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SENATE BILL NO. 146
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FIRST LEGISLATURE - SECOND SESSION
BY SENATOR BEGICH BY REQUEST
Introduced: 1/21/20
Referred: Labor and Commerce, Finance
A BILL
FOR AN ACT ENTITLED
1 "An Act relating to cigarettes and cigarette taxation; prohibiting the sale of cigarettes;
2 and providing for an effective date."
3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
4 * Section 1. AS 11.76.100(a) is amended to read:
5 (a) A person commits the offense of selling or giving tobacco to a minor if the
6 person
7 (1) negligently sells [A CIGARETTE,] a cigar, tobacco, or a product
8 containing tobacco to a person under 19 years of age;
9 (2) is 19 years of age or older and negligently exchanges or gives a
10 cigarette, a cigar, tobacco, or a product containing tobacco to a person under 19 years
11 of age;
12 (3) maintains a vending machine that dispenses [CIGARETTES,]
13 cigars, tobacco, or products containing tobacco; or
14 (4) holds a business license endorsement under AS 43.70.075 and
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1 allows a person under 19 years of age to sell [A CIGARETTE,] a cigar, tobacco, or a
2 product containing tobacco.
3 * Sec. 2. AS 11.76.106(a) is amended to read:
4 (a) Except as provided under (b) of this section, a person may not sell
5 [CIGARETTES,] cigars, tobacco, products containing tobacco, electronic smoking
6 products, or products containing nicotine unless the sale occurs in a manner that
7 allows only the sales clerk to control access to the [CIGARETTES,] cigars, tobacco,
8 products containing tobacco, electronic smoking products, or products containing
9 nicotine.
10 * Sec. 3. AS 11.76.106(b) is amended to read:
11 (b) Subsection (a) does not apply if the sale
12 (1) is by vending machine as provided under AS 11.76.100(b) or
13 11.76.109(f);
14 (2) is a wholesale transaction [, THE PERSON IS LICENSED AS A
15 MANUFACTURER OR DISTRIBUTOR UNDER AS 43.50.010,] and the sale occurs
16 on premises where no retail transactions occur;
17 (3) is by a retailer who sells primarily [CIGARETTES,] cigars,
18 tobacco, products containing tobacco, electronic smoking products, or products
19 containing nicotine and who restricts access to the premises to only those individuals
20 who are 19 years of age or older; or
21 (4) is of electronic smoking products over the Internet to a person 19
22 years of age or older.
23 * Sec. 4. AS 11.76.107(a) is amended to read:
24 (a) A person commits the offense of failure to supervise a vending machine if
25 the person owns premises licensed as a beverage dispensary under AS 04.11.090,
26 licensed as a club under AS 04.11.110, or licensed as a package store under
27 AS 04.11.150 and with criminal negligence fails to have an employee supervise a
28 vending machine on those premises that dispenses [CIGARETTES,] cigars, tobacco,
29 products containing tobacco, electronic smoking products, or products containing
30 nicotine as required by AS 11.76.100(b)(1)(B) and 11.76.109(d)(1)(B).
31 * Sec. 5. AS 11.76 is amended by adding a new section to read:
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1 Sec. 11.76.108. Selling a cigarette. (a) A person commits the offense of
2 selling a cigarette if the person offers for sale or possesses with intent to sell one or
3 more cigarettes.
4 (b) In this section, "cigarette" means a roll of tobacco wrapped in
5 (1) paper or another substance not containing tobacco; or
6 (2) a substance containing tobacco that, because of its appearance, the
7 type of tobacco used in the filler, or its packaging and labeling, is likely to be offered
8 to, or purchased by, consumers as a cigarette described in (1) of this subsection.
9 (c) A person who violates (a) of this section is guilty of a violation and upon
10 conviction is punishable by a fine of not less than $300.
11 * Sec. 6. AS 18.35.301(i)(4) is amended to read:
12 (4) "retail tobacco or e-cigarette store"
13 (A) means a store
14 (i) that primarily sells [CIGARETTES,] e-cigarettes,
15 cigars, tobacco and products containing tobacco, and pipes and other
16 smoking or e-cigarette accessories;
17 (ii) in which the sale of other products is incidental; and
18 (iii) that derives at least 90 percent of its gross revenue
19 from the sale of [CIGARETTES,] e-cigarettes, cigars, tobacco and
20 products containing tobacco, and pipes and other smoking or e-
21 cigarette accessories;
22 (B) does not include
23 (i) a tobacco or e-cigarette department or section of a
24 business that does not meet the criteria in (A) of this paragraph; or
25 (ii) a business that is also a restaurant or grocery store.
26 * Sec. 7. AS 18.56.230(b) is amended to read:
27 (b) The corporation may not authorize the commercial use of space in a multi-
28 unit residential housing development owned or financed by the corporation for
29 (1) a business that offers adult entertainment;
30 (2) the sale of alcoholic beverages, unless the sale is in a restaurant or
31 eating place licensed under AS 04.11.100 or is in premises designated by the
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1 Alcoholic Beverage Control Board as a restaurant under AS 04.16.049;
2 (3) substance abuse treatment; or
3 (4) a business that primarily sells, transfers, or stores [CIGARETTES
4 OR] tobacco-related products.
5 * Sec. 8. AS 43.50.010(a) is amended to read:
6 (a) A person may not import cigarettes [SELL, PURCHASE, POSSESS, OR
7 ACQUIRE CIGARETTES AS A MANUFACTURER, DISTRIBUTOR, DIRECT-
8 BUYING RETAILER, VENDING MACHINE OPERATOR, OR BUYER] without a
9 license.
10 * Sec. 9. AS 43.50.010(b) is amended to read:
11 (b) The department, upon application and payment of the fee, shall issue a
12 license to each importer [MANUFACTURER, DISTRIBUTOR, DIRECT-BUYING
13 RETAILER, VENDING MACHINE OPERATOR, OR BUYER]. The department
14 shall adopt reasonable regulations that it considers necessary in respect to the
15 application for and the issuance of licenses.
16 * Sec. 10. AS 43.50.020 is amended to read:
17 Sec. 43.50.020. Separate licenses. If a person operates more than one location
18 [PLACE OF BUSINESS], the person must obtain a separate license for each location
19 [PLACE OF BUSINESS, EXCEPT THAT A PERSON OPERATING ONE OR
20 MORE CIGARETTE VENDING MACHINES IS CONSIDERED TO HAVE ONLY
21 ONE PLACE OF BUSINESS FOR THE PURPOSE OF A LICENSE UNDER
22 AS 43.50.010 - 43.50.180. A PERSON LICENSED ONLY AS A
23 MANUFACTURER, DISTRIBUTOR, DIRECT-BUYING RETAILER, VENDING
24 MACHINE OPERATOR, OR BUYER MAY NOT OPERATE IN ANOTHER
25 CAPACITY UNLESS THE APPROPRIATE LICENSE FOR IT IS FIRST
26 SECURED]. Each license shall be exhibited at the location [PLACE OF BUSINESS]
27 for which it is issued and in the manner prescribed by the department.
28 * Sec. 11. AS 43.50.030(e) is amended to read:
29 (e) For each license issued to an importer [A BUYER], and for each renewal,
30 the fee is $25.
31 * Sec. 12. AS 43.50.040 is amended to read:
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1 Sec. 43.50.040. Expiration of licenses. A license issued under AS 43.50.010
2 [OR 43.50.035] expires on June 30 following the date of issue. If a license is revoked,
3 or the location [BUSINESS] for which the license is issued changes [OWNERSHIP
4 OR THE LICENSEE CHANGES THE PLACE OF BUSINESS FROM THE
5 PREMISES COVERED BY THE LICENSE], the licensee shall immediately return
6 the license to the department. If the licensee moves [THE BUSINESS] to another
7 location in the state, the license shall, upon the payment of a fee of 50 cents, be
8 reissued for the new location for the balance of the unexpired term. Before a license
9 issued under AS 43.50.010 [OR 43.50.035] expires, the licensee may apply to renew
10 the license for one year from the expiration date of the license. The renewal fee
11 required by AS 43.50.030 must accompany the application. The department shall
12 adopt reasonable regulations that it considers necessary regarding the renewal of
13 licenses.
14 * Sec. 13. AS 43.50.050 is amended to read:
15 Sec. 43.50.050. Transfer of licenses. A license is not assignable or
16 transferable. [HOWEVER IN THE CASE OF DEATH, BANKRUPTCY,
17 RECEIVERSHIP, OR INCOMPETENCY OF THE LICENSEE, OR IF THE
18 BUSINESS OF THE LICENSEE IS TRANSFERRED TO ANOTHER BY
19 OPERATION OF LAW, THE DEPARTMENT MAY EXTEND THE LICENSE FOR
20 A LIMITED TIME TO THE EXECUTOR, ADMINISTRATOR, TRUSTEE,
21 RECEIVER, OR THE TRANSFEREE.]
22 * Sec. 14. AS 43.50.070(a) is amended to read:
23 (a) The department may suspend, revoke, or refuse to renew a license issued
24 under this chapter (1) for a negligent violation of AS 11.76.100, 11.76.106, 11.76.107,
25 11.76.109, or a violation of this chapter or a regulation of the department adopted
26 under this chapter; (2) if a licensee ceases to act in the capacity for which the license
27 was issued; or (3) if a licensee negligently sells tobacco or products containing
28 tobacco to a person who is required to, but does not, hold a license endorsement under
29 AS 43.70.075 or whose license endorsement under AS 43.70.075 has been suspended.
30 A person whose license is suspended or revoked may not import cigarettes, sell
31 [CIGARETTES OR] tobacco products, or permit [CIGARETTES OR] tobacco
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1 products to be sold [,] during the period of the suspension or revocation on the
2 premises occupied or controlled by that person. A disciplinary proceeding or action is
3 not barred or abated by the expiration, transfer, surrender, renewal, or extension of a
4 license issued under this chapter. The department shall comply with the provisions of
5 AS 44.62 (Administrative Procedure Act), except that a hearing officer of the
6 department, rather than a hearing officer assigned under AS 44.62.350, may conduct
7 hearings.
8 * Sec. 15. AS 43.50.090(a) is amended to read:
9 (a) There is levied an excise tax of 38 mills on each cigarette imported [OR
10 ACQUIRED] in the state. The tax shall be paid through the use of stamps as provided
11 in AS 43.50.500 - 43.50.700. A person who imports [OR ACQUIRES] cigarettes in
12 the state on [UPON] which a stamp required by this chapter has not been affixed in
13 accordance with AS 43.50.500 - 43.50.700, who fails to apply to purchase stamps as
14 required by AS 43.50.540(a), and who fails to pay the tax through the use of stamps is
15 not relieved of the obligation to pay taxes due under this chapter. The person shall still
16 pay the tax, and the tax is due on or before the end of the month following the month
17 in which cigarettes were [MANUFACTURED,] imported into [, ACQUIRED, OR
18 SOLD IN] this state. [CIGARETTES UPON WHICH THE EXCISE IS IMPOSED
19 ARE NOT AGAIN SUBJECT TO THE EXCISE WHEN ACQUIRED BY
20 ANOTHER PERSON.]
21 * Sec. 16. AS 43.50.100(d) is amended to read:
22 (d) A person or licensee who is in control or possession of cigarettes contrary
23 to this chapter [OR WHO OFFERS TO SELL OR DISPOSE OF CIGARETTES TO
24 OTHERS FOR THE PURPOSE OF RESALE WITHOUT BEING LICENSED TO
25 DO SO] is considered to have possession of the cigarettes as an importer [A
26 CONSUMER] and is personally liable for the cigarette taxes imposed by this chapter,
27 plus a penalty of 100 percent.
28 * Sec. 17. AS 43.50.105(c) is amended to read:
29 (c) A common or contract carrier may not knowingly transport cigarettes to a
30 person in this state unless the person
31 (1) shipping the cigarettes is licensed under this chapter and, before
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1 shipment, provides the common or contract carrier with a copy of the person's current
2 license issued by the department and an affidavit from the intended recipient certifying
3 that the person receiving the cigarettes is a person described under (b) [(b)(1) - (5)] of
4 this section; or
5 (2) receiving the cigarettes is a person described under (a)(2) or (3) of
6 this section or is licensed under this chapter and, before receipt, provides the common
7 or contract carrier with a copy of the person's current license issued by the department.
8 * Sec. 18. AS 43.50.105(d) is amended to read:
9 (d) If the cigarettes are transported by a common or contract carrier to a home
10 or residence, it is rebuttably presumed that the common or contract carrier knew that
11 the person receiving the cigarettes was not a person described under (b) [(b)(1) - (5)]
12 of this section, unless the person shipping the cigarettes has satisfied the requirements
13 in (c)(1) of this section.
14 * Sec. 19. AS 43.50.105(e) is amended to read:
15 (e) A person, other than a common or contract carrier, may not knowingly
16 transport cigarettes to a person in this state, unless the person receiving the cigarettes
17 is a person described under (b) [(b)(1) - (5)] of this section.
18 * Sec. 20. AS 43.50.130(a) is amended to read:
19 (a) A licensee shall keep a complete and accurate record of all cigarettes
20 imported [MANUFACTURED, PURCHASED, OR ACQUIRED]. The records [,
21 EXCEPT IN THE CASE OF A MANUFACTURER,] must include a written
22 statement containing the name and address of the importer [SELLER AND THE
23 PURCHASER], the date of delivery, the quantity of cigarettes, and the trade name
24 and brand [, AND THE PRICE PAID FOR EACH BRAND OF CIGARETTES
25 PURCHASED]. The licensee shall keep such other records as the department
26 prescribes. All statements and records required by this section shall be in the form
27 prescribed by the department, shall be preserved for three years, and shall be offered
28 for inspection upon demand by the department.
29 * Sec. 21. AS 43.50.170 is repealed and reenacted to read:
30 Sec. 43.50.170. Definitions. In AS 43.50.010 - 43.50.180, unless the context
31 otherwise requires,
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1 (1) "cigarette" means a roll of tobacco wrapped in
2 (A) paper or another substance not containing tobacco; or
3 (B) a substance containing tobacco that, because of its
4 appe