HCS CSSB 89(L&C) am H: "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 lawful operation of retail marijuana stores; relating to the registration of marijuana establishments; relating to the tobacco use education and cessation fund; relating to retailers of and the sale of electronic smoking products and vapor products; relating to marijuana taxes; and providing for an effective date."
00 HOUSE CS FOR CS FOR SENATE BILL NO. 89(L&C) am H 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 lawful operation of retail marijuana stores; relating to the registration of 05 marijuana establishments; relating to the tobacco use education and cessation fund; 06 relating to retailers of and the sale of electronic smoking products and vapor products; 07 relating to marijuana taxes; and providing for an effective date." 08 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 09 * Section 1. AS 11.76.100(a) is amended to read: 10 (a) A person commits the offense of selling or giving tobacco to a person 11 under 21 years of age [MINOR] if the person 12 (1) negligently sells a cigarette, a cigar, tobacco, or a product 13 containing tobacco to a person under 21 [19] years of age;
01 (2) is 21 [19] years of age or older and negligently exchanges or gives 02 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 03 years of age; 04 (3) maintains a vending machine that dispenses cigarettes, cigars, 05 tobacco, or products containing tobacco; or 06 (4) holds a business license endorsement under AS 43.70.075 and 07 allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 08 product containing tobacco. 09 * Sec. 2. AS 11.76.100(b) is amended to read: 10 (b) Notwithstanding the provisions of (a) of this section, a person who 11 maintains a vending machine is not in violation of (a)(3) of this section if the vending 12 machine is located 13 (1) on premises licensed as a beverage dispensary under AS 04.09.200 14 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 15 under AS 04.09.230 and 16 (A) as far as practicable from the primary entrance; and 17 (B) in a place that is directly and continually supervised by a 18 person employed on the licensed premises during the hours the vending 19 machine is accessible to the public; or 20 (2) in an employee break room or other controlled area of a private 21 work place that is not generally considered a public place and the room or area 22 contains a posted warning sign at least 11 inches by 14 inches indicating that 23 possession of tobacco by a person under 21 [19] years of age is prohibited under 24 AS 11.76.105. 25 * Sec. 3. AS 11.76.105 is amended to read: 26 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 27 products containing nicotine by a person under 21 years of age [MINOR]. (a) 28 Except as provided in (e) of this section, a [A] person under 21 [19] years of age 29 may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 30 an electronic smoking product, or a product containing nicotine in this state. [THIS 31 SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN
01 ADULT CORRECTIONAL FACILITY.] 02 (b) In a prosecution under (a) of this section for possession of an electronic 03 smoking product or a product containing nicotine, it is an affirmative defense that the 04 electronic smoking product or product containing nicotine possessed by the person 05 under 21 [19] years of age was intended or expected to be consumed without being 06 combusted, and the electronic smoking product or product containing nicotine 07 (1) has been approved by the United States Food and Drug 08 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 09 or for other medical purposes; 10 (2) was being marketed and sold for the approved purposes; and 11 (3) was 12 (A) prescribed by a health care professional; 13 (B) given to the person by the person's parent or guardian; 14 (C) provided by a state-approved tobacco cessation program 15 administered by the Department of Health; or 16 (D) provided by a pharmacist to a person 18 years of age or 17 older without a prescription. 18 (c) Possession of tobacco, an electronic smoking product, or a product 19 containing nicotine by a person under 21 years of age [MINOR] is a violation 20 punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 21 place of any fine imposed for the violation of this subsection, the court may refer 22 a defendant, at the request of the defendant, to a tobacco education program. 23 * Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 24 (d) The supreme court shall establish by rule or order a schedule of bail 25 amounts that may be forfeited without court appearance for a violation of this section. 26 The supreme court, in establishing scheduled amounts of bail under this section, may 27 not allow for disposition of an offense without court appearance for a person under 18 28 years of age who is cited for a violation of this section. 29 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 30 of age who is employed by a person with a business license endorsement under 31 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a
01 product containing tobacco, an electronic smoking product, or a product containing 02 nicotine. 03 * Sec. 5. AS 11.76.106(b) is amended to read: 04 (b) Subsection (a) does not apply if the sale 05 (1) is by vending machine as provided under AS 11.76.100(b) or 06 11.76.109(d); 07 (2) is a wholesale transaction, the person is licensed as a manufacturer 08 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 09 transactions occur; 10 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 11 products containing tobacco, electronic smoking products, or products containing 12 nicotine and who restricts access to the premises to only those individuals who are 21 13 [19] years of age or older; or 14 (4) is of electronic smoking products over the Internet to a person 21 15 [19] years of age or older. 16 * Sec. 6. AS 11.76.109(a) is amended to read: 17 (a) A person commits the offense of selling or giving an electronic smoking 18 product or a product containing nicotine to a person under 21 years of age [MINOR] 19 if the person 20 (1) negligently sells an electronic smoking product or a product 21 containing nicotine to a person under 21 [19] years of age; 22 (2) is 21 [19] years of age or older and negligently exchanges or gives 23 an electronic smoking product or a product containing nicotine to a person under 21 24 [19] years of age; 25 (3) maintains a vending machine that dispenses electronic smoking 26 products or products containing nicotine; or 27 (4) holds a business license endorsement under AS 43.70.075 and 28 allows a person under 21 [19] years of age to sell an electronic smoking product or a 29 product containing nicotine. 30 * Sec. 7. AS 11.76.109(b) is amended to read: 31 (b) The provisions of (a) of this section do not apply to the sale, exchange, or
01 gift to a person under 21 [19] years of age of an electronic smoking product or a 02 product containing nicotine that is intended or expected to be consumed without being 03 combusted if the electronic smoking product or product containing nicotine 04 (1) has been approved by the United States Food and Drug 05 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 06 or for other medical purposes; 07 (2) is being marketed and sold solely for the approved purposes; and 08 (3) is 09 (A) prescribed by a health care professional; 10 (B) given to a person by the person's parent or legal guardian; 11 (C) provided by a state-approved tobacco cessation program 12 administered by the Department of Health; or 13 (D) provided by a pharmacist to a person 18 years of age or 14 older without a prescription. 15 * Sec. 8. AS 11.76.109(d) is amended to read: 16 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 17 machine is not in violation of (a)(3) of this section if the vending machine is located 18 (1) on premises licensed as a beverage dispensary under AS 04.09.200 19 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 20 under AS 04.09.230, and is located 21 (A) as far as practicable from the primary entrance; and 22 (B) in a place that is directly and continually supervised by a 23 person employed on the licensed premises during the hours the vending 24 machine is accessible to the public; or 25 (2) in an employee break room or other controlled area of a private 26 work place that is not generally considered a public place and the room or area 27 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 28 possession of electronic smoking products or products containing nicotine by a person 29 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 30 [THIS SECTION]. 31 * Sec. 9. AS 11.76.109(g) is amended to read:
01 (g) Selling or giving an electronic smoking product or a product containing 02 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 03 conviction, is punishable by a fine of not less than $300. 04 * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 05 (69) "nicotine" includes a chemical or chemical compound intended, 06 when introduced into the human body, to mimic or simulate the effect of nicotine from 07 tobacco. 08 * Sec. 11. AS 17.38.070(a) is amended to read: 09 (a) Notwithstanding any other provision of law, the following acts, when 10 performed by a retail marijuana store with a current, valid registration, or a person 21 11 years of age or older who is acting in the person's capacity as an owner, employee, or 12 agent of a retail marijuana store, are lawful and are not an offense under state law or a 13 basis for seizure or forfeiture of assets under state law: 14 (1) possessing, displaying, storing, or transporting marijuana or 15 marijuana products, except that marijuana and marijuana products may not be 16 displayed in a manner that is visible to the general public from a public right-of-way; 17 (2) delivering or transferring marijuana or marijuana products to a 18 marijuana testing facility; 19 (3) receiving marijuana or marijuana products from a marijuana testing 20 facility; 21 (4) purchasing marijuana from a marijuana cultivation facility; 22 (5) purchasing marijuana or marijuana products from a marijuana 23 product manufacturing facility; and 24 (6) delivering, distributing, or selling marijuana or marijuana products 25 to a consumer, a marijuana cultivation facility, or a marijuana product 26 manufacturing facility [CONSUMERS]. 27 * Sec. 12. AS 17.38.200(a) is amended to read: 28 (a) Each application or renewal application for a registration to operate a 29 marijuana establishment shall be submitted to the board. A renewal application may be 30 submitted up to 90 days before the expiration of the marijuana establishment's 31 registration. When filing an application for a new registration under this subsection,
01 the applicant shall submit the applicant's fingerprints and the fees required by the 02 Department of Public Safety under AS 12.62.160 for criminal justice information and 03 a national criminal history record check. When filing an application for renewal of 04 registration, an applicant shall submit the applicant's fingerprints and the fees required 05 by the Department of Public Safety under AS 12.62.160 for criminal justice 06 information and a national criminal history record check every six [FIVE] years. The 07 board shall forward the fingerprints and fees to the Department of Public Safety to 08 obtain a report of criminal justice information under AS 12.62 and a national criminal 09 history record check under AS 12.62.400. 10 * Sec. 13. AS 17.38.200(d) is amended to read: 11 (d) Within 45 to 90 days after receiving an application or renewal application, 12 the board shall issue a biennial [AN ANNUAL] registration to the applicant unless 13 the board finds the applicant is not in compliance with regulations enacted under 14 [PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 15 government that the applicant is not in compliance with ordinances and regulations 16 made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 17 * Sec. 14. AS 17.38.210(e) is amended to read: 18 (e) A local government may establish a schedule of biennial [ANNUAL] 19 operating, registration, and application fees for marijuana establishments, provided 20 that the local government may charge the 21 (1) application fee only if an application is submitted to the local 22 government in accordance with (f) of this section; and 23 (2) registration fee only if a registration is issued by the local 24 government in accordance with (f) of this section. 25 * Sec. 15. AS 17.38.210(f) is amended to read: 26 (f) If the board does not issue a registration to an applicant within 90 days 27 after receiving [OF RECEIPT OF] the application filed in accordance with 28 AS 17.38.200 and does not notify the applicant of the specific, permissible reason for 29 its denial, in writing and within that [SUCH] time period, or if the board has adopted 30 regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications 31 under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15
01 months after February 24, 2015, the applicant may resubmit its application directly to 02 the local regulatory authority, under [PURSUANT TO] (c) of this section, and the 03 local regulatory authority may issue a biennial [AN ANNUAL] registration to the 04 applicant. If an application is submitted to a local regulatory authority under this 05 subsection, the board shall forward to the local regulatory authority the application fee 06 paid by the applicant to the board upon request by the local regulatory authority. 07 * Sec. 16. AS 17.38.210(h) is amended to read: 08 (h) A local regulatory authority issuing a registration to an applicant shall do 09 so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted 10 application unless the local regulatory authority finds and notifies the applicant that 11 the applicant is not in compliance with ordinances and regulations made under 12 [PURSUANT TO] (b) of this section in effect at the time the application is submitted 13 to the local regulatory authority. The local government shall notify the board if a 14 biennial [AN ANNUAL] registration has been issued to the applicant. 15 * Sec. 17. AS 17.38.210(j) is amended to read: 16 (j) A subsequent or renewed registration may be issued under (f) of this 17 section on a biennial [AN ANNUAL] basis only upon resubmission to the local 18 government of a new application submitted to the board under [PURSUANT TO] 19 AS 17.38.200. 20 * Sec. 18. AS 17.38.320 is amended to read: 21 Sec. 17.38.320. Effect on registrations of prohibition of marijuana 22 establishments. If a majority of voters vote to prohibit the operation of marijuana 23 establishments under AS 17.38.300, the board may not issue, renew, or transfer, 24 between persons or locations, a registration for a marijuana establishment located 25 within the perimeter of the established village. A registration that may not be renewed 26 because of a local option election held under AS 17.38.300 is void 90 days after the 27 results of the election are certified. A registration that expires during the 90 days after 28 the results of a local option election are certified may be extended, until it is void 29 under this section, by payment of a prorated portion of the biennial [ANNUAL] 30 registration fee. 31 * Sec. 19. AS 17.38.900(18) is amended to read:
01 (18) "retail marijuana store" means an entity registered to purchase 02 marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana 03 products from marijuana product manufacturing facilities, and to sell marijuana and 04 marijuana products to consumers, marijuana cultivation facilities, and marijuana 05 product manufacturing facilities; 06 * Sec. 20. 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. 21. 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 - 43.50.880. 05 * Sec. 22. 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. 23. 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. 24. AS 43.50.190(d) is amended to read: 02 (d) A portion of the annual proceeds of the tax levied under (a) of this section 03 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 04 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 05 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 06 UNDER AS 37.05.580(a).] 07 * Sec. 25. AS 43.50 is amended by adding a new section to read: 08 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 09 (a) A person who is not licensed under this chapter may not ship or cause to be 10 shipped a tobacco product to a person in this state unless the person receiving the 11 tobacco product is 12 (1) licensed under this chapter; 13 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 14 or 19 U.S.C. 1555; or 15 (3) an instrumentality of the federal government or an Indian tribal 16 organization authorized by law to possess tobacco products not taxed under this 17 chapter. 18 (b) A person who is licensed under this chapter may not ship or cause to be 19 shipped a tobacco product to a person in this state unless the person receiving the 20 tobacco product 21 (1) is licensed under this chapter; 22 (2) holds a business license endorsement under AS 43.70.075; 23 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 24 1311 or 19 U.S.C. 1555; 25 (4) is an instrumentality of the federal government or an Indian tribal 26 organization authorized by law to possess tobacco products not taxed under this 27 chapter; 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, the 30 individual is receiving the tobacco product for personal consumption, and the tax 31 imposed on the tobacco product under this chapter has been paid.
01 (c) A common or contract carrier may not knowingly transport a tobacco 02 product to a person in this state unless the person 03 (1) shipping the tobacco product is licensed under this chapter and, 04 before shipment, provides the common or contract carrier with a copy of the person's 05 current license issued by the department and 06 (A) an affidavit from the intended recipient certifying that the 07 person receiving the tobacco product is a person described under (b)(1) - (4) of 08 this section; or 09 (B) the common or contract carrier verifies the age of the 10 recipient as 21 years of age or older before delivery; or 11 (2) receiving the tobacco product is a person described under (a)(2) or 12 (3) of this section or is licensed under this chapter and, before receipt, provides the 13 common or contract carrier with a copy of the person's current license issued by the 14 department. 15 (d) If a tobacco product is transported by a common or contract carrier to a 16 home or residence, it is rebuttably presumed that the common or contract carrier knew 17 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 18 of this section, unless the person shipping the tobacco product has satisfied the 19 requirements in (c)(1) of this section. 20 (e) A person, other than a common or contract carrier, may not knowingly 21 transport a tobacco product to a person in this state, unless the recipient of the tobacco 22 product is a person described under (b)(1) - (5) of this section. 23 (f) A person who ships or causes to be shipped a tobacco product to a person 24 in this state shall plainly and visibly mark the container or wrapping with the words 25 "tobacco product" if the tobacco product is shipped in a container or wrapping other 26 than the manufacturer's original container or wrapping of the tobacco 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 a 29 tobacco 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 (i) A person who violates the provisions of this section is jointly and severally 02 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 03 permitted by the Constitution of the United States, a person who violates the 04 provisions of this section is required to collect the taxes and pay them to the 05 department. 06 * Sec. 26. AS 43.50 is amended by adding new sections to read: 07 Article 8. Electronic Smoking Products Sales, Shipping, and Licensing. 08 Sec. 43.50.850. Licensing. (a) Except as provided in (g) of this section, a 09 person must be licensed by the department if the person engages in the business of 10 selling electronic smoking products at retail. 11 (b) The department, upon application and payment of a fee of $50, shall issue 12 a license for one year to a person who applies for a license under (a) of this section. 13 (c) The department may refuse to issue a license under this section if 14 (1) there is reasonable cause to believe the information submitted in 15 the application is false or misleading and is not made in good faith; or 16 (2) the applicant is not in good standing under AS 10.06 (Alaska 17 Corporations Code). 18 (d) A license issued under this section must include the name and address of 19 the licensee, the type of business to be conducted, and the year for which the license is 20 issued. 21 (e) The department may renew a license issued under this section for a fee of 22 $50 if the applicant is in good standing under AS 10.06 (Alaska Corporations Code). 23 (f) The department may suspend, revoke, or refuse to renew a license issued 24 under this section as provided in AS 43.50.070. 25 (g) A license required by this section is in addition to any other license 26 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 27 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 28 (h) A license issued under this section is not assignable or transferable, except 29 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 30 if the business of the licensee is transferred to another by operation of law, the 31 department may extend the license for a limited time to the executor, administrator,
01 trustee, receiver, or transferee. 02 Sec. 43.50.860. Marketing and distribution of electronic smoking 03 products. A person licensed under this chapter may not 04 (1) distribute an electronic smoking product designed or packaged so 05 as not to be clearly recognizable as an electronic smoking product; or 06 (2) market an electronic smoking product, including a flavored 07 electronic smoking product, in a manner likely to promote use of the electronic 08 smoking product by a person under 21 years of age. 09 Sec. 43.50.870. Restrictions on shipping or transporting electronic 10 smoking products. (a) A person who is not licensed under this chapter may not ship 11 or cause to be shipped an electronic smoking product to a person in this state unless 12 the person receiving the electronic smoking 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. 18 (b) A person who is licensed under this chapter may not ship or cause to be 19 shipped an electronic smoking product to a person in this state unless the person 20 receiving the electronic smoking product 21 (1) is licensed under this chapter; 22 (2) holds a business license endorsement under AS 43.70.075; 23 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 24 1311 or 19 U.S.C. 1555; 25 (4) is an instrumentality of the federal government or an Indian tribal 26 organization; or 27 (5) is an individual 21 years of age or older and the individual's age 28 was verified at the time of purchase though a third-party verification service and the 29 individual is receiving the electronic smoking product for personal consumption. 30 (c) A common or contract carrier may not knowingly transport an electronic 31 smoking product to a person in this state unless the person
01 (1) shipping the electronic smoking product is licensed under this 02 chapter and, before shipment, provides the common or contract carrier with a copy of 03 the person's current license issued by the department and 04 (A) an affidavit from the intended recipient certifying that the 05 person receiving the electronic smoking product is a person described under 06 (b)(1) - (4) of this section; or 07 (B) the common or contract carrier verifies the age of the 08 recipient as 21 years of age or older before delivery; or 09 (2) receiving the electronic smoking product is a person described 10 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 11 provides the common or contract carrier with a copy of the person's current license 12 issued by the department. 13 (d) If an electronic smoking product is transported by a common or contract 14 carrier to a home or residence, it is rebuttably presumed that the common or contract 15 carrier knew that the recipient of the electronic smoking product was not a person 16 described under (b)(1) - (5) of this section, unless the person shipping the electronic 17 smoking product has satisfied the requirements in (c)(1) of this section. 18 (e) A person, other than a common or contract carrier, may not knowingly 19 transport an electronic smoking product to a person in this state, unless the recipient of 20 the electronic smoking product is a person described under (b)(1) - (5) of this section. 21 (f) A person who ships or causes to be shipped an electronic smoking product 22 to a person in this state shall plainly and visibly mark the container or wrapping with 23 the words "electronic smoking product" if the electronic smoking product is shipped in 24 a container or wrapping other than the manufacturer's original container or wrapping 25 of the electronic smoking product. 26 (g) A person who violates the provisions of this section is guilty of a class A 27 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 28 electronic smoking product. 29 (h) In addition to the criminal penalty under (g) of this section, the department 30 may assess a civil penalty of not more than $5,000 for each violation of this section. 31 Sec. 43.50.880. Restrictions on electronic smoking products. A person may
01 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 02 for sale or distribution in this state, or import or cause to be imported into this state for 03 sale or distribution in this state only electronic smoking products 04 (1) for which the component vapor product 05 (A) has a nicotine content of less than 60 milligrams of nicotine 06 for each milliliter of vapor product; 07 (B) is protected from breakage and leakage; 08 (C) does not contain added vitamins or other additives 09 marketed to create the impression of health benefits; in this subparagraph, 10 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 11 stimulants, and colorants; 12 (2) that are packaged to be child- and tamper-proof; and 13 (3) that are labeled to inform consumers about all vapor product 14 ingredients and nicotine content. 15 Article 9. General Provisions. 16 Sec. 43.50.990. Definitions. In this chapter, 17 (1) "electronic smoking product" has the meaning given in 18 AS 11.81.900(b); 19 (2) "vapor product" means a substance intended to be aerosolized or 20 vaporized during the use of an electronic smoking product. 21 * Sec. 27. AS 43.61.010(a) is amended to read: 22 (a) An excise tax is imposed on the sale or transfer of marijuana from a 23 marijuana cultivation facility to a retail marijuana store or marijuana product 24 manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at 25 the rate of $12.50 an [$50 PER] ounce, or proportionate part thereof, on marijuana 26 that is sold or transferred from a marijuana cultivation facility to a retail marijuana 27 store or marijuana product manufacturing facility. 28 * Sec. 28. AS 43.61.010(f) is amended to read: 29 (f) The marijuana education and treatment fund is established in the general 30 fund. In addition to the accounting under (c) of this section, the Department of 31 Administration shall separately account for 25 percent of the tax collected under this
01 section and deposit it into the marijuana education and treatment fund. The 02 Department of Administration shall deposit interest earned on the fund into the general 03 fund. Money in the fund does not lapse. The legislature may use the annual estimated 04 balance in the fund to make appropriations to the Department of Health for the 05 comprehensive marijuana use education and treatment program established under 06 AS 44.29.020(a)(14) and may use at least 50 percent of the annual estimated 07 balance in the fund to make appropriations to the youth services grant program 08 within the community-based marijuana misuse prevention component of that 09 program. 10 * Sec. 29. AS 43.61.010 is amended by adding a new subsection to read: 11 (g) A sales tax is imposed on the sale of marijuana and marijuana products 12 from a retail marijuana store to a consumer. Every consumer shall pay a seven percent 13 sales tax at a retail marijuana store for all marijuana and marijuana products intended 14 for human consumption. 15 * Sec. 30. AS 43.61.020 is amended to read: 16 Sec. 43.61.020. Quarterly statements [MONTHLY STATEMENT] and 17 payments. (a) Each retail marijuana store [CULTIVATION FACILITY] shall send a 18 statement by mail or electronically to the department on or before the last day of each 19 quarter [CALENDAR MONTH]. The statement must contain an account of the 20 amount of marijuana sold to consumers [OR TRANSFERRED TO RETAIL 21 MARIJUANA STORES AND MARIJUANA PRODUCT MANUFACTURING 22 FACILITIES IN THE STATE] during the preceding quarter [MONTH], setting out 23 [(1)] the total number of ounces, including fractional ounces, sold and 24 the total value of the marijuana sold [OR TRANSFERRED; 25 (2) THE NAMES AND ALASKA ADDRESS OF EACH BUYER 26 AND TRANSFEREE; AND 27 (3) THE WEIGHT OF MARIJUANA SOLD OR TRANSFERRED 28 TO THE RESPECTIVE BUYERS OR TRANSFEREES]. 29 (b) The retail marijuana store [CULTIVATION FACILITY] shall pay 30 quarterly [MONTHLY] to the department [,] all taxes, computed at the rates 31 prescribed in this chapter, on the respective total quantities of the marijuana sold [OR
01 TRANSFERRED] during the preceding quarter [MONTH]. The quarterly 02 [MONTHLY] return shall be filed and the tax paid on or before the last day of each 03 quarter [MONTH] to cover the preceding quarter [MONTH]. 04 * Sec. 31. AS 43.61.030 is amended to read: 05 Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent 06 payments under this chapter shall subject the retail marijuana store [CULTIVATION 07 FACILITY] to civil penalties under AS 43.05.220. 08 (b) If a retail marijuana store [CULTIVATION FACILITY] fails to pay the 09 tax to the state, the retail marijuana store's [CULTIVATION FACILITY'S] 10 registration may be revoked in accordance with procedures established under 11 AS 17.38.190(a)(1). 12 * Sec. 32. AS 43.70.075(f) is amended to read: 13 (f) A person who holds a license endorsement issued under this section shall 14 post on the licensed premises a warning sign as described in this subsection. A 15 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 16 must read: "The sale of electronic smoking products or products containing nicotine 17 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 18 person holding an endorsement issued under this section shall display the warning sign 19 in a manner conspicuous to a person purchasing or consuming tobacco products, 20 electronic smoking products, or products containing nicotine on the licensed premises. 21 The department shall make available the warning signs required under this section to a 22 person who holds an endorsement issued under this section or a person who requests 23 the sign with the intention of displaying it. 24 * Sec. 33. AS 43.70.075(m) is amended to read: 25 (m) The department may initiate suspension of a business license endorsement 26 or the right to obtain a business license endorsement under this section by sending the 27 person subject to the suspension a notice by certified mail, return receipt requested, or 28 by delivering the notice to the person. The notice must contain information that 29 informs the person of the grounds for suspension, the length of any suspension sought, 30 and the person's right to administrative review. A suspension begins 30 days after 31 receipt of notice described in this subsection unless the person delivers a timely
01 written request for a hearing to the department in the manner provided by regulations 02 of the department. If a hearing is requested under this subsection, an administrative 03 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 04 issues by using the preponderance of the evidence test and shall, to the extent they do 05 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 06 manner provided by regulations of the department. A hearing under this subsection is 07 limited to the following questions: 08 (1) was the person holding the business license endorsement, or an 09 agent or employee of the person while acting within the scope of the agency or 10 employment of the person, convicted by plea or judicial finding of violating 11 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 12 (2) if the department does not allege a conviction of AS 11.76.100, 13 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 14 person while acting within the scope of the agency or employment of the person, 15 violate a provision of (a) or (g) of this section; 16 (3) within the 24 months before the date of the department's notice 17 under this subsection, was the person, or an agent or employee of the person while 18 acting within the scope of the agency or employment of the person, convicted of 19 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 20 violating a provision of (a) or (g) of this section; 21 (4) did the person holding the business license endorsement establish 22 that the person holding the business license endorsement had adopted and enforced an 23 education, a compliance, and a disciplinary program for agents and employees of the 24 person as provided in (t) of this section; 25 (5) did the person holding the business license endorsement overcome 26 the rebuttable presumption established in (w) of this section; 27 (6) within five years before the date of the violation that is the subject 28 of the hearing, did the department establish that the person holding the business 29 license endorsement 30 (A) previously violated (a) or (g) of this section; 31 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or
01 11.76.109 at a location or outlet in a location for which the person holds a 02 business license endorsement, or had an agent or employee previously violate 03 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 04 apply to a prior conviction that served to enhance a suspension period under 05 (d)(2) - (4) of this section; or 06 (C) engaged at a location owned by the person in other conduct 07 that was or is likely to result in the sale of tobacco, electronic smoking 08 products, or products containing nicotine to a person under 21 [19] years of 09 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 10 * Sec. 34. AS 43.70.075(t) is amended to read: 11 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 12 section, the department may reduce the license suspension period under (d) of this 13 section if the person holding the business license endorsement establishes that, before 14 the date of the violation, the person had 15 (1) adopted and enforced a written policy against selling cigarettes, 16 cigars, tobacco, products containing tobacco, electronic smoking products, or products 17 containing nicotine to a person under 21 [19] years of age in violation of 18 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 19 (2) informed the person's agents and employees of the applicable laws 20 and their requirements and conducted training on complying with the laws and 21 requirements; 22 (3) required each agent and employee of the person to sign a form 23 stating that the agent and employee has been informed of and understands the written 24 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 25 (4) determined that the agents and employees of the person had 26 sufficient experience and ability to comply with the written policy and requirements of 27 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 28 (5) required the agents and employees of the person to verify the age 29 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 30 electronic smoking products, or products containing nicotine by means of a valid 31 government issued photographic identification;
01 (6) established and enforced disciplinary sanctions for noncompliance 02 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 03 and 11.76.109; and 04 (7) monitored the compliance of the agents and employees of the 05 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 06 11.76.107, and 11.76.109. 07 * Sec. 35. AS 43.70.075(w) is amended to read: 08 (w) For purposes of (m)(5) of this section, a conviction for a violation of 09 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 10 person who holds the business license endorsement is rebuttably presumed to 11 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 12 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 13 product containing nicotine to a person under 21 [19] years of age. The person who 14 holds the business license endorsement may overcome the presumption by 15 establishing by clear and convincing evidence that the agent or employee did not 16 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 17 electronic smoking product, or a product containing nicotine to a person under 21 [19] 18 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 19 alleged in the citation issued to the agent or employee. The presentation of evidence 20 authorized by this subsection does not constitute a collateral attack on the conviction 21 described in this subsection. 22 * Sec. 36. AS 45.50.471(b) is amended by adding a new paragraph to read: 23 (58) marketing an electronic smoking product in a manner likely to 24 promote use of electronic smoking products by a person under 21 years of age; in this 25 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 26 * Sec. 37. AS 47.12.030(b) is amended to read: 27 (b) When a minor is accused of violating a statute specified in this subsection, 28 other than a statute the violation of which is a felony, this chapter and the Alaska 29 Delinquency Rules do not apply and the minor accused of the offense shall be 30 charged, prosecuted, and sentenced in the district court in the same manner as an 31 adult; if a minor is charged, prosecuted, and sentenced for an offense under this
01 subsection, the minor's parent, guardian, or legal custodian shall be present at all 02 proceedings; the provisions of this subsection apply when a minor is accused of 03 violating 04 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 05 a municipality; 06 (2) AS 11.76.105, relating to the possession of tobacco by a person 07 under 21 [19] years of age; 08 (3) a fish and game statute or regulation under AS 16; 09 (4) a parks and recreational facilities statute or regulation under 10 AS 41.21; 11 (5) [REPEALED] 12 (6) a municipal curfew ordinance, whether adopted under 13 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 14 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 15 the violation of a municipal curfew ordinance, the court shall allow a defendant the 16 option of performing community work; the value of the community work, which may 17 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 18 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 19 or work that, on the recommendation of the municipal or borough assembly, city 20 council, or traditional village council of the defendant's place of residence, would 21 benefit persons within the municipality or village who are elderly or disabled; 22 (7) AS 04.16.050, relating to consumption, possession, or control of 23 alcohol by a person under 21 years of age. 24 * Sec. 38. AS 43.61.010(b) is repealed. 25 * Sec. 39. AS 11.76.100(e) and AS 43.61.010(a) are repealed. 26 * Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 APPLICABILITY. (a) The following sections apply to offenses committed on or after 29 the effective date of those sections: 30 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 31 (2) AS 11.76.100(b), as amended by sec. 2 of this Act;
01 (3) AS 11.76.105, as amended by sec. 3 of this Act; 02 (4) AS 11.76.105(d), enacted by sec. 4 of this Act; 03 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 04 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 05 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 06 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 07 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 08 (10) AS 11.81.900(b)(69), enacted by sec. 10 of this Act; 09 (11) AS 43.50.325, enacted by sec. 25 of this Act; 10 (12) AS 43.50.870, enacted by sec. 26 of this Act; and 11 (13) AS 47.12.030(b), as amended by sec. 37 of this Act. 12 (b) AS 43.61.010(a), as amended by sec. 27 of this Act, applies to taxes accrued on or 13 after the effective date of sec. 27 of this Act. 14 * Sec. 41. Sections 11 - 19, 27, 28, and 38 of this Act take effect July 1, 2024. 15 * Sec. 42. Except as provided in sec. 41 of this Act, this Act takes effect January 1, 2025.