Legislature(2017 - 2018)ADAMS ROOM 519

04/12/2018 01:30 PM House FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Moved CSSB 37(FIN) Out of Committee
-- Public Testimony --
Heard & Held
-- Public Testimony --
Scheduled but Not Heard
-- Public Testimony --
+ Bills Previously Heard/Scheduled TELECONFERENCED
Moved SB 158 Out of Committee
CS FOR SENATE BILL NO. 15(FIN)                                                                                                
     "An  Act  relating  to   possession  of  an  electronic                                                                    
     smoking product  or a product containing  nicotine by a                                                                    
     minor  and to  selling or  giving a  product containing                                                                    
     nicotine or  an electronic smoking product  to a minor;                                                                    
     relating  to  business  license  endorsements  to  sell                                                                    
     cigarettes,   cigars,   tobacco,  products   containing                                                                    
     tobacco,  electronic  smoking   products,  or  products                                                                    
     containing  nicotine;  and  relating to  citations  for                                                                    
     certain    offenses   concerning    tobacco,   products                                                                    
     containing nicotine, or electronic smoking products."                                                                      
3:00:20 PM                                                                                                                    
TIM LAMKIN, STAFF, SENATOR GARY STEVENS, read a prepared                                                                        
     For  anyone not  acquainted with  E-cigarettes, I  have                                                                    
     prepared a  brief slideshow, to play  in the background                                                                    
     as I  discuss the  purpose of  this bill.  These images                                                                    
     will  introduce,   or  remind,  you  of   their  common                                                                    
     components, sample  styles and  brands, what are  now a                                                                    
     multitude   of   exotic   flavorings,   and   marketing                                                                    
     strategies. This bill is  about protecting our children                                                                    
     from  becoming  addicted  to   nicotine.  It  is  about                                                                    
     clearly restricting  sales to  and possession  of these                                                                    
     products to youth under the age of 19.                                                                                     
     The use  of electronic  cigarettes is an  exploding new                                                                    
     trend  in  smoking.  It  is  commonly  referred  to  as                                                                    
     "vaping."  Public health  advocacy,  with  the help  of                                                                    
     proven scientific evidence, is  winning the war against                                                                    
     tobacco.  Use  of  traditional  tobacco  cigarette  and                                                                    
     related products is clearly on  the decline. Tobacco is                                                                    
     a  dying  industry.   The  tobacco  manufacturers  have                                                                    
     acknowledged  this  trend  and are  responding  with  a                                                                    
     barrage  of new  fashionable  smoking  options, in  the                                                                    
     form  of  E-Cigarettes   and  related  modular  devices                                                                    
     designed to appeal to a wide range of consumers.                                                                           
     Currently,  according  to  the US  Center  for  Disease                                                                    
     Control,  there are  in the  neighborhood of  4 million                                                                    
     middle and  high school  students using  these products                                                                    
     nationwide.  In Alaska,  the numbers  show about  15-25                                                                    
     percent of our students have  at least been exposed to,                                                                    
     if they  are not regularly using  E-cigarette products.                                                                    
     See, there is a loophole.                                                                                                  
     While  it is  currently technically  illegal to  buy or                                                                    
     sell nicotine products to minors,  it is not illegal to                                                                    
     possess  E-Cig products.  Nor are  all of  the products                                                                    
     supposedly     containing     nicotine,     supposedly.                                                                    
     Furthermore, there  is currently  no provision  for law                                                                    
     enforcement  or  investigators   to  enforce  or  issue                                                                    
     violations  for   possession.  Nor  cite   vendors  for                                                                    
     selling E-products to minors,  the penalties are pretty                                                                    
    weak right now. And the industry and youth know it.                                                                         
     An informal survey our  office commissioned last March,                                                                    
     asking Alaska school  teachers and administrators about                                                                    
     E-Cigarette use in our schools,  showed that 78 percent                                                                    
     of   educators  are   concerned  with   a  current   or                                                                    
     foreseeable problem with youth access  to and use of E-                                                                    
     cigarette products. Meanwhile,  the feds, public health                                                                    
     advocates,  state and  local  governments, schools  and                                                                    
     communities are all struggling to  catch up and respond                                                                    
     to this fast-moving industry.                                                                                              
     There are a  lot of questions, perhaps  the biggest one                                                                    
     being,  "Are these  products safe?"  and "should  we be                                                                    
     tacitly  allowing   our  children   to  take   up  this                                                                    
     activity?"  The latest  research available,  not funded                                                                    
     by  big  tobacco,  shows   the  health  benefits  being                                                                    
     dubious  at best.  I would  concede that  the chemicals                                                                    
     used  in  E-cig  products  may be  safer  than  smoking                                                                    
     tobacco,  but  we would  should  not  be too  quick  to                                                                    
     accept these chemicals as themselves being safe.                                                                           
     The FDA  has approved  of many  of the  known chemicals                                                                    
     used in  E-juice to be  safe enough for  ingestion, but                                                                    
     not  as   an  inhalant,  long-term  effects   are  just                                                                    
     beginning to be studied.  The most common and intuitive                                                                    
     approach  to addressing  a policy  on this  new era  of                                                                    
     smoking products  is to  treat them  in the  exact same                                                                    
     manner  as we  have  structured  tobacco policies.  And                                                                    
     that is what this bill does.                                                                                               
     We start  with the commercial activity  and the vendors                                                                    
     selling the  products, to include  a requirement  for a                                                                    
     special  endorsement on  their  business license,  just                                                                    
     like tobacco  retailers. This  is the  only way  we can                                                                    
     effectively  identify who  is out  there selling  these                                                                    
     products, and  in turn provided state  agency authority                                                                    
     to monitor sales activity  and enforce violations, with                                                                    
     stiffer penalties.                                                                                                         
     Currently, there  are several  hidden shops  out there,                                                                    
     selling  these products,  but by  the  nature of  their                                                                    
     business  name,  would  give  no  indication  they  are                                                                    
     selling E-products.                                                                                                        
     Examples: Tesoro in the  valley, Zooks downtown, Lola's                                                                    
     Filipino  restaurant and  mini grocery  store, and  the                                                                    
     Gas N  Go Coffee  hut, by  Western Auto.  Currently the                                                                    
     only way to find out  that these vendors are selling E-                                                                    
     products is by word of  mouth, or by driving around and                                                                    
     visiting random stores.                                                                                                    
     In wrap up,  and before we get into the  nuts and bolts                                                                    
     of the bill,  I would like to take a  moment to address                                                                    
     some  of the  rhetoric you  will likely  be hearing  in                                                                    
     opposition to this  bill. You will likely  hear that we                                                                    
     do not need this bill,  that the feds already have laws                                                                    
     in  place restricting  youth access  and enforce  those                                                                    
     laws. The fact  is the Alcohol, Drug  Abuse, and Mental                                                                    
     Health  Administration   Reorganization  Act   of  1992                                                                    
     requires states  to enact and enforce  laws restricting                                                                    
     youth access to  tobacco products. The FDA  does have a                                                                    
     limited   enforcement  resources,   that  are   usually                                                                    
     contracted  out for  occasional compliance  checks, but                                                                    
     penalties consist  of little  more than  a slap  on the                                                                    
     wrist  for vendors.  I can  go into  some detail  about                                                                    
     federal enforcement if  you wish. But, we  do need this                                                                    
     bill   for   meaningful  monitoring   and   enforcement                                                                    
     You  may  hear  that  the  paperwork  for  getting  the                                                                    
     tobacco  endorsement is  onerous and  hurts businesses.                                                                    
     Standard business license  applications are 4-pages and                                                                    
     takes about  10 minutes  to complete.  You check  a box                                                                    
     for the endorsement  and fill out a 5th  page. The cost                                                                    
     of  a  license  is  $50  per  year  and  $100  for  and                                                                    
     endorsement  per location,  which were  not onerous  or                                                                    
     damaging  to   business.  This  is  a   very  lucrative                                                                    
     You  may hear  that these  products are  a miracle  for                                                                    
     smokers  trying to  quit,  which may  be  true in  some                                                                    
     cases, most typically for older  adults who have smoked                                                                    
     for many  years. However,  that is  entirely irrelevant                                                                    
     to  this bill,  as  adult smoking  habits  are not  the                                                                    
     target here.  We are trying to  prevent youngsters from                                                                    
     taking up the habit in the first place.                                                                                    
     You may  hear that these  are not tobacco  products and                                                                    
     should be not be associated  with tobacco, but they are                                                                    
     related.  In  August  2017,  the  FDA  ruled  that  for                                                                    
     practical  and  regulatory   purposes,  these  products                                                                    
     should be  treated as tobacco  products. After  all, it                                                                    
     mimics  traditional smoking:  they  often  look like  a                                                                    
     cigarette, glow like one, and  produce smoke. It's just                                                                    
     another kind  of smoking.  However, they  are available                                                                    
     in  all  the  flavors  and  aromas  of  chocolate  chip                                                                    
     cookies, apple pie, or cotton  candy. You may hear that                                                                    
     these products  are harmless because they  don't always                                                                    
     contain Nicotine. That is unproven.                                                                                        
     There  are  currently  no  requirements  to  verify  or                                                                    
     regulate  labelling and  marketing of  this E-juice.  A                                                                    
     2016 study  in North  Dakota found  that 51  percent of                                                                    
     the samples tested contained  higher levels of nicotine                                                                    
     than was  reported on the  labels, sometimes up  to 173                                                                    
     percent  more  than  was  labelled.  Even  this  little                                                                    
     bottle here, which I bought at  the Gas N Go for $1 (no                                                                    
     tax),  says "Zero  Nicotine" but  on the  side in  fine                                                                    
     print it reads "may  contain trace levels" of nicotine.                                                                    
     In  that same  North  Dakota study,  43  percent of  E-                                                                    
     liquid  containers  labelled   as  having  no  nicotine                                                                    
     actually  had significant  levels of  nicotine present.                                                                    
     We should  be skeptical of nicotine  labelling of these                                                                    
     You  may  hear  that   everyone  wants  to  keep  these                                                                    
     products  out of  youths'  hands, but  it  is in  their                                                                    
     hands, and readily so.                                                                                                     
     Most vendors  are legitimately making that  effort. But                                                                    
     some are not.  If this industry is  truly supportive of                                                                    
     restricting  youth access  to E-Cigarette  products and                                                                    
     nicotine, there should be no opposition to this bill.                                                                      
     In closing, this  bill is about closing  a loophole. It                                                                    
     is  about  giving  our  state  agencies  the  tools  to                                                                    
     monitor and enforce these  restrictions. The urgency is                                                                    
     growing.  Senate  Bill 15  would  have  us approach  e-                                                                    
     cigarettes  with  severe  caution on  behalf  of  young                                                                    
     Thank you  for allowing  us to place  the issue  on the                                                                    
[The presenter played a silent video depicting vape                                                                             
products while making his presentation].                                                                                        
3:13:19 PM                                                                                                                    
Representative  Kawasaki wondered  about  the comments  that                                                                    
teens introduced  to vaping  were more  likely to  develop a                                                                    
habit. He was unsure to  what extent that kids would develop                                                                    
an  addiction  to  vaping. He  wondered  whether  scientific                                                                    
evidence  existed  that  proved the  statement.  Mr.  Lamkin                                                                    
indicated there was a "growing  body of evidence that vaping                                                                    
was a "gateway activity." He  added that nicotine was proven                                                                    
to be addictive and frequently  engaging in an activity that                                                                    
delivered nicotine developed into a habit.                                                                                      
Vice-Chair Gara  supported the bill.  He had a  question for                                                                    
Legislative  Legal  Services.  Vice-Chair Gara  referred  to                                                                    
page 2  of the bill  regarding punishment for  possession of                                                                    
the  product.  He  asked  about   the  fine  and  wanted  to                                                                    
determine  the   level  of  criminality  of   the  fine.  He                                                                    
indicated  that fines  were considered  "quasi-criminal." He                                                                    
wondered what  the levels of  fines and violations  were. He                                                                    
wanted to ensure  the fine for a 19 year  -old in possession                                                                    
of e-cigarettes was a very low-level offense.                                                                                   
HILARY  MARTIN,  LEGISLATIVE  LEGAL  SERVICES,  JUNEAU  (via                                                                    
teleconference), reported that a  violation was defined as a                                                                    
non-criminal offense,  therefore a fine was  only a penalty.                                                                    
She detailed  that under AS  12.53.050 a default fine  for a                                                                    
violation was $500. The court  ruled that the fine could not                                                                    
be so high that it signified criminality.                                                                                       
3:17:29 PM                                                                                                                    
Vice-Chair Gara asked if either  a violation or a fine would                                                                    
end  up  on someone's  court  record.  Ms. Hillary  believed                                                                    
violations  would  show  up on  someone's  record  and  were                                                                    
posted  on Court  View. She  restated that  a fine  was only                                                                    
penalty. Vice-Chair  Gara asked  whether there  was anything                                                                    
lower than  a violation  that would  not appear  on records.                                                                    
Ms.  Martin  responded  that  a  violation  was  the  lowest                                                                    
penalty.  Vice-Chair Gara  asked  if the  type of  violation                                                                    
would be listed in the  records. Ms. Martin thought that the                                                                    
violation referenced the statute that was violated.                                                                             
Mr. Lamkin  noted that the  provisions in the bill  were the                                                                    
existing  statute  for  cigarettes  and  tobacco.  The  bill                                                                    
inserted  e-cigarettes  into  existing  statute.  Vice-Chair                                                                    
Gara understood the bill.                                                                                                       
Representative  Wilson  was   having  difficulty  with  non-                                                                    
nicotine  products and  the potential  for a  violation. She                                                                    
asked  whether  there were  products  that  did not  contain                                                                    
nicotine  that  were  included   in  the  bill.  Mr.  Lamkin                                                                    
answered  that it  was uncertain  whether the  products were                                                                    
truly  nicotine free.  Products that  were labeled  nicotine                                                                    
free  were  found  to  contain   nicotine  when  tested.  In                                                                    
addition,  current research  was  discovering the  "dubious"                                                                    
effects  of other  chemicals  contained  in the  e-cigarette                                                                    
"juice."  He  noted  that   all  juice  contained  Propylene                                                                    
Glycol, which was an anti-freeze  chemical. He believed that                                                                    
our bodies were  designed to "just breathe air"  and did not                                                                    
believe  the  products  were  safe  regardless  of  nicotine                                                                    
3:22:49 PM                                                                                                                    
Representative Wilson  asked why the  issue was not  left up                                                                    
to parental choice. Mr. Lamkin  maintained that the question                                                                    
applied  to  any  number  of   issues  related  to  parental                                                                    
involvement. He informed committee  members that a provision                                                                    
in the bill  allowed parents to "make  the accommodation" if                                                                    
the  Food   and  Drug  Administration  (FDA)   approved  the                                                                    
products   for  smoking   cessation,  which   it  had   not.                                                                    
Representative Wilson  asked if the product  was approved as                                                                    
a cessation product by the FDA,  it would not fall under the                                                                    
bill  and under  such circumstances  could a  parent provide                                                                    
the product  to their children.  Mr. Lamkin answered  in the                                                                    
affirmative and added that the  products had to be used only                                                                    
as a cessation product for the child.                                                                                           
3:24:26 PM                                                                                                                    
Representative Grenn  asked how many states  had "closed the                                                                    
loophole."  Mr.  Lamkin   responded  that  approximately  20                                                                    
states  had adopted  the  regulations. Representative  Grenn                                                                    
asked who regulated e-cigarette  liquid. Mr. Lamkin answered                                                                    
that the  FDA was just  beginning to regulate  the industry.                                                                    
Representative  Grenn  asked whether  the  hope  was that  a                                                                    
detailed  ingredient list  would  be  published. Mr.  Lamkin                                                                    
answered  in  the  affirmative.   He  heard  antidotes  that                                                                    
generic  55-gallon drums  of juice  could be  purchased from                                                                    
China and  an individual could  concoct their own  potion at                                                                    
home. Representative  Grenn referred  to Page 2,  Section 2.                                                                    
He wanted  to better understand  the section that  allowed a                                                                    
child  under 19  to  obtain an  e-cigarette  as a  cessation                                                                    
device from a pharmacist  without a prescription. Mr. Lamkin                                                                    
reiterated the  answer he gave to  Representative Wilson. He                                                                    
restated that the  product had to be approved by  the FDA as                                                                    
a cessation device, was marketed  as a cessation device, and                                                                    
was either prescribed  by a health care  professional, or by                                                                    
the  Department of  Health and  Social  Services (DHSS),  or                                                                    
provided  by the  parents  or  a pharmacist.  Representative                                                                    
Grenn  asked  whether  e-cigarettes  were  an  FDA  approved                                                                    
cessation device.  Mr. Lamkin  asserted that  in no  way the                                                                    
products were approved as a cessation devise by the FDA.                                                                        
3:28:15 PM                                                                                                                    
Representative Tilton  asked whether  someone under  the age                                                                    
of 19 who was in  possession of e-cigarettes was a violation                                                                    
and  the  highest  charge  one  would  receive.  Mr.  Lamkin                                                                    
stressed that the  real target of the bill  were the vendors                                                                    
and  the  bill  was  not  about  giving  teenagers  tickets.                                                                    
Representative   Tilton  relayed   a  story   from  personal                                                                    
experience.  She  asked if  he  had  seen the  devices  that                                                                    
dispensed vitamins  in a type  of vaping devise.  Mr. Lamkin                                                                    
answered in  the negative.  He suggested  that manufacturers                                                                    
would   find   creative   ways  to   market   the   devices.                                                                    
Representative  Tilton  confirmed   that  the  devices  were                                                                    
available with vitamins.                                                                                                        
3:32:08 PM                                                                                                                    
Representative   Kawasaki  ascertained   that  currently   a                                                                    
business that  did not sell  tobacco products could  sell e-                                                                    
cigarettes.  Mr. Lamkin  responded  that  the bill  provided                                                                    
endorsements that enabled vendors  to sell only e-cigarettes                                                                    
or only  tobacco products  or both.  Representative Kawasaki                                                                    
surmised  that  a  business   could  obtain  an  e-cigarette                                                                    
endorsement and  not sell  any products  containing nicotine                                                                    
and would  be licensed  separately than  a vaping  shop that                                                                    
would  sell   both.  Mr.   Lamkin  replied   that  "nicotine                                                                    
products" was  the "distinction" in the  bill. He delineated                                                                    
that  all the  vaping "hardware"  was considered  a nicotine                                                                    
product.  Representative Kawasaki  asked whether  businesses                                                                    
that were currently selling the  vaping equipment and juices                                                                    
that did not contain nicotine  and no other tobacco products                                                                    
would  need  an  endorsement   to  continue  selling  vaping                                                                    
products under the bill. Mr.  Lamkin clarified that the bill                                                                    
offered  2  separate  endorsements;   one  was  for  tobacco                                                                    
products  and  the  other  was   for  e-cigarettes  and  its                                                                    
components; pens  and juice regardless of  whether the juice                                                                    
contained nicotine.                                                                                                             
3:35:20 PM                                                                                                                    
Representative Kawasaki  asked whether underage  youth could                                                                    
legally purchase a bong in  a vape shop. Mr. Lamkin believed                                                                    
bongs were associated with the  consumption of marijuana and                                                                    
was not the subject of  SB 15. Representative Kawasaki asked                                                                    
whether a  youth could purchase  a tobacco pipe.  Mr. Lamkin                                                                    
replied that  pipes were treated  like tobacco  products and                                                                    
purchases were  restricted to individuals under  19 years of                                                                    
age and reiterated that it  was similar to purchasing vaping                                                                    
hardware which would  be restricted to youth  under 19 years                                                                    
Representative  Guttenberg reiterated  similar questions  as                                                                    
the  previous inquiry  regarding  the  vaping hardware.  Mr.                                                                    
Lamkin restated  that the all  the products  associated with                                                                    
vaping  was  covered  under the  bill  and  restricted  from                                                                    
purchase  for  youth under  the  age  of 19.  Representative                                                                    
Guttenberg assumed  the devices  were preloaded.  Mr. Lamkin                                                                    
responded  that   not  all  devises  were   pre-loaded;  the                                                                    
components  were   modular.  Therefore,  the   hardware  was                                                                    
3:38:47 PM                                                                                                                    
Co-Chair Seaton OPENED public testimony.                                                                                        
3:38:59 PM                                                                                                                    
ALLISON  KULAS,   EXECUTIVE  DIRECTOR,  ADVISORY   BOARD  OF                                                                    
ALCOHOLISM AND DRUG ABUSE, related  that in her previous job                                                                    
she worked as  a Tobacco Regulatory Science  Fellow with the                                                                    
National Academy  of Medicine  placed in  the Food  and Drug                                                                    
Administration  Center for  Tobacco  Products.  She was  not                                                                    
speaking on behalf of the  FDA but used the knowledge gained                                                                    
to "protect Alaska's children." She  believed that SB 15 was                                                                    
"an important step to prevent  youth from tobacco products."                                                                    
Research  had proven  that  nicotine  was highly  addictive,                                                                    
harmful  to teenager's  brain  development  and exposure  to                                                                    
nicotine left  them more susceptible  to nicotine  and other                                                                    
substance additions.  Nicotine also reduced  impulse control                                                                    
and  was  attributed  to  mood  disorders  and  deficits  in                                                                    
attention  and cognition.  Nicotine in  any form  was unsafe                                                                    
for  use,  yet  e-cigarettes  were the  most  commonly  used                                                                    
tobacco products.  A newly  released report  discovered that                                                                    
e-cigarettes  increased   the  risk  of   using  combustible                                                                    
cigarettes.  She commented  that SB  15 was  consistent with                                                                    
the   current  laws   that   restricted  tobacco   products.                                                                    
Preventing  illegal sales  to minors  protected the  nations                                                                    
youth from  the harmful  effects of  nicotine. Alaska  had a                                                                    
proven track  record of effective enforcement  of businesses                                                                    
with a tobacco endorsement.  The bill clarified the business                                                                    
rules and  restrictions on the  sale of tobacco  products by                                                                    
including e-cigarettes in the  existing statutes and further                                                                    
protected Alaska's youth. She urged  member to vote in favor                                                                    
of the bill.                                                                                                                    
Representative  Grenn asked  whether  evidence existed  that                                                                    
tobacco companies  were manufacturing  e-cigarette products.                                                                    
Ms.  Kulas responded  that  the  FDA did  not  know all  the                                                                    
manufacturers  of  the  products. She  indicated  that  some                                                                    
existing  tobacco  companies  were  marketing  the  products                                                                    
along with  small businesses. Representative Grenn  asked if                                                                    
the  marketing of  e-cigarette were  targeted at  youth. Ms.                                                                    
Kulas answered in the affirmative  and expounded that the e-                                                                    
cigarette  advertising was  like cigarette  advertising. The                                                                    
FDA had  spent ample funding to  develop marketing campaigns                                                                    
for youth to counter  the advertising exposure. She reported                                                                    
that in  October 2017 the  FDA developed a  digital campaign                                                                    
aimed at e-cigarette youth prevention.                                                                                          
3:43:51 PM                                                                                                                    
Representative  Guttenberg wondered  whether there  were any                                                                    
other  products  that  people ingested  without  any  safety                                                                    
standards  because   it  appeared  that   e-cigarettes  were                                                                    
totally  unregulated.  He   wondered  whether  any  existing                                                                    
standards applied to e-cigarettes  and confirmed what was in                                                                    
the products. Ms.  Kulas answered that the FDA  did not know                                                                    
what  ingredients   were  in  the  products.   The  FDA  was                                                                    
currently  accepting applications  that included  the liquid                                                                    
product  ingredient   list  and  FDA's   toxicologists  were                                                                    
attempting to  identify what was  in the product and  if the                                                                    
ingredients were safe. She noted  that some ingredients when                                                                    
ingested were designated by the  FDA as Generally Recognized                                                                    
As Safe (GRAS) but it was  unknown if they were harmful when                                                                    
3:45:32 PM                                                                                                                    
KRISTIN  COX,  GRANT  COORDINATOR,  TOBACCO  PREVENTION  AND                                                                    
CONTROL,  NATIONAL COUNCIL  ON  ALCOHOLISM DRUG  DEPENDENCE,                                                                    
JUNEAU,  supported  SB  15.   She  shared  some  statistical                                                                    
information. She  indicated that flavors  attracted children                                                                    
and  81 percent  of  youth tobacco  users  chose a  flavored                                                                    
product as their first product  and 25 percent believed that                                                                    
flavored  tobacco products  were safer.  However, they  were                                                                    
unsafe because  they initiated youth into  cigarette smoking                                                                    
and nicotine addiction. Three  recently published studies in                                                                    
medical journals determined that youth that used e-                                                                             
cigarettes were 4  to 7 times more likely  to become tobacco                                                                    
smokers. She added that the  effect was "unilateral" meaning                                                                    
cigarette smoking was not  associated with increased vaping.                                                                    
She concluded that restricting  youth access to e-cigarettes                                                                    
would reduce youth smoking and adult addiction rates.                                                                           
3:47:23 PM                                                                                                                    
BEVERLY  WOOLEY, SELF,  JUNEAU, was  retired but  previously                                                                    
served  as the  Director of  the Division  of Public  Health                                                                    
with the  state and  the municipality.  She related  that in                                                                    
the 1990's  the state knew  that large numbers  of retailers                                                                    
were selling  tobacco products  to children  due to  lack of                                                                    
accountability.  The state  instituted  enforcement and  the                                                                    
number of  incidents decreased to 5  percent. She emphasized                                                                    
that SB 15 would establish  the same laws that regulated the                                                                    
tobacco  industry for  e-cigarettes and  close the  loophole                                                                    
and provide  enforcement. She underscored that  edibles that                                                                    
were  considered healthy  were  much  different when  turned                                                                    
into an  aerosol or  combusted and  inhaled into  the lungs.                                                                    
She noted a state-wide study  where researchers went to some                                                                    
of  the "vape"  shops and  found they  were more  likely (36                                                                    
percent  of shops)  to sell  e-cigarettes to  children while                                                                    
established  retailers only  sold the  product 5  percent of                                                                    
the time  to children. She believed  in protecting children.                                                                    
She urged members to move the bill out of committee.                                                                            
3:50:06 PM                                                                                                                    
JAMIE  MORGAN, AMERICAN  HEART ASSOCIATION,  AMERICAN STROKE                                                                    
ASSOCIATION,  JUNEAU, spoke  in  support of  SB  15 for  the                                                                    
associations  and  urged  members  to  move  the  bill  from                                                                    
committee.  She reiterated  that  e-cigarettes were  harmful                                                                    
and  unregulated.  She reported  that  in  the 2016  surgeon                                                                    
general report  on e-cigarette  use showed  that e-cigarette                                                                    
use in  children increased the likelihood  of cigarette use.                                                                    
She  related that  the associations  supported including  e-                                                                    
cigarettes in laws that restricted access to children.                                                                          
3:51:39 PM                                                                                                                    
JOE  DARNELL, MANAGER,  YOUTH  TOBACCO ENFORCEMENT  PROGRAM,                                                                    
DEPARTMENT  OF HEALTH  AND SOCIAL  SERVICES, ANCHORAGE  (via                                                                    
teleconference), related that he  was the Chief Investigator                                                                    
for Tobacco Enforcement  for the state. He  spoke in support                                                                    
of the bill.  He cited the states statewide  vape shop study                                                                    
and reported that  in 2016 he encountered a  26 percent sell                                                                    
rate  for vaping  products versus  5.4  percent for  tobacco                                                                    
products;  in Anchorage  the sell  rate was  50 percent.  He                                                                    
added  that in  2017 the  statewide sell  rate jumped  to 35                                                                    
percent.  He  supported  the bill  and  asked  for  member's                                                                    
3:53:40 PM                                                                                                                    
ALEX   MCDONALD,  SELF,   FAIRBANKS  (via   teleconference),                                                                    
testified  against the  bill. He  shared that  he owned  the                                                                    
vape  shop Ice  Fog Vapor.  He declared  that he  heard much                                                                    
misinformation  in  the  prior  testimony.  He  stated  that                                                                    
federal law  required him  to age  verify customers  for any                                                                    
vape equipment.  He countered that  since the  previous fall                                                                    
FDA  instituted registering  and  labeling requirements.  He                                                                    
emphasized  that  federal  regulations were  the  norm  that                                                                    
considered  vape products  tobacco products.  He noted  that                                                                    
compliance  checks   were  carried   out  for   the  federal                                                                    
government through a contracted  vendor. He opined that "new                                                                    
rules"  were not  necessary but  better  enforcement of  the                                                                    
existing  rules were.  He related  that the  American Cancer                                                                    
Society recommended that long time  smokers switch to a less                                                                    
harmful product  such as vapor  products. He  mentioned that                                                                    
the FDA was  engaged in studies related to the  safety of e-                                                                    
cigarettes.  He concluded  that everything  in the  bill was                                                                    
covered under federal tobacco law.                                                                                              
Representative  Grenn   asked  whether   he  knew   all  the                                                                    
ingredients  in  the juice.  Mr.  McDonald  answered in  the                                                                    
affirmative and maintained that  propylene glycol acted as a                                                                    
carrier and  was found in  asthma inhalers and  oxygen tanks                                                                    
and had been  used for a long time. He  added that vegetable                                                                    
glycerin and  food flavorings  had also  "been around  for a                                                                    
long time."  Some vape  juice did  not contain  nicotine. He                                                                    
claimed that  propylene glycol was  added to hospital  H Vac                                                                    
systems  to keep  airborne  infections down.  Representative                                                                    
Grenn asked why the label  read that the product may contain                                                                    
nicotine. Mr.  McDonald responded  that the labeling  was an                                                                    
FDA   requirement.  Representative   Grenn  asked   why  the                                                                    
nicotine labeling would be  necessary. Mr. McDonald answered                                                                    
that there was a very low chance of cross contamination.                                                                        
3:59:53 PM                                                                                                                    
Representative Wilson  mentioned the  age requirement  of 19                                                                    
for  purchasing  vape products  and  asked  whether she  was                                                                    
correct. Mr. McDonald answered in the affirmative.                                                                              
Representative  Kawasaki   asked  if   the  bill   was  more                                                                    
restrictive than federal law.  Mr. McDonald thought the bill                                                                    
seemed redundant  to federal law,  although federal  law did                                                                    
not  require   licensing.  He  thought  SB   15  provided  a                                                                    
duplicate  service  since  the  federal  law  required  full                                                                    
enforcement  authority and  compliance  checks. He  surmised                                                                    
that the  legislation was more  of a licensing law  than one                                                                    
designed  to   protect  children.  He  purported   that  the                                                                    
prevalent source  for youth  tobacco products  was "social";                                                                    
supplied   by  older   friends  or   family.  Representative                                                                    
Kawasaki suggested  that the state  survey showed  that many                                                                    
vape  shops were  not in  compliance with  federal laws.  He                                                                    
asked for  comment. Mr. McDonald  felt that it did  not make                                                                    
sense  to make  new  laws  when the  current  laws were  not                                                                    
Vice-Chair  Gara had  been told  numerous  times that  until                                                                    
federal laws were implemented the heating element in e-                                                                         
cigarettes   could   contain   asbestos  and   other   toxic                                                                    
materials.  Mr.   McDonald  replied  in  the   negative.  He                                                                    
explained  that the  heating elements  used  Kanthal A-1,  a                                                                    
resistance  heating wire  found  in toaster  ovens and  hair                                                                    
dryers and the  wicking material was organic  cotton. He did                                                                    
not know where it was even possible to purchase asbestos.                                                                       
4:03:38 PM                                                                                                                    
JENNIFER  CHIKOYAK,  SELF, ANCHORAGE  (via  teleconference),                                                                    
spoke  in   support  of  the   bill.  She  spoke   from  the                                                                    
perspective of a parent and  shared that she tried to "guide                                                                    
her  son  into  making  good choices"  and  she  valued  the                                                                    
assistance  that  tobacco  and alcohol  laws  supplied.  She                                                                    
"appreciated  the  state  stepping  in  and  regulating"  e-                                                                    
cigarettes  like other  tobacco  products.  She favored  the                                                                    
state's penalties for tobacco sales  to minors and wanted to                                                                    
close the loophole for e-cigarettes.                                                                                            
4:04:59 PM                                                                                                                    
BETTY  MACTAVISH, SELF,  KODIAK (via  teleconference), spoke                                                                    
in favor  of the  bill. She  shared that  she was  a retired                                                                    
school teacher  and was currently a  substitute teacher. She                                                                    
stated that  e-cigarette use among youth  was increasing and                                                                    
characterized e-cigarettes  as an  "addictive tool"  for the                                                                    
tobacco  industry rather  than a  "quit" tool.  She observed                                                                    
that youth  who would not use  conventional tobacco products                                                                    
were attracted  to vaping, and  she characterized  vaping as                                                                    
"the new  cool thing to  do." She noted that  toxic aerosols                                                                    
and  chemicals were  "hidden" in  flavored vape  juiced. She                                                                    
supported protecting  the state's  youth through  passage of                                                                    
the bill.                                                                                                                       
4:07:12 PM                                                                                                                    
MARGE STONEKING,  AMERICAN LUNG ASSOCIATION,  ANCHORAGE (via                                                                    
teleconference), spoke  in support of the  bill. She relayed                                                                    
that   almost  all   e-cigarette   contained  nicotine   and                                                                    
chemicals and  toxins that  were unsafe  to inhale.  The FDA                                                                    
delayed  review of  ingredients  and  any potential  harmful                                                                    
effects  of  e-cigarettes  until  2022  leaving  unregulated                                                                    
products.  She thought  members  were aware  of the  harmful                                                                    
effects  of  nicotine  on   youth's  brain  development  and                                                                    
functioning and the increase in  teen use. She reported that                                                                    
the FDA  had performed some  product testing but  there were                                                                    
thousands  of  ingredients  that   varied  from  product  to                                                                    
product.  The  testing   had  discovered  that  "ultra-fine"                                                                    
particles were  inhaled deep into  the lungs  like diacetyl,                                                                    
which  was  a flavorant  linked  to  lung disease,  volatile                                                                    
organic  compounds,  and  heavy   metals.  She  argued  that                                                                    
whether  the product  contained nicotine  or not  there were                                                                    
inherent risks  in the use  of the products. The  bill would                                                                    
hold vendors accountable. She felt  that the bill would also                                                                    
assist in  changing the public perception  that the products                                                                    
were safe.                                                                                                                      
4:10:41 PM                                                                                                                    
PAMELA  HOWARD,  KENAI  PENINSULA BOROUGH  SCHOOL  DISTRICT,                                                                    
SOLDOTNA (via  teleconference), spoke  in support of  SB 15.                                                                    
She had  been a school  nurse for  over 30 years  and taught                                                                    
students about  the harmful effects of  vaping. She reported                                                                    
that  in her  school district  principles saw  a significant                                                                    
increase  in  students  use of  vaping  products.  The  bill                                                                    
addressed students  carrying devices. She believed  that the                                                                    
students  carrying  the devices  showed  intent  to use  the                                                                    
devise  and possession  should be  prohibited.  She had  not                                                                    
seen  vitamin   e-cigarette  products.  She  spoke   of  the                                                                    
importance  of educating  students  on the  health risks  of                                                                    
using the products.                                                                                                             
4:13:37 PM                                                                                                                    
KATIE STEFFENS, SELF,  ANCHORAGE (via teleconference), spoke                                                                    
in support  of the  bill. She  related that  e-cigarette use                                                                    
contributed to  harmful brain  development and  addiction in                                                                    
youth. She  spoke about the  other aerosol  ingredients that                                                                    
were smaller  in particulate composition and  the associated                                                                    
risks of inhaling those particulates.  She reported that the                                                                    
Philip Morris  tobacco company was  promoting a  "smoke free                                                                    
future" by  supporting the  use of  vape products.  She felt                                                                    
that  vaping would  become a  future trend  making the  bill                                                                    
timelier. She urged for passage of the bill.                                                                                    
4:15:32 PM                                                                                                                    
JOSHUA SILAS, SELF, SOLDOTNA  (via teleconference), spoke in                                                                    
opposition SB  15. He  worked at Mapes  Vapes vape  shop. He                                                                    
agreed that the  bill was redundant and was a  waste of time                                                                    
and state  government resources.  He purported that  the FDA                                                                    
had  addressed regulating  vaping products  and carried  out                                                                    
enforcement.  Alaskan vape  shops  were  compliant with  the                                                                    
federal regulations.  His shop  was committed to  offering a                                                                    
healthy alternative  to smoking  and helped 554  adults quit                                                                    
smoking in the last 26 months.  He wondered what the cost of                                                                    
enforcement was  to the state.  He believed that  "there was                                                                    
no reason" to move forward with the bill.                                                                                       
4:18:16 PM                                                                                                                    
Co-Chair Foster CLOSED public testimony on SB 15.                                                                               
4:18:49 PM                                                                                                                    
Co-Chair  Foster asked  whether  Mr. Darnell  had heard  the                                                                    
testimony of  Mr. McDonald regarding  the redundancy  of the                                                                    
Alaska law and if he had any comments.                                                                                          
Mr. Darnell reported that he  heard criticism that the state                                                                    
did  the  requirement check  study  but  did not  carry  out                                                                    
enforcement. He noted that the  state did not currently have                                                                    
enforcement  authority.  He  reported  that  the  study  was                                                                    
performed  as a  baseline  to determine  what was  necessary                                                                    
when enforcement  became law.  He declared  that he  did not                                                                    
know of  any FDA compliance  checks that had  been conducted                                                                    
in vape shops.  He had only heard of them  being carried out                                                                    
in convenience  stores. He  informed committee  members that                                                                    
the  fiscal note  would be  zero and  the compliance  checks                                                                    
could be done without any  additional costs to the state. He                                                                    
had had  numerous complaints from parents  about where their                                                                    
children had been  able to obtain vape products.  He knew of                                                                    
vape shops that operated  legally but others knowingly broke                                                                    
the law.  He relayed  anecdotal evidence  that when  he went                                                                    
into a  tobacco only shop  that was  not smoke free  and was                                                                    
subjected to tobacco smoke he  had some nasal discomfort and                                                                    
his clothes  smelled but when he  went into a vape  shop for                                                                    
15 or 20  minutes and people were vaping it  left him with a                                                                    
burning sensation in his chest.                                                                                                 
Co-Chair  Foster  indicated  that  amendments  were  due  by                                                                    
tomorrow at 5:00 pm.                                                                                                            
SB  15  was   HEARD  and  HELD  in   committee  for  further                                                                    
Co-Chair  Foster indicated  that SB  155 would  be moved  to                                                                    
tomorrow morning's meeting at 9:00 am.                                                                                          

Document Name Date/Time Subjects
SB37 Supporting Document Partnership for SAFEMEDICINES 2018.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB 37 (FIN) vsn N Sponsor Statement 2-8-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Supporting Document Title II Drug Quality and Security Act of 2013.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Supporting Document - Why License Board of Pharmacy.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB37(FIN) Sectional Overview 2-8-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB37(FIN) Summary of Changes 2-15-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Support Bd of Pharmacy 3-5-17.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
CSSB37 (FIN) Fact Sheet - Review 2-15-18.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
SB37 Support AKPhA 3-3-17.pdf HFIN 4/12/2018 1:30:00 PM
SB 37
002_SB015_E-Cigs_SponsorStatement.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
008_SB015_E-Cigs Poison the Airways.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
009_SB015_E-Cigs_AAAS_AsDangerousAsTobacco.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
013_SB015_E-Cigs_EXCERPTed_Surgeon General Report_E-Cigs Use Among Youth 2016.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
014_SB015_E-Cigs_UnivPittsburgh_E-Cigarettes Promote Smoking.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
015_SB015_E-Cigs_NationalAcademiesScience_EffectsOfE-Cigs.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
016_SB015_E-Cig Sales to AK Youth 2016.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB 155 State AMC Bond Requirements.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
017_SB015_E-Cig Sales to AK Youth 2017.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB 155 Letter of Support Wells Fargo 1.29.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 Letter of Support REVAA 1.30.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 Letter of Support Alaska Chamber 2.8.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
018_SB015_E-Cigs_AK Survey_Results_06April2017.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
019_SB015_E-Cigs_ABC_News_SameToxicChemsAsTobacco.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB015_E-Cigs_Explanation of Changes From Version T to I.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB015_E-Cigs_Sectional_VersionI_02April2018.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB015_E-Cigs_Support Letter_ALPHA.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
HCS CSSB 155(L&C) Explanation of Changes V.A to V.N.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 Letter of Support Alaska Bankers Association 2.1.18.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
HCS CSSB 155(L&C) Sectional Summary.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 DCCED AMC Extension Request.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 AMC Registry Fees - Lexology Article.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB 155 AMC Framework - Lexology Article.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
HCS CSSB 155(L&C) Sponsor Statement.pdf HFIN 4/12/2018 1:30:00 PM
SB 155
SB015_E-Cigs_YouthAccess_SupportLetter_MatSuHealthFoundation.pdf HFIN 4/12/2018 1:30:00 PM
SB 15
SB 105 HB 353 DHSS letter for HFIN 041318.pdf HFIN 4/12/2018 1:30:00 PM
HB 353
SB 105