Senate
File
417
-
Introduced
SENATE
FILE
417
BY
BOLKCOM
(COMPANION
TO
HF
329
BY
MASCHER)
A
BILL
FOR
An
Act
relating
to
alternative
nicotine
products
and
vapor
1
products,
and
providing
for
taxation
of
such
products.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
331.303,
subsection
3,
Code
2019,
is
1
amended
to
read
as
follows:
2
3.
Act
upon
applications
for
cigarette
tax
,
tobacco
3
product,
alternative
nicotine
product,
and
vapor
product
4
permits
in
accordance
with
chapter
453A
.
5
Sec.
2.
Section
331.653,
subsection
11,
Code
2019,
is
6
amended
to
read
as
follows:
7
11.
Carry
out
duties
relating
to
the
seizure
and
forfeiture
8
of
cigarettes,
tobacco
products,
alternative
nicotine
products,
9
and
vapor
products,
vehicles,
and
other
property
used
in
10
violation
of
cigarette
,
tobacco
product,
alternative
nicotine
11
product,
or
vapor
product
tax
laws
as
provided
in
section
12
453A.32
.
13
Sec.
3.
Section
331.756,
subsection
20,
Code
2019,
is
14
amended
to
read
as
follows:
15
20.
Assist,
at
the
request
of
the
director
of
revenue,
16
in
the
enforcement
of
cigar
and
cigarette,
tobacco
product,
17
alternative
nicotine
product,
and
vapor
product
tax
laws
as
18
provided
in
sections
453A.32
and
453A.49
.
19
Sec.
4.
Section
453A.15,
subsection
4,
Code
2019,
is
amended
20
to
read
as
follows:
21
4.
Every
permit
holder
or
other
person
shall,
when
requested
22
by
the
department,
make
additional
reports
as
the
department
23
deems
necessary
and
proper
and
shall
at
the
request
of
the
24
department
furnish
full
and
complete
information
pertaining
to
25
any
transaction
of
the
permit
holder
or
other
person
involving
26
the
purchase
or
sale
or
use
of
cigarettes
,
alternative
nicotine
27
products,
or
vapor
products,
or
purchase
of
cigarette
stamps.
28
The
director
shall
specifically
prescribe
the
forms
necessary
29
and
require
each
retailer
to
provide
on
the
forms
prescribed,
30
full
and
complete
information
pertaining
to
any
cigarettes,
31
alternative
nicotine
products,
or
vapor
products
offered
for
32
sale
or
sold
by
the
retailer,
including
the
type
and
brand
of
33
the
product.
34
Sec.
5.
Section
453A.24,
subsection
2,
Code
2019,
is
amended
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to
read
as
follows:
1
2.
The
director
may
require
by
rule
that
common
carriers
2
or
the
appropriate
persons
provide
monthly
reports
to
the
3
department
detailing
all
information
the
department
deems
4
necessary
on
shipments
into
and
out
of
Iowa
of
cigarettes
,
5
and
tobacco
products
,
alternative
nicotine
products,
or
vapor
6
products,
as
set
forth
in
this
subchapter
I
and
subchapter
II
7
of
this
chapter
.
The
director
may
require
by
rule
that
the
8
reports
be
filed
by
electronic
transmission.
9
Sec.
6.
Section
453A.32,
subsection
6,
Code
2019,
is
amended
10
to
read
as
follows:
11
6.
The
provisions
of
this
section
applying
to
cigarettes
12
shall
also
apply
to
tobacco
products
,
alternative
nicotine
13
products,
and
vapor
products
taxed
under
subchapter
II
of
this
14
chapter
.
15
Sec.
7.
Section
453A.33,
Code
2019,
is
amended
to
read
as
16
follows:
17
453A.33
Seizure
not
to
affect
criminal
prosecution.
18
The
seizure,
forfeiture,
and
sale
of
cigarettes,
tobacco
19
products,
alternative
nicotine
products,
vapor
products,
and
20
other
property
under
the
terms
and
conditions
hereinabove
set
21
out
pursuant
to
section
453A.32
,
shall
not
constitute
any
22
defense
to
the
person
owning
or
having
control
or
possession
of
23
the
property
from
criminal
prosecution
for
any
act
or
omission
24
made
or
offense
committed
under
this
chapter
or
from
liability
25
to
pay
penalties
provided
by
this
chapter
.
26
Sec.
8.
Section
453A.35,
subsection
1,
paragraph
b,
Code
27
2019,
is
amended
to
read
as
follows:
28
b.
The
revenues
generated
from
the
tax
on
cigarettes
29
pursuant
to
section
453A.6,
subsection
1
,
and
from
the
tax
on
30
tobacco
products
,
alternative
nicotine
products,
and
vapor
31
products
as
specified
in
section
453A.43,
subsections
1,
2,
3,
32
and
4
,
shall
be
credited
to
the
health
care
trust
fund
created
33
in
section
453A.35A
.
34
Sec.
9.
Section
453A.35A,
subsection
1,
Code
2019,
is
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amended
to
read
as
follows:
1
1.
A
health
care
trust
fund
is
created
in
the
office
of
2
the
treasurer
of
state.
The
fund
consists
of
the
revenues
3
generated
from
the
tax
on
cigarettes
pursuant
to
section
4
453A.6,
subsection
1
,
and
from
the
tax
on
tobacco
products
,
5
alternative
nicotine
products,
and
vapor
products
as
specified
6
in
section
453A.43,
subsections
1,
2,
3,
and
4
,
that
are
7
credited
to
the
health
care
trust
fund,
annually,
pursuant
to
8
section
453A.35
.
Moneys
in
the
fund
shall
be
separate
from
9
the
general
fund
of
the
state
and
shall
not
be
considered
10
part
of
the
general
fund
of
the
state.
However,
the
fund
11
shall
be
considered
a
special
account
for
the
purposes
of
12
section
8.53
relating
to
generally
accepted
accounting
13
principles.
Moneys
in
the
fund
shall
be
used
only
as
specified
14
in
this
section
and
shall
be
appropriated
only
for
the
uses
15
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
16
and
shall
not
be
transferred,
used,
obligated,
appropriated,
17
or
otherwise
encumbered,
except
as
provided
in
this
section
.
18
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
19
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
20
the
fund.
21
Sec.
10.
Section
453A.39,
subsection
1,
Code
2019,
is
22
amended
to
read
as
follows:
23
1.
A
manufacturer,
distributor,
wholesaler,
retailer,
or
24
distributing
agent,
or
an
agent
thereof
of
a
manufacturer,
25
distributor,
wholesaler,
retailer,
or
distributing
agent
,
shall
26
not
give
away
cigarettes
,
or
tobacco
products
,
alternative
27
nicotine
products,
or
vapor
products,
at
any
time
in
connection
28
with
the
manufacturer’s,
distributor’s,
wholesaler’s,
29
retailer’s,
or
distributing
agent’s
business
or
for
promotion
30
of
the
business
or
product,
except
as
provided
in
subsection
2
.
31
Sec.
11.
Section
453A.40,
subsection
1,
Code
2019,
is
32
amended
to
read
as
follows:
33
1.
All
persons
required
to
obtain
a
permit
or
to
be
licensed
34
under
section
453A.13
or
section
453A.44
having
in
their
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possession
and
held
for
resale
on
the
effective
date
of
an
1
increase
in
the
tax
rate
cigarettes,
little
cigars,
or
tobacco
2
products
,
alternative
nicotine
products,
or
vapor
products
upon
3
which
the
tax
under
section
453A.6
or
453A.43
has
been
paid,
4
unused
cigarette
tax
stamps
which
have
been
paid
for
under
5
section
453A.8
,
unused
metered
imprints
which
have
been
paid
6
for
under
section
453A.12
,
or
tobacco
products
,
alternative
7
nicotine
products,
or
vapor
products
for
which
the
tax
has
8
not
been
paid
under
section
453A.46
shall
be
subject
to
an
9
inventory
tax
on
the
items
as
provided
in
this
section
.
10
Sec.
12.
Section
453A.42,
Code
2019,
is
amended
to
read
as
11
follows:
12
453A.42
Definitions.
13
When
used
in
this
subchapter
,
unless
the
context
clearly
14
indicates
otherwise,
the
following
terms
shall
have
the
15
meanings,
respectively,
ascribed
to
them
in
this
section
:
16
1.
“Business”
means
any
trade,
occupation,
activity,
17
or
enterprise
engaged
in
for
the
purpose
of
selling
or
18
distributing
tobacco
products
,
alternative
nicotine
products,
19
or
vapor
products
in
this
state.
20
2.
“Consumer”
means
any
person
who
has
title
to
or
21
possession
of
tobacco
products
,
alternative
nicotine
products,
22
or
vapor
products
in
storage,
for
use
or
other
consumption
in
23
this
state.
24
3.
“Delivery
sale”
means
any
sale
of
an
alternative
nicotine
25
product
or
a
vapor
product
to
a
purchaser
in
this
state
where
26
the
purchaser
submits
the
order
for
such
sale
by
means
of
a
27
telephonic
or
other
method
of
voice
transmission,
mail
or
any
28
other
delivery
service,
or
the
internet
or
other
online
service
29
and
the
alternative
nicotine
product
or
vapor
product
is
30
delivered
by
use
of
mail
or
a
delivery
service.
The
sale
of
an
31
alternative
nicotine
product
or
vapor
product
shall
constitute
32
a
delivery
sale
regardless
of
whether
the
seller
is
located
33
in
this
state.
“Delivery
sale”
does
not
include
a
sale
to
a
34
distributor
or
retailer
of
any
alternative
nicotine
product
or
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vapor
product
not
for
personal
consumption.
1
4.
“Director”
means
the
director
of
the
department
of
2
revenue.
3
5.
“Distributor”
means
any
and
each
of
the
following:
4
a.
Any
person
engaged
in
the
business
of
selling
tobacco
5
products
,
alternative
nicotine
products,
or
vapor
products
6
in
this
state
who
brings,
or
causes
to
be
brought,
into
this
7
state
from
without
the
state
any
tobacco
products
,
alternative
8
nicotine
products,
or
vapor
products
for
sale
;
.
9
b.
Any
person
who
makes,
manufactures,
or
fabricates
tobacco
10
products
,
alternative
nicotine
products,
or
vapor
products
in
11
this
state
for
sale
in
this
state
;
.
12
c.
Any
person
engaged
in
the
business
of
selling
tobacco
13
products
,
alternative
nicotine
products,
or
vapor
products
14
without
this
state
who
ships
or
transports
tobacco
products
,
15
alternative
nicotine
products,
or
vapor
products
to
retailers
16
in
this
state,
to
be
sold
by
those
retailers.
17
6.
“Little
cigar”
means
any
roll
for
smoking
which
meets
all
18
of
the
following
conditions
:
19
a.
Is
made
wholly
or
in
part
of
tobacco,
irrespective
of
20
size
or
shape
and
irrespective
of
tobacco
being
flavored,
21
adulterated,
or
mixed
with
any
other
ingredient
;
.
22
b.
Is
not
a
cigarette
as
defined
in
section
453A.1,
23
subsection
4
;
and
.
24
c.
Either
weighs
not
more
than
three
pounds
per
thousand,
25
irrespective
of
retail
price,
or
weighs
more
than
three
pounds
26
per
thousand
and
has
a
retail
price
of
not
more
than
two
27
and
one-half
cents
per
little
cigar.
For
purposes
of
this
28
subsection
,
the
retail
price
is
the
ordinary
retail
price
in
29
this
state,
not
including
retail
sales
tax,
use
tax,
or
the
tax
30
on
little
cigars
imposed
by
section
453A.43
.
31
7.
“Manufacturer”
means
a
person
who
manufactures
and
sells
32
tobacco
products
,
alternative
nicotine
products,
or
vapor
33
products
.
34
8.
“Person”
means
any
individual,
firm,
association,
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partnership,
joint
stock
company,
joint
adventure
venture
,
1
corporation,
trustee,
agency,
or
receiver,
or
any
legal
2
representative
of
any
of
the
foregoing
individual,
firm,
3
association,
partnership,
joint
stock
company,
joint
venture,
4
corporation,
trustee,
agency,
or
receiver
.
5
9.
“Place
of
business”
means
any
place
where
tobacco
6
products
alternative
nicotine
products,
or
vapor
products
are
7
sold
or
where
tobacco
products
,
alternative
nicotine
products,
8
or
vapor
products
are
manufactured,
stored,
or
kept
for
the
9
purpose
of
sale
or
consumption,
including
any
vessel,
vehicle,
10
airplane,
train,
or
vending
machine;
or
for
a
business
within
11
or
without
the
state
that
conducts
delivery
sales,
any
place
12
where
alternative
nicotine
products
or
vapor
products
are
sold
13
or
where
alternative
nicotine
products
or
vapor
products
are
14
kept
for
the
purpose
of
sale,
including
delivery
sales.
15
10.
“Retail
outlet”
means
each
place
of
business
from
which
16
tobacco
products
,
alternative
nicotine
products,
or
vapor
17
products
are
sold
to
consumers.
18
11.
“Retailer”
means
any
person
engaged
in
the
business
19
of
selling
tobacco,
tobacco
products,
alternative
nicotine
20
products,
or
vapor
products
to
ultimate
consumers.
21
12.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
any
22
manner
or
by
any
means
whatsoever,
for
a
consideration,
and
23
includes
and
means
all
sales
made
by
any
person.
It
includes
24
a
gift
by
a
person
engaged
in
the
business
of
selling
tobacco
25
products,
alternative
nicotine
products,
or
vapor
products
26
for
advertising,
as
a
means
of
evading
the
provisions
of
this
27
subchapter
,
or
for
any
other
purposes
whatsoever
.
28
13.
“Snuff”
means
any
finely
cut,
ground,
or
powdered
29
tobacco
that
is
not
intended
to
be
smoked.
30
14.
“Storage”
means
any
keeping
or
retention
of
tobacco
31
products
,
alternative
nicotine
products,
or
vapor
products
for
32
use
or
consumption
in
this
state.
33
15.
“Subjobber”
means
any
person,
other
than
a
manufacturer
34
or
distributor,
who
buys
tobacco
products
,
alternative
nicotine
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products,
or
vapor
products
from
a
distributor
and
sells
them
1
to
persons
other
than
the
ultimate
consumers.
2
16.
“Tobacco
products”
means
cigars;
little
cigars
as
3
defined
herein;
cheroots;
stogies;
periques;
granulated,
plug
4
cut,
crimp
cut,
ready
rubbed,
and
other
smoking
tobacco;
5
snuff;
cavendish;
plug
and
twist
tobacco;
fine-cut
and
other
6
chewing
tobaccos;
shorts;
refuse
scraps,
clippings,
cuttings
7
and
sweepings
of
tobacco,
and
other
kinds
and
forms
of
tobacco,
8
prepared
in
such
manner
as
to
be
suitable
for
chewing
or
9
smoking
in
a
pipe
or
otherwise,
or
both
for
chewing
and
10
smoking;
but
shall
not
include
cigarettes
as
defined
in
section
11
453A.1,
subsection
4
.
12
17.
“Use”
means
the
exercise
of
any
right
or
power
13
incidental
to
the
ownership
of
tobacco
products
,
alternative
14
nicotine
products,
or
vapor
products
.
15
18.
“Wholesale
sales
price”
means
the
established
price
16
for
which
a
manufacturer
sells
a
tobacco
product
,
alternative
17
nicotine
product,
or
vapor
product
to
a
distributor,
exclusive
18
of
any
discount
or
other
reduction.
19
Sec.
13.
Section
453A.43,
Code
2019,
is
amended
to
read
as
20
follows:
21
453A.43
Tax
on
tobacco
products
,
alternative
nicotine
22
products,
and
vapor
products
.
23
1.
a.
A
tax
is
imposed
upon
all
tobacco
products
,
24
alternative
nicotine
products,
and
vapor
products
in
25
this
state
and
upon
any
person
engaged
in
business
as
a
26
distributor
of
tobacco
products,
at
the
rate
of
twenty-two
27
fifty
percent
of
the
wholesale
sales
price
of
the
tobacco
28
products,
except
little
cigars
and
snuff
as
defined
in
section
29
453A.42
alternative
nicotine
products,
or
vapor
products
.
30
Notwithstanding
the
rate
of
tax
imposed
under
this
paragraph
“a”
31
on
tobacco
products,
little
cigars
and
snuff
shall
be
subject
32
to
the
tax
as
specified
pursuant
to
paragraph
“c”
.
33
b.
In
addition
to
the
tax
imposed
under
paragraph
“a”
,
a
34
tax
is
imposed
upon
all
tobacco
products
in
this
state
and
upon
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any
person
engaged
in
business
as
a
distributor
of
tobacco
1
products,
at
the
rate
of
twenty-eight
percent
of
the
wholesale
2
sales
price
of
the
tobacco
products,
except
little
cigars
and
3
snuff
as
defined
in
section
453A.42
.
4
c.
b.
Notwithstanding
the
rate
of
tax
imposed
pursuant
5
to
paragraphs
paragraph
“a”
and
“b”
,
if
the
tobacco
product
6
is
a
cigar,
the
total
amount
of
the
tax
imposed
pursuant
to
7
paragraphs
paragraph
“a”
and
“b”
combined
shall
not
exceed
fifty
8
cents
per
cigar.
9
d.
c.
Little
cigars
shall
be
subject
to
the
same
rate
of
10
tax
imposed
upon
cigarettes
in
section
453A.6
,
payable
at
the
11
time
and
in
the
manner
provided
in
section
453A.6
;
and
stamps
12
shall
be
affixed
as
provided
in
subchapter
I
of
this
chapter
.
13
Snuff
shall
be
subject
to
the
tax
as
provided
in
subsections
3
14
and
4
.
15
e.
d.
The
taxes
on
tobacco
products,
excluding
little
16
cigars
and
snuff,
alternative
nicotine
products,
and
vapor
17
products,
as
specified
pursuant
to
paragraph
“a”
shall
be
18
imposed
at
the
time
the
distributor
does
any
of
the
following:
19
(1)
Brings,
or
causes
to
be
brought,
into
this
state
20
from
outside
the
state
tobacco
products
alternative
nicotine
21
products,
or
vapor
products
for
sale.
22
(2)
Makes,
manufactures,
or
fabricates
tobacco
products
23
alternative
nicotine
products,
or
vapor
products
in
this
state
24
for
sale
in
this
state.
25
(3)
Ships
or
transports
tobacco
products
alternative
26
nicotine
products,
or
vapor
products
to
retailers
in
this
27
state,
to
be
sold
by
those
retailers.
28
2.
a.
A
tax
is
imposed
upon
the
use
or
storage
by
consumers
29
of
tobacco
products
alternative
nicotine
products,
and
vapor
30
products
in
this
state,
and
upon
the
consumers,
at
the
rate
of
31
twenty-two
fifty
percent
of
the
cost
of
the
tobacco
products
32
alternative
nicotine
products,
or
vapor
products
.
33
b.
In
addition
to
the
tax
imposed
in
paragraph
“a”
,
a
tax
34
is
imposed
upon
the
use
or
storage
by
consumers
of
tobacco
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products
in
this
state,
and
upon
the
consumers,
at
a
rate
of
1
twenty-eight
percent
of
the
cost
of
the
tobacco
products.
2
c.
b.
Notwithstanding
the
rate
of
tax
imposed
pursuant
3
to
paragraphs
paragraph
“a”
and
“b”
,
if
the
tobacco
product
4
is
a
cigar,
the
total
amount
of
the
tax
imposed
pursuant
to
5
paragraphs
paragraph
“a”
and
“b”
combined
shall
not
exceed
fifty
6
cents
per
cigar.
7
d.
c.
The
taxes
imposed
by
this
subsection
shall
not
apply
8
if
the
taxes
imposed
by
subsection
1
on
the
tobacco
products
,
9
alternative
nicotine
products,
or
vapor
products
have
been
10
paid.
11
e.
d.
The
taxes
imposed
under
this
subsection
shall
not
12
apply
to
the
use
or
storage
of
tobacco
products
in
quantities
13
of:
14
(1)
Less
than
twenty-five
cigars.
15
(2)
Less
than
one
pound
smoking
or
chewing
tobacco
or
other
16
tobacco
products
not
specifically
mentioned
herein
in
this
17
chapter
,
in
the
possession
of
any
one
consumer.
18
3.
A
tax
is
imposed
upon
all
snuff
in
this
state
and
upon
19
any
person
engaged
in
business
as
a
distributor
of
snuff
at
20
the
rate
of
one
dollar
and
nineteen
cents
per
ounce,
with
a
21
proportionate
tax
at
the
same
rate
on
all
fractional
parts
of
22
an
ounce
of
snuff.
The
tax
shall
be
computed
based
on
the
net
23
weight
listed
by
the
manufacturer.
The
tax
on
snuff
shall
be
24
imposed
at
the
time
the
distributor
does
any
of
the
following:
25
a.
Brings
or
causes
to
be
brought
into
this
state
from
26
outside
the
state,
snuff
for
sale.
27
b.
Makes,
manufactures,
or
fabricates
snuff
in
this
state
28
for
sale
in
this
state.
29
c.
Ships
or
transports
snuff
to
retailers
in
this
state,
to
30
be
sold
by
those
retailers.
31
4.
a.
A
tax
is
imposed
upon
the
use
or
storage
by
consumers
32
of
snuff
in
this
state,
and
upon
the
consumers,
at
the
rate
of
33
one
dollar
and
nineteen
cents
per
ounce
with
a
proportionate
34
tax
at
the
same
rate
on
all
fractional
parts
of
an
ounce
of
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snuff.
The
tax
shall
be
computed
based
on
the
net
weight
as
1
listed
by
the
manufacturer.
2
b.
The
tax
imposed
by
this
subsection
shall
not
apply
if
the
3
tax
imposed
by
subsection
3
on
snuff
has
been
paid.
4
c.
The
tax
shall
not
apply
to
the
use
or
storage
of
snuff
in
5
quantities
of
less
than
ten
ounces.
6
5.
Any
tobacco
product
alternative
nicotine
product,
or
7
vapor
product
with
respect
to
which
a
tax
has
once
been
imposed
8
under
this
subchapter
shall
not
again
be
subject
to
tax
under
9
this
subchapter
,
except
as
provided
in
section
453A.40
.
10
6.
The
tax
imposed
by
this
section
shall
not
apply
with
11
respect
to
any
tobacco
product
which
under
the
Constitution
12
alternative
nicotine
product,
or
vapor
product
and
laws
of
the
13
United
States
may
not
be
made
the
subject
of
taxation
by
this
14
state.
15
7.
The
tax
imposed
by
this
section
shall
be
in
addition
to
16
all
other
occupation
or
privilege
taxes
or
license
fees
now
or
17
hereafter
imposed
by
any
city
or
county.
18
8.
All
excise
taxes
collected
under
this
chapter
by
a
19
distributor
or
any
individual
are
deemed
to
be
held
in
trust
20
for
the
state
of
Iowa.
21
Sec.
14.
Section
453A.44,
subsections
1,
3,
and
10,
Code
22
2019,
are
amended
to
read
as
follows:
23
1.
No
A
person
shall
not
engage
in
the
business
of
a
24
distributor
or
subjobber
of
tobacco
products
,
alternative
25
nicotine
products,
or
vapor
products
at
any
place
of
business
26
without
first
having
received
a
license
from
the
director
to
27
engage
in
that
business
at
that
place
of
business.
28
3.
A
person
without
this
state
who
ships
or
transports
29
tobacco
products
,
alternative
nicotine
products,
or
vapor
30
products
to
retailers
in
this
state,
to
be
sold
by
those
31
retailers,
may
make
application
for
a
license
as
a
distributor,
32
be
granted
a
license
by
the
director,
and
thereafter
be
subject
33
to
all
the
provisions
of
this
subchapter
and
entitled
to
act
as
34
a
licensed
distributor.
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10.
The
director
may
revoke,
cancel,
or
suspend
the
1
license
or
licenses
of
any
distributor
or
subjobber
for
2
violation
of
any
of
the
provisions
of
this
subchapter
,
or
3
any
other
act
applicable
to
the
sale
of
tobacco
products,
4
alternative
nicotine
products,
or
vapor
products,
or
any
rule
5
or
regulations
promulgated
by
the
director
in
furtherance
of
6
this
subchapter
.
No
license
shall
be
revoked,
canceled,
or
7
suspended
except
after
notice
and
a
hearing
by
the
director
as
8
provided
in
section
453A.48
.
9
Sec.
15.
Section
453A.45,
Code
2019,
is
amended
to
read
as
10
follows:
11
453A.45
Licensees,
duties.
12
1.
a.
Every
distributor
shall
keep
at
each
licensed
13
place
of
business
complete
and
accurate
records
for
that
14
place
of
business,
including
itemized
invoices,
of
tobacco
15
products
,
alternative
nicotine
products,
or
vapor
products
16
held,
purchased,
manufactured,
brought
in
or
caused
to
be
17
brought
in
from
without
the
state,
or
shipped
or
transported
to
18
retailers
in
this
state,
and
of
all
sales
of
tobacco
products
,
19
alternative
nicotine
products,
and
vapor
products
made,
except
20
sales
to
the
ultimate
consumer.
21
b.
When
a
licensed
distributor
sells
tobacco
products
,
22
alternative
nicotine
products,
or
vapor
products
exclusively
to
23
the
ultimate
consumer
at
the
address
given
in
the
license,
an
24
invoice
of
those
sales
is
not
required,
but
itemized
invoices
25
shall
be
made
of
all
tobacco
products
,
alternative
nicotine
26
products,
and
vapor
products
transferred
to
other
retail
27
outlets
owned
or
controlled
by
that
licensed
distributor.
All
28
books,
records,
and
other
papers
and
documents
required
by
29
this
subsection
to
be
kept
shall
be
preserved
for
a
period
30
of
at
least
three
years
after
the
date
of
the
documents
or
31
the
date
of
the
entries
appearing
in
the
records,
unless
the
32
director,
in
writing,
authorized
their
destruction
or
disposal
33
at
an
earlier
date.
At
any
time
during
usual
business
hours,
34
the
director,
or
the
director’s
duly
authorized
agents
or
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employees,
may
enter
any
place
of
business
of
a
distributor,
1
without
a
search
warrant,
and
inspect
the
premises,
the
records
2
required
to
be
kept
under
this
subsection
,
and
the
tobacco
3
products
,
alternative
nicotine
products,
and
vapor
products
4
contained
therein
at
the
place
of
business
,
to
determine
if
5
all
the
provisions
of
this
subchapter
are
being
fully
complied
6
with.
If
the
director,
or
any
such
agent
or
employee,
is
7
denied
free
access
or
is
hindered
or
interfered
with
in
8
making
the
examination,
the
license
of
the
distributor
at
that
9
premises
is
subject
to
revocation
by
the
director.
10
2.
Every
person
who
sells
tobacco
products
,
alternative
11
nicotine
products,
or
vapor
products
to
persons
other
than
the
12
ultimate
consumer
shall
render
with
each
sale
itemized
invoices
13
showing
the
seller’s
name
and
address,
the
purchaser’s
name
and
14
address,
the
date
of
sale,
and
all
prices
and
discounts.
The
15
person
shall
preserve
legible
copies
of
all
these
invoices
for
16
three
years
from
the
date
of
sale.
17
3.
Every
retailer
and
subjobber
shall
procure
itemized
18
invoices
of
all
tobacco
products
,
alternative
nicotine
19
products,
and
vapor
products
purchased.
The
invoices
shall
20
show
the
name
and
address
of
the
seller
and
the
date
of
21
purchase.
The
retailer
and
subjobber
shall
preserve
a
legible
22
copy
of
each
invoice
for
three
years
from
the
date
of
purchase.
23
Invoices
shall
be
available
for
inspection
by
the
director
or
24
the
director’s
authorized
agents
or
employees
at
the
retailer’s
25
or
subjobber’s
place
of
business.
26
4.
Records
of
all
deliveries
or
shipments
of
tobacco
27
products
,
alternative
nicotine
products,
or
vapor
products
from
28
any
public
warehouse
of
first
destination
in
this
state
which
29
is
subject
to
the
provisions
of
and
licensed
under
chapter
30
554
shall
be
kept
by
the
warehouse
and
be
available
to
the
31
director
for
inspection.
They
shall
show
the
name
and
address
32
of
the
consignee,
the
date,
the
quantity
of
tobacco
products
,
33
alternative
nicotine
products,
or
vapor
products
delivered,
34
and
such
other
information
as
the
commissioner
may
require.
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These
records
shall
be
preserved
for
three
years
from
the
date
1
of
delivery
of
the
tobacco
products
,
alternative
nicotine
2
products,
or
vapor
products
.
3
5.
a.
The
transportation
of
tobacco
products
,
alternative
4
nicotine
products,
or
vapor
products
into
this
state
by
means
5
other
than
common
carrier
must
be
reported
to
the
director
6
within
thirty
days
with
the
following
exceptions:
7
(1)
The
transportation
of
not
more
than
fifty
cigars,
not
8
more
than
ten
ounces
of
snuff
or
snuff
powder,
or
not
more
9
than
one
pound
of
smoking
or
chewing
tobacco
or
other
tobacco
10
products
not
specifically
mentioned
herein;
specified
under
11
this
subparagraph.
12
(2)
Transportation
by
a
person
with
a
place
of
business
13
outside
the
state,
who
is
licensed
as
a
distributor
under
14
section
453A.44
,
or
tobacco
products
,
alternative
nicotine
15
products,
or
vapor
products
sold
by
such
person
to
a
retailer
16
in
this
state.
17
b.
The
report
shall
be
made
on
forms
provided
by
the
18
director.
The
director
may
require
by
rule
that
the
report
be
19
filed
by
electronic
transmission.
20
c.
Common
carriers
transporting
tobacco
products
,
21
alternative
nicotine
products,
or
vapor
products
into
this
22
state
shall
file
with
the
director
reports
of
all
such
23
shipments
other
than
those
which
are
delivered
to
public
24
warehouses
of
first
destination
in
this
state
which
are
25
licensed
under
the
provisions
of
chapter
554
.
Such
reports
26
shall
be
filed
on
or
before
the
tenth
day
of
each
month
and
27
shall
show
with
respect
to
deliveries
made
in
the
preceding
28
month;
the
date,
point
of
origin,
point
of
delivery,
name
29
of
consignee,
description
and
quantity
of
tobacco
products
,
30
alternative
nicotine
products,
or
vapor
products
delivered,
and
31
such
information
as
the
director
may
otherwise
require.
32
d.
Any
person
who
fails
or
refuses
to
transmit
to
the
33
director
the
required
reports
or
whoever
refuses
to
permit
the
34
examination
of
the
records
by
the
director
shall
be
guilty
of
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a
serious
misdemeanor.
1
Sec.
16.
Section
453A.46,
subsection
1,
paragraph
a,
Code
2
2019,
is
amended
to
read
as
follows:
3
a.
On
or
before
the
twentieth
day
of
each
calendar
month
4
every
distributor
with
a
place
of
business
in
this
state
shall
5
file
a
return
with
the
director
showing
for
the
preceding
6
calendar
month
the
quantity
and
wholesale
sales
price
of
7
each
tobacco
product
,
alternative
nicotine
product,
or
vapor
8
product
brought,
or
caused
to
be
brought,
into
this
state
for
9
sale;
made,
manufactured,
or
fabricated
in
this
state
for
sale
10
in
this
state;
and
any
other
information
the
director
may
11
require.
Every
licensed
distributor
outside
this
state
shall
12
in
like
manner
file
a
return
with
the
director
showing
for
13
the
preceding
calendar
month
the
quantity
and
wholesale
sales
14
price
of
each
tobacco
product
,
alternative
nicotine
product,
15
or
vapor
product
shipped
or
transported
to
retailers
in
this
16
state
to
be
sold
by
those
retailers
and
any
other
information
17
the
director
may
require.
Returns
shall
be
made
upon
forms
18
furnished
or
made
available
in
electronic
form
and
prescribed
19
by
the
director
and
shall
contain
other
information
as
the
20
director
may
require.
Each
return
shall
be
accompanied
by
a
21
remittance
for
the
full
tax
liability
shown
on
the
return,
less
22
a
discount
as
fixed
by
the
director
not
to
exceed
five
percent
23
of
the
tax.
Within
three
years
after
the
return
is
filed
or
24
within
three
years
after
the
return
became
due,
whichever
is
25
later,
the
department
shall
examine
it,
determine
the
correct
26
amount
of
tax,
and
assess
the
tax
against
the
taxpayer
for
any
27
deficiency.
The
period
for
examination
and
determination
of
28
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
29
fraudulent
return
made
with
the
intent
to
evade
tax,
or
in
the
30
case
of
a
failure
to
file
a
return.
31
Sec.
17.
Section
453A.46,
subsection
6,
Code
2019,
is
32
amended
to
read
as
follows:
33
6.
On
or
before
the
twentieth
day
of
each
calendar
month,
34
every
consumer
who,
during
the
preceding
calendar
month,
35
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417
has
acquired
title
to
or
possession
of
tobacco
products
,
1
alternative
nicotine
products,
or
vapor
products
for
use
or
2
storage
in
this
state,
upon
which
tobacco
products
,
alternative
3
nicotine
products,
or
vapor
products
the
tax
imposed
by
4
section
453A.43
has
not
been
paid,
shall
file
a
return
with
the
5
director
showing
the
quantity
of
tobacco
products
,
alternative
6
nicotine
products,
or
vapor
products
so
acquired.
The
return
7
shall
be
made
upon
a
form
furnished
and
prescribed
by
the
8
director,
and
shall
contain
other
information
as
the
director
9
may
require.
The
return
shall
be
accompanied
by
a
remittance
10
for
the
full
unpaid
tax
liability
shown
by
it.
Within
three
11
years
after
the
return
is
filed
or
within
three
years
after
the
12
return
became
due,
whichever
is
later,
the
department
shall
13
examine
it,
determine
the
correct
amount
of
tax,
and
assess
the
14
tax
against
the
taxpayer
for
any
deficiency.
The
period
for
15
examination
and
determination
of
the
correct
amount
of
tax
is
16
unlimited
in
the
case
of
a
false
or
fraudulent
return
made
with
17
the
intent
to
evade
tax,
or
in
the
case
of
a
failure
to
file
a
18
return.
19
Sec.
18.
Section
453A.47,
Code
2019,
is
amended
to
read
as
20
follows:
21
453A.47
Refunds,
credits.
22
Where
tobacco
products
,
alternative
nicotine
products,
or
23
vapor
products
upon
which
the
tax
imposed
by
this
subchapter
24
has
been
reported
and
paid
are
shipped
or
transported
by
the
25
distributor
to
consumers
to
be
consumed
without
the
state
26
or
to
retailers
or
subjobbers
without
the
state
to
be
sold
27
by
those
retailers
or
subjobbers
without
the
state
or
are
28
returned
to
the
manufacturer
by
the
distributor
or
destroyed
29
by
the
distributor,
refund
of
such
tax
or
credit
may
be
made
30
to
the
distributor
in
accordance
with
regulations
prescribed
31
by
the
director.
Any
overpayment
of
the
tax
imposed
under
32
section
453A.43
may
be
made
to
the
taxpayer
in
accordance
with
33
regulations
prescribed
by
the
director.
The
director
shall
34
cause
any
such
refund
of
tax
to
be
paid
out
of
the
general
fund
35
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of
the
state,
and
so
much
of
said
fund
as
may
be
necessary
is
1
hereby
appropriated
for
that
purpose.
2
Sec.
19.
Section
453A.47A,
subsection
10,
paragraph
b,
Code
3
2019,
is
amended
to
read
as
follows:
4
b.
Every
retailer
shall,
when
requested
by
the
department,
5
make
additional
reports
as
the
department
deems
necessary
and
6
proper
and
shall
at
the
request
of
the
department
furnish
7
full
and
complete
information
pertaining
to
any
transaction
8
of
the
retailer
involving
the
purchase
or
sale
or
use
of
9
tobacco,
tobacco
products,
alternative
nicotine
products,
or
10
vapor
products.
The
director
shall
specifically
prescribe
the
11
forms
necessary
and
require
each
retailer
to
provide
on
the
12
forms
prescribed
full
and
complete
information
pertaining
to
13
any
tobacco,
tobacco
products,
alternative
nicotine
products,
14
or
vapor
products
offered
for
sale
or
sold
by
the
retailer,
15
including
the
type
and
brand
of
the
product.
16
Sec.
20.
Section
453A.48,
subsection
3,
Code
2019,
is
17
amended
to
read
as
follows:
18
3.
The
director
may
exchange
information
with
the
officers
19
and
agencies
of
other
states
administering
laws
relating
to
the
20
taxation
of
tobacco
products
,
alternative
nicotine
products,
21
and
vapor
products
.
22
Sec.
21.
Section
453A.51,
Code
2019,
is
amended
to
read
as
23
follows:
24
453A.51
Assessment
of
cost
of
audit.
25
The
department
may
employ
auditors
or
other
persons
to
26
audit
and
examine
the
books
and
records
of
a
permit
holder
27
or
other
person
dealing
in
tobacco
products
,
alternative
28
nicotine
products,
or
vapor
products
to
ascertain
whether
29
the
permit
holder
or
other
person
has
paid
the
amount
of
the
30
taxes
required
to
be
paid
by
the
permit
holder
or
other
person
31
under
the
provisions
of
this
chapter
.
If
the
taxes
have
not
32
been
paid,
as
required,
the
department
shall
assess
against
33
the
permit
holder
or
other
person,
as
additional
penalty,
the
34
reasonable
expenses
and
costs
of
the
investigation
and
audit.
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EXPLANATION
1
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
2
the
explanation’s
substance
by
the
members
of
the
general
assembly.
3
This
bill
relates
to
cigarettes,
tobacco
products,
4
alternative
nicotine
products,
and
vapor
products
under
Code
5
chapter
453A
(cigarette
and
tobacco
taxes
and
regulation
of
6
alternative
nicotine
products
and
vapor
products).
The
bill
7
imposes
a
tax
on
alternative
nicotine
products
and
vapor
8
products
equivalent
to
the
tax
on
tobacco
products.
9
The
bill
makes
conforming
provisions
throughout
the
Code
to
10
make
administration
and
collection
of
the
tax
on
alternative
11
nicotine
products
and
vapor
products
the
same
as
for
tobacco
12
products.
13
The
bill
provides
that
under
the
director
of
revenue’s
14
authorization
to
require
permit
holders
to
make
additional
15
reports,
the
director
shall
specifically
prescribe
the
forms
16
necessary
and
require
each
retailer
to
provide
on
the
forms
17
prescribed,
full
and
complete
information
pertaining
to
any
18
cigarettes,
alternative
nicotine
products,
or
vapor
products
19
offered
for
sale
or
sold
by
the
retailer,
including
the
type
20
and
brand
of
the
product.
21
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17