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SB 89: "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, and products containing nicotine; raising the minimum age to purchase, sell, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to the taxation of electronic smoking products and vapor products; and providing for an effective date."

00 SENATE BILL NO. 89 01 "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, 02 and products containing nicotine; raising the minimum age to purchase, sell, exchange, 03 or possess tobacco, a product containing nicotine, or an electronic smoking product; 04 relating to the taxation of electronic smoking products and vapor products; and 05 providing for an effective date." 06 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 07 * Section 1. AS 11.76.100(a) is amended to read: 08 (a) A person commits the offense of selling or giving tobacco to a person 09 under 21 years of age [MINOR] if the person 10 (1) negligently sells a cigarette, a cigar, tobacco, or a product 11 containing tobacco to a person under 21 [19] years of age; 12 (2) is 21 [19] years of age or older and negligently exchanges or gives 13 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19]

01 years of age; 02 (3) maintains a vending machine that dispenses cigarettes, cigars, 03 tobacco, or products containing tobacco; or 04 (4) holds a business license endorsement under AS 43.70.075 and 05 allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 06 product containing tobacco. 07 * Sec. 2. AS 11.76.100(b) is amended to read: 08 (b) Notwithstanding the provisions of (a) of this section, a person who 09 maintains a vending machine is not in violation of (a)(3) of this section if the vending 10 machine is located 11 (1) on premises licensed as a beverage dispensary under AS 04.11.090, 12 licensed as a club under AS 04.11.110, or licensed as a package store under 13 AS 04.11.150; and 14 (A) as far as practicable from the primary entrance; and 15 (B) in a place that is directly and continually supervised by a 16 person employed on the licensed premises during the hours the vending 17 machine is accessible to the public; or 18 (2) in an employee break room or other controlled area of a private 19 work place that is not generally considered a public place and the room or area 20 contains a posted warning sign at least 11 inches by 14 inches indicating that 21 possession of tobacco by a person under 21 [19] years of age is prohibited under 22 AS 11.76.105. 23 * Sec. 3. AS 11.76.100(b), as amended by sec. 153, ch. 8, SLA 2022, is amended to read: 24 (b) Notwithstanding the provisions of (a) of this section, a person who 25 maintains a vending machine is not in violation of (a)(3) of this section if the vending 26 machine is located 27 (1) on premises licensed as a beverage dispensary under AS 04.09.200 28 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 29 under AS 04.09.230 and 30 (A) as far as practicable from the primary entrance; and 31 (B) in a place that is directly and continually supervised by a

01 person employed on the licensed premises during the hours the vending 02 machine is accessible to the public; or 03 (2) in an employee break room or other controlled area of a private 04 work place that is not generally considered a public place and the room or area 05 contains a posted warning sign at least 11 inches by 14 inches indicating that 06 possession of tobacco by a person under 21 [19] years of age is prohibited under 07 AS 11.76.105. 08 * Sec. 4. AS 11.76.105 is amended to read: 09 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 10 products containing nicotine by a person under 21 years of age [MINOR]. (a) A 11 person under 21 [19] years of age may not knowingly possess a cigarette, a cigar, 12 tobacco, a product containing tobacco, an electronic smoking product, or a product 13 containing nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A 14 PERSON WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.] 15 (b) In a prosecution under (a) of this section for possession of an electronic 16 smoking product or a product containing nicotine, it is an affirmative defense that the 17 electronic smoking product or product containing nicotine possessed by the person 18 under 21 [19] years of age was intended or expected to be consumed without being 19 combusted, and the electronic smoking product or product containing nicotine 20 (1) has been approved by the United States Food and Drug 21 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 22 or for other medical purposes; 23 (2) was being marketed and sold for the approved purposes; and 24 (3) was 25 (A) prescribed by a health care professional; 26 (B) given to the person by the person's parent or guardian; 27 (C) provided by a state-approved tobacco cessation program 28 administered by the Department of Health; or 29 (D) provided by a pharmacist to a person 18 years of age or 30 older without a prescription. 31 (c) Possession of tobacco, an electronic smoking product, or a product

01 containing nicotine by a person under 21 years of age [MINOR] is a violation 02 punishable by a fine of not more than $300. 03 * Sec. 5. AS 11.76.105 is amended by adding a new subsection to read: 04 (d) The supreme court shall establish by rule or order a schedule of bail 05 amounts that may be forfeited without court appearance for a violation of this section. 06 * Sec. 6. AS 11.76.106(a) is amended to read: 07 (a) Except as provided under (b) of this section, a person may not sell 08 cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, 09 or products containing nicotine 10 (1) unless the sale occurs in a manner that allows only the sales clerk 11 to control access to the cigarettes, cigars, tobacco, products containing tobacco, 12 electronic smoking products, or products containing nicotine; 13 (2) over the Internet to an individual for the individual's personal 14 consumption. 15 * Sec. 7. AS 11.76.106(b) is amended to read: 16 (b) Subsection (a) does not apply if the sale 17 (1) is by vending machine as provided under AS 11.76.100(b) or 18 11.76.109(d); 19 (2) is a wholesale transaction, the person is licensed as a manufacturer 20 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 21 transactions occur; 22 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 23 products containing tobacco, electronic smoking products, or products containing 24 nicotine and who restricts access to the premises to only those individuals who are 21 25 [19] years of age or older; or 26 (4) is of electronic smoking products over the Internet to a person 19 27 years of age or older. 28 * Sec. 8. AS 11.76.109(a) is amended to read: 29 (a) A person commits the offense of selling or giving an electronic smoking 30 product or a product containing nicotine to a person under 21 years of age [MINOR] 31 if the person

01 (1) negligently sells an electronic smoking product or a product 02 containing nicotine 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 an electronic smoking product or a product containing nicotine to a person under 21 05 [19] years of age; 06 (3) maintains a vending machine that dispenses electronic smoking 07 products or products containing nicotine; 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 an electronic smoking product or a 10 product containing nicotine. 11 * Sec. 9. AS 11.76.109(b) is amended to read: 12 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 13 gift to a person under 21 [19] years of age of an electronic smoking product or a 14 product containing nicotine that is intended or expected to be consumed without being 15 combusted if the electronic smoking product or product containing nicotine 16 (1) has been approved by the United States Food and Drug 17 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 18 or for other medical purposes; 19 (2) is being marketed and sold solely for the approved purposes; and 20 (3) is 21 (A) prescribed by a health care professional; 22 (B) given to a person by the person's parent or legal guardian; 23 (C) provided by a state-approved tobacco cessation program 24 administered by the Department of Health; or 25 (D) provided by a pharmacist to a person 18 years of age or 26 older without a prescription. 27 * Sec. 10. AS 11.76.109(d) is amended to read: 28 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 29 machine is not in violation of (a)(3) of this section if the vending machine is located 30 (1) on premises licensed as a beverage dispensary under AS 04.11.090, 31 licensed as a club under AS 04.11.110, or licensed as a package store under

01 AS 04.11.150, and is located 02 (A) as far as practicable from the primary entrance; and 03 (B) in a place that is directly and continually supervised by a 04 person employed on the licensed premises during the hours the vending 05 machine is accessible to the public; or 06 (2) in an employee break room or other controlled area of a private 07 work place that is not generally considered a public place and the room or area 08 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 09 possession of electronic smoking products or products containing nicotine by a person 10 under 21 [19] years of age without a prescription is prohibited under AS 11.76.109. 11 * Sec. 11. AS 11.76.109(d), as amended by sec. 155, ch. 8, SLA 2022, 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. 12. 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. 13. AS 11.81.900(b) is amended by adding a new paragraph to read:

01 (69) "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. 14. AS 43.50.070 is amended to read: 05 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 06 (a) The department may suspend, revoke, or refuse to renew a license issued under this 07 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 08 11.76.109, or a violation of this chapter or a regulation of the department adopted 09 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 10 was issued; or (3) if a licensee negligently sells tobacco or products containing 11 tobacco to a person who is required to, but does not, hold a license endorsement under 12 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 13 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 14 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 15 products, or electronic smoking products to be sold, during the period of the 16 suspension or revocation on the premises occupied or controlled by that person. A 17 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 18 surrender, renewal, or extension of a license issued under this chapter. The department 19 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 20 that a hearing officer of the department, rather than a hearing officer assigned under 21 AS 44.62.350, may conduct hearings. 22 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 23 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 24 * Sec. 15. AS 43.50.105(b) is amended to read: 25 (b) A person who is licensed under this chapter may not ship or cause to be 26 shipped cigarettes to a person in this state unless the person receiving the cigarettes 27 (1) is licensed under this chapter; 28 (2) holds a business license endorsement under AS 43.70.075; 29 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 30 1311 or 19 U.S.C. 1555; 31 (4) is an instrumentality of the federal government or an Indian tribal

01 organization authorized by law to possess cigarettes not taxed under this chapter; or 02 (5) is an individual 21 [19] years of age or older and the individual's 03 age was verified at the time of purchase by a third-party verification service, the 04 individual is receiving the cigarettes for personal consumption, and the tax imposed 05 on the cigarettes under this chapter has been paid. 06 * Sec. 16. AS 43.50.105(c) is amended to read: 07 (c) A common or contract carrier may not knowingly transport cigarettes to a 08 person in this state unless the person 09 (1) shipping the cigarettes is licensed under this chapter and, before 10 shipment, provides the common or contract carrier with a copy of the person's current 11 license issued by the department and 12 (A) an affidavit from the intended recipient certifying that the 13 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 14 (5)] of this section; or 15 (B) the common or contract carrier verifies the age of the 16 recipient as 21 years of age or older before delivery; or 17 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 18 this section or is licensed under this chapter and, before receipt, provides the common 19 or contract carrier with a copy of the person's current license issued by the department. 20 * Sec. 17. AS 43.50.150(c) is amended to read: 21 (c) The department may enter into an agreement with a municipality that 22 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 23 products for the purpose of jointly auditing a person liable for a tax under 24 AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 25 cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 26 * Sec. 18. 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 (a) A person who is not licensed under this chapter may not ship or cause to be 29 shipped a tobacco product to a person in this state unless the person receiving the 30 tobacco product is 31 (1) licensed under this chapter;

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

01 common or contract carrier with a copy of the person's current license issued by the 02 department. 03 (d) If a tobacco product is transported by a common or contract carrier to a 04 home or residence, it is rebuttably presumed that the common or contract carrier knew 05 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 06 of this section, unless the person shipping the tobacco product has satisfied the 07 requirements in (c)(1) of this section. 08 (e) A person, other than a common or contract carrier, may not knowingly 09 transport a tobacco product to a person in this state, unless the recipient of the tobacco 10 product is a person described under (b)(1) - (5) of this section. 11 (f) A person who ships or causes to be shipped a tobacco product to a person 12 in this state shall plainly and visibly mark the container or wrapping with the words 13 "tobacco product" if the tobacco product is shipped in a container or wrapping other 14 than the manufacturer's original container or wrapping of the tobacco product. 15 (g) A person who violates the provisions of this section is guilty of a class A 16 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 17 tobacco product. 18 (h) In addition to the criminal penalty under (g) of this section, the department 19 may assess a civil penalty of not more than $5,000 for each violation of this section. 20 (i) A person who violates the provisions of this section is jointly and severally 21 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 22 permitted by the Constitution of the United States, a person who violates the 23 provisions of this section is required to collect the taxes and pay them to the 24 department. 25 * Sec. 19. AS 43.50 is amended by adding new sections to read: 26 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 27 Sec. 43.50.850. Tax levied. A tax is levied on closed electronic smoking 28 products and vapor products in the state. The tax is 25 percent of the sales price of a 29 closed electronic smoking product or a vapor product. 30 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 31 (1) a closed electronic smoking product or vapor product

01 (A) sold in a facility operated by one of the uniformed services 02 of the United States; 03 (B) approved for sale by the United States Food and Drug 04 Administration as a drug, drug product, including a drug product used to treat 05 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 06 (Federal Food, Drug, and Cosmetic Act); 07 (C) if the United States Constitution or other federal laws 08 prohibit the levying of the tax on the product by the state; 09 (D) designed, marketed, and sold for the purpose of vaporizing 10 or aerosolizing marijuana, marijuana products, hemp, or hemp products and 11 intended for sale only in a retail marijuana store; 12 (2) marijuana or marijuana products subject to tax under AS 43.61 if 13 the marijuana or marijuana products do not contain nicotine; or 14 (3) hemp or hemp products if the hemp or hemp products do not 15 contain nicotine. 16 (b) In this section, 17 (1) "marijuana," "marijuana products," and "retail marijuana store" 18 have the meanings given in AS 17.38.900; 19 (2) "uniformed services" has the meaning given in 5 U.S.C. 2101. 20 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 21 person must be licensed by the department if the person engages in business as a 22 retailer of an electronic smoking product. 23 (b) The department, upon application and payment of a fee of $50, shall issue 24 a license for one year to a person who applies for a license under (a) of this section. 25 (c) The department may refuse to issue a license under this section if 26 (1) there is reasonable cause to believe the information submitted in 27 the application is false or misleading and is not made in good faith; 28 (2) the applicant is not in good standing under AS 10.06 (Alaska 29 Corporations Code); or 30 (3) a tax levied under this chapter is due and unpaid by the applicant. 31 (d) A license issued under this section must include the name and address of

01 the licensee, the type of business to be conducted, and the year for which the license is 02 issued. 03 (e) The department may renew a license issued under this section for a fee of 04 $50 if the applicant 05 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 06 and 07 (2) does not have unpaid taxes under this chapter. 08 (f) The department may suspend, revoke, or refuse to renew a license issued 09 under this section as provided in AS 43.50.070. 10 (g) A license required by this section is in addition to any other license 11 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 12 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 13 (h) A license issued under this section is not assignable or transferable, except 14 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 15 if the business of the licensee is transferred to another by operation of law, the 16 department may extend the license for a limited time to the executor, administrator, 17 trustee, receiver, or transferee. 18 (i) A person licensed under this section may not 19 (1) distribute an electronic smoking product designed or packaged so 20 as not to be clearly recognizable as an electronic smoking product; or 21 (2) market an electronic smoking product, including a flavored 22 electronic smoking product, in a manner likely to promote use of the electronic 23 smoking product by a person under 21 years of age. 24 Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 25 licensee shall file a return with the department. The return must state the number or 26 amount of closed electronic smoking products, vapor products, and other electronic 27 smoking products sold by the licensee during the preceding calendar month, the 28 selling price of the electronic smoking products, and the amount of tax imposed on the 29 closed electronic smoking products and vapor products. 30 Sec. 43.50.870. Tax credits and refunds. The department shall adopt 31 procedures for a refund or credit to a licensee of the tax paid for closed electronic

01 smoking products or vapor products that have become unfit for sale or are destroyed if 02 the licensee provides proof acceptable to the department that the products have not 03 been and will not be sold in this state. 04 Sec. 43.50.875. Records. A licensee shall keep a complete and accurate record 05 of all electronic smoking products of the licensee, including purchase prices, sales 06 prices, the names and addresses of the sellers, the dates of delivery, the quantities of 07 electronic smoking products, and the trade names and brands. Statements and records 08 required by this section must be in the form prescribed by the department, preserved 09 for three years, and available for inspection upon demand by the department. 10 Sec. 43.50.880. Disposition of proceeds. The department shall separately 11 account for tax collected on closed electronic smoking products and vapor products 12 under AS 43.50.850. The annual estimated balance in the account may be appropriated 13 by the legislature to provide for 14 (1) health care, health research, health promotion, and health 15 education; or 16 (2) health programs, education, or advertising related to the hazards of 17 electronic smoking products. 18 Sec. 43.50.885. Restrictions on shipping or transporting electronic 19 smoking products. (a) A person who is not licensed under this chapter may not ship 20 or cause to be shipped an electronic smoking product to a person in this state unless 21 the person receiving the electronic smoking product is 22 (1) licensed under this chapter; 23 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 24 or 19 U.S.C. 1555; or 25 (3) an instrumentality of the federal government or an Indian tribal 26 organization authorized by law to possess electronic smoking products not taxed under 27 this chapter. 28 (b) A person who is licensed under this chapter may not ship or cause to be 29 shipped an electronic smoking product to a person in this state unless the person 30 receiving the electronic smoking product 31 (1) is licensed under this chapter;

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

01 the electronic smoking product is a person described under (b)(1) - (5) of this section. 02 (f) A person who ships or causes to be shipped an electronic smoking product 03 to a person in this state shall plainly and visibly mark the container or wrapping with 04 the words "electronic smoking product" if the electronic smoking product is shipped in 05 a container or wrapping other than the manufacturer's original container or wrapping 06 of the electronic smoking product. 07 (g) A person who violates the provisions of this section is guilty of a class A 08 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 09 electronic smoking product. 10 (h) In addition to the criminal penalty under (g) of this section, the department 11 may assess a civil penalty of not more than $5,000 for each violation of this section. 12 (i) A person who violates the provisions of this section is jointly and severally 13 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 14 Constitution of the United States, a person who violates the provisions of this section 15 is required to collect the taxes and pay them to the department. 16 Sec. 43.50.890. Restrictions on electronic smoking products. A person may 17 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 18 for sale or distribution in this state, or import or cause to be imported into this state for 19 sale or distribution in this state only electronic smoking products 20 (1) for which the component vapor product 21 (A) has a nicotine content of less than 20 milligrams of nicotine 22 for each milliliter of vapor product; 23 (B) is protected from breakage and leakage; 24 (C) does not contain added vitamins or other additives 25 marketed to create the impression of health benefits; in this subparagraph, 26 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 27 stimulants, and colorants; 28 (2) that are packaged to be child- and tamper-proof; and 29 (3) that are labeled to inform consumers about all vapor product 30 ingredients and nicotine content. 31 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price"

01 (1) means the total amount of consideration, including cash, credit, 02 property, and services, for which an electronic smoking product is purchased or sold, 03 valued in money, whether received in money or otherwise, without any deduction for 04 (A) the seller's cost of the electronic smoking product sold; 05 (B) the cost of materials used, labor or service cost, interest, 06 losses, cost of transportation, taxes, or other expenses of the seller; 07 (C) charges by the seller for services necessary to complete the 08 sale; 09 (D) delivery charges; 10 (2) does not include 11 (A) discounts, including cash or coupons that are not 12 reimbursed by a third party, that are allowed by a seller and taken by a 13 purchaser on a sale; 14 (B) interest, financing, and carrying charges from credit 15 extended on the sale of an electronic smoking product if the amount is 16 separately stated on the invoice, bill of sale, or similar document given to the 17 purchaser; and 18 (C) taxes legally imposed directly on the consumer that are 19 separately stated on the invoice, bill of sale, or similar document given to the 20 purchaser. 21 Article 9. General Provisions. 22 Sec. 43.50.990. Definitions. In this chapter, 23 (1) "closed electronic smoking product" means a single-use electronic 24 smoking product that includes a pre-filled disposable cartridge of vapor product; 25 (2) "electronic smoking product" 26 (A) includes 27 (i) a product that can be used to deliver aerosolized or 28 vaporized nicotine to the person inhaling; 29 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 30 or other similar device of any shape; 31 (iii) a component, part, accessory, or device related to

01 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 02 device of any shape; 03 (iv) a vapor product used in a device or product 04 described in (i) or (ii) of this subparagraph; 05 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 06 or other similar device of any shape sold together with a solution, vapor 07 product, or other similar product as a disposable nonrefillable unit; 08 (B) does not include a 09 (i) battery, battery charger, heating element, electronic 10 coil, or mouthpiece intended for use in an electronic smoking product, 11 when sold separately from the electronic smoking product; 12 (ii) cartridge, pod, tank, or similar container intended to 13 transport a vapor product, if sold empty; 14 (3) "nicotine" has the meaning given in AS 11.81.900(b); 15 (4) "retailer" means a person in the state who is engaged in the 16 business of electronic smoking products at retail; 17 (5) "vapor product" means a substance intended to be aerosolized or 18 vaporized during the use of an electronic smoking product. 19 * Sec. 20. AS 43.70.075(f) is amended to read: 20 (f) A person who holds a license endorsement issued under this section shall 21 post on the licensed premises a warning sign as described in this subsection. A 22 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 23 must read: "The sale of electronic smoking products or products containing nicotine 24 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 25 person holding an endorsement issued under this section shall display the warning sign 26 in a manner conspicuous to a person purchasing or consuming tobacco products, 27 electronic smoking products, or products containing nicotine on the licensed premises. 28 The department shall make available the warning signs required under this section to a 29 person who holds an endorsement issued under this section or a person who requests 30 the sign with the intention of displaying it. 31 * Sec. 21. AS 43.70.075(m) is amended to read:

01 (m) The department may initiate suspension of a business license endorsement 02 or the right to obtain a business license endorsement under this section by sending the 03 person subject to the suspension a notice by certified mail, return receipt requested, or 04 by delivering the notice to the person. The notice must contain information that 05 informs the person of the grounds for suspension, the length of any suspension sought, 06 and the person's right to administrative review. A suspension begins 30 days after 07 receipt of notice described in this subsection unless the person delivers a timely 08 written request for a hearing to the department in the manner provided by regulations 09 of the department. If a hearing is requested under this subsection, an administrative 10 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 11 issues by using the preponderance of the evidence test and shall, to the extent they do 12 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 13 manner provided by regulations of the department. A hearing under this subsection is 14 limited to the following questions: 15 (1) was the person holding the business license endorsement, or an 16 agent or employee of the person while acting within the scope of the agency or 17 employment of the person, convicted by plea or judicial finding of violating 18 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 19 (2) if the department does not allege a conviction of AS 11.76.100, 20 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 21 person while acting within the scope of the agency or employment of the person, 22 violate a provision of (a) or (g) of this section; 23 (3) within the 24 months before the date of the department's notice 24 under this subsection, was the person, or an agent or employee of the person while 25 acting within the scope of the agency or employment of the person, convicted of 26 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 27 violating a provision of (a) or (g) of this section; 28 (4) did the person holding the business license endorsement establish 29 that the person holding the business license endorsement had adopted and enforced an 30 education, a compliance, and a disciplinary program for agents and employees of the 31 person as provided in (t) of this section;

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

01 (4) determined that the agents and employees of the person had 02 sufficient experience and ability to comply with the written policy and requirements of 03 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 04 (5) required the agents and employees of the person to verify the age 05 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 06 electronic smoking products, or products containing nicotine by means of a valid 07 government issued photographic identification; 08 (6) established and enforced disciplinary sanctions for noncompliance 09 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 10 and 11.76.109; and 11 (7) monitored the compliance of the agents and employees of the 12 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 13 11.76.107, and 11.76.109. 14 * Sec. 23. AS 43.70.075(w) is amended to read: 15 (w) For purposes of (m)(5) of this section, a conviction for a violation of 16 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 17 person who holds the business license endorsement is rebuttably presumed to 18 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 19 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 20 product containing nicotine to a person under 21 [19] years of age. The person who 21 holds the business license endorsement may overcome the presumption by 22 establishing by clear and convincing evidence that the agent or employee did not 23 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 24 electronic smoking product, or a product containing nicotine to a person under 21 [19] 25 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 26 alleged in the citation issued to the agent or employee. The presentation of evidence 27 authorized by this subsection does not constitute a collateral attack on the conviction 28 described in this subsection. 29 * Sec. 24. AS 45.50.471(b) is amended by adding a new paragraph to read: 30 (58) marketing an electronic smoking product in a manner likely to 31 promote use of electronic smoking products by a person under 21 years of age; in this

01 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 02 * Sec. 25. AS 47.12.030(b) is amended to read: 03 (b) When a minor is accused of violating a statute specified in this subsection, 04 other than a statute the violation of which is a felony, this chapter and the Alaska 05 Delinquency Rules do not apply and the minor accused of the offense shall be 06 charged, prosecuted, and sentenced in the district court in the same manner as an 07 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 08 subsection, the minor's parent, guardian, or legal custodian shall be present at all 09 proceedings; the provisions of this subsection apply when a minor is accused of 10 violating 11 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 12 a municipality; 13 (2) AS 11.76.105, relating to the possession of tobacco by a person 14 under 21 [19] years of age; 15 (3) a fish and game statute or regulation under AS 16; 16 (4) a parks and recreational facilities statute or regulation under 17 AS 41.21; 18 (5) [REPEALED] 19 (6) a municipal curfew ordinance, whether adopted under 20 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 21 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 22 the violation of a municipal curfew ordinance, the court shall allow a defendant the 23 option of performing community work; the value of the community work, which may 24 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 25 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 26 or work that, on the recommendation of the municipal or borough assembly, city 27 council, or traditional village council of the defendant's place of residence, would 28 benefit persons within the municipality or village who are elderly or disabled; 29 (7) AS 04.16.050, relating to consumption, possession, or control of 30 alcohol by a person under 21 years of age. 31 * Sec. 26. AS 11.76.100(e) and 11.76.106(b)(4) are repealed.

01 * Sec. 27. The uncodified law of the State of Alaska is amended by adding a new section to 02 read: 03 APPLICABILITY. (a) The following sections apply to offenses committed on or after 04 the effective date of those sections: 05 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 06 (2) AS 11.76.100(b), as amended by secs. 2 and 3 of this Act; 07 (3) AS 11.76.105, as amended by sec. 4 of this Act; 08 (4) AS 11.76.105(d), enacted by sec. 5 of this Act; 09 (5) AS 11.76.106(a), as amended by sec. 6 of this Act; 10 (6) AS 11.76.106(b), as amended by sec. 7 of this Act; 11 (7) AS 11.76.109(a), as amended by sec. 8 of this Act; 12 (8) AS 11.76.109(b), as amended by sec. 9 of this Act; 13 (9) AS 11.76.109(d), as amended by secs. 10 and 11 of this Act; 14 (10) AS 11.76.109(g), as amended by sec. 12 of this Act; 15 (11) AS 11.81.900(b)(69), enacted by sec. 13 of this Act; 16 (12) AS 43.50.325, enacted by sec. 18 of this Act; 17 (13) AS 43.50.885, enacted by sec. 19 of this Act; and 18 (14) AS 47.12.030(b), as amended by sec. 25 of this Act. 19 (b) AS 11.76.100(a)(4), as amended by sec. 1 of this Act, and AS 11.76.109(a)(4), as 20 amended by sec. 8 of this Act, do not apply to a person 19 years of age or older who is 21 employed on the effective date of secs. 1 and 8 of this Act by a person with a business license 22 endorsement under AS 43.70.075. 23 * Sec. 28. Sections 3 and 11 of this Act take effect on the effective date of secs. 153 and 24 155, ch. 8, SLA 2022. 25 * Sec. 29. Except as provided in sec. 28 of this Act, this Act takes effect July 1, 2023.