House
File
21
-
Introduced
HOUSE
FILE
21
BY
A.
MEYER
A
BILL
FOR
An
Act
relating
to
nicotine
solution
products,
including
1
taxation
of
such
products,
making
appropriations,
and
making
2
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
142A.2,
subsection
8,
Code
2023,
is
1
amended
to
read
as
follows:
2
8.
“Manufacturer”
means
manufacturer
as
defined
in
section
3
sections
453A.1
and
453A.42
.
4
Sec.
2.
Section
142A.6,
subsection
6,
paragraph
d,
Code
5
2023,
is
amended
to
read
as
follows:
6
d.
For
the
purpose
of
this
subsection
,
manufacturer,
7
distributor,
wholesaler,
retailer,
and
distributing
agent
mean
8
as
defined
in
section
sections
453A.1
and
453A.42
.
9
Sec.
3.
Section
232C.4,
subsection
3,
Code
2023,
is
amended
10
to
read
as
follows:
11
3.
An
emancipated
minor
shall
remain
subject
to
voting
12
restrictions
under
chapter
48A
,
gambling
restrictions
under
13
chapter
99B
,
99D
,
99F
,
99G
,
or
725
,
internet
fantasy
sports
14
contest
restrictions
under
chapter
99E
,
alcohol
restrictions
15
under
chapter
123
,
compulsory
attendance
requirements
under
16
chapter
299
,
and
cigarette
,
tobacco
product,
alternative
17
nicotine
product,
vapor
product,
and
nicotine
solution
product
18
restrictions
under
chapter
453A
.
19
Sec.
4.
Section
321.216C,
Code
2023,
is
amended
to
read
as
20
follows:
21
321.216C
Use
of
driver’s
license
or
nonoperator’s
22
identification
card
by
underage
person
to
obtain
tobacco,
tobacco
23
products,
alternative
nicotine
products,
vapor
products,
nicotine
24
solution
products,
or
cigarettes.
25
A
person
who
is
under
the
age
of
twenty-one,
who
alters
26
or
displays
or
has
in
the
person’s
possession
a
fictitious
27
or
fraudulently
altered
driver’s
license
or
nonoperator’s
28
identification
card
and
who
uses
the
license
or
card
to
violate
29
or
attempt
to
violate
section
453A.2,
subsection
2
,
commits
a
30
simple
misdemeanor
punishable
as
a
scheduled
violation
under
31
section
805.8A,
subsection
4
.
The
court
shall
forward
a
copy
32
of
the
conviction
to
the
department.
33
Sec.
5.
Section
331.653,
subsection
11,
Code
2023,
is
34
amended
to
read
as
follows:
35
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11.
Carry
out
duties
relating
to
the
seizure
and
forfeiture
1
of
cigarettes,
tobacco
products,
nicotine
solution
products,
2
vehicles,
and
other
property
used
in
violation
of
cigarette
,
3
tobacco
products,
and
nicotine
solution
products
tax
laws
as
4
provided
in
section
453A.32
.
5
Sec.
6.
Section
331.756,
subsection
19,
Code
2023,
is
6
amended
to
read
as
follows:
7
19.
Assist,
at
the
request
of
the
director
of
revenue,
in
8
the
enforcement
of
cigar
and
cigarette,
tobacco
product,
and
9
nicotine
solution
product
tax
laws
as
provided
in
sections
10
453A.32
and
453A.49
.
11
Sec.
7.
Section
423.3,
subsection
57,
paragraph
h,
Code
12
2023,
is
amended
to
read
as
follows:
13
h.
“Tobacco”
means
cigarettes,
cigars,
chewing
or
pipe
14
tobacco,
or
any
other
item
that
contains
tobacco
products,
and
15
nicotine
solution
products
as
defined
in
sections
453A.1
and
16
453A.42
.
17
Sec.
8.
Section
453A.1,
Code
2023,
is
amended
to
read
as
18
follows:
19
453A.1
Definitions.
20
The
following
words,
terms,
and
phrases,
when
used
in
this
21
chapter
,
shall,
for
the
purpose
of
this
chapter
,
have
the
22
meanings
respectively
ascribed
to
them.
23
1.
“Alternative
nicotine
product”
means
a
product,
not
24
consisting
of
or
containing
tobacco,
that
provides
for
the
25
ingestion
into
the
body
of
nicotine,
whether
by
chewing,
26
absorbing,
dissolving,
inhaling,
snorting,
or
sniffing,
or
27
by
any
other
means.
“Alternative
nicotine
product”
does
not
28
include
cigarettes,
tobacco
products,
or
vapor
products,
or
a
29
product
that
is
regulated
as
a
drug
or
device
by
the
United
30
States
food
and
drug
administration
under
chapter
V
of
the
31
federal
Food,
Drug,
and
Cosmetic
Act.
32
2.
“Attorney
general”
shall
mean
means
the
attorney
33
general
of
the
state
or
the
attorney
general’s
duly
authorized
34
assistants
and
employees.
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3.
“Carton”
means
a
box
or
container
of
any
kind
in
which
1
ten
or
more
packages
or
packs
of
cigarettes
or
tobacco
products
2
are
offered
for
sale,
sold,
or
otherwise
distributed
to
3
consumers.
4
4.
“Cigarette”
means
any
roll
for
smoking
made
wholly
or
in
5
part
of
tobacco,
or
any
substitute
for
tobacco,
irrespective
of
6
size
or
shape
and
irrespective
of
tobacco
or
any
substitute
for
7
tobacco
being
flavored,
adulterated,
or
mixed
with
any
other
8
ingredient,
where
such
roll
has
a
wrapper
or
cover
made
of
9
paper
or
any
other
material.
However,
“cigarette”
shall
not
be
10
construed
to
does
not
include
cigars.
11
5.
“Cigarette
vending
machine”
means
any
self-service
device
12
offered
for
public
use
which,
upon
payment
or
insertion
of
13
loose
tobacco
product,
dispenses,
or
assembles
and
dispenses,
14
cigarettes
or
tobacco
products.
15
6.
“Cigarette
vendor”
means
any
person
who
by
contract,
16
agreement,
or
ownership
takes
responsibility
for
furnishing,
17
installing,
servicing,
operating,
or
maintaining
one
or
18
more
cigarette
vending
machines
for
the
purpose
of
selling
19
cigarettes
at
retail.
20
7.
5.
“Counterfeit
stamp”
shall
mean
means
any
stamp,
21
label,
print,
indicium,
or
character
which
evidences
,
or
22
purports
to
evidence
the
payment
of
any
tax
levied
by
this
23
chapter
,
and
which
stamp,
label,
print,
indicium,
or
character
24
has
not
been
printed,
manufactured
,
or
made
by
authority
of
25
the
director
as
hereinafter
provided
,
and
which
has
not
been
26
issued,
sold
,
or
circulated
by
the
department
or
a
bank
as
27
applicable
pursuant
to
section
453A.8
.
28
8.
6.
“Delivery
sale”
means
any
sale
of
an
alternative
29
nicotine
product
,
or
a
vapor
product
,
or
a
nicotine
solution
30
product
to
a
purchaser
in
this
state
where
the
purchaser
31
submits
the
order
for
such
sale
by
means
of
a
telephonic
or
32
other
method
of
voice
transmission,
mail
or
any
other
delivery
33
service,
or
the
internet
or
other
online
service
and
the
34
alternative
nicotine
product
,
or
vapor
product
,
or
a
nicotine
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solution
product
is
delivered
by
use
of
mail
or
a
delivery
1
service.
The
sale
of
an
alternative
nicotine
product
,
or
2
vapor
product
,
or
a
nicotine
solution
product
shall
constitute
3
a
delivery
sale
regardless
of
whether
the
seller
is
located
4
in
this
state.
“Delivery
sale”
does
not
include
a
sale
to
a
5
distributor
or
retailer
of
any
alternative
nicotine
product
,
or
6
vapor
product
,
or
a
nicotine
solution
product
not
for
personal
7
consumption.
8
9.
7.
“Department”
means
the
department
of
revenue.
9
10.
8.
“Director”
means
the
director
of
revenue
or
the
10
director’s
duly
authorized
assistants
and
employees.
11
11.
9.
“Distributing
agent”
shall
mean
and
include
12
means
every
person
in
this
state
who
acts
as
an
agent
of
13
any
manufacturer
outside
of
the
state
by
storing
cigarettes
14
received
in
interstate
commerce
from
such
manufacturer
subject
15
to
distribution
or
delivery
to
distributors
upon
orders
16
received
by
said
the
manufacturer
in
interstate
commerce
and
17
transmitted
to
such
the
distributing
agent
for
fulfillment
from
18
such
the
place
of
storage.
19
12.
10.
“Distributing
agent’s
permit”
shall
mean
and
20
include
means
permits
issued
by
the
department
to
distributing
21
agents.
22
13.
11.
“Distributor”
shall
mean
and
include
means
every
23
person
in
this
state
who
manufactures
or
produces
cigarettes
24
or
who
ships,
transports,
or
imports
into
this
state
or
in
any
25
manner
acquires
or
possesses
cigarettes
without
stamps
affixed
26
for
the
purpose
of
making
a
“first
sale”
of
the
same
cigarettes
27
within
the
state.
28
14.
“Drop
shipment”
shall
mean
and
include
any
delivery
29
of
cigarettes
received
by
any
person
within
this
state
when
30
payment
for
such
cigarettes
is
made
to
the
shipper
or
seller
by
31
or
through
a
person
other
than
the
consignee.
32
15.
12.
“First
sale”
shall
mean
and
include
means
the
first
33
sale
or
distribution
of
cigarettes
in
intrastate
commerce,
or
34
the
first
use
or
consumption
of
cigarettes
within
this
state.
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16.
13.
“Individual
packages
of
cigarettes”
shall
mean
1
and
include
means
every
package
of
cigarettes
or
quantity
of
2
cigarettes
assembled
and
ordinarily
sold
at
retail.
3
17.
14.
“Manufacturer”
shall
mean
and
include
means
every
4
person
who
ships
cigarettes
into
this
state
from
outside
the
5
state.
6
18.
15.
“Manufacturer’s
permit”
shall
mean
and
include
7
means
permits
issued
by
the
department
to
a
manufacturer.
8
16.
“Nicotine
solution
product”
means
any
cartridge,
bottle,
9
or
other
package
that
contains
nicotine,
including
nicotine
10
made
or
derived
from
tobacco
or
sources
other
than
tobacco,
11
in
a
solution
or
other
substance
that
is
consumed
or
meant
12
to
be
consumed
through
the
use
of
a
heating
element,
power
13
source,
electronic
circuit,
or
other
electronic,
chemical,
or
14
mechanical
means
that
produces
vapor
or
aerosol.
“Nicotine
15
solution
product”
includes
any
alternative
nicotine
product,
16
vapor
product,
or
other
product
that
contains
an
integrated,
17
nonrefillable
or
nonreusable
nicotine
solution
product
18
component.
19
19.
17.
“Package”
or
“pack”
means
a
container
of
any
kind
20
in
which
cigarettes
or
tobacco
products
are
offered
for
sale,
21
sold,
or
otherwise
distributed
to
consumers.
22
20.
18.
“Person”
shall
mean
and
include
means
every
23
individual,
firm,
association,
joint
stock
company,
syndicate,
24
partnership,
corporation,
trustee,
agency
or
receiver,
or
25
respective
legal
representative.
26
21.
19.
“Place
of
business”
is
construed
to
mean
and
27
include
means
any
place
where
cigarettes
are
sold
or
where
28
cigarettes
are
stored
within
or
without
the
state
of
Iowa
by
29
the
holder
of
an
Iowa
permit
or
kept
for
the
purpose
of
sale
30
or
consumption
;
or
if
.
“Place
of
business”
includes
a
vehicle
31
or
train
on
which
or
from
which
cigarettes
are
sold
from
any
32
vehicle
or
train,
the
vehicle
or
train
on
which
or
from
which
33
such
cigarettes
are
sold
shall
constitute
a
place
of
business;
34
or
and,
for
a
business
within
or
without
the
state
that
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conducts
delivery
sales,
any
place
where
alternative
nicotine
1
products
,
or
vapor
products
,
or
nicotine
solution
products
are
2
sold
or
where
alternative
nicotine
products
,
or
vapor
products
,
3
or
nicotine
solution
products
are
kept
for
the
purpose
of
sale
,
4
including
delivery
sales
.
5
22.
20.
“Previously
used
stamp”
shall
mean
and
include
6
means
any
stamp
which
is
used,
sold,
or
possessed
for
the
7
purpose
of
sale
or
use,
to
evidence
the
payment
of
the
tax
8
herein
imposed
on
an
individual
package
of
cigarettes
after
9
said
the
stamp
has
,
anterior
to
such
use,
sale,
or
possession,
10
been
used
on
a
previous
or
separate
individual
package
of
11
cigarettes
to
evidence
the
payment
of
the
tax
as
aforesaid
.
12
23.
21.
“Retailer”
shall
mean
and
include
means
every
13
person
in
this
state
who
shall
sell,
distribute,
or
offer
14
sells,
distributes,
or
offers
for
sale
for
consumption
or
15
possess
possesses
for
the
purpose
of
sale
for
consumption,
16
cigarettes,
alternative
nicotine
products,
or
vapor
products
,
17
or
nicotine
solution
products,
irrespective
of
quantity
or
18
amount
or
the
number
of
sales.
19
24.
22.
“Retail
permit”
shall
mean
and
include
means
20
permits
issued
to
retailers.
21
25.
23.
“Self-service
display”
means
any
manner
of
product
22
display,
placement,
or
storage
from
which
a
person
purchasing
23
the
product
may
take
possession
of
the
product,
prior
to
24
purchase,
without
assistance
from
the
retailer
or
employee
of
25
the
retailer
,
in
removing
the
product
from
a
restricted
access
26
location.
27
26.
24.
“Stamps”
“Stamp”
or
“stamps”
means
the
stamp
or
28
stamps
printed,
manufactured
,
or
made
by
authority
of
the
29
director
and
issued,
sold
,
or
circulated
by
the
department
or
a
30
bank
as
applicable
pursuant
to
section
453A.8
and
by
the
use
of
31
which
the
tax
levied
is
paid.
It
“Stamp”
or
“stamps”
also
means
32
any
impression,
indicium,
or
character
fixed
upon
packages
33
of
cigarettes
by
a
metered
stamping
machine
or
device
which
34
may
be
authorized
by
the
director
to
the
holder
of
state
or
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manufacturers’
permits
and
by
the
use
of
which
the
tax
levied
1
is
paid.
2
27.
25.
“State
permit”
shall
mean
and
include
means
permits
3
issued
by
the
department
to
distributors,
wholesalers,
and
4
retailers.
5
28.
26.
“Tobacco
products”
means
cigars;
little
cigars
as
6
defined
in
section
453A.42
,
subsection
6
;
cheroots;
stogies;
7
periques;
granulated
;
,
plug
cut,
crimp
cut,
ready
rubbed,
8
and
other
smoking
tobacco;
snuff
,
;
snuff
flour;
cavendish;
9
plug
and
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
10
shorts;
or
refuse
scraps,
clippings,
cuttings
,
and
sweepings
11
of
tobacco
,
;
and
other
kinds
and
forms
of
tobacco,
prepared
in
12
such
manner
as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
13
or
otherwise,
or
both
for
chewing
and
smoking;
but
does
not
14
mean
cigarettes.
15
29.
27.
“Vapor
product”
means
any
noncombustible
product,
16
which
may
or
may
not
contain
nicotine,
that
employs
a
heating
17
element,
power
source,
electronic
circuit,
or
other
electronic,
18
chemical,
or
mechanical
means,
regardless
of
shape
or
size,
19
that
can
be
used
to
produce
vapor
from
a
solution
or
other
20
substance.
“Vapor
product”
includes
an
electronic
cigarette,
21
electronic
cigar,
electronic
cigarillo,
electronic
pipe,
or
22
similar
product
or
device,
and
any
cartridge
or
other
container
23
of
a
solution
or
other
substance,
which
may
or
may
not
contain
24
nicotine,
that
is
intended
to
be
used
with
or
in
an
electronic
25
cigarette,
electronic
cigar,
electronic
cigarillo,
electronic
26
pipe,
or
similar
product
or
device.
“Vapor
product”
does
not
27
include
a
product
regulated
as
a
drug
or
device
by
the
United
28
States
food
and
drug
administration
under
chapter
V
of
the
29
federal
Food,
Drug,
and
Cosmetic
Act.
30
28.
“Vending
machine”
means
any
self-service
device
31
offered
for
public
use
which,
upon
payment
or
the
insertion
of
32
loose
tobacco
product,
dispenses
or
assembles
and
dispenses
33
cigarettes,
tobacco
products,
alternative
nicotine
products,
34
vapor
products,
or
nicotine
solution
products.
35
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29.
“Vendor”
means
any
person
who
by
contract,
agreement,
1
or
ownership
takes
responsibility
for
furnishing,
installing,
2
servicing,
operating,
or
maintaining
one
or
more
vending
3
machines
for
the
purpose
of
selling
cigarettes,
tobacco
4
products,
alternative
nicotine
products,
vapor
products,
or
5
nicotine
solution
products
at
retail.
6
30.
“Wholesaler”
shall
mean
and
include
means
every
person
7
other
than
a
distributor
or
distributing
agent
who
engages
in
8
the
business
of
selling
or
distributing
cigarettes
within
the
9
state,
for
the
purpose
of
resale.
10
Sec.
9.
Section
453A.2,
subsections
1,
2,
3,
and
8,
Code
11
2023,
are
amended
to
read
as
follows:
12
1.
A
person
shall
not
sell,
give,
or
otherwise
supply
any
13
tobacco,
tobacco
products,
alternative
nicotine
products,
vapor
14
products,
nicotine
solution
products,
or
cigarettes
to
any
15
person
under
twenty-one
years
of
age.
16
2.
A
person
under
twenty-one
years
of
age
shall
not
17
smoke,
use,
possess,
purchase,
or
attempt
to
purchase
any
18
tobacco,
tobacco
products,
alternative
nicotine
products,
vapor
19
products,
nicotine
solution
products,
or
cigarettes.
20
3.
Possession
of
tobacco,
tobacco
products,
alternative
21
nicotine
products,
vapor
products,
nicotine
solution
products,
22
or
cigarettes
by
an
individual
under
twenty-one
years
of
23
age
does
not
constitute
a
violation
under
this
section
if
24
the
individual
under
twenty-one
years
of
age
possesses
the
25
tobacco,
tobacco
products,
alternative
nicotine
products,
vapor
26
products,
nicotine
solution
products,
or
cigarettes
as
part
27
of
the
individual’s
employment
and
the
individual
is
employed
28
by
a
person
who
holds
a
valid
permit
under
this
chapter
or
29
who
lawfully
offers
for
sale
or
sells
cigarettes
,
or
tobacco
30
products
,
alternative
nicotine
products,
vapor
products,
or
31
nicotine
solution
products
.
32
8.
a.
A
person
shall
not
be
guilty
of
a
violation
of
this
33
section
if
conduct
that
would
otherwise
constitute
a
violation
34
is
performed
to
assess
compliance
with
tobacco,
tobacco
35
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products,
alternative
nicotine
products,
vapor
products,
1
nicotine
solution
products,
or
cigarette
laws
if
any
of
the
2
following
applies:
3
(1)
The
compliance
effort
is
conducted
by
or
under
the
4
supervision
of
law
enforcement
officers.
5
(2)
The
compliance
effort
is
conducted
with
the
advance
6
knowledge
of
law
enforcement
officers
and
reasonable
measures
7
are
adopted
by
those
conducting
the
effort
to
ensure
that
use
8
of
tobacco,
tobacco
products,
alternative
nicotine
products,
9
vapor
products,
nicotine
solution
products,
or
cigarettes
by
10
individuals
under
twenty-one
years
of
age
does
not
result
from
11
participation
by
any
individual
under
twenty-one
years
of
age
12
in
the
compliance
effort.
13
b.
For
the
purposes
of
this
subsection
,
“law
enforcement
14
officer”
means
a
peace
officer
as
defined
in
section
801.4
and
15
includes
persons
designated
under
subsection
4
to
enforce
this
16
section
.
17
Sec.
10.
Section
453A.4,
subsection
1,
Code
2023,
is
amended
18
to
read
as
follows:
19
1.
If
a
person
holding
a
permit
under
this
chapter
or
an
20
employee
of
such
a
permittee
has
a
reasonable
belief
based
on
21
factual
evidence
that
a
driver’s
license
as
defined
in
section
22
321.1,
subsection
20A,
or
nonoperator’s
identification
card
23
issued
pursuant
to
section
321.190
offered
by
a
person
who
24
wishes
to
purchase
tobacco,
tobacco
products,
alternative
25
nicotine
products,
vapor
products,
nicotine
solution
26
products,
or
cigarettes
is
altered
or
falsified
or
belongs
27
to
another
person,
the
permittee
or
employee
may
retain
28
the
driver’s
license
or
nonoperator’s
identification
card.
29
Within
twenty-four
hours,
the
card
shall
be
delivered
to
the
30
appropriate
city
or
county
law
enforcement
agency
of
the
31
jurisdiction
in
which
the
permittee’s
premises
are
located,
and
32
the
permittee
shall
file
a
written
report
of
the
circumstances
33
under
which
the
card
was
retained.
The
local
law
enforcement
34
agency
may
investigate
whether
a
violation
of
section
321.216
,
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321.216A
,
or
321.216C
has
occurred.
If
an
investigation
is
not
1
initiated
or
probable
cause
is
not
established
by
the
local
2
law
enforcement
agency,
the
driver’s
license
or
nonoperator’s
3
identification
card
shall
be
delivered
to
the
person
to
whom
it
4
was
issued.
The
local
law
enforcement
agency
may
forward
the
5
card
with
the
report
to
the
state
department
of
transportation
6
for
investigation,
in
which
case,
the
state
department
7
of
transportation
may
investigate
whether
a
violation
of
8
section
321.216
,
321.216A
,
or
321.216C
has
occurred.
The
9
state
department
of
transportation
shall
return
the
card
to
10
the
person
to
whom
it
was
issued
if
an
investigation
is
not
11
initiated
or
probable
cause
is
not
established.
12
Sec.
11.
Section
453A.5,
subsection
1,
Code
2023,
is
amended
13
to
read
as
follows:
14
1.
The
alcoholic
beverages
division
of
the
department
of
15
commerce
shall
develop
a
tobacco
compliance
employee
training
16
program
not
to
exceed
two
hours
in
length
for
employees
and
17
prospective
employees
of
retailers,
as
defined
in
sections
18
453A.1
and
453A.42
,
to
inform
the
employees
about
state
and
19
federal
laws
and
regulations
regarding
the
sale
of
tobacco,
20
tobacco
products,
alternative
nicotine
products,
vapor
21
products,
nicotine
solution
products,
and
cigarettes
to
persons
22
under
twenty-one
years
of
age
and
compliance
with
and
the
23
importance
of
laws
regarding
the
sale
of
tobacco,
tobacco
24
products,
alternative
nicotine
products,
vapor
products,
25
nicotine
solution
products,
and
cigarettes
to
persons
under
26
twenty-one
years
of
age.
27
Sec.
12.
Section
453A.6,
subsections
2
and
3,
Code
2023,
are
28
amended
to
read
as
follows:
29
2.
The
said
tax
shall
be
paid
only
once
by
the
person
30
making
the
“first
sale”
in
this
state,
and
shall
become
due
31
and
payable
as
soon
as
such
cigarettes
are
subject
to
a
“first
32
sale”
in
Iowa,
it
being
intended
to
impose
the
tax
as
soon
as
33
such
cigarettes
are
received
by
any
person
in
Iowa
for
the
34
purpose
of
making
a
“first
sale”
of
same
the
cigarettes
.
If
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the
person
making
the
“first
sale”
did
not
pay
such
tax,
it
1
the
tax
shall
be
paid
by
any
person
into
whose
possession
such
2
cigarettes
come
until
said
the
tax
has
been
paid
in
full.
3
No
A
person,
however,
shall
not
be
required
to
pay
a
tax
on
4
cigarettes
brought
into
this
state
on
or
about
the
person
in
5
quantities
of
forty
cigarettes
or
less,
when
such
cigarettes
6
have
had
the
individual
packages
or
seals
thereof
of
the
7
packages
in
which
the
cigarettes
were
contained
broken
and
when
8
such
cigarettes
are
actually
used
by
said
the
person
and
not
9
sold
or
offered
for
sale.
10
3.
Payment
of
the
tax
shall
be
evidenced
by
stamps
purchased
11
from
the
department
or
a
bank
authorized
to
sell
stamps
12
pursuant
to
section
453A.8
by
a
distributor
or
manufacturer
13
and
securely
affixed
to
each
individual
package
of
cigarettes
14
in
amounts
equal
to
the
tax
as
imposed
by
this
chapter
,
or
15
by
the
impressing
of
an
indicium
upon
individual
packages
of
16
cigarettes,
under
regulations
prescribed
by
the
director.
17
Sec.
13.
Section
453A.6,
subsection
8,
unnumbered
paragraph
18
1,
Code
2023,
is
amended
to
read
as
follows:
19
Any
permit
holder
owning,
renting,
leasing,
or
otherwise
20
operating
a
cigarette
vending
machine
into
which
loose
tobacco
21
products
are
inserted
and
from
which
assembled
cigarettes
are
22
dispensed
shall
do
all
the
following:
23
Sec.
14.
Section
453A.7,
subsection
1,
Code
2023,
is
amended
24
to
read
as
follows:
25
1.
The
director
of
the
department
of
administrative
26
services
shall
have
printed
or
manufactured
,
cigarette
and
27
little
cigar
tax
stamps
of
such
design,
size,
denomination,
28
and
type
and
in
such
quantities
as
may
be
determined
by
the
29
director
of
revenue.
The
stamps
shall
be
so
manufactured
as
30
to
render
them
the
stamps
easy
to
be
securely
attached
to
each
31
individual
package
of
cigarettes
and
little
cigars
or
cigarette
32
papers
.
The
cigarette
and
little
cigar
tax
stamps
shall
be
33
in
the
possession
of
and
under
the
control
of
the
director
of
34
revenue
and
the
director
shall
keep
accurate
records
of
all
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cigarette
and
little
cigar
tax
stamps.
1
Sec.
15.
Section
453A.8,
subsections
2
and
3,
Code
2023,
are
2
amended
to
read
as
follows:
3
2.
Orders
for
cigarette
tax
stamps,
including
the
payment
4
for
such
stamps,
shall
be
sent
direct
to
the
department
on
a
5
form
to
be
prescribed
by
the
director,
except
as
provided
in
6
subsection
6
.
7
3.
a.
The
department
may
make
issue
refunds
on
unused
8
stamps
to
the
person
who
purchased
the
stamps
at
a
price
equal
9
to
the
amount
paid
for
the
stamps
when
proof
satisfactory
to
10
the
department
is
furnished
that
any
stamps
upon
which
a
refund
11
is
requested
were
properly
purchased
from
the
department
and
12
paid
for
by
the
person
requesting
the
refund.
In
making
the
13
refund,
the
department
shall
prepare
a
voucher
showing
the
14
amount
of
refund
due
and
to
whom
payable
and
shall
authorize
15
the
department
of
administrative
services
to
issue
a
warrant
16
upon
order
of
the
director
to
pay
the
refund
out
of
any
funds
in
17
the
state
treasury
not
otherwise
appropriated.
18
b.
The
director
may
promulgate
adopt
rules
providing
for
19
refunds
of
the
face
value
of
stamps,
less
any
discount,
affixed
20
to
any
cigarettes
package,
the
contents
of
which
have
become
21
unfit
for
use
and
consumption,
unsalable,
or
for
any
other
22
legitimate
loss
which
may
occur,
upon
proof
of
such
loss.
23
Refund
Refunds
shall
be
made
in
the
same
manner
as
provided
for
24
unused
stamps.
25
Sec.
16.
Section
453A.10,
Code
2023,
is
amended
to
read
as
26
follows:
27
453A.10
Affixing
of
stamps
by
distributors.
28
Except
as
provided
in
section
453A.17
,
every
distributor
29
holding
an
Iowa
permit
shall
cause
to
be
affixed,
within
or
30
without
the
state
of
Iowa,
upon
every
individual
package
31
of
cigarettes
received
by
the
distributor
in
this
state
or
32
for
distribution
in
this
state,
upon
which
no
a
sufficient
33
tax
stamp
is
not
already
affixed,
a
stamp
or
stamps
of
34
an
amount
equal
to
the
tax
due
thereon
on
the
package
of
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cigarettes
.
Such
stamps
shall
be
affixed
within
forty-eight
1
hours,
exclusive
of
a
Sunday
or
a
holiday,
from
the
hour
the
2
cigarettes
were
received,
and
shall
be
affixed
before
such
3
distributor
sells,
offers
for
sale,
consumes,
or
otherwise
4
distributes
or
transports
the
same
cigarettes
.
It
shall
be
5
unlawful
for
any
person,
other
than
a
distributing
agent
or
6
distributor,
bonded
pursuant
to
section
453A.14
,
or
common
7
carrier
to
receive
or
accept
delivery
of
any
cigarettes
without
8
stamps
affixed
to
evidence
the
payment
of
the
tax
,
or
without
9
having
in
the
distributor’s,
distributing
agent’s,
or
common
10
carrier’s
possession
the
requisite
amount
or
number
of
stamps
11
necessary
to
stamp
such
cigarettes
,
and
the
.
The
possession
12
of
any
unstamped
cigarettes,
without
the
possession
of
the
13
requisite
amount
or
number
of
stamps,
shall
be
prima
facie
14
evidence
of
the
violation
of
this
provision.
As
used
in
this
15
section
,
“holiday”
means
the
same
as
defined
in
section
421.9A
.
16
Sec.
17.
Section
453A.11,
Code
2023,
is
amended
to
read
as
17
follows:
18
453A.11
Cancellation
of
stamps.
19
Stamps
affixed
to
a
package
of
cigarettes
shall
not
20
be
canceled
by
any
letter,
numeral,
or
other
mark
of
21
identification
or
otherwise
mutilated
in
any
manner
that
will
22
prevent
or
hinder
the
department
in
making
an
examination
as
23
to
the
genuineness
of
the
stamp.
However,
the
director
may
24
require
such
cancellation
of
cancel
the
tax
stamps
affixed
25
to
packages
of
cigarettes
which
is
as
necessary
to
carry
out
26
properly
the
provisions
of
this
subchapter
.
A
person
who
27
cancels
or
causes
the
cancellation
of
stamps
in
violation
of
28
this
section
shall
be
considered
in
possession
of
unstamped
29
cigarettes
and
is
subject
to
the
penalty
for
possession
of
30
unstamped
cigarettes
as
provided
in
section
453A.31
,
subsection
31
1,
paragraph
“a”
.
32
Sec.
18.
Section
453A.13,
Code
2023,
is
amended
to
read
as
33
follows:
34
453A.13
Distributor’s,
wholesaler’s,
vendor’s,
and
retailer’s
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permits.
1
1.
Permits
required.
Every
distributor,
wholesaler,
2
cigarette
vendor,
and
retailer,
now
engaged
or
who
desires
to
3
become
engaged
in
the
sale
or
use
of
cigarettes,
upon
which
a
4
tax
is
required
to
be
paid,
and
every
retailer
now
engaged
or
5
who
desires
to
become
engaged
in
selling,
offering
for
sale,
or
6
distributing
alternative
nicotine
products
,
or
vapor
products,
7
or
nicotine
solution
products,
including
through
delivery
8
sales,
shall
obtain
a
state
or
retail
permit
as
a
distributor,
9
wholesaler,
cigarette
vendor,
or
retailer,
as
the
case
may
be.
10
2.
Issuance
or
denial.
11
a.
The
department
shall
issue
state
permits
to
distributors,
12
wholesalers,
and
cigarette
vendors,
and
retailers
that
make
13
delivery
sales
of
alternative
nicotine
products
,
and
vapor
14
products,
and
nicotine
solution
products
subject
to
the
15
conditions
provided
in
this
subchapter
.
If
an
out-of-state
16
retailer
makes
delivery
sales
of
alternative
nicotine
17
products
,
or
vapor
products,
or
nicotine
solution
products,
an
18
application
shall
be
filed
with
the
department
and
a
permit
19
shall
be
issued
for
the
out-of-state
retailer’s
principal
place
20
of
business.
Cities
may
issue
retail
permits
to
retailers
21
with
a
place
of
business
located
within
their
respective
22
limits.
County
boards
of
supervisors
may
issue
retail
permits
23
to
retailers
with
a
place
of
business
in
their
respective
24
counties,
outside
of
the
corporate
limits
of
cities.
25
b.
The
department
may
deny
the
issuance
of
a
permit
26
to
a
distributor,
wholesaler,
vendor
,
or
retailer
who
is
27
substantially
delinquent
in
the
payment
of
a
tax
due,
or
the
28
interest
or
penalty
on
the
tax,
administered
by
the
department
29
at
the
time
of
application.
If
the
applicant
is
a
partnership,
30
a
permit
may
be
denied
if
a
partner
is
substantially
delinquent
31
on
any
delinquent
tax,
penalty
or
interest.
If
the
applicant
32
is
a
corporation,
a
permit
may
be
denied
if
any
officer
having
33
a
substantial
legal
or
equitable
interest
in
the
ownership
of
34
the
corporation
owes
any
delinquent
tax,
interest
,
or
penalty
35
-14-
LSB
1123YH
(6)
90
pf/jh
14/
52
H.F.
21
of
the
applicant
corporation.
1
c.
The
department,
or
a
city
or
county,
shall
submit
2
a
duplicate
of
any
application
for
a
retail
permit
to
the
3
alcoholic
beverages
division
of
the
department
of
commerce
4
within
thirty
days
of
the
issuance.
The
alcoholic
beverages
5
division
of
the
department
of
commerce
shall
submit
the
current
6
list
of
all
retail
permits
issued
to
the
Iowa
department
of
7
public
health
and
human
services
by
the
last
day
of
each
8
quarter
of
a
state
fiscal
year.
9
3.
Fees
——
expiration.
10
a.
All
permits
provided
for
in
this
subchapter
shall
expire
11
on
June
30
of
each
year.
A
permit
shall
not
be
granted
or
12
issued
until
the
applicant
has
paid
for
the
period
ending
June
13
30
next,
to
the
department
or
the
city
or
county
granting
the
14
permit,
the
fees
provided
for
in
this
subchapter
.
The
annual
15
state
permit
fee
for
a
distributor,
cigarette
vendor,
and
16
wholesaler
,
or
vendor
is
one
hundred
dollars
when
the
permit
17
is
granted
during
the
months
of
July,
August,
or
September.
18
However,
whenever
a
state
permit
holder
operates
more
than
one
19
place
of
business,
a
duplicate
state
permit
shall
be
issued
for
20
each
additional
place
of
business
on
payment
of
five
dollars
21
for
each
duplicate
state
permit,
but
refunds
as
provided
in
22
this
subchapter
do
not
apply
to
any
duplicate
permit
issued.
23
b.
The
fee
for
retail
permits
is
as
follows
when
the
permit
24
is
granted
during
the
months
of
July,
August,
or
September:
25
(1)
In
places
outside
any
city,
fifty
dollars.
26
(2)
In
cities
of
less
than
fifteen
thousand
population,
27
seventy-five
dollars.
28
(3)
In
cities
of
fifteen
thousand
or
more
population,
one
29
hundred
dollars.
30
c.
If
any
permit
is
granted
during
the
months
of
October,
31
November,
or
December,
the
fee
shall
be
three-fourths
of
32
the
above
maximum
schedule;
if
granted
during
the
months
of
33
January,
February,
or
March,
one-half
of
the
maximum
schedule,
34
and
if
granted
during
the
months
of
April,
May,
or
June,
35
-15-
LSB
1123YH
(6)
90
pf/jh
15/
52
H.F.
21
one-fourth
of
the
maximum
schedule.
1
4.
Refunds.
2
a.
An
unrevoked
permit
for
which
the
holder
has
paid
the
3
full
annual
fee
may
be
surrendered
during
the
first
nine
months
4
of
said
the
year
to
the
officer
issuing
it,
and
the
department
,
5
or
the
city
or
county
granting
the
permit
shall
make
refunds
to
6
the
holder
as
follows:
7
(1)
Three-fourths
of
the
annual
fee
if
the
surrender
is
made
8
during
July,
August,
or
September.
9
(2)
One-half
of
the
annual
fee
if
the
surrender
is
made
10
during
October,
November,
or
December.
11
(3)
One-fourth
of
the
annual
fee
if
the
surrender
is
made
12
during
January,
February,
or
March.
13
b.
An
unrevoked
permit
for
which
the
holder
has
paid
14
three-fourths
of
a
full
annual
fee
may
be
so
surrendered
during
15
the
first
six
months
of
the
period
covered
by
said
the
payment
16
and
the
department,
city,
or
county
shall
make
refunds
to
the
17
holder
as
follows:
18
(1)
A
sum
equal
to
one-half
of
an
annual
fee
if
the
19
surrender
is
made
during
October,
November,
or
December.
20
(2)
A
sum
equal
to
one-fourth
of
an
annual
fee
if
the
21
surrender
is
made
during
January,
February,
or
March.
22
c.
An
unrevoked
permit
for
which
the
holder
has
paid
23
one-half
of
a
full
annual
fee
may
be
surrendered
during
the
24
first
three
months
of
the
period
covered
by
that
payment,
and
25
the
department,
city,
or
county
shall
refund
to
the
holder
a
26
sum
equal
to
one-fourth
of
an
annual
fee.
27
5.
Application
——
bond.
Permits
shall
be
issued
only
upon
28
applications
accompanied
by
the
fee
indicated
above,
and
by
an
29
adequate
bond
as
provided
in
section
453A.14
,
and
upon
forms
30
furnished
by
the
department
upon
written
request.
The
failure
31
to
furnish
such
the
forms
shall
not
be
no
an
excuse
for
the
32
failure
to
file
the
forms
unless
absolute
refusal
is
shown.
33
The
forms
shall
set
forth
specify
all
of
the
following:
34
a.
The
manner
under
which
the
distributor,
wholesaler,
35
-16-
LSB
1123YH
(6)
90
pf/jh
16/
52
H.F.
21
vendor,
or
retailer,
transacts
or
intends
to
transact
such
1
business
as
a
distributor,
wholesaler,
vendor,
or
retailer.
2
b.
The
principal
office,
residence,
and
place
of
business
3
where
the
permit
is
to
apply.
4
c.
If
the
applicant
is
not
an
individual,
the
principal
5
officers
or
members
and
their
addresses.
6
d.
Any
other
information
as
the
director
shall
by
rules
7
prescribe
by
rule
.
8
6.
No
sales
without
permit.
A
distributor,
wholesaler,
9
cigarette
vendor,
or
retailer
shall
not
sell
any
cigarettes,
10
alternative
nicotine
products,
or
vapor
products
,
or
nicotine
11
solution
products
until
such
application
has
been
filed
and
12
the
fee
prescribed
paid
for
a
permit
and
until
such
permit
is
13
obtained
and
only
while
such
permit
is
unrevoked
and
unexpired.
14
7.
Number
of
permits
——
trucks.
An
application
shall
be
15
filed
and
a
permit
obtained
for
each
place
of
business
owned
or
16
operated
by
a
distributor,
wholesaler,
or
retailer,
excepting
17
except
that
no
a
permit
need
not
be
obtained
for
a
delivery
or
18
sales
truck
of
a
distributor
or
wholesaler
holding
a
permit,
19
provided
that
the
director
may
by
regulation
require
that
said
20
the
truck
bear
the
distributor’s
or
wholesaler’s
name,
and
that
21
the
permit
number
of
the
place
of
business
for
and
from
which
22
it
the
truck
operates
be
conspicuously
displayed
on
the
outside
23
of
the
body
of
the
truck,
immediately
under
the
name.
24
8.
Group
business.
Any
person
who
operates
both
as
a
25
distributor
and
wholesaler
in
the
same
place
of
business
shall
26
only
be
required
to
obtain
a
state
permit
for
the
particular
27
place
of
business
where
such
operation
of
said
the
business
28
is
conducted.
A
separate
retail
permit,
however,
shall
be
29
required
if
any
distributor
or
wholesaler
sells
cigarettes
at
30
both
retail
and
wholesale.
31
9.
Permit
——
form
and
contents.
Each
permit
issued
shall
32
describe
clearly
the
place
of
business
for
which
it
the
permit
33
is
issued,
shall
be
nonassignable,
consecutively
numbered,
34
designating
the
kind
of
permit,
and
shall
authorize
the
sale
of
35
-17-
LSB
1123YH
(6)
90
pf/jh
17/
52
H.F.
21
cigarettes,
alternative
nicotine
products,
or
vapor
products
,
1
or
nicotine
solution
products
in
this
state
subject
to
the
2
limitations
and
restrictions
herein
contained
specified
under
3
this
chapter
.
The
retail
permits
shall
be
upon
forms
furnished
4
by
the
department
or
on
forms
made
available
or
approved
by
the
5
department.
6
10.
Permit
displayed.
The
permit
shall,
at
all
times,
be
7
publicly
displayed
by
the
distributor,
wholesaler,
vendor,
or
8
retailer
at
the
place
of
business
so
as
to
be
easily
seen
by
9
the
public
and
the
persons
authorized
to
inspect
the
place
10
of
business.
The
proprietor
or
keeper
of
any
building
or
11
place
where
cigarettes,
alternative
nicotine
products,
vapor
12
products,
nicotine
solution
products,
tobacco,
or
tobacco
13
products
are
kept
for
sale,
or
with
intent
to
sell,
shall
upon
14
request
of
any
agent
of
the
department
or
any
peace
officer
15
exhibit
the
permit.
A
refusal
or
failure
to
exhibit
the
permit
16
is
prima
facie
evidence
that
the
cigarettes,
alternative
17
nicotine
products,
vapor
products,
nicotine
solution
products,
18
tobacco,
or
tobacco
products
are
kept
for
sale
or
with
intent
19
to
sell
in
violation
of
this
subchapter
.
20
Sec.
19.
Section
453A.15,
subsections
4,
5,
and
6,
Code
21
2023,
are
amended
to
read
as
follows:
22
4.
Every
permit
holder
or
other
person
shall,
when
requested
23
by
the
department,
make
additional
reports
as
the
department
24
deems
necessary
and
proper
and
shall
at
the
request
of
the
25
department
furnish
full
and
complete
information
pertaining
to
26
any
transaction
of
the
permit
holder
or
other
person
involving
27
the
purchase
or
sale
or
use
of
cigarettes
or
purchase
of
28
cigarette
stamps.
29
5.
Every
person
engaged
in
the
business
of
selling
30
cigarettes
in
interstate
commerce
only,
who
has,
by
furnishing
31
the
bond
required
in
section
453A.14
,
been
permitted
to
set
32
aside
or
store
cigarettes
in
this
state
for
the
conduct
of
33
such
interstate
business
without
the
stamps
affixed
thereto
34
to
the
cigarettes
,
shall
be
required
to
keep
such
records
and
35
-18-
LSB
1123YH
(6)
90
pf/jh
18/
52
H.F.
21
make
such
reports
to
the
department
as
are
required
by
the
1
department.
2
6.
If
any
distributor,
manufacturer,
or
other
person
3
fails
or
refuses
to
pay
any
tax,
penalties,
or
cost
of
an
4
audit
hereinafter
provided
,
and
it
becomes
necessary
to
bring
5
suit
or
to
intervene
in
any
manner
for
the
establishment
or
6
collection
of
said
the
claims,
in
any
judicial
proceedings,
any
7
report
filed
in
the
office
of
the
director
by
the
distributor,
8
manufacturer,
or
other
person,
or
the
distributor’s,
9
manufacturer’s,
or
other
person’s
representative,
or
a
10
copy
thereof
of
the
report
,
certified
to
by
the
director,
11
showing
the
number
of
cigarettes
sold
by
the
distributor,
12
the
distributor’s
representative,
the
manufacturer,
or
the
13
other
person,
upon
which
a
tax,
penalty,
or
cost
of
audit
14
has
not
been
paid,
or
any
audit
made
by
the
department
from
15
the
books
or
records
of
the
distributor,
manufacturer,
or
16
other
person
when
signed
and
sworn
to
by
the
agent
of
the
17
department
making
the
audit
as
being
made
from
the
books
or
18
records
of
the
distributor,
manufacturer,
or
other
person
from
19
or
to
whom
the
distributor,
manufacturer,
or
other
person
20
has
bought,
received,
or
delivered
cigarettes,
whether
from
21
a
transportation
company
or
otherwise,
such
report
or
audit
22
shall
be
admissible
in
evidence
in
such
proceedings
and
shall
23
be
prima
facie
evidence
of
the
contents
thereof.
However,
the
24
incorrectness
of
the
report
or
audit
may
be
shown.
25
Sec.
20.
Section
453A.17,
Code
2023,
is
amended
to
read
as
26
follows:
27
453A.17
Distributing
agent’s
permit.
28
1.
Every
distributing
agent
in
the
state,
now
engaged,
29
or
who
desires
to
become
engaged,
in
the
business
of
storing
30
unstamped
cigarettes
which
are
received
in
interstate
commerce
31
for
distribution
or
delivery
only
upon
order
received
from
32
without
the
state
or
to
be
sold
outside
the
state,
shall
33
file
with
the
department,
an
application
with
the
department
34
for
a
distributing
agent’s
permit,
on
a
form
prescribed
by
35
-19-
LSB
1123YH
(6)
90
pf/jh
19/
52
H.F.
21
the
director
,
to
be
and
furnished
by
the
department
upon
1
written
request.
The
failure
of
the
department
to
furnish
2
an
application
shall
not
be
no
an
excuse
for
the
failure
to
3
file
the
same
application
unless
an
absolute
refusal
is
shown.
4
Said
The
application
form
shall
set
forth
specify
the
name
5
under
which
such
the
distributing
agent
transacts
or
intends
to
6
transact
such
business
as
a
distributing
agent,
the
principal
7
office
and
place
of
business
in
Iowa
to
which
the
permit
is
8
to
apply,
and
if
other
than
an
individual,
the
principal
9
officers
or
members
thereof
of
the
distributing
agent
and
their
10
addresses.
The
director
may
require
any
other
information
in
11
said
the
application.
No
A
distributing
agent
shall
not
engage
12
in
such
business
until
such
the
application
has
been
filed
13
and
,
a
fee
in
the
sum
of
one
hundred
dollars
has
been
paid
for
14
the
permit
,
and
until
the
permit
has
been
obtained.
Such
The
15
permit
shall
expire
on
June
30
following
the
date
of
issuance.
16
All
of
the
The
provisions
of
the
last
two
paragraphs
of
section
17
453A.14
,
relative
to
bonds,
are
incorporated
herein
and
by
18
this
reference
made
applicable
to
distributing
agents.
Upon
19
failure
to
furnish
adequate
bond
as
required,
the
permit
shall
20
be
revoked
without
hearing.
An
application
shall
be
filed
and
21
a
permit
obtained
for
each
place
of
business
owned
or
operated
22
by
a
distributing
agent.
23
2.
Upon
receipt
of
the
application,
the
bond
,
and
the
permit
24
fee,
the
department
may
issue
to
every
distributing
agent
for
25
the
place
of
business
designated
a
nonassignable
consecutively
26
numbered
permit,
authorizing
the
storing,
and
distribution
of
27
unstamped
cigarettes
within
this
state
when
the
distribution
28
is
made
upon
interstate
orders
only.
A
distributing
agent
29
may
also
transport
unstamped
cigarettes
in
the
agent’s
own
30
conveyances
to
the
state
boundary
for
distribution
outside
the
31
state,
and
any
nonresident
customer
of
the
distributor
may
32
purchase
and
convey
unstamped
cigarettes
to
the
state
line
for
33
distribution
outside
the
state.
The
nonresident
purchaser
34
shall
have
in
possession
an
invoice
evidencing
the
purchase
of
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the
unstamped
cigarettes,
which
must
be
exhibited
upon
request
1
to
any
peace
officer
or
agent
charged
with
the
enforcement
of
2
this
subchapter
.
3
3.
Cigarettes
set
aside
for
interstate
business
must
be
kept
4
separate
from
intrastate
stock
and
those
cigarettes
not
so
kept
5
separate
shall
be
considered
as
intrastate
stock
and
subject
to
6
the
same
requirements
as
cigarettes
possessed
for
the
purpose
7
of
a
“first
sale”.
8
4.
It
is
unlawful
for
any
distributing
agent
to
sell
at
9
retail
cigarettes
from
automobiles,
trucks,
or
any
similar
10
conveyances.
11
Sec.
21.
Section
453A.19,
Code
2023,
is
amended
to
read
as
12
follows:
13
453A.19
Examination
of
records
and
premises.
14
1.
For
the
purpose
of
enabling
the
department
to
determine
15
the
tax
liability
of
permit
holders
or
any
other
person
dealing
16
in
cigarettes
or
to
determine
whether
a
tax
liability
has
been
17
incurred,
the
department
shall
have
the
right
to
inspect
any
18
premises
of
the
holder
of
an
Iowa
permit
located
within
or
19
without
the
state
of
Iowa
where
cigarettes
are
manufactured,
20
produced,
made,
stored,
transported,
sold,
or
offered
for
sale
21
or
exchange,
and
to
examine
all
of
the
records
required
to
be
22
kept
or
any
other
records
that
may
be
kept
incident
to
the
23
conduct
of
the
cigarette
business
of
said
the
permit
holder
or
24
any
other
person
dealing
in
cigarettes.
25
2.
The
said
authorized
officers
shall
also
have
the
right
,
26
as
an
incident
to
determining
the
said
tax
liability
,
or
27
whether
a
tax
liability
has
been
incurred,
to
examine
all
28
stocks
of
cigarettes
and
cigarette
stamps
and
for
the
foregoing
29
purpose
said
authorized
officers
shall
also
have
the
right
to
30
remain
upon
said
the
premises
for
such
length
of
time
as
may
be
31
necessary
to
fully
determine
said
the
tax
liability
,
or
whether
32
a
tax
liability
has
been
incurred.
33
3.
It
shall
be
unlawful
for
any
of
the
foregoing
permit
34
holders
to
fail
to
produce
upon
demand
of
the
department
any
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records
required
herein
to
be
kept
or
to
hinder
or
prevent
1
in
any
manner
the
inspection
of
said
the
records
or
the
2
examination
of
said
the
premises.
3
4.
In
the
case
of
any
departmental
inspection
conducted
4
under
this
section
requiring
department
personnel
to
travel
5
outside
the
state
of
Iowa,
any
additional
costs
incurred
by
the
6
department
for
out-of-state
travel
expenses
shall
be
borne
by
7
the
permittee.
These
additional
costs
shall
be
those
costs
in
8
excess
of
the
costs
of
a
similar
inspection
conducted
at
the
9
geographical
point
located
within
the
state
of
Iowa
nearest
to
10
the
out-of-state
inspection
point.
In
lieu
of
conducting
an
on
11
premises
out-of-state
inspection,
the
department
shall
have
the
12
authority
to
may
direct
the
permittee
to
assemble
and
transport
13
all
records
described
in
subsection
1
,
to
the
nearest
practical
14
and
convenient
geographical
location
in
Iowa
for
inspection
by
15
the
department.
16
Sec.
22.
Section
453A.21,
Code
2023,
is
amended
to
read
as
17
follows:
18
453A.21
Cigarettes
retailer
may
not
sell.
19
Unless
a
retail
permit
holder
shall
also
hold
holds
a
state
20
permit,
it
shall
be
unlawful
for
a
the
retailer
to
sell
or
have
21
in
the
retailer’s
possession
cigarettes
upon
which
the
stamp
22
tax
has
stamps
have
not
been
affixed.
23
Sec.
23.
Section
453A.32,
subsection
6,
Code
2023,
is
24
amended
to
read
as
follows:
25
6.
The
provisions
of
this
section
applying
to
cigarettes
26
shall
also
apply
to
tobacco
products
and
nicotine
solution
27
products
taxed
under
subchapter
II
of
this
chapter
.
28
Sec.
24.
Section
453A.33,
Code
2023,
is
amended
to
read
as
29
follows:
30
453A.33
Seizure
not
to
affect
criminal
prosecution.
31
The
seizure,
forfeiture,
and
sale
of
cigarettes,
tobacco
32
products,
nicotine
solution
products,
and
other
property
under
33
the
terms
and
conditions
set
out
specified
in
section
453A.32
,
34
shall
not
constitute
any
defense
to
the
person
owning
or
having
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control
or
possession
of
the
property
from
criminal
prosecution
1
for
any
act
or
omission
made
or
offense
committed
under
this
2
chapter
or
from
liability
to
pay
penalties
provided
by
this
3
chapter
.
4
Sec.
25.
Section
453A.35,
subsection
1,
paragraph
a,
Code
5
2023,
is
amended
to
read
as
follows:
6
a.
With
the
exception
of
revenues
credited
to
the
health
7
care
trust
fund
pursuant
to
paragraph
“b”
and
the
revenues
8
generated
from
the
tax
on
nicotine
solution
products
pursuant
9
to
section
453A.43A
,
the
proceeds
derived
from
the
sale
of
10
stamps
and
the
payment
of
fees
and
penalties
provided
for
under
11
this
chapter
,
and
the
permit
fees
received
from
all
permits
12
issued
by
the
department,
shall
be
credited
to
the
general
fund
13
of
the
state.
14
Sec.
26.
Section
453A.36,
subsections
1,
2,
3,
4,
5,
6,
and
15
7,
Code
2023,
are
amended
to
read
as
follows:
16
1.
Except
as
otherwise
provided
in
this
subchapter
,
it
is
17
unlawful
for
any
person
to
have
in
the
person’s
possession
for
18
sale,
distribution,
or
use,
or
for
any
other
purpose,
in
excess
19
of
forty
cigarettes,
or
to
sell,
distribute,
use,
or
present
20
as
a
gift
or
prize
cigarettes
upon
which
a
tax
is
required
to
21
be
paid
by
this
subchapter
,
without
having
affixed
to
each
22
individual
package
of
cigarettes,
the
proper
stamp
evidencing
23
the
payment
of
the
tax
and
the
.
The
absence
of
the
stamp
on
the
24
individual
package
of
cigarettes
is
notice
to
all
persons
that
25
the
tax
has
not
been
paid
and
is
prima
facie
evidence
of
the
26
nonpayment
of
the
tax.
27
2.
No
A
person,
other
than
a
common
carrier
and
a
28
distributor’s
truck
bearing
the
distributor’s
name
and
permit
29
number
in
plain
view
on
the
outside
of
such
truck,
shall
not
30
transport
within
this
state
cigarettes
upon
which
a
tax
is
31
required
to
be
paid,
without
having
stamps
affixed
to
each
32
individual
package
of
said
cigarettes
;
and
no
.
A
person
shall
33
not
fail
or
refuse,
upon
demand
of
agent
of
the
department,
or
34
any
peace
officer
to
stop
any
vehicle
transporting
cigarettes
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for
a
full
and
complete
inspection
of
the
cargo
carried.
1
3.
No
A
person
shall
not
use,
sell,
offer
for
sale,
or
2
possess
for
the
purpose
of
use
or
sale,
within
this
state,
any
3
previously
used
stamp
or
stamps,
or
attach
any
such
previously
4
used
stamps
to
an
individual
package
of
cigarettes,
nor
shall
5
any
person
purchase
stamps
from
any
person
other
than
the
6
department
or
a
bank
authorized
to
sell
stamps
pursuant
to
7
section
453A.8,
or
sell
stamps
purchased
from
the
department
or
8
a
bank
authorized
to
sell
stamps
pursuant
to
section
453A.8
.
9
4.
No
A
person
shall
not
knowingly
use,
consume,
or
smoke,
10
within
this
state,
cigarettes
upon
which
a
tax
is
required
to
11
be
paid,
without
said
the
tax
having
been
paid.
12
5.
No
A
person,
unless
the
person
be
other
than
the
holder
13
of
a
permit
,
or
the
permit
holder’s
representative,
shall
14
not
solicit
the
sale
of
cigarettes
,
provided
that
.
However,
15
this
section
subsection
shall
not
prevent
solicitation
by
a
16
nonpermit
holder
for
the
sale
of
cigarettes
to
any
state
permit
17
holder.
18
6.
Any
sales
of
tobacco,
tobacco
products,
alternative
19
nicotine
products,
vapor
products,
nicotine
solution
products,
20
or
cigarettes
made
through
a
cigarette
vending
machine
are
21
subject
to
rules
and
penalties
relative
to
retail
sales
of
22
tobacco,
tobacco
products,
alternative
nicotine
products,
vapor
23
products,
nicotine
solution
products,
and
cigarettes
provided
24
for
in
this
chapter
.
Cigarettes
shall
not
be
sold
through
25
any
cigarette
a
vending
machine
unless
the
cigarettes
have
26
been
properly
stamped
or
metered
as
provided
by
under
this
27
subchapter
,
and
in
case
of
violation
of
this
provision,
the
28
permit
of
the
dealer
authorizing
retail
sales
of
cigarettes
29
shall
be
revoked.
Payment
of
the
permit
fee
as
provided
30
in
section
453A.13
authorizes
a
cigarette
vendor
to
sell
31
tobacco,
tobacco
products,
alternative
nicotine
products,
32
vapor
products,
nicotine
solution
products,
and
cigarettes
33
through
vending
machines.
However,
tobacco,
tobacco
products,
34
alternative
nicotine
products,
vapor
products,
nicotine
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solution
products,
and
cigarettes
shall
not
be
sold
through
1
a
vending
machine
unless
the
vending
machine
is
located
in
2
a
place
where
the
retailer
ensures
that
no
person
younger
3
than
twenty-one
years
of
age
is
present
or
permitted
to
4
enter
at
any
time.
Tobacco,
tobacco
products,
alternative
5
nicotine
products,
vapor
products,
nicotine
solution
products,
6
and
cigarettes
shall
not
be
sold
through
any
cigarette
a
7
vending
machine
if
such
products
are
placed
together
with
8
any
nontobacco
product,
other
than
matches,
in
the
cigarette
9
vending
machine.
This
section
subsection
does
not
require
a
10
retail
permit
holder
to
buy
a
cigarette
vendor’s
permit
if
the
11
retail
permit
holder
is
in
fact
the
owner
of
the
cigarette
12
vending
machines
and
the
machines
are
operated
in
the
location
13
described
in
the
retail
permit.
14
7.
a.
It
shall
be
unlawful
for
a
person
other
than
a
15
retailer
as
defined
in
section
453A.1
or
453A.42
who
holds
a
16
valid
retail
permit,
as
applicable,
to
sell
tobacco,
tobacco
17
products,
alternative
nicotine
products,
vapor
products,
18
nicotine
solution
products,
or
cigarettes
at
retail.
19
b.
A
state
permit
holder
shall
not
sell
or
distribute
20
cigarettes
at
wholesale
to
any
person
in
the
state
of
Iowa
21
who
does
not
hold
a
permit
authorizing
the
retail
sale
22
of
cigarettes
or
who
does
not
hold
a
state
permit
as
a
23
manufacturer,
distributing
agent,
wholesaler,
or
distributor.
24
Sec.
27.
Section
453A.36A,
subsection
1,
Code
2023,
is
25
amended
to
read
as
follows:
26
1.
Except
as
provided
in
section
453A.36,
subsection
6
,
27
a
retailer
shall
not
sell
or
offer
for
sale
tobacco,
tobacco
28
products,
alternative
nicotine
products,
vapor
products,
29
nicotine
solution
products,
or
cigarettes
through
the
use
of
30
a
self-service
display.
31
Sec.
28.
Section
453A.39,
Code
2023,
is
amended
to
read
as
32
follows:
33
453A.39
Tobacco,
tobacco
products,
alternative
nicotine
34
products,
vapor
products,
nicotine
solution
products,
and
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cigarette
samples
——
restrictions
——
administration.
1
1.
A
manufacturer,
distributor,
wholesaler,
retailer,
or
2
distributing
agent,
or
agent
thereof,
shall
not
give
away
3
cigarettes
or
tobacco
products
at
any
time
in
connection
with
4
the
manufacturer’s,
distributor’s,
wholesaler’s,
retailer’s,
or
5
distributing
agent’s
business
or
for
promotion
of
the
business
6
or
product,
except
as
provided
in
subsection
2
.
7
2.
a.
All
cigarette
samples
shall
be
shipped
only
to
a
8
distributor
that
has
a
permit
to
stamp
cigarettes
or
little
9
cigars
with
Iowa
tax
.
All
cigarette
samples
must
have
a
10
cigarette
stamp.
The
manufacturer
shipping
samples
under
this
11
section
shall
send
an
affidavit
to
the
director
stating
the
12
shipment
information,
including
the
date
shipped,
quantity,
and
13
to
whom
the
samples
were
shipped.
The
distributor
receiving
14
the
shipment
shall
send
an
affidavit
to
the
director
stating
15
the
shipment
information,
including
the
date
shipped,
quantity,
16
and
from
whom
the
samples
were
shipped.
These
affidavits
shall
17
be
duly
notarized
and
submitted
to
the
director
at
the
time
of
18
shipment
and
receipt
of
the
samples.
The
distributor
shall
19
pay
the
tax
on
samples
by
separate
remittance
along
with
the
20
affidavit.
21
b.
A
manufacturer,
distributor,
wholesaler,
retailer,
or
22
distributing
agent
or
agent
thereof
shall
not
give
away
any
23
tobacco,
tobacco
products,
alternative
nicotine
products,
vapor
24
products,
nicotine
solution
products,
or
cigarettes
to
any
25
person
under
twenty-one
years
of
age,
or
within
five
hundred
26
feet
of
any
playground,
school,
high
school,
or
other
facility
27
when
such
facility
is
being
used
primarily
by
persons
under
age
28
twenty-one
for
recreational,
educational,
or
other
purposes.
29
c.
Proof
of
age
shall
be
required
if
a
reasonable
person
30
could
conclude
on
the
basis
of
outward
appearance
that
a
31
prospective
recipient
of
a
sample
may
be
under
twenty-one
years
32
of
age.
33
Sec.
29.
Section
453A.40,
subsections
1
and
3,
Code
2023,
34
are
amended
to
read
as
follows:
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1.
All
persons
required
to
obtain
a
permit
or
to
be
licensed
1
under
section
453A.13
or
section
453A.44
having
in
their
2
possession
and
held
for
resale
on
the
effective
date
of
an
3
increase
in
the
tax
rate
cigarettes,
little
cigars,
or
tobacco
4
products
,
or
nicotine
solution
products
upon
which
the
tax
5
under
section
453A.6
,
or
453A.43
,
or
453A.43A
has
been
paid,
6
unused
cigarette
tax
stamps
which
have
been
paid
for
under
7
section
453A.8
,
unused
metered
imprints
which
have
been
paid
8
for
under
section
453A.12
,
or
tobacco
products
or
nicotine
9
solution
products
for
which
the
tax
has
not
been
paid
under
10
section
453A.46
shall
be
subject
to
an
inventory
tax
on
the
11
items
as
provided
in
this
section
.
12
3.
The
rate
of
the
inventory
tax
on
each
item
subject
to
13
the
tax
as
specified
in
subsection
1
is
equal
to
the
difference
14
between
the
amount
paid
on
each
item
under
section
453A.6
,
15
453A.8
,
453A.12
,
or
453A.43
,
or
453A.43A
prior
to
the
tax
16
increase
and
the
amount
that
is
to
be
paid
on
each
similar
item
17
under
section
453A.6
,
453A.8
,
453A.12
,
or
453A.43
,
or
453A.43A
18
after
the
tax
increase
except
that
in
computing
the
rate
of
the
19
inventory
tax
any
discount
allowed
or
allowable
under
section
20
453A.8
shall
not
be
considered.
21
Sec.
30.
Section
453A.42,
Code
2023,
is
amended
to
read
as
22
follows:
23
453A.42
Definitions.
24
When
used
in
this
subchapter
,
unless
the
context
clearly
25
indicates
otherwise,
the
following
terms
shall
have
the
26
meanings,
respectively,
ascribed
to
them
in
this
section
:
27
1.
“Alternative
nicotine
product”
means
the
same
as
defined
28
in
section
453A.1.
29
1.
2.
“Business”
means
any
trade,
occupation,
activity,
30
or
enterprise
engaged
in
for
the
purpose
of
selling
or
31
distributing
tobacco
products
or
nicotine
solution
products
in
32
this
state.
33
2.
3.
“Consumer”
means
any
person
who
has
title
to
or
34
possession
of
tobacco
products
or
nicotine
solution
products
in
35
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21
storage,
for
use
or
other
consumption
in
this
state.
1
3.
4.
“Delivery
sale”
means
any
sale
of
an
alternative
2
nicotine
product
or
a
vapor
product
to
a
purchaser
in
this
3
state
where
the
purchaser
submits
the
order
for
such
sale
by
4
means
of
a
telephonic
or
other
method
of
voice
transmission,
5
mail
or
any
other
delivery
service,
or
the
internet
or
other
6
online
service
and
the
alternative
nicotine
product
or
vapor
7
product
is
delivered
by
use
of
mail
or
a
delivery
service.
The
8
sale
of
an
alternative
nicotine
product
or
vapor
product
shall
9
constitute
a
delivery
sale
regardless
of
whether
the
seller
10
is
located
in
this
state.
“Delivery
sale”
does
not
include
a
11
sale
to
a
distributor
or
retailer
of
any
alternative
nicotine
12
product
or
vapor
product
not
for
personal
consumption
the
same
13
as
defined
in
section
453A.1
.
14
4.
5.
“Director”
means
the
director
of
the
department
of
15
revenue.
16
5.
6.
“Distributor”
means
any
and
each
of
the
following:
17
a.
Any
person
engaged
in
the
business
of
selling
tobacco
18
products
or
nicotine
solution
products
in
this
state
who
19
brings,
or
causes
to
be
brought,
into
this
state
from
without
20
the
state
any
tobacco
products
or
nicotine
solution
products
21
for
sale
;
.
22
b.
Any
person
who
makes,
manufactures,
or
fabricates
tobacco
23
products
or
nicotine
solution
products
in
this
state
for
sale
24
in
this
state
;
.
25
c.
Any
person
engaged
in
the
business
of
selling
tobacco
26
products
or
nicotine
solution
products
without
this
state
who
27
ships
or
transports
tobacco
products
or
nicotine
solution
28
products
to
retailers
in
this
state,
to
be
sold
by
those
29
retailers.
30
6.
7.
“Little
cigar”
means
any
roll
for
smoking
which
meets
31
all
of
the
following
conditions
:
32
a.
Is
made
wholly
or
in
part
of
tobacco,
irrespective
of
33
size
or
shape
and
irrespective
of
the
tobacco
being
flavored,
34
adulterated,
or
mixed
with
any
other
ingredient
;
.
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b.
Is
not
a
cigarette
as
defined
in
section
453A.1
,
1
subsection
4;
and
.
2
c.
Either
weighs
not
more
than
three
pounds
per
thousand,
3
irrespective
of
retail
price,
or
weighs
more
than
three
pounds
4
per
thousand
and
has
a
retail
price
of
not
more
than
two
5
and
one-half
cents
per
little
cigar.
For
purposes
of
this
6
subsection
,
the
retail
price
is
the
ordinary
retail
price
in
7
this
state,
not
including
retail
sales
tax,
use
tax,
or
the
tax
8
on
little
cigars
imposed
by
section
453A.43
.
9
7.
8.
“Manufacturer”
means
a
person
who
manufactures
and
10
sells
tobacco
products
or
nicotine
solution
products
.
11
9.
“Nicotine
solution
product”
means
the
same
as
defined
in
12
section
453A.1.
13
8.
10.
“Person”
means
any
individual,
firm,
association,
14
partnership,
joint
stock
company,
joint
adventure,
corporation,
15
trustee,
agency,
or
receiver,
or
any
legal
representative
of
16
any
of
the
foregoing
the
same
as
defined
in
section
453A.1
.
17
9.
11.
“Place
of
business”
means
any
place
where
18
tobacco
products
or
nicotine
solution
products
are
sold
or
19
where
tobacco
products
or
nicotine
solution
products
are
20
manufactured,
stored,
or
kept
for
the
purpose
of
sale
or
21
consumption,
including
any
vessel,
vehicle,
airplane,
train,
or
22
vending
machine;
or
and
for
a
business
within
or
without
the
23
state
that
conducts
delivery
sales,
any
place
where
alternative
24
nicotine
products
,
or
vapor
products
,
or
nicotine
solution
25
products
are
sold
or
where
alternative
nicotine
products
,
or
26
vapor
products
,
or
nicotine
solution
products
are
kept
for
the
27
purpose
of
sale,
including
delivery
sales.
28
10.
12.
“Retail
outlet”
means
each
place
of
business
from
29
which
tobacco
products
are
sold
to
consumers.
30
11.
13.
“Retailer”
means
any
person
engaged
in
the
business
31
of
selling
tobacco,
tobacco
products,
alternative
nicotine
32
products,
or
vapor
products
,
or
nicotine
solution
products
to
33
ultimate
consumers.
34
12.
14.
“Sale”
means
any
transfer,
exchange,
or
barter,
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in
any
manner
or
by
any
means
whatsoever,
for
a
consideration,
1
and
includes
and
means
all
sales
made
by
any
person.
It
2
“Sale”
includes
a
gift
by
a
person
engaged
in
the
business
3
of
selling
tobacco
products
or
nicotine
solution
products
,
4
for
advertising,
as
a
means
of
evading
the
provisions
of
this
5
subchapter
,
or
for
any
other
purposes
whatsoever.
6
13.
15.
“Snuff”
means
any
finely
cut,
ground,
or
powdered
7
tobacco
that
is
not
intended
to
be
smoked.
8
14.
16.
“Storage”
means
any
keeping
or
retention
of
tobacco
9
products
or
nicotine
solution
products
for
use
or
consumption
10
in
this
state.
11
15.
17.
“Subjobber”
means
any
person,
other
than
a
12
manufacturer
or
distributor,
who
buys
tobacco
products
or
13
nicotine
solution
products
from
a
distributor
and
sells
them
to
14
persons
other
than
the
ultimate
consumers.
15
16.
18.
“Tobacco
products”
means
cigars;
little
cigars
16
as
defined
herein;
cheroots;
stogies;
periques;
granulated,
17
plug
cut,
crimp
cut,
ready
rubbed,
and
other
smoking
tobacco;
18
snuff;
cavendish;
plug
and
twist
tobacco;
fine-cut
and
other
19
chewing
tobaccos;
shorts;
refuse
scraps,
clippings,
cuttings
20
and
sweepings
of
tobacco,
and
other
kinds
and
forms
of
tobacco,
21
prepared
in
such
manner
as
to
be
suitable
for
chewing
or
22
smoking
in
a
pipe
or
otherwise,
or
both
for
chewing
and
23
smoking;
but
shall
not
include
cigarettes
as
defined
in
section
24
453A.1,
subsection
4
the
same
as
defined
in
section
453A.1
.
25
17.
19.
“Use”
means
the
exercise
of
any
right
or
power
26
incidental
to
the
ownership
of
tobacco
products
or
nicotine
27
solution
products
.
28
20.
“Vapor
product”
means
the
same
as
defined
in
section
29
453A.1.
30
18.
21.
“Wholesale
sales
price”
means
the
established
price
31
for
which
a
manufacturer
sells
a
tobacco
product
or
a
nicotine
32
solution
product
to
a
distributor,
exclusive
of
any
discount
33
or
other
reduction.
34
Sec.
31.
Section
453A.43,
subsection
1,
paragraphs
a
and
b,
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Code
2023,
are
amended
to
read
as
follows:
1
a.
A
tax
is
imposed
upon
all
tobacco
products
in
this
state
2
and
upon
any
person
engaged
in
business
as
a
distributor
of
3
tobacco
products,
at
the
rate
of
twenty-two
percent
of
the
4
wholesale
sales
price
of
the
tobacco
products,
except
little
5
cigars
and
snuff
as
defined
in
section
453A.42
.
6
b.
In
addition
to
the
tax
imposed
under
paragraph
“a”
,
a
7
tax
is
imposed
upon
all
tobacco
products
in
this
state
and
upon
8
any
person
engaged
in
business
as
a
distributor
of
tobacco
9
products,
at
the
rate
of
twenty-eight
percent
of
the
wholesale
10
sales
price
of
the
tobacco
products,
except
little
cigars
and
11
snuff
as
defined
in
section
453A.42
.
12
Sec.
32.
NEW
SECTION
.
453A.43A
Tax
on
nicotine
solution
13
products.
14
1.
A
tax
is
imposed
upon
all
nicotine
solution
products
15
in
this
state
and
upon
any
person
engaged
in
business
as
a
16
distributor
of
nicotine
solution
products,
at
the
rate
of
17
twenty-six
percent
of
the
wholesale
sales
price
of
the
nicotine
18
solution
products.
19
2.
The
taxes
on
nicotine
solution
products
shall
be
imposed
20
at
the
time
the
distributor
does
any
of
the
following:
21
a.
Brings,
or
causes
to
be
brought,
into
this
state
from
22
outside
the
state
nicotine
solution
products
for
sale.
23
b.
Makes,
manufactures,
or
fabricates
nicotine
solution
24
products
in
this
state
for
sale
in
this
state.
25
c.
Ships
or
transports
nicotine
solution
products
to
26
retailers
in
this
state,
to
be
sold
by
those
retailers.
27
3.
a.
A
tax
is
imposed
upon
the
use
or
storage
by
consumers
28
of
nicotine
solution
products
in
this
state,
and
upon
the
29
consumers,
at
the
rate
of
twenty-six
percent
of
the
cost
of
the
30
nicotine
solution
products.
31
b.
The
taxes
imposed
by
this
subsection
shall
not
apply
32
if
the
taxes
imposed
by
subsection
1
on
the
nicotine
solution
33
products
have
been
paid.
34
4.
Any
nicotine
solution
product
with
respect
to
which
a
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tax
has
once
been
imposed
under
this
subchapter
shall
not
again
1
be
subject
to
tax
under
this
subchapter,
except
as
provided
in
2
section
453A.40.
3
5.
The
tax
imposed
by
this
section
shall
not
apply
with
4
respect
to
any
nicotine
solution
product
which
under
the
5
Constitution
and
laws
of
the
United
States
may
not
be
made
the
6
subject
of
taxation
by
this
state.
7
6.
The
tax
imposed
by
this
section
shall
be
in
addition
to
8
all
other
occupation
or
privilege
taxes
or
license
fees
now
or
9
hereafter
imposed
by
any
city
or
county.
10
7.
All
excise
taxes
imposed
on
nicotine
solution
products
11
and
collected
under
this
chapter
by
a
distributor
or
any
12
individual
are
deemed
to
be
held
in
trust
for
the
state
of
13
Iowa.
14
Sec.
33.
NEW
SECTION
.
453A.43B
Health
promotion
trust
fund
15
——
nicotine
solution
products
revenue
——
use
of
moneys.
16
1.
A
health
promotion
trust
fund
is
created
in
the
17
office
of
the
treasurer
of
state.
The
fund
consists
of
the
18
revenues
generated
from
the
tax
on
nicotine
solution
products
19
pursuant
to
section
453A.43A
that
are
credited
to
the
health
20
promotion
trust
fund,
annually.
Moneys
in
the
fund
shall
be
21
separate
from
the
general
fund
of
the
state
and
shall
not
be
22
considered
part
of
the
general
fund
of
the
state.
However,
the
23
fund
shall
be
considered
a
special
account
for
the
purposes
24
of
section
8.53
relating
to
generally
accepted
accounting
25
principles.
Moneys
in
the
fund
shall
be
used
only
as
specified
26
in
this
section
and
shall
be
appropriated
only
for
the
uses
27
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
28
and
shall
not
be
transferred,
used,
obligated,
appropriated,
29
or
otherwise
encumbered,
except
as
provided
in
this
section.
30
Notwithstanding
section
12C.7,
subsection
2,
interest
or
31
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
32
the
fund.
33
2.
The
revenue
generated
from
the
tax
on
nicotine
solution
34
products
pursuant
to
section
453A.43A
shall
be
credited
to
35
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the
health
promotion
trust
fund
created
in
this
section
on
an
1
annual
basis.
2
3.
Of
the
revenues
generated
and
credited
to
the
fund
on
an
3
annual
basis,
ten
percent
of
the
total
amount
is
appropriated
4
annually
to
the
department
of
health
and
human
services
for
5
tobacco
use
prevention
and
control
efforts
pursuant
to
chapter
6
142A
and
ninety
percent
of
the
total
amount
is
appropriated
7
annually
to
the
judicial
branch
to
be
used
to
create
and
8
maintain
civil
and
criminal
specialty
courts
involving
9
individuals
with
substance
use
disorder
or
mental
health
10
issues.
11
Sec.
34.
Section
453A.44,
Code
2023,
is
amended
to
read
as
12
follows:
13
453A.44
Licenses
——
distributors
,
and
subjobbers.
14
1.
No
A
person
shall
not
engage
in
the
business
of
a
15
distributor
or
subjobber
of
tobacco
products
or
nicotine
16
solution
products
at
any
place
of
business
without
first
having
17
received
a
license
from
the
director
to
engage
in
that
business
18
as
a
distributor
or
subjobber
at
that
place
of
business.
19
2.
Every
An
application
for
such
a
license
shall
be
made
on
20
a
form
prescribed
by
the
director
and
shall
state
the
all
of
21
the
following:
22
a.
The
name
and
address
of
the
applicant
;
if
.
23
(1)
If
the
applicant
is
a
firm,
partnership,
or
association,
24
the
name
and
address
of
each
of
its
members
;
if
.
25
(2)
If
the
applicant
is
a
corporation,
the
name
and
address
26
of
each
of
its
officers
;
the
.
27
b.
The
address
of
its
the
applicant’s
principal
place
of
28
business
;
the
.
29
c.
The
place
where
the
business
to
be
licensed
is
to
be
30
conducted
;
and
such
.
31
d.
Such
other
information
as
the
director
may
require
for
32
the
purpose
of
the
administration
of
this
subchapter
.
33
3.
A
person
without
this
state
who
ships
or
transports
34
tobacco
products
or
nicotine
solution
products
to
retailers
35
-33-
LSB
1123YH
(6)
90
pf/jh
33/
52
H.F.
21
in
this
state
,
to
be
sold
by
those
retailers
,
may
make
1
application
apply
for
a
license
as
a
distributor,
be
granted
a
2
license
by
the
director,
and
thereafter
be
subject
to
all
the
3
provisions
of
this
subchapter
and
entitled
to
act
as
a
licensed
4
distributor.
5
4.
a.
Each
application
for
a
distributor’s
license
shall
6
be
accompanied
by
a
fee
of
one
hundred
dollars,
except
that
an
7
applicant
holding
a
permit
pursuant
to
subchapter
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
subchapter
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
The
bond
shall
be
in
a
form
to
be
17
fixed
by
the
director
and
approved
by
the
attorney
general.
18
Whenever
it
is
the
opinion
of
the
director
that
the
bond
given
19
by
a
licensee
is
inadequate
in
amount
to
fully
protect
the
20
state,
the
director
shall
require
either
an
increase
in
the
21
amount
of
said
the
bond
or
an
additional
bond,
in
such
an
22
amount
as
the
director
deems
sufficient.
Any
bond
required
by
23
this
subchapter
,
or
a
reissue
thereof,
or
a
substitute
therefor
24
of
the
bond
,
shall
be
kept
in
full
force
and
effect
during
the
25
entire
period
covered
by
the
license.
26
b.
A
separate
application
for
a
license
shall
be
made
for
27
each
place
of
business
where
a
distributor
proposes
to
engage
28
in
business
as
such
a
distributor
under
this
subchapter
.
29
5.
Each
application
for
a
subjobber’s
license
shall
30
be
accompanied
by
a
fee
of
ten
dollars,
except
that
no
an
31
applicant
holding
a
permit
pursuant
to
subchapter
I
of
this
32
chapter
shall
not
be
required
to
pay
an
additional
fee.
33
6.
A
distributor
or
subjobber
applying
for
a
license
between
34
January
1
and
June
30
of
any
year
shall
be
required
to
pay
only
35
-34-
LSB
1123YH
(6)
90
pf/jh
34/
52
H.F.
21
one-half
of
the
license
fee
provided
for
in
this
section
.
1
7.
The
director,
upon
receipt
of
the
application,
and
2
bond
in
the
case
of
the
distributor,
in
proper
form,
and
3
payment
of
the
applicable
license
fee
required
by
subsection
4
4
or
subsection
5
under
this
section
,
shall
unless
otherwise
5
provided
by
this
subchapter
,
issue
the
applicant
a
license
in
6
form
as
prescribed
by
the
director
,
which
.
The
license
shall
7
permit
the
applicant
to
whom
it
is
issued
to
engage
in
business
8
as
a
distributor
or
subjobber
at
the
place
of
business
shown
in
9
the
application.
The
director
shall
assign
a
permit
number
to
10
each
person
licensed
as
a
distributor
at
the
time
of
issuance
11
of
the
person’s
first
license,
which
shall
be
inscribed
upon
12
all
licenses
issued
to
that
distributor.
13
8.
Each
license
shall
expire
on
June
30
following
its
14
date
of
issue
unless
sooner
revoked
by
the
director
or
unless
15
the
business
with
respect
to
which
the
license
was
issued
is
16
transferred.
In
either
case
the
holder
of
the
license
shall
17
immediately
surrender
it
to
the
director.
18
9.
No
A
license
shall
not
be
transferable
to
any
other
19
person.
20
10.
The
director
may
revoke,
cancel,
or
suspend
the
license
21
or
licenses
of
any
distributor
or
subjobber
for
violation
of
22
any
of
the
provisions
of
this
subchapter
,
or
any
other
act
23
applicable
to
the
sale
of
tobacco
products
or
nicotine
solution
24
products
,
or
any
rule
or
regulations
promulgated
by
the
25
director
in
furtherance
of
this
subchapter
.
No
A
license
shall
26
not
be
revoked,
canceled,
or
suspended
except
after
notice
and
27
a
hearing
by
the
director
as
provided
in
section
453A.48
.
28
11.
No
A
license
shall
not
be
issued
under
this
29
subchapter
to
any
person
within
one
year
of
the
date
of
final
30
determination
of
a
revocation
of
any
previous
license
held
by
31
the
person.
32
12.
When
the
surety
upon
any
bond
issued
pursuant
to
the
33
provisions
of
this
subchapter
shall
have
has
fulfilled
the
34
conditions
of
such
the
bond
and
compensated
the
state
for
any
35
-35-
LSB
1123YH
(6)
90
pf/jh
35/
52
H.F.
21
loss
occasioned
by
any
act
or
omission
of
the
person
bonded
1
under
this
subchapter
,
such
the
surety
shall
be
subrogated
to
2
all
the
rights
of
the
state
in
connection
with
the
transaction
3
wherein
such
that
resulted
in
the
loss
occurred
.
4
Sec.
35.
Section
453A.45,
Code
2023,
is
amended
to
read
as
5
follows:
6
453A.45
Licensees,
duties.
7
1.
a.
Every
distributor
shall
keep
at
each
licensed
place
8
of
business
complete
and
accurate
records
for
that
place
of
9
business,
including
itemized
invoices,
of
tobacco
products
10
or
nicotine
solution
products
held,
purchased,
manufactured,
11
brought
in
or
caused
to
be
brought
in
from
without
the
state,
12
or
shipped
or
transported
to
retailers
in
this
state,
and
of
13
all
sales
of
tobacco
products
or
nicotine
solution
products
14
made,
except
sales
to
the
ultimate
consumer.
15
b.
When
a
licensed
distributor
sells
tobacco
products
16
or
nicotine
solution
products
exclusively
to
the
ultimate
17
consumer
at
the
address
given
in
the
license,
an
invoice
of
18
those
sales
is
not
required,
but
itemized
invoices
shall
be
19
made
of
all
tobacco
products
or
nicotine
solution
products
20
transferred
to
other
retail
outlets
owned
or
controlled
by
that
21
licensed
distributor.
All
books,
records,
and
other
papers
22
and
documents
required
by
this
subsection
to
be
kept
shall
23
be
preserved
for
a
period
of
at
least
three
years
after
the
24
date
of
the
documents
or
the
date
of
the
entries
appearing
25
in
the
records,
unless
the
director,
in
writing,
authorized
26
their
destruction
or
disposal
at
an
earlier
date.
At
any
time
27
during
usual
business
hours,
the
director,
or
the
director’s
28
duly
authorized
agents
or
employees,
may
enter
any
place
of
29
business
of
a
distributor,
without
a
search
warrant,
and
30
inspect
the
premises,
the
records
required
to
be
kept
under
31
this
subsection
,
and
the
tobacco
products
or
nicotine
solution
32
products
contained
therein
at
the
place
of
business
,
to
33
determine
if
all
the
provisions
of
full
compliance
with
this
34
subchapter
are
being
fully
complied
with
.
If
the
director,
35
-36-
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1123YH
(6)
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36/
52
H.F.
21
or
any
such
agent
or
employee
of
the
director
,
is
denied
1
free
access
or
is
hindered
or
interfered
with
in
making
the
2
examination,
the
license
of
the
distributor
at
that
premises
is
3
subject
to
revocation
by
the
director.
4
2.
Every
person
who
sells
tobacco
products
or
nicotine
5
solution
products
to
persons
other
than
the
ultimate
consumer
6
shall
render
with
each
sale
itemized
invoices
showing
the
7
seller’s
name
and
address,
the
purchaser’s
name
and
address,
8
the
date
of
sale,
and
all
prices
and
discounts.
The
person
9
shall
preserve
legible
copies
of
all
these
invoices
for
three
10
years
from
the
date
of
sale.
11
3.
Every
retailer
and
subjobber
shall
procure
itemized
12
invoices
of
all
tobacco
products
or
nicotine
solution
products
13
purchased.
The
invoices
shall
show
the
name
and
address
of
the
14
seller
and
the
date
of
purchase.
The
retailer
and
subjobber
15
shall
preserve
a
legible
copy
of
each
invoice
for
three
16
years
from
the
date
of
purchase.
Invoices
shall
be
available
17
for
inspection
by
the
director
or
the
director’s
authorized
18
agents
or
employees
at
the
retailer’s
or
subjobber’s
place
of
19
business.
20
4.
Records
of
all
deliveries
or
shipments
of
tobacco
21
products
or
nicotine
solution
products
from
any
public
22
warehouse
of
first
destination
in
this
state
which
is
subject
23
to
the
provisions
of
and
licensed
under
chapter
554
shall
be
24
kept
by
the
warehouse
and
be
available
to
the
director
for
25
inspection.
They
The
records
shall
show
the
name
and
address
26
of
the
consignee,
the
date,
the
quantity
of
tobacco
products
27
or
nicotine
solution
products
delivered,
and
such
other
28
information
as
the
commissioner
director
may
require.
These
29
The
records
shall
be
preserved
for
three
years
from
the
date
of
30
delivery
of
the
tobacco
products
or
nicotine
solution
products
.
31
5.
a.
The
transportation
of
tobacco
products
or
nicotine
32
solution
products
into
this
state
by
means
other
than
common
33
carrier
must
shall
be
reported
to
the
director
within
thirty
34
days
with
the
following
exceptions:
35
-37-
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H.F.
21
(1)
The
transportation
of
not
more
than
fifty
cigars,
not
1
more
than
ten
ounces
of
snuff
or
snuff
powder,
or
not
more
2
than
one
pound
of
smoking
or
chewing
tobacco
or
other
tobacco
3
products
not
specifically
mentioned
herein;
specified
in
this
4
subparagraph.
5
(2)
Transportation
by
a
person
with
a
place
of
business
6
outside
the
state,
who
is
licensed
as
a
distributor
under
7
section
453A.44
,
or
tobacco
products
or
nicotine
solution
8
products
sold
by
such
person
to
a
retailer
in
this
state.
9
b.
The
report
shall
be
made
on
forms
provided
by
the
10
director.
The
director
may
require
by
rule
that
the
report
be
11
filed
by
electronic
transmission.
12
c.
Common
carriers
transporting
tobacco
products
or
nicotine
13
solution
products
into
this
state
shall
file
with
the
director
14
reports
of
all
such
shipments
other
than
those
which
are
15
delivered
to
public
warehouses
of
first
destination
in
this
16
state
which
are
licensed
under
the
provisions
of
chapter
554
.
17
Such
The
reports
shall
be
filed
on
or
before
the
tenth
day
of
18
each
month
and
shall
show
with
respect
to
deliveries
made
in
19
the
preceding
month
all
of
the
following:
20
(1)
The
date.
21
(2)
The
point
of
origin.
22
(3)
The
point
of
delivery.
23
(4)
The
name
of
the
consignee.
24
(5)
A
description
and
the
quantity
of
tobacco
products
or
25
nicotine
solution
products
delivered.
26
(6)
Such
other
information
as
the
director
may
require.
27
d.
Any
person
who
fails
or
refuses
to
transmit
to
the
28
director
the
required
reports
or
whoever
who
refuses
to
permit
29
the
examination
of
the
records
by
the
director
shall
be
guilty
30
of
a
serious
misdemeanor.
31
Sec.
36.
Section
453A.46,
Code
2023,
is
amended
to
read
as
32
follows:
33
453A.46
Distributors
,
——
monthly
returns
,
——
interest,
and
34
penalties.
35
-38-
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21
1.
a.
On
or
before
the
twentieth
day
of
each
calendar
1
month
every
distributor
with
a
place
of
business
in
this
state
2
shall
file
a
return
with
the
director
showing
for
the
preceding
3
calendar
month
the
quantity
and
wholesale
sales
price
of
each
4
tobacco
product
or
nicotine
solution
product
brought
,
or
caused
5
to
be
brought
,
into
this
state
for
sale
;
or
made,
manufactured,
6
or
fabricated
in
this
state
for
sale
in
this
state
;
,
and
any
7
other
information
the
director
may
require.
Every
licensed
8
distributor
outside
this
state
shall
in
like
manner
file
a
9
return
with
the
director
showing
for
the
preceding
calendar
10
month
the
quantity
and
wholesale
sales
price
of
each
tobacco
11
product
or
nicotine
solution
product
shipped
or
transported
12
to
retailers
in
this
state
to
be
sold
by
those
retailers
and
13
any
other
information
the
director
may
require.
Returns
shall
14
be
made
upon
forms
furnished
or
made
available
in
electronic
15
form
and
prescribed
by
the
director
and
shall
contain
other
16
information
as
the
director
may
require.
Each
return
shall
be
17
accompanied
by
a
remittance
for
the
full
tax
liability
shown
18
on
the
return,
less
a
discount
as
fixed
by
the
director
not
to
19
exceed
five
percent
of
the
tax.
Within
three
years
after
the
20
return
is
filed
or
within
three
years
after
the
return
became
21
due,
whichever
is
later,
the
department
shall
examine
it
the
22
return
,
determine
the
correct
amount
of
tax,
and
assess
the
23
tax
against
the
taxpayer
for
any
deficiency.
The
period
for
24
examination
and
determination
of
the
correct
amount
of
tax
is
25
unlimited
in
the
case
of
a
false
or
fraudulent
return
made
with
26
the
intent
to
evade
tax
,
or
in
the
case
of
a
failure
to
file
a
27
return.
28
b.
The
three-year
limitation
period
may
be
extended
by
a
29
taxpayer
by
signing
a
waiver
agreement
form
provided
by
the
30
department.
The
agreement
must
shall
stipulate
the
extension
31
period
and
the
tax
period
to
which
the
extension
applies.
The
32
agreement
must
shall
also
stipulate
that
a
claim
for
refund
33
may
be
filed
by
the
taxpayer
at
any
time
during
the
extension
34
period.
35
-39-
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1123YH
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52
H.F.
21
2.
a.
All
taxes
shall
be
due
and
payable
not
later
than
1
the
twentieth
day
of
the
month
following
the
calendar
month
in
2
which
they
the
taxes
were
incurred,
and
shall
bear
interest
at
3
the
rate
in
effect
under
section
421.7
counting
each
fraction
4
of
a
month
as
an
entire
month
,
computed
from
the
date
the
tax
5
was
due.
6
b.
The
director
may
reduce
or
abate
interest
when
in
7
the
director’s
opinion
the
facts
warrant
the
reduction
or
8
abatement.
The
exercise
of
this
power
shall
be
subject
to
the
9
approval
of
the
attorney
general.
10
3.
In
addition
to
the
tax
or
additional
tax,
the
taxpayer
11
shall
also
pay
a
penalty
as
provided
in
section
421.27
and
12
shall
be
subject
to
the
civil
penalties
set
forth
specified
13
in
sections
421.27
;
453A.31,
subsection
1
,
paragraph
“b”
;
and
14
453A.50,
subsection
3,
as
applicable.
15
4.
The
department
shall
notify
any
person
assessed
16
pursuant
to
this
section
by
sending
a
written
notice
of
the
17
determination
by
mail
to
the
principal
place
of
business
of
the
18
person
as
shown
on
the
person’s
application
for
permit,
and
if
19
an
application
was
not
filed
by
the
person,
to
the
person’s
20
last
known
address.
A
determination
by
the
department
of
21
the
amount
of
tax,
penalty,
and
interest
due,
or
the
amount
22
of
refund
for
excess
tax
paid,
is
final,
unless
the
person
23
aggrieved
by
the
determination
appeals
to
the
director
for
a
24
revision
of
the
determination
within
sixty
days
from
the
date
25
of
the
notice
of
determination
of
tax,
penalty,
and
interest
or
26
refund
owing
or
unless
the
taxpayer
contests
the
determination
27
by
paying
the
tax,
interest,
and
penalty
and
timely
filing
a
28
claim
for
a
refund.
The
director
shall
grant
a
hearing
and
29
upon
the
hearing,
the
director
shall
determine
the
correct
tax,
30
penalty,
and
interest
or
refund
due
and
notify
the
appellant
31
of
the
decision
by
mail.
Judicial
review
of
action
of
the
32
director
may
be
sought
in
accordance
with
chapter
17A
and
33
section
422.29
.
34
5.
The
director
may
recover
the
amount
of
any
tax
due
and
35
-40-
LSB
1123YH
(6)
90
pf/jh
40/
52
H.F.
21
unpaid,
interest,
and
any
penalty
in
a
civil
action.
The
1
collection
of
such
a
tax,
interest,
or
penalty
shall
not
be
a
2
bar
to
any
prosecution
under
this
subchapter
.
3
6.
On
or
before
the
twentieth
day
of
each
calendar
month,
4
every
consumer
who,
during
the
preceding
calendar
month,
has
5
acquired
title
to
or
possession
of
tobacco
products
or
nicotine
6
solution
products
for
use
or
storage
in
this
state,
upon
which
7
tobacco
products
or
nicotine
solution
products
the
tax
imposed
8
by
section
453A.43
or
section
453A.43A
has
not
been
paid,
shall
9
file
a
return
with
the
director
showing
the
quantity
of
tobacco
10
products
so
or
nicotine
solution
products
acquired.
The
return
11
shall
be
made
upon
a
form
furnished
and
prescribed
by
the
12
director,
and
shall
contain
other
information
as
the
director
13
may
require.
The
return
shall
be
accompanied
by
a
remittance
14
for
the
full
unpaid
tax
liability
shown
by
it
the
return
.
15
Within
three
years
after
the
return
is
filed
or
within
three
16
years
after
the
return
became
due,
whichever
is
later,
the
17
department
shall
examine
it
the
return
,
determine
the
correct
18
amount
of
tax,
and
assess
the
tax
against
the
taxpayer
for
any
19
deficiency.
The
period
for
examination
and
determination
of
20
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
21
fraudulent
return
made
with
the
intent
to
evade
tax
,
or
in
the
22
case
of
a
failure
to
file
a
return.
23
7.
The
director
may
require
by
rule
that
returns
be
filed
by
24
electronic
transmission.
25
Sec.
37.
Section
453A.47,
Code
2023,
is
amended
to
read
as
26
follows:
27
453A.47
Refunds
,
and
credits.
28
Where
tobacco
products
or
nicotine
solution
products
upon
29
which
the
tax
imposed
by
this
subchapter
has
been
reported
and
30
paid
are
shipped
or
transported
by
the
distributor
to
consumers
31
to
be
consumed
without
the
state
or
to
retailers
or
subjobbers
32
without
the
state
to
be
sold
by
those
retailers
or
subjobbers
33
without
the
state
or
are
returned
to
the
manufacturer
by
the
34
distributor
or
destroyed
by
the
distributor,
refund
of
such
the
35
-41-
LSB
1123YH
(6)
90
pf/jh
41/
52
H.F.
21
tax
or
credit
may
be
made
to
the
distributor
in
accordance
with
1
regulations
prescribed
by
the
director.
Any
overpayment
of
the
2
tax
imposed
under
section
453A.43
or
section
453A.43A
may
be
3
made
to
the
taxpayer
in
accordance
with
regulations
prescribed
4
by
the
director.
The
director
shall
cause
any
such
refund
of
5
a
tax
to
be
paid
out
of
the
general
fund
of
the
state,
and
so
6
much
of
said
the
general
fund
as
may
be
necessary
is
hereby
7
appropriated
for
that
purpose.
8
Sec.
38.
Section
453A.47A,
Code
2023,
is
amended
to
read
as
9
follows:
10
453A.47A
Retailers
——
permits
——
fees
——
penalties.
11
1.
Permits
required.
A
person
shall
not
engage
in
12
the
business
of
a
retailer
of
tobacco,
tobacco
products,
13
alternative
nicotine
products,
or
vapor
products
,
or
nicotine
14
solution
products
at
any
place
of
business,
or
through
delivery
15
sales,
without
first
having
received
a
permit
as
a
retailer.
16
2.
No
sales
without
permit.
A
retailer
shall
not
sell
17
any
tobacco,
tobacco
products,
alternative
nicotine
products,
18
or
vapor
products
,
or
nicotine
solution
products
until
19
an
application
has
been
filed
,
and
the
fee
prescribed
for
20
the
permit
paid
,
for
a
permit
and
until
such
the
permit
is
21
obtained
,
and
only
while
such
the
permit
is
not
suspended,
22
unrevoked,
or
unexpired.
23
3.
Number
of
permits.
An
application
shall
be
filed
and
a
24
permit
obtained
for
each
place
of
business
owned
or
operated
by
25
a
retailer
located
in
the
state.
If
an
out-of-state
retailer
26
makes
delivery
sales
of
alternative
nicotine
products
,
or
vapor
27
products,
or
nicotine
solution
products,
an
application
shall
28
be
filed
with
the
department
and
a
permit
shall
be
issued
for
29
the
out-of-state
retailer’s
principal
place
of
business.
30
4.
Retailer
——
multiple
permits
not
required
——
effect
of
31
suspension.
A
retailer,
as
defined
in
section
453A.1
,
who
holds
32
a
permit
under
subchapter
I
of
this
chapter
is
not
required
to
33
also
obtain
a
retail
permit
under
this
subchapter
.
However,
34
if
a
retailer,
as
defined
in
section
453A.1
,
only
holds
a
35
-42-
LSB
1123YH
(6)
90
pf/jh
42/
52
H.F.
21
permit
under
subchapter
I
of
this
chapter
and
that
permit
is
1
suspended,
revoked,
or
expired,
the
retailer
shall
not
sell
any
2
tobacco,
tobacco
products,
alternative
nicotine
products,
or
3
vapor
products
,
or
nicotine
solution
products
during
the
time
4
which
the
permit
is
suspended,
revoked,
or
expired.
5
5.
Separate
permit.
A
separate
retail
permit
shall
be
6
required
of
a
distributor
or
subjobber
if
the
distributor
or
7
subjobber
sells
tobacco,
tobacco
products,
alternative
nicotine
8
products,
or
vapor
products
,
or
nicotine
solution
products
at
9
retail.
10
6.
Issuance.
Cities
may
issue
retail
permits
to
retailers
11
located
within
their
respective
limits.
County
boards
of
12
supervisors
may
issue
retail
permits
to
retailers
located
in
13
their
respective
counties,
outside
of
the
corporate
limits
of
14
cities.
The
city
or
county
shall
submit
a
duplicate
of
any
15
application
for
a
retail
permit
to
the
alcoholic
beverages
16
division
of
the
department
of
commerce
within
thirty
days
of
17
issuance
of
a
permit.
The
alcoholic
beverages
division
of
the
18
department
of
commerce
shall
submit
the
current
list
of
all
19
retail
permits
issued
to
the
Iowa
department
of
public
health
20
and
human
services
by
the
last
day
of
each
quarter
of
a
state
21
fiscal
year.
22
7.
Fees
——
expiration.
23
a.
All
permits
provided
for
in
this
subchapter
shall
expire
24
on
June
30
of
each
year.
A
permit
shall
not
be
granted
or
25
issued
until
the
applicant
has
paid
the
fees
provided
for
in
26
this
section
for
the
period
ending
June
30
next,
to
the
city
or
27
county
granting
the
permit.
The
fee
for
retail
permits
is
as
28
follows
when
the
permit
is
granted
during
the
month
of
July,
29
August,
or
September:
30
(1)
In
places
outside
any
city,
fifty
dollars.
31
(2)
In
cities
of
less
than
fifteen
thousand
population,
32
seventy-five
dollars.
33
(3)
In
cities
of
fifteen
thousand
or
more
population,
one
34
hundred
dollars.
35
-43-
LSB
1123YH
(6)
90
pf/jh
43/
52
H.F.
21
b.
If
any
permit
is
granted
during
the
month
of
October,
1
November,
or
December,
the
fee
shall
be
three-fourths
of
the
2
above
maximum
schedule;
if
granted
during
the
month
of
January,
3
February,
or
March,
one-half
of
the
maximum
schedule;
and
if
4
granted
during
the
month
of
April,
May,
or
June,
one-fourth
of
5
the
maximum
schedule.
6
8.
Refunds.
7
a.
An
unrevoked
permit
for
which
the
retailer
paid
the
full
8
annual
fee
may
be
surrendered
during
the
first
nine
months
of
9
the
year
to
the
officer
issuing
it,
and
the
city
or
county
10
granting
the
permit
shall
make
refunds
to
the
retailer
as
11
follows:
12
(1)
Three-fourths
of
the
annual
fee
if
the
surrender
is
made
13
during
July,
August,
or
September.
14
(2)
One-half
of
the
annual
fee
if
the
surrender
is
made
15
during
October,
November,
or
December.
16
(3)
One-fourth
of
the
annual
fee
if
the
surrender
is
made
17
during
January,
February,
or
March.
18
b.
An
unrevoked
permit
for
which
the
retailer
has
paid
19
three-fourths
of
a
full
annual
fee
may
be
surrendered
during
20
the
first
six
months
of
the
period
covered
by
the
payment,
21
and
the
city
or
county
shall
make
refunds
to
the
retailer
as
22
follows:
23
(1)
A
sum
equal
to
one-half
of
an
annual
fee
if
the
24
surrender
is
made
during
October,
November,
or
December.
25
(2)
A
sum
equal
to
one-fourth
of
an
annual
fee
if
the
26
surrender
is
made
during
January,
February,
or
March.
27
c.
An
unrevoked
permit
for
which
the
retailer
has
paid
28
one-half
of
a
full
annual
fee
may
be
surrendered
during
the
29
first
three
months
of
the
period
covered
by
the
payment,
and
30
the
city
or
county
shall
refund
to
the
retailer
a
sum
equal
to
31
one-fourth
of
an
annual
fee.
32
9.
Application.
Retail
permits
shall
be
issued
only
upon
33
applications,
accompanied
by
the
fee
indicated
above
under
34
this
section
,
made
upon
forms
furnished
by
the
department
upon
35
-44-
LSB
1123YH
(6)
90
pf/jh
44/
52
H.F.
21
written
request.
The
failure
to
furnish
such
the
forms
shall
1
not
be
no
an
excuse
for
the
failure
to
file
the
form
unless
2
absolute
refusal
is
shown.
The
forms
shall
specify:
3
a.
The
manner
under
which
the
retailer
transacts
or
intends
4
to
transact
business
as
a
retailer.
5
b.
The
principal
office,
residence,
and
place
of
business,
6
for
which
the
permit
is
to
apply
applies
.
7
c.
If
the
applicant
is
not
an
individual,
the
principal
8
officers
or
members
of
the
applicant,
not
to
exceed
three,
and
9
their
addresses.
10
d.
Such
other
information
as
the
director
shall
by
rules
11
prescribe
prescribes
by
rule
.
12
10.
Records
and
reports
of
retailers.
13
a.
The
director
shall
prescribe
the
forms
necessary
for
14
the
efficient
administration
of
this
section
and
may
require
15
uniform
books
and
records
to
be
used
and
kept
by
each
retailer
16
or
other
person
as
deemed
necessary.
17
b.
Every
retailer
shall,
when
requested
by
the
department,
18
make
additional
reports
as
the
department
deems
necessary
and
19
proper
and
shall
at
the
request
of
the
department
furnish
full
20
and
complete
information
pertaining
to
any
transaction
of
the
21
retailer
involving
the
purchase
or
sale
or
use
of
tobacco,
22
tobacco
products,
alternative
nicotine
products,
or
vapor
23
products
,
or
nicotine
solution
products
.
24
11.
Penalties.
The
permit
suspension
and
revocation
25
provisions
and
the
civil
penalties
established
in
section
26
453A.22
shall
apply
to
retailers
under
this
subchapter
,
in
27
addition
to
any
other
penalties
imposed
under
this
subchapter
.
28
Sec.
39.
Section
453A.47B,
Code
2023,
is
amended
to
read
as
29
follows:
30
453A.47B
Requirements
for
mailing
or
shipping
——
alternative
31
nicotine
products
,
or
vapor
products
,
or
nicotine
solution
32
products
.
33
A
retailer
shall
not
mail,
ship,
or
otherwise
cause
to
be
34
delivered
any
alternative
nicotine
product
,
or
vapor
product
,
35
-45-
LSB
1123YH
(6)
90
pf/jh
45/
52
H.F.
21
or
nicotine
solution
product
in
connection
with
a
delivery
sale
1
unless
the
retailer
meets
all
of
the
following
conditions:
2
1.
Prior
to
sale
to
the
purchaser,
the
retailer
verifies
3
that
the
purchaser
is
at
least
twenty-one
years
of
age
through
4
or
by
one
of
the
following:
5
a.
A
commercially
available
database,
or
aggregate
of
6
databases,
that
is
regularly
used
by
government
and
businesses
7
for
the
purpose
of
age
and
identity
verification.
8
b.
Obtaining
a
copy
of
a
valid
government-issued
document
9
that
provides
the
name,
address,
and
date
of
birth
of
the
10
purchaser.
11
2.
The
retailer
uses
a
method
of
mailing,
shipping,
or
12
delivery
that
requires
the
signature
of
a
person
who
is
at
13
least
twenty-one
years
of
age
before
the
shipping
package
is
14
released
to
the
purchaser.
15
Sec.
40.
Section
453A.47C,
Code
2023,
is
amended
to
read
as
16
follows:
17
453A.47C
Sales
and
use
tax
on
delivery
sales
——
alternative
18
nicotine
products
,
or
vapor
products
,
or
nicotine
solution
19
products
.
20
1.
A
delivery
sale
of
alternative
nicotine
products
,
or
21
vapor
products
,
or
nicotine
solution
products
within
this
state
22
shall
be
subject
to
the
sales
tax
provided
in
chapter
423,
23
subchapter
II
.
24
2.
The
use
in
this
state
of
alternative
nicotine
products
,
25
or
vapor
products
,
or
nicotine
solution
products
purchased
for
26
use
in
this
state
through
a
delivery
sale
shall
be
subject
to
27
the
use
tax
provided
in
chapter
423,
subchapter
III
.
28
3.
A
retailer
required
to
possess
or
possessing
a
permit
29
under
section
453A.13
or
453A.47A
to
make
delivery
sales
of
30
alternative
nicotine
products
,
or
vapor
products
,
or
nicotine
31
solution
products
within
this
state
shall
be
deemed
to
have
32
waived
all
claims
that
such
retailer
lacks
physical
presence
33
within
this
state
for
purposes
of
collecting
and
remitting
34
sales
and
use
tax.
35
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4.
A
retailer
making
taxable
delivery
sales
of
alternative
1
nicotine
products
,
or
vapor
products
,
or
nicotine
solution
2
product
within
this
state
shall
remit
to
the
department
all
3
sales
and
use
tax
due
on
such
sales
at
the
times
and
in
the
4
manner
provided
by
chapter
423
.
5
5.
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
6
administer
this
section
.
7
Sec.
41.
Section
453A.48,
Code
2023,
is
amended
to
read
as
8
follows:
9
453A.48
Investigations
,
and
hearings,
and
testimonial
powers.
10
1.
The
director
,
or
the
director’s
duly
authorized
agents
,
11
may
conduct
investigations,
inquiries,
and
hearings
for
the
12
purpose
of
enforcing
the
provisions
of
this
subchapter
,
and
,
in
13
connection
with
such
investigations,
inquiries,
and
hearings,
14
the
director
and
the
director’s
duly
authorized
agents
shall
15
have
all
the
powers
conferred
upon
the
director
and
the
16
director’s
examiners
by
Iowa
statutes
law
,
and
the
provisions
17
of
such
these
laws
shall
apply
to
all
such
investigations,
18
inquiries
,
and
hearings.
19
2.
A
hearing
conducted
under
this
subchapter
shall
be
20
preceded
by
ten
days’
notice
in
writing
of
the
subject
of
the
21
hearing,
including
,
in
the
case
of
suspension
or
revocation
of
22
a
license
,
a
statement
of
the
nature
of
the
charges
against
23
the
licensee.
The
notice
shall
be
sent
by
mail
to
the
last
24
known
address
of
the
licensee
or
other
person
involved
in
the
25
hearing,
and
the
service
shall
be
complete
upon
mailing.
After
26
every
hearing
the
director
shall
make
the
director’s
written
27
findings
and
an
order
in
writing
.
The
findings
and
order
shall
28
be
filed
in
the
office
of
the
director,
and
a
copy
sent
by
mail
29
or
otherwise
to
the
person
to
whom
the
notice
was
directed.
30
3.
The
director
may
exchange
information
with
the
officers
31
and
agencies
of
other
states
administering
laws
relating
to
the
32
taxation
of
tobacco
products
or
nicotine
solution
products
.
33
4.
No
A
person
shall
not
be
excused
from
testifying
or
34
from
producing,
pursuant
to
a
subpoena,
any
books,
papers,
35
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records
,
or
memoranda
in
any
investigation
or
upon
any
hearing,
1
upon
the
ground
that
the
testimony
or
evidence,
documentary
or
2
otherwise,
may
tend
to
incriminate
the
person
or
subject
the
3
person
to
a
criminal
penalty
,
but
no
.
However,
a
person
shall
4
not
be
prosecuted
or
subjected
to
any
criminal
penalty
for
or
5
on
account
of
any
transaction