Legislature(2017 - 2018)ADAMS ROOM 519

04/12/2018 01:30 PM FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ SB 37 PHARMACY BD & STAFF;DRUG DISTRIB/MANUFACT TELECONFERENCED
Moved CSSB 37(FIN) Out of Committee
-- Public Testimony --
+ SB 15 E-CIGS/TOBACCO/NICOTINE & MINORS; SALES TELECONFERENCED
Heard & Held
-- Public Testimony --
+ SB 155 REAL ESTATE APPRAISAL MNGMT. COMPANIES TELECONFERENCED
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
+= SB 158 OIL/HAZARDOUS SUB.:CLEANUP/REIMBURSEMENT TELECONFERENCED
Moved SB 158 Out of Committee
                  HOUSE FINANCE COMMITTEE                                                                                       
                      April 12, 2018                                                                                            
                         1:41 p.m.                                                                                              
                                                                                                                                
1:41:04 PM                                                                                                                    
                                                                                                                                
CALL TO ORDER                                                                                                                 
                                                                                                                                
Co-Chair Foster  called the House Finance  Committee meeting                                                                    
to order at 1:41 p.m.                                                                                                           
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Neal Foster, Co-Chair                                                                                            
Representative Paul Seaton, Co-Chair                                                                                            
Representative Les Gara, Vice-Chair                                                                                             
Representative Jason Grenn                                                                                                      
Representative David Guttenberg                                                                                                 
Representative Scott Kawasaki                                                                                                   
Representative Dan Ortiz                                                                                                        
Representative Lance Pruitt                                                                                                     
Representative Steve Thompson                                                                                                   
Representative Cathy Tilton                                                                                                     
Representative Tammie Wilson                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
None                                                                                                                            
                                                                                                                                
ALSO PRESENT                                                                                                                  
                                                                                                                                
Jane  Conway,  Staff  Senator Cathy  Giessel,  Sponsor;  Tim                                                                    
Lamkin,   Staff,  Senator   Gary  Stevens;   Allison  Kulas,                                                                    
Executive Director,  Advisory Board  of Alcoholism  and Drug                                                                    
Abuse;  Kristin Cox,  Grant Coordinator,  Tobacco Prevention                                                                    
and   Control,   National   Council   on   Alcoholism   Drug                                                                    
Dependence,  Juneau;  Beverly  Wooley, Self,  Juneau;  Jamie                                                                    
Morgan,   American   Heart  Association,   American   Stroke                                                                    
Association, Juneau.                                                                                                            
                                                                                                                                
PRESENT VIA TELECONFERENCE                                                                                                    
                                                                                                                                
Kristin  Ryan, Director,  Division of  Spill Prevention  and                                                                    
Response,  Department  of Environmental  Conservation;  Sara                                                                    
Chambers,   Deputy  Director,   Division  of   Corporations,                                                                    
Business   and   Professional   Licensing,   Department   of                                                                    
Commerce, Community and  Economic Development; Richard Holt,                                                                    
Chair,  Alaska  State  Board of  Pharmacy,  Anchorage;  Leif                                                                    
Holm,  Board of  Pharmacy,  North  Pole; Barry  Christensen,                                                                    
Alaska  Pharmacist  Association, Ketchikan;  Hilary  Martin,                                                                    
Legislative  Legal Services,  Juneau; Joe  Darnell, Manager,                                                                    
Youth Tobacco Enforcement Program,  Department of Health and                                                                    
Social Services, Anchorage;  Alex McDonald, Self, Fairbanks;                                                                    
Jennifer Chikoyak,  Self, Anchorage; Betty  MacTavish, Self,                                                                    
Kodiak;   Marge   Stoneking,  American   Lung   Association,                                                                    
Anchorage;  Pamela Howard,  Kenai  Peninsula Borough  School                                                                    
District, Soldotna; Katie  Steffens, Self, Anchorage; Joshua                                                                    
Silas, Self, Soldotna.                                                                                                          
                                                                                                                                
SUMMARY                                                                                                                       
                                                                                                                                
CSSB 15(FIN)                                                                                                                    
          E-CIGS/TOBACCO/NICOTINE & MINORS; SALES                                                                               
                                                                                                                                
          SB 15 was HEARD and HELD in committee for further                                                                     
          consideration.                                                                                                        
                                                                                                                                
CSSB 37(FIN)                                                                                                                    
          PHARMACY BD & STAFF;DRUG DISTRIB/MANUFACT                                                                             
                                                                                                                                
          CSSB 37(FIN) was REPORTED out of committee with a                                                                     
          "do pass" recommendation and with a previously                                                                        
         published fiscal impact note: FN2 (CED).                                                                               
                                                                                                                                
CSSB 155(FIN)                                                                                                                   
          REAL ESTATE APPRAISAL MNGMT. COMPANIES                                                                                
                                                                                                                                
          CSSB 155 (FIN) was SCHEDULED but not HEARD.                                                                           
                                                                                                                                
SB 158    OIL/HAZARDOUS SUB.:CLEANUP/REIMBURSEMENT                                                                              
                                                                                                                                
          CSSB 158 (FIN) was REPORTED out of committee with                                                                     
          a "do pass" recommendation and with a previously                                                                      
         published fiscal impact note: FN1 (DEC).                                                                               
                                                                                                                                
Co-Chair Foster reviewed the meeting agenda.                                                                                    
                                                                                                                                
SENATE BILL NO. 158                                                                                                           
                                                                                                                                
     "An Act  relating to oil  and hazardous  substances and                                                                    
     waiver of cost recovery  for containment and cleanup of                                                                    
     certain  releases;  and   providing  for  an  effective                                                                    
     date."                                                                                                                     
                                                                                                                                
1:42:17 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster indicated that bill  was previously heard on                                                                    
April 9, 2018.                                                                                                                  
                                                                                                                                
1:42:56 PM                                                                                                                    
                                                                                                                                
KRISTIN  RYAN, DIRECTOR,  DIVISION OF  SPILL PREVENTION  AND                                                                    
RESPONSE,  DEPARTMENT  OF  ENVIRONMENTAL  CONSERVATION  (via                                                                    
teleconference), relayed  that the  department did  not have                                                                    
anything to add on the record for the bill.                                                                                     
                                                                                                                                
Representative  Wilson  was  in  support of  the  bill.  She                                                                    
appreciated time  to offer amendments  but could not  find a                                                                    
way to  apply the bill retroactively  without complications.                                                                    
She would not be offering any amendments to the bill.                                                                           
                                                                                                                                
1:44:47 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki  supported   moving  the  bill.  He                                                                    
expressed  concerns that  Section  3 of  the  bill left  the                                                                    
clean-up responsibility up to  the state for individuals who                                                                    
could afford to pay the costs.  He referred to Page 2, lines                                                                    
11 through 12 of the bill:                                                                                                      
                                                                                                                                
     (3)  the person took immediate measures upon discovery                                                                     
     of the release to contain the release where possible;                                                                      
                                                                                                                                
Representative  Kawasaki   asked  about   the  retroactivity                                                                    
clause.  Ms. Ryan  responded  that he  was  referring to  an                                                                    
existing  statute. She  explained that  upon discovery  of a                                                                    
release the  property owner was  expected to  take immediate                                                                    
action  to  stop  the release  and  minimize  the  long-term                                                                    
damage  from  the  leak. The  bill  included  a  retroactive                                                                    
clause that stated if the  homeowner took immediate remedial                                                                    
action  the Department  of Environmental  Conservation (DEC)                                                                    
would  not  bill  them  retroactively to  the  date  of  the                                                                    
legislation. Representative  Kawasaki referred to  Section 3                                                                    
regarding  the department's  ability to  waive the  response                                                                    
costs  and the  use  of  the word  "may."  He  asked if  the                                                                    
department  intended to  adopt the  waiver regulations.  Ms.                                                                    
Ryan responded in the affirmative.                                                                                              
                                                                                                                                
Vice-Chair  Gara reviewed  the zero  fiscal note  FN1 (DEC),                                                                    
from DEC. He  reported that the division expected  a loss in                                                                    
cost recovery revenue of approximately $60.0 annually.                                                                          
Representative  Kawasaki referred  to page  2 of  the fiscal                                                                    
note analysis that stated:                                                                                                      
                                                                                                                                
     The Division of Spill Prevention and Response will                                                                         
     absorb the cost of promulgating regulations.                                                                               
                                                                                                                                
Representative  Kawasaki  referred   to  previous  committee                                                                    
discussion regarding whether agencies  should be expected to                                                                    
cover the costs of  promulgating regulations and noted DEC's                                                                    
absorption of the expense.                                                                                                      
                                                                                                                                
1:48:57 PM                                                                                                                    
                                                                                                                                
Representative Wilson  cited the analysis  on page 2  of the                                                                    
fiscal note that  stated regulations would be  adopted by FY                                                                    
2020.  She   asked  whether  the  division   would  have  to                                                                    
retroactively charge  costs. Ms. Ryan relayed  that the date                                                                    
was inserted  arbitrarily, however the division  intended to                                                                    
implement regulations immediately upon passage of the bill.                                                                     
                                                                                                                                
Co-Chair  Seaton  MOVED to  report  CSSB  158 (FIN)  out  of                                                                    
Committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
CSSB  158 (FIN)  was REPORTED  out of  committee with  a "do                                                                    
pass" recommendation and with  a previously published fiscal                                                                    
impact note: FN1 (DEC).                                                                                                         
                                                                                                                                
1:51:09 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
1:51:22 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 37(FIN)                                                                                                
                                                                                                                                
     "An Act relating to the  Board of Pharmacy; relating to                                                                    
     the  licensing of  certain entities  and inspection  of                                                                    
     certain facilities located  outside the state; relating                                                                    
     to drug  supply chain security; creating  a position of                                                                    
     executive administrator for the  Board of Pharmacy; and                                                                    
     providing for an effective date."                                                                                          
                                                                                                                                
1:52:08 PM                                                                                                                    
                                                                                                                                
JANE CONWAY,  STAFF SENATOR CATHY GIESSEL,  SPONSOR, relayed                                                                    
that  SB 37  brought Alaska  into compliance  with the  Drug                                                                    
Quality  Security Act  (DQSA), which  created a  new license                                                                    
category  for  "Out-of-State  Wholesale  Drug  Distributors"                                                                    
established  in 2013  to provide  oversight  to large  scale                                                                    
drug compounders.  She expounded  that currently,  the Board                                                                    
of  Pharmacy  had  no  authority  to  regulate  out-of-state                                                                    
wholesale  drug  distributors  and  the  bill  provided  the                                                                    
authority.  The   legislation  allowed  Alaska  to   act  to                                                                    
eliminate   wholesalers  looking   for   loopholes  in   the                                                                    
regulatory  system and  ensure that  out-of-state applicants                                                                    
seeking  licensure  comply  with  the  same  regulations  as                                                                    
Alaskan  wholesalers.  She  reported   that  only  one  drug                                                                    
wholesaler operated in Alaska; McKesson Drugs Company.                                                                          
                                                                                                                                
Ms. Conway  relayed an incident  relating to  wholesale drug                                                                    
distributors.  She  detailed   that  in  2012,  contaminated                                                                    
medications were  distributed which  resulted in  the deaths                                                                    
of  people from  meningitis.  In 2012,  a nationwide  fungal                                                                    
meningitis outbreak  resulted in  751 patients in  20 states                                                                    
being  diagnosed and  64  patients in  9  states dying.  The                                                                    
outbreak   was  linked   to   a   compounding  facility   in                                                                    
Massachusetts.  It   was  found  that  the   employees  were                                                                    
producing  medications in  an  unsafe  manner in  unsanitary                                                                    
conditions  and the  company allowed  the medications  to be                                                                    
shipped out  anyway. The tragedy highlighted  the dangers of                                                                    
unregulated, large scale  compounders. She communicated that                                                                    
SB  37 ensured  that prescriptions  were pure,  sanitary and                                                                    
safe. Passage  of the bill  would create a more  secure drug                                                                    
supply chain  and ensure that  Alaskans were  receiving non-                                                                    
counterfeit, unadulterated medications.  She delineated that                                                                    
when  a  pharmacy, doctor,  or  hospital  in Alaska  ordered                                                                    
supplies  of prescription  medications, they  may go  to the                                                                    
one wholesale distributer in  Alaska(McKesson), but they may                                                                    
also order from  one of hundreds of others in  the Lower 48.                                                                    
The  bill  required  any out-of-state  drug  distributor  or                                                                    
outsourcing   facility   to   follow   specific   guidelines                                                                    
including:  obtaining  a   license  in  Alaska,  authorizing                                                                    
inspection by a  designee of the board,  appointing an agent                                                                    
before shipping,  mailing, or delivering  prescription drugs                                                                    
to a licensee in the state  or advertising in the state. She                                                                    
pointed   out  that   that  last   provision  identified   a                                                                    
responsible  party (agent)  to  serve  subpoenas for  citing                                                                    
infractions  or   filing  suit  in  case   of  problem.  She                                                                    
continued that an outsourcing facility  must comply with the                                                                    
Drug Quality  and Security Act  (DQSA) of 2013.  She defined                                                                    
that  an  "outsourcing  facility"  was  a  facility  in  one                                                                    
geographical location  that was  engaged in  the compounding                                                                    
of  sterile drugs  for a  facility  at another  geographical                                                                    
location.  They were  companies that  made large  batches of                                                                    
compounded   drugs   that   had    the   highest   risk   of                                                                    
contamination.  The  Division  of Corporate,  Business,  and                                                                    
Professional  Licensing (DCBPL)  estimated that  registering                                                                    
and   regulating    the   drug   wholesalers    equated   to                                                                    
approximately 400 new licensees.                                                                                                
                                                                                                                                
Ms. Conway offered  that a provision of the  bill created an                                                                    
executive  administrator position  for the  Alaska Board  of                                                                    
Pharmacy.  The  board had  ever-increasing  responsibilities                                                                    
under several  healthcare reform  bills and  opioid response                                                                    
legislation that  passed recently. The position  would allow                                                                    
the board  more capacity to  respond more quickly  to issues                                                                    
and  concerns,  manage  the licensing  of  new  wholesalers,                                                                    
implement statutes and regulations,  and manage the multiple                                                                    
new  responsibilities  relating  to  the  Prescription  Drug                                                                    
Monitoring  Program (PDMP).  The board  currently relied  on                                                                    
the   division  for   routine  operations   assistance.  The                                                                    
position  would  be  paid  by   the  fees  supplied  by  the                                                                    
wholesale  drug  distributor  licensees along  with  current                                                                    
licensee fees and would not impact the general fund.                                                                            
                                                                                                                                
1:59:17 PM                                                                                                                    
                                                                                                                                
Representative  Wilson  questioned  whether Ms.  Conway  was                                                                    
aware that  the Massachusetts facility was  inspected but no                                                                    
one  performed  any follow  up.  Ms.  Conway deferred  to  a                                                                    
pharmacist  online to  answer  the question.  Representative                                                                    
Wilson was aware  of the circumstances and  relayed that the                                                                    
Massachusetts manufacturer was regulated  and fined. She was                                                                    
concerned   about   the   federal  mandate   requiring   the                                                                    
legislation and wondered what  repercussions the state would                                                                    
incur if  the legislation  was not  adopted. Ms.  Conway was                                                                    
unsure what  the federal government would  do. She suspected                                                                    
that the message  to consumers would be that  Alaska did not                                                                    
care about  the quality  of its  medicine. She  thought that                                                                    
Alaskan consumers  expected the drugs to  be manufactured in                                                                    
a  regulated  facility   that  maintained  quality  control.                                                                    
Representative  Wilson  declared  that   she  did  care  but                                                                    
explained that  her concern focused  on requiring  the state                                                                    
to perform  the inspections.  She thought the  mandate would                                                                    
result  in additional  liability  for the  state. She  asked                                                                    
whether  her assumption  was correct.  Ms. Conway  responded                                                                    
that  it   was  possible   that  the  state   would  perform                                                                    
inspections.  However,  since  most  other  states  required                                                                    
licensure the criteria adopted by  other states would likely                                                                    
comply with Alaska's criteria. The  inspection could just be                                                                    
a  matter of  reciprocity with  other states  licensure that                                                                    
would place  an approved wholesaler  in another state  on an                                                                    
Alaskan list  of approved facilities.  Representative Wilson                                                                    
asked  whether  Ms.  Conway was  aware  of  any  problematic                                                                    
incidents  with wholesalers  in Alaska.  Ms. Conway  was not                                                                    
aware  of  any  incidents.  She referred  to  a  handout  in                                                                    
member's packets  titled "The Deadly Counterfeit  Drug Trade                                                                    
Thrives in Alaska" (copy on  file). She indicated that there                                                                    
were  several  places  in the  wholesale  drug  distribution                                                                    
process   where   counterfeiting    actions   could   occur.                                                                    
Representative Wilson  asked how the bill  worked. She asked                                                                    
what   provisions  in   the   bill   identified  where   the                                                                    
counterfeiting  actions   could  occur  and   prevented  the                                                                    
activity.                                                                                                                       
                                                                                                                                
2:04:19 PM                                                                                                                    
                                                                                                                                
Ms. Conway responded that bill  licensed the entities of the                                                                    
wholesale  drug  distributors, the  outsourcing  facilities,                                                                    
and  the  third-party  logistical providers;  all  would  be                                                                    
licensed under  the bill. She maintained  that the licensing                                                                    
of  all entities  handling the  drugs prevented  counterfeit                                                                    
activities.    Representative    Wilson    mentioned    that                                                                    
compounding  drugs were  recently  excluded  in the  state's                                                                    
active  employee   health  plan.   She  asked   whether  the                                                                    
legislation would  cover compound drugs with  passage of the                                                                    
bill.  Ms.  Conway  deferred to  the  appropriate  available                                                                    
testifier to answer the question.                                                                                               
                                                                                                                                
2:06:08 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki   noted  she  had   mentioned  that                                                                    
currently  there  were  400  out-of-state  drug  wholesalers                                                                    
engaged in  business activities in Alaska.  He asked whether                                                                    
his statement was correct. Ms.  Conway answered that the 400                                                                    
number   was  an   estimate.   She   relayed  that   Alaskan                                                                    
pharmacists avoided  engaging with most of  the out-of-state                                                                    
drug  wholesalers  because  they   did  not  know  who  were                                                                    
reputable. The  division had informed her  that many out-of-                                                                    
state companies  were inquiring  whether the  state required                                                                    
licensing, some wanting to take  advantage of the unlicensed                                                                    
environment. There  was a limited  number of  suppliers that                                                                    
Alaska pharmacists  would purchase  drugs from and  the bill                                                                    
would provide the larger estimated pool of wholesalers.                                                                         
                                                                                                                                
Representative Kawasaki related a  scenario where an out-of-                                                                    
state drug  wholesaler did  not want  to become  licensed in                                                                    
Alaska.  He asked  whether the  bill contained  transitional                                                                    
language  that  allowed  an Alaskan  heath  care  entity  to                                                                    
continue  to do  business with  them. Ms.  Conway could  not                                                                    
imagine  a wholesaler  not  wanting to  sell  to vendors  in                                                                    
Alaska and not obtaining  a license. Representative Kawasaki                                                                    
restated his question.  Ms. Conway responded that  all but 4                                                                    
other  states required  licensure  so  the wholesalers  were                                                                    
registered  in many  other states  and was  common practice.                                                                    
Representative Kawasaki asked  whether the out-of-state drug                                                                    
wholesaler  regulations  were  standardized and  similar  in                                                                    
every state.  Ms. Conway  replied that  the state  of Alaska                                                                    
would apply  the current  set of  regulations it  applied to                                                                    
McKesson to the out-of-state drug wholesalers.                                                                                  
                                                                                                                                
2:10:55 PM                                                                                                                    
                                                                                                                                
Representative  Kawasaki asked  why  the  Board of  Pharmacy                                                                    
could not just allow  out-of-state drug wholesalers that met                                                                    
the criteria of another state  to operate in Alaska and gain                                                                    
an  Alaskan license  by merely  qualifying for  licensure in                                                                    
another state. He thought it  would save the time and effort                                                                    
required to  develop regulation and inspect  facilities. Ms.                                                                    
Conway  indicated that  every state  had  adopted their  own                                                                    
criteria; some  maybe more or  less stringent.  She restated                                                                    
the  possibility for  reciprocity with  states that  had the                                                                    
same criteria  as Alaska's. She  expounded that there  was a                                                                    
national   certifier   called   the   "Verified   Accredited                                                                    
Wholesale Distributor" (VAWD) but was  only used by 3 states                                                                    
due  to  the  registration  fee costs.  However,  23  states                                                                    
accepted the certification.                                                                                                     
                                                                                                                                
2:13:27 PM                                                                                                                    
                                                                                                                                
Representative Pruitt  guessed the transition time  would be                                                                    
established through  regulation. He cited the  two effective                                                                    
dates  in the  bill,  an immediate  effective date  allowing                                                                    
time  to   establish  regulations  and  the   hiring  of  an                                                                    
executive director.  The second  effective date was  July 1,                                                                    
2019 when  the law  would be  implemented. He  asked whether                                                                    
the  July  1   date  offered  enough  time   "to  allow  the                                                                    
transition to take place."                                                                                                      
                                                                                                                                
SARA  CHAMBERS, DEPUTY  DIRECTOR, DIVISION  OF CORPORATIONS,                                                                    
BUSINESS   AND   PROFESSIONAL   LICENSING,   DEPARTMENT   OF                                                                    
COMMERCE,   COMMUNITY   AND    ECONOMIC   DEVELOPMENT   (via                                                                    
teleconference),  thought the  time frame  was adequate  for                                                                    
notifying involved  entities and allowing them  input in the                                                                    
board's public process for regulation adoption.                                                                                 
                                                                                                                                
Representative  Pruitt  asked   whether  the  date  provided                                                                    
enough time for the public  to provide input on the proposed                                                                    
regulations. Ms. Chambers answered in the affirmative.                                                                          
                                                                                                                                
2:15:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster OPENED public testimony.                                                                                        
                                                                                                                                
2:16:32 PM                                                                                                                    
                                                                                                                                
RICHARD  HOLT,  CHAIR,  ALASKA   STATE  BOARD  OF  PHARMACY,                                                                    
ANCHORAGE (via  teleconference), testified on behalf  of the                                                                    
board  in  support  of  the  bill.  He  explained  that  the                                                                    
legislation provided  the board two  imperative authorities:                                                                    
to  license  out-of-state  wholesale drug  distributors  who                                                                    
were  shipping  pharmaceuticals  into the  state,  and  out-                                                                    
sourcing facilities and whole  sale logistics providers. The                                                                    
other  authority  allowed the  board  to  hire an  executive                                                                    
administrator   using   the   licensing  fees.   The   board                                                                    
determined that  the licensure was necessary  to fulfill its                                                                    
responsibility  to  ensure  the  practice  of  pharmacy  was                                                                    
acting in the best interest  of Alaskans. He emphasized that                                                                    
the  out-of-state wholesalers  shipped anything  they wanted                                                                    
to  the state  because of  the  lack of  oversight from  the                                                                    
board.  He  relayed  that   the  board's  licensee  examiner                                                                    
received  many   inquiries  from   out-of-state  wholesalers                                                                    
asking whether  the state required a  license. He reiterated                                                                    
that  the state  was unaware  of what  the wholesalers  were                                                                    
shipping  into  the  state.  He   relayed  that  recently  a                                                                    
registered out-of-state  wholesaler turned its  license back                                                                    
over to  the state and  choose to operate as  an outsourcing                                                                    
facility to  avoid oversight. He commented  that the board's                                                                    
workload continued  to increase, and the  executive director                                                                    
position was necessary  to assist the board  in carrying out                                                                    
its statutory duties. He urged  members to vote "yes" on the                                                                    
bill.                                                                                                                           
                                                                                                                                
Representative Kawasaki  mentioned that the  state typically                                                                    
joined    interstate    compacts   for    protections    and                                                                    
efficiencies.  He  asked  whether  "it would  be  easier  to                                                                    
dovetail"  off the  other 47  states  that already  required                                                                    
licensure. DR.  Holt responded that  when the  board drafted                                                                    
regulations  they  examined   the  provisions  other  states                                                                    
adopted.  The board  would  dovetail  regulations that  were                                                                    
appropriate   but  would   tailor   regulations  to   ensure                                                                    
Alaskan's safety and that they met the state's needs.                                                                           
                                                                                                                                
2:20:56 PM                                                                                                                    
                                                                                                                                
Representative Wilson asked  if Dr. Holt felt  that the bill                                                                    
would help  restore state  employee benefits  for compounded                                                                    
drugs.  Mr.  Holt  replied  that  the  state  currently  had                                                                    
regulations  for   compounding  in  12   AAC.52.440  [Alaska                                                                    
Administrative Codes].  He suggested  that the issue  was an                                                                    
insurance  related  issue.  Representative  Wilson  conveyed                                                                    
that  the employees  received notice  that the  coverage was                                                                    
eliminated  due  to  safety concerns,  yet  state  retirees'                                                                    
compounded drug prescriptions were  still covered. She hoped                                                                    
the  bill  would grant  the  state  more confidence  in  the                                                                    
safety  of compounded  drugs. She  appreciated all  the work                                                                    
accomplished by the  board. Dr. Holt affirmed  that the bill                                                                    
would  provide  that  state more  assurances  regarding  the                                                                    
safety of compounding drugs.                                                                                                    
                                                                                                                                
2:23:11 PM                                                                                                                    
                                                                                                                                
LEIF   HOLM,   BOARD   OF    PHARMACY,   NORTH   POLE   (via                                                                    
teleconference),  wanted to  echo Dr.  Holt's sentiments  on                                                                    
behalf of the  board in support of the bill.  He offered his                                                                    
testimony   from   the   perspective   of   an   independent                                                                    
pharmacists.  He   conveyed  that   ultimately,  pharmacists                                                                    
wanted  to   have  confidence  that  the   medications  they                                                                    
purchased  were  safe. He  relayed  that  he restricted  his                                                                    
purchasing with  primarily one large wholesalers  because he                                                                    
could not  quickly asses where the  small wholesalers' drugs                                                                    
were coming from. Pharmacists were  always searching for the                                                                    
lowest  prices   but  revealed   that  it   was  potentially                                                                    
dangerous with  some of  the "unscrupulous  characters" that                                                                    
were  making  substandard  drugs,   and  the  situation  was                                                                    
serious.  He noted  that the  state currently  regulated in-                                                                    
state wholesalers and he did  not believe it would take much                                                                    
effort  to  implement  the  regulations.  He  mentioned  the                                                                    
likelihood of the board  reciprocally accepting other states                                                                    
standards  and  did  not  anticipate  having  to  travel  to                                                                    
another  state  to  do inspections.  He  was  available  for                                                                    
questions.                                                                                                                      
                                                                                                                                
Representative  Kawasaki   asked  how  Dr.   Holm  currently                                                                    
determined who was a legitimate  wholesaler. Dr. Holm voiced                                                                    
that  the situation  was difficult.  He  elaborated that  he                                                                    
almost    exclusively    used    the    single    wholesaler                                                                    
AmerisourceBergen  Corporation but  at times  he had  to use                                                                    
another wholesaler  and was not  able to  reliably determine                                                                    
the reputation of another supplier.  He wished he could rely                                                                    
on a  state website that listed  state licensed wholesalers.                                                                    
Representative Kawasaki  asked how  comfortable he  was with                                                                    
using  other  state regulations  and  if  he agreed  that  a                                                                    
wholesaler who was reputable for  another state was probably                                                                    
a  legitimate source  for Alaska.  Dr. Holm  would agree  as                                                                    
long  as  the  standards   mirrored  Alaska's  criteria.  He                                                                    
deduced  that he  could  go to  another  state's website  to                                                                    
determine whether  a wholesaler was licensed  and then check                                                                    
the thoroughness  of the regulations. He  emphasized that he                                                                    
trusted  the  decisions  the board  made  and  would  rather                                                                    
consult  the  state's  licensure  where he  played  a  role.                                                                    
Representative Kawasaki surmised that  the bill provided for                                                                    
an executive  administrator at  a range  23 attached  to the                                                                    
new licensure  and wanted  to find a  less expensive  way to                                                                    
accomplish  the licensing.  He wondered  whether there  were                                                                    
model  regulations from  one state  that the  board approved                                                                    
of, whereby the  board could adopt as their  own rather than                                                                    
using an executive administrator.                                                                                               
                                                                                                                                
2:29:49 PM                                                                                                                    
                                                                                                                                
Dr.   Holm  asked   for  a   restatement  of   the  concern.                                                                    
Representative  Kawasaki wanted  to find  out whether  there                                                                    
was a cheaper way to  accomplish the licensure work by board                                                                    
regulation. Dr. Holm answered that  the position was covered                                                                    
by  the   wholesale  licensing  fees.  He   noted  that  the                                                                    
profession was constantly evolving,  and it was difficult to                                                                    
keep  up  with  the  changes.  He  countered  Representative                                                                    
Kawasaki's  notion that  the board  could do  the regulatory                                                                    
work on  their own. He remarked  on the busy lives  of board                                                                    
pharmacists.  He  shared that  he  had  four jobs  with  his                                                                    
various pharmacies  besides carrying  out his  board duties,                                                                    
which was  very time consuming.  He noted that  other boards                                                                    
like the  medical board and  nursing board had  an executive                                                                    
administrator.  He reported  that  in  person meetings  were                                                                    
much  more  effective   than  teleconferenced  meetings  and                                                                    
reported  that the  board was  restricted to  two in  person                                                                    
meetings per  year. He believed that  the executive position                                                                    
would act as  a liaison, board work would  be expedited, and                                                                    
thought it would  be easier for the board to  stay on top of                                                                    
what other  states were doing.  He would find it  arduous to                                                                    
find the time  to analyze many other  states regulations. He                                                                    
acknowledged that he  had volunteered for the  board, but it                                                                    
did not mean the job did not require significant effort.                                                                        
                                                                                                                                
2:33:18 PM                                                                                                                    
                                                                                                                                
Representative Wilson  wondered whether a  complaint against                                                                    
an out-of-state wholesaler would  force a state investigator                                                                    
to travel  to the state  to perform an  investigation, which                                                                    
was typically  a significant  cost to  the board.  She asked                                                                    
whether the  investigatory costs  would be paid  through the                                                                    
wholesale  licensure or  the profession's  general licensure                                                                    
fees. Dr. Holm responded that  he did not foresee a scenario                                                                    
that required an  Alaskan inspector to travel  out of state.                                                                    
He thought that  as violations were occurring  they would be                                                                    
reported  to   all  states  boards.   Representative  Wilson                                                                    
wondered how the  licensure funds would be  disbursed in the                                                                    
eventuality of an  investigation. Dr. Holm did  not know. He                                                                    
supposed  that  inspection  costs  would  come  out  of  the                                                                    
pharmacy  licensure  "pot"  that   included  fees  from  the                                                                    
technicians, pharmacists, and wholesalers.                                                                                      
                                                                                                                                
Representative     Wilson     spoke    about     compounding                                                                    
prescriptions. She asked how much  revenue Mr. Holm had lost                                                                    
because   the  state   eliminated   employee  coverage   for                                                                    
compounded medications. Dr. Holm  answered he lost thousands                                                                    
of  dollars in  revenues and  many patients  were unable  to                                                                    
obtain their  medications due to high  costs. Representative                                                                    
Wilson asked  if the state  would realize it made  a mistake                                                                    
due to the safety guarantees  embedded in the bill. Dr. Holm                                                                    
stated  it depended  on whether  it was  done for  safety or                                                                    
financial reasons. He could not  speak to exactly what would                                                                    
happen.   Representative  Wilson   thanked   Mr.  Holm   and                                                                    
acknowledged his work.                                                                                                          
                                                                                                                                
2:36:47 PM                                                                                                                    
                                                                                                                                
Representative   Pruitt   asked   whether  the   board   was                                                                    
comfortable  with the  licensure  fee  structure that  would                                                                    
facilitate supporting a new  executive director position. He                                                                    
asked whether  the licensing fees  would increase.  Dr. Holm                                                                    
responded  that the  board  did not  expect  an increase  in                                                                    
existing  licensing  fees.  The   fees  collected  from  the                                                                    
wholesale  licenses   were  expected   to  fully   fund  the                                                                    
position.  He  spoke  with wholesalers  that  supported  the                                                                    
licensure    and   expected    to   pay    licensing   fees.                                                                    
Representative   Pruitt   recounted   that  there   was   an                                                                    
expectation  the board  would not  need to  increase license                                                                    
fees  to pay  for  the executive  director  even though  the                                                                    
director would  carry out duties other  than duties required                                                                    
for the wholesaler licensing. He  continued that there was a                                                                    
problem  with many  boards where  the current  fee structure                                                                    
could not  cover the cost  of an investigation. He  asked if                                                                    
the   board    was   concerned   that    when   out-of-state                                                                    
investigations  did  occur  the  wholesaler  licensing  fees                                                                    
would increase causing "push back" from the wholesalers.                                                                        
                                                                                                                                
2:40:15 PM                                                                                                                    
                                                                                                                                
Dr.  Holm  understood   Representative  Pruitt's  point  and                                                                    
thought  it was  hypothetical  regarding investigations.  He                                                                    
understood  the larger  investigatory  issues pertaining  to                                                                    
boards. He noted  that the pharmacy board  was a well-funded                                                                    
board that  had never operated  with a negative  balance. He                                                                    
opined that the  board would deal with the issue  if or when                                                                    
it happened.  He thought safety  was the number  one concern                                                                    
with  moving  forward  with  the  licensure.  Representative                                                                    
Pruitt agreed that safety should  be the primary concern. He                                                                    
wanted  the industry  to know  that the  expectation of  the                                                                    
state was the  licensure used a "fee for  service model" and                                                                    
fees could increase  to cover board costs.  He asked whether                                                                    
the board  was comfortable with the  structure. He supported                                                                    
moving the  bill forward  if the board  was in  support. Dr.                                                                    
Holm could  not speak  for everyone and  could not  speak to                                                                    
how the  board would decide  on future fee increases  but he                                                                    
would support  "whatever decision needed  to be made  by the                                                                    
board to make this happen."                                                                                                     
                                                                                                                                
Representative  Tilton  referred  to the  fiscal  note  from                                                                    
DCCED that stated  there was no fiscal impact  on the public                                                                    
or  private sectors  in  the state  as  the licensing  would                                                                    
impact entities  outside of the  state [second  paragraph on                                                                    
page  2  of the  fiscal  note].  She  was concerned  that  a                                                                    
potential impact  could happen  in the future.  She wondered                                                                    
whether  any  latent  impact could  increase  costs  to  the                                                                    
consumer. Mr. Holm  answered that he did  not anticipate any                                                                    
fiscal impact on  the wholesaler; the fees  were minimal for                                                                    
a  wholesaler.  He  deduced that  the  bill's  impact  could                                                                    
potentially lower  costs by offering more  possibilities for                                                                    
the pharmacists to source lower costs drugs.                                                                                    
                                                                                                                                
2:44:50 PM                                                                                                                    
                                                                                                                                
BARRY CHRISTENSEN, ALASKA  PHARMACIST ASSOCIATION, KETCHIKAN                                                                    
(via teleconference),  spoke in  support of  the legislation                                                                    
on  behalf   of  the  association.  He   reported  that  the                                                                    
association   attempted  to   address   the  issue   through                                                                    
legislation  for  over  four   years.  The  membership  felt                                                                    
strongly  that the  pharmacies needed  the safety  assurance                                                                    
and a trusted source to  identify and verify wholesalers. He                                                                    
concurred  with   the  previous  statements   regarding  the                                                                    
inability  to  validate  wholesalers.   He  added  that  the                                                                    
national  association   for  the  drug   wholesale  industry                                                                    
reported its support  for the bill as  currently written. He                                                                    
reiterated that the licensure was  the standard practice. He                                                                    
appreciated the work of the  board and endorsed the need for                                                                    
the administrative position.                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED public testimony.                                                                                        
                                                                                                                                
Representative Wilson reiterated  her question regarding the                                                                    
distribution of  investigative costs under the  new license.                                                                    
Ms. Conway understood that any  investigatory cost was borne                                                                    
by  the  entity  being  investigated. She  voiced  that  the                                                                    
sponsors  envisioned that  investigations  would be  carried                                                                    
out by contracting out an  investigatory work to a qualified                                                                    
provider in the same  state the investigation was necessary.                                                                    
She stated if there was  a problem in California, they would                                                                    
contract with the  proper entity in California.  She did not                                                                    
envision  "sending  people  out  all across  the  nation  to                                                                    
inspect."     Representative     Wilson    remarked     that                                                                    
investigations had been "lopsided"  with most of the state's                                                                    
boards  increasing   licensing  fees.  She   reiterated  her                                                                    
question regarding  how a costly investigation  would affect                                                                    
the  boards  licensing  fees. Ms.  Conway  deferred  to  Ms.                                                                    
Chambers for the answer.                                                                                                        
                                                                                                                                
2:50:53 PM                                                                                                                    
                                                                                                                                
Ms. Chambers answered that the  division, which included all                                                                    
43  of  the  state's  license programs,  did  not  have  the                                                                    
statutory authority  to recoup investigative  costs directly                                                                    
from  the  entity  being   investigated.  She  relayed  that                                                                    
penalties and fines imposed were  deposited into the general                                                                    
fund. The  statutes required  that investigatory  costs were                                                                    
born  by  all  programs  under their  licensing  board.  The                                                                    
division   tried    to   determine   whether    there   were                                                                    
disproportionate investigatory  costs per license  type. She                                                                    
hypothesized  that if  investigative costs  for out-of-state                                                                    
wholesalers were significantly higher  than costs for Alaska                                                                    
pharmacies the division  would work with the  board to raise                                                                    
the wholesaler licensing  fees. She relayed that  HB 90 OCC.                                                                    
(Licensing  Fees;  Investigation  Costs) was  introduced  to                                                                    
remedy the  situation or there  might be legislation  in the                                                                    
future  to  address  the  problem.  However,  currently  the                                                                    
division could  not charge any investigative  fees or recoup                                                                    
investigative  costs;  the  money  was  recovered  from  the                                                                    
licensing  program.  Representative  Wilson  understood  the                                                                    
issue.   However,  she   wondered  how   wholesaler  license                                                                    
investigatory  costs would  be  split  under the  pharmacist                                                                    
licensure.   Ms.  Chambers   responded  that   AS  08.01.065                                                                    
required  that fees  were grouped  together but  allowed the                                                                    
discretion  for   the  board  to  increase   or  lower  fees                                                                    
according to  license type. However, there  was not explicit                                                                    
language that  separated license  type; the  statute covered                                                                    
all licenses regulated under a particular board.                                                                                
                                                                                                                                
Vice-Chair  Gara  reviewed   the  one  previously  published                                                                    
fiscal  impact note  from  the DCCED,  FN1  (CED). The  bill                                                                    
reflected the cost  recovered from board fees  in the amount                                                                    
of  $173.3  thousand in  FY  2019  and decreased  to  $157.5                                                                    
thousand in the out years.                                                                                                      
                                                                                                                                
2:55:14 PM                                                                                                                    
                                                                                                                                
Representative Kawasaki MOVED to  REPORT CSSB 37(FIN) out of                                                                    
committee   with   individual    recommendations   and   the                                                                    
accompanying fiscal note.                                                                                                       
                                                                                                                                
There being NO OBJECTION, it was so ordered.                                                                                    
                                                                                                                                
CSSB 37(FIN) was REPORTED out  of committee with a "do pass"                                                                    
recommendation  and  with   a  previously  published  fiscal                                                                    
impact note: FN2 (CED).                                                                                                         
                                                                                                                                
2:56:00 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
3:00:20 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
CS FOR SENATE BILL NO. 15(FIN)                                                                                                
                                                                                                                                
     "An  Act  relating  to   possession  of  an  electronic                                                                    
     smoking product  or a product containing  nicotine by a                                                                    
     minor  and to  selling or  giving a  product containing                                                                    
     nicotine or  an electronic smoking product  to a minor;                                                                    
     relating  to  business  license  endorsements  to  sell                                                                    
     cigarettes,   cigars,   tobacco,  products   containing                                                                    
     tobacco,  electronic  smoking   products,  or  products                                                                    
     containing  nicotine;  and  relating to  citations  for                                                                    
     certain    offenses   concerning    tobacco,   products                                                                    
     containing nicotine, or electronic smoking products."                                                                      
                                                                                                                                
3:00:20 PM                                                                                                                    
                                                                                                                                
TIM LAMKIN, STAFF, SENATOR GARY STEVENS, read a prepared                                                                        
statement:                                                                                                                      
                                                                                                                                
     For  anyone not  acquainted with  E-cigarettes, I  have                                                                    
     prepared a  brief slideshow, to play  in the background                                                                    
     as I  discuss the  purpose of  this bill.  These images                                                                    
     will  introduce,   or  remind,  you  of   their  common                                                                    
     components, sample  styles and  brands, what are  now a                                                                    
     multitude   of   exotic   flavorings,   and   marketing                                                                    
     strategies. This bill is  about protecting our children                                                                    
     from  becoming  addicted  to   nicotine.  It  is  about                                                                    
     clearly restricting  sales to  and possession  of these                                                                    
     products to youth under the age of 19.                                                                                     
                                                                                                                                
     The use  of electronic  cigarettes is an  exploding new                                                                    
     trend  in  smoking.  It  is  commonly  referred  to  as                                                                    
     "vaping."  Public health  advocacy,  with  the help  of                                                                    
     proven scientific evidence, is  winning the war against                                                                    
     tobacco.  Use  of  traditional  tobacco  cigarette  and                                                                    
     related products is clearly on  the decline. Tobacco is                                                                    
     a  dying  industry.   The  tobacco  manufacturers  have                                                                    
     acknowledged  this  trend  and are  responding  with  a                                                                    
     barrage  of new  fashionable  smoking  options, in  the                                                                    
     form  of  E-Cigarettes   and  related  modular  devices                                                                    
     designed to appeal to a wide range of consumers.                                                                           
                                                                                                                                
     Currently,  according  to  the US  Center  for  Disease                                                                    
     Control,  there are  in the  neighborhood of  4 million                                                                    
     middle and  high school  students using  these products                                                                    
     nationwide.  In Alaska,  the numbers  show about  15-25                                                                    
     percent of our students have  at least been exposed to,                                                                    
     if they  are not regularly using  E-cigarette products.                                                                    
     See, there is a loophole.                                                                                                  
                                                                                                                                
     While  it is  currently technically  illegal to  buy or                                                                    
     sell nicotine products to minors,  it is not illegal to                                                                    
     possess  E-Cig products.  Nor are  all of  the products                                                                    
     supposedly     containing     nicotine,     supposedly.                                                                    
     Furthermore, there  is currently  no provision  for law                                                                    
     enforcement  or  investigators   to  enforce  or  issue                                                                    
     violations  for   possession.  Nor  cite   vendors  for                                                                    
     selling E-products to minors,  the penalties are pretty                                                                    
    weak right now. And the industry and youth know it.                                                                         
                                                                                                                                
     An informal survey our  office commissioned last March,                                                                    
     asking Alaska school  teachers and administrators about                                                                    
     E-Cigarette use in our schools,  showed that 78 percent                                                                    
     of   educators  are   concerned  with   a  current   or                                                                    
     foreseeable problem with youth access  to and use of E-                                                                    
     cigarette products. Meanwhile,  the feds, public health                                                                    
     advocates,  state and  local  governments, schools  and                                                                    
     communities are all struggling to  catch up and respond                                                                    
     to this fast-moving industry.                                                                                              
                                                                                                                                
     There are a  lot of questions, perhaps  the biggest one                                                                    
     being,  "Are these  products safe?"  and "should  we be                                                                    
     tacitly  allowing   our  children   to  take   up  this                                                                    
     activity?"  The latest  research available,  not funded                                                                    
     by  big  tobacco,  shows   the  health  benefits  being                                                                    
     dubious  at best.  I would  concede that  the chemicals                                                                    
     used  in  E-cig  products  may be  safer  than  smoking                                                                    
     tobacco,  but  we would  should  not  be too  quick  to                                                                    
     accept these chemicals as themselves being safe.                                                                           
                                                                                                                                
     The FDA  has approved  of many  of the  known chemicals                                                                    
     used in  E-juice to be  safe enough for  ingestion, but                                                                    
     not  as   an  inhalant,  long-term  effects   are  just                                                                    
     beginning to be studied.  The most common and intuitive                                                                    
     approach  to addressing  a policy  on this  new era  of                                                                    
     smoking products  is to  treat them  in the  exact same                                                                    
     manner  as we  have  structured  tobacco policies.  And                                                                    
     that is what this bill does.                                                                                               
                                                                                                                                
     We start  with the commercial activity  and the vendors                                                                    
     selling the  products, to include  a requirement  for a                                                                    
     special  endorsement on  their  business license,  just                                                                    
     like tobacco  retailers. This  is the  only way  we can                                                                    
     effectively  identify who  is out  there selling  these                                                                    
     products, and  in turn provided state  agency authority                                                                    
     to monitor sales activity  and enforce violations, with                                                                    
     stiffer penalties.                                                                                                         
                                                                                                                                
     Currently, there  are several  hidden shops  out there,                                                                    
     selling  these products,  but by  the  nature of  their                                                                    
     business  name,  would  give  no  indication  they  are                                                                    
     selling E-products.                                                                                                        
     Examples: Tesoro in the  valley, Zooks downtown, Lola's                                                                    
     Filipino  restaurant and  mini grocery  store, and  the                                                                    
     Gas N  Go Coffee  hut, by  Western Auto.  Currently the                                                                    
     only way to find out  that these vendors are selling E-                                                                    
     products is by word of  mouth, or by driving around and                                                                    
     visiting random stores.                                                                                                    
                                                                                                                                
     In wrap up,  and before we get into the  nuts and bolts                                                                    
     of the bill,  I would like to take a  moment to address                                                                    
     some  of the  rhetoric you  will likely  be hearing  in                                                                    
     opposition to this  bill. You will likely  hear that we                                                                    
     do not need this bill,  that the feds already have laws                                                                    
     in  place restricting  youth access  and enforce  those                                                                    
     laws. The fact  is the Alcohol, Drug  Abuse, and Mental                                                                    
     Health  Administration   Reorganization  Act   of  1992                                                                    
     requires states  to enact and enforce  laws restricting                                                                    
     youth access to  tobacco products. The FDA  does have a                                                                    
     limited   enforcement  resources,   that  are   usually                                                                    
     contracted  out for  occasional compliance  checks, but                                                                    
     penalties consist  of little  more than  a slap  on the                                                                    
     wrist  for vendors.  I can  go into  some detail  about                                                                    
     federal enforcement if  you wish. But, we  do need this                                                                    
     bill   for   meaningful  monitoring   and   enforcement                                                                    
     purposes.                                                                                                                  
                                                                                                                                
     You  may  hear  that  the  paperwork  for  getting  the                                                                    
     tobacco  endorsement is  onerous and  hurts businesses.                                                                    
     Standard business license  applications are 4-pages and                                                                    
     takes about  10 minutes  to complete.  You check  a box                                                                    
     for the endorsement  and fill out a 5th  page. The cost                                                                    
     of  a  license  is  $50  per  year  and  $100  for  and                                                                    
     endorsement  per location,  which were  not onerous  or                                                                    
     damaging  to   business.  This  is  a   very  lucrative                                                                    
     business.                                                                                                                  
                                                                                                                                
     You  may hear  that these  products are  a miracle  for                                                                    
     smokers  trying to  quit,  which may  be  true in  some                                                                    
     cases, most typically for older  adults who have smoked                                                                    
     for many  years. However,  that is  entirely irrelevant                                                                    
     to  this bill,  as  adult smoking  habits  are not  the                                                                    
     target here.  We are trying to  prevent youngsters from                                                                    
     taking up the habit in the first place.                                                                                    
                                                                                                                                
     You may  hear that these  are not tobacco  products and                                                                    
     should be not be associated  with tobacco, but they are                                                                    
     related.  In  August  2017,  the  FDA  ruled  that  for                                                                    
     practical  and  regulatory   purposes,  these  products                                                                    
     should be  treated as tobacco  products. After  all, it                                                                    
     mimics  traditional smoking:  they  often  look like  a                                                                    
     cigarette, glow like one, and  produce smoke. It's just                                                                    
     another kind  of smoking.  However, they  are available                                                                    
     in  all  the  flavors  and  aromas  of  chocolate  chip                                                                    
     cookies, apple pie, or cotton  candy. You may hear that                                                                    
     these products  are harmless because they  don't always                                                                    
     contain Nicotine. That is unproven.                                                                                        
                                                                                                                                
     There  are  currently  no  requirements  to  verify  or                                                                    
     regulate  labelling and  marketing of  this E-juice.  A                                                                    
     2016 study  in North  Dakota found  that 51  percent of                                                                    
     the samples tested contained  higher levels of nicotine                                                                    
     than was  reported on the  labels, sometimes up  to 173                                                                    
     percent  more  than  was  labelled.  Even  this  little                                                                    
     bottle here, which I bought at  the Gas N Go for $1 (no                                                                    
     tax),  says "Zero  Nicotine" but  on the  side in  fine                                                                    
     print it reads "may  contain trace levels" of nicotine.                                                                    
     In  that same  North  Dakota study,  43  percent of  E-                                                                    
     liquid  containers  labelled   as  having  no  nicotine                                                                    
     actually  had significant  levels of  nicotine present.                                                                    
     We should  be skeptical of nicotine  labelling of these                                                                    
     products.                                                                                                                  
                                                                                                                                
     You  may  hear  that   everyone  wants  to  keep  these                                                                    
     products  out of  youths'  hands, but  it  is in  their                                                                    
     hands, and readily so.                                                                                                     
                                                                                                                                
     Most vendors  are legitimately making that  effort. But                                                                    
     some are not.  If this industry is  truly supportive of                                                                    
     restricting  youth access  to E-Cigarette  products and                                                                    
     nicotine, there should be no opposition to this bill.                                                                      
                                                                                                                                
     In closing, this  bill is about closing  a loophole. It                                                                    
     is  about  giving  our  state  agencies  the  tools  to                                                                    
     monitor and enforce these  restrictions. The urgency is                                                                    
     growing.  Senate  Bill 15  would  have  us approach  e-                                                                    
     cigarettes  with  severe  caution on  behalf  of  young                                                                    
     Alaskans.                                                                                                                  
                                                                                                                                
     Thank you  for allowing  us to place  the issue  on the                                                                    
     table.                                                                                                                     
                                                                                                                                
[The presenter played a silent video depicting vape                                                                             
products while making his presentation].                                                                                        
                                                                                                                                
3:13:19 PM                                                                                                                    
Representative  Kawasaki wondered  about  the comments  that                                                                    
teens introduced  to vaping  were more  likely to  develop a                                                                    
habit. He was unsure to  what extent that kids would develop                                                                    
an  addiction  to  vaping. He  wondered  whether  scientific                                                                    
evidence  existed  that  proved the  statement.  Mr.  Lamkin                                                                    
indicated there was a "growing  body of evidence that vaping                                                                    
was a "gateway activity." He  added that nicotine was proven                                                                    
to be addictive and frequently  engaging in an activity that                                                                    
delivered nicotine developed into a habit.                                                                                      
                                                                                                                                
Vice-Chair Gara  supported the bill.  He had a  question for                                                                    
Legislative  Legal  Services.  Vice-Chair Gara  referred  to                                                                    
page 2  of the bill  regarding punishment for  possession of                                                                    
the  product.  He  asked  about   the  fine  and  wanted  to                                                                    
determine  the   level  of  criminality  of   the  fine.  He                                                                    
indicated  that fines  were considered  "quasi-criminal." He                                                                    
wondered what  the levels of  fines and violations  were. He                                                                    
wanted to ensure  the fine for a 19 year  -old in possession                                                                    
of e-cigarettes was a very low-level offense.                                                                                   
                                                                                                                                
HILARY  MARTIN,  LEGISLATIVE  LEGAL  SERVICES,  JUNEAU  (via                                                                    
teleconference), reported that a  violation was defined as a                                                                    
non-criminal offense,  therefore a fine was  only a penalty.                                                                    
She detailed  that under AS  12.53.050 a default fine  for a                                                                    
violation was $500. The court  ruled that the fine could not                                                                    
be so high that it signified criminality.                                                                                       
                                                                                                                                
3:17:29 PM                                                                                                                    
                                                                                                                                
Vice-Chair Gara asked if either  a violation or a fine would                                                                    
end  up  on someone's  court  record.  Ms. Hillary  believed                                                                    
violations  would  show  up on  someone's  record  and  were                                                                    
posted  on Court  View. She  restated that  a fine  was only                                                                    
penalty. Vice-Chair  Gara asked  whether there  was anything                                                                    
lower than  a violation  that would  not appear  on records.                                                                    
Ms.  Martin  responded  that  a  violation  was  the  lowest                                                                    
penalty.  Vice-Chair Gara  asked  if the  type of  violation                                                                    
would be listed in the  records. Ms. Martin thought that the                                                                    
violation referenced the statute that was violated.                                                                             
                                                                                                                                
Mr. Lamkin  noted that the  provisions in the bill  were the                                                                    
existing  statute  for  cigarettes  and  tobacco.  The  bill                                                                    
inserted  e-cigarettes  into  existing  statute.  Vice-Chair                                                                    
Gara understood the bill.                                                                                                       
                                                                                                                                
Representative  Wilson  was   having  difficulty  with  non-                                                                    
nicotine  products and  the potential  for a  violation. She                                                                    
asked  whether  there were  products  that  did not  contain                                                                    
nicotine  that  were  included   in  the  bill.  Mr.  Lamkin                                                                    
answered  that it  was uncertain  whether the  products were                                                                    
truly  nicotine free.  Products that  were labeled  nicotine                                                                    
free  were  found  to  contain   nicotine  when  tested.  In                                                                    
addition,  current research  was  discovering the  "dubious"                                                                    
effects  of other  chemicals  contained  in the  e-cigarette                                                                    
"juice."  He  noted  that   all  juice  contained  Propylene                                                                    
Glycol, which was an anti-freeze  chemical. He believed that                                                                    
our bodies were  designed to "just breathe air"  and did not                                                                    
believe  the  products  were  safe  regardless  of  nicotine                                                                    
contents.                                                                                                                       
                                                                                                                                
3:22:49 PM                                                                                                                    
                                                                                                                                
Representative Wilson  asked why the  issue was not  left up                                                                    
to parental choice. Mr. Lamkin  maintained that the question                                                                    
applied  to  any  number  of   issues  related  to  parental                                                                    
involvement. He informed committee  members that a provision                                                                    
in the bill  allowed parents to "make  the accommodation" if                                                                    
the  Food   and  Drug  Administration  (FDA)   approved  the                                                                    
products   for  smoking   cessation,  which   it  had   not.                                                                    
Representative Wilson  asked if the product  was approved as                                                                    
a cessation product by the FDA,  it would not fall under the                                                                    
bill  and under  such circumstances  could a  parent provide                                                                    
the product  to their children.  Mr. Lamkin answered  in the                                                                    
affirmative and added that the  products had to be used only                                                                    
as a cessation product for the child.                                                                                           
                                                                                                                                
3:24:26 PM                                                                                                                    
                                                                                                                                
Representative Grenn  asked how many states  had "closed the                                                                    
loophole."  Mr.  Lamkin   responded  that  approximately  20                                                                    
states  had adopted  the  regulations. Representative  Grenn                                                                    
asked who regulated e-cigarette  liquid. Mr. Lamkin answered                                                                    
that the  FDA was just  beginning to regulate  the industry.                                                                    
Representative  Grenn  asked whether  the  hope  was that  a                                                                    
detailed  ingredient list  would  be  published. Mr.  Lamkin                                                                    
answered  in  the  affirmative.   He  heard  antidotes  that                                                                    
generic  55-gallon drums  of juice  could be  purchased from                                                                    
China and  an individual could  concoct their own  potion at                                                                    
home. Representative  Grenn referred  to Page 2,  Section 2.                                                                    
He wanted  to better understand  the section that  allowed a                                                                    
child  under 19  to  obtain an  e-cigarette  as a  cessation                                                                    
device from a pharmacist  without a prescription. Mr. Lamkin                                                                    
reiterated the  answer he gave to  Representative Wilson. He                                                                    
restated that the  product had to be approved by  the FDA as                                                                    
a cessation device, was marketed  as a cessation device, and                                                                    
was either prescribed  by a health care  professional, or by                                                                    
the  Department of  Health and  Social  Services (DHSS),  or                                                                    
provided  by the  parents  or  a pharmacist.  Representative                                                                    
Grenn  asked  whether  e-cigarettes  were  an  FDA  approved                                                                    
cessation device.  Mr. Lamkin  asserted that  in no  way the                                                                    
products were approved as a cessation devise by the FDA.                                                                        
                                                                                                                                
3:28:15 PM                                                                                                                    
                                                                                                                                
Representative Tilton  asked whether  someone under  the age                                                                    
of 19 who was in  possession of e-cigarettes was a violation                                                                    
and  the  highest  charge  one  would  receive.  Mr.  Lamkin                                                                    
stressed that the  real target of the bill  were the vendors                                                                    
and  the  bill  was  not  about  giving  teenagers  tickets.                                                                    
Representative   Tilton  relayed   a  story   from  personal                                                                    
experience.  She  asked if  he  had  seen the  devices  that                                                                    
dispensed vitamins  in a type  of vaping devise.  Mr. Lamkin                                                                    
answered in  the negative.  He suggested  that manufacturers                                                                    
would   find   creative   ways  to   market   the   devices.                                                                    
Representative  Tilton  confirmed   that  the  devices  were                                                                    
available with vitamins.                                                                                                        
                                                                                                                                
3:32:08 PM                                                                                                                    
                                                                                                                                
Representative   Kawasaki  ascertained   that  currently   a                                                                    
business that  did not sell  tobacco products could  sell e-                                                                    
cigarettes.  Mr. Lamkin  responded  that  the bill  provided                                                                    
endorsements that enabled vendors  to sell only e-cigarettes                                                                    
or only  tobacco products  or both.  Representative Kawasaki                                                                    
surmised  that  a  business   could  obtain  an  e-cigarette                                                                    
endorsement and  not sell  any products  containing nicotine                                                                    
and would  be licensed  separately than  a vaping  shop that                                                                    
would  sell   both.  Mr.   Lamkin  replied   that  "nicotine                                                                    
products" was  the "distinction" in the  bill. He delineated                                                                    
that  all the  vaping "hardware"  was considered  a nicotine                                                                    
product.  Representative Kawasaki  asked whether  businesses                                                                    
that were currently selling the  vaping equipment and juices                                                                    
that did not contain nicotine  and no other tobacco products                                                                    
would  need  an  endorsement   to  continue  selling  vaping                                                                    
products under the bill. Mr.  Lamkin clarified that the bill                                                                    
offered  2  separate  endorsements;   one  was  for  tobacco                                                                    
products  and  the  other  was   for  e-cigarettes  and  its                                                                    
components; pens  and juice regardless of  whether the juice                                                                    
contained nicotine.                                                                                                             
                                                                                                                                
3:35:20 PM                                                                                                                    
Representative Kawasaki  asked whether underage  youth could                                                                    
legally purchase a bong in  a vape shop. Mr. Lamkin believed                                                                    
bongs were associated with the  consumption of marijuana and                                                                    
was not the subject of  SB 15. Representative Kawasaki asked                                                                    
whether a  youth could purchase  a tobacco pipe.  Mr. Lamkin                                                                    
replied that  pipes were treated  like tobacco  products and                                                                    
purchases were  restricted to individuals under  19 years of                                                                    
age and reiterated that it  was similar to purchasing vaping                                                                    
hardware which would  be restricted to youth  under 19 years                                                                    
old.                                                                                                                            
                                                                                                                                
Representative  Guttenberg reiterated  similar questions  as                                                                    
the  previous inquiry  regarding  the  vaping hardware.  Mr.                                                                    
Lamkin restated  that the all  the products  associated with                                                                    
vaping  was  covered  under the  bill  and  restricted  from                                                                    
purchase  for  youth under  the  age  of 19.  Representative                                                                    
Guttenberg assumed  the devices  were preloaded.  Mr. Lamkin                                                                    
responded  that   not  all  devises  were   pre-loaded;  the                                                                    
components  were   modular.  Therefore,  the   hardware  was                                                                    
regulated.                                                                                                                      
                                                                                                                                
3:38:47 PM                                                                                                                    
                                                                                                                                
Co-Chair Seaton OPENED public testimony.                                                                                        
                                                                                                                                
3:38:59 PM                                                                                                                    
                                                                                                                                
ALLISON  KULAS,   EXECUTIVE  DIRECTOR,  ADVISORY   BOARD  OF                                                                    
ALCOHOLISM AND DRUG ABUSE, related  that in her previous job                                                                    
she worked as  a Tobacco Regulatory Science  Fellow with the                                                                    
National Academy  of Medicine  placed in  the Food  and Drug                                                                    
Administration  Center for  Tobacco  Products.  She was  not                                                                    
speaking on behalf of the  FDA but used the knowledge gained                                                                    
to "protect Alaska's children." She  believed that SB 15 was                                                                    
"an important step to prevent  youth from tobacco products."                                                                    
Research  had proven  that  nicotine  was highly  addictive,                                                                    
harmful  to teenager's  brain  development  and exposure  to                                                                    
nicotine left  them more susceptible  to nicotine  and other                                                                    
substance additions.  Nicotine also reduced  impulse control                                                                    
and  was  attributed  to  mood  disorders  and  deficits  in                                                                    
attention  and cognition.  Nicotine in  any form  was unsafe                                                                    
for  use,  yet  e-cigarettes  were the  most  commonly  used                                                                    
tobacco products.  A newly  released report  discovered that                                                                    
e-cigarettes  increased   the  risk  of   using  combustible                                                                    
cigarettes.  She commented  that SB  15 was  consistent with                                                                    
the   current  laws   that   restricted  tobacco   products.                                                                    
Preventing  illegal sales  to minors  protected the  nations                                                                    
youth from  the harmful  effects of  nicotine. Alaska  had a                                                                    
proven track  record of effective enforcement  of businesses                                                                    
with a tobacco endorsement.  The bill clarified the business                                                                    
rules and  restrictions on the  sale of tobacco  products by                                                                    
including e-cigarettes in the  existing statutes and further                                                                    
protected Alaska's youth. She urged  member to vote in favor                                                                    
of the bill.                                                                                                                    
                                                                                                                                
Representative  Grenn asked  whether  evidence existed  that                                                                    
tobacco companies  were manufacturing  e-cigarette products.                                                                    
Ms.  Kulas responded  that  the  FDA did  not  know all  the                                                                    
manufacturers  of  the  products. She  indicated  that  some                                                                    
existing  tobacco  companies  were  marketing  the  products                                                                    
along with  small businesses. Representative Grenn  asked if                                                                    
the  marketing of  e-cigarette were  targeted at  youth. Ms.                                                                    
Kulas answered in the affirmative  and expounded that the e-                                                                    
cigarette  advertising was  like cigarette  advertising. The                                                                    
FDA had  spent ample funding to  develop marketing campaigns                                                                    
for youth to counter  the advertising exposure. She reported                                                                    
that in  October 2017 the  FDA developed a  digital campaign                                                                    
aimed at e-cigarette youth prevention.                                                                                          
                                                                                                                                
3:43:51 PM                                                                                                                    
                                                                                                                                
Representative  Guttenberg wondered  whether there  were any                                                                    
other  products  that  people ingested  without  any  safety                                                                    
standards  because   it  appeared  that   e-cigarettes  were                                                                    
totally  unregulated.  He   wondered  whether  any  existing                                                                    
standards applied to e-cigarettes  and confirmed what was in                                                                    
the products. Ms.  Kulas answered that the FDA  did not know                                                                    
what  ingredients   were  in  the  products.   The  FDA  was                                                                    
currently  accepting applications  that included  the liquid                                                                    
product  ingredient   list  and  FDA's   toxicologists  were                                                                    
attempting to  identify what was  in the product and  if the                                                                    
ingredients were safe. She noted  that some ingredients when                                                                    
ingested were designated by the  FDA as Generally Recognized                                                                    
As Safe (GRAS) but it was  unknown if they were harmful when                                                                    
inhaled.                                                                                                                        
                                                                                                                                
3:45:32 PM                                                                                                                    
                                                                                                                                
KRISTIN  COX,  GRANT  COORDINATOR,  TOBACCO  PREVENTION  AND                                                                    
CONTROL,  NATIONAL COUNCIL  ON  ALCOHOLISM DRUG  DEPENDENCE,                                                                    
JUNEAU,  supported  SB  15.   She  shared  some  statistical                                                                    
information. She  indicated that flavors  attracted children                                                                    
and  81 percent  of  youth tobacco  users  chose a  flavored                                                                    
product as their first product  and 25 percent believed that                                                                    
flavored  tobacco products  were safer.  However, they  were                                                                    
unsafe because  they initiated youth into  cigarette smoking                                                                    
and nicotine addiction. Three  recently published studies in                                                                    
medical journals determined that youth that used e-                                                                             
cigarettes were 4  to 7 times more likely  to become tobacco                                                                    
smokers. She added that the  effect was "unilateral" meaning                                                                    
cigarette smoking was not  associated with increased vaping.                                                                    
She concluded that restricting  youth access to e-cigarettes                                                                    
would reduce youth smoking and adult addiction rates.                                                                           
                                                                                                                                
3:47:23 PM                                                                                                                    
                                                                                                                                
BEVERLY  WOOLEY, SELF,  JUNEAU, was  retired but  previously                                                                    
served  as the  Director of  the Division  of Public  Health                                                                    
with the  state and  the municipality.  She related  that in                                                                    
the 1990's  the state knew  that large numbers  of retailers                                                                    
were selling  tobacco products  to children  due to  lack of                                                                    
accountability.  The state  instituted  enforcement and  the                                                                    
number of  incidents decreased to 5  percent. She emphasized                                                                    
that SB 15 would establish  the same laws that regulated the                                                                    
tobacco  industry for  e-cigarettes and  close the  loophole                                                                    
and provide  enforcement. She underscored that  edibles that                                                                    
were  considered healthy  were  much  different when  turned                                                                    
into an  aerosol or  combusted and  inhaled into  the lungs.                                                                    
She noted a state-wide study  where researchers went to some                                                                    
of  the "vape"  shops and  found they  were more  likely (36                                                                    
percent  of shops)  to sell  e-cigarettes to  children while                                                                    
established  retailers only  sold the  product 5  percent of                                                                    
the time  to children. She believed  in protecting children.                                                                    
She urged members to move the bill out of committee.                                                                            
                                                                                                                                
3:50:06 PM                                                                                                                    
                                                                                                                                
JAMIE  MORGAN, AMERICAN  HEART ASSOCIATION,  AMERICAN STROKE                                                                    
ASSOCIATION,  JUNEAU, spoke  in  support of  SB  15 for  the                                                                    
associations  and  urged  members  to  move  the  bill  from                                                                    
committee.  She reiterated  that  e-cigarettes were  harmful                                                                    
and  unregulated.  She reported  that  in  the 2016  surgeon                                                                    
general report  on e-cigarette  use showed  that e-cigarette                                                                    
use in  children increased the likelihood  of cigarette use.                                                                    
She  related that  the associations  supported including  e-                                                                    
cigarettes in laws that restricted access to children.                                                                          
                                                                                                                                
3:51:39 PM                                                                                                                    
                                                                                                                                
JOE  DARNELL, MANAGER,  YOUTH  TOBACCO ENFORCEMENT  PROGRAM,                                                                    
DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES, ANCHORAGE  (via                                                                    
teleconference), related that he  was the Chief Investigator                                                                    
for Tobacco Enforcement  for the state. He  spoke in support                                                                    
of the bill.  He cited the states statewide  vape shop study                                                                    
and reported that  in 2016 he encountered a  26 percent sell                                                                    
rate  for vaping  products versus  5.4  percent for  tobacco                                                                    
products;  in Anchorage  the sell  rate was  50 percent.  He                                                                    
added  that in  2017 the  statewide sell  rate jumped  to 35                                                                    
percent.  He  supported  the bill  and  asked  for  member's                                                                    
support.                                                                                                                        
                                                                                                                                
3:53:40 PM                                                                                                                    
                                                                                                                                
ALEX   MCDONALD,  SELF,   FAIRBANKS  (via   teleconference),                                                                    
testified  against the  bill. He  shared that  he owned  the                                                                    
vape  shop Ice  Fog Vapor.  He declared  that he  heard much                                                                    
misinformation  in  the  prior  testimony.  He  stated  that                                                                    
federal law  required him  to age  verify customers  for any                                                                    
vape equipment.  He countered that  since the  previous fall                                                                    
FDA  instituted registering  and  labeling requirements.  He                                                                    
emphasized  that  federal  regulations were  the  norm  that                                                                    
considered  vape products  tobacco products.  He noted  that                                                                    
compliance  checks   were  carried   out  for   the  federal                                                                    
government through a contracted  vendor. He opined that "new                                                                    
rules"  were not  necessary but  better  enforcement of  the                                                                    
existing  rules were.  He related  that the  American Cancer                                                                    
Society recommended that long time  smokers switch to a less                                                                    
harmful product  such as vapor  products. He  mentioned that                                                                    
the FDA was  engaged in studies related to the  safety of e-                                                                    
cigarettes.  He concluded  that everything  in the  bill was                                                                    
covered under federal tobacco law.                                                                                              
                                                                                                                                
Representative  Grenn   asked  whether   he  knew   all  the                                                                    
ingredients  in  the juice.  Mr.  McDonald  answered in  the                                                                    
affirmative and maintained that  propylene glycol acted as a                                                                    
carrier and  was found in  asthma inhalers and  oxygen tanks                                                                    
and had been  used for a long time. He  added that vegetable                                                                    
glycerin and  food flavorings  had also  "been around  for a                                                                    
long time."  Some vape  juice did  not contain  nicotine. He                                                                    
claimed that  propylene glycol was  added to hospital  H Vac                                                                    
systems  to keep  airborne  infections down.  Representative                                                                    
Grenn asked why the label  read that the product may contain                                                                    
nicotine. Mr.  McDonald responded  that the labeling  was an                                                                    
FDA   requirement.  Representative   Grenn  asked   why  the                                                                    
nicotine labeling would be  necessary. Mr. McDonald answered                                                                    
that there was a very low chance of cross contamination.                                                                        
                                                                                                                                
3:59:53 PM                                                                                                                    
Representative Wilson  mentioned the  age requirement  of 19                                                                    
for  purchasing  vape products  and  asked  whether she  was                                                                    
correct. Mr. McDonald answered in the affirmative.                                                                              
                                                                                                                                
Representative  Kawasaki   asked  if   the  bill   was  more                                                                    
restrictive than federal law.  Mr. McDonald thought the bill                                                                    
seemed redundant  to federal law,  although federal  law did                                                                    
not  require   licensing.  He  thought  SB   15  provided  a                                                                    
duplicate  service  since  the  federal  law  required  full                                                                    
enforcement  authority and  compliance  checks. He  surmised                                                                    
that the  legislation was more  of a licensing law  than one                                                                    
designed  to   protect  children.  He  purported   that  the                                                                    
prevalent source  for youth  tobacco products  was "social";                                                                    
supplied   by  older   friends  or   family.  Representative                                                                    
Kawasaki suggested  that the state  survey showed  that many                                                                    
vape  shops were  not in  compliance with  federal laws.  He                                                                    
asked for  comment. Mr. McDonald  felt that it did  not make                                                                    
sense  to make  new  laws  when the  current  laws were  not                                                                    
enforced.                                                                                                                       
                                                                                                                                
Vice-Chair  Gara had  been told  numerous  times that  until                                                                    
federal laws were implemented the heating element in e-                                                                         
cigarettes   could   contain   asbestos  and   other   toxic                                                                    
materials.  Mr.   McDonald  replied  in  the   negative.  He                                                                    
explained  that the  heating elements  used  Kanthal A-1,  a                                                                    
resistance  heating wire  found  in toaster  ovens and  hair                                                                    
dryers and the  wicking material was organic  cotton. He did                                                                    
not know where it was even possible to purchase asbestos.                                                                       
                                                                                                                                
4:03:38 PM                                                                                                                    
                                                                                                                                
JENNIFER  CHIKOYAK,  SELF, ANCHORAGE  (via  teleconference),                                                                    
spoke  in   support  of  the   bill.  She  spoke   from  the                                                                    
perspective of a parent and  shared that she tried to "guide                                                                    
her  son  into  making  good choices"  and  she  valued  the                                                                    
assistance  that  tobacco  and alcohol  laws  supplied.  She                                                                    
"appreciated  the  state  stepping  in  and  regulating"  e-                                                                    
cigarettes  like other  tobacco  products.  She favored  the                                                                    
state's penalties for tobacco sales  to minors and wanted to                                                                    
close the loophole for e-cigarettes.                                                                                            
                                                                                                                                
4:04:59 PM                                                                                                                    
                                                                                                                                
BETTY  MACTAVISH, SELF,  KODIAK (via  teleconference), spoke                                                                    
in favor  of the  bill. She  shared that  she was  a retired                                                                    
school teacher  and was currently a  substitute teacher. She                                                                    
stated that  e-cigarette use among youth  was increasing and                                                                    
characterized e-cigarettes  as an  "addictive tool"  for the                                                                    
tobacco  industry rather  than a  "quit" tool.  She observed                                                                    
that youth  who would not use  conventional tobacco products                                                                    
were attracted  to vaping, and  she characterized  vaping as                                                                    
"the new  cool thing to  do." She noted that  toxic aerosols                                                                    
and  chemicals were  "hidden" in  flavored vape  juiced. She                                                                    
supported protecting  the state's  youth through  passage of                                                                    
the bill.                                                                                                                       
                                                                                                                                
4:07:12 PM                                                                                                                    
                                                                                                                                
MARGE STONEKING,  AMERICAN LUNG ASSOCIATION,  ANCHORAGE (via                                                                    
teleconference), spoke  in support of the  bill. She relayed                                                                    
that   almost  all   e-cigarette   contained  nicotine   and                                                                    
chemicals and  toxins that  were unsafe  to inhale.  The FDA                                                                    
delayed  review of  ingredients  and  any potential  harmful                                                                    
effects  of  e-cigarettes  until  2022  leaving  unregulated                                                                    
products.  She thought  members  were aware  of the  harmful                                                                    
effects  of  nicotine  on   youth's  brain  development  and                                                                    
functioning and the increase in  teen use. She reported that                                                                    
the FDA  had performed some  product testing but  there were                                                                    
thousands  of  ingredients  that   varied  from  product  to                                                                    
product.  The  testing   had  discovered  that  "ultra-fine"                                                                    
particles were  inhaled deep into  the lungs  like diacetyl,                                                                    
which  was  a flavorant  linked  to  lung disease,  volatile                                                                    
organic  compounds,  and  heavy   metals.  She  argued  that                                                                    
whether  the product  contained nicotine  or not  there were                                                                    
inherent risks  in the use  of the products. The  bill would                                                                    
hold vendors accountable. She felt  that the bill would also                                                                    
assist in  changing the public perception  that the products                                                                    
were safe.                                                                                                                      
                                                                                                                                
4:10:41 PM                                                                                                                    
                                                                                                                                
PAMELA  HOWARD,  KENAI  PENINSULA BOROUGH  SCHOOL  DISTRICT,                                                                    
SOLDOTNA (via  teleconference), spoke  in support of  SB 15.                                                                    
She had  been a school  nurse for  over 30 years  and taught                                                                    
students about  the harmful effects of  vaping. She reported                                                                    
that  in her  school district  principles saw  a significant                                                                    
increase  in  students  use of  vaping  products.  The  bill                                                                    
addressed students  carrying devices. She believed  that the                                                                    
students  carrying  the devices  showed  intent  to use  the                                                                    
devise  and possession  should be  prohibited.  She had  not                                                                    
seen  vitamin   e-cigarette  products.  She  spoke   of  the                                                                    
importance  of educating  students  on the  health risks  of                                                                    
using the products.                                                                                                             
                                                                                                                                
4:13:37 PM                                                                                                                    
                                                                                                                                
KATIE STEFFENS, SELF,  ANCHORAGE (via teleconference), spoke                                                                    
in support  of the  bill. She  related that  e-cigarette use                                                                    
contributed to  harmful brain  development and  addiction in                                                                    
youth. She  spoke about the  other aerosol  ingredients that                                                                    
were smaller  in particulate composition and  the associated                                                                    
risks of inhaling those particulates.  She reported that the                                                                    
Philip Morris  tobacco company was  promoting a  "smoke free                                                                    
future" by  supporting the  use of  vape products.  She felt                                                                    
that  vaping would  become a  future trend  making the  bill                                                                    
timelier. She urged for passage of the bill.                                                                                    
                                                                                                                                
4:15:32 PM                                                                                                                    
                                                                                                                                
JOSHUA SILAS, SELF, SOLDOTNA  (via teleconference), spoke in                                                                    
opposition SB  15. He  worked at Mapes  Vapes vape  shop. He                                                                    
agreed that the  bill was redundant and was a  waste of time                                                                    
and state  government resources.  He purported that  the FDA                                                                    
had  addressed regulating  vaping products  and carried  out                                                                    
enforcement.  Alaskan vape  shops  were  compliant with  the                                                                    
federal regulations.  His shop  was committed to  offering a                                                                    
healthy alternative  to smoking  and helped 554  adults quit                                                                    
smoking in the last 26 months.  He wondered what the cost of                                                                    
enforcement was  to the state.  He believed that  "there was                                                                    
no reason" to move forward with the bill.                                                                                       
                                                                                                                                
4:18:16 PM                                                                                                                    
                                                                                                                                
Co-Chair Foster CLOSED public testimony on SB 15.                                                                               
                                                                                                                                
4:18:49 PM                                                                                                                    
                                                                                                                                
Co-Chair  Foster asked  whether  Mr. Darnell  had heard  the                                                                    
testimony of  Mr. McDonald regarding  the redundancy  of the                                                                    
Alaska law and if he had any comments.                                                                                          
                                                                                                                                
Mr. Darnell reported that he  heard criticism that the state                                                                    
did  the  requirement check  study  but  did not  carry  out                                                                    
enforcement. He noted that the  state did not currently have                                                                    
enforcement  authority.  He  reported  that  the  study  was                                                                    
performed  as a  baseline  to determine  what was  necessary                                                                    
when enforcement  became law.  He declared  that he  did not                                                                    
know of  any FDA compliance  checks that had  been conducted                                                                    
in vape shops.  He had only heard of them  being carried out                                                                    
in convenience  stores. He  informed committee  members that                                                                    
the  fiscal note  would be  zero and  the compliance  checks                                                                    
could be done without any  additional costs to the state. He                                                                    
had had  numerous complaints from parents  about where their                                                                    
children had been  able to obtain vape products.  He knew of                                                                    
vape shops that operated  legally but others knowingly broke                                                                    
the law.  He relayed  anecdotal evidence  that when  he went                                                                    
into a  tobacco only shop  that was  not smoke free  and was                                                                    
subjected to tobacco smoke he  had some nasal discomfort and                                                                    
his clothes  smelled but when he  went into a vape  shop for                                                                    
15 or 20  minutes and people were vaping it  left him with a                                                                    
burning sensation in his chest.                                                                                                 
                                                                                                                                
Co-Chair  Foster  indicated  that  amendments  were  due  by                                                                    
tomorrow at 5:00 pm.                                                                                                            
                                                                                                                                
SB  15  was   HEARD  and  HELD  in   committee  for  further                                                                    
consideration.                                                                                                                  
                                                                                                                                
Co-Chair  Foster indicated  that SB  155 would  be moved  to                                                                    
tomorrow morning's meeting at 9:00 am.                                                                                          
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
4:23:58 PM                                                                                                                    
                                                                                                                                
The meeting was adjourned at 4:24 p.m.                                                                                          
                                                                                                                                

Document Name Date/Time Subjects
SB37 Supporting Document Partnership for SAFEMEDICINES 2018.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB 37 (FIN) vsn N Sponsor Statement 2-8-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Supporting Document Title II Drug Quality and Security Act of 2013.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Supporting Document - Why License Board of Pharmacy.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB37(FIN) Sectional Overview 2-8-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB37(FIN) Summary of Changes 2-15-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Support Bd of Pharmacy 3-5-17.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB37 (FIN) Fact Sheet - Review 2-15-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Support AKPhA 3-3-17.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
002_SB015_E-Cigs_SponsorStatement.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
008_SB015_E-Cigs Poison the Airways.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
009_SB015_E-Cigs_AAAS_AsDangerousAsTobacco.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
013_SB015_E-Cigs_EXCERPTed_Surgeon General Report_E-Cigs Use Among Youth 2016.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
014_SB015_E-Cigs_UnivPittsburgh_E-Cigarettes Promote Smoking.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
015_SB015_E-Cigs_NationalAcademiesScience_EffectsOfE-Cigs.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
016_SB015_E-Cig Sales to AK Youth 2016.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB 155 State AMC Bond Requirements.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
017_SB015_E-Cig Sales to AK Youth 2017.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB 155 Letter of Support Wells Fargo 1.29.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 Letter of Support REVAA 1.30.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 Letter of Support Alaska Chamber 2.8.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
018_SB015_E-Cigs_AK Survey_Results_06April2017.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
019_SB015_E-Cigs_ABC_News_SameToxicChemsAsTobacco.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB015_E-Cigs_Explanation of Changes From Version T to I.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB015_E-Cigs_Sectional_VersionI_02April2018.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB015_E-Cigs_Support Letter_ALPHA.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
HCS CSSB 155(L&C) Explanation of Changes V.A to V.N.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 Letter of Support Alaska Bankers Association 2.1.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
HCS CSSB 155(L&C) Sectional Summary.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 DCCED AMC Extension Request.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 AMC Registry Fees - Lexology Article.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 AMC Framework - Lexology Article.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
HCS CSSB 155(L&C) Sponsor Statement.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB015_E-Cigs_YouthAccess_SupportLetter_MatSuHealthFoundation.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB 105 HB 353 DHSS letter for HFIN 041318.pdf HFIN 4/12/2018 1:30:00 PM
HB 353
SB 105