Senate
File
345
-
Enrolled
Senate
File
345
AN
ACT
RELATING
TO
THE
REGULATION
OF
CERTAIN
TOBACCO
PRODUCTS,
PROVIDING
PENALTIES,
AND
INCLUDING
EFFECTIVE
DATE
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
NEW
SECTION
.
453E.1
Definitions.
As
used
in
this
chapter,
unless
the
context
otherwise
requires:
1.
“Business”
means
any
trade,
occupation,
activity,
or
enterprise
engaged
in
for
the
purpose
of
selling
or
distributing
tobacco
products
and
devices
in
this
state.
2.
“Consumer”
means
any
person
who
has
title
to
or
possession
of
devices
in
storage,
for
use
or
other
consumption
in
this
state.
3.
“Controlled
substance”
means
controlled
substance
as
defined
in
section
124.101.
Senate
File
345,
p.
2
4.
“Delivery
sale”
means
any
sale
of
a
device
to
a
purchaser
in
this
state
where
the
purchaser
submits
the
order
for
such
sale
by
means
of
a
telephonic
or
other
method
of
voice
transmission,
mail
or
any
other
delivery
service,
or
the
internet
or
other
online
service
and
the
device
is
delivered
by
use
of
mail
or
a
delivery
service.
The
sale
of
a
device
shall
constitute
a
delivery
sale
regardless
of
whether
the
seller
is
located
in
this
state.
“Delivery
sale”
does
not
include
a
sale
to
a
distributor
or
retailer
of
a
device
not
for
personal
use.
5.
“Department”
means
the
department
of
revenue.
6.
a.
“Device”
means
any
equipment
or
product,
made
in
whole
or
in
part
of
glass
or
metal,
that
is
designed
for
use
in
inhaling
through
combustion
tobacco,
hemp,
other
plant
materials,
or
a
controlled
substance.
“Device”
does
not
include
a
vapor
product
or
a
tobacco
smoking
product
made
of
briar,
meerschaum,
clay,
or
corn
cob
and
not
having
a
surface,
aperture,
or
other
feature
consisting
of
metal
or
glass.
b.
In
determining
whether
any
particular
item
constitutes
a
“device”
,
the
following
factors
may
be
considered:
(1)
The
instructions,
oral
or
written,
provided
with
the
item
concerning
its
use.
(2)
Any
descriptive
materials
accompanying
the
item
which
explain
or
depict
its
use.
(3)
National
and
local
advertising
concerning
the
item’s
use.
(4)
The
manner
in
which
the
item
is
displayed
for
sale.
(5)
Whether
the
owner
of
the
place
of
business,
or
anyone
in
control
of
the
item
at
the
place
of
business,
is
a
legitimate
supplier
of
like
or
related
items
to
the
community,
such
as
a
licensed
distributor,
manufacturer,
or
subjobber.
(6)
Direct
or
circumstantial
evidence
of
the
ratio
of
sales
of
the
item
to
the
total
sales
of
the
place
of
business.
(7)
The
existence
and
scope
of
legitimate
uses
of
the
item
in
the
community.
(8)
Expert
testimony
concerning
the
item’s
use.
c.
A
particular
item
may
constitute
a
device
notwithstanding
any
lawful
use
of
the
item.
7.
“Device
retailer”
means
a
person
engaged
in
the
retail
sale
of
tangible
personal
property
who
is
also
engaged
in
Senate
File
345,
p.
3
selling
devices
to
the
ultimate
consumer.
8.
“Director”
means
the
director
of
revenue.
9.
“Distributor”
means
the
same
as
defined
in
section
453A.42.
10.
“Manufacturer”
means
the
same
as
defined
in
section
453A.42.
11.
“Place
of
business”
means
any
place
where
tobacco
products
and
devices
are
sold,
stored,
or
kept
for
the
purpose
of
sale
or
consumption;
or
for
a
business
within
or
without
the
state
that
conducts
delivery
sales,
any
place
where
tobacco
products
and
devices
are
sold
or
are
kept
for
the
purpose
of
sale,
including
delivery
sales.
12.
“Retail
outlet”
means
each
place
of
business
from
which
tobacco
products
and
devices
are
sold
to
consumers.
13.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
any
manner
or
by
any
means
whatsoever,
for
consideration,
and
includes
and
means
all
sales
made
by
any
person.
14.
“Subjobber”
means
the
same
as
defined
in
section
453A.42.
15.
“Tobacco
products”
means
cigars;
little
cigars;
cheroots;
stogies;
periques;
granulated,
plug
cut,
crimp
cut,
ready
rubbed,
and
other
smoking
tobacco;
snuff;
cavendish;
plug
and
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
shorts;
refuse
scraps,
clippings,
cuttings
and
sweepings
of
tobacco,
and
other
kinds
and
forms
of
tobacco,
prepared
in
such
manner
as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
or
otherwise,
or
both
for
chewing
and
smoking;
but
shall
not
include
cigarettes
as
defined
in
section
453A.1.
16.
“Tobacco
retailer”
means
a
retailer
as
defined
in
section
453A.42.
17.
“Use”
means
the
exercise
of
any
right
or
power
incidental
to
the
ownership
of
tobacco
products
or
devices.
18.
“Vapor
product”
means
the
same
as
defined
in
section
453A.1.
Sec.
2.
NEW
SECTION
.
453E.2
Administration
——
rules
——
intent.
1.
The
director
shall
administer
this
chapter.
The
director
shall
collect,
supervise,
and
enforce
the
collection
of
all
fees,
taxes,
and
civil
penalties
imposed
under
this
chapter.
Senate
File
345,
p.
4
2.
The
director
may
adopt
rules
pursuant
to
chapter
17A
that
are
necessary
to
enforce
this
chapter.
3.
The
director
may
designate
employees
to
administer
and
enforce
the
provisions
of
this
chapter,
including
the
collection
of
all
taxes
provided
for
in
this
chapter.
In
the
enforcement,
the
director
may
request
aid
from
the
attorney
general,
the
special
agents
of
the
state,
any
county
attorney,
or
any
peace
officer.
The
director
may
appoint
clerks
and
additional
help
as
may
be
needed
to
administer
this
chapter.
4.
This
chapter
or
the
holding
of
a
device
retailer
permit
or
a
device
delivery
sale
permit
under
this
chapter
shall
not
be
construed
to
provide
for
any
of
the
following:
a.
Immunity
from
prosecution
or
the
limitation
of
the
application
of
other
state
law
and
regulations
governing
tobacco
products,
drug
paraphernalia,
or
controlled
substances.
b.
Authorization
for
the
possession,
marketing,
offering
for
sale,
or
selling
of
a
device,
the
possession,
marketing,
offering
for
sale,
or
selling
of
which
is
otherwise
prohibited
by
state
or
federal
law.
Sec.
3.
NEW
SECTION
.
453E.3
Device
retailers
——
permits
——
fees.
1.
Permits
required.
A
person
shall
not
engage
in
the
business
of
a
device
retailer
at
any
place
of
business
or
through
delivery
sales,
unless
the
person
complies
with
all
of
the
following:
a.
The
person
has
received
and
holds
a
permit
as
a
tobacco
retailer
pursuant
to
section
453A.47A
that
has
not
been
suspended
or
revoked
and
is
not
expired;
complies
with
the
provisions
of
chapter
453A
applicable
to
a
tobacco
retailer;
and
sells
tobacco
products
in
addition
to
devices
at
the
retail
outlet
or
through
delivery
sales.
b.
The
person
has
received
and
holds
a
permit
as
a
device
retailer
pursuant
to
this
section
that
has
not
been
suspended
or
revoked
and
is
not
expired,
and
complies
with
the
provisions
of
this
chapter.
2.
No
sales
without
device
retailer
permit.
A
device
retailer
shall
not
sell
devices
until
an
application
has
been
filed
and
the
fee
prescribed
paid
for
a
permit
and
until
such
permit
is
obtained
and
only
while
such
permit
is
not
suspended,
Senate
File
345,
p.
5
revoked,
or
expired.
3.
Number
of
device
retailer
permits.
An
application
shall
be
filed
and
a
permit
obtained
for
each
place
of
business
owned
or
operated
by
a
device
retailer
located
in
the
state.
If
an
out-of-state
device
retailer
makes
delivery
sales
of
devices,
an
application
shall
be
filed
with
the
department
and
a
permit
shall
be
issued
for
the
out-of-state
device
retailer’s
principal
place
of
business.
4.
Issuance.
a.
Cities
may
approve
device
retailer
permit
applications
for
applicants
located
within
their
respective
limits.
County
boards
of
supervisors
may
approve
device
retailer
permit
applications
for
applicants
located
in
their
respective
counties,
outside
of
the
corporate
limits
of
cities.
b.
Upon
approval
of
a
device
retailer
permit
application
by
a
city
or
county,
the
department
shall
issue
the
permit
to
the
applicant
on
behalf
of
the
city
or
county,
as
applicable,
in
a
manner
determined
by
the
department.
A
city
or
county
shall
use
the
department’s
electronic
portal
to
process
device
retailer
permit
applications.
A
city
or
county
that
is
unable
to
use
the
department’s
electronic
portal
may
request
permission
from
the
director
to
process
device
retailer
permit
applications
by
another
method.
c.
The
department
shall
submit
the
current
list
of
all
device
retailer
permits
issued
to
the
department
of
health
and
human
services
by
the
last
day
of
each
quarter
of
a
state
fiscal
year.
5.
Fees
——
expiration.
All
device
retailer
permits
provided
for
in
this
section
shall
expire
on
June
30
of
each
year.
A
device
retailer
permit
shall
not
be
granted
or
issued
until
the
applicant
has
paid
the
fees
provided
for
in
this
section
for
the
period
ending
June
30
next,
to
the
department.
The
fee
for
a
device
retailer
permit
is
one
thousand
five
hundred
dollars.
6.
Application.
Device
retailer
permits
shall
be
issued
only
upon
application,
accompanied
by
the
one
thousand
five
hundred
dollar
fee,
made
upon
forms
furnished
by
the
department.
The
application,
any
supporting
documentation,
and
the
associated
fees
required
by
this
section
shall
be
submitted
to
the
department
electronically.
The
forms
shall
specify
all
Senate
File
345,
p.
6
of
the
following:
a.
The
manner
under
which
the
device
retailer
transacts
or
intends
to
transact
business
as
a
device
retailer.
b.
The
principal
office,
residence,
and
place
of
business,
to
which
the
device
retailer
permit
is
to
apply.
c.
If
the
applicant
is
not
an
individual,
the
names
of
the
partners
if
the
applicant
is
a
partnership
or
the
names
of
the
principal
officers
or
members
if
the
applicant
is
a
legal
entity,
and
their
addresses.
d.
Such
other
information
as
the
director
shall
by
rule
prescribe.
7.
Records
and
reports
of
device
retailers.
a.
The
director
shall
prescribe
the
forms
necessary
for
the
efficient
administration
of
this
section
and
may
require
uniform
books
and
records
to
be
used
and
kept
by
each
device
retailer
or
other
person
as
deemed
necessary.
b.
Every
device
retailer
shall,
when
requested
by
the
department,
make
additional
reports
as
the
department
deems
necessary
and
proper
and
shall
at
the
request
of
the
department
furnish
full
and
complete
information
pertaining
to
any
transaction
of
the
device
retailer
involving
the
purchase
or
sale
of
devices,
including
the
number
of
devices
sold.
8.
Requirements
for
sale.
a.
A
device
retailer
shall
not
sell,
give,
or
otherwise
supply
a
device
to
any
person
under
twenty-one
years
of
age
and
shall
verify
the
age
of
all
purchasers
of
devices.
If
a
device
is
purchased
at
a
retail
outlet,
valid
proof
of
the
purchaser’s
identity
and
age
shall
be
obtained
at
the
time
the
device
is
supplied
to
the
purchaser.
If
a
device
is
purchased
through
a
delivery
sale,
valid
proof
of
the
purchaser’s
identity
and
age
shall
be
obtained
in
accordance
with
section
453E.4.
b.
A
device
retailer
shall
only
display
and
sell
devices
in
a
location
of
a
retail
outlet
where
the
device
retailer
ensures
that
the
devices
are
not
visible
to
a
person
younger
than
twenty-one
years
of
age
and
where
no
person
younger
than
twenty-one
years
of
age
is
present
or
permitted
to
enter
at
any
time.
Sec.
4.
NEW
SECTION
.
453E.4
Delivery
sale
of
devices
——
permit
——
requirements.
Senate
File
345,
p.
7
1.
A
person
shall
not
mail,
ship,
or
otherwise
cause
to
be
delivered
any
device
in
connection
with
a
delivery
sale
to
any
other
person
within
this
state
unless
the
person
has
applied
for
and
holds
a
device
delivery
sale
permit
as
provided
in
this
section.
2.
All
device
delivery
sale
permits
provided
for
in
this
section
shall
expire
on
June
30
of
each
year.
A
device
delivery
sale
permit
shall
not
be
granted
or
issued
until
the
applicant
has
paid
the
fees
provided
for
in
this
section
for
the
period
ending
June
30
next,
to
the
department.
The
fee
for
a
device
delivery
sale
permit
is
one
thousand
five
hundred
dollars.
3.
Device
delivery
sale
permits
shall
be
issued
only
upon
application,
accompanied
by
the
one
thousand
five
hundred
dollar
fee,
made
upon
forms
furnished
by
the
department.
The
application,
any
supporting
documentation,
and
the
associated
fees
required
by
this
section
shall
be
submitted
to
the
department
electronically.
The
forms
shall
specify
all
of
the
following:
a.
The
manner
under
which
the
device
delivery
sale
permit
holder
transacts
or
intends
to
transact
business
as
a
device
delivery
sale
permit
holder.
b.
The
principal
office,
residence,
and
place
of
business,
to
which
the
device
delivery
sale
permit
is
to
apply.
c.
If
the
applicant
is
not
an
individual,
the
names
of
the
partners
if
the
applicant
is
a
partnership
or
the
names
of
the
principal
officers
or
members
if
the
applicant
is
a
legal
entity,
and
their
addresses.
d.
Such
other
information
as
the
director
shall
by
rule
prescribe.
4.
The
delivery
sale
of
devices
pursuant
to
this
section
shall
be
subject
to
the
following
requirements
and
restrictions:
a.
All
devices
delivered
by
delivery
sale
directly
to
a
resident
of
this
state
shall
be
sold
only
by
a
device
delivery
sale
permit
holder.
b.
A
device
delivery
sale
permit
holder
shall
only
deliver
devices
by
delivery
sale
to
a
resident
of
this
state
who
is
at
least
twenty-one
years
of
age
for
the
resident’s
personal
use
Senate
File
345,
p.
8
and
not
for
resale.
c.
All
devices
delivered
by
delivery
sale
directly
to
a
resident
of
this
state
shall
be
conspicuously
labeled
with
the
words
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
21
OR
OLDER
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
alternative
wording
preapproved
by
the
director.
d.
A
device
delivery
sale
permit
holder
shall
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
and
shall
obtain
the
signature
of
a
person
age
twenty-one
or
older
as
a
condition
of
delivery.
e.
A
device
delivery
sale
permit
holder
shall
maintain
records
of
devices
delivered
which
include
the
name
of
the
device
manufacturer,
quantity
of
devices
delivered,
recipient’s
name
and
address
and
verification
of
age
on
an
electronic
or
paper
form
of
signature
from
the
recipient
of
the
device,
and
sales
and
excise
taxes
paid.
Records
shall
be
submitted
electronically
to
the
director
on
a
monthly
basis
in
a
form
and
manner
to
be
determined
by
the
director.
Records
shall
be
maintained
for
at
least
five
years.
5.
A
device
delivery
sale
permit
holder
shall
remit
to
the
director
electronically
an
amount
equivalent
to
the
applicable
sales
tax
and
excise
tax
on
devices
subject
to
delivery
sale
at
the
rates
specified
in
section
423.2
and
section
453E.5,
as
applicable.
The
amount
shall
be
remitted
at
the
time
and
in
the
manner
provided
in
section
453E.5.
6.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
have
consented
to
the
jurisdiction
of
the
director
or
any
other
agency
or
court
in
this
state
concerning
enforcement
of
this
section
and
any
related
laws,
rules,
or
regulations.
A
device
delivery
sale
permit
holder
shall
allow
the
director
to
perform
an
audit
of
records
of
devices
upon
request.
Sec.
5.
NEW
SECTION
.
453E.5
Sales
and
excise
taxes
on
sales
and
delivery
sales
of
devices
——
examination
of
records
and
premises
——
subpoena
for
witnesses
and
papers.
1.
A
sale
or
delivery
sale
of
a
device
within
this
state
shall
be
subject
to
the
sales
tax
provided
in
chapter
423,
subchapter
II.
All
the
provisions
for
the
lien
of
the
tax,
its
collection,
and
all
actions
as
provided
in
the
uniform
sales
and
use
tax
administration
Act,
chapter
423,
shall
apply
to
the
Senate
File
345,
p.
9
tax
imposed
in
this
chapter.
2.
a.
There
is
levied
and
imposed
an
excise
tax
on
a
device
purchased
in
this
state
through
a
sale
by
a
device
retailer
or
purchased
for
use
in
this
state
through
a
delivery
sale
of
forty
percent
of
the
retail
sales
price
of
the
device.
b.
For
the
purposes
of
this
section,
“retail
sales
price”
means
the
total
amount
of
consideration,
including
cash,
credit,
property,
and
services,
for
which
personal
property
or
services
are
sold,
leased,
or
rented,
valued
in
money,
whether
received
in
money
or
otherwise,
without
any
deduction
for
any
of
the
following:
(1)
The
device
retailer’s
or
device
delivery
sale
permit
holder’s
cost
of
the
device
sold.
(2)
The
cost
of
materials
used,
labor
or
service
cost,
interest,
losses,
all
costs
of
transportation
to
the
device
retailer
or
to
the
device
delivery
sale
permit
holder,
as
applicable,
all
taxes
imposed
on
the
device
retailer
or
the
device
delivery
sale
permit
holder
except
as
provided
in
paragraph
“c”
,
subparagraphs
(5)
and
(6),
and
any
other
expenses
of
the
device
retailer
or
device
delivery
sale
permit
holder.
(3)
Charges
by
the
device
retailer
or
device
delivery
sale
permit
holder
for
any
services
necessary
to
complete
the
sale,
other
than
delivery
and
installation
charges.
(4)
Delivery
charges.
c.
“Retail
sales
price”
does
not
include
any
of
the
following:
(1)
Discounts,
including
cash,
term,
or
coupons
that
are
not
reimbursed
by
a
third
party
that
are
allowed
by
a
device
retailer
or
a
device
delivery
sale
permit
holder
and
taken
by
a
consumer
on
sale.
(2)
Interest,
financing,
carrying
charges
from
credit
extended
on
the
sale
of
a
device,
if
the
amount
is
separately
stated
on
the
invoice,
bill
of
sale,
or
similar
document
given
to
the
consumer.
(3)
Any
taxes
legally
imposed
directly
on
the
consumer
that
are
separately
stated
on
the
invoice,
bill
of
sale,
or
similar
document
given
to
the
consumer.
(4)
Trade
discounts
given
or
allowed
by
manufacturers,
distributors,
or
wholesalers
to
device
retailers
or
Senate
File
345,
p.
10
device
delivery
sale
permit
holders
or
by
manufacturers
or
distributors
to
wholesalers
and
payments
made
by
manufacturers,
distributors,
or
wholesalers
directly
to
device
retailers
or
device
delivery
sale
permit
holders
or
by
manufacturers
or
distributors
to
wholesalers
to
reduce
the
sales
price
of
the
manufacturer’s,
distributor’s,
or
wholesaler’s
product
or
to
promote
the
sale
or
recognition
of
the
manufacturer’s,
distributor’s,
or
wholesaler’s
product.
This
subparagraph
does
not
apply
to
coupons
issued
by
manufacturers,
distributors,
or
wholesalers
to
consumers.
(5)
Any
state
or
local
tax
on
a
sale
that
is
imposed
on
the
device
retailer
or
device
delivery
sale
permit
holder
if
the
statute,
rule,
or
local
ordinance
imposing
the
tax
provides
that
the
device
retailer
or
device
delivery
sale
permit
holder
may
but
is
not
required
to
collect
such
tax
from
the
consumer,
and
if
the
tax
is
separately
stated
on
the
invoice,
bill
of
sale,
or
similar
document
given
to
the
consumer.
(6)
Any
tribal
tax
on
a
sale
that
is
imposed
on
the
device
retailer
or
device
delivery
sale
permit
holder
if
the
tribal
law
imposing
the
tax
provides
that
the
device
retailer
or
device
delivery
sale
permit
holder
may
but
is
not
required
to
collect
such
tax
from
the
consumer,
and
if
the
tax
is
separately
stated
on
the
invoice,
bill
of
sale,
or
similar
document
given
to
the
consumer.
d.
The
retail
sales
price
does
not
include,
and
the
device
excise
tax
shall
not
apply
to,
amounts
received
for
charges
included
in
paragraph
“b”
,
subparagraphs
(3)
and
(4),
if
the
charges
are
separately
contracted
for,
separately
stated
on
the
invoice,
bill
of
sale,
or
similar
document
given
to
the
consumer,
and
the
amounts
represent
charges
which
are
not
the
retail
sales
price
of
a
taxable
sale
of
a
device
under
this
chapter.
3.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
have
waived
all
claims
that
such
permit
holder
lacks
physical
presence
within
this
state
for
purposes
of
collecting
and
remitting
the
sales
and
excise
taxes.
4.
A
device
delivery
sale
permit
holder
making
taxable
delivery
sales
of
devices
within
this
state
and
a
device
retailer
shall
remit
to
the
department
electronically
all
sales
Senate
File
345,
p.
11
and
excise
taxes
due
on
such
sales
at
the
times
and
in
the
manner
as
established
by
rule
of
the
director.
5.
The
director
may
adopt
rules
pursuant
to
chapter
17A
to
administer
this
section.
6.
Excise
taxes
collected
under
this
section
shall
be
deposited
in
the
specialty
courts
and
diversion
programs
fund
created
in
section
453E.6.
7.
a.
For
the
purpose
of
enabling
the
department
to
determine
the
tax
liability
of
device
delivery
sale
permit
holders,
device
retailers,
or
any
other
person
dealing
in
devices
or
to
determine
whether
a
tax
liability
has
been
incurred,
the
department
shall
have
the
right
to
inspect
any
premises
of
the
device
delivery
sale
permit
holder,
device
retailer,
or
other
person
dealing
in
devices
located
within
or
without
the
state
of
Iowa
where
devices
are
manufactured,
produced,
made,
stored,
transported,
sold,
or
offered
for
sale
or
exchange,
and
to
examine
all
of
the
records
required
to
be
kept
or
any
other
records
that
may
be
kept
incident
to
the
conduct
of
the
business
of
said
device
delivery
sale
permit
holder,
device
retailer,
or
any
other
person
dealing
in
devices.
b.
The
department
shall
also
have
the
right
as
an
incident
to
determining
the
tax
liability,
or
whether
a
tax
liability
has
been
incurred,
to
examine
all
stocks
of
devices
and
to
remain
upon
the
premises
for
such
length
of
time
as
may
be
necessary
to
fully
determine
the
tax
liability,
or
whether
a
tax
liability
has
been
incurred.
c.
It
shall
be
unlawful
for
a
permit
holder
to
fail
to
produce
upon
demand
of
the
department
any
records
required
to
be
kept
or
to
hinder
or
prevent
in
any
manner
the
inspection
of
the
records
or
the
examination
of
the
premises.
d.
In
the
case
of
any
departmental
inspection
conducted
under
this
section
requiring
department
personnel
to
travel
outside
the
state
of
Iowa,
any
additional
costs
incurred
by
the
department
for
out-of-state
travel
expenses
shall
be
borne
by
the
device
delivery
sale
permit
holder,
device
retailer,
or
other
person
dealing
in
devices.
These
additional
costs
shall
be
those
costs
in
excess
of
the
costs
of
a
similar
inspection
conducted
at
the
geographical
point
located
within
the
state
Senate
File
345,
p.
12
of
Iowa
nearest
to
the
out-of-state
inspection
point.
In
lieu
of
conducting
an
on-premises
out-of-state
inspection,
the
department
shall
have
the
authority
to
direct
the
device
delivery
sale
permit
holder,
device
retailer,
or
other
person
dealing
in
devices
to
assemble
and
transport
all
records
described
in
this
subsection
to
the
nearest
practical
and
convenient
geographical
location
in
Iowa
for
inspection
by
the
department.
Sec.
6.
NEW
SECTION
.
453E.6
Specialty
courts
and
diversion
programs
fund.
1.
A
specialty
courts
and
diversion
programs
fund
is
created
in
the
state
treasury
under
the
control
of
the
office
of
drug
control
policy.
Moneys
from
permit
fees,
with
the
exception
of
permit
fees
collected
by
the
department
on
behalf
of
cities
or
counties
in
the
issuance
of
permits,
and
excise
taxes
imposed
and
collected
pursuant
to
section
453E.5,
shall
be
deposited
in
the
fund.
Permit
fees
collected
by
the
department
on
behalf
of
cities
under
this
chapter
shall
be
remitted
by
the
department
to
the
treasurer
of
the
city
where
the
permit
is
effective
and
credited
to
the
general
fund
of
the
city.
Permit
fees
collected
by
the
department
on
behalf
of
counties
under
this
chapter
shall
be
remitted
by
the
department
to
the
treasurer
of
the
county
where
the
permit
is
effective
and
credited
to
the
general
fund
of
the
county.
2.
Moneys
in
the
fund
are
appropriated
to
the
office
of
drug
control
policy
to
be
used
for
the
purpose
of
the
support
of
specialty
courts
and
diversion
programs
to
address
underlying
substance
use
disorder-related
and
mental
health-related
issues
that
contribute
to
the
contact
of
individuals
with
the
justice
system.
3.
The
drug
policy
coordinator
of
the
office
of
drug
control
policy
shall
develop
criteria
for
approval
of
a
request
for
specialty
courts
and
diversion
programs
funding.
Annually,
by
May
1,
the
state
court
administrator
shall
submit
a
specialty
courts
and
diversion
programs
funding
request
for
the
upcoming
fiscal
year
to
the
drug
policy
coordinator
of
the
office
of
drug
control
policy
for
approval,
and
the
drug
policy
coordinator
shall
approve
or
reject
any
such
request
no
later
than
June
1.
The
state
court
administrator
may
submit
Senate
File
345,
p.
13
a
subsequent
request
within
fifteen
days
of
notification
of
the
rejection
of
an
initial
request.
The
state
court
administrator
shall
consult
with
the
director
of
the
department
of
corrections
prior
to
submitting
any
funding
request
that
involves
the
department
of
corrections.
4.
The
fund
shall
be
separate
from
the
general
fund
of
the
state
and
shall
not
be
considered
part
of
the
general
fund
of
the
state.
The
moneys
in
the
fund
shall
not
be
considered
revenue
of
the
state,
but
rather
shall
be
moneys
of
the
fund.
The
moneys
in
the
fund
are
not
subject
to
reversion
to
the
general
fund
of
the
state
under
section
8.33
and
shall
not
be
transferred,
used,
obligated,
appropriated,
or
otherwise
encumbered,
except
to
provide
for
the
purposes
of
this
section.
Notwithstanding
section
12C.7,
subsection
2,
interest
or
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
the
fund.
5.
The
treasurer
of
state
shall
provide
a
quarterly
report
of
fund
activities
and
balances
to
the
drug
policy
coordinator
of
the
office
of
drug
control
policy.
Sec.
7.
NEW
SECTION
.
453E.7
Permits
——
suspension
——
revocation
——
penalties.
1.
The
provisions
of
chapter
453A,
including
the
permit
suspension
and
revocation
provisions
and
the
civil
penalties
established
in
section
453A.22,
shall
apply
to
tobacco
retailers
who
are
also
device
retailer
permit
holders
or
device
delivery
sale
permit
holders
under
this
chapter.
The
provisions
of
chapter
453A
applicable
to
persons
other
than
tobacco
retailers
who
violate
chapter
453A
shall
also
apply
to
persons
who
violate
this
chapter.
2.
A
person
holding
a
device
retailer
permit
or
a
device
delivery
sale
permit
under
this
chapter
who
violates
this
chapter
by
marketing
or
selling
a
device
to
be
used
or
attempted
to
be
used
or
that
is
capable
of
use
in
combination
with
tobacco,
hemp,
other
plant
materials,
or
a
controlled
substance,
to
knowingly
or
intentionally
and
primarily
inhale
the
material
or
substance
through
combustion
commits
a
serious
misdemeanor
and
is
also
subject
to
permit
revocation.
3.
a.
If
a
person
holding
a
device
retailer
permit
or
a
device
delivery
sale
permit
under
this
chapter
has
willfully
Senate
File
345,
p.
14
violated
this
chapter,
the
department
shall
revoke
the
permit
upon
notice
and
hearing.
The
hearing
before
the
department
may
be
held
at
a
site
in
the
state
as
the
department
may
direct.
The
notice
shall
be
given
by
mailing
a
copy
to
the
permit
holder’s
place
of
business
as
it
appears
on
the
application
for
a
permit.
If,
upon
hearing,
the
department
finds
that
the
violation
has
occurred,
the
department
may
revoke
the
permit.
b.
If
a
device
retailer
permit
or
a
device
delivery
sale
permit
is
suspended
or
revoked
under
this
section,
the
suspension
or
revocation
shall
only
apply
to
the
place
of
business
at
which
the
violation
occurred
and
shall
not
apply
to
any
other
place
of
business
to
which
the
permit
applies
but
at
which
the
violation
did
not
occur.
c.
A
local
authority
shall
report
the
suspension
or
revocation
of
a
device
retailer
permit
or
a
device
delivery
sale
permit
under
this
section
to
the
department
within
thirty
days
of
the
suspension
or
revocation
of
the
permit.
4.
In
addition
to
any
other
applicable
penalties,
a
device
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
who
violates
this
chapter
shall
be
subject
to
the
following:
a.
For
a
first
violation,
a
civil
penalty
of
five
hundred
dollars.
b.
For
a
second
violation,
a
civil
penalty
of
one
thousand
dollars.
c.
A
third
violation
constitutes
grounds
for
suspension
or
revocation
of
the
permit
under
this
chapter.
5.
A
person
other
than
a
device
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
who
violates
this
chapter,
including
a
person
who
engages
in
the
business
of
a
device
retailer
at
any
place
of
business
or
through
delivery
sales
without
holding
an
applicable,
valid
permit
under
this
chapter,
commits
a
serious
misdemeanor
and
shall
also
be
subject
to
the
following
civil
penalties:
a.
For
a
first
violation,
a
civil
penalty
of
one
thousand
dollars.
b.
For
a
second
violation,
a
civil
penalty
of
two
thousand
dollars.
c.
For
a
third
or
subsequent
violation,
a
civil
penalty
of
five
thousand
dollars.
Senate
File
345,
p.
15
Sec.
8.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
2025.
______________________________
AMY
SINCLAIR
President
of
the
Senate
______________________________
PAT
GRASSLEY
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
345,
Ninetieth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2024
______________________________
KIM
REYNOLDS
Governor