House
Study
Bill
569
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
PUBLIC
SAFETY
BILL
BY
CHAIRPERSON
KLEIN)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
certain
substance-related
1
products,
and
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
NEW
SECTION
.
453E.1
Definitions.
1
As
used
in
this
chapter,
unless
the
context
otherwise
2
requires:
3
1.
“Business”
means
any
trade,
occupation,
activity,
4
or
enterprise
engaged
in
for
the
purpose
of
selling
or
5
distributing
tobacco
products
and
devices
in
this
state.
6
2.
“Consumer”
means
any
person
who
has
title
to
or
7
possession
of
devices
in
storage,
for
use
or
other
consumption
8
in
this
state.
9
3.
“Controlled
substance”
means
controlled
substance
as
10
defined
in
section
124.101.
11
4.
“Delivery
sale”
means
any
sale
of
a
device
to
a
purchaser
12
in
this
state
where
the
purchaser
submits
the
order
for
13
such
sale
by
means
of
a
telephonic
or
other
method
of
voice
14
transmission,
mail
or
any
other
delivery
service,
or
the
15
internet
or
other
online
service
and
the
device
is
delivered
by
16
use
of
mail
or
a
delivery
service.
The
sale
of
a
device
shall
17
constitute
a
delivery
sale
regardless
of
whether
the
seller
is
18
located
in
this
state.
“Delivery
sale”
does
not
include
a
sale
19
to
a
distributor
or
retailer
of
a
device
not
for
personal
use.
20
5.
“Department”
means
the
department
of
revenue.
21
6.
“Device”
means
an
item
that
is
a
glass
or
metal
pipe
22
designed
to
ingest
a
substance
through
combustion
that
would
23
otherwise
be
defined
as
drug
paraphernalia
pursuant
to
21
24
U.S.C.
§863(d)
but
is
exempt
under
21
U.S.C.
§863(f)(2)
because
25
the
item
is
intended
for
use
with
tobacco
products.
26
7.
“Device
retailer”
means
a
tobacco
retailer
who
is
also
27
engaged
in
selling
devices
to
the
ultimate
consumer.
28
8.
“Director”
means
the
director
of
revenue.
29
9.
“Place
of
business”
means
any
place
where
tobacco
30
products
and
devices
are
sold,
stored,
or
kept
for
the
purpose
31
of
sale
or
consumption;
or
for
a
business
within
or
without
the
32
state
that
conducts
delivery
sales,
any
place
where
tobacco
33
products
and
devices
are
sold
or
are
kept
for
the
purpose
of
34
sale,
including
delivery
sales.
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10.
“Retail
outlet”
means
each
place
of
business
from
which
1
tobacco
products
and
devices
are
sold
to
consumers.
2
11.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
3
any
manner
or
by
any
means
whatsoever,
for
consideration,
and
4
includes
and
means
all
sales
made
by
any
person.
5
12.
“Tobacco
products”
means
cigars;
little
cigars;
6
cheroots;
stogies;
periques;
granulated,
plug
cut,
crimp
cut,
7
ready
rubbed,
and
other
smoking
tobacco;
snuff;
cavendish;
8
plug
and
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
9
shorts;
refuse
scraps,
clippings,
cuttings
and
sweepings
of
10
tobacco,
and
other
kinds
and
forms
of
tobacco,
prepared
in
11
such
manner
as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
12
or
otherwise,
or
both
for
chewing
and
smoking;
but
shall
not
13
include
cigarettes
as
defined
in
section
453A.1.
14
13.
“Tobacco
retailer”
means
a
retailer
as
defined
in
15
section
453A.42.
16
14.
“Use”
means
the
exercise
of
any
right
or
power
17
incidental
to
the
ownership
of
tobacco
products
or
devices.
18
Sec.
2.
NEW
SECTION
.
453E.2
Administration
——
rules.
19
1.
The
director
shall
administer
this
chapter.
The
director
20
shall
collect,
supervise,
and
enforce
the
collection
of
all
21
fees,
taxes,
and
civil
penalties
imposed
under
this
chapter
and
22
deposit
them
in
the
specialty
courts
program
fund
created
in
23
section
453E.6.
24
2.
The
director
may
adopt
rules
pursuant
to
chapter
17A
that
25
are
necessary
to
enforce
this
chapter.
26
3.
The
director
may
designate
employees
to
administer
27
and
enforce
the
provisions
of
this
chapter,
including
the
28
collection
of
all
taxes
provided
for
in
this
chapter.
In
the
29
enforcement,
the
director
may
request
aid
from
the
attorney
30
general,
the
special
agents
of
the
state,
any
county
attorney,
31
or
any
peace
officer.
The
director
may
appoint
clerks
and
32
additional
help
as
may
be
needed
to
administer
this
chapter.
33
Sec.
3.
NEW
SECTION
.
453E.3
Device
retailers
——
permits
——
34
fees.
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1.
Permits
required.
A
person
shall
not
engage
in
the
1
business
of
a
device
retailer
at
any
place
of
business
or
2
through
delivery
sales,
unless
the
person
complies
with
all
of
3
the
following:
4
a.
The
person
has
received
and
holds
a
permit
as
a
tobacco
5
retailer
pursuant
to
section
453A.47A
that
has
not
been
6
suspended
or
revoked
and
is
not
expired;
complies
with
the
7
provisions
of
chapter
453A
applicable
to
a
tobacco
retailer;
8
and
sells
tobacco
products
in
addition
to
devices
at
the
retail
9
outlet
or
through
delivery
sales.
10
b.
The
person
has
received
and
holds
a
permit
as
a
device
11
retailer
pursuant
to
this
section
that
has
not
been
suspended
12
or
revoked
and
is
not
expired,
and
complies
with
the
provisions
13
of
this
chapter.
14
2.
No
sales
without
device
retailer
permit.
A
device
15
retailer
shall
not
sell
devices
until
an
application
has
been
16
filed
and
the
fee
prescribed
paid
for
a
permit
and
until
such
17
permit
is
obtained
and
only
while
such
permit
is
not
suspended,
18
revoked,
or
expired.
19
3.
Number
of
device
retailer
permits.
An
application
shall
20
be
filed
and
a
permit
obtained
for
each
place
of
business
owned
21
or
operated
by
a
device
retailer
located
in
the
state.
If
an
22
out-of-state
device
retailer
makes
delivery
sales
of
devices,
23
an
application
shall
be
filed
with
the
department
and
a
permit
24
shall
be
issued
for
the
out-of-state
retailer’s
principal
place
25
of
business.
26
4.
Issuance.
Cities
may
issue
device
retailer
permits
27
to
device
retailers
located
within
their
respective
limits.
28
County
boards
of
supervisors
may
issue
device
retailer
permits
29
to
device
retailers
located
in
their
respective
counties,
30
outside
of
the
corporate
limits
of
cities.
The
city
or
county
31
shall
submit
a
duplicate
of
any
application
for
a
device
32
retailer
permit
to
the
alcoholic
beverages
division
of
the
33
department
of
commerce
within
thirty
days
of
issuance
of
a
34
device
retailer
permit.
The
alcoholic
beverages
division
of
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the
department
of
commerce
shall
submit
the
current
list
of
1
all
device
retailer
permits
issued
to
the
department
of
public
2
health
by
the
last
day
of
each
quarter
of
a
state
fiscal
year.
3
5.
Fees
——
expiration.
All
device
retailer
permits
provided
4
for
in
this
section
shall
expire
on
June
30
of
each
year.
A
5
device
retailer
permit
shall
not
be
granted
or
issued
until
the
6
applicant
has
paid
the
fees
provided
for
in
this
section
for
7
the
period
ending
June
30
next,
to
the
city
or
county
granting
8
the
device
retailer
permit.
The
fee
for
a
device
retailer
9
permit
is
one
thousand
dollars.
10
6.
Application.
Device
retailer
permits
shall
be
issued
11
only
upon
application,
accompanied
by
the
one
thousand
dollar
12
fee,
made
upon
forms
furnished
by
the
department
upon
written
13
request.
The
failure
to
furnish
such
forms
shall
be
no
excuse
14
for
the
failure
to
file
the
form
unless
absolute
refusal
is
15
shown.
The
forms
shall
specify
all
of
the
following:
16
a.
The
manner
under
which
the
device
retailer
transacts
or
17
intends
to
transact
business
as
a
device
retailer.
18
b.
The
principal
office,
residence,
and
place
of
business,
19
to
which
the
device
retailer
permit
is
to
apply.
20
c.
If
the
applicant
is
not
an
individual,
the
principal
21
officers
or
members
of
the
applicant,
not
to
exceed
three,
and
22
their
addresses.
23
d.
Such
other
information
as
the
director
shall
by
rule
24
prescribe.
25
7.
Records
and
reports
of
device
retailers.
26
a.
The
director
shall
prescribe
the
forms
necessary
for
27
the
efficient
administration
of
this
section
and
may
require
28
uniform
books
and
records
to
be
used
and
kept
by
each
device
29
retailer
or
other
person
as
deemed
necessary.
30
b.
Every
device
retailer
shall,
when
requested
by
the
31
department,
make
additional
reports
as
the
department
deems
32
necessary
and
proper
and
shall
at
the
request
of
the
department
33
furnish
full
and
complete
information
pertaining
to
any
34
transaction
of
the
device
retailer
involving
the
purchase
or
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sale
of
devices,
including
the
number
of
devices
sold.
1
8.
Requirements
for
sale.
2
a.
A
device
retailer
shall
not
sell,
give,
or
otherwise
3
supply
a
device
to
any
person
under
eighteen
years
of
age
and
4
must
verify
the
age
of
all
purchasers
of
devices.
Valid
proof
5
of
the
purchaser’s
identity
and
age
shall
be
obtained
at
the
6
time
the
device
is
supplied
to
the
purchaser.
7
b.
A
device
retailer
shall
only
display
and
sell
devices
in
8
a
location
where
the
device
retailer
ensures
that
the
devices
9
are
not
visible
to
a
person
younger
than
eighteen
years
of
10
age
and
where
no
person
younger
than
eighteen
years
of
age
is
11
present
or
permitted
to
enter
at
any
time.
12
Sec.
4.
NEW
SECTION
.
453E.4
Delivery
sale
of
devices
——
13
permit
——
requirements.
14
1.
a.
A
person
shall
not
mail,
ship,
or
otherwise
cause
15
to
be
delivered
any
device
in
connection
with
a
delivery
sale
16
to
any
other
person
within
this
state
unless
the
person
has
17
applied
for
and
holds
a
device
delivery
sale
permit
as
provided
18
in
this
section.
19
b.
A
person
applying
for
a
device
delivery
sale
permit
shall
20
submit
an
application
for
the
permit
electronically,
or
in
a
21
manner
prescribed
by
the
director.
22
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
23
be
accompanied
by
a
permit
fee
in
the
amount
of
one
thousand
24
dollars.
25
d.
The
director
may
in
accordance
with
this
section
issue
a
26
device
delivery
sale
permit
which
shall
be
valid
for
one
year
27
from
the
date
of
issuance
unless
it
is
sooner
suspended
or
28
revoked
for
a
violation
of
this
section.
29
e.
A
permit
issued
pursuant
to
this
section
may
be
renewed
30
annually
by
submitting
a
renewal
application
in
a
manner
31
prescribed
by
the
director,
accompanied
by
the
one
thousand
32
dollar
permit
fee.
33
2.
The
delivery
sale
of
devices
pursuant
to
this
34
section
shall
be
subject
to
the
following
requirements
and
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restrictions:
1
a.
All
devices
delivered
by
delivery
sale
directly
to
a
2
resident
of
this
state
shall
be
delivered
only
by
a
device
3
delivery
sale
permit
holder.
4
b.
A
device
delivery
sale
permit
holder
shall
only
deliver
5
devices
by
delivery
sale
to
a
resident
of
this
state
who
is
at
6
least
eighteen
years
of
age
for
the
resident’s
personal
use
and
7
not
for
resale.
8
c.
All
devices
delivered
by
delivery
sale
directly
to
a
9
resident
of
this
state
shall
be
conspicuously
labeled
with
the
10
words
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
18
OR
OLDER
11
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
12
alternative
wording
preapproved
by
the
director.
13
d.
A
device
delivery
sale
permit
holder
shall
obtain
valid
14
proof
of
identity
and
age
prior
to
delivery,
and
shall
obtain
15
the
signature
of
an
adult
as
a
condition
of
delivery.
16
e.
A
device
delivery
sale
permit
holder
shall
maintain
17
records
of
devices
delivered
which
include
the
name
of
the
18
device
manufacturer,
quantity
of
devices
delivered,
recipient’s
19
name
and
address
and
verification
of
age
on
an
electronic
or
20
paper
form
of
signature
from
the
recipient
of
the
device,
and
21
sales
and
excise
taxes
paid.
Records
shall
be
submitted
to
22
the
director
on
a
monthly
basis
in
a
form
and
manner
to
be
23
determined
by
the
director.
Records
shall
be
maintained
for
at
24
least
five
years.
25
3.
A
device
delivery
sale
permit
holder
shall
remit
to
the
26
director
an
amount
equivalent
to
the
applicable
sales
tax
and
27
excise
tax
on
devices
subject
to
delivery
sale
at
the
rates
28
specified
in
section
423.2
and
section
453E.5,
as
applicable,
29
for
deposit
as
provided
in
section
453E.6.
The
amount
shall
30
be
remitted
at
the
time
and
in
the
manner
provided
in
section
31
453E.5.
32
4.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
33
have
consented
to
the
jurisdiction
of
the
director
or
any
other
34
agency
or
court
in
this
state
concerning
enforcement
of
this
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section
and
any
related
laws,
rules,
or
regulations.
A
device
1
delivery
sale
permit
holder
shall
allow
the
director
to
perform
2
an
audit
of
records
of
devices
upon
request.
3
Sec.
5.
NEW
SECTION
.
453E.5
Sales
and
use
tax
on
sales
and
4
delivery
sales
of
devices
——
examination
of
records
and
premises
5
——
subpoena
for
witnesses
and
papers.
6
1.
A
sale
or
delivery
sale
of
a
device
within
this
state
7
shall
be
subject
to
the
sales
tax
provided
in
chapter
423,
8
subchapter
II.
All
the
provisions
for
the
lien
of
the
tax,
its
9
collection,
and
all
actions
as
provided
in
the
uniform
sales
10
and
use
tax
administration
Act,
chapter
423,
shall
apply
to
the
11
tax
imposed
in
this
chapter.
12
2.
There
is
levied
and
imposed
an
excise
tax
on
a
device
13
purchased
for
use
in
this
state
through
a
sale
or
delivery
sale
14
in
this
state
as
follows:
15
a.
If
the
purchase
price
of
the
device
is
twenty
dollars
or
16
less,
an
excise
tax
of
ten
dollars.
17
b.
If
the
purchase
price
of
the
device
is
more
than
twenty
18
dollars,
an
excise
tax
of
twenty
dollars.
19
3.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
20
have
waived
all
claims
that
such
permit
holder
lacks
physical
21
presence
within
this
state
for
purposes
of
collecting
and
22
remitting
the
sales
and
excise
taxes.
23
4.
A
device
delivery
sale
permit
holder
making
taxable
24
delivery
sales
of
devices
within
this
state
and
a
device
25
retailer
shall
remit
to
the
department
all
sales
and
excise
26
taxes
due
on
such
sales
at
the
times
and
in
the
manner
as
27
established
by
rule
of
the
director.
28
5.
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
29
administer
this
section.
30
6.
Moneys
collected
under
this
section
shall
be
deposited
in
31
the
specialty
courts
program
fund
created
in
section
453E.6.
32
7.
a.
For
the
purpose
of
enabling
the
department
to
33
determine
the
tax
liability
of
device
delivery
sale
permit
34
holders,
device
retailers,
or
any
other
person
dealing
in
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devices
or
to
determine
whether
a
tax
liability
has
been
1
incurred,
the
department
shall
have
the
right
to
inspect
any
2
premises
of
the
device
delivery
sale
permit
holder,
device
3
retailer,
or
other
person
dealing
in
devices
located
within
4
or
without
the
state
of
Iowa
where
devices
are
manufactured,
5
produced,
made,
stored,
transported,
sold,
or
offered
for
sale
6
or
exchange,
and
to
examine
all
of
the
records
required
to
be
7
kept
or
any
other
records
that
may
be
kept
incident
to
the
8
conduct
of
the
business
of
said
device
delivery
sale
permit
9
holder,
retailer,
or
any
other
person
dealing
in
devices.
10
b.
The
department
shall
also
have
the
right
as
an
incident
11
to
determining
the
tax
liability,
or
whether
a
tax
liability
12
has
been
incurred,
to
examine
all
stocks
of
devices
and
to
13
remain
upon
the
premises
for
such
length
of
time
as
may
be
14
necessary
to
fully
determine
the
tax
liability,
or
whether
a
15
tax
liability
has
been
incurred.
16
c.
It
shall
be
unlawful
for
a
permit
holder
to
fail
to
17
produce
upon
demand
of
the
department
any
records
required
to
18
be
kept
or
to
hinder
or
prevent
in
any
manner
the
inspection
of
19
the
records
or
the
examination
of
the
premises.
20
d.
In
the
case
of
any
departmental
inspection
conducted
21
under
this
section
requiring
department
personnel
to
travel
22
outside
the
state
of
Iowa,
any
additional
costs
incurred
by
23
the
department
for
out-of-state
travel
expenses
shall
be
borne
24
by
the
device
delivery
sale
permit
holder,
retailer,
or
other
25
person
dealing
in
devices.
These
additional
costs
shall
be
26
those
costs
in
excess
of
the
costs
of
a
similar
inspection
27
conducted
at
the
geographical
point
located
within
the
state
28
of
Iowa
nearest
to
the
out-of-state
inspection
point.
In
29
lieu
of
conducting
an
on-premises
out-of-state
inspection,
30
the
department
shall
have
the
authority
to
direct
the
device
31
delivery
sale
permit
holder,
retailer,
or
other
person
dealing
32
in
devices
to
assemble
and
transport
all
records
described
33
in
this
subsection
to
the
nearest
practical
and
convenient
34
geographical
location
in
Iowa
for
inspection
by
the
department.
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Sec.
6.
NEW
SECTION
.
453E.6
Specialty
courts
program
fund.
1
1.
A
specialty
courts
program
fund
is
created
in
the
state
2
treasury
under
the
control
of
the
director
of
the
department
3
of
corrections.
Moneys
from
permit
fees,
with
the
exception
4
of
permit
fees
collected
by
cities
or
counties
in
the
issuance
5
of
permits,
penalties,
sales
and
use
taxes,
and
other
amounts
6
collected
under
this
chapter
shall
be
deposited
in
the
fund.
7
Permit
fees
collected
by
cities
or
counties
under
this
chapter
8
shall
be
paid
to
the
treasurer
of
the
city
where
the
permit
is
9
effective,
or
to
another
city
officer
as
designated
by
the
city
10
council,
and
credited
to
the
general
fund
of
the
city.
Permit
11
fees
collected
by
counties
under
this
chapter
shall
be
paid
to
12
the
county
treasurer
and
credited
to
the
general
fund
of
the
13
county.
14
2.
Moneys
in
the
fund
shall
be
used
only
as
provided
15
in
appropriations
from
the
fund
for
the
purpose
of
the
16
support
of
specialty
courts
to
address
underlying
substance
17
use
disorder-related
and
mental
health-related
issues
that
18
contribute
to
the
contact
of
individuals
with
the
justice
19
system.
20
3.
The
fund
shall
be
separate
from
the
general
fund
of
the
21
state
and
shall
not
be
considered
part
of
the
general
fund
of
22
the
state.
The
moneys
in
the
fund
shall
not
be
considered
23
revenue
of
the
state,
but
rather
shall
be
moneys
of
the
fund.
24
The
moneys
in
the
fund
are
not
subject
to
reversion
to
the
25
general
fund
of
the
state
under
section
8.33
and
shall
not
26
be
transferred,
used,
obligated,
appropriated,
or
otherwise
27
encumbered,
except
to
provide
for
the
purposes
of
this
section.
28
Notwithstanding
section
12C.7,
subsection
2,
interest
or
29
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
30
the
fund.
31
4.
The
treasurer
of
state
shall
provide
a
quarterly
32
report
of
fund
activities
and
balances
to
the
director
of
the
33
department
of
corrections.
34
Sec.
7.
NEW
SECTION
.
453E.7
Permits
——
suspension
——
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revocation
——
penalties.
1
1.
The
provisions
of
chapter
453A
including
the
permit
2
suspension
and
revocation
provisions
and
the
civil
penalties
3
established
in
section
453A.22
shall
apply
to
tobacco
retailers
4
who
are
also
device
retailer
permit
holders
or
device
delivery
5
sale
permit
holders
under
this
chapter.
The
provisions
of
6
chapter
453A
applicable
to
persons
other
than
tobacco
retailers
7
who
violate
chapter
453A
shall
also
apply
to
persons
who
8
violate
this
chapter.
9
2.
A
person
holding
a
device
retailer
permit
or
a
10
device
delivery
sale
permit
under
this
chapter
who
violates
11
this
chapter
by
marketing
or
selling
a
device
to
be
used
12
or
attempted
to
be
used
in
combination
with
a
controlled
13
substance
to
knowingly
or
intentionally
and
primarily
inject,
14
ingest,
inhale,
or
otherwise
introduce
into
the
human
body
a
15
controlled
substance,
resulting
in
the
device
constituting
drug
16
paraphernalia
pursuant
to
section
124.414,
commits
a
simple
17
misdemeanor
in
violation
of
section
124.414
and
is
also
subject
18
to
permit
revocation.
19
3.
a.
If
a
person
holding
a
device
retailer
permit
or
a
20
device
delivery
sale
permit
issued
by
the
department
under
this
21
chapter
has
willfully
violated
this
chapter,
the
department
22
shall
revoke
the
permit
upon
notice
and
hearing.
The
hearing
23
before
the
department
may
be
held
at
a
site
in
the
state
as
the
24
department
may
direct.
The
notice
shall
be
given
by
mailing
a
25
copy
to
the
permit
holder’s
place
of
business
as
it
appears
on
26
the
application
for
a
permit.
If,
upon
hearing,
the
department
27
finds
that
the
violation
has
occurred,
the
department
may
28
revoke
the
permit.
29
b.
If
a
device
retailer
permit
or
a
device
delivery
30
sale
permit
is
suspended
or
revoked
under
this
section,
the
31
suspension
or
revocation
shall
only
apply
to
the
place
of
32
business
at
which
the
violation
occurred
and
shall
not
apply
to
33
any
other
place
of
business
to
which
the
permit
applies
but
at
34
which
the
violation
did
not
occur.
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c.
The
department
or
local
authority
shall
report
the
1
suspension
or
revocation
of
a
device
retailer
permit
or
a
2
device
delivery
sale
permit
under
this
section
to
the
alcoholic
3
beverages
division
of
the
department
of
commerce
within
thirty
4
days
of
the
suspension
or
revocation
of
the
permit.
5
4.
In
addition
to
any
other
applicable
penalties,
a
device
6
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
7
who
violates
this
chapter
shall
be
subject
to
the
following:
8
a.
For
a
first
violation,
a
civil
penalty
of
five
hundred
9
dollars.
10
b.
For
a
second
violation,
a
civil
penalty
of
one
thousand
11
dollars.
12
c.
A
third
violation
constitutes
grounds
for
suspension
or
13
revocation
of
the
permit
under
this
chapter.
14
5.
A
person
other
than
a
device
retailer
permit
holder
or
a
15
device
delivery
sale
permit
holder
who
violates
this
chapter
16
shall
be
subject
to
the
following
penalties:
17
a.
For
a
first
violation,
a
civil
penalty
of
one
thousand
18
dollars.
19
b.
For
a
second
violation,
a
civil
penalty
of
two
thousand
20
dollars.
21
c.
For
a
third
or
subsequent
violation,
a
civil
penalty
of
22
five
thousand
dollars.
23
EXPLANATION
24
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
25
the
explanation’s
substance
by
the
members
of
the
general
assembly.
26
This
bill
relates
to
the
regulation
of
certain
27
substance-related
products.
28
The
bill
requires
a
person
who
engages
in
the
business
of
29
a
device
retailer
through
a
retail
outlet
or
delivery
sales
30
to
receive
and
hold
a
permit
as
a
tobacco
retailer,
comply
31
with
provisions
applicable
to
a
tobacco
retailer,
sell
tobacco
32
products
in
addition
to
devices
at
the
retail
outlet
or
through
33
delivery
sales,
and
hold
a
permit
as
a
device
retailer.
The
34
bill
provides
for
the
application
for
and
issuance
of
device
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retailer
permits
by
cities
and
counties
depending
upon
the
1
location
of
the
retailer;
requires
the
payment
of
a
$1,000
2
fee
for
each
permit;
and
provides
for
annual
expiration
of
3
the
permits.
The
bill
also
requires
device
retailer
permit
4
holders
to
keep
certain
records
and
submit
reports
to
the
5
department
of
revenue;
establishes
requirements
for
the
sale
of
6
devices
including
that
a
device
retailer
shall
not
sell,
give,
7
or
otherwise
supply
a
device
to
any
person
under
18
years
of
8
age
and
must
verify
the
age
of
all
purchasers
of
devices;
and
9
provides
that
a
device
retailer
shall
only
display
and
sell
10
devices
in
a
location
where
the
device
retailer
ensures
that
11
the
devices
are
not
visible
to
a
person
younger
than
18
years
12
of
age
and
where
no
person
younger
than
18
years
of
age
is
13
present
or
permitted
to
enter
at
any
time.
14
The
bill
establishes
requirements
for
the
delivery
sale
15
of
devices
including
permit
requirements
and
restrictions
16
including
all
devices
delivered
by
delivery
sale
directly
to
17
a
resident
of
this
state
shall
be
delivered
by
a
holder
of
18
a
device
delivery
sale
permit;
that
a
device
delivery
sale
19
permit
holder
shall
only
deliver
devices
by
delivery
sale
to
20
a
resident
of
this
state
who
is
at
least
18
years
of
age,
for
21
the
resident’s
personal
use
and
consumption
and
not
for
resale;
22
all
devices
delivered
by
delivery
sale
directly
to
a
resident
23
of
this
state
shall
be
conspicuously
labeled
with
the
words
24
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
18
OR
OLDER
REQUIRED
25
FOR
DELIVERY”
or
with
an
alternative
wording
preapproved
by
26
the
director
of
revenue;
a
device
delivery
sale
permit
holder
27
shall
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
28
and
shall
obtain
the
signature
of
an
adult
as
a
condition
of
29
delivery;
and
that
a
device
delivery
sale
permit
holder
shall
30
maintain
records
of
devices
delivered
which
include
certain
31
information
that
must
be
maintained
for
five
years.
32
The
bill
provides
for
the
imposition,
collection,
and
33
payment
of
sales
and
excise
taxes
on
the
retail
sale,
including
34
delivery
sales,
of
devices.
Moneys
collected,
with
the
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exception
of
city
and
county
permit
fees,
are
to
be
deposited
1
in
the
specialty
courts
program
fund
created
in
the
bill
to
2
be
used
for
the
purpose
of
the
support
of
specialty
courts
3
to
address
underlying
substance
use
disorder-related
and
4
mental
health-related
issues
that
contribute
to
the
contact
of
5
individuals
with
the
justice
system.
6
The
bill
provides
penalties
for
violations
of
the
bill.
7
The
applicable
provisions
of
Code
chapter
453A
(cigarette
and
8
tobacco
taxes
and
regulation
of
alternative
nicotine
products
9
and
vapor
products)
including
penalties
and
license
suspension
10
and
revocation
provisions
and
penalties
applicable
to
those
11
other
than
permit
holders
apply
to
tobacco
retailers
who
are
12
also
device
retailer
permit
holders
or
device
delivery
sale
13
permit
holders
as
well
as
to
those
who
are
not
permit
holders.
14
Additionally,
a
person
holding
a
device
retailer
permit
15
or
a
device
delivery
sale
permit
who
violates
the
bill
by
16
marketing
or
selling
a
device
to
be
used
or
attempted
to
be
17
used
in
combination
with
a
controlled
substance
to
knowingly
18
or
intentionally
and
primarily
inject,
ingest,
inhale,
or
19
otherwise
introduce
into
the
human
body
a
controlled
substance,
20
resulting
in
the
device
constituting
drug
paraphernalia,
21
commits
a
simple
misdemeanor
in
violation
of
Code
section
22
124.414
and
is
also
subject
to
permit
revocation.
23
If
a
person
holding
a
device
retailer
permit
or
a
device
24
delivery
sale
permit
willfully
violates
the
bill,
the
25
department
shall
revoke
the
permit
upon
notice
and
hearing.
26
In
addition
to
any
other
applicable
penalties,
a
device
27
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
28
who
violates
the
Code
chapter
is
subject
to
a
civil
penalty
29
of
$500
for
a
first
violation,
a
civil
penalty
of
$1,000
for
30
a
second
violation,
and
a
third
violation
constitutes
grounds
31
for
suspension
or
revocation
of
the
permit.
A
person
other
32
than
a
device
retailer
permit
holder
or
a
device
delivery
sale
33
permit
holder
who
violates
the
Code
chapter
is
subject
to
a
34
civil
penalty
of
$1,000
for
a
first
violation,
a
civil
penalty
35
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88
pf/jh
13/
14
H.F.
_____
of
$2,000
for
a
second
violation,
and
a
civil
penalty
of
$5,000
1
for
a
third
or
subsequent
violation.
2
-14-
LSB
5931YC
(2)
88
pf/jh
14/
14