2022-10-05                     Senate Journal                      Page 3056
SB 45                                                                                                                         
Letter dated September 8 was received:                                                                                          
                                                                                                                                
Dear President Micciche:                                                                                                        
                                                                                                                                
Under the authority vested in me by Article II, Section 15,                                                                     
Constitution of the State of Alaska, I have vetoed the following bill:                                                          
                                                                                                                                
         HOUSE CS FOR CS FOR SENATE BILL                                                                                        
         NO. 45(FIN) am H "An Act raising the minimum age                                                                       
         to purchase, sell, exchange, or possess tobacco, a                                                                     
         product containing nicotine, or an electronic smoking                                                                  
         product; relating to selling a tobacco product; relating                                                               
         to possession of tobacco, electronic smoking                                                                           
         products, or products containing nicotine by an                                                                        
         underaged person; relating to the definition of                                                                        
         'nicotine'; relating to transporting tobacco, a product                                                                
         containing nicotine, or an electronic smoking                                                                          
         product; relating to the taxation of electronic smoking                                                                
         products; relating to electronic smoking products;                                                                     
         relating to the marketing of electronic smoking                                                                        
         products; relating to tobacco products; and providing                                                                  
         for an effective date."                                                                                                
                                                                                                                                
Senate Bill 45 sought to create parity amongst tobacco users by                                                                 
expanding an excise tax on tobacco products other than cigarettes                                                               
(OTP) to include electronic smoking products (ESPs). ESPs are                                                                   
currently not subject to state-level taxes as they are not considered                                                           
cigarettes or OTP under current law, and this bill would tax them at                                                            
35% of wholesale value.                                                                                                         
                                                                                                                                

2022-10-05                     Senate Journal                      Page 3057
There were many conversations about what an appropriate level to tax                                                            
would be, but ultimately a tax increase on the people of Alaska is not                                                          
something I can support.                                                                                                        
                                                                                                                                
While SB 45 would also increase the age in which a person can                                                                   
purchase nicotine products from 19 to 21, it is not possible to separate                                                        
out components of a bill once it has been passed by the Legislature.                                                            
Therefore, I have chosen to veto HCS CSSB 45(FIN) AM H.                                                                         
                                                                                                                                
Sincerely,                                                                                                                      
                                                                                                                                
/s/                                                                                                                             
                                                                                                                                
Mike Dunleavy                                                                                                                   
Governor