Legislature(2019 - 2020)BELTZ 105 (TSBldg)
03/10/2020 01:30 PM LABOR & COMMERCE
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SB 182-AGE FOR NICOTINE/E-CIG; TAX E-CIG. 1:48:54 PM CHAIR BISHOP announced the consideration of SENATE BILL NO. 182, "An Act raising the minimum age to purchase, sell, exchange, or possess tobacco, a product containing nicotine, or an electronic smoking product; relating to the taxation of electronic smoking products; and providing for an effective date." 1:48:58 PM SENATOR STEVENS moved to adopt the proposed committee substitute (CS) for SB 182, work order 31-LS1478\S, as the working document. CHAIR BISHOP objected for an explanation of the changes. 1:49:15 PM TIM LAMKIN, Staff, Senator Gary Stevens, Alaska State Legislature, Juneau, Alaska, explained the changes in the committee substitute for SB 182, Version S. He said the bill will conform Alaska statutes to federal law. Last December, Congress passed the law requiring anyone who buys, sells, or possesses tobacco products to be at least 21 years of age. He explained that the products affected by the federal law are categorized as: cigarettes, other tobacco products, products containing nicotine, and electronic smoking products (CONE) products. Many states have a robust system to monitor and enforce compliance with standard brick and mortar storefronts, but there is not a system to enforce internet-based vendors selling CONE products. Version S will reflect restrictions for online sales. He said substantial evidence shows that minors currently acquire these products from vendors who skirt Alaska's existing laws for storefront retailers. Under the federal Tobacco Control Act, the federal Food and Drug Administration (FDA) has the authority to take these actions. However, no actions have been taken against online sales. In that absence, states are beginning to change their laws. Version S incorporates what several other states have done to address online sales. First, it will repeal existing exemptions for individuals who are incarcerated. Second, the online CONE venders must be licensed with the state. Third, an age verification must be made at the point of purchase. Fourth, packages must be clearly labeled as containing CONE products, and finally, an age verification must be made at the point of delivery. He related his understanding that the bill will be silent on taxes and allow the Senate Finance Committee to address that aspect. 1:52:30 PM MR. LAMKIN reviewed the sectional analysis of SB 182, Version S: Title: Adds relating to transportation of tobacco, products containing nicotine and electronic smoking products. Sec. 3: (Page 2 lines 26-27) AS 11.76.105(a,) relating to minor possession of tobacco or E-Cig products, repeals an exemption for those in jail. Sec. 9: (Page 5, lines 24-26) AS 43.50.105(b), Relating to transporting cigarettes into the state a wholesaler or distributor must use an age verification service to confirm the age of an online purchaser. Sec. 10: (Page 6, Lines 6-7) AS 43.50.105(c), relating to common carriers (FedEx, UPS, USPS etc) shipping cigarettes into the state, requires the carrier to verify the age of the recipient before completing delivery. Sec. 15: (Page 7, Lines 14-31, continued through Page 8-9) AS 43.30.325, is a new section, relating to transportation of tobacco products, products containing nicotine, and E-Cig products into Alaska, establishes identical shipping restrictions as those placed on cigarettes; licensing and age verification. Sec. 27: (page 15, Line 14) AS.76.100(e), relating to selling or gifting cigarettes or tobacco to a minor, repeals an exemption for those in jail. CHAIR BISHOP noted that the fiscal aspects will be taken up in the Senate Finance Committee. 1:55:36 PM SENATOR STEVENS commented that he appreciated the clarification on taxation. He acknowledged that it is important to be fair to the shops in Alaska. CHAIR BISHOP removed his objection. 1:56:07 PM SENATOR STEVENS moved to report the CS for SB 182, work order 31-LS1478\S from committee with individual recommendations and attached fiscal note(s). CHAIR BISHOP found no objection and CSSB 182(L&C) was reported from the Senate Labor and Commerce Standing Committee.