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HOUSE BILL NO. 176
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - FIRST SESSION
BY REPRESENTATIVES HANNAN, Galvin
Introduced: 4/24/23
Referred:
A BILL
FOR AN ACT ENTITLED
"An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, 1
and products containing nicotine; raising the minimum age to purchase, sell, exchange, 2
or possess tobacco, a product containing nicotine, or an electronic smoking product; 3
relating to the taxation of electronic smoking products and vapor products; and 4
providing for an effective date." 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
* Section 1. AS 11.76.100(a) is amended to read: 7
(a) A person commits the offense of selling or giving tobacco to a person
8
under 21 years of age [MINOR] if the person 9
(1) negligently sells a cigarette, a cigar, tobacco, or a product 10
containing tobacco to a person under 21 [19] years of age; 11
(2) is 21 [19] years of age or older and negligently exchanges or gives 12
a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 13 33-LS0785\A
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years of age; 1
(3) maintains a vending machine that dispenses cigarettes, cigars, 2
tobacco, or products containing tobacco; or 3
(4) holds a business license endorsement under AS 43.70.075 and 4
allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 5
product containing tobacco. 6
* Sec. 2. AS 11.76.100(b), as amended by sec. 153, ch. 8, SLA 2022, is amended to read: 7
(b) Notwithstanding the provisions of (a) of this section, a person who 8
maintains a vending machine is not in violation of (a)(3) of this section if the vending 9
machine is located 10
(1) on premises licensed as a beverage dispensary under AS 04.09.200 11
or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 12
under AS 04.09.230 and 13
(A) as far as practicable from the primary entrance; and 14
(B) in a place that is directly and continually supervised by a 15
person employed on the licensed premises during the hours the vending 16
machine is accessible to the public; or 17
(2) in an employee break room or other controlled area of a private 18
work place that is not generally considered a public place and the room or area 19
contains a posted warning sign at least 11 inches by 14 inches indicating that 20
possession of tobacco by a person under 21 [19] years of age is prohibited under 21
AS 11.76.105. 22
* Sec. 3. AS 11.76.105 is amended to read: 23
Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 24
products containing nicotine by a person under 21 years of age [MINOR]. (a) A 25
person under 21 [19] years of age may not knowingly possess a cigarette, a cigar, 26
tobacco, a product containing tobacco, an electronic smoking product, or a product 27
containing nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A 28
PERSON WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.] 29
(b) In a prosecution under (a) of this section for possession of an electronic 30
smoking product or a product containing nicotine, it is an affirmative defense that the 31 33-LS0785\A
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electronic smoking product or product containing nicotine possessed by the person 1
under 21 [19] years of age was intended or expected to be consumed without being 2
combusted, and the electronic smoking product or product containing nicotine 3
(1) has been approved by the United States Food and Drug 4
Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 5
or for other medical purposes; 6
(2) was being marketed and sold for the approved purposes; and 7
(3) was 8
(A) prescribed by a health care professional; 9
(B) given to the person by the person's parent or guardian; 10
(C) provided by a state-approved tobacco cessation program 11
administered by the Department of Health; or 12
(D) provided by a pharmacist to a person 18 years of age or 13
older without a prescription. 14
(c) Possession of tobacco, an electronic smoking product, or a product 15
containing nicotine by a person under 21 years of age [MINOR] is a violation 16
punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 17
place of any fine imposed for the violation of this subsection, the court may refer 18
a defendant, at the request of the defendant, to a tobacco education program. 19
* Sec. 4. AS 11.76.105 is amended by adding a new subsection to read: 20
(d) The supreme court shall establish by rule or order a schedule of bail 21
amounts that may be forfeited without court appearance for a violation of this section. 22
* Sec. 5. AS 11.76.106(a) is amended to read: 23
(a) Except as provided under (b) of this section, a person may not sell 24
cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, 25
or products containing nicotine 26
(1) unless the sale occurs in a manner that allows only the sales clerk 27
to control access to the cigarettes, cigars, tobacco, products containing tobacco, 28
electronic smoking products, or products containing nicotine; 29
(2) over the Internet to an individual for the individual's personal 30
consumption. 31 33-LS0785\A
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* Sec. 6. AS 11.76.106(b) is amended to read: 1
(b) Subsection (a) does not apply if the sale 2
(1) is by vending machine as provided under AS 11.76.100(b) or 3
11.76.109(d); 4
(2) is a wholesale transaction, the person is licensed as a manufacturer 5
or distributor under AS 43.50.010, and the sale occurs on premises where no retail 6
transactions occur; 7
(3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 8
products containing tobacco, electronic smoking products, or products containing 9
nicotine and who restricts access to the premises to only those individuals who are 21 10
[19] years of age or older; or 11
(4) is of electronic smoking products over the Internet to a person 19 12
years of age or older. 13
* Sec. 7. AS 11.76.109(a) is amended to read: 14
(a) A person commits the offense of selling or giving an electronic smoking 15
product or a product containing nicotine to a person under 21 years of age [MINOR] 16
if the person 17
(1) negligently sells an electronic smoking product or a product 18
containing nicotine to a person under 21 [19] years of age; 19
(2) is 21 [19] years of age or older and negligently exchanges or gives 20
an electronic smoking product or a product containing nicotine to a person under 21 21
[19] years of age; 22
(3) maintains a vending machine that dispenses electronic smoking 23
products or products containing nicotine; or 24
(4) holds a business license endorsement under AS 43.70.075 and 25
allows a person under 21 [19] years of age to sell an electronic smoking product or a 26
product containing nicotine. 27
* Sec. 8. AS 11.76.109(b) is amended to read: 28
(b) The provisions of (a) of this section do not apply to the sale, exchange, or 29
gift to a person under 21 [19] years of age of an electronic smoking product or a 30
product containing nicotine that is intended or expected to be consumed without being 31 33-LS0785\A
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combusted if the electronic smoking product or product containing nicotine 1
(1) has been approved by the United States Food and Drug 2
Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 3
or for other medical purposes; 4
(2) is being marketed and sold solely for the approved purposes; and 5
(3) is 6
(A) prescribed by a health care professional; 7
(B) given to a person by the person's parent or legal guardian; 8
(C) provided by a state-approved tobacco cessation program 9
administered by the Department of Health; or 10
(D) provided by a pharmacist to a person 18 years of age or 11
older without a prescription. 12
* Sec. 9. AS 11.76.109(d), as amended by sec. 155, ch. 8, SLA 2022, is amended to read: 13
(d) Notwithstanding (a)(3) of this section, a person who maintains a vending 14
machine is not in violation of (a)(3) of this section if the vending machine is located 15
(1) on premises licensed as a beverage dispensary under AS 04.09.200 16
or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 17
under AS 04.09.230, and is located 18
(A) as far as practicable from the primary entrance; and 19
(B) in a place that is directly and continually supervised by a 20
person employed on the licensed premises during the hours the vending 21
machine is accessible to the public; or 22
(2) in an employee break room or other controlled area of a private 23
work place that is not generally considered a public place and the room or area 24
contains a posted warning sign at least 11 inches by 8.5 inches indicating that 25
possession of electronic smoking products or products containing nicotine by a person 26
under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 27
[THIS SECTION]. 28
* Sec. 10. AS 11.76.109(g) is amended to read: 29
(g) Selling or giving an electronic smoking product or a product containing 30
nicotine to a person under 21 years of age [MINOR] is a violation and, upon 31 33-LS0785\A
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conviction, is punishable by a fine of not less than $300. 1
* Sec. 11. AS 11.81.900(b) is amended by adding a new paragraph to read: 2
(69) "nicotine" includes a chemical or chemical compound intended, 3
when introduced into the human body, to mimic or simulate the effect of nicotine from 4
tobacco. 5
* Sec. 12. AS 43.50.070 is amended to read: 6
Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 7
(a) The department may suspend, revoke, or refuse to renew a license issued under this 8
chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 9
11.76.109, or a violation of this chapter or a regulation of the department adopted 10
under this chapter; (2) if a licensee ceases to act in the capacity for which the license 11
was issued; or (3) if a licensee negligently sells tobacco or products containing 12
tobacco to a person who is required to, but does not, hold a license endorsement under 13
AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 14
A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 15
products, or electronic smoking products, or permit cigarettes, [OR] tobacco 16
products, or electronic smoking products to be sold, during the period of the 17
suspension or revocation on the premises occupied or controlled by that person. A 18
disciplinary proceeding or action is not barred or abated by the expiration, transfer, 19
surrender, renewal, or extension of a license issued under this chapter. The department 20
shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 21
that a hearing officer of the department, rather than a hearing officer assigned under 22
AS 44.62.350, may conduct hearings. 23
(b) In this section, "licensee" means a person licensed under AS 43.50.010 - 24
43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 25
* Sec. 13. AS 43.50.105(b) is amended to read: 26
(b) A person who is licensed under this chapter may not ship or cause to be 27
shipped cigarettes to a person in this state unless the person receiving the cigarettes 28
(1) is licensed under this chapter; 29
(2) holds a business license endorsement under AS 43.70.075; 30
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 31 33-LS0785\A
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1311 or 19 U.S.C. 1555; 1
(4) is an instrumentality of the federal government or an Indian tribal 2
organization authorized by law to possess cigarettes not taxed under this chapter; or 3
(5) is an individual 21 [19] years of age or older and the individual's 4
age was verified at the time of purchase by a third-party verification service, the 5
individual is receiving the cigarettes for personal consumption, and the tax imposed 6
on the cigarettes under this chapter has been paid. 7
* Sec. 14. AS 43.50.105(c) is amended to read: 8
(c) A common or contract carrier may not knowingly transport cigarettes to a 9
person in this state unless the person 10
(1) shipping the cigarettes is licensed under this chapter and, before 11
shipment, provides the common or contract carrier with a copy of the person's current 12
license issued by the department and 13
(A) an affidavit from the intended recipient certifying that the 14
person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 15
(5)] of this section; or 16
(B) the common or contract carrier verifies the age of the 17
recipient as 21 years of age or older before delivery; or 18
(2) receiving the cigarettes is a person described under (a)(2) or (3) of 19
this section or is licensed under this chapter and, before receipt, provides the common 20
or contract carrier with a copy of the person's current license issued by the department. 21
* Sec. 15. AS 43.50.150(c) is amended to read: 22
(c) The department may enter into an agreement with a municipality that 23
imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 24
products for the purpose of jointly auditing a person liable for a tax under 25
AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 26
cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 27
* Sec. 16. AS 43.50 is amended by adding a new section to read: 28
Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 29
(a) A person who is not licensed under this chapter may not ship or cause to be 30
shipped a tobacco product to a person in this state unless the person receiving the 31 33-LS0785\A
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tobacco product is 1
(1) licensed under this chapter; 2
(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 3
or 19 U.S.C. 1555; or 4
(3) an instrumentality of the federal government or an Indian tribal 5
organization authorized by law to possess tobacco products not taxed under this 6
chapter. 7
(b) A person who is licensed under this chapter may not ship or cause to be 8
shipped a tobacco product to a person in this state unless the person receiving the 9
tobacco product 10
(1) is licensed under this chapter; 11
(2) holds a business license endorsement under AS 43.70.075; 12
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 13
1311 or 19 U.S.C. 1555; 14
(4) is an instrumentality of the federal government or an Indian tribal 15
organization authorized by law to possess tobacco products not taxed under this 16
chapter; or 17
(5) is an individual 21 years of age or older and the individual's age 18
was verified at the time of purchase though a third-party verification service, the 19
individual is receiving the tobacco product for personal consumption, and the tax 20
imposed on the tobacco product under this chapter has been paid. 21
(c) A common or contract carrier may not knowingly transport a tobacco 22
product to a person in this state unless the person 23
(1) shipping the tobacco product is licensed under this chapter and, 24
before shipment, provides the common or contract carrier with a copy of the person's 25
current license issued by the department and 26
(A) an affidavit from the intended recipient certifying that the 27
person receiving the tobacco product is a person described under (b)(1) - (4) of 28
this section; or 29
(B) the common or contract carrier verifies the age of the 30
recipient as 21 years of age or older before delivery; or 31 33-LS0785\A
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(2) receiving the tobacco product is a person described under (a)(2) or 1
(3) of this section or is licensed under this chapter and, before receipt, provides the 2
common or contract carrier with a copy of the person's current license issued by the 3
department. 4
(d) If a tobacco product is transported by a common or contract carrier to a 5
home or residence, it is rebuttably presumed that the common or contract carrier knew 6
that the recipient of the tobacco product was not a person described under (b)(1) - (5) 7
of this section, unless the person shipping the tobacco product has satisfied the 8
requirements in (c)(1) of this section. 9
(e) A person, other than a common or contract carrier, may not knowingly 10
transport a tobacco product to a person in this state, unless the recipient of the tobacco 11
product is a person described under (b)(1) - (5) of this section. 12
(f) A person who ships or causes to be shipped a tobacco product to a person 13
in this state shall plainly and visibly mark the container or wrapping with the words 14
"tobacco product" if the tobacco product is shipped in a container or wrapping other 15
than the manufacturer's original container or wrapping of the tobacco product. 16
(g) A person who violates the provisions of this section is guilty of a class A 17
misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 18
tobacco product. 19
(h) In addition to the criminal penalty under (g) of this section, the department 20
may assess a civil penalty of not more than $5,000 for each violation of this section. 21
(i) A person who violates the provisions of this section is jointly and severally 22
liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 23
permitted by the Constitution of the United States, a person who violates the 24
provisions of this section is required to collect the taxes and pay them to the 25
department. 26
* Sec. 17. AS 43.50 is amended by adding new sections to read: 27
Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 28
Sec. 43.50.850. Tax levied. A tax is levied on closed electronic smoking 29
products and vapor products in the state. The tax is 25 percent of the retail sales price 30
of a closed electronic smoking product or a vapor product. 31 33-LS0785\A
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Sec. 43.50.855. Exemptions. (a) The tax does not apply to 1
(1) a closed electronic smoking product or vapor product 2
(A) sold in a facility operated by one of the uniformed services 3
of the United States; 4
(B) approved for sale by the United States Food and Drug 5
Administration as a drug, drug product, including a drug product used to treat 6
tobacco dependence, or combination product under 21 U.S.C. 301 - 392 7
(Federal Food, Drug, and Cosmetic Act); 8
(C) if the United States Constitution or other federal laws 9
prohibit the levying of the tax on the product by the state; 10
(D) designed, marketed, and sold for the purpose of vaporizing 11
or aerosolizing marijuana, marijuana products, hemp, or hemp products and 12
intended for sale only in a retail marijuana store; 13
(2) marijuana or marijuana products subject to tax under AS 43.61 if 14
the marijuana or marijuana products do not contain nicotine; or 15
(3) hemp or hemp products if the hemp or hemp products do not 16
contain nicotine. 17
(b) In this section, 18
(1) "hemp" and "hemp products" mean hemp or a hemp product 19
produced by an individual registered under AS 03.05.076; 20
(2) "marijuana," "marijuana products," and "retail marijuana store" 21
have the meanings given in AS 17.38.900; 22
(3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 23
Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 24
person must be licensed by the department if the person engages in business as a 25
retailer of an electronic smoking product. 26
(b) The department, upon application and payment of a fee of $50, shall issue 27
a license for one year to a person who applies for a license under (a) of this section. 28
(c) The department may refuse to issue a license under this section if 29
(1) there is reasonable cause to believe the information submitted in 30
the application is false or misleading and is not made in good faith; 31 33-LS0785\A
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(2) the applicant is not in good standing under AS 10.06 (Alaska 1
Corporations Code); or 2
(3) a tax levied under this chapter is due and unpaid by the applicant. 3
(d) A license issued under this section must include the name and address of 4
the licensee, the type of business to be conducted, and the year for which the license is 5
issued. 6
(e) The department may renew a license issued under this section for a fee of 7
$50 if the applicant 8
(1) is in good standing under AS 10.06 (Alaska Corporations Code); 9
and 10
(2) does not have unpaid taxes under this chapter. 11
(f) The department may suspend, revoke, or refuse to renew a license issued 12
under this section as provided in AS 43.50.070. 13
(g) A license required by this section is in addition to any other license 14
required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 15
or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 16
(h) A license issued under this section is not assignable or transferable, except 17
that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 18
if the business of the licensee is transferred to another by operation of law, the 19
department may extend the license for a limited time to the executor, administrator, 20
trustee, receiver, or transferee. 21
(i) A person licensed under this section may not 22
(1) distribute an electronic smoking product designed or packaged so 23
as not to be clearly recognizable as an electronic smoking product; or 24
(2) market an electronic smoking product, including a flavored 25
electronic smoking product, in a manner likely to promote use of the electronic 26
smoking product by a person under 21 years of age. 27
Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 28
licensee shall file a return with the department. The return must state the number or 29
amount of closed electronic smoking products, vapor products, and other electronic 30
smoking products sold by the licensee during the preceding calendar month, the 31 33-LS0785\A
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selling price of the electronic smoking products, and the amount of tax imposed on the 1
closed electronic smoking products and vapor products. 2
Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 3
of all electronic smoking products of the licensee, including purchase prices, sales 4
prices, the names and addresses of the sellers, the dates of delivery, the quantities of 5
electronic smoking products, and the trade names and brands. Statements and records 6
required by this section must be in the form prescribed by the department, preserved 7
for three years, and available for inspection upon demand by the department. 8
Sec. 43.50.875. Disposition of proceeds. The department shall separately 9
account for tax collected on closed electronic smoking products and vapor products 10
under AS 43.50.850. The annual estimated balance in the account may be appropriated 11
by the legislature to provide for 12
(1) health care, health research, health promotion, and health 13
education; 14
(2) health programs, education, or advertising related to the hazards of 15
electronic smoking products; or 16
(3) efforts to prevent or detect the use of tobacco or electronic smoking 17
products in a school, including the hiring of health advocates or for electronic smoking 18
product detection devices. 19
Sec. 43.50.880. Restrictions on shipping or transporting electronic 20
smoking products. (a) A person who is not licensed under this chapter may not ship 21
or cause to be shipped an electronic smoking product to a person in this state unless 22
the person receiving the electronic smoking product is 23
(1) licensed under this chapter; 24
(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 25
or 19 U.S.C. 1555; or 26
(3) an instrumentality of the federal government or an Indian tribal 27
organization authorized by law to possess electronic smoking products not taxed under 28
this chapter. 29
(b) A person who is licensed under this chapter may not ship or cause to be 30
shipped an electronic smoking product to a person in this state unless the person 31 33-LS0785\A
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receiving the electronic smoking product 1
(1) is licensed under this chapter; 2
(2) holds a business license endorsement under AS 43.70.075; 3
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 4
1311 or 19 U.S.C. 1555; 5
(4) is an instrumentality of the federal government or an Indian tribal 6
organization authorized by law to possess electronic smoking products not taxed under 7
this chapter; or 8
(5) is an individual 21 years of age or older and the individual's age 9
was verified at the time of purchase though a third-party verification service, the 10
individual is receiving the electronic smoking product for personal consumption, and 11
the tax imposed on the electronic smoking product under this chapter has been paid. 12
(c) A common or contract carrier may not knowingly transport an electronic 13
smoking product to a person in this state unless the person 14
(1) shipping the electronic smoking product is licensed under this 15
chapter and, before shipment, provides the common or contract carrier with a copy of 16
the person's current license issued by the department and 17
(A) an affidavit from the intended recipient certifying that the 18
person receiving the electronic smoking product is a person described under 19
(b)(1) - (4) of this section; or 20
(B) the common or contract carrier verifies the age of the 21
recipient as 21 years of age or older before delivery; or 22
(2) receiving the electronic smoking product is a person described 23
under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 24
provides the common or contract carrier with a copy of the person's current license 25
issued by the department. 26
(d) If an electronic smoking product is transported by a common or contract 27
carrier to a home or residence, it is rebuttably presumed that the common or contract 28
carrier knew that the recipient of the electronic smoking product was not a person 29
described under (b)(1) - (5) of this section, unless the person shipping the electronic 30
smoking product has satisfied the requirements in (c)(1) of this section. 31 33-LS0785\A
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(e) A person, other than a common or contract carrier, may not knowingly 1
transport an electronic smoking product to a person in this state, unless the recipient of 2
the electronic smoking product is a person described under (b)(1) - (5) of this section. 3
(f) A person who ships or causes to be shipped an electronic smoking product 4
to a person in this state shall plainly and visibly mark the container or wrapping with 5
the words "electronic smoking product" if the electronic smoking product is shipped in 6
a container or wrapping other than the manufacturer's original container or wrapping 7
of the electronic smoking product. 8
(g) A person who violates the provisions of this section is guilty of a class A 9
misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 10
electronic smoking product. 11
(h) In addition to the criminal penalty under (g) of this section, the department 12
may assess a civil penalty of not more than $5,000 for each violation of this section. 13
(i) A person who violates the provisions of this section is jointly and severally 14
liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 15
Constitution of the United States, a person who violates the provisions of this section 16
is required to collect the taxes and pay them to the department. 17
Sec. 43.50.885. Restrictions on electronic smoking products. A person may 18
sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 19
for sale or distribution in this state, or import or cause to be imported into this state for 20
sale or distribution in this state only electronic smoking products 21
(1) for which the component vapor product 22
(A) has a nicotine content of less than 60 milligrams of nicotine 23
for each milliliter of vapor product; 24
(B) is protected from breakage and leakage; 25
(C) does not contain added vitamins or other additives 26
marketed to create the impression of health benefits; in this subparagraph, 27
"vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 28
stimulants, and colorants; 29
(2) that are packaged to be child- and tamper-proof; and 30
(3) that are labeled to inform consumers about all vapor product 31 33-LS0785\A
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ingredients and nicotine content. 1
Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 2
(1) means the total amount of consideration, including cash, credit, 3
property, and services, for which an electronic smoking product is purchased or sold, 4
valued in money, whether received in money or otherwise, without any deduction for 5
(A) the seller's cost of the electronic smoking product sold; 6
(B) the cost of materials used, labor or service cost, interest, 7
losses, cost of transportation, taxes, or other expenses of the seller; 8
(C) charges by the seller for services necessary to complete the 9
sale; 10
(D) delivery charges; 11
(2) does not include 12
(A) discounts, including cash or coupons that are not 13
reimbursed by a third party, that are allowed by a seller and taken by a 14
purchaser on a sale; 15
(B) interest, financing, and carrying charges from credit 16
extended on the sale of an electronic smoking product if the amount is 17
separately stated on the invoice, bill of sale, or similar document given to the 18
purchaser; and 19
(C) taxes legally imposed directly on the consumer that are 20
separately stated on the invoice, bill of sale, or similar document given to the 21
purchaser. 22
Article 9. General Provisions. 23
Sec. 43.50.990. Definitions. In this chapter, 24
(1) "closed electronic smoking product" means a single-use electronic 25
smoking product that includes a pre-filled disposable cartridge of vapor product; 26
(2) "electronic smoking product" 27
(A) includes 28
(i) a product that can be used to deliver aerosolized or 29
vaporized nicotine to the person inhaling; 30
(ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 31 33-LS0785\A
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or other similar device of any shape; 1
(iii) a component, part, accessory, or device related to 2
an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 3
device of any shape; 4
(iv) a vapor product used in a device or product 5
described in (i) or (ii) of this subparagraph; 6
(v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 7
or other similar device of any shape sold together with a solution, vapor 8
product, or other similar product as a disposable nonrefillable unit; 9
(B) does not include a 10
(i) battery, battery charger, heating element, electronic 11
coil, or mouthpiece intended for use in an electronic smoking product, 12
when sold separately from the electronic smoking product; 13
(ii) cartridge, pod, tank, or similar container intended to 14
transport a vapor product, if sold empty; 15
(3) "nicotine" has the meaning given in AS 11.81.900(b); 16
(4) "retailer" means a person in the state who is engaged in the 17
business of selling electronic smoking products at retail; 18
(5) "vapor product" means a substance intended to be aerosolized or 19
vaporized during the use of an electronic smoking product. 20
* Sec. 18. AS 43.70.075(f) is amended to read: 21
(f) A person who holds a license endorsement issued under this section shall 22
post on the licensed premises a warning sign as described in this subsection. A 23
warning sign required by this subsection must be at least 8.5 inches by 11 inches and 24
must read: "The sale of electronic smoking products or products containing nicotine 25
without a prescription or tobacco products to persons under age 21 [19] is illegal." A 26
person holding an endorsement issued under this section shall display the warning sign 27
in a manner conspicuous to a person purchasing or consuming tobacco products, 28
electronic smoking products, or products containing nicotine on the licensed premises. 29
The department shall make available the warning signs required under this section to a 30
person who holds an endorsement issued under this section or a person who requests 31 33-LS0785\A
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the sign with the intention of displaying it. 1
* Sec. 19. AS 43.70.075(m) is amended to read: 2
(m) The department may initiate suspension of a business license endorsement 3
or the right to obtain a business license endorsement under this section by sending the 4
person subject to the suspension a notice by certified mail, return receipt requested, or 5
by delivering the notice to the person. The notice must contain information that 6
informs the person of the grounds for suspension, the length of any suspension sought, 7
and the person's right to administrative review. A suspension begins 30 days after 8
receipt of notice described in this subsection unless the person delivers a timely 9
written request for a hearing to the department in the manner provided by regulations 10
of the department. If a hearing is requested under this subsection, an administrative 11
law judge of the office of administrative hearings (AS 44.64.010) shall determine the 12
issues by using the preponderance of the evidence test and shall, to the extent they do 13
not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 14
manner provided by regulations of the department. A hearing under this subsection is 15
limited to the following questions: 16
(1) was the person holding the business license endorsement, or an 17
agent or employee of the person while acting within the scope of the agency or 18
employment of the person, convicted by plea or judicial finding of violating 19
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 20
(2) if the department does not allege a conviction of AS 11.76.100, 21
11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 22
person while acting within the scope of the agency or employment of the person, 23
violate a provision of (a) or (g) of this section; 24
(3) within the 24 months before the date of the department's notice 25
under this subsection, was the person, or an agent or employee of the person while 26
acting within the scope of the agency or employment of the person, convicted of 27
violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 28
violating a provision of (a) or (g) of this section; 29
(4) did the person holding the business license endorsement establish 30
that the person holding the business license endorsement had adopted and enforced an 31 33-LS0785\A
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education, a compliance, and a disciplinary program for agents and employees of the 1
person as provided in (t) of this section; 2
(5) did the person holding the business license endorsement overcome 3
the rebuttable presumption established in (w) of this section; 4
(6) within five years before the date of the violation that is the subject 5
of the hearing, did the department establish that the person holding the business 6
license endorsement 7
(A) previously violated (a) or (g) of this section; 8
(B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 9
11.76.109 at a location or outlet in a location for which the person holds a 10
business license endorsement, or had an agent or employee previously violate 11
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 12
apply to a prior conviction that served to enhance a suspension period under 13
(d)(2) - (4) of this section; or 14
(C) engaged at a location owned by the person in other conduct 15
that was or is likely to result in the sale of tobacco, electronic smoking 16
products, or products containing nicotine to a person under 21 [19] years of 17
age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 18
* Sec. 20. AS 43.70.075(t) is amended to read: 19
(t) Based on evidence provided at the hearing under (m)(4) - (6) of this 20
section, the department may reduce the license suspension period under (d) of this 21
section if the person holding the business license endorsement establishes that, before 22
the date of the violation, the person had 23
(1) adopted and enforced a written policy against selling cigarettes, 24
cigars, tobacco, products containing tobacco, electronic smoking products, or products 25
containing nicotine to a person under 21 [19] years of age in violation of 26
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 27
(2) informed the person's agents and employees of the applicable laws 28
and their requirements and conducted training on complying with the laws and 29
requirements; 30
(3) required each agent and employee of the person to sign a form 31 33-LS0785\A
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stating that the agent and employee has been informed of and understands the written 1
policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 2
(4) determined that the agents and employees of the person had 3
sufficient experience and ability to comply with the written policy and requirements of 4
AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 5
(5) required the agents and employees of the person to verify the age 6
of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 7
electronic smoking products, or products containing nicotine by means of a valid 8
government issued photographic identification; 9
(6) established and enforced disciplinary sanctions for noncompliance 10
with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 11
and 11.76.109; and 12
(7) monitored the compliance of the agents and employees of the 13
person with the written policy and the requirements of AS 11.76.100, 11.76.106, 14
11.76.107, and 11.76.109. 15
* Sec. 21. AS 43.70.075(w) is amended to read: 16
(w) For purposes of (m)(5) of this section, a conviction for a violation of 17
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 18
person who holds the business license endorsement is rebuttably presumed to 19
constitute proof of the fact that the agent or employee negligently sold a cigarette, a 20
cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 21
product containing nicotine to a person under 21 [19] years of age. The person who 22
holds the business license endorsement may overcome the presumption by 23
establishing by clear and convincing evidence that the agent or employee did not 24
negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 25
electronic smoking product, or a product containing nicotine to a person under 21 [19] 26
years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 27
alleged in the citation issued to the agent or employee. The presentation of evidence 28
authorized by this subsection does not constitute a collateral attack on the conviction 29
described in this subsection. 30
* Sec. 22. AS 45.50.471(b) is amended by adding a new paragraph to read: 31 33-LS0785\A
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(58) marketing an electronic smoking product in a manner likely to 1
promote use of electronic smoking products by a person under 21 years of age; in this 2
paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 3
* Sec. 23. AS 47.12.030(b) is amended to read: 4
(b) When a minor is accused of violating a statute specified in this subsection, 5
other than a statute the violation of which is a felony, this chapter and the Alaska 6
Delinquency Rules do not apply and the minor accused of the offense shall be 7
charged, prosecuted, and sentenced in the district court in the same manner as an 8
adult; if a minor is charged, prosecuted, and sentenced for an offense under this 9
subsection, the minor's parent, guardian, or legal custodian shall be present at all 10
proceedings; the provisions of this subsection apply when a minor is accused of 11
violating 12
(1) a traffic statute or regulation, or a traffic ordinance or regulation of 13
a municipality; 14
(2) AS 11.76.105, relating to the possession of tobacco by a person 15
under 21 [19] years of age; 16
(3) a fish and game statute or regulation under AS 16; 17
(4) a parks and recreational facilities statute or regulation under 18
AS 41.21; 19
(5) [REPEALED] 20
(6) a municipal curfew ordinance, whether adopted under 21
AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 22
ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 23
the violation of a municipal curfew ordinance, the court shall allow a defendant the 24
option of performing community work; the value of the community work, which may 25
not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 26
in this paragraph, "community work" includes the work described in AS 12.55.055(b) 27
or work that, on the recommendation of the municipal or borough assembly, city 28
council, or traditional village council of the defendant's place of residence, would 29
benefit persons within the municipality or village who are elderly or disabled; 30
(7) AS 04.16.050, relating to consumption, possession, or control of 31 33-LS0785\A
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alcohol by a person under 21 years of age. 1
* Sec. 24. AS 11.76.100(e) and 11.76.106(b)(4) are repealed. 2
* Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 3
read: 4
APPLICABILITY. (a) The following sections apply to offenses committed on or after 5
the effective date of those sections: 6
(1) AS 11.76.100(a), as amended by sec. 1 of this Act; 7
(2) AS 11.76.100(b), as amended by sec. 2 of this Act; 8
(3) AS 11.76.105, as amended by sec. 3 of this Act; 9
(4) AS 11.76.105(d), enacted by sec. 4 of this Act; 10
(5) AS 11.76.106(a), as amended by sec. 5 of this Act; 11
(6) AS 11.76.106(b), as amended by sec. 6 of this Act; 12
(7) AS 11.76.109(a), as amended by sec. 7 of this Act; 13
(8) AS 11.76.109(b), as amended by sec. 8 of this Act; 14
(9) AS 11.76.109(d), as amended by sec. 9 of this Act; 15
(10) AS 11.76.109(g), as amended by sec. 10 of this Act; 16
(11) AS 11.81.900(b)(69), enacted by sec. 11 of this Act; 17
(12) AS 43.50.325, enacted by sec. 16 of this Act; 18
(13) AS 43.50.880, enacted by sec. 17 of this Act; and 19
(14) AS 47.12.030(b), as amended by sec. 23 of this Act. 20
(b) AS 11.76.100(a)(4), as amended by sec. 1 of this Act, and AS 11.76.109(a)(4), as 21
amended by sec. 7 of this Act, do not apply to a person 19 years of age or older who is 22
employed on the effective date of secs. 1 and 7 of this Act by a person with a business license 23
endorsement under AS 43.70.075. 24
* Sec. 26. This Act takes effect January 1, 2024. 25