Bill Text: IA SSB3101 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the regulation of vapor products, and providing penalties.(See SF 2402.)
Spectrum: Committee Bill
Status: (Introduced) 2024-02-28 - Committee report approving bill, renumbered as SF 2402. [SSB3101 Detail]
Download: Iowa-2023-SSB3101-Introduced.html
Senate
Study
Bill
3101
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
vapor
products,
and
1
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
453A.19,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
5.
For
the
purpose
of
enabling
the
3
department
to
determine
compliance
with
subchapter
III,
the
4
department
shall
have
the
right
to
inspect
any
premises
of
the
5
holder
of
an
Iowa
permit
located
within
the
state
of
Iowa
where
6
vapor
products
are
stored,
transported,
sold,
or
offered
for
7
sale
or
exchanged,
to
examine
all
stocks
of
vapor
products
of
8
the
permit
holder,
and
to
examine
all
of
the
records
required
9
to
be
kept
or
any
other
records
that
may
be
kept
incident
to
10
the
conduct
of
the
vapor
products
business
of
the
permit
holder
11
or
any
other
person
dealing
in
vapor
products.
It
shall
be
12
unlawful
for
any
such
permit
holder
to
fail
to
produce
upon
13
demand
of
the
department
any
records
required
to
be
kept,
or
to
14
hinder
or
prevent
in
any
manner
the
inspection
of
the
records
15
or
the
examination
of
the
premises
or
stock
as
specified
in
16
this
subsection.
17
Sec.
2.
Section
453A.35,
subsection
1,
paragraph
b,
Code
18
2024,
is
amended
to
read
as
follows:
19
b.
The
revenues
generated
from
the
tax
on
cigarettes
20
pursuant
to
section
453A.6,
subsection
1
,
and
from
the
tax
on
21
tobacco
products
as
specified
in
section
453A.43,
subsections
22
1,
2,
3,
and
4
,
and
from
the
fees
and
penalties
specified
in
23
subchapter
III
shall
be
credited
to
the
health
care
trust
fund
24
created
in
section
453A.35A
.
25
Sec.
3.
Section
453A.35A,
Code
2024,
is
amended
to
read
as
26
follows:
27
453A.35A
Health
care
trust
fund.
28
1.
A
health
care
trust
fund
is
created
in
the
office
of
29
the
treasurer
of
state.
The
fund
consists
of
the
revenues
30
generated
from
the
tax
on
cigarettes
pursuant
to
section
31
453A.6,
subsection
1
,
and
from
the
tax
on
tobacco
products
32
as
specified
in
section
453A.43,
subsections
1,
2,
3,
and
4
,
33
and
from
the
fees
and
penalties
specified
in
subchapter
III,
34
that
are
credited
to
the
health
care
trust
fund,
annually,
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pursuant
to
section
453A.35
.
Moneys
in
the
fund
shall
be
1
separate
from
the
general
fund
of
the
state
and
shall
not
be
2
considered
part
of
the
general
fund
of
the
state.
However,
the
3
fund
shall
be
considered
a
special
account
for
the
purposes
4
of
section
8.53
relating
to
generally
accepted
accounting
5
principles.
Moneys
in
the
fund
shall
be
used
only
as
specified
6
in
this
section
and
shall
be
appropriated
only
for
the
uses
7
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
8
and
shall
not
be
transferred,
used,
obligated,
appropriated,
9
or
otherwise
encumbered,
except
as
provided
in
this
section
.
10
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
11
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
12
the
fund.
13
2.
Moneys
in
the
fund
shall
be
used
only
for
purposes
14
related
to
health
care,
substance
use
disorder
treatment
and
15
prevention,
and
tobacco
use
prevention,
cessation,
and
control
,
16
including
but
not
limited
to
the
administration
and
enforcement
17
of
subchapter
III
.
18
Sec.
4.
NEW
SECTION
.
453A.52
Vapor
products
directory
——
19
established
——
requirements.
20
1.
By
August
1,
annually,
following
the
date
the
director
21
first
makes
the
vapor
products
directory
available
as
specified
22
in
section
453A.52A,
every
vapor
products
manufacturer
where
23
vapor
products
are
sold
in
the
state,
whether
directly
or
24
through
a
distributor,
wholesaler,
retailer,
or
similar
25
intermediary
or
intermediaries,
shall
certify
under
penalty
of
26
perjury
on
a
form
and
in
the
manner
prescribed
by
the
director,
27
that
the
vapor
products
manufacturer
agrees
to
comply
with
this
28
subchapter
and
to
one
of
the
following:
29
a.
That
the
vapor
products
manufacturer
has
received
a
30
marketing
authorization
or
similar
order
for
the
vapor
product
31
from
the
United
States
food
and
drug
administration
pursuant
32
to
21
U.S.C.
§387j.
33
b.
That
the
vapor
product
was
marketed
in
the
United
34
States
as
of
August
8,
2016,
the
vapor
products
manufacturer
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submitted
a
premarket
tobacco
product
application
for
the
vapor
1
product
to
the
United
States
food
and
drug
administration
2
pursuant
to
21
U.S.C.
§387j
on
or
before
September
9,
2020,
3
and
the
application
either
remains
under
review
by
the
United
4
States
food
and
drug
administration
or
a
final
decision
on
the
5
application
has
not
otherwise
taken
effect.
6
2.
A
vapor
products
manufacturer
shall
submit
a
7
certification
form
that
separately
lists
each
of
the
vapor
8
products
manufacturer’s
vapor
products
sold
in
this
state.
9
3.
Each
initial
and
annual
certification
form
required
to
10
be
submitted
under
this
section
shall
be
accompanied
by
both
11
of
the
following:
12
a.
A
copy
of
the
marketing
authorization
or
other
order
13
for
each
vapor
product
issued
by
the
United
States
food
and
14
drug
administration
pursuant
to
21
U.S.C.
§387j,
or
evidence
15
that
the
premarket
tobacco
product
application
for
each
vapor
16
product
was
submitted
to
the
United
States
food
and
drug
17
administration
and
a
final
authorization
or
order
has
not
yet
18
taken
effect.
19
b.
A
payment
of
one
hundred
dollars
for
each
vapor
product
20
listed
in
the
certification.
21
4.
A
vapor
products
manufacturer
required
to
submit
a
22
certification
form
under
this
section
shall
notify
the
director
23
within
thirty
business
days
of
any
material
change
to
the
24
certification
form,
including
the
issuance
or
denial
of
a
25
marketing
authorization
or
other
order
by
the
United
States
26
food
and
drug
administration
pursuant
to
21
U.S.C.
§387j,
or
27
any
other
order
or
action
by
the
United
States
food
and
drug
28
administration
that
affects
the
authorization
of
the
vapor
29
product
to
be
introduced
or
delivered
into
interstate
commerce
30
for
commercial
distribution
in
the
United
States.
31
5.
a.
The
director
shall
maintain
and
make
publicly
32
available
a
vapor
products
directory
that
lists
all
33
vapor
products
manufacturers
and
vapor
products
for
which
34
certification
forms
have
been
submitted.
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b.
The
director
shall
make
the
directory
available
on
the
1
department’s
internet
site.
2
c.
The
director
shall
update
the
directory
as
necessary
in
3
order
to
correct
mistakes,
ensure
accuracy,
and
add
or
remove
4
vapor
products
on
at
least
a
monthly
basis.
5
6.
a.
The
director
shall
provide
a
vapor
products
6
manufacturer
with
notice
and
an
opportunity
to
cure
7
deficiencies
before
removing
the
vapor
products
manufacturer
or
8
a
vapor
product
from
the
directory.
9
b.
The
director
shall
not
remove
a
vapor
products
10
manufacturer
or
the
vapor
products
manufacturer’s
vapor
product
11
from
the
directory
until
at
least
fifteen
business
days
after
12
the
vapor
products
manufacturer
has
been
given
notice
of
an
13
intended
action.
Notice
shall
be
sufficient
and
be
deemed
14
immediately
received
by
a
vapor
products
manufacturer
if
the
15
notice
is
sent
either
electronically
or
by
facsimile
to
an
16
electronic
mail
address
or
facsimile
number,
as
applicable,
17
provided
by
the
vapor
products
manufacturer
in
the
vapor
18
products
manufacturer’s
most
recent
certification
filed
under
19
this
section.
20
c.
The
vapor
products
manufacturer
shall
have
fifteen
21
business
days
from
the
date
of
service
of
the
notice
of
22
intended
action
to
establish
that
the
vapor
products
23
manufacturer
or
the
vapor
product
should
be
included
in
the
24
directory.
25
d.
A
determination
by
the
director
to
not
include
or
to
26
remove
a
vapor
products
manufacturer
or
a
vapor
product
from
27
the
directory
shall
be
subject
to
review
by
the
filing
of
a
28
civil
action
for
prospective
declaratory
or
injunctive
relief.
29
7.
If
a
vapor
product
is
removed
from
the
directory,
each
30
retailer,
distributor,
and
wholesaler
shall
have
twenty-one
31
business
days
from
the
day
such
vapor
product
is
removed
from
32
the
directory
to
remove
the
vapor
product
from
its
inventory
33
and
return
the
vapor
product
to
the
vapor
products
manufacturer
34
for
disposal.
After
twenty-one
business
days
following
removal
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from
the
directory,
the
vapor
products
of
a
vapor
products
1
manufacturer
identified
in
the
notice
of
removal
are
contraband
2
and
are
subject
to
seizure,
forfeiture,
and
destruction,
and
3
shall
not
be
purchased
or
sold
in
the
state.
The
cost
of
such
4
seizure,
forfeiture,
and
destruction
shall
be
borne
by
the
5
person
from
whom
the
vapor
products
are
confiscated.
6
Sec.
5.
NEW
SECTION
.
453.52A
Vapor
products
——
7
requirements.
8
Beginning
October
1,
2024,
or
on
the
date
the
director
9
first
makes
the
vapor
products
directory
available
for
public
10
inspection
on
the
department’s
internet
site,
whichever
is
11
later,
all
of
the
following
shall
apply
to
vapor
products
in
12
this
state:
13
1.
A
person
shall
not
sell
or
offer
for
sale
a
vapor
product
14
in
this
state
that
is
not
included
in
the
vapor
products
15
directory,
and
a
vapor
products
manufacturer
shall
not
sell,
16
either
directly
or
through
a
distributor,
wholesaler,
retailer,
17
or
similar
intermediary
or
intermediaries,
a
vapor
product
18
in
this
state
that
is
not
included
in
the
vapor
products
19
directory.
20
2.
A
retailer
shall
purchase
vapor
products
for
resale
to
21
consumers
only
from
a
distributor
or
subjobber
with
a
valid
22
license
issued
pursuant
to
this
chapter.
23
Sec.
6.
NEW
SECTION
.
453.52B
Penalties.
24
1.
A
retailer,
distributor,
or
wholesaler
who
sells
or
25
offers
for
sale
a
vapor
product
in
this
state
that
is
not
26
included
in
the
vapor
products
directory
established
in
27
this
subchapter
shall
be
subject
to
all
of
the
following,
as
28
applicable:
29
a.
A
civil
penalty
of
three
hundred
dollars
per
day
for
each
30
vapor
product
offered
for
sale
in
violation
of
this
subsection
31
until
the
offending
vapor
product
is
removed
from
the
market
32
or
until
the
offending
vapor
product
is
properly
listed
on
the
33
directory.
34
b.
For
a
second
violation
within
a
period
of
two
years,
a
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retailer
shall
be
assessed
a
civil
penalty
of
one
thousand
five
1
hundred
dollars
or
the
retailer’s
permit
shall
be
suspended
for
2
a
period
of
thirty
days.
3
c.
For
a
third
violation
within
a
period
of
three
years,
a
4
retailer
shall
be
assessed
a
civil
penalty
of
one
thousand
five
5
hundred
dollars
and
the
retailer’s
permit
shall
be
suspended
6
for
a
period
of
thirty
days.
7
d.
For
a
fourth
violation
within
a
period
of
three
years,
a
8
retailer
shall
be
assessed
a
civil
penalty
of
one
thousand
five
9
hundred
dollars
and
the
retailer’s
permit
shall
be
suspended
10
for
a
period
of
sixty
days.
11
e.
For
a
fifth
violation
within
a
period
of
four
years,
the
12
retailer’s
permit
shall
be
revoked.
13
2.
A
vapor
products
manufacturer
whose
vapor
products
are
14
not
listed
in
the
vapor
products
directory
and
are
sold
in
this
15
state,
whether
directly
or
through
a
distributor,
wholesaler,
16
retailer,
or
similar
intermediary
or
intermediaries,
is
subject
17
to
a
civil
penalty
of
one
thousand
dollars
per
day
for
each
18
vapor
product
offered
for
sale
in
violation
of
this
subsection
19
until
the
offending
vapor
product
is
removed
from
the
market
20
or
until
the
offending
vapor
product
is
properly
listed
on
the
21
directory.
22
3.
Any
vapor
products
manufacturer
that
knowingly
makes
a
23
false
representation
in
any
of
the
information
required
by
this
24
subchapter
is
guilty
of
a
serious
misdemeanor
for
each
false
25
representation.
26
4.
Knowingly
shipping
or
receiving
vapor
products
in
27
violation
of
this
subchapter
is
an
unfair
practice
and
a
28
violation
of
section
714.16.
29
5.
In
any
action
brought
by
the
state
to
enforce
this
30
subchapter,
the
state
shall
be
entitled
to
recover
the
costs
31
of
investigation
and
prosecution,
expert
witness
fees,
court
32
costs,
and
reasonable
attorney
fees.
33
Sec.
7.
NEW
SECTION
.
453A.52C
Compliance
checks.
34
1.
Each
distributor
or
retailer
that
distributes
or
sells
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vapor
products
in
this
state
shall
be
subject
to
at
least
1
two
unannounced
compliance
checks
annually
for
purposes
of
2
enforcing
this
subchapter.
3
2.
Any
unannounced
follow-up
compliance
checks
of
a
4
noncompliant
retailer
or
distributor
shall
be
conducted
within
5
thirty
business
days
after
any
violation
of
this
subchapter.
6
3.
The
director
shall
publish
the
results
of
all
compliance
7
checks
performed
under
this
section
at
least
annually
and
shall
8
make
the
results
available
to
the
public
upon
request.
9
Sec.
8.
NEW
SECTION
.
453A.52D
Agent
for
service
of
process.
10
1.
A
nonresident
vapor
products
manufacturer
that
has
not
11
registered
to
do
business
in
the
state
as
a
foreign
corporation
12
or
business
entity
shall,
as
a
condition
precedent
to
being
13
included
or
retained
in
the
vapor
products
directory,
appoint
14
and
continually
engage
without
interruption
the
services
of
15
an
agent
in
this
state
to
act
as
agent
for
service
of
process
16
on
whom
all
process,
and
any
action
or
proceeding
against
the
17
vapor
products
manufacturer
concerning
or
arising
out
of
the
18
enforcement
of
this
subchapter,
may
be
served
in
any
manner
19
authorized
by
law.
Such
service
shall
constitute
legal
and
20
valid
service
of
process
on
the
vapor
products
manufacturer.
21
The
vapor
products
manufacturer
shall
provide
the
name,
22
address,
telephone
number,
and
proof
of
the
appointment
and
23
availability
of
such
agent
to
the
director.
24
2.
The
vapor
products
manufacturer
shall
provide
notice
25
to
the
director
thirty
calendar
days
prior
to
termination
of
26
the
authority
of
an
agent
and
shall
further
provide
proof
to
27
the
satisfaction
of
the
director
of
the
appointment
of
a
new
28
agent
no
less
than
five
calendar
days
prior
to
the
termination
29
of
an
existing
agent
appointment.
In
the
event
an
agent
30
terminates
an
agency
appointment,
the
manufacturer
shall
notify
31
the
director
of
the
termination
within
five
calendar
days
and
32
shall
include
proof
to
the
satisfaction
of
the
director
of
the
33
appointment
of
a
new
agent.
34
3.
A
vapor
products
manufacturer
whose
vapor
products
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are
sold
in
this
state,
who
has
not
appointed
and
engaged
1
the
services
of
an
agent
as
required
by
this
section,
shall
2
be
deemed
to
have
appointed
the
secretary
of
state
as
its
3
agent
for
service
of
process.
However,
the
appointment
of
the
4
secretary
of
state
as
agent
shall
not
satisfy
the
condition
5
precedent
for
the
vapor
products
manufacturer
to
be
included
or
6
retained
in
the
vapor
products
directory.
7
Sec.
9.
NEW
SECTION
.
453A.52E
Proceeds
paid
to
health
care
8
trust
fund.
9
The
revenues
generated
from
the
payment
of
fees
and
10
penalties
provided
for
under
this
subchapter
shall
be
credited
11
to
the
health
care
trust
fund
created
in
section
453A.35A
and
12
used
for
the
administration
and
enforcement
of
this
subchapter.
13
Sec.
10.
NEW
SECTION
.
453A.52F
Annual
reports.
14
By
January
15,
annually,
following
the
date
the
director
15
first
makes
the
vapor
products
directory
available
as
specified
16
in
section
453A.52A,
the
director
shall
submit
a
report
to
the
17
general
assembly
regarding
the
status
of
the
vapor
products
18
directory,
vapor
products
manufacturers,
the
vapor
products
19
included
in
the
directory,
revenue
and
expenditures
related
to
20
administration
of
this
subchapter,
and
enforcement
activities
21
undertaken
pursuant
to
this
subchapter.
22
Sec.
11.
NEW
SECTION
.
453A.52G
Adoption
of
rules.
23
The
director
may
adopt
rules
pursuant
to
chapter
17A
to
24
administer
this
subchapter.
25
Sec.
12.
CODE
EDITOR
DIRECTIVES.
26
1.
The
Code
editor
is
directed
to
create
a
new
subchapter
IV
27
in
chapter
453A
as
follows:
Subchapter
IV
shall
be
entitled
28
“Uniform
Application
of
Chapter”.
29
2.
The
Code
editor
shall
transfer
section
453A.56
to
the
new
30
subchapter
IV.
31
3.
The
Code
editor
is
directed
to
create
a
new
subchapter
32
III
in
chapter
453A
as
follows:
Subchapter
III
shall
be
33
entitled
“Vapor
Products
Directory
and
Regulation”
and
include
34
sections
453A.52A
through
453A.52G.
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4.
The
Code
editor
may
modify
subchapter
titles
if
necessary
1
and
is
directed
to
correct
internal
references
in
the
Code
as
2
necessary
due
to
enactment
of
this
section.
3
EXPLANATION
4
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
5
the
explanation’s
substance
by
the
members
of
the
general
assembly.
6
This
bill
relates
to
the
regulation
of
vapor
products
in
7
the
state.
The
bill
directs
the
Code
editor
to
create
a
8
new
subchapter
in
Code
chapter
453A
(cigarette
and
tobacco
9
taxes
and
regulation
of
alternative
nicotine
products
and
10
vapor
products)
to
be
entitled
“Vapor
Products
Directory
and
11
Regulation”.
12
The
bill
requires
that
by
August
1,
annually,
following
the
13
date
the
director
first
makes
the
vapor
products
directory
14
publicly
available,
every
vapor
products
manufacturer
whose
15
vapor
products
are
sold
in
the
state,
whether
directly
or
16
through
an
intermediary,
shall
certify
under
penalty
of
17
perjury
on
a
form
and
in
the
manner
prescribed
by
the
director
18
(director)
of
the
department
of
revenue
(DOR),
that
the
vapor
19
products
manufacturer
agrees
to
comply
with
the
new
Code
20
subchapter
and
has
either
received
a
marketing
authorization
21
or
similar
order
for
the
vapor
product
from
the
federal
food
22
and
drug
administration
(FDA);
or
that
the
vapor
product
was
23
marketed
in
the
United
States
as
of
August
8,
2016,
the
vapor
24
products
manufacturer
submitted
a
premarket
tobacco
product
25
application
for
the
vapor
product
to
the
FDA
on
or
before
26
September
9,
2020,
and
the
application
either
remains
under
27
review
by
the
FDA
or
a
final
decision
on
the
application
has
28
not
otherwise
taken
effect.
29
The
certification
must
separately
list
each
of
the
vapor
30
products
manufacturer’s
vapor
products
sold
in
the
state.
31
Each
initial
and
annual
certification
form
required
to
32
be
submitted
shall
be
accompanied
by
a
copy
of
either
the
33
FDA
marketing
authorization
or
other
order
for
each
vapor
34
product;
or
evidence
that
the
premarket
tobacco
product
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application
for
each
vapor
product
was
submitted
to
the
FDA
1
and
a
final
authorization
or
order
has
not
yet
taken
effect.
2
The
certification
must
also
be
accompanied
by
a
payment
of
3
$100
for
each
vapor
product
listed
in
the
certification.
A
4
vapor
products
manufacturer
required
to
submit
a
certification
5
form
shall
notify
the
director
within
30
business
days
of
6
any
material
change
to
the
certification
form,
including
any
7
change
in
the
federal
authorization
for
the
vapor
product.
The
8
director
shall
maintain
and
make
publicly
available
a
vapor
9
products
directory
that
lists
all
vapor
products
manufacturers
10
and
vapor
products
for
which
certification
forms
have
been
11
submitted.
The
directory
shall
be
available
on
DOR’s
internet
12
site,
and
the
director
shall
update
the
directory
on
at
least
a
13
monthly
basis.
14
The
director
shall
provide
a
vapor
products
manufacturer
15
with
notice
and
an
opportunity
to
cure
deficiencies
before
16
removing
the
vapor
products
manufacturer
or
a
vapor
product
17
from
the
directory.
The
bill
provides
the
process
and
time
18
frames
for
removing
a
vapor
products
manufacturer
or
vapor
19
product
from
the
directory.
A
determination
by
the
director
20
to
not
include
or
to
remove
a
vapor
products
manufacturer
or
21
a
vapor
product
from
the
directory
shall
be
subject
to
review
22
by
the
filing
of
a
civil
action
for
prospective
declaratory
23
or
injunctive
relief.
If
a
vapor
product
is
removed
from
the
24
directory,
the
bill
provides
the
process
and
time
frames
by
25
which
a
retailer,
distributor,
or
wholesaler
must
remove
the
26
vapor
product
from
inventory
and
return
the
vapor
product
to
27
the
vapor
products
manufacturer
for
disposal.
After
the
time
28
frame
specified,
the
vapor
products
in
the
notice
of
removal
29
are
contraband
and
are
subject
to
seizure,
forfeiture,
and
30
destruction,
and
shall
not
be
purchased
or
sold
in
the
state.
31
The
bill
provides
that
beginning
October
1,
2024,
or
on
the
32
date
the
director
first
makes
the
vapor
products
directory
33
available
for
public
inspection
on
DOR’s
internet
site,
34
whichever
is
later,
a
person
shall
not
sell
or
offer
for
sale
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a
vapor
product
in
this
state
that
is
not
included
in
the
1
vapor
products
directory
and
a
vapor
products
manufacturer
2
shall
not
sell,
either
directly
or
through
an
intermediary,
3
a
vapor
product
in
this
state
that
is
not
included
in
the
4
vapor
products
directory;
and
a
retailer
shall
purchase
vapor
5
products
for
resale
to
consumers
only
from
a
distributor
or
6
subjobber
with
a
valid
license
issued
pursuant
to
Code
chapter
7
453A.
8
The
bill
provides
for
civil
penalties
and
licensee
9
discipline
for
a
retailer,
distributor,
or
wholesaler
who
sells
10
or
offers
for
sale
a
vapor
product
in
this
state
that
is
not
11
included
in
the
vapor
products
directory,
based
on
the
number
12
of
violations
in
a
period
of
years.
13
A
vapor
products
manufacturer
whose
vapor
products
are
not
14
listed
in
the
vapor
products
directory
and
are
sold
in
this
15
state,
whether
directly
or
through
an
intermediary,
is
subject
16
to
a
civil
penalty
of
$1,000
per
day
for
each
vapor
product
17
offered
for
sale
in
violation
of
the
bill.
A
vapor
products
18
manufacturer
that
knowingly
makes
a
false
representation
in
19
any
of
the
information
required
by
the
new
Code
subchapter
is
20
guilty
of
a
serious
misdemeanor
for
each
false
representation.
21
A
serious
misdemeanor
is
punishable
by
confinement
for
no
more
22
than
one
year
and
a
fine
of
at
least
$430
but
not
more
than
23
$2,560.
24
Under
the
bill,
knowingly
shipping
or
receiving
vapor
25
products
in
violation
of
the
new
Code
subchapter
is
an
unfair
26
practice
and
a
violation
of
Code
section
714.16
(consumer
27
frauds).
28
The
bill
provides
that
each
distributor
or
retailer
that
29
distributes
or
sells
vapor
products
in
the
state
shall
be
30
subject
to
at
least
two
unannounced
compliance
checks
annually
31
for
purposes
of
enforcing
the
new
Code
subchapter,
and
that
32
any
unannounced
follow-up
compliance
checks
of
a
noncompliant
33
retailer
or
distributor
shall
be
conducted
within
30
business
34
days
after
any
violation
of
the
new
Code
subchapter.
The
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director
shall
publish
the
results
of
all
compliance
checks
1
performed
at
least
annually
and
shall
make
the
results
2
available
to
the
public
upon
request.
3
The
bill
requires
a
nonresident
vapor
products
manufacturer
4
that
has
not
registered
to
do
business
in
the
state
as
a
5
foreign
corporation
or
business
entity
to,
as
a
condition
6
precedent
to
being
included
or
retained
in
the
vapor
products
7
directory,
appoint
and
continually
engage
without
interruption
8
the
services
of
an
agent
in
this
state
to
act
as
agent
for
the
9
service
of
process.
The
bill
provides
the
requirements
for
10
instances
in
which
a
vapor
products
manufacturer
terminates
11
the
authority
of
an
agent
or
an
agent
terminates
an
agency
12
appointment.
If
a
vapor
products
manufacturer
whose
vapor
13
products
are
sold
in
the
state
has
not
appointed
and
engaged
14
the
services
of
an
agent
as
required,
the
vapor
products
15
manufacturer
is
deemed
to
have
appointed
the
secretary
of
state
16
as
its
agent
for
service
of
process.
However,
the
appointment
17
of
the
secretary
of
state
as
agent
shall
not
satisfy
the
18
condition
precedent
for
the
vapor
products
manufacturer
to
be
19
included
or
retained
in
the
vapor
products
directory.
20
The
bill
provides
that
the
revenues
generated
from
the
21
payment
of
fees
and
penalties
provided
for
under
the
new
Code
22
subchapter
shall
be
credited
to
the
health
care
trust
fund
and
23
used
for
the
administration
and
enforcement
of
the
new
Code
24
subchapter.
The
bill
makes
conforming
changes
in
Code
section
25
453A.35
(proceeds
made
to
general
fund
——
health
care
trust
26
fund)
and
Code
section
453A.35A
(health
care
trust
fund)
to
27
reflect
this
provision.
28
The
bill
also
makes
a
conforming
change
in
Code
section
29
453A.19
(examination
of
records
and
premises)
to
authorize
30
DOR,
in
determining
compliance
with
the
new
Code
subchapter,
31
to
have
the
right
to
inspect
any
premises
of
the
holder
of
32
an
Iowa
permit
located
within
the
state
of
Iowa
where
vapor
33
products
are
stored,
transported,
sold,
or
offered
for
sale
34
or
exchanged,
to
examine
all
stocks
of
vapor
products
of
the
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permit
holder,
and
to
examine
all
of
the
records
required
to
1
be
kept
or
any
other
records
that
may
be
kept
incident
to
the
2
conduct
of
the
vapor
products
business
of
the
permit
holder
or
3
any
other
person
dealing
in
vapor
products.
4
The
bill
requires
that
by
January
15,
annually,
following
5
the
director
first
makes
the
vapor
products
directory
6
publicly
available,
the
director
shall
submit
a
report
to
the
7
general
assembly
regarding
the
status
of
the
vapor
products
8
directory,
vapor
products
manufacturers,
the
vapor
products
9
included
in
the
directory,
revenue
and
expenditures
related
10
to
administration
of
the
new
Code
subchapter,
and
enforcement
11
activities
undertaken
pursuant
to
the
new
Code
subchapter.
12
The
bill
authorizes
the
director
to
adopt
administrative
13
rules
to
administer
the
new
Code
subchapter,
and
provides
Code
14
editor
directives
to
provide
for
creation
of
the
new
Code
15
subchapter,
a
conforming
transfer,
and
other
modifications
16
necessitated
by
the
bill.
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