03/12/2025 01:30 PM Senate LABOR & COMMERCE

          SB  24-TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX                                                                      
                                                                                                                                
1:37:31 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."                                                                                               
                                                                                                                                
1:38:00 PM                                                                                                                    
CHAIR BJORKMAN solicited a motion.                                                                                              
                                                                                                                                
1:38:02 PM                                                                                                                    
SENATOR MERRICK moved to adopt  the committee substitute (CS) for                                                               
SB 24, work order 34-LS0260\I, as the working document.                                                                         
                                                                                                                                
1:38:11 PM                                                                                                                    
CHAIR BJORKMAN objected for purposes of discussion.                                                                             
                                                                                                                                
1:38:30 PM                                                                                                                    
KONRAD  JACKSON,  Staff,  Senator Jesse  Bjorkman,  Alaska  State                                                               
Legislature,  Juneau, Alaska,  presented the  summary of  changes                                                               
for SB 24:                                                                                                                      
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
     The  CSSB  24,  version   I,  before  you  makes  three                                                                    
     substantive changes to the bill.                                                                                           
                                                                                                                                
     First it maintains the status  quo when it comes to the                                                                    
     shipping  or transporting  of  cigars  or pipe  tobacco                                                                    
     into  the State.   This  new language  can be  found on                                                                    
     page 8, lines 29-31.                                                                                                       
                                                                                                                                
     Secondly, language  on page 9,  lines 14-19  is deleted                                                                    
     to remove  the requirement  that a recipient  provide a                                                                    
     copy of their identification  to the common or contract                                                                    
     carrier prior to delivery.                                                                                                 
                                                                                                                                
     Thirdly, on  page 15, line 9  of the CS version  N, the                                                                    
     cap  of 50  milligrams  of nicotine  is  changed to  70                                                                    
     milligrams.                                                                                                                
                                                                                                                                
     There are additional conforming changes in the CS.                                                                         
                                                                                                                                
1:40:02 PM                                                                                                                    
CHAIR BJORKMAN asked what kind of  effect SB 24 would have had on                                                               
pipe tobacco and cigars.                                                                                                        
                                                                                                                                
1:40:24 PM                                                                                                                    
MR. JACKSON answered that tobacco  cigars and pipe tobacco can be                                                               
imported  and  sold  in  the   state  without  being  subject  to                                                               
licensing  and taxes.  He said  the  current language  in the  CS                                                               
would maintain  the status  quo. If  the committee  doesn't adopt                                                               
the  CS, these  products would  be regulated  similarly to  other                                                               
tobacco products.                                                                                                               
                                                                                                                                
1:41:00 PM                                                                                                                    
CHAIR BJORKMAN asked  what the reason is for changing  the cap on                                                               
nicotine from 50 to 70 milligrams.                                                                                              
                                                                                                                                
1:41:09 PM                                                                                                                    
MR. JACKSON  answered that  some reputable  manufacturers produce                                                               
products  with nicotine  levels  higher than  50 milligrams.  The                                                               
concern is  that setting a  50-milligram cap could lead  to those                                                               
products  being sold  on  the black  market  with less  reputable                                                               
manufacturers.                                                                                                                  
                                                                                                                                
1:42:04 PM                                                                                                                    
SENATOR DUNBAR  asked why not apply  the tobacco tax to  pipe and                                                               
cigar tobacco and whether doing so  would created a double tax on                                                               
pipe and cigars.                                                                                                                
                                                                                                                                
1:43:09 PM                                                                                                                    
MR.  JACKSON  responded that  cigars  and  pipe tobacco  are  not                                                               
included  in the  same tax  structure as  other tobacco  products                                                               
(OTP) or cigarettes. The goal is  to maintain the status quo, but                                                               
it's ultimately  up to  the committee  and legislature  to decide                                                               
whether to include these products  in the Department of Revenue's                                                               
tax structure.                                                                                                                  
                                                                                                                                
SENATOR DUNBAR  asked if there  was someone else who  could speak                                                               
to the amendment.                                                                                                               
                                                                                                                                
1:43:48 PM                                                                                                                    
CHAIR  BJORKMAN  stated SB  24  is  focused on  e-cigarettes  and                                                               
vaping,  which pose  a real  danger  to young  people. Youth  are                                                               
becoming addicted early  because the products are  cheap and easy                                                               
to get.  He said  by taxing all  FDA-approved devices,  the state                                                               
can discourage youth use and  prevent these products going to the                                                               
black market. He  didn't want to include pipe  tobacco and cigars                                                               
because they're not the main concern.                                                                                           
                                                                                                                                
1:45:30 PM                                                                                                                    
CHAIR  BJORKMAN  removed  his  objection.  He  found  no  further                                                               
objection and [CSSB 24 was adopted as the working document.]                                                                    
                                                                                                                                
1:45:37 PM                                                                                                                    
At ease.                                                                                                                        
                                                                                                                                
1:45:58 PM                                                                                                                    
CHAIR BJORKMAN reconvened the meeting.                                                                                          
                                                                                                                                
1:46:09 PM                                                                                                                    
CHAIR BJORKMAN solicited the will of the committee.                                                                             
                                                                                                                                
1:46:12 PM                                                                                                                    
                                                                                                                                
SENATOR MERRICK moved to report  CSSB 24, work order 34-LS0260\I,                                                               
from   committee  with   individual  recommendations   and  eight                                                               
attached fiscal note(s).                                                                                                        
                                                                                                                                
1:46:27 PM                                                                                                                    
CHAIR BJORKMAN found no objection  and CSSB 24 (L&C) was reported                                                               
from the Senate Labor and Commerce Standing Committee.