04/05/2017 01:30 PM Senate JUDICIARY

         SB  15-E-CIGS: SALE TO AND POSSESSION BY MINOR                                                                     
                                                                                                                                
2:06:43 PM                                                                                                                    
CHAIR COGHILL announced the consideration  of SB 15 and noted his                                                               
intent to  continue public testimony.  He listed  the individuals                                                               
available to answer questions.                                                                                                  
                                                                                                                                
2:07:51 PM                                                                                                                    
JENNIFER   BRANDT,   representing   herself,   Wasilla,   Alaska,                                                               
testified in support of  SB 15. She said that as  the mother of a                                                               
teenager she  is deeply concerned about  the rise in teen  use of                                                               
electronic  nicotine devices.  It is  of particular  concern that                                                               
the vaping industry  appears to target youth  in its advertising.                                                               
She  provided an  example and  urged  the committee  to pass  the                                                               
bill.                                                                                                                           
                                                                                                                                
2:08:56 PM                                                                                                                    
ETHAN  BRANDT, representing  himself, Wasilla,  Alaska, testified                                                               
in support  of SB 15.  He said he  is 13  years old and  he knows                                                               
that vaping at  a young age makes it more  likely the person will                                                               
smoke when  they are an  adult. He concluded saying,  "To protect                                                               
the future of Alaska, say yes to SB 15."                                                                                        
                                                                                                                                
SENATOR  WIELECHOWSKI  asked where  students  in  his school  get                                                               
vaping supplies.                                                                                                                
                                                                                                                                
MR. BRANDT said he did not know.                                                                                                
                                                                                                                                
CHAIR  COGHILL,  noting  that the  legislative  drafter  was  not                                                               
available,  asked  the  sponsor  if the  language  in  Section  3                                                               
clarifies  that electronic  smoking  products  must be  purchased                                                               
over  the  counter;  it prohibits  internet  sales,  which  would                                                               
include adults.                                                                                                                 
                                                                                                                                
2:11:37 PM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature, confirmed  that Section  3 says  that sales  must be                                                               
under the  control of a sales  clerk. He said it  could be argued                                                               
that in  internet sales there  is a  clerk sitting at  a computer                                                               
terminal and is  in control of transactions. "The  vender, say in                                                               
Carolina - wherever  - would have a  reasonable responsibility to                                                               
confirm who is making that purchase."                                                                                           
                                                                                                                                
CHAIR  COGHILL said  he'd like  to  talk with  the drafter  about                                                               
internet sales.                                                                                                                 
                                                                                                                                
MR.  LAMKIN  clarified  that  the  sponsor  does  not  want  this                                                               
legislation to get  into tax questions. The focus of  the bill is                                                               
limiting  youth   access  to  electronic  smoking   products  and                                                               
devices.  He cited  AS 43.50.105  that addresses  restrictions on                                                               
shipping  or transporting  cigarettes  and  opined that  internet                                                               
sales of electronic smoking products  should be addressed in that                                                               
section of law. That is outside the scope of the bill.                                                                          
                                                                                                                                
CHAIR  COGHILL pointed  out that  AS  11.76.106(a) prohibits  the                                                               
sale  of products  containing tobacco  in areas  where the  sales                                                               
clerk does not control access. That applies to all ages.                                                                        
                                                                                                                                
MR. LAMKIN  said an investigator  with the Department  of Revenue                                                               
is available to answer questions.                                                                                               
                                                                                                                                
2:14:31 PM                                                                                                                    
SENATOR  MEYER  asked  how  age  is verified  when  the  sale  is                                                               
conducted online.                                                                                                               
                                                                                                                                
CHAIR  COGHILL said  cigarettes  are not  sold  online in  Alaska                                                               
because of the taxation issue.                                                                                                  
                                                                                                                                
MR.  LAMKIN reiterated  that  the sponsor  is  not interested  in                                                               
addressing taxes  in SB  15. "Once  we get  this basic  policy in                                                               
place,  we can  turn, later,  to the  taxing, including  internet                                                               
sales."                                                                                                                         
                                                                                                                                
CHAIR COGHILL said  he wanted the committee to be  aware that the                                                               
bill   potentially   would   prohibit  adults   from   purchasing                                                               
electronic products  over the internet.  He said he did  not want                                                               
to delay  progress on  the bill,  but that  question needs  to be                                                               
answered. He suggested a solution  could be to include permissive                                                               
language.                                                                                                                       
                                                                                                                                
MR. LAMKIN cautioned  that introducing that sort  of language for                                                               
internet sales  will compel  the Department  of Revenue  (DOR) to                                                               
investigate. That will trigger a fiscal note.                                                                                   
                                                                                                                                
SENATOR COSTELLO  asked if  the sponsor's  intent is  to prohibit                                                               
internet sales of electronic smoking products in Alaska.                                                                        
                                                                                                                                
MR. LAMKIN  said no, but in  the context of prohibiting  sales to                                                               
youth it  would be  an acceptable  unintended consequence.  It is                                                               
already  illegal  in  Alaska  to  purchase  cigarettes  over  the                                                               
internet, so  it might be reasonable  to ask whether the  sale of                                                               
e-cigarettes should also be prohibited.                                                                                         
                                                                                                                                
2:18:44 PM                                                                                                                    
CHAIR COGHILL held SB 15 in committee for further consideration.