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HOUSE CS FOR CS FOR SENA TE BILL NO. 89(L&C) am H
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-THIRD LEGISLATURE - SECOND SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Amended: 5/14/24
Offered: 5/8/24
Sponsor(s): SENATORS STEVENS, Giessel, Gray-Jackson, Kiehl, Tobin
REPRESENTATIVES Josephson, Mina
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, exchange, or 2
possess tobacco, a product containing nicotine, or an electronic smoking product; 3
relating to the lawful operation of retail marijuana stores; relating to the registration of 4
marijuana establishments; relating to the tobacco use education and cessation fund; 5
relating to retailers of and the sale of electronic smoking products and vapor products; 6
relating to marijuana taxes; and providing for an effective date." 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8
* Section 1. AS 11.76.100(a) is amended to read: 9
(a) A person commits the offense of selling or giving tobacco to a person
10
under 21 years of age [MINOR] if the person 11
(1) negligently sells a cigarette, a cigar, tobacco, or a product 12
containing tobacco to a person under 21 [19] years of age; 13 33-LS0247\P.A
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(2) is 21 [19] years of age or older and negligently exchanges or gives 1
a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 2
years of age; 3
(3) maintains a vending machine that dispenses cigarettes, cigars, 4
tobacco, or products containing tobacco; or 5
(4) holds a business license endorsement under AS 43.70.075 and 6
allows a person under 21 [19] years of age to sell a cigarette, a cigar, tobacco, or a 7
product containing tobacco. 8
* Sec. 2. AS 11.76.100(b) is amended to read: 9
(b) Notwithstanding the provisions of (a) of this section, a person who 10
maintains a vending machine is not in violation of (a)(3) of this section if the vending 11
machine is located 12
(1) on premises licensed as a beverage dispensary under AS 04.09.200 13
or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 14
under AS 04.09.230 and 15
(A) as far as practicable from the primary entrance; and 16
(B) in a place that is directly and continually supervised by a 17
person employed on the licensed premises during the hours the vending 18
machine is accessible to the public; or 19
(2) in an employee break room or other controlled area of a private 20
work place that is not generally considered a public place and the room or area 21
contains a posted warning sign at least 11 inches by 14 inches indicating that 22
possession of tobacco by a person under 21 [19] years of age is prohibited under 23
AS 11.76.105. 24
* Sec. 3. AS 11.76.105 is amended to read: 25
Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 26
products containing nicotine by a person under 21 years of age [MINOR]. (a) 27
Except as provided in (e) of this section, a [A] person under 21 [19] years of age 28
may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 29
an electronic smoking product, or a product containing nicotine in this state. [THIS 30
SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 31 33-LS0247\P.A
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ADULT CORRECTIONAL FACILITY.] 1
(b) In a prosecution under (a) of this section for possession of an electronic 2
smoking product or a product containing nicotine, it is an affirmative defense that the 3
electronic smoking product or product containing nicotine possessed by the person 4
under 21 [19] years of age was intended or expected to be consumed without being 5
combusted, and the electronic smoking product or product containing nicotine 6
(1) has been approved by the United States Food and Drug 7
Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 8
or for other medical purposes; 9
(2) was being marketed and sold for the approved purposes; and 10
(3) was 11
(A) prescribed by a health care professional; 12
(B) given to the person by the person's parent or guardian; 13
(C) provided by a state-approved tobacco cessation program 14
administered by the Department of Health; or 15
(D) provided by a pharmacist to a person 18 years of age or 16
older without a prescription. 17
(c) Possession of tobacco, an electronic smoking product, or a product 18
containing nicotine by a person under 21 years of age [MINOR] is a violation 19
punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 20
place of any fine imposed for the violation of this subsection, the court may refer 21
a defendant, at the request of the defendant, to a tobacco education program. 22
* Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 23
(d) The supreme court shall establish by rule or order a schedule of bail 24
amounts that may be forfeited without court appearance for a violation of this section. 25
The supreme court, in establishing scheduled amounts of bail under this section, may 26
not allow for disposition of an offense without court appearance for a person under 18 27
years of age who is cited for a violation of this section. 28
(e) The provisions of (a) of this section do not apply to a person 19 or 20 years 29
of age who is employed by a person with a business license endorsement under 30
AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 31 33-LS0247\P.A
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product containing tobacco, an electronic smoking product, or a product containing 1
nicotine. 2
* Sec. 5. AS 11.76.106(b) is amended to read: 3
(b) Subsection (a) does not apply if the sale 4
(1) is by vending machine as provided under AS 11.76.100(b) or 5
11.76.109(d); 6
(2) is a wholesale transaction, the person is licensed as a manufacturer 7
or distributor under AS 43.50.010, and the sale occurs on premises where no retail 8
transactions occur; 9
(3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 10
products containing tobacco, electronic smoking products, or products containing 11
nicotine and who restricts access to the premises to only those individuals who are 21 12
[19] years of age or older; or 13
(4) is of electronic smoking products over the Internet to a person 21 14
[19] years of age or older. 15
* Sec. 6. AS 11.76.109(a) is amended to read: 16
(a) A person commits the offense of selling or giving an electronic smoking 17
product or a product containing nicotine to a person under 21 years of age [MINOR] 18
if the person 19
(1) negligently sells an electronic smoking product or a product 20
containing nicotine to a person under 21 [19] years of age; 21
(2) is 21 [19] years of age or older and negligently exchanges or gives 22
an electronic smoking product or a product containing nicotine to a person under 21 23
[19] years of age; 24
(3) maintains a vending machine that dispenses electronic smoking 25
products or products containing nicotine; or 26
(4) holds a business license endorsement under AS 43.70.075 and 27
allows a person under 21 [19] years of age to sell an electronic smoking product or a 28
product containing nicotine. 29
* Sec. 7. AS 11.76.109(b) is amended to read: 30
(b) The provisions of (a) of this section do not apply to the sale, exchange, or 31 33-LS0247\P.A
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gift to a person under 21 [19] years of age of an electronic smoking product or a 1
product containing nicotine that is intended or expected to be consumed without being 2
combusted if 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) is being marketed and sold solely for the approved purposes; and 7
(3) is 8
(A) prescribed by a health care professional; 9
(B) given to a person by the person's parent or legal 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
* Sec. 8. AS 11.76.109(d) is amended to read: 15
(d) Notwithstanding (a)(3) of this section, a person who maintains a vending 16
machine is not in violation of (a)(3) of this section if the vending machine is located 17
(1) on premises licensed as a beverage dispensary under AS 04.09.200 18
or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 19
under AS 04.09.230, and is located 20
(A) as far as practicable from the primary entrance; and 21
(B) in a place that is directly and continually supervised by a 22
person employed on the licensed premises during the hours the vending 23
machine is accessible to the public; or 24
(2) in an employee break room or other controlled area of a private 25
work place that is not generally considered a public place and the room or area 26
contains a posted warning sign at least 11 inches by 8.5 inches indicating that 27
possession of electronic smoking products or products containing nicotine by a person 28
under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 29
[THIS SECTION]. 30
* Sec. 9. AS 11.76.109(g) is amended to read: 31 33-LS0247\P.A
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(g) Selling or giving an electronic smoking product or a product containing 1
nicotine to a person under 21 years of age [MINOR] is a violation and, upon 2
conviction, is punishable by a fine of not less than $300. 3
* Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 4
(69) "nicotine" includes a chemical or chemical compound intended, 5
when introduced into the human body, to mimic or simulate the effect of nicotine from 6
tobacco. 7
* Sec. 11. AS 17.38.070(a) is amended to read: 8
(a) Notwithstanding any other provision of law, the following acts, when 9
performed by a retail marijuana store with a current, valid registration, or a person 21 10
years of age or older who is acting in the person's capacity as an owner, employee, or 11
agent of a retail marijuana store, are lawful and are not an offense under state law or a 12
basis for seizure or forfeiture of assets under state law: 13
(1) possessing, displaying, storing, or transporting marijuana or 14
marijuana products, except that marijuana and marijuana products may not be 15
displayed in a manner that is visible to the general public from a public right-of-way; 16
(2) delivering or transferring marijuana or marijuana products to a 17
marijuana testing facility; 18
(3) receiving marijuana or marijuana products from a marijuana testing 19
facility; 20
(4) purchasing marijuana from a marijuana cultivation facility; 21
(5) purchasing marijuana or marijuana products from a marijuana 22
product manufacturing facility; and 23
(6) delivering, distributing, or selling marijuana or marijuana products 24
to a consumer, a marijuana cultivation facility, or a marijuana product 25
manufacturing facility [CONSUMERS]. 26
* Sec. 12. AS 17.38.200(a) is amended to read: 27
(a) Each application or renewal application for a registration to operate a 28
marijuana establishment shall be submitted to the board. A renewal application may be 29
submitted up to 90 days before the expiration of the marijuana establishment's 30
registration. When filing an application for a new registration under this subsection, 31 33-LS0247\P.A
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the applicant shall submit the applicant's fingerprints and the fees required by the 1
Department of Public Safety under AS 12.62.160 for criminal justice information and 2
a national criminal history record check. When filing an application for renewal of 3
registration, an applicant shall submit the applicant's fingerprints and the fees required 4
by the Department of Public Safety under AS 12.62.160 for criminal justice 5
information and a national criminal history record check every six [FIVE] years. The 6
board shall forward the fingerprints and fees to the Department of Public Safety to 7
obtain a report of criminal justice information under AS 12.62 and a national criminal 8
history record check under AS 12.62.400. 9
* Sec. 13. AS 17.38.200(d) is amended to read: 10
(d) Within 45 to 90 days after receiving an application or renewal application, 11
the board shall issue a biennial [AN ANNUAL] registration to the applicant unless 12
the board finds the applicant is not in compliance with regulations enacted under 13
[PURSUANT TO] AS 17.38.190 or the board is notified by the relevant local 14
government that the applicant is not in compliance with ordinances and regulations 15
made under [PURSUANT TO] AS 17.38.210 and in effect at the time of application. 16
* Sec. 14. AS 17.38.210(e) is amended to read: 17
(e) A local government may establish a schedule of biennial [ANNUAL] 18
operating, registration, and application fees for marijuana establishments, provided 19
that the local government may charge the 20
(1) application fee only if an application is submitted to the local 21
government in accordance with (f) of this section; and 22
(2) registration fee only if a registration is issued by the local 23
government in accordance with (f) of this section. 24
* Sec. 15. AS 17.38.210(f) is amended to read: 25
(f) If the board does not issue a registration to an applicant within 90 days 26
after receiving [OF RECEIPT OF] the application filed in accordance with 27
AS 17.38.200 and does not notify the applicant of the specific, permissible reason for 28
its denial, in writing and within that [SUCH] time period, or if the board has adopted 29
regulations under [PURSUANT TO] AS 17.38.190 and has accepted applications 30
under [PURSUANT TO] AS 17.38.200 but has not issued any registrations by 15 31 33-LS0247\P.A
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months after February 24, 2015, the applicant may resubmit its application directly to 1
the local regulatory authority, under [PURSUANT TO] (c) of this section, and the 2
local regulatory authority may issue a biennial [AN ANNUAL] registration to the 3
applicant. If an application is submitted to a local regulatory authority under this 4
subsection, the board shall forward to the local regulatory authority the application fee 5
paid by the applicant to the board upon request by the local regulatory authority. 6
* Sec. 16. AS 17.38.210(h) is amended to read: 7
(h) A local regulatory authority issuing a registration to an applicant shall do 8
so within 90 days after receiving [OF RECEIPT OF] the submitted or resubmitted 9
application unless the local regulatory authority finds and notifies the applicant that 10
the applicant is not in compliance with ordinances and regulations made under 11
[PURSUANT TO] (b) of this section in effect at the time the application is submitted 12
to the local regulatory authority. The local government shall notify the board if a 13
biennial [AN ANNUAL] registration has been issued to the applicant. 14
* Sec. 17. AS 17.38.210(j) is amended to read: 15
(j) A subsequent or renewed registration may be issued under (f) of this 16
section on a biennial [AN ANNUAL] basis only upon resubmission to the local 17
government of a new application submitted to the board under [PURSUANT TO] 18
AS 17.38.200. 19
* Sec. 18. AS 17.38.320 is amended to read: 20
Sec. 17.38.320. Effect on registrations of prohibition of marijuana 21
establishments. If a majority of voters vote to prohibit the operation of marijuana 22
establishments under AS 17.38.300, the board may not issue, renew, or transfer, 23
between persons or locations, a registration for a marijuana establishment located 24
within the perimeter of the established village. A registration that may not be renewed 25
because of a local option election held under AS 17.38.300 is void 90 days after the 26
results of the election are certified. A registration that expires during the 90 days after 27
the results of a local option election are certified may be extended, until it is void 28
under this section, by payment of a prorated portion of the biennial [ANNUAL] 29
registration fee. 30
* Sec. 19. AS 17.38.900(18) is amended to read: 31 33-LS0247\P.A
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(18) "retail marijuana store" means an entity registered to purchase 1
marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana 2
products from marijuana product manufacturing facilities, and to sell marijuana and 3
marijuana products to consumers, marijuana cultivation facilities, and marijuana 4
product manufacturing facilities; 5
* Sec. 20. AS 37.05.580(a) is amended to read: 6
(a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 7
GENERAL FUND THE] tobacco use education and cessation fund is established as a 8
separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 9
DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 10
the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 11
CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 12
use education and cessation fund is to provide a source to finance the comprehensive 13
smoking education, tobacco use prevention, and tobacco control program authorized 14
by AS 44.29.020(a)(12). 15
* Sec. 21. AS 43.50.070 is amended to read: 16
Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 17
(a) The department may suspend, revoke, or refuse to renew a license issued under this 18
chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 19
11.76.109, or a violation of this chapter or a regulation of the department adopted 20
under this chapter; (2) if a licensee ceases to act in the capacity for which the license 21
was issued; or (3) if a licensee negligently sells tobacco or products containing 22
tobacco to a person who is required to, but does not, hold a license endorsement under 23
AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 24
A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 25
products, or electronic smoking products, or permit cigarettes, [OR] tobacco 26
products, or electronic smoking products to be sold, during the period of the 27
suspension or revocation on the premises occupied or controlled by that person. A 28
disciplinary proceeding or action is not barred or abated by the expiration, transfer, 29
surrender, renewal, or extension of a license issued under this chapter. The department 30
shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 31 33-LS0247\P.A
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that a hearing officer of the department, rather than a hearing officer assigned under 1
AS 44.62.350, may conduct hearings. 2
(b) In this section, "licensee" means a person licensed under AS 43.50.010 - 3
43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.880. 4
* Sec. 22. AS 43.50.105(b) is amended to read: 5
(b) A person who is licensed under this chapter may not ship or cause to be 6
shipped cigarettes to a person in this state unless the person receiving the cigarettes 7
(1) is licensed under this chapter; 8
(2) holds a business license endorsement under AS 43.70.075; 9
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 10
1311 or 19 U.S.C. 1555; 11
(4) is an instrumentality of the federal government or an Indian tribal 12
organization authorized by law to possess cigarettes not taxed under this chapter; or 13
(5) is an individual 21 [19] years of age or older and the individual's 14
age was verified at the time of purchase by a third-party verification service, the 15
individual is receiving the cigarettes for personal consumption, and the tax imposed 16
on the cigarettes under this chapter has been paid. 17
* Sec. 23. AS 43.50.105(c) is amended to read: 18
(c) A common or contract carrier may not knowingly transport cigarettes to a 19
person in this state unless the person 20
(1) shipping the cigarettes is licensed under this chapter and, before 21
shipment, provides the common or contract carrier with a copy of the person's current 22
license issued by the department and 23
(A) an affidavit from the intended recipient certifying that the 24
person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 25
(5)] of this section; or 26
(B) the common or contract carrier verifies the age of the 27
recipient as 21 years of age or older before delivery; or 28
(2) receiving the cigarettes is a person described under (a)(2) or (3) of 29
this section or is licensed under this chapter and, before receipt, provides the common 30
or contract carrier with a copy of the person's current license issued by the department. 31 33-LS0247\P.A
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* Sec. 24. AS 43.50.190(d) is amended to read: 1
(d) A portion of the annual proceeds of the tax levied under (a) of this section 2
equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 3
use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 4
SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 5
UNDER AS 37.05.580(a).] 6
* Sec. 25. AS 43.50 is amended by adding a new section to read: 7
Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 8
(a) A person who is not licensed under this chapter may not ship or cause to be 9
shipped a tobacco product to a person in this state unless the person receiving the 10
tobacco product is 11
(1) licensed under this chapter; 12
(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 13
or 19 U.S.C. 1555; or 14
(3) 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. 17
(b) A person who is licensed under this chapter may not ship or cause to be 18
shipped a tobacco product to a person in this state unless the person receiving the 19
tobacco product 20
(1) is licensed under this chapter; 21
(2) holds a business license endorsement under AS 43.70.075; 22
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 23
1311 or 19 U.S.C. 1555; 24
(4) is an instrumentality of the federal government or an Indian tribal 25
organization authorized by law to possess tobacco products not taxed under this 26
chapter; or 27
(5) is an individual 21 years of age or older and the individual's age 28
was verified at the time of purchase though a third-party verification service, the 29
individual is receiving the tobacco product for personal consumption, and the tax 30
imposed on the tobacco product under this chapter has been paid. 31 33-LS0247\P.A
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(c) A common or contract carrier may not knowingly transport a tobacco 1
product to a person in this state unless the person 2
(1) shipping the tobacco product is licensed under this chapter and, 3
before shipment, provides the common or contract carrier with a copy of the person's 4
current license issued by the department and 5
(A) an affidavit from the intended recipient certifying that the 6
person receiving the tobacco product is a person described under (b)(1) - (4) of 7
this section; or 8
(B) the common or contract carrier verifies the age of the 9
recipient as 21 years of age or older before delivery; or 10
(2) receiving the tobacco product is a person described under (a)(2) or 11
(3) of this section or is licensed under this chapter and, before receipt, provides the 12
common or contract carrier with a copy of the person's current license issued by the 13
department. 14
(d) If a tobacco product is transported by a common or contract carrier to a 15
home or residence, it is rebuttably presumed that the common or contract carrier knew 16
that the recipient of the tobacco product was not a person described under (b)(1) - (5) 17
of this section, unless the person shipping the tobacco product has satisfied the 18
requirements in (c)(1) of this section. 19
(e) A person, other than a common or contract carrier, may not knowingly 20
transport a tobacco product to a person in this state, unless the recipient of the tobacco 21
product is a person described under (b)(1) - (5) of this section. 22
(f) A person who ships or causes to be shipped a tobacco product to a person 23
in this state shall plainly and visibly mark the container or wrapping with the words 24
"tobacco product" if the tobacco product is shipped in a container or wrapping other 25
than the manufacturer's original container or wrapping of the tobacco product. 26
(g) A person who violates the provisions of this section is guilty of a class A 27
misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 28
tobacco product. 29
(h) In addition to the criminal penalty under (g) of this section, the department 30
may assess a civil penalty of not more than $5,000 for each violation of this section. 31 33-LS0247\P.A
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(i) A person who violates the provisions of this section is jointly and severally 1
liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 2
permitted by the Constitution of the United States, a person who violates the 3
provisions of this section is required to collect the taxes and pay them to the 4
department. 5
* Sec. 26. AS 43.50 is amended by adding new sections to read: 6
Article 8. Electronic Smoking Products Sales, Shipping, and Licensing. 7
Sec. 43.50.850. Licensing. (a) Except as provided in (g) of this section, a 8
person must be licensed by the department if the person engages in the business of 9
selling electronic smoking products at retail. 10
(b) The department, upon application and payment of a fee of $50, shall issue 11
a license for one year to a person who applies for a license under (a) of this section. 12
(c) The department may refuse to issue a license under this section if 13
(1) there is reasonable cause to believe the information submitted in 14
the application is false or misleading and is not made in good faith; or 15
(2) the applicant is not in good standing under AS 10.06 (Alaska 16
Corporations Code). 17
(d) A license issued under this section must include the name and address of 18
the licensee, the type of business to be conducted, and the year for which the license is 19
issued. 20
(e) The department may renew a license issued under this section for a fee of 21
$50 if the applicant is in good standing under AS 10.06 (Alaska Corporations Code). 22
(f) The department may suspend, revoke, or refuse to renew a license issued 23
under this section as provided in AS 43.50.070. 24
(g) A license required by this section is in addition to any other license 25
required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 26
or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 27
(h) A license issued under this section is not assignable or transferable, except 28
that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 29
if the business of the licensee is transferred to another by operation of law, the 30
department may extend the license for a limited time to the executor, administrator, 31 33-LS0247\P.A
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trustee, receiver, or transferee. 1
Sec. 43.50.860. Marketing and distribution of electronic smoking 2
products. A person licensed under this chapter may not 3
(1) distribute an electronic smoking product designed or packaged so 4
as not to be clearly recognizable as an electronic smoking product; or 5
(2) market an electronic smoking product, including a flavored 6
electronic smoking product, in a manner likely to promote use of the electronic 7
smoking product by a person under 21 years of age. 8
Sec. 43.50.870. Restrictions on shipping or transporting electronic 9
smoking products. (a) A person who is not licensed under this chapter may not ship 10
or cause to be shipped an electronic smoking product to a person in this state unless 11
the person receiving the electronic smoking product is 12
(1) licensed under this chapter; 13
(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 14
or 19 U.S.C. 1555; or 15
(3) an instrumentality of the federal government or an Indian tribal 16
organization. 17
(b) A person who is licensed under this chapter may not ship or cause to be 18
shipped an electronic smoking product to a person in this state unless the person 19
receiving the electronic smoking product 20
(1) is licensed under this chapter; 21
(2) holds a business license endorsement under AS 43.70.075; 22
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 23
1311 or 19 U.S.C. 1555; 24
(4) is an instrumentality of the federal government or an Indian tribal 25
organization; or 26
(5) is an individual 21 years of age or older and the individual's age 27
was verified at the time of purchase though a third-party verification service and the 28
individual is receiving the electronic smoking product for personal consumption. 29
(c) A common or contract carrier may not knowingly transport an electronic 30
smoking product to a person in this state unless the person 31 33-LS0247\P.A
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(1) shipping the electronic smoking product is licensed under this 1
chapter and, before shipment, provides the common or contract carrier with a copy of 2
the person's current license issued by the department and 3
(A) an affidavit from the intended recipient certifying that the 4
person receiving the electronic smoking product is a person described under 5
(b)(1) - (4) of this section; or 6
(B) the common or contract carrier verifies the age of the 7
recipient as 21 years of age or older before delivery; or 8
(2) receiving the electronic smoking product is a person described 9
under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 10
provides the common or contract carrier with a copy of the person's current license 11
issued by the department. 12
(d) If an electronic smoking product is transported by a common or contract 13
carrier to a home or residence, it is rebuttably presumed that the common or contract 14
carrier knew that the recipient of the electronic smoking product was not a person 15
described under (b)(1) - (5) of this section, unless the person shipping the electronic 16
smoking product has satisfied the requirements in (c)(1) of this section. 17
(e) A person, other than a common or contract carrier, may not knowingly 18
transport an electronic smoking product to a person in this state, unless the recipient of 19
the electronic smoking product is a person described under (b)(1) - (5) of this section. 20
(f) A person who ships or causes to be shipped an electronic smoking product 21
to a person in this state shall plainly and visibly mark the container or wrapping with 22
the words "electronic smoking product" if the electronic smoking product is shipped in 23
a container or wrapping other than the manufacturer's original container or wrapping 24
of the electronic smoking product. 25
(g) A person who violates the provisions of this section is guilty of a class A 26
misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 27
electronic smoking product. 28
(h) In addition to the criminal penalty under (g) of this section, the department 29
may assess a civil penalty of not more than $5,000 for each violation of this section. 30
Sec. 43.50.880. Restrictions on electronic smoking products. A person may 31 33-LS0247\P.A
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sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 1
for sale or distribution in this state, or import or cause to be imported into this state for 2
sale or distribution in this state only electronic smoking products 3
(1) for which the component vapor product 4
(A) has a nicotine content of less than 60 milligrams of nicotine 5
for each milliliter of vapor product; 6
(B) is protected from breakage and leakage; 7
(C) does not contain added vitamins or other additives 8
marketed to create the impression of health benefits; in this subparagraph, 9
"vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 10
stimulants, and colorants; 11
(2) that are packaged to be child- and tamper-proof; and 12
(3) that are labeled to inform consumers about all vapor product 13
ingredients and nicotine content. 14
Article 9. General Provisions. 15
Sec. 43.50.990. Definitions. In this chapter, 16
(1) "electronic smoking product" has the meaning given in 17
AS 11.81.900(b); 18
(2) "vapor product" means a substance intended to be aerosolized or 19
vaporized during the use of an electronic smoking product. 20
* Sec. 27. AS 43.61.010(a) is amended to read: 21
(a) An excise tax is imposed on the sale or transfer of marijuana from a 22
marijuana cultivation facility to a retail marijuana store or marijuana product 23
manufacturing facility. Every marijuana cultivation facility shall pay an excise tax at 24
the rate of $12.50 an [$50 PER] ounce, or proportionate part thereof, on marijuana 25
that is sold or transferred from a marijuana cultivation facility to a retail marijuana 26
store or marijuana product manufacturing facility. 27
* Sec. 28. AS 43.61.010(f) is amended to read: 28
(f) The marijuana education and treatment fund is established in the general 29
fund. In addition to the accounting under (c) of this section, the Department of 30
Administration shall separately account for 25 percent of the tax collected under this 31 33-LS0247\P.A
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section and deposit it into the marijuana education and treatment fund. The 1
Department of Administration shall deposit interest earned on the fund into the general 2
fund. Money in the fund does not lapse. The legislature may use the annual estimated 3
balance in the fund to make appropriations to the Department of Health for the 4
comprehensive marijuana use education and treatment program established under 5
AS 44.29.020(a)(14) and may use at least 50 percent of the annual estimated 6
balance in the fund to make appropriations to the youth services grant program 7
within the community-based marijuana misuse prevention component of that 8
program. 9
* Sec. 29. AS 43.61.010 is amended by adding a new subsection to read: 10
(g) A sales tax is imposed on the sale of marijuana and marijuana products 11
from a retail marijuana store to a consumer. Every consumer shall pay a seven percent 12
sales tax at a retail marijuana store for all marijuana and marijuana products intended 13
for human consumption. 14
* Sec. 30. AS 43.61.020 is amended to read: 15
Sec. 43.61.020. Quarterly statements [MONTHLY STATEMENT] and 16
payments. (a) Each retail marijuana store [CULTIVATION FACILITY] shall send a 17
statement by mail or electronically to the department on or before the last day of each 18
quarter [CALENDAR MONTH]. The statement must contain an account of the 19
amount of marijuana sold to consumers [OR TRANSFERRED TO RETAIL 20
MARIJUANA STORES AND MARIJUANA PRODUCT MANUFACTURING 21
FACILITIES IN THE STATE] during the preceding quarter [MONTH], setting out 22
[(1)] the total number of ounces, including fractional ounces, sold and 23
the total value of the marijuana sold [OR TRANSFERRED; 24
(2) THE NAMES AND ALASKA ADDRESS OF EACH BUYER 25
AND TRANSFEREE; AND 26
(3) THE WEIGHT OF MARIJUANA SOLD OR TRANSFERRED 27
TO THE RESPECTIVE BUYERS OR TRANSFEREES]. 28
(b) The retail marijuana store [CULTIVATION FACILITY] shall pay 29
quarterly [MONTHLY] to the department [,] all taxes, computed at the rates 30
prescribed in this chapter, on the respective total quantities of the marijuana sold [OR 31 33-LS0247\P.A
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TRANSFERRED] during the preceding quarter [MONTH]. The quarterly 1
[MONTHLY] return shall be filed and the tax paid on or before the last day of each 2
quarter [MONTH] to cover the preceding quarter [MONTH]. 3
* Sec. 31. AS 43.61.030 is amended to read: 4
Sec. 43.61.030. Administration and enforcement of tax. (a) Delinquent 5
payments under this chapter shall subject the retail marijuana store [CULTIVATION 6
FACILITY] to civil penalties under AS 43.05.220. 7
(b) If a retail marijuana store [CULTIVATION FACILITY] fails to pay the 8
tax to the state, the retail marijuana store's [CULTIVATION FACILITY'S] 9
registration may be revoked in accordance with procedures established under 10
AS 17.38.190(a)(1). 11
* Sec. 32. AS 43.70.075(f) is amended to read: 12
(f) A person who holds a license endorsement issued under this section shall 13
post on the licensed premises a warning sign as described in this subsection. A 14
warning sign required by this subsection must be at least 8.5 inches by 11 inches and 15
must read: "The sale of electronic smoking products or products containing nicotine 16
without a prescription or tobacco products to persons under age 21 [19] is illegal." A 17
person holding an endorsement issued under this section shall display the warning sign 18
in a manner conspicuous to a person purchasing or consuming tobacco products, 19
electronic smoking products, or products containing nicotine on the licensed premises. 20
The department shall make available the warning signs required under this section to a 21
person who holds an endorsement issued under this section or a person who requests 22
the sign with the intention of displaying it. 23
* Sec. 33. AS 43.70.075(m) is amended to read: 24
(m) The department may initiate suspension of a business license endorsement 25
or the right to obtain a business license endorsement under this section by sending the 26
person subject to the suspension a notice by certified mail, return receipt requested, or 27
by delivering the notice to the person. The notice must contain information that 28
informs the person of the grounds for suspension, the length of any suspension sought, 29
and the person's right to administrative review. A suspension begins 30 days after 30
receipt of notice described in this subsection unless the person delivers a timely 31 33-LS0247\P.A
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written request for a hearing to the department in the manner provided by regulations 1
of the department. If a hearing is requested under this subsection, an administrative 2
law judge of the office of administrative hearings (AS 44.64.010) shall determine the 3
issues by using the preponderance of the evidence test and shall, to the extent they do 4
not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 5
manner provided by regulations of the department. A hearing under this subsection is 6
limited to the following questions: 7
(1) was the person holding the business license endorsement, or an 8
agent or employee of the person while acting within the scope of the agency or 9
employment of the person, convicted by plea or judicial finding of violating 10
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 11
(2) if the department does not allege a conviction of AS 11.76.100, 12
11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 13
person while acting within the scope of the agency or employment of the person, 14
violate a provision of (a) or (g) of this section; 15
(3) within the 24 months before the date of the department's notice 16
under this subsection, was the person, or an agent or employee of the person while 17
acting within the scope of the agency or employment of the person, convicted of 18
violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 19
violating a provision of (a) or (g) of this section; 20
(4) did the person holding the business license endorsement establish 21
that the person holding the business license endorsement had adopted and enforced an 22
education, a compliance, and a disciplinary program for agents and employees of the 23
person as provided in (t) of this section; 24
(5) did the person holding the business license endorsement overcome 25
the rebuttable presumption established in (w) of this section; 26
(6) within five years before the date of the violation that is the subject 27
of the hearing, did the department establish that the person holding the business 28
license endorsement 29
(A) previously violated (a) or (g) of this section; 30
(B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 31 33-LS0247\P.A
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11.76.109 at a location or outlet in a location for which the person holds a 1
business license endorsement, or had an agent or employee previously violate 2
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 3
apply to a prior conviction that served to enhance a suspension period under 4
(d)(2) - (4) of this section; or 5
(C) engaged at a location owned by the person in other conduct 6
that was or is likely to result in the sale of tobacco, electronic smoking 7
products, or products containing nicotine to a person under 21 [19] years of 8
age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 9
* Sec. 34. AS 43.70.075(t) is amended to read: 10
(t) Based on evidence provided at the hearing under (m)(4) - (6) of this 11
section, the department may reduce the license suspension period under (d) of this 12
section if the person holding the business license endorsement establishes that, before 13
the date of the violation, the person had 14
(1) adopted and enforced a written policy against selling cigarettes, 15
cigars, tobacco, products containing tobacco, electronic smoking products, or products 16
containing nicotine to a person under 21 [19] years of age in violation of 17
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 18
(2) informed the person's agents and employees of the applicable laws 19
and their requirements and conducted training on complying with the laws and 20
requirements; 21
(3) required each agent and employee of the person to sign a form 22
stating that the agent and employee has been informed of and understands the written 23
policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 24
(4) determined that the agents and employees of the person had 25
sufficient experience and ability to comply with the written policy and requirements of 26
AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 27
(5) required the agents and employees of the person to verify the age 28
of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 29
electronic smoking products, or products containing nicotine by means of a valid 30
government issued photographic identification; 31 33-LS0247\P.A
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(6) established and enforced disciplinary sanctions for noncompliance 1
with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 2
and 11.76.109; and 3
(7) monitored the compliance of the agents and employees of the 4
person with the written policy and the requirements of AS 11.76.100, 11.76.106, 5
11.76.107, and 11.76.109. 6
* Sec. 35. AS 43.70.075(w) is amended to read: 7
(w) For purposes of (m)(5) of this section, a conviction for a violation of 8
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 9
person who holds the business license endorsement is rebuttably presumed to 10
constitute proof of the fact that the agent or employee negligently sold a cigarette, a 11
cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 12
product containing nicotine to a person under 21 [19] years of age. The person who 13
holds the business license endorsement may overcome the presumption by 14
establishing by clear and convincing evidence that the agent or employee did not 15
negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 16
electronic smoking product, or a product containing nicotine to a person under 21 [19] 17
years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 18
alleged in the citation issued to the agent or employee. The presentation of evidence 19
authorized by this subsection does not constitute a collateral attack on the conviction 20
described in this subsection. 21
* Sec. 36. AS 45.50.471(b) is amended by adding a new paragraph to read: 22
(58) marketing an electronic smoking product in a manner likely to 23
promote use of electronic smoking products by a person under 21 years of age; in this 24
paragraph, "electronic smoking product" has the meaning given in AS 43.50.990. 25
* Sec. 37. AS 47.12.030(b) is amended to read: 26
(b) When a minor is accused of violating a statute specified in this subsection, 27
other than a statute the violation of which is a felony, this chapter and the Alaska 28
Delinquency Rules do not apply and the minor accused of the offense shall be 29
charged, prosecuted, and sentenced in the district court in the same manner as an 30
adult; if a minor is charged, prosecuted, and sentenced for an offense under this 31 33-LS0247\P.A
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subsection, the minor's parent, guardian, or legal custodian shall be present at all 1
proceedings; the provisions of this subsection apply when a minor is accused of 2
violating 3
(1) a traffic statute or regulation, or a traffic ordinance or regulation of 4
a municipality; 5
(2) AS 11.76.105, relating to the possession of tobacco by a person 6
under 21 [19] years of age; 7
(3) a fish and game statute or regulation under AS 16; 8
(4) a parks and recreational facilities statute or regulation under 9
AS 41.21; 10
(5) [REPEALED] 11
(6) a municipal curfew ordinance, whether adopted under 12
AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 13
ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 14
the violation of a municipal curfew ordinance, the court shall allow a defendant the 15
option of performing community work; the value of the community work, which may 16
not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 17
in this paragraph, "community work" includes the work described in AS 12.55.055(b) 18
or work that, on the recommendation of the municipal or borough assembly, city 19
council, or traditional village council of the defendant's place of residence, would 20
benefit persons within the municipality or village who are elderly or disabled; 21
(7) AS 04.16.050, relating to consumption, possession, or control of 22
alcohol by a person under 21 years of age. 23
* Sec. 38. AS 43.61.010(b) is repealed. 24
* Sec. 39. AS 11.76.100(e) and AS 43.61.010(a) are repealed. 25
* Sec. 40. The uncodified law of the State of Alaska is amended by adding a new section to 26
read: 27
APPLICABILITY. (a) The following sections apply to offenses committed on or after 28
the effective date of those sections: 29
(1) AS 11.76.100(a), as amended by sec. 1 of this Act; 30
(2) AS 11.76.100(b), as amended by sec. 2 of this Act; 31 33-LS0247\P.A
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(3) AS 11.76.105, as amended by sec. 3 of this Act; 1
(4) AS 11.76.105(d), enacted by sec. 4 of this Act; 2
(5) AS 11.76.106(b), as amended by sec. 5 of this Act; 3
(6) AS 11.76.109(a), as amended by sec. 6 of this Act; 4
(7) AS 11.76.109(b), as amended by sec. 7 of this Act; 5
(8) AS 11.76.109(d), as amended by sec. 8 of this Act; 6
(9) AS 11.76.109(g), as amended by sec. 9 of this Act; 7
(10) AS 11.81.900(b)(69), enacted by sec. 10 of this Act; 8
(11) AS 43.50.325, enacted by sec. 25 of this Act; 9
(12) AS 43.50.870, enacted by sec. 26 of this Act; and 10
(13) AS 47.12.030(b), as amended by sec. 37 of this Act. 11
(b) AS 43.61.010(a), as amended by sec. 27 of this Act, applies to taxes accrued on or 12
after the effective date of sec. 27 of this Act. 13
* Sec. 41. Sections 11 - 19, 27, 28, and 38 of this Act take effect July 1, 2024. 14
* Sec. 42. Except as provided in sec. 41 of this Act, this Act takes effect January 1, 2025. 15