CSHB 49(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 the taxation of electronic smoking products and vapor products; and providing for an effective date."
00 CS FOR HOUSE BILL NO. 49(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 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) 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 by a person 19 or 20 years of age. 25 (e) The supreme court, in establishing scheduled amounts of bail under this 26 section, may not allow for disposition of an offense without court appearance for a 27 person under 18 years of age who is cited for a violation of this section. 28 (f) 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 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 (71) "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 29.35.085(c) is amended to read: 08 (c) The community work provisions of AS 47.12.030(b)(5) 09 [AS 47.12.030(b)(6)] apply to punishment for a minor's conviction of a violation of a 10 curfew ordinance for which a penalty is provided under AS 29.25.070(a). 11 * Sec. 12. AS 37.05.580(a) is amended to read: 12 (a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 13 GENERAL FUND THE] tobacco use education and cessation fund is established as a 14 separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 15 DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 16 the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 17 CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 18 use education and cessation fund is to provide a source to finance the comprehensive 19 smoking education, tobacco use prevention, and tobacco control program authorized 20 by AS 44.29.020(a)(12). 21 * Sec. 13. AS 43.50.070 is amended to read: 22 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 23 (a) The department may suspend, revoke, or refuse to renew a license issued under this 24 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 25 11.76.109, or a violation of this chapter or a regulation of the department adopted 26 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 27 was issued; or (3) if a licensee negligently sells tobacco or products containing 28 tobacco to a person who is required to, but does not, hold a license endorsement under 29 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 30 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 31 products, or electronic smoking products, or permit cigarettes, [OR] tobacco
01 products, or electronic smoking products to be sold, during the period of the 02 suspension or revocation on the premises occupied or controlled by that person. A 03 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 04 surrender, renewal, or extension of a license issued under this chapter. The department 05 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 06 that a hearing officer of the department, rather than a hearing officer assigned under 07 AS 44.62.350, may conduct hearings. 08 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 09 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 10 * Sec. 14. AS 43.50.105(b) is amended to read: 11 (b) A person who is licensed under this chapter may not ship or cause to be 12 shipped cigarettes to a person in this state unless the person receiving the cigarettes 13 (1) is licensed under this chapter; 14 (2) holds a business license endorsement under AS 43.70.075; 15 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 16 1311 or 19 U.S.C. 1555; 17 (4) is an instrumentality of the federal government or an Indian tribal 18 organization authorized by law to possess cigarettes not taxed under this chapter; or 19 (5) is an individual 21 [19] years of age or older and the individual's 20 age was verified at the time of purchase by a third-party verification service, the 21 individual is receiving the cigarettes for personal consumption, and the tax imposed 22 on the cigarettes under this chapter has been paid. 23 * Sec. 15. AS 43.50.105(c) is amended to read: 24 (c) A common or contract carrier may not knowingly transport cigarettes to a 25 person in this state unless the person 26 (1) shipping the cigarettes is licensed under this chapter and, before 27 shipment, provides the common or contract carrier with a copy of the person's current 28 license issued by the department and 29 (A) an affidavit from the intended recipient certifying that the 30 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 31 (5)] of this section; or
01 (B) the common or contract carrier verifies the age of the 02 recipient as 21 years of age or older before delivery; or 03 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 04 this section or is licensed under this chapter and, before receipt, provides the common 05 or contract carrier with a copy of the person's current license issued by the department. 06 * Sec. 16. AS 43.50.150(c) is amended to read: 07 (c) The department may enter into an agreement with a municipality that 08 imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 09 products for the purpose of jointly auditing a person liable for a tax under 10 AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 11 cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 12 * Sec. 17. AS 43.50.190(d) is amended to read: 13 (d) A portion of the annual proceeds of the tax levied under (a) of this section 14 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 15 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 16 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 17 UNDER AS 37.05.580(a).] 18 * Sec. 18. AS 43.50 is amended by adding a new section to read: 19 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 20 (a) A person who is not licensed under this chapter may not ship or cause to be 21 shipped a tobacco product to a person in this state unless the person receiving the 22 tobacco product is 23 (1) licensed under this chapter; 24 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 25 or 19 U.S.C. 1555; or 26 (3) 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. 29 (b) A person who is licensed under this chapter may not ship or cause to be 30 shipped a tobacco product to a person in this state unless the person receiving the 31 tobacco product
01 (1) is licensed under this chapter; 02 (2) holds a business license endorsement under AS 43.70.075; 03 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 04 1311 or 19 U.S.C. 1555; 05 (4) is an instrumentality of the federal government or an Indian tribal 06 organization authorized by law to possess tobacco products not taxed under this 07 chapter; or 08 (5) is an individual 21 years of age or older and the individual's age 09 was verified at the time of purchase though a third-party verification service, the 10 individual is receiving the tobacco product for personal consumption, and the tax 11 imposed on the tobacco product under this chapter has been paid. 12 (c) A common or contract carrier may not knowingly transport a tobacco 13 product to a person in this state unless the person 14 (1) shipping the tobacco product is licensed under this chapter and, 15 before shipment, provides the common or contract carrier with a copy of the person's 16 current license issued by the department and 17 (A) an affidavit from the intended recipient certifying that the 18 person receiving the tobacco product is a person described under (b)(1) - (4) of 19 this section; or 20 (B) the common or contract carrier verifies the age of the 21 recipient as 21 years of age or older before delivery; or 22 (2) receiving the tobacco product is a person described under (a)(2) or 23 (3) of this section or is licensed under this chapter and, before receipt, provides the 24 common or contract carrier with a copy of the person's current license issued by the 25 department. 26 (d) If a tobacco product is transported by a common or contract carrier to a 27 home or residence, it is rebuttably presumed that the common or contract carrier knew 28 that the recipient of the tobacco product was not a person described under (b)(1) - (5) 29 of this section, unless the person shipping the tobacco product has satisfied the 30 requirements in (c)(1) of this section. 31 (e) A person, other than a common or contract carrier, may not knowingly
01 transport a tobacco product to a person in this state, unless the recipient of the tobacco 02 product is a person described under (b)(1) - (5) of this section. 03 (f) A person who ships or causes to be shipped a tobacco product to a person 04 in this state shall plainly and visibly mark the container or wrapping with the words 05 "tobacco product" if the tobacco product is shipped in a container or wrapping other 06 than the manufacturer's original container or wrapping of the tobacco product. 07 (g) A person who violates the provisions of this section is guilty of a class A 08 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 09 tobacco product. 10 (h) In addition to the criminal penalty under (g) of this section, the department 11 may assess a civil penalty of not more than $5,000 for each violation of this section. 12 (i) A person who violates the provisions of this section is jointly and severally 13 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 14 permitted by the Constitution of the United States, a person who violates the 15 provisions of this section is required to collect the taxes and pay them to the 16 department. 17 * Sec. 19. AS 43.50 is amended by adding new sections to read: 18 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 19 Sec. 43.50.850. Tax levied; collection. (a) A tax is levied on closed electronic 20 smoking products and vapor products in the state. The tax is 25 percent of the retail 21 sales price of a closed electronic smoking product or a vapor product. 22 (b) A licensee located in the state shall collect and remit the tax to the 23 department. A licensee located outside of the state shall collect and remit the tax to the 24 department if the licensee has more than 200 transactions in the state in the current or 25 preceding calendar year. 26 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 27 (1) a closed electronic smoking product or vapor product 28 (A) sold in a facility operated by one of the uniformed services 29 of the United States; 30 (B) approved for sale by the United States Food and Drug 31 Administration as a drug, drug product, including a drug product used to treat
01 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 02 (Federal Food, Drug, and Cosmetic Act); 03 (C) if the United States Constitution or other federal laws 04 prohibit the levying of the tax on the product by the state; 05 (D) designed, marketed, and sold for the purpose of vaporizing 06 or aerosolizing marijuana, marijuana products, hemp, or hemp products if the 07 marijuana, marijuana products, hemp, or hemp products do not contain 08 nicotine and are intended for sale only in a retail marijuana store; 09 (2) marijuana or marijuana products subject to tax under AS 43.61 if 10 the marijuana or marijuana products do not contain nicotine; or 11 (3) hemp or hemp products if the hemp or hemp products do not 12 contain nicotine. 13 (b) In this section, 14 (1) "hemp" and "hemp products" mean hemp or a hemp product 15 produced by an individual registered under AS 03.05.076; 16 (2) "marijuana," "marijuana products," and "retail marijuana store" 17 have the meanings given in AS 17.38.900; 18 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 19 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 20 person must be licensed by the department if the person engages in business as a 21 retailer of an electronic smoking product. 22 (b) The department, upon application and payment of a fee of $50, shall issue 23 a license for one year to a person who applies for a license under (a) of this section. 24 (c) The department may refuse to issue a license under this section if 25 (1) there is reasonable cause to believe the information submitted in 26 the application is false or misleading and is not made in good faith; 27 (2) the applicant is not in good standing under AS 10.06 (Alaska 28 Corporations Code); or 29 (3) a tax levied under this chapter is due and unpaid by the applicant. 30 (d) A license issued under this section must include the name and address of 31 the licensee, the type of business to be conducted, and the year for which the license is
01 issued. 02 (e) The department may renew a license issued under this section for a fee of 03 $50 if the applicant 04 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 05 and 06 (2) does not have unpaid taxes under this chapter. 07 (f) The department may suspend, revoke, or refuse to renew a license issued 08 under this section as provided in AS 43.50.070. 09 (g) A license required by this section is in addition to any other license 10 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 11 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 12 (h) A license issued under this section is not assignable or transferable, except 13 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 14 if the business of the licensee is transferred to another by operation of law, the 15 department may extend the license for a limited time to the executor, administrator, 16 trustee, receiver, or transferee. 17 (i) A person licensed under this section may not 18 (1) distribute an electronic smoking product designed or packaged so 19 as not to be clearly recognizable as an electronic smoking product; or 20 (2) market an electronic smoking product, including a flavored 21 electronic smoking product, in a manner likely to promote use of the electronic 22 smoking product by a person under 21 years of age. 23 Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 24 licensee shall file a return with the department. The return must state the number or 25 amount of closed electronic smoking products, vapor products, and other electronic 26 smoking products sold by the licensee during the preceding calendar month, the 27 selling price of the electronic smoking products, and the amount of tax imposed on the 28 closed electronic smoking products and vapor products. 29 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 30 of all electronic smoking products of the licensee, including purchase prices, sales 31 prices, the names and addresses of the sellers, the dates of delivery, the quantities of
01 electronic smoking products, and the trade names and brands. Statements and records 02 required by this section must be in the form prescribed by the department, preserved 03 for three years, and available for inspection upon demand by the department. 04 Sec. 43.50.875. Disposition of proceeds. The annual proceeds of the tax 05 levied under AS 43.50.850 shall be deposited into the tobacco use education and 06 cessation fund established in AS 37.05.580 and may be appropriated from the fund for 07 the purposes listed in AS 44.29.020(a)(12) or for efforts to prevent or detect the use of 08 tobacco or electronic smoking products in a school. 09 Sec. 43.50.880. 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 authorized by law to possess electronic smoking products not taxed under 18 this chapter. 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 authorized by law to possess electronic smoking products not taxed under 28 this 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 electronic smoking product for personal consumption, and
01 the tax imposed on the electronic smoking product under this chapter has been paid. 02 (c) A common or contract carrier may not knowingly transport an electronic 03 smoking product to a person in this state unless the person 04 (1) shipping the electronic smoking product is licensed under this 05 chapter and, before shipment, provides the common or contract carrier with a copy of 06 the person's current license issued by the department and 07 (A) an affidavit from the intended recipient certifying that the 08 person receiving the electronic smoking product is a person described under 09 (b)(1) - (4) of 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 electronic smoking product is a person described 13 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 14 provides the common or contract carrier with a copy of the person's current license 15 issued by the department. 16 (d) If an electronic smoking product is transported by a common or contract 17 carrier to a home or residence, it is rebuttably presumed that the common or contract 18 carrier knew that the recipient of the electronic smoking product was not a person 19 described under (b)(1) - (5) of this section, unless the person shipping the electronic 20 smoking product has satisfied the requirements in (c)(1) of this section. 21 (e) A person, other than a common or contract carrier, may not knowingly 22 transport an electronic smoking product to a person in this state, unless the recipient of 23 the electronic smoking product is a person described under (b)(1) - (5) of this section. 24 (f) A person who ships or causes to be shipped an electronic smoking product 25 to a person in this state shall plainly and visibly mark the container or wrapping with 26 the words "electronic smoking product" if the electronic smoking product is shipped in 27 a container or wrapping other than the manufacturer's original container or wrapping 28 of the electronic smoking product. 29 (g) A person who violates the provisions of this section is guilty of a class A 30 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 31 electronic smoking product.
01 (h) In addition to the criminal penalty under (g) of this section, the department 02 may assess a civil penalty of not more than $5,000 for each violation of this section. 03 (i) A person who violates the provisions of this section is jointly and severally 04 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 05 Constitution of the United States, a person who violates the provisions of this section 06 is required to collect the taxes and pay them to the department. 07 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 08 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 09 for sale or distribution in this state, or import or cause to be imported into this state for 10 sale or distribution in this state only electronic smoking products 11 (1) for which the component vapor product 12 (A) has a nicotine content of not more than 50 milligrams of 13 nicotine for each milliliter of vapor product; 14 (B) is protected from breakage and leakage; 15 (C) does not contain added vitamins or other additives 16 marketed to create the impression of health benefits; in this subparagraph, 17 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 18 stimulants, and colorants; 19 (2) that are packaged to be child- and tamper-proof; and 20 (3) that are labeled to inform consumers about all vapor product 21 ingredients and nicotine content. 22 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 23 (1) means the total amount of consideration, including cash, credit, 24 property, and services, for which an electronic smoking product is purchased or sold, 25 valued in money, whether received in money or otherwise, without any deduction for 26 (A) the seller's cost of the electronic smoking product sold; 27 (B) the cost of materials used, labor or service cost, interest, 28 losses, cost of transportation, taxes, or other expenses of the seller; 29 (C) charges by the seller for services necessary to complete the 30 sale; 31 (D) delivery charges;
01 (2) does not include 02 (A) discounts, including cash or coupons that are not 03 reimbursed by a third party, that are allowed by a seller and taken by a 04 purchaser on a sale; 05 (B) interest, financing, and carrying charges from credit 06 extended on the sale of an electronic smoking product if the amount is 07 separately stated on the invoice, bill of sale, or similar document given to the 08 purchaser; and 09 (C) taxes legally imposed directly on the consumer that are 10 separately stated on the invoice, bill of sale, or similar document given to the 11 purchaser. 12 Article 9. General Provisions. 13 Sec. 43.50.990. Definitions. In this chapter, 14 (1) "closed electronic smoking product" means a single-use electronic 15 smoking product that includes a pre-filled disposable cartridge of vapor product; 16 (2) "electronic smoking product" 17 (A) includes 18 (i) a product that can be used to deliver aerosolized or 19 vaporized nicotine to the person inhaling; 20 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 21 or other similar device of any shape; 22 (iii) a component, part, accessory, or device related to 23 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 24 device of any shape; 25 (iv) a vapor product used in a device or product 26 described in (i) or (ii) of this subparagraph; 27 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 28 or other similar device of any shape sold together with a solution, vapor 29 product, or other similar product as a disposable nonrefillable unit; 30 (B) does not include a 31 (i) battery, battery charger, heating element, electronic
01 coil, or mouthpiece intended for use in an electronic smoking product, 02 when sold separately from the electronic smoking product; 03 (ii) cartridge, pod, tank, or similar container intended to 04 transport a vapor product, if sold empty; 05 (3) "nicotine" has the meaning given in AS 11.81.900(b); 06 (4) "retailer" means a person in the state who is engaged in the 07 business of selling electronic smoking products at retail; 08 (5) "vapor product" means a substance intended to be aerosolized or 09 vaporized during the use of an electronic smoking product. 10 * Sec. 20. AS 43.70.075(f) is amended to read: 11 (f) A person who holds a license endorsement issued under this section shall 12 post on the licensed premises a warning sign as described in this subsection. A 13 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 14 must read: "The sale of electronic smoking products or products containing nicotine 15 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 16 person holding an endorsement issued under this section shall display the warning sign 17 in a manner conspicuous to a person purchasing or consuming tobacco products, 18 electronic smoking products, or products containing nicotine on the licensed premises. 19 The department shall make available the warning signs required under this section to a 20 person who holds an endorsement issued under this section or a person who requests 21 the sign with the intention of displaying it. 22 * Sec. 21. AS 43.70.075(m) is amended to read: 23 (m) The department may initiate suspension of a business license endorsement 24 or the right to obtain a business license endorsement under this section by sending the 25 person subject to the suspension a notice by certified mail, return receipt requested, or 26 by delivering the notice to the person. The notice must contain information that 27 informs the person of the grounds for suspension, the length of any suspension sought, 28 and the person's right to administrative review. A suspension begins 30 days after 29 receipt of notice described in this subsection unless the person delivers a timely 30 written request for a hearing to the department in the manner provided by regulations 31 of the department. If a hearing is requested under this subsection, an administrative
01 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 02 issues by using the preponderance of the evidence test and shall, to the extent they do 03 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 04 manner provided by regulations of the department. A hearing under this subsection is 05 limited to the following questions: 06 (1) was the person holding the business license endorsement, or an 07 agent or employee of the person while acting within the scope of the agency or 08 employment of the person, convicted by plea or judicial finding of violating 09 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 10 (2) if the department does not allege a conviction of AS 11.76.100, 11 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 12 person while acting within the scope of the agency or employment of the person, 13 violate a provision of (a) or (g) of this section; 14 (3) within the 24 months before the date of the department's notice 15 under this subsection, was the person, or an agent or employee of the person while 16 acting within the scope of the agency or employment of the person, convicted of 17 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 18 violating a provision of (a) or (g) of this section; 19 (4) did the person holding the business license endorsement establish 20 that the person holding the business license endorsement had adopted and enforced an 21 education, a compliance, and a disciplinary program for agents and employees of the 22 person as provided in (t) of this section; 23 (5) did the person holding the business license endorsement overcome 24 the rebuttable presumption established in (w) of this section; 25 (6) within five years before the date of the violation that is the subject 26 of the hearing, did the department establish that the person holding the business 27 license endorsement 28 (A) previously violated (a) or (g) of this section; 29 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 30 11.76.109 at a location or outlet in a location for which the person holds a 31 business license endorsement, or had an agent or employee previously violate
01 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 02 apply to a prior conviction that served to enhance a suspension period under 03 (d)(2) - (4) of this section; or 04 (C) engaged at a location owned by the person in other conduct 05 that was or is likely to result in the sale of tobacco, electronic smoking 06 products, or products containing nicotine to a person under 21 [19] years of 07 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 08 * Sec. 22. AS 43.70.075(t) is amended to read: 09 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 10 section, the department may reduce the license suspension period under (d) of this 11 section if the person holding the business license endorsement establishes that, before 12 the date of the violation, the person had 13 (1) adopted and enforced a written policy against selling cigarettes, 14 cigars, tobacco, products containing tobacco, electronic smoking products, or products 15 containing nicotine to a person under 21 [19] years of age in violation of 16 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 17 (2) informed the person's agents and employees of the applicable laws 18 and their requirements and conducted training on complying with the laws and 19 requirements; 20 (3) required each agent and employee of the person to sign a form 21 stating that the agent and employee has been informed of and understands the written 22 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 23 (4) determined that the agents and employees of the person had 24 sufficient experience and ability to comply with the written policy and requirements of 25 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 26 (5) required the agents and employees of the person to verify the age 27 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 28 electronic smoking products, or products containing nicotine by means of a valid 29 government issued photographic identification; 30 (6) established and enforced disciplinary sanctions for noncompliance 31 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107,
01 and 11.76.109; and 02 (7) monitored the compliance of the agents and employees of the 03 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 04 11.76.107, and 11.76.109. 05 * Sec. 23. AS 43.70.075(w) is amended to read: 06 (w) For purposes of (m)(5) of this section, a conviction for a violation of 07 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 08 person who holds the business license endorsement is rebuttably presumed to 09 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 10 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 11 product containing nicotine to a person under 21 [19] years of age. The person who 12 holds the business license endorsement may overcome the presumption by 13 establishing by clear and convincing evidence that the agent or employee did not 14 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 15 electronic smoking product, or a product containing nicotine to a person under 21 [19] 16 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 17 alleged in the citation issued to the agent or employee. The presentation of evidence 18 authorized by this subsection does not constitute a collateral attack on the conviction 19 described in this subsection. 20 * Sec. 24. AS 45.50.471(b) is amended by adding a new paragraph to read: 21 (58) marketing an electronic smoking product in a manner likely to 22 promote use of electronic smoking products by a person under 21 years of age; in this 23 paragraph, "electronic smoking product" 24 (A) includes 25 (i) a product that can be used to deliver aerosolized or 26 vaporized nicotine to the person inhaling; 27 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 28 or other similar device of any shape; 29 (iii) a component, part, accessory, or device related to 30 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 31 device of any shape;
01 (iv) a vapor product used in a device or product 02 described in (i) or (ii) of this subparagraph; 03 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 04 or other similar device of any shape sold together with a solution, vapor 05 product, or other similar product as a disposable nonrefillable unit; 06 (B) does not include a 07 (i) battery, battery charger, heating element, electronic 08 coil, or mouthpiece intended for use in an electronic smoking product, 09 when sold separately from the electronic smoking product; 10 (ii) cartridge, pod, tank, or similar container intended to 11 transport a vapor product, if sold empty. 12 * Sec. 25. AS 45.50.471(b)(58), enacted by sec. 24 of this Act, is amended to read: 13 (58) marketing an electronic smoking product in a manner likely to 14 promote use of electronic smoking products by a person under 21 years of age; in this 15 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990 16 [(A) INCLUDES 17 (i) A PRODUCT THAT CAN BE USED TO 18 DELIVER AEROSOLIZED OR VAPORIZED NICOTINE TO THE 19 PERSON INHALING; 20 (ii) AN e-CIGARETTE, e-CIGAR, e-PIPE, e- 21 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 22 SHAPE; 23 (iii) A COMPONENT, PART, ACCESSORY, OR 24 DEVICE RELATED TO AN e-CIGARETTE, e-CIGAR, e-PIPE, e- 25 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 26 SHAPE; 27 (iv) A VAPOR PRODUCT USED IN A DEVICE OR 28 PRODUCT DESCRIBED IN (i) OR (ii) OF THIS SUBPARAGRAPH; 29 (v) AN e-CIGARETTE, e-CIGAR, e-PIPE, e- 30 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 31 SHAPE SOLD TOGETHER WITH A SOLUTION, VAPOR
01 PRODUCT, OR OTHER SIMILAR PRODUCT AS A DISPOSABLE 02 NONREFILLABLE UNIT; 03 (B) DOES NOT INCLUDE A 04 (i) BATTERY, BATTERY CHARGER, HEATING 05 ELEMENT, ELECTRONIC COIL, OR MOUTHPIECE INTENDED 06 FOR USE IN AN ELECTRONIC SMOKING PRODUCT, WHEN 07 SOLD SEPARATELY FROM THE ELECTRONIC SMOKING 08 PRODUCT; 09 (ii) CARTRIDGE, POD, TANK, OR SIMILAR 10 CONTAINER INTENDED TO TRANSPORT A VAPOR PRODUCT, 11 IF SOLD EMPTY]. 12 * Sec. 26. AS 47.12.030(b) is amended to read: 13 (b) When a minor is accused of violating a statute specified in this subsection, 14 other than a statute the violation of which is a felony, this chapter and the Alaska 15 Delinquency Rules do not apply and the minor accused of the offense shall be 16 charged, prosecuted, and sentenced in the district court in the same manner as an 17 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 18 subsection, the minor's parent, guardian, or legal custodian shall be present at all 19 proceedings; the provisions of this subsection apply when a minor is accused of 20 violating 21 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 22 a municipality; 23 (2) AS 11.76.105, relating to the possession of tobacco by a person 24 under 21 [19] years of age; 25 (3) a fish and game statute or regulation under AS 16; 26 (4) a parks and recreational facilities statute or regulation under 27 AS 41.21; 28 (5) [REPEALED 29 (6)] a municipal curfew ordinance, whether adopted under 30 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 31 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for
01 the violation of a municipal curfew ordinance, the court shall allow a defendant the 02 option of performing community work; the value of the community work, which may 03 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 04 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 05 or work that, on the recommendation of the municipal or borough assembly, city 06 council, or traditional village council of the defendant's place of residence, would 07 benefit persons within the municipality or village who are elderly or disabled; 08 (6) [(7)] AS 04.16.050, relating to consumption, possession, or control 09 of alcohol by a person under 21 years of age. 10 * Sec. 27. AS 11.76.100(e) is repealed. 11 * Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to 12 read: 13 APPLICABILITY. The following sections apply to offenses committed on or after the 14 effective date of those sections: 15 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 16 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 17 (3) AS 11.76.105, as amended by sec. 3 of this Act; 18 (4) AS 11.76.105(d) - (f), enacted by sec. 4 of this Act; 19 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 20 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 21 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 22 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 23 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 24 (10) AS 11.81.900(b)(71), enacted by sec. 10 of this Act; 25 (11) AS 43.50.325, enacted by sec. 18 of this Act; 26 (12) AS 43.50.880, enacted by sec. 19 of this Act; and 27 (13) AS 47.12.030(b), as amended by sec. 26 of this Act. 28 * Sec. 29. Sections 13, 16, 19, and 25 of this Act take effect January 1, 2027. 29 * Sec. 30. Except as provided in sec. 29 of this Act, this Act takes effect January 1, 2026.