Legislature(2021 - 2022)BELTZ 105 (TSBldg)

02/19/2021 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:31:11 PM Start
01:31:48 PM SB45
02:57:22 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 45 AGE FOR NICOTINE/E-CIG; TAX E-CIG. TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
**Streamed live on AKL.tv**
            SB 45-AGE FOR NICOTINE/E-CIG; TAX E-CIG.                                                                        
                                                                                                                                
1:31:48 PM                                                                                                                    
CHAIR COSTELLO 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."                                                                                                         
                                                                                                                                
1:33:29 PM                                                                                                                    
SENATOR GARY STEVENS,  speaking as sponsor, stated that  SB 45 is                                                               
about   protecting   children   from   nicotine   addiction   and                                                               
restricting  sales and  the possession  of  nicotine products  to                                                               
youth. He advised  that while public health  advocates, with help                                                               
from scientific  evidence, are winning  the war  against tobacco,                                                               
the  use  of electronic  cigarettes  or  vaping is  an  exploding                                                               
trend.                                                                                                                          
                                                                                                                                
1:33:57 PM                                                                                                                    
TIM   LAMKIN,  Staff,   Senator   Gary   Stevens,  Alaska   State                                                               
Legislature,  Juneau,  Alaska,  sponsor   of  SB  45,  began  the                                                               
introduction  of SB  45 with  a  compelling video,  couched in  a                                                               
letter  to the  president, about  the efforts  to restrict  youth                                                               
access to  nicotine and e-cigarettes.  [The video is on  BASIS on                                                               
the documents page for SB 45.]                                                                                                  
                                                                                                                                
1:40:28 PM                                                                                                                    
MR.  LAMKIN  informed  the  members  that  the  young  woman  who                                                               
prepared the  video is a  16-year-old student who is  involved in                                                               
an action group at Stanford University.                                                                                         
                                                                                                                                
1:41:01 PM                                                                                                                    
MR.  LAMKIN  shared  a  follow-up   video  from  an  August  2020                                                               
conference that  featured Alaska  Chief Medical Officer  Dr. Anne                                                               
Zink talking about the e-cigarette  pandemic the state is facing.                                                               
[The video is on BASIS on the documents page for SB 45.]                                                                        
                                                                                                                                
In the  video, Dr. Zink directed  attention to a slide  of survey                                                               
data about  youth cigarette use  since 2007, and the  increase to                                                               
26.1  percent in  2015  when e-cigarette  use  was included.  She                                                               
mentioned the  paper the DHSS  team prepared that includes  a pie                                                               
chart showing that  17.6 percent of preventable  deaths in Alaska                                                               
related to  smoking. She briefly  touched on how  e-cigarette use                                                               
among  youth had  become more  prevalent.  She displayed  several                                                               
slides  of  vaping  products  in disguise  and  agreed  with  the                                                               
previous  video that  some  people are  taking  advantage of  the                                                               
pandemic  to  promote  unhealthy  behavior. She  said  this  does                                                               
matter  because the  myelination of  the brain,  particularly the                                                               
frontal lobe,  continues to  develop into  the mid-20s.  Dr. Zink                                                               
said it is also important to think about the way that e-                                                                        
cigarettes hurt the  lungs. She noted that one case  of EVALI [e-                                                               
cigarette,  or vaping,  product use-associated  lung injury]  had                                                               
been  diagnosed in  Alaska, but  there  are continuing  outbreaks                                                               
nationwide.                                                                                                                     
                                                                                                                                
1:47:29 PM                                                                                                                    
The video further  showed Dr. Zink displaying a pie  chart of the                                                               
breakdown on  how Alaska high  school students who  currently use                                                               
e-cigarettes  obtain  them. Some  were  purchased  online and  in                                                               
stores, but close to 50 percent  of the time students borrowed e-                                                               
cigarettes from somebody  else. She said the  top reasons Alaskan                                                               
teens use e-cigarettes  are because 1) a family  member or friend                                                               
used them,  2) flavors such  as mint, candy, fruit,  or chocolate                                                               
made them  attractive, and  3) the  belief that  e-cigarettes are                                                               
less harmful than other forms of tobacco.                                                                                       
                                                                                                                                
Data  further shows  that while  vaping among  Alaska traditional                                                               
high school  students is  26 percent, it  is less  among students                                                               
who  have protective  factors. She  expressed hope  that Alaska's                                                               
1115 Behavioral  Health Medicaid Waiver would  make a difference,                                                               
but that it  was important to find ways to  support youth to make                                                               
connections.  Students are  less likely  to vape  if they  have a                                                               
teacher who cares about them, if  they feel they matter to people                                                               
in the  community, and if they  do not feel alone  in their life.                                                               
She  stressed   the  importance  of  supporting   kids,  building                                                               
resiliency, and ensuring they feel protected and loved.                                                                         
                                                                                                                                
1:50:38 PM                                                                                                                    
CHAIR  COSTELLO  asked  Mr.  Lamkin  to  present  the  PowerPoint                                                               
followed by the sectional analysis.                                                                                             
                                                                                                                                
1:51:16 PM                                                                                                                    
MR. LAMKIN  presented a PowerPoint  that reinforced  the previous                                                               
two  videos.  He displayed  slide  2  that  depicts an  array  of                                                               
delivery options for vaping devices  from e-pipes and e-cigars to                                                               
tank devices,  and disposable  and rechargeable  e-cigarettes. He                                                               
noted that these products are  advertised to be nicotine free but                                                               
that does not mean that they are  safe. Slide 3 shows the list of                                                               
ingredients  known   to  be  in   JUUL  cartridges  as   well  as                                                               
ingredients such as arsenic, formaldehyde,  and heavy metals that                                                               
were found to be in the  cartridges. Slide 4 makes the point that                                                               
the ultrafine particles in  e-cigarettes contain ingredients that                                                               
are harmful and  potentially harmful for the lungs.  He turned to                                                               
slide 5  that depicts tobacco  ads from years ago  alongside JUUL                                                               
ads today. It  makes the point that  advertising tobacco products                                                               
is regulated, but  marketing vapor products that  target youth is                                                               
completely  unregulated. Slides  6  and  7 demonstrate  celebrity                                                               
influence to  endorse these products and  Instagram, Twitter, and                                                               
YouTube clips  of youths demonstrating and  advising other youths                                                               
about vaping. Slide 8 shows a  wide variety of flavorings used in                                                               
e-products that disguise the taste of nicotine.                                                                                 
                                                                                                                                
MR. LAMKIN turned  to slide 9 that states that  the Food and Drug                                                               
Administration  has  not found  any  e-cigarette  to be  safe  or                                                               
effective in  helping smokers  quit tobacco.  He noted  that some                                                               
testimony  will   contradict  this,  but   e-cigarettes  actually                                                               
sustain  the addiction  to nicotine  and  tobacco. He  emphasized                                                               
that  quitting  actually  means ending  the  addiction  outright.                                                               
Slide  11  shows  the  results  of the  2017  Alaska  Youth  Risk                                                               
Behavioral  Survey:  Current Use  Rates.  Of  those surveyed,  40                                                               
percent reported having tried e-cigarettes  and 16 percent report                                                               
current  use. He  said, "These  products are  in students'  hands                                                               
even down to  middle school and in some instances  being found in                                                               
our elementary  schools." He turned  to slide 12 that  shows some                                                               
of  the  seemingly  innocent e-devices  recently  confiscated  in                                                               
Alaska schools, including an amulet vape watch.                                                                                 
                                                                                                                                
1:54:30 PM                                                                                                                    
MR. LAMKIN  displayed slide  13 that contains  an image  from the                                                               
infamous 1994  Waxman Hearings  when the CEOs  of the  major U.S.                                                               
cigarette   manufacturers   appeared   before   a   congressional                                                               
committee and swore  under oath that their  products (nicotine in                                                               
particular) were  neither addictive nor harmful  to human health.                                                               
He  said  everyone  knows  how   that  played  out  yet  industry                                                               
advocates today  insist that  e-cigarettes are  neither addictive                                                               
nor harmful.  They describe  e-cigarettes as  a safe  and healthy                                                               
nicotine-free  alternative  to  tobacco  when  in  fact  they  do                                                               
contain nicotine and are completely unregulated.                                                                                
                                                                                                                                
MR. LAMKIN reported  that in 2019 federal  legislation raised the                                                               
national minimum  age to buy,  sell, or possess  tobacco products                                                               
and e-cigarettes and  devices to 21 years of age.  Since then, 34                                                               
states have raised  their minimum age to comply  with the federal                                                               
law. He  explained that the primary  goal of SB 45  is to conform                                                               
to  federal law  and, without  exception, raise  the minimum  age                                                               
from 19 to  21. He noted that historical  exemptions, which would                                                               
no longer  apply, have been for  people both in the  military and                                                               
in jail.                                                                                                                        
                                                                                                                                
He summarized that SB 45 repeals  all the existing buy, sell, and                                                               
possession exemptions for those  in jail; restricts online sales;                                                               
requires age verification  at the time of  delivery; and requires                                                               
product labeling.                                                                                                               
                                                                                                                                
1:59:11 PM                                                                                                                    
MR. LAMKIN  presented the sectional  analysis for SB  45, version                                                               
B. He clarified that the  bill largely conforms the existing laws                                                               
related  to  tobacco and  e-products  to  federal law,  summarily                                                               
changing the age threshold from 19 to 21.                                                                                       
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
1:59:31 PM                                                                                                                    
     Sec. 1: AS 11.76.100(a),  relating to selling or giving                                                                    
     tobacco to a  minor, raises the minimum age  from 19 to                                                                    
     21.                                                                                                                        
                                                                                                                                
     Sec. 2:  AS 11.76.100(b),  relating to  the requirement                                                                    
     for  vendors  to  supervise the  operation  of  tobacco                                                                    
     product  vending machines  (TVM), amends  the exemption                                                                    
     for  TVMs situated  in a  private break  room, provided                                                                    
     there is  signage posted indicating the  minimum age to                                                                    
     possess tobacco products is age 21 (from 19).                                                                              
                                                                                                                                
     Sec.  3:  AS  11.76.105,   relating  to  possession  of                                                                    
     tobacco,   electronic   smoking  products   (ESP),   or                                                                    
     products  containing nicotine,  raises the  minimum age                                                                    
     to possess from 19 to 21  years of age, and removes the                                                                    
     exemption for incarcerated minors.                                                                                         
                                                                                                                                
     Sec.  4: 1.76.106(a),  bans tobacco  and ESPs  sales to                                                                    
     individuals over the internet.                                                                                             
                                                                                                                                
MR. LAMKIN noted that according to the Tobacco Control Legal                                                                    
Consortium, the only way to prevent access is to prohibit face-                                                                 
to-face sales of e-cigarette products.                                                                                          
                                                                                                                                
     Sec. 5:  AS 11.76.106(b),  relating to the  'behind the                                                                    
     counter'   control   provisions  of   selling   tobacco                                                                    
     products,  allowing  exemptions  for tobacco  shops  or                                                                    
     online sales, raising the minimum,  age to sell from 19                                                                    
     to 21 years of age.                                                                                                        
                                                                                                                                
     Sec.  6: AS  11.76.109(a), relating  to other  products                                                                    
     containing nicotine,  including chew, gum,  patches, or                                                                    
     E-cigarette products,  raises the  minimum age  to sell                                                                    
     or give such products from 19 to 21.                                                                                       
                                                                                                                                
     Sec.  7: AS  11.76.109(b),  relating  to exemptions  to                                                                    
     selling products  containing nicotine to  persons under                                                                    
     the  age  of  21,   if  the  product  is  FDA-approved,                                                                    
     prescribed by a  doctor, or given by a  parent or legal                                                                    
     guardian.                                                                                                                  
                                                                                                                                
2:01:42 PM                                                                                                                    
     Sec. 8:  AS 11.76.109(d),  relating to  the requirement                                                                    
     for  vendors  to  supervise the  operation  of  ESP  or                                                                    
     nicotine  product vending  machines  (EVM), amends  the                                                                    
     exemption for  EVMs situated in  a private  break room,                                                                    
     provided  there   is  signage  posted   indicating  the                                                                    
     minimum  age  to possess  tobacco  products  is age  21                                                                    
     (from 19).                                                                                                                 
                                                                                                                                
     Sec. 9:  AS 11.76.109(g),  relating to the  penalty for                                                                    
     selling or giving  ESP or nicotine products  to a minor                                                                    
     as being a $300 violation,  raises the minimum age from                                                                    
     19 to 21 years of age.                                                                                                     
                                                                                                                                
     Sec.  10:   AS  43.50.105(b),  relating   to  wholesale                                                                    
     tobacco  sales  and  licensees, to  restrict  licensees                                                                    
     from  selling  or   transporting  tobacco  products  to                                                                    
     persons that  are at least  21 (from 19) years  of age,                                                                    
     and  to  implement  an age  verification  process  when                                                                    
     conducting transactions.                                                                                                   
                                                                                                                                
     Sec. 11:  AS 43.50.105(c),  relating to  common carrier                                                                    
     transportation of  cigarettes and tobacco  products, to                                                                    
     verify the age of the recipient before delivery.                                                                           
                                                                                                                                
2:02:33 PM                                                                                                                    
MR. LAMKIN drew a parallel to the existing age verification                                                                     
requirements upon delivery of wine or beer purchased                                                                            
online.                                                                                                                         
                                                                                                                                
     Sec. 12:  AS 43.50.150(c),  relating to state  being in                                                                    
     partnership  with  municipalities   in  taxing  tobacco                                                                    
     products, is amended to include taxing ESPs.                                                                               
                                                                                                                                
     Sec.  13:  AS  43.50.300, relating  to  existing  state                                                                    
     excise tax  on tobacco products, is  amended to include                                                                    
     taxing ESPs at 75% of the wholesale value.                                                                                 
                                                                                                                                
     Sec.  14: AS  43.50.310(b) exempts  the excise  tax for                                                                    
     ESPs that are  a marijuana product, and  do not contain                                                                    
     nicotine, or are FDA-approved.                                                                                             
                                                                                                                                
     Sec. 15: AS 43.50.320(a),  includes a requirement to be                                                                    
     licensed as  a distributor  of ESPs for  those products                                                                    
     subject to an excise tax.                                                                                                  
                                                                                                                                
     Sec. 16:  AS 43.50.325  adds a new  section in  the tax                                                                    
     code,  restricting the  transportation  of tobacco  and                                                                    
     ESPs into the state, requiring  licensing to do so, and                                                                    
     makes  clear   provisions  for  age   verification  for                                                                    
     delivery of and labelling for  such products. This is a                                                                    
     conforming amendment,  replicating AS  43.50.015, which                                                                    
     applies only to cigarettes.                                                                                                
                                                                                                                                
2:04:38 PM                                                                                                                    
     Sec. 17: AS 43.50.330(a),  relating to annual reporting                                                                    
     requirements for tax  purposes, amends existing tobacco                                                                    
     sales reporting to include ESP reporting.                                                                                  
                                                                                                                                
     Sec.  18: AS  43.50.335, relating  to existing  tobacco                                                                    
     tax  credits  and  refunds   for  faulty  or  destroyed                                                                    
     products, to  include credits  for similarly  faulty or                                                                    
     destroyed ESPs.                                                                                                            
                                                                                                                                
     Sec.  19: AS  43.50.340,  relating  to existing  record                                                                    
     keeping  requirements for  licensed businesses  selling                                                                    
     tobacco products,  to also be  required to  track sales                                                                    
     and product information on ESPs being sold.                                                                                
                                                                                                                                
     Sec. 20:  AS 43.50.390(1),  relating to  the definition                                                                    
     of a  distributor of tobacco products,  to also include                                                                    
     ESPs, for  purposes of  identifying business  who bring                                                                    
     ESPs  in and  out of  state, manufactures  ESPs in  the                                                                    
     state, or ships ESPs to retailers in the state.                                                                            
                                                                                                                                
     Sec.  21:   AS  43.50.390(5),  relating  to   the  term                                                                    
     "wholesale  price"  for   purposes  of  taxing  tobacco                                                                    
     products, includes  ESPs as  part of  wholesale pricing                                                                    
     and taxing.                                                                                                                
                                                                                                                                
     Sec.  22:   AS  43.50.390  provides  a   definition  of                                                                    
     "electronic  smoking product"  consistent  with use  of                                                                    
     the  phrase elsewhere  in  statute,  specifying an  ESP                                                                    
     means a:                                                                                                                   
          (A)  component, solution, vapor  product, or other                                                                    
          related product that is  manufactured and sold for                                                                    
          use in an  electronic cigarette, electronic cigar,                                                                    
          electronic  cigarillo, electronic  pipe, or  other                                                                    
          similar  device  for  the  purpose  of  delivering                                                                    
          nicotine or other substances to the person                                                                            
          inhaling;                                                                                                             
          (B)  product under  (A) of this paragraph  that is                                                                    
          sold  as  part  of a  disposable  integrated  unit                                                                    
          containing a  power source and delivery  system or                                                                    
          as  a  kit   containing  a  refillable  electronic                                                                    
          smoking system and power source.                                                                                      
                                                                                                                                
     Sec. 23: AS 43.70.075(f),  relating to business license                                                                    
     endorsements for  selling tobacco products,  amends the                                                                    
     existing  requirement  for  signage  to  be  posted  on                                                                    
     vendor  premises,  stating  it being  illegal  to  sell                                                                    
     tobacco or  ESPs to  minors under the  age of  21 (from                                                                    
     19).                                                                                                                       
                                                                                                                                
2:06:04 PM                                                                                                                    
     Sec. 24:  AS 43.70.075(m), relating to  the process for                                                                    
     suspending   business  licensees   holding  a   tobacco                                                                    
     endorsement,  amends  existing   statute  referring  to                                                                    
     tobacco or ESPs  being sold to minors under  the age of                                                                    
     21 (from 19).                                                                                                              
                                                                                                                                
     Sec.  25: AS  43.70.075(t), relating  to penalties  for                                                                    
     licensees  violating  the  T21  laws,  amends  existing                                                                    
     statute  for  lessening  the  penalties  if  a  license                                                                    
     holder has  a written tobacco  or ESPs sales  policy to                                                                    
     include  employees  not  selling  tobacco  or  ESPs  to                                                                    
     minors under the age of 21 (from 19).                                                                                      
                                                                                                                                
     Sec. 26:  AS 43.70.075(w),  relating to the  appeal and                                                                    
     administrative process of  license suspension, conforms                                                                    
     existing law regarding tobacco and  ESP sales, to apply                                                                    
     to sales to minors under the age of 21 (from 19).                                                                          
                                                                                                                                
     Sec.  27: AS  47.12.030(b),  relating  to the  juvenile                                                                    
     justice  system,  and   minors  accused  of  possessing                                                                    
     tobacco, confirms  existing law to apply  to possession                                                                    
     by minors under the age of 21 (from 19).                                                                                   
                                                                                                                                
     Sec. 28: AS 11.76.100(e),  relating to sales exemptions                                                                    
     for  incarcerated  persons,   and  AS  11.76.106(b)(4),                                                                    
     relating  to exemptions  for  ESP  internet sales,  are                                                                    
     both repealed.                                                                                                             
                                                                                                                                
     Sec.   29:  Relates   to   applicability  of   offenses                                                                    
     committed after the effective of the bill.                                                                                 
                                                                                                                                
     Sec. 30: Applies an effective date of January 1, 2022.                                                                     
                                                                                                                                
2:07:39 PM                                                                                                                    
CHAIR COSTELLO asked if there were questions or comments.                                                                       
                                                                                                                                
SENATOR STEVENS,  speaking as  sponsor of  SB 45,  clarified that                                                               
changing the  age to conform to  the federal law would  allow law                                                               
enforcement to enforce the rules.                                                                                               
                                                                                                                                
SENATOR HOLLAND  asked if he  had considered introducing  the age                                                               
restriction  as a  first step  and addressing  the tax  component                                                               
separately. He  noted that  smokers who  have transitioned  to e-                                                               
cigarettes  oppose  the bill,  arguing  that  the tax  will  make                                                               
nicotine cigarettes more affordable than e-cigarettes.                                                                          
                                                                                                                                
2:09:31 PM                                                                                                                    
SENATOR  STEVENS pointed  out  that  there is  no  proof that  e-                                                               
cigarettes  is   effective  in  helping  people   get  away  from                                                               
traditional cigarettes  because they are  still getting a  lot of                                                               
nicotine in e-cigarettes.                                                                                                       
                                                                                                                                
MR. LAMKIN said it is worth  discussing, but he believes that the                                                               
Finance Committee will thoroughly address the tax question.                                                                     
                                                                                                                                
SENATOR STEVENS said his primary  focus is to help children avoid                                                               
addiction to  nicotine. He  pointed out  that fewer  people smoke                                                               
cigarettes  now  because  governments  raised the  taxes  and  he                                                               
believes that the same would  hold true for e-cigarettes. He said                                                               
the  tax  is  important,  but  the  health  of  our  children  is                                                               
paramount.                                                                                                                      
                                                                                                                                
2:13:11 PM                                                                                                                    
SENATOR REVAK  referred to the definition  of "electronic smoking                                                               
product"  in  Section  22  and  asked if  the  phrase  "or  other                                                               
substances to the person inhaling" on  page 11, line 14 makes the                                                               
definition  too broad,  considering the  availability of  medical                                                               
devices and over the counter inhalants.                                                                                         
                                                                                                                                
MR.  LAMKIN  replied  there  are  clear  exemptions  for  medical                                                               
devices and  products that have  gone through  the pharmaceutical                                                               
process and  been approved  by the  FDA. He said  the key  to the                                                               
definition is  that it is  not just the  juice and liquid,  it is                                                               
all the parts that make up the electronic smoking product.                                                                      
                                                                                                                                
SENATOR REVAK said he appreciates that.                                                                                         
                                                                                                                                
2:15:14 PM                                                                                                                    
CHAIR COSTELLO asked if the $300 fine for the seller is per                                                                     
violation per day.                                                                                                              
                                                                                                                                
MR. LAMKIN described the fine as a tool for the state and                                                                       
parents to punish students who make these choices.                                                                              
                                                                                                                                
SENATOR STEVENS clarified that the $300 fine is in current law;                                                                 
SB 45 only changes the age in statute to 21.                                                                                    
                                                                                                                                
CHAIR COSTELLO moved to invited testimony.                                                                                      
                                                                                                                                
2:16:55 PM                                                                                                                    
CHRISTY KNIGHT,  Program Manager, Tobacco Prevention  and Control                                                               
Program,  Division of  Public Health,  Department  of Health  and                                                               
Social  Services (DHSS),  Tobacco Prevention,  Anchorage, Alaska,                                                               
read the following testimony on SB 45 into the record:                                                                          
                                                                                                                                
     For the record, my name is  Christy Knight and I am the                                                                    
     Program  Manager  for  the State  of  Alaska's  Tobacco                                                                    
     Prevention and  Control Program within the  Division of                                                                    
     Public  Health and  will be  speaking on  the topic  of                                                                    
     tobacco and tobacco use by Alaska youth.                                                                                   
                                                                                                                                
     Thank you for  the opportunity today to  talk about the                                                                    
     health harms  of tobacco, including  electronic smoking                                                                    
     products,  as  well as  what  we  know about  effective                                                                    
     strategies to address youth tobacco use.                                                                                   
     Tobacco is  the leading  cause of preventable  death in                                                                    
     Alaska. Each  year, smoking is  linked to  an estimated                                                                    
     700 deaths  in our  state.   We know  that most  of the                                                                    
     tobacco-related deaths  are the result of  an addiction                                                                    
     that starts  in youth.  Nine out  of ten  adult smokers                                                                    
     try  cigarettes before  age 18  years, and  progression                                                                    
     from  occasional  to  daily  smoking  occurs  in  young                                                                    
     adulthood.                                                                                                                 
                                                                                                                                
     Alaska has made great progress  over the past couple of                                                                    
     decades bringing smoking rates  down in both adults and                                                                    
     youth. This progress is threatened  due to the epidemic                                                                    
     of e-cigarettes.   This  is particularly  evident among                                                                    
     youth;  our most  recent  Youth  Risk Behavior  Survey,                                                                    
     YRBS, demonstrate  a dramatic increase of  youth use of                                                                    
     e-cigarettes in Alaska.  As of  2019, 1 out of 4 Alaska                                                                    
     high  school  students  reported   current  use  of  e-                                                                    
     cigarettes,  and almost  half had  ever tried  them. By                                                                    
     contrast,  only  1  in  21   Alaska  adults  use  these                                                                    
     products.                                                                                                                  
                                                                                                                                
2:18:42 PM                                                                                                                    
     E-cigarettes  contain nicotine,  which is  particularly                                                                    
     addictive for  youth and can affect  brain development.                                                                    
     Nicotine  use   during  adolescence  can   disrupt  the                                                                    
     formation  of brain  circuits  that control  attention,                                                                    
     learning and  susceptibility to  addiction. E-cigarette                                                                    
     use  by   youth  has  been  shown   to  increase  their                                                                    
     subsequent use of other tobacco products.                                                                                  
                                                                                                                                
     In  addition  to  nicotine, e-cigarettes  may  contain:                                                                    
     ultrafine particles  that can be inhaled  deep into the                                                                    
     lungs;  flavorants   such  as  diacetyl,  which   is  a                                                                    
     chemical  linked  to  serious  lung  disease;  volatile                                                                    
     organic compounds  such as benzene,  which is  found in                                                                    
     car exhaust; and  heavy metals such as  nickel, tin and                                                                    
     lead.  Short term  e-cigarette use  has  been shown  to                                                                    
     impair   lung   function,    resulting   in   difficult                                                                    
     breathing.    Keep in mind that  e-cigarettes have only                                                                    
     been  sold in  the  US since  2007  and scientists  are                                                                    
     still studying the health effects of e-cigarette use.                                                                      
                                                                                                                                
     The progress we made in  bringing down rates of smoking                                                                    
     among Alaska youth was not an accident.                                                                                    
     The Alaska  Tobacco Prevention and  Control Programand                                                                     
     its many partners statewidehave   taken the rulebook on                                                                    
     how to  reduce smoking  (CDC Best  Practices), tailored                                                                    
     it for  Alaska, and  made sure these  proven strategies                                                                    
     were  put into  effect long  enough to  see an  impact,                                                                    
     including:                                                                                                                 
          •  Supporting    community-based   efforts    to                                                                      
          prevent tobacco use;                                                                                                  
          •  Educating  the   public  and  decision-makers                                                                      
          about  the burden  of  tobacco  use and  effective                                                                    
          strategies to address tobacco use;                                                                                    
          •  Supporting  a  statewide  tobacco  quit  line                                                                      
          that   provides  free,   confidential  help   with                                                                    
          quitting; and                                                                                                         
          •  Collecting,   analyzing,  and   disseminating                                                                      
          statewide   and   community-specific  data   about                                                                    
          tobacco use.                                                                                                          
          Increasing the  price of  tobacco products  is the                                                                    
          single  most effective  way to  reduce consumption                                                                    
          and we've seen it work  in Alaska. Youth and young                                                                    
          adults  are  two to  three  times  more likely  to                                                                    
          respond to  price increases.  Price  increases are                                                                    
          even   more   effective    when   implemented   in                                                                    
          combination with other proven strategies, such as                                                                     
          increasing the minimum legal age.                                                                                     
          The  Institute of  Medicine predicts  that raising                                                                    
          the minimum  age for the sale  of tobacco products                                                                    
          to 21  will over time  reduce the smoking  rate by                                                                    
          about  12%  and  smoking-related  deaths  by  10%.                                                                    
          Nationally, estimated  smoking-caused health costs                                                                    
         and lost productivity totals $19.16 per pack.                                                                          
                                                                                                                                
2:21:22 PM                                                                                                                    
     Senate   Bill  45   includes  both   of  these   proven                                                                    
     approaches  and  creates   additional  protections  for                                                                    
     youth    through   restricting    online   sales    and                                                                    
     implementing age  verification processes  when shipping                                                                    
     or transporting tobacco products in Alaska.                                                                                
     In closing,  I'd like  to stress  how taking  action to                                                                    
     curb the e-cigarette epidemic among  youth now will aid                                                                    
     in the  State's efforts  to prevent  nicotine addiction                                                                    
     and   tobacco-related   chronic  disease   and   death,                                                                    
     significantly reducing associated  healthcare costs and                                                                    
     lost productivity.                                                                                                         
                                                                                                                                
     Thank you  again for  the opportunity  to speak  to you                                                                    
     today.     I  am  available  for   questions  from  the                                                                    
     committee.                                                                                                                 
                                                                                                                                
SENATOR STEVENS  asked if  she agrees  with Dr.  Zink's testimony                                                               
that even  without nicotine, e-cigarette products  present health                                                               
concerns because they can cause inflammation.                                                                                   
                                                                                                                                
MS. KNIGHT replied that e-cigarettes  are still being studied but                                                               
they do  pose health  risks such as  impaired lung  function that                                                               
results in difficulty breathing.                                                                                                
                                                                                                                                
2:23:04 PM                                                                                                                    
JOE DARNELL,  Chief Investigator,  Tobacco Enforcement  and Youth                                                               
Education Program,  Division of Behavioral Health,  Department of                                                               
Health and  Social Services  (DHSS), Anchorage,  Alaska, reported                                                               
that over the last 20 years  the sell rate of tobacco products to                                                               
youth  dropped  from about  36  percent  to 6  percent.  However,                                                               
tobacco use  is increasing with  vaping products. He  pointed out                                                               
that the Philip Morris homepage  talks about their transformation                                                               
to deliver a smoke-free future.                                                                                                 
                                                                                                                                
He  reported that  his office  does  compliance checks,  retailer                                                               
information, and  certifications. He  said the complaints  he has                                                               
heard in  the last year  target the inconsistency with  the state                                                               
law being 19  and the federal Tobacco-21 law being  21. The U. S.                                                               
Food and Drug  Administration (FDA) is actively  enforcing age 21                                                               
for  the sale  of tobacco  products but  the state  only has  the                                                               
authority to enforce age 19, he said.                                                                                           
                                                                                                                                
MR. DARNELL  advised that  some retailers  are not  enforcing the                                                               
age  21 threshold  because  a federal  violation  only elicits  a                                                               
letter from the FDA, but they  do worry about violating the state                                                               
law relating  to age. He  emphasized that  raising the age  to 21                                                               
would help all  retailers because it would align the  law for all                                                               
age  restricted products  - tobacco,  alcohol, and  marijuana. He                                                               
reminded members  that driver's  licenses for Alaskans  under age                                                               
21 are set  up on a vertical platform  so retailers automatically                                                               
know  the person  is a  minor. He  noted that  the state  and FDA                                                               
currently   provide  countdown   calendars   to  help   retailers                                                               
determine age without  having to rely on  expensive software that                                                               
does the same thing.                                                                                                            
                                                                                                                                
MR. DARNELL  related that  his office  had worked  with retailers                                                               
and licensing for the last  several years to correct the behavior                                                               
that half the shops in  Anchorage were selling (tobacco products)                                                               
to  underage  individuals.  Students  now  see  that  smoking  is                                                               
harmful to their health, but they  do not see the risk associated                                                               
with vaping and  e-cigarettes. He opined that raising  the age to                                                               
21 would help.                                                                                                                  
                                                                                                                                
2:28:00 PM                                                                                                                    
SENATOR  STEVENS  asked how  many  investigators  he had  in  the                                                               
department.                                                                                                                     
                                                                                                                                
MR. DARNESS answered that there are two in addition to himself.                                                                 
                                                                                                                                
SENATOR STEVENS  thanked him  for improving  society with  such a                                                               
small force.                                                                                                                    
                                                                                                                                
2:28:37 PM                                                                                                                    
DR.   KERSTEN  JOHNSON,   PhD;  Senior   Director  of   Secondary                                                               
Education,   Anchorage   School  District,   Anchorage,   Alaska,                                                               
confirmed previous  testimony about the prevalence  of vaping and                                                               
e-cigarette  use among  Alaskan  youth and  in  the schools.  She                                                               
provided her background of 20  plus years in education in Alaska.                                                               
She  related her  experience working  with students  experiencing                                                               
addiction from vaping  and parents struggling to  keep their kids                                                               
from vaping  and using e-cigarettes.  She acknowledged  the broad                                                               
spectrum  of usage  across the  municipality  amongst middle  and                                                               
high school students.                                                                                                           
                                                                                                                                
DR. JOHNSON said she primarily  wanted to emphasize the explosive                                                               
growth of this  unhealthy behavior in the past 10  years. It used                                                               
to  be limited  to high  school students  but it  has crept  into                                                               
middle and elementary  schools, some as young as  third grade. E-                                                               
cigarette  use and  vaping is  becoming a  huge health  issue for                                                               
youth  in  the  state  as   well  as  a  distraction  in  school.                                                               
Furthermore, students who are thinking  about their next vape are                                                               
not concentrated  on learning. Schools have  increased discipline                                                               
problems that take resources away from student learning.                                                                        
                                                                                                                                
DR. JOHNSON  agreed with Dr. Zink  that about 26 percent  of high                                                               
school students engage  in this behavior and  many parents either                                                               
do  not know  how to  help their  child or  do not  realize their                                                               
child has  an addiction  until it has  become a  very complicated                                                               
issue. She  advised that she  shared some pictures  to illustrate                                                               
how difficult  it can  be to identify  some e-products.  They can                                                               
look like  ordinary items.  She cited the  example of  the amulet                                                               
vape  watch that  looks  like any  other  Apple watch.  Officials                                                               
confiscated that watch at one  of the Anchorage high schools, but                                                               
it  is  just  one  of   many  disguised  and  concealable  vaping                                                               
products.                                                                                                                       
                                                                                                                                
DR. JOHNSON urged the committee to  pass SB 45 to provide schools                                                               
additional tools  to combat this  unhealthy behavior  so students                                                               
can focus on learning.                                                                                                          
                                                                                                                                
2:35:19 PM                                                                                                                    
CHAIR COSTELLO thanked her for providing the school perspective.                                                                
                                                                                                                                
SENATOR STEVENS thanked her for  her testimony and the photos. He                                                               
shared his experience  from several years ago  when teachers told                                                               
him how  difficult it is  to eliminate vaping in  schools because                                                               
it is  so easy to  disguise. He  asked what kind  of intervention                                                               
teachers could provide for students.                                                                                            
                                                                                                                                
DR.  JOHNSON   replied  that   Anchorage  schools   have  started                                                               
educating  elementary  through  high school  students  about  the                                                               
addictive  nature  of vaping.  The  idea  is  to start  early  to                                                               
educate students  before they become  addicted. The  district has                                                               
rewritten  school board  policies  to include  language about  e-                                                               
cigarettes and  vaping and the  policies are included  in student                                                               
handbooks. Furthermore, specific penalties  apply to students who                                                               
engage in vaping behavior while  in school. She advised that this                                                               
had become  such a large  issue that Anchorage schools  track the                                                               
cases of  student usage in  a separate databank.  She highlighted                                                               
that the  vaping rates in  the first three-quarters of  the 2019-                                                               
2020  school  year were  nine  times  higher than  tobacco  usage                                                               
district wide.                                                                                                                  
                                                                                                                                
2:39:06 PM                                                                                                                    
EMILY  NENON,  Alaska  Government  Relations  Director,  American                                                               
Cancer Society  Cancer Action Network, Anchorage,  Alaska, stated                                                               
appreciation  that the  committee  was looking  in  depth at  the                                                               
tobacco statutes  because the market  had changed since  the last                                                               
major rework of  the tobacco tax code in  2004. E-cigarettes were                                                               
not on  the U.S. market  until 2006 or  2007. She echoed,  from a                                                               
health agency perspective, the health  effects articulated in the                                                               
previous testimony.                                                                                                             
                                                                                                                                
MS. NENON  informed the  committee that  none of  the e-cigarette                                                               
manufacturers  had even  applied to  be a  cessation product  and                                                               
they are not  regulated as such. She said there  are FDA approved                                                               
cessation products  and Alaska  has a strong  quit line,  but the                                                               
best way to quit smoking is to never  start. That is why it is so                                                               
important  to  focus on  youth  and  keep  them from  starting  a                                                               
lifetime of addiction.                                                                                                          
                                                                                                                                
She  highlighted that  Anchorage removed  the criminal  penalties                                                               
for kids caught using tobacco  and vaping products because a fine                                                               
is not the  way to help kids  who are addicted to  a product. She                                                               
said  she was  interested  in looking  at the  best  way to  give                                                               
school  districts  the tools  they  need  for student  compliance                                                               
while also giving  students the resources they need  to deal with                                                               
addiction.  She reported  that the  tobacco prevention  community                                                               
grantees  are working  with school  districts on  alternatives to                                                               
suspension and programs  that deal with the  problem students are                                                               
facing. The  onus should be on  the tobacco industry and  not the                                                               
kid who became  addicted. She said the  American Lung Association                                                               
and  the American  Heart Association  joined the  American Cancer                                                               
Society Cancer  Action Network to support  removing the penalties                                                               
and decriminalizing the behavior.                                                                                               
                                                                                                                                
MS. NENON closed by reminded members  that taxes are proven to be                                                               
at  the top  of effective  strategies for  reducing youth  use of                                                               
tobacco products.                                                                                                               
                                                                                                                                
2:45:17 PM                                                                                                                    
CHAIR COSTELLO thanked her for the advocacy.                                                                                    
                                                                                                                                
SENATOR  STEVENS expressed  appreciation  that she  said that  e-                                                               
cigarettes are  not a  cessation product. He  asked what  some of                                                               
the  approved cessation  products  are because  many people  have                                                               
contacted his  office to say  e-cigarettes are the only  way they                                                               
stopped smoking.                                                                                                                
                                                                                                                                
MS. NENON  said there  are approved  products that  are medically                                                               
safe. These include nicotine patches,  nicotine gum and lozenges,                                                               
as well as  prescription drugs. More information  is available at                                                               
1-800 quit  now; cessation counselors  help people set up  a quit                                                               
plan and  check in regularly  to provide support. She  noted that                                                               
she  encourages  people by  telling  them  that their  chance  of                                                               
success improves with every attempt to quit.                                                                                    
                                                                                                                                
MS. NENON concluded her comments  by telling the members that the                                                               
combustive cigarette has over 3,000  chemical compounds, 69-70 of                                                               
which  are known  human carcinogens.  Just because  a product  is                                                               
less harmful  than a  combustive cigarette, does  not mean  it is                                                               
safe. That is why she encourages  people who are ready to quit to                                                               
call 1 800 quit now or use FDA approved cessation products.                                                                     
                                                                                                                                
2:49:13 PM                                                                                                                    
DR.  GEORGE STEWART,  Retired  Pulmonologist, Anchorage,  Alaska,                                                               
stated that SB 45 is a very  strong way to help Alaskan teens. He                                                               
stressed the  importance of increasing  the age to 21  and taxing                                                               
e-cigarettes  like tobacco.  He reminded  members that  cigarette                                                               
use declined  when the  taxes went up.  He said  e-cigarettes are                                                               
clearly toxic  and increasing the  age to 21 will  hopefully move                                                               
the issue out  of the schools. He reported that  a JUUL cartridge                                                               
has the same amount of nicotine  as an entire pack of cigarettes.                                                               
They should  not be available  to kids,  he said. He  agreed with                                                               
Mr. Darnell  that anyone who  purchases e-products  online should                                                               
be  21  and  be  required  to present  proof  upon  delivery.  He                                                               
described a publication from the  University of Rochester Medical                                                               
Center that  talks about  the increased risk  of COVID  in people                                                               
using e-cigarettes. He quoted, "Droplets  of the virus can escape                                                               
through  the e-cigarette  aerosol or  individuals may  spread the                                                               
infection  through saliva  when  they share  vaping devices."  He                                                               
urged  the  committee to  prevent  anyone  younger that  21  from                                                               
obtaining  e-cigarettes.  He said  kids  who  smoke or  vape  are                                                               
getting respiratory diseases because nicotine  is just one of the                                                               
toxins they are inhaling.                                                                                                       
                                                                                                                                
DR. STEWART  strongly encouraged the legislature  and governor to                                                               
pass SB 45  to help get kids  safer. He said he  had been working                                                               
to limit  the use  of tobacco  for 40  years. Several  years ago,                                                               
Alaska workplaces  became smoke free  and now Alaska needs  to be                                                               
free of e-cigarettes for anyone younger than 21 years of age.                                                                   
                                                                                                                                
CHAIR COSTELLO thanked him for the testimony and work in this                                                                   
area.                                                                                                                           
                                                                                                                                
SENATOR STEVENS thanked him for his years of service and for                                                                    
highlighting the increased risk of COVID for young people who                                                                   
share e-devices.                                                                                                                
                                                                                                                                
CHAIR COSTELLO held SB 45 in committee for future consideration.                                                                

Document Name Date/Time Subjects
SB 45 v. B Sponsor Statement.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 v. B.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 v. B Sectional Analysis.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 v. B Fiscal Note DCCED.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 v. B Fiscal Note DOR.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 v. B Fiscal Note DHSS.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 PowerPoint.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_Public Health Law Center.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_The Verge.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_E-Cig Product Packaging.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_Youth Access to E-Cig.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_E-Cig Tax.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_Video Links E-Cig.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Research_Examples of Confiscated.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Opposition NATO.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Opposition Alex McDonald.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Opposition Americans for Tax Reform.pdf SL&C 2/19/2021 1:30:00 PM
SB 45
SB 45 Opposition Jessi Walton.pdf SL&C 2/19/2021 1:30:00 PM
SB 45