04/12/2022 01:00 PM Senate FINANCE

SENATE BILL NO. 45                                                                                                            
                                                                                                                                
     "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."                                                                                          
                                                                                                                                
1:51:10 PM                                                                                                                    
                                                                                                                                
Co-Chair Bishop  relayed that it  was the third  hearing for                                                                    
SB 45.  He intended to review  the fiscal notes and  look to                                                                    
the will of the committee.                                                                                                      
                                                                                                                                
Co-Chair  Bishop  discussed  a  new  fiscal  note  from  the                                                                    
Department  of  Revenue,  OMB Component  2476.  He  cited  a                                                                    
projected  $2.2  million increase  in  revenue  with the  45                                                                    
percent tax rate and by year  2028 it was estimated to be at                                                                    
$2.4 million per  year. There was no  implementation cost or                                                                    
added cost to update the tax revenue management system.                                                                         
                                                                                                                                
Co-Chair Bishop  discussed a new  zero fiscal note  from the                                                                    
Department of  Health, OMB Component 2818.  He detailed that                                                                    
the  bill would  raise  the minimum  legal  age to  purchase                                                                    
tobacco and  nicotine products from  19 to 21. He  read from                                                                    
the fiscal note Analysis on page 2:                                                                                             
                                                                                                                                
     The  bill strengthens  restrictions on  underage access                                                                    
     by requiring  licensed tobacco retailers to  verify age                                                                    
     at  the   time  of   purchase  and  at   delivery  when                                                                    
     transporting or shipping tobacco products in Alaska.                                                                       
                                                                                                                                
Co-Chair  Stedman  MOVED  to  report  CSSB  45(FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal notes. There  being NO OBJECTION, it was                                                                    
so ordered.                                                                                                                     
                                                                                                                                
CSSB  45(FIN) was  REPORTED out  of committee  with one  "do                                                                    
pass"  recommendation  and  with three  "no  recommendation"                                                                    
recommendations; and with one new  zero fiscal note from the                                                                    
Department  of Health  and Social  Services, one  new fiscal                                                                    
impact  note from  the Department  of Revenue,  and one  new                                                                    
Statement  of Zero  Fiscal  Impact from  the  Office of  the                                                                    
Governor and Combined Departments.                                                                                              
                                                                                                                                
1:53:23 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:55:07 PM                                                                                                                    
RECONVENED