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CS FOR HOUSE BILL NO. 49(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Offered: 2/19/25
Referred: Finance
Sponsor(s): REPRESENTATIVE HANNAN
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 tobacco use education and cessation fund; relating to the taxation of 4
electronic smoking products and vapor products; and providing for an effective date." 5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 6
* Section 1. AS 11.76.100(a) is amended to read: 7
(a) A person commits the offense of selling or giving tobacco to a person
8
under 21 years of age [MINOR] if the person 9
(1) negligently sells a cigarette, a cigar, tobacco, or a product 10
containing tobacco to a person under 21 [19] years of age; 11
(2) is 21 [19] years of age or older and negligently exchanges or gives 12
a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 13 34-LS0368\N
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years of age; 1
(3) maintains a vending machine that dispenses cigarettes, cigars, 2
tobacco, or products containing tobacco; or 3
(4) holds a business license endorsement under AS 43.70.075 and 4
allows a person under 19 years of age to sell a cigarette, a cigar, tobacco, or a product 5
containing tobacco. 6
* Sec. 2. AS 11.76.100(b) is amended to read: 7
(b) Notwithstanding the provisions of (a) of this section, a person who 8
maintains a vending machine is not in violation of (a)(3) of this section if the vending 9
machine is located 10
(1) on premises licensed as a beverage dispensary under AS 04.09.200 11
or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 12
under AS 04.09.230 and 13
(A) as far as practicable from the primary entrance; and 14
(B) in a place that is directly and continually supervised by a 15
person employed on the licensed premises during the hours the vending 16
machine is accessible to the public; or 17
(2) in an employee break room or other controlled area of a private 18
work place that is not generally considered a public place and the room or area 19
contains a posted warning sign at least 11 inches by 14 inches indicating that 20
possession of tobacco by a person under 21 [19] years of age is prohibited under 21
AS 11.76.105. 22
* Sec. 3. AS 11.76.105 is amended to read: 23
Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 24
products containing nicotine by a person under 21 years of age [MINOR]. (a) 25
Except as provided in (e) of this section, a [A] person under 21 [19] years of age 26
may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 27
an electronic smoking product, or a product containing nicotine in this state. [THIS 28
SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 29
ADULT CORRECTIONAL FACILITY.] 30
(b) In a prosecution under (a) of this section for possession of an electronic 31 34-LS0368\N
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smoking product or a product containing nicotine, it is an affirmative defense that the 1
electronic smoking product or product containing nicotine possessed by the person 2
under 21 [19] years of age was intended or expected to be consumed without being 3
combusted, and the electronic smoking product or product containing nicotine 4
(1) has been approved by the United States Food and Drug 5
Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 6
or for other medical purposes; 7
(2) was being marketed and sold for the approved purposes; and 8
(3) was 9
(A) prescribed by a health care professional; 10
(B) given to the person by the person's parent or guardian; 11
(C) provided by a state-approved tobacco cessation program 12
administered by the Department of Health; or 13
(D) provided by a pharmacist to a person 18 years of age or 14
older without a prescription. 15
(c) Possession of tobacco, an electronic smoking product, or a product 16
containing nicotine by a person under 21 years of age [MINOR] is a violation 17
punishable by a fine of not more than $150. Notwithstanding AS 12.55.035(b), in 18
place of any fine imposed for the violation of this subsection, the court may refer 19
a defendant, at the request of the defendant, to a tobacco education program. 20
* Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 21
(d) The supreme court shall establish by rule or order a schedule of bail 22
amounts that may be forfeited without court appearance for a violation of this section 23
by a person 19 or 20 years of age. 24
(e) The supreme court, in establishing scheduled amounts of bail under this 25
section, may not allow for disposition of an offense without court appearance for a 26
person under 18 years of age who is cited for a violation of this section. 27
(f) The provisions of (a) of this section do not apply to a person 19 or 20 years 28
of age who is employed by a person with a business license endorsement under 29
AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 30
product containing tobacco, an electronic smoking product, or a product containing 31 34-LS0368\N
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nicotine. 1
* Sec. 5. AS 11.76.106(b) is amended to read: 2
(b) Subsection (a) does not apply if the sale 3
(1) is by vending machine as provided under AS 11.76.100(b) or 4
11.76.109(d); 5
(2) is a wholesale transaction, the person is licensed as a manufacturer 6
or distributor under AS 43.50.010, and the sale occurs on premises where no retail 7
transactions occur; 8
(3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 9
products containing tobacco, electronic smoking products, or products containing 10
nicotine and who restricts access to the premises to only those individuals who are 21 11
[19] years of age or older; or 12
(4) is of electronic smoking products over the Internet to a person 21 13
[19] years of age or older. 14
* Sec. 6. AS 11.76.109(a) is amended to read: 15
(a) A person commits the offense of selling or giving an electronic smoking 16
product or a product containing nicotine to a person under 21 years of age [MINOR] 17
if the person 18
(1) negligently sells an electronic smoking product or a product 19
containing nicotine to a person under 21 [19] years of age; 20
(2) is 21 [19] years of age or older and negligently exchanges or gives 21
an electronic smoking product or a product containing nicotine to a person under 21 22
[19] years of age; 23
(3) maintains a vending machine that dispenses electronic smoking 24
products or products containing nicotine; or 25
(4) holds a business license endorsement under AS 43.70.075 and 26
allows a person under 19 years of age to sell an electronic smoking product or a 27
product containing nicotine. 28
* Sec. 7. AS 11.76.109(b) is amended to read: 29
(b) The provisions of (a) of this section do not apply to the sale, exchange, or 30
gift to a person under 21 [19] years of age of an electronic smoking product or a 31 34-LS0368\N
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product containing nicotine that is intended or expected to be consumed without being 1
combusted if the electronic smoking product or product containing nicotine 2
(1) has been approved by the United States Food and Drug 3
Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 4
or for other medical purposes; 5
(2) is being marketed and sold solely for the approved purposes; and 6
(3) is 7
(A) prescribed by a health care professional; 8
(B) given to a person by the person's parent or legal guardian; 9
(C) provided by a state-approved tobacco cessation program 10
administered by the Department of Health; or 11
(D) provided by a pharmacist to a person 18 years of age or 12
older without a prescription. 13
* Sec. 8. AS 11.76.109(d) is amended to read: 14
(d) Notwithstanding (a)(3) of this section, a person who maintains a vending 15
machine is not in violation of (a)(3) of this section if the vending machine is located 16
(1) on premises licensed as a beverage dispensary under AS 04.09.200 17
or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 18
under AS 04.09.230, and is located 19
(A) as far as practicable from the primary entrance; and 20
(B) in a place that is directly and continually supervised by a 21
person employed on the licensed premises during the hours the vending 22
machine is accessible to the public; or 23
(2) in an employee break room or other controlled area of a private 24
work place that is not generally considered a public place and the room or area 25
contains a posted warning sign at least 11 inches by 8.5 inches indicating that 26
possession of electronic smoking products or products containing nicotine by a person 27
under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 28
[THIS SECTION]. 29
* Sec. 9. AS 11.76.109(g) is amended to read: 30
(g) Selling or giving an electronic smoking product or a product containing 31 34-LS0368\N
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nicotine to a person under 21 years of age [MINOR] is a violation and, upon 1
conviction, is punishable by a fine of not less than $300. 2
* Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 3
(71) "nicotine" includes a chemical or chemical compound intended, 4
when introduced into the human body, to mimic or simulate the effect of nicotine from 5
tobacco. 6
* Sec. 11. AS 29.35.085(c) is amended to read: 7
(c) The community work provisions of AS 47.12.030(b)(5) 8
[AS 47.12.030(b)(6)] apply to punishment for a minor's conviction of a violation of a 9
curfew ordinance for which a penalty is provided under AS 29.25.070(a). 10
* Sec. 12. AS 37.05.580(a) is amended to read: 11
(a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 12
GENERAL FUND THE] tobacco use education and cessation fund is established as a 13
separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 14
DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 15
the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 16
CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 17
use education and cessation fund is to provide a source to finance the comprehensive 18
smoking education, tobacco use prevention, and tobacco control program authorized 19
by AS 44.29.020(a)(12). 20
* Sec. 13. AS 43.50.070 is amended to read: 21
Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 22
(a) The department may suspend, revoke, or refuse to renew a license issued under this 23
chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 24
11.76.109, or a violation of this chapter or a regulation of the department adopted 25
under this chapter; (2) if a licensee ceases to act in the capacity for which the license 26
was issued; or (3) if a licensee negligently sells tobacco or products containing 27
tobacco to a person who is required to, but does not, hold a license endorsement under 28
AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 29
A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 30
products, or electronic smoking products, or permit cigarettes, [OR] tobacco 31 34-LS0368\N
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products, or electronic smoking products to be sold, during the period of the 1
suspension or revocation on the premises occupied or controlled by that person. A 2
disciplinary proceeding or action is not barred or abated by the expiration, transfer, 3
surrender, renewal, or extension of a license issued under this chapter. The department 4
shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 5
that a hearing officer of the department, rather than a hearing officer assigned under 6
AS 44.62.350, may conduct hearings. 7
(b) In this section, "licensee" means a person licensed under AS 43.50.010 - 8
43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 9
* Sec. 14. AS 43.50.105(b) is amended to read: 10
(b) A person who is licensed under this chapter may not ship or cause to be 11
shipped cigarettes to a person in this state unless the person receiving the cigarettes 12
(1) is licensed under this chapter; 13
(2) holds a business license endorsement under AS 43.70.075; 14
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 15
1311 or 19 U.S.C. 1555; 16
(4) is an instrumentality of the federal government or an Indian tribal 17
organization authorized by law to possess cigarettes not taxed under this chapter; or 18
(5) is an individual 21 [19] years of age or older and the individual's 19
age was verified at the time of purchase by a third-party verification service, the 20
individual is receiving the cigarettes for personal consumption, and the tax imposed 21
on the cigarettes under this chapter has been paid. 22
* Sec. 15. AS 43.50.105(c) is amended to read: 23
(c) A common or contract carrier may not knowingly transport cigarettes to a 24
person in this state unless the person 25
(1) shipping the cigarettes is licensed under this chapter and, before 26
shipment, provides the common or contract carrier with a copy of the person's current 27
license issued by the department and 28
(A) an affidavit from the intended recipient certifying that the 29
person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 30
(5)] of this section; or 31 34-LS0368\N
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(B) the common or contract carrier verifies the age of the 1
recipient as 21 years of age or older before delivery; or 2
(2) receiving the cigarettes is a person described under (a)(2) or (3) of 3
this section or is licensed under this chapter and, before receipt, provides the common 4
or contract carrier with a copy of the person's current license issued by the department. 5
* Sec. 16. AS 43.50.150(c) is amended to read: 6
(c) The department may enter into an agreement with a municipality that 7
imposes a tax on cigarettes, [OR OTHER] tobacco products, or electronic smoking 8
products for the purpose of jointly auditing a person liable for a tax under 9
AS 43.50.010 - 43.50.390 or 43.50.850 - 43.50.900 and the municipal tax on 10
cigarettes, [OR OTHER] tobacco products, or electronic smoking products. 11
* Sec. 17. AS 43.50.190(d) is amended to read: 12
(d) A portion of the annual proceeds of the tax levied under (a) of this section 13
equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 14
use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 15
SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 16
UNDER AS 37.05.580(a).] 17
* Sec. 18. AS 43.50 is amended by adding a new section to read: 18
Sec. 43.50.325. Restrictions on shipping or transporting tobacco products. 19
(a) A person who is not licensed under this chapter may not ship or cause to be 20
shipped a tobacco product to a person in this state unless the person receiving the 21
tobacco product is 22
(1) licensed under this chapter; 23
(2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 24
or 19 U.S.C. 1555; or 25
(3) an instrumentality of the federal government or an Indian tribal 26
organization authorized by law to possess tobacco products not taxed under this 27
chapter. 28
(b) A person who is licensed under this chapter may not ship or cause to be 29
shipped a tobacco product to a person in this state unless the person receiving the 30
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(1) is licensed under this chapter; 1
(2) holds a business license endorsement under AS 43.70.075; 2
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 3
1311 or 19 U.S.C. 1555; 4
(4) is an instrumentality of the federal government or an Indian tribal 5
organization authorized by law to possess tobacco products not taxed under this 6
chapter; or 7
(5) is an individual 21 years of age or older and the individual's age 8
was verified at the time of purchase though a third-party verification service, the 9
individual is receiving the tobacco product for personal consumption, and the tax 10
imposed on the tobacco product under this chapter has been paid. 11
(c) A common or contract carrier may not knowingly transport a tobacco 12
product to a person in this state unless the person 13
(1) shipping the tobacco product is licensed under this chapter and, 14
before shipment, provides the common or contract carrier with a copy of the person's 15
current license issued by the department and 16
(A) an affidavit from the intended recipient certifying that the 17
person receiving the tobacco product is a person described under (b)(1) - (4) of 18
this section; or 19
(B) the common or contract carrier verifies the age of the 20
recipient as 21 years of age or older before delivery; or 21
(2) receiving the tobacco product is a person described under (a)(2) or 22
(3) of this section or is licensed under this chapter and, before receipt, provides the 23
common or contract carrier with a copy of the person's current license issued by the 24
department. 25
(d) If a tobacco product is transported by a common or contract carrier to a 26
home or residence, it is rebuttably presumed that the common or contract carrier knew 27
that the recipient of the tobacco product was not a person described under (b)(1) - (5) 28
of this section, unless the person shipping the tobacco product has satisfied the 29
requirements in (c)(1) of this section. 30
(e) A person, other than a common or contract carrier, may not knowingly 31 34-LS0368\N
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transport a tobacco product to a person in this state, unless the recipient of the tobacco 1
product is a person described under (b)(1) - (5) of this section. 2
(f) A person who ships or causes to be shipped a tobacco product to a person 3
in this state shall plainly and visibly mark the container or wrapping with the words 4
"tobacco product" if the tobacco product is shipped in a container or wrapping other 5
than the manufacturer's original container or wrapping of the tobacco product. 6
(g) A person who violates the provisions of this section is guilty of a class A 7
misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 8
tobacco product. 9
(h) In addition to the criminal penalty under (g) of this section, the department 10
may assess a civil penalty of not more than $5,000 for each violation of this section. 11
(i) A person who violates the provisions of this section is jointly and severally 12
liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 13
permitted by the Constitution of the United States, a person who violates the 14
provisions of this section is required to collect the taxes and pay them to the 15
department. 16
* Sec. 19. AS 43.50 is amended by adding new sections to read: 17
Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 18
Sec. 43.50.850. Tax levied; collection. (a) A tax is levied on closed electronic 19
smoking products and vapor products in the state. The tax is 25 percent of the retail 20
sales price of a closed electronic smoking product or a vapor product. 21
(b) A licensee located in the state shall collect and remit the tax to the 22
department. A licensee located outside of the state shall collect and remit the tax to the 23
department if the licensee has more than 200 transactions in the state in the current or 24
preceding calendar year. 25
Sec. 43.50.855. Exemptions. (a) The tax does not apply to 26
(1) a closed electronic smoking product or vapor product 27
(A) sold in a facility operated by one of the uniformed services 28
of the United States; 29
(B) approved for sale by the United States Food and Drug 30
Administration as a drug, drug product, including a drug product used to treat 31 34-LS0368\N
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tobacco dependence, or combination product under 21 U.S.C. 301 - 392 1
(Federal Food, Drug, and Cosmetic Act); 2
(C) if the United States Constitution or other federal laws 3
prohibit the levying of the tax on the product by the state; 4
(D) designed, marketed, and sold for the purpose of vaporizing 5
or aerosolizing marijuana, marijuana products, hemp, or hemp products if the 6
marijuana, marijuana products, hemp, or hemp products do not contain 7
nicotine and are intended for sale only in a retail marijuana store; 8
(2) marijuana or marijuana products subject to tax under AS 43.61 if 9
the marijuana or marijuana products do not contain nicotine; or 10
(3) hemp or hemp products if the hemp or hemp products do not 11
contain nicotine. 12
(b) In this section, 13
(1) "hemp" and "hemp products" mean hemp or a hemp product 14
produced by an individual registered under AS 03.05.076; 15
(2) "marijuana," "marijuana products," and "retail marijuana store" 16
have the meanings given in AS 17.38.900; 17
(3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 18
Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 19
person must be licensed by the department if the person engages in business as a 20
retailer of an electronic smoking product. 21
(b) The department, upon application and payment of a fee of $50, shall issue 22
a license for one year to a person who applies for a license under (a) of this section. 23
(c) The department may refuse to issue a license under this section if 24
(1) there is reasonable cause to believe the information submitted in 25
the application is false or misleading and is not made in good faith; 26
(2) the applicant is not in good standing under AS 10.06 (Alaska 27
Corporations Code); or 28
(3) a tax levied under this chapter is due and unpaid by the applicant. 29
(d) A license issued under this section must include the name and address of 30
the licensee, the type of business to be conducted, and the year for which the license is 31 34-LS0368\N
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issued. 1
(e) The department may renew a license issued under this section for a fee of 2
$50 if the applicant 3
(1) is in good standing under AS 10.06 (Alaska Corporations Code); 4
and 5
(2) does not have unpaid taxes under this chapter. 6
(f) The department may suspend, revoke, or refuse to renew a license issued 7
under this section as provided in AS 43.50.070. 8
(g) A license required by this section is in addition to any other license 9
required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 10
or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 11
(h) A license issued under this section is not assignable or transferable, except 12
that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 13
if the business of the licensee is transferred to another by operation of law, the 14
department may extend the license for a limited time to the executor, administrator, 15
trustee, receiver, or transferee. 16
(i) A person licensed under this section may not 17
(1) distribute an electronic smoking product designed or packaged so 18
as not to be clearly recognizable as an electronic smoking product; or 19
(2) market an electronic smoking product, including a flavored 20
electronic smoking product, in a manner likely to promote use of the electronic 21
smoking product by a person under 21 years of age. 22
Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 23
licensee shall file a return with the department. The return must state the number or 24
amount of closed electronic smoking products, vapor products, and other electronic 25
smoking products sold by the licensee during the preceding calendar month, the 26
selling price of the electronic smoking products, and the amount of tax imposed on the 27
closed electronic smoking products and vapor products. 28
Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 29
of all electronic smoking products of the licensee, including purchase prices, sales 30
prices, the names and addresses of the sellers, the dates of delivery, the quantities of 31 34-LS0368\N
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electronic smoking products, and the trade names and brands. Statements and records 1
required by this section must be in the form prescribed by the department, preserved 2
for three years, and available for inspection upon demand by the department. 3
Sec. 43.50.875. Disposition of proceeds. The annual proceeds of the tax 4
levied under AS 43.50.850 shall be deposited into the tobacco use education and 5
cessation fund established in AS 37.05.580 and may be appropriated from the fund for 6
the purposes listed in AS 44.29.020(a)(12) or for efforts to prevent or detect the use of 7
tobacco or electronic smoking products in a school. 8
Sec. 43.50.880. 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 authorized by law to possess electronic smoking products not taxed under 17
this chapter. 18
(b) A person who is licensed under this chapter may not ship or cause to be 19
shipped an electronic smoking product to a person in this state unless the person 20
receiving the electronic smoking product 21
(1) is licensed under this chapter; 22
(2) holds a business license endorsement under AS 43.70.075; 23
(3) is an operator of a customs bonded warehouse under 19 U.S.C. 24
1311 or 19 U.S.C. 1555; 25
(4) is an instrumentality of the federal government or an Indian tribal 26
organization authorized by law to possess electronic smoking products not taxed under 27
this chapter; or 28
(5) is an individual 21 years of age or older and the individual's age 29
was verified at the time of purchase though a third-party verification service, the 30
individual is receiving the electronic smoking product for personal consumption, and 31 34-LS0368\N
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the tax imposed on the electronic smoking product under this chapter has been paid. 1
(c) A common or contract carrier may not knowingly transport an electronic 2
smoking product to a person in this state unless the person 3
(1) shipping the electronic smoking product is licensed under this 4
chapter and, before shipment, provides the common or contract carrier with a copy of 5
the person's current license issued by the department and 6
(A) an affidavit from the intended recipient certifying that the 7
person receiving the electronic smoking product is a person described under 8
(b)(1) - (4) of this section; or 9
(B) the common or contract carrier verifies the age of the 10
recipient as 21 years of age or older before delivery; or 11
(2) receiving the electronic smoking product is a person described 12
under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 13
provides the common or contract carrier with a copy of the person's current license 14
issued by the department. 15
(d) If an electronic smoking product is transported by a common or contract 16
carrier to a home or residence, it is rebuttably presumed that the common or contract 17
carrier knew that the recipient of the electronic smoking product was not a person 18
described under (b)(1) - (5) of this section, unless the person shipping the electronic 19
smoking product has satisfied the requirements in (c)(1) of this section. 20
(e) A person, other than a common or contract carrier, may not knowingly 21
transport an electronic smoking product to a person in this state, unless the recipient of 22
the electronic smoking product is a person described under (b)(1) - (5) of this section. 23
(f) A person who ships or causes to be shipped an electronic smoking product 24
to a person in this state shall plainly and visibly mark the container or wrapping with 25
the words "electronic smoking product" if the electronic smoking product is shipped in 26
a container or wrapping other than the manufacturer's original container or wrapping 27
of the electronic smoking product. 28
(g) A person who violates the provisions of this section is guilty of a class A 29
misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 30
electronic smoking product. 31 34-LS0368\N
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(h) In addition to the criminal penalty under (g) of this section, the department 1
may assess a civil penalty of not more than $5,000 for each violation of this section. 2
(i) A person who violates the provisions of this section is jointly and severally 3
liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 4
Constitution of the United States, a person who violates the provisions of this section 5
is required to collect the taxes and pay them to the department. 6
Sec. 43.50.885. Restrictions on electronic smoking products. A person may 7
sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 8
for sale or distribution in this state, or import or cause to be imported into this state for 9
sale or distribution in this state only electronic smoking products 10
(1) for which the component vapor product 11
(A) has a nicotine content of not more than 50 milligrams of 12
nicotine for each milliliter of vapor product; 13
(B) is protected from breakage and leakage; 14
(C) does not contain added vitamins or other additives 15
marketed to create the impression of health benefits; in this subparagraph, 16
"vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 17
stimulants, and colorants; 18
(2) that are packaged to be child- and tamper-proof; and 19
(3) that are labeled to inform consumers about all vapor product 20
ingredients and nicotine content. 21
Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, "sales price" 22
(1) means the total amount of consideration, including cash, credit, 23
property, and services, for which an electronic smoking product is purchased or sold, 24
valued in money, whether received in money or otherwise, without any deduction for 25
(A) the seller's cost of the electronic smoking product sold; 26
(B) the cost of materials used, labor or service cost, interest, 27
losses, cost of transportation, taxes, or other expenses of the seller; 28
(C) charges by the seller for services necessary to complete the 29
sale; 30
(D) delivery charges; 31 34-LS0368\N
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(2) does not include 1
(A) discounts, including cash or coupons that are not 2
reimbursed by a third party, that are allowed by a seller and taken by a 3
purchaser on a sale; 4
(B) interest, financing, and carrying charges from credit 5
extended on the sale of an electronic smoking product if the amount is 6
separately stated on the invoice, bill of sale, or similar document given to the 7
purchaser; and 8
(C) taxes legally imposed directly on the consumer that are 9
separately stated on the invoice, bill of sale, or similar document given to the 10
purchaser. 11
Article 9. General Provisions. 12
Sec. 43.50.990. Definitions. In this chapter, 13
(1) "closed electronic smoking product" means a single-use electronic 14
smoking product that includes a pre-filled disposable cartridge of vapor product; 15
(2) "electronic smoking product" 16
(A) includes 17
(i) a product that can be used to deliver aerosolized or 18
vaporized nicotine to the person inhaling; 19
(ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 20
or other similar device of any shape; 21
(iii) a component, part, accessory, or device related to 22
an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 23
device of any shape; 24
(iv) a vapor product used in a device or product 25
described in (i) or (ii) of this subparagraph; 26
(v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 27
or other similar device of any shape sold together with a solution, vapor 28
product, or other similar product as a disposable nonrefillable unit; 29
(B) does not include a 30
(i) battery, battery charger, heating element, electronic 31 34-LS0368\N
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coil, or mouthpiece intended for use in an electronic smoking product, 1
when sold separately from the electronic smoking product; 2
(ii) cartridge, pod, tank, or similar container intended to 3
transport a vapor product, if sold empty; 4
(3) "nicotine" has the meaning given in AS 11.81.900(b); 5
(4) "retailer" means a person in the state who is engaged in the 6
business of selling electronic smoking products at retail; 7
(5) "vapor product" means a substance intended to be aerosolized or 8
vaporized during the use of an electronic smoking product. 9
* Sec. 20. AS 43.70.075(f) is amended to read: 10
(f) A person who holds a license endorsement issued under this section shall 11
post on the licensed premises a warning sign as described in this subsection. A 12
warning sign required by this subsection must be at least 8.5 inches by 11 inches and 13
must read: "The sale of electronic smoking products or products containing nicotine 14
without a prescription or tobacco products to persons under age 21 [19] is illegal." A 15
person holding an endorsement issued under this section shall display the warning sign 16
in a manner conspicuous to a person purchasing or consuming tobacco products, 17
electronic smoking products, or products containing nicotine on the licensed premises. 18
The department shall make available the warning signs required under this section to a 19
person who holds an endorsement issued under this section or a person who requests 20
the sign with the intention of displaying it. 21
* Sec. 21. AS 43.70.075(m) is amended to read: 22
(m) The department may initiate suspension of a business license endorsement 23
or the right to obtain a business license endorsement under this section by sending the 24
person subject to the suspension a notice by certified mail, return receipt requested, or 25
by delivering the notice to the person. The notice must contain information that 26
informs the person of the grounds for suspension, the length of any suspension sought, 27
and the person's right to administrative review. A suspension begins 30 days after 28
receipt of notice described in this subsection unless the person delivers a timely 29
written request for a hearing to the department in the manner provided by regulations 30
of the department. If a hearing is requested under this subsection, an administrative 31 34-LS0368\N
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law judge of the office of administrative hearings (AS 44.64.010) shall determine the 1
issues by using the preponderance of the evidence test and shall, to the extent they do 2
not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 3
manner provided by regulations of the department. A hearing under this subsection is 4
limited to the following questions: 5
(1) was the person holding the business license endorsement, or an 6
agent or employee of the person while acting within the scope of the agency or 7
employment of the person, convicted by plea or judicial finding of violating 8
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 9
(2) if the department does not allege a conviction of AS 11.76.100, 10
11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 11
person while acting within the scope of the agency or employment of the person, 12
violate a provision of (a) or (g) of this section; 13
(3) within the 24 months before the date of the department's notice 14
under this subsection, was the person, or an agent or employee of the person while 15
acting within the scope of the agency or employment of the person, convicted of 16
violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 17
violating a provision of (a) or (g) of this section; 18
(4) did the person holding the business license endorsement establish 19
that the person holding the business license endorsement had adopted and enforced an 20
education, a compliance, and a disciplinary program for agents and employees of the 21
person as provided in (t) of this section; 22
(5) did the person holding the business license endorsement overcome 23
the rebuttable presumption established in (w) of this section; 24
(6) within five years before the date of the violation that is the subject 25
of the hearing, did the department establish that the person holding the business 26
license endorsement 27
(A) previously violated (a) or (g) of this section; 28
(B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 29
11.76.109 at a location or outlet in a location for which the person holds a 30
business license endorsement, or had an agent or employee previously violate 31 34-LS0368\N
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AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 1
apply to a prior conviction that served to enhance a suspension period under 2
(d)(2) - (4) of this section; or 3
(C) engaged at a location owned by the person in other conduct 4
that was or is likely to result in the sale of tobacco, electronic smoking 5
products, or products containing nicotine to a person under 21 [19] years of 6
age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 7
* Sec. 22. AS 43.70.075(t) is amended to read: 8
(t) Based on evidence provided at the hearing under (m)(4) - (6) of this 9
section, the department may reduce the license suspension period under (d) of this 10
section if the person holding the business license endorsement establishes that, before 11
the date of the violation, the person had 12
(1) adopted and enforced a written policy against selling cigarettes, 13
cigars, tobacco, products containing tobacco, electronic smoking products, or products 14
containing nicotine to a person under 21 [19] years of age in violation of 15
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 16
(2) informed the person's agents and employees of the applicable laws 17
and their requirements and conducted training on complying with the laws and 18
requirements; 19
(3) required each agent and employee of the person to sign a form 20
stating that the agent and employee has been informed of and understands the written 21
policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 22
(4) determined that the agents and employees of the person had 23
sufficient experience and ability to comply with the written policy and requirements of 24
AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 25
(5) required the agents and employees of the person to verify the age 26
of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 27
electronic smoking products, or products containing nicotine by means of a valid 28
government issued photographic identification; 29
(6) established and enforced disciplinary sanctions for noncompliance 30
with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 31 34-LS0368\N
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and 11.76.109; and 1
(7) monitored the compliance of the agents and employees of the 2
person with the written policy and the requirements of AS 11.76.100, 11.76.106, 3
11.76.107, and 11.76.109. 4
* Sec. 23. AS 43.70.075(w) is amended to read: 5
(w) For purposes of (m)(5) of this section, a conviction for a violation of 6
AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 7
person who holds the business license endorsement is rebuttably presumed to 8
constitute proof of the fact that the agent or employee negligently sold a cigarette, a 9
cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 10
product containing nicotine to a person under 21 [19] years of age. The person who 11
holds the business license endorsement may overcome the presumption by 12
establishing by clear and convincing evidence that the agent or employee did not 13
negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 14
electronic smoking product, or a product containing nicotine to a person under 21 [19] 15
years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 16
alleged in the citation issued to the agent or employee. The presentation of evidence 17
authorized by this subsection does not constitute a collateral attack on the conviction 18
described in this subsection. 19
* Sec. 24. AS 45.50.471(b) is amended by adding a new paragraph to read: 20
(58) marketing an electronic smoking product in a manner likely to 21
promote use of electronic smoking products by a person under 21 years of age; in this 22
paragraph, "electronic smoking product" 23
(A) includes 24
(i) a product that can be used to deliver aerosolized or 25
vaporized nicotine to the person inhaling; 26
(ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 27
or other similar device of any shape; 28
(iii) a component, part, accessory, or device related to 29
an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 30
device of any shape; 31 34-LS0368\N
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(iv) a vapor product used in a device or product 1
described in (i) or (ii) of this subparagraph; 2
(v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 3
or other similar device of any shape sold together with a solution, vapor 4
product, or other similar product as a disposable nonrefillable unit; 5
(B) does not include a 6
(i) battery, battery charger, heating element, electronic 7
coil, or mouthpiece intended for use in an electronic smoking product, 8
when sold separately from the electronic smoking product; 9
(ii) cartridge, pod, tank, or similar container intended to 10
transport a vapor product, if sold empty. 11
* Sec. 25. AS 45.50.471(b)(58), enacted by sec. 24 of this Act, is amended to read: 12
(58) marketing an electronic smoking product in a manner likely to 13
promote use of electronic smoking products by a person under 21 years of age; in this 14
paragraph, "electronic smoking product" has the meaning given in AS 43.50.990 15
[(A) INCLUDES 16
(i) A PRODUCT THAT CAN BE USED TO 17
DELIVER AEROSOLIZED OR VAPORIZED NICOTINE TO THE 18
PERSON INHALING; 19
(ii) AN e-CIGARETTE, e-CIGAR, e-PIPE, e-20
HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 21
SHAPE; 22
(iii) A COMPONENT, PART, ACCESSORY, OR 23
DEVICE RELATED TO AN e-CIGARETTE, e-CIGAR, e-PIPE, e-24
HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 25
SHAPE; 26
(iv) A VAPOR PRODUCT USED IN A DEVICE OR 27
PRODUCT DESCRIBED IN (i) OR (ii) OF THIS SUBPARAGRAPH; 28
(v) AN e-CIGARETTE, e-CIGAR, e-PIPE, e-29
HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 30
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PRODUCT, OR OTHER SIMILAR PRODUCT AS A DISPOSABLE 1
NONREFILLABLE UNIT; 2
(B) DOES NOT INCLUDE A 3
(i) BATTERY, BATTERY CHARGER, HEATING 4
ELEMENT, ELECTRONIC COIL, OR MOUTHPIECE INTENDED 5
FOR USE IN AN ELECTRONIC SMOKING PRODUCT, WHEN 6
SOLD SEPARATELY FROM THE ELECTRONIC SMOKING 7
PRODUCT; 8
(ii) CARTRIDGE, POD, TANK, OR SIMILAR 9
CONTAINER INTENDED TO TRANSPORT A VAPOR PRODUCT, 10
IF SOLD EMPTY]. 11
* Sec. 26. AS 47.12.030(b) is amended to read: 12
(b) When a minor is accused of violating a statute specified in this subsection, 13
other than a statute the violation of which is a felony, this chapter and the Alaska 14
Delinquency Rules do not apply and the minor accused of the offense shall be 15
charged, prosecuted, and sentenced in the district court in the same manner as an 16
adult; if a minor is charged, prosecuted, and sentenced for an offense under this 17
subsection, the minor's parent, guardian, or legal custodian shall be present at all 18
proceedings; the provisions of this subsection apply when a minor is accused of 19
violating 20
(1) a traffic statute or regulation, or a traffic ordinance or regulation of 21
a municipality; 22
(2) AS 11.76.105, relating to the possession of tobacco by a person 23
under 21 [19] years of age; 24
(3) a fish and game statute or regulation under AS 16; 25
(4) a parks and recreational facilities statute or regulation under 26
AS 41.21; 27
(5) [REPEALED 28
(6)] a municipal curfew ordinance, whether adopted under 29
AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 30
ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 31 34-LS0368\N
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the violation of a municipal curfew ordinance, the court shall allow a defendant the 1
option of performing community work; the value of the community work, which may 2
not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 3
in this paragraph, "community work" includes the work described in AS 12.55.055(b) 4
or work that, on the recommendation of the municipal or borough assembly, city 5
council, or traditional village council of the defendant's place of residence, would 6
benefit persons within the municipality or village who are elderly or disabled; 7
(6) [(7)] AS 04.16.050, relating to consumption, possession, or control 8
of alcohol by a person under 21 years of age. 9
* Sec. 27. AS 11.76.100(e) is repealed. 10
* Sec. 28. The uncodified law of the State of Alaska is amended by adding a new section to 11
read: 12
APPLICABILITY. The following sections apply to offenses committed on or after the 13
effective date of those sections: 14
(1) AS 11.76.100(a), as amended by sec. 1 of this Act; 15
(2) AS 11.76.100(b), as amended by sec. 2 of this Act; 16
(3) AS 11.76.105, as amended by sec. 3 of this Act; 17
(4) AS 11.76.105(d) - (f), enacted by sec. 4 of this Act; 18
(5) AS 11.76.106(b), as amended by sec. 5 of this Act; 19
(6) AS 11.76.109(a), as amended by sec. 6 of this Act; 20
(7) AS 11.76.109(b), as amended by sec. 7 of this Act; 21
(8) AS 11.76.109(d), as amended by sec. 8 of this Act; 22
(9) AS 11.76.109(g), as amended by sec. 9 of this Act; 23
(10) AS 11.81.900(b)(71), enacted by sec. 10 of this Act; 24
(11) AS 43.50.325, enacted by sec. 18 of this Act; 25
(12) AS 43.50.880, enacted by sec. 19 of this Act; and 26
(13) AS 47.12.030(b), as amended by sec. 26 of this Act. 27
* Sec. 29. Sections 13, 16, 19, and 25 of this Act take effect January 1, 2027. 28
* Sec. 30. Except as provided in sec. 29 of this Act, this Act takes effect January 1, 2026. 29