CSSB 89(L&C): "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, and products containing nicotine; raising the minimum age to purchase, 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 CS FOR SENATE BILL NO. 89(L&C) 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 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 19 years of age to sell a cigarette, a cigar, tobacco, or a product 06 containing tobacco. 07 * Sec. 2. AS 11.76.100(b), as amended by sec. 153, ch. 8, SLA 2022, 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 04.09.200 12 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 13 under AS 04.09.230 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 11.76.105 is amended to read: 24 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 25 products containing nicotine by a person under 21 years of age [MINOR]. (a) 26 Except as provided in (e) of this section, a [A] person under 21 [19] years of age 27 may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 28 an electronic smoking product, or a product containing nicotine in this state. [THIS 29 SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 30 ADULT CORRECTIONAL FACILITY.] 31 (b) In a prosecution under (a) of this section for possession of an electronic
01 smoking product or a product containing nicotine, it is an affirmative defense that the 02 electronic smoking product or product containing nicotine possessed by the person 03 under 21 [19] years of age was intended or expected to be consumed without being 04 combusted, and the electronic smoking product or product containing nicotine 05 (1) has been approved by the United States Food and Drug 06 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 07 or for other medical purposes; 08 (2) was being marketed and sold for the approved purposes; and 09 (3) was 10 (A) prescribed by a health care professional; 11 (B) given to the person by the person's parent or guardian; 12 (C) provided by a state-approved tobacco cessation program 13 administered by the Department of Health; or 14 (D) provided by a pharmacist to a person 18 years of age or 15 older without a prescription. 16 (c) Possession of tobacco, an electronic smoking product, or a product 17 containing nicotine by a person under 21 years of age [MINOR] is a violation 18 punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 19 place of any fine imposed for the violation of this subsection, the court may refer 20 a defendant, at the request of the defendant, to a tobacco education program. 21 * Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 22 (d) The supreme court shall establish by rule or order a schedule of bail 23 amounts that may be forfeited without court appearance for a violation of this section. 24 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 25 of age who is employed by a person with a business license endorsement under 26 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 27 product containing tobacco, an electronic smoking product, or a product containing 28 nicotine. 29 * Sec. 5. AS 11.76.106(a) is amended to read: 30 (a) Except as provided under (b) of this section, a person may not sell 31 cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products,
01 or products containing nicotine 02 (1) unless the sale occurs in a manner that allows only the sales clerk 03 to control access to the cigarettes, cigars, tobacco, products containing tobacco, 04 electronic smoking products, or products containing nicotine; 05 (2) over the Internet to an individual for the individual's personal 06 consumption. 07 * Sec. 6. AS 11.76.106(b) is amended to read: 08 (b) Subsection (a) does not apply if the sale 09 (1) is by vending machine as provided under AS 11.76.100(b) or 10 11.76.109(d); 11 (2) is a wholesale transaction, the person is licensed as a manufacturer 12 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 13 transactions occur; 14 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 15 products containing tobacco, electronic smoking products, or products containing 16 nicotine and who restricts access to the premises to only those individuals who are 21 17 [19] years of age or older; or 18 (4) is of electronic smoking products over the Internet to a person 19 19 years of age or older. 20 * Sec. 7. AS 11.76.109(a) is amended to read: 21 (a) A person commits the offense of selling or giving an electronic smoking 22 product or a product containing nicotine to a person under 21 years of age [MINOR] 23 if the person 24 (1) negligently sells an electronic smoking product or a product 25 containing nicotine to a person under 21 [19] years of age; 26 (2) is 21 [19] years of age or older and negligently exchanges or gives 27 an electronic smoking product or a product containing nicotine to a person under 21 28 [19] years of age; 29 (3) maintains a vending machine that dispenses electronic smoking 30 products or products containing nicotine; or 31 (4) holds a business license endorsement under AS 43.70.075 and
01 allows a person under 19 years of age to sell an electronic smoking product or a 02 product containing nicotine. 03 * Sec. 8. AS 11.76.109(b) is amended to read: 04 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 05 gift to a person under 21 [19] years of age of an electronic smoking product or a 06 product containing nicotine that is intended or expected to be consumed without being 07 combusted if the electronic smoking product or product containing nicotine 08 (1) has been approved by the United States Food and Drug 09 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 10 or for other medical purposes; 11 (2) is being marketed and sold solely for the approved purposes; and 12 (3) is 13 (A) prescribed by a health care professional; 14 (B) given to a person by the person's parent or legal guardian; 15 (C) provided by a state-approved tobacco cessation program 16 administered by the Department of Health; or 17 (D) provided by a pharmacist to a person 18 years of age or 18 older without a prescription. 19 * Sec. 9. AS 11.76.109(d), as amended by sec. 155, ch. 8, SLA 2022, is amended to read: 20 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 21 machine is not in violation of (a)(3) of this section if the vending machine is located 22 (1) on premises licensed as a beverage dispensary under AS 04.09.200 23 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 24 under AS 04.09.230, and is located 25 (A) as far as practicable from the primary entrance; and 26 (B) in a place that is directly and continually supervised by a 27 person employed on the licensed premises during the hours the vending 28 machine is accessible to the public; or 29 (2) in an employee break room or other controlled area of a private 30 work place that is not generally considered a public place and the room or area 31 contains a posted warning sign at least 11 inches by 8.5 inches indicating that
01 possession of electronic smoking products or products containing nicotine by a person 02 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 03 [THIS SECTION]. 04 * Sec. 10. AS 11.76.109(g) is amended to read: 05 (g) Selling or giving an electronic smoking product or a product containing 06 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 07 conviction, is punishable by a fine of not less than $300. 08 * Sec. 11. AS 11.81.900(b) is amended by adding a new paragraph to read: 09 (69) "nicotine" includes a chemical or chemical compound intended, 10 when introduced into the human body, to mimic or simulate the effect of nicotine from 11 tobacco. 12 * Sec. 12. AS 43.50.070 is amended to read: 13 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 14 (a) The department may suspend, revoke, or refuse to renew a license issued under this 15 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 16 11.76.109, or a violation of this chapter or a regulation of the department adopted 17 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 18 was issued; or (3) if a licensee negligently sells tobacco or products containing 19 tobacco to a person who is required to, but does not, hold a license endorsement under 20 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 21 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 22 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 23 products, or electronic smoking products to be sold, during the period of the 24 suspension or revocation on the premises occupied or controlled by that person. A 25 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 26 surrender, renewal, or extension of a license issued under this chapter. The department 27 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 28 that a hearing officer of the department, rather than a hearing officer assigned under 29 AS 44.62.350, may conduct hearings. 30 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 31 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900.
01 * Sec. 13. AS 43.50.105(b) is amended to read: 02 (b) A person who is licensed under this chapter may not ship or cause to be 03 shipped cigarettes to a person in this state unless the person receiving the cigarettes 04 (1) is licensed under this chapter; 05 (2) holds a business license endorsement under AS 43.70.075; 06 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 07 1311 or 19 U.S.C. 1555; 08 (4) is an instrumentality of the federal government or an Indian tribal 09 organization authorized by law to possess cigarettes not taxed under this chapter; or 10 (5) is an individual 21 [19] years of age or older and the individual's 11 age was verified at the time of purchase by a third-party verification service, the 12 individual is receiving the cigarettes for personal consumption, and the tax imposed 13 on the cigarettes under this chapter has been paid. 14 * Sec. 14. AS 43.50.105(c) is amended to read: 15 (c) A common or contract carrier may not knowingly transport cigarettes to a 16 person in this state unless the person 17 (1) shipping the cigarettes is licensed under this chapter and, before 18 shipment, provides the common or contract carrier with a copy of the person's current 19 license issued by the department and 20 (A) an affidavit from the intended recipient certifying that the 21 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 22 (5)] of this section; or 23 (B) the common or contract carrier verifies the age of the 24 recipient as 21 years of age or older before delivery; or 25 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 26 this section or is licensed under this chapter and, before receipt, provides the common 27 or contract carrier with a copy of the person's current license issued by the department. 28 * Sec. 15. AS 43.50.150(c) is amended to read: 29 (c) The department may enter into an agreement with a municipality that 30 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 31 products for the purpose of jointly auditing a person liable for a tax under
01 AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 02 cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 03 * Sec. 16. AS 43.50 is amended by adding a new section to read: 04 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 05 (a) A person who is not licensed under this chapter may not ship or cause to be 06 shipped a tobacco product to a person in this state unless the person receiving the 07 tobacco product is 08 (1) licensed under this chapter; 09 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 10 or 19 U.S.C. 1555; or 11 (3) an instrumentality of the federal government or an Indian tribal 12 organization authorized by law to possess tobacco products not taxed under this 13 chapter. 14 (b) A person who is licensed under this chapter may not ship or cause to be 15 shipped a tobacco product to a person in this state unless the person receiving the 16 tobacco product 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 tobacco products not taxed under this 23 chapter; or 24 (5) is an individual 21 years of age or older and the individual's age 25 was verified at the time of purchase though a third-party verification service, the 26 individual is receiving the tobacco product for personal consumption, and the tax 27 imposed on the tobacco product under this chapter has been paid. 28 (c) A common or contract carrier may not knowingly transport a tobacco 29 product to a person in this state unless the person 30 (1) shipping the tobacco product is licensed under this chapter and, 31 before shipment, provides the common or contract carrier with a copy of the person's
01 current license issued by the department and 02 (A) an affidavit from the intended recipient certifying that the 03 person receiving the tobacco product is a person described under (b)(1) - (4) of 04 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 tobacco product is a person described under (a)(2) or 08 (3) of this section or is licensed under this chapter and, before receipt, provides the 09 common or contract carrier with a copy of the person's current license issued by the 10 department. 11 (d) If a tobacco product is transported by a common or contract carrier to a 12 home or residence, it is rebuttably presumed that the common or contract carrier knew 13 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 14 of this section, unless the person shipping the tobacco product has satisfied the 15 requirements in (c)(1) of this section. 16 (e) A person, other than a common or contract carrier, may not knowingly 17 transport a tobacco product to a person in this state, unless the recipient of the tobacco 18 product is a person described under (b)(1) - (5) of this section. 19 (f) A person who ships or causes to be shipped a tobacco product to a person 20 in this state shall plainly and visibly mark the container or wrapping with the words 21 "tobacco product" if the tobacco product is shipped in a container or wrapping other 22 than the manufacturer's original container or wrapping of the tobacco product. 23 (g) A person who violates the provisions of this section is guilty of a class A 24 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 25 tobacco product. 26 (h) In addition to the criminal penalty under (g) of this section, the department 27 may assess a civil penalty of not more than $5,000 for each violation of this section. 28 (i) A person who violates the provisions of this section is jointly and severally 29 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 30 permitted by the Constitution of the United States, a person who violates the 31 provisions of this section is required to collect the taxes and pay them to the
01 department. 02 * Sec. 17. AS 43.50 is amended by adding new sections to read: 03 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 04 Sec. 43.50.850. Tax levied. A tax is levied on closed electronic smoking 05 products and vapor products in the state. The tax is 25 percent of the retail sales price 06 of a closed electronic smoking product or a vapor product. 07 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 08 (1) a closed electronic smoking product or vapor product 09 (A) sold in a facility operated by one of the uniformed services 10 of the United States; 11 (B) approved for sale by the United States Food and Drug 12 Administration as a drug, drug product, including a drug product used to treat 13 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 14 (Federal Food, Drug, and Cosmetic Act); 15 (C) if the United States Constitution or other federal laws 16 prohibit the levying of the tax on the product by the state; 17 (D) designed, marketed, and sold for the purpose of vaporizing 18 or aerosolizing marijuana, marijuana products, hemp, or hemp products and 19 intended for sale only in a retail marijuana store; 20 (2) marijuana or marijuana products subject to tax under AS 43.61 if 21 the marijuana or marijuana products do not contain nicotine; or 22 (3) hemp or hemp products if the hemp or hemp products do not 23 contain nicotine. 24 (b) In this section, 25 (1) "hemp" and "hemp products" mean hemp or a hemp product 26 produced by an individual registered under AS 03.05.076; 27 (2) "marijuana," "marijuana products," and "retail marijuana store" 28 have the meanings given in AS 17.38.900; 29 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 30 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 31 person must be licensed by the department if the person engages in business as a
01 retailer of an electronic smoking product. 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 license under (a) of this section. 04 (c) The department may refuse to issue a license under this section if 05 (1) there is reasonable cause to believe the information submitted in 06 the application is false or misleading and is not made in good faith; 07 (2) the applicant is not in good standing under AS 10.06 (Alaska 08 Corporations Code); or 09 (3) a tax levied under this chapter is due and unpaid by the applicant. 10 (d) A license issued under this section must include the name and address of 11 the licensee, the type of business to be conducted, and the year for which the license is 12 issued. 13 (e) The department may renew a license issued under this section for a fee of 14 $50 if the applicant 15 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 16 and 17 (2) does not have unpaid taxes under this chapter. 18 (f) The department may suspend, revoke, or refuse to renew a license issued 19 under this section as provided in AS 43.50.070. 20 (g) A license required by this section is in addition to any other license 21 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 22 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 23 (h) A license issued under this section is not assignable or transferable, except 24 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 25 if the business of the licensee is transferred to another by operation of law, the 26 department may extend the license for a limited time to the executor, administrator, 27 trustee, receiver, or transferee. 28 (i) A person licensed under this section may not 29 (1) distribute an electronic smoking product designed or packaged so 30 as not to be clearly recognizable as an electronic smoking product; or 31 (2) market an electronic smoking product, including a flavored
01 electronic smoking product, in a manner likely to promote use of the electronic 02 smoking product by a person under 21 years of age. 03 Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 04 licensee shall file a return with the department. The return must state the number or 05 amount of closed electronic smoking products, vapor products, and other electronic 06 smoking products sold by the licensee during the preceding calendar month, the 07 selling price of the electronic smoking products, and the amount of tax imposed on the 08 closed electronic smoking products and vapor products. 09 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 10 of all electronic smoking products of the licensee, including purchase prices, sales 11 prices, the names and addresses of the sellers, the dates of delivery, the quantities of 12 electronic smoking products, and the trade names and brands. Statements and records 13 required by this section must be in the form prescribed by the department, preserved 14 for three years, and available for inspection upon demand by the department. 15 Sec. 43.50.875. Disposition of proceeds. The department shall separately 16 account for tax collected on closed electronic smoking products and vapor products 17 under AS 43.50.850. The annual estimated balance in the account may be appropriated 18 by the legislature to provide for 19 (1) health care, health research, health promotion, and health 20 education; 21 (2) health programs, education, or advertising related to the hazards of 22 electronic smoking products; or 23 (3) efforts to prevent or detect the use of tobacco or electronic smoking 24 products in a school, including the hiring of health advocates or for electronic smoking 25 product detection devices. 26 Sec. 43.50.880. Restrictions on shipping or transporting electronic 27 smoking products. (a) A person who is not licensed under this chapter may not ship 28 or cause to be shipped an electronic smoking product to a person in this state unless 29 the person receiving the electronic smoking product is 30 (1) licensed under this chapter; 31 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311
01 or 19 U.S.C. 1555; or 02 (3) an instrumentality of the federal government or an Indian tribal 03 organization authorized by law to possess electronic smoking products not taxed under 04 this chapter. 05 (b) A person who is licensed under this chapter may not ship or cause to be 06 shipped an electronic smoking product to a person in this state unless the person 07 receiving the electronic smoking product 08 (1) is licensed under this chapter; 09 (2) holds a business license endorsement under AS 43.70.075; 10 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 11 1311 or 19 U.S.C. 1555; 12 (4) is an instrumentality of the federal government or an Indian tribal 13 organization authorized by law to possess electronic smoking products not taxed under 14 this chapter; or 15 (5) is an individual 21 years of age or older and the individual's age 16 was verified at the time of purchase though a third-party verification service, the 17 individual is receiving the electronic smoking product for personal consumption, and 18 the tax imposed on the electronic smoking product under this chapter has been paid. 19 (c) A common or contract carrier may not knowingly transport an electronic 20 smoking product to a person in this state unless the person 21 (1) shipping the electronic smoking product is licensed under this 22 chapter and, before shipment, provides the common or contract carrier with a copy of 23 the person's current license issued by the department and 24 (A) an affidavit from the intended recipient certifying that the 25 person receiving the electronic smoking product is a person described under 26 (b)(1) - (4) of this section; or 27 (B) the common or contract carrier verifies the age of the 28 recipient as 21 years of age or older before delivery; or 29 (2) receiving the electronic smoking product is a person described 30 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 31 provides the common or contract carrier with a copy of the person's current license
01 issued by the department. 02 (d) If an electronic smoking product is transported by a common or contract 03 carrier to a home or residence, it is rebuttably presumed that the common or contract 04 carrier knew that the recipient of the electronic smoking product was not a person 05 described under (b)(1) - (5) of this section, unless the person shipping the electronic 06 smoking product has satisfied the requirements in (c)(1) of this section. 07 (e) A person, other than a common or contract carrier, may not knowingly 08 transport an electronic smoking product to a person in this state, unless the recipient of 09 the electronic smoking product is a person described under (b)(1) - (5) of this section. 10 (f) A person who ships or causes to be shipped an electronic smoking product 11 to a person in this state shall plainly and visibly mark the container or wrapping with 12 the words "electronic smoking product" if the electronic smoking product is shipped in 13 a container or wrapping other than the manufacturer's original container or wrapping 14 of the electronic smoking 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 an 17 electronic smoking 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 43.50.850. To the fullest extent permitted by the 22 Constitution of the United States, a person who violates the provisions of this section 23 is required to collect the taxes and pay them to the department. 24 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 25 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 26 for sale or distribution in this state, or import or cause to be imported into this state for 27 sale or distribution in this state only electronic smoking products 28 (1) for which the component vapor product 29 (A) has a nicotine content of less than 60 milligrams of nicotine 30 for each milliliter of vapor product; 31 (B) is protected from breakage and leakage;
01 (C) does not contain added vitamins or other additives 02 marketed to create the impression of health benefits; in this subparagraph, 03 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 04 stimulants, and colorants; 05 (2) that are packaged to be child- and tamper-proof; and 06 (3) that are labeled to inform consumers about all vapor product 07 ingredients and nicotine content. 08 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 09 (1) means the total amount of consideration, including cash, credit, 10 property, and services, for which an electronic smoking product is purchased or sold, 11 valued in money, whether received in money or otherwise, without any deduction for 12 (A) the seller's cost of the electronic smoking product sold; 13 (B) the cost of materials used, labor or service cost, interest, 14 losses, cost of transportation, taxes, or other expenses of the seller; 15 (C) charges by the seller for services necessary to complete the 16 sale; 17 (D) delivery charges; 18 (2) does not include 19 (A) 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 (B) 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 to the 25 purchaser; and 26 (C) taxes legally imposed directly on the consumer that are 27 separately stated on the invoice, bill of sale, or similar document given to the 28 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) "retailer" means a person in the state who is engaged in the 24 business of selling electronic smoking products at retail; 25 (5) "vapor product" means a substance intended to be aerosolized or 26 vaporized during the use of an electronic smoking product. 27 * Sec. 18. AS 43.70.075(f) is amended to read: 28 (f) A person who holds a license endorsement issued under this section shall 29 post on the licensed premises a warning sign as described in this subsection. A 30 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 31 must read: "The sale of electronic smoking products or products containing nicotine
01 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 02 person holding an endorsement issued under this section shall display the warning sign 03 in a manner conspicuous to a person purchasing or consuming tobacco products, 04 electronic smoking products, or products containing nicotine on the licensed premises. 05 The department shall make available the warning signs required under this section to a 06 person who holds an endorsement issued under this section or a person who requests 07 the sign with the intention of displaying it. 08 * Sec. 19. AS 43.70.075(m) is amended to read: 09 (m) The department may initiate suspension of a business license endorsement 10 or the right to obtain a business license endorsement under this section by sending the 11 person subject to the suspension a notice by certified mail, return receipt requested, or 12 by delivering the notice to the person. The notice must contain information that 13 informs the person of the grounds for suspension, the length of any suspension sought, 14 and the person's right to administrative review. A suspension begins 30 days after 15 receipt of notice described in this subsection unless the person delivers a timely 16 written request for a hearing to the department in the manner provided by regulations 17 of the department. If a hearing is requested under this subsection, an administrative 18 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 19 issues by using the preponderance of the evidence test and shall, to the extent they do 20 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 21 manner provided by regulations of the department. A hearing under this subsection is 22 limited to the following questions: 23 (1) was the person holding the business license endorsement, or an 24 agent or employee of the person while acting within the scope of the agency or 25 employment of the person, convicted by plea or judicial finding of violating 26 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 27 (2) if the department does not allege a conviction of AS 11.76.100, 28 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 29 person while acting within the scope of the agency or employment of the person, 30 violate a provision of (a) or (g) of this section; 31 (3) within the 24 months before the date of the department's notice
01 under this subsection, was the person, or an agent or employee of the person while 02 acting within the scope of the agency or employment of the person, convicted of 03 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 04 violating a provision of (a) or (g) of this section; 05 (4) did the person holding the business license endorsement establish 06 that the person holding the business license endorsement had adopted and enforced an 07 education, a compliance, and a disciplinary program for agents and employees of the 08 person as provided in (t) of this section; 09 (5) did the person holding the business license endorsement overcome 10 the rebuttable presumption established in (w) of this section; 11 (6) within five years before the date of the violation that is the subject 12 of the hearing, did the department establish that the person holding the business 13 license endorsement 14 (A) previously violated (a) or (g) of this section; 15 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 16 11.76.109 at a location or outlet in a location for which the person holds a 17 business license endorsement, or had an agent or employee previously violate 18 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 19 apply to a prior conviction that served to enhance a suspension period under 20 (d)(2) - (4) of this section; or 21 (C) engaged at a location owned by the person in other conduct 22 that was or is likely to result in the sale of tobacco, electronic smoking 23 products, or products containing nicotine to a person under 21 [19] years of 24 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 25 * Sec. 20. AS 43.70.075(t) is amended to read: 26 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 27 section, the department may reduce the license suspension period under (d) of this 28 section if the person holding the business license endorsement establishes that, before 29 the date of the violation, the person had 30 (1) adopted and enforced a written policy against selling cigarettes, 31 cigars, tobacco, products containing tobacco, electronic smoking products, or products
01 containing nicotine to a person under 21 [19] years of age in violation of 02 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 03 (2) informed the person's agents and employees of the applicable laws 04 and their requirements and conducted training on complying with the laws and 05 requirements; 06 (3) required each agent and employee of the person to sign a form 07 stating that the agent and employee has been informed of and understands the written 08 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 09 (4) determined that the agents and employees of the person had 10 sufficient experience and ability to comply with the written policy and requirements of 11 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 12 (5) required the agents and employees of the person to verify the age 13 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 14 electronic smoking products, or products containing nicotine by means of a valid 15 government issued photographic identification; 16 (6) established and enforced disciplinary sanctions for noncompliance 17 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 18 and 11.76.109; and 19 (7) monitored the compliance of the agents and employees of the 20 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 21 11.76.107, and 11.76.109. 22 * Sec. 21. AS 43.70.075(w) is amended to read: 23 (w) For purposes of (m)(5) of this section, a conviction for a violation of 24 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 25 person who holds the business license endorsement is rebuttably presumed to 26 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 27 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 28 product containing nicotine to a person under 21 [19] years of age. The person who 29 holds the business license endorsement may overcome the presumption by 30 establishing by clear and convincing evidence that the agent or employee did not 31 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an
01 electronic smoking product, or a product containing nicotine to a person under 21 [19] 02 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 03 alleged in the citation issued to the agent or employee. The presentation of evidence 04 authorized by this subsection does not constitute a collateral attack on the conviction 05 described in this subsection. 06 * Sec. 22. AS 45.50.471(b) is amended by adding a new paragraph to read: 07 (58) marketing an electronic smoking product in a manner likely to 08 promote use of electronic smoking products by a person under 21 years of age; in this 09 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 10 * Sec. 23. AS 47.12.030(b) is amended to read: 11 (b) When a minor is accused of violating a statute specified in this subsection, 12 other than a statute the violation of which is a felony, this chapter and the Alaska 13 Delinquency Rules do not apply and the minor accused of the offense shall be 14 charged, prosecuted, and sentenced in the district court in the same manner as an 15 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 16 subsection, the minor's parent, guardian, or legal custodian shall be present at all 17 proceedings; the provisions of this subsection apply when a minor is accused of 18 violating 19 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 20 a municipality; 21 (2) AS 11.76.105, relating to the possession of tobacco by a person 22 under 21 [19] years of age; 23 (3) a fish and game statute or regulation under AS 16; 24 (4) a parks and recreational facilities statute or regulation under 25 AS 41.21; 26 (5) [REPEALED] 27 (6) a municipal curfew ordinance, whether adopted under 28 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 29 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 30 the violation of a municipal curfew ordinance, the court shall allow a defendant the 31 option of performing community work; the value of the community work, which may
01 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 02 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 03 or work that, on the recommendation of the municipal or borough assembly, city 04 council, or traditional village council of the defendant's place of residence, would 05 benefit persons within the municipality or village who are elderly or disabled; 06 (7) AS 04.16.050, relating to consumption, possession, or control of 07 alcohol by a person under 21 years of age. 08 * Sec. 24. AS 11.76.100(e) and 11.76.106(b)(4) are repealed. 09 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 10 read: 11 APPLICABILITY. The following sections apply to offenses committed on or after the 12 effective date of those sections: 13 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 14 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 15 (3) AS 11.76.105, as amended by sec. 3 of this Act; 16 (4) AS 11.76.105(d) and (e), enacted by sec. 4 of this Act; 17 (5) AS 11.76.106(a), as amended by sec. 5 of this Act; 18 (6) AS 11.76.106(b), as amended by sec. 6 of this Act; 19 (7) AS 11.76.109(a), as amended by sec. 7 of this Act; 20 (8) AS 11.76.109(b), as amended by sec. 8 of this Act; 21 (9) AS 11.76.109(d), as amended by sec. 9 of this Act; 22 (10) AS 11.76.109(g), as amended by sec. 10 of this Act; 23 (11) AS 11.81.900(b)(69), enacted by sec. 11 of this Act; 24 (12) AS 43.50.325, enacted by sec. 16 of this Act; 25 (13) AS 43.50.880, enacted by sec. 17 of this Act; and 26 (14) AS 47.12.030(b), as amended by sec. 23 of this Act. 27 * Sec. 26. This Act takes effect January 1, 2024.