Legislature(2019 - 2020)BARNES 124

03/05/2020 08:00 AM COMMUNITY & REGIONAL AFFAIRS

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ HB 174 MIN. AGE TO POSSESS NICOTINE/ECIG PRODUCT TELECONFERENCED
Heard & Held
*+ HCR 14 BRAIN INJURY AWARENESS MONTH TELECONFERENCED
Moved HCR 14 Out of Committee
        HB 174-MIN. AGE TO POSSESS NICOTINE/ECIG PRODUCT                                                                    
                                                                                                                                
8:03:30 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  DRUMMOND announced  that  the first  order of  business                                                               
would be HOUSE  BILL NO. 174, "An Act raising  the minimum age to                                                               
purchase,  sell,  exchange,  or   possess  a  product  containing                                                               
nicotine or an  electronic smoking product; and  providing for an                                                               
effective date."                                                                                                                
                                                                                                                                
8:03:41 AM                                                                                                                    
                                                                                                                                
CO-CHAIR HANNAN moved to adopt  the proposed committee substitute                                                               
(CS) for HB 174,  Version 31-LS0957\S, Caouette/Radford, 2/21/20,                                                               
as a working document.                                                                                                          
                                                                                                                                
CO-CHAIR DRUMMOND objected for purposes of discussion.                                                                          
                                                                                                                                
8:04:16 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE  GARY KNOPP,  Alaska State  Legislature, as  prime                                                               
sponsor, presented  HB 174.   He explained  that in  the original                                                               
bill version  there was  an exemption  for military  personnel to                                                               
keep  the  age limit  to  18;  however,  since then  the  federal                                                               
government has  taken action to  set the federal standard  at 21.                                                               
The purpose  of the proposed  CS was  to comply with  the federal                                                               
standard.                                                                                                                       
                                                                                                                                
REPRESENTATIVE KNOPP  said even  with the  change in  the federal                                                               
government standard, the state's  penalties are slightly harsher.                                                               
He explained:                                                                                                                   
                                                                                                                                
     So, if  you were to sell  to a person under  21 but age                                                                    
     20, the federal  ... penalties would apply;  but if you                                                                    
     sold to  somebody under the  age of 19, then  the state                                                                    
     regulations would  apply.   So, that's  the discrepancy                                                                    
     in  the  age difference.    So,  if  we bring  the  ...                                                                    
     state's limit  up to  21, then  we eliminate  that, and                                                                    
     then  ... the  penalties we  had put  in over  time for                                                                    
     selling  tobacco  products  to  underage  minors  would                                                                    
     apply.                                                                                                                     
                                                                                                                                
8:06:40 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND noted those available to answer questions.                                                                    
                                                                                                                                
8:07:01 AM                                                                                                                    
                                                                                                                                
KERRY  CROCKER, Staff,  Representative Gary  Knopp, Alaska  State                                                               
Legislature, presented HB 174 on  behalf of Representative Knopp,                                                               
prime  sponsor.   He read  the sponsor  statement, which  read as                                                               
follows [original punctuation provided]:                                                                                        
                                                                                                                                
     House Bill  174 HB  174 will  change Alaska  Statute to                                                                    
     match recently  implemented Federal guidelines  for the                                                                    
     sale  of tobacco  products. This  bill  will raise  the                                                                    
     legal age of  tobacco use in Alaska to 21  and in doing                                                                    
     so end  discrepancies in  both statute  and enforcement                                                                    
     between federal and state tobacco use laws.                                                                                
                                                                                                                                
     According  to  the  Department   of  Health  and  Human                                                                    
     Services,   smoking   costs   the   State   of   Alaska                                                                    
     $575,000,000.00  in  direct  medical  expenditures  and                                                                    
     kills an estimated 700 persons  annually. The deaths of                                                                    
     Alaskans   to   smoking   further   costs   the   state                                                                    
     $261,000,000.00 yearly in lost productivity.                                                                               
                                                                                                                                
     According to the Alaska Youth  Risk Behavior Survey 12%                                                                    
     of  male youths  and 9%  of female  youths use  tobacco                                                                    
     products.  This use  of tobacco  products becomes  more                                                                    
     prevalent  the higher  the grade  level the  student is                                                                    
     in; rising from  6% in 9th grade to 16%  in 12th grade.                                                                    
     The  doubling  of the  number  of  youth tobacco  users                                                                    
     between their freshman and senior  years of high school                                                                    
     highlights how  access to tobacco  products leads  to a                                                                    
     rise  in  tobacco use.  By  raising  the legal  age  of                                                                    
     tobacco use  to the  age of  21 from the  age of  19 we                                                                    
     will  be further  removing access  to tobacco  products                                                                    
     from Alaskan youth by removing  access within their own                                                                    
     peer groups.                                                                                                               
                                                                                                                                
     The  Alaska Department  of  Health  and Human  Services                                                                    
     cites  that in  2017 only  11% of  Alaskan high  school                                                                    
     students  who  used  tobacco products  purchased  those                                                                    
     products  for themselves.  That leaves  89% of  Alaskan                                                                    
     high  school students  who obtain  tobacco products  by                                                                    
     other means,  including, borrowing them from  a peer or                                                                    
     giving  a peer  over the  legal age  money to  purchase                                                                    
     tobacco products on their behalf.                                                                                          
                                                                                                                                
     It is important to  match Alaskan smoking statutes with                                                                    
     federal  guidelines   in  order  to  allow   State  law                                                                    
     enforcement personnel  to prevent and enforce  sales to                                                                    
     under age consumers.                                                                                                       
                                                                                                                                
     It is the intent of this  bill to not only match Alaska                                                                    
     Statute with Federal guidelines,  but to combat tobacco                                                                    
     use among Alaskan children.                                                                                                
                                                                                                                                
MR.  CROCKER  noted  that   Alaska  receives  approximately  $2.8                                                               
million in federal substance abuse  grants, and if the state does                                                               
not  comply with  the federal  standard set  at age  21, then  it                                                               
would "eventually lose some of those grants."                                                                                   
                                                                                                                                
8:09:14 AM                                                                                                                    
                                                                                                                                
INTIMAYO  HARBISON,  Staff,  Representative  Gary  Knopp,  Alaska                                                               
State  Legislature,  on  behalf of  Representative  Knopp,  prime                                                               
sponsor, explained changes in a  committee substitute and offered                                                               
a sectional analysis during the hearing  on HB 174.  He explained                                                               
that  Version S  would  remove  Section 3  of  the original  bill                                                               
pertaining to  correctional facilities  and active  duty military                                                               
members; it would  amend Section 5 to  remove language pertaining                                                               
to  active members  of the  armed  forces of  the United  States;                                                               
Section  6 would  be amended  by the  removal of  [paragraph (3),                                                               
subparagraph  (B)] and  [paragraph (4),  subparagraph (B)],  both                                                               
relating to  active duty  members; it would  amend Section  12 to                                                               
remove [paragraph (6)], pertaining to  active duty members of the                                                               
armed  forces;  and  it  would  add  Section  15,  to  repeal  AS                                                               
11.76.100(e).                                                                                                                   
                                                                                                                                
MR. HARBISON  next presented the  sectional analysis,  which read                                                               
as follows [original punctuation provided]:                                                                                     
                                                                                                                                
     Section 1:  Amends Alaska Statute  to raise the  age of                                                                    
     selling or giving tobacco, from Minor to 21.                                                                               
                                                                                                                                
     Section 2:  Amends Alaska Statute  to raise the  age of                                                                    
     selling or giving tobacco, from 19 to 21.                                                                                  
                                                                                                                                
     Section 3:  Amends Alaska Statute  to raise the  age of                                                                    
     possession  for   tobacco  from   19  to   21.  Removes                                                                    
     exemptions for prisoners.                                                                                                  
                                                                                                                                
     Section 4: Amends  Alaska Statute to change  the age in                                                                    
     the sale of  tobacco outside a controlled  area from 19                                                                    
     to 21.                                                                                                                     
                                                                                                                                
     Section 5: Amends  Alaska Statute to change  the age of                                                                    
     selling or  giving a product  containing nicotine  to a                                                                    
     minor from Minor to 21.                                                                                                    
                                                                                                                                
     Section 6: Amends  Alaska Statute to change  the age of                                                                    
     selling or  giving a product  containing nicotine  to a                                                                    
     minor from 19 to 21.                                                                                                       
                                                                                                                                
     Section 7: Amends  Alaska Statute to change  the age of                                                                    
     selling or  giving a product  containing nicotine  to a                                                                    
     minor from 19 to 21.                                                                                                       
                                                                                                                                
     Section 8: Amends  Alaska Statute to change  the age of                                                                    
     selling or  giving a product  containing nicotine  to a                                                                    
     minor from 19 to 21.                                                                                                       
                                                                                                                                
     Section 9: Amends  Alaska Statute to change  the age on                                                                    
     the restriction on  shipping or transporting cigarettes                                                                    
     from 19 to 21.                                                                                                             
                                                                                                                                
     Section 10: Amends Alaska Statute  to change the age on                                                                    
     license endorsement  for the  sale of  tobacco products                                                                    
     from 19 to 21.                                                                                                             
                                                                                                                                
     Section 11: Amends Alaska Statute  to change the age on                                                                    
     license endorsement  for the  sale of  tobacco products                                                                    
     from 19 to 21.                                                                                                             
                                                                                                                                
     Section 12: Amends Alaska Statute  to change the age on                                                                    
     license endorsement  for the  sale of  tobacco products                                                                    
     from 19 to 21.                                                                                                             
                                                                                                                                
     Section 13: Amends Alaska Statute  to change the age on                                                                    
     license endorsement  for the  sale of  tobacco products                                                                    
     from 19 to 21.                                                                                                             
                                                                                                                                
     Section 14: Amends Alaska Statute  to change the age of                                                                    
     possession  for tobacco  under provisions  inapplicable                                                                    
     from 19 to 21.                                                                                                             
                                                                                                                                
     Section   15:   No   changes  in   this   section.   AS                                                                    
     11.76.100(e) is repealed.                                                                                                  
                                                                                                                                
     Section 16: Provides effective date of 01/01/2021.                                                                         
                                                                                                                                
8:12:28 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND  removed her objection  to the motion  to adopt                                                               
the proposed  committee substitute (CS)  for HB 174,  Version 31-                                                               
LS0957\S,  Caouette/Radford,  2/21/20,  as  a  working  document.                                                               
There  being  no further  objection,  Version  S was  before  the                                                               
committee.                                                                                                                      
                                                                                                                                
8:12:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE THOMPSON asked for  confirmation that currently an                                                               
establishment that sells cigarettes to  someone under 21 years of                                                               
age can lose its business license.                                                                                              
                                                                                                                                
MR.  HARBISON  answered  that currently,  because  the  State  of                                                               
Alaska has set the age of 19 in  statute, it would not be able to                                                               
enforce the  federal regulation of  age 21; therefore,  the State                                                               
of  Alaska currently  could not  penalize  any establishment  for                                                               
selling to somebody who is [19 or 20 years of age].                                                                             
                                                                                                                                
8:13:47 AM                                                                                                                    
                                                                                                                                
REPRESENTATIVE   KNOPP  offered   his  understanding   that  what                                                               
Representative  Thompson wanted  to know  was whether  a licensed                                                               
facility  selling tobacco  products  could lose  its license  for                                                               
selling to an underage minor.                                                                                                   
                                                                                                                                
REPRESENTATIVE THOMPSON confirmed that is correct.                                                                              
                                                                                                                                
REPRESENTATIVE KNOPP  mentioned penalties and said  that "so much                                                               
of  that is  in  regulation not  in statutes."    He offered  his                                                               
understanding that "they actually  are suspended from selling for                                                               
the  20 days  on a  first  offense."   Subsequent offenses  could                                                               
result in a [selling license] being revoked.                                                                                    
                                                                                                                                
REPRESENTATIVE    THOMPSON   expressed    concerned   about    an                                                               
establishment losing its business license.                                                                                      
                                                                                                                                
REPRESENTATIVE KNOPP  confirmed that the  loss is of  the license                                                               
[to  sell tobacco  products]  -  not the  business  license.   In                                                               
response to  a follow-up question,  he said  currently businesses                                                               
[that want to sell tobacco  products] get an endorsement on their                                                               
licenses.                                                                                                                       
                                                                                                                                
8:15:24 AM                                                                                                                    
                                                                                                                                
CO-CHAIR  HANNAN   asked  for  a  description   of  the  specific                                                               
licensure to sell  tobacco and the current  process of punishment                                                               
for violations  and whether  anything about  that other  than age                                                               
requirement would be changed under Version S.                                                                                   
                                                                                                                                
8:16:15 AM                                                                                                                    
                                                                                                                                
JOE  DARNELL,   Investigator  III,  Tobacco  Youth   Education  &                                                               
Enforcement  Program, Division  of Behavioral  Health, Department                                                               
of  Health  & Social  Services,  stated  that  in order  to  sell                                                               
tobacco products in  the state of Alaska, a  retailer is required                                                               
to have  a business license  and a  tobacco endorsement.   Once a                                                               
retailer  is convicted  of selling  to a  minor "that  conviction                                                               
then goes  over to  licensing and  licensing uses  the conviction                                                               
under  statute to  suspend the  endorsement."   He confirmed  the                                                               
bill  sponsor's  response that  the  first  offense is  a  20-day                                                               
suspension, with  a possibility  of mitigating that  penalty down                                                               
to  a 10-day  suspension.   At  the point  of  first offense  the                                                               
business  is "on  a  2-year clock"  and can  be  issued a  45-day                                                               
suspension  if another  offense occurs  within two  years of  the                                                               
first.    He  said,  "A  second   one  after  that  is  a  90-day                                                               
suspension,  and  a  third  they   can  lose  their  endorsement,                                                               
depending  on  circumstances,  from one  year  to  indefinitely."                                                               
Under HB 174, he said, none  of that would change; the bill would                                                               
just raise  the age from  19 to 21.   In response to  a follow-up                                                               
question  from  Co-Chair  Hannan,  he said  currently  there  are                                                               
1,500-1,600 endorsements and  the division has a staff  of 3 that                                                               
do active enforcement.   He said currently there is  "a 6 percent                                                               
sell rate  of tobacco  to minors" and  10-20 suspensions  a year.                                                               
He said it  takes time to go through the  suspension process; for                                                               
example,  the sale  could have  taken  place in  January and  the                                                               
suspension may not  happen until October.  He  upped his previous                                                               
estimation of 10-20 suspensions to 20-25 suspension annually.                                                                   
                                                                                                                                
8:19:51 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND stated her assumption  that when an endorsement                                                               
is suspended, the  retailer's tobacco products stay  on the shelf                                                               
but cannot  be sold and  most likely cannot  be sold back  to the                                                               
wholesaler; therefore,  the retailer  is "stuck with  the product                                                               
until the suspension is lifted."                                                                                                
                                                                                                                                
MR. DARNELL answered that is correct.                                                                                           
                                                                                                                                
8:20:26 AM                                                                                                                    
                                                                                                                                
CO-CHAIR DRUMMOND announced that HB 174 was held over.                                                                          
                                                                                                                                

Document Name Date/Time Subjects
20200225 signed HCR 14 hearing request for Community and Regional Affairs.pdf HCRA 3/5/2020 8:00:00 AM
HCR 14
HCR 14 Brain Injury Association of America Fact Sheet 2.25.2020.pdf HCRA 3/5/2020 8:00:00 AM
HCR 14
HCR 14 Sponsor Statement 2.25.2020.pdf HCRA 3/5/2020 8:00:00 AM
HCR 14
HCR 14 ver A 2.21.2020.pdf HCRA 3/5/2020 8:00:00 AM
HCR 14
HCR 14 Gov. Dunleavy TBI Awareness Month Proclamation 3.1.2019.pdf HCRA 3/5/2020 8:00:00 AM
HCR 14
HB 174 Ver. M 2.28.2020.PDF HCRA 3/5/2020 8:00:00 AM
HB 174
HB 174 Committee Substitute Work Draft Ver. S 2.28.2020.pdf HCRA 3/5/2020 8:00:00 AM
HB 174
HB 174 Sponsor Statement 2.25.2020.pdf HCRA 3/5/2020 8:00:00 AM
HJUD 3/16/2020 1:00:00 PM
HJUD 3/18/2020 1:00:00 PM
HB 174
HB 174 Supporting Document - States Should Enact Tobacco 21 to Reinforce New Federal Law 1.7.2020.pdf HCRA 3/5/2020 8:00:00 AM
HJUD 3/16/2020 1:00:00 PM
HJUD 3/18/2020 1:00:00 PM
HB 174
HB 174 Supporting Document - JUUL Labs letter 2.24.2020.pdf HCRA 3/5/2020 8:00:00 AM
HJUD 3/16/2020 1:00:00 PM
HJUD 3/18/2020 1:00:00 PM
HB 174
HB 174 Supporting Document - American Lung Association Letter 3.3.2020.pdf HCRA 3/5/2020 8:00:00 AM
HJUD 3/16/2020 1:00:00 PM
HJUD 3/18/2020 1:00:00 PM
HB 174
HB 174 Sectional Analysis v. K 3.4.2020.pdf HCRA 3/5/2020 8:00:00 AM
HJUD 3/16/2020 1:00:00 PM
HJUD 3/18/2020 1:00:00 PM
HB 174
HCR 14 Written Testimony--Alfonsi--3.5.2020.pdf HCRA 3/5/2020 8:00:00 AM
HCR 14