SSB 1195 (LSB 1982XC (4) 86)

SENATE FILE _____

BY  (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON BOLKCOM)

A BILL FOR

An Act relating to tobacco, tobacco products, alternative nicotine products, vapor products, and cigarettes, including reporting requirements and permit fees.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 453A.13, subsection 3, paragraphs a and b, Code 2015, are amended to read as follows:
   a.  All permits provided for in this division shall expire on June 30 of each year. A permit shall not be granted or issued until the applicant has paid for the period ending June 30 next, to the department or the city or county granting the permit, the fees provided for in this division. The annual state permit fee for a distributor, cigarette vendor, and wholesaler is one five hundred dollars when the permit is granted during the months of July, August, or September. However, whenever a state permit holder operates more than one place of business, a duplicate state permit shall be issued for each additional place of business on payment of five twenty-five dollars for each duplicate state permit, but refunds as provided in this division do not apply to any duplicate permit issued.
   b.  The fee for retail permits is as follows when the permit is granted during the months of July, August, or September:
   (1)  In places outside any city, two hundred fifty dollars.
   (2)  In cities of less than fifteen thousand population, three hundred seventy-five dollars.
   (3)  In cities of fifteen thousand or more population, one five hundred dollars.
    Sec. 2.  Section 453A.15, subsection 4, Code 2015, is amended to read as follows:
   4.  Every permit holder or other person 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 permit holder or other person involving the purchase or sale or use of cigarettes, alternative nicotine products, or vapor products or purchase of cigarette stamps.  The director shall specifically prescribe the forms necessary and require each retailer to provide on the forms prescribed full and complete information pertaining to any cigarettes, alternative nicotine products, or vapor products offered for sale or sold by the retailer, including the type and brand of the product.
    Sec. 3.  Section 453A.44, subsection 4, paragraph a, Code 2015, is amended to read as follows:
   a.  Each application for a distributor’s license shall be accompanied by a fee of one five hundred dollars, except that an applicant holding a permit pursuant to division I of this chapter shall not be required to pay an additional fee. The application shall be accompanied by a corporate surety bond issued by a surety licensed to do business in this state, in the sum of one thousand dollars, conditioned upon the true and faithful compliance by the distributor with all the provisions of this division and the payment when due of all taxes, penalties and accrued interest arising in the ordinary course of business or by reason of any delinquent money which may be due the state of Iowa. This bond shall be in a form to be fixed by the director and approved by the attorney general. Whenever it is the opinion of the director that the bond given by a licensee is inadequate in amount to fully protect the state, the director shall require either an increase in the amount of said bond or additional bond, in such amount as the director deems sufficient. Any bond required by this division, or a reissue thereof, or a substitute therefor, shall be kept in full force and effect during the entire period covered by the license.
    Sec. 4.  Section 453A.44, subsection 5, Code 2015, is amended to read as follows:
   5.  Each application for a subjobber’s license shall be accompanied by a fee of ten fifty dollars, except that no applicant holding a permit pursuant to division I of this chapter shall be required to pay an additional fee.
    Sec. 5.  Section 453A.47A, subsection 7, paragraph a, Code 2015, is amended to read as follows:
   a.  All permits provided for in this division shall expire on June 30 of each year. A 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 city or county granting the permit. The fee for retail permits is as follows when the permit is granted during the month of July, August, or September:
   (1)  In places outside any city, two hundred fifty dollars.
   (2)  In cities of less than fifteen thousand population, three hundred seventy-five dollars.
   (3)  In cities of fifteen thousand or more population, one five hundred dollars.
    Sec. 6.  Section 453A.47A, subsection 10, paragraph b, Code 2015, is amended to read as follows:
   b.  Every 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 retailer involving the purchase or sale or use of tobacco, tobacco products, alternative nicotine products, or vapor products.  The director shall specifically prescribe the forms necessary and require each retailer to provide on the forms prescribed full and complete information pertaining to any tobacco, tobacco products, alternative nicotine products, or vapor products offered for sale or sold by the retailer, including the type and brand of the product.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the permit fees for distributors, subjobbers, and retailers of tobacco products and to permit fees for cigarette distributors, vendors, wholesalers, and retailers. The bill also includes provisions relating to reporting requirements of tobacco products and cigarettes.
   CIGARETTES. Under current law, the fee for permits for cigarette distributors, vendors, and wholesalers is $100, annually, for permits issued in the first quarter of the state fiscal year (July, August, or September). Under the bill, this fee is increased to $500, annually. Under current law, a cigarette distributor, vendor, or wholesaler is subject to a payment of $5 for the issuance of a duplicate state permit for any additional place of business. Under the bill, this fee is increased to $25.
   Under current law, the fee for permits for cigarette retailers, annually, when issued in the first quarter of the fiscal year is $50 for places outside any city, $75 for cities of less than 15,000 population, and $100 for cities of 15,000 or more population. Under the bill, the permit fees are increased to $250 for places outside any city, $375 for cities of less than 15,000 population, and $500 for cities of 15,000 or more population.
   For cigarette distributors, vendors, wholesalers, and retailers, current law provides for reduced prorated fees to be charged based on the quarter in which the permit is issued, and also provides for the issuance of a prorated refund based on the quarter in which the permit is surrendered if the permit was issued to a permit holder who paid the full annual fee and surrenders an unrevoked permit during the first nine months of the state fiscal year, based upon the quarter in which the permit is surrendered. The bill retains the provisions for proration of the fees for issuance of the permits and for prorated refunds on the same terms and at the same level as current law.
   TOBACCO PRODUCTS. Under current law, a distributor of tobacco products is subject to a fee of $100 for a distributor’s license, except that an applicant who holds a permit under division I of Code chapter 453A (cigarettes and alternative nicotine products and vapor products) is not required to pay an additional fee. The bill increases the fee to $500.
   Under current law, a tobacco products subjobber is subject to a license fee of $10, except that an applicant holding a permit pursuant to division I of Code chapter 453A (cigarettes and alternative nicotine products and vapor products) is not required to pay an additional fee. The bill increases the fee to $50.
   Under current law, an annual permit for a tobacco products retailer issued in the first quarter of the state fiscal year is $50 in places outside any city, $75 in cities of less than 15,000, and $100 in cities of more than 15,000. Under the bill, these amounts are increased to $250 in places outside any city, $375 in cities of less than 15,000, and $500 in cities of more than 15,000.
   Under current law, tobacco products retailer permit fees are reduced on a prorated basis based on the quarter of the fiscal year in which they are granted and refunds are issued on a prorated basis based upon the quarter of the fiscal year in which they are surrendered. The bill retains the provisions for the proration of the fees for the issuance of tobacco products retailer permits and for prorated refunds on the same terms and at the same levels as current law. If any permit is granted during the month of October, November, or December, the fee shall be three-fourths of the above maximum schedule; if granted during the month of January, February, or March, one-half of the maximum schedule; and if granted during the month of April, May, or June, one-fourth of the maximum schedule.
   CIGARETTE AND TOBACCO PRODUCTS RETAILERS REPORTING. The

 bill directs the director of revenue to specifically prescribe the forms necessary and require each cigarette or tobacco products retailer, as applicable, to provide on the prescribed forms full and complete information pertaining to any cigarettes, alternative nicotine products, vapor products, tobacco, or tobacco products offered for sale or sold by the retailer, including the type and brand of the product.