H.F. 432 Section 1. NEW SECTION . 127.1 Definitions. 1 For purposes of this chapter, unless the context otherwise 2 requires: 3 1. “Employee” means any employee, contract employee, or 4 agent of a retailer. 5 2. “Energy drink” means a beverage that exceeds a caffeine 6 or other methylxanthine content of ten milligrams per ounce and 7 is classified as a dietary supplement by the federal food and 8 drug administration. 9 3. “Retailer” means a person or business entity engaged in 10 this state in the business of selling energy drinks on a retail 11 basis. 12 Sec. 2. NEW SECTION . 127.2 Energy drinks —— persons under 13 legal age. 14 1. A person shall not sell, give, or otherwise supply an 15 energy drink to any person under eighteen years of age. 16 2. A person under eighteen years of age shall not consume or 17 possess with the intent to consume an energy drink. 18 3. Possession of an energy drink by an individual under 19 eighteen years of age does not constitute a violation under 20 this section if the individual under eighteen years of 21 age possesses the energy drink as part of the individual’s 22 employment and the individual is employed by a person who 23 offers for sale or sells energy drinks. 24 4. a. A person shall not be guilty of a violation of this 25 section if conduct that would otherwise constitute a violation 26 is performed to assess compliance with this section if any of 27 the following applies: 28 (1) The compliance effort is conducted by or under the 29 supervision of law enforcement officers. 30 (2) The compliance effort is conducted with the advance 31 knowledge of law enforcement officers and reasonable measures 32 are adopted by those conducting the effort to ensure that 33 consumption of energy drinks by individuals under eighteen 34 years of age does not result from participation by any 35 -1- LSB 1981YH (10) 85 rn/nh 1/ 6

H.F. 432 individual under eighteen years of age in the compliance 1 effort. 2 b. For the purposes of this subsection, “law enforcement 3 officer” means a peace officer as defined in section 801.4 and 4 includes persons designated under section 127.3, subsection 5 5 to enforce this section. 6 Sec. 3. NEW SECTION . 127.3 Penalties. 7 1. A person, other than a retailer or employee of a 8 retailer, who violates section 127.2, subsection 1, commits a 9 simple misdemeanor. 10 2. An employee of a retailer who violates section 127.2, 11 subsection 1, commits a simple misdemeanor punishable as a 12 scheduled violation under section 805.8C, subsection 10, 13 paragraph “a” . 14 3. A retailer who violates section 127.2, subsection 1, or 15 a retailer whose employee violates section 127.2, subsection 1, 16 shall be assessed a civil penalty upon hearing and notice as 17 provided in subsection 5 as follows: 18 a. If the violation is a first offense, the retailer shall 19 be assessed a civil penalty in the amount of three hundred 20 dollars. 21 b. If the violation is a second offense, the retailer shall 22 be assessed a civil penalty in the amount of one thousand five 23 hundred dollars. 24 c. If the violation is a third offense, the retailer shall 25 be assessed a civil penalty in the amount of one thousand five 26 hundred dollars and may be prohibited from selling energy 27 drinks for a period of up to thirty days. 28 d. If the violation is a fourth offense, the retailer shall 29 be assessed a civil penalty in the amount of one thousand five 30 hundred dollars and may be prohibited from selling energy 31 drinks for a period of up to sixty days. 32 e. If the violation is a fifth or subsequent offense, the 33 retailer shall be assessed a civil penalty in the amount of 34 one thousand five hundred dollars and shall be prohibited from 35 -2- LSB 1981YH (10) 85 rn/nh 2/ 6

H.F. 432 selling energy drinks for a period of three years from the date 1 of the assessment of the civil penalty. 2 4. A person who violates section 127.2, subsection 2, is 3 subject to the following, as applicable: 4 a. A civil penalty pursuant to section 805.8C, subsection 5 10, paragraph “b” . Notwithstanding section 602.8106 or 6 any other provision to the contrary, any civil penalty paid 7 under this subsection shall be retained by the city or county 8 enforcing the violation. 9 b. If the violation is a first offense, performance of eight 10 hours of community work requirements, unless waived by the 11 court. 12 c. If the violation is a second offense, performance of 13 twelve hours of community work requirements. 14 d. If the violation is a third or subsequent offense, 15 performance of sixteen hours of community work requirements. 16 5. A city or a county may enforce this section. In the 17 event of a violation of subsection 3, a retailer shall be 18 provided an opportunity to be heard upon ten days’ written 19 notice by restricted certified mail stating the alleged 20 violation and the time and place at which the retailer may 21 appear and be heard. A city or county taking legal action 22 under this section shall report violations and penalties 23 imposed to the department of public safety within thirty days 24 of the penalty being assessed. A civil penalty assessed 25 against a retailer shall be collected by the clerk of the 26 district court and shall be distributed as provided in section 27 602.8105, subsection 4. 28 Sec. 4. NEW SECTION . 127.4 Seizure of false or altered 29 driver’s license or nonoperator’s identification card. 30 If a retailer or an employee of a retailer has a reasonable 31 belief based on factual evidence that a driver’s license as 32 defined in section 321.1, subsection 20A, or nonoperator’s 33 identification card issued pursuant to section 321.190 offered 34 by a person who wishes to purchase an energy drink is altered 35 -3- LSB 1981YH (10) 85 rn/nh 3/ 6

H.F. 432 or falsified or belongs to another person, the retailer or 1 employee may retain the driver’s license or nonoperator’s 2 identification card. The provisions of section 453A.4 with 3 regard to the procedures used by permittees under chapter 453A, 4 or employees thereof, for the retention and reporting of false 5 or altered driver’s licenses or nonoperator’s identification 6 cards shall apply to the retention of a driver’s license or 7 nonoperator’s identification card pursuant to this section. 8 Sec. 5. Section 602.8105, subsection 4, Code 2013, is 9 amended to read as follows: 10 4. The clerk of the district court shall collect a civil 11 penalty assessed against a retailer pursuant to section 126.23B 12 or section 127.3 . Any moneys collected from the civil penalty 13 shall be distributed to the city or county that brought the 14 enforcement action for a violation of section 126.23A or 15 section 127.2 . 16 Sec. 6. Section 805.8C, Code 2013, is amended by adding the 17 following new subsection: 18 NEW SUBSECTION . 10. Energy drink violations. 19 a. For violations of section 127.2, subsection 1, by an 20 employee of a retailer, the scheduled fine is as follows: 21 (1) If the violation is a first offense, the scheduled fine 22 is one hundred dollars. 23 (2) If the violation is a second offense, the scheduled fine 24 is two hundred fifty dollars. 25 (3) If the violation is a third or subsequent offense, the 26 scheduled fine is five hundred dollars. 27 b. For violations of section 127.2, subsection 2, the 28 scheduled fine is as follows and is a civil penalty, and the 29 criminal penalty surcharge under section 911.1 shall not be 30 added to the penalty, and the court costs pursuant to section 31 805.9, subsection 6, shall not be imposed: 32 (1) If the violation is a first offense, the scheduled fine 33 is fifty dollars. 34 (2) If the violation is a second offense, the scheduled fine 35 -4- LSB 1981YH (10) 85 rn/nh 4/ 6

H.F. 432 is one hundred dollars. 1 (3) If the violation is a third or subsequent offense, the 2 scheduled fine is two hundred fifty dollars. 3 EXPLANATION 4 This bill prohibits the sale to, or consumption or 5 possession of energy drinks by, persons under 18 years of 6 age. The bill defines an “energy drink” to mean a beverage 7 that exceeds a caffeine or other methylxanthine content of 8 10 milligrams per ounce and that is classified as a dietary 9 supplement by the federal food and drug administration. 10 The bill provides that a person shall not sell, give, 11 or otherwise supply an energy drink to any person under 18 12 years of age, and that a person under 18 years of age shall 13 not consume or possess with the intent to consume an energy 14 drink. The bill states that possession of an energy drink 15 by an individual under 18 years of age does not constitute 16 a violation if the individual under eighteen years of age 17 possesses the energy drink pursuant to their employment and 18 the individual is employed by a person who offers for sale or 19 sells energy drinks. The bill provides that a person shall 20 not be guilty of a violation if conduct that would otherwise 21 constitute a violation is performed to assess compliance with 22 the bill’s provisions. 23 The bill provides that if a person other than a retailer 24 or employee of a retailer sells, gives, or supplies an energy 25 drink to a person under 18, the person is guilty of a simple 26 misdemeanor. A simple misdemeanor is punishable by confinement 27 for no more than 30 days or a fine of at least $65 but not more 28 than $625 or by both. The bill provides that such actions 29 by an employee of a retailer constitute a simple misdemeanor 30 punishable by a scheduled fine of $100 for a first offense, 31 $250 for a second offense, and $500 for a third or subsequent 32 offense. The bill provides that a retailer who engages in such 33 actions, or whose employee engages in such actions, shall be 34 subject to a civil penalty of $300 for a first offense, $1,500 35 -5- LSB 1981YH (10) 85 rn/nh 5/ 6

H.F. 432 for a second offense, $1,500 and a prohibition from selling 1 energy drinks for up to 30 days for a third offense, $1,500 2 and a prohibition from selling energy drinks for up to 60 days 3 for a fourth offense, and $1,500 and a mandatory prohibition 4 from selling energy drinks for three years following the date 5 of assessment of the civil penalty for a fifth or subsequent 6 offense. 7 The bill provides that if a person under 18 years of age 8 possesses or consumes an energy drink, they are subject to a 9 scheduled violation civil penalty of $50 for a first offense, 10 $100 for a second offense, and $250 for a third or subsequent 11 offense. The person shall also be subject to eight hours of 12 community work requirements unless waived by the court for a 13 first offense, 12 hours for a second offense, and 16 hours for 14 a third or subsequent offense. 15 The bill authorizes a city or county to enforce the bill’s 16 provisions, and directs a city or county to report violations 17 and penalties to the department of public safety within 30 days 18 of the penalty being assessed. With regard to violations by 19 a retailer or a retailer whose employee commits a violation, 20 the bill specifies that the retailer shall be provided an 21 opportunity to be heard upon 10 days’ written notice by 22 restricted certified mail stating the alleged violation and the 23 time and place at which the retailer may appear and be heard. 24 The bill specifies that civil penalties assessed against a 25 retailer shall be collected by the clerk of the district 26 court and distributed to the city or county that brought the 27 enforcement action. 28 Additionally, the bill specifies procedures for the 29 retention of a driver’s license or nonoperator’s identification 30 card by a retailer or an employee of a retailer if they have a 31 reasonable belief based on factual evidence that the license or 32 card offered by a person who wishes to purchase an energy drink 33 is altered or falsified or belongs to another person. 34 -6- LSB 1981YH (10) 85 rn/nh 6/ 6