A bill that adds a 45% excise tax on vaping systems and e-juice, or liquid tobacco, has passed the Senate.
Senate Bill 45 is expected to be heard in House committees next week but vape shop owners and some consumers say they would like to extinguish the bill before it becomes law.
A small group of protesters holding signs rallied against the bill outside the Westmark Hotel Friday, where the Alaska Republican Party was meeting for its annual convention.
David Parrott, owner of High Voltage Vapes on Sterling Highway in Soldotna, said he came to Fairbanks for the protest to raise awareness about the bill. Parrott said the bill’s 45% excise tax will drive up costs for consumers at the counter.
“Many of my customers are low- and middle-income people, and they cannot afford this,” Parrott said.
He described vaping as a safer alternative to smoking cigarettes.
“The state does not tax shot glasses and bar stools, but with this bill they tax all components of vaping,” from the liquid nicotine products to the smoking systems, Parrott said.
“Lawmakers are telling me they understand our point of view, but they are voting for the bill because it raises the tobacco use age to 21” from 19 in Alaska, he said.
Parrott said consumers are likely to head over to cannabis shops to buy their vaping systems, which will hurt his business.
A bust for old marijuana convictions
Gov. Mike Dunleavy has signaled his support for a bill that would keep many old marijuana possession records off of CourtView, the public online search engine that allows anyone to look up convictions and criminal charges in Alaska.
Dunleavy said on social media this week that he backs lawmakers’ “work to clear criminal records of Alaskans with low-level marijuana offenses. Alaskans should not be met with barriers for conduct that is no longer a crime under state law.”
Thousands of records may be impacted under the legislation.
At issue are the old records of Alaskans with marijuana-related infractions before cannabis was legalized in the state. Alaska was among the first states to decriminalize marijuana.
Many other states have addressed old marijuana convictions after legalizing cannabis. Alaska lawmakers seem ready to adopt similar legislation, and the governor has signaled he would sign a bill into law.
Records would stay confidential for most people who were over 21 when convicted for marijuana possession of less than one ounce.
Cruising and Covid vaccines
Several commercial cruise lines are taking steps to require passengers to show proof of vaccine before they can set sail for ports that include Alaska.
Aurora Expeditions now requires guests and crew to be vaccinated against Covid-19.
Carnival Cruise Line passengers will need to show proof that they have received their final Covid-19 vaccine at least two weeks before cruising. But masking is now optional.
Likewise Celebrity Cruises guests and staff must show proof of vaccination under a new policy that took effect April 15. The rule applies to all guests 5 years and older for U.S. sailings.
Alaska’s governor at the border
Gov. Mike Dunleavy has joined more than two dozen other governors who will coordinate efforts to stem illegal border crossings.
They say the effort will combat human smuggling and the flow of illegal drugs to their states.
Called the American Governors Border Strike Force, the initiative is to target criminal activities at U.S. borders.
Governors who signed on to the collaborative are from Alaska, Arizona, Alabama, Arkansas, Florida, Idaho, Georgia and Louisiana, among other states.
The Republican governors say their collaboration is a counterpoint to Democratic President Joe Biden’s border policies. The Biden administration is expected to end Title 42, a policy that enabled immigration agents to rapidly turn away migrants at U.S. borders.
Alaska and the future of natural gas
Alaska is among a dozen states where the Federal Energy Regulatory Commission (FERC) has approved liquefied natural gas (LNG) projects that have yet to be built, because they do not have investors or long-term customers, according to OilPrice.com.
The approved projects are in Kenai, Alaska, as well as Louisiana, Texas, Mississippi and Florida.
Demand is growing for LNG, but whether the expensive projects get developed is uncertain. European countries in particular are trying to wean themselves off of Russia’s natural gas over its aggression in Ukraine.
“Having European customers, especially if supported by public money, could easily create a huge tranche of LNG supply,” wrote Nikos Tsafos, a James R. Schlesinger chair in Energy and Geopolitics at the Center for Strategic and International Studies.
The 12 projects, including Alaska’s, need to lock in long-term deals, and that is a challenge, even as Germany, France and other countries look to the U.S. for natural gas supplies.
While dependent on fossil fuels, European nations are trying to move away from oil and gas altogether, which is creating uncertainty about future viability.
All of the new projects are planned with a 20-year investment horizon, reports OilPrice.com.