Legislature(2021 - 2022)BELTZ 105 (TSBldg)

03/01/2021 01:30 PM Senate LABOR & COMMERCE

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Audio Topic
01:30:23 PM Start
01:30:58 PM SB45
03:04:18 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.                                                                        
                                                                                                                                
1:30:58 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."                                                                                               
                                                                                                                                
She   advised  that   public  testimony   would  follow   invited                                                               
testimony.  She  listed  the   individuals  available  to  answer                                                               
questions.                                                                                                                      
                                                                                                                                
1:32:13 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:33:38 PM                                                                                                                    
CHAIR COSTELLO reconvened the meeting.                                                                                          
                                                                                                                                
1:33:59 PM                                                                                                                    
DR. MELINDA  RATHKOPF, MD, Medical Director,  Allergy, Asthma and                                                               
Immunology  Center   of  Alaska,   Anchorage,  Alaska   read  the                                                               
following supporting testimony on SB 45 into the record:                                                                        
                                                                                                                                
     Good afternoon  Chairwoman Costello and members  of the                                                                    
     committee.  My  name is Dr.  Melinda Rathkopf and  I am                                                                    
     the  medical  director  of   the  Allergy,  Asthma  and                                                                    
     Immunology Center  of Alaska.  I am  board certified in                                                                    
     Allergy/Immunology  and Pediatrics.   I  am here  today                                                                    
     representing the AK chapter of  the American Academy of                                                                    
     Pediatrics  and the  AK State  Medical Association.   I                                                                    
     appreciate  the  opportunity  to provide  testimony  in                                                                    
     support of Senate Bill 45.                                                                                                 
                                                                                                                                
     I have  been a practicing  physician for over  20 years                                                                    
     and a  very strong advocate for  tobacco prevention.  I                                                                    
     grew up  in the  deep South  and tobacco  was a  way of                                                                    
     life.  My  parents smoked and unfortunately  I buried a                                                                    
     parent due  to lung  cancer.  My father's  wedding gift                                                                    
     to   me  was   to   quit   smoking;  unfortunately   it                                                                    
     contributed to his  death also.  I raised  my two girls                                                                    
     understanding  the  dangers  of  tobacco.   Imagine  my                                                                    
     disbelief when  I walked to  my high  school daughter's                                                                    
     room and  found her and  her friends vaping.   Here was                                                                    
     my  child,   who  would  never   think  of   smoking  a                                                                    
     cigarette,  holding an  e-cigarette.  Unfortunately  e-                                                                    
     cigarettes are  incredibly appealing  to our  youth and                                                                    
     since 2014  are the most popular  nicotine product used                                                                    
     by teens.  We had made  steady progress in reducing the                                                                    
     smoking rate in  AK but now e-cigs  is threatening that                                                                    
     progress.  It  was introduced as a  safe alternative to                                                                    
     smoking   and   a   tool   to   even   quit   smoking.                                                                     
     Unfortunately  this  has not  turned  out  to be  true,                                                                    
     evidence does not support  this claim.  e-cigarette use                                                                    
     itself  can lead  to lung  cancer, emphysema  and heart                                                                    
     attacks.   And  what  it  is  doing  to  our  youth  is                                                                    
     alarming.                                                                                                                  
                                                                                                                                
1:35:39 PM                                                                                                                    
     Current E-cigarette  use by  high school  students MORE                                                                    
     THAN DOUBLED between 2017 to  2019, from 11.7% to 27.5%                                                                    
     and  even more  alarming,  current  E-cigarette use  by                                                                    
     middle school  students MORE THAN TRIPLED  between 2017                                                                    
     to 2019, from 3.3% to 10.5%.   In 2017 15.7% of AK high                                                                    
     school  students  reported having  used  e-cigarettes.                                                                     
     This climbed to 26.1% in 2019, just 2 years.                                                                               
                                                                                                                                
     We  know  that  kids  that use  e-cigarettes  are  more                                                                    
     likely to use traditional  cigarettes in the future and                                                                    
     that 95% of adult  smokers today started smoking before                                                                    
     the age  of 21.  The  teenage and young adult  brain is                                                                    
     still developing and when  exposed to nicotine, whether                                                                    
     in an  e-cigarette or  regular cigarette,  the pathways                                                                    
     that  lead  to  addiction are  altered.   Addiction  to                                                                    
     nicotine  is   quicker  and  quitting  is   harder  for                                                                    
     teenagers.   This also  leads  to an  increase in  mood                                                                    
     disorders, attention  difficulties and  increases their                                                                    
     risk  of  addiction  to   other  substances.   Even  in                                                                    
     adults,  e-cigarette use  is highest  among 18-24  year                                                                    
     olds, the young adult.                                                                                                     
                                                                                                                                
     Fortunately  we  have  ways  to  reduce  tobacco  use.                                                                     
     Raising  the purchase  age to  21 is  a very  important                                                                    
     part of this plan.  In  2015, the Institute of Medicine                                                                    
     (now the  National Academy of Medicine)  concluded that                                                                    
     raising  the  minimum  legal   sales  age  for  tobacco                                                                    
     products  nationwide would  reduce tobacco  initiation,                                                                    
     particularly among  adolescents aged 15 to  17, improve                                                                    
     health across  the lifespan, and  save lives;  and that                                                                    
     raising  the  minimum  legal   sales  age  for  tobacco                                                                    
     products nationwide to  21 would, over time,  lead to a                                                                    
     12  percent  decrease   in  smoking  prevalence,  would                                                                    
     result in 223,000 fewer  premature deaths, 50,000 fewer                                                                    
     deaths from  lung cancer, and  4.2 million  fewer years                                                                    
     of life lost for those  born between 2000 and 2019, and                                                                    
     would result  in near  immediate reductions  in preterm                                                                    
     birth,  low  birth  weight,  and  sudden  infant  death                                                                    
     syndrome.                                                                                                                  
                                                                                                                                
1:37:32 PM                                                                                                                    
     Three-quarters  of adults  support raising  the minimum                                                                    
     legal sales  age for tobacco products  to 21, including                                                                    
     seven out of ten adults who smoke.                                                                                         
                                                                                                                                
     In short, we  have a duty to protect  the future health                                                                    
     of our teens and young  adults.  Passing Senate Bill 45                                                                    
     is an  important step  to limiting  adolescents' access                                                                    
     to   these  products   in  our   state.   We   have  an                                                                    
     opportunity to make a lasting impact here.                                                                                 
                                                                                                                                
     Thank  you  for your  time  today  and allowing  me  to                                                                    
     speak.                                                                                                                     
                                                                                                                                
CHAIR COSTELLO asked if there were questions.                                                                                   
                                                                                                                                
1:37:58 PM                                                                                                                    
SENATOR HOLLAND  asked if she had  a stand on the  tax portion of                                                               
the bill. He related that  his constituents' concern is that they                                                               
have used e-cigarettes  to stop smoking tobacco  and they believe                                                               
a tax would make it more difficult to use these products.                                                                       
                                                                                                                                
DR. RATHKOPF  replied she  believes that  the benefit  of raising                                                               
the  taxes  far outweighs  the  risk  because, despite  anecdotal                                                               
evidence,  the  data  does  not show  that  e-cigarettes  are  an                                                               
effective cessation device. She  suggested that these people look                                                               
at other nicotine replacement options and cessation techniques.                                                                 
                                                                                                                                
1:39:40 PM                                                                                                                    
At ease                                                                                                                         
                                                                                                                                
1:41:20 PM                                                                                                                    
CHAIR COSTELLO reconvened  the meeting and advised  that the next                                                               
testifier was invited to provide testimony on SB 45.                                                                            
                                                                                                                                
1:41:57 PM                                                                                                                    
MICHELLE KETCHUM,  representing self, Anchorage,  Alaska, related                                                               
that she  received a call  from her daughter's school  asking for                                                               
permission  to call  911 because  her daughter  was hallucinating                                                               
and then passed out. She  later learned that her daughter briefly                                                               
stopped  breathing and  the school  nurse did  chest compressions                                                               
until the  paramedics arrived. The  paramedics checked  her vital                                                               
signs and  determined that  she was  okay and  that there  was no                                                               
harm in sending her home.  She said the paramedics indicated that                                                               
they see this frequently.                                                                                                       
                                                                                                                                
MS.  KETCHUM related  the back-story  on her  daughter, including                                                               
that she was experiencing  post-traumatic stress disorder (PTSD).                                                               
She  was admitted  to the  hospital  in October  2020 on  suicide                                                               
watch  and when  she  was  released in  November,  she asked  her                                                               
brother  for  a  Dab  Pen,  which is  a  way  to  take  synthetic                                                               
marijuana. He brought one home the  next night and gave it to her                                                               
the next morning  before school. Ms. Ketchum said  her son smoked                                                               
some and her daughter apparently took  a large hit, which is what                                                               
caused her to stop breathing.                                                                                                   
                                                                                                                                
MS.  KETCHUM said  this was  the  second time  her daughter  used                                                               
marijuana and what led to it  was nicotine. When she was released                                                               
from  the  hospital,  she  started   vaping  and  quickly  became                                                               
addicted by  using Puff Bars.  She explained that a  regular Puff                                                               
Bar  contains  400  puffs,  which  is equivalent  to  a  pack  of                                                               
cigarettes  and a  Puff Bar  Plus  contains 800  puffs, which  is                                                               
equivalent to two  packs of cigarettes. Her daughter  was able to                                                               
get these readily,  particularly via Snapchat. She  was trying to                                                               
quit and  was told that  it was  better to use  marijuana because                                                               
there were fewer bad side effects. She continued:                                                                               
                                                                                                                                
     This  is  an  intelligent  girl who  is  a  straight  A                                                                    
     student who is kind-hearted and  hard working. And in a                                                                    
     couple  of months  was severely  addicted to  nicotine,                                                                    
     which is readily available.                                                                                                
                                                                                                                                
     Part of  the problem  with this  vaping, is  that these                                                                    
     vape things  are undetectable. It  was happening  in my                                                                    
     home, with  doors open.  You can't  smell it  you can't                                                                    
     see it.  It is very  - it's indiscrete. Kids  are doing                                                                    
     it in  the bathrooms  at schools. They  can hide  it in                                                                    
     their  sleeves and  do it  in classrooms.  ... And  the                                                                    
     nicotine  in those  devices is  so  powerful and  those                                                                    
     kids  get hooked  very, very  quickly.  And they  can't                                                                    
     stop. It is very difficult for them to stop.                                                                               
                                                                                                                                
MS. KETCHUM  emphasized that companies that  sell vaping products                                                               
specifically market to young children  to get this new generation                                                               
addicted  to nicotine.  She  maintained that  people  who do  not                                                               
believe that vaping is a stepping-stone are ignorant.                                                                           
                                                                                                                                
1:49:41 PM                                                                                                                    
SENATOR GRAY-JACKSON asked how her daughter was doing.                                                                          
                                                                                                                                
MS. KETCHUM replied  she is not using nicotine  or marijuana, but                                                               
there  were  consequences  for her  behavior.  She  is  receiving                                                               
counseling and will  be allowed to attend school  online, but she                                                               
will  not be  able to  attend  the graduation  ceremony with  her                                                               
class. She said her kids believe  that half the high school has a                                                               
problem  with these  substances  and 70  percent  of juniors  and                                                               
seniors have a  problem. "Even when you have kids  you don't know                                                               
how prevalent this is," she said.                                                                                               
                                                                                                                                
CHAIR COSTELLO  asked her  to describe why  these devices  are so                                                               
difficult to detect, particularly the way they are packaged.                                                                    
                                                                                                                                
MS. KETCHUM said a regular Puff Bar  looks like a USB pen and the                                                               
Puff  Bar  Plus  is  larger,   brightly  colored  and  advertises                                                               
friendly flavors that  masks the taste of nicotine.  She said you                                                               
would not know  what it is by  looking at it and  the vape leaves                                                               
no telltale sign.  She added that it  is particularly frustrating                                                               
that  federal  legislation  does  not  address  these  disposable                                                               
products.  She suggested  the committee  check with  other states                                                               
that have  passed legislation and noted  that truthinitiative.org                                                               
is a good resource.                                                                                                             
                                                                                                                                
1:56:02 PM                                                                                                                    
SENATOR  STEVENS asked  if she  believes that  raising the  price                                                               
will result in fewer kids purchasing these products.                                                                            
                                                                                                                                
MS. KETCHUM said  she did not believe so and  she did not believe                                                               
that taxation was the right  approach either. If the products are                                                               
taxed, she  suggested using that  money to enforce  existing laws                                                               
and  to start  programs in  schools to  help kids  find a  way to                                                               
break their addiction.                                                                                                          
                                                                                                                                
SENATOR STEVENS questioned whether raising the age would help.                                                                  
                                                                                                                                
MS.  KETCHUM  said  raising  the  age is  a  better  option  than                                                               
taxation,  but it's  the manufacturers/suppliers  that should  be                                                               
targeted. "I'm  all about people  having businesses and  making a                                                               
living, but we have to protect our children," she said.                                                                         
                                                                                                                                
CHAIR COSTELLO thanked her for the testimony.                                                                                   
                                                                                                                                
MS. KETCHUM  thanked the  members for  their work  and reiterated                                                               
that SB 45 needs to do  more to address marketing and advertising                                                               
vaping products.                                                                                                                
                                                                                                                                
2:00:26 PM                                                                                                                    
CHAIR COSTELLO opened public testimony on SB 45.                                                                                
                                                                                                                                
2:00:38 PM                                                                                                                    
KATHY STEWART,  representing self,  Anchorage, Alaska,  said that                                                               
as  a  nurse,  mother,  grandmother, and  former  smoker  she  is                                                               
concerned about  how e-cigarette  use is  affecting youth  in the                                                               
state and country.  These products are not  an approved cessation                                                               
device and in  addition to nicotine, they  contain chemicals like                                                               
propylene glycol  and formaldehyde that  are known to  be harmful                                                               
to the  lungs. She said  the laws  to protect youth  from tobacco                                                               
related health hazards helped reduce  cigarette use and now it is                                                               
necessary to  pass legislation to  protect them  from unregulated                                                               
tobacco products like e-cigarettes.                                                                                             
                                                                                                                                
2:03:28 PM                                                                                                                    
ALEX MCDONALD, representing self,  Fairbanks, Alaska, shared that                                                               
he has not smoked since 2013  and he attributes it to e-cigarette                                                               
products.  He stated  opposition to  SB 45  because portions  are                                                               
already outdated.  He highlighted  that Congress  further limited                                                               
online  cigarette sales  and included  vaping products  so FedEx,                                                               
UPS, and  DHL will not  ship vaping  products and he  wasn't sure                                                               
that vape  shops would  be able  to get  these products.  He also                                                               
advised that  distribution of Puff  Bars in the U.S.  ceased last                                                               
fall so  they won't be  marketed much longer. He  maintained that                                                               
many of the  e-cigarette sources that youth rely  on are becoming                                                               
more regulated so  it will be more like  shipping firearms, which                                                               
is  business-to-business  or  license-to-license. He  said  these                                                               
changes will limit access, particularly in Bush communities.                                                                    
                                                                                                                                
MR. MCDONALD  cited Public Health England  that said e-cigarettes                                                               
are "95 percent  safer than smoking cigarettes  at a conservative                                                               
estimate,"  the FDA  that  "recognized them  as  a modified  risk                                                               
product," and former head of  the FDA Dr. Gottlieb who identified                                                               
cigarettes  as the  riskiest products  and vape  products as  low                                                               
risk along with other nicotine replacement therapies.                                                                           
MR. MCDONALD credited e-cigarettes as  the reason that he and his                                                               
entire  family  quit  smoking.  He noted  that  he  submitted  an                                                               
article from the New England  Journal of Medicine that said vapor                                                               
products  are "two  to three  times more  effective in  cessation                                                               
than  traditional nicotine  therapy." Furthermore,  Public Health                                                               
England recently released  a report that described  vaping as the                                                               
most commonly  used method  for smokers to  quit smoking  and had                                                               
the highest  success rates.  He pointed  out that,  "Just because                                                               
the FDA doesn't recognize it  as a cessation product doesn't mean                                                               
that people aren't using it as one. I did. I know it works."                                                                    
                                                                                                                                
MR.  MCDONALD  posited  that taxing  these  products  will  cause                                                               
people to  resume smoking,  and raising  the age  will needlessly                                                               
make young  adults criminals. He  characterized the bill  as more                                                               
likely to do harm than good.                                                                                                    
                                                                                                                                
2:07:17 PM                                                                                                                    
ALYSSA  KEILL,  representing  self, Fairbanks,  Alaska,  reported                                                               
that  she  is  a  part-time   swim  coach  for  about  80  middle                                                               
schoolers. When she asks them  about vaping and whether they know                                                               
kids who  vape, they are  uncertain about why they  shouldn't try                                                               
it but always say they know  students who have tried or currently                                                               
vape.  She  suggested that  there  is  confusion because  of  the                                                               
misleading message  that vaping is  safer than smoking,  but they                                                               
do understand nicotine addiction.                                                                                               
                                                                                                                                
She said  she is interested in  SB 45 because it  recognizes that                                                               
vaping products  are nicotine products  and treats them  as such.                                                               
She  characterized increasing  the  age for  purchase  to 21  and                                                               
taxing e-cigarettes at  the level as other tobacco  products as a                                                               
step in the right direction.                                                                                                    
                                                                                                                                
2:09:17 PM                                                                                                                    
SARAH EATON,  representing self,  Wasilla, Alaska,  reported that                                                               
she  started smoking  at  age 15  and she  bought  them from  the                                                               
corner store  or got an adult  to make the purchase.  She posited                                                               
that kids  today find  it similarly easy  to get  these products,                                                               
regardless of the age barrier or the tax.                                                                                       
                                                                                                                                
She said  vaping saved her  life. This  is evidenced by  the fact                                                               
that doctors  today can no  longer find either emphysema  or COPD                                                               
on her  lungs and she  had both nine  years ago when  she started                                                               
vaping. "They are healed from  what combustible cigarettes did to                                                               
me."                                                                                                                            
                                                                                                                                
MS. EATON said she opposes just  the tax portion of SB 45 because                                                               
it will  make the vaping  product she uses  unaffordable. Wasilla                                                               
already has  a 55 percent  tax on  vaping products and  the added                                                               
tax  will  bring  the  total  to 130  percent.  She  agreed  that                                                               
children  should not  have  access to  vaping  products, but  she                                                               
believes it  falls to parents  to educate their children  to keep                                                               
them from putting anything but  air in their lungs. She concluded                                                               
her comments  asking the committee  to look more closely  at what                                                               
the federal government has done to regulate vaping products.                                                                    
                                                                                                                                
2:14:09 PM                                                                                                                    
SHAWN  D'SYLVA,  Co-Founder,  Clear the  Air  Alaska,  Anchorage,                                                               
Alaska, stated  that he  owns three vaping  stores in  Alaska and                                                               
his  goal  is to  eliminate  the  use of  combustible  cigarettes                                                               
wherever he is located. He  highlighted that he has helped almost                                                               
80,000 adults stop smoking in  the last eight years. He confirmed                                                               
earlier testimony  that the additional  75 percent  wholesale tax                                                               
will translate to  a 130 percent wholesale tax  in both Anchorage                                                               
and Wasilla and highlighted that  it will not affect young people                                                               
who  are  buying  these  products  on  Snapchat,  not  legitimate                                                               
stores.                                                                                                                         
                                                                                                                                
He  advised that  e-liquid  is the  primary  component in  vaping                                                               
products  and it  has just  four  ingredients: propylene  glycol,                                                               
vegetable  glycerin, nicotine,  and  flavoring.  Anybody who  has                                                               
smoked understands that  tobacco does not taste  good. They would                                                               
prefer to stop and  on way to do that it  to use vaping products.                                                               
He said UK  Public Health annually updates a study  on vaping and                                                               
last week  said that vaping  is twice  as effective as  any other                                                               
cessation  method.   Their  goal  is  to   eliminate  combustible                                                               
cigarettes by 2030.                                                                                                             
                                                                                                                                
MR. D'SYLVA acknowledged  that vaping is not  perfectly safe, but                                                               
posited  that   it  is  a   safer  alternative  that   should  be                                                               
encouraged.  He said  it  is unfortunate  that  kids are  getting                                                               
vaping products but  it is the parents'  responsibility to ensure                                                               
their kids  are not doing that.  He also disputed the  claim that                                                               
vaping is  a gateway  to smoking,  pointing out  that combustible                                                               
cigarette usage  in the U.S. is  the lowest it has  ever been. He                                                               
concluded his  comments restating that he  absolutely opposes the                                                               
taxation provision in SB 45.                                                                                                    
                                                                                                                                
2:18:37 PM                                                                                                                    
CHARLES EDGE,  representing self,  Fairbanks, Alaska  stated that                                                               
he opposes portions of SB 45  and increasing the age threshold in                                                               
particular. He related  that he returned to Alaska  after he left                                                               
military  service  because some  of  the  laws in  Virginia  were                                                               
draconian,  and  it  breaks  his  heart to  see  that  Alaska  is                                                               
considering  similar  legislation.  He said  he  understands  the                                                               
desire to keep  kids from using vaping products,  but if somebody                                                               
is old enough to stand trial as  an adult and old enough to serve                                                               
in  the military,  he cannot  fathom not  allowing them  to "take                                                               
advantage of being  an actual adult." He  attested, from personal                                                               
experience, that vaping is a lot better than smoking or dipping.                                                                
                                                                                                                                
2:21:58 PM                                                                                                                    
JAMIE  MORGAN,  American  Heart  Association  (AHA),  Sacramento,                                                               
California, said the data shows  that Alaska has made progress in                                                               
reducing cigarette  use, particularly  among youth.  However, the                                                               
increased  use  of  e-cigarettes, particularly  among  youth,  is                                                               
reversing that progress.  She said the tobacco  industry has long                                                               
targeted  Alaska's youth  and e-cigarette  use  is an  increasing                                                               
crisis among teens. Further, the  National Academies of Sciences,                                                               
Engineering, and  Medicine have  cited substantial  evidence that                                                               
youth  or  young adults  who  use  e-cigarettes are  increasingly                                                               
likely to  use traditional cigarettes. They  are falsely marketed                                                               
as a  safe alternative  and youth are  targeted. To  address this                                                               
epidemic  among  teens, the  AHA  supports  public policies  like                                                               
those in  SB 45 that  regulate and tax e-cigarettes  like tobacco                                                               
and raise the  legal age to sell or purchase  to 21. AHA believes                                                               
that  those who  sell tobacco  to  minors and  the industry  that                                                               
aggressively  markets  to young  people  and  profits from  their                                                               
ensuing addiction should be held accountable.                                                                                   
                                                                                                                                
MS.  MORGAN  said the  data  shows  that  increasing the  tax  on                                                               
tobacco  products and  e-cigarettes is  a win-win.  Significantly                                                               
increasing the tax  results in fewer kids who start  to smoke and                                                               
more adults who quit. She  offered to provide more information on                                                               
the British study.                                                                                                              
                                                                                                                                
CHAIR COSTELLO asked her to send the testimony to her office.                                                                   
                                                                                                                                
2:24:36 PM                                                                                                                    
RYAN TUNSETH,  representing self, Kenai, Alaska,  said he opposes                                                               
SB 45  because federal law  already addresses many of  the online                                                               
sales and implementing  the bill will just  make people criminals                                                               
when  they  have an  addiction.  He  agreed with  Mr.  McDonald's                                                               
comments  more   than  the  comments  from   the  American  Heart                                                               
Association and  said he would  prefer to see the  committee work                                                               
on things that are more important.                                                                                              
                                                                                                                                
2:26:31 PM                                                                                                                    
JOHN BERRIER,  Senior Director of State  Government Affairs, JUUL                                                               
Labs, Sacramento,  California, stated  that JUUL Labs  is focused                                                               
on  building constructive  relationships with  regulators, policy                                                               
makers,  and other  stakeholders  to earn  trust  and reduce  the                                                               
potential harm for  adult smokers. JUUL looks  forward to working                                                               
with  stakeholders in  Alaska to  achieve full  implementation of                                                               
Tobacco 21, he said.                                                                                                            
                                                                                                                                
2:27:24 PM                                                                                                                    
MR. BERRIER highlighted that underage  use of e-cigarettes in the                                                               
U.S. is  trending down.  The 2020  National Youth  Tobacco Survey                                                               
found  that  past  30-day  e-cigarette   use  among  high  school                                                               
students decreased almost 30 percent  from 2019. He also reported                                                               
that the  Monitoring the  Future 2020  Survey Results  found that                                                               
the previous  rise in underage  e-cigarette use either  slowed or                                                               
reversed. He  said JUUL  fully supports the  age provision  in SB
45.                                                                                                                             
                                                                                                                                
In  addition to  the commitment  to combat  underage use  through                                                               
evidence-based  intervention  like  T   21,  he  said  JUUL  also                                                               
supports robust regulations weighted  in favor of harm reduction.                                                               
Thus, the  company is concerned that  the tax provision of  SB 45                                                               
because adult smokers may continue  smoking or former smokers may                                                               
return to  combustible cigarettes. He  pointed to a study  in the                                                               
Journal  of  Risk and  Uncertainty  that  estimated that  the  95                                                               
percent  wholesale tax  on vape  products  in Minnesota  deterred                                                               
32,000 adult  smokers in the  state from transitioning  away from                                                               
cigarettes. He  suggested that Alaska could  see similar results.                                                               
Furthermore, some  adult consumers may seek  out cheaper products                                                               
through illicit  markets that predominantly occur  outside of tax                                                               
regulation. This  could cause responsible retailers  in Alaska to                                                               
lose business and reduce expected revenue to the state, he said.                                                                
                                                                                                                                
MR.  BERRIER summarized  that the  company  supports T  21 as  an                                                               
effective  policy   to  combat  underage  use   of  tobacco/vapor                                                               
products,   but  does   not  support   the   tax  provision   and                                                               
respectfully requests its removal. He  offered to engage with the                                                               
committee and  other stakeholders  to develop a  thoughtful risk-                                                               
proportionate  tax   framework  for  all  tobacco   and  nicotine                                                               
products.                                                                                                                       
                                                                                                                                
CHAIR  COSTELLO asked  for JUUL's  national marketing  budget and                                                               
questioned  why the  company designs  its products  to look  like                                                               
things typically used in the classroom.                                                                                         
                                                                                                                                
MR. BERRIER answered  that the company stopped  all marketing and                                                               
advertising in  fall 2019  as part of  their PMTA  submission and                                                               
intends to submit a plan to  the FDA that targets adult consumers                                                               
of cigarettes.                                                                                                                  
                                                                                                                                
In  response  to the  second  question,  he maintained  that  the                                                               
products were designed to be  most effective for adult smokers to                                                               
transition off the products.                                                                                                    
                                                                                                                                
CHAIR COSTELLO asked what the acronym "PMTA" stands for.                                                                        
                                                                                                                                
MR.  BERRIER   replied  it  stands  for   the  premarket  tobacco                                                               
application. The FDA  required all companies that  make vapor and                                                               
other nicotine  products to submit their  applications for review                                                               
by November 2020.  The agency will determine,  by September 2021,                                                               
whether the products can remain on the market.                                                                                  
                                                                                                                                
2:34:21 PM                                                                                                                    
CARRIE  NYSSEN,  Senior  Director   of  Advocacy,  American  Lung                                                               
Association,  stated  that  the   ALA  strongly  supports  taxing                                                               
electronic  cigarettes  and  other tobacco  products.  Increasing                                                               
prices is a tool that  works to decrease use, encourage consumers                                                               
to quit, and delay youth  from using the products. She emphasized                                                               
heating toxic  chemicals for inhalation  is not safe  or healthy.                                                               
Further, the flavorings added to  entice youth and make the taste                                                               
more  palatable can  cause inflammation  in the  lungs. She  said                                                               
some of the flavorings have  been approved as food additives, but                                                               
they are not designed for inhalation.                                                                                           
                                                                                                                                
In response to earlier testimony  about a study from England that                                                               
allegedly  shows these  products are  safer than  cigarettes, she                                                               
said  the weekly  peer reviewed  medical  journal, "The  Lancet,"                                                               
rebutted  the claim  in an  editorial. It  also pointed  out that                                                               
some on  the panel  of experts  appeared to have  ties to  the e-                                                               
cigarette  industry.  She  noted that  the  European  Respiratory                                                               
Society  offered an  alternative  to the  England study,  pushing                                                               
back against the 95 percent less harmful claim.                                                                                 
                                                                                                                                
M. NYSSEN emphasized that e-cigarette  use sustains the addiction                                                               
to nicotine  and that  the manufacturers have  taken no  steps to                                                               
have them tested and approved as cessation devices.                                                                             
                                                                                                                                
CHAIR  COSTELLO asked  her  to send  "The  Lancet" editorial  she                                                               
referenced;  she  would  distribute  it and  the  other  articles                                                               
referenced today to the members.                                                                                                
                                                                                                                                
2:37:07 PM                                                                                                                    
GREGORY  CONLEY, President,  American  Vaping Association  (AVA),                                                               
Medford, New  Jersey, stated  that AVA  strongly opposes  the tax                                                               
portion of  SB 45,  but he  was not  defending the  Snapchat drug                                                               
dealers  selling  to   youth  or  the  Snapchat   vape  sales  of                                                               
unauthorized  products. He  said  law enforcement  needs to  stop                                                               
those sales and companies like  Puff Bar are already in violation                                                               
of the law.  Any store in Alaska selling those  is subject to FDA                                                               
enforcement.                                                                                                                    
                                                                                                                                
MR.  CONLEY referenced  earlier testimony  and stressed  that the                                                               
only irreversible lung damage and/or  death from vaping came when                                                               
a  drug  dealer  sold  contaminated illicit  THC  cartridges.  He                                                               
pointed out that  taxing these products would not  stop that kind                                                               
of activity. Rather,  it will only discourage  adult smokers from                                                               
quitting.  He made  the  final point  that  Alaska retailers  are                                                               
permitted to ship to Alaska consumers via USPS.                                                                                 
                                                                                                                                
2:39:55 PM                                                                                                                    
JAY  OKU,  Government  Relations  Director,  Five  Pawns,  Orange                                                               
County,  California,  stated  that this  nonprofit  helps  adults                                                               
transition  from  smoking  with  maturely  branded,  meticulously                                                               
manufactured harm-reduction products. He  voiced support for T 21                                                               
and   advocated  for   tobacco   harm-reduction  technology.   He                                                               
acknowledged that  it is  preferable if  nobody smokes  or vapes,                                                               
but pointed  out that the peer-reviewed  science illustrates that                                                               
e-cigarettes are a  magnitude less harmful than  smoking. He said                                                               
it  is Five  Pawns'  goal to  help offset  the  leading cause  of                                                               
preventable deaths with this technology.                                                                                        
                                                                                                                                
MR. OKU  disputed the  statements that the  FDA has  said nothing                                                               
about safely utilizing  vaping as a tool. He cited  Dr. Scott Lee                                                               
and Mitch Zeller  [former director of the FDA  Center for Tobacco                                                               
Products].  They  talked about  utilizing  vaping  as a  tool  to                                                               
switch  from cigarettes  and that  it  would be  good for  public                                                               
health  if  every  smoker  switched from  cigarettes  to  a  non-                                                               
combustible product like e-cigarettes.                                                                                          
                                                                                                                                
He said that  despite the rhetoric from proponents  of this bill,                                                               
480,000  people  die  each year  from  smoking  related  disease.                                                               
Studies screened  from international academic  literature between                                                               
2018  and 2020  indicate that  vaping is  mainly concentrated  in                                                               
young  people  who have  experience  smoking  and less  than  one                                                               
percent of those  young people who have never  smoked are current                                                               
vapors.  Furthermore,   10  years  after   e-cigarettes  emerged,                                                               
smoking  rates among  18-24  year olds  declined  47 percent.  He                                                               
maintained that  the increasingly incorrect perception  about the                                                               
harms  of vaping  could  prevent some  adult  smokers from  using                                                               
vaping products to quit smoking.                                                                                                
                                                                                                                                
MR. OKU cited  Alaska data to make the point  that specialty vape                                                               
shops are not  the problem. From January 2018  to September 2019,                                                               
he  said   the  FDA   administered  464   tobacco  age-compliance                                                               
inspections in Alaska  and just one percent involved  the sale of                                                               
cigarettes or  vaping devices. He  said the culprit is  the black                                                               
market and youth and parents need to be educated.                                                                               
                                                                                                                                
MR. OKU  reported that Alaska  received $83.2 million  in tobacco                                                               
taxes  and tobacco  settlement payments  in 2019,  but the  state                                                               
spent just 10  percent of that to fund  tobacco control programs,                                                               
including  education and  prevention.  He said  tobacco sales  in                                                               
Alaska generated $40 million in  2018 and he believes that excess                                                               
taxation will kill Alaskan businesses and grow a black market.                                                                  
                                                                                                                                
MR. OKU thanked  the committee for taking time to  hear the facts                                                               
and not  rushing to judgment  and committed to email  the studies                                                               
he referenced.                                                                                                                  
                                                                                                                                
2:44:34 PM                                                                                                                    
LINDSEY   STRAUD,   Policy   Analysist,  Tax   Payers   Alliance,                                                               
Washington, D.C.,  stated that vapor  products are  tobacco harm-                                                               
reduction  tools  that  have  helped   millions  of  adults  quit                                                               
smoking, so they should not be subject to sin taxes.                                                                            
                                                                                                                                
She conveyed that  in 2019, 45.8 percent of  high school students                                                               
reported having tried e-cigarettes;  26.1 percent reported use in                                                               
the past  30 days; and  4.5 percent  reported daily use  of vapor                                                               
products.  She highlighted  the all-time  low use  of combustible                                                               
cigarettes by  youth in  2019. Just 27.5  percent of  Alaska high                                                               
school students  reported ever trying  cigarettes, which is  a 62                                                               
percent reduction  from 1995.  Reported use in  the past  30 days                                                               
reduced from 36.5 percent in 1995 to 8.4 percent in 2019.                                                                       
                                                                                                                                
MS.  STRAUD  referenced  earlier  testimony  and  explained  that                                                               
predominant e-cigarette use by 18-24  year olds correlates with a                                                               
major decrease in use in that age bracket.                                                                                      
                                                                                                                                
Noting  that  she  submitted   written  testimony  that  included                                                               
analyses from  other states,  she posited  that vapor  taxes have                                                               
not deterred youth from using e-cigarettes.                                                                                     
                                                                                                                                
MS.  STRAUD  said Alaska  is  ranked  second in  funding  tobacco                                                               
control programs.  Over a 20-year  period, Alaska  allocated just                                                               
$143.9 million  towards tobacco control programs  yet it received                                                               
over $1 billion in cigarette  taxes and $567.8 million in tobacco                                                               
tax  settlement  payments  over   that  same  time.  For  further                                                               
perspective, she said  that Alaska spent about $94  per smoker on                                                               
tobacco control programs in 2019.  She suggested that rather than                                                               
imposing sin  taxes, Alaska  should allocate  additional existing                                                               
tobacco money to youth prevention and education programs.                                                                       
                                                                                                                                
2:47:39 PM                                                                                                                    
ALEX CLARK,  CEO, Consumer Advocates for  Smoke-free Alternatives                                                               
Association  (CASAA), Plattsburgh,  New  York,  stated that  this                                                               
501(c)(4) nonprofit  consumer advocacy organization  is dedicated                                                               
to promoting  tobacco harm reduction  as a necessary  strategy to                                                               
reduce early death  and disease from smoking. He  was speaking on                                                               
behalf of more  than 600 Alaskan members who  are concerned about                                                               
the ability to continue to access safer nicotine products.                                                                      
                                                                                                                                
He said CASAA  opposes the taxing provision in SB  45 and raising                                                               
the age to purchase to  21, particularly criminalizing possession                                                               
and use.  He described it  as adding  insult to injury  for young                                                               
people caught using these products,  particularly when 18-20 year                                                               
olds are considered adults in many other situations.                                                                            
                                                                                                                                
MR. CLARK  suggested it was  time to  reset the narrative  on who                                                               
makes up the  industry and its consumers. He related  that he did                                                               
not  have  success  trying  to  quit  smoking  until  he  stopped                                                               
listening to  public health authorities and  started listening to                                                               
his dad who successfully switched  from smoking to using nicotine                                                               
gum. He  maintained that it is  not as difficult to  quit smoking                                                               
as it is  made out to be  and that there are  plenty of resources                                                               
to help. It is  a matter of having all the  options on the table,                                                               
he said.                                                                                                                        
                                                                                                                                
MR.  CLARK summarized  that  CASAA is  opposed to  SB  45. It  is                                                               
inaccurate to treat  vaping products as tobacco  products, to tax                                                               
them as such, or to say they  carry the same risk. He said people                                                               
trying to  quit smoking made  these products and  consumers added                                                               
flavors.   He  maintained   that  vaping   products  democratized                                                               
nicotine  because consumers  are no  longer reliant  on incumbent                                                               
cigarette  companies or  pharmaceutical companies  to access  the                                                               
safer  form of  nicotine.  He suggested  the legislature  instead                                                               
focus on  beefing up education  programs that present  facts, not                                                               
propaganda.                                                                                                                     
                                                                                                                                
2:53:03 PM                                                                                                                    
CHAIR COSTELLO closed public testimony on SB 45.                                                                                
                                                                                                                                
SENATOR STEVENS  said it is  clear that the  state gets a  lot of                                                               
money from  tobacco cessation and  it should spend more  money on                                                               
education.                                                                                                                      
                                                                                                                                
CHAIR  COSTELLO  asked  Ms.  Steffens   to  comment  on  previous                                                               
testimony on the  imbalance between the money  the state receives                                                               
from tobacco taxes and spends on education/cessation programs.                                                                  
                                                                                                                                
2:54:01 PM                                                                                                                    
KATIE  STEFFENS, Public  Health  Specialist,  Division of  Public                                                               
Health,  Department   of  Health  and  Social   Services  (DHSS),                                                               
Anchorage, Alaska, advised that the  state spends $550,000 on the                                                               
Alaska  Tobacco Quit  Line, which  provides  free counseling  and                                                               
nicotine replacement therapy in the form of gum and lozenges.                                                                   
                                                                                                                                
CHAIR COSTELLO  asked what  the state  receives from  the tobacco                                                               
tax.                                                                                                                            
                                                                                                                                
MS. STEFFENS  replied the state  received $8 million  last fiscal                                                               
year.                                                                                                                           
                                                                                                                                
2:55:21 PM                                                                                                                    
SENATOR  STEVENS   asked,  other  than  vaping,   what  cessation                                                               
therapies and programs are available in Alaska.                                                                                 
                                                                                                                                
MS. STEFFENS reminded  the committee that e-cigarettes  are not a                                                               
recognized  cessation device  in this  country. She  continued to                                                               
say that along with the  Alaska Tobacco Quit Line, the department                                                               
funds  23 community  grantees to  conduct  education through  the                                                               
state. They talk  with schools and other partners in  the area to                                                               
spread  information  about  e-products and  tobacco  products  in                                                               
general.                                                                                                                        
                                                                                                                                
CHAIR COSTELLO asked if information  about the grant is available                                                               
online so the members could see where the funds are going.                                                                      
                                                                                                                                
MS. STEFFENS  answered yes and  she would send the  annual fiscal                                                               
report as well.  In response to a further question,  she said the                                                               
quit line number is 1-800-quit-now.                                                                                             
                                                                                                                                
CHAIR  COSTELLO  asked  Mr.  Darnell   to  describe  his  efforts                                                               
regarding underage sales of tobacco and vaping products.                                                                        
                                                                                                                                
2:57:22 PM                                                                                                                    
JOE   DARNELL,  Investigator,   Tobacco   Section,  Division   of                                                               
Behavioral  Health,  Department  of Health  and  Social  Services                                                               
(DHSS), Anchorage,  Alaska, explained  that student  interns work                                                               
in the  program to check  vaping and tobacco retailers  to ensure                                                               
they are complying  with the underage laws. They  also do premise                                                               
inspections to  see that retailers  are following  licensing laws                                                               
and  offer certification  programs  to  help retailers  establish                                                               
policies to prevent underage sales.                                                                                             
                                                                                                                                
SENATOR GRAY-JACKSON asked  if there are criteria  to qualify for                                                               
free counseling.                                                                                                                
                                                                                                                                
MS. STEFFENS  replied a person must  be 18 years of  age or older                                                               
to  use  the quit  line,  but  the  department recently  added  a                                                               
service to help parents be quit  champions for youth under age 18                                                               
and to  educate parents  on the  harmful effects  of e-cigarettes                                                               
and how to help their kids quit.                                                                                                
                                                                                                                                
CHAIR   COSTELLO  asked   if  a   particular  statute   or  legal                                                               
prohibition requires that help for  a nicotine addiction can only                                                               
be given to people 18 years of age or older.                                                                                    
                                                                                                                                
MS. STEFFENS replied  is an informed consent state  so the Alaska                                                               
Quit Line can only offer help to those 18 and older.                                                                            
                                                                                                                                
CHAIR  COSTELLO  how  many  parents use  the  service  for  their                                                               
children.                                                                                                                       
                                                                                                                                
MS. STEFFENS offered to follow up with the information.                                                                         
                                                                                                                                
3:00:52 PM                                                                                                                    
SENATOR STEVENS asked  if there is something that  should be done                                                               
but isn't to help kids who are addicted.                                                                                        
                                                                                                                                
MS. STEFFENS  replied that  taxing tobacco  products is  the most                                                               
effective way  for youth and young  adults to stop or  even begin                                                               
using these products. Price increases  also helps people of lower                                                               
socioeconomic  status  to  stop using  these  products.  Further,                                                               
raising the age to 21  would meet federal regulations and provide                                                               
clarity on enforcement.                                                                                                         
                                                                                                                                
CHAIR COSTELLO asked  for the penalty for an  underage person who                                                               
sells or possesses tobacco products.                                                                                            
                                                                                                                                
MS. STEFFENS deferred the question to Mr. Darnell.                                                                              
                                                                                                                                
3:02:13 PM                                                                                                                    
MR.  DARNELL said  the penalty  ranges from  $300 to  $500 for  a                                                               
clerk who sells to somebody who is underage.                                                                                    
                                                                                                                                
CHAIR COSTELLO asked  for the penalty for  possession by somebody                                                               
who is underage.                                                                                                                
                                                                                                                                
MR. DARNELL answered the statute provides a $500 penalty.                                                                       
                                                                                                                                
CHAIR COSTELLO asked if he had data on the number of youth found                                                                
guilty of possession who pay the $500 fine.                                                                                     
                                                                                                                                
MR. DARNELL offered to follow up with the information.                                                                          
                                                                                                                                
CHAIR COSTELLO also asked him to provide the number of clerks                                                                   
who are found guilty and pay the fine for selling to somebody                                                                   
who is underage.                                                                                                                
                                                                                                                                
CHAIR COSTELLO held SB 45 in committee for future consideration.                                                                

Document Name Date/Time Subjects
SB 45 Opposition Charles Edge.pdf SL&C 3/1/2021 1:30:00 PM
SB 45
SB 45 Opposition American Vaping Association.pdf SL&C 3/1/2021 1:30:00 PM
SB 45
SB 45 Opposition Mike Coons.pdf SL&C 3/1/2021 1:30:00 PM
SB 45
SB 45 Opposition Greg McDonald.pdf SL&C 3/1/2021 1:30:00 PM
SB 45
SB 45 Testimony Taxpayers Protection Alliance 1.pdf SL&C 3/1/2021 1:30:00 PM
SB 45
SB 45 Testimony Taxpayers Protection Alliance 2.pdf SL&C 3/1/2021 1:30:00 PM
SB 45