Alaska 2023-2024 Regular Session

Alaska House Bill HB176 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2	HB0176a -1- HB 176
3	3	New Text Underlined [DELETED TEXT BRACKETED]
4	4
5	5	33-LS0785\A
6	6
7	7
8	8
9	9
10	10
11	11	HOUSE BILL NO. 176
12	12
13	13	IN THE LEGISLATURE OF THE STATE OF ALASKA
14	14
15	15	THIRTY-THIRD LEGISLATURE - FIRST SESSION
16	16
17	17	BY REPRESENTATIVES HANNAN, Galvin
18	18
19	19	Introduced: 4/24/23
20	20	Referred:
21	21
22	22
23	23	A BILL
24	24
25	25	FOR AN ACT ENTITLED
26	26
27	27	"An Act relating to tobacco, tobacco products, electronic smoking products, nicotine, 1
28	28	and products containing nicotine; raising the minimum age to purchase, sell, exchange, 2
29	29	or possess tobacco, a product containing nicotine, or an electronic smoking product; 3
30	30	relating to the taxation of electronic smoking products and vapor products; and 4
31	31	providing for an effective date." 5
32	32	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
33	33	* Section 1. AS 11.76.100(a) is amended to read: 7
34	34	(a) A person commits the offense of selling or giving tobacco to a person
35	35	8
36	36	under 21 years of age [MINOR] if the person 9
37	37	(1) negligently sells a cigarette, a cigar, tobacco, or a product 10
38	38	containing tobacco to a person under 21 [19] years of age; 11
39	39	(2) is 21 [19] years of age or older and negligently exchanges or gives 12
40	40	a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 13 33-LS0785\A
41	41	HB 176 -2- HB0176a
42	42	New Text Underlined [DELETED TEXT BRACKETED]
43	43
44	44	years of age; 1
45	45	(3) maintains a vending machine that dispenses cigarettes, cigars, 2
46	46	tobacco, or products containing tobacco; or 3
47	47	(4) holds a business license endorsement under AS 43.70.075 and 4
48	48	allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 5
49	49	product containing tobacco. 6
50	50	* Sec. 2. AS 11.76.100(b), as amended by sec. 153, ch. 8, SLA 2022, is amended to read: 7
51	51	(b) Notwithstanding the provisions of (a) of this section, a person who 8
52	52	maintains a vending machine is not in violation of (a)(3) of this section if the vending 9
53	53	machine is located 10
54	54	(1) on premises licensed as a beverage dispensary under AS 04.09.200 11
55	55	or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 12
56	56	under AS 04.09.230 and 13
57	57	(A) as far as practicable from the primary entrance; and 14
58	58	(B) in a place that is directly and continually supervised by a 15
59	59	person employed on the licensed premises during the hours the vending 16
60	60	machine is accessible to the public; or 17
61	61	(2) in an employee break room or other controlled area of a private 18
62	62	work place that is not generally considered a public place and the room or area 19
63	63	contains a posted warning sign at least 11 inches by 14 inches indicating that 20
64	64	possession of tobacco by a person under 21 [19] years of age is prohibited under 21
65	65	AS 11.76.105. 22
66	66	* Sec. 3. AS 11.76.105 is amended to read: 23
67	67	Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 24
68	68	products containing nicotine by a person under 21 years of age [MINOR]. (a) A 25
69	69	person under 21 [19] years of age may not knowingly possess a cigarette, a cigar, 26
70	70	tobacco, a product containing tobacco, an electronic smoking product, or a product 27
71	71	containing nicotine in this state. [THIS SUBSECTION DOES NOT APPLY TO A 28
72	72	PERSON WHO IS A PRISONER AT AN ADULT CORRECTIONAL FACILITY.] 29
73	73	(b) In a prosecution under (a) of this section for possession of an electronic 30
74	74	smoking product or a product containing nicotine, it is an affirmative defense that the 31 33-LS0785\A
75	75	HB0176a -3- HB 176
76	76	New Text Underlined [DELETED TEXT BRACKETED]
77	77
78	78	electronic smoking product or product containing nicotine possessed by the person 1
79	79	under 21 [19] years of age was intended or expected to be consumed without being 2
80	80	combusted, and the electronic smoking product or product containing nicotine 3
81	81	(1) has been approved by the United States Food and Drug 4
82	82	Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 5
83	83	or for other medical purposes; 6
84	84	(2) was being marketed and sold for the approved purposes; and 7
85	85	(3) was 8
86	86	(A) prescribed by a health care professional; 9
87	87	(B) given to the person by the person's parent or guardian; 10
88	88	(C) provided by a state-approved tobacco cessation program 11
89	89	administered by the Department of Health; or 12
90	90	(D) provided by a pharmacist to a person 18 years of age or 13
91	91	older without a prescription. 14
92	92	(c) Possession of tobacco, an electronic smoking product, or a product 15
93	93	containing nicotine by a person under 21 years of age [MINOR] is a violation 16
94	94	punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 17
95	95	place of any fine imposed for the violation of this subsection, the court may refer 18
96	96	a defendant, at the request of the defendant, to a tobacco education program. 19
97	97	* Sec. 4. AS 11.76.105 is amended by adding a new subsection to read: 20
98	98	(d) The supreme court shall establish by rule or order a schedule of bail 21
99	99	amounts that may be forfeited without court appearance for a violation of this section. 22
100	100	* Sec. 5. AS 11.76.106(a) is amended to read: 23
101	101	(a) Except as provided under (b) of this section, a person may not sell 24
102	102	cigarettes, cigars, tobacco, products containing tobacco, electronic smoking products, 25
103	103	or products containing nicotine 26
104	104	(1) unless the sale occurs in a manner that allows only the sales clerk 27
105	105	to control access to the cigarettes, cigars, tobacco, products containing tobacco, 28
106	106	electronic smoking products, or products containing nicotine; 29
107	107	(2) over the Internet to an individual for the individual's personal 30
108	108	consumption. 31 33-LS0785\A
109	109	HB 176 -4- HB0176a
110	110	New Text Underlined [DELETED TEXT BRACKETED]
111	111
112	112	* Sec. 6. AS 11.76.106(b) is amended to read: 1
113	113	(b) Subsection (a) does not apply if the sale 2
114	114	(1) is by vending machine as provided under AS 11.76.100(b) or 3
115	115	11.76.109(d); 4
116	116	(2) is a wholesale transaction, the person is licensed as a manufacturer 5
117	117	or distributor under AS 43.50.010, and the sale occurs on premises where no retail 6
118	118	transactions occur; 7
119	119	(3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 8
120	120	products containing tobacco, electronic smoking products, or products containing 9
121	121	nicotine and who restricts access to the premises to only those individuals who are 21 10
122	122	[19] years of age or older; or 11
123	123	(4) is of electronic smoking products over the Internet to a person 19 12
124	124	years of age or older. 13
125	125	* Sec. 7. AS 11.76.109(a) is amended to read: 14
126	126	(a) A person commits the offense of selling or giving an electronic smoking 15
127	127	product or a product containing nicotine to a person under 21 years of age [MINOR] 16
128	128	if the person 17
129	129	(1) negligently sells an electronic smoking product or a product 18
130	130	containing nicotine to a person under 21 [19] years of age; 19
131	131	(2) is 21 [19] years of age or older and negligently exchanges or gives 20
132	132	an electronic smoking product or a product containing nicotine to a person under 21 21
133	133	[19] years of age; 22
134	134	(3) maintains a vending machine that dispenses electronic smoking 23
135	135	products or products containing nicotine; or 24
136	136	(4) holds a business license endorsement under AS 43.70.075 and 25
137	137	allows a person under 21 [19] years of age to sell an electronic smoking product or a 26
138	138	product containing nicotine. 27
139	139	* Sec. 8. AS 11.76.109(b) is amended to read: 28
140	140	(b) The provisions of (a) of this section do not apply to the sale, exchange, or 29
141	141	gift to a person under 21 [19] years of age of an electronic smoking product or a 30
142	142	product containing nicotine that is intended or expected to be consumed without being 31 33-LS0785\A
143	143	HB0176a -5- HB 176
144	144	New Text Underlined [DELETED TEXT BRACKETED]
145	145
146	146	combusted if the electronic smoking product or product containing nicotine 1
147	147	(1) has been approved by the United States Food and Drug 2
148	148	Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 3
149	149	or for other medical purposes; 4
150	150	(2) is being marketed and sold solely for the approved purposes; and 5
151	151	(3) is 6
152	152	(A) prescribed by a health care professional; 7
153	153	(B) given to a person by the person's parent or legal guardian; 8
154	154	(C) provided by a state-approved tobacco cessation program 9
155	155	administered by the Department of Health; or 10
156	156	(D) provided by a pharmacist to a person 18 years of age or 11
157	157	older without a prescription. 12
158	158	* Sec. 9. AS 11.76.109(d), as amended by sec. 155, ch. 8, SLA 2022, is amended to read: 13
159	159	(d) Notwithstanding (a)(3) of this section, a person who maintains a vending 14
160	160	machine is not in violation of (a)(3) of this section if the vending machine is located 15
161	161	(1) on premises licensed as a beverage dispensary under AS 04.09.200 16
162	162	or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 17
163	163	under AS 04.09.230, and is located 18
164	164	(A) as far as practicable from the primary entrance; and 19
165	165	(B) in a place that is directly and continually supervised by a 20
166	166	person employed on the licensed premises during the hours the vending 21
167	167	machine is accessible to the public; or 22
168	168	(2) in an employee break room or other controlled area of a private 23
169	169	work place that is not generally considered a public place and the room or area 24
170	170	contains a posted warning sign at least 11 inches by 8.5 inches indicating that 25
171	171	possession of electronic smoking products or products containing nicotine by a person 26
172	172	under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 27
173	173	[THIS SECTION]. 28
174	174	* Sec. 10. AS 11.76.109(g) is amended to read: 29
175	175	(g) Selling or giving an electronic smoking product or a product containing 30
176	176	nicotine to a person under 21 years of age [MINOR] is a violation and, upon 31 33-LS0785\A
177	177	HB 176 -6- HB0176a
178	178	New Text Underlined [DELETED TEXT BRACKETED]
179	179
180	180	conviction, is punishable by a fine of not less than $300. 1
181	181	* Sec. 11. AS 11.81.900(b) is amended by adding a new paragraph to read: 2
182	182	(69) "nicotine" includes a chemical or chemical compound intended, 3
183	183	when introduced into the human body, to mimic or simulate the effect of nicotine from 4
184	184	tobacco. 5
185	185	* Sec. 12. AS 43.50.070 is amended to read: 6
186	186	Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 7
187	187	(a) The department may suspend, revoke, or refuse to renew a license issued under this 8
188	188	chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 9
189	189	11.76.109, or a violation of this chapter or a regulation of the department adopted 10
190	190	under this chapter; (2) if a licensee ceases to act in the capacity for which the license 11
191	191	was issued; or (3) if a licensee negligently sells tobacco or products containing 12
192	192	tobacco to a person who is required to, but does not, hold a license endorsement under 13
193	193	AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 14
194	194	A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 15
195	195	products, or electronic smoking products, or permit cigarettes, [OR] tobacco 16
196	196	products, or electronic smoking products to be sold, during the period of the 17
197	197	suspension or revocation on the premises occupied or controlled by that person. A 18
198	198	disciplinary proceeding or action is not barred or abated by the expiration, transfer, 19
199	199	surrender, renewal, or extension of a license issued under this chapter. The department 20
200	200	shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 21
201	201	that a hearing officer of the department, rather than a hearing officer assigned under 22
202	202	AS 44.62.350, may conduct hearings. 23
203	203	(b) In this section, "licensee" means a person licensed under AS 43.50.010 - 24
204	204	43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 25
205	205	* Sec. 13. AS 43.50.105(b) is amended to read: 26
206	206	(b) A person who is licensed under this chapter may not ship or cause to be 27
207	207	shipped cigarettes to a person in this state unless the person receiving the cigarettes 28
208	208	(1) is licensed under this chapter; 29
209	209	(2) holds a business license endorsement under AS 43.70.075; 30
210	210	(3) is an operator of a customs bonded warehouse under 19 U.S.C. 31 33-LS0785\A
211	211	HB0176a -7- HB 176
212	212	New Text Underlined [DELETED TEXT BRACKETED]
213	213
214	214	1311 or 19 U.S.C. 1555; 1
215	215	(4) is an instrumentality of the federal government or an Indian tribal 2
216	216	organization authorized by law to possess cigarettes not taxed under this chapter; or 3
217	217	(5) is an individual 21 [19] years of age or older and the individual's 4
218	218	age was verified at the time of purchase by a third-party verification service, the 5
219	219	individual is receiving the cigarettes for personal consumption, and the tax imposed 6
220	220	on the cigarettes under this chapter has been paid. 7
221	221	* Sec. 14. AS 43.50.105(c) is amended to read: 8
222	222	(c) A common or contract carrier may not knowingly transport cigarettes to a 9
223	223	person in this state unless the person 10
224	224	(1) shipping the cigarettes is licensed under this chapter and, before 11
225	225	shipment, provides the common or contract carrier with a copy of the person's current 12
226	226	license issued by the department and 13
227	227	(A) an affidavit from the intended recipient certifying that the 14
228	228	person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 15
229	229	(5)] of this section; or 16
230	230	(B) the common or contract carrier verifies the age of the 17
231	231	recipient as 21 years of age or older before delivery; or 18
232	232	(2) receiving the cigarettes is a person described under (a)(2) or (3) of 19
233	233	this section or is licensed under this chapter and, before receipt, provides the common 20
234	234	or contract carrier with a copy of the person's current license issued by the department. 21
235	235	* Sec. 15. AS 43.50.150(c) is amended to read: 22
236	236	(c) The department may enter into an agreement with a municipality that 23
237	237	imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 24
238	238	products for the purpose of jointly auditing a person liable for a tax under 25
239	239	AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 26
240	240	cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 27
241	241	* Sec. 16. AS 43.50 is amended by adding a new section to read: 28
242	242	Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 29
243	243	(a) A person who is not licensed under this chapter may not ship or cause to be 30
244	244	shipped a tobacco product to a person in this state unless the person receiving the 31 33-LS0785\A
245	245	HB 176 -8- HB0176a
246	246	New Text Underlined [DELETED TEXT BRACKETED]
247	247
248	248	tobacco product is 1
249	249	(1) licensed under this chapter; 2
250	250	(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 3
251	251	or 19 U.S.C. 1555; or 4
252	252	(3) an instrumentality of the federal government or an Indian tribal 5
253	253	organization authorized by law to possess tobacco products not taxed under this 6
254	254	chapter. 7
255	255	(b) A person who is licensed under this chapter may not ship or cause to be 8
256	256	shipped a tobacco product to a person in this state unless the person receiving the 9
257	257	tobacco product 10
258	258	(1) is licensed under this chapter; 11
259	259	(2) holds a business license endorsement under AS 43.70.075; 12
260	260	(3) is an operator of a customs bonded warehouse under 19 U.S.C. 13
261	261	1311 or 19 U.S.C. 1555; 14
262	262	(4) is an instrumentality of the federal government or an Indian tribal 15
263	263	organization authorized by law to possess tobacco products not taxed under this 16
264	264	chapter; or 17
265	265	(5) is an individual 21 years of age or older and the individual's age 18
266	266	was verified at the time of purchase though a third-party verification service, the 19
267	267	individual is receiving the tobacco product for personal consumption, and the tax 20
268	268	imposed on the tobacco product under this chapter has been paid. 21
269	269	(c) A common or contract carrier may not knowingly transport a tobacco 22
270	270	product to a person in this state unless the person 23
271	271	(1) shipping the tobacco product is licensed under this chapter and, 24
272	272	before shipment, provides the common or contract carrier with a copy of the person's 25
273	273	current license issued by the department and 26
274	274	(A) an affidavit from the intended recipient certifying that the 27
275	275	person receiving the tobacco product is a person described under (b)(1) - (4) of 28
276	276	this section; or 29
277	277	(B) the common or contract carrier verifies the age of the 30
278	278	recipient as 21 years of age or older before delivery; or 31 33-LS0785\A
279	279	HB0176a -9- HB 176
280	280	New Text Underlined [DELETED TEXT BRACKETED]
281	281
282	282	(2) receiving the tobacco product is a person described under (a)(2) or 1
283	283	(3) of this section or is licensed under this chapter and, before receipt, provides the 2
284	284	common or contract carrier with a copy of the person's current license issued by the 3
285	285	department. 4
286	286	(d) If a tobacco product is transported by a common or contract carrier to a 5
287	287	home or residence, it is rebuttably presumed that the common or contract carrier knew 6
288	288	that the recipient of the tobacco product was not a person described under (b)(1) - (5) 7
289	289	of this section, unless the person shipping the tobacco product has satisfied the 8
290	290	requirements in (c)(1) of this section. 9
291	291	(e) A person, other than a common or contract carrier, may not knowingly 10
292	292	transport a tobacco product to a person in this state, unless the recipient of the tobacco 11
293	293	product is a person described under (b)(1) - (5) of this section. 12
294	294	(f) A person who ships or causes to be shipped a tobacco product to a person 13
295	295	in this state shall plainly and visibly mark the container or wrapping with the words 14
296	296	"tobacco product" if the tobacco product is shipped in a container or wrapping other 15
297	297	than the manufacturer's original container or wrapping of the tobacco product. 16
298	298	(g) A person who violates the provisions of this section is guilty of a class A 17
299	299	misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 18
300	300	tobacco product. 19
301	301	(h) In addition to the criminal penalty under (g) of this section, the department 20
302	302	may assess a civil penalty of not more than $5,000 for each violation of this section. 21
303	303	(i) A person who violates the provisions of this section is jointly and severally 22
304	304	liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 23
305	305	permitted by the Constitution of the United States, a person who violates the 24
306	306	provisions of this section is required to collect the taxes and pay them to the 25
307	307	department. 26
308	308	* Sec. 17. AS 43.50 is amended by adding new sections to read: 27
309	309	Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 28
310	310	Sec. 43.50.850. Tax levied. A tax is levied on closed electronic smoking 29
311	311	products and vapor products in the state. The tax is 25 percent of the retail sales price 30
312	312	of a closed electronic smoking product or a vapor product. 31 33-LS0785\A
313	313	HB 176 -10- HB0176a
314	314	New Text Underlined [DELETED TEXT BRACKETED]
315	315
316	316	Sec. 43.50.855. Exemptions. (a) The tax does not apply to 1
317	317	(1) a closed electronic smoking product or vapor product 2
318	318	(A) sold in a facility operated by one of the uniformed services 3
319	319	of the United States; 4
320	320	(B) approved for sale by the United States Food and Drug 5
321	321	Administration as a drug, drug product, including a drug product used to treat 6
322	322	tobacco dependence, or combination product under 21 U.S.C. 301 - 392 7
323	323	(Federal Food, Drug, and Cosmetic Act); 8
324	324	(C) if the United States Constitution or other federal laws 9
325	325	prohibit the levying of the tax on the product by the state; 10
326	326	(D) designed, marketed, and sold for the purpose of vaporizing 11
327	327	or aerosolizing marijuana, marijuana products, hemp, or hemp products and 12
328	328	intended for sale only in a retail marijuana store; 13
329	329	(2) marijuana or marijuana products subject to tax under AS 43.61 if 14
330	330	the marijuana or marijuana products do not contain nicotine; or 15
331	331	(3) hemp or hemp products if the hemp or hemp products do not 16
332	332	contain nicotine. 17
333	333	(b) In this section, 18
334	334	(1) "hemp" and "hemp products" mean hemp or a hemp product 19
335	335	produced by an individual registered under AS 03.05.076; 20
336	336	(2) "marijuana," "marijuana products," and "retail marijuana store" 21
337	337	have the meanings given in AS 17.38.900; 22
338	338	(3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 23
339	339	Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 24
340	340	person must be licensed by the department if the person engages in business as a 25
341	341	retailer of an electronic smoking product. 26
342	342	(b) The department, upon application and payment of a fee of $50, shall issue 27
343	343	a license for one year to a person who applies for a license under (a) of this section. 28
344	344	(c) The department may refuse to issue a license under this section if 29
345	345	(1) there is reasonable cause to believe the information submitted in 30
346	346	the application is false or misleading and is not made in good faith; 31 33-LS0785\A
347	347	HB0176a -11- HB 176
348	348	New Text Underlined [DELETED TEXT BRACKETED]
349	349
350	350	(2) the applicant is not in good standing under AS 10.06 (Alaska 1
351	351	Corporations Code); or 2
352	352	(3) a tax levied under this chapter is due and unpaid by the applicant. 3
353	353	(d) A license issued under this section must include the name and address of 4
354	354	the licensee, the type of business to be conducted, and the year for which the license is 5
355	355	issued. 6
356	356	(e) The department may renew a license issued under this section for a fee of 7
357	357	$50 if the applicant 8
358	358	(1) is in good standing under AS 10.06 (Alaska Corporations Code); 9
359	359	and 10
360	360	(2) does not have unpaid taxes under this chapter. 11
361	361	(f) The department may suspend, revoke, or refuse to renew a license issued 12
362	362	under this section as provided in AS 43.50.070. 13
363	363	(g) A license required by this section is in addition to any other license 14
364	364	required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 15
365	365	or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 16
366	366	(h) A license issued under this section is not assignable or transferable, except 17
367	367	that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 18
368	368	if the business of the licensee is transferred to another by operation of law, the 19
369	369	department may extend the license for a limited time to the executor, administrator, 20
370	370	trustee, receiver, or transferee. 21
371	371	(i) A person licensed under this section may not 22
372	372	(1) distribute an electronic smoking product designed or packaged so 23
373	373	as not to be clearly recognizable as an electronic smoking product; or 24
374	374	(2) market an electronic smoking product, including a flavored 25
375	375	electronic smoking product, in a manner likely to promote use of the electronic 26
376	376	smoking product by a person under 21 years of age. 27
377	377	Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 28
378	378	licensee shall file a return with the department. The return must state the number or 29
379	379	amount of closed electronic smoking products, vapor products, and other electronic 30
380	380	smoking products sold by the licensee during the preceding calendar month, the 31 33-LS0785\A
381	381	HB 176 -12- HB0176a
382	382	New Text Underlined [DELETED TEXT BRACKETED]
383	383
384	384	selling price of the electronic smoking products, and the amount of tax imposed on the 1
385	385	closed electronic smoking products and vapor products. 2
386	386	Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 3
387	387	of all electronic smoking products of the licensee, including purchase prices, sales 4
388	388	prices, the names and addresses of the sellers, the dates of delivery, the quantities of 5
389	389	electronic smoking products, and the trade names and brands. Statements and records 6
390	390	required by this section must be in the form prescribed by the department, preserved 7
391	391	for three years, and available for inspection upon demand by the department. 8
392	392	Sec. 43.50.875. Disposition of proceeds. The department shall separately 9
393	393	account for tax collected on closed electronic smoking products and vapor products 10
394	394	under AS 43.50.850. The annual estimated balance in the account may be appropriated 11
395	395	by the legislature to provide for 12
396	396	(1) health care, health research, health promotion, and health 13
397	397	education; 14
398	398	(2) health programs, education, or advertising related to the hazards of 15
399	399	electronic smoking products; or 16
400	400	(3) efforts to prevent or detect the use of tobacco or electronic smoking 17
401	401	products in a school, including the hiring of health advocates or for electronic smoking 18
402	402	product detection devices. 19
403	403	Sec. 43.50.880. Restrictions on shipping or transporting electronic 20
404	404	smoking products. (a) A person who is not licensed under this chapter may not ship 21
405	405	or cause to be shipped an electronic smoking product to a person in this state unless 22
406	406	the person receiving the electronic smoking product is 23
407	407	(1) licensed under this chapter; 24
408	408	(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 25
409	409	or 19 U.S.C. 1555; or 26
410	410	(3) an instrumentality of the federal government or an Indian tribal 27
411	411	organization authorized by law to possess electronic smoking products not taxed under 28
412	412	this chapter. 29
413	413	(b) A person who is licensed under this chapter may not ship or cause to be 30
414	414	shipped an electronic smoking product to a person in this state unless the person 31 33-LS0785\A
415	415	HB0176a -13- HB 176
416	416	New Text Underlined [DELETED TEXT BRACKETED]
417	417
418	418	receiving the electronic smoking product 1
419	419	(1) is licensed under this chapter; 2
420	420	(2) holds a business license endorsement under AS 43.70.075; 3
421	421	(3) is an operator of a customs bonded warehouse under 19 U.S.C. 4
422	422	1311 or 19 U.S.C. 1555; 5
423	423	(4) is an instrumentality of the federal government or an Indian tribal 6
424	424	organization authorized by law to possess electronic smoking products not taxed under 7
425	425	this chapter; or 8
426	426	(5) is an individual 21 years of age or older and the individual's age 9
427	427	was verified at the time of purchase though a third-party verification service, the 10
428	428	individual is receiving the electronic smoking product for personal consumption, and 11
429	429	the tax imposed on the electronic smoking product under this chapter has been paid. 12
430	430	(c) A common or contract carrier may not knowingly transport an electronic 13
431	431	smoking product to a person in this state unless the person 14
432	432	(1) shipping the electronic smoking product is licensed under this 15
433	433	chapter and, before shipment, provides the common or contract carrier with a copy of 16
434	434	the person's current license issued by the department and 17
435	435	(A) an affidavit from the intended recipient certifying that the 18
436	436	person receiving the electronic smoking product is a person described under 19
437	437	(b)(1) - (4) of this section; or 20
438	438	(B) the common or contract carrier verifies the age of the 21
439	439	recipient as 21 years of age or older before delivery; or 22
440	440	(2) receiving the electronic smoking product is a person described 23
441	441	under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 24
442	442	provides the common or contract carrier with a copy of the person's current license 25
443	443	issued by the department. 26
444	444	(d) If an electronic smoking product is transported by a common or contract 27
445	445	carrier to a home or residence, it is rebuttably presumed that the common or contract 28
446	446	carrier knew that the recipient of the electronic smoking product was not a person 29
447	447	described under (b)(1) - (5) of this section, unless the person shipping the electronic 30
448	448	smoking product has satisfied the requirements in (c)(1) of this section. 31 33-LS0785\A
449	449	HB 176 -14- HB0176a
450	450	New Text Underlined [DELETED TEXT BRACKETED]
451	451
452	452	(e) A person, other than a common or contract carrier, may not knowingly 1
453	453	transport an electronic smoking product to a person in this state, unless the recipient of 2
454	454	the electronic smoking product is a person described under (b)(1) - (5) of this section. 3
455	455	(f) A person who ships or causes to be shipped an electronic smoking product 4
456	456	to a person in this state shall plainly and visibly mark the container or wrapping with 5
457	457	the words "electronic smoking product" if the electronic smoking product is shipped in 6
458	458	a container or wrapping other than the manufacturer's original container or wrapping 7
459	459	of the electronic smoking product. 8
460	460	(g) A person who violates the provisions of this section is guilty of a class A 9
461	461	misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 10
462	462	electronic smoking product. 11
463	463	(h) In addition to the criminal penalty under (g) of this section, the department 12
464	464	may assess a civil penalty of not more than $5,000 for each violation of this section. 13
465	465	(i) A person who violates the provisions of this section is jointly and severally 14
466	466	liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 15
467	467	Constitution of the United States, a person who violates the provisions of this section 16
468	468	is required to collect the taxes and pay them to the department. 17
469	469	Sec. 43.50.885. Restrictions on electronic smoking products. A person may 18
470	470	sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 19
471	471	for sale or distribution in this state, or import or cause to be imported into this state for 20
472	472	sale or distribution in this state only electronic smoking products 21
473	473	(1) for which the component vapor product 22
474	474	(A) has a nicotine content of less than 60 milligrams of nicotine 23
475	475	for each milliliter of vapor product; 24
476	476	(B) is protected from breakage and leakage; 25
477	477	(C) does not contain added vitamins or other additives 26
478	478	marketed to create the impression of health benefits; in this subparagraph, 27
479	479	"vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 28
480	480	stimulants, and colorants; 29
481	481	(2) that are packaged to be child- and tamper-proof; and 30
482	482	(3) that are labeled to inform consumers about all vapor product 31 33-LS0785\A
483	483	HB0176a -15- HB 176
484	484	New Text Underlined [DELETED TEXT BRACKETED]
485	485
486	486	ingredients and nicotine content. 1
487	487	Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 2
488	488	(1) means the total amount of consideration, including cash, credit, 3
489	489	property, and services, for which an electronic smoking product is purchased or sold, 4
490	490	valued in money, whether received in money or otherwise, without any deduction for 5
491	491	(A) the seller's cost of the electronic smoking product sold; 6
492	492	(B) the cost of materials used, labor or service cost, interest, 7
493	493	losses, cost of transportation, taxes, or other expenses of the seller; 8
494	494	(C) charges by the seller for services necessary to complete the 9
495	495	sale; 10
496	496	(D) delivery charges; 11
497	497	(2) does not include 12
498	498	(A) discounts, including cash or coupons that are not 13
499	499	reimbursed by a third party, that are allowed by a seller and taken by a 14
500	500	purchaser on a sale; 15
501	501	(B) interest, financing, and carrying charges from credit 16
502	502	extended on the sale of an electronic smoking product if the amount is 17
503	503	separately stated on the invoice, bill of sale, or similar document given to the 18
504	504	purchaser; and 19
505	505	(C) taxes legally imposed directly on the consumer that are 20
506	506	separately stated on the invoice, bill of sale, or similar document given to the 21
507	507	purchaser. 22
508	508	Article 9. General Provisions. 23
509	509	Sec. 43.50.990. Definitions. In this chapter, 24
510	510	(1) "closed electronic smoking product" means a single-use electronic 25
511	511	smoking product that includes a pre-filled disposable cartridge of vapor product; 26
512	512	(2) "electronic smoking product" 27
513	513	(A) includes 28
514	514	(i) a product that can be used to deliver aerosolized or 29
515	515	vaporized nicotine to the person inhaling; 30
516	516	(ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 31 33-LS0785\A
517	517	HB 176 -16- HB0176a
518	518	New Text Underlined [DELETED TEXT BRACKETED]
519	519
520	520	or other similar device of any shape; 1
521	521	(iii) a component, part, accessory, or device related to 2
522	522	an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 3
523	523	device of any shape; 4
524	524	(iv) a vapor product used in a device or product 5
525	525	described in (i) or (ii) of this subparagraph; 6
526	526	(v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 7
527	527	or other similar device of any shape sold together with a solution, vapor 8
528	528	product, or other similar product as a disposable nonrefillable unit; 9
529	529	(B) does not include a 10
530	530	(i) battery, battery charger, heating element, electronic 11
531	531	coil, or mouthpiece intended for use in an electronic smoking product, 12
532	532	when sold separately from the electronic smoking product; 13
533	533	(ii) cartridge, pod, tank, or similar container intended to 14
534	534	transport a vapor product, if sold empty; 15
535	535	(3) "nicotine" has the meaning given in AS 11.81.900(b); 16
536	536	(4) "retailer" means a person in the state who is engaged in the 17
537	537	business of selling electronic smoking products at retail; 18
538	538	(5) "vapor product" means a substance intended to be aerosolized or 19
539	539	vaporized during the use of an electronic smoking product. 20
540	540	* Sec. 18. AS 43.70.075(f) is amended to read: 21
541	541	(f) A person who holds a license endorsement issued under this section shall 22
542	542	post on the licensed premises a warning sign as described in this subsection. A 23
543	543	warning sign required by this subsection must be at least 8.5 inches by 11 inches and 24
544	544	must read: "The sale of electronic smoking products or products containing nicotine 25
545	545	without a prescription or tobacco products to persons under age 21 [19] is illegal." A 26
546	546	person holding an endorsement issued under this section shall display the warning sign 27
547	547	in a manner conspicuous to a person purchasing or consuming tobacco products, 28
548	548	electronic smoking products, or products containing nicotine on the licensed premises. 29
549	549	The department shall make available the warning signs required under this section to a 30
550	550	person who holds an endorsement issued under this section or a person who requests 31 33-LS0785\A
551	551	HB0176a -17- HB 176
552	552	New Text Underlined [DELETED TEXT BRACKETED]
553	553
554	554	the sign with the intention of displaying it. 1
555	555	* Sec. 19. AS 43.70.075(m) is amended to read: 2
556	556	(m) The department may initiate suspension of a business license endorsement 3
557	557	or the right to obtain a business license endorsement under this section by sending the 4
558	558	person subject to the suspension a notice by certified mail, return receipt requested, or 5
559	559	by delivering the notice to the person. The notice must contain information that 6
560	560	informs the person of the grounds for suspension, the length of any suspension sought, 7
561	561	and the person's right to administrative review. A suspension begins 30 days after 8
562	562	receipt of notice described in this subsection unless the person delivers a timely 9
563	563	written request for a hearing to the department in the manner provided by regulations 10
564	564	of the department. If a hearing is requested under this subsection, an administrative 11
565	565	law judge of the office of administrative hearings (AS 44.64.010) shall determine the 12
566	566	issues by using the preponderance of the evidence test and shall, to the extent they do 13
567	567	not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 14
568	568	manner provided by regulations of the department. A hearing under this subsection is 15
569	569	limited to the following questions: 16
570	570	(1) was the person holding the business license endorsement, or an 17
571	571	agent or employee of the person while acting within the scope of the agency or 18
572	572	employment of the person, convicted by plea or judicial finding of violating 19
573	573	AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 20
574	574	(2) if the department does not allege a conviction of AS 11.76.100, 21
575	575	11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 22
576	576	person while acting within the scope of the agency or employment of the person, 23
577	577	violate a provision of (a) or (g) of this section; 24
578	578	(3) within the 24 months before the date of the department's notice 25
579	579	under this subsection, was the person, or an agent or employee of the person while 26
580	580	acting within the scope of the agency or employment of the person, convicted of 27
581	581	violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 28
582	582	violating a provision of (a) or (g) of this section; 29
583	583	(4) did the person holding the business license endorsement establish 30
584	584	that the person holding the business license endorsement had adopted and enforced an 31 33-LS0785\A
585	585	HB 176 -18- HB0176a
586	586	New Text Underlined [DELETED TEXT BRACKETED]
587	587
588	588	education, a compliance, and a disciplinary program for agents and employees of the 1
589	589	person as provided in (t) of this section; 2
590	590	(5) did the person holding the business license endorsement overcome 3
591	591	the rebuttable presumption established in (w) of this section; 4
592	592	(6) within five years before the date of the violation that is the subject 5
593	593	of the hearing, did the department establish that the person holding the business 6
594	594	license endorsement 7
595	595	(A) previously violated (a) or (g) of this section; 8
596	596	(B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 9
597	597	11.76.109 at a location or outlet in a location for which the person holds a 10
598	598	business license endorsement, or had an agent or employee previously violate 11
599	599	AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 12
600	600	apply to a prior conviction that served to enhance a suspension period under 13
601	601	(d)(2) - (4) of this section; or 14
602	602	(C) engaged at a location owned by the person in other conduct 15
603	603	that was or is likely to result in the sale of tobacco, electronic smoking 16
604	604	products, or products containing nicotine to a person under 21 [19] years of 17
605	605	age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 18
606	606	* Sec. 20. AS 43.70.075(t) is amended to read: 19
607	607	(t) Based on evidence provided at the hearing under (m)(4) - (6) of this 20
608	608	section, the department may reduce the license suspension period under (d) of this 21
609	609	section if the person holding the business license endorsement establishes that, before 22
610	610	the date of the violation, the person had 23
611	611	(1) adopted and enforced a written policy against selling cigarettes, 24
612	612	cigars, tobacco, products containing tobacco, electronic smoking products, or products 25
613	613	containing nicotine to a person under 21 [19] years of age in violation of 26
614	614	AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 27
615	615	(2) informed the person's agents and employees of the applicable laws 28
616	616	and their requirements and conducted training on complying with the laws and 29
617	617	requirements; 30
618	618	(3) required each agent and employee of the person to sign a form 31 33-LS0785\A
619	619	HB0176a -19- HB 176
620	620	New Text Underlined [DELETED TEXT BRACKETED]
621	621
622	622	stating that the agent and employee has been informed of and understands the written 1
623	623	policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 2
624	624	(4) determined that the agents and employees of the person had 3
625	625	sufficient experience and ability to comply with the written policy and requirements of 4
626	626	AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 5
627	627	(5) required the agents and employees of the person to verify the age 6
628	628	of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 7
629	629	electronic smoking products, or products containing nicotine by means of a valid 8
630	630	government issued photographic identification; 9
631	631	(6) established and enforced disciplinary sanctions for noncompliance 10
632	632	with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 11
633	633	and 11.76.109; and 12
634	634	(7) monitored the compliance of the agents and employees of the 13
635	635	person with the written policy and the requirements of AS 11.76.100, 11.76.106, 14
636	636	11.76.107, and 11.76.109. 15
637	637	* Sec. 21. AS 43.70.075(w) is amended to read: 16
638	638	(w) For purposes of (m)(5) of this section, a conviction for a violation of 17
639	639	AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 18
640	640	person who holds the business license endorsement is rebuttably presumed to 19
641	641	constitute proof of the fact that the agent or employee negligently sold a cigarette, a 20
642	642	cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 21
643	643	product containing nicotine to a person under 21 [19] years of age. The person who 22
644	644	holds the business license endorsement may overcome the presumption by 23
645	645	establishing by clear and convincing evidence that the agent or employee did not 24
646	646	negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 25
647	647	electronic smoking product, or a product containing nicotine to a person under 21 [19] 26
648	648	years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 27
649	649	alleged in the citation issued to the agent or employee. The presentation of evidence 28
650	650	authorized by this subsection does not constitute a collateral attack on the conviction 29
651	651	described in this subsection. 30
652	652	* Sec. 22. AS 45.50.471(b) is amended by adding a new paragraph to read: 31 33-LS0785\A
653	653	HB 176 -20- HB0176a
654	654	New Text Underlined [DELETED TEXT BRACKETED]
655	655
656	656	(58) marketing an electronic smoking product in a manner likely to 1
657	657	promote use of electronic smoking products by a person under 21 years of age; in this 2
658	658	paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 3
659	659	* Sec. 23. AS 47.12.030(b) is amended to read: 4
660	660	(b) When a minor is accused of violating a statute specified in this subsection, 5
661	661	other than a statute the violation of which is a felony, this chapter and the Alaska 6
662	662	Delinquency Rules do not apply and the minor accused of the offense shall be 7
663	663	charged, prosecuted, and sentenced in the district court in the same manner as an 8
664	664	adult; if a minor is charged, prosecuted, and sentenced for an offense under this 9
665	665	subsection, the minor's parent, guardian, or legal custodian shall be present at all 10
666	666	proceedings; the provisions of this subsection apply when a minor is accused of 11
667	667	violating 12
668	668	(1) a traffic statute or regulation, or a traffic ordinance or regulation of 13
669	669	a municipality; 14
670	670	(2) AS 11.76.105, relating to the possession of tobacco by a person 15
671	671	under 21 [19] years of age; 16
672	672	(3) a fish and game statute or regulation under AS 16; 17
673	673	(4) a parks and recreational facilities statute or regulation under 18
674	674	AS 41.21; 19
675	675	(5) [REPEALED] 20
676	676	(6) a municipal curfew ordinance, whether adopted under 21
677	677	AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 22
678	678	ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 23
679	679	the violation of a municipal curfew ordinance, the court shall allow a defendant the 24
680	680	option of performing community work; the value of the community work, which may 25
681	681	not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 26
682	682	in this paragraph, "community work" includes the work described in AS 12.55.055(b) 27
683	683	or work that, on the recommendation of the municipal or borough assembly, city 28
684	684	council, or traditional village council of the defendant's place of residence, would 29
685	685	benefit persons within the municipality or village who are elderly or disabled; 30
686	686	(7) AS 04.16.050, relating to consumption, possession, or control of 31 33-LS0785\A
687	687	HB0176a -21- HB 176
688	688	New Text Underlined [DELETED TEXT BRACKETED]
689	689
690	690	alcohol by a person under 21 years of age. 1
691	691	* Sec. 24. AS 11.76.100(e) and 11.76.106(b)(4) are repealed. 2
692	692	* Sec. 25. The uncodified law of the State of Alaska is amended by adding a new section to 3
693	693	read: 4
694	694	APPLICABILITY. (a) The following sections apply to offenses committed on or after 5
695	695	the effective date of those sections: 6
696	696	(1) AS 11.76.100(a), as amended by sec. 1 of this Act; 7
697	697	(2) AS 11.76.100(b), as amended by sec. 2 of this Act; 8
698	698	(3) AS 11.76.105, as amended by sec. 3 of this Act; 9
699	699	(4) AS 11.76.105(d), enacted by sec. 4 of this Act; 10
700	700	(5) AS 11.76.106(a), as amended by sec. 5 of this Act; 11
701	701	(6) AS 11.76.106(b), as amended by sec. 6 of this Act; 12
702	702	(7) AS 11.76.109(a), as amended by sec. 7 of this Act; 13
703	703	(8) AS 11.76.109(b), as amended by sec. 8 of this Act; 14
704	704	(9) AS 11.76.109(d), as amended by sec. 9 of this Act; 15
705	705	(10) AS 11.76.109(g), as amended by sec. 10 of this Act; 16
706	706	(11) AS 11.81.900(b)(69), enacted by sec. 11 of this Act; 17
707	707	(12) AS 43.50.325, enacted by sec. 16 of this Act; 18
708	708	(13) AS 43.50.880, enacted by sec. 17 of this Act; and 19
709	709	(14) AS 47.12.030(b), as amended by sec. 23 of this Act. 20
710	710	(b) AS 11.76.100(a)(4), as amended by sec. 1 of this Act, and AS 11.76.109(a)(4), as 21
711	711	amended by sec. 7 of this Act, do not apply to a person 19 years of age or older who is 22
712	712	employed on the effective date of secs. 1 and 7 of this Act by a person with a business license 23
713	713	endorsement under AS 43.70.075. 24
714	714	* Sec. 26. This Act takes effect January 1, 2024. 25