Legislature(2015 - 2016)BELTZ 105 (TSBldg)

02/18/2016 01:30 PM LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 136 ELCTRNC TAX RETURNS; VESSEL PASSENGER TAX TELECONFERENCED
<Above Item Removed from Agenda>
*+ SB 134 INDIV. INCOME TAX: CREDITS; RETURNS TELECONFERENCED
<Above Item Removed from Agenda>
+ Bills Previously Heard/Scheduled: TELECONFERENCED
-- Public Testimony --
+= SB 18 HEALTH CARE SHARE MINISTRY NOT INSURANCE TELECONFERENCED
Moved SB 18 Out of Committee
+= SB 158 REAL ESTATE BROKER LICENSURE REQS TELECONFERENCED
Heard & Held
+= SB 141 E-CIGS: SALE TO AND POSSESSION BY MINOR TELECONFERENCED
Heard & Held
+= SB 108 AK SECURITIES ACT; PENALTIES; CRT. RULES TELECONFERENCED
Heard & Held
         SB 141-E-CIGS: SALE TO AND POSSESSION BY MINOR                                                                     
                                                                                                                                
2:16:59 PM                                                                                                                    
VICE  CHAIR GIESSEL  announced the  consideration of  SB 141. She                                                               
noted this is the second hearing.                                                                                               
                                                                                                                                
2:17:27 PM                                                                                                                    
SENATOR  GARY STEVENS,  Alaska State  Legislature, sponsor  of SB
141, stated that this is not a  tax bill or an attempt to control                                                               
adult use  of e-cigarettes. It  is a  bill that seeks  to control                                                               
the use of these devices by minors.                                                                                             
                                                                                                                                
2:17:54 PM                                                                                                                    
TIM   LAMPKIN,  Staff,   Senator  Gary   Stevens,  Alaska   State                                                               
Legislature,  displayed  an  informational  slideshow  about  the                                                               
types and uses  of e-cigarettes as he summarized  that the intent                                                               
of SB  141 is to protect  youths. He informed the  committee that                                                               
smoking e-cigarettes  or vaping  is the  latest fad  among youths                                                               
and an entire  subculture exists around the  activity. He related                                                               
that e-cigarette use began in  1963, but didn't take root because                                                               
tobacco  smoking  was  more   fashionable.  However,  as  tobacco                                                               
consumption  has  declined,  e-cigarettes  have  resurfaced.  The                                                               
market  is  exploding  and  is  under  regulated.  The  sponsor's                                                               
concern is  that this will serve  as a gateway product  that will                                                               
ultimately result in more youths beginning to smoke.                                                                            
                                                                                                                                
He  noted  that  a  committee   substitute  is  forthcoming  that                                                               
broadens definitions for these products.                                                                                        
                                                                                                                                
2:19:50 PM                                                                                                                    
MR. LAMKIN  walked through the  following sectional  analysis for                                                               
SB 141, version H:                                                                                                              
                                                                                                                                
     Section 1:  AS 11.76.105(a)  Adds to existing  law that                                                                    
     prohibits   minors   from  possessing   cigarettes   or                                                                    
     tobacco,  to  also  prohibit possession  of  electronic                                                                    
     cigarettes and any component thereof.                                                                                      
                                                                                                                                
     Section 2:  AS 11.76.109(a)  Adds to existing  law that                                                                    
     it is  an offense not  only to sell, exchange,  or give                                                                    
     electronic   cigarettes,  or   any  related   component                                                                    
     thereof, to a minor.                                                                                                       
                                                                                                                                
     Section 3:  AS 11.76.109(b)  Provides an  exception for                                                                    
     minors  possessing  e-cigarettes,  given the  minor  is                                                                    
     using an  e-cigarette for an approved  medical purpose,                                                                    
     such as smoking cessation, and  is provided by a parent                                                                    
     or prescribed by a doctor.                                                                                                 
                                                                                                                                
He noted that some will argue  that these products do not contain                                                               
nicotine, but that hasn't been established for certain.                                                                         
                                                                                                                                
     Section  4:  AS   11.81.900(b)  Makes  new  definitions                                                                    
     regarding E-cigarette components as follows:                                                                               
                                                                                                                                
          (67) Defines "alternative tobacco product" to                                                                         
     include   a    substance   containing    nicotine,   or                                                                    
     synthesized to resemble nicotine.                                                                                          
                                                                                                                                
          (68) Defines "electronic smoking device" to                                                                           
     include  its  mechanical  components and  the  chemical                                                                    
     substances it aerosolizes.                                                                                                 
                                                                                                                                
          (69) Defines "e-liquid or e-liquid product" as a                                                                      
     liquid  intended  to  be  aerosolized  and  inhaled  in                                                                    
     conjunction with an electronic smoking device.                                                                             
                                                                                                                                
          (70) Defines "vapor product" as a device that,                                                                        
     when its components are assembled,  is used to simulate                                                                    
     smoking.                                                                                                                   
                                                                                                                                
He  reiterated that  a committee  substitute is  forthcoming that                                                               
broadens definitions for these products.                                                                                        
                                                                                                                                
     Section 5: Is the  effective date, applying to offenses                                                                    
     committed only after the effective date of the bill.                                                                       
                                                                                                                                
SENATOR MEYER  thanked Mr.  Lamkin for  clarifying that  it isn't                                                               
clear whether or not these products contain nicotine.                                                                           
                                                                                                                                
MR.  LAMKIN  related  that  there  are  no  existing  regulations                                                               
requiring labeling  or testing these  products so it's  not clear                                                               
what they contain.                                                                                                              
                                                                                                                                
SENATOR MEYER  commented that regardless of  whether they contain                                                               
nicotine or not,  they still contain ingredients that  may not be                                                               
safe for kids under age 19.                                                                                                     
                                                                                                                                
MR. LAMKIN agreed adding that the  industry is new and moving too                                                               
quickly  to have  accurate data.  He noted  that some  will argue                                                               
that the data set is too small to form conclusions.                                                                             
                                                                                                                                
SENATOR  STEVENS said  the jury  is  still out  about whether  e-                                                               
cigarettes will  help break  a nicotine  addiction. He  asked Mr.                                                               
Lamkin  to  talk about  how  an  underage  person can  access  e-                                                               
cigarettes to treat an addiction to nicotine.                                                                                   
                                                                                                                                
MR.  LAMKIN  offered  his  understanding that  the  state  has  a                                                               
hotline that a  youth can call to access  cessation products. The                                                               
bill  also  provides  exceptions   for  youth  to  have  nicotine                                                               
products  if  they're  used  specifically  for  a  pharmaceutical                                                               
purpose to  quit smoking.  Parents can  also provide  the product                                                               
without  a  prescription.  He deferred  further  comment  to  Dr.                                                               
Butler.                                                                                                                         
                                                                                                                                
VICE CHAIR GIESSEL noted that  Spice isn't mentioned, although it                                                               
is sometimes used in an e-cigarette.                                                                                            
                                                                                                                                
MR. LAMKIN  said it's not  specifically mentioned  because that's                                                               
not  the  focus  of  the  bill, but  it  theoretically  could  be                                                               
substituted.                                                                                                                    
                                                                                                                                
DR JAY  BUTLER, Chief  Medical Doctor,  Department of  Health and                                                               
Social Services  (DHSS), Anchorage, Alaska, stated  that there is                                                               
little  known  about the  long-term  effects  of e-cigarettes  so                                                               
there's still  a lot to  learn. Addressing the question  of using                                                               
e-cigarettes  as  cessation  devices,  he said  he  believes  the                                                               
provision  for that  is  linked  to FDA  approval,  so the  state                                                               
programs will rely on that. "As  a provider, that's where I would                                                               
go first. But  I have certainly counseled patients  who have quit                                                               
again  and  again  and  again  to  consider  non-smoking  tobacco                                                               
products as  an alternative," he  said. Anecdotally, he  is aware                                                               
of  people switching  to smokeless  or e-cigarettes  as a  way to                                                               
stop or at least cut down on smoking.                                                                                           
                                                                                                                                
He acknowledged the  concern about not knowing  what substance is                                                               
in  the vaping  product  and  said he  expects  to see  marijuana                                                               
liquids in vaping  devices in the near future. He  noted that the                                                               
trials for  that product are not  using vaporization as a  way to                                                               
administer it.  He also noted  anecdotally that  products labeled                                                               
automobile  air fresheners  and used  in refillable  vape devices                                                               
actually did contain Spice.                                                                                                     
                                                                                                                                
2:27:58 PM                                                                                                                    
SENATOR STEVENS asked  for confirmation that people  under age 18                                                               
won't be able to legally possess  marijuana even if it's legal in                                                               
Alaska.                                                                                                                         
                                                                                                                                
DR. BUTLER  agreed and then  pointed out that  the odor of  a THC                                                               
containing  solution isn't  necessarily distinctive.  Some online                                                               
products are even touted to be odorless.                                                                                        
                                                                                                                                
SENATOR STEVENS  asked for help  understanding whether or  not e-                                                               
cigarettes can be a cessation device.                                                                                           
                                                                                                                                
DR. BUTLER said  there is anecdotal evidence to  that effect, but                                                               
the fundamental question is what  is in the e-cigarette. Products                                                               
that  are  FDA approved  have  a  known  amount of  nicotine  and                                                               
absorption  rate so  it's  easier  to titrate  the  dose down  as                                                               
needed. He noted  that some vaping products  have labeled amounts                                                               
of  nicotine, but  there is  no  assurance that  the consumer  is                                                               
getting what's  on the  label. He  agreed with  earlier testimony                                                               
that Great Britain  approved a product as a  cessation device but                                                               
his understanding  is that  there is no  similar filing  with the                                                               
FDA in the U.S.                                                                                                                 
                                                                                                                                
SENATOR STEVENS thanked Dr. Butler for his work.                                                                                
                                                                                                                                
2:31:23 PM                                                                                                                    
JOE  DARNELL, Manager,  Underage Tobacco  Enforcement, Department                                                               
of  Health   and  Social  Services  (DHSS),   Anchorage,  Alaska,                                                               
introduced himself.                                                                                                             
                                                                                                                                
SENATOR MEYER asked  if the law prohibiting possession  or use of                                                               
tobacco by  a minor  is being  enforced. He  also asked  what the                                                               
penalty is  and if it's possible  to collect from a  youth who is                                                               
age 16 or 17.                                                                                                                   
                                                                                                                                
MR. DARNELL explained that possession of  tobacco by a minor is a                                                               
$50 fine,  and sometimes  the court  allows community  service or                                                               
tobacco training  in lieu  of the fine.  He anticipates  the same                                                               
thing happening  with the vaping products.  School administrators                                                               
have mentioned  problems on school  campuses because there  is no                                                               
law addressing  vaping products. As  a policy, the device  may be                                                               
confiscated but it has to be returned.                                                                                          
                                                                                                                                
SENATOR MEYER asked:  1) how many tobacco  violations are written                                                               
in  a year  and 2)  how  it's possible  to tell  that someone  is                                                               
vaping when they're outside.                                                                                                    
                                                                                                                                
MR.  DARNELL said  his  office works  with  merchants to  prevent                                                               
underage  sales  so  they don't  regularly  issue  citations.  He                                                               
agreed that  you couldn't tell  if someone was vaping  if they're                                                               
outside, and expressed  concern that vaping is  bringing back the                                                               
social norm that smoking is acceptable.                                                                                         
                                                                                                                                
SENATOR MEYER asked if vaping products are allowed in bars.                                                                     
                                                                                                                                
MR. DARNELL  said he believes that  vaping is allowed in  bars in                                                               
Anchorage  and  he knows  that  Juneau  added to  its  smoke-free                                                               
ordinance  to include  vaping.  Vaping is  also  allowed in  vape                                                               
shops.                                                                                                                          
                                                                                                                                
MR. LAMPKIN added his understanding that  it is largely up to the                                                               
owner of the establishment to set  the policy for vaping. He also                                                               
pointed out that some products are both smokeless and odorless.                                                                 
                                                                                                                                
2:38:04 PM                                                                                                                    
ANGELA  CARROLL,  Chapter  Leader,  SmokeFree  Alternative  Trade                                                               
Association,  Wasilla,   Alaska,  stated  support  for   SB  141,                                                               
emphasizing  that vaping  products  should not  be accessible  to                                                               
individuals younger than the legal smoking age.                                                                                 
                                                                                                                                
2:38:50 PM                                                                                                                    
EMILY  NENON,  Alaska  Government  Relations  Director,  American                                                               
Cancer  Society/Cancer Action  Network  (ACS  CAN), testified  in                                                               
support of SB  141. She highlighted that  venders of e-cigarettes                                                               
do not  have the same  license requirements as venders  that sell                                                               
tobacco  so there  isn't  a good  way to  enforce  a penalty  for                                                               
selling to  youth. She echoed  concern about the trend  for youth                                                               
to use electronic-cigarettes and noted  that this is reflected in                                                               
ACS  CAN's youth  risk behavior  survey data  for Alaska.  It's a                                                               
trend that should be addressed before it gets worse, she said.                                                                  
                                                                                                                                
VICE CHAIR  GIESSEL asked if  there is particulate matter  in the                                                               
e-products.                                                                                                                     
                                                                                                                                
MR. NENON answered  yes; ultrafine particles come off  the end of                                                               
the e-cigarette. Given that there  are hundreds of these products                                                               
on the  market, it is impossible  to say exactly what  is in each                                                               
one, he  said. However,  ones that have  been analyzed  have been                                                               
found to contain neurotoxins, which is found in nicotine.                                                                       
                                                                                                                                
VICE CHAIR GIESSEL  asked if she'd seen data  indicating that the                                                               
particulate  matter may  exacerbate asthma  or other  respiratory                                                               
diseases.                                                                                                                       
                                                                                                                                
MS. NENON  said yes and offered  to provide the fact  sheets that                                                               
show evidence of short-term impacts on the respiratory system.                                                                  
                                                                                                                                
SENATOR  STEVENS  asked  if e-cigarettes  have  to  be  purchased                                                               
through an adult at a shop.                                                                                                     
                                                                                                                                
MS. NENON said she appreciates  that that is what the legislation                                                               
would require,  but she's heard  anecdotally that some  youth are                                                               
getting them online.                                                                                                            
                                                                                                                                
SENATOR  STEVENS commented  that Internet  sales is  an important                                                               
issue.                                                                                                                          
                                                                                                                                
2:44:11 PM                                                                                                                    
SENATOR  ELLIS  related that  it  was  former Representative  Kay                                                               
Brown  who  introduced  legislation   to  ban  cigarette  vending                                                               
machines  in all  places except  where people  over age  21 could                                                               
have  access.  He  recalled  that  when  he  first  came  to  the                                                               
legislature there was  a cigarette vending machine  on the ground                                                               
floor of the  capitol building and students from  the high school                                                               
would  walk up  or take  the bus  to get  their nicotine  fix. He                                                               
added,  "I  was  a  proud  co-sponsor  of  that  legislation  and                                                               
needless to  say we've come a  long way in our  consciousness and                                                               
commitment to health, especially with young people."                                                                            
                                                                                                                                
2:45:42 PM                                                                                                                    
VICE CHAIR  GIESSEL closed  public testimony and  held SB  141 in                                                               
committee awaiting a committee substitute (CS).                                                                                 
                                                                                                                                

Document Name Date/Time Subjects
SB 18 - Version H.PDF SL&C 2/18/2016 1:30:00 PM
SB 18
SB 18 - Fiscal Note.pdf SL&C 2/18/2016 1:30:00 PM
SB 18
SB 18 - Sponsor Statement.pdf SL&C 2/18/2016 1:30:00 PM
SB 18
SB 108 - Fiscal Note DCCED.pdf SL&C 2/18/2016 1:30:00 PM
SB 108
SB 108 - Fiscal Note DOA.pdf SL&C 2/18/2016 1:30:00 PM
SB 108
SB 108 - Testimony - R. Banks - Alaska Securitites Act Reform-Crowdinvesting.pdf SL&C 2/18/2016 1:30:00 PM
SB 108
SB 108 Sectional Analysis.pdf SL&C 2/18/2016 1:30:00 PM
SB 108
SB 141 - Fiscal Note.pdf SL&C 2/18/2016 1:30:00 PM
SB 141
SB 108.PDF SL&C 2/18/2016 1:30:00 PM
SB 108
SB 141 - Sectional Analysis.pdf SL&C 2/18/2016 1:30:00 PM
SB 141
SB 141 - Sponsor Statement.pdf SL&C 2/18/2016 1:30:00 PM
SB 141
SB 141.PDF SL&C 2/18/2016 1:30:00 PM
SB 141
SB 158 - Assoc. Realtor Letter.pdf SL&C 2/18/2016 1:30:00 PM
SB 158
SB 158 - Comparative Education Experience Other States.pdf SL&C 2/18/2016 1:30:00 PM
SB 158
SB 158 - Fiscal Note.pdf SL&C 2/18/2016 1:30:00 PM
SB 158
SB 158 - Real Estate Commission Letter.pdf SL&C 2/18/2016 1:30:00 PM
SB 158
SB 158.PDF SL&C 2/18/2016 1:30:00 PM
SB 158
Public Comment - Concerns with SB 158.pdf SL&C 2/18/2016 1:30:00 PM
SB 158