Legislature(2025 - 2026)BELTZ 105 (TSBldg)
02/24/2025 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB39 | |
| SB24 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 39 | TELECONFERENCED | |
| *+ | SB 24 | TELECONFERENCED | |
SB 24-TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX
2:12:14 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 24 "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."
2:12:44 PM
SENATOR GARY STEVENS, District C, Alaska State Legislature,
Juneau, Alaska, sponsor of SB 24 provided a summary as follows:
[Original punctuation provided.]
This bill is about protecting our children from
becoming addicted to nicotine. It is about clearly
restricting sales to and possession of nicotine
products by youngsters.
The tobacco and nicotine industry acknowledged the
decline in cigarette smoking and have responded with a
barrage of new fashionable smoking options, in the
form of E-Cigarettes and related devices designed to
appeal to a wide range of consumers, particularly our
young people. And it's working. I may concede that
these products have helped some *adults* quit smoking
-cigarettes-
2:13:51 PM
SENATOR STEVENS continued with the summary of SB 24:
They do not however, end addiction to nicotine. They
instead provide an attractive new delivery method. Of
maintaining the same habit,
This bill is an effort to pushback on a multi billion
dollar industry trying to addict young people from
getting started on these substances.
This bill raises the legal age to sell, buy, use, and
possess cigarettes, nicotine products and E-Cigarette
products to age 21,
This bill also puts a modest tax on E-Cigarette
products. Taxing these products is what has clearly
demonstrated reduced consumption, particularly for
making the products more difficult for youngsters to
buy.
Data has shown if we can interrupt the initiation of
these products at younger years, the risk of addiction
is substantially reduced later in life.
This bill is Consistent with Military policy and
standing orders for our troops. Consistent with
Federal law. Consistent with local laws. Consistent
with policies on our school campuses; and (presumably)
Consistent with parents. To not act is to turn our
backs on all of these other governing bodies
We have deferred this issue for too long. The time is
now, to face this industry and help protect young
Alaskans, who are being targeted. For potentially a
lifetime of addiction
2:15:43 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, provided a summary of the sectional
analysis for SB 24. He stated that Sections 18 of SB 24 mainly
make conforming changes, raising the legal age for sales,
possession, and distribution of tobacco and e-cigarette products
from 19 to 21. He said Section 3 lowers the possession fine from
$500 to $300 to align with sales violations. Section 4 allows
those aged 1820 to pay the fine without a court appearance,
while those under 18 must still appear in court. He said SB 24
clarifies that 1920-year-olds working in businesses that sell
these products won't be penalized for possession through
employment.
2:18:10 PM
MR. LAMKIN stated that Section 10 adds synthetic nicotine to the
definition of nicotine to prevent tax evasion. Section 18
extends online sales restrictions to all other tobacco products
like cigars, chew, and nicotine gum. Section 19 in AS
43.50.850(a) introduces a 25 percent retail sales tax (not
wholesale tax) and in Section 19 AS 43.50.855 specifies
restrictions by setting a max nicotine concentration of 50mg/mL
for vaping products. He said Section 19 also adds protection
requirements and clarifies definitions. Sections 2023 conform
the legal age change from 19 to 21. He stated that Section 24
bans marketing vaping products to anyone under 21. Sections 25
28 are also conforming. He stated that age restrictions take
effect January 1, 2026, and tax and licensing rules start
January 1, 2027.
2:21:07 PM
SENATOR YUNDT asked what the cigarette tax rate is and how much
it differs from other nicotine products.
2:21:31 PM
MR. LAMKIN answered that Alaska doesn't tax vaping products, but
several municipalities have local policies that impose varying
levels of taxes. He stated his belief that the cigarette tax is
two dollars a pack.
SENATOR YUNDT asked whether the state tax is two dollars.
MR. LAMKIN answered yes.
2:22:09 PM
SENATOR STEVENS stated that every time taxes on cigarettes are
raised, consumption decreases; there's a clear link between
price and cigarette use.
2:22:25 PM
SENATOR DUNBAR stated that he had three points to bring up.
First, only taxing some tobacco products creates an unfair
market, which affects consumer behavior. Next, he was initially
skeptical but now supports SB 24, especially the amendment
protecting young workers' jobs at places like gas stations.
Lastly, many young people have told him vaping is widespread in
their communities, and they want action. He said compared to
when he was in high school, vaping is much more common now and
clearly targets youth, making it a public health concern. He
asked whether all changes from last year were included in SB 24.
2:24:38 PM
MR. LAMKIN answered that the current version is what was passed
last year.
2:24:55 PM
CHAIR BJORKMAN announced invited testimony on SB 24.
2:25:24 PM
MIKE BRIDGES, Retired Brigadier General, Community Advocate,
American Cancer Society, Fairbanks, Alaska, testified by
invitation on SB 24 and stated that the vaping industry uses
sweet, fun flavors to lure young people into addiction, pushing
new products in a fast, insidious way. He said he fully supports
the sponsor's language in SB 24. He stated that he also
appreciates the committee members' openness to learning and now
supporting the cause. As a retired military commander, he has
seen firsthand how tobacco harmed service members' health and
careers, often leading to long-term care through the VA. He said
he backs the bill completely and trusts the committee to handle
the tax details, as this is clearly a growing public health
concern.
2:27:51 PM
KATIE STEFFENS, Deputy Program Manager, Tobacco Prevention &
Control, Alaska Department of Health and Social Services
(AKHSS), Anchorage, Alaska, testified by invitation on SB 24 as
follows:
[Original punctuation provided.]
Thank you for the opportunity to speak with you today
on how tobacco and nicotine products are affecting
Alaskan youth. Tobacco continues to be a leading cause
of preventable death in Alaska, with smoking linked to
about 600 deaths in our state each year. Alaska loses
an estimated $400 million per year because of smoking-
related illness, effects on workers, and people being
unable to do their usual activities; and an estimate
in 2018 showed that Alaska Medicaid faced $192 million
in tobacco-related health care costs. While Alaska has
made incredible strides in the past 30 years in
preventing and reducing tobacco use among our youth
and adults, there is still more work to be done as new
products enter the market.
2:28:51 PM
MS. STEFFENS continued with her testimony of SB 24:
As of 2023, 24 percent of Alaskan adults currently use
some form of tobacco product, including cigarettes,
cigars, smokeless, Iqmik, and electronic cigarettes,
with over a quarter of tobacco users being between the
ages of 18-34. Among Alaskan adults, 8 percent use e-
cigarettes with the most prevalent age group of users
being young adults between the ages of 18-34.
Comparatively, as of 2023, 23 percent of youth use
some form of tobacco product, with e-cigarettes being
the most used product among youth by far with 17
percent of Alaskan high school students currently
using e-cigarettes. While this is a significant short-
term decrease from 26 percent in 2019, this is not a
significant long-term change in our data from when we
first started collecting in 2015.
Youth tobacco use, especially e-cigarette use, has
been burdensome on schools throughout Alaska. During
the 2023/2024 school year, the Department of Education
and Early Development suspension data demonstrated
that there were 987 tobacco-related suspensions
spanning across all grades 1st through 12th. This
accounted for approximately 2,800 missed school days
for students.
What we also know is that among Alaska high school
students who had used in the past 12 months, 61
percent tried to quit the tobacco products they were
using. Most youth who use tobacco products ultimately
want to stop using, but this can be incredibly hard
due to the gripping impact nicotine has on the
developing youth brain.
2:30:26 PM
MS. STEFFENS continued with her testimony of SB 24:
The State of Alaska Tobacco Prevention and Control
Program implements a comprehensive program to reduce
and prevent tobacco use. We work closely with
community partners, tribal health organizations,
school districts, and hospital systems to provide
resources and catered assistance to meet their needs.
Unfortunately, many of the communities we work with do
not have the local health powers to implement
ordinances related to broader community policy efforts
and takes statewide policy to serve all our
communities equally. We have utilized proven statewide
strategies to reduce youth and adult cigarette use to
historically low numbers and have time-tested, Alaskan
approaches to address the ongoing youth prevalence of
tobacco, especially e-cigarettes.
We know that increasing the price of tobacco products
is the single most effective way to prevent initiation
and to reduce consumption. Youth and young adults are
two to three times more likely to respond to price
increases of tobacco products. Price increases are
even more effective when implemented in combination
with other proven strategies, such as increasing the
minimum legal age. It is estimated that raising the
minimum age for the sale of tobacco products to 21
will over time reduce the smoking rate by about 12
percent and smoking-related deaths by 10 percent.
Senate Bill 24 includes both of these proven
approaches: increasing the minimum age and increasing
the price. It creates additional protections for youth
through restricting online sales, implementing age
verification processes when shipping or transporting
tobacco products in Alaska, and limiting the nicotine
content in devices.
2:32:40 PM
At ease.
2:34:12 PM
CHAIR BJORKMAN reconvened the meeting and held SB 24 in
committee.