SB 15-E-CIGS: SALE TO AND POSSESSION BY MINOR    1:35:39 PM CHAIR COSTELLO announced the consideration of SB 15, and noted that the committee heard similar legislation last year. 1:36:05 PM TIM LAMKIN, Staff, Senator Gary Stevens, introduced SB 15 on behalf of the sponsor. He gave a slide to show the origins of e- cigarettes as well as the styles, brands, flavorings, and components. He said the bill is about protecting youth from the burgeoning fad of smoking electronic cigarettes, also called vaping. There are over 500 varieties of this product on the market in the U.S. and they are replacing traditional cigarettes. They are sleek, clean, discrete, and generally not expensive. Because this industry is relatively new, there is little conclusive evidence as to their long-term effect on health. However, he said, it shouldn't take a scientific study to imagine that regularly inhaling a chemical substance would not be good for a young person's mind and body. He acknowledged that some people have found e-cigarettes to be a Godsend in helping them quit smoking traditional cigarettes. MR. LAMKIN said some people maintain that e-cigarettes do not contain nicotine. While that may or may not be true, the Food and Drug Administration (FDA) has said these products should be treated as a tobacco product. He concluded that SB 15 will close a loophole and prohibit possession and sale of electronic smoking devices, including component liquid or vapor products to minors, whether they contain tobacco or nicotine or not. He noted that the sponsor is working on a committee substitute (CS). 1:42:33 PM CHAIR COSTELLO asked Mr. Lamkin to walk through the sectional analysis. MR. LAMKIN read the following sectional analysis for SB 15: Section 1: AS 11.76.105(a) Adds to existing law that, as with prohibiting minors from possessing cigarettes or tobacco, to also prohibit possession of electronic cigarettes and any component thereof. Section 2: AS 11.76.105(c) Extends an existing exception for possession by minor of a tobacco product, to include e-cigarettes possession, provided the minor is using an e-cigarette for an approved medical purpose, such as smoking cessation, and is provided by a parent or prescribed by a doctor. Section 3: AS ll.76.106(a) Adds to existing law that, as with controlling access to and sale of tobacco products to minors (that is, behind the counter), that e-cigarettes access also be controlled and restricted in a like manner. Section 4: AS ll.76.l06(b) Extends an existing exception to clerk, controlled access to tobacco or e- cigarette products sold through a vending machine, which are covered in the next section. Section 5: AS ll.76.107(a) Adds to existing law that, as with tobacco product vending machines, vending machines dispensing electronic cigarette or nicotine products must also be supervised. Section 6: AS 11.76.109(a) Adds to existing law prohibiting the sale of nicotine products and electronic cigarettes, or any related component thereof, to a minor under 19 years old. Section 7: AS ll.76.109(b) Extends an existing exception for minor possession of a nicotine product, to include e-cigarettes possession, provided the minor is using an e cigarette for an approved medical purpose, such as smoking cessation, and is provided by a parent or prescribed by a doctor. Section 8: AS 11.76.109(e) Extends the existing fine of at least $300 for selling nicotine products to minors, to include selling e-cigarette products having the same fine. Section 9: AS 11.76.109(f) adds a new subsection that is consistent with existing law regarding placement of vending machines dispensing tobacco products; that the same requirements are applied to vending machines dispensing e-cigarette or nicotine products. Section 10: AS ll.81.900(b) Establishes a definition for electronic smoking product," summarized as follows: (67) (a) a device designed to aerosolize and inhale nicotine, a synthetic of nicotine, or another substance that "may have an adverse effect" on the person inhaling from the device; [basically, the hardware] and (b) the accompanying compounds, oils, vapor fluids, chemicals, or agents intended to be aerosolized and inhaled in conjunction with the device. Section 11: AS 43.50.070(a) Adds enforcement provision for the state to suspend, revoke, or refuse to renew a business for violating provisions relating to selling e-cigarette products to minors. Section 12: AS 43.50.105(b) is amended for conformity, changing "tobacco" endorsement to "business license" endorsement, for purposes of shipping or transport of cigarettes. It also sets up conformity for the following Section 8 of the bill, relating to a required business license endorsement for selling e-cigarette or nicotine products. Section 13: AS 43.70.075(a) amends existing law requiring a special business license endorsement in order to lawfully sell tobacco products, by including the same license endorsement requirements for lawfully selling e-cigarette or nicotine products. Section 14: AS 43.70.07S(d) amends existing law relating to selling tobacco to minors, by adding the same penalty provisions, including graduated fines, for selling e-cigarette or nicotine products to minors. Section 15: AS 43.70.075(f) amends existing law requiring signage when selling tobacco products, to also require signage for selling E-cigarette or nicotine products. The signage must read. The sale of electronic smoking products or products containing nicotine to a person under the age of 19 without a prescription is illegal." Section 16: AS 43.70.075(i) amends existing enforcement provisions that, as with tobacco sales, to allow the State to seize and destroy a vendor's inventory of e-cigarettes or nicotine products in the event violating the law prohibiting sales of those products to minors. Section 17: AS 43.70.075(l) is amended for conformity that, as with tobacco sales, to allow one business license endorsement to serve as an umbrella if a vendor has multiple locations they are selling E-cigarette or nicotine products, and to shut down only the offending vending machine or outlet location in the event of a violation. Sections 18-23: AS 43.70.075(m), (r), (t), (v), (w), and (x) are amended for conformity that, as with tobacco sales, to allow an evidentiary and administrative hearing, appeal process, and penalties in the event of violations of these statutes, involving the sale of e-cigarette or nicotine products to minors. Section 24: AS 43.70.075(y) is added for conformity, linking the definitions of "electronic smoking products," and distinguishing between traditional cigarette (tobacco) products and other modem nicotine alternatives. Section 25: AS 43.70.105(b) is amended for conformity that, as with tobacco products, a vendor must have the appropriate business license endorsement in order to lawfully sell E-cigarette or nicotine products. Section 26: AS 44.29.092 is amended for conformity that, as with tobacco sales, providing the Dept. of Health and Social Services the authority to issue citations for violating state law regarding minors buying, selling or possessing E-cigarette or nicotine products. Section 27: Is the applicability and effective date, applying to offenses committed only after the effective date of the bill, which would be 90 days after the bill is enacted. 1:48:39 PM CHAIR COSTELLO asked if the Department of Health and Social Services' (DHSS) Youth Behavioral Risk Survey has a question about youth use of e-cigarettes. ELIZA MUSE, Public Health Specialist II, Division of Public Health, Department of Health and Social Services (DHSS), advised that the Youth Behavioral Risk Survey has been asking about the use of electronic cigarettes since 2015. Results from that survey indicate that 36 percent of Alaska high school students have tried electronic cigarettes and 18 percent currently use them. SENATOR MEYER questioned the statement that "not all of these products contain nicotine." MR. LAMKIN replied many vendors honestly believe their product does not contain nicotine, even though that has not been proven. "Labeling is not regulated or not thoroughly regulated and there are perhaps some questionable practices going on as to that labeling and marketing," he said. SENATOR MEYER asked how many states have passed similar legislation. MR. LAMKIN said he didn't know the number but a substantial number of states have severely limited access to these products, typically related to nicotine content. He noted that the state of Kentucky was the first to impose such a ban. SENATOR MEYER asked why the e-cigarette bill didn't pass last year. MR. LAMKIN replied it was held up in the Senate Judiciary Committee for some reason. 1:52:44 PM SENATOR GARDNER highlighted the American Lung Association report that said cigarettes contain 600 ingredients that convert to 7,000 different chemicals when burned, 69 of which are deemed carcinogenic and others poisonous. She asked if nicotine is the concern or the fact that it is addictive. MR. LAMKIN replied it is probably a matter of opinion but regardless, they are not good for youth. SENATOR GARDNER asked under what conditions a physician might write a prescription for e-cigarettes, and if the prohibition against possession applies if the product is provided by a parent. If a parent gives it to their minor child does he/she have to keep it at home? MR. LAMKIN replied the bill provides an option for parents to give the product to their minor child. SENATOR GARDNER asked why a physician might prescribe e- cigarettes. MR. LAMKIN surmised that it might be used for someone who had become addicted to nicotine at a young age. 1:56:13 PM SENATOR HUGHES asked what the U.S. surgeon general is doing to obtain hard data on these products, what the plan is to correct inaccurate labeling, and if there is a difference in definition between tobacco and nicotine. MR. LAMKIN said this is a relatively new product in the U.S. so there isn't much data available. It is also a rapidly growing market with such a variety of products that regulators can't keep up. He deferred to the state's chief medical officer to discuss what is being done to study the long-term effects these products may or may not have on the human body. 1:58:01 PM At ease 1:58:23 PM CHAIR COSTELLO reconvened the meeting. SENATOR HUGHES asked if within a year there might be more conclusive evidence as to what the best practices should be, and if the FDA has approved a smoking cessation device that uses electronic cigarettes. MR. LAMKIN said the FDA stepped up last summer and defined electronic products as tobacco products. He opined that the primary reason for that is that they have at least a trace amount of addictive nicotine. He said he wasn't speaking for the FDA, but that agency is actively working on regulations and ways to address this industry. He added that to his knowledge, the FDA has not defined e-products as a cessation product. 2:01:02 PM SENATOR HUGHES related that doctors in a medical clinic in her district have reported watching teenagers regularly going to a nearby tobacco/smoke shop. She asked if the sponsor had considered banning minors from entering tobacco/smoke shops. MR. LAMKIN replied they are working in that direction, but a business may conduct more activity than is indicated on the business license that is filed with the state. This makes it difficult to enforce these laws. He directed attention to a memo in the packets from DHSS Investigator Joe Darnell regarding compliance checks. Minors were successful 26 percent of the time when they attempted to buy electronic products, whereas they were successful 9 percent of the time when they tried to buy tobacco products. "In a nutshell, it's three times easier to get the e-products than to get a tobacco product." CHAIR COSTELLO asked Mr. Darnell to discuss the memo he sent. 2:03:45 PM JOE DARNELL, Investigator IV, Division of Behavioral Health, Tobacco Youth Education & Enforcement Program, Department of Health and Social Services (DHSS), stated that the state is required to enforce underage tobacco laws. Federal block grant money for substance abuse is tied to that, and the state anticipates that vaping and electronic nicotine delivery systems (ENDS) will be added to the federal regulations. In preparation, last summer DHSS checked vape shops, tobacco shops, and convenience stores that sell e-cigarettes. The statewide sell rates were 26 percent for vaping, 9 percent for e-cigarettes, and 5.4 percent for traditional tobacco products. In Anchorage, the sell rate of e-liquid to minors was 50 percent compared to a 2.3 percent sell rate for traditional tobacco products. CHAIR COSTELLO asked what the bill contains regarding marketing to youth. MR. LAMKIN said the only marketing provision is conforming language requiring a vendor who is selling e-products to post a warning sign near the checkout counter. 2:07:24 PM CHAIR COSTELLO opened public testimony on SB 15. 2:07:51 PM ALYSSA KEILL, representing herself, Fairbanks, Alaska, testified in support of SB 15. She is a youth swim coach who finds e- products scary. Little is known about them, yet they are marketed as safe and harmless. She pointed out that young brains continue to develop into the 20s and the introduction of any addictive drug will change the brain's wiring and potentially affect other body systems. If poor air quality in a swimming pool building can cause problems for kids' respiratory systems, she can't imagine supporting easy access to a smoking device that could keep youth from reaching their goals. She said these products are marketed to youth and she believes that selling them to youth even though they might not contain nicotine, would still convey the message that smoking is acceptable. 2:10:31 PM KATIE STEFFENS, representing herself, Anchorage, Alaska, testified in support of SB 15. She said e-products are increasingly popular and are being tailored to kids. She opined that SB 15 will help decrease the use rates of teens in the Anchorage community. She emphasized that more regulation is needed. She maintained that the fact that 36 percent of Alaskan youth have tried these products is reason enough to pass the bill. 2:12:34 PM MARGE STONEKING, Executive Director, American Lung Association of Alaska, testified in support of SB 15. She said this bill and the regulation of underage sales is an important component of keeping tobacco and e-cigarettes out of the hands of kids. She reported that the program that Joe Darnell runs on behalf of the state has been one of the most effective nationwide in regulating the use of tobacco by minors. Prior to having a strong program, about 30 percent of tobacco retailers sold to minors. Now the noncompliance rate is under 10 percent. She agreed with earlier testimony that retailers are selling e- cigarettes to youth at a 30-50 percent rate. She also made the following points: e-vapor has many of the same nitrosamines that are found in tobacco smoke; the particulates are potentially more harmful than tobacco because they are finer; there is little proof that electronic vapor products contain no nicotine; the devices are potentially dangerous and may explode when the batteries are changed; and the flavorings and base fluids are not approved for inhalation. MS. STONEKING said e-products were brought to the U.S. about 10 years ago and may have been created as a cessation device. However, the tobacco industry fought to have e-products regulated as a tobacco product rather than a cessation device for medical purposes. That is how these products have been regulated and the nicotine is derived from tobacco plants. 2:17:45 PM LARRY TAYLOR, American Lung Association of Alaska, Ketchikan, Alaska, testified in support of SB 15. He focused on the substances in e-cigarettes other than tobacco or nicotine and addressed earlier questions. Regarding use as a cessation device, he said a U.S. Surgeon General report notes "that experienced users learn to use e-cigarettes in a way that increases their exposure to nicotine." Regarding the time before results are available about the substances contained in e- cigarettes, he advised that there were 500 brands and 700 flavors of e-cigarettes on the market at the time of the 2016 announcement allowing FDA oversight. Businesses have an additional two years to apply to stay in the market, so the FDA won't have a chance to examine all the chemicals until after that two-year period. CHAIR COSTELLO asked Mr. Taylor to submit his testimony in writing. MR. TAYLOR agreed. Addressing the question about non-nicotine products in e-cigarettes, he said the organic solvents include propylene glycol, benzene, and toluene. He related that he studied organic compounds for 17 years when he worked for the Municipality of Anchorage as the environmental engineer. He explained that benzene and toluene, both of which are solvents, can convert to other organic compounds when they are heated. 2:21:58 PM CHAIR COSTELLO closed public testimony on SB 15 and held the bill in committee awaiting a committee substitute.