House Amendment to Senate File 345 S-5050 Amend Senate File 345, as amended, passed, and reprinted by 1 the Senate, as follows: 2 1. Page 1, before line 1 by inserting: 3 < DIVISION I 4 DRUG PARAPHERNALIA 5 Section 1. Section 124.414, subsection 3, Code 2023, is 6 amended to read as follows: 7 3. A person who violates this section commits a simple 8 misdemeanor punishable as a scheduled violation under section 9 805.8C . 10 Sec. ___. Section 805.8C, Code 2023, is amended by adding 11 the following new subsection: 12 NEW SUBSECTION . 3A. Drug paraphernalia violations. 13 a. For a first violation of section 124.414, the scheduled 14 fine is two hundred sixty dollars. 15 b. For a second or subsequent violation of section 124.414, 16 the scheduled fine is five hundred twenty dollars. 17 DIVISION ___ 18 DEVICE REGULATION > 19 2. By striking page 4, line 32, through page 5, line 9, and 20 inserting: 21 < 4. Issuance. 22 a. Cities may approve device retailer permit applications 23 for applicants located within their respective limits. County 24 boards of supervisors may approve device retailer permit 25 applications for applicants located in their respective 26 counties, outside of the corporate limits of cities. 27 b. Upon approval of a device retailer permit application 28 by a city or county, the department shall issue the permit to 29 the applicant on behalf of the city or county, as applicable, 30 in a manner determined by the department. A city or county 31 shall use the department’s electronic portal to process 32 device retailer permit applications. A city or county that is 33 unable to use the department’s electronic portal may request 34 permission from the director to process device retailer permit 35 -1- SF 345.3472.H (1) 90 md 1/ 7 #1. #2.

applications by another method. 1 c. The department shall submit the current list of all 2 device retailer permits issued to the department of health 3 and human services by the last day of each quarter of a state 4 fiscal year. > 5 3. Page 5, by striking lines 3 through 6 and inserting 6 < retailer permit to the department within thirty days of 7 issuance of a device retailer permit. The department shall 8 submit the current list of > 9 4. Page 5, by striking lines 14 and 15 and inserting < the 10 period ending June 30 next, to the department. The fee for a 11 device retailer > 12 5. Page 5, by striking lines 17 through 23 and inserting: 13 < 6. Application. Device retailer permits shall be issued 14 only upon application, accompanied by the one thousand 15 five hundred dollar fee, made upon forms furnished by the 16 department. The application, any supporting documentation, and 17 the associated fees required by this section shall be submitted 18 to the department electronically. The forms shall specify all 19 of the following: > 20 6. By striking page 6, line 27, through page 7, line 10, and 21 inserting: 22 < 1. A person shall not mail, ship, or otherwise cause to be 23 delivered any device in connection with a delivery sale to any 24 other person within this state unless the person has applied 25 for and holds a device delivery sale permit as provided in this 26 section. 27 2. All device delivery sale permits provided for in 28 this section shall expire on June 30 of each year. A device 29 delivery sale permit shall not be granted or issued until the 30 applicant has paid the fees provided for in this section for 31 the period ending June 30 next, to the department. The fee 32 for a device delivery sale permit is one thousand five hundred 33 dollars. 34 3. Device delivery sale permits shall be issued only upon 35 -2- SF 345.3472.H (1) 90 md 2/ 7 #3. #4. #5. #6.

application, accompanied by the one thousand five hundred 1 dollar fee, made upon forms furnished by the department. The 2 application, any supporting documentation, and the associated 3 fees required by this section shall be submitted to the 4 department electronically. The forms shall specify all of the 5 following: 6 a. The manner under which the device delivery sale permit 7 holder transacts or intends to transact business as a device 8 delivery sale permit holder. 9 b. The principal office, residence, and place of business, 10 to which the device delivery sale permit is to apply. 11 c. If the applicant is not an individual, the names of the 12 partners if the applicant is a partnership or the names of 13 the principal officers or members if the applicant is a legal 14 entity, and their addresses. 15 d. Such other information as the director shall by rule 16 prescribe. > 17 7. Page 7, line 11, by striking < 2. > and inserting < 4. > 18 8. Page 7, line 35, after < submitted > by inserting 19 < electronically > 20 9. Page 8, line 4, by striking < 3. > and inserting < 5. > 21 10. Page 8, line 5, after < director > by inserting 22 < electronically > 23 11. Page 8, line 10, by striking < 4. > and inserting < 6. > 24 12. Page 8, by striking lines 25 through 28 and inserting: 25 < 2. a. There is levied and imposed an excise tax on a 26 device purchased in this state through a sale by a device 27 retailer or purchased for use in this state through a delivery 28 sale of forty percent of the retail sales price of the device. 29 b. For the purposes of this section, “retail sales price” 30 means the total amount of consideration, including cash, 31 credit, property, and services, for which personal property or 32 services are sold, leased, or rented, valued in money, whether 33 received in money or otherwise, without any deduction for any 34 of the following: 35 -3- SF 345.3472.H (1) 90 md 3/ 7 #7. #8. #9. #10. #11. #12.

(1) The device retailer’s or device delivery sale permit 1 holder’s cost of the device sold. 2 (2) The cost of materials used, labor or service cost, 3 interest, losses, all costs of transportation to the device 4 retailer or to the device delivery sale permit holder, as 5 applicable, all taxes imposed on the device retailer or the 6 device delivery sale permit holder except as provided in 7 paragraph “c” , subparagraphs (5) and (6), and any other expenses 8 of the device retailer or device delivery sale permit holder. 9 (3) Charges by the device retailer or device delivery sale 10 permit holder for any services necessary to complete the sale, 11 other than delivery and installation charges. 12 (4) Delivery charges. 13 c. “Retail sales price” does not include any of the 14 following: 15 (1) Discounts, including cash, term, or coupons that are 16 not reimbursed by a third party that are allowed by a device 17 retailer or a device delivery sale permit holder and taken by a 18 consumer on sale. 19 (2) Interest, financing, carrying charges from credit 20 extended on the sale of a device, if the amount is separately 21 stated on the invoice, bill of sale, or similar document given 22 to the consumer. 23 (3) Any taxes legally imposed directly on the consumer that 24 are separately stated on the invoice, bill of sale, or similar 25 document given to the consumer. 26 (4) Trade discounts given or allowed by manufacturers, 27 distributors, or wholesalers to device retailers or 28 device delivery sale permit holders or by manufacturers or 29 distributors to wholesalers and payments made by manufacturers, 30 distributors, or wholesalers directly to device retailers 31 or device delivery sale permit holders or by manufacturers 32 or distributors to wholesalers to reduce the sales price of 33 the manufacturer’s, distributor’s, or wholesaler’s product 34 or to promote the sale or recognition of the manufacturer’s, 35 -4- SF 345.3472.H (1) 90 md 4/ 7

distributor’s, or wholesaler’s product. This subparagraph does 1 not apply to coupons issued by manufacturers, distributors, or 2 wholesalers to consumers. 3 (5) Any state or local tax on a sale that is imposed on the 4 device retailer or device delivery sale permit holder if the 5 statute, rule, or local ordinance imposing the tax provides 6 that the device retailer or device delivery sale permit holder 7 may but is not required to collect such tax from the consumer, 8 and if the tax is separately stated on the invoice, bill of 9 sale, or similar document given to the consumer. 10 (6) Any tribal tax on a sale that is imposed on the device 11 retailer or device delivery sale permit holder if the tribal 12 law imposing the tax provides that the device retailer or 13 device delivery sale permit holder may but is not required 14 to collect such tax from the consumer, and if the tax is 15 separately stated on the invoice, bill of sale, or similar 16 document given to the consumer. 17 d. The retail sales price does not include, and the device 18 excise tax shall not apply to, amounts received for charges 19 included in paragraph “b” , subparagraphs (3) and (4), if the 20 charges are separately contracted for, separately stated on 21 the invoice, bill of sale, or similar document given to the 22 consumer, and the amounts represent charges which are not the 23 retail sales price of a taxable sale of a device under this 24 chapter. > 25 13. Page 8, line 35, after < department > by inserting 26 < electronically > 27 14. Page 9, line 6, by striking < program > and inserting < and 28 diversion programs > 29 15. Page 10, by striking line 13 and inserting: 30 < Sec. ___. NEW SECTION . 453E.6 Specialty courts and 31 diversion programs fund. > 32 16. Page 10, by striking lines 14 through 26 and inserting: 33 < 1. A specialty courts and diversion programs fund is 34 created in the state treasury under the control of the office 35 -5- SF 345.3472.H (1) 90 md 5/ 7 #13. #14. #15. #16.

of drug control policy. Moneys from permit fees, with the 1 exception of permit fees collected by the department on 2 behalf of cities or counties in the issuance of permits, and 3 excise taxes imposed and collected pursuant to section 453E.5, 4 shall be deposited in the fund. Permit fees collected by the 5 department on behalf of cities under this chapter shall be 6 remitted by the department to the treasurer of the city where 7 the permit is effective and credited to the general fund of the 8 city. Permit fees collected by the department on behalf of 9 counties under this chapter shall be remitted by the department 10 to the treasurer of the county where the permit is effective 11 and credited to the general fund of the county. > 12 17. Page 10, line 27, by striking < governor’s > 13 18. Page 10, line 29, after < courts > by inserting < and 14 diversion programs > 15 19. Page 10, line 33, by striking < governor’s > 16 20. Page 10, line 35, by striking < program > and inserting 17 < and diversion programs > 18 21. Page 11, line 2, after < courts > by inserting < and 19 diversion programs > 20 22. Page 11, line 3, by striking < governor’s > 21 23. Page 11, line 25, by striking < governor’s > 22 24. Page 12, by striking lines 24 through 28 and inserting: 23 < c. A local authority shall report the suspension or 24 revocation of a device retailer permit or a device delivery 25 sale permit under this section to the department within thirty 26 days of the suspension or revocation of the permit. > 27 25. Page 12, by striking lines 26 and 27 and inserting 28 < device delivery sale permit under this section to the 29 department within thirty > 30 26. Page 13, line 16, after < This > by inserting < division 31 of this > 32 27. Page 13, by striking lines 16 and 17 and inserting: 33 < Sec. ___. EFFECTIVE DATE. This Act takes effect January 1, 34 2025. > 35 -6- SF 345.3472.H (1) 90 md 6/ 7 #17. #18. #19. #20. #21. #22. #23. #24. #25. #26. #27.