Legislature(2017 - 2018)BELTZ 105 (TSBldg)

03/02/2017 01:30 PM Senate LABOR & COMMERCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
Heard & Held
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
-- Public Testimony --
Moved CSSB 15(L&C) Out of Committee
Moved SB 29 Out of Committee
         SB  15-E-CIGS: SALE TO AND POSSESSION BY MINOR                                                                     
1:35:13 PM                                                                                                                    
CHAIR COSTELLO  announced the consideration  of SB 15.  She noted                                                               
that there was a new committee substitute (CS).                                                                                 
1:35:57 PM                                                                                                                    
SENATOR HUGHES moved  to adopt the work draft CS  for Senate Bill                                                               
15, labeled 30-LS0170\R, as the working document.                                                                               
1:36:07 PM                                                                                                                    
CHAIR COSTELLO objected for an explanation.                                                                                     
TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State                                                                           
Legislature, sponsor of SB 15, reminded the members that the                                                                    
primary purpose of the is bill is to restrict youth access to e-                                                                
cigarette products.                                                                                                             
He reviewed the changes between version A and version R of SB 15                                                                
speaking to the following summary: [Original punctuation                                                                        
 The  Department of Commerce, Community, & Economic  Development                                                                
 requested  penalties  associated  with violations  of  the  law                                                                
 restricting  youth access to  tobacco and E-Cigarette  products                                                                
 be   increased  to  more  effectively  compel  compliance,   as                                                                
 described below.                                                                                                               
 CSSB  15  (L&C) Version  R, increases  the criminal  and  civil                                                                
 penalties (fines) associated with  violating the law by selling                                                                
 tobacco, products containing nicotine,  or E-Cigarette products                                                                
 to minors, as follows:                                                                                                         
     1.  Under  AS  43.70.075(d),  the  person  holding  the                                                                    
     business license endorsement is fined the following:                                                                       
             1st offense: a civil penalty of $1,000                                                                             
          (increased from $300)                                                                                                 
             2nd offense: a civil penalty of $2,000                                                                             
          (increased from $500)                                                                                                 
             3rd offense: a civil penalty of $4,000                                                                             
          (increased from $1,000)                                                                                               
          After   3    convictions:   suspend   license                                                                         
          indefinitely  (increased from  1 year)  and a                                                                         
          civil  penalty  of  $10,000  (increased  from                                                                         
     The  only  other substantive  change  in  Version R  is                                                                    
     regarding the  required product 'warning'  signage. The                                                                    
     verbiage  is  consolidated   to  include  reference  to                                                                    
     tobacco  products,  products  containing  nicotine,  or                                                                    
     "electronic  smoking  products,"  as being  illegal  to                                                                    
     sell to persons under the  age of 19. The dimensions of                                                                    
     the signage  were reduced  to 8.5" x  11" to  allow for                                                                    
     more  efficient means  for DCED  to  e-mail signage  to                                                                    
     vendors, and for  vendors to print and  post signage on                                                                    
     their own.  This change will reduce  the current fiscal                                                                    
     note considerably.                                                                                                         
1:39:30 PM                                                                                                                    
SENATOR  HUGHES  asked  what "indefinite  suspension  of  license                                                               
after three convictions" means in practice.                                                                                     
MR.  LAMKIN  suggested  the  department speak  to  that,  but  he                                                               
believes  there  would  be  no   good-faith  remedy  after  three                                                               
1:40:34 PM                                                                                                                    
ANGELA  BIRT,  Chief   Investigator,  Division  of  Corporations,                                                               
Business,  and Professional  Licensing,  Department of  Commerce,                                                               
Community  and Economic  Development  (DCCED),  explained that  a                                                               
business or person could resume  selling tobacco products if both                                                               
DCCED  and the  Department  of Health  and  Social Services  were                                                               
satisfied  that  appropriate  training and  constraints  were  in                                                               
place  to prevent  the sale  of tobacco  or nicotine  products to                                                               
CHAIR COSTELLO  asked the department  to put that in  writing, so                                                               
it could follow the bill through the process.                                                                                   
SENATOR HUGHES commented that three  occurrences over 30 years is                                                               
very different  than three occurrences  over just a few  years so                                                               
it's appropriate to have a path back to good standing.                                                                          
MR.   LAMKIN  pointed   out  that   the  bill   stipulates  three                                                               
occurrences within two years.                                                                                                   
SENATOR GARDNER asked  if the department wanted  the penalties in                                                               
Section 14  to apply to  all tobacco sales and  if the bill  is a                                                               
vehicle for that.                                                                                                               
MR.  LAMKIN said  that is  his understanding  but the  department                                                               
should speak to that directly.                                                                                                  
1:43:22 PM                                                                                                                    
MS. BIRT  confirmed that the  department asked for the  change to                                                               
update the  fine structure  and support the  cost of  running the                                                               
SENATOR HUGHES asked if the  bill only requires these products to                                                               
be behind  the counter  and out  of reach, not  out of  a child's                                                               
MR. LAMKIN answered that's correct.                                                                                             
SENATOR HUGHES suggested  that should be addressed  at some point                                                               
in the future. She asked  if the sponsor would consider requiring                                                               
the products  to be  out of sight  rather than  just incidentally                                                               
behind the counter.                                                                                                             
MR. LAMKIN said that has  been brought to the sponsor's attention                                                               
and the idea will be vetted.                                                                                                    
CHAIR  COSTELLO  removed  her  objection  and  found  no  further                                                               
objection; therefore, version R was adopted.                                                                                    
1:48:10 PM                                                                                                                    
SENATOR HUGHES  moved to report the  CS for SB 15  from committee                                                               
with individual recommendations and attached fiscal note(s).                                                                    
CHAIR COSTELLO announced that without  objection, CSSB 15(L&C) is                                                               
reported from the Senate Labor and Commerce Standing Committee.                                                                 

Document Name Date/Time Subjects
2017.03.02 Sen. L&C - SB 15 - Summary of Changes Ver. A to Ver. R.pdf SL&C 3/2/2017 1:30:00 PM
SB 15
DOL&WD Response to Senator's Questions - Budget Charts.pdf SL&C 3/2/2017 1:30:00 PM
DOL&WD Response to Senator's Questions.pdf SL&C 3/2/2017 1:30:00 PM
CSS15 Ver. O.pdf SL&C 3/2/2017 1:30:00 PM
SB 4 Support Documents.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SB 4 Support Letters.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SB 15 ver. R.pdf SL&C 3/2/2017 1:30:00 PM
SB 15
SB 40 - Slide Presentation.pdf SL&C 3/2/2017 1:30:00 PM
SB 40
SB 45 - DCCED Response to Senator's Questions.pdf SL&C 3/2/2017 1:30:00 PM
SB 45
SB 51 Bill Version A.PDF SL&C 3/2/2017 1:30:00 PM
SB 51
SB 51 Fiscal Note - DCCED.pdf SL&C 3/2/2017 1:30:00 PM
SB 51
SB 51 Sponsor Statement.PDF SL&C 3/2/2017 1:30:00 PM
SB 51
SB 51 Supporting Documents-Legislative Audit.PDF SL&C 3/2/2017 1:30:00 PM
SB 51
SSSB 4 Fiscal Note - DCCED.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB 4 Fiscal Note - DEC.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB4 Sectional Analysis.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB4 Sponsor Statement.pdf SL&C 3/2/2017 1:30:00 PM
SB 4
SSSB4 Ver. J.PDF SL&C 3/2/2017 1:30:00 PM
SB 4