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HCS 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 tobacco use education and cessation fund; relating to retailers of and the sale of electronic smoking products and vapor products; and providing for an effective date."

00 HOUSE CS FOR 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 tobacco use education and cessation fund; relating to retailers of and the 05 sale of electronic smoking products and vapor products; and providing for an effective 06 date." 07 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 08 * Section 1. AS 11.76.100(a) is amended to read: 09 (a) A person commits the offense of selling or giving tobacco to a person 10 under 21 years of age [MINOR] if the person 11 (1) negligently sells a cigarette, a cigar, tobacco, or a product 12 containing tobacco to a person under 21 [19] years of age; 13 (2) is 21 [19] years of age or older and negligently exchanges or gives

01 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 02 years of age; 03 (3) maintains a vending machine that dispenses cigarettes, cigars, 04 tobacco, or products containing tobacco; or 05 (4) holds a business license endorsement under AS 43.70.075 and 06 allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 07 product containing tobacco. 08 * Sec. 2. AS 11.76.100(b) is amended to read: 09 (b) Notwithstanding the provisions of (a) of this section, a person who 10 maintains a vending machine is not in violation of (a)(3) of this section if the vending 11 machine is located 12 (1) on premises licensed as a beverage dispensary under AS 04.09.200 13 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 14 under AS 04.09.230 and 15 (A) as far as practicable from the primary entrance; and 16 (B) in a place that is directly and continually supervised by a 17 person employed on the licensed premises during the hours the vending 18 machine is accessible to the public; or 19 (2) in an employee break room or other controlled area of a private 20 work place that is not generally considered a public place and the room or area 21 contains a posted warning sign at least 11 inches by 14 inches indicating that 22 possession of tobacco by a person under 21 [19] years of age is prohibited under 23 AS 11.76.105. 24 * Sec. 3. AS 11.76.105 is amended to read: 25 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 26 products containing nicotine by a person under 21 years of age [MINOR]. (a) 27 Except as provided in (e) of this section, a [A] person under 21 [19] years of age 28 may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 29 an electronic smoking product, or a product containing nicotine in this state. [THIS 30 SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 31 ADULT CORRECTIONAL FACILITY.]

01 (b) In a prosecution under (a) of this section for possession of an electronic 02 smoking product or a product containing nicotine, it is an affirmative defense that the 03 electronic smoking product or product containing nicotine possessed by the person 04 under 21 [19] years of age was intended or expected to be consumed without being 05 combusted, and the electronic smoking product or product containing nicotine 06 (1) has been approved by the United States Food and Drug 07 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 08 or for other medical purposes; 09 (2) was being marketed and sold for the approved purposes; and 10 (3) was 11 (A) prescribed by a health care professional; 12 (B) given to the person by the person's parent or guardian; 13 (C) provided by a state-approved tobacco cessation program 14 administered by the Department of Health; or 15 (D) provided by a pharmacist to a person 18 years of age or 16 older without a prescription. 17 (c) Possession of tobacco, an electronic smoking product, or a product 18 containing nicotine by a person under 21 years of age [MINOR] is a violation 19 punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 20 place of any fine imposed for the violation of this subsection, the court may refer 21 a defendant, at the request of the defendant, to a tobacco education program. 22 * Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 23 (d) The supreme court shall establish by rule or order a schedule of bail 24 amounts that may be forfeited without court appearance for a violation of this section. 25 The supreme court, in establishing scheduled amounts of bail under this section, may 26 not allow for disposition of an offense without court appearance for a person under 18 27 years of age who is cited for a violation of this section. 28 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 29 of age who is employed by a person with a business license endorsement under 30 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 31 product containing tobacco, an electronic smoking product, or a product containing

01 nicotine. 02 * Sec. 5. AS 11.76.106(b) is amended to read: 03 (b) Subsection (a) does not apply if the sale 04 (1) is by vending machine as provided under AS 11.76.100(b) or 05 11.76.109(d); 06 (2) is a wholesale transaction, the person is licensed as a manufacturer 07 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 08 transactions occur; 09 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 10 products containing tobacco, electronic smoking products, or products containing 11 nicotine and who restricts access to the premises to only those individuals who are 21 12 [19] years of age or older; or 13 (4) is of electronic smoking products over the Internet to a person 21 14 [19] years of age or older. 15 * Sec. 6. AS 11.76.109(a) is amended to read: 16 (a) A person commits the offense of selling or giving an electronic smoking 17 product or a product containing nicotine to a person under 21 years of age [MINOR] 18 if the person 19 (1) negligently sells an electronic smoking product or a product 20 containing nicotine to a person under 21 [19] years of age; 21 (2) is 21 [19] years of age or older and negligently exchanges or gives 22 an electronic smoking product or a product containing nicotine to a person under 21 23 [19] years of age; 24 (3) maintains a vending machine that dispenses electronic smoking 25 products or products containing nicotine; or 26 (4) holds a business license endorsement under AS 43.70.075 and 27 allows a person under 21 [19] years of age to sell an electronic smoking product or a 28 product containing nicotine. 29 * Sec. 7. AS 11.76.109(b) is amended to read: 30 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 31 gift to a person under 21 [19] years of age of an electronic smoking product or a

01 product containing nicotine that is intended or expected to be consumed without being 02 combusted if the electronic smoking product or product containing nicotine 03 (1) has been approved by the United States Food and Drug 04 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 05 or for other medical purposes; 06 (2) is being marketed and sold solely for the approved purposes; and 07 (3) is 08 (A) prescribed by a health care professional; 09 (B) given to a person by the person's parent or legal guardian; 10 (C) provided by a state-approved tobacco cessation program 11 administered by the Department of Health; or 12 (D) provided by a pharmacist to a person 18 years of age or 13 older without a prescription. 14 * Sec. 8. AS 11.76.109(d) is amended to read: 15 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 16 machine is not in violation of (a)(3) of this section if the vending machine is located 17 (1) on premises licensed as a beverage dispensary under AS 04.09.200 18 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 19 under AS 04.09.230, and is located 20 (A) as far as practicable from the primary entrance; and 21 (B) in a place that is directly and continually supervised by a 22 person employed on the licensed premises during the hours the vending 23 machine is accessible to the public; or 24 (2) in an employee break room or other controlled area of a private 25 work place that is not generally considered a public place and the room or area 26 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 27 possession of electronic smoking products or products containing nicotine by a person 28 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 29 [THIS SECTION]. 30 * Sec. 9. AS 11.76.109(g) is amended to read: 31 (g) Selling or giving an electronic smoking product or a product containing

01 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 02 conviction, is punishable by a fine of not less than $300. 03 * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 04 (69) "nicotine" includes a chemical or chemical compound intended, 05 when introduced into the human body, to mimic or simulate the effect of nicotine from 06 tobacco. 07 * Sec. 11. AS 37.05.580(a) is amended to read: 08 (a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 09 GENERAL FUND THE] tobacco use education and cessation fund is established as a 10 separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 11 DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 12 the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 13 CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 14 use education and cessation fund is to provide a source to finance the comprehensive 15 smoking education, tobacco use prevention, and tobacco control program authorized 16 by AS 44.29.020(a)(12). 17 * Sec. 12. AS 43.50.070 is amended to read: 18 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 19 (a) The department may suspend, revoke, or refuse to renew a license issued under this 20 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 21 11.76.109, or a violation of this chapter or a regulation of the department adopted 22 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 23 was issued; or (3) if a licensee negligently sells tobacco or products containing 24 tobacco to a person who is required to, but does not, hold a license endorsement under 25 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 26 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 27 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 28 products, or electronic smoking products to be sold, during the period of the 29 suspension or revocation on the premises occupied or controlled by that person. A 30 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 31 surrender, renewal, or extension of a license issued under this chapter. The department

01 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 02 that a hearing officer of the department, rather than a hearing officer assigned under 03 AS 44.62.350, may conduct hearings. 04 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 05 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.880. 06 * Sec. 13. AS 43.50.105(b) is amended to read: 07 (b) A person who is licensed under this chapter may not ship or cause to be 08 shipped cigarettes to a person in this state unless the person receiving the cigarettes 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 cigarettes not taxed under this chapter; or 15 (5) is an individual 21 [19] years of age or older and the individual's 16 age was verified at the time of purchase by a third-party verification service, the 17 individual is receiving the cigarettes for personal consumption, and the tax imposed 18 on the cigarettes under this chapter has been paid. 19 * Sec. 14. AS 43.50.105(c) is amended to read: 20 (c) A common or contract carrier may not knowingly transport cigarettes to a 21 person in this state unless the person 22 (1) shipping the cigarettes is licensed under this chapter and, before 23 shipment, provides the common or contract carrier with a copy of the person's current 24 license issued by the department and 25 (A) an affidavit from the intended recipient certifying that the 26 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 27 (5)] of 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 cigarettes is a person described under (a)(2) or (3) of 31 this section or is licensed under this chapter and, before receipt, provides the common

01 or contract carrier with a copy of the person's current license issued by the department. 02 * Sec. 15. AS 43.50.190(d) is amended to read: 03 (d) A portion of the annual proceeds of the tax levied under (a) of this section 04 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 05 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 06 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 07 UNDER AS 37.05.580(a).] 08 * Sec. 16. AS 43.50 is amended by adding a new section to read: 09 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 10 (a) A person who is not licensed under this chapter may not ship or cause to be 11 shipped a tobacco product to a person in this state unless the person receiving the 12 tobacco product is 13 (1) licensed under this chapter; 14 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 15 or 19 U.S.C. 1555; or 16 (3) an instrumentality of the federal government or an Indian tribal 17 organization authorized by law to possess tobacco products not taxed under this 18 chapter. 19 (b) A person who is licensed under this chapter may not ship or cause to be 20 shipped a tobacco product to a person in this state unless the person receiving the 21 tobacco product 22 (1) is licensed under this chapter; 23 (2) holds a business license endorsement under AS 43.70.075; 24 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 25 1311 or 19 U.S.C. 1555; 26 (4) is an instrumentality of the federal government or an Indian tribal 27 organization authorized by law to possess tobacco products not taxed under this 28 chapter; or 29 (5) is an individual 21 years of age or older and the individual's age 30 was verified at the time of purchase though a third-party verification service, the 31 individual is receiving the tobacco product for personal consumption, and the tax

01 imposed on the tobacco product under this chapter has been paid. 02 (c) A common or contract carrier may not knowingly transport a tobacco 03 product to a person in this state unless the person 04 (1) shipping the tobacco product is licensed under this chapter and, 05 before shipment, provides the common or contract carrier with a copy of the person's 06 current license issued by the department and 07 (A) an affidavit from the intended recipient certifying that the 08 person receiving the tobacco product is a person described under (b)(1) - (4) of 09 this section; or 10 (B) the common or contract carrier verifies the age of the 11 recipient as 21 years of age or older before delivery; or 12 (2) receiving the tobacco product is a person described under (a)(2) or 13 (3) of this section or is licensed under this chapter and, before receipt, provides the 14 common or contract carrier with a copy of the person's current license issued by the 15 department. 16 (d) If a tobacco product is transported by a common or contract carrier to a 17 home or residence, it is rebuttably presumed that the common or contract carrier knew 18 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 19 of this section, unless the person shipping the tobacco product has satisfied the 20 requirements in (c)(1) of this section. 21 (e) A person, other than a common or contract carrier, may not knowingly 22 transport a tobacco product to a person in this state, unless the recipient of the tobacco 23 product is a person described under (b)(1) - (5) of this section. 24 (f) A person who ships or causes to be shipped a tobacco product to a person 25 in this state shall plainly and visibly mark the container or wrapping with the words 26 "tobacco product" if the tobacco product is shipped in a container or wrapping other 27 than the manufacturer's original container or wrapping of the tobacco product. 28 (g) A person who violates the provisions of this section is guilty of a class A 29 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 30 tobacco product. 31 (h) In addition to the criminal penalty under (g) of this section, the department

01 may assess a civil penalty of not more than $5,000 for each violation of this section. 02 (i) A person who violates the provisions of this section is jointly and severally 03 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 04 permitted by the Constitution of the United States, a person who violates the 05 provisions of this section is required to collect the taxes and pay them to the 06 department. 07 * Sec. 17. AS 43.50 is amended by adding new sections to read: 08 Article 8. Electronic Smoking Products Sales, Shipping, and Licensing. 09 Sec. 43.50.850. Licensing. (a) Except as provided in (g) of this section, a 10 person must be licensed by the department if the person engages in the business of 11 selling electronic smoking products at retail. 12 (b) The department, upon application and payment of a fee of $50, shall issue 13 a license for one year to a person who applies for a license under (a) of this section. 14 (c) The department may refuse to issue a license under this section if 15 (1) there is reasonable cause to believe the information submitted in 16 the application is false or misleading and is not made in good faith; or 17 (2) the applicant is not in good standing under AS 10.06 (Alaska 18 Corporations Code). 19 (d) A license issued under this section must include the name and address of 20 the licensee, the type of business to be conducted, and the year for which the license is 21 issued. 22 (e) The department may renew a license issued under this section for a fee of 23 $50 if the applicant is in good standing under AS 10.06 (Alaska Corporations Code). 24 (f) The department may suspend, revoke, or refuse to renew a license issued 25 under this section as provided in AS 43.50.070. 26 (g) A license required by this section is in addition to any other license 27 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 28 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 29 (h) A license issued under this section is not assignable or transferable, except 30 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 31 if the business of the licensee is transferred to another by operation of law, the

01 department may extend the license for a limited time to the executor, administrator, 02 trustee, receiver, or transferee. 03 Sec. 43.50.860. Marketing and distribution of electronic smoking 04 products. A person licensed under this chapter may not 05 (1) distribute an electronic smoking product designed or packaged so 06 as not to be clearly recognizable as an electronic smoking product; or 07 (2) market an electronic smoking product, including a flavored 08 electronic smoking product, in a manner likely to promote use of the electronic 09 smoking product by a person under 21 years of age. 10 Sec. 43.50.870. Restrictions on shipping or transporting electronic 11 smoking products. (a) A person who is not licensed under this chapter may not ship 12 or cause to be shipped an electronic smoking product to a person in this state unless 13 the person receiving the electronic smoking product is 14 (1) licensed under this chapter; 15 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 16 or 19 U.S.C. 1555; or 17 (3) an instrumentality of the federal government or an Indian tribal 18 organization. 19 (b) A person who is licensed under this chapter may not ship or cause to be 20 shipped an electronic smoking product to a person in this state unless the person 21 receiving the electronic smoking product 22 (1) is licensed under this chapter; 23 (2) holds a business license endorsement under AS 43.70.075; 24 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 25 1311 or 19 U.S.C. 1555; 26 (4) is an instrumentality of the federal government or an Indian tribal 27 organization; or 28 (5) is an individual 21 years of age or older and the individual's age 29 was verified at the time of purchase though a third-party verification service and the 30 individual is receiving the electronic smoking product for personal consumption. 31 (c) A common or contract carrier may not knowingly transport an electronic

01 smoking product to a person in this state unless the person 02 (1) shipping the electronic smoking product is licensed under this 03 chapter and, before shipment, provides the common or contract carrier with a copy of 04 the person's current license issued by the department and 05 (A) an affidavit from the intended recipient certifying that the 06 person receiving the electronic smoking product is a person described under 07 (b)(1) - (4) of this section; or 08 (B) the common or contract carrier verifies the age of the 09 recipient as 21 years of age or older before delivery; or 10 (2) receiving the electronic smoking product is a person described 11 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 12 provides the common or contract carrier with a copy of the person's current license 13 issued by the department. 14 (d) If an electronic smoking product is transported by a common or contract 15 carrier to a home or residence, it is rebuttably presumed that the common or contract 16 carrier knew that the recipient of the electronic smoking product was not a person 17 described under (b)(1) - (5) of this section, unless the person shipping the electronic 18 smoking product has satisfied the requirements in (c)(1) of this section. 19 (e) A person, other than a common or contract carrier, may not knowingly 20 transport an electronic smoking product to a person in this state, unless the recipient of 21 the electronic smoking product is a person described under (b)(1) - (5) of this section. 22 (f) A person who ships or causes to be shipped an electronic smoking product 23 to a person in this state shall plainly and visibly mark the container or wrapping with 24 the words "electronic smoking product" if the electronic smoking product is shipped in 25 a container or wrapping other than the manufacturer's original container or wrapping 26 of the electronic smoking product. 27 (g) A person who violates the provisions of this section is guilty of a class A 28 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 29 electronic smoking product. 30 (h) In addition to the criminal penalty under (g) of this section, the department 31 may assess a civil penalty of not more than $5,000 for each violation of this section.

01 Sec. 43.50.880. Restrictions on electronic smoking products. A person may 02 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 03 for sale or distribution in this state, or import or cause to be imported into this state for 04 sale or distribution in this state only electronic smoking products 05 (1) for which the component vapor product 06 (A) has a nicotine content of less than 50 milligrams of nicotine 07 for each milliliter of vapor product; 08 (B) is protected from breakage and leakage; 09 (C) does not contain added vitamins or other additives 10 marketed to create the impression of health benefits; in this subparagraph, 11 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 12 stimulants, and colorants; 13 (2) that are packaged to be child- and tamper-proof; and 14 (3) that are labeled to inform consumers about all vapor product 15 ingredients and nicotine content. 16 Article 9. General Provisions. 17 Sec. 43.50.990. Definitions. In this chapter, 18 (1) "electronic smoking product" has the meaning given in 19 AS 11.81.900(b); 20 (2) "vapor product" means a substance intended to be aerosolized or 21 vaporized during the use of an electronic smoking product. 22 * Sec. 18. AS 43.70.075(f) is amended to read: 23 (f) A person who holds a license endorsement issued under this section shall 24 post on the licensed premises a warning sign as described in this subsection. A 25 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 26 must read: "The sale of electronic smoking products or products containing nicotine 27 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 28 person holding an endorsement issued under this section shall display the warning sign 29 in a manner conspicuous to a person purchasing or consuming tobacco products, 30 electronic smoking products, or products containing nicotine on the licensed premises. 31 The department shall make available the warning signs required under this section to a

01 person who holds an endorsement issued under this section or a person who requests 02 the sign with the intention of displaying it. 03 * Sec. 19. AS 43.70.075(m) is amended to read: 04 (m) The department may initiate suspension of a business license endorsement 05 or the right to obtain a business license endorsement under this section by sending the 06 person subject to the suspension a notice by certified mail, return receipt requested, or 07 by delivering the notice to the person. The notice must contain information that 08 informs the person of the grounds for suspension, the length of any suspension sought, 09 and the person's right to administrative review. A suspension begins 30 days after 10 receipt of notice described in this subsection unless the person delivers a timely 11 written request for a hearing to the department in the manner provided by regulations 12 of the department. If a hearing is requested under this subsection, an administrative 13 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 14 issues by using the preponderance of the evidence test and shall, to the extent they do 15 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 16 manner provided by regulations of the department. A hearing under this subsection is 17 limited to the following questions: 18 (1) was the person holding the business license endorsement, or an 19 agent or employee of the person while acting within the scope of the agency or 20 employment of the person, convicted by plea or judicial finding of violating 21 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 22 (2) if the department does not allege a conviction of AS 11.76.100, 23 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 24 person while acting within the scope of the agency or employment of the person, 25 violate a provision of (a) or (g) of this section; 26 (3) within the 24 months before the date of the department's notice 27 under this subsection, was the person, or an agent or employee of the person while 28 acting within the scope of the agency or employment of the person, convicted of 29 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 30 violating a provision of (a) or (g) of this section; 31 (4) did the person holding the business license endorsement establish

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

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

01 * Sec. 22. AS 45.50.471(b) is amended by adding a new paragraph to read: 02 (58) marketing an electronic smoking product in a manner likely to 03 promote use of electronic smoking products by a person under 21 years of age; in this 04 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 05 * Sec. 23. AS 47.12.030(b) is amended to read: 06 (b) When a minor is accused of violating a statute specified in this subsection, 07 other than a statute the violation of which is a felony, this chapter and the Alaska 08 Delinquency Rules do not apply and the minor accused of the offense shall be 09 charged, prosecuted, and sentenced in the district court in the same manner as an 10 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 11 subsection, the minor's parent, guardian, or legal custodian shall be present at all 12 proceedings; the provisions of this subsection apply when a minor is accused of 13 violating 14 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 15 a municipality; 16 (2) AS 11.76.105, relating to the possession of tobacco by a person 17 under 21 [19] years of age; 18 (3) a fish and game statute or regulation under AS 16; 19 (4) a parks and recreational facilities statute or regulation under 20 AS 41.21; 21 (5) [REPEALED] 22 (6) a municipal curfew ordinance, whether adopted under 23 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 24 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 25 the violation of a municipal curfew ordinance, the court shall allow a defendant the 26 option of performing community work; the value of the community work, which may 27 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 28 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 29 or work that, on the recommendation of the municipal or borough assembly, city 30 council, or traditional village council of the defendant's place of residence, would 31 benefit persons within the municipality or village who are elderly or disabled;

01 (7) AS 04.16.050, relating to consumption, possession, or control of 02 alcohol by a person under 21 years of age. 03 * Sec. 24. AS 11.76.100(e) is repealed. 04 * Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 APPLICABILITY. The following sections apply to offenses committed on or after the 07 effective date of those sections: 08 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 09 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 10 (3) AS 11.76.105, as amended by sec. 3 of this Act; 11 (4) AS 11.76.105(d), enacted by sec. 4 of this Act; 12 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 13 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 14 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 15 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 16 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 17 (10) AS 11.81.900(b)(69), enacted by sec. 10 of this Act; 18 (11) AS 43.50.325, enacted by sec. 16 of this Act; 19 (12) AS 43.50.870, enacted by sec. 17 of this Act; and 20 (13) AS 47.12.030(b), as amended by sec. 23 of this Act. 21 * Sec. 26. This Act takes effect January 1, 2025.