Bill Text: IA SF2427 | 2023-2024 | 90th General Assembly | Amended
Bill Title: A bill for an act relating to the duties and responsibilities of the department of revenue including sports wagering, the lottery, cigarette and tobacco taxes, alcoholic beverages, and including effective date provisions. (Formerly SSB 3179.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2024-04-19 - Message from House, with amendment S-5232. S.J. 950. [SF2427 Detail]
Download: Iowa-2023-SF2427-Amended.html
Senate
File
2427
-
Reprinted
SENATE
FILE
2427
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
3179)
(As
Amended
and
Passed
by
the
Senate
April
15,
2024
)
A
BILL
FOR
An
Act
relating
to
the
duties
and
responsibilities
of
the
1
department
of
revenue
including
sports
wagering,
the
2
lottery,
cigarette
and
tobacco
taxes,
alcoholic
beverages,
3
and
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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DIVISION
I
1
SPORTS
WAGERING
2
Section
1.
Section
99F.18,
Code
2024,
is
amended
to
read
as
3
follows:
4
99F.18
Tax
on
winnings.
5
1.
All
winnings
derived
from
slot
machines
operated
6
pursuant
to
this
chapter
are
Iowa
earned
income
and
are
subject
7
to
state
and
federal
income
tax
laws.
An
amount
deducted
from
8
winnings
for
payment
of
the
state
tax,
pursuant
to
section
9
422.16,
subsection
2
,
shall
be
remitted
to
the
department
of
10
revenue
on
behalf
of
the
winner.
11
2.
All
winnings
from
sports
wagering
authorized
under
this
12
chapter
are
Iowa
earned
income
and
subject
to
state
and
federal
13
income
tax
laws.
An
amount
deducted
from
winnings
for
payment
14
of
state
tax
pursuant
to
section
422.16,
subsection
2,
shall
be
15
remitted
to
the
department
of
revenue
on
behalf
of
the
winner.
16
Sec.
2.
Section
422.16,
subsection
2,
paragraph
d,
Code
17
2024,
is
amended
to
read
as
follows:
18
d.
For
the
purposes
of
this
subsection
,
state
income
tax
19
shall
be
withheld
on
winnings
in
excess
of
six
hundred
dollars
20
derived
from
gambling
activities
authorized
under
chapter
21
99B
or
99G
.
State
income
tax
shall
be
withheld
on
winnings
22
in
excess
of
one
thousand
dollars
from
gambling
activities
23
authorized
under
chapter
99D
.
State
income
tax
shall
be
24
withheld
on
winnings
in
excess
of
one
thousand
two
hundred
25
dollars
derived
from
slot
machines
authorized
under
chapter
26
99F.
State
income
tax
shall
be
withheld
on
winnings
from
27
sports
wagering
authorized
under
chapter
99F
whenever
federal
28
income
tax
is
required
to
be
withheld
from
the
same
winnings
in
29
accordance
with
the
Internal
Revenue
Code.
30
DIVISION
II
31
LOTTERY
32
Sec.
3.
Section
99G.3,
Code
2024,
is
amended
by
adding
the
33
following
new
subsections:
34
NEW
SUBSECTION
.
3A.
“Bona
fide
social
relationship”
means
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a
real,
genuine,
unfeigned
social
relationship
between
two
or
1
more
persons,
where
each
person
has
an
established
knowledge
of
2
the
other,
which
has
not
arisen
for
the
purpose
of
gambling.
3
NEW
SUBSECTION
.
9A.
“Lottery
courier”
means
a
person
who
4
offers
or
undertakes
to
procure
tickets
or
shares
in
lottery
5
games
from
a
lottery
retailer
on
behalf
of
another
person,
and
6
who
does
not
have
a
bona
fide
social
relationship
with
that
7
other
person.
8
Sec.
4.
Section
99G.24,
subsection
7,
Code
2024,
is
amended
9
by
adding
the
following
new
paragraph:
10
NEW
PARAGRAPH
.
j.
The
department
determines,
based
upon
11
available
information,
that
either
the
structure
or
activities
12
of
the
applicant’s
business
is
likely
to
violate
provisions
of
13
this
chapter,
or
any
regulation,
policy,
or
procedure
of
the
14
division.
15
Sec.
5.
Section
99G.30,
Code
2024,
is
amended
by
adding
the
16
following
new
subsections:
17
NEW
SUBSECTION
.
8.
A
person
shall
not
do
any
of
the
18
following:
19
a.
Act
or
operate
as
a
lottery
courier.
20
b.
Do
business
with
a
lottery
courier.
21
NEW
SUBSECTION
.
9.
A
retailer
shall
not
knowingly
sell
22
tickets
or
shares
in
a
lottery
game
to
any
of
the
following:
23
a.
A
lottery
courier.
24
b.
An
employee
or
agent
of
a
lottery
courier.
25
Sec.
6.
Section
99G.31,
subsection
3,
paragraph
g,
Code
26
2024,
is
amended
by
striking
the
paragraph
and
inserting
in
27
lieu
thereof
the
following:
28
g.
A
ticket
or
share
issued
by
the
division
shall
not
29
be
purchased
by
and
no
prize
shall
be
paid
to
any
of
the
30
following:
31
(1)
A
member
of
the
board.
32
(2)
An
officer
or
employee
of
the
department.
33
(3)
An
officer
or
employee
of
the
state
providing
services
34
to
the
department
to
administer
this
chapter
if
such
officer
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or
employee
has
access
to
confidential
information
which
may
1
compromise
the
integrity
of
the
lottery.
2
(4)
A
spouse,
child,
sibling,
or
parent
residing
as
a
member
3
of
the
same
household
in
the
principal
place
of
residence
of
4
any
person
described
in
subparagraphs
(1)
through
(3).
5
Sec.
7.
Section
99G.34,
Code
2024,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
9.
Ticket
order
history;
ticket
inventory;
8
or
any
records
that
if
disclosed
could
impair
or
adversely
9
impact
the
security,
integrity,
or
fairness
of
a
lottery
game
10
or
the
security
of
lottery
retailers.
11
DIVISION
III
12
CIGARETTE
AND
TOBACCO
TAXES
AND
REPORTS
——
ELECTRONIC
FILING
13
Sec.
8.
Section
453A.1,
subsection
27,
Code
2024,
is
amended
14
to
read
as
follows:
15
27.
“State
permit”
shall
mean
and
include
all
permits
issued
16
by
the
department
to
distributors,
wholesalers,
and
retailers
17
under
this
chapter
except
the
permits
issued
to
retailers
18
approved
by
cities
and
counties
pursuant
to
sections
453A.13
19
and
453A.47A
.
20
Sec.
9.
Section
453A.6,
subsection
8,
paragraph
a,
Code
21
2024,
is
amended
to
read
as
follows:
22
a.
Pay
directly
to
the
department,
in
lieu
of
the
tax
23
under
subsection
1
,
a
tax
equal
to
three
and
six
hundredths
24
cents
on
each
cigarette
dispensed
from
such
machine.
Payments
25
made
under
this
paragraph
shall
be
remitted
to
the
department
26
electronically.
27
Sec.
10.
Section
453A.8,
subsection
2,
Code
2024,
is
amended
28
to
read
as
follows:
29
2.
Orders
for
cigarette
tax
stamps,
including
the
payment
30
for
such
stamps,
shall
be
sent
direct
made
to
the
department
31
electronically
on
a
form
to
be
prescribed
by
the
director,
32
except
as
provided
in
subsection
6
.
33
Sec.
11.
Section
453A.13,
subsection
2,
paragraph
a,
Code
34
2024,
is
amended
to
read
as
follows:
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a.
The
department
shall
issue
state
permits
to
distributors,
1
wholesalers,
and
cigarette
vendors,
and
retailers
that
2
make
delivery
sales
of
alternative
nicotine
products
and
3
vapor
products,
subject
to
the
conditions
provided
in
this
4
subchapter
.
If
an
out-of-state
retailer
makes
delivery
5
sales
of
alternative
nicotine
products
or
vapor
products,
an
6
application
shall
be
filed
with
the
department
electronically
7
and
a
permit
shall
be
issued
for
the
out-of-state
retailer’s
8
principal
place
of
business.
Cities
may
issue
approve
retail
9
permits
to
retailers
permit
applications
for
applicants
with
10
a
place
of
business
located
within
their
respective
limits.
11
County
boards
of
supervisors
may
issue
approve
retail
permits
12
to
retailers
permit
applications
for
applicants
with
a
place
of
13
business
in
their
respective
counties,
outside
of
the
corporate
14
limits
of
cities.
Upon
approval
of
a
retail
permit
application
15
by
a
city
or
county,
the
department
shall
issue
the
permit
to
16
the
applicant
on
behalf
of
the
city
or
county,
in
the
manner
17
determined
by
the
department.
A
city
or
county
shall
use
the
18
electronic
portal
of
the
department
to
process
retail
permit
19
applications.
A
city
or
county
that
is
unable
to
use
the
20
electronic
portal
of
the
department
may
request
permission
from
21
the
director
to
process
retail
applications
by
another
method.
22
Sec.
12.
Section
453A.13,
subsection
2,
paragraph
c,
Code
23
2024,
is
amended
to
read
as
follows:
24
c.
A
city
or
county
shall
submit
a
duplicate
of
any
25
application
for
a
retail
permit
to
the
department
within
thirty
26
days
of
the
issuance.
The
department
shall
submit
the
current
27
list
of
all
retail
permits
issued
to
the
department
of
health
28
and
human
services
by
the
last
day
of
each
quarter
of
a
state
29
fiscal
year.
30
Sec.
13.
Section
453A.13,
subsection
3,
paragraph
a,
Code
31
2024,
is
amended
to
read
as
follows:
32
a.
All
permits
provided
for
in
this
subchapter
shall
expire
33
on
June
30
of
each
year.
A
permit
shall
not
be
granted
or
34
issued
until
the
applicant
has
paid
the
fees
to
the
department
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required
in
this
subchapter
for
the
next
period
ending
on
June
1
30
next,
to
the
department
or
the
city
or
county
granting
the
2
permit,
the
fees
provided
for
in
this
subchapter
.
The
annual
3
state
permit
fee
for
a
distributor,
cigarette
vendor,
and
4
wholesaler
is
one
hundred
dollars
when
the
permit
is
granted
5
during
the
months
of
July,
August,
or
September.
However,
6
whenever
a
state
permit
holder
operates
more
than
one
place
of
7
business,
a
duplicate
state
permit
shall
be
issued
for
each
8
additional
place
of
business
on
payment
of
five
dollars
for
9
each
duplicate
state
permit,
but
refunds
as
provided
in
this
10
subchapter
do
not
apply
to
any
duplicate
permit
issued.
11
Sec.
14.
Section
453A.13,
subsection
5,
unnumbered
12
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
13
Permits
shall
be
issued
only
upon
applications
accompanied
14
by
the
fee
indicated
above,
and
by
an
adequate
bond
as
provided
15
in
section
453A.14
,
and
upon
forms
furnished
by
the
department
16
upon
written
request
.
The
failure
to
furnish
such
forms
shall
17
be
no
excuse
for
the
failure
to
file
the
forms
unless
absolute
18
refusal
is
shown.
Applications,
any
supporting
documentation,
19
and
the
associated
fees
required
by
this
section
shall
be
20
submitted
to
the
department
electronically.
The
forms
shall
21
set
forth
all
of
the
following:
22
Sec.
15.
Section
453A.13,
subsection
9,
unnumbered
23
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
24
Each
permit
issued
shall
describe
clearly
the
place
of
25
business
for
which
it
is
issued,
shall
be
nonassignable,
26
consecutively
numbered,
designating
the
kind
of
permit,
and
27
shall
authorize
the
sale
of
cigarettes,
alternative
nicotine
28
products,
or
vapor
products
in
this
state
subject
to
the
29
limitations
and
restrictions
herein
contained.
The
retail
30
permits
shall
be
upon
forms
furnished
by
the
department
or
on
31
forms
made
available
or
approved
by
the
department
.
32
Sec.
16.
Section
453A.14,
subsection
1,
unnumbered
33
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
34
No
A
state
or
manufacturer’s
permit
shall
not
be
issued
until
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the
applicant
files
a
bond,
with
good
and
sufficient
surety,
1
to
be
approved
by
the
director,
which
bond
shall
be
in
favor
of
2
the
state
and
conditioned
upon
the
payment
of
taxes,
damages,
3
fines,
penalties,
and
costs
adjudged
against
the
permit
holder
4
for
violation
of
any
of
the
provisions
of
this
subchapter
.
The
5
bonds
shall
be
on
forms
prescribed
by
the
director
and
shall
be
6
filed
electronically.
A
bond
filed
under
this
section
shall
be
7
in
one
of
the
following
amounts:
8
Sec.
17.
Section
453A.14,
subsection
2,
Code
2024,
is
9
amended
to
read
as
follows:
10
2.
A
person
shall
not
engage
in
interstate
business
unless
11
the
person
files
a
bond,
with
good
and
sufficient
surety
in
an
12
amount
of
not
less
than
one
thousand
dollars.
A
bond
required
13
by
this
subsection
shall
be
on
forms
prescribed
by
the
director
14
and
shall
be
filed
electronically.
The
amount
of
the
bond
15
required
of
the
person
shall
be
fixed
by
the
director,
subject
16
to
the
minimum
limitation
provided
in
this
section
.
The
bond
17
is
subject
to
approval
by
the
director
and
shall
be
payable
to
18
the
state
in
Des
Moines,
Polk
county,
and
conditioned
upon
the
19
payment
of
taxes,
damages,
fines,
penalties,
and
costs
adjudged
20
against
the
person
for
violation
of
any
of
the
requirements
of
21
this
subchapter
affecting
the
person,
on
a
form
prescribed
by
22
the
director.
23
Sec.
18.
Section
453A.15,
subsection
7,
Code
2024,
is
24
amended
to
read
as
follows:
25
7.
The
director
may
require
by
rule
that
Any
reports
26
required
to
be
made
under
this
subchapter
shall
be
filed
by
27
electronic
transmission
electronically
.
28
Sec.
19.
Section
453A.16,
Code
2024,
is
amended
to
read
as
29
follows:
30
453A.16
Manufacturer’s
permit.
31
The
department
may,
upon
application
of
any
manufacturer,
32
issue
without
charge
to
the
manufacturer
a
manufacturer’s
33
permit.
The
application
shall
contain
information
as
34
the
director
shall
prescribe
and
the
application
shall
be
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submitted
to
the
department
electronically
.
The
holder
of
a
1
manufacturer’s
permit
is
authorized
to
purchase
stamps
from
2
the
department,
and
must
affix
stamps
to
individual
packages
3
of
cigarettes
outside
of
this
state,
prior
to
their
shipment
4
into
the
state
unless
the
cigarettes
are
shipped
to
an
Iowa
5
permitted
distributor
or
an
Iowa
permitted
distributor’s
agent.
6
Sec.
20.
Section
453A.17,
subsection
1,
Code
2024,
is
7
amended
to
read
as
follows:
8
1.
Every
distributing
agent
in
the
state,
now
engaged,
9
or
who
desires
to
become
engaged,
in
the
business
of
storing
10
unstamped
cigarettes
which
are
received
in
interstate
commerce
11
for
distribution
or
delivery
only
upon
order
received
from
12
without
the
state
or
to
be
sold
outside
the
state,
shall
13
file
with
the
department
electronically
,
an
application
for
14
a
distributing
agent’s
permit,
on
a
form
prescribed
by
the
15
director
,
to
be
furnished
upon
written
request
.
The
failure
16
to
furnish
shall
be
no
excuse
for
the
failure
to
file
the
same
17
unless
an
absolute
refusal
is
shown.
Said
form
shall
set
18
forth
the
name
under
which
such
distributing
agent
transacts
19
or
intends
to
transact
such
business
as
a
distributing
agent,
20
the
principal
office
and
place
of
business
in
Iowa
to
which
21
the
permit
is
to
apply,
and
if
other
than
an
individual,
the
22
principal
officers
or
members
thereof
and
their
addresses.
The
23
director
may
require
any
other
information
in
said
application.
24
No
distributing
agent
shall
engage
in
such
business
until
25
such
application
has
been
filed
and
fee
in
the
sum
of
one
26
hundred
dollars
paid
for
the
permit
and
until
the
permit
has
27
been
obtained.
Such
permit
shall
expire
on
June
30
following
28
the
date
of
issuance.
All
of
the
provisions
of
the
last
29
two
paragraphs
of
section
453A.14
,
relative
to
bonds,
are
30
incorporated
herein
and
by
this
reference
made
applicable
to
31
distributing
agents.
Upon
failure
to
furnish
adequate
bond
32
as
required,
the
permit
shall
be
revoked
without
hearing.
An
33
application
shall
be
filed
and
a
permit
obtained
for
each
place
34
of
business
owned
or
operated
by
a
distributing
agent.
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Sec.
21.
Section
453A.18,
Code
2024,
is
amended
to
read
as
1
follows:
2
453A.18
Forms
for
records
and
reports.
3
The
department
shall
furnish
or
make
available
in
electronic
4
form,
without
charge,
to
holders
of
the
various
permits,
forms
5
in
sufficient
quantities
to
enable
permit
holders
to
make
the
6
reports
required
to
be
made
under
this
subchapter
.
The
permit
7
holders
shall
furnish
at
their
own
expense
the
books,
records,
8
and
invoices,
required
to
be
used
and
kept,
but
the
books,
9
records,
and
invoices
shall
be
in
exact
conformity
to
the
forms
10
prescribed
for
that
purpose
by
the
director,
and
shall
be
kept
11
and
used
in
the
manner
prescribed
by
the
director.
However,
12
the
director
may,
by
express
order
in
certain
cases,
authorize
13
permit
holders
to
keep
their
records
in
a
manner
and
upon
forms
14
other
than
those
prescribed.
The
authorization
may
be
revoked
15
at
any
time.
A
report,
book,
record,
invoice,
and
any
other
16
document
required
to
be
submitted
to
the
department
under
this
17
subchapter
shall
be
submitted
electronically.
18
Sec.
22.
Section
453A.23,
subsections
1
and
2,
Code
2024,
19
are
amended
to
read
as
follows:
20
1.
Subject
to
this
subchapter
,
a
retailer’s
permit
may
be
21
issued
by
the
department
to
any
dining
car
company,
sleeping
22
car
company,
railroad
or
railway
company.
The
permit
shall
23
authorize
the
holder
to
keep
for
sale,
and
sell,
cigarettes
24
at
retail
on
any
dining
car,
sleeping
car,
or
passenger
car
25
operated
by
the
applicant
in,
through,
or
across
the
state
of
26
Iowa,
subject
to
all
of
the
restrictions
imposed
upon
retailers
27
under
this
subchapter
.
The
application
for
the
permit
shall
28
be
in
the
form
and
contain
the
information
required
by
the
29
director
and
each
application
submitted
under
this
section
30
shall
be
submitted
to
the
department
electronically
.
Each
31
permit
is
good
throughout
the
state.
Only
one
permit
is
32
required
for
all
cars
operated
in
this
state
by
the
applicant,
33
but
a
duplicate
of
the
permit
shall
be
posted
in
each
car
34
in
which
cigarettes
are
sold
and
no
further
permit
shall
be
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required
or
tax
levied
for
the
privilege
of
selling
cigarettes
1
in
the
cars.
No
cigarettes
Cigarettes
shall
not
be
sold
in
2
the
cars
without
having
affixed
thereto
stamps
evidencing
the
3
payment
of
the
tax
as
provided
in
this
subchapter
.
4
2.
As
a
condition
precedent
to
the
issuing
of
a
retailer’s
5
permit
for
railway
car,
the
applicant
shall
file
with
the
6
department
a
bond
in
favor
of
the
state
for
the
benefit
of
7
all
parties
interested
in
the
amount
of
five
hundred
dollars
8
conditioned
upon
the
payment
of
all
taxes,
fines
and
penalties
9
and
costs
in
this
subchapter
.
A
bond
filed
under
this
10
subsection
shall
be
on
forms
prescribed
by
the
director
and
11
shall
be
filed
electronically.
12
Sec.
23.
Section
453A.24,
subsection
2,
Code
2024,
is
13
amended
to
read
as
follows:
14
2.
The
director
may
require
by
rule
that
common
carriers
15
or
the
appropriate
persons
provide
monthly
reports
to
the
16
department
detailing
all
information
the
department
deems
17
necessary
on
shipments
into
and
out
of
Iowa
of
cigarettes
18
and
tobacco
products
as
set
forth
in
this
subchapter
I
and
19
subchapter
II
of
this
chapter
.
The
director
may
require
by
20
rule
that
the
reports
A
report
required
to
be
submitted
by
the
21
director
pursuant
to
this
section
shall
be
filed
by
electronic
22
transmission
electronically
.
23
Sec.
24.
Section
453A.35,
subsection
1,
paragraph
a,
Code
24
2024,
is
amended
to
read
as
follows:
25
a.
With
the
exception
of
revenues
credited
to
the
health
26
care
trust
fund
pursuant
to
paragraph
“b”
,
the
proceeds
derived
27
from
the
sale
of
stamps
and
the
payment
of
fees
and
penalties
28
provided
for
under
this
chapter
,
and
the
permit
fees
received
29
from
all
state
permits
issued
by
the
department,
shall
be
30
credited
to
the
general
fund
of
the
state.
31
Sec.
25.
Section
453A.35,
subsection
2,
Code
2024,
is
32
amended
to
read
as
follows:
33
2.
All
permit
fees
provided
for
in
this
chapter
and
34
collected
by
the
department
on
behalf
of
cities
in
the
issuance
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of
permits
granted
by
the
cities
shall
be
paid
remitted
by
1
the
department
to
the
treasurer
of
the
city
where
the
permit
2
is
effective,
or
to
another
city
officer
as
designated
by
the
3
council,
and
shall
be
credited
to
the
general
fund
of
the
4
city.
Permit
fees
so
collected
by
the
department
on
behalf
of
5
counties
shall
be
paid
remitted
to
the
county
treasurer
of
the
6
county
where
the
permit
is
effective
.
7
Sec.
26.
Section
453A.39,
subsection
2,
paragraph
a,
Code
8
2024,
is
amended
to
read
as
follows:
9
a.
All
cigarette
samples
shall
be
shipped
only
to
a
10
distributor
that
has
a
permit
to
stamp
cigarettes
or
little
11
cigars
with
Iowa
tax.
All
cigarette
samples
must
have
a
12
cigarette
stamp.
The
manufacturer
shipping
samples
under
this
13
section
shall
send
an
affidavit
to
the
director
stating
the
14
shipment
information,
including
the
date
shipped,
quantity,
and
15
to
whom
the
samples
were
shipped.
The
distributor
receiving
16
the
shipment
shall
send
an
affidavit
to
the
director
stating
17
the
shipment
information,
including
the
date
shipped,
quantity,
18
and
from
whom
the
samples
were
shipped.
These
affidavits
shall
19
be
duly
notarized
and
submitted
to
the
director
at
the
time
of
20
shipment
and
receipt
of
the
samples.
The
distributor
shall
21
pay
the
tax
on
samples
by
separate
remittance
along
with
the
22
affidavit.
The
affidavit
and
remittance
required
under
this
23
paragraph
shall
be
submitted
to
the
department
electronically.
24
Sec.
27.
Section
453A.40,
subsection
2,
Code
2024,
is
25
amended
to
read
as
follows:
26
2.
Persons
subject
to
the
inventory
tax
imposed
under
this
27
section
shall
take
an
inventory
as
of
the
close
of
the
business
28
day
next
preceding
the
effective
date
of
the
increased
tax
rate
29
of
those
items
subject
to
the
inventory
tax
for
the
purpose
of
30
determining
the
tax
due.
These
persons
shall
report
the
tax
31
on
forms
provided
by
the
department
of
revenue
and
remit
the
32
tax
due
within
thirty
days
of
the
prescribed
inventory
date.
33
The
report
and
remittance
required
under
this
subsection
shall
34
be
submitted
to
the
department
electronically.
The
department
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of
revenue
shall
adopt
rules
as
are
necessary
to
carry
out
this
1
section
.
2
Sec.
28.
NEW
SECTION
.
453A.41
Submitting
documents
——
3
alternative
method.
4
A
person
subject
to
this
subchapter
who
is
required
to
submit
5
an
application,
bond,
fee,
report,
return,
remittance,
or
other
6
documentation
electronically
and
who
is
unable
to
do
so,
may
7
request
permission
from
the
director
to
make
the
submission
8
using
an
alternative
method.
9
Sec.
29.
Section
453A.45,
subsection
5,
paragraphs
b
and
c,
10
Code
2024,
are
amended
to
read
as
follows:
11
b.
The
report
shall
be
made
on
forms
provided
by
the
12
director.
The
director
may
require
by
rule
that
the
A
report
13
required
under
this
subsection
shall
be
filed
by
electronic
14
transmission
electronically
.
15
c.
Common
carriers
transporting
tobacco
products
into
16
this
state
shall
file
with
the
director
reports
of
all
such
17
shipments
other
than
those
which
are
delivered
to
public
18
warehouses
of
first
destination
in
this
state
which
are
19
licensed
under
the
provisions
of
chapter
554
.
Such
reports
20
shall
be
filed
electronically
with
the
department
on
or
before
21
the
tenth
day
of
each
month
and
shall
show
with
respect
to
22
deliveries
made
in
the
preceding
month
all
of
the
following:
23
(1)
The
date.
24
(2)
The
point
of
origin.
25
(3)
The
point
of
delivery.
26
(4)
The
name
of
the
consignee.
27
(5)
A
description
and
the
quantity
of
tobacco
products
28
delivered.
29
(6)
Such
other
information
as
the
director
may
require.
30
Sec.
30.
Section
453A.46,
subsection
1,
paragraph
a,
31
subparagraph
(1),
Code
2024,
is
amended
to
read
as
follows:
32
(1)
On
or
before
the
twentieth
day
of
each
calendar
month
33
every
distributor
with
a
place
of
business
in
this
state
shall
34
file
a
return
with
the
director
showing
for
the
preceding
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calendar
month
the
quantity
and
wholesale
sales
price
of
each
1
tobacco
product
brought,
or
caused
to
be
brought,
into
this
2
state
for
sale;
made,
manufactured,
or
fabricated
in
this
state
3
for
sale
in
this
state;
and
any
other
information
the
director
4
may
require.
Every
licensed
distributor
outside
this
state
5
shall
in
like
manner
file
a
return
with
the
director
showing
6
for
the
preceding
calendar
month
the
quantity
and
wholesale
7
sales
price
of
each
tobacco
product
shipped
or
transported
to
8
retailers
in
this
state
to
be
sold
by
those
retailers
and
any
9
other
information
the
director
may
require.
Returns
shall
10
be
made
upon
forms
furnished
or
made
available
in
electronic
11
form
and
prescribed
by
the
director
and
shall
contain
other
12
information
as
the
director
may
require.
Each
return
shall
be
13
accompanied
by
a
remittance
for
the
full
tax
liability
shown
14
on
the
return,
less
a
discount
as
fixed
by
the
director
not
to
15
exceed
five
percent
of
the
tax.
Within
three
years
after
the
16
return
is
filed
or
within
three
years
after
the
return
became
17
due,
whichever
is
later,
the
department
shall
examine
it,
18
determine
the
correct
amount
of
tax,
and
assess
the
tax
against
19
the
taxpayer
for
any
deficiency.
The
period
for
examination
20
and
determination
of
the
correct
amount
of
tax
is
unlimited
in
21
the
case
of
a
false
or
fraudulent
return
made
with
the
intent
22
to
evade
tax,
or
in
the
case
of
a
failure
to
file
a
return.
23
Sec.
31.
Section
453A.46,
subsection
7,
Code
2024,
is
24
amended
by
striking
the
subsection
and
inserting
in
lieu
25
thereof
the
following:
26
7.
A
return
and
remittance
required
to
be
submitted
under
27
this
subchapter
shall
be
filed
electronically.
28
Sec.
32.
Section
453A.47A,
subsection
6,
Code
2024,
is
29
amended
to
read
as
follows:
30
6.
Issuance.
Cities
may
issue
approve
retail
permits
31
to
permit
applications
of
retailers
located
within
their
32
respective
limits.
County
boards
of
supervisors
may
issue
33
approve
retail
permits
to
permit
applications
of
retailers
34
located
in
their
respective
counties,
outside
of
the
corporate
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limits
of
cities.
The
city
or
county
shall
submit
a
duplicate
1
of
any
application
for
a
retail
permit
to
the
department
within
2
thirty
days
of
issuance
of
a
permit.
Upon
approval
of
a
retail
3
permit
application
by
a
city
or
county,
the
department
shall
4
issue
the
permit
to
the
applicant
on
behalf
of
the
city
or
5
county,
in
the
manner
determined
by
the
department.
A
city
6
or
county
shall
use
the
electronic
portal
of
the
department
7
to
process
retail
permit
applications.
A
city
or
county
that
8
is
unable
to
use
the
electronic
portal
of
the
department
9
may
request
permission
from
the
director
to
process
retail
10
applications
by
another
method.
The
department
shall
submit
11
the
current
list
of
all
retail
permits
issued
to
the
department
12
of
health
and
human
services
by
the
last
day
of
each
quarter
of
13
a
state
fiscal
year.
14
Sec.
33.
Section
453A.47A,
subsection
7,
paragraph
a,
15
unnumbered
paragraph
1,
Code
2024,
is
amended
to
read
as
16
follows:
17
All
permits
provided
for
in
this
subchapter
shall
expire
on
18
June
30
of
each
year.
A
permit
shall
not
be
granted
or
issued
19
until
the
applicant
has
paid
the
fees
provided
for
to
the
20
department
required
in
this
section
for
the
next
period
ending
21
on
June
30
next,
to
the
city
or
county
granting
the
permit
.
The
22
fee
for
retail
permits
is
as
follows
when
the
permit
is
granted
23
during
the
month
of
July,
August,
or
September:
24
Sec.
34.
Section
453A.47A,
subsection
9,
unnumbered
25
paragraph
1,
Code
2024,
is
amended
to
read
as
follows:
26
Retail
permits
shall
be
issued
only
upon
applications,
27
accompanied
by
the
fee
indicated
above,
made
upon
forms
28
furnished
by
the
department
upon
written
request
.
The
failure
29
to
furnish
such
forms
shall
be
no
excuse
for
the
failure
to
30
file
the
form
unless
absolute
refusal
is
shown.
Applications,
31
any
supporting
documentation,
and
the
associated
fees
32
required
by
this
section
shall
be
submitted
to
the
department
33
electronically.
The
forms
shall
specify:
34
Sec.
35.
Section
453A.47A,
subsection
10,
paragraph
b,
Code
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is
amended
to
read
as
follows:
1
b.
Every
retailer
shall,
when
requested
by
the
department,
2
make
additional
reports
as
the
department
deems
necessary
and
3
proper
and
shall
at
the
request
of
the
department
furnish
full
4
and
complete
information
pertaining
to
any
transaction
of
the
5
retailer
involving
the
purchase
or
sale
or
use
of
tobacco,
6
tobacco
products,
alternative
nicotine
products,
or
vapor
7
products.
A
report
required
to
be
submitted
to
the
department
8
pursuant
to
this
subsection
shall
be
filed
electronically.
9
Sec.
36.
NEW
SECTION
.
453A.52
Submitting
documents
——
10
alternative
method.
11
A
person
subject
to
this
subchapter
who
is
required
to
submit
12
an
application,
bond,
fee,
report,
return,
remittance,
or
other
13
documentation
electronically
and
who
is
unable
to
do
so,
may
14
request
permission
from
the
director
to
make
the
submission
15
using
an
alternative
method.
16
Sec.
37.
Section
453C.1,
subsection
10,
Code
2024,
is
17
amended
to
read
as
follows:
18
10.
“Units
sold”
means
the
number
of
individual
cigarettes
19
sold
in
the
state
by
the
applicable
tobacco
product
20
manufacturer,
whether
directly
or
through
a
distributor,
21
retailer,
or
similar
intermediary
or
intermediaries,
during
the
22
year
in
question,
as
measured
by
excise
taxes
collected
by
the
23
state
on
in
packs
bearing
required
to
bear
the
excise
stamp
of
24
the
state
or
on
in
the
case
of
roll-your-own
tobacco
containers
25
on
which
a
tax
is
due
pursuant
to
chapter
453A
.
The
department
26
of
revenue
shall
adopt
rules
as
are
necessary
to
ascertain
27
the
amount
of
state
excise
tax
paid
on
the
cigarettes
of
such
28
tobacco
product
manufacturer
for
each
year.
29
Sec.
38.
Section
453D.5,
subsection
1,
Code
2024,
is
amended
30
to
read
as
follows:
31
1.
No
later
than
twenty
calendar
days
after
the
end
of
32
each
calendar
quarter,
and
more
frequently
if
so
directed
by
33
the
director,
each
stamping
agent
and
distributor
shall
submit
34
information
as
the
director
requires
to
facilitate
compliance
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with
this
chapter
,
including
but
not
limited
to
a
list
by
brand
1
family
of
the
total
number
of
cigarettes,
or,
in
the
case
of
2
roll-your-own
tobacco,
the
equivalent
stick
count,
for
which
3
the
stamping
agent
or
distributor
affixed
stamps
during
the
4
previous
calendar
quarter
or
otherwise
paid
the
tax
due
for
5
the
cigarettes.
The
stamping
agent
and
distributor
shall
6
maintain,
and
make
available
to
the
director,
all
invoices
and
7
documentation
of
sales
of
all
nonparticipating
manufacturer
8
cigarettes
and
any
other
information
relied
upon
in
reporting
9
to
the
director
for
a
period
of
five
years.
Violations
of
this
10
subsection
are
subject
to
civil
penalties
as
established
in
11
section
453A.31,
subsection
1
,
paragraph
“b”
.
Any
information
12
submitted
pursuant
to
this
subsection
shall
be
submitted
to
the
13
director
electronically.
14
Sec.
39.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
15
effect
January
1,
2025,
for
returns,
payments,
remittances,
16
reports,
books,
records,
invoices,
and
any
other
document
17
required
to
be
electronically
filed
with
or
submitted
to
the
18
department
on
or
after
that
date.
19
DIVISION
IV
20
ALCOHOLIC
BEVERAGES
21
Sec.
40.
Section
123.3,
subsections
10
and
32,
Code
2024,
22
are
amended
to
read
as
follows:
23
10.
“Canned
cocktail”
means
a
mixed
drink
or
cocktail
24
primarily
composed
of
alcoholic
liquor
that
is
premixed
and
25
packaged
in
a
metal
can
and
contains
more
than
one-half
of
one
26
percent
of
alcohol
by
volume
but
not
more
than
fifteen
percent
27
of
alcohol
by
volume.
A
mixed
drink
or
cocktail
mixed
and
28
packaged
in
a
metal
can
pursuant
to
section
123.49,
subsection
29
2
,
paragraph
“d”
,
subparagraph
(3),
shall
not
be
considered
a
30
canned
cocktail.
31
32.
“Mixed
drink
or
cocktail”
means
an
alcoholic
beverage,
32
composed
in
whole
or
in
part
of
alcoholic
liquor
or
wine
,
that
33
is
combined
with
other
alcoholic
beverages
or
nonalcoholic
34
beverages
or
ingredients
including
but
not
limited
to
ice,
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water,
soft
drinks,
or
flavorings.
1
Sec.
41.
Section
123.5,
subsection
3,
Code
2024,
is
amended
2
to
read
as
follows:
3
3.
Members
of
the
commission
shall
be
chosen
on
the
basis
4
of
managerial
ability
and
experience
as
business
executives.
5
Not
more
than
two
members
of
the
commission
may
be
the
holder
6
of
or
have
an
interest
in
a
permit
or
license
to
manufacture
7
alcoholic
liquor,
wine,
or
beer
or
to
sell
alcoholic
liquor,
8
wine,
or
beer
at
wholesale
or
retail
directly
or
indirectly;
9
individually;
as
a
member
of
a
partnership
or
an
association;
10
as
a
member,
owner,
or
stockholder,
except
as
an
institutional
11
investor,
of
a
corporation
or
other
entity;
or
as
a
relative
to
12
a
person
by
blood
or
marriage
within
the
second
degree
do
any
13
of
the
following:
14
a.
Hold
a
permit
or
license
to
manufacture
alcoholic
15
beverages
or
sell
alcoholic
beverages
at
wholesale
or
retail
.
16
b.
Have
an
interest
in
the
manufacture
of
or
dealing
in
17
alcoholic
beverages
or
in
an
enterprise
or
industry
in
which
18
alcoholic
beverages
are
required.
19
c.
Receive
a
commission
or
profit
on
the
purchase
or
sale
of
20
alcoholic
beverages
by
any
person.
21
d.
Have
an
interest
in
or
mortgage
or
deed
of
trust
on
any
22
land
or
building
where
alcoholic
beverages
are
manufactured
for
23
sale,
offered
for
sale,
or
sold
or
in
any
personal
property
24
used
for
the
manufacturing
or
sale
of
alcoholic
beverages.
25
Sec.
42.
Section
123.5,
Code
2024,
is
amended
by
adding
the
26
following
new
subsections:
27
NEW
SUBSECTION
.
3A.
In
addition
to
the
requirements
of
28
chapter
68B,
members
of
the
commission
shall
not
do
any
of
the
29
following:
30
a.
Hold
any
other
office
or
position
under
the
laws
of
this
31
state,
or
any
other
state
or
territory
or
of
the
United
States.
32
b.
Directly
or
indirectly
use
the
office
of
the
member
33
to
influence,
persuade,
or
induce
any
person
to
adopt
their
34
political
views
or
to
favor
any
particular
candidate
for
an
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elective
or
appointive
public
office.
1
c.
Directly
or
indirectly,
solicit
or
accept,
in
any
manner
2
or
way,
any
money
or
other
thing
of
value
for
any
person
3
seeking
an
elective
or
appointive
public
office,
or
to
any
4
political
party
or
any
group
of
persons
seeking
to
become
a
5
political
party.
6
NEW
SUBSECTION
.
6.
This
section
does
not
prohibit
a
7
commission
member
from
lawfully
purchasing
and
keeping
8
alcoholic
beverages
in
the
possession
of
the
commission
member.
9
Sec.
43.
Section
123.13,
Code
2024,
is
amended
by
striking
10
the
section
and
inserting
in
lieu
thereof
the
following:
11
123.13
Prohibitions
——
director
and
employees.
12
1.
For
purposes
of
this
section,
“director”
means
the
13
director
of
the
department.
14
2.
The
requirements
of
this
section
are
in
addition
to
the
15
requirements
of
chapter
68B.
16
3.
The
director
shall
not
directly
or
indirectly;
17
individually;
as
a
member
of
a
partnership
or
an
association;
18
as
a
member,
owner,
or
stockholder,
except
as
an
institutional
19
investor
of
a
corporation
or
other
entity;
or
as
a
relative
to
20
a
person
by
blood
or
marriage
within
the
second
degree
do
any
21
of
the
following:
22
a.
Have
an
interest
in
the
manufacture
of
or
dealing
in
23
alcoholic
beverages,
or
in
an
enterprise
or
industry
in
which
24
alcoholic
beverages
are
required.
25
b.
Receive
a
commission
or
profit
from
the
purchase
or
sale
26
of
an
alcoholic
beverage
by
any
person.
27
c.
Have
an
interest
in,
or
mortgage
or
deed
of
trust
on,
any
28
land
or
building
where
alcoholic
beverages
are
manufactured
for
29
sale,
offered
for
sale,
or
sold,
or
in
any
personal
property
30
used
in
the
manufacture
or
sale
of
alcoholic
beverages.
31
4.
An
employee
of
the
department
shall
not
license,
permit,
32
or
participate
in
the
licensing
or
permitting
of
a
person,
33
business,
or
organization
that
requires
a
license
or
permit
34
under
the
laws
and
rules
governing
alcoholic
beverages,
if
the
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employee
has
an
ownership
interest
related
to
that
person,
1
business,
or
organization.
2
5.
An
employee
of
the
department
shall
not
enforce
any
3
law
or
rule
governing
alcoholic
beverages
against
a
person,
4
business,
or
organization
that
requires
a
license
or
permit
5
under
the
laws
and
rules
governing
alcoholic
beverages,
if
the
6
employee
has
an
ownership
interest
related
to
that
person,
7
business,
or
organization.
8
6.
The
director
or
an
employee
violating
this
section
or
9
any
other
provisions
of
this
chapter
shall,
in
addition
to
any
10
other
penalties
provided
by
law,
be
subject
to
suspension
or
11
discharge
from
employment.
12
7.
This
section
does
not
prohibit
the
director
or
an
13
employee
of
the
department
from
lawfully
purchasing
and
keeping
14
alcoholic
beverages
in
the
possession
of
the
director
or
the
15
employee.
16
Sec.
44.
Section
123.30,
subsection
3,
paragraph
b,
17
subparagraph
(2),
subparagraph
division
(c),
Code
2024,
is
18
amended
to
read
as
follows:
19
(c)
The
holder
of
a
special
class
“C”
retail
alcohol
20
license
shall
be
authorized
to
sell
wine
and
beer
to
patrons
21
by
the
individual
drink
for
consumption
on
the
premises
only.
22
However,
wine
and
beer
in
original
unopened
containers
may
also
23
be
sold
for
consumption
off
the
premises.
In
addition,
a
mixed
24
drink
or
cocktail
that
does
not
contain
alcoholic
liquor
may
be
25
sold
for
consumption
off
premises
subject
to
the
requirements
26
of
section
123.49,
subsection
2,
paragraph
“d”
.
27
Sec.
45.
Section
123.31C,
subsection
1,
Code
2024,
is
28
amended
to
read
as
follows:
29
1.
A
person
holding
a
special
class
“C”
retail
native
30
wine
license
may
sell
beer
and
native
wine
only
at
retail
for
31
consumption
on
or
off
the
premises.
Sales
of
beer
and
native
32
wine
for
consumption
off
the
premises
made
pursuant
to
this
33
section
shall
be
made
in
original
containers
except
as
provided
34
in
subsection
5
.
A
sale
of
a
mixed
drink
or
cocktail
that
does
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not
contain
alcoholic
liquor
may
be
sold
for
consumption
off
1
the
premises
subject
to
the
requirements
of
section
123.49,
2
subsection
2,
paragraph
“d”
.
3
Sec.
46.
Section
123.39,
subsection
1,
paragraph
b,
4
subparagraph
(3),
Code
2024,
is
amended
to
read
as
follows:
5
(3)
Any
change
in
the
ownership
or
interest
in
the
business
6
operated
under
a
retail
alcohol
license
,
permit,
or
certificate
7
of
compliance
which
change
was
changes
were
not
previously
8
reported
in
a
manner
prescribed
by
the
director
within
thirty
9
forty-five
days
of
the
change
and
subsequently
approved
by
the
10
local
authority,
when
applicable,
and
the
department.
11
Sec.
47.
Section
123.49,
subsection
2,
paragraph
d,
12
subparagraph
(3),
Code
2024,
is
amended
to
read
as
follows:
13
(3)
Mixed
drinks
or
cocktails
mixed
on
premises
covered
by
14
a
class
“C”
or
special
class
“C”
retail
alcohol
license
,
or
a
15
special
class
“C”
retail
native
wine
license,
for
consumption
16
off
the
licensed
premises
may
be
sold
if
the
mixed
drink
or
17
cocktail
is
immediately
filled
in
a
sealed
container
and
is
18
promptly
taken
from
the
licensed
premises
prior
to
consumption
19
of
the
mixed
drink
or
cocktail.
A
mixed
drink
or
cocktail
20
that
is
sold
in
a
sealed
container
in
compliance
with
the
21
requirements
of
this
subparagraph
and
rules
adopted
by
the
22
department
shall
not
be
deemed
an
open
container
subject
to
the
23
requirements
of
sections
321.284
and
321.284A
if
the
sealed
24
container
is
unopened
and
the
seal
has
not
been
tampered
with,
25
and
the
contents
of
the
container
have
not
been
partially
26
removed.
27
Sec.
48.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
28
deemed
of
immediate
importance,
takes
effect
upon
enactment.
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