Shown verbatim: the complete text as captured from the official page posted by the Alaska State Legislature, fetched 2026-09-21. 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.
00Enrolled SB 24 01Relating to tobacco, tobacco products, electronic smoking products, nicotine, and products 02 containing nicotine; raising the minimum age to purchase, exchange, or possess tobacco, a 03 product containing nicotine, or an electronic smoking product; relating to the tobacco use 04 education and cessation fund; relating to retail cigar stores; relating to the taxation of 05 electronic smoking products and vapor products; and providing for an effective date. 06 _______________ 07 * Section 1. AS 11.76.100(a) is amended to read: 08 (a) A person commits the offense of selling or giving tobacco to a person 09 under 21 years of age [MINOR] if the person 10 (1) negligently sells a cigarette, a cigar, tobacco, or a product 11 containing tobacco to a person under 21 [19] years of age; 12 (2) is 21 [19] years of age or older and negligently exchanges or gives 01 a cigarette, a cigar, tobacco, or a product containing tobacco to a person under 21 [19] 02 years of age; 03 (3) maintains a vending machine that dispenses cigarettes, cigars, 04 tobacco, or products containing tobacco; or 05 (4) holds a business license endorsement under AS 43.70.075 and 06 allows a person under 19 years of age to sell a cigarette, a cigar, tobacco, or a product 07 containing tobacco. 08 * Sec. 2. AS 11.76.100(b) is amended to read: 09 (b) Notwithstanding the provisions of (a) of this section, a person who 10 maintains a vending machine is not in violation of (a)(3) of this section if the vending 11 machine is located 12 (1) on premises licensed as a beverage dispensary under AS 04.09.200 13 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 14 under AS 04.09.230 and 15 (A) as far as practicable from the primary entrance; and 16 (B) in a place that is directly and continually supervised by a 17 person employed on the licensed premises during the hours the vending 18 machine is accessible to the public; or 19 (2) in an employee break room or other controlled area of a private 20 work place that is not generally considered a public place and the room or area 21 contains a posted warning sign at least 11 inches by 14 inches indicating that 22 possession of tobacco by a person under 21 [19] years of age is prohibited under 23 AS 11.76.105. 24 * Sec. 3. AS 11.76.105 is amended to read: 25 Sec. 11.76.105. Possession of tobacco, electronic smoking products, or 26 products containing nicotine by a person under 21 years of age [MINOR]. (a) 27 Except as provided in (e) of this section, a [A] person under 21 [19] years of age 28 may not knowingly possess a cigarette, a cigar, tobacco, a product containing tobacco, 29 an electronic smoking product, or a product containing nicotine in this state. [THIS 30 SUBSECTION DOES NOT APPLY TO A PERSON WHO IS A PRISONER AT AN 31 ADULT CORRECTIONAL FACILITY.] 01(b) In a prosecution under (a) of this section for possession of an electronic 02 smoking product or a product containing nicotine, it is an affirmative defense that the 03 electronic smoking product or product containing nicotine possessed by the person 04 under 21 [19] years of age was intended or expected to be consumed without being 05 combusted, and the electronic smoking product or product containing nicotine 06 (1) has been approved by the United States Food and Drug 07 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 08 or for other medical purposes; 09 (2) was being marketed and sold for the approved purposes; and 10 (3) was 11 (A) prescribed by a health care professional; 12 (B) given to the person by the person's parent or guardian; 13 (C) provided by a state-approved tobacco cessation program 14 administered by the Department of Health; or 15 (D) provided by a pharmacist to a person 18 years of age or 16 older without a prescription. 17 (c) Possession of tobacco, an electronic smoking product, or a product 18 containing nicotine by a person under 21 years of age [MINOR] is a violation 19 punishable by a fine of not more than $100. Notwithstanding AS 12.55.035(b), in 20 place of any fine imposed for the violation of this section, the court may refer a 21 defendant, at the request of the defendant, to a tobacco education program. 22 * Sec. 4. AS 11.76.105 is amended by adding new subsections to read: 23 (d) The supreme court shall establish by rule or order a schedule of bail 24 amounts that may be forfeited without court appearance for a violation of this section. 25 (e) The provisions of (a) of this section do not apply to a person 19 or 20 years 26 of age who is employed by a person with a business license endorsement under 27 AS 43.70.075 and, as part of that employment, is selling a cigarette, a cigar, tobacco, a 28 product containing tobacco, an electronic smoking product, or a product containing 29 nicotine. 30 * Sec. 5. AS 11.76.106(b) is amended to read: 31 (b) Subsection (a) does not apply if the sale 01 (1) is by vending machine as provided under AS 11.76.100(b) or 02 11.76.109(d); 03 (2) is a wholesale transaction, the person is licensed as a manufacturer 04 or distributor under AS 43.50.010, and the sale occurs on premises where no retail 05 transactions occur; 06 (3) is by a retailer who sells primarily cigarettes, cigars, tobacco, 07 products containing tobacco, electronic smoking products, or products containing 08 nicotine and who restricts access to the premises to only those individuals who are 21 09 [19] years of age or older; or 10 (4) is of electronic smoking products over the Internet to a person 21 11 [19] years of age or older. 12 * Sec. 6. AS 11.76.109(a) is amended to read: 13 (a) A person commits the offense of selling or giving an electronic smoking 14 product or a product containing nicotine to a person under 21 years of age [MINOR] 15 if the person 16 (1) negligently sells an electronic smoking product or a product 17 containing nicotine to a person under 21 [19] years of age; 18 (2) is 21 [19] years of age or older and negligently exchanges or gives 19 an electronic smoking product or a product containing nicotine to a person under 21 20 [19] years of age; 21 (3) maintains a vending machine that dispenses electronic smoking 22 products or products containing nicotine; or 23 (4) holds a business license endorsement under AS 43.70.075 and 24 allows a person under 19 years of age to sell an electronic smoking product or a 25 product containing nicotine. 26 * Sec. 7. AS 11.76.109(b) is amended to read: 27 (b) The provisions of (a) of this section do not apply to the sale, exchange, or 28 gift to a person under 21 [19] years of age of an electronic smoking product or a 29 product containing nicotine that is intended or expected to be consumed without being 30 combusted if the electronic smoking product or product containing nicotine 31 (1) has been approved by the United States Food and Drug 01 Administration for sale as a tobacco use cessation [OR HARM REDUCTION] product 02 or for other medical purposes; 03 (2) is being marketed and sold solely for the approved purposes; and 04 (3) is 05 (A) prescribed by a health care professional; 06 (B) given to a person by the person's parent or legal guardian; 07 (C) provided by a state-approved tobacco cessation program 08 administered by the Department of Health; or 09 (D) provided by a pharmacist to a person 18 years of age or 10 older without a prescription. 11 * Sec. 8. AS 11.76.109(d) is amended to read: 12 (d) Notwithstanding (a)(3) of this section, a person who maintains a vending 13 machine is not in violation of (a)(3) of this section if the vending machine is located 14 (1) on premises licensed as a beverage dispensary under AS 04.09.200 15 or 04.09.350, licensed as a club under AS 04.09.220, or licensed as a package store 16 under AS 04.09.230, and is located 17 (A) as far as practicable from the primary entrance; and 18 (B) in a place that is directly and continually supervised by a 19 person employed on the licensed premises during the hours the vending 20 machine is accessible to the public; or 21 (2) in an employee break room or other controlled area of a private 22 work place that is not generally considered a public place and the room or area 23 contains a posted warning sign at least 11 inches by 8.5 inches indicating that 24 possession of electronic smoking products or products containing nicotine by a person 25 under 21 [19] years of age without a prescription is prohibited under AS 11.76.105 26 [THIS SECTION]. 27 * Sec. 9. AS 11.76.109(g) is amended to read: 28 (g) Selling or giving an electronic smoking product or a product containing 29 nicotine to a person under 21 years of age [MINOR] is a violation and, upon 30 conviction, is punishable by a fine of not less than $300. 31 * Sec. 10. AS 11.81.900(b) is amended by adding a new paragraph to read: 01 (71) "nicotine" includes a chemical or chemical compound intended, 02 when introduced into the human body, to mimic or simulate the effect of nicotine from 03 tobacco. 04 * Sec. 11. AS 18.35.301(i) is amended by adding a new paragraph to read: 05 (5) "retail cigar store" means a store that 06 (A) derives at least 60 percent of its gross revenue in a calendar 07 year from the on-site sale of cigars and rentals of on-site humidors; 08 (B) does not allow cigarettes or cigarette tobacco on the 09 premises; and 10 (C) contains a walk-in or stand-up humidor as a built-in feature 11 on the premises. 12 * Sec. 12. AS 18.35.301 is amended by adding a new subsection to read: 13 (j) Notwithstanding (a) and (b) of this section, unless the owner or operator 14 prohibits it, an individual may smoke at a retail cigar store that 15 (1) that is in a building that 16 (A) is freestanding; or 17 (B) if it is attached to another business or building, 18 (i) has a separate entrance; 19 (ii) is separated from the other business or building in a 20 manner that does not allow cigar aerosols to travel into the other 21 business or building; and 22 (iii) the other business or building does not serve as a 23 residence, child care facility, facility providing care for adults on a fee- 24 for-service basis, school, or health care facility; 25 (2) where smoking is limited to the smoking of cigars; 26 (3) that is not 27 (A) a business that is licensed under AS 05.15 to sell pull-tabs; 28 or 29 (B) a retail store that is within an indoor public place or 30 workplace. 31 * Sec. 13. AS 29.35.085(c) is amended to read: 01(c) The community work provisions of AS 47.12.030(b)(5) 02 [AS 47.12.030(b)(6)] apply to punishment for a minor's conviction of a violation of a 03 curfew ordinance for which a penalty is provided under AS 29.25.070(a). 04 * Sec. 14. AS 37.05.580(a) is amended to read: 05 (a) The [THERE IS CREATED AS A SPECIAL ACCOUNT IN THE 06 GENERAL FUND THE] tobacco use education and cessation fund is established as a 07 separate fund in the state treasury. Each year, [INTO WHICH SHALL BE 08 DEPOSITED] 20 percent of annual [ANNUALLY OF THE] revenue derived from 09 the settlement of State of Alaska v. Philip Morris, Incorporated, et al, No. 1JU-97-915 10 CI (Alaska Super. 1997) shall be deposited into the fund. The purpose of the tobacco 11 use education and cessation fund is to provide a source to finance the comprehensive 12 smoking education, tobacco use prevention, and tobacco control program authorized 13 by AS 44.29.020(a)(12). 14 * Sec. 15. AS 43.50.070 is amended to read: 15 Sec. 43.50.070. Suspension or revocation of or refusal to renew a license. 16 (a) The department may suspend, revoke, or refuse to renew a license issued under this 17 chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107, 18 11.76.109, or a violation of this chapter or a regulation of the department adopted 19 under this chapter; (2) if a licensee ceases to act in the capacity for which the license 20 was issued; or (3) if a licensee negligently sells tobacco or products containing 21 tobacco to a person who is required to, but does not, hold a license endorsement under 22 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended. 23 A person whose license is suspended or revoked may not sell cigarettes, [OR] tobacco 24 products, or electronic smoking products, or permit cigarettes, [OR] tobacco 25 products, or electronic smoking products to be sold, during the period of the 26 suspension or revocation on the premises occupied or controlled by that person. A 27 disciplinary proceeding or action is not barred or abated by the expiration, transfer, 28 surrender, renewal, or extension of a license issued under this chapter. The department 29 shall comply with the provisions of AS 44.62 (Administrative Procedure Act), except 30 that a hearing officer of the department, rather than a hearing officer assigned under 31 AS 44.62.350, may conduct hearings. 01 (b) In this section, "licensee" means a person licensed under AS 43.50.010 - 02 43.50.180, [OR] 43.50.300 - 43.50.390, or 43.50.850 - 43.50.900. 03 * Sec. 16. AS 43.50.105(b) is amended to read: 04 (b) A person who is licensed under this chapter may not ship or cause to be 05 shipped cigarettes to a person in this state unless the person receiving the cigarettes 06 (1) is licensed under this chapter; 07 (2) holds a business license endorsement under AS 43.70.075; 08 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 09 1311 or 19 U.S.C. 1555; 10 (4) is an instrumentality of the federal government or an Indian tribal 11 organization authorized by law to possess cigarettes not taxed under this chapter; or 12 (5) is an individual 21 [19] years of age or older and the individual's 13 age was verified at the time of purchase by a third-party verification service, the 14 individual is receiving the cigarettes for personal consumption, and the tax imposed 15 on the cigarettes under this chapter has been paid. 16 * Sec. 17. AS 43.50.105(c) is amended to read: 17 (c) A common or contract carrier may not knowingly transport cigarettes to a 18 person in this state unless the person 19 (1) shipping the cigarettes is licensed under this chapter and, before 20 shipment, provides the common or contract carrier with a copy of the person's current 21 license issued by the department and 22 (A) an affidavit from the intended recipient certifying that the 23 person receiving the cigarettes is a person described under (b)(1) - (4) [(b)(1) - 24 (5)] of this section; or 25 (B) the common or contract carrier verifies the age of the 26 recipient as 21 years of age or older before delivery; or 27 (2) receiving the cigarettes is a person described under (a)(2) or (3) of 28 this section or is licensed under this chapter and, before receipt, provides the common 29 or contract carrier with a copy of the person's current license issued by the department. 30 * Sec. 18. AS 43.50.150(c) is amended to read: 31 (c) The department may enter into an agreement with a municipality that 01imposes a tax on cigarettes, [OR OTHER] tobacco products, synthetic nicotine 02 products, nicotine substitutes, or electronic smoking products for the purpose of 03 jointly auditing a person liable for a tax under AS 43.50.010 - 43.50.390 or 43.50.850 04 - 43.50.900 and the municipal tax on cigarettes, [OR OTHER] tobacco products, 05 synthetic nicotine products, nicotine substitutes, or electronic smoking products. 06 * Sec. 19. AS 43.50.190(d) is amended to read: 07 (d) A portion of the annual proceeds of the tax levied under (a) of this section 08 equal to 8.9 percent of the total proceeds of the tax shall be deposited into the tobacco 09 use education and cessation fund established in AS 37.05.580. [THIS DEPOSIT 10 SHALL BE IN ADDITION TO ANY SUMS DEPOSITED INTO THE FUND 11 UNDER AS 37.05.580(a).] 12 * Sec. 20. AS 43.50.300 is amended to read: 13 Sec. 43.50.300. Excise tax levied. An excise tax is levied on tobacco products, 14 synthetic nicotine products, and nicotine substitutes in the state at the rate of 75 15 percent of the wholesale price of the tobacco products. The tax is levied when a person 16 (1) brings, or causes to be brought, a tobacco product, synthetic 17 nicotine product, or nicotine substitute into the state from outside the state for sale; 18 (2) makes, manufactures, or fabricates a tobacco product, synthetic 19 nicotine product, or nicotine substitute in the state for sale in the state; or 20 (3) ships or transports a tobacco product, synthetic nicotine product, 21 or nicotine substitute to a retailer in the state for sale by the retailer. 22 * Sec. 21. AS 43.50.320(a) is amended to read: 23 (a) Except as provided in (g) of this section, a person must be licensed by the 24 department if the person engages in business as a distributor for a tobacco product, 25 synthetic nicotine product, or nicotine substitute that is subject to the tax. 26 * Sec. 22. AS 43.50 is amended by adding a new section to read: 27 Sec. 43.50.325. Restrictions on shipping or transporting tobacco products, 28 synthetic nicotine products, and nicotine substitutes. (a) A person who is not 29 licensed under this chapter may not ship or cause to be shipped a tobacco product, 30 synthetic nicotine product, or nicotine substitute to a person in this state unless the 31 person receiving the tobacco product, synthetic nicotine product, or nicotine substitute 01 is 02 (1) licensed under this chapter; 03 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 04 or 19 U.S.C. 1555; 05 (3) an instrumentality of the federal government or an Indian tribal 06 organization authorized by law to possess tobacco products not taxed under this 07 chapter; or 08 (4) an individual purchasing a cigar or pipe tobacco for personal 09 consumption who is 21 years of age or older and whose age was verified at the time of 10 purchase though a third-party verification service. 11 (b) A person who is licensed under this chapter may not ship or cause to be 12 shipped a tobacco product, synthetic nicotine product, or nicotine substitute to a 13 person in this state unless the person receiving the tobacco product, synthetic nicotine 14 product, or nicotine substitute 15 (1) is licensed under this chapter; 16 (2) holds a business license endorsement under AS 43.70.075; 17 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 18 1311 or 19 U.S.C. 1555; 19 (4) is an instrumentality of the federal government or an Indian tribal 20 organization authorized by law to possess tobacco products, synthetic nicotine 21 products, or nicotine substitutes not taxed under this chapter; or 22 (5) is an individual 21 years of age or older and the individual's age 23 was verified at the time of purchase though a third-party verification service, the 24 individual is receiving the tobacco product, synthetic nicotine product, or nicotine 25 substitute for personal consumption, and the tax imposed on the tobacco product, 26 synthetic nicotine product, or nicotine substitute under this chapter has been paid. 27 (c) A common or contract carrier may not knowingly transport a tobacco 28 product, synthetic nicotine product, or nicotine substitute to a person in this state 29 unless 30 (1) the common or contract carrier verifies the age of the recipient as 31 21 years of age or older before delivery; or 01(2) the person receiving the tobacco product, synthetic nicotine 02 product, or nicotine substitute is a person described under (a)(2), (3), or (4) of this 03 section or is licensed under this chapter and, before receipt, provides the common or 04 contract carrier with a copy of the person's current license issued by the department. 05 (d) If a tobacco product, synthetic nicotine product, or nicotine substitute is 06 transported by a common or contract carrier to a home or residence, it is rebuttably 07 presumed that the common or contract carrier knew that the recipient of the tobacco 08 product, synthetic nicotine product, or nicotine substitute was not a person described 09 under (b)(1) - (5) of this section, unless the common or contract carrier has satisfied 10 the requirement in (c)(1) of this section. 11 (e) A person, other than a common or contract carrier, may not knowingly 12 transport a tobacco product, synthetic nicotine product, or nicotine substitute to a 13 person in this state, unless the recipient of the tobacco product, synthetic nicotine 14 product, or nicotine substitute is a person described under (a)(4) or (b)(1) - (5) of this 15 section. 16 (f) A person who ships or causes to be shipped a tobacco product, synthetic 17 nicotine product, or nicotine substitute to a person in this state shall plainly and visibly 18 mark the container or wrapping with the words "product containing nicotine" if the 19 tobacco product, synthetic nicotine product, or nicotine substitute is shipped in a 20 container or wrapping other than the manufacturer's original container or wrapping of 21 the tobacco product, synthetic nicotine product, or nicotine substitute. 22 (g) A person who violates the provisions of this section is guilty of a class A 23 misdemeanor if the person unlawfully ships, causes to be shipped, or transports a 24 tobacco product, synthetic nicotine product, or nicotine substitute. 25 (h) In addition to the criminal penalty under (g) of this section, the department 26 may assess a civil penalty of not more than $5,000 for each violation of this section. 27 (i) A person who violates the provisions of this section is jointly and severally 28 liable for the taxes imposed by AS 43.50.090 and 43.50.190. To the fullest extent 29 permitted by the Constitution of the United States, a person who violates the 30 provisions of this section is required to collect the taxes and pay them to the 31 department. 01 * Sec. 23. AS 43.50.390(1) is amended to read: 02 (1) "distributor" means a person who 03 (A) brings, or causes to be brought, a tobacco product, 04 synthetic nicotine product, or nicotine substitute into the state from outside 05 the state for sale; 06 (B) makes, manufactures, or fabricates a tobacco product, 07 synthetic nicotine product, or nicotine substitute in the state for sale in the 08 state; or 09 (C) ships or transports a tobacco product, synthetic nicotine 10 product, or nicotine substitute to a retailer in the state for sale by the retailer; 11 * Sec. 24. AS 43.50.390(4) is amended to read: 12 (4) "tobacco product" means 13 (A) a cigar; 14 (B) a cheroot; 15 (C) a stogie; 16 (D) a perique; 17 (E) snuff and snuff flour; 18 (F) smoking tobacco, including granulated, plug-cut, crimp-cut, 19 ready-rubbed, and any form of tobacco suitable for smoking in a pipe or 20 cigarette; 21 (G) chewing tobacco, including cavendish, twist, plug, scrap, 22 and tobacco suitable for chewing; or 23 (H) an article or product made of tobacco, [OR] a tobacco 24 substitute, or synthetic tobacco, but not including a cigarette as defined in 25 AS 43.50.170; 26 * Sec. 25. AS 43.50 is amended by adding new sections to read: 27 Article 8. Electronic Smoking Products Sales, Shipping, Licensing, and Tax. 28 Sec. 43.50.850. Tax levied; collection. (a) A tax is levied on closed electronic 29 smoking products and vapor products in the state. The tax is 25 percent of the retail 30 sales price of a closed electronic smoking product or a vapor product. 31 (b) A licensee located in the state shall collect and remit the tax to the 01 department. A licensee located outside of the state shall collect and remit the tax to the 02 department if the licensee has more than 200 transactions in the state in the current or 03 preceding calendar year. 04 Sec. 43.50.855. Exemptions. (a) The tax does not apply to 05 (1) a closed electronic smoking product or vapor product 06 (A) sold in a facility operated by one of the uniformed services 07 of the United States; 08 (B) approved for sale by the United States Food and Drug 09 Administration as a drug, drug product, including a drug product used to treat 10 tobacco dependence, or combination product under 21 U.S.C. 301 - 392 11 (Federal Food, Drug, and Cosmetic Act); 12 (C) if the United States Constitution or other federal laws 13 prohibit the levying of the tax on the product by the state; 14 (D) designed, marketed, and sold for the purpose of vaporizing 15 or aerosolizing marijuana, marijuana products, hemp, or hemp products if the 16 marijuana, marijuana products, hemp, or hemp products do not contain 17 nicotine and are intended for sale only in a retail marijuana store; 18 (2) marijuana or marijuana products subject to tax under AS 43.61 if 19 the marijuana or marijuana products do not contain nicotine; or 20 (3) hemp or hemp products if the hemp or hemp products do not 21 contain nicotine. 22 (b) In this section, 23 (1) "hemp" or "hemp product" means hemp or a hemp product 24 produced by an individual registered under AS 03.05.076; 25 (2) "marijuana," "marijuana products," and "retail marijuana store" 26 have the meanings given in AS 17.38.900; 27 (3) "uniformed services" has the meaning given in 5 U.S.C. 2101. 28 Sec. 43.50.860. Licensing. (a) Except as provided in (g) of this section, a 29 person must be licensed by the department if the person engages in business as a 30 retailer of an electronic smoking product. 31 (b) The department, upon application and payment of a fee of $50, shall issue 01 a license for one year to a person who applies for a license under (a) of this section. 02 (c) The department may refuse to issue a license under this section if 03 (1) there is reasonable cause to believe the information submitted in 04 the application is false or misleading and is not made in good faith; 05 (2) the applicant is not in good standing under AS 10.06 (Alaska 06 Corporations Code); or 07 (3) a tax levied under this chapter is due and unpaid by the applicant. 08 (d) A license issued under this section must include the name and address of 09 the licensee, the type of business to be conducted, and the year for which the license is 10 issued. 11 (e) The department may renew a license issued under this section for a fee of 12 $50 if the applicant 13 (1) is in good standing under AS 10.06 (Alaska Corporations Code); 14 and 15 (2) does not have unpaid taxes under this chapter. 16 (f) The department may suspend, revoke, or refuse to renew a license issued 17 under this section as provided in AS 43.50.070. 18 (g) A license required by this section is in addition to any other license 19 required by law, except that a person who is licensed under AS 43.50.010 - 43.50.180 20 or 43.50.300 - 43.50.390 is exempt from the licensing requirements of this section. 21 (h) A license issued under this section is not assignable or transferable, except 22 that in the case of death, bankruptcy, receivership, or incompetency of the licensee, or 23 if the business of the licensee is transferred to another by operation of law, the 24 department may extend the license for a limited time to the executor, administrator, 25 trustee, receiver, or transferee. 26 (i) A person licensed under this section may not 27 (1) distribute an electronic smoking product designed or packaged so 28 as not to be clearly recognizable as an electronic smoking product; or 29 (2) market an electronic smoking product, including a flavored 30 electronic smoking product, in a manner likely to promote use of the electronic 31 smoking product by a person under 21 years of age. 01Sec. 43.50.865. Returns. On or before the last day of each calendar month, a 02 licensee shall file a return with the department. The return must state the number or 03 amount of closed electronic smoking products, vapor products, and other electronic 04 smoking products sold by the licensee during the preceding calendar month, the 05 selling price of the electronic smoking products, and the amount of tax imposed on the 06 closed electronic smoking products and vapor products. 07 Sec. 43.50.870. Records. A licensee shall keep a complete and accurate record 08 of all electronic smoking products of the licensee, including purchase prices, sales 09 prices, the names and addresses of the sellers, the dates of delivery, the quantities of 10 electronic smoking products, and the trade names and brands. Statements and records 11 required by this section must be in the form prescribed by the department, preserved 12 for three years, and available for inspection upon demand by the department. 13 Sec. 43.50.875. Disposition of proceeds. The annual proceeds of the tax 14 levied under AS 43.50.850 shall be deposited into the tobacco use education and 15 cessation fund established in AS 37.05.580 and may be appropriated from the fund for 16 the purposes listed in AS 44.29.020(a)(12) or for efforts to prevent or detect the use of 17 tobacco or electronic smoking products in a school. 18 Sec. 43.50.880. Restrictions on shipping or transporting electronic 19 smoking products. (a) A person who is not licensed under this chapter may not ship 20 or cause to be shipped an electronic smoking product to a person in this state unless 21 the person receiving the electronic smoking product is 22 (1) licensed under this chapter; 23 (2) an operator of a customs bonded warehouse under 19 U.S.C. 1311 24 or 19 U.S.C. 1555; or 25 (3) an instrumentality of the federal government or an Indian tribal 26 organization authorized by law to possess electronic smoking products not taxed under 27 this chapter. 28 (b) A person who is licensed under this chapter may not ship or cause to be 29 shipped an electronic smoking product to a person in this state unless the person 30 receiving the electronic smoking product 31 (1) is licensed under this chapter; 01 (2) holds a business license endorsement under AS 43.70.075; 02 (3) is an operator of a customs bonded warehouse under 19 U.S.C. 03 1311 or 19 U.S.C. 1555; 04 (4) is an instrumentality of the federal government or an Indian tribal 05 organization authorized by law to possess electronic smoking products not taxed under 06 this chapter; or 07 (5) is an individual 21 years of age or older and the individual's age 08 was verified at the time of purchase though a third-party verification service, the 09 individual is receiving the electronic smoking product for personal consumption, and 10 the tax imposed on the electronic smoking product under this chapter has been paid. 11 (c) A common or contract carrier may not knowingly transport an electronic 12 smoking product to a person in this state unless the person 13 (1) shipping the electronic smoking product is licensed under this 14 chapter and, before shipment, provides the common or contract carrier with a copy of 15 the person's current license issued by the department and 16 (A) an affidavit from the intended recipient certifying that the 17 person receiving the electronic smoking product is a person described under 18 (b)(1) - (4) of this section; or 19 (B) the common or contract carrier verifies the age of the 20 recipient as 21 years of age or older before delivery; or 21 (2) receiving the electronic smoking product is a person described 22 under (a)(2) or (3) of this section or is licensed under this chapter and, before receipt, 23 provides the common or contract carrier with a copy of the person's current license 24 issued by the department. 25 (d) If an electronic smoking product is transported by a common or contract 26 carrier to a home or residence, it is rebuttably presumed that the common or contract 27 carrier knew that the recipient of the electronic smoking product was not a person 28 described under (b)(1) - (5) of this section, unless the person shipping the electronic 29 smoking product has satisfied the requirements in (c)(1) of this section. 30 (e) A person, other than a common or contract carrier, may not knowingly 31 transport an electronic smoking product to a person in this state, unless the recipient of 01 the electronic smoking product is a person described under (b)(1) - (5) of this section. 02 (f) A person who ships or causes to be shipped an electronic smoking product 03 to a person in this state shall plainly and visibly mark the container or wrapping with 04 the words "electronic smoking product" if the electronic smoking product is shipped in 05 a container or wrapping other than the manufacturer's original container or wrapping 06 of the electronic smoking product. 07 (g) A person who violates the provisions of this section is guilty of a class A 08 misdemeanor if the person unlawfully ships, causes to be shipped, or transports an 09 electronic smoking product. 10 (h) In addition to the criminal penalty under (g) of this section, the department 11 may assess a civil penalty of not more than $5,000 for each violation of this section. 12 (i) A person who violates the provisions of this section is jointly and severally 13 liable for the taxes imposed by AS 43.50.850. To the fullest extent permitted by the 14 Constitution of the United States, a person who violates the provisions of this section 15 is required to collect the taxes and pay them to the department. 16 Sec. 43.50.885. Restrictions on electronic smoking products. A person may 17 sell or distribute to consumers in this state, acquire, hold, own, possess, or transport 18 for sale or distribution in this state, or import or cause to be imported into this state for 19 sale or distribution in this state only electronic smoking products 20 (1) for which the component vapor product 21 (A) has a nicotine content of not more than 70 milligrams of 22 nicotine for each milliliter of vapor product; 23 (B) is protected from breakage and leakage; 24 (C) does not contain added vitamins or other additives 25 marketed to create the impression of health benefits; in this subparagraph, 26 "vitamins or other additives" includes caffeine, taurine, vitamin E acetate, 27 stimulants, and colorants; 28 (2) that are packaged to be child- and tamper-proof; and 29 (3) that are labeled to inform consumers about all vapor product 30 ingredients and nicotine content, including the nicotine concentration in milligrams 31 per milliliter and the total amount of milligrams of nicotine in the product. 01 Sec. 43.50.900. Definitions. In AS 43.50.850 - 43.50.900, 02 (1) "retailer" means a person in the state who is engaged in the 03 business of selling electronic smoking products at retail; 04 (2) "sales price" 05 (A) means the total amount of consideration, including cash, 06 credit, property, and services, for which an electronic smoking product is 07 purchased or sold, valued in money, whether received in money or otherwise, 08 without any deduction for 09 (i) the seller's cost of the electronic smoking product 10 sold; 11 (ii) the cost of materials used, labor or service cost, 12 interest, losses, cost of transportation, taxes, or other expenses of the 13 seller; 14 (iii) charges by the seller for services necessary to 15 complete the sale; 16 (iv) delivery charges; 17 (B) does not include 18 (i) discounts, including cash or coupons that are not 19 reimbursed by a third party, that are allowed by a seller and taken by a 20 purchaser on a sale; 21 (ii) interest, financing, and carrying charges from credit 22 extended on the sale of an electronic smoking product if the amount is 23 separately stated on the invoice, bill of sale, or similar document given 24 to the purchaser; and 25 (iii) taxes legally imposed directly on the consumer that 26 are separately stated on the invoice, bill of sale, or similar document 27 given to the purchaser. 28 Article 9. General Provisions. 29 Sec. 43.50.990. Definitions. In this chapter, 30 (1) "closed electronic smoking product" means a single-use electronic 31 smoking product that includes a pre-filled disposable cartridge of vapor product; 01 (2) "electronic smoking product" 02 (A) includes 03 (i) a product that can be used to deliver aerosolized or 04 vaporized nicotine to the person inhaling; 05 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 06 or other similar device of any shape; 07 (iii) a component, part, accessory, or device related to 08 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 09 device of any shape; 10 (iv) a vapor product used in a device or product 11 described in (i) or (ii) of this subparagraph; 12 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 13 or other similar device of any shape sold together with a solution, vapor 14 product, or other similar product as a disposable nonrefillable unit; 15 (B) does not include a 16 (i) battery, battery charger, heating element, electronic 17 coil, or mouthpiece intended for use in an electronic smoking product, 18 when sold separately from the electronic smoking product; 19 (ii) cartridge, pod, tank, or similar container intended to 20 transport a vapor product, if sold empty; 21 (3) "nicotine" has the meaning given in AS 11.81.900(b); 22 (4) "vapor product" means a substance intended to be aerosolized or 23 vaporized during the use of an electronic smoking product. 24 * Sec. 26. AS 43.70.075(f) is amended to read: 25 (f) A person who holds a license endorsement issued under this section shall 26 post on the licensed premises a warning sign as described in this subsection. A 27 warning sign required by this subsection must be at least 8.5 inches by 11 inches and 28 must read: "The sale of electronic smoking products or products containing nicotine 29 without a prescription or tobacco products to persons under age 21 [19] is illegal." A 30 person holding an endorsement issued under this section shall display the warning sign 31 in a manner conspicuous to a person purchasing or consuming tobacco products, 01electronic smoking products, or products containing nicotine on the licensed premises. 02 The department shall make available the warning signs required under this section to a 03 person who holds an endorsement issued under this section or a person who requests 04 the sign with the intention of displaying it. 05 * Sec. 27. AS 43.70.075(m) is amended to read: 06 (m) The department may initiate suspension of a business license endorsement 07 or the right to obtain a business license endorsement under this section by sending the 08 person subject to the suspension a notice by certified mail, return receipt requested, or 09 by delivering the notice to the person. The notice must contain information that 10 informs the person of the grounds for suspension, the length of any suspension sought, 11 and the person's right to administrative review. A suspension begins 30 days after 12 receipt of notice described in this subsection unless the person delivers a timely 13 written request for a hearing to the department in the manner provided by regulations 14 of the department. If a hearing is requested under this subsection, an administrative 15 law judge of the office of administrative hearings (AS 44.64.010) shall determine the 16 issues by using the preponderance of the evidence test and shall, to the extent they do 17 not conflict with regulations adopted under AS 44.64.060, conduct the hearing in the 18 manner provided by regulations of the department. A hearing under this subsection is 19 limited to the following questions: 20 (1) was the person holding the business license endorsement, or an 21 agent or employee of the person while acting within the scope of the agency or 22 employment of the person, convicted by plea or judicial finding of violating 23 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 24 (2) if the department does not allege a conviction of AS 11.76.100, 25 11.76.106, 11.76.107, or 11.76.109, did the person, or an agent or employee of the 26 person while acting within the scope of the agency or employment of the person, 27 violate a provision of (a) or (g) of this section; 28 (3) within the 24 months before the date of the department's notice 29 under this subsection, was the person, or an agent or employee of the person while 30 acting within the scope of the agency or employment of the person, convicted of 31 violating AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 or adjudicated for 01 violating a provision of (a) or (g) of this section; 02 (4) did the person holding the business license endorsement establish 03 that the person holding the business license endorsement had adopted and enforced an 04 education, a compliance, and a disciplinary program for agents and employees of the 05 person as provided in (t) of this section; 06 (5) did the person holding the business license endorsement overcome 07 the rebuttable presumption established in (w) of this section; 08 (6) within five years before the date of the violation that is the subject 09 of the hearing, did the department establish that the person holding the business 10 license endorsement 11 (A) previously violated (a) or (g) of this section; 12 (B) previously violated AS 11.76.100, 11.76.106, 11.76.107, or 13 11.76.109 at a location or outlet in a location for which the person holds a 14 business license endorsement, or had an agent or employee previously violate 15 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; this subparagraph does not 16 apply to a prior conviction that served to enhance a suspension period under 17 (d)(2) - (4) of this section; or 18 (C) engaged at a location owned by the person in other conduct 19 that was or is likely to result in the sale of tobacco, electronic smoking 20 products, or products containing nicotine to a person under 21 [19] years of 21 age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109. 22 * Sec. 28. AS 43.70.075(t) is amended to read: 23 (t) Based on evidence provided at the hearing under (m)(4) - (6) of this 24 section, the department may reduce the license suspension period under (d) of this 25 section if the person holding the business license endorsement establishes that, before 26 the date of the violation, the person had 27 (1) adopted and enforced a written policy against selling cigarettes, 28 cigars, tobacco, products containing tobacco, electronic smoking products, or products 29 containing nicotine to a person under 21 [19] years of age in violation of 30 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109; 31 (2) informed the person's agents and employees of the applicable laws 01 and their requirements and conducted training on complying with the laws and 02 requirements; 03 (3) required each agent and employee of the person to sign a form 04 stating that the agent and employee has been informed of and understands the written 05 policy and the requirements of AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 06 (4) determined that the agents and employees of the person had 07 sufficient experience and ability to comply with the written policy and requirements of 08 AS 11.76.100, 11.76.106, 11.76.107, and 11.76.109; 09 (5) required the agents and employees of the person to verify the age 10 of purchasers of cigarettes, cigars, tobacco, other products containing tobacco, 11 electronic smoking products, or products containing nicotine by means of a valid 12 government issued photographic identification; 13 (6) established and enforced disciplinary sanctions for noncompliance 14 with the written policy or the requirements of AS 11.76.100, 11.76.106, 11.76.107, 15 and 11.76.109; and 16 (7) monitored the compliance of the agents and employees of the 17 person with the written policy and the requirements of AS 11.76.100, 11.76.106, 18 11.76.107, and 11.76.109. 19 * Sec. 29. AS 43.70.075(w) is amended to read: 20 (w) For purposes of (m)(5) of this section, a conviction for a violation of 21 AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 by the agent or employee of the 22 person who holds the business license endorsement is rebuttably presumed to 23 constitute proof of the fact that the agent or employee negligently sold a cigarette, a 24 cigar, or tobacco, a product containing tobacco, an electronic smoking product, or a 25 product containing nicotine to a person under 21 [19] years of age. The person who 26 holds the business license endorsement may overcome the presumption by 27 establishing by clear and convincing evidence that the agent or employee did not 28 negligently sell a cigarette, a cigar, or tobacco, a product containing tobacco, an 29 electronic smoking product, or a product containing nicotine to a person under 21 [19] 30 years of age in violation of AS 11.76.100, 11.76.106, 11.76.107, or 11.76.109 as 31 alleged in the citation issued to the agent or employee. The presentation of evidence 01 authorized by this subsection does not constitute a collateral attack on the conviction 02 described in this subsection. 03 * Sec. 30. AS 45.50.471(b) is amended by adding a new paragraph to read: 04 (58) marketing an electronic smoking product in a manner likely to 05 promote use of electronic smoking products by a person under 21 years of age; in this 06 paragraph, "electronic smoking product" 07 (A) includes 08 (i) a product that can be used to deliver aerosolized or 09 vaporized nicotine to the person inhaling; 10 (ii) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 11 or other similar device of any shape; 12 (iii) a component, part, accessory, or device related to 13 an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, or other similar 14 device of any shape; 15 (iv) a vapor product used in a device or product 16 described in (i) or (ii) of this subparagraph; 17 (v) an e-cigarette, e-cigar, e-pipe, e-hookah, vape pen, 18 or other similar device of any shape sold together with a solution, vapor 19 product, or other similar product as a disposable nonrefillable unit; 20 (B) does not include a 21 (i) battery, battery charger, heating element, electronic 22 coil, or mouthpiece intended for use in an electronic smoking product, 23 when sold separately from the electronic smoking product; 24 (ii) cartridge, pod, tank, or similar container intended to 25 transport a vapor product, if sold empty. 26 * Sec. 31. AS 45.50.471(b)(58), enacted by sec. 30 of this Act, is amended to read: 27 (58) marketing an electronic smoking product in a manner likely to 28 promote use of electronic smoking products by a person under 21 years of age; in this 29 paragraph, "electronic smoking product" has the meaning given in AS 43.50.990 30 [(A) INCLUDES 31 (i) A PRODUCT THAT CAN BE USED TO 01 DELIVER AEROSOLIZED OR VAPORIZED NICOTINE TO THE 02 PERSON INHALING; 03 (ii) AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 04 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 05 SHAPE; 06 (iii) A COMPONENT, PART, ACCESSORY, OR 07 DEVICE RELATED TO AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 08 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 09 SHAPE; 10 (iv) A VAPOR PRODUCT USED IN A DEVICE OR 11 PRODUCT DESCRIBED IN (i) OR (ii) OF THIS SUBPARAGRAPH; 12 (v) AN E-CIGARETTE, E-CIGAR, E-PIPE, E- 13 HOOKAH, VAPE PEN, OR OTHER SIMILAR DEVICE OF ANY 14 SHAPE SOLD TOGETHER WITH A SOLUTION, VAPOR 15 PRODUCT, OR OTHER SIMILAR PRODUCT AS A DISPOSABLE 16 NONREFILLABLE UNIT; 17 (B) DOES NOT INCLUDE A 18 (i) BATTERY, BATTERY CHARGER, HEATING 19 ELEMENT, ELECTRONIC COIL, OR MOUTHPIECE INTENDED 20 FOR USE IN AN ELECTRONIC SMOKING PRODUCT, WHEN 21 SOLD SEPARATELY FROM THE ELECTRONIC SMOKING 22 PRODUCT; 23 (ii) CARTRIDGE, POD, TANK, OR SIMILAR 24 CONTAINER INTENDED TO TRANSPORT A VAPOR PRODUCT, 25 IF SOLD EMPTY]. 26 * Sec. 32. AS 47.12.030(b) is amended to read: 27 (b) When a minor is accused of violating a statute specified in this subsection, 28 other than a statute the violation of which is a felony, this chapter and the Alaska 29 Delinquency Rules do not apply and the minor accused of the offense shall be 30 charged, prosecuted, and sentenced in the district court in the same manner as an 31 adult; if a minor is charged, prosecuted, and sentenced for an offense under this 01 subsection, the minor's parent, guardian, or legal custodian shall be present at all 02 proceedings; the provisions of this subsection apply when a minor is accused of 03 violating 04 (1) a traffic statute or regulation, or a traffic ordinance or regulation of 05 a municipality; 06 (2) AS 11.76.105, relating to the possession of tobacco by a person 07 under 21 [19] years of age; 08 (3) a fish and game statute or regulation under AS 16; 09 (4) a parks and recreational facilities statute or regulation under 10 AS 41.21; 11 (5) [REPEALED 12 (6)] a municipal curfew ordinance, whether adopted under 13 AS 29.35.085 or otherwise, unless the municipality provides for enforcement of its 14 ordinance under AS 29.25.070(b) by the municipality; in place of any fine imposed for 15 the violation of a municipal curfew ordinance, the court shall allow a defendant the 16 option of performing community work; the value of the community work, which may 17 not be lower than the amount of the fine, shall be determined under AS 12.55.055(c); 18 in this paragraph, "community work" includes the work described in AS 12.55.055(b) 19 or work that, on the recommendation of the municipal or borough assembly, city 20 council, or traditional village council of the defendant's place of residence, would 21 benefit persons within the municipality or village who are elderly or disabled; 22 (6) [(7)] AS 04.16.050, relating to consumption, possession, or control 23 of alcohol by a person under 21 years of age. 24 * Sec. 33. AS 11.76.100(e) is repealed. 25 * Sec. 34. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 APPLICABILITY. The following sections apply to offenses committed on or after the 28 effective date of those sections: 29 (1) AS 11.76.100(a), as amended by sec. 1 of this Act; 30 (2) AS 11.76.100(b), as amended by sec. 2 of this Act; 31 (3) AS 11.76.105, as amended by sec. 3 of this Act; 01 (4) AS 11.76.105(d) and (e), enacted by sec. 4 of this Act; 02 (5) AS 11.76.106(b), as amended by sec. 5 of this Act; 03 (6) AS 11.76.109(a), as amended by sec. 6 of this Act; 04 (7) AS 11.76.109(b), as amended by sec. 7 of this Act; 05 (8) AS 11.76.109(d), as amended by sec. 8 of this Act; 06 (9) AS 11.76.109(g), as amended by sec. 9 of this Act; 07 (10) AS 11.81.900(b)(71), enacted by sec. 10 of this Act; 08 (11) AS 43.50.325, enacted by sec. 22 of this Act; 09 (12) AS 43.50.880, enacted by sec. 25 of this Act; and 10 (13) AS 47.12.030(b), as amended by sec. 32 of this Act. 11 * Sec. 35. Sections 15, 18, 25, and 31 of this Act take effect July 1, 2027. 12 * Sec. 36. Except as provided in sec. 35 of this Act, this Act takes effect July 1, 2026.
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