Bill Text: IA SF363 | 2021-2022 | 89th General Assembly | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: A bill for an act relating to the regulation of certain tobacco products, and providing penalties. (Formerly SF 226, SF 43.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2021-12-31 - END OF [] ACTIONS [SF363 Detail]
Download: Iowa-2021-SF363-Introduced.html
Bill Title: A bill for an act relating to the regulation of certain tobacco products, and providing penalties. (Formerly SF 226, SF 43.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2021-12-31 - END OF [] ACTIONS [SF363 Detail]
Download: Iowa-2021-SF363-Introduced.html
Senate
File
363
-
Introduced
SENATE
FILE
363
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SF
226)
(SUCCESSOR
TO
SF
43)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
certain
tobacco
products,
1
and
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
453E.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Business”
means
any
trade,
occupation,
activity,
4
or
enterprise
engaged
in
for
the
purpose
of
selling
or
5
distributing
tobacco
products
and
devices
in
this
state.
6
2.
“Consumer”
means
any
person
who
has
title
to
or
7
possession
of
devices
in
storage,
for
use
or
other
consumption
8
in
this
state.
9
3.
“Controlled
substance”
means
controlled
substance
as
10
defined
in
section
124.101.
11
4.
“Delivery
sale”
means
any
sale
of
a
device
to
a
purchaser
12
in
this
state
where
the
purchaser
submits
the
order
for
13
such
sale
by
means
of
a
telephonic
or
other
method
of
voice
14
transmission,
mail
or
any
other
delivery
service,
or
the
15
internet
or
other
online
service
and
the
device
is
delivered
by
16
use
of
mail
or
a
delivery
service.
The
sale
of
a
device
shall
17
constitute
a
delivery
sale
regardless
of
whether
the
seller
is
18
located
in
this
state.
“Delivery
sale”
does
not
include
a
sale
19
to
a
distributor
or
retailer
of
a
device
not
for
personal
use.
20
5.
“Department”
means
the
department
of
revenue.
21
6.
a.
“Device”
means
any
equipment
or
product,
made
in
22
whole
or
in
part
of
glass
or
metal,
that
is
designed
for
use
23
in
inhaling
through
combustion
tobacco,
hemp,
other
plant
24
materials,
or
a
controlled
substance.
“Device”
does
not
25
include
a
vapor
product
or
a
tobacco
smoking
product
made
of
26
briar,
meerschaum,
clay,
or
corn
cob
and
not
having
a
surface,
27
aperture,
or
other
feature
consisting
of
metal
or
glass.
28
b.
In
determining
whether
any
particular
item
constitutes
a
29
“device”
,
the
following
factors
may
be
considered:
30
(1)
The
instructions,
oral
or
written,
provided
with
the
31
item
concerning
its
use.
32
(2)
Any
descriptive
materials
accompanying
the
item
which
33
explain
or
depict
its
use.
34
(3)
National
and
local
advertising
concerning
the
item’s
35
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use.
1
(4)
The
manner
in
which
the
item
is
displayed
for
sale.
2
(5)
Whether
the
owner
of
the
place
of
business,
or
anyone
in
3
control
of
the
item
at
the
place
of
business,
is
a
legitimate
4
supplier
of
like
or
related
items
to
the
community,
such
as
a
5
licensed
distributor,
manufacturer,
or
subjobber.
6
(6)
Direct
or
circumstantial
evidence
of
the
ratio
of
sales
7
of
the
item
to
the
total
sales
of
the
place
of
business.
8
(7)
The
existence
and
scope
of
legitimate
uses
of
the
item
9
in
the
community.
10
(8)
Expert
testimony
concerning
the
item’s
use.
11
c.
A
particular
item
may
constitute
a
device
notwithstanding
12
any
lawful
use
of
the
item.
13
7.
“Device
retailer”
means
a
person
engaged
in
the
retail
14
sale
of
tangible
personal
property
who
is
also
engaged
in
15
selling
devices
to
the
ultimate
consumer.
16
8.
“Director”
means
the
director
of
revenue.
17
9.
“Distributor”
means
the
same
as
defined
in
section
18
453A.42.
19
10.
“Manufacturer”
means
the
same
as
defined
in
section
20
453A.42.
21
11.
“Place
of
business”
means
any
place
where
tobacco
22
products
and
devices
are
sold,
stored,
or
kept
for
the
purpose
23
of
sale
or
consumption;
or
for
a
business
within
or
without
the
24
state
that
conducts
delivery
sales,
any
place
where
tobacco
25
products
and
devices
are
sold
or
are
kept
for
the
purpose
of
26
sale,
including
delivery
sales.
27
12.
“Retail
outlet”
means
each
place
of
business
from
which
28
tobacco
products
and
devices
are
sold
to
consumers.
29
13.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
30
any
manner
or
by
any
means
whatsoever,
for
consideration,
and
31
includes
and
means
all
sales
made
by
any
person.
32
14.
“Subjobber”
means
the
same
as
defined
in
section
33
453A.42.
34
15.
“Tobacco
products”
means
cigars;
little
cigars;
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cheroots;
stogies;
periques;
granulated,
plug
cut,
crimp
cut,
1
ready
rubbed,
and
other
smoking
tobacco;
snuff;
cavendish;
2
plug
and
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
3
shorts;
refuse
scraps,
clippings,
cuttings
and
sweepings
of
4
tobacco,
and
other
kinds
and
forms
of
tobacco,
prepared
in
5
such
manner
as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
6
or
otherwise,
or
both
for
chewing
and
smoking;
but
shall
not
7
include
cigarettes
as
defined
in
section
453A.1.
8
16.
“Tobacco
retailer”
means
a
retailer
as
defined
in
9
section
453A.42.
10
17.
“Use”
means
the
exercise
of
any
right
or
power
11
incidental
to
the
ownership
of
tobacco
products
or
devices.
12
18.
“Vapor
product”
means
the
same
as
defined
in
section
13
453A.1.
14
Sec.
2.
NEW
SECTION
.
453E.2
Administration
——
rules
——
15
intent.
16
1.
The
director
shall
administer
this
chapter.
The
director
17
shall
collect,
supervise,
and
enforce
the
collection
of
all
18
fees,
taxes,
and
civil
penalties
imposed
under
this
chapter.
19
2.
The
director
may
adopt
rules
pursuant
to
chapter
17A
that
20
are
necessary
to
enforce
this
chapter.
21
3.
The
director
may
designate
employees
to
administer
22
and
enforce
the
provisions
of
this
chapter,
including
the
23
collection
of
all
taxes
provided
for
in
this
chapter.
In
the
24
enforcement,
the
director
may
request
aid
from
the
attorney
25
general,
the
special
agents
of
the
state,
any
county
attorney,
26
or
any
peace
officer.
The
director
may
appoint
clerks
and
27
additional
help
as
may
be
needed
to
administer
this
chapter.
28
4.
This
chapter
or
the
holding
of
a
device
retailer
permit
29
or
a
device
delivery
sale
permit
under
this
chapter
shall
not
30
be
construed
to
provide
for
any
of
the
following:
31
a.
Immunity
from
prosecution
or
the
limitation
of
the
32
application
of
other
state
law
and
regulations
governing
33
tobacco
products,
drug
paraphernalia,
or
controlled
substances.
34
b.
Authorization
for
the
possession,
marketing,
offering
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for
sale,
or
selling
of
a
device,
the
possession,
marketing,
1
offering
for
sale,
or
selling
of
which
is
otherwise
prohibited
2
by
state
or
federal
law.
3
Sec.
3.
NEW
SECTION
.
453E.3
Device
retailers
——
permits
——
4
fees.
5
1.
Permits
required.
A
person
shall
not
engage
in
the
6
business
of
a
device
retailer
at
any
place
of
business
or
7
through
delivery
sales,
unless
the
person
complies
with
all
of
8
the
following:
9
a.
The
person
has
received
and
holds
a
permit
as
a
tobacco
10
retailer
pursuant
to
section
453A.47A
that
has
not
been
11
suspended
or
revoked
and
is
not
expired;
complies
with
the
12
provisions
of
chapter
453A
applicable
to
a
tobacco
retailer;
13
and
sells
tobacco
products
in
addition
to
devices
at
the
retail
14
outlet
or
through
delivery
sales.
15
b.
The
person
has
received
and
holds
a
permit
as
a
device
16
retailer
pursuant
to
this
section
that
has
not
been
suspended
17
or
revoked
and
is
not
expired,
and
complies
with
the
provisions
18
of
this
chapter.
19
2.
No
sales
without
device
retailer
permit.
A
device
20
retailer
shall
not
sell
devices
until
an
application
has
been
21
filed
and
the
fee
prescribed
paid
for
a
permit
and
until
such
22
permit
is
obtained
and
only
while
such
permit
is
not
suspended,
23
revoked,
or
expired.
24
3.
Number
of
device
retailer
permits.
An
application
shall
25
be
filed
and
a
permit
obtained
for
each
place
of
business
26
owned
or
operated
by
a
device
retailer
located
in
the
state.
27
If
an
out-of-state
device
retailer
makes
delivery
sales
of
28
devices,
an
application
shall
be
filed
with
the
department
and
29
a
permit
shall
be
issued
for
the
out-of-state
device
retailer’s
30
principal
place
of
business.
31
4.
Issuance.
Cities
may
issue
device
retailer
permits
32
to
device
retailers
located
within
their
respective
limits.
33
County
boards
of
supervisors
may
issue
device
retailer
permits
34
to
device
retailers
located
in
their
respective
counties,
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outside
of
the
corporate
limits
of
cities.
The
city
or
county
1
shall
submit
a
duplicate
of
any
application
for
a
device
2
retailer
permit
to
the
alcoholic
beverages
division
of
the
3
department
of
commerce
within
thirty
days
of
issuance
of
a
4
device
retailer
permit.
The
alcoholic
beverages
division
of
5
the
department
of
commerce
shall
submit
the
current
list
of
6
all
device
retailer
permits
issued
to
the
department
of
public
7
health
by
the
last
day
of
each
quarter
of
a
state
fiscal
year.
8
5.
Fees
——
expiration.
All
device
retailer
permits
provided
9
for
in
this
section
shall
expire
on
June
30
of
each
year.
A
10
device
retailer
permit
shall
not
be
granted
or
issued
until
the
11
applicant
has
paid
the
fees
provided
for
in
this
section
for
12
the
period
ending
June
30
next,
to
the
city
or
county
granting
13
the
device
retailer
permit.
The
fee
for
a
device
retailer
14
permit
is
one
thousand
five
hundred
dollars.
15
6.
Application.
Device
retailer
permits
shall
be
issued
16
only
upon
application,
accompanied
by
the
one
thousand
five
17
hundred
dollar
fee,
made
upon
forms
furnished
by
the
department
18
upon
written
request.
The
failure
to
furnish
such
forms
19
shall
be
no
excuse
for
the
failure
to
file
the
form
unless
20
absolute
refusal
is
shown.
The
forms
shall
specify
all
of
the
21
following:
22
a.
The
manner
under
which
the
device
retailer
transacts
or
23
intends
to
transact
business
as
a
device
retailer.
24
b.
The
principal
office,
residence,
and
place
of
business,
25
to
which
the
device
retailer
permit
is
to
apply.
26
c.
If
the
applicant
is
not
an
individual,
the
names
of
the
27
partners
if
the
applicant
is
a
partnership
or
the
names
of
28
the
principal
officers
or
members
if
the
applicant
is
a
legal
29
entity,
and
their
addresses.
30
d.
Such
other
information
as
the
director
shall
by
rule
31
prescribe.
32
7.
Records
and
reports
of
device
retailers.
33
a.
The
director
shall
prescribe
the
forms
necessary
for
34
the
efficient
administration
of
this
section
and
may
require
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uniform
books
and
records
to
be
used
and
kept
by
each
device
1
retailer
or
other
person
as
deemed
necessary.
2
b.
Every
device
retailer
shall,
when
requested
by
the
3
department,
make
additional
reports
as
the
department
deems
4
necessary
and
proper
and
shall
at
the
request
of
the
department
5
furnish
full
and
complete
information
pertaining
to
any
6
transaction
of
the
device
retailer
involving
the
purchase
or
7
sale
of
devices,
including
the
number
of
devices
sold.
8
8.
Requirements
for
sale.
9
a.
A
device
retailer
shall
not
sell,
give,
or
otherwise
10
supply
a
device
to
any
person
under
twenty-one
years
of
age
and
11
must
verify
the
age
of
all
purchasers
of
devices.
If
a
device
12
is
purchased
at
a
retail
outlet,
valid
proof
of
the
purchaser’s
13
identity
and
age
shall
be
obtained
at
the
time
the
device
is
14
supplied
to
the
purchaser.
If
a
device
is
purchased
through
a
15
delivery
sale,
valid
proof
of
the
purchaser’s
identity
and
age
16
shall
be
obtained
in
accordance
with
section
453E.4.
17
b.
A
device
retailer
shall
only
display
and
sell
devices
18
in
a
location
of
a
retail
outlet
where
the
device
retailer
19
ensures
that
the
devices
are
not
visible
to
a
person
younger
20
than
twenty-one
years
of
age
and
where
no
person
younger
than
21
twenty-one
years
of
age
is
present
or
permitted
to
enter
at
any
22
time.
23
Sec.
4.
NEW
SECTION
.
453E.4
Delivery
sale
of
devices
——
24
permit
——
requirements.
25
1.
a.
A
person
shall
not
mail,
ship,
or
otherwise
cause
26
to
be
delivered
any
device
in
connection
with
a
delivery
sale
27
to
any
other
person
within
this
state
unless
the
person
has
28
applied
for
and
holds
a
device
delivery
sale
permit
as
provided
29
in
this
section.
30
b.
A
person
applying
for
a
device
delivery
sale
permit
shall
31
submit
an
application
for
the
permit
electronically,
or
in
a
32
manner
prescribed
by
the
director.
33
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
34
be
accompanied
by
a
permit
fee
in
the
amount
of
one
thousand
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363
five
hundred
dollars.
1
d.
The
director
may
in
accordance
with
this
section
issue
a
2
device
delivery
sale
permit
which
shall
be
valid
for
one
year
3
from
the
date
of
issuance
unless
it
is
sooner
suspended
or
4
revoked
for
a
violation
of
this
section.
5
e.
A
permit
issued
pursuant
to
this
section
may
be
renewed
6
annually
by
submitting
a
renewal
application
in
a
manner
7
prescribed
by
the
director,
accompanied
by
the
one
thousand
8
five
hundred
dollar
permit
fee.
9
2.
The
delivery
sale
of
devices
pursuant
to
this
10
section
shall
be
subject
to
the
following
requirements
and
11
restrictions:
12
a.
All
devices
delivered
by
delivery
sale
directly
to
a
13
resident
of
this
state
shall
be
sold
only
by
a
device
delivery
14
sale
permit
holder.
15
b.
A
device
delivery
sale
permit
holder
shall
only
deliver
16
devices
by
delivery
sale
to
a
resident
of
this
state
who
is
at
17
least
twenty-one
years
of
age
for
the
resident’s
personal
use
18
and
not
for
resale.
19
c.
All
devices
delivered
by
delivery
sale
directly
to
a
20
resident
of
this
state
shall
be
conspicuously
labeled
with
the
21
words
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
22
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
23
alternative
wording
preapproved
by
the
director.
24
d.
A
device
delivery
sale
permit
holder
shall
obtain
25
valid
proof
of
identity
and
age
prior
to
delivery,
and
shall
26
obtain
the
signature
of
a
person
age
twenty-one
or
older
as
a
27
condition
of
delivery.
28
e.
A
device
delivery
sale
permit
holder
shall
maintain
29
records
of
devices
delivered
which
include
the
name
of
the
30
device
manufacturer,
quantity
of
devices
delivered,
recipient’s
31
name
and
address
and
verification
of
age
on
an
electronic
or
32
paper
form
of
signature
from
the
recipient
of
the
device,
and
33
sales
and
excise
taxes
paid.
Records
shall
be
submitted
to
34
the
director
on
a
monthly
basis
in
a
form
and
manner
to
be
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determined
by
the
director.
Records
shall
be
maintained
for
at
1
least
five
years.
2
3.
A
device
delivery
sale
permit
holder
shall
remit
to
the
3
director
an
amount
equivalent
to
the
applicable
sales
tax
and
4
excise
tax
on
devices
subject
to
delivery
sale
at
the
rates
5
specified
in
section
423.2
and
section
453E.5,
as
applicable.
6
The
amount
shall
be
remitted
at
the
time
and
in
the
manner
7
provided
in
section
453E.5.
8
4.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
9
have
consented
to
the
jurisdiction
of
the
director
or
any
other
10
agency
or
court
in
this
state
concerning
enforcement
of
this
11
section
and
any
related
laws,
rules,
or
regulations.
A
device
12
delivery
sale
permit
holder
shall
allow
the
director
to
perform
13
an
audit
of
records
of
devices
upon
request.
14
Sec.
5.
NEW
SECTION
.
453E.5
Sales
and
use
tax
on
sales
and
15
delivery
sales
of
devices
——
examination
of
records
and
premises
16
——
subpoena
for
witnesses
and
papers.
17
1.
A
sale
or
delivery
sale
of
a
device
within
this
state
18
shall
be
subject
to
the
sales
tax
provided
in
chapter
423,
19
subchapter
II.
All
the
provisions
for
the
lien
of
the
tax,
its
20
collection,
and
all
actions
as
provided
in
the
uniform
sales
21
and
use
tax
administration
Act,
chapter
423,
shall
apply
to
the
22
tax
imposed
in
this
chapter.
23
2.
There
is
levied
and
imposed
an
excise
tax
on
a
device
24
purchased
in
this
state
through
a
sale
or
purchased
for
use
25
in
this
state
through
a
delivery
sale
of
forty
percent
of
the
26
purchase
price
of
the
device.
27
3.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
28
have
waived
all
claims
that
such
permit
holder
lacks
physical
29
presence
within
this
state
for
purposes
of
collecting
and
30
remitting
the
sales
and
excise
taxes.
31
4.
A
device
delivery
sale
permit
holder
making
taxable
32
delivery
sales
of
devices
within
this
state
and
a
device
33
retailer
shall
remit
to
the
department
all
sales
and
excise
34
taxes
due
on
such
sales
at
the
times
and
in
the
manner
as
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established
by
rule
of
the
director.
1
5.
The
director
may
adopt
rules
pursuant
to
chapter
17A
to
2
administer
this
section.
3
6.
Excise
taxes
collected
under
this
section
shall
be
4
deposited
in
the
specialty
courts
program
fund
created
in
5
section
453E.6.
6
7.
a.
For
the
purpose
of
enabling
the
department
to
7
determine
the
tax
liability
of
device
delivery
sale
permit
8
holders,
device
retailers,
or
any
other
person
dealing
in
9
devices
or
to
determine
whether
a
tax
liability
has
been
10
incurred,
the
department
shall
have
the
right
to
inspect
any
11
premises
of
the
device
delivery
sale
permit
holder,
device
12
retailer,
or
other
person
dealing
in
devices
located
within
13
or
without
the
state
of
Iowa
where
devices
are
manufactured,
14
produced,
made,
stored,
transported,
sold,
or
offered
for
15
sale
or
exchange,
and
to
examine
all
of
the
records
required
16
to
be
kept
or
any
other
records
that
may
be
kept
incident
17
to
the
conduct
of
the
business
of
said
device
delivery
sale
18
permit
holder,
device
retailer,
or
any
other
person
dealing
in
19
devices.
20
b.
The
department
shall
also
have
the
right
as
an
incident
21
to
determining
the
tax
liability,
or
whether
a
tax
liability
22
has
been
incurred,
to
examine
all
stocks
of
devices
and
to
23
remain
upon
the
premises
for
such
length
of
time
as
may
be
24
necessary
to
fully
determine
the
tax
liability,
or
whether
a
25
tax
liability
has
been
incurred.
26
c.
It
shall
be
unlawful
for
a
permit
holder
to
fail
to
27
produce
upon
demand
of
the
department
any
records
required
to
28
be
kept
or
to
hinder
or
prevent
in
any
manner
the
inspection
of
29
the
records
or
the
examination
of
the
premises.
30
d.
In
the
case
of
any
departmental
inspection
conducted
31
under
this
section
requiring
department
personnel
to
travel
32
outside
the
state
of
Iowa,
any
additional
costs
incurred
by
33
the
department
for
out-of-state
travel
expenses
shall
be
borne
34
by
the
device
delivery
sale
permit
holder,
device
retailer,
or
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other
person
dealing
in
devices.
These
additional
costs
shall
1
be
those
costs
in
excess
of
the
costs
of
a
similar
inspection
2
conducted
at
the
geographical
point
located
within
the
state
3
of
Iowa
nearest
to
the
out-of-state
inspection
point.
In
4
lieu
of
conducting
an
on-premises
out-of-state
inspection,
5
the
department
shall
have
the
authority
to
direct
the
device
6
delivery
sale
permit
holder,
device
retailer,
or
other
person
7
dealing
in
devices
to
assemble
and
transport
all
records
8
described
in
this
subsection
to
the
nearest
practical
and
9
convenient
geographical
location
in
Iowa
for
inspection
by
the
10
department.
11
Sec.
6.
NEW
SECTION
.
453E.6
Specialty
courts
program
fund.
12
1.
A
specialty
courts
program
fund
is
created
in
the
state
13
treasury
under
the
control
of
the
drug
policy
coordinator
of
14
the
governor’s
office
of
drug
control
policy.
Moneys
from
15
permit
fees,
with
the
exception
of
permit
fees
collected
by
16
cities
or
counties
in
the
issuance
of
permits,
and
excise
taxes
17
imposed
and
collected
pursuant
to
section
453E.5,
shall
be
18
deposited
in
the
fund.
Permit
fees
collected
by
cities
or
19
counties
under
this
chapter
shall
be
paid
to
the
treasurer
of
20
the
city
where
the
permit
is
effective,
or
to
another
city
21
officer
as
designated
by
the
city
council,
and
credited
to
the
22
general
fund
of
the
city.
Permit
fees
collected
by
counties
23
under
this
chapter
shall
be
paid
to
the
county
treasurer
and
24
credited
to
the
general
fund
of
the
county.
25
2.
Moneys
in
the
fund
shall
be
used
only
as
provided
26
in
appropriations
from
the
fund
for
the
purpose
of
the
27
support
of
specialty
courts
to
address
underlying
substance
28
use
disorder-related
and
mental
health-related
issues
that
29
contribute
to
the
contact
of
individuals
with
the
justice
30
system.
31
3.
The
fund
shall
be
separate
from
the
general
fund
of
the
32
state
and
shall
not
be
considered
part
of
the
general
fund
of
33
the
state.
The
moneys
in
the
fund
shall
not
be
considered
34
revenue
of
the
state,
but
rather
shall
be
moneys
of
the
fund.
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The
moneys
in
the
fund
are
not
subject
to
reversion
to
the
1
general
fund
of
the
state
under
section
8.33
and
shall
not
2
be
transferred,
used,
obligated,
appropriated,
or
otherwise
3
encumbered,
except
to
provide
for
the
purposes
of
this
section.
4
Notwithstanding
section
12C.7,
subsection
2,
interest
or
5
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
6
the
fund.
7
4.
The
treasurer
of
state
shall
provide
a
quarterly
report
8
of
fund
activities
and
balances
to
the
drug
policy
coordinator
9
of
the
governor’s
office
of
drug
control
policy.
10
Sec.
7.
NEW
SECTION
.
453E.7
Permits
——
suspension
——
11
revocation
——
penalties.
12
1.
The
provisions
of
chapter
453A
including
the
permit
13
suspension
and
revocation
provisions
and
the
civil
penalties
14
established
in
section
453A.22
shall
apply
to
tobacco
retailers
15
who
are
also
device
retailer
permit
holders
or
device
delivery
16
sale
permit
holders
under
this
chapter.
The
provisions
of
17
chapter
453A
applicable
to
persons
other
than
tobacco
retailers
18
who
violate
chapter
453A
shall
also
apply
to
persons
who
19
violate
this
chapter.
20
2.
A
person
holding
a
device
retailer
permit
or
a
device
21
delivery
sale
permit
under
this
chapter
who
violates
this
22
chapter
by
marketing
or
selling
a
device
to
be
used
or
23
attempted
to
be
used
or
that
is
capable
of
use
in
combination
24
with
tobacco,
hemp,
other
plant
materials,
or
a
controlled
25
substance,
to
knowingly
or
intentionally
and
primarily
inhale
26
the
material
or
substance
through
combustion
commits
a
serious
27
misdemeanor
and
is
also
subject
to
permit
revocation.
28
3.
a.
If
a
person
holding
a
device
retailer
permit
or
a
29
device
delivery
sale
permit
under
this
chapter
has
willfully
30
violated
this
chapter,
the
department
shall
revoke
the
permit
31
upon
notice
and
hearing.
The
hearing
before
the
department
may
32
be
held
at
a
site
in
the
state
as
the
department
may
direct.
33
The
notice
shall
be
given
by
mailing
a
copy
to
the
permit
34
holder’s
place
of
business
as
it
appears
on
the
application
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for
a
permit.
If,
upon
hearing,
the
department
finds
that
the
1
violation
has
occurred,
the
department
may
revoke
the
permit.
2
b.
If
a
device
retailer
permit
or
a
device
delivery
3
sale
permit
is
suspended
or
revoked
under
this
section,
the
4
suspension
or
revocation
shall
only
apply
to
the
place
of
5
business
at
which
the
violation
occurred
and
shall
not
apply
to
6
any
other
place
of
business
to
which
the
permit
applies
but
at
7
which
the
violation
did
not
occur.
8
c.
The
department
or
local
authority
shall
report
the
9
suspension
or
revocation
of
a
device
retailer
permit
or
a
10
device
delivery
sale
permit
under
this
section
to
the
alcoholic
11
beverages
division
of
the
department
of
commerce
within
thirty
12
days
of
the
suspension
or
revocation
of
the
permit.
13
4.
In
addition
to
any
other
applicable
penalties,
a
device
14
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
15
who
violates
this
chapter
shall
be
subject
to
the
following:
16
a.
For
a
first
violation,
a
civil
penalty
of
five
hundred
17
dollars.
18
b.
For
a
second
violation,
a
civil
penalty
of
one
thousand
19
dollars.
20
c.
A
third
violation
constitutes
grounds
for
suspension
or
21
revocation
of
the
permit
under
this
chapter.
22
5.
A
person
other
than
a
device
retailer
permit
holder
or
a
23
device
delivery
sale
permit
holder
who
violates
this
chapter,
24
including
a
person
who
engages
in
the
business
of
a
device
25
retailer
at
any
place
of
business
or
through
delivery
sales
26
without
holding
an
applicable,
valid
permit
under
this
chapter,
27
commits
a
serious
misdemeanor
and
shall
also
be
subject
to
the
28
following
civil
penalties:
29
a.
For
a
first
violation,
a
civil
penalty
of
one
thousand
30
dollars.
31
b.
For
a
second
violation,
a
civil
penalty
of
two
thousand
32
dollars.
33
c.
For
a
third
or
subsequent
violation,
a
civil
penalty
of
34
five
thousand
dollars.
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
relates
to
the
regulation
of
certain
tobacco
4
products.
5
The
bill
requires
a
person
who
engages
in
the
business
of
6
a
device
retailer
through
a
retail
outlet
or
delivery
sales
7
to
receive
and
hold
a
permit
as
a
tobacco
retailer,
comply
8
with
provisions
applicable
to
a
tobacco
retailer,
sell
tobacco
9
products
in
addition
to
devices
at
the
retail
outlet
or
through
10
delivery
sales,
and
hold
a
permit
as
a
device
retailer.
The
11
bill
provides
for
the
application
for
and
issuance
of
device
12
retailer
permits
by
cities
and
counties
depending
upon
the
13
location
of
the
retailer;
requires
the
payment
of
a
fee
for
14
each
permit;
and
provides
for
annual
expiration
of
the
permits.
15
The
bill
also
requires
device
retailer
permit
holders
to
16
keep
certain
records
and
submit
reports
to
the
department
of
17
revenue;
establishes
requirements
for
the
sale
of
devices
18
including
that
a
device
retailer
shall
not
sell,
give,
or
19
otherwise
supply
a
device
to
any
person
under
21
years
of
age
20
and
must
verify
the
age
of
all
purchasers
of
devices;
and
21
provides
that
a
device
retailer
shall
only
display
and
sell
22
devices
in
a
location
where
the
device
retailer
ensures
that
23
the
devices
are
not
visible
to
a
person
younger
than
21
years
24
of
age
and
where
no
person
younger
than
21
years
of
age
is
25
present
or
permitted
to
enter
at
any
time.
26
The
bill
establishes
requirements
for
the
delivery
sale
27
of
devices
including
permit
requirements
and
restrictions
28
including
all
devices
delivered
by
delivery
sale
directly
to
29
a
resident
of
this
state
shall
be
delivered
by
a
holder
of
30
a
device
delivery
sale
permit;
that
a
device
delivery
sale
31
permit
holder
shall
only
deliver
devices
by
delivery
sale
to
32
a
resident
of
this
state
who
is
at
least
21
years
of
age,
for
33
the
resident’s
personal
use
and
consumption
and
not
for
resale;
34
all
devices
delivered
by
delivery
sale
directly
to
a
resident
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of
this
state
shall
be
conspicuously
labeled
with
the
words
1
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
REQUIRED
2
FOR
DELIVERY”
or
with
an
alternative
wording
preapproved
by
3
the
director
of
revenue;
a
device
delivery
sale
permit
holder
4
shall
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
5
and
shall
obtain
the
signature
of
a
person
age
21
or
older
6
as
a
condition
of
delivery;
and
that
a
device
delivery
sale
7
permit
holder
shall
maintain
records
of
devices
delivered
which
8
include
certain
information
that
must
be
maintained
for
five
9
years.
10
The
bill
provides
for
the
imposition,
collection,
and
11
payment
of
sales
and
excise
taxes
on
the
retail
sale,
including
12
delivery
sales,
of
devices.
Moneys
from
permit
fees,
with
the
13
exception
of
city
and
county
permit
fees,
and
excise
taxes
14
imposed
and
collected
under
the
bill,
are
to
be
deposited
in
15
the
specialty
courts
program
fund
created
in
the
bill
to
be
16
used
for
the
purpose
of
the
support
of
specialty
courts
to
17
address
underlying
substance
use
disorder-related
and
mental
18
health-related
issues
that
contribute
to
the
contact
of
19
individuals
with
the
justice
system.
20
The
bill
provides
penalties
for
violations
of
the
bill.
21
The
applicable
provisions
of
Code
chapter
453A
(cigarette
and
22
tobacco
taxes
and
regulation
of
alternative
nicotine
products
23
and
vapor
products)
including
penalties
and
license
suspension
24
and
revocation
provisions
and
penalties
applicable
to
those
25
other
than
permit
holders
apply
to
tobacco
retailers
who
are
26
also
device
retailer
permit
holders
or
device
delivery
sale
27
permit
holders
as
well
as
to
those
who
are
not
permit
holders.
28
Additionally,
a
person
holding
a
device
retailer
permit
or
a
29
device
delivery
sale
permit
who
violates
the
bill
by
marketing
30
or
selling
a
device
to
be
used
or
attempted
to
be
used
or
that
31
is
capable
of
use
in
combination
with
tobacco,
hemp,
other
32
plant
materials,
or
a
controlled
substance,
to
knowingly
or
33
intentionally
and
primarily
inhale
the
material
or
controlled
34
substance
through
combustion,
commits
a
serious
misdemeanor
and
35
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363
is
also
subject
to
permit
revocation.
A
serious
misdemeanor
is
1
punishable
by
confinement
for
no
more
than
one
year
and
a
fine
2
of
at
least
$430
but
not
more
than
$2,560.
3
If
a
person
holding
a
device
retailer
permit
or
a
device
4
delivery
sale
permit
willfully
violates
the
bill,
the
5
department
shall
revoke
the
permit
upon
notice
and
hearing.
6
In
addition
to
any
other
applicable
penalties,
a
device
7
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
8
who
violates
the
Code
chapter
is
subject
to
a
civil
penalty
9
of
$500
for
a
first
violation,
a
civil
penalty
of
$1,000
for
10
a
second
violation,
and
a
third
violation
constitutes
grounds
11
for
suspension
or
revocation
of
the
permit.
A
person
other
12
than
a
device
retailer
permit
holder
or
a
device
delivery
13
sale
permit
holder,
including
a
person
who
engages
in
the
14
business
of
a
device
retailer
at
a
place
of
business
or
15
through
delivery
sales
without
holding
an
applicable,
valid
16
permit
under
the
bill,
who
violates
the
Code
chapter
commits
17
a
serious
misdemeanor
and
is
also
subject
to
a
civil
penalty
18
of
$1,000
for
a
first
violation,
a
civil
penalty
of
$2,000
for
19
a
second
violation,
and
a
civil
penalty
of
$5,000
for
a
third
20
or
subsequent
violation.
21
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