S.F. _____ Section 1. Section 453A.1, Code 2014, is amended by adding 1 the following new subsections: 2 NEW SUBSECTION . 01. “Alternative nicotine product” means 3 a product, not consisting of or containing tobacco, that 4 provides for the ingestion into the body of nicotine, whether 5 by chewing, absorbing, dissolving, inhaling, snorting, or 6 sniffing, or by any other means. “Alternative nicotine product” 7 does not include cigarettes, tobacco products, or vapor 8 products, or a product that is regulated as a drug or device by 9 the United States food and drug administration under chapter V 10 of the federal Food, Drug, and Cosmetic Act. 11 NEW SUBSECTION . 26A. “Vapor product” means a noncombustible 12 product containing nicotine that employs a mechanical heating 13 element, battery, or circuit, regardless of shape or size, that 14 can be used to heat a nicotine solution, and includes but is 15 not limited to a cartridge or other container of such nicotine 16 solution, an electronic cigarette, an electronic cigar, an 17 electronic cigarillo, or an electronic pipe. “Vapor product” 18 does not include a product regulated as a drug or device by the 19 United States food and drug administration under chapter V of 20 the federal Food, Drug, and Cosmetic Act. 21 Sec. 2. Section 453A.2, subsections 1, 2, 3, and 8, Code 22 2014, are amended to read as follows: 23 1. A person shall not sell, give, or otherwise supply any 24 tobacco, tobacco products, alternative nicotine products, vapor 25 products, or cigarettes to any person under eighteen years of 26 age. 27 2. A person under eighteen years of age shall not smoke, 28 use, possess, purchase, or attempt to purchase any tobacco, 29 tobacco products, alternative nicotine products, vapor 30 products, or cigarettes. 31 3. Possession of cigarettes or tobacco , tobacco products , 32 alternative nicotine products, vapor products, or cigarettes by 33 an individual under eighteen years of age does not constitute a 34 violation under this section if the individual under eighteen 35 -1- LSB 5228XC (7) 85 pf/rj 1/ 8

S.F. _____ years of age possesses the cigarettes or tobacco , tobacco 1 products , alternative nicotine products, vapor products, or 2 cigarettes as part of the individual’s employment and the 3 individual is employed by a person who holds a valid permit 4 under this chapter or who lawfully offers for sale or sells 5 cigarettes or tobacco , tobacco products , alternative nicotine 6 products, vapor products, or cigarettes . 7 8. a. A person shall not be guilty of a violation of 8 this section if conduct that would otherwise constitute a 9 violation is performed to assess compliance with cigarette and 10 tobacco , tobacco products , alternative nicotine products, vapor 11 products, or cigarette laws if any of the following applies: 12 (1) The compliance effort is conducted by or under the 13 supervision of law enforcement officers. 14 (2) The compliance effort is conducted with the advance 15 knowledge of law enforcement officers and reasonable measures 16 are adopted by those conducting the effort to ensure that 17 use of cigarettes or tobacco , tobacco products , alternative 18 nicotine products, vapor products, or cigarettes by individuals 19 under eighteen years of age does not result from participation 20 by any individual under eighteen years of age in the compliance 21 effort. 22 b. For the purposes of this subsection , “law enforcement 23 officer” means a peace officer as defined in section 801.4 and 24 includes persons designated under subsection 4 to enforce this 25 section . 26 Sec. 3. Section 453A.4, subsection 1, Code 2014, is amended 27 to read as follows: 28 1. If a person holding a permit under this chapter or an 29 employee of such a permittee has a reasonable belief based on 30 factual evidence that a driver’s license as defined in section 31 321.1, subsection 20A, or nonoperator’s identification card 32 issued pursuant to section 321.190 offered by a person who 33 wishes to purchase cigarettes or tobacco , tobacco products , 34 alternative nicotine products, vapor products, or cigarettes 35 -2- LSB 5228XC (7) 85 pf/rj 2/ 8

S.F. _____ is altered or falsified or belongs to another person, the 1 permittee or employee may retain the driver’s license or 2 nonoperator’s identification card. Within twenty-four hours, 3 the card shall be delivered to the appropriate city or county 4 law enforcement agency of the jurisdiction in which the 5 permittee’s premises are located, and the permittee shall file 6 a written report of the circumstances under which the card was 7 retained. The local law enforcement agency may investigate 8 whether a violation of section 321.216 , 321.216A , or 321.216C 9 has occurred. If an investigation is not initiated or probable 10 cause is not established by the local law enforcement agency, 11 the driver’s license or nonoperator’s identification card shall 12 be delivered to the person to whom it was issued. The local law 13 enforcement agency may forward the card with the report to the 14 state department of transportation for investigation, in which 15 case, the state department of transportation may investigate 16 whether a violation of section 321.216 , 321.216A , or 321.216C 17 has occurred. The state department of transportation shall 18 return the card to the person to whom it was issued if an 19 investigation is not initiated or probable cause is not 20 established. 21 Sec. 4. Section 453A.5, subsection 1, Code 2014, is amended 22 to read as follows: 23 1. The alcoholic beverages division of the department of 24 commerce shall develop a tobacco compliance employee training 25 program not to exceed two hours in length for employees and 26 prospective employees of retailers, as defined in sections 27 453A.1 and 453A.42 , to inform the employees about state and 28 federal laws and regulations regarding the sale of cigarettes 29 and tobacco , tobacco products , alternative nicotine products, 30 vapor products, and cigarettes to persons under eighteen 31 years of age and compliance with and the importance of laws 32 regarding the sale of cigarettes and tobacco , tobacco products , 33 alternative nicotine products, vapor products, and cigarettes 34 to persons under eighteen years of age. 35 -3- LSB 5228XC (7) 85 pf/rj 3/ 8

S.F. _____ Sec. 5. Section 453A.36, subsection 7, Code 2014, is amended 1 to read as follows: 2 7. a. It shall be unlawful for a person other than a holder 3 of a retailer as defined in section 453A.1 or 453A.42 who holds 4 a valid retail permit , as applicable, to sell tobacco, tobacco 5 products, alternative nicotine products, vapor products, or 6 cigarettes at retail. 7 b. No A state permit holder shall not sell or distribute 8 cigarettes at wholesale to any person in the state of Iowa 9 who does not hold a permit authorizing the retail sale 10 of cigarettes or who does not hold a state permit as a 11 manufacturer, distributing agent, wholesaler, or distributor. 12 Sec. 6. Section 453A.36A, subsection 1, Code 2014, is 13 amended to read as follows: 14 1. Beginning January 1, 1999, except Except as provided in 15 section 453A.36, subsection 6 , a retailer shall not sell or 16 offer for sale cigarettes or tobacco , tobacco products, in a 17 quantity of less than a carton, alternative nicotine products, 18 vapor products, or cigarettes through the use of a self-service 19 display. 20 Sec. 7. Section 453A.39, Code 2014, is amended to read as 21 follows: 22 453A.39 Tobacco product , tobacco products, alternative 23 nicotine products, vapor products, and cigarette samples —— 24 restrictions —— administration. 25 1. A manufacturer, distributor, wholesaler, retailer, 26 or distributing agent, or agent thereof, shall not give 27 away cigarettes or tobacco , tobacco products , alternative 28 nicotine products, vapor products, or cigarettes at any 29 time in connection with the manufacturer’s, distributor’s, 30 wholesaler’s, retailer’s, or distributing agent’s business or 31 for promotion of the business or product, except as provided in 32 subsection 2 . 33 2. a. All cigarette samples shall be shipped only to a 34 distributor that has a permit to stamp cigarettes or little 35 -4- LSB 5228XC (7) 85 pf/rj 4/ 8

S.F. _____ cigars with Iowa tax. All cigarette samples must have a 1 cigarette stamp. The manufacturer shipping samples under this 2 section shall send an affidavit to the director stating the 3 shipment information, including the date shipped, quantity, and 4 to whom the samples were shipped. The distributor receiving 5 the shipment shall send an affidavit to the director stating 6 the shipment information, including the date shipped, quantity, 7 and from whom the samples were shipped. These affidavits shall 8 be duly notarized and submitted to the director at the time of 9 shipment and receipt of the samples. The distributor shall 10 pay the tax on samples by separate remittance along with the 11 affidavit. 12 b. A manufacturer, distributor, wholesaler, retailer, or 13 distributing agent or agent thereof shall not give away any 14 cigarettes or tobacco , tobacco products , alternative nicotine 15 products, vapor products, or cigarettes to any person under 16 eighteen years of age, or within five hundred feet of any 17 playground, school, high school, or other facility when such 18 facility is being used primarily by persons under age eighteen 19 for recreational, educational, or other purposes. 20 c. Proof of age shall be required if a reasonable person 21 could conclude on the basis of outward appearance that a 22 prospective recipient of a sample may be under eighteen years 23 of age. 24 Sec. 8. Section 805.8C, subsection 3, Code 2014, is amended 25 to read as follows: 26 3. Smoking violations Violations related to smoking, tobacco, 27 tobacco products, alternative nicotine products, vapor products, 28 and cigarettes . 29 a. For violations described in section 142D.9, subsection 1 , 30 the scheduled fine is fifty dollars, and is a civil penalty, 31 and the criminal penalty surcharge under section 911.1 shall 32 not be added to the penalty, and the court costs pursuant 33 to section 805.9, subsection 6 , shall not be imposed. If 34 the civil penalty assessed for a violation described in 35 -5- LSB 5228XC (7) 85 pf/rj 5/ 8

S.F. _____ section 142D.9, subsection 1 , is not paid in a timely manner, 1 a citation shall be issued for the violation in the manner 2 provided in section 804.1 . However, a person under age 3 eighteen shall not be detained in a secure facility for failure 4 to pay the civil penalty. The complainant shall not be charged 5 a filing fee. 6 b. For violations of section 453A.2, subsection 1 , by an 7 employee of a retailer, the scheduled fine is as follows: 8 (1) If the violation is a first offense, the scheduled fine 9 is one hundred dollars. 10 (2) If the violation is a second offense, the scheduled fine 11 is two hundred fifty dollars. 12 (3) If the violation is a third or subsequent offense, the 13 scheduled fine is five hundred dollars. 14 c. For violations of section 453A.2, subsection 2 , the 15 scheduled fine is as follows and is a civil penalty, and the 16 criminal penalty surcharge under section 911.1 shall not be 17 added to the penalty, and the court costs pursuant to section 18 805.9, subsection 6 , shall not be imposed: 19 (1) If the violation is a first offense, the scheduled fine 20 is fifty dollars. 21 (2) If the violation is a second offense, the scheduled fine 22 is one hundred dollars. 23 (3) If the violation is a third or subsequent offense, the 24 scheduled fine is two hundred fifty dollars. 25 Sec. 9. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 26 immediate importance, takes effect upon enactment. 27 Sec. 10. CODE EDITOR DIRECTIVE. The Code editor shall 28 modify the title of chapter 453A to read “Cigarette and Tobacco 29 Taxes and Regulation of Alternative Nicotine Products and Vapor 30 Products”. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to the regulation of alternative nicotine 35 -6- LSB 5228XC (7) 85 pf/rj 6/ 8

S.F. _____ products and vapor products. The bill defines “alternative 1 nicotine products” and “vapor products” separately from 2 cigarettes and tobacco products under Code chapter 453A 3 (cigarette and tobacco taxes). 4 The bill includes alternative nicotine products and 5 vapor products under the prohibitions relating to persons 6 under legal age. Under the bill, a person shall not sell, 7 give, or otherwise supply any tobacco, tobacco products, 8 alternative nicotine products, vapor products, or cigarettes 9 to any person under 18 years of age; and a person under 18 10 years of age is prohibited from smoking, using, possessing, 11 purchasing, or attempting to purchase any tobacco, tobacco 12 products, alternative nicotine products, vapor products, 13 or cigarettes. However, possession of tobacco, tobacco 14 products, alternative nicotine products, vapor products, or 15 cigarettes by an individual under 18 years of age does not 16 constitute a violation if the individual under 18 possesses 17 the tobacco, tobacco products, alternative nicotine products, 18 vapor products, or cigarettes as part of the individual’s 19 employment and the individual is employed by a person who 20 holds a valid permit or who lawfully offers for sale or sells 21 tobacco, tobacco products, alternative nicotine products, 22 vapor products, or cigarettes. Additionally, a person is 23 not guilty of a violation if conduct that would otherwise 24 constitute a violation is performed to assess compliance with 25 tobacco, tobacco products, alternative nicotine products, vapor 26 products, or cigarette laws under specified conditions. 27 The bill amends provisions relating to the suspected use of 28 a falsified driver’s license or nonoperator’s identification 29 card to purchase cigarettes and tobacco products, to also apply 30 to the purchase of tobacco, alternative nicotine products and 31 vapor products; and amends provisions relating to the tobacco 32 compliance employee training program developed by the alcoholic 33 beverages division of the department of commerce to address, 34 in addition to cigarettes and tobacco products, tobacco, 35 -7- LSB 5228XC (7) 85 pf/rj 7/ 8

S.F. _____ alternative nicotine products, and vapor products. 1 The bill provides that it is unlawful for a person other 2 than a retailer of cigarettes or tobacco products who holds 3 a valid retail permit to sell tobacco, tobacco products, 4 alternative nicotine products, vapor products, or cigarettes 5 at retail. The bill makes applicable to tobacco, alternative 6 nicotine products, and vapor products, in addition to tobacco 7 products and cigarettes, the prohibition against a retailer 8 selling or offering for sale these products through the use of 9 a self-service display. The bill includes tobacco, alternative 10 nicotine products, and vapor products in the prohibition 11 against giving away samples of these products to any person 12 under 18 years of age, or within 500 hundred feet of any 13 playground, school, high school, or other facility when such 14 facility is being used primarily by persons under age 18 for 15 recreational, educational, or other purposes. 16 The bill amends the headnote of the scheduled violations 17 provision relating to smoking to include violations relating 18 to smoking, tobacco, tobacco products, alternative nicotine 19 products, vapor products, and cigarettes. 20 The bill directs the Code editor to modify the title 21 of Code chapter 453A to read “Cigarette and Tobacco Taxes 22 and Regulation of Alternative Nicotine Products and Vapor 23 Products”. 24 The bill takes effect upon enactment. 25 -8- LSB 5228XC (7) 85 pf/rj 8/ 8