Legislature(2021 - 2022)GRUENBERG 120
04/09/2021 08:00 AM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB61 | |
| HB90 | |
| HB110 | |
| Occupational Safety & Health Review Board | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 110 | TELECONFERENCED | |
| += | HB 146 | TELECONFERENCED | |
| *+ | HB 61 | TELECONFERENCED | |
| *+ | HB 90 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
HB 110-AGE FOR NICOTINE/E-CIG; TAX E-CIG.
9:03:08 AM
CO-CHAIR FIELDS announced that the next order of business would
be HOUSE BILL NO. 110, "An Act raising the minimum age to
purchase, sell, exchange, or possess tobacco, a product
containing nicotine, or an electronic smoking product; relating
to transporting tobacco, a product containing nicotine, or an
electronic smoking product; relating to the taxation of
electronic smoking products; and providing for an effective
date."
9:03:27 AM
CO-CHAIR SPOHNHOLZ moved to adopt the committee substitute (CS)
for HB 110, Version 32-LS0446\I, Nauman, 4/8/21, as the working
document. There being no objection, Version I was before the
committee.
9:03:47 AM
CO-CHAIR FIELDS opened public testimony on CSHB 110(L&C).
9:04:09 AM
SABRINA COMBS testified in support of HB 110. She expressed
alarm at how common vaping has become and how the products are
marketed toward a younger demographic. She said e-cigarettes
should be treated and taxed as regular tobacco products and more
difficult to purchase. She said e-cigarettes are often labeled
as cessation devices, but are having the opposite effect among
teens.
9:05:29 AM
ALYSSA KEILL testified in support of HB 110 and informed the
committee that she is a swim coach of middle school-aged kids.
She said the kids have told her they know students who have
tried vaping and said there is confusion stemming from
misleading messages surrounding the safety of vaping compared to
smoking cigarettes. She said her swimmers most commonly express
knowledge of disposable vaping products that come in different
flavors.
9:07:35 AM
DR. MELINDA RATHKOPF testified in support of HB 110. She said
she has been a practicing physician for over 20 years, and she
provided statistics showing the increase of e-cigarette use
among teens. She expressed that addiction happens more quickly
in children than adults and is much harder to overcome, and
leads to mood disorders, attention difficulty, and increased
risk of addiction to other substances. She stated that raising
the tobacco purchasing age to 21 would be an important part of
reducing tobacco use; in 2015, she said, the Institute of
Medicine concluded that raising the minimum age for tobacco
sales nationwide would reduce tobacco initiation, particularly
among adolescents. She said that three-fourths of adults over
the age of 21 support raising the minimum age for purchase along
with increasing the price through higher taxes.
9:11:40 AM
SHAUN D'SYLVA, Member, Alaska Smoke Free Trade Association,
testified in opposition to HB 110. He said that the latest
tobacco survey done by the Centers for Disease Control and
Prevention (CDC) showed that 13.3 percent of middle and high
school students had tried e-cigarettes within the past 30 days.
He expressed that those in favor of increased regulations on
vaping are using "old" data, with the most current data showing
use having dropped significantly. He expressed that the
proposed wholesale tax of 75 percent could lead to an increase
in the smoking rate, saying that studies have shown that, as e-
cigarette taxes went up, people moved to smoking regular
cigarettes.
9:15:08 AM
MIKE COONS testified in opposition to HB 110 and said the
country has a problem deciding at what age a person becomes an
adult. He said that at age 18 a person can vote, be subject to
criminal prosecution as an adult, and be drafted into the
military or join without parental consent, but cannot own a
revolver, drink alcohol, or buy cigarettes. He listed several
hypotheticals concerning the age a person should be when making
decisions.
9:17:46 AM
PATTY OWEN, Alaska Public Health Association, testified in
support of HB 110. She asked committee members to consider
surveys done on Alaska's youth, as opposed to national data,
regarding e-cigarette use, pointing out that in 2019, 46 percent
of high school students had tried e-cigarettes. Current use of
the product among high school students, she said, is 26 percent.
She expressed concern about the health effects of vaping and of
the practice of marketing directly to children.
9:20:21 AM
JOHNA BEECH testified in support of HB 110 and presented her
written testimony [included in the committee packet], which read
as follows [original punctuation provided]:
The FDA acknowledges e-cigarettes as tobacco products.
They should be taxed at the same rate as traditional
tobacco projects. At this time, in the state of
Alaska, E-cigarettes are not taxed at all. Also, the
entire product should be taxed, not just a portion of
it.
We have done so well in our advancement in our fight
against cancer; with early detection and prevention
being two major players in reducing death rates. Our
youth know that traditional tobacco is a bad deal. Yet
we see an increase in youth use of e-cigarettes. If we
can prevent our youth from using ecigarettes by taxing
the tobacco product, why wouldn't we do so?
Please support a strong e-cigarette tax to keep our
young people safe and healthy.
9:21:28 AM
ROBIN MINARD, Chief Communications Officer, Mat-Su Health
Foundation, testified in support of HB 110. She pointed out
that most tobacco use begins before age 18. Local and state-
level policies that increase the per-unit price of tobacco
products, create smoke-free environments, and restrict minors'
access to tobacco products, she said, have been shown to
contribute to the non-use of tobacco among youth. The vapor of
e-cigarettes, she said, while containing fewer carcinogenic
substances than cigarette smoke, cannot be regarded as simply
"harmless." She stated that peer-reviewed studies have found
that tobacco taxes increase the overall number of smokers who
quit, reduce the overall consumption of tobacco, and introduces
the possibility of cessation for those who continue to smoke; in
addition, those who don't smoke benefit from increased taxes by
experiencing reduced exposure to secondhand smoke and vapor.
9:23:45 AM
SARAH EATON testified in opposition to HB 110. She told the
committee that she has smoked since the age of 12 and has had
breast cancer, chronic obstructive pulmonary disorder (COPD),
and emphysema. She said she has tried many methods of cessation
before moving to vaping, using products from China that weren't
yet available in the United States. A year later, she said,
vaping products she characterized as "clean nicotine" began
being regulated in the United States. She said she has been
told that she no longer has COPD or emphysema, and that she
believes vaping saved her life.
9:27:16 AM
JESSI WALTON testified in opposition to HB 110. She said vaping
has saved her life and that military members should be able to
make their own decisions.
9:28:16 AM
KRISTIN GEORGE stated her support for HB 110.
9:28:40 AM
CARRIE NYSEEN, Senior Director of Advocacy, American Lung
Association, testified in support of HB 110, stating that
increasing prices is one of the best ways to decrease
consumption, encourage users to quit, and delay use in children.
She said that with the COVID-19 pandemic and record use of
vaping among children, now is the time to do anything possible
to discourage the use of products that compromise lung function.
She stated that the association between compromised lungs and
adverse COVID-19 outcomes is well known. She characterized HB
110 as a "good bill" and said it could be made better by
removing the youth possession and use penalties, expressing that
they're unlikely to reduce youth initiation and that research
suggests such laws are counterproductive. "Heating up toxic
chemicals and inhaling these toxins into the lungs is not
healthy," she said, adding that the chemicals can cause lung
disease while added flavorings cause inflammation. While some
of the flavorings are food additives, she said, they're designed
and approved to be ingested rather than inhaled. She pointed
out that manufacturers of vaping products have taken no steps to
have their products approved as smoking cessation devices.
9:30:57 AM
JAMIE MORGAN, American Heart Association, testified in support
of HB 110. She said tobacco use remains the leading cause of
preventable death in Alaska, costing the state $571 million in
direct health care costs and $261 million in lost productivity.
She said e-cigarettes are now the most commonly-used tobacco
products by youth and adolescents. She noted that e-cigarettes
increase the odds of stroke, heart attack, and coronary heart
disease, and research shows that vaping damages the function of
blood vessels, increasing arterial stiffness and blood vessel
damage similar to that found in the bodies of traditional
smokers. She explained that one vape pod can contain as much
nicotine as two to four packs of cigarettes, and that children
are vaping as much as four pods per day.
9:33:30 AM
ALEX MCDONALD testified in opposition to HB 110. He shared that
he watched his grandmother die of lung cancer from smoking and
has tried everything to quit his own addiction. He said he
switched to vaping in 2013 and has been tobacco-free ever since,
noting that he submitted an article that said vaping is more
effective than traditional nicotine replacement therapy in
cessation. He said getting people to stop smoking traditional
cigarettes would help the state's budget, and HB 110 would be
counterproductive to public health.
9:36:37 AM
CO-CHAIR FIELDS, after ascertaining that no one else wished to
testify, closed public testimony on HB 110.
9:36:58 AM
REPRESENTATIVE NELSON asked for an explanation for the increase
in age for tobacco sales.
9:37:15 AM
REPRESENTATIVE SARA HANNAN, Alaska State Legislature, as prime
sponsor, replied that the change in age is to comply with
federal law. She mentioned a 2019 executive order from
President Donald Trump mandating a minimum age of 21 as the age
of legal use.
REPRESENTATIVE NELSON asked Representative Hannan to clarify
whether the executive order required an individual to be 21 in
order to purchase the products, or to sell them.
REPRESENTATIVE HANNAN replied that the age for selling tobacco
products is up to each state.
REPRESENTATIVE NELSON surmised that it would be up to the
legislature to increase the age required for selling tobacco.
REPRESENTATIVE HANNAN responded that HB 110 would bring Alaska's
statutes into compliance with federal age of use requirements.
REPRESENTATIVE NELSON asked, "But not the age to sell?"
REPRESENTATIVE HANNAN replied, "Correct."
REPRESENTATIVE NELSON asked whether anyone knows what the price
of an e-cigarette would be if HB 110 were to pass.
REPRESENTATIVE HANNAN said that she doesn't know, and explained
that HB 110 would add the current tobacco tax onto the entire
category of products.
9:39:37 AM
CO-CHAIR SPOHNHOLZ pointed out that in Anchorage one must be 21
to either purchase or sell tobacco products. She referred to an
earlier mention of the military and said that it had been her
understanding that the military doesn't allow the sale of
tobacco on military bases to anyone under 21.
REPRESENTATIVE HANNAN replied that as of August 1, 2020, the
U.S. Department of Defense no longer sells any tobacco products
in its facilities.
9:41:06 AM
REPRESENTATIVE SNYDER stated her support of the proposed
legislation but said she wants to make sure she understands the
current costs of vaping products and cigarettes.
REPRESENTATIVE NELSON expressed the possibility of a return to
regular cigarettes if the price of e-cigarettes was much higher
in comparison.
REPRESENTATIVE HANNAN said she purchased an e-cigarette several
years prior in order to figure out what exactly it was. She
said the particular product is not sold in brick-and-mortar
stores, noting that HB 110 would ban Internet sales of tobacco
products, thereby pushing people to purchase in person. She
said she did not delve into prices beyond taxes.
REPRESENTATIVE NELSON asked whether HB 110 would include
products such as the transportation mechanism for the vape.
REPRESENTATIVE HANNAN replied, "Correct."
REPRESENTATIVE NELSON asked whether HB 110 would include pipes
for regular tobacco.
REPRESENTATIVE HANNAN replied, "No."
9:44:06 AM
REPRESENTATIVE KAUFMAN, noting that HB 110 would eliminate
Internet sales of vaping products, said he pictured a situation
in which someone doesn't have close, physical access to an
outlet.
REPRESENTATIVE HANNAN responded that a person living in a
community without a tobacco store could order directly from a
store, which is different from simply ordering from a website.
A case of tobacco shipped to Dillingham could involve age
verification, she said.
9:46:00 AM
CO-CHAIR SPOHNHOLZ recalled testimony suggesting that taxing e-
cigarette products could incentivize people to use traditional
tobacco use due to the cost. She pointed out that HB 110 would
bring the vaping mechanisms and liquid into the same tax
structure already applicable to tobacco. She noted that tobacco
was first taxed because it's dangerous; having an increased tax
on e-cigarettes would not force someone to use traditional
tobacco, she opined, because it's expensive, not necessarily
easier to use, and not safer. She noted that public health
experts have stated that one-third of youths are vaping, with a
70 percent increase of e-cigarette use between 2017 and 2018.
This is a grooming tool with no public health benefit, she said,
to get people into another addictive product.
9:47:49 AM
REPRESENTATIVE MCCARTY asked whether there are other products
for which purchase via the Internet has been banned.
REPRESENTATIVE HANNAN replied that she hasn't looked into it,
but that she believes alcohol is banned from being sold online
in Alaska.
CO-CHAIR FIELDS agreed.
9:48:36 AM
REPRESENTATIVE NELSON discussed the apparent disparity in cost
between regular tobacco products and e-cigarettes when some
municipalities already have a tax in place. He also asked
whether there is a reason why a tobacco pipe would not be taxed.
REPRESENTATIVE HANNAN replied that Section 22 addresses self-
contained and disposable units. "Juul is one," she said, "where
you can only use in a Juul device, Juul pods." She said the
goal of the section was to discourage the use of such devices.
9:50:48 AM
CO-CHAIR FIELDS pointed out that companies such as Juul market
to children.
9:51:12 AM
REPRESENTATIVE SCHRAGE said, "I believe in personal liberties
and the freedom to make bad choices." He opined that vape
options are less risky and less harmful than traditional
cigarettes and expressed that he recognizes there are some
health and societal consequences to e-cigarettes. He said that
he manages a tutoring program and has observed students leave
school to seek addiction treatment because they couldn't
maintain focus for an hour in class without vaping. He stated
his support for HB 110 and asked whether there could be a
staggered implementation to prevent workers who are under 21
from losing their jobs.
REPRESENTATIVE HANNAN replied that most of the punishment for
age violations fall on the business. She then deferred to Mr.
Darnell.
9:53:36 AM
JOE DARNELL, Chief Investigator, Tobacco Enforcement and Youth
Education Program, Division of Behavioral Health, Department of
Health and Social Services, told the committee that businesses
know the age requirement is forthcoming and are slowly starting
to integrate the expected requirements into their operations.
He alluded to a rollout similar to what was put into place when
Alaska moved to smoke-free workplaces.
REPRESENTATIVE SCHRAGE said he could see it causing hardship in
small communities.
9:55:15 AM
REPRESENTATIVE KAUFMAN expressed understanding that the tax rate
would apply to the device as well as to the liquid.
REPRESENTATIVE HANNAN responded, "Yes, currently it taxes
disposable electronic smoking products that contain vape."
REPRESENTATIVE KAUFMAN asked whether a standalone device would
be included in the tax.
9:56:20 AM
STEPHANIE ANDREW, Staff, Representative Sara Hannan, Alaska
State Legislature, replied, "My understanding is that in the new
definition, the cartridge would be taxed, but the device, if it
is not contained in a kit or all-in-one, that it would not be
taxed separately. So, it refers to the part of the device that
includes the nicotine."
9:56:40 AM
CO-CHAIR FIELDS expressed that if the devices were legitimately
used for smoking cessation, the proposed legislation would not
be considered. He stated that the body of evidence shows that
the devices are used to foster addiction in children. He then
read an excerpt from a letter from the Mat-Su Health Foundation
[included in the committee packet], which read as follows
[original punctuation provided]:
they are a grooming tool, grooming kids to accept,
like, and become dependent on smoking and nicotine.
Recent research indicates that adolescents and teens
who try e-cigs are much more likely than other youth
to progress to traditional cigarettes.
9:57:17 AM
CO-CHAIR SPOHNHOLZ moved to report CSHB 110, Version 32-
LS0466\I, Nauman, 4/8/21, from committee with individual
recommendations and the accompanying fiscal notes.
9:57:31 AM
REPRESENTATIVE NELSON objected, saying that he agrees that
smoking carries negative effects but that small business owners
might want to hire their own children who may be under 21.
9:58:15 AM
REPRESENTATIVE KAUFMAN asked whether Representative Nelson would
consider a conceptual amendment.
REPRESENTATIVE NELSON replied that a conceptual amendment is no
longer possible since the motion was already put forward.
9:58:37 AM
CO-CHAIR FIELDS asked Representative Hannan about the next
committee of referral.
REPRESENTATIVE HANNAN replied that the House Finance Committee
would next hear the proposed legislation.
CO-CHAIR FIELDS suggested that the House Finance Committee may
wish to amend HB 110.
9:59:13 AM
CO-CHAIR SPOHNHOLZ, pointing out that she may have misspoken
during her earlier motion, moved again to report CSHB 110,
Version 32-LS0466\I, Nauman, 4/8/21, from committee with
individual recommendations and the accompanying fiscal notes.
9:59:34 AM
CO-CHAIR FIELDS recognized Representative Nelson's earlier
objection.
9:59:39 AM
REPRESENTATIVE KAUFMAN said that there needs to be changes to HB
110 and that he has not decided how he will vote. He said he
will seek amendments.
10:00:05 AM
CO-CHAIR SPOHNHOLZ thanked Representative Hannan for introducing
HB 110 and noted that one of the reasons for the higher age
requirement for selling is to avoid youths selling the products
to their peers. She said that the same reasoning applies to the
statute that mandates an individual who sells alcohol products
be of legal drinking age.
10:00:47 AM
REPRESENTATIVE SNYDER pointed out that it would be helpful
during future hearings to state the cost of cigarettes more
precisely in comparison to vaping products.
10:01:37 AM
A roll call vote was taken. Representatives Schrage, Snyder,
Spohnholz, McCarty, and Fields voted in favor of reporting CSHB
110, Version 32-LS0466\I, Nauman, 4/8/21, from committee with
individual recommendations and the accompanying fiscal notes.
Representatives Kaufman and Nelson voted against it. Therefore,
by a vote of 5-2, CSHB 110(L&C) was reported out of the House
Labor and Commerce Standing Committee.