Legislature(2025 - 2026)ADAMS 519
03/27/2025 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB49 | |
| HB23 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 53 | TELECONFERENCED | |
| += | HB 55 | TELECONFERENCED | |
| + | HB 49 | TELECONFERENCED | |
| + | HB 23 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 49
"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."
2:17:12 PM
Representative Hannan, as the sponsor of HB 49, introduced
the bill.
2:19:32 PM
HUNTER MEACHUM, STAFF, REPRESENTATIVE SARA HANNAN,
introduced the PowerPoint presentation "House Bill 49;
Protecting Alaska's Youth from Lifelong Nicotine Addiction"
dated March 27, 2025 (copy on file).
Ms. Meachum addressed slide 2, "House Bill 49":
Align state law with federal law in raising the
minimum age to buy or possess tobacco and electronic
smoking products (ESPs) from 19 to 21.
Establish a 25 percent sales tax for ESPs.
Representative Stapp queried the current effective sales
tax rate for regular tobacco products.
Representative Hannan responded that there was not
currently a state sales tax, but rather a wholesale tax.
Representative Stapp queried the wholesale tax rate.
Ms. Meachum would need to follow up.
2:22:17 PM
BRANDON SPANOS, DEPUTY DIRECTOR, TAX DIVISION, DEPARTMENT
OF REVENUE, (via teleconference), responded that the
wholesale tax for other tobacco products was 75 percent of
the wholesale price.
Representative Stapp queried how materially different it
was from what was being proposed in the bill.
Mr. Spanos responded that it would create a retail sales
tax, which would be a different taxpayer base.
Representative Stapp asked why there would be a different
tax structure if they were to tax wholesalers on tobacco.
Ms. Meachum responded that it was the best option because
of the variety of products.
Representative Allard appreciated the bill.
2:25:52 PM
Ms. Meachum pointed to slide 3, "What are E-cigs?"
Vapes, vaporizers, Vape pens, hookah pens, electronic
cigarettes, e-cigars, e-pipes are some of the many
terms used to describe electronic nicotine delivery
systems.
These products use a battery to heat up a liquid which
creates an aerosol that is inhaled. The liquid in
these products contain nicotine as well as flavorings,
and harmful chemicals.
Representative Tomaszewski wondered whether there would be
a ban on the flavored products.
Ms. Meachum responded that it did not ban flavored
products.
Representative Tomaszewski suggested that the cigarettes
should taste bad so no one would start, and he suggested
that they should taste like vomit.
Representative Hannan shared that when she was young, it
was not uncommon for parents to make kids smoke an entire
cigarette in order for the children to be deterred from
smoking.
2:30:02 PM
Representative Stapp asked if it was legal for high school
kids to use vape products.
Representative Hannan explained that the age was 19 and
there were 19 year olds in high school.
Representative Stapp asked if it would be more or less
likely that kids would smoke cigarettes instead of vape
Representative Hannan replied that when she started
teaching, there were smoking areas for kids, and when she
left teaching 30 years later, accusing someone of smoking
was a harsh insult.
2:33:23 PM
Ms. Meachum continued on slide 4 and talked about the
marketing for e-cigarettes.
Representative Tomaszewski asked if there was any
discussion about marketing techniques that would target
kids.
Representative Hannan responded that tobacco had been
banned from TV broadcast for decades, and she could
research the advertising on e-cigarette products.
Representative Tomaszewski noted that there were 6 states
that had a ban on flavors.
2:36:37 PM
Ms. Meachum pointed to slide 5, "What e-cigs are
NOT":
Healthy... These products deliver harmful chemicals
and contain nicotine, which is highly addictive.
FDA-Approved Cessation Devices ... No e-cigarette
product has been approved by the dFDA as a smoking
cessation aid.
Ms. Meachum continued on slide 6. She stated that tobacco
use impacted memory and attention, learning, mood, and
impulse control.
Representative Galvin thanked the sponsor for taking up the
bill. She had heard that one of the vape cartridges was the
same as smoking over 200 cigarettes. She had heard that
there were students that could not stay in class for more
than 45 minutes due to their addiction. she asked what age
were kids the most vulnerable.
Ms. Meachum responded that there was a kid as young as
first grade using vape products.
2:40:43 PM
LEENA EDAIS, SELF, ANCHORAGE (via teleconference), was a
student at the University of Alaska Anchorage (UAA). She
educated students across the states about the dangers of
smoking. She remarked that children were using vape
products.
Representative Tomaszewski asked if banning flavors would
cut the use of vape products.
Ms. Edais responded that it would stop kids from starting
because there were so many flavors and kids just get
curious.
2:44:13 PM
RICK DORMER, PRESIDENT, ASSOCIATION OF ALASKA SCHOOL
PRINCIPALS, KETCHIKAN (via teleconference), thought the
vaping epidemic was out of hand, and spoke in support of
the bill. He stated that easily over half of the students
were actively vaping. He would love the idea of a tax
because there were so many kids who wanted to quit
Representative Bynum asked what kind of penalty students
would see if they were caught vaping.
Mr. Dormer responded that there was a set policy across the
district.
Representative Bynum asked if there was a similar problem
across other school districts.
Mr. Dormer responded that it was similar across many
districts.
2:50:58 PM
Representative Stapp asked if there was framework for
establishing a module within the department for collecting
a statewide sales tax on the particular item.
Mr. Spanos responded that the module would be limited, and
it could not be easily expanded in the system. He stated
that the cost of the module was $250,000
2:55:07 PM
Representative Galvin asked whether pouch tobacco products,
such as Zin were included in the bill.
Representative Hannan responded that Zin was a brand name
of an "otp", other tobacco products. She stated that it was
taxed accordingly.
Representative Allard asked if they could exempt military
people aged 18 to 21. I
Representative Hannan responded that the us military
already banned tobacco products by soldiers.
Representative Allard agreed that she wanted more revenue
for the state.
Representative Hannan mentioned marketing flavors and
looked at page 12, line 20 of the bill, which stated that a
licensed person under the section may not market an
electronic smoking product.
3:01:51 PM
Ms. Meachum responded that the tax revenue would flow into
the cessation fund and the leg could appropriate it.
Representative Allard was getting a lot of pushback from
her constituents and wondered whether there could be an
exception for military.
Representative Hannan responded no, she wanted to comply
with federal law, with the impotence was the health and
work conditions.
Co-Chair Josephson he asked if there was a sweet spot
that would move the bill forward, and he had been told that
part of the market did not even identify how many
milligrams.
Ms. Meachum responded that the FDA had authorized 34 e-
cigarette products, but it did not mean they were healthy.
She stated that 50mg was about what was common and the 60mg
to 70mg number was a higher nicotine concentration and the
concentration had gone up over time.
Co-Chair Josephson felt that there was a split in the
industry trying to participate in discussions. He shared
that the industry was worried that if the bill aimed to
disallow a mg content under 50, then smokers would simply
move to the other side.
3:12:41 PM
Representative Tomaszewski asked about online sales.
Representative Hannan responded that starting on page 8,
beginning on line 18, it was the shipping purchase that
depended on the tax.
Representative Tomaszewski asked about whether it would be
captured in the tax.
Representative Hannan did not now whether it would be
captured in the tax or not capture in the tax.
Representative Tomaszewski queried the limit.
Representative Hannan replied that the tax required at or
above 200.
3:18:34 PM
Representative Stapp asked about the military and the
enforcement within the organization.
Representative Hannan deferred to Ms. Meade.
NANCY MEADE, GENERAL COUNSEL, ALASKA COURT SYSTEM,
responded that the violation of smoking mentioned on page 3
was something that law enforcement officers could write a
ticket.
Representative Stapp assumed that the law was still
applicable on a military base.
Ms. Meade responded in the affirmative.
Representative Stapp asked whether there was an exemption
for products sold at a facility operated by one of the
uniformed services in the US.
Representative Hannan responded that military base sales
were already exempt.
3:24:22 PM
Representative Stapp asked whether it was all sales in
general, not just vaping. He was worried about imposing a
tax on a product that did not exist.
Representative Hannan asked if Mr. Spanos could be
consulted on the question.
Mr. Spanos responded that the analysis was simple because
it did not have data on electronic smoking products.
Representative Stapp he understood that vape sales were not
tracked in Alaska
Representative Bynum he was struggling to understand how it
would be enforced, and asked whether possession of the
product was a potential crime.
Representative Hannan responded that it was already illegal
for an 18 year old to possess tobacco.
3:34:03 PM
SYLVAN ROBB, DIRECTOR, DIVISION OF CORPORATIONS, BUSINESS
AND PROFESSIONAL LICENSING, DEPARTMENT OF COMMERCE,
COMMUNITY AND ECONOMIC DEVELOPMENT, reviewed DCCED fiscal
note omb 2360, control code JpxDN
Ms. Meade reviewed the fiscal note from the courts.
3:37:14 PM
HEATHER ROGERS, ADMIN OPERATIONS MANAGER, DIVISION OF
PUBLIC HEALTH, DEPARTMENT OF HEALTH, ANCHORAGE (via
teleconference), reviewed the fiscal note OMB 2818, control
poYjT, zero fiscal impact note.
AMBER LEBLANC, ADMIN SERVICES DIRECTOR, DEPARTMENT OF LAW,
ANCHORAGE (via teleconference), stated that there was no
fiscal impact on the department.
JONATHON TORRES, DEPUTY DIRECTOR, OFFICE OF PUBLIC
ADVOCACY, ANCHORAGE (via teleconference), referenced the
zero fiscal note.
3:40:28 PM
RENEE MCFARLAND, PUBLIC DEFENDER AGENCY, ANCHORAGE (via
teleconference), discussed the fiscal note OMB 1631 control
lbLgM.
Mr. Spanos reviewed DOR fiscal note RFVpO, OMB 2476.
3:44:36 PM
Representative Stapp asked about additional other fiscal
notes with other ranges.
Mr. Spanos responded that they had not determined whether
they would use the language or not.
HB 49 was HEARD and HELD in committee for further
consideration.
3:47:36 PM
AT EASE
4:02:58 PM
RECONVENED