. 17 * Sec. 13. AS 43.50.300 is amended to read: 18 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products 19 and electronic smoking products in the state. The tax is 20 (1) [AT THE RATE OF] 75 percent of the wholesale price of [THE] 21 tobacco products; 22 (2) 25 percent of the wholesale price of 23 (A) a closed-system electronic smoking product; 24 (B) a vapor product sold as part of an open-system 25 electronic smoking product; 26 (C) a vapor product sold separately from a closed- or open- 27 system electronic smoking product. [THE TAX IS LEVIED WHEN A 28 PERSON 29 (1) BRINGS, OR CAUSES TO BE BROUGHT, A TOBACCO 30 PRODUCT INTO THE STATE FROM OUTSIDE THE STATE FOR SALE; 31 (2) MAKES, MANUFACTURES, OR FABRICATES A TOBACCO

01 PRODUCT IN THE STATE FOR SALE IN THE STATE; OR 02 (3) SHIPS OR TRANSPORTS A TOBACCO PRODUCT TO A 03 RETAILER IN THE STATE FOR SALE BY THE RETAILER.] 04 * Sec. 14. AS 43.50.300 is amended by adding new subsections to read: 05 (b) The tax under (a) of this section is levied when a person 06 (1) brings, or causes to be brought, a tobacco product or electronic 07 smoking product into the state from outside the state for sale; 08 (2) makes, manufactures, or fabricates a tobacco product or electronic 09 smoking product in the state for sale in the state; or 10 (3) ships or transports a tobacco product or electronic smoking product 11 to a retailer in the state for sale by the retailer. 12 (c) In this section, 13 (1) "closed-system electronic smoking product" means a nonrefillable 14 electronic smoking product; 15 (2) "open-system electronic smoking product" means a refillable 16 electronic smoking product. 17 * Sec. 15. AS 43.50.310(b) is amended to read: 18 (b) The tax does not apply to 19 (1) a tobacco product if the United States Constitution or other federal 20 laws prohibit the levying of the tax on the product by the state; 21 (2) an electronic smoking product 22 (A) approved for sale by the United States Food and Drug 23 Administration as a drug, drug product, including a drug product used to 24 treat tobacco dependence, or combination product under 21 U.S.C. 301 - 25 392 (Federal Food, Drug, and Cosmetic Act); 26 (B) if the United States Constitution or other federal laws 27 prohibit the levying of the tax on the product by the state; 28 (C) designed, marketed, and sold for the purpose of 29 vaporizing or aerosolizing marijuana, marijuana products, hemp, or 30 hemp products; for purposes of meeting the requirements of this 31 subparagraph, the department shall accept a notarized affidavit from the

01 seller attesting to the intended use of the product; or 02 (3) marijuana, marijuana products, hemp, or hemp products if the 03 marijuana, marijuana product, hemp, or hemp product does not contain 04 nicotine. 05 * Sec. 16. AS 43.50.310 is amended by adding a new subsection to read: 06 (c) In this section, 07 (1) "hemp" and "hemp products" means hemp or a hemp product 08 produced by an individual registered under AS 03.05.076; 09 (2) "marijuana" and "marijuana products" have the meanings given in 10 AS 17.38.900. 11 * Sec. 17. AS 43.50.320(a) is amended to read: 12 (a) Except as provided in (g) of this section, a person must be licensed by the 13 department if the person engages in business as a distributor for a tobacco product or 14 electronic smoking product that is subject to the tax. 15 * Sec. 18. AS 43.50.320 is amended by adding a new subsection to read: 16 (i) A person licensed under this section may not 17 (1) distribute an electronic smoking product designed or packaged so 18 as not to be clearly recognizable as a tobacco product; or 19 (2) market an electronic smoking product, including a flavored 20 electronic smoking product, in a manner likely to promote use of the electronic 21 smoking product by a person under 21 years of age. 22 * Sec. 19. AS 43.50 is amended by adding a new section to read: 23 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products 24 and electronic smoking products. (a) A person who is not licensed under this chapter 25 may not ship or cause to be shipped a tobacco product or electronic smoking product 26 to a person in this state unless the person receiving the tobacco product or electronic 27 smoking product is 28 (1) licensed under this chapter; 29 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 30 or 19 U.S.C. 1555; or 31 (3) an instrumentality of the federal government or an Indian tribal

01 organization authorized by law to possess tobacco products or electronic smoking 02 products not taxed under this chapter. 03 (b) A person who is licensed under this chapter may not ship or cause to be 04 shipped a tobacco product or electronic smoking product to a person in this state 05 unless the person receiving the tobacco product or electronic smoking product 06 (1) is licensed under this chapter; 07 (2) holds a business license endorsement under AS 43.70.075; 08 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 09 1311 or 19 U.S.C. 1555; 10 (4) is an instrumentality of the federal government or an Indian tribal 11 organization authorized by law to possess tobacco products or electronic smoking 12 products not taxed under this chapter; or 13 (5) is an individual 21 years of age or older and the individual's age 14 was verified at the time of purchase though a third-party verification service, the 15 individual is receiving the tobacco product or electronic smoking product for personal 16 consumption, and the tax imposed on the tobacco product or electronic smoking 17 product under this chapter has been paid. 18 (c) A common or contract carrier may not knowingly transport a tobacco 19 product or electronic smoking product to a person in this state unless the person 20 (1) shipping the tobacco product or electronic smoking product is 21 licensed under this chapter and, before shipment, provides the common or contract 22 carrier with a copy of the person's current license issued by the department and 23 (A) an affidavit from the intended recipient certifying that the 24 person receiving the tobacco product or electronic smoking product is a person 25 described under (b)(1) - (4) of this section; or 26 (B) the common or contract carrier verifies the age of the 27 recipient as 21 years of age or older before delivery; or 28 (2) receiving the tobacco product or electronic smoking product is a 29 person described under (a)(2) or (3) of this section or is licensed under this chapter 30 and, before receipt, provides the common or contract carrier with a copy of the 31 person's current license issued by the department.

01 (d) If a tobacco product or electronic smoking product is transported by a 02 common or contract carrier to a home or residence, it is rebuttably presumed that the 03 common or contract carrier knew that the recipient of the tobacco product or electronic 04 smoking product was not a person described under (b)(1) - (5) of this section, unless 05 the person shipping the tobacco product or electronic smoking product has satisfied 06 the requirements in (c)(1) of this section. 07 (e) A person, other than a common or contract carrier, may not knowingly 08 transport a tobacco product or electronic smoking product to a person in this state, 09 unless the recipient of the tobacco product or electronic smoking product is a person 10 described under (b)(1) - (5) of this section. 11 (f) A person who ships or causes to be shipped a tobacco product or electronic 12 smoking product to a person in this state shall plainly and visibly mark the container 13 or wrapping with the words "tobacco product" or "electronic smoking product" or 14 both, as applicable, if the tobacco product or electronic smoking product is shipped in 15 a container or wrapping other than the manufacturer's original container or wrapping 16 of the tobacco product or electronic smoking product. 17 (g) A person who violates the provisions of this section is guilty of a class A 18 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 19 tobacco product or electronic smoking product. 20 (h) In addition to the criminal penalty under (g) of this section, the department 21 may assess a civil penalty of not more than $5,000 for each violation of this section. 22 (i) A person who violates the provisions of this section is jointly and severally 23 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 24 permitted by the Constitution of the United States, a person who violates the 25 provisions of this section is required to collect the taxes and pay them to the 26 department. 27 * Sec. 20. AS 43.50.330(a) is amended to read: 28 (a) On or before the last day of each calendar month, a licensee shall file a 29 return with the department. The return must state the number or amount of tobacco 30 products and electronic smoking products sold by the licensee during the preceding 31 calendar month, the selling price of the tobacco products and electronic smoking

01 products, and the amount of tax imposed on the tobacco products and electronic 02 smoking products. 03 * Sec. 21. AS 43.50.330 is amended by adding a new subsection to read: 04 (c) A licensee is not required to file a return under this section if the licensee 05 (1) sells only products exempt under AS 43.50.310(b)(2)(C) or (b)(3) 06 from the tax under this chapter; and 07 (2) provides a notarized affidavit attesting to the licensee's 08 qualification under (1) of this subsection. 09 * Sec. 22. AS 43.50.335 is amended to read: 10 Sec. 43.50.335. Tax credits and refunds. The department shall adopt 11 procedures for a refund or credit to a licensee of the tax paid for tobacco products or 12 electronic smoking products that have become unfit for sale, are destroyed, or are 13 returned to the manufacturer for credit or replacement if the licensee provides proof 14 acceptable to the department that the tobacco products or electronic smoking 15 products have not been and will not be consumed in this state. 16 * Sec. 23. AS 43.50.340 is amended to read: 17 Sec. 43.50.340. Records. A licensee shall keep a complete and accurate record 18 of all tobacco products and electronic smoking products of the licensee subject to 19 the tax, including purchase prices, sales prices, the names and addresses of the sellers 20 and the purchasers, the dates of delivery, the quantities of tobacco products and 21 electronic smoking products, and the trade names and brands. Statements and 22 records required by this section must be in the form prescribed by the department, 23 preserved for three years, and available for inspection upon demand by the 24 department. 25 * Sec. 24. AS 43.50.350 is amended to read: 26 Sec. 43.50.350. Disposition of proceeds. Except as provided in (b) of this 27 section, the [THE] tax collected by the department shall be deposited in the general 28 fund. The annual estimated balance in the account maintained by the commissioner of 29 administration under AS 37.05.142 may be used by the legislature to make 30 appropriations for health care, health research, health promotion, and health education 31 programs.

01 * Sec. 25. AS 43.50.350 is amended by adding a new subsection to read: 02 (b) The department shall separately account for tax collected on electronic 03 smoking products under AS 43.50.300. The annual estimated balance in the account 04 may be appropriated by the legislature to provide for education, programs, and 05 advertising related to the hazards of electronic smoking products. 06 * Sec. 26. AS 43.50.390(1) is amended to read: 07 (1) "distributor" means a person who 08 (A) brings, or causes to be brought, a tobacco product or 09 electronic smoking product into the state from outside the state for sale; 10 (B) makes, manufactures, or fabricates a tobacco product or 11 electronic smoking product in the state for sale in the state; or 12 (C) ships or transports a tobacco product or electronic 13 smoking product to a retailer in the state for sale by the retailer; 14 * Sec. 27. AS 43.50.390(5) is amended to read: 15 (5) "wholesale price" means 16 (A) the established price for which a manufacturer sells a 17 tobacco product or electronic smoking product to a distributor after 18 deduction of a discount or other reduction received by the distributor for 19 quantity or cash if the manufacturer's established price is adequately supported 20 by bona fide arm's length sales as determined by the department; or 21 (B) the price, as determined by the department, for which 22 tobacco products or electronic smoking products of comparable retail price 23 are sold to distributors in the ordinary course of trade if the manufacturer's 24 established price does not meet the standards of (A) of this paragraph. 25 * Sec. 28. AS 43.50.390 is amended by adding new paragraphs to read: 26 (6) "electronic smoking product" 27 (A) includes a 28 (i) product that can be used to deliver aerosolized or 29 vaporized nicotine to the person inhaling; an e-cigarette, e-cigar, e- 30 pipe, e-hookah, or vape pen and any component, part, accessory, or 31 device related to an e-cigarette, e-cigar, e-pipe, e-hookah, or vape pen;

01 and 02 (ii) vapor product; 03 (B) does not include a 04 (i) battery, battery charger, or mouthpiece when sold 05 separately; 06 (ii) cartridge, pod, tank, or similar container when sold 07 empty; 08 (7) "nicotine" has the meaning given in AS 11.81.900(b); 09 (8) "vapor product" means a substance intended to be aerosolized or 10 vaporized during the use of an electronic smoking product. 11 * Sec. 29. AS 43.70.075(f) is amended to read: 12 (f) A person who holds a license endorsement issued under this section shall 13 post on the licensed premises a warning sign as described in this subsection. A 14 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 15 must read: "The sale of electronic smoking products or products containing nicotine 16 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 17 person holding an endorsement issued under this section shall display the warning sign 18 in a manner conspicuous to a person purchasing or consuming tobacco products, 19 electronic smoking products, or products containing nicotine on the licensed premises. 20 The department shall make available the warning signs required under this section to a 21 person who holds an endorsement issued under this section or a person who requests 22 the sign with the intention of displaying it. 23 * Sec. 30. AS 43.70.075(m) is amended to read: 24 (m) The department may initiate suspension of a business license endorsement 25 or the right to obtain a business license endorsement under this section by sending the 26 person subject to the suspension a notice by certified mail, return receipt requested, or 27 by delivering the notice to the person. The notice must contain information that 28 informs the person of the grounds for suspension, the length of any suspension sought, 29 and the person's right to administrative review. A suspension begins 30 days after 30 receipt of notice described in this subsection unless the person delivers a timely 31 written request for a hearing to the department in the manner provided by regulations

01 of the department. If a hearing is requested under this subsection, an administrative 02 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 03 issues by using the preponderance of the evidence test and shall, to the extent they do 04 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 05 manner provided by regulations of the department. A hearing under this subsection is 06 limited to the following questions: 07 (1) was the person holding the business license endorsement, or an 08 agent or employee of the person while acting within the scope of the agency or 09 employment of the person, convicted by plea or judicial finding of violating 10 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 11 (2) if the department does not allege a conviction of AS 11.76.100, 12 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 13 person while acting within the scope of the agency or employment of the person, 14 violate a provision of (a) or (g) of this section; 15 (3) within the 24 months before the date of the department's notice 16 under this subsection, was the person, or an agent or employee of the person while 17 acting within the scope of the agency or employment of the person, convicted of 18 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 19 violating a provision of (a) or (g) of this section; 20 (4) did the person holding the business license endorsement establish 21 that the person holding the business license endorsement had adopted and enforced an 22 education, a compliance, and a disciplinary program for agents and employees of the 23 person as provided in (t) of this section; 24 (5) did the person holding the business license endorsement overcome 25 the rebuttable presumption established in (w) of this section; 26 (6) within five years before the date of the violation that is the subject 27 of the hearing, did the department establish that the person holding the business 28 license endorsement 29 (A) previously violated (a) or (g) of this section; 30 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 31 11.76.109 at a location or outlet in a location for which the person holds a

01 business license endorsement, or had an agent or employee previously violate 02 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 03 apply to a prior conviction that served to enhance a suspension period under 04 (d)(2) - (4) of this section; or 05 (C) engaged at a location owned by the person in other conduct 06 that was or is likely to result in the sale of tobacco, electronic smoking 07 products, or products containing nicotine to a person under 21 [19] years of 08 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 09 * Sec. 31. AS 43.70.075(t) is amended to read: 10 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 11 section, the department may reduce the license suspension period under (d) of this 12 section if the person holding the business license endorsement establishes that, before 13 the date of the violation, the person had 14 (1) adopted and enforced a written policy against selling cigarettes, 15 cigars, tobacco, products containing tobacco, electronic smoking products, or products 16 containing nicotine to a person under 21 [19] years of age in violation of 17 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 18 (2) informed the person's agents and employees of the applicable laws 19 and their requirements and conducted training on complying with the laws and 20 requirements; 21 (3) required each agent and employee of the person to sign a form 22 stating that the agent and employee has been informed of and understands the written 23 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 24 (4) determined that the agents and employees of the person had 25 sufficient experience and ability to comply with the written policy and requirements of 26 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 27 (5) required the agents and employees of the person to verify the age 28 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 29 electronic smoking products, or products containing nicotine by means of a valid 30 government issued photographic identification; 31 (6) established and enforced disciplinary sanctions for noncompliance

01 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 02 and 11.76.109; and 03 (7) monitored the compliance of the agents and employees of the 04 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 05 11.76.107, and 11.76.109. 06 * Sec. 32. AS 43.70.075(w) is amended to read: 07 (w) For purposes of (m)(5) of this section, a conviction for a violation of 08 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 09 person who holds the business license endorsement is rebuttably presumed to 10 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 11 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 12 product containing nicotine to a person under 21 [19] years of age. The person who 13 holds the business license endorsement may overcome the presumption by 14 establishing by clear and convincing evidence that the agent or employee did not 15 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 16 electronic smoking product, or a product containing nicotine to a person under 21 [19] 17 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 18 alleged in the citation issued to the agent or employee. The presentation of evidence 19 authorized by this subsection does not constitute a collateral attack on the conviction 20 described in this subsection. 21 * Sec. 33. AS 45.50.471(b) is amended by adding a new paragraph to read: 22 (58) marketing an electronic smoking product in a manner likely to 23 promote use of electronic smoking products by a person under 21 years of age; in this 24 paragraph, "electronic smoking product" has the meaning given in AS 43.50.390. 25 * Sec. 34. AS 11.76.100(e) is repealed. 26 * Sec. 35. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 APPLICABILITY. (a) The following sections apply to offenses committed on or after 29 the effective date of those sections: 30 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 31 (2) AS 11.76.105, as amended by sec. 2 of this Act;

01 (3) AS 11.76.105(d), enacted by sec. 3 of this Act; 02 (4) AS 11.76.106(b), as amended by sec. 4 of this Act; 03 (5) AS 11.76.109(a), as amended by sec. 5 of this Act; 04 (6) AS 11.76.109(b), as amended by sec. 6 of this Act; 05 (7) AS 11.76.109(d), as amended by sec. 7 of this Act; 06 (8) AS 11.76.109(g), as amended by sec. 8 of this Act; 07 (9) AS 11.81.900(b)(69), enacted by sec. 9 of this Act; and 08 (10) AS 43.50.325, enacted by sec. 19 of this Act. 09 (b) AS 11.76.100(a)(4), as amended by sec. 1 of this Act, and AS 11.76.109(a)(4), as 10 amended by sec. 5 of this Act, do not apply to a person 19 years of age or older who is 11 employed on the effective date of secs. 1 and 5 of this Act by a person with a business license 12 endorsement under AS 43.70.075. 13 * Sec. 36. This Act takes effect January 1, 2023.