S.F. _____ Section 1. Section 453A.13, subsection 3, paragraphs a and 1 b, Code 2015, are amended to read as follows: 2 a. All permits provided for in this division shall expire 3 on June 30 of each year. A permit shall not be granted or 4 issued until the applicant has paid for the period ending June 5 30 next, to the department or the city or county granting 6 the permit, the fees provided for in this division . The 7 annual state permit fee for a distributor, cigarette vendor, 8 and wholesaler is one five hundred dollars when the permit 9 is granted during the months of July, August, or September. 10 However, whenever a state permit holder operates more than 11 one place of business, a duplicate state permit shall be 12 issued for each additional place of business on payment of 13 five twenty-five dollars for each duplicate state permit, 14 but refunds as provided in this division do not apply to any 15 duplicate permit issued. 16 b. The fee for retail permits is as follows when the permit 17 is granted during the months of July, August, or September: 18 (1) In places outside any city, two hundred fifty dollars. 19 (2) In cities of less than fifteen thousand population, 20 three hundred seventy-five dollars. 21 (3) In cities of fifteen thousand or more population, one 22 five hundred dollars. 23 Sec. 2. Section 453A.15, subsection 4, Code 2015, is amended 24 to read as follows: 25 4. Every permit holder or other person shall, when requested 26 by the department, make additional reports as the department 27 deems necessary and proper and shall at the request of the 28 department furnish full and complete information pertaining to 29 any transaction of the permit holder or other person involving 30 the purchase or sale or use of cigarettes , alternative nicotine 31 products, or vapor products or purchase of cigarette stamps. 32 The director shall specifically prescribe the forms necessary 33 and require each retailer to provide on the forms prescribed 34 full and complete information pertaining to any cigarettes, 35 -1- LSB 1982XC (4) 86 pf/nh 1/ 5

S.F. _____ alternative nicotine products, or vapor products offered for 1 sale or sold by the retailer, including the type and brand of 2 the product. 3 Sec. 3. Section 453A.44, subsection 4, paragraph a, Code 4 2015, is amended to read as follows: 5 a. Each application for a distributor’s license shall be 6 accompanied by a fee of one five hundred dollars, except that 7 an applicant holding a permit pursuant to division I of this 8 chapter shall not be required to pay an additional fee. The 9 application shall be accompanied by a corporate surety bond 10 issued by a surety licensed to do business in this state, in 11 the sum of one thousand dollars, conditioned upon the true and 12 faithful compliance by the distributor with all the provisions 13 of this division and the payment when due of all taxes, 14 penalties and accrued interest arising in the ordinary course 15 of business or by reason of any delinquent money which may be 16 due the state of Iowa. This bond shall be in a form to be fixed 17 by the director and approved by the attorney general. Whenever 18 it is the opinion of the director that the bond given by a 19 licensee is inadequate in amount to fully protect the state, 20 the director shall require either an increase in the amount of 21 said bond or additional bond, in such amount as the director 22 deems sufficient. Any bond required by this division , or a 23 reissue thereof, or a substitute therefor, shall be kept in 24 full force and effect during the entire period covered by the 25 license. 26 Sec. 4. Section 453A.44, subsection 5, Code 2015, is amended 27 to read as follows: 28 5. Each application for a subjobber’s license shall be 29 accompanied by a fee of ten fifty dollars, except that no 30 applicant holding a permit pursuant to division I of this 31 chapter shall be required to pay an additional fee. 32 Sec. 5. Section 453A.47A, subsection 7, paragraph a, Code 33 2015, is amended to read as follows: 34 a. All permits provided for in this division shall expire 35 -2- LSB 1982XC (4) 86 pf/nh 2/ 5

S.F. _____ on June 30 of each year. A permit shall not be granted or 1 issued until the applicant has paid the fees provided for in 2 this section for the period ending June 30 next, to the city or 3 county granting the permit. The fee for retail permits is as 4 follows when the permit is granted during the month of July, 5 August, or September: 6 (1) In places outside any city, two hundred fifty dollars. 7 (2) In cities of less than fifteen thousand population, 8 three hundred seventy-five dollars. 9 (3) In cities of fifteen thousand or more population, one 10 five hundred dollars. 11 Sec. 6. Section 453A.47A, subsection 10, paragraph b, Code 12 2015, is amended to read as follows: 13 b. Every retailer shall, when requested by the department, 14 make additional reports as the department deems necessary and 15 proper and shall at the request of the department furnish 16 full and complete information pertaining to any transaction 17 of the retailer involving the purchase or sale or use of 18 tobacco, tobacco products, alternative nicotine products, or 19 vapor products. The director shall specifically prescribe the 20 forms necessary and require each retailer to provide on the 21 forms prescribed full and complete information pertaining to 22 any tobacco, tobacco products, alternative nicotine products, 23 or vapor products offered for sale or sold by the retailer, 24 including the type and brand of the product. 25 EXPLANATION 26 The inclusion of this explanation does not constitute agreement with 27 the explanation’s substance by the members of the general assembly. 28 This bill relates to the permit fees for distributors, 29 subjobbers, and retailers of tobacco products and to permit 30 fees for cigarette distributors, vendors, wholesalers, and 31 retailers. The bill also includes provisions relating to 32 reporting requirements of tobacco products and cigarettes. 33 CIGARETTES. Under current law, the fee for permits for 34 cigarette distributors, vendors, and wholesalers is $100, 35 -3- LSB 1982XC (4) 86 pf/nh 3/ 5

S.F. _____ annually, for permits issued in the first quarter of the state 1 fiscal year (July, August, or September). Under the bill, 2 this fee is increased to $500, annually. Under current law, a 3 cigarette distributor, vendor, or wholesaler is subject to a 4 payment of $5 for the issuance of a duplicate state permit for 5 any additional place of business. Under the bill, this fee is 6 increased to $25. 7 Under current law, the fee for permits for cigarette 8 retailers, annually, when issued in the first quarter of the 9 fiscal year is $50 for places outside any city, $75 for cities 10 of less than 15,000 population, and $100 for cities of 15,000 11 or more population. Under the bill, the permit fees are 12 increased to $250 for places outside any city, $375 for cities 13 of less than 15,000 population, and $500 for cities of 15,000 14 or more population. 15 For cigarette distributors, vendors, wholesalers, and 16 retailers, current law provides for reduced prorated fees to be 17 charged based on the quarter in which the permit is issued, and 18 also provides for the issuance of a prorated refund based on 19 the quarter in which the permit is surrendered if the permit 20 was issued to a permit holder who paid the full annual fee and 21 surrenders an unrevoked permit during the first nine months 22 of the state fiscal year, based upon the quarter in which the 23 permit is surrendered. The bill retains the provisions for 24 proration of the fees for issuance of the permits and for 25 prorated refunds on the same terms and at the same level as 26 current law. 27 TOBACCO PRODUCTS. Under current law, a distributor 28 of tobacco products is subject to a fee of $100 for a 29 distributor’s license, except that an applicant who holds 30 a permit under division I of Code chapter 453A (cigarettes 31 and alternative nicotine products and vapor products) is not 32 required to pay an additional fee. The bill increases the fee 33 to $500. 34 Under current law, a tobacco products subjobber is subject 35 -4- LSB 1982XC (4) 86 pf/nh 4/ 5

S.F. _____ to a license fee of $10, except that an applicant holding a 1 permit pursuant to division I of Code chapter 453A (cigarettes 2 and alternative nicotine products and vapor products) is not 3 required to pay an additional fee. The bill increases the fee 4 to $50. 5 Under current law, an annual permit for a tobacco products 6 retailer issued in the first quarter of the state fiscal year 7 is $50 in places outside any city, $75 in cities of less than 8 15,000, and $100 in cities of more than 15,000. Under the 9 bill, these amounts are increased to $250 in places outside any 10 city, $375 in cities of less than 15,000, and $500 in cities of 11 more than 15,000. 12 Under current law, tobacco products retailer permit fees 13 are reduced on a prorated basis based on the quarter of the 14 fiscal year in which they are granted and refunds are issued 15 on a prorated basis based upon the quarter of the fiscal 16 year in which they are surrendered. The bill retains the 17 provisions for the proration of the fees for the issuance of 18 tobacco products retailer permits and for prorated refunds on 19 the same terms and at the same levels as current law. If any 20 permit is granted during the month of October, November, or 21 December, the fee shall be three-fourths of the above maximum 22 schedule; if granted during the month of January, February, or 23 March, one-half of the maximum schedule; and if granted during 24 the month of April, May, or June, one-fourth of the maximum 25 schedule. 26 CIGARETTE AND TOBACCO PRODUCTS RETAILERS REPORTING. The 27 bill directs the director of revenue to specifically prescribe 28 the forms necessary and require each cigarette or tobacco 29 products retailer, as applicable, to provide on the prescribed 30 forms full and complete information pertaining to any 31 cigarettes, alternative nicotine products, vapor products, 32 tobacco, or tobacco products offered for sale or sold by the 33 retailer, including the type and brand of the product. 34 -5- LSB 1982XC (4) 86 pf/nh 5/ 5