02/17/2025 03:15 PM House LABOR & COMMERCE
| Audio | Topic |
|---|---|
| Start | |
| SB15 | |
| HB49 | |
| HB74 | |
| Adjourn |
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 15 | TELECONFERENCED | |
| += | HB 49 | TELECONFERENCED | |
| += | HB 74 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
ALASKA STATE LEGISLATURE
HOUSE LABOR AND COMMERCE STANDING COMMITTEE
February 17, 2025
3:20 p.m.
MEMBERS PRESENT
Representative Zack Fields, Co-Chair
Representative Carolyn Hall, Co-Chair
Representative Ashley Carrick
Representative Robyn Niayuq Burke
Representative Julie Coulombe
Representative David Nelson
MEMBERS ABSENT
Representative Dan Saddler
OTHER LEGISLATORS PRESENT
Representative Frank Tomaszewski
COMMITTEE CALENDAR
SENATE BILL NO. 15
"An Act relating to the sale of alcohol; relating to the posting
of warning signs for alcoholic beverages; and providing for an
effective date."
- MOVED HCS SB 15(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 49
"An Act relating to tobacco, tobacco products, electronic
smoking products, nicotine, and products containing nicotine;
raising the minimum age to purchase, exchange, or possess
tobacco, a product containing nicotine, or an electronic smoking
product; relating to the tobacco use education and cessation
fund; relating to the taxation of electronic smoking products
and vapor products; and providing for an effective date."
- MOVED CSHB 49(L&C) OUT OF COMMITTEE
HOUSE BILL NO. 74
"An Act establishing the crime of airbag fraud."
- MOVED HB 74 OUT OF COMMITTEE
PREVIOUS COMMITTEE ACTION
BILL: SB 15
SHORT TITLE: ALCOHOL: SALE, WARNING SIGNS
SPONSOR(s): SENATOR(s) MERRICK
01/10/25 (S) PREFILE RELEASED 1/10/25
01/22/25 (S) READ THE FIRST TIME - REFERRALS
01/22/25 (S) L&C
01/24/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
01/24/25 (S) Heard & Held
01/24/25 (S) MINUTE(L&C)
01/27/25 (S) L&C AT 1:30 PM BELTZ 105 (TSBldg)
01/27/25 (S) Moved SB 15 Out of Committee
01/27/25 (S) MINUTE(L&C)
01/28/25 (S) L&C RPT 4DP
01/28/25 (S) DP: BJORKMAN, MERRICK, GRAY-JACKSON,
YUNDT
02/06/25 (H) HSS AT 3:15 PM DAVIS 106
02/06/25 (H) <Bill Hearing Canceled>
02/10/25 (S) TRANSMITTED TO (H)
02/10/25 (S) VERSION: SB 15
02/12/25 (H) READ THE FIRST TIME - REFERRALS
02/12/25 (H) L&C
02/17/25 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 49
SHORT TITLE: TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX
SPONSOR(s): REPRESENTATIVE(s) HANNAN
01/22/25 (H) READ THE FIRST TIME - REFERRALS
01/22/25 (H) L&C, FIN
01/29/25 (H) L&C AT 3:15 PM BARNES 124
01/29/25 (H) Heard & Held
01/29/25 (H) MINUTE(L&C)
02/05/25 (H) L&C AT 3:15 PM BARNES 124
02/05/25 (H) <Bill Hearing Canceled>
02/17/25 (H) L&C AT 3:15 PM BARNES 124
BILL: HB 74
SHORT TITLE: CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
SPONSOR(s): REPRESENTATIVE(s) TOMASZEWSKI
01/29/25 (H) READ THE FIRST TIME - REFERRALS
01/29/25 (H) L&C, JUD
02/07/25 (H) L&C AT 9:00 AM BARNES 124
02/07/25 (H) -- MEETING CANCELED --
02/12/25 (H) L&C AT 3:15 PM BARNES 124
02/12/25 (H) Heard & Held
02/12/25 (H) MINUTE(L&C)
02/17/25 (H) L&C AT 3:15 PM BARNES 124
WITNESS REGISTER
DANA WALUKIEWICZ, Chair
Alcohol Beverage Control Board
Anchorage, Alaska
POSITION STATEMENT: Testified in support of SB 15 with some
recommendations for change.
LEENA EDAIS, Co-President
Youth Encouraging Alaskans' Health
Rural Alaska Community Action Program, Inc.
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony in support of HB 49.
DOROTHY ARMSTRONG, Co-President
Youth Encouraging Alaskans' Health
Rural Alaska Community Action Program, Inc.
Anchorage, Alaska
POSITION STATEMENT: Gave invited testimony in support of HB 49.
TRACY MULVENON, Assistant Superintendent
North Slope Borough School District
Utqiagvik, Alaska
POSITION STATEMENT: Gave invited testimony in support of HB 49.
MARK SUNDQUIST, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in opposition to HB 49.
TERESA WROBEL, Policy & Advocacy Program Specialist
Alaska Children's Trust
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 49.
CARRIE NYSSEN, Vice President
Advocacy and Air Quality
American Lung Association
Vancouver, Washington
POSITION STATEMENT: Testified in support of HB 49.
JANICE PARK, representing self
Juneau, Alaska
POSITION STATEMENT: Testified during the hearing on HB 49.
ALEX MCDONALD, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified during the hearing on HB 49.
VALERIA DELGADO-LOPEZ, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 49.
JESSI WALTON, representing self
Fairbanks, Alaska
POSITION STATEMENT: Testified in opposition to HB 49.
AARON OSTERBACK, representing self
Anchorage, Alaska
POSITION STATEMENT: Testified in support of HB 49.
SHAUN D'SYLVA, Owner
Fatboy Vapors
Seattle, Washington
POSITION STATEMENT: Testified in opposition to HB 49.
REPRESENTATIVE SARA HANNAN
Alaska State Legislature
Juneau, Alaska
POSITION STATEMENT: As prime sponsor answered questions during
the hearing on HB 49.
ACTION NARRATIVE
3:20:43 PM
CO-CHAIR ZACK FIELDS called the House Labor and Commerce
Standing Committee meeting to order at 3:20 p.m.
Representatives Nelson, Coulombe, Burke, Carrick, Hall, and
Fields were present at the call to order.
SB 15-ALCOHOL: SALE, WARNING SIGNS
3:21:05 PM
CO-CHAIR FIELDS announced that the first order of business would
be SENATE BILL NO. 15, "An Act relating to the sale of alcohol;
relating to the posting of warning signs for alcoholic
beverages; and providing for an effective date."
3:21:32 PM
CO-CHAIR FIELDS opened public testimony on SB 15.
3:21:47 PM
DANA WALUKIEWICZ, Chair, Alcohol Beverage Control Board (ABC),
began by stating that SB 15 is similar to a bill that passed the
prior year just minutes after the midnight deadline, thus
killing that legislation. He stated that ABC voted unanimously
in favor of the previous legislation last year and again voted
unanimously in favor of SB 15.
MR. WALUKIEWICZ made some requests for changes to SB 15. He
asked that the effective date of the proposed legislation be
changed to immediate with the exception of the provisions for
the signage, which he requested be changed to take effect three
months after passage to ensure adequate time for the printing
and distribution of the signage to the licensees. He stated
that, without this exception, adoption of the proposed
legislation would result in automatic noncompliance by the
licensees. He concluded by offering his belief that SB 15 is a
good bill.
3:24:02 PM
REPRESENTATIVE CARRICK requested that Mr. Walukiewicz repeat
which provision would impact his work.
MR. WALUKIEWICZ stated that there is language in the proposed
legislation requiring updates to warning signs posted for
alcoholic beverages. He explained that the Alcohol & Marijuana
Control Office (AMCO) is responsible for the printing and
distribution of the signage. He stated that there are many
licensees in remote areas, and it would take a while to get
signs printed and distributed to all licensees. He commented
AMCO would like to avoid a situation where, upon passage of the
proposed legislation, a number of licensees would automatically
become noncompliant. However, he stated that ABC and AMCO is
very supportive of the proposed legislation becoming effective
immediately for the purpose of allowing 18- to 20-year-olds to
serve alcoholic beverages. He stated the industry is
experiencing a shortage of qualified labor and ABC and AMCO
would like to allow returning college students to work for the
hospitality industry.
3:26:10 PM
CO-CHAIR FIELDS, after ascertaining that there was no one else
who wished to testify, closed public testimony on SB 15.
CO-CHAIR FIELDS moved to adopt Amendment 1 to SB 15, labeled 34-
LS01063\A.1, C. Radford, 2/17/25, which read as follows:
Page 2, following line 17:
Insert new bill sections to read:
"* Sec. 3. AS 04.09.220(d) is amended to read:
(d) Alcoholic beverages sold under a club license may be purchased only
by
(1) members of the club and their families;
(2) widows or widowers of deceased members of the club who
have been accorded club privileges; [AND]
(3) military personnel on active duty who are extended the
privilege by patriotic organizations; and
(4) members of a patriotic organization licensed under this
section that has a reciprocity agreement with another patriotic organization
licensed under this section.
* Sec. 4. AS 04.09.220 is amended by adding a new subsection to read:
(m) A patriotic organization licensed under this section may enter into a
reciprocity agreement with another patriotic organization licensed under this
section to allow each organization to sell alcoholic beverages to members of both
organizations. The decision to enter into a reciprocity agreement shall be made by
a majority of members present at a general meeting of each patriotic
organization."
Renumber the following bill sections accordingly.
3:26:28 PM
REPRESENTATIVE CARRICK objected for the purpose of discussion.
3:26:30 PM
CO-CHAIR FIELDS stated that there is a constituent in
Representative Stutes' district who is associated with the
American Legion. The constituent brought to members' attention
the concept of reciprocity for patriotic organizations,
primarily the Veterans of Foreign Wars (VFW) and the American
Legion. He explained that, currently, it is violation of law
for a VFW Hall to serve alcohol to a member of the American
Legion and vice versa. He explained that Amendment 1 would
allow members of the two aforementioned patriotic organizations
to attend each other's facilities and have a drink. He stated
that Amendment 1 would not impact other membership-based groups,
like the Lions [Club] or the Moose Lodge.
REPRESENTATIVE CARRICK asked for clarification that Amendment 1
is not related to minors serving alcohol.
CO-CHAIR FIELDS responded yes.
3:28:14 PM
REPRESENTATIVE CARRICK removed her objection to Amendment 1 to
SB 15. There being no further objection, Amendment 1 was
adopted.
3:28:28 PM
CO-CHAIR FIELDS stated, as illustrated by the public testimony,
that there is a desire among employers to adjust the effective
date of the proposed legislation.
CO-CHAIR FIELDS moved to adopt Amendment 2 to SB 15, as amended,
labeled 34-LS0163\A.3, C. Radford, 2/17/25, which read as
follows:
Page 6, following line 23:
Insert a new bill section to read:
"* Sec. 14. Section 12 of this Act takes effect October 1, 2025."
Renumber the following bill section accordingly.
Page 6, line 24:
Delete "This"
Insert "Except as provided in sec. 14 of this Act, this"
3:28:39 PM
CO-CHAIR HALL objected for the purpose of discussion.
3:28:47 PM
CO-CHAIR FIELDS began comment pertaining to [an upcoming
conceptual amendment to] Amendment 2.
3:29:24 PM
The committee took a brief at-ease at 3:29 p.m.
3:29:45 PM
CO-CHAIR FIELDS moved to adopt Conceptual Amendment 1 to
Amendment 2 to SB 15, as amended. [Conceptual Amendment 1 to
Amendment 2 is included in the committee packet as Amendment 2,
with handwritten changes in blue writing, and it is included in
the committee file].
3:30:10 PM
CO-CHAIR HALL objected for the purpose of discussion.
3:30:13 PM
CO-CHAIR FIELDS explained the handwritten changes, as follows:
And you will see in writing this is the conceptual
amendment language that we discussed with
[Legislative] Legal [Services] to make sure those are
the correct dates for May implementation for purposes
of hiring and for August implementation for purposes
of signage, which addresses both the urgency of hiring
and, as Mr. Walukiewicz mentioned, the time to get the
updated signs.
3:30:48 PM
CO-CHAIR HALL removed her objection to Conceptual Amendment 1 to
Amendment 2. [The committee treated Conceptual Amendment 1 to
Amendment 2 as adopted.]
CO-CHAIR FIELDS brought the committee's attention back to
Amendment 2, [as amended]. He announced that there being no
objection, Amendment 2, [as amended], was adopted. [The
objection by Co-Chair Hall was treated as removed.]
3:31:24 PM
CO-CHAIR HALL moved to report SB 15, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes. There being no objection, HCS SB 15(L&C) was
reported out of the House Labor and Commerce Standing Committee.
3:31:52 PM
The committee took an at-ease from 3:31 p.m. to 3:34 p.m.
HB 49-TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX
3:34:31 PM
CO-CHAIR FIELDS announced that the next order of business would
be HOUSE BILL NO. 49, "An Act relating to tobacco, tobacco
products, electronic smoking products, nicotine, and products
containing nicotine; raising the minimum age to purchase,
exchange, or possess tobacco, a product containing nicotine, or
an electronic smoking product; relating to the tobacco use
education and cessation fund; relating to the taxation of
electronic smoking products and vapor products; and providing
for an effective date."
CO-CHAIR FIELDS stated that the committee would begin with
invited testimony.
3:35:25 PM
LEENA EDAIS, Co-President, Youth Encouraging Alaskans' Health
(YEAH), Rural Alaska Community Action Program, Inc. (RurAL CAP),
introduced herself for the public record.
3:35:29 PM
DOROTHY ARMSTRONG, Co-President, Youth Encouraging Alaskans'
Health, Rural Alaska Community Action Program, Inc. (RurAL CAP),
introduced herself for the public record.
3:36:46 PM
MS. EDAIS stated that Ms. Armstrong and she are the co-
presidents of YEAH, a tobacco prevention and education program.
She stated they have been working with the program for about
five years.
MS. ARMSTRONG stated that YEAH discourages nicotine and tobacco
use among youth through educational outreach.
MS. EDAIS explained that YEAH travels to schools to present or
host summits, in which students from other schools are invited.
3:37:09 PM
MS. ARMSTRONG explained that YEAH provides education and
resources for those struggling with tobacco [addiction]. She
stated that the organization focuses on bringing youth from
Alaska villages to their educational summits.
3:37:43 PM
MS. EDAIS stated that YEAH also creates educational videos to
send to other schools that may otherwise not able to attend the
summits. She continued that she is a recent Dimond High School
graduate, and she and Ms. Armstrong would finish their testimony
by sharing anecdotal experiences about the prevalence of e-
cigarette usage during their time in high school.
3:38:08 PM
MS. ARMSTRONG stated that she graduated from Bettye Davis East
High School, a Title I school, in May [2024]. She commented
that most of the students are living at or below the poverty
line. She stated that she often noticed students possessing or
using e-cigarettes in classrooms, despite not having money for
food, for example. She remarked that e-cigarettes are resold at
higher prices to youth, who otherwise could not legally purchase
one. She further noted that the use of e-cigarettes is
normalized among teenagers, and stated it is difficult to break
a "bad habit" that is enabled by a community.
MS. ARMSTRONG stated that many students do not have access to
[educational] resources or do not know that resources exist for
them.
3:40:04 PM
MS. EDAIS shared that at Dimond High School, every bathroom door
in her high school had to be opened for about half of the school
year, due to the high numbers of students vaping in bathrooms.
She shared YEAH's belief that education is the biggest tool for
prevention.
3:40:48 PM
MS. ARMSTRONG stated that Ms. Edais and herself were given the
educational support they needed to avoid tobacco and nicotine.
MS. EDAIS stated that the products are very accessible to
underage consumers. She stated that dealers are easily found
via social media applications ("apps") and minors will spend any
amount of money on the products due to their addiction to them.
MS. ARMSTRONG stated that many kids want to stop but lack the
resources to do so. Additionally, she stated the addiction
becomes cyclical. She said, "If a teacher stopped every time
there was a[n] e-cigarette in classroom, no work would get done
and students wouldn't learn anything."
MS. EDAIS emphasized the need to make products less accessible
by enforcing policies to raise the minimum age of purchase or
enact a tax on e-cigarettes.
MS. ARMSTRONG argued that youth are the most susceptible to
price increases and raising the tax on a product would increase
the overall price, thus reducing the number of purchases from
underage consumers.
MS. EDAIS thanked committee members.
3:44:55 PM
MS. EDAIS, in response to a question from Representative Nelson
regarding accessibility, offered commentary that a high schooler
is less likely to know a 21-year-old than a 19-year-old.
MS. ARMSTRONG stated that the dealers would still have to pay
the proposed tax to sell products to students. Additionally,
she stated that the tax goes towards [educational] programs for
nicotine and tobacco prevention. She argued that a more
educated youth would not seek out nicotine and tobacco and
further asserted that dealers would raise their prices, making
the products less accessible to minors.
3:47:18 PM
REPRESENTATIVE NELSON opined that the dealer would not increase
their price all that much, meaning it is the dealer paying the
tax, not the students.
3:47:53 PM
MS. EDAIS acknowledged that "kids will [do] what it takes to get
... products" but ventured that the proposed legislation, while
not the complete solution, is a part of the solution. She
reasserted that HB 49 would make vape products less accessible
to youth.
MS. ARMSTRONG highlighted the importance of advocating for
incremental change in the face of epidemics.
3:49:16 PM
REPRESENTATIVE CARRICK thanked the invited testifiers and
commented on the power of testimony from youth. She commented
that dealers are going to pass along price increases to their
customers and asked about price sensitivity among youth.
3:50:07 PM
MS. EDAIS noted that e-cigarette usage is frequently social.
She stated if the prices were high, it would deter children from
purchasing e-cigarettes.
MS. ARMSTRONG explained that their focus is to halt the initial
purchases of e-cigarettes. She asserted that price increases
would stop more youth from starting the habit because of their
budgetary constraints.
3:51:37 PM
REPRESENTATIVE COULOMBE agreed that minors should not be smoking
but shared concern that the proposed legislation would push
consumers towards a black market for e-cigarettes. She shared
her uncertainty that increasing prices would be an effective
deterrent. She further asked what pieces are missing in the
education of young people regarding e-cigarettes.
3:52:36 PM
MS. ARMSTRONG responded that many of their peers hear that using
e-cigarettes is better than smoking traditional cigarettes,
because it was the "narrative that was pushed for so long." She
stated there are minimal regulatory processes that govern vapes.
She stated that her peers are more receptive to educational
approaches, rather than "just getting mad at them."
MS. EDAIS addressed a common misconception that consumers are
breathing water vapor through e-cigarettes, which, she asserted
is not true.
MS. ARMSTRONG stated that the proposed legislation's target
demographic is students or youth who are not in active addiction
but may be considering illegally purchasing an e-cigarette. She
stated there is already a [black] market for vapes. She shared
anecdotally that dealers are already illegally purchasing vapes
that they then sell to students. She reported that illegal
vapes have even been advertised to contain illicit drugs. She
stated the price increase in the proposed legislation intends to
prevent students who have yet to develop an addiction from
purchasing illegal e-cigarettes.
MS. EDAIS added that taxing products has been proven to lower
outcomes of users. For example, she noted, taxes on traditional
cigarettes lowered consumption significantly.
3:58:02 PM
MS. ARMSTRONG, in response to Representative Coulombe's question
on her stake in the topic, shared a personal anecdote about a
friend who, although diagnosed with bone cancer at a young age,
remained addicted to e-cigarettes throughout their treatment.
She concluded by stressing the addictive nature of vapes.
4:00:38 PM
TRACY MULVENON, Assistant Superintendent, North Slope Borough
School District (NSBSD), gave invited testimony in support of HB
49. She stated that, after the COVID-19 pandemic, e-cigarettes
flooded the scene and student vaping rates increased
significantly. She asserted that the trend both undermines
student health and learning outcomes. She stated that it is the
responsibility of school districts to work with communities to
implement proactive measures to combat the issue while fostering
a preventative approach that is educational, and health
centered.
MS. MULVENON spoked to the efficacy of vape detectors used in
schools to aid in the confiscation of e-cigarettes. She stated
that she confiscated 62 vapes from middle-schoolers in one year
after COVID-19. She stated that NSBSD wrote a grant to obtain
funding for vape detectors with "full support" from parents.
She explained that the vape detectors had silent alarms and were
installed in all bathrooms and monitored by an administrator.
Additionally, NSBSD implemented a "one student at a time"
bathroom policy. She stated that the vape detectors have
streamlined the investigative process, as typically the school
would receive reports from students about their peers' vape
usage.
MS. MULVENON spoke to the importance of education in reducing
student vaping. She stated that NSBSD implemented a progressive
suspension process, explaining that education was woven into the
consequences of vaping. For example, she shared that, when a
student was caught vaping, they were given educational resources
with their parent and met with a school counselor or (indisc.)
administrator. She remarked that oftentimes students caught
vaping reported that they were struggling and the vape was an
outlet for stress. She shared that, anecdotally, among middle
school students that she had addressed, four times out of five
they were taking [vapes] from their parents.
MS. MULVENON asserted that punitive measures alone do not always
result in behavioral change and emphasized the importance of
education and working with one's community on providing students
with clear, factual information on the long-term damage of e-
cigarette consumption. She concluded by reiterating the
importance of education as a means of empowering students to
make informed decisions about their health. She welcomed
questions from committee members.
4:08:00 PM
REPRESENTATIVE NELSON asked how NSBSD decided to purchase vape
detectors.
MS. MULVENON responded that NSBSD did a lot of research prior to
the implementation of the vape detectors. She explained that
the vapes can be discreet, and administrators suspected the
majority of students were using e-cigarettes in the bathrooms.
She reported that, across NSBSD, administrators work with
community members to create community school expectation
agreements around addressing underage vape usage. She stated
that parents of students are involved in the process.
Additionally, she stated that a new health curriculum that
included vape products was adopted by the district, noting that
the problem was addressed in a myriad of ways.
4:10:39 PM
REPRESENTATIVE NELSON asked about the efficacy of the vape
detectors.
MS. MULVENON responded that students can be very creative in
dodging discipline for using e-cigarettes. She stated that
NSBSD had to educate teachers on how to spot e-cigarettes, as
they can be discreetly disguised as everyday objects. She
shared that Barrow High School (BHS) implemented vape detectors
in bathrooms in the past year and the principal of BHS ventured
that the vape detectors "have really made a difference." She
emphasized the importance of providing educational and emotional
support for students in combatting the issue.
4:12:24 PM
CO-CHAIR FIELDS noted that the proposed tax could help pay for
vape detectors in schools.
4:12:36 PM
CO-CHAIR FIELDS opened public testimony on HB 49.
4:12:54 PM
MARK SUNDQUIST, representing self, testified in opposition to HB
49. He stated, as a retailer, that he prioritizes selling legal
and compliant products. He offered his belief that the proposed
legislation would have detrimental effects on both "local
business and the people of Alaska." He identified the proposed
cap as his primary concern, arguing that it would effectively
ban 75 percent of regulated vape products in Alaska, impacting
retailers' ability to offer a diverse range of product to
customers. He argued that increasingly limited choices could
push customers towards the black market. He stated that in
Anchorage, all taxes on tobacco and nicotine products are paid
by the wholesalers. He asserted that the proposed legislation
proposes a price-based tax that "would put the onerous tax
collection and processing to the individual business for a
single product line." He further stated that the proposed tax
would increase the prices of legal products, giving illegal
products a price advantage. He reiterated that when legal
products are unavailable, the black market thrives. He
concluded by urging the committee to oppose HB 49 and offered
his belief that the most effective approach is working within a
federally regulated framework and allowing retailers to provide
a variety of products. He concluded by stating that keeping a
diverse market of regulated products would better serve
customers and discourage the growth of the black market.
4:16:23 PM
TERESA WROBEL, Policy & Advocacy Program Specialist, Alaska
Children's Trust, testified in support of HB 49. She read from
a prepared statement [included in the committee file], which
read as follows [original punctuation provided]:
• I am testifying in support of House Bill 49 which
addresses the minimum purchase age and consistent
taxing of tobacco products, including vaping products.
Alaska Children's Trust believes in a future where
Alaska's children, youth and families have the
knowledge, skills, supports, and resources they need
to thrive. Consistent with this vision, we support
policies that promote the health and wellbeing of
Alaska's children and youth, including policies
targeted at reducing underage use of tobacco products.
• House Bill 49 supports the reduction in underage
tobacco usage by aligning state law with federal
statute, raising the minimum purchase age for all
tobacco products from 19 to 21. Additionally [sic]
HB49 establishes a sales tax for e-cigarette products,
also commonly known as vapes, making the tax on vaping
products consistent with taxes on other tobacco
products in the state.
• Tax policies and age restrictions on purchases are
policies associated with reducing underage use of
tobacco products.
• According to KIDS COUNT 2024, 17% of Alaska high
school students reported having used a vape in the
past month. In 2022, vapes were the most used nicotine
product by youth.
• Limiting access to youth through targeted taxation is
a policy choice that is currently implemented in
Alaska for other substances, including cigarettes and
alcohol. Both cigarette smoking and use of alcohol
have consistently declined since the introduction of
taxes on these specific items. Alaska's last peak in
underage alcohol use was in 2017.
• And research in other states has demonstrated that
increased prices on e-cigarette products through taxes
has resulted in a lower rate of use among youth.
• The policy changes in House Bill 49 would promote safe
behaviors in Alaska's youth, increasing youth health
and wellbeing.
• We encourage your support of House Bill 49. Thank you
for the opportunity to testify today.
4:18:23 PM
CARRIE NYSSEN, Vice President, Advocacy and Air Quality,
American Lung Association (ALA), testified in support of HB 49.
She stated that the U.S. Surgeon General declared e-cigarette
use among youth to be an "epidemic." She asserted that Alaska
could "do better at protecting youth from a lifetime of nicotine
addiction." She explained that the American Lung Association
grades states in its annual State of Tobacco Control report on
policies that could lessen the health impacts of tobacco. She
said that HB 49 addresses two recommendations in the report:
establishing a tax on electronic devices and funding education
programs. She refuted the assertion that e-cigarettes are
cessation devices, stating no manufacturer has attempted to have
their product approved as a cessation device. She stated that
vapes/e-cigarettes deliver heavy metals like nickel, tin, and
lead into the lungs, in addition to ultra fine particles that
can cause inflammation throughout the body. Additionally, she
asserted that none of the additive flavors used in e-cigarettes
are approved for inhalation. Finally, she cited a 2013 study
published in England, stating that researchers were paid by the
vape industry. She asserted that the scientific community had
since debunked the findings of this study. She concluded by
stating that ALA fully supports raising the minimum age to
purchase tobacco products to age 21 and further recommended
removing the penalties for youth possession of said products,
arguing that strategy does little to reduce underage consumption
of them.
4:20:48 PM
JANICE PARK, representing self, testified during the hearing on
HB 49. She stated that ultimately, the proposed legislation was
about protecting children. She provided a personal anecdote,
stating that her father, a lifelong smoker, smoked [combustible
cigarettes] from a young age and experienced health
complications throughout his life as a result, she asserted.
4:22:39 PM
ALEX MCDONALD, representing self, testified during the hearing
on HB 49. He asserted that the proposed legislation would put a
"tax on a tax." He claimed that nicotine had never been
classified as a carcinogen and much of the information presented
to the committee was "old and outdated." Additionally, he
stated that the slideshow presentation for HB 49 is five years
old and shows products that are no longer on the market. He
cited a 2024 Alaska Beacon article, stating that current
statistics on the past 30-day use [of e-cigarettes] was at its
"lowest levels." He argued that the proposed legislation would
push people to purchase black market products. He claimed that
the Federal Drug Administration (FDA) currently recommends that
smokers switch to safer alternatives such as vapor products like
e-cigarettes. He concluded by asserting that the proposed
legislation would encourage people to go against FDA guidelines.
4:25:24 PM
VALERIA DELGADO-LOPEZ, representing self, testified in support
of HB 49. She read from a prepared statement [included in the
committee file], which read as follows [original punctuation
provided]:
Good afternoon, my name is Valeria Delgado Lopez, and
I live in Anchorage. My work focuses on preventing
tobacco and nicotine use, particularly among youth. A
critical part of my job is educating students,
parents, and teachers about the harms of e-cigarettes.
The stories I've encountered are alarming. In one
Anchorage elementary school, 4th and 5th graders were
trading chocolate milk for e-cigarette puffs. Schools
are now reaching out for help because vaping is
appearing even in elementary grades. Some schools have
had to suspend children that young.
In middle and high schools, students continue to vape
in bathrooms, keeping the cycle going. Some have even
flushed vapes down toilets, causing costly plumbing
damage. Many struggle to quit due to the high
concentrations of nicotine, which fuels addiction at
an early age.
Parents are also struggling. Just last week, a parent
reached out for help after discovering their teen had
been vaping for a year. The discreet design of e-
cigarettes makes them easy to hide, making it even
harder for parents to intervene early.
We know what works. Raising the purchasing age to 21
and taxing e-cigarettes are proven strategies to
reduce youth vaping.
I urge you to support policies that raise e-cigarette
taxes and strengthen youth protections. Thank you for
your time
4:27:26 PM
JESSI WALTON, representing self, testified in opposition to HB
49. She claimed that the FDA recommends switching from
traditional cigarettes to e-cigarettes, asserting that e-
cigarettes have lower levels of harmful ingredients than
traditional cigarettes. She stated that she quit smoking
[traditional cigarettes] in 2013 [by making the switch to
vapes]. She asserted that taxing e-cigarettes would go against
public health, smoking-related Medicaid expenses, and the FDA
guidelines. Further, she said that switching from [traditional]
cigarettes to e-cigarettes lowers the incidence of smoking-
related illnesses and the FDA has approved 30 different [vapor]
products. She concluded by asking committee members to oppose
HB 49.
4:29:21 PM
AARON OSTERBACK, representing self, testified in support of HB
49. He acknowledged that he was not aware of how bad the issue
of e-cigarettes and vaping was in his community. He stated
that, historically, doctors first promoted traditional tobacco
products as a healthy means to take off stress. Further, he
stated that, eventually, it was discovered that [traditional]
cigarettes were not as healthy as once advertised. He shared
personal anecdotes of family members regarding e-cigarette usage
to challenge prior testimony stating it is healthy. He
encouraged committee members to look at the suspension rates for
the Anchorage School District (ASD), asserting that the second-
highest reason for suspension is e-cigarette/vape usage. He
offered his support for educational provisions, asserting that
informed youth would make better decisions regarding their
health. He asserted the use of vape detectors is a cost to the
community and argued that the industry needs to support
preventative measures like vape detectors. He offered his
belief that, over the long-term, e-cigarettes will be found to
not be as healthy as claimed. He echoed other speakers stating
that the tax will deter customers.
MR. OSTERBACK concluded by thanking the committee for their
time.
4:34:56 PM
SHAUN D'SYLVA, Owner, Fatboy Vapors, testified in opposition to
HB 49. He stated that he has been the co-owner of three vapor
stores in Alaska since 2013. He said that Alaska has seen a
reduction in the rates of traditional smoking and adult smoking
rates are at the lowest they have ever been at 17 percent. He
stated that the Alaska Youth Risk Behavior survey shows that
both the youth smoking rate and the youth vaping rate have
decreased since 2019. He noted that statistics given in the
bill sponsor's presentation and the previous comment from [Ms.
Nyssen] regarding the U.S. Surgeon General were sourced from
2019.
MR. D'SYLVA stated the industry supports sensible legislation,
such as ensuring packaging is not youth-friendly and Tobacco 21
(T21) [laws], which, he noted, many states have already adopted.
He shared concerns over the excise tax proposed under HB 49. He
stated that the three vapor stores he owns are located in
Anchorage, Fairbanks, and Wasilla, noting that his stores pay a
wholesale tax. He remarked that the wholesale taxes are not
used for tobacco cessation programs; in Fairbanks, the tax is
being used to reduce property tax, and the tax in Wasilla goes
into the city's general fund. He posited that smoking rates are
higher in low-income individuals, and the proposed legislation
would be harmful for adults trying to quit smoking [combustible
cigarettes]. He asserted that the United Kingdom's (UK's)
[Public Health England] has been studying vapes since 2009 and
has asserted, repeatedly, that "vaping is at least 95 percent
safer - not safe, but safer - than cigarettes." He declared the
bad actors who sell to youth need to be punished and [bad
actors] would not pay the proposed tax and concluded that the
black market needs to be prevented.
4:39:03 PM
CO-CHAIR FIELDS, after ascertaining that there was no one else
who wished to testify, closed public testimony on HB 49.
4:39:20 PM
REPRESENTATIVE NELSON noted that some of the publications on the
introductory presentation for HB 49 appeared to be outdated.
4:39:45 PM
REPRESENTATIVE SARA HANNAN, Alaska State Legislature, as prime
sponsor of HB 49, pointed to the Alaska Youth Risk Behavior
survey that is taken every two years. She explained that there
was a gap in surveys due to the COVID-19 pandemic and the last
surveys were taken in 2019 and then in 2023. She further
explained that in 2023, there was a dip in the data regarding e-
cigarette usage, but not an overall decline in the trajectory.
In response to prior testimony, she declared that she could not
find any reference to vape recommendations on the FDA website.
She reiterated that the proposed legislation does allow tax
exemptions for any device that is federally classified as a
cessation device. She repeated that if a vape product is
approved by the FDA to be a cessation device, it would not be
taxed under HB 49.
4:41:58 PM
REPRESENTATIVE NELSON noted that Ms. Mulvenon cited active
engagement with students to cut down rates of vaping among
students. He asked whether the bill sponsor thought parents
should be doing more to prevent their children from using e-
cigarettes.
4:42:35 PM
REPRESENTATIVE HANNAN responded yes. Additionally, she asserted
that schools have a responsibility to upkeep community health
goals and prevent exposures to products like vapes.
4:43:26 PM
REPRESENTATIVE NELSON voiced concerns about low-income
individuals purchasing "sketchy" products online. He voiced
additional concerns that the proposed legislation would push
more people towards an illegal online black market.
4:43:58 PM
REPRESENTATIVE HANNAN responded that HB 49 would institute a tax
on vape products sold in brick-and-mortar store or mail ordered
from an online store. She explained that currently, mail order
products besides cigarettes are not currently taxed under Alaska
law. She stated that, regardless of whether a product is
purchased in-person or online, the tax still is levied. She
asserted that the tax burden is equalized.
REPRESENTATIVE HANNAN, in response to a follow-up question from
Representative Nelson, asserted that the manufacturing of vapes
is not regulated at all. She stated, "We want to make sure that
we are regulating best we can products that are legally for
sale." She stated that the proposed legislation does not reduce
access to the product, unless one is 19- or 20-years-old. She
asserted that HB 49 would not treat [legal] consumers of legal
tobacco products "any differently."
4:46:10 PM
REPRESENTATIVE CARRICK moved to adopt Amendment 1 to HB 49,
labeled 34-LS0368\A.7, Nauman, 2/10/25, which read as follows:
Page 3, line 18:
Delete "$300"
Insert "$150"
4:46:16 PM
CO-CHAIR HALL objected for the purpose of discussion.
4:46:20 PM
REPRESENTATIVE CARRICK explained that Amendment [1] would change
the penalty for youth possession from $300 to $150. She
explained that current statute can place up to a $500 penalty
for youth for possession, and [up to a] $300 penalty for
retailers who might sell to youth. She explained that HB 49, as
currently drafted, would reduce the penalty for youth possession
from $500 to $300, and Amendment [1] would reduce the ceiling
penalty for youth possession even further from $300 to $150.
She explained the amendment was written in response to data from
the Court System and reported that the fine for youth is
infrequently exacted up to $300. She opined that it is sensible
to charge the youth less than the retailer for possession. She
stated the goal is to "get behavior ... back on track" not to
unduly punish the youth.
4:48:23 PM
REPRESENTATIVE NELSON suggested removing the punishment for
youth entirely.
4:48:49 PM
REPRESENTATIVE CARRICK offered her belief that there is value in
having a penalty for youth but setting the penalty at the same
rate to the retailer is unfair to minors. She asserted that the
fine creates disincentive and maintained her intent for a fine
reduction instead of a fine removal.
4:49:44 PM
CO-CHAIR HALL withdrew her objection.
4:49:48 PM
REPRESENTATIVE NELSON objected.
A roll call vote was taken. Representatives Burke, Carrick,
Hall, and Fields voted in favor of the motion to adopt Amendment
1 to HB 49. Representatives Nelson and Coulombe voted against
it. Therefore, Amendment 1 was adopted by a vote of 4-2.
4:50:31 PM
CO-CHAIR HALL moved to report HB 49, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes.
REPRESENTATIVE NELSON objected.
A roll call vote was taken. Representatives Carrick, Burke,
Hall, and Fields voted in favor of the motion to report HB 49,
as amended, out of committee. Representatives Nelson and
Coulombe voted against it. Therefore, CSHB 49(L&C) was reported
out of the House Labor and Commerce Standing Committee by a vote
of 4-2.
4:51:30 PM
The committee took an at-ease from 4:51 p.m. to 4:55 p.m.
HB 74-CRIME COUNTERFEIT/NONFUNCTIONING AIRBAG
4:55:05 PM
CO-CHAIR FIELDS announced that the final order of business would
be HOUSE BILL NO. 74, "An Act establishing the crime of airbag
fraud."
4:55:18 PM
CO-CHAIR FIELDS opened public testimony on HB 74. After
ascertaining that there was no one who wished to testify, he
closed public testimony.
CO-CHAIR FIELDS entertained a motion.
4:55:42 PM
CO-CHAIR HALL moved to report HB 74 out of committee with
individual recommendations and the accompanying fiscal notes.
There being no objection, HB 74 was reported out of the House
Labor and Commerce Standing Committee.
4:56:02 PM
ADJOURNMENT
There being no further business before the committee, the House
Labor and Commerce Standing Committee meeting was adjourned at
[4:56] p.m.
| Document Name | Date/Time | Subjects |
|---|---|---|
| SB 15 Bill Packet 2.17.2025.pdf |
HL&C 2/17/2025 3:15:00 PM |
SB 15 |
| HB49 Amendment A.6.pdf |
HL&C 2/17/2025 3:15:00 PM |
HB 49 |
| HB49 Amendment A.7.pdf |
HL&C 2/17/2025 3:15:00 PM |
HB 49 |
| HB49 Amendment A.8.pdf |
HL&C 2/17/2025 3:15:00 PM |
HB 49 |
| AK HB 74 airbags - NAMIC's written testimony 2.4.25.pdf |
HL&C 2/17/2025 3:15:00 PM |
HB 74 |
| SB 15 Amendment A.1.pdf |
HL&C 2/17/2025 3:15:00 PM |
SB 15 |
| SB 15 Amendment A.3.pdf |
HL&C 2/17/2025 3:15:00 PM |
SB 15 |
| HB 49 Combined Public Testimony 2.17.2025.pdf |
HL&C 2/17/2025 3:15:00 PM |
HB 49 |
| SB 15 ABC Board Advisory Opinion 2.17.25 HL&C.pdf |
HL&C 2/17/2025 3:15:00 PM |
SB 15 |