Bill Text: IA SF43 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the regulation of certain tobacco and hemp-related products, and providing penalties.(See SF 226, SF 363.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2021-02-02 - Committee report approving bill, renumbered as SF 226. S.J. 223. [SF43 Detail]
Download: Iowa-2021-SF43-Introduced.html
Senate
File
43
-
Introduced
SENATE
FILE
43
BY
DAWSON
A
BILL
FOR
An
Act
relating
to
the
regulation
of
certain
tobacco
and
1
hemp-related
products,
and
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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DIVISION
I
1
REGULATION
OF
DEVICE
RETAILERS
2
Section
1.
NEW
SECTION
.
453E.1
Definitions.
3
As
used
in
this
chapter,
unless
the
context
otherwise
4
requires:
5
1.
“Business”
means
any
trade,
occupation,
activity,
6
or
enterprise
engaged
in
for
the
purpose
of
selling
or
7
distributing
tobacco
products
and
devices
in
this
state.
8
2.
“Consumer”
means
any
person
who
has
title
to
or
9
possession
of
devices
in
storage,
for
use
or
other
consumption
10
in
this
state.
11
3.
“Controlled
substance”
means
controlled
substance
as
12
defined
in
section
124.101.
13
4.
“Delivery
sale”
means
any
sale
of
a
device
to
a
purchaser
14
in
this
state
where
the
purchaser
submits
the
order
for
15
such
sale
by
means
of
a
telephonic
or
other
method
of
voice
16
transmission,
mail
or
any
other
delivery
service,
or
the
17
internet
or
other
online
service
and
the
device
is
delivered
by
18
use
of
mail
or
a
delivery
service.
The
sale
of
a
device
shall
19
constitute
a
delivery
sale
regardless
of
whether
the
seller
is
20
located
in
this
state.
“Delivery
sale”
does
not
include
a
sale
21
to
a
distributor
or
retailer
of
a
device
not
for
personal
use.
22
5.
“Department”
means
the
department
of
revenue.
23
a.
“Device”
means
any
equipment
or
product,
made
in
whole
24
or
in
part
of
glass
or
metal,
that
is
intended
or
designed
for
25
use
in
manufacturing,
compounding,
converting,
concealing,
26
producing,
processing,
preparing,
injecting,
ingesting,
27
inhaling,
or
otherwise
introducing
into
the
human
body
a
28
controlled
substance.
“Device”
does
not
include
a
vapor
29
product.
30
b.
In
determining
whether
any
particular
item
constitutes
a
31
“device”
,
the
following
factors
may
be
considered:
32
(1)
The
instructions,
oral
or
written,
provided
with
the
33
item
concerning
its
use.
34
(2)
Any
descriptive
materials
accompanying
the
item
which
35
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explain
or
depict
its
use.
1
(3)
National
and
local
advertising
concerning
the
item’s
2
use.
3
(4)
The
manner
in
which
the
item
is
displayed
for
sale.
4
(5)
Whether
the
owner
of
the
place
of
business,
or
anyone
in
5
control
of
the
item
at
the
place
of
business,
is
a
legitimate
6
supplier
of
like
or
related
items
to
the
community,
such
as
a
7
licensed
distributor,
manufacturer,
or
subjobber.
8
(6)
Direct
or
circumstantial
evidence
of
the
ratio
of
sales
9
of
the
item
to
the
total
sales
of
the
place
of
business.
10
(7)
The
existence
and
scope
of
legitimate
uses
of
the
item
11
in
the
community.
12
(8)
Expert
testimony
concerning
the
item’s
use.
13
c.
A
particular
item
may
constitute
a
device
notwithstanding
14
any
lawful
use
of
the
item.
15
7.
“Device
retailer”
means
a
person
engaged
in
the
retail
16
sale
of
tangible
personal
property
who
is
also
engaged
in
17
selling
devices
to
the
ultimate
consumer.
18
8.
“Director”
means
the
director
of
revenue.
19
9.
“Distributor”
means
the
same
as
defined
in
section
20
453A.42.
21
10.
“Manufacturer”
means
the
same
as
defined
in
section
22
453A.42.
23
11.
“Place
of
business”
means
any
place
where
tobacco
24
products
and
devices
are
sold,
stored,
or
kept
for
the
purpose
25
of
sale
or
consumption;
or
for
a
business
within
or
without
the
26
state
that
conducts
delivery
sales,
any
place
where
tobacco
27
products
and
devices
are
sold
or
are
kept
for
the
purpose
of
28
sale,
including
delivery
sales.
29
12.
“Retail
outlet”
means
each
place
of
business
from
which
30
tobacco
products
and
devices
are
sold
to
consumers.
31
13.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
32
any
manner
or
by
any
means
whatsoever,
for
consideration,
and
33
includes
and
means
all
sales
made
by
any
person.
34
14.
“Subjobber”
means
the
same
as
defined
in
section
35
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453A.42.
1
15.
“Tobacco
products”
means
cigars;
little
cigars;
2
cheroots;
stogies;
periques;
granulated,
plug
cut,
crimp
cut,
3
ready
rubbed,
and
other
smoking
tobacco;
snuff;
cavendish;
4
plug
and
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
5
shorts;
refuse
scraps,
clippings,
cuttings
and
sweepings
of
6
tobacco,
and
other
kinds
and
forms
of
tobacco,
prepared
in
7
such
manner
as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
8
or
otherwise,
or
both
for
chewing
and
smoking;
but
shall
not
9
include
cigarettes
as
defined
in
section
453A.1.
10
16.
“Tobacco
retailer”
means
a
retailer
as
defined
in
11
section
453A.42.
12
17.
“Use”
means
the
exercise
of
any
right
or
power
13
incidental
to
the
ownership
of
tobacco
products
or
devices.
14
18.
“Vapor
product”
means
the
same
as
defined
in
section
15
453A.1.
16
Sec.
2.
NEW
SECTION
.
453E.2
Administration
——
rules
——
17
intent.
18
1.
The
director
shall
administer
this
chapter.
The
director
19
shall
collect,
supervise,
and
enforce
the
collection
of
all
20
fees,
taxes,
and
civil
penalties
imposed
under
this
chapter.
21
2.
The
director
may
adopt
rules
pursuant
to
chapter
17A
that
22
are
necessary
to
enforce
this
chapter.
23
3.
The
director
may
designate
employees
to
administer
24
and
enforce
the
provisions
of
this
chapter,
including
the
25
collection
of
all
taxes
provided
for
in
this
chapter.
In
the
26
enforcement,
the
director
may
request
aid
from
the
attorney
27
general,
the
special
agents
of
the
state,
any
county
attorney,
28
or
any
peace
officer.
The
director
may
appoint
clerks
and
29
additional
help
as
may
be
needed
to
administer
this
chapter.
30
4.
This
chapter
or
the
holding
of
a
device
retailer
permit
31
or
a
device
delivery
sale
permit
under
this
chapter
shall
not
32
be
construed
to
provide
for
any
of
the
following:
33
a.
Immunity
from
prosecution
or
the
limitation
of
the
34
application
of
other
state
law
and
regulations
governing
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tobacco
products,
drug
paraphernalia,
or
controlled
substances.
1
b.
Authorization
for
the
possession,
marketing,
offering
2
for
sale,
or
selling
of
a
device,
the
possession,
marketing,
3
offering
for
sale,
or
selling
of
which
is
otherwise
prohibited
4
by
state
or
federal
law.
5
Sec.
3.
NEW
SECTION
.
453E.3
Device
retailers
——
permits
——
6
fees.
7
1.
Permits
required.
A
person
shall
not
engage
in
the
8
business
of
a
device
retailer
at
any
place
of
business
or
9
through
delivery
sales,
unless
the
person
complies
with
all
of
10
the
following:
11
a.
The
person
has
received
and
holds
a
permit
as
a
tobacco
12
retailer
pursuant
to
section
453A.47A
that
has
not
been
13
suspended
or
revoked
and
is
not
expired;
complies
with
the
14
provisions
of
chapter
453A
applicable
to
a
tobacco
retailer;
15
and
sells
tobacco
products
in
addition
to
devices
at
the
retail
16
outlet
or
through
delivery
sales.
17
b.
The
person
has
received
and
holds
a
permit
as
a
device
18
retailer
pursuant
to
this
section
that
has
not
been
suspended
19
or
revoked
and
is
not
expired,
and
complies
with
the
provisions
20
of
this
chapter.
21
2.
No
sales
without
device
retailer
permit.
A
device
22
retailer
shall
not
sell
devices
until
an
application
has
been
23
filed
and
the
fee
prescribed
paid
for
a
permit
and
until
such
24
permit
is
obtained
and
only
while
such
permit
is
not
suspended,
25
revoked,
or
expired.
26
3.
Number
of
device
retailer
permits.
An
application
shall
27
be
filed
and
a
permit
obtained
for
each
place
of
business
28
owned
or
operated
by
a
device
retailer
located
in
the
state.
29
If
an
out-of-state
device
retailer
makes
delivery
sales
of
30
devices,
an
application
shall
be
filed
with
the
department
and
31
a
permit
shall
be
issued
for
the
out-of-state
device
retailer’s
32
principal
place
of
business.
33
4.
Issuance.
Cities
may
issue
device
retailer
permits
34
to
device
retailers
located
within
their
respective
limits.
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County
boards
of
supervisors
may
issue
device
retailer
permits
1
to
device
retailers
located
in
their
respective
counties,
2
outside
of
the
corporate
limits
of
cities.
The
city
or
county
3
shall
submit
a
duplicate
of
any
application
for
a
device
4
retailer
permit
to
the
alcoholic
beverages
division
of
the
5
department
of
commerce
within
thirty
days
of
issuance
of
a
6
device
retailer
permit.
The
alcoholic
beverages
division
of
7
the
department
of
commerce
shall
submit
the
current
list
of
8
all
device
retailer
permits
issued
to
the
department
of
public
9
health
by
the
last
day
of
each
quarter
of
a
state
fiscal
year.
10
5.
Fees
——
expiration.
All
device
retailer
permits
provided
11
for
in
this
section
shall
expire
on
June
30
of
each
year.
A
12
device
retailer
permit
shall
not
be
granted
or
issued
until
the
13
applicant
has
paid
the
fees
provided
for
in
this
section
for
14
the
period
ending
June
30
next,
to
the
city
or
county
granting
15
the
device
retailer
permit.
The
fee
for
a
device
retailer
16
permit
is
one
thousand
five
hundred
dollars.
17
6.
Application.
Device
retailer
permits
shall
be
issued
18
only
upon
application,
accompanied
by
the
one
thousand
five
19
hundred
dollar
fee,
made
upon
forms
furnished
by
the
department
20
upon
written
request.
The
failure
to
furnish
such
forms
21
shall
be
no
excuse
for
the
failure
to
file
the
form
unless
22
absolute
refusal
is
shown.
The
forms
shall
specify
all
of
the
23
following:
24
a.
The
manner
under
which
the
device
retailer
transacts
or
25
intends
to
transact
business
as
a
device
retailer.
26
b.
The
principal
office,
residence,
and
place
of
business,
27
to
which
the
device
retailer
permit
is
to
apply.
28
c.
If
the
applicant
is
not
an
individual,
the
names
of
the
29
partners
if
the
applicant
is
a
partnership
or
the
names
of
30
the
principal
officers
or
members
if
the
applicant
is
a
legal
31
entity,
and
their
addresses.
32
d.
Such
other
information
as
the
director
shall
by
rule
33
prescribe.
34
7.
Records
and
reports
of
device
retailers.
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a.
The
director
shall
prescribe
the
forms
necessary
for
1
the
efficient
administration
of
this
section
and
may
require
2
uniform
books
and
records
to
be
used
and
kept
by
each
device
3
retailer
or
other
person
as
deemed
necessary.
4
b.
Every
device
retailer
shall,
when
requested
by
the
5
department,
make
additional
reports
as
the
department
deems
6
necessary
and
proper
and
shall
at
the
request
of
the
department
7
furnish
full
and
complete
information
pertaining
to
any
8
transaction
of
the
device
retailer
involving
the
purchase
or
9
sale
of
devices,
including
the
number
of
devices
sold.
10
8.
Requirements
for
sale.
11
a.
A
device
retailer
shall
not
sell,
give,
or
otherwise
12
supply
a
device
to
any
person
under
twenty-one
years
of
age
and
13
must
verify
the
age
of
all
purchasers
of
devices.
If
a
device
14
is
purchased
at
a
retail
outlet,
valid
proof
of
the
purchaser’s
15
identity
and
age
shall
be
obtained
at
the
time
the
device
is
16
supplied
to
the
purchaser.
If
a
device
is
purchased
through
a
17
delivery
sale,
valid
proof
of
the
purchaser’s
identity
and
age
18
shall
be
obtained
in
accordance
with
section
453E.4.
19
b.
A
device
retailer
shall
only
display
and
sell
devices
20
in
a
location
of
a
retail
outlet
where
the
device
retailer
21
ensures
that
the
devices
are
not
visible
to
a
person
younger
22
than
twenty-one
years
of
age
and
where
no
person
younger
than
23
twenty-one
years
of
age
is
present
or
permitted
to
enter
at
any
24
time.
25
Sec.
4.
NEW
SECTION
.
453E.4
Delivery
sale
of
devices
——
26
permit
——
requirements.
27
1.
a.
A
person
shall
not
mail,
ship,
or
otherwise
cause
28
to
be
delivered
any
device
in
connection
with
a
delivery
sale
29
to
any
other
person
within
this
state
unless
the
person
has
30
applied
for
and
holds
a
device
delivery
sale
permit
as
provided
31
in
this
section.
32
b.
A
person
applying
for
a
device
delivery
sale
permit
shall
33
submit
an
application
for
the
permit
electronically,
or
in
a
34
manner
prescribed
by
the
director.
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c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
1
be
accompanied
by
a
permit
fee
in
the
amount
of
one
thousand
2
five
hundred
dollars.
3
d.
The
director
may
in
accordance
with
this
section
issue
a
4
device
delivery
sale
permit
which
shall
be
valid
for
one
year
5
from
the
date
of
issuance
unless
it
is
sooner
suspended
or
6
revoked
for
a
violation
of
this
section.
7
e.
A
permit
issued
pursuant
to
this
section
may
be
renewed
8
annually
by
submitting
a
renewal
application
in
a
manner
9
prescribed
by
the
director,
accompanied
by
the
one
thousand
10
five
hundred
dollar
permit
fee.
11
2.
The
delivery
sale
of
devices
pursuant
to
this
12
section
shall
be
subject
to
the
following
requirements
and
13
restrictions:
14
a.
All
devices
delivered
by
delivery
sale
directly
to
a
15
resident
of
this
state
shall
be
sold
only
by
a
device
delivery
16
sale
permit
holder.
17
b.
A
device
delivery
sale
permit
holder
shall
only
deliver
18
devices
by
delivery
sale
to
a
resident
of
this
state
who
is
at
19
least
twenty-one
years
of
age
for
the
resident’s
personal
use
20
and
not
for
resale.
21
c.
All
devices
delivered
by
delivery
sale
directly
to
a
22
resident
of
this
state
shall
be
conspicuously
labeled
with
the
23
words
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
24
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
25
alternative
wording
preapproved
by
the
director.
26
d.
A
device
delivery
sale
permit
holder
shall
obtain
27
valid
proof
of
identity
and
age
prior
to
delivery,
and
shall
28
obtain
the
signature
of
a
person
age
twenty-one
or
older
as
a
29
condition
of
delivery.
30
e.
A
device
delivery
sale
permit
holder
shall
maintain
31
records
of
devices
delivered
which
include
the
name
of
the
32
device
manufacturer,
quantity
of
devices
delivered,
recipient’s
33
name
and
address
and
verification
of
age
on
an
electronic
or
34
paper
form
of
signature
from
the
recipient
of
the
device,
and
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sales
and
excise
taxes
paid.
Records
shall
be
submitted
to
1
the
director
on
a
monthly
basis
in
a
form
and
manner
to
be
2
determined
by
the
director.
Records
shall
be
maintained
for
at
3
least
five
years.
4
3.
A
device
delivery
sale
permit
holder
shall
remit
to
the
5
director
an
amount
equivalent
to
the
applicable
sales
tax
and
6
excise
tax
on
devices
subject
to
delivery
sale
at
the
rates
7
specified
in
section
423.2
and
section
453E.5,
as
applicable.
8
The
amount
shall
be
remitted
at
the
time
and
in
the
manner
9
provided
in
section
453E.5.
10
4.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
11
have
consented
to
the
jurisdiction
of
the
director
or
any
other
12
agency
or
court
in
this
state
concerning
enforcement
of
this
13
section
and
any
related
laws,
rules,
or
regulations.
A
device
14
delivery
sale
permit
holder
shall
allow
the
director
to
perform
15
an
audit
of
records
of
devices
upon
request.
16
Sec.
5.
NEW
SECTION
.
453E.5
Sales
and
use
tax
on
sales
and
17
delivery
sales
of
devices
——
examination
of
records
and
premises
18
——
subpoena
for
witnesses
and
papers.
19
1.
A
sale
or
delivery
sale
of
a
device
within
this
state
20
shall
be
subject
to
the
sales
tax
provided
in
chapter
423,
21
subchapter
II.
All
the
provisions
for
the
lien
of
the
tax,
its
22
collection,
and
all
actions
as
provided
in
the
uniform
sales
23
and
use
tax
administration
Act,
chapter
423,
shall
apply
to
the
24
tax
imposed
in
this
chapter.
25
2.
There
is
levied
and
imposed
an
excise
tax
on
a
device
26
purchased
in
this
state
through
a
sale
or
purchased
for
use
27
in
this
state
through
a
delivery
sale
of
forty
percent
of
the
28
purchase
price
of
the
device.
29
3.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
30
have
waived
all
claims
that
such
permit
holder
lacks
physical
31
presence
within
this
state
for
purposes
of
collecting
and
32
remitting
the
sales
and
excise
taxes.
33
4.
A
device
delivery
sale
permit
holder
making
taxable
34
delivery
sales
of
devices
within
this
state
and
a
device
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retailer
shall
remit
to
the
department
all
sales
and
excise
1
taxes
due
on
such
sales
at
the
times
and
in
the
manner
as
2
established
by
rule
of
the
director.
3
5.
The
director
may
adopt
rules
pursuant
to
chapter
17A
to
4
administer
this
section.
5
6.
Excise
taxes
collected
under
this
section
shall
be
6
deposited
in
the
specialty
courts
program
fund
created
in
7
section
453E.6.
8
7.
a.
For
the
purpose
of
enabling
the
department
to
9
determine
the
tax
liability
of
device
delivery
sale
permit
10
holders,
device
retailers,
or
any
other
person
dealing
in
11
devices
or
to
determine
whether
a
tax
liability
has
been
12
incurred,
the
department
shall
have
the
right
to
inspect
any
13
premises
of
the
device
delivery
sale
permit
holder,
device
14
retailer,
or
other
person
dealing
in
devices
located
within
15
or
without
the
state
of
Iowa
where
devices
are
manufactured,
16
produced,
made,
stored,
transported,
sold,
or
offered
for
17
sale
or
exchange,
and
to
examine
all
of
the
records
required
18
to
be
kept
or
any
other
records
that
may
be
kept
incident
19
to
the
conduct
of
the
business
of
said
device
delivery
sale
20
permit
holder,
device
retailer,
or
any
other
person
dealing
in
21
devices.
22
b.
The
department
shall
also
have
the
right
as
an
incident
23
to
determining
the
tax
liability,
or
whether
a
tax
liability
24
has
been
incurred,
to
examine
all
stocks
of
devices
and
to
25
remain
upon
the
premises
for
such
length
of
time
as
may
be
26
necessary
to
fully
determine
the
tax
liability,
or
whether
a
27
tax
liability
has
been
incurred.
28
c.
It
shall
be
unlawful
for
a
permit
holder
to
fail
to
29
produce
upon
demand
of
the
department
any
records
required
to
30
be
kept
or
to
hinder
or
prevent
in
any
manner
the
inspection
of
31
the
records
or
the
examination
of
the
premises.
32
d.
In
the
case
of
any
departmental
inspection
conducted
33
under
this
section
requiring
department
personnel
to
travel
34
outside
the
state
of
Iowa,
any
additional
costs
incurred
by
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the
department
for
out-of-state
travel
expenses
shall
be
borne
1
by
the
device
delivery
sale
permit
holder,
device
retailer,
or
2
other
person
dealing
in
devices.
These
additional
costs
shall
3
be
those
costs
in
excess
of
the
costs
of
a
similar
inspection
4
conducted
at
the
geographical
point
located
within
the
state
5
of
Iowa
nearest
to
the
out-of-state
inspection
point.
In
6
lieu
of
conducting
an
on-premises
out-of-state
inspection,
7
the
department
shall
have
the
authority
to
direct
the
device
8
delivery
sale
permit
holder,
device
retailer,
or
other
person
9
dealing
in
devices
to
assemble
and
transport
all
records
10
described
in
this
subsection
to
the
nearest
practical
and
11
convenient
geographical
location
in
Iowa
for
inspection
by
the
12
department.
13
Sec.
6.
NEW
SECTION
.
453E.6
Specialty
courts
program
fund.
14
1.
A
specialty
courts
program
fund
is
created
in
the
state
15
treasury
under
the
control
of
the
drug
policy
coordinator
of
16
the
governor’s
office
of
drug
control
policy.
Moneys
from
17
permit
fees,
with
the
exception
of
permit
fees
collected
by
18
cities
or
counties
in
the
issuance
of
permits,
and
excise
taxes
19
imposed
and
collected
pursuant
to
section
453E.5,
shall
be
20
deposited
in
the
fund.
Permit
fees
collected
by
cities
or
21
counties
under
this
chapter
shall
be
paid
to
the
treasurer
of
22
the
city
where
the
permit
is
effective,
or
to
another
city
23
officer
as
designated
by
the
city
council,
and
credited
to
the
24
general
fund
of
the
city.
Permit
fees
collected
by
counties
25
under
this
chapter
shall
be
paid
to
the
county
treasurer
and
26
credited
to
the
general
fund
of
the
county.
27
2.
Moneys
in
the
fund
shall
be
used
only
as
provided
28
in
appropriations
from
the
fund
for
the
purpose
of
the
29
support
of
specialty
courts
to
address
underlying
substance
30
use
disorder-related
and
mental
health-related
issues
that
31
contribute
to
the
contact
of
individuals
with
the
justice
32
system.
33
3.
The
fund
shall
be
separate
from
the
general
fund
of
the
34
state
and
shall
not
be
considered
part
of
the
general
fund
of
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the
state.
The
moneys
in
the
fund
shall
not
be
considered
1
revenue
of
the
state,
but
rather
shall
be
moneys
of
the
fund.
2
The
moneys
in
the
fund
are
not
subject
to
reversion
to
the
3
general
fund
of
the
state
under
section
8.33
and
shall
not
4
be
transferred,
used,
obligated,
appropriated,
or
otherwise
5
encumbered,
except
to
provide
for
the
purposes
of
this
section.
6
Notwithstanding
section
12C.7,
subsection
2,
interest
or
7
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
8
the
fund.
9
4.
The
treasurer
of
state
shall
provide
a
quarterly
report
10
of
fund
activities
and
balances
to
the
drug
policy
coordinator
11
of
the
governor’s
office
of
drug
control
policy.
12
Sec.
7.
NEW
SECTION
.
453E.7
Permits
——
suspension
——
13
revocation
——
penalties.
14
1.
The
provisions
of
chapter
453A
including
the
permit
15
suspension
and
revocation
provisions
and
the
civil
penalties
16
established
in
section
453A.22
shall
apply
to
tobacco
retailers
17
who
are
also
device
retailer
permit
holders
or
device
delivery
18
sale
permit
holders
under
this
chapter.
The
provisions
of
19
chapter
453A
applicable
to
persons
other
than
tobacco
retailers
20
who
violate
chapter
453A
shall
also
apply
to
persons
who
21
violate
this
chapter.
22
2.
A
person
holding
a
device
retailer
permit
or
a
device
23
delivery
sale
permit
under
this
chapter
who
violates
this
24
chapter
by
marketing
or
selling
a
device
to
be
used
or
25
attempted
to
be
used
in
combination
with
a
controlled
substance
26
to
knowingly
or
intentionally
and
primarily
inject,
ingest,
27
inhale,
or
otherwise
introduce
into
the
human
body
a
controlled
28
substance
commits
a
serious
misdemeanor
and
is
also
subject
to
29
permit
revocation.
30
3.
a.
If
a
person
holding
a
device
retailer
permit
or
a
31
device
delivery
sale
permit
under
this
chapter
has
willfully
32
violated
this
chapter,
the
department
shall
revoke
the
permit
33
upon
notice
and
hearing.
The
hearing
before
the
department
may
34
be
held
at
a
site
in
the
state
as
the
department
may
direct.
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The
notice
shall
be
given
by
mailing
a
copy
to
the
permit
1
holder’s
place
of
business
as
it
appears
on
the
application
2
for
a
permit.
If,
upon
hearing,
the
department
finds
that
the
3
violation
has
occurred,
the
department
may
revoke
the
permit.
4
b.
If
a
device
retailer
permit
or
a
device
delivery
5
sale
permit
is
suspended
or
revoked
under
this
section,
the
6
suspension
or
revocation
shall
only
apply
to
the
place
of
7
business
at
which
the
violation
occurred
and
shall
not
apply
to
8
any
other
place
of
business
to
which
the
permit
applies
but
at
9
which
the
violation
did
not
occur.
10
c.
The
department
or
local
authority
shall
report
the
11
suspension
or
revocation
of
a
device
retailer
permit
or
a
12
device
delivery
sale
permit
under
this
section
to
the
alcoholic
13
beverages
division
of
the
department
of
commerce
within
thirty
14
days
of
the
suspension
or
revocation
of
the
permit.
15
4.
In
addition
to
any
other
applicable
penalties,
a
device
16
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
17
who
violates
this
chapter
shall
be
subject
to
the
following:
18
a.
For
a
first
violation,
a
civil
penalty
of
five
hundred
19
dollars.
20
b.
For
a
second
violation,
a
civil
penalty
of
one
thousand
21
dollars.
22
c.
A
third
violation
constitutes
grounds
for
suspension
or
23
revocation
of
the
permit
under
this
chapter.
24
5.
A
person
other
than
a
device
retailer
permit
holder
or
a
25
device
delivery
sale
permit
holder
who
violates
this
chapter,
26
including
a
person
who
engages
in
the
business
of
a
device
27
retailer
at
any
place
of
business
or
through
delivery
sales
28
without
holding
an
applicable,
valid
permit
under
this
chapter,
29
shall
be
subject
to
the
following
penalties:
30
a.
For
a
first
violation,
a
civil
penalty
of
one
thousand
31
dollars.
32
b.
For
a
second
violation,
a
civil
penalty
of
two
thousand
33
dollars.
34
c.
For
a
third
or
subsequent
violation,
a
civil
penalty
of
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five
thousand
dollars.
1
DIVISION
II
2
HEMP
PRODUCTS
AND
CONSUMABLE
HEMP
PRODUCTS
——
RETAIL
SALES
3
Sec.
8.
NEW
SECTION
.
126.24
Hemp
products
and
consumable
4
hemp
products
——
retail
sales
——
claims.
5
Unless
a
state
or
federal
agency
has
substantiated
and
6
approved
the
efficacy
and
safety
claims
of
a
product
based
7
on
competent
and
reliable
scientific
evidence,
a
person
8
engaging
in
the
retail
sale
in
this
state
of
a
hemp
product
9
or
a
consumable
hemp
product
as
defined
in
section
204.2
10
that
contains
hemp-derived
cannabidiol,
shall
include
on
11
the
product’s
principal
display
panel,
a
statement
that
the
12
product
may
or
may
not
contain
the
ingredients
stated
on
the
13
label,
that
the
efficacy
and
safety
of
the
product
have
not
14
been
substantiated
or
approved
by
a
state
or
federal
agency
15
based
on
competent
and
reliable
scientific
evidence,
and
that
16
the
consumer
should
use
the
product
at
the
consumer’s
own
17
risk.
The
statement
required
under
this
section
shall
be
18
developed
by
the
board
of
pharmacy
and
shall
be
consistent
19
with
the
rules
adopted
by
the
department
of
inspections
and
20
appeals
pursuant
to
chapter
204
and
with
applicable
federal
21
regulations
promulgated
by
the
United
States
food
and
drug
22
administration.
This
section
shall
not
apply
to
a
medical
23
cannabidiol
manufacturer
licensed
pursuant
to
chapter
124E.
24
EXPLANATION
25
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
26
the
explanation’s
substance
by
the
members
of
the
general
assembly.
27
This
bill
relates
to
the
regulation
of
certain
tobacco
and
28
hemp-related
products.
29
Division
I
of
the
bill
requires
a
person
who
engages
in
30
the
business
of
a
device
retailer
through
a
retail
outlet
31
or
delivery
sales
to
receive
and
hold
a
permit
as
a
tobacco
32
retailer,
comply
with
provisions
applicable
to
a
tobacco
33
retailer,
sell
tobacco
products
in
addition
to
devices
at
the
34
retail
outlet
or
through
delivery
sales,
and
hold
a
permit
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as
a
device
retailer.
The
bill
provides
for
the
application
1
for
and
issuance
of
device
retailer
permits
by
cities
and
2
counties
depending
upon
the
location
of
the
retailer;
requires
3
the
payment
of
a
fee
for
each
permit;
and
provides
for
annual
4
expiration
of
the
permits.
The
bill
also
requires
device
5
retailer
permit
holders
to
keep
certain
records
and
submit
6
reports
to
the
department
of
revenue;
establishes
requirements
7
for
the
sale
of
devices
including
that
a
device
retailer
shall
8
not
sell,
give,
or
otherwise
supply
a
device
to
any
person
9
under
21
years
of
age
and
must
verify
the
age
of
all
purchasers
10
of
devices;
and
provides
that
a
device
retailer
shall
only
11
display
and
sell
devices
in
a
location
where
the
device
12
retailer
ensures
that
the
devices
are
not
visible
to
a
person
13
younger
than
21
years
of
age
and
where
no
person
younger
than
14
21
years
of
age
is
present
or
permitted
to
enter
at
any
time.
15
The
bill
establishes
requirements
for
the
delivery
sale
16
of
devices
including
permit
requirements
and
restrictions
17
including
all
devices
delivered
by
delivery
sale
directly
to
18
a
resident
of
this
state
shall
be
delivered
by
a
holder
of
19
a
device
delivery
sale
permit;
that
a
device
delivery
sale
20
permit
holder
shall
only
deliver
devices
by
delivery
sale
to
21
a
resident
of
this
state
who
is
at
least
21
years
of
age,
for
22
the
resident’s
personal
use
and
consumption
and
not
for
resale;
23
all
devices
delivered
by
delivery
sale
directly
to
a
resident
24
of
this
state
shall
be
conspicuously
labeled
with
the
words
25
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
REQUIRED
26
FOR
DELIVERY”
or
with
an
alternative
wording
preapproved
by
27
the
director
of
revenue;
a
device
delivery
sale
permit
holder
28
shall
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
29
and
shall
obtain
the
signature
of
a
person
age
21
or
older
30
as
a
condition
of
delivery;
and
that
a
device
delivery
sale
31
permit
holder
shall
maintain
records
of
devices
delivered
which
32
include
certain
information
that
must
be
maintained
for
five
33
years.
34
The
bill
provides
for
the
imposition,
collection,
and
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43
payment
of
sales
and
excise
taxes
on
the
retail
sale,
including
1
delivery
sales,
of
devices.
Moneys
from
permit
fees,
with
the
2
exception
of
city
and
county
permit
fees,
and
excise
taxes
3
imposed
and
collected
under
the
bill,
are
to
be
deposited
in
4
the
specialty
courts
program
fund
created
in
the
bill
to
be
5
used
for
the
purpose
of
the
support
of
specialty
courts
to
6
address
underlying
substance
use
disorder-related
and
mental
7
health-related
issues
that
contribute
to
the
contact
of
8
individuals
with
the
justice
system.
9
The
bill
provides
penalties
for
violations
of
the
bill.
10
The
applicable
provisions
of
Code
chapter
453A
(cigarette
and
11
tobacco
taxes
and
regulation
of
alternative
nicotine
products
12
and
vapor
products)
including
penalties
and
license
suspension
13
and
revocation
provisions
and
penalties
applicable
to
those
14
other
than
permit
holders
apply
to
tobacco
retailers
who
are
15
also
device
retailer
permit
holders
or
device
delivery
sale
16
permit
holders
as
well
as
to
those
who
are
not
permit
holders.
17
Additionally,
a
person
holding
a
device
retailer
permit
18
or
a
device
delivery
sale
permit
who
violates
the
bill
by
19
marketing
or
selling
a
device
to
be
used
or
attempted
to
be
20
used
in
combination
with
a
controlled
substance
to
knowingly
21
or
intentionally
and
primarily
inject,
ingest,
inhale,
or
22
otherwise
introduce
into
the
human
body
a
controlled
substance,
23
commits
a
serious
misdemeanor
and
is
also
subject
to
permit
24
revocation.
A
serious
misdemeanor
is
punishable
by
confinement
25
for
no
more
than
one
year
and
a
fine
of
at
least
$430
but
not
26
more
than
$2,560.
27
If
a
person
holding
a
device
retailer
permit
or
a
device
28
delivery
sale
permit
willfully
violates
the
bill,
the
29
department
shall
revoke
the
permit
upon
notice
and
hearing.
30
In
addition
to
any
other
applicable
penalties,
a
device
31
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
32
who
violates
the
Code
chapter
is
subject
to
a
civil
penalty
33
of
$500
for
a
first
violation,
a
civil
penalty
of
$1,000
for
34
a
second
violation,
and
a
third
violation
constitutes
grounds
35
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for
suspension
or
revocation
of
the
permit.
A
person
other
1
than
a
device
retailer
permit
holder
or
a
device
delivery
sale
2
permit
holder,
including
a
person
who
engages
in
the
business
3
of
a
device
retailer
at
a
place
of
business
or
through
delivery
4
sales
without
holding
an
applicable,
valid
permit
under
the
5
bill,
who
violates
the
Code
chapter
is
subject
to
a
civil
6
penalty
of
$1,000
for
a
first
violation,
a
civil
penalty
of
7
$2,000
for
a
second
violation,
and
a
civil
penalty
of
$5,000
8
for
a
third
or
subsequent
violation.
9
Division
II
of
the
bill
relates
to
claims
made
regarding
10
hemp
products
and
consumable
hemp
products
sold
at
retail.
11
The
bill
provides
that
unless
a
state
or
federal
agency
has
12
substantiated
and
approved
the
efficacy
and
safety
claims
of
a
13
product
based
on
competent
and
reliable
scientific
evidence,
14
a
person
engaging
in
the
retail
sale
in
this
state
of
a
hemp
15
product
or
a
consumable
hemp
product
that
contains
hemp-derived
16
cannabidiol,
shall
include
on
the
product’s
principal
display
17
panel,
a
statement
that
the
product
may
or
may
not
contain
18
the
ingredients
stated
on
the
label,
that
the
efficacy
and
19
safety
of
the
product
have
not
been
substantiated
or
approved
20
by
a
state
or
federal
agency
based
on
competent
and
reliable
21
scientific
evidence,
and
that
the
consumer
should
use
the
22
product
at
the
consumer’s
own
risk.
The
statement
required
23
under
the
bill
shall
be
developed
by
the
board
of
pharmacy
and
24
shall
be
consistent
with
the
rules
adopted
by
the
department
25
of
inspections
and
appeals
pursuant
to
Code
chapter
204
(Iowa
26
hemp
Act)
and
with
applicable
United
States
food
and
drug
27
administration
regulations.
This
provision
of
the
bill
does
28
not
apply
to
a
medical
cannabidiol
manufacturer
licensed
29
pursuant
to
Code
chapter
124E
(medical
cannabidiol
Act).
By
30
operation
of
law,
the
violation
of
this
provision
is
a
serious
31
misdemeanor
as
well
as
an
unfair
practice
under
Code
section
32
714.16.
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