Senate File 345 H-8087 Amend Senate File 345, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. By striking page 4, line 32, through page 5, line 9, and 3 inserting: 4 < 4. Issuance. 5 a. Cities may approve device retailer permit applications 6 for applicants located within their respective limits. County 7 boards of supervisors may approve device retailer permit 8 applications for applicants located in their respective 9 counties, outside of the corporate limits of cities. 10 b. Upon approval of a device retailer permit application 11 by a city or county, the department shall issue the permit to 12 the applicant on behalf of the city or county, as applicable, 13 in a manner determined by the department. A city or county 14 shall use the department’s electronic portal to process 15 device retailer permit applications. A city or county that is 16 unable to use the department’s electronic portal may request 17 permission from the director to process device retailer permit 18 applications by another method. 19 c. The department shall submit the current list of all 20 device retailer permits issued to the department of health 21 and human services by the last day of each quarter of a state 22 fiscal year. > 23 2. Page 5, by striking lines 14 and 15 and inserting < the 24 period ending June 30 next, to the department. The fee for a 25 device retailer > 26 3. Page 5, by striking lines 17 through 23 and inserting: 27 < 6. Application. Device retailer permits shall be issued 28 only upon application, accompanied by the one thousand 29 five hundred dollar fee, made upon forms furnished by the 30 department. The application, any supporting documentation, and 31 the associated fees required by this section shall be submitted 32 to the department electronically. The forms shall specify all 33 of the following: > 34 4. By striking page 6, line 27, through page 7, line 10, and 35 -1- SF 345.3250 (2) 90 pf/jh 1/ 6 #1. #2. #3.

inserting: 1 < 1. A person shall not mail, ship, or otherwise cause to be 2 delivered any device in connection with a delivery sale to any 3 other person within this state unless the person has applied 4 for and holds a device delivery sale permit as provided in this 5 section. 6 2. All device delivery sale permits provided for in 7 this section shall expire on June 30 of each year. A device 8 delivery sale permit shall not be granted or issued until the 9 applicant has paid the fees provided for in this section for 10 the period ending June 30 next, to the department. The fee 11 for a device delivery sale permit is one thousand five hundred 12 dollars. 13 3. Device delivery sale permits shall be issued only upon 14 application, accompanied by the one thousand five hundred 15 dollar fee, made upon forms furnished by the department. The 16 application, any supporting documentation, and the associated 17 fees required by this section shall be submitted to the 18 department electronically. The forms shall specify all of the 19 following: 20 a. The manner under which the device delivery sale permit 21 holder transacts or intends to transact business as a device 22 delivery sale permit holder. 23 b. The principal office, residence, and place of business, 24 to which the device delivery sale permit is to apply. 25 c. If the applicant is not an individual, the names of the 26 partners if the applicant is a partnership or the names of 27 the principal officers or members if the applicant is a legal 28 entity, and their addresses. 29 d. Such other information as the director shall by rule 30 prescribe. > 31 5. Page 7, line 11, by striking < 2. > and inserting < 4. > 32 6. Page 7, line 35, after < submitted > by inserting 33 < electronically > 34 7. Page 8, line 4, by striking < 3. > and inserting < 5. > 35 -2- SF 345.3250 (2) 90 pf/jh 2/ 6 #5. #6.

8. Page 8, line 5, after < director > by inserting 1 < electronically > 2 9. Page 8, line 10, by striking < 4. > and inserting < 6. > 3 10. Page 8, by striking lines 25 through 28 and inserting: 4 < 2. a. There is levied and imposed an excise tax on a 5 device purchased in this state through a sale by a device 6 retailer or purchased for use in this state through a delivery 7 sale of forty percent of the retail sales price of the device. 8 b. For the purposes of this section, “retail sales price” 9 means the total amount of consideration, including cash, 10 credit, property, and services, for which personal property or 11 services are sold, leased, or rented, valued in money, whether 12 received in money or otherwise, without any deduction for any 13 of the following: 14 (1) The device retailer’s or device delivery sale permit 15 holder’s cost of the device sold. 16 (2) The cost of materials used, labor or service cost, 17 interest, losses, all costs of transportation to the device 18 retailer or to the device delivery sale permit holder, as 19 applicable, all taxes imposed on the device retailer or the 20 device delivery sale permit holder except as provided in 21 paragraph “c” , subparagraphs (5) and (6), and any other expenses 22 of the device retailer or device delivery sale permit holder. 23 (3) Charges by the device retailer or device delivery sale 24 permit holder for any services necessary to complete the sale, 25 other than delivery and installation charges. 26 (4) Delivery charges. 27 c. “Retail sales price” does not include any of the 28 following: 29 (1) Discounts, including cash, term, or coupons that are 30 not reimbursed by a third party that are allowed by a device 31 retailer or a device delivery sale permit holder and taken by a 32 consumer on sale. 33 (2) Interest, financing, carrying charges from credit 34 extended on the sale of a device, if the amount is separately 35 -3- SF 345.3250 (2) 90 pf/jh 3/ 6 #8. #9. #10.

stated on the invoice, bill of sale, or similar document given 1 to the consumer. 2 (3) Any taxes legally imposed directly on the consumer that 3 are separately stated on the invoice, bill of sale, or similar 4 document given to the consumer. 5 (4) Trade discounts given or allowed by manufacturers, 6 distributors, or wholesalers to device retailers or 7 device delivery sale permit holders or by manufacturers or 8 distributors to wholesalers and payments made by manufacturers, 9 distributors, or wholesalers directly to device retailers 10 or device delivery sale permit holders or by manufacturers 11 or distributors to wholesalers to reduce the sales price of 12 the manufacturer’s, distributor’s, or wholesaler’s product 13 or to promote the sale or recognition of the manufacturer’s, 14 distributor’s, or wholesaler’s product. This subparagraph does 15 not apply to coupons issued by manufacturers, distributors, or 16 wholesalers to consumers. 17 (5) Any state or local tax on a sale that is imposed on the 18 device retailer or device delivery sale permit holder if the 19 statute, rule, or local ordinance imposing the tax provides 20 that the device retailer or device delivery sale permit holder 21 may but is not required to collect such tax from the consumer, 22 and if the tax is separately stated on the invoice, bill of 23 sale, or similar document given to the consumer. 24 (6) Any tribal tax on a sale that is imposed on the device 25 retailer or device delivery sale permit holder if the tribal 26 law imposing the tax provides that the device retailer or 27 device delivery sale permit holder may but is not required 28 to collect such tax from the consumer, and if the tax is 29 separately stated on the invoice, bill of sale, or similar 30 document given to the consumer. 31 d. The retail sales price does not include, and the device 32 excise tax shall not apply to, amounts received for charges 33 included in paragraph “b” , subparagraphs (3) and (4), if the 34 charges are separately contracted for, separately stated on 35 -4- SF 345.3250 (2) 90 pf/jh 4/ 6

the invoice, bill of sale, or similar document given to the 1 consumer, and the amounts represent charges which are not the 2 retail sales price of a taxable sale of a device under this 3 chapter. > 4 11. Page 8, line 35, after < department > by inserting 5 < electronically > 6 12. Page 10, by striking lines 14 through 26 and inserting: 7 < 1. A specialty courts program fund is created in the 8 state treasury under the control of the office of drug control 9 policy. Moneys from permit fees, with the exception of 10 permit fees collected by the department on behalf of cities or 11 counties in the issuance of permits, and excise taxes imposed 12 and collected pursuant to section 453E.5, shall be deposited in 13 the fund. Permit fees collected by the department on behalf of 14 cities under this chapter shall be remitted by the department 15 to the treasurer of the city where the permit is effective 16 and credited to the general fund of the city. Permit fees 17 collected by the department on behalf of counties under this 18 chapter shall be remitted by the department to the treasurer of 19 the county where the permit is effective and credited to the 20 general fund of the county. > 21 13. Page 10, line 27, by striking < governor’s > 22 14. Page 10, line 33, by striking < governor’s > 23 15. Page 11, line 3, by striking < governor’s > 24 16. Page 11, line 25, by striking < governor’s > 25 17. Page 12, by striking lines 24 through 28 and inserting: 26 < c. A local authority shall report the suspension or 27 revocation of a device retailer permit or a device delivery 28 sale permit under this section to the department within thirty 29 days of the suspension or revocation of the permit. > 30 18. Page 13, line 17, by striking < 2024 > and inserting 31 < 2025 > 32 19. By renumbering, redesignating, and correcting internal 33 references as necessary. 34 -5- SF 345.3250 (2) 90 pf/jh 5/ 6 #11. #12. #13. #14. #15. #16. #17. #18.