Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/03/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB94 | |
| SB89 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 94 | TELECONFERENCED | |
| += | SB 89 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
SB 89-AGE FOR TOBACCO/NICOTINE/E-CIG; TAX E-CIG
1:57:15 PM
CHAIR BJORKMAN reconvened the meeting and announced the
consideration of SENATE BILL NO. 89 "An Act relating to tobacco,
tobacco products, electronic smoking products, nicotine, and
products containing nicotine; raising the minimum age to
purchase, sell, exchange, or possess tobacco, a product
containing nicotine, or an electronic smoking product; relating
to the taxation of electronic smoking products and vapor
products; and providing for an effective date."
He asked Mr. Lamkin to give a brief recap of the bill.
1:57:44 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, offered a recap of SB 89. He
reminded the community that the bill's mission is primarily
about getting nicotine and e-cigarette products out of the hands
of Alaska's youth. He refuted previous public testimony,
stating:
• The statement that taxing e-cigarette products and
increasing the legal age to 21 years will increase the
burden on law enforcement is not true. These statutes have
been around for decades and are tools that are available to
law officers. It is not often that students are actually
cited, though these cases are increasing. In Alaska there
are different investigator classes, so each department can
hire their own enforcement arm, focusing on areas such as
licensing, tattoo parlors, and food stamp fraud.
• The statement that the tax rate is too high is not true.
Vape products are inexpensive he can provide receipts
that show he purchased e-cigarette items for $1. He can
provide local photos of e-cigarette products. He said the
pricing information on the internet shows that these
products are cheap.
He commented on out-of-state individuals that maintain that
Alaska doesn't have a problem with e-cigarette products in
schools. He related that he has been working on a database that
is comprised of a series of questions and answers between
himself and the schools:
• Are you seeing e-cigarettes in schools? Overwhelmingly yes.
• Are e-cigarettes on the rise in schools? Overwhelmingly
yes.
• Do you believe that vape products and e-cigarettes are
safe? Overwhelmingly no.
• As with alcohol, do you support raising the legal age to
buy/sell/possess e-cigarettes to age 21? Overwhelmingly
yes.
• Do you support establishing a 25 percent retail sales tax
on e-cigarettes as a way to deter youth initiation?
Overwhelmingly yes.
MR. LAMKIN reiterated that youth vaping is a problem that needs
to be addressed.
2:00:41 PM
SENATOR DUNBAR expressed concern that 19-year-olds and 20-year-
olds may lose employment opportunities. He asked whether the
sponsor had looked into the potential impacts of the 25 percent
tax, noting that some testifiers believed it might create a
black market. He asked whether vape products would still be
substantially cheaper than cigarettes after the 25 percent tax
was imposed.
MR. LAMKIN answered that it depends on who answers those
questions. Dr. Frank J. Chaloupka IV, a research professor and
arguably the nation's leading tobacco economist, has no problem
with the 25 percent retail tax and finds that it is at parity
with tobacco products.
2:03:20 PM
SENATOR DUNBAR asked whether he researched the impact the tax
might have had in Anchorage.
MR. LAMKIN replied that he is not sure that information was
available yet, but information from the Center for Disease
Control (CDC) historically has indicated that taxing tobacco and
cigarettes is the single most effective way to reduce
consumption of those products.
SENATOR DUNBAR focused his question. He said Anchorage has a
substantial vape tax that raises a lot of annual revenue. He
asked whether the changes Anchorage made actually increase
tobacco use or if it drove people to the black market. He
surmised that it would be prudent to consider potential negative
effects.
MR. LAMKIN said that kind of information would be highly
anecdotal; he wasnt aware of any empirical information. He
noted that it is difficult to obtain data on the black market,
but he was willing to pursue that question for the committee.
2:05:21 PM
SENATOR GRAY-JACKSON recalled that the tax used to be 50
percent, so the 25 percent rate was a compromise.
2:05:53 PM
CHAIR BJORKMAN asked whether it would be challenging to enforce
the bill.
2:06:30 PM
JOE DARNELL, Chief Investigator, Tobacco Enforcement & Youth
Education, Department of Health (DOH), Anchorage, Alaska,
answered questions about SB 89. He expressed that he did not see
any added workload for the department if this bill were to pass.
2:07:02 PM
SYLVAN ROBB, Director, Division of Corporations, Business and
Professional Licensing, Department of Commerce, Community and
Economic Development, Juneau, Alaska, answered questions about
SB 89. She replied that the division is currently enforcing the
age 21 tobacco law and would not see any change if the bill were
to pass.
2:07:33 PM
CHAIR DUNBAR reminded the public that they could submit written
testimony to [email protected].
2:08:07 PM
CHAIR BJORKMAN opened public testimony on SB 89.
2:08:40 PM
MEGAN BOELTER, JD, Western Regional Director, Preventing Tobacco
Addiction Foundation, Las Cruces, New Mexico, testified in
support of SB 89. She stated that she is a public health law
attorney practicing in the area of tobacco control and related
disease for the past 18 years. For more than two decades the
foundation has worked with multiple state and health advocates
to raise the age for all tobacco and nicotine products to 21,
including supporting the similar bill that passed last year in
hopes of keeping cigarettes and dangerous nicotine products away
from vulnerable youth.
MS. BOELTER stated that this bill is a step to hold retailers
accountable for illegal sales of these products and not the
youth who have been captured by deceptive and predatory sales
tactics.
MS. BOELTER refuted the claims from some opponents. She stated
that a study published last year indicated that "Tobacco 21"
laws sizably reduced twelfth grade cigarette use, with a similar
impact across the lower grades. She stated that e-cigarettes
have not been FDA approved as cessation devices. The FDA had to
include a disclaimer on its website to refute misinformation
based on fraudulent industry claims, and advise that the use of
e-cigarettes tends to prolong the process of quitting smoking.
She said that SB 89 is consistent with federal law, Alaska's
Tobacco Enforcement and Youth Education Program, and military
policy.
2:11:48 PM
JUNE ROGERS, representing self, Fairbanks, Alaska, testified in
support of SB 89. She said she supports the age change to
conform to federal law. She has contacted legislators over the
years regarding health issues her family has undergone as a
result of tobacco use. She expressed her gratitude to people who
support the bill and suggested that it would be a step towards a
healthier community.
2:12:55 PM
JASON JONES, Owner, Legion Vapor, Eagle River, Alaska, gave
public testimony on the effects of a heavy tax burden on vape
shops. He commented that the age 21 rule has already been
enforced for the last three years.
He contended that a heavy tax burden was not a deterrent to
underage vapers; minors continued buying from black market
sources. He claimed that vape products can be purchased for as
little as $1 on a Chinese website.
MR. JONES differentiated vape shops from cannabis dispensaries
and other smoke shops, clarifying that he refers to vape-only
shops in that no other paraphernalia is in the inventory. He
noted that numerous vape shops have gone out of business while
stores that had varied inventory, such as gas stations and
headshops, had started to carry vape products. He lamented the
weight of having a high tax on everything in his shop. He noted
the loss of jobs and family businesses.
He mentioned that he is a father and shares the concerns of
parents and others who do not want to see youth smoking or using
vape products.
2:15:34 PM
SENATOR MERRICK asked whether his shop is exclusively a retail
shop or if it includes on-site vaping.
MR. JONES responded that Legion Vapor is a retail shop, but
vaping is permitted in the shop. He has been in business eight
years, so his shop was grandfathered.
2:16:15 PM
TABITHA BLADES, representing self, Soldotna, Alaska, testified
in support of SB 89. She said that in her role as assistant
principal she has daily contact with over 700 Alaskan teenagers.
It is her job as disciplinarian to administer consequences for
violations to school district policy, including every school
vaping incident. She spends at least an hour each school day
investigating vaping incidents and contacting parents regarding
their use. The school invested thousands of dollars to install
HALO vape detectors that provide real time detection alerts.
Most students who are caught vaping are between 14 and 16 years
of age. Over 80 percent of students that she speaks to have been
using e-cigarettes for over a year unbeknownst to their parents.
Sales occur "by the puff" so that addicted students can get
through their day. Students who own vape devices use about a
cartridge a week and aspire to different models. Many devices
connect to apps and provide a puff score inciting competition
among friends leading to gamified addiction amongst children.
MS. BLADES said that students who do not vape feel unsafe in
school restrooms, because they are frequently pressured to
participate with, purchase from, or cover for students who vape.
Many students report that they are addicted and can't stop.
There is a school program that offers strategies on how to
remain nicotine free
MS. BLADES posited that raising the legal age to 21 would
drastically affect the availability of vape products to minors.
Most high school kids do know a 19-year-old, but rarely is a 21-
year-old still hanging out with first-year high school students.
Imposing a tax will help reduce availability to children with
limited income. Students tell her that she is only aware of the
tip of the iceberg.
2:19:33 PM
SENATOR BISHOP asked whether she knows the cost for the added
enforcement technology tools and smoking cessation classes for
students.
MS. BLADES answered that the HALO vape detectors cost $1200 each
and her school has installed ten. She said the school is
interested in installing more, as the detectors are helpful in
monitoring vaping incidents. She said a staff member is running
the vape cessation support group.
2:20:24 PM
SENATOR BISHOP commented that these mitigation efforts are
taking money from the Base Student Allegation (BSA) to enforce.
2:21:08 PM
CHAIR BJORKMAN closed public testimony on SB 89 and held the
bill in committee.