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Alaska State Legislature· SB 24VETOED BY GOVERNOR

TOBACCO/NICOTINE/E-CIG AGE; E-CIG TAX, the official text

Shown verbatim: the complete text as captured from the official page posted by the Alaska State Legislature, fetched 2026-08-28. Where this bill amends existing law, language marked for deletion in the official page appears here in brackets. This is the enrolled version. The official bill page.
Enrolled SB 24 
 Relating to tobacco, tobacco products, electronic smoking products, nicotine, and products 
 containing nicotine; raising the minimum age to purchase, exchange, or possess tobacco, a 
 product containing nicotine, or an electronic smoking product; relating to the tobacco use 
 education and cessation fund; relating to retail cigar stores; relating to the taxation of 
 electronic smoking products and vapor products; and providing for an effective date. 
 _______________ 
 * Section 1. AS 11.76.100(a) is amended to read: 
 (a) A person commits the offense of selling or giving tobacco to a person 
 under 21 years of age [MINOR] if the person 
 (1) negligently sells a cigarette, a cigar, tobacco, or a product 
 containing tobacco to a person under 21 [19] years of age; 
 (2) is 21 [19] years of age or older and negligently exchanges or gives

a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 
 years of age; 
 (3) maintains a vending machine that dispenses cigarettes, cigars, 
 tobacco, or products containing tobacco; or 
 (4) holds a business license endorsement under AS 43.70.075 and 
 allows a person under 19 years of age to sell a cigarette, a cigar, tobacco, or a product 
 containing tobacco. 
 * Sec. 2. AS 11.76.100(b) is amended to read: 
 (b) Notwithstanding the provisions of (a) of this section, a person who 
 maintains a vending machine is not in violation of (a)(3) of this section if the vending 
 machine is located 
 (1) on premises licensed as a beverage dispensary under AS 04.09.200 
 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 
 under AS 04.09.230 and 
 (A) as far as practicable from the primary entrance; and 
 (B) in a place that is directly and continually supervised by a 
 person employed on the licensed premises during the hours the vending 
 machine is accessible to the public; or 
 (2) in an employee break room or other controlled area of a private 
 work place that is not generally considered a public place and the room or area 
 contains a posted warning sign at least 11 inches by 14 inches indicating that 
 possession of tobacco by a person under 21 [19] years of age is prohibited under 
 AS 11.76.105. 
 * Sec. 3. AS 11.76.105 is amended to read: 
 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 
 products containing nicotine by a person under 21 years of age [MINOR]. (a) 
 Except as provided in (e) of this section, a [A] person under 21 [19] years of age 
 may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 
 an electronic smoking product, or a product containing nicotine in this state. [THIS 
 SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 
 ADULT CORRECTIONAL FACILITY.]

(b) In a prosecution under (a) of this section for possession of an electronic 
 smoking product or a product containing nicotine, it is an affirmative defense that the 
 electronic smoking product or product containing nicotine possessed by the person 
 under 21 [19] years of age was intended or expected to be consumed without being 
 combusted, and the electronic smoking product or product containing nicotine 
 (1) has been approved by the United States Food and Drug 
 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 
 or for other medical purposes; 
 (2) was being marketed and sold for the approved purposes; and 
 (3) was 
 (A) prescribed by a health care professional; 
 (B) given to the person by the person's parent or guardian; 
 (C) provided by a state-approved tobacco cessation program 
 administered by the Department of Health; or 
 (D) provided by a pharmacist to a person 18 years of age or 
 older without a prescription. 
 (c) Possession of tobacco, an electronic smoking product, or a product 
 containing nicotine by a person under 21 years of age [MINOR] is a violation 
 punishable by a fine of not more than $100. Notwithstanding AS 12.55.035(b), in 
 place of any fine imposed for the violation of this section, the court may refer a 
 defendant, at the request of the defendant, to a tobacco education program. 
 * Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 
 (d) The supreme court shall establish by rule or order a schedule of bail 
 amounts that may be forfeited without court appearance for a violation of this section. 
 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 
 of age who is employed by a person with a business license endorsement under 
 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 
 product containing tobacco, an electronic smoking product, or a product containing 
 nicotine. 
 * Sec. 5. AS 11.76.106(b) is amended to read: 
 (b) Subsection (a) does not apply if the sale

(1) is by vending machine as provided under AS 11.76.100(b) or 
 11.76.109(d); 
 (2) is a wholesale transaction, the person is licensed as a manufacturer 
 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 
 transactions occur; 
 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 
 products containing tobacco, electronic smoking products, or products containing 
 nicotine and who restricts access to the premises to only those individuals who are 21 
 [19] years of age or older; or 
 (4) is of electronic smoking products over the Internet to a person 21 
 [19] years of age or older. 
 * Sec. 6. AS 11.76.109(a) is amended to read: 
 (a) A person commits the offense of selling or giving an electronic smoking 
 product or a product containing nicotine to a person under 21 years of age [MINOR] 
 if the person 
 (1) negligently sells an electronic smoking product or a product 
 containing nicotine to a person under 21 [19] years of age; 
 (2) is 21 [19] years of age or older and negligently exchanges or gives 
 an electronic smoking product or a product containing nicotine to a person under 21 
 [19] years of age; 
 (3) maintains a vending machine that dispenses electronic smoking 
 products or products containing nicotine; or 
 (4) holds a business license endorsement under AS 43.70.075 and 
 allows a person under 19 years of age to sell an electronic smoking product or a 
 product containing nicotine. 
 * Sec. 7. AS 11.76.109(b) is amended to read: 
 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 
 gift to a person under 21 [19] years of age of an electronic smoking product or a 
 product containing nicotine that is intended or expected to be consumed without being 
 combusted if the electronic smoking product or product containing nicotine 
 (1) has been approved by the United States Food and Drug

Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 
 or for other medical purposes; 
 (2) is being marketed and sold solely for the approved purposes; and 
 (3) is 
 (A) prescribed by a health care professional; 
 (B) given to a person by the person's parent or legal guardian; 
 (C) provided by a state-approved tobacco cessation program 
 administered by the Department of Health; or 
 (D) provided by a pharmacist to a person 18 years of age or 
 older without a prescription. 
 * Sec. 8. AS 11.76.109(d) is amended to read: 
 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 
 machine is not in violation of (a)(3) of this section if the vending machine is located 
 (1) on premises licensed as a beverage dispensary under AS 04.09.200 
 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 
 under AS 04.09.230, and is located 
 (A) as far as practicable from the primary entrance; and 
 (B) in a place that is directly and continually supervised by a 
 person employed on the licensed premises during the hours the vending 
 machine is accessible to the public; or 
 (2) in an employee break room or other controlled area of a private 
 work place that is not generally considered a public place and the room or area 
 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 
 possession of electronic smoking products or products containing nicotine by a person 
 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 
 [THIS SECTION]. 
 * Sec. 9. AS 11.76.109(g) is amended to read: 
 (g) Selling or giving an electronic smoking product or a product containing 
 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 
 conviction, is punishable by a fine of not less than $300. 
 * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read:

(71) "nicotine" includes a chemical or chemical compound intended, 
 when introduced into the human body, to mimic or simulate the effect of nicotine from 
 tobacco. 
 * Sec. 11. AS 18.35.301(i) is amended by adding a new paragraph to read: 
 (5) "retail cigar store" means a store that 
 (A) derives at least 60 percent of its gross revenue in a calendar 
 year from the on-site sale of cigars and rentals of on-site humidors; 
 (B) does not allow cigarettes or cigarette tobacco on the 
 premises; and 
 (C) contains a walk-in or stand-up humidor as a built-in feature 
 on the premises. 
 * Sec. 12. AS 18.35.301 is amended by adding a new subsection to read: 
 (j) Notwithstanding (a) and (b) of this section, unless the owner or operator 
 prohibits it, an individual may smoke at a retail cigar store that 
 (1) that is in a building that 
 (A) is freestanding; or 
 (B) if it is attached to another business or building, 
 (i) has a separate entrance; 
 (ii) is separated from the other business or building in a 
 manner that does not allow cigar aerosols to travel into the other 
 business or building; and 
 (iii) the other business or building does not serve as a 
 residence, child care facility, facility providing care for adults on a fee- 
 for-service basis, school, or health care facility; 
 (2) where smoking is limited to the smoking of cigars; 
 (3) that is not 
 (A) a business that is licensed under AS 05.15 to sell pull-tabs; 
 or 
 (B) a retail store that is within an indoor public place or 
 workplace. 
 * Sec. 13. AS 29.35.085(c) is amended to read:

(c) The community work provisions of AS 47.12.030(b)(5) 
 [AS 47.12.030(b)(6)] apply to punishment for a minor's conviction of a violation of a 
 curfew ordinance for which a penalty is provided under AS 29.25.070(a). 
 * Sec. 14. AS 37.05.580(a) is amended to read: 
 (a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 
 GENERAL FUND THE] tobacco use education and cessation fund is established as a 
 separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 
 DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 
 the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 
 CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 
 use education and cessation fund is to provide a source to finance the comprehensive 
 smoking education, tobacco use prevention, and tobacco control program authorized 
 by AS 44.29.020(a)(12). 
 * Sec. 15. AS 43.50.070 is amended to read: 
 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 
 (a) The department may suspend, revoke, or refuse to renew a license issued under this 
 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 
 11.76.109, or a violation of this chapter or a regulation of the department adopted 
 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 
 was issued; or (3) if a licensee negligently sells tobacco or products containing 
 tobacco to a person who is required to, but does not, hold a license endorsement under 
 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 
 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 
 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 
 products, or electronic smoking products to be sold, during the period of the 
 suspension or revocation on the premises occupied or controlled by that person. A 
 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 
 surrender, renewal, or extension of a license issued under this chapter. The department 
 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 
 that a hearing officer of the department, rather than a hearing officer assigned under 
 AS 44.62.350, may conduct hearings.

(b) In this section, "licensee" means a person licensed under AS 43.50.010 - 
 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 
 * Sec. 16. AS 43.50.105(b) is amended to read: 
 (b) A person who is licensed under this chapter may not ship or cause to be 
 shipped cigarettes to a person in this state unless the person receiving the cigarettes 
 (1) is licensed under this chapter; 
 (2) holds a business license endorsement under AS 43.70.075; 
 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 
 1311 or 19 U.S.C. 1555; 
 (4) is an instrumentality of the federal government or an Indian tribal 
 organization authorized by law to possess cigarettes not taxed under this chapter; or 
 (5) is an individual 21 [19] years of age or older and the individual's 
 age was verified at the time of purchase by a third-party verification service, the 
 individual is receiving the cigarettes for personal consumption, and the tax imposed 
 on the cigarettes under this chapter has been paid. 
 * Sec. 17. AS 43.50.105(c) is amended to read: 
 (c) A common or contract carrier may not knowingly transport cigarettes to a 
 person in this state unless the person 
 (1) shipping the cigarettes is licensed under this chapter and, before 
 shipment, provides the common or contract carrier with a copy of the person's current 
 license issued by the department and 
 (A) an affidavit from the intended recipient certifying that the 
 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 
 (5)] of this section; or 
 (B) the common or contract carrier verifies the age of the 
 recipient as 21 years of age or older before delivery; or 
 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 
 this section or is licensed under this chapter and, before receipt, provides the common 
 or contract carrier with a copy of the person's current license issued by the department. 
 * Sec. 18. AS 43.50.150(c) is amended to read: 
 (c) The department may enter into an agreement with a municipality that

imposes a tax on cigarettes, [OR OTHER] tobacco products, synthetic nicotine 
 products, nicotine substitutes, or electronic smoking products for the purpose of 
 jointly auditing a person liable for a tax under AS 43.50.010 - 43.50.390 or 43.50.850 
 - 43.50.900 and the municipal tax on cigarettes, [OR OTHER] tobacco products, 
 synthetic nicotine products, nicotine substitutes, or electronic smoking products. 
 * Sec. 19. AS 43.50.190(d) is amended to read: 
 (d) A portion of the annual proceeds of the tax levied under (a) of this section 
 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 
 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 
 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 
 UNDER AS 37.05.580(a).] 
 * Sec. 20. AS 43.50.300 is amended to read: 
 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products, 
 synthetic nicotine products, and nicotine substitutes in the state at the rate of 75 
 percent of the wholesale price of the tobacco products. The tax is levied when a person 
 (1) brings, or causes to be brought, a tobacco product, synthetic 
 nicotine product, or nicotine substitute into the state from outside the state for sale; 
 (2) makes, manufactures, or fabricates a tobacco product, synthetic 
 nicotine product, or nicotine substitute in the state for sale in the state; or 
 (3) ships or transports a tobacco product, synthetic nicotine product, 
 or nicotine substitute to a retailer in the state for sale by the retailer. 
 * Sec. 21. AS 43.50.320(a) is amended to read: 
 (a) Except as provided in (g) of this section, a person must be licensed by the 
 department if the person engages in business as a distributor for a tobacco product, 
 synthetic nicotine product, or nicotine substitute that is subject to the tax. 
 * Sec. 22. AS 43.50 is amended by adding a new section to read: 
 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products, 
 synthetic nicotine products, and nicotine substitutes. (a) A person who is not 
 licensed under this chapter may not ship or cause to be shipped a tobacco product, 
 synthetic nicotine product, or nicotine substitute to a person in this state unless the 
 person receiving the tobacco product, synthetic nicotine product, or nicotine substitute

is 
 (1) licensed under this chapter; 
 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 
 or 19 U.S.C. 1555; 
 (3) an instrumentality of the federal government or an Indian tribal 
 organization authorized by law to possess tobacco products not taxed under this 
 chapter; or 
 (4) an individual purchasing a cigar or pipe tobacco for personal 
 consumption who is 21 years of age or older and whose age was verified at the time of 
 purchase though a third-party verification service. 
 (b) A person who is licensed under this chapter may not ship or cause to be 
 shipped a tobacco product, synthetic nicotine product, or nicotine substitute to a 
 person in this state unless the person receiving the tobacco product, synthetic nicotine 
 product, or nicotine substitute 
 (1) is licensed under this chapter; 
 (2) holds a business license endorsement under AS 43.70.075; 
 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 
 1311 or 19 U.S.C. 1555; 
 (4) is an instrumentality of the federal government or an Indian tribal 
 organization authorized by law to possess tobacco products, synthetic nicotine 
 products, or nicotine substitutes not taxed under this chapter; or 
 (5) is an individual 21 years of age or older and the individual's age 
 was verified at the time of purchase though a third-party verification service, the 
 individual is receiving the tobacco product, synthetic nicotine product, or nicotine 
 substitute for personal consumption, and the tax imposed on the tobacco product, 
 synthetic nicotine product, or nicotine substitute under this chapter has been paid. 
 (c) A common or contract carrier may not knowingly transport a tobacco 
 product, synthetic nicotine product, or nicotine substitute to a person in this state 
 unless 
 (1) the common or contract carrier verifies the age of the recipient as 
 21 years of age or older before delivery; or

(2) the person receiving the tobacco product, synthetic nicotine 
 product, or nicotine substitute is a person described under (a)(2), (3), or (4) of this 
 section or is licensed under this chapter and, before receipt, provides the common or 
 contract carrier with a copy of the person's current license issued by the department. 
 (d) If a tobacco product, synthetic nicotine product, or nicotine substitute is 
 transported by a common or contract carrier to a home or residence, it is rebuttably 
 presumed that the common or contract carrier knew that the recipient of the tobacco 
 product, synthetic nicotine product, or nicotine substitute was not a person described 
 under (b)(1) - (5) of this section, unless the common or contract carrier has satisfied 
 the requirement in (c)(1) of this section. 
 (e) A person, other than a common or contract carrier, may not knowingly 
 transport a tobacco product, synthetic nicotine product, or nicotine substitute to a 
 person in this state, unless the recipient of the tobacco product, synthetic nicotine 
 product, or nicotine substitute is a person described under (a)(4) or (b)(1) - (5) of this 
 section. 
 (f) A person who ships or causes to be shipped a tobacco product, synthetic 
 nicotine product, or nicotine substitute to a person in this state shall plainly and visibly 
 mark the container or wrapping with the words "product containing nicotine" if the 
 tobacco product, synthetic nicotine product, or nicotine substitute is shipped in a 
 container or wrapping other than the manufacturer's original container or wrapping of 
 the tobacco product, synthetic nicotine product, or nicotine substitute. 
 (g) A person who violates the provisions of this section is guilty of a class A 
 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 
 tobacco product, synthetic nicotine product, or nicotine substitute. 
 (h) In addition to the criminal penalty under (g) of this section, the department 
 may assess a civil penalty of not more than $5,000 for each violation of this section. 
 (i) A person who violates the provisions of this section is jointly and severally 
 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 
 permitted by the Constitution of the United States, a person who violates the 
 provisions of this section is required to collect the taxes and pay them to the 
 department.

* Sec. 23. AS 43.50.390(1) is amended to read: 
 (1) "distributor" means a person who 
 (A) brings, or causes to be brought, a tobacco product, 
 synthetic nicotine product, or nicotine substitute into the state from outside 
 the state for sale; 
 (B) makes, manufactures, or fabricates a tobacco product, 
 synthetic nicotine product, or nicotine substitute in the state for sale in the 
 state; or 
 (C) ships or transports a tobacco product, synthetic nicotine 
 product, or nicotine substitute to a retailer in the state for sale by the retailer; 
 * Sec. 24. AS 43.50.390(4) is amended to read: 
 (4) "tobacco product" means 
 (A) a cigar; 
 (B) a cheroot; 
 (C) a stogie; 
 (D) a perique; 
 (E) snuff and snuff flour; 
 (F) smoking tobacco, including granulated, plug-cut, crimp-cut, 
 ready-rubbed, and any form of tobacco suitable for smoking in a pipe or 
 cigarette; 
 (G) chewing tobacco, including cavendish, twist, plug, scrap, 
 and tobacco suitable for chewing; or 
 (H) an article or product made of tobacco, [OR] a tobacco 
 substitute, or synthetic tobacco, but not including a cigarette as defined in 
 AS 43.50.170; 
 * Sec. 25. AS 43.50 is amended by adding new sections to read: 
 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 
 Sec. 43.50.850. Tax levied; collection. (a) A tax is levied on closed electronic 
 smoking products and vapor products in the state. The tax is 25 percent of the retail 
 sales price of a closed electronic smoking product or a vapor product. 
 (b) A licensee located in the state shall collect and remit the tax to the

department. A licensee located outside of the state shall collect and remit the tax to the 
 department if the licensee has more than 200 transactions in the state in the current or 
 preceding calendar year. 
 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 
 (1) a closed electronic smoking product or vapor product 
 (A) sold in a facility operated by one of the uniformed services 
 of the United States; 
 (B) approved for sale by the United States Food and Drug 
 Administration as a drug, drug product, including a drug product used to treat 
 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 
 (Federal Food, Drug, and Cosmetic Act); 
 (C) if the United States Constitution or other federal laws 
 prohibit the levying of the tax on the product by the state; 
 (D) designed, marketed, and sold for the purpose of vaporizing 
 or aerosolizing marijuana, marijuana products, hemp, or hemp products if the 
 marijuana, marijuana products, hemp, or hemp products do not contain 
 nicotine and are intended for sale only in a retail marijuana store; 
 (2) marijuana or marijuana products subject to tax under AS 43.61 if 
 the marijuana or marijuana products do not contain nicotine; or 
 (3) hemp or hemp products if the hemp or hemp products do not 
 contain nicotine. 
 (b) In this section, 
 (1) "hemp" or "hemp product" means hemp or a hemp product 
 produced by an individual registered under AS 03.05.076; 
 (2) "marijuana," "marijuana products," and "retail marijuana store" 
 have the meanings given in AS 17.38.900; 
 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 
 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 
 person must be licensed by the department if the person engages in business as a 
 retailer of an electronic smoking product. 
 (b) The department, upon application and payment of a fee of $50, shall issue

a license for one year to a person who applies for a license under (a) of this section. 
 (c) The department may refuse to issue a license under this section if 
 (1) there is reasonable cause to believe the information submitted in 
 the application is false or misleading and is not made in good faith; 
 (2) the applicant is not in good standing under AS 10.06 (Alaska 
 Corporations Code); or 
 (3) a tax levied under this chapter is due and unpaid by the applicant. 
 (d) A license issued under this section must include the name and address of 
 the licensee, the type of business to be conducted, and the year for which the license is 
 issued. 
 (e) The department may renew a license issued under this section for a fee of 
 $50 if the applicant 
 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 
 and 
 (2) does not have unpaid taxes under this chapter. 
 (f) The department may suspend, revoke, or refuse to renew a license issued 
 under this section as provided in AS 43.50.070. 
 (g) A license required by this section is in addition to any other license 
 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 
 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 
 (h) A license issued under this section is not assignable or transferable, except 
 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 
 if the business of the licensee is transferred to another by operation of law, the 
 department may extend the license for a limited time to the executor, administrator, 
 trustee, receiver, or transferee. 
 (i) A person licensed under this section may not 
 (1) distribute an electronic smoking product designed or packaged so 
 as not to be clearly recognizable as an electronic smoking product; or 
 (2) market an electronic smoking product, including a flavored 
 electronic smoking product, in a manner likely to promote use of the electronic 
 smoking product by a person under 21 years of age.

Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 
 licensee shall file a return with the department. The return must state the number or 
 amount of closed electronic smoking products, vapor products, and other electronic 
 smoking products sold by the licensee during the preceding calendar month, the 
 selling price of the electronic smoking products, and the amount of tax imposed on the 
 closed electronic smoking products and vapor products. 
 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 
 of all electronic smoking products of the licensee, including purchase prices, sales 
 prices, the names and addresses of the sellers, the dates of delivery, the quantities of 
 electronic smoking products, and the trade names and brands. Statements and records 
 required by this section must be in the form prescribed by the department, preserved 
 for three years, and available for inspection upon demand by the department. 
 Sec. 43.50.875. Disposition of proceeds. The annual proceeds of the tax 
 levied under AS 43.50.850 shall be deposited into the tobacco use education and 
 cessation fund established in AS 37.05.580 and may be appropriated from the fund for 
 the purposes listed in AS 44.29.020(a)(12) or for efforts to prevent or detect the use of 
 tobacco or electronic smoking products in a school. 
 Sec. 43.50.880. Restrictions on shipping or transporting electronic 
 smoking products. (a) A person who is not licensed under this chapter may not ship 
 or cause to be shipped an electronic smoking product to a person in this state unless 
 the person receiving the electronic smoking product is 
 (1) licensed under this chapter; 
 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 
 or 19 U.S.C. 1555; or 
 (3) an instrumentality of the federal government or an Indian tribal 
 organization authorized by law to possess electronic smoking products not taxed under 
 this chapter. 
 (b) A person who is licensed under this chapter may not ship or cause to be 
 shipped an electronic smoking product to a person in this state unless the person 
 receiving the electronic smoking product 
 (1) is licensed under this chapter;

(2) holds a business license endorsement under AS 43.70.075; 
 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 
 1311 or 19 U.S.C. 1555; 
 (4) is an instrumentality of the federal government or an Indian tribal 
 organization authorized by law to possess electronic smoking products not taxed under 
 this chapter; or 
 (5) is an individual 21 years of age or older and the individual's age 
 was verified at the time of purchase though a third-party verification service, the 
 individual is receiving the electronic smoking product for personal consumption, and 
 the tax imposed on the electronic smoking product under this chapter has been paid. 
 (c) A common or contract carrier may not knowingly transport an electronic 
 smoking product to a person in this state unless the person 
 (1) shipping the electronic smoking product is licensed under this 
 chapter and, before shipment, provides the common or contract carrier with a copy of 
 the person's current license issued by the department and 
 (A) an affidavit from the intended recipient certifying that the 
 person receiving the electronic smoking product is a person described under 
 (b)(1) - (4) of this section; or 
 (B) the common or contract carrier verifies the age of the 
 recipient as 21 years of age or older before delivery; or 
 (2) receiving the electronic smoking product is a person described 
 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 
 provides the common or contract carrier with a copy of the person's current license 
 issued by the department. 
 (d) If an electronic smoking product is transported by a common or contract 
 carrier to a home or residence, it is rebuttably presumed that the common or contract 
 carrier knew that the recipient of the electronic smoking product was not a person 
 described under (b)(1) - (5) of this section, unless the person shipping the electronic 
 smoking product has satisfied the requirements in (c)(1) of this section. 
 (e) A person, other than a common or contract carrier, may not knowingly 
 transport an electronic smoking product to a person in this state, unless the recipient of

the electronic smoking product is a person described under (b)(1) - (5) of this section. 
 (f) A person who ships or causes to be shipped an electronic smoking product 
 to a person in this state shall plainly and visibly mark the container or wrapping with 
 the words "electronic smoking product" if the electronic smoking product is shipped in 
 a container or wrapping other than the manufacturer's original container or wrapping 
 of the electronic smoking product. 
 (g) A person who violates the provisions of this section is guilty of a class A 
 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 
 electronic smoking product. 
 (h) In addition to the criminal penalty under (g) of this section, the department 
 may assess a civil penalty of not more than $5,000 for each violation of this section. 
 (i) A person who violates the provisions of this section is jointly and severally 
 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 
 Constitution of the United States, a person who violates the provisions of this section 
 is required to collect the taxes and pay them to the department. 
 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 
 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 
 for sale or distribution in this state, or import or cause to be imported into this state for 
 sale or distribution in this state only electronic smoking products 
 (1) for which the component vapor product 
 (A) has a nicotine content of not more than 70 milligrams of 
 nicotine for each milliliter of vapor product; 
 (B) is protected from breakage and leakage; 
 (C) does not contain added vitamins or other additives 
 marketed to create the impression of health benefits; in this subparagraph, 
 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 
 stimulants, and colorants; 
 (2) that are packaged to be child- and tamper-proof; and 
 (3) that are labeled to inform consumers about all vapor product 
 ingredients and nicotine content, including the nicotine concentration in milligrams 
 per milliliter and the total amount of milligrams of nicotine in the product.

Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, 
 (1) "retailer" means a person in the state who is engaged in the 
 business of selling electronic smoking products at retail; 
 (2) "sales price" 
 (A) means the total amount of consideration, including cash, 
 credit, property, and services, for which an electronic smoking product is 
 purchased or sold, valued in money, whether received in money or otherwise, 
 without any deduction for 
 (i) the seller's cost of the electronic smoking product 
 sold; 
 (ii) the cost of materials used, labor or service cost, 
 interest, losses, cost of transportation, taxes, or other expenses of the 
 seller; 
 (iii) charges by the seller for services necessary to 
 complete the sale; 
 (iv) delivery charges; 
 (B) does not include 
 (i) discounts, including cash or coupons that are not 
 reimbursed by a third party, that are allowed by a seller and taken by a 
 purchaser on a sale; 
 (ii) interest, financing, and carrying charges from credit 
 extended on the sale of an electronic smoking product if the amount is 
 separately stated on the invoice, bill of sale, or similar document given 
 to the purchaser; and 
 (iii) taxes legally imposed directly on the consumer that 
 are separately stated on the invoice, bill of sale, or similar document 
 given to the purchaser. 
 Article 9. General Provisions. 
 Sec. 43.50.990. Definitions. In this chapter, 
 (1) "closed electronic smoking product" means a single-use electronic 
 smoking product that includes a pre-filled disposable cartridge of vapor product;

(2) "electronic smoking product" 
 (A) includes 
 (i) a product that can be used to deliver aerosolized or 
 vaporized nicotine to the person inhaling; 
 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 
 or other similar device of any shape; 
 (iii) a component, part, accessory, or device related to 
 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 
 device of any shape; 
 (iv) a vapor product used in a device or product 
 described in (i) or (ii) of this subparagraph; 
 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 
 or other similar device of any shape sold together with a solution, vapor 
 product, or other similar product as a disposable nonrefillable unit; 
 (B) does not include a 
 (i) battery, battery charger, heating element, electronic 
 coil, or mouthpiece intended for use in an electronic smoking product, 
 when sold separately from the electronic smoking product; 
 (ii) cartridge, pod, tank, or similar container intended to 
 transport a vapor product, if sold empty; 
 (3) "nicotine" has the meaning given in AS 11.81.900(b); 
 (4) "vapor product" means a substance intended to be aerosolized or 
 vaporized during the use of an electronic smoking product. 
 * Sec. 26. AS 43.70.075(f) is amended to read: 
 (f) A person who holds a license endorsement issued under this section shall 
 post on the licensed premises a warning sign as described in this subsection. A 
 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 
 must read: "The sale of electronic smoking products or products containing nicotine 
 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 
 person holding an endorsement issued under this section shall display the warning sign 
 in a manner conspicuous to a person purchasing or consuming tobacco products,

electronic smoking products, or products containing nicotine on the licensed premises. 
 The department shall make available the warning signs required under this section to a 
 person who holds an endorsement issued under this section or a person who requests 
 the sign with the intention of displaying it. 
 * Sec. 27. AS 43.70.075(m) is amended to read: 
 (m) The department may initiate suspension of a business license endorsement 
 or the right to obtain a business license endorsement under this section by sending the 
 person subject to the suspension a notice by certified mail, return receipt requested, or 
 by delivering the notice to the person. The notice must contain information that 
 informs the person of the grounds for suspension, the length of any suspension sought, 
 and the person's right to administrative review. A suspension begins 30 days after 
 receipt of notice described in this subsection unless the person delivers a timely 
 written request for a hearing to the department in the manner provided by regulations 
 of the department. If a hearing is requested under this subsection, an administrative 
 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 
 issues by using the preponderance of the evidence test and shall, to the extent they do 
 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 
 manner provided by regulations of the department. A hearing under this subsection is 
 limited to the following questions: 
 (1) was the person holding the business license endorsement, or an 
 agent or employee of the person while acting within the scope of the agency or 
 employment of the person, convicted by plea or judicial finding of violating 
 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 
 (2) if the department does not allege a conviction of AS 11.76.100, 
 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 
 person while acting within the scope of the agency or employment of the person, 
 violate a provision of (a) or (g) of this section; 
 (3) within the 24 months before the date of the department's notice 
 under this subsection, was the person, or an agent or employee of the person while 
 acting within the scope of the agency or employment of the person, convicted of 
 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for

violating a provision of (a) or (g) of this section; 
 (4) did the person holding the business license endorsement establish 
 that the person holding the business license endorsement had adopted and enforced an 
 education, a compliance, and a disciplinary program for agents and employees of the 
 person as provided in (t) of this section; 
 (5) did the person holding the business license endorsement overcome 
 the rebuttable presumption established in (w) of this section; 
 (6) within five years before the date of the violation that is the subject 
 of the hearing, did the department establish that the person holding the business 
 license endorsement 
 (A) previously violated (a) or (g) of this section; 
 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 
 11.76.109 at a location or outlet in a location for which the person holds a 
 business license endorsement, or had an agent or employee previously violate 
 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 
 apply to a prior conviction that served to enhance a suspension period under 
 (d)(2) - (4) of this section; or 
 (C) engaged at a location owned by the person in other conduct 
 that was or is likely to result in the sale of tobacco, electronic smoking 
 products, or products containing nicotine to a person under 21 [19] years of 
 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 
 * Sec. 28. AS 43.70.075(t) is amended to read: 
 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 
 section, the department may reduce the license suspension period under (d) of this 
 section if the person holding the business license endorsement establishes that, before 
 the date of the violation, the person had 
 (1) adopted and enforced a written policy against selling cigarettes, 
 cigars, tobacco, products containing tobacco, electronic smoking products, or products 
 containing nicotine to a person under 21 [19] years of age in violation of 
 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 
 (2) informed the person's agents and employees of the applicable laws

and their requirements and conducted training on complying with the laws and 
 requirements; 
 (3) required each agent and employee of the person to sign a form 
 stating that the agent and employee has been informed of and understands the written 
 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 
 (4) determined that the agents and employees of the person had 
 sufficient experience and ability to comply with the written policy and requirements of 
 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 
 (5) required the agents and employees of the person to verify the age 
 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 
 electronic smoking products, or products containing nicotine by means of a valid 
 government issued photographic identification; 
 (6) established and enforced disciplinary sanctions for noncompliance 
 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 
 and 11.76.109; and 
 (7) monitored the compliance of the agents and employees of the 
 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 
 11.76.107, and 11.76.109. 
 * Sec. 29. AS 43.70.075(w) is amended to read: 
 (w) For purposes of (m)(5) of this section, a conviction for a violation of 
 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 
 person who holds the business license endorsement is rebuttably presumed to 
 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 
 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 
 product containing nicotine to a person under 21 [19] years of age. The person who 
 holds the business license endorsement may overcome the presumption by 
 establishing by clear and convincing evidence that the agent or employee did not 
 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 
 electronic smoking product, or a product containing nicotine to a person under 21 [19] 
 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 
 alleged in the citation issued to the agent or employee. The presentation of evidence

authorized by this subsection does not constitute a collateral attack on the conviction 
 described in this subsection. 
 * Sec. 30. AS 45.50.471(b) is amended by adding a new paragraph to read: 
 (58) marketing an electronic smoking product in a manner likely to 
 promote use of electronic smoking products by a person under 21 years of age; in this 
 paragraph, "electronic smoking product" 
 (A) includes 
 (i) a product that can be used to deliver aerosolized or 
 vaporized nicotine to the person inhaling; 
 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 
 or other similar device of any shape; 
 (iii) a component, part, accessory, or device related to 
 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 
 device of any shape; 
 (iv) a vapor product used in a device or product 
 described in (i) or (ii) of this subparagraph; 
 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 
 or other similar device of any shape sold together with a solution, vapor 
 product, or other similar product as a disposable nonrefillable unit; 
 (B) does not include a 
 (i) battery, battery charger, heating element, electronic 
 coil, or mouthpiece intended for use in an electronic smoking product, 
 when sold separately from the electronic smoking product; 
 (ii) cartridge, pod, tank, or similar container intended to 
 transport a vapor product, if sold empty. 
 * Sec. 31. AS 45.50.471(b)(58), enacted by sec. 30 of this Act, is amended to read: 
 (58) marketing an electronic smoking product in a manner likely to 
 promote use of electronic smoking products by a person under 21 years of age; in this 
 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990 
 [(A) INCLUDES 
 (i) A PRODUCT THAT CAN BE USED TO

DELIVER AEROSOLIZED OR VAPORIZED NICOTINE TO THE 
 PERSON INHALING; 
 (ii) AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 
 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 
 SHAPE; 
 (iii) A COMPONENT, PART, ACCESSORY, OR 
 DEVICE RELATED TO AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 
 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 
 SHAPE; 
 (iv) A VAPOR PRODUCT USED IN A DEVICE OR 
 PRODUCT DESCRIBED IN (i) OR (ii) OF THIS SUBPARAGRAPH; 
 (v) AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 
 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 
 SHAPE SOLD TOGETHER WITH A SOLUTION, VAPOR 
 PRODUCT, OR OTHER SIMILAR PRODUCT AS A DISPOSABLE 
 NONREFILLABLE UNIT; 
 (B) DOES NOT INCLUDE A 
 (i) BATTERY, BATTERY CHARGER, HEATING 
 ELEMENT, ELECTRONIC COIL, OR MOUTHPIECE INTENDED 
 FOR USE IN AN ELECTRONIC SMOKING PRODUCT, WHEN 
 SOLD SEPARATELY FROM THE ELECTRONIC SMOKING 
 PRODUCT; 
 (ii) CARTRIDGE, POD, TANK, OR SIMILAR 
 CONTAINER INTENDED TO TRANSPORT A VAPOR PRODUCT, 
 IF SOLD EMPTY]. 
 * Sec. 32. AS 47.12.030(b) is amended to read: 
 (b) When a minor is accused of violating a statute specified in this subsection, 
 other than a statute the violation of which is a felony, this chapter and the Alaska 
 Delinquency Rules do not apply and the minor accused of the offense shall be 
 charged, prosecuted, and sentenced in the district court in the same manner as an 
 adult; if a minor is charged, prosecuted, and sentenced for an offense under this

subsection, the minor's parent, guardian, or legal custodian shall be present at all 
 proceedings; the provisions of this subsection apply when a minor is accused of 
 violating 
 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 
 a municipality; 
 (2) AS 11.76.105, relating to the possession of tobacco by a person 
 under 21 [19] years of age; 
 (3) a fish and game statute or regulation under AS 16; 
 (4) a parks and recreational facilities statute or regulation under 
 AS 41.21; 
 (5) [REPEALED 
 (6)] a municipal curfew ordinance, whether adopted under 
 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 
 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 
 the violation of a municipal curfew ordinance, the court shall allow a defendant the 
 option of performing community work; the value of the community work, which may 
 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 
 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 
 or work that, on the recommendation of the municipal or borough assembly, city 
 council, or traditional village council of the defendant's place of residence, would 
 benefit persons within the municipality or village who are elderly or disabled; 
 (6) [(7)] AS 04.16.050, relating to consumption, possession, or control 
 of alcohol by a person under 21 years of age. 
 * Sec. 33. AS 11.76.100(e) is repealed. 
 * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 
 read: 
 APPLICABILITY. The following sections apply to offenses committed on or after the 
 effective date of those sections: 
 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 
 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 
 (3) AS 11.76.105, as amended by sec. 3 of this Act;

(4) AS 11.76.105(d) and (e), enacted by sec. 4 of this Act; 
 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 
 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 
 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 
 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 
 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 
 (10) AS 11.81.900(b)(71), enacted by sec. 10 of this Act; 
 (11) AS 43.50.325, enacted by sec. 22 of this Act; 
 (12) AS 43.50.880, enacted by sec. 25 of this Act; and 
 (13) AS 47.12.030(b), as amended by sec. 32 of this Act. 
 * Sec. 35. Sections 15, 18, 25, and 31 of this Act take effect July 1, 2027. 
 * Sec. 36. Except as provided in sec. 35 of this Act, this Act takes effect July 1, 2026.
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