SF 499 (LSB 2664XS (8) 88)

SENATE FILE 499

BY  CELSI

A BILL FOR

An Act relating to tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes, including establishing a minimum age for activities relative to these products, and making penalties applicable.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 321.216C, Code 2019, is amended to read as follows:
   321.216C  Use of driver’s license or nonoperator’s identification card by underage person to obtain tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes.
   A person who is under the age of eighteen twenty-one, who alters or displays or has in the person’s possession a fictitious or fraudulently altered driver’s license or nonoperator’s identification card and who uses the license or card to violate or attempt to violate section 453A.2, subsection 2, commits a simple misdemeanor punishable as a scheduled violation under section 805.8A, subsection 4. The court shall forward a copy of the conviction to the department.
    Sec. 2.  Section 453A.1, subsections 5 and 6, Code 2019, are amended by striking the subsections.
    Sec. 3.  Section 453A.1, Code 2019, is amended by adding the following new subsection:
   NEW SUBSECTION.  29A.  “Vending machine” means any self-service device offered for public use which, upon payment or insertion of loose tobacco product, dispenses, or assembles and dispenses, cigarettes or tobacco products, or which upon insertion of money, a token, or an object dispenses, or assembles and dispenses, cigarettes, tobacco products, alternative nicotine products, or vapor products.
    Sec. 4.  Section 453A.2, subsections 1, 2, and 3, Code 2019, are amended to read as follows:
   1.  A person shall not sell, give, or otherwise supply any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes to any person under eighteen twenty-one years of age.
   2.  A person under eighteen twenty-one years of age shall not smoke, use, possess, purchase, or attempt to purchase any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes.
   3.  Possession of tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes by an individual under eighteen twenty-one years of age does not constitute a violation under this section if the individual under eighteen twenty-one years of age possesses the tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes as part of the individual’s employment and the individual is employed by a person who holds a valid permit under this chapter or who lawfully offers for sale or sells cigarettes or tobacco products.
    Sec. 5.  Section 453A.2, subsection 8, paragraph a, subparagraph (2), Code 2019, is amended to read as follows:
   (2)  The compliance effort is conducted with the advance knowledge of law enforcement officers and reasonable measures are adopted by those conducting the effort to ensure that use of tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes by individuals under eighteen twenty-one years of age does not result from participation by any individual under eighteen twenty-one years of age in the compliance effort.
    Sec. 6.  Section 453A.5, subsection 1, Code 2019, is amended to read as follows:
   1.  The alcoholic beverages division of the department of commerce shall develop a tobacco compliance employee training program not to exceed two hours in length for employees and prospective employees of retailers, as defined in sections 453A.1 and 453A.42, to inform the employees about state and federal laws and regulations regarding the sale of tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes to persons under eighteen twenty-one years of age and compliance with and the importance of laws regarding the sale of tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes to persons under eighteen twenty-one years of age.
    Sec. 7.  Section 453A.6, subsection 8, Code 2019, is amended by striking the subsection.
    Sec. 8.  Section 453A.13, subsection 1, Code 2019, is amended to read as follows:
   1.  Permits required.  Every distributor, wholesaler, cigarette vendor, and retailer, now engaged or who desires to become engaged in the sale or use of cigarettes, upon which a tax is required to be paid, and every retailer now engaged or who desires to become engaged in selling, offering for sale, or distributing alternative nicotine products or vapor products, including through delivery sales, shall obtain a state or retail permit as a distributor, wholesaler, cigarette vendor, or retailer, as the case may be.
    Sec. 9.  Section 453A.13, subsection 2, paragraphs a and b, Code 2019, are amended to read as follows:
   a.  The department shall issue state permits to distributors, and wholesalers, and cigarette vendors, and to retailers that make delivery sales of alternative nicotine products and vapor products, subject to the conditions provided in this subchapter. If an out-of-state retailer makes delivery sales of alternative nicotine products or vapor products, an application shall be filed with the department and a permit shall be issued for the out-of-state retailer’s principal place of business. Cities may issue retail permits to retailers with a place of business located within their respective limits. County boards of supervisors may issue retail permits to retailers with a place of business in their respective counties, outside of the corporate limits of cities.
   b.  The department may deny the issuance of a permit to a distributor, wholesaler, vendor or retailer who is substantially delinquent in the payment of a tax due, or the interest or penalty on the tax, administered by the department at the time of application. If the applicant is a partnership, a permit may be denied if a partner is substantially delinquent on any delinquent tax, penalty or interest. If the applicant is a corporation, a permit may be denied if any officer having a substantial legal or equitable interest in the ownership of the corporation owes any delinquent tax, interest or penalty of the applicant corporation.
    Sec. 10.  Section 453A.13, subsection 3, paragraph a, Code 2019, is amended to read as follows:
   a.  All permits provided for in this subchapter shall expire on June 30 of each year. A permit shall not be granted or issued until the applicant has paid for the period ending June 30 next, to the department or the city or county granting the permit, the fees provided for in this subchapter. The annual state permit fee for a distributor, cigarette vendor, and wholesaler is one hundred dollars when the permit is granted during the months of July, August, or September. However, whenever a state permit holder operates more than one place of business, a duplicate state permit shall be issued for each additional place of business on payment of five dollars for each duplicate state permit, but refunds as provided in this subchapter do not apply to any duplicate permit issued.
    Sec. 11.  Section 453A.13, subsection 6, Code 2019, is amended to read as follows:
   6.  No sales without permit.  A distributor, wholesaler, cigarette vendor, or retailer shall not sell any cigarettes, alternative nicotine products, or vapor products until such application has been filed and the fee prescribed paid for a permit and until such permit is obtained and only while such permit is unrevoked and unexpired.
    Sec. 12.  Section 453A.36, subsection 6, Code 2019, is amended to read as follows:
   6.  Any sales The sale of tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes shall not be made through a cigarette vending machine are subject to rules and penalties relative to retail sales of tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes provided for in this chapter or through a self-service display. Cigarettes shall not be sold through any cigarette vending machine unless the cigarettes have been properly stamped or metered as provided by this subchapter, and in case of violation of this provision, the permit of the dealer authorizing retail sales of cigarettes shall be revoked. Payment of the permit fee as provided in section 453A.13 authorizes a cigarette vendor to sell tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes through vending machines. However, tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes shall not be sold through a vending machine unless the vending machine is located in a place where the retailer ensures that no person younger than eighteen years of age is present or permitted to enter at any time. Tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes shall not be sold through any cigarette vending machine if such products are placed together with any nontobacco product, other than matches, in the cigarette vending machine. This section does not require a retail permit holder to buy a cigarette vendor’s permit if the retail permit holder is in fact the owner of the cigarette vending machines and the machines are operated in the location described in the retail permit.
    Sec. 13.  Section 453A.36A, subsection 1, Code 2019, is amended to read as follows:
   1.  Except as provided in section 453A.36, subsection 6, a A retailer shall not sell or offer for sale tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes through the use of a self-service display.
    Sec. 14.  Section 453A.39, subsection 2, paragraphs b and c, Code 2019, are amended to read as follows:
   b.  A manufacturer, distributor, wholesaler, retailer, or distributing agent or agent thereof shall not give away any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes to any person under eighteen twenty-one years of age, or within five hundred feet of any playground, school, high school, or other facility when such facility is being used primarily by persons under age eighteen twenty-one for recreational, educational, or other purposes.
   c.  Proof of age shall be required if a reasonable person could conclude on the basis of outward appearance that a prospective recipient of a sample may be under eighteen twenty-one years of age.
    Sec. 15.  Section 453A.42, subsection 9, Code 2019, is amended to read as follows:
   9.  “Place of business” means any place where tobacco products are sold or where tobacco products are manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, or train, or vending machine; or for a business within or without the state that conducts delivery sales, any place where alternative nicotine products or vapor products are sold or where alternative nicotine products or vapor products are kept for the purpose of sale, including delivery sales.
    Sec. 16.  Section 453A.47B, Code 2019, is amended to read as follows:
   453A.47B  Requirements for mailing or shipping —— alternative nicotine products or vapor products.
   A retailer shall not mail, ship, or otherwise cause to be delivered any alternative nicotine product or vapor product in connection with a delivery sale unless the retailer meets all of the following apply conditions:
   1.  Prior to sale to the purchaser, the retailer verifies that the purchaser is at least eighteen twenty-one years of age through or by one of the following:
   a.  A commercially available database, or aggregate of databases, that is regularly used by government and businesses for the purpose of age and identity verification.
   b.  Obtaining a copy of a valid government-issued document that provides the name, address, and date of birth of the purchaser.
   2.  The retailer uses a method of mailing, shipping, or delivery that requires the signature of a person who is at least eighteen twenty-one years of age before the shipping package is released to the purchaser.
    Sec. 17.  SMOKING POLICY —— STATE FACILITIES AND VEHICLES —— CAPITOL COMPLEX BUILDINGS AND GROUNDS.  Pursuant to section 8A.322 and 11 IAC 100.3, and in accordance with chapter 142D, to improve the health of Iowans by reducing the level of exposure to environmental tobacco smoke and the use of tobacco products, the director of the department of administrative services shall establish, publish, and enforce policies and rules regarding smoking and the use of tobacco products within the confines of state-operated and owned facilities, state-owned and operated vehicles, and capitol complex buildings and grounds. For the purposes of the policies and rules:
   1.  “Smoking” means inhaling, exhaling, burning, or carrying any lighted cigar, cigarette, pipe, or other tobacco product in any manner or in any form and includes but is not limited to burning or vaporizing tobacco or other products using a vapor product as defined in section 453A.1.
   2.  “Tobacco product” means an alternative nicotine product, a cigarette, a tobacco product, and a vapor product as defined in section 453A.1.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill increases the minimum age relative to various activities relating to tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes from 18 years of age to 21 years of age. 
   The bill prohibits a person from selling, giving, or otherwise supplying any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes to any person under 21 years of age. The bill also prohibits a person under 21 years of age from smoking, using, possessing, purchasing, or attempting to purchase any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes. 
   The bill makes conforming changes in the Code relative to use of a driver’s license or nonoperator’s identification card by an underage person to obtain tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes; compliance efforts; the giving away of samples of tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes to persons under 21 years of age and within 500 feet of certain locations; and the mailing, shipping, or other delivery of alternative nicotine products or vapor products. 
   The bill also prohibits the sales of cigarettes, tobacco, tobacco products, alternative nicotine products, and vapor products through a vending machine or the selling or offering for sale of these products through a self-service display. The bill includes a definition of “vending machine” which expands the former definition of “cigarette vending machine” to include the additional types of products.
   A person holding a permit, including a retailer, who violates a provision of the bill is subject to civil penalties and permit suspension or revocation provisions based on the number of violations. A person other than a retailer who sells, gives, or otherwise supplies any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes to any person under 21 years of age is guilty of a simple misdemeanor. An employee of a retailer who sells, gives, or otherwise supplies any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes to any person under 21 years of age commits a simple misdemeanor punishable as a scheduled violation ranging from $100 to $500 based upon the number of violations. A person under 21 years of age who smokes, uses, possesses, purchases, or attempts to purchase any tobacco, tobacco products, alternative nicotine products, vapor products, or cigarettes is subject to performance of community service hours ranging from 8 hours for a first offense to 16 hours for a third or subsequent offense. 
   The bill also directs the director of the department of administrative services to establish, publish, and enforce policies and rules regarding smoking and the use of tobacco products within the confines of state-operated and owned facilities, state-owned and operated vehicles, and capitol complex buildings and grounds. The bill defines “smoking” and “tobacco product” for the purposes of the policies and rules to include vapor products and alternative nicotine products.