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