Text: H05654                            Text: H05656
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House Amendment 5655

Amendment Text

PAG LIN
  1  1    Amend the amendment, H-5523, to Senate File 2449,
  1  2 as amended, passed, and reprinted by the Senate, as
  1  3 follows:
  1  4    #1.  Page 2, by inserting after line 26 the
  1  5 following:  
  1  6                      "DIVISION    
  1  7                INCOME AND TOBACCO TAXES
  1  8    Sec. 55.  Section 142B.6, Code 1995, is amended to
  1  9 read as follows:
  1 10    142B.6  CIVIL PENALTY FOR VIOLATION – UNIFORM
  1 11 APPLICATION ENFORCEMENT.
  1 12    A person who smokes in those areas prohibited in
  1 13 section 142B.2, or who violates section 142B.4, shall
  1 14 pay a civil fine pursuant to section 805.8, subsection
  1 15 11, for each violation.
  1 16    Judicial magistrates shall hear and determine
  1 17 violations of this chapter.  The civil penalties paid
  1 18 pursuant to this chapter shall be deposited in the
  1 19 county treasury.
  1 20    Enforcement of this chapter shall be implemented in
  1 21 an equitable manner throughout the state.  For the
  1 22 purpose of equitable and uniform implementation,
  1 23 application, and enforcement of state and local laws
  1 24 and regulations, the provisions of this chapter shall
  1 25 supersede any local law or regulation which is
  1 26 inconsistent with or conflicts with the provisions of
  1 27 this chapter.  The Iowa department of public health
  1 28 shall adopt rules to enforce this chapter.
  1 29    Sec. 56.  NEW SECTION.  142C.1  LEGISLATIVE
  1 30 FINDINGS – CIGARETTE AND TOBACCO PRODUCTS.
  1 31    Following an analysis of data regarding cigarettes
  1 32 and tobacco products and the addictive nature of the
  1 33 nicotine contained in these products which was
  1 34 provided by the Iowa department of public health, the
  1 35 United States environmental protection agency, the
  1 36 United States public health service, the world health
  1 37 organization, the American cancer society, the
  1 38 American heart association, the American lung
  1 39 association, the American medical association, the
  1 40 American dental association, the American public
  1 41 health association, the national cancer institute, and
  1 42 the international agency for research on cancer, the
  1 43 general assembly finds and declares all of the
  1 44 following:
  1 45    1.  That cigarettes and tobacco products, with
  1 46 their inherent and supplemented quantities of
  1 47 nicotine, are highly addictive and that use of these
  1 48 products threatens the health and lives of Iowans.
  1 49    2.  That environmental tobacco smoke is a group A
  1 50 carcinogen known to cause lung cancer in nonsmokers as
  2  1 well as in smokers.
  2  2    3.  That tobacco and resultant environmental
  2  3 tobacco smoke are the highest causative agents in
  2  4 increased mortality and morbidity in the state.
  2  5    4.  That the federal Americans with Disabilities
  2  6 Act specifies that persons sensitive to tobacco smoke,
  2  7 including persons with asthma, are "handicapped
  2  8 persons" and that businesses are required to make
  2  9 reasonable accommodations to allow handicapped persons
  2 10 access to offices and workplaces.
  2 11    5.  That a principal manufacturer of tobacco
  2 12 products has admitted to these findings, has agreed to
  2 13 a financial settlement based upon the damage caused by
  2 14 the effects of these products, and has agreed to limit
  2 15 advertising in accordance with the limitations
  2 16 established by the United States environmental
  2 17 protection agency.
  2 18    6.  That based upon all of the above, the general
  2 19 assembly declares the use of cigarettes and tobacco
  2 20 products to be an immediate health emergency of
  2 21 epidemic proportions and a menace as an entry-level
  2 22 drug in the youth population of the state and will
  2 23 enact legislation to address this public health
  2 24 problem.
  2 25    Sec. 57.  NEW SECTION.  249A.30  RECOVERY OF
  2 26 MEDICAL ASSISTANCE EXPENDITURE – CIGARETTE AND
  2 27 TOBACCO PRODUCTS – RELATED MEDICAL EXPENSES BY
  2 28 RESIDENT RECIPIENTS.
  2 29    1.  Notwithstanding chapter 668, the attorney
  2 30 general shall institute a civil action on behalf of
  2 31 the state against any manufacturer of cigarettes or
  2 32 other tobacco products to recover the full amount of
  2 33 medical assistance provided by the state to a resident
  2 34 of the state for the payment of medical services which
  2 35 are reasonably attributable to the use of cigarettes
  2 36 or tobacco products and all reasonable expenses
  2 37 associated with instituting the action.
  2 38    2.  In determining liability in an action under
  2 39 this section, all of the following shall apply:
  2 40    a.  Any manufacturer of cigarettes or other tobacco
  2 41 products shall be strictly liable for the medical
  2 42 expenses reasonably attributable to the use of the
  2 43 manufacturer's product, without regard to any
  2 44 negligence, intent, warnings, or other conduct or
  2 45 knowledge on the part of the manufacturer.
  2 46    b.  The state may recover medical expenses, without
  2 47 regard to the defenses of assumption of the risk,
  2 48 contributory or comparative negligence, or other
  2 49 defenses which might be asserted.
  2 50    c.  Any action instituted by the attorney general
  3  1 is independent of any rights or causes of action of
  3  2 any individual.
  3  3    3.  In determining the extent of the liability of
  3  4 any manufacturer under this section, the court shall
  3  5 apply the following evidentiary presumptions:
  3  6    a.  The ratio of the expenses attributable to the
  3  7 use of cigarettes or tobacco products produced by any
  3  8 manufacturer to the expenses of all manufacturers is
  3  9 presumed to be equivalent to the ratio of the sales by
  3 10 the manufacturer within the state during the most
  3 11 recent year for which data are available to the sales
  3 12 of all manufacturers for that year.
  3 13    b.  The medical expenses for individuals
  3 14 attributable to the use of cigarettes or tobacco
  3 15 products shall be based on reliable estimates for the
  3 16 class of persons affected, rather than proof of the
  3 17 cause of expenses in the case of any particular
  3 18 individual.
  3 19    c.  Estimates of medical expenses shall be based on
  3 20 epidemiological, scientific, survey, and other data,
  3 21 determined by the director of public health to be
  3 22 reliable and reasonably available.  The Iowa
  3 23 department of public health shall adopt rules to
  3 24 specify the methodology for making the estimates in
  3 25 any action under this section.
  3 26    d.  A defendant shall have the opportunity to rebut
  3 27 any presumption by clear and convincing evidence,
  3 28 provided that the court shall take reasonable steps to
  3 29 ensure that determination of damages is concluded in a
  3 30 timely and expeditious manner and that no party to the
  3 31 action is permitted to unduly delay the conclusion of
  3 32 the action.
  3 33    4.  For the purposes of this section, "cigarette"
  3 34 and "tobacco products" mean cigarette and tobacco
  3 35 products as defined in section 453A.1.
  3 36    Sec. 58.  Section 422.9, subsection 1, Code
  3 37 Supplement 1995, is amended to read as follows:
  3 38    1.  An optional standard deduction, after deduction
  3 39 of federal income tax, equal to one two thousand two
  3 40 four hundred thirty sixty dollars for a married person
  3 41 who files separately or a single person or equal to
  3 42 three six thousand thirty sixty dollars for a husband
  3 43 and wife who file a joint return, a surviving spouse,
  3 44 or an unmarried head of household.  The optional
  3 45 standard deduction shall not exceed the amount
  3 46 remaining after deduction of the federal income tax.
  3 47    Sec. 59.  Section 422B.1, subsections 3, 4, 5, 6,
  3 48 8, and 9, Code Supplement 1995, are amended to read as
  3 49 follows:
  3 50    3.  A local option tax shall be imposed only after
  4  1 an election at which a majority of those voting on the
  4  2 question favors imposition and shall then be imposed
  4  3 until repealed as provided in subsection 6, paragraph
  4  4 "a".  If the tax is a local vehicle tax imposed by a
  4  5 county, it shall apply to all incorporated and
  4  6 unincorporated areas of the county.  If the tax is a
  4  7 local sales and services tax or a local cigarette and
  4  8 tobacco tax imposed by a county, it shall only apply
  4  9 to those incorporated areas and the unincorporated
  4 10 area of that county in which a majority of those
  4 11 voting in the area on the tax favors its imposition.
  4 12 For purposes of the local sales and services tax or a
  4 13 local cigarette and tobacco tax, all cities contiguous
  4 14 to each other shall be treated as part of one
  4 15 incorporated area and the tax would be imposed in each
  4 16 of those contiguous cities only if the majority of
  4 17 those voting in the total area covered by the
  4 18 contiguous cities favors its imposition.  For purposes
  4 19 of the local sales and services tax or a local
  4 20 cigarette and tobacco tax, a city is not contiguous to
  4 21 another city if the only road access between the two
  4 22 cities is through another state.
  4 23    4.  a.  A county board of supervisors shall direct
  4 24 within thirty days the county commissioner of
  4 25 elections to submit the question of imposition of a
  4 26 local vehicle tax, or a local sales and services tax,
  4 27 or a local cigarette and tobacco tax to the registered
  4 28 voters of the incorporated and unincorporated areas of
  4 29 the county upon receipt of a petition, requesting
  4 30 imposition of a local vehicle tax, or a local sales
  4 31 and services tax, or a local cigarette and tobacco
  4 32 tax, signed by eligible electors of the whole county
  4 33 equal in number to five percent of the persons in the
  4 34 whole county who voted at the last preceding state
  4 35 general election.  In the case of a local vehicle tax,
  4 36 the petition requesting imposition shall specify the
  4 37 rate of tax and the classes, if any, that are to be
  4 38 exempt.  If more than one valid petition is received,
  4 39 the earliest received petition shall be used.
  4 40    b.  The question of the imposition of a local sales
  4 41 and services tax or a local cigarette and tobacco tax
  4 42 shall be submitted to the registered voters of the
  4 43 incorporated and unincorporated areas of the county
  4 44 upon receipt by the county commissioner of elections
  4 45 of the motion or motions, requesting such submission,
  4 46 adopted by the governing body or bodies of the city or
  4 47 cities located within the county or of the county, for
  4 48 the unincorporated areas of the county, representing
  4 49 at least one half of the population of the county.
  4 50 Upon adoption of such motion, the governing body of
  5  1 the city or county, for the unincorporated areas,
  5  2 shall submit the motion to the county commissioner of
  5  3 elections and in the case of the governing body of the
  5  4 city shall notify the board of supervisors of the
  5  5 adoption of the motion.  The county commissioner of
  5  6 elections shall keep a file on all the motions
  5  7 received and, upon reaching the population
  5  8 requirements, shall publish notice of the ballot
  5  9 proposition concerning the imposition of the local
  5 10 sales and services tax or a local cigarette and
  5 11 tobacco tax.  A motion ceases to be valid at the time
  5 12 of the holding of the regular election for the
  5 13 election of members of the governing body which
  5 14 adopted the motion.  The county commissioner of
  5 15 elections shall eliminate from the file any motion
  5 16 that ceases to be valid.  The manner provided under
  5 17 this paragraph for the submission of the question of
  5 18 imposition of a local sales and services tax or a
  5 19 local cigarette and tobacco tax is an alternative to
  5 20 the manner provided in paragraph "a".
  5 21    5.  The county commissioner of elections shall
  5 22 submit the question of imposition of a local option
  5 23 tax at a state general election or at a special
  5 24 election held at any time other than the time of a
  5 25 city regular election.  The election shall not be held
  5 26 sooner than sixty days after publication of notice of
  5 27 the ballot proposition.  The ballot proposition shall
  5 28 specify the type and rate of tax and in the case of a
  5 29 vehicle tax the classes that will be exempt and in the
  5 30 case of a local sales and services tax or a local
  5 31 cigarette and tobacco tax the date it will be imposed.
  5 32 The ballot proposition shall also specify the
  5 33 approximate amount of local option tax revenues that
  5 34 will be used for property tax relief and shall contain
  5 35 a statement as to the specific purpose or purposes for
  5 36 which the revenues shall otherwise be expended.  If
  5 37 the county board of supervisors decides under
  5 38 subsection 6 to specify a date on which the local
  5 39 option sales and services tax or a local cigarette and
  5 40 tobacco tax shall automatically be repealed, the date
  5 41 of the repeal shall also be specified on the ballot.
  5 42 The rate of the vehicle tax shall be in increments of
  5 43 one dollar per vehicle as set by the petition seeking
  5 44 to impose the tax.  The rate of a local sales and
  5 45 services tax shall not be more than one percent as set
  5 46 by the governing body.  The rate of the cigarette and
  5 47 tobacco tax shall not be more than ten percent as set
  5 48 by the governing body.  The state commissioner of
  5 49 elections shall establish by rule the form for the
  5 50 ballot proposition which form shall be uniform
  6  1 throughout the state.
  6  2    6.  a.  If a majority of those voting on the
  6  3 question of imposition of a local option tax favor
  6  4 imposition of a local option tax, the governing body
  6  5 of that county shall impose the tax at the rate
  6  6 specified for an unlimited period.  However, in the
  6  7 case of a local sales and services tax or a local
  6  8 cigarette and tobacco tax, the county shall not impose
  6  9 the tax in any incorporated area or the unincorporated
  6 10 area if the majority of those voting on the tax in
  6 11 that area did not favor its imposition.  For purposes
  6 12 of the local sales and services tax or a local
  6 13 cigarette and tobacco tax, all cities contiguous to
  6 14 each other shall be treated as part of one
  6 15 incorporated area and the tax shall be imposed in each
  6 16 of those contiguous cities only if the majority of
  6 17 those voting on the tax in the total area covered by
  6 18 the contiguous cities favored its imposition.  The
  6 19 local option tax may be repealed or the rate increased
  6 20 or decreased or the use thereof changed after an
  6 21 election at which a majority of those voting on the
  6 22 question of repeal or rate or use change favored the
  6 23 repeal or rate or use change.  The election at which
  6 24 the question of repeal or rate or use change is
  6 25 offered shall be called and held in the same manner
  6 26 and under the same conditions as provided in
  6 27 subsections 4 and 5 for the election on the imposition
  6 28 of the local option tax.  However, in the case of a
  6 29 local sales and services tax or a local cigarette and
  6 30 tobacco tax where the tax has not been imposed
  6 31 countywide, the question of repeal or imposition or
  6 32 rate or use change shall be voted on only by the
  6 33 registered voters of the areas of the county where the
  6 34 tax has been imposed or has not been imposed, as
  6 35 appropriate.  However, the governing body of the
  6 36 incorporated area or unincorporated area where the
  6 37 local sales and services tax or a local cigarette and
  6 38 tobacco tax is imposed may, upon its own motion,
  6 39 request the county commissioner of elections to hold
  6 40 an election in the incorporated or unincorporated
  6 41 area, as appropriate, on the question of the change in
  6 42 use of local sales and services tax revenues.  The
  6 43 election may be held at any time but not sooner than
  6 44 sixty days following publication of the ballot
  6 45 proposition.  If a majority of those voting in the
  6 46 incorporated or unincorporated area on the change in
  6 47 use favor the change, the governing body of that area
  6 48 shall change the use to which the revenues shall be
  6 49 used.  The ballot proposition shall list the present
  6 50 use of the revenues, the proposed use, and the date
  7  1 after which revenues received will be used for the new
  7  2 use.
  7  3    When submitting the question of the imposition of a
  7  4 local sales and services tax or a local cigarette and
  7  5 tobacco tax, the county board of supervisors may
  7  6 direct that the question contain a provision for the
  7  7 repeal, without election, of the local sales and
  7  8 services tax or a local cigarette and tobacco tax on a
  7  9 specific date, which date shall be the end of a
  7 10 calendar quarter.
  7 11    b.  Within ten days of the election at which a
  7 12 majority of those voting on the question favors the
  7 13 imposition, repeal, or change in the rate of a local
  7 14 option tax, the governing body shall give written
  7 15 notice to the director of revenue and finance or, in
  7 16 the case of a local vehicle tax, to the director of
  7 17 the department of transportation, of the result of the
  7 18 election.
  7 19    8.  Local option taxes authorized to be imposed as
  7 20 provided in this chapter are a local sales and
  7 21 services tax, a local cigarette and tobacco tax, and a
  7 22 local vehicle tax.  The rate of the tax shall be in
  7 23 increments of one dollar per vehicle for a vehicle tax
  7 24 as set on the petition seeking to impose the vehicle
  7 25 tax.  The rate of a local sales and services tax shall
  7 26 not be more than one percent as set by the governing
  7 27 body.  The rate of the local cigarette and tobacco tax
  7 28 shall not be more than ten percent as set by the
  7 29 governing body.
  7 30    9.  In a county that has imposed a local option
  7 31 sales and services tax or a local option cigarette and
  7 32 tobacco tax, the board of supervisors shall,
  7 33 notwithstanding any contrary provision of this
  7 34 chapter, repeal the local option sales and services
  7 35 tax in the unincorporated areas or in an incorporated
  7 36 city area in which the tax has been imposed upon
  7 37 adoption of its own motion for repeal in the
  7 38 unincorporated areas or upon receipt of a motion
  7 39 adopted by the governing body of that incorporated
  7 40 city area requesting repeal.  The board of supervisors
  7 41 shall repeal the local option sales and services tax
  7 42 effective at the end of the calendar quarter during
  7 43 which it adopted the repeal motion or the motion for
  7 44 the repeal was received.  For purposes of this
  7 45 subsection, incorporated city area includes an
  7 46 incorporated city which is contiguous to another
  7 47 incorporated city.
  7 48    Sec. 60.  NEW SECTION.  422B.5  LOCAL CIGARETTE AND
  7 49 TOBACCO TAX.
  7 50    A local cigarette and tobacco tax at the rate of
  8  1 not more than ten percent may be imposed by a county
  8  2 on the gross receipts from sales of cigarettes and
  8  3 tobacco products sold at retail by a retailer as
  8  4 defined under chapter 422, division IV.  A local
  8  5 cigarette and tobacco tax shall be imposed only if the
  8  6 retailer is required under section 422.53 to have a
  8  7 state tax permit to collect the state sales and
  8  8 services tax.  A local cigarette and tobacco tax is
  8  9 applicable to transactions within those incorporated
  8 10 and unincorporated areas of the county where it is
  8 11 imposed and shall be collected by all persons required
  8 12 to collect state gross receipts taxes.  All cities
  8 13 contiguous to each other shall be treated as part of
  8 14 one incorporated area and the tax would be imposed in
  8 15 each of those contiguous cities only if the majority
  8 16 of those voting in the total area covered by the
  8 17 contiguous cities favor its imposition.
  8 18    The amount of the sale, for purposes of determining
  8 19 the amount of the local cigarette and tobacco tax,
  8 20 does not include the amount of any state gross
  8 21 receipts taxes but does include the amount of any tax
  8 22 imposed under chapter 453A.
  8 23    A tax permit other than the state tax permit
  8 24 required under section 422.53 shall not be required by
  8 25 local authorities.
  8 26    Sec. 61.  NEW SECTION.  422B.6  ADMINISTRATION.
  8 27    A local cigarette and tobacco tax shall be imposed
  8 28 either January 1, April 1, July 1 or October 1
  8 29 following the notification of the director of revenue
  8 30 and finance.
  8 31    A local cigarette and tobacco tax shall be repealed
  8 32 only on March 31, June 30, September 30, or December
  8 33 31.  However, a local cigarette and tobacco tax shall
  8 34 not be repealed before the tax has been in effect for
  8 35 one year.  At least forty days before the imposition
  8 36 or repeal of the tax, a county shall provide notice of
  8 37 the action by certified mail to the director of
  8 38 revenue and finance.
  8 39    The director of revenue and finance shall
  8 40 administer a local cigarette and tobacco tax as nearly
  8 41 as possible in conjunction with the administration of
  8 42 state gross receipts tax laws.  The director shall
  8 43 provide appropriate forms or provide on the regular
  8 44 state tax forms for reporting local cigarette and
  8 45 tobacco tax liability.
  8 46    The ordinance of a county board of supervisors
  8 47 imposing a local cigarette and tobacco tax shall adopt
  8 48 by reference the applicable provisions of the
  8 49 appropriate sections of chapter 422, division IV.  All
  8 50 powers and requirements of the director to administer
  9  1 the state gross receipts tax law are applicable to the
  9  2 administration of a local cigarette and tobacco tax
  9  3 law, including but not limited to, the provisions of
  9  4 sections 422.25, subsection 4, 422.30, 422.48 to
  9  5 422.52, 422.54 to 422.58, 422.67, 422.68, 422.69,
  9  6 subsection 1, and 422.70 to 422.75.  Local officials
  9  7 shall confer with the director of revenue and finance
  9  8 for assistance in drafting the ordinance imposing a
  9  9 local cigarette and tobacco tax.  A certified copy of
  9 10 the ordinance shall be filed with the director as soon
  9 11 as possible after passage.
  9 12    The director, in consultation with local officials,
  9 13 shall collect and account for a local cigarette and
  9 14 tobacco tax.  The director shall certify each quarter
  9 15 the amount of local cigarette and tobacco tax receipts
  9 16 and any interest and penalties to be credited to the
  9 17 "local cigarette and tobacco tax fund" established in
  9 18 the office of the treasurer of state.
  9 19    All local tax moneys and interest and penalties
  9 20 received or refunded one hundred eighty days or more
  9 21 after the date on which the county repeals its local
  9 22 cigarette and tobacco tax shall be deposited in or
  9 23 withdrawn from the state general fund.
  9 24    Sec. 62.  NEW SECTION.  422B.7  PAYMENT TO LOCAL
  9 25 GOVERNMENTS.
  9 26    1.  The director shall credit the local cigarette
  9 27 and tobacco tax receipts and interest and penalties
  9 28 from the tax imposed in the unincorporated area of a
  9 29 county to the county's account in the local cigarette
  9 30 and tobacco tax fund and from the tax imposed in the
  9 31 unincorporated area of a city to the city's account in
  9 32 the local cigarette and tobacco tax fund.  If the
  9 33 director is unable to determine from which county any
  9 34 of the receipts were collected, those receipts shall
  9 35 be allocated among the possible counties based on
  9 36 allocation rules adopted by the director.
  9 37    2.  a.  The director of revenue and finance within
  9 38 fifteen days of the beginning of each fiscal year
  9 39 shall send to each city or county where the local
  9 40 option tax is imposed, an estimate of the amount of
  9 41 tax moneys each city or county will receive for the
  9 42 year and for each quarter of the year.  At the end of
  9 43 each quarter, the director may revise the estimates
  9 44 for the year and remaining quarters.
  9 45    b.  The director of revenue and finance shall remit
  9 46 ninety percent of the estimate tax receipts for the
  9 47 city or county to the city or county after the end of
  9 48 each quarter no later than the following dates:
  9 49 November 10, February 10, May 10, and August 10.
  9 50    c.  The director of revenue and finance shall remit
 10  1 a final payment of the remainder of tax moneys due the
 10  2 city or county for the fiscal year before the due date
 10  3 for the payment of the first quarter of the next
 10  4 fiscal year.  If an overpayment has resulted during
 10  5 the previous fiscal year, the first payment of the new
 10  6 fiscal year shall be adjusted to reflect any
 10  7 overpayment.
 10  8    3.  Local cigarette and tobacco tax moneys received
 10  9 by a city or county shall be expended by the city or
 10 10 county for the purpose of educating minors on the
 10 11 addictiveness and harmful effects of cigarettes and
 10 12 tobacco products and enforcing federal, state, and
 10 13 local cigarette and tobacco laws.
 10 14    Sec. 63.  Section 422B.8, unnumbered paragraph 1,
 10 15 Code Supplement 1995, is amended to read as follows:
 10 16    A local sales and services tax at the rate of not
 10 17 more than one percent may be imposed by a county on
 10 18 the gross receipts taxed by the state under chapter
 10 19 422, division IV.  A local sales and services tax
 10 20 shall be imposed on the same basis as the state sales
 10 21 and services tax and may not be imposed on the sale of
 10 22 any property or on any service not taxed by the state,
 10 23 except the tax shall not be imposed on the gross
 10 24 receipts from the sale of motor fuel or special fuel
 10 25 as defined in chapter 452A, on the gross receipts from
 10 26 the sale of cigarettes and tobacco products as defined
 10 27 in chapter 453A during the period of local cigarette
 10 28 and tobacco tax is imposed, on the gross receipts from
 10 29 the rental of rooms, apartments, or sleeping quarters
 10 30 which are taxed under chapter 422A during the period
 10 31 the hotel and motel tax is imposed, on the gross
 10 32 receipts from the sale of natural gas or electric
 10 33 energy in a city or county where the gross receipts
 10 34 are subject to a franchise fee or user fee during the
 10 35 period the franchise or user fee is imposed, on the
 10 36 gross receipts from the sale of equipment by the state
 10 37 department of transportation, and on the gross
 10 38 receipts from the sale of a lottery ticket or share in
 10 39 a lottery game conducted pursuant to chapter 99E.  A
 10 40 local sales and services tax is applicable to
 10 41 transactions within those incorporated and
 10 42 unincorporated areas of the county where it is imposed
 10 43 and shall be collected by all persons required to
 10 44 collect state gross receipts taxes.  All cities
 10 45 contiguous to each other shall be treated as part of
 10 46 one incorporated area and the tax would be imposed in
 10 47 each of those contiguous cities only if the majority
 10 48 of those voting in the total area covered by the
 10 49 contiguous cities favor its imposition.
 10 50    Sec. 64.  Section 453A.1, subsections 3 and 4, Code
 11  1 1995, are amended by striking the subsections.
 11  2    Sec. 65.  Section 453A.2, Code 1995, is amended by
 11  3 adding the following new subsection:
 11  4    NEW SUBSECTION.  5.  A violation of subsection 1 is
 11  5 a violation of section 714.16, subsection 2, paragraph
 11  6 "a".
 11  7    Sec. 66.  Section 453A.3, unnumbered paragraph 1,
 11  8 Code 1995, is amended to read as follows:
 11  9    A person who violates section 453A.2, subsection 1,
 11 10 or section 453A.39 is guilty of a simple misdemeanor.
 11 11    Sec. 67.  Section 453A.6, subsection 1, Code 1995,
 11 12 is amended to read as follows:
 11 13    1.  There is imposed, and shall be collected and
 11 14 paid to the department, the following taxes on all
 11 15 cigarettes used or otherwise disposed of in this state
 11 16 for any purpose whatsoever:
 11 17    Class A.  On cigarettes weighing not more than
 11 18 three pounds per thousand, eighteen mills a tax at the
 11 19 rate of three and six-tenths cents on each such
 11 20 cigarette.
 11 21    Class B.  On cigarettes weighing more than three
 11 22 pounds per thousand, eighteen mills on each such
 11 23 cigarette.
 11 24    Sec. 68.  Section 453A.13, subsections 1 and 2,
 11 25 Code 1995, are amended to read as follows:
 11 26    1.  PERMITS REQUIRED.  Every distributor,
 11 27 wholesaler, cigarette vendor, and retailer, now
 11 28 engaged or who desires to become engaged in the sale
 11 29 or use of cigarettes, upon which a tax is required to
 11 30 be paid, shall obtain a state or retail cigarette
 11 31 permit as a distributor, wholesaler, cigarette vendor,
 11 32 or retailer, as the case may be.
 11 33    2.  ISSUANCE OR DENIAL.
 11 34    a.  The department shall issue state permits to
 11 35 distributors, and wholesalers, and cigarette vendors
 11 36 subject to the conditions provided in this division.
 11 37 Cities may issue retail permits to dealers within
 11 38 their respective limits.  County boards of supervisors
 11 39 may issue retail permits to dealers in their
 11 40 respective counties, outside of the corporate limits
 11 41 of cities.
 11 42    b.  The department may deny the issuance of a
 11 43 permit to a distributor, wholesaler, vendor or
 11 44 retailer who is substantially delinquent in the
 11 45 payment of a tax due, or the interest or penalty on
 11 46 the tax, administered by the department at the time of
 11 47 application.  If the applicant is a partnership, a
 11 48 permit may be denied if a partner is substantially
 11 49 delinquent on any delinquent tax, penalty or interest.
 11 50 If the applicant is a corporation, a permit may be
 12  1 denied if any officer having a substantial legal or
 12  2 equitable interest in the ownership of the corporation
 12  3 owes any delinquent tax, interest or penalty of the
 12  4 applicant corporation.
 12  5    Sec. 69.  Section 453A.13, subsection 3, unnumbered
 12  6 paragraph 1, Code 1995, is amended to read as follows:
 12  7    All permits provided for in this division shall
 12  8 expire on June 30 of each year.  A permit shall not be
 12  9 granted or issued until the applicant has paid for the
 12 10 period ending June 30 next, to the department or the
 12 11 city or county granting the permit, the fees provided
 12 12 for in this division.  The annual state permit fee for
 12 13 a distributor, cigarette vendor, and wholesaler is one
 12 14 hundred dollars when the permit is granted during the
 12 15 months of July, August, or September.  However,
 12 16 whenever a state permit holder operates more than one
 12 17 place of business, a duplicate state permit shall be
 12 18 issued for each additional place of business on
 12 19 payment of five dollars for each duplicate state
 12 20 permit, but refunds as provided in this division do
 12 21 not apply to any duplicate permit issued.
 12 22    Sec. 70.  Section 453A.13, subsection 6, Code 1995,
 12 23 is amended to read as follows:
 12 24    6.  NO SALES WITHOUT PERMIT.  No distributor,
 12 25 wholesaler, cigarette vendor, or retailer shall sell
 12 26 any cigarettes until such application has been filed
 12 27 and the fee prescribed paid for a permit and until
 12 28 such permit is obtained and only while such permit is
 12 29 unrevoked and unexpired.
 12 30    Sec. 71.  Section 453A.22, subsection 2, unnumbered
 12 31 paragraph 1, Code 1995, is amended to read as follows:
 12 32    If a retailer or employee of a retailer has
 12 33 violated section 453A.2, or 453A.36, subsection 6, or
 12 34 453A.39, the department or local authority, in
 12 35 addition to the other penalties fixed for such
 12 36 violations in this section, shall assess a penalty
 12 37 upon the same hearing and notice as prescribed in
 12 38 subsection 1 as follows:
 12 39    Sec. 72.  Section 453A.22, subsection 2, unnumbered
 12 40 paragraph 1, Code 1995, is amended to read as follows:
 12 41    If a retailer or employee of a retailer has
 12 42 violated section 453A.2, or 453A.36, subsection 6, or
 12 43 453A.39 8, or 9, the department or local authority, in
 12 44 addition to the other penalties fixed for such
 12 45 violations in this section, shall assess a penalty
 12 46 upon the same hearing and notice as prescribed in
 12 47 subsection 1 as follows:
 12 48    Sec. 73.  Section 453A.36, subsection 6, Code 1995,
 12 49 is amended by striking the subsection and inserting in
 12 50 lieu thereof the following:
 13  1    6.  a.  A person shall not sell cigarettes or
 13  2 tobacco products through a vending machine or through
 13  3 self-service displays in this state.
 13  4    b.  A manufacturer, distributor, wholesaler,
 13  5 retailer, distributing agent or agent thereof shall
 13  6 not give away cigarettes or tobacco products at any
 13  7 time in connection with the manufacturer's,
 13  8 distributor's, wholesaler's, retailers', distributing
 13  9 agent's or agent's thereof promotion of the business
 13 10 or product.
 13 11    c.  It is unlawful for any manufacturer,
 13 12 distributor, wholesaler, retailer, distributing agent
 13 13 or agent thereof to advertise on any advertising
 13 14 device cigarettes or other tobacco products within one
 13 15 thousand feet of any playground, elementary school,
 13 16 middle school, high school, or other facility when
 13 17 such facility is being used primarily by persons under
 13 18 age eighteen for recreational, educational, or other
 13 19 purposes.
 13 20    d.  A manufacturer, distributor, wholesaler,
 13 21 retailer, distributing agent or agent thereof shall
 13 22 not advertise cigarettes or tobacco products on
 13 23 advertising devices in this state, no matter where
 13 24 located, including but not limited to advertising
 13 25 devices located on public transportation or at the
 13 26 point-of-sale, shall be in black and white text only.
 13 27    e.  A manufacturer, distributor, wholesaler,
 13 28 retailer, distributing agent or agent thereof shall
 13 29 not sell or distribute in this state promotional items
 13 30 and prizes, including but not limited to caps, T-
 13 31 shirts, and bags, which bear the logo or name of a
 13 32 cigarette or tobacco product, and shall not utilize
 13 33 proof-of-purchase exchanges for cigarettes or other
 13 34 tobacco products in this state.
 13 35    f.  Any cigarettes or tobacco products or related
 13 36 items sold or distributed in this state are subject to
 13 37 all of the following, as applicable:
 13 38    (1)  All sales of cigarettes and tobacco products
 13 39 shall be made in face-to-face sales, and age
 13 40 verification shall be required for each sale.
 13 41    (2)  All cigarettes and tobacco products shall be
 13 42 located behind a counter or in another location which
 13 43 is under the exclusive control of the seller and which
 13 44 is not directly accessible to the general public.
 13 45    g.  In addition to any other penalty which applies
 13 46 to a violation of this subsection, any person, as
 13 47 specified in this subsection, who violates this
 13 48 subsection, is guilty of a serious misdemeanor.
 13 49    Sec. 74.  Section 453A.42, subsection 8, Code 1995,
 13 50 is amended to read as follows:
 14  1    8.  "Place of business" means any place where
 14  2 tobacco products are sold or where tobacco products
 14  3 are manufactured, stored, or kept for the purpose of
 14  4 sale or consumption, including any vessel, vehicle,
 14  5 airplane, or train, or vending machine.
 14  6    Sec. 75.  Section 453A.43, subsection 1, unnumbered
 14  7 paragraph 1, Code 1995, is amended to read as follows:
 14  8    A tax is imposed upon all tobacco products in this
 14  9 state and upon any person engaged in business as a
 14 10 distributor of tobacco products, at the rate of
 14 11 twenty-two forty-four percent of the wholesale sales
 14 12 price of the tobacco products, except little cigars as
 14 13 defined in section 453A.42.  Little cigars shall be
 14 14 subject to the same rate of tax imposed upon
 14 15 cigarettes in section 453A.6, payable at the time and
 14 16 in the manner provided in section 453A.6; and stamps
 14 17 shall be affixed as provided in division I of this
 14 18 chapter.  The tax on tobacco products, excluding
 14 19 little cigars, shall be imposed at the time the
 14 20 distributor does any of the following:
 14 21    Sec. 76.  Section 453A.43, subsection 2, unnumbered
 14 22 paragraph 1, Code 1995, is amended to read as follows:
 14 23    A tax is imposed upon the use or storage by
 14 24 consumers of tobacco products in this state, and upon
 14 25 the consumers, at the rate of twenty-two forty-four
 14 26 percent of the cost of the tobacco products.
 14 27    Sec. 77.  Section 453A.56, Code 1995, is amended to
 14 28 read as follows:
 14 29    453A.56  UNIFORM APPLICATION.
 14 30    Enforcement of this chapter shall be implemented in
 14 31 an equitable manner throughout the state.  For the
 14 32 purpose of equitable and uniform implementation,
 14 33 application, and enforcement of state and local laws
 14 34 and regulations, the provisions of this chapter shall
 14 35 supersede any local law or regulation which is
 14 36 inconsistent with or conflicts with the provisions of
 14 37 this chapter, unless the local law or regulation is
 14 38 more restrictive in application in which case the more
 14 39 restrictive portion of the local law or regulation
 14 40 shall supersede any inconsistent or conflicting
 14 41 provision of this chapter.  This section and any other
 14 42 provision in this chapter shall not prohibit the
 14 43 imposition of a local option cigarette and tobacco tax
 14 44 under chapter 422B.
 14 45    Sec. 78.  NEW SECTION.  453A.57  IOWA DO NOT START-
 14 46 STOP SMOKING FUND ESTABLISHED.
 14 47    1.  An Iowa do not start-stop smoking fund is
 14 48 created within the state treasury under the control of
 14 49 the Iowa department of public health.  Moneys received
 14 50 by the department from fees collected and designated
 15  1 for this purpose shall be deposited in the state
 15  2 treasury to the credit of the fund and are
 15  3 appropriated for the purposes specified in this
 15  4 section.  Notwithstanding section 8.33, any unexpended
 15  5 balance in the fund at the end of each fiscal year
 15  6 shall be retained in the fund.  Any interest and
 15  7 earnings on investments from money in the fund shall
 15  8 be credited to the fund, section 12C.7
 15  9 notwithstanding.
 15 10    2.  Every manufacturer, distributor, distributing
 15 11 agent, wholesaler, retailer, or subjobber who engages
 15 12 in the sale, distribution, or use of cigarettes or
 15 13 tobacco products in this state, upon which a tax is
 15 14 required to be paid, and who is required to obtain a
 15 15 permit or license, shall pay, in addition to any fee
 15 16 for a permit, a fee of one hundred dollars at the time
 15 17 of application for a permit or license.  If a state
 15 18 permit holder operates more than one place of
 15 19 business, the fee shall only be paid at the time of
 15 20 the initial application for a permit or license.  The
 15 21 moneys collected shall be deposited in the Iowa do not
 15 22 start-stop smoking fund created in this section.
 15 23    3.  The Iowa department of public health shall
 15 24 develop and implement a do not start-stop smoking
 15 25 education campaign to educate minors and others about
 15 26 the hazards of using cigarettes and tobacco products.
 15 27    Sec. 79.  Section 453A.39, Code 1995, is repealed.
 15 28    Sec. 80.  Section 57 of this Act, relating to the
 15 29 recovery of medical assistance expenditures due to
 15 30 smoking, being deemed of immediate importance, takes
 15 31 effect upon enactment.
 15 32    Sec. 81.  This division of this Act with the
 15 33 exception of section 57 takes effect July 1, 1996, and
 15 34 section 58 of this division applies to tax years
 15 35 ending on or after that date.
 15 36    Sec. 82.  RETROACTIVE APPLICABILITY.  The state may
 15 37 recover, pursuant to section 249A.30, in addition to
 15 38 any subsequent damages, any applicable damages
 15 39 incurred within the two years preceding the date of
 15 40 enactment of section 249A.30 of this Act."
 15 41    #2.  Page 6, line 6, by inserting after the word
 15 42 "tax," the following:  "increasing the standard
 15 43 deduction for individual income tax purposes,
 15 44 increasing the tax rate on cigarettes and tobacco
 15 45 products, and making other changes relating to
 15 46 cigarette and tobacco products,".
 15 47    #3.  Page 6, line 9, by inserting after the word
 15 48 "relief" the following:  ", providing penalties,".  
 15 49 
 15 50 
 16  1                              
 16  2 BRAMMER of Linn
 16  3 SF 2449.307 76
 16  4 mg/cf

Text: H05654                            Text: H05656
Text: H05600 - H05699                   Text: H Index
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