CSSB 89(FIN): "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 tobacco use education and cessation fund; relating to the taxation of electronic smoking products and vapor products; and providing for an effective date."
00 CS FOR SENATE BILL NO. 89(FIN) 01 "An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, 02 and products containing nicotine; raising the minimum age to purchase, exchange, or 03 possess tobacco, a product containing nicotine, or an electronic smoking product; 04 relating to the tobacco use education and cessation fund; relating to the taxation of 05 electronic smoking products and vapor products; and 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 The supreme court, in establishing scheduled amounts of bail under this section, may 25 not allow for disposition of an offense without court appearance for a person under 18 26 years of age who is cited for a violation of this section. 27 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 28 of age who is employed by a person with a business license endorsement under 29 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 30 product containing tobacco, an electronic smoking product, or a product containing 31 nicotine.
01 * Sec. 5. AS 11.76.106(b) is amended to read: 02 (b) Subsection (a) does not apply if the sale 03 (1) is by vending machine as provided under AS 11.76.100(b) or 04 11.76.109(d); 05 (2) is a wholesale transaction, the person is licensed as a manufacturer 06 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 07 transactions occur; 08 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 09 products containing tobacco, electronic smoking products, or products containing 10 nicotine and who restricts access to the premises to only those individuals who are 21 11 [19] years of age or older; or 12 (4) is of electronic smoking products over the Internet to a person 21 13 [19] years of age or older. 14 * Sec. 6. AS 11.76.109(a) is amended to read: 15 (a) A person commits the offense of selling or giving an electronic smoking 16 product or a product containing nicotine to a person under 21 years of age [MINOR] 17 if the person 18 (1) negligently sells an electronic smoking product or a product 19 containing nicotine to a person under 21 [19] years of age; 20 (2) is 21 [19] years of age or older and negligently exchanges or gives 21 an electronic smoking product or a product containing nicotine to a person under 21 22 [19] years of age; 23 (3) maintains a vending machine that dispenses electronic smoking 24 products or products containing nicotine; or 25 (4) holds a business license endorsement under AS 43.70.075 and 26 allows a person under 19 years of age to sell an electronic smoking product or a 27 product containing nicotine. 28 * Sec. 7. AS 11.76.109(b) is amended to read: 29 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 30 gift to a person under 21 [19] years of age of an electronic smoking product or a 31 product containing nicotine that is intended or expected to be consumed without being
01 combusted if the electronic smoking product or product containing nicotine 02 (1) has been approved by the United States Food and Drug 03 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 04 or for other medical purposes; 05 (2) is being marketed and sold solely for the approved purposes; and 06 (3) is 07 (A) prescribed by a health care professional; 08 (B) given to a person by the person's parent or legal guardian; 09 (C) provided by a state-approved tobacco cessation program 10 administered by the Department of Health; or 11 (D) provided by a pharmacist to a person 18 years of age or 12 older without a prescription. 13 * Sec. 8. AS 11.76.109(d), as amended by sec. 155, ch. 8, SLA 2022, is amended to read: 14 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 15 machine is not in violation of (a)(3) of this section if the vending machine is located 16 (1) on premises licensed as a beverage dispensary under AS 04.09.200 17 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 18 under AS 04.09.230, and is located 19 (A) as far as practicable from the primary entrance; and 20 (B) in a place that is directly and continually supervised by a 21 person employed on the licensed premises during the hours the vending 22 machine is accessible to the public; or 23 (2) in an employee break room or other controlled area of a private 24 work place that is not generally considered a public place and the room or area 25 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 26 possession of electronic smoking products or products containing nicotine by a person 27 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 28 [THIS SECTION]. 29 * Sec. 9. AS 11.76.109(g) is amended to read: 30 (g) Selling or giving an electronic smoking product or a product containing 31 nicotine to a person under 21 years of age [MINOR] is a violation and, upon
01 conviction, is punishable by a fine of not less than $300. 02 * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 03 (69) "nicotine" includes a chemical or chemical compound intended, 04 when introduced into the human body, to mimic or simulate the effect of nicotine from 05 tobacco. 06 * Sec. 11. AS 37.05.580(a) is amended to read: 07 (a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 08 GENERAL FUND THE] tobacco use education and cessation fund is established as a 09 separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 10 DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 11 the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 12 CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 13 use education and cessation fund is to provide a source to finance the comprehensive 14 smoking education, tobacco use prevention, and tobacco control program authorized 15 by AS 44.29.020(a)(12). 16 * Sec. 12. AS 43.50.070 is amended to read: 17 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 18 (a) The department may suspend, revoke, or refuse to renew a license issued under this 19 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 20 11.76.109, or a violation of this chapter or a regulation of the department adopted 21 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 22 was issued; or (3) if a licensee negligently sells tobacco or products containing 23 tobacco to a person who is required to, but does not, hold a license endorsement under 24 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 25 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 26 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 27 products, or electronic smoking products to be sold, during the period of the 28 suspension or revocation on the premises occupied or controlled by that person. A 29 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 30 surrender, renewal, or extension of a license issued under this chapter. The department 31 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except
01 that a hearing officer of the department, rather than a hearing officer assigned under 02 AS 44.62.350, may conduct hearings. 03 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 04 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 05 * Sec. 13. AS 43.50.105(b) is amended to read: 06 (b) A person who is licensed under this chapter may not ship or cause to be 07 shipped cigarettes to a person in this state unless the person receiving the cigarettes 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 cigarettes not taxed under this chapter; or 14 (5) is an individual 21 [19] years of age or older and the individual's 15 age was verified at the time of purchase by a third-party verification service, the 16 individual is receiving the cigarettes for personal consumption, and the tax imposed 17 on the cigarettes under this chapter has been paid. 18 * Sec. 14. AS 43.50.105(c) is amended to read: 19 (c) A common or contract carrier may not knowingly transport cigarettes to a 20 person in this state unless the person 21 (1) shipping the cigarettes is licensed under this chapter and, before 22 shipment, provides the common or contract carrier with a copy of the person's current 23 license issued by the department and 24 (A) an affidavit from the intended recipient certifying that the 25 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 26 (5)] 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 cigarettes is a person described under (a)(2) or (3) of 30 this section or is licensed under this chapter and, before receipt, provides the common 31 or contract carrier with a copy of the person's current license issued by the department.
01 * Sec. 15. AS 43.50.150(c) is amended to read: 02 (c) The department may enter into an agreement with a municipality that 03 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 04 products for the purpose of jointly auditing a person liable for a tax under 05 AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 06 cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 07 * Sec. 16. AS 43.50.190(d) is amended to read: 08 (d) A portion of the annual proceeds of the tax levied under (a) of this section 09 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 10 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 11 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 12 UNDER AS 37.05.580(a).] 13 * Sec. 17. AS 43.50 is amended by adding a new section to read: 14 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 15 (a) A person who is not licensed under this chapter may not ship or cause to be 16 shipped a tobacco product to a person in this state unless the person receiving the 17 tobacco product is 18 (1) licensed under this chapter; 19 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 20 or 19 U.S.C. 1555; or 21 (3) 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. 24 (b) A person who is licensed under this chapter may not ship or cause to be 25 shipped a tobacco product to a person in this state unless the person receiving the 26 tobacco product 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 tobacco products not taxed under this 02 chapter; or 03 (5) is an individual 21 years of age or older and the individual's age 04 was verified at the time of purchase though a third-party verification service, the 05 individual is receiving the tobacco product for personal consumption, and the tax 06 imposed on the tobacco product under this chapter has been paid. 07 (c) A common or contract carrier may not knowingly transport a tobacco 08 product to a person in this state unless the person 09 (1) shipping the tobacco product is licensed under this chapter and, 10 before shipment, provides the common or contract carrier with a copy of the person's 11 current license issued by the department and 12 (A) an affidavit from the intended recipient certifying that the 13 person receiving the tobacco product is a person described under (b)(1) - (4) of 14 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 tobacco product is a person described under (a)(2) or 18 (3) of this section or is licensed under this chapter and, before receipt, provides the 19 common or contract carrier with a copy of the person's current license issued by the 20 department. 21 (d) If a tobacco product is transported by a common or contract carrier to a 22 home or residence, it is rebuttably presumed that the common or contract carrier knew 23 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 24 of this section, unless the person shipping the tobacco product has satisfied the 25 requirements in (c)(1) of this section. 26 (e) A person, other than a common or contract carrier, may not knowingly 27 transport a tobacco product to a person in this state, unless the recipient of the tobacco 28 product is a person described under (b)(1) - (5) of this section. 29 (f) A person who ships or causes to be shipped a tobacco product to a person 30 in this state shall plainly and visibly mark the container or wrapping with the words 31 "tobacco product" if the tobacco product is shipped in a container or wrapping other
01 than the manufacturer's original container or wrapping of the tobacco product. 02 (g) A person who violates the provisions of this section is guilty of a class A 03 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 04 tobacco product. 05 (h) In addition to the criminal penalty under (g) of this section, the department 06 may assess a civil penalty of not more than $5,000 for each violation of this section. 07 (i) A person who violates the provisions of this section is jointly and severally 08 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 09 permitted by the Constitution of the United States, a person who violates the 10 provisions of this section is required to collect the taxes and pay them to the 11 department. 12 * Sec. 18. AS 43.50 is amended by adding new sections to read: 13 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 14 Sec. 43.50.850. Tax levied; collection. (a) A tax is levied on closed electronic 15 smoking products and vapor products in the state. The tax is 25 percent of the retail 16 sales price of a closed electronic smoking product or a vapor product. 17 (b) A licensee located in the state shall collect and remit the tax to the 18 department. A licensee located outside of the state shall collect and remit the tax to the 19 department if the licensee has more than 200 transactions in the state in the current or 20 preceding calendar year. 21 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 22 (1) a closed electronic smoking product or vapor product 23 (A) sold in a facility operated by one of the uniformed services 24 of the United States; 25 (B) approved for sale by the United States Food and Drug 26 Administration as a drug, drug product, including a drug product used to treat 27 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 28 (Federal Food, Drug, and Cosmetic Act); 29 (C) if the United States Constitution or other federal laws 30 prohibit the levying of the tax on the product by the state; 31 (D) designed, marketed, and sold for the purpose of vaporizing
01 or aerosolizing marijuana, marijuana products, hemp, or hemp products if the 02 marijuana, marijuana products, hemp, or hemp products do not contain 03 nicotine and are intended for sale only in a retail marijuana store; 04 (2) marijuana or marijuana products subject to tax under AS 43.61 if 05 the marijuana or marijuana products do not contain nicotine; or 06 (3) hemp or hemp products if the hemp or hemp products do not 07 contain nicotine. 08 (b) In this section, 09 (1) "hemp" and "hemp products" mean hemp or a hemp product 10 produced by an individual registered under AS 03.05.076; 11 (2) "marijuana," "marijuana products," and "retail marijuana store" 12 have the meanings given in AS 17.38.900; 13 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 14 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 15 person must be licensed by the department if the person engages in business as a 16 retailer of an electronic smoking product. 17 (b) The department, upon application and payment of a fee of $50, shall issue 18 a license for one year to a person who applies for a license under (a) of this section. 19 (c) The department may refuse to issue a license under this section if 20 (1) there is reasonable cause to believe the information submitted in 21 the application is false or misleading and is not made in good faith; 22 (2) the applicant is not in good standing under AS 10.06 (Alaska 23 Corporations Code); or 24 (3) a tax levied under this chapter is due and unpaid by the applicant. 25 (d) A license issued under this section must include the name and address of 26 the licensee, the type of business to be conducted, and the year for which the license is 27 issued. 28 (e) The department may renew a license issued under this section for a fee of 29 $50 if the applicant 30 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 31 and
01 (2) does not have unpaid taxes under this chapter. 02 (f) The department may suspend, revoke, or refuse to renew a license issued 03 under this section as provided in AS 43.50.070. 04 (g) A license required by this section is in addition to any other license 05 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 06 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 07 (h) A license issued under this section is not assignable or transferable, except 08 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 09 if the business of the licensee is transferred to another by operation of law, the 10 department may extend the license for a limited time to the executor, administrator, 11 trustee, receiver, or transferee. 12 (i) A person licensed under this section may not 13 (1) distribute an electronic smoking product designed or packaged so 14 as not to be clearly recognizable as an electronic smoking product; or 15 (2) market an electronic smoking product, including a flavored 16 electronic smoking product, in a manner likely to promote use of the electronic 17 smoking product by a person under 21 years of age. 18 Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 19 licensee shall file a return with the department. The return must state the number or 20 amount of closed electronic smoking products, vapor products, and other electronic 21 smoking products sold by the licensee during the preceding calendar month, the 22 selling price of the electronic smoking products, and the amount of tax imposed on the 23 closed electronic smoking products and vapor products. 24 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 25 of all electronic smoking products of the licensee, including purchase prices, sales 26 prices, the names and addresses of the sellers, the dates of delivery, the quantities of 27 electronic smoking products, and the trade names and brands. Statements and records 28 required by this section must be in the form prescribed by the department, preserved 29 for three years, and available for inspection upon demand by the department. 30 Sec. 43.50.875. Disposition of proceeds. The annual proceeds of the tax 31 levied under AS 43.50.850 shall be deposited into the tobacco use education and
01 cessation fund established in AS 37.05.580 and may be appropriated from the fund for 02 the purposes listed in AS 44.29.020(a)(12) or for efforts to prevent or detect the use of 03 tobacco or electronic smoking products in a school. 04 Sec. 43.50.880. Restrictions on shipping or transporting electronic 05 smoking products. (a) A person who is not licensed under this chapter may not ship 06 or cause to be shipped an electronic smoking product to a person in this state unless 07 the person receiving the electronic smoking 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 electronic smoking products not taxed under 13 this chapter. 14 (b) A person who is licensed under this chapter may not ship or cause to be 15 shipped an electronic smoking product to a person in this state unless the person 16 receiving the electronic smoking 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 electronic smoking products not taxed under 23 this 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 electronic smoking product for personal consumption, and 27 the tax imposed on the electronic smoking product under this chapter has been paid. 28 (c) A common or contract carrier may not knowingly transport an electronic 29 smoking product to a person in this state unless the person 30 (1) shipping the electronic smoking product is licensed under this 31 chapter and, before shipment, provides the common or contract carrier with a copy of
01 the person's current license issued by the department and 02 (A) an affidavit from the intended recipient certifying that the 03 person receiving the electronic smoking product is a person described under 04 (b)(1) - (4) 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 electronic smoking product is a person described 08 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 09 provides the common or contract carrier with a copy of the person's current license 10 issued by the department. 11 (d) If an electronic smoking product is transported by a common or contract 12 carrier to a home or residence, it is rebuttably presumed that the common or contract 13 carrier knew that the recipient of the electronic smoking product was not a person 14 described under (b)(1) - (5) of this section, unless the person shipping the electronic 15 smoking product has satisfied the requirements in (c)(1) of this section. 16 (e) A person, other than a common or contract carrier, may not knowingly 17 transport an electronic smoking product to a person in this state, unless the recipient of 18 the electronic smoking product is a person described under (b)(1) - (5) of this section. 19 (f) A person who ships or causes to be shipped an electronic smoking product 20 to a person in this state shall plainly and visibly mark the container or wrapping with 21 the words "electronic smoking product" if the electronic smoking product is shipped in 22 a container or wrapping other than the manufacturer's original container or wrapping 23 of the electronic smoking product. 24 (g) A person who violates the provisions of this section is guilty of a class A 25 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 26 electronic smoking product. 27 (h) In addition to the criminal penalty under (g) of this section, the department 28 may assess a civil penalty of not more than $5,000 for each violation of this section. 29 (i) A person who violates the provisions of this section is jointly and severally 30 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 31 Constitution of the United States, a person who violates the provisions of this section
01 is required to collect the taxes and pay them to the department. 02 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 03 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 04 for sale or distribution in this state, or import or cause to be imported into this state for 05 sale or distribution in this state only electronic smoking products 06 (1) for which the component vapor product 07 (A) has a nicotine content of less than 50 milligrams of nicotine 08 for each milliliter of vapor product; 09 (B) is protected from breakage and leakage; 10 (C) does not contain added vitamins or other additives 11 marketed to create the impression of health benefits; in this subparagraph, 12 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 13 stimulants, and colorants; 14 (2) that are packaged to be child- and tamper-proof; and 15 (3) that are labeled to inform consumers about all vapor product 16 ingredients and nicotine content. 17 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 18 (1) means the total amount of consideration, including cash, credit, 19 property, and services, for which an electronic smoking product is purchased or sold, 20 valued in money, whether received in money or otherwise, without any deduction for 21 (A) the seller's cost of the electronic smoking product sold; 22 (B) the cost of materials used, labor or service cost, interest, 23 losses, cost of transportation, taxes, or other expenses of the seller; 24 (C) charges by the seller for services necessary to complete the 25 sale; 26 (D) delivery charges; 27 (2) does not include 28 (A) discounts, including cash or coupons that are not 29 reimbursed by a third party, that are allowed by a seller and taken by a 30 purchaser on a sale; 31 (B) interest, financing, and carrying charges from credit
01 extended on the sale of an electronic smoking product if the amount is 02 separately stated on the invoice, bill of sale, or similar document given to the 03 purchaser; and 04 (C) taxes legally imposed directly on the consumer that are 05 separately stated on the invoice, bill of sale, or similar document given to the 06 purchaser. 07 Article 9. General Provisions. 08 Sec. 43.50.990. Definitions. In this chapter, 09 (1) "closed electronic smoking product" means a single-use electronic 10 smoking product that includes a pre-filled disposable cartridge of vapor product; 11 (2) "electronic smoking product" 12 (A) includes 13 (i) a product that can be used to deliver aerosolized or 14 vaporized nicotine to the person inhaling; 15 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 16 or other similar device of any shape; 17 (iii) a component, part, accessory, or device related to 18 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 19 device of any shape; 20 (iv) a vapor product used in a device or product 21 described in (i) or (ii) of this subparagraph; 22 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 23 or other similar device of any shape sold together with a solution, vapor 24 product, or other similar product as a disposable nonrefillable unit; 25 (B) does not include a 26 (i) battery, battery charger, heating element, electronic 27 coil, or mouthpiece intended for use in an electronic smoking product, 28 when sold separately from the electronic smoking product; 29 (ii) cartridge, pod, tank, or similar container intended to 30 transport a vapor product, if sold empty; 31 (3) "nicotine" has the meaning given in AS 11.81.900(b);
01 (4) "retailer" means a person in the state who is engaged in the 02 business of selling electronic smoking products at retail; 03 (5) "vapor product" means a substance intended to be aerosolized or 04 vaporized during the use of an electronic smoking product. 05 * Sec. 19. AS 43.70.075(f) is amended to read: 06 (f) A person who holds a license endorsement issued under this section shall 07 post on the licensed premises a warning sign as described in this subsection. A 08 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 09 must read: "The sale of electronic smoking products or products containing nicotine 10 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 11 person holding an endorsement issued under this section shall display the warning sign 12 in a manner conspicuous to a person purchasing or consuming tobacco products, 13 electronic smoking products, or products containing nicotine on the licensed premises. 14 The department shall make available the warning signs required under this section to a 15 person who holds an endorsement issued under this section or a person who requests 16 the sign with the intention of displaying it. 17 * Sec. 20. AS 43.70.075(m) is amended to read: 18 (m) The department may initiate suspension of a business license endorsement 19 or the right to obtain a business license endorsement under this section by sending the 20 person subject to the suspension a notice by certified mail, return receipt requested, or 21 by delivering the notice to the person. The notice must contain information that 22 informs the person of the grounds for suspension, the length of any suspension sought, 23 and the person's right to administrative review. A suspension begins 30 days after 24 receipt of notice described in this subsection unless the person delivers a timely 25 written request for a hearing to the department in the manner provided by regulations 26 of the department. If a hearing is requested under this subsection, an administrative 27 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 28 issues by using the preponderance of the evidence test and shall, to the extent they do 29 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 30 manner provided by regulations of the department. A hearing under this subsection is 31 limited to the following questions:
01 (1) was the person holding the business license endorsement, or an 02 agent or employee of the person while acting within the scope of the agency or 03 employment of the person, convicted by plea or judicial finding of violating 04 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 05 (2) if the department does not allege a conviction of AS 11.76.100, 06 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 07 person while acting within the scope of the agency or employment of the person, 08 violate a provision of (a) or (g) of this section; 09 (3) within the 24 months before the date of the department's notice 10 under this subsection, was the person, or an agent or employee of the person while 11 acting within the scope of the agency or employment of the person, convicted of 12 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 13 violating a provision of (a) or (g) of this section; 14 (4) did the person holding the business license endorsement establish 15 that the person holding the business license endorsement had adopted and enforced an 16 education, a compliance, and a disciplinary program for agents and employees of the 17 person as provided in (t) of this section; 18 (5) did the person holding the business license endorsement overcome 19 the rebuttable presumption established in (w) of this section; 20 (6) within five years before the date of the violation that is the subject 21 of the hearing, did the department establish that the person holding the business 22 license endorsement 23 (A) previously violated (a) or (g) of this section; 24 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 25 11.76.109 at a location or outlet in a location for which the person holds a 26 business license endorsement, or had an agent or employee previously violate 27 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 28 apply to a prior conviction that served to enhance a suspension period under 29 (d)(2) - (4) of this section; or 30 (C) engaged at a location owned by the person in other conduct 31 that was or is likely to result in the sale of tobacco, electronic smoking
01 products, or products containing nicotine to a person under 21 [19] years of 02 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 03 * Sec. 21. AS 43.70.075(t) is amended to read: 04 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 05 section, the department may reduce the license suspension period under (d) of this 06 section if the person holding the business license endorsement establishes that, before 07 the date of the violation, the person had 08 (1) adopted and enforced a written policy against selling cigarettes, 09 cigars, tobacco, products containing tobacco, electronic smoking products, or products 10 containing nicotine to a person under 21 [19] years of age in violation of 11 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 12 (2) informed the person's agents and employees of the applicable laws 13 and their requirements and conducted training on complying with the laws and 14 requirements; 15 (3) required each agent and employee of the person to sign a form 16 stating that the agent and employee has been informed of and understands the written 17 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 18 (4) determined that the agents and employees of the person had 19 sufficient experience and ability to comply with the written policy and requirements of 20 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 21 (5) required the agents and employees of the person to verify the age 22 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 23 electronic smoking products, or products containing nicotine by means of a valid 24 government issued photographic identification; 25 (6) established and enforced disciplinary sanctions for noncompliance 26 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 27 and 11.76.109; and 28 (7) monitored the compliance of the agents and employees of the 29 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 30 11.76.107, and 11.76.109. 31 * Sec. 22. AS 43.70.075(w) is amended to read:
01 (w) For purposes of (m)(5) of this section, a conviction for a violation of 02 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 03 person who holds the business license endorsement is rebuttably presumed to 04 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 05 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 06 product containing nicotine to a person under 21 [19] years of age. The person who 07 holds the business license endorsement may overcome the presumption by 08 establishing by clear and convincing evidence that the agent or employee did not 09 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 10 electronic smoking product, or a product containing nicotine to a person under 21 [19] 11 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 12 alleged in the citation issued to the agent or employee. The presentation of evidence 13 authorized by this subsection does not constitute a collateral attack on the conviction 14 described in this subsection. 15 * Sec. 23. AS 45.50.471(b) is amended by adding a new paragraph to read: 16 (58) marketing an electronic smoking product in a manner likely to 17 promote use of electronic smoking products by a person under 21 years of age; in this 18 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 19 * Sec. 24. AS 47.12.030(b) is amended to read: 20 (b) When a minor is accused of violating a statute specified in this subsection, 21 other than a statute the violation of which is a felony, this chapter and the Alaska 22 Delinquency Rules do not apply and the minor accused of the offense shall be 23 charged, prosecuted, and sentenced in the district court in the same manner as an 24 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 25 subsection, the minor's parent, guardian, or legal custodian shall be present at all 26 proceedings; the provisions of this subsection apply when a minor is accused of 27 violating 28 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 29 a municipality; 30 (2) AS 11.76.105, relating to the possession of tobacco by a person 31 under 21 [19] years of age;
01 (3) a fish and game statute or regulation under AS 16; 02 (4) a parks and recreational facilities statute or regulation under 03 AS 41.21; 04 (5) [REPEALED] 05 (6) a municipal curfew ordinance, whether adopted under 06 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 07 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 08 the violation of a municipal curfew ordinance, the court shall allow a defendant the 09 option of performing community work; the value of the community work, which may 10 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 11 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 12 or work that, on the recommendation of the municipal or borough assembly, city 13 council, or traditional village council of the defendant's place of residence, would 14 benefit persons within the municipality or village who are elderly or disabled; 15 (7) AS 04.16.050, relating to consumption, possession, or control of 16 alcohol by a person under 21 years of age. 17 * Sec. 25. AS 11.76.100(e) is repealed. 18 * Sec. 26. The uncodified law of the State of Alaska is amended by adding a new section to 19 read: 20 APPLICABILITY. The following sections apply to offenses committed on or after the 21 effective date of those sections: 22 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 23 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 24 (3) AS 11.76.105, as amended by sec. 3 of this Act; 25 (4) AS 11.76.105(d) and (e), enacted by sec. 4 of this Act; 26 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 27 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 28 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 29 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 30 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 31 (10) AS 11.81.900(b)(69), enacted by sec. 10 of this Act;
01 (11) AS 43.50.325, enacted by sec. 17 of this Act; 02 (12) AS 43.50.880, enacted by sec. 18 of this Act; and 03 (13) AS 47.12.030(b), as amended by sec. 24 of this Act. 04 * Sec. 27. This Act takes effect January 1, 2024.