Legislature(2023 - 2024)BELTZ 105 (TSBldg)
04/21/2023 01:30 PM Senate LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| SB89 | |
| SB123 | |
| SB73 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | SB 89 | TELECONFERENCED | |
| + | SB 123 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 73 | TELECONFERENCED | |
SB 89-AGE FOR TOBACCO/NICOTINE/E-CIG; TAX E-CIG
1:36:28 PM
CHAIR BJORKMAN 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 stated that this is the fourth hearing of this bill and Tim
Lamkin will provide a recap.
1:37:05 PM
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State
Legislature, Juneau, Alaska, gave a recap of and responded to
question on SB 89. He stated that this bill aligns state law
with federal law for sales of tobacco and e-cigarette products
to individuals age 21 and older and establishes a 25 percent
retail sales tax on e-cigarette products.
CHAIR BJORKMAN noted there was a committee substitute (CS) two
amendments for the committee to consider. He solicited a motion
to adopt the proposed CS.
1:37:55 PM
SENATOR GRAY-JACKSON moved to adopt the committee substitute
(CS) for SB 89, work order 33-LS0247\S, as the working document.
CHAIR BJORKMAN objected for purposes of discussion.
1:38:34 PM
KONRAD JACKSON, Staff, Senator Jesse Bjorkman, Alaska State
Legislature, Juneau, Alaska, presented the following summary of
changes from CS version B to S for SB 89:
[Original punctuation provided.]
SUMMARY of CHANGES
(from version B to version S)
Reflected version S:
Change #1: Page 3, lines 17-19
The fine for a violation for underage possession was
reduced from up to $300, to up to $150. A provision
was also added for the court to offer a defendant, in
lieu of paying a fine, the option of participating in
an educational program on the risks of tobacco use;
Change #2: Page 9, line 30
Added the tax on E-Cigs is "25% of the retail sales
price" of the products;
Change #3: Page 10, 19-20
Added the definition of Hemp products, given hemp
products are being exempted from the tax program;
Change #4: Page 12, after line 2
Deleted from version B was a subsection on tax credits
and refunds, as they apply to wholesale tax structure,
and this is a retail tax program;
Change #5: Page 12, lines 17-19
Added an allowance for tax proceeds to be used for
relief for schools in contracting with health
advocates conducting smoking cessation seminars and
installation of vaping detection devices;
Change #6: Page 14, line 23
Increased the limit of nicotine concentration from 20
mg/mL to 60 mg/mL;
Change #7: Page 16, line 18
Under the definition of "retailer," added "..in the
business of selling [ESPs] at retail;"
Change #8: Page 21, line 25
Moved the effective date from July 1, 2023 to January
1, 2024. This change also resulted in deleting
Sections 2 and 10 from version B, as they were
technical in nature.
1:41:45 PM
CHAIR BJORKMAN removed his objection. Finding no further
objection, CSSB 89, version S, was adopted as the working
document.
1:42:08 PM
SENATOR DUNBAR moved to adopt Amendment 1, work order 33-
LS0247\B.1, for CSSB 89. He advised that the amendment was
drafted to SB 89, version B, so the committee would need to
grant Legislative Legal authority to make conforming changes to
CSSB 89, version S if the amendment is adopted.
33-LS0247\B.1
Nauman
4/6/23
AMENDMENT 1
OFFERED IN THE SENATE BY SENATOR DUNBAR
TO: SB 89
Page 1, line 2:
Delete "sell,"
Page 2, line 5:
Delete "21 [19]"
Insert "19"
Page 3, line 10:
Delete "A"
Insert "Except as provided in (e) of this
section, a [A]"
Page 4, line 3:
Delete "a new subsection"
Insert "new subsections"
Page 4, following line 5:
Insert a new subsection to read:
"(e) The provisions of (a) of this section do
not apply to a person 19 or 20 years of age who is
employed by a person with a business license
endorsement under AS 43.70.075 and, as part of that
employment, is selling a cigarette, a cigar, tobacco,
a product containing tobacco, an electronic smoking
product, or a product containing nicotine."
Page 5, line 9:
Delete "21 [19]"
Insert "19"
Page 22, line 3:
Delete "(a)"
Page 22, line 8, following "AS 11.76.105(d)":
Insert "and (e)"
Page 22, lines 19 - 22:
Delete all material.
CHAIR BJORKMAN objected for purposes of discussion.
CHAIR BJORKMAN removed his objection.
1:45:24 PM
SENATOR BISHOP asked whether the Anchorage Assembly collected
analytical data showing the number of 19-year-olds operating in
this space.
SENATOR DUNBAR replied that he was unable to collect that data.
Anecdotally, he relayed a story about a 19 or 20-year-old who
said he would lose his job without this amendment. Senator
Dunbar said that these entry-level positions are the kind of
jobs that young people have the most access to and they should
not be restricted from such employment.
1:46:27 PM
SENATOR GRAY-JACKSON asked for the sponsor's position on
Amendment 1.
1:46:45 PM
MR. LAMKIN answered that first and foremost Senator Stevens
wants to see progress on SB 89. He described the controlled
access provision in state law and assured the members that the
bill does not preclude someone who is 18 or 19 from the job,
they just need a supervisor who is age 21 or older who is
present to facilitate the transaction.
1:48:12 PM
CHAIR BJORKMAN found no further objection and Amendment 1 was
adopted.
1:48:26 PM
SENATOR GRAY-JACKSON, on behalf of Senator Bjorkman, moved to
adopt Amendment 2 to SB 89, [work order 33-LS0247\S.1].
33-LS0247\S.1
Nauman
4/18/23
AMENDMENT 2
OFFERED IN THE SENATE BY SENATOR BJORKMAN
TO: CSSB 89(L&C), Draft Version "S"
Page 1, line 2:
Delete "raising"
Insert "relating to"
Page 2, line 5:
Delete "21"
Insert "18"
Page 2, line 25:
Delete "A"
Insert "Except as provided in (e) of this
section, a [A]"
Page 3, line 20:
Delete "a new subsection"
Insert "new subsections"
Page 3, following line 22:
Insert a new subsection to read:
"(e) The provisions of (a) of this section do
not apply to a person 18, 19, or 20 years of age who
is employed by a person with a business license
endorsement under AS 43.70.075 and, as part of that
employment, is selling a cigarette, a cigar, tobacco,
a product containing tobacco, an electronic smoking
product, or a product containing nicotine."
Page 4, line 26:
Delete "21"
Insert "18"
Page 21, line 5:
Delete "(a)"
Page 21, line 10, following "AS 11.76.105(d)":
Insert "and (e)"
Page 21, lines 21 - 24:
Delete all material.
CHAIR BJORKMAN objected for purposes of discussion. He said
Amendment 1 permits a person 19 or 20 years of age to sell
cigarettes, cigars, tobacco products, electronic smoking
products and products containing nicotine as part of their
employment. He argued that the age range should be expanded to
include a person 18 years of age. An 18-year-old would be
unemployable without an older person onsite and available to
supervise. A college-age person who has graduated from high
school should be able to work in this area. It would still be
illegal with harsh punishments if they were to buy, sell, or
possess these products in violation of the law. However, 18-
year-olds should not be prevented from working in these
establishments to fulfill their economic needs. The age should
be 18 instead of 19.
CHAIR BJORKMAN removed his objection and asked if there was
further objection.
1:50:16 PM
SENATOR DUNBAR objected for purposes of further discussion. He
asked the bill sponsor whether there is a legal difference
between 18- and 19-year-olds under existing law, and if so,
whether Amendment 2 would cause SB 89 to roll back existing law
on tobacco products.
1:51:58 PM
MR. LAMKIN replied that this subject matter has a long, sordid
history. State law is 19, currently. It has been 19 since the
1980s. The policy decision orbited around the idea that 18-year-
olds are still in school. He offered the notion that if the
state targets young adults and sub-adults who have social
circles that include 15-, 16-, 17- and 18-year-olds, it is
easier for those under 18 to access the products. Herein lies
the core question. He asked whether the law is written to
support adults at 18 or protect children under 18.
1:52:11 PM
SENATOR DUNBAR commented that this is a challenging area. Young
people are in a legal and societal liminal space. Young men are
required to register for Selective Service at age 18 could be
sent to war, however, many 18-year-olds are still in high
school. He clarified that 19-year-olds are in high school too,
though far fewer. He said that SB 89 should move in a positive
direction of discouraging nicotine addiction and tobacco product
use. An amendment to keep that age at 19 and 20 is neutral,
whereas an amendment to drop the age to 18 is moving in the
opposite direction. He said for that reason he maintains his
objection to Amendment 2.
1:53:45 PM
SENATOR GRAY-JACKSON said she cosponsored this legislation last
year and she is a cosponsor this year. She thanked Mr. Lamkin
for reiterating the importance of SB 89. She opposed the
[amendment].
1:54:19 PM
At ease.
1:54:58 PM
CHAIR BJORKMAN reconvened the meeting.
1:55:12 PM
SENATOR GRAY-JACKSON corrected her previous statement stating
that she supports the bill but not Amendment 2.
1:55:38 PM
CHAIR BJORKMAN said he discourages teens from vaping and e-
cigarette use; however, he does not want to discourage an 18-
year-old high school graduate from working. This country values
economic freedom, opportunity, and the ability to work and earn.
He said that with freedom comes responsibility. People have the
responsibility to make good choices and follow the law. Passing
laws that prevent people who are above the age of adulthood from
working is not in keeping with the spirit of liberty and
freedom. Employers need employees to serve alcohol or to wait
tables, people willing to do the work. As laws continue to
restrict people from working, fewer people will be willing to
work.
1:57:26 PM
SENATOR DUNBAR responded to the comment about high school
graduates who are 18 years of age. He said he could support the
amendment, but not while the 18-year-old is in school.
1:58:28 PM
SENATOR BISHOP commented he wants the bill to be effective and
work. He found that Senator Dunbar made an important
distinction. He stated that an 18-year-old who is still in high
school has peer pressure from classmates.
1:59:24 PM
SENATOR GRAY-JACKSON commented that these establishments are not
the only establishments where 18-year-olds can find work.
2:00:02 PM
CHAIR BJORKMAN moved to withdraw Amendment 2. Finding no
objection, Amendment 2 was withdrawn.
2:00:25 PM
SENATOR GRAY-JACKSON moved to report CSSB 89, work order 33-
LS0247\S, as amended, from committee with individual
recommendations and attached fiscal note(s). She further moved
that the committee grant Legislative Legal the authorization to
make technical and conforming changes.
2:00:49 PM
CHAIR BJORKMAN found no objection and CSSB 89(L&C) was reported
from the Senate Labor and Commerce Standing Committee.