Legislature(2021 - 2022)BELTZ 105 (TSBldg)
03/19/2021 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| Confirmation Hearings | |
| SB87 | |
| SB45 | |
| SB11 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | TELECONFERENCED | ||
| += | SB 87 | TELECONFERENCED | |
| += | SB 45 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 11 | TELECONFERENCED | |
SB 45-AGE FOR NICOTINE/E-CIG; TAX E-CIG.
1:59:17 PM
CHAIR COSTELLO reconvened the meeting and announced the
consideration of 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."
She said this is the third hearing in this committee, public
testimony is closed, and there is a committee substitute (CS).
1:59:58 PM
SENATOR HOLLAND moved to adopt the Committee Substitute (CS) for
SB 45, work order 32-LS0311\W, as the working document.
2:00:32 PM
CHAIR COSTELLO objected for an explanation of the changes.
2:00:48 PM
MELODIE WILTERDINK, Staff, Senator Mia Costello, Alaska State
Legislature, Juneau, Alaska explained the changes from version B
to version W of SB 45, paraphrasing the following document:
Sec. 10 AS 21.96, Page 5, Lines 29-31, Page 6, Lines
1-11
Is amended by adding a new subsection AS 21.96.055 to
require manufacturers of electronic smoking products
sold in Alaska to file a bond of $10,000,000 with the
Division of Insurance on the condition that
manufacturers must promise to pay monetary judgments
related to product liability in the state. Persons
having claims against an electronic smoking product
manufacturer required to file a bond may bring suit on
the bond for failure to pay a liability described in
AS 21.96.055.
Sec. 17 AS 43.50.320, Page 8, Lines 11-16
Is amended by adding a new subsection AS 43.50.320(i)
to prohibit the distribution of flavored electronic
smoking products and electronic smoking products
designed or packaged so as not to be clearly
recognizable as a tobacco product.
Sec. 22 AS 43.50.350, Page 11, Lines 14-20
Is amended to insert an exception, described in
Section 23, to the depositing of tax collected into
the general fund, which may be used by the legislature
to make appropriations for health care, health
research, heal promotion, and health education.
Sec. 23 AS 43.50.350, Page 11, Lines 21-25
Is amended to add a new subsection AS 43.50.350 to
direct tax collected on electronic smoking products to
be accounted for separately and may be appropriated by
the legislature to provide for education, programs,
and advertising related to the hazards of electronic
smoking products.
Sec. 26 AS 43.50.390, Page 12, Lines 14-23
Is amended to update the definition of electronic
smoking product to clarify that an "electronic smoking
device" includes all parts, excluding batteries and
battery chargers when sold separately.
Sec. 31 AS 45.50.471(b), Page 16, Lines 3-6
Is amended by adding a new paragraph to prohibit the
marketing of electronic smoking devices to persons
under 21 years of age.
MS. WILTERRDINK advised that the title was updated to reflect
the changes.
2:04:20 PM
CHAIR COSTELLO removed her objection; finding no further
objection, version W of SB 45 was adopted.
She asked Ms. Wing-Heier to explain the bill section relating to
posting a bond and the precedence in Alaska for these companies
to carry a certain type of liability policy when doing business
in the state.
She also noted the conceptual amendment for the committee to
consider.
2:05:08 PM
LORI WING-HEIER, Director, Division of Insurance, Department of
Commerce, Community, and Economic Development, Anchorage,
Alaska, stated that SB 45 asks for a bond to guarantee that the
manufacturer of e-cigarettes has the capital, character, and
capacity to perform. For example, a bond protects the homeowner
against liens on their house if their building contractor fails
to pay bills associated with building that house. If the bills
are unpaid, the homeowner would make a claim against the bond.
By comparison, a liability policy insures against damages in the
event of injury.
In the instance of SB 45, she advised that if the committee is
looking for damages caused to people over age 21 because of e-
cigarettes, it would be asking for a general liability policy to
cover injuries or diseases associated with the use of that
product. She noted that the precedence for this was established
several years ago when the legislature required Uber to file a
certificate of insurance with the division showing liability
coverage. She recalled it was a $10 million policy.
SENATOR GRAY-JACKSON asked for the cost of a $10 million bond.
MS. WING-HEIER offered to do some research and follow up with
the information.
SENATOR GRAY-JACKSON said it wasn't necessary.
CHAIR COSTELLO summarized her understanding that the liability
policy is backing the ability to do business in the state. Those
businesses would file a commercial general liability policy with
the division. She asked Ms. Wing-Heier to discuss the precedent
set with Uber for this type of policy and how it would work.
MS. WING-HEIER explained that if Uber is in an accident, the
injured party could ask the division, as the certificate holder,
who to contact to file a claim. Policies under SB 45 would be
the same. The policyholders would update and file annually and
the division would be able to tell consumers, in the event they
wanted to file a claim against the manufacturer, who has the
manufacturer's liability insurance in the state of Alaska.
CHAIR COSTELLO asked the members if they were comfortable with a
conceptual amendment in [Section 10] to replace the term "bond"
with "commercial general liability policy" where it is
appropriate.
2:09:40 PM
SENATOR HOLLAND moved Conceptual Amendment 1 to replace the term
"bond" with "commercial general liability policy" in Section
[10].
CHAIR COSTELLO clarified that the amendment is in Section 10 of
the bill, and it amends Title 21.
2:10:14 PM
CHAIR COSTELLO found no objection and Conceptual Amendment 1 was
adopted.
CHAIR COSTELLO noted who was available to answer questions.
2:10:54 PM
SENATOR STEVENS, speaking as sponsor, expressed appreciation for
the Committee Substitute and what it does to help children today
who are jeopardized by nicotine addiction.
CHAIR COSTELLO thanked the sponsor for allowing the committee to
improve an already great bill.
2:11:51 PM
SENATOR HOLLAND sympathized with the people who worry about the
tax and those who use vaping instead of tobacco products. He
said he carefully looked into changing the tax but could not
find a reason to do so at this time.
SENATOR GRAY-JACKSON stated that she has always supported age 21
the 75 percent tax on e-cigarettes.
CHAIR COSTELLO stated that she believes it is important that
some of the changes in the CS mimic the federal law. It reflects
the spirit of what the federal government is doing in terms of
marketing e-products to young people. She said it is also
important that a provision in the bill calls for the tax to be
calculated separately so a legislature in the future could use
those funds to educate young people about the dangers of e-
cigarettes.
2:14:58 PM
SENATOR HOLLAND moved to report the committee substitute for SB
45, work order 32-LS0311\W as amended, from committee with
individual recommendations and attached fiscal note(s).
2:15:17 PM
CHAIR COSTELLO found no objection and CSSB 45(L&C), as amended,
was reported from the Senate Labor and Commerce Standing
Committee.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SLAC GOV Appointee Richard Clampitt Board Application Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE MFT RICHARD CLAMPITT |
| SLAC GOV Appointee Richard Clampitt Resume Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE MFT RICHARD CLAMPITT |
| SLAC GOV Appointee Catherine Fritz Resume Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE AELS CATHERINE FRITZ |
| SLAC GOV Appointee Catherine Fritz Personal Statement.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE AELS CATHERINE FRITZ |
| SLAC GOV Appointee Randall Rozier Board Application Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE AELS RANDALL ROZIER |
| SLAC GOV Appointee Christopher Jaime Resume Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE MCB CHRISTOPHER JAIME |
| SLAC GOV Appointee David Koch Board Application Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE ABCB DAVID KOCH |
| SLAC Gov Appointee David Koch Personal Statement.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE ABCB DAVID KOCH |
| SLAC GOV Appointee Michael Mavencamp Board Application Redacted.pdf |
SL&C 3/19/2021 1:30:00 PM |
SLAC GOV APPOINTEE BEO MICHAEL MAVENCAMP |
| SB 87 SLAC Answers to Members' Questions.pdf |
HL&C 4/12/2021 3:15:00 PM SL&C 3/19/2021 1:30:00 PM |
SB 87 |
| CSSB 45 Version W.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |
| CSSB 45 Explanation of Changes 3.19.21.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |
| SB 45 Support Aaron Kusano.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |
| SB 45 Support Andrea Thomas.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |
| SB 45 Support Johna Beech.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |
| SB 45 Support Kristen McDonald.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |
| SB 45 Support Robin Minard.pdf |
SL&C 3/19/2021 1:30:00 PM |
SB 45 |