House
File
2677
-
Reprinted
HOUSE
FILE
2677
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
682)
(As
Amended
and
Passed
by
the
House
April
3,
2024
)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
vapor
products,
and
1
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
HF
2677
(3)
90
pf/jh/md
H.F.
2677
Section
1.
Section
453A.19,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
5.
For
the
purpose
of
enabling
the
3
department
to
determine
compliance
with
subchapter
III,
the
4
department
shall
have
the
right
to
inspect
any
premises
of
the
5
holder
of
an
Iowa
permit
located
within
the
state
of
Iowa
where
6
vapor
products
are
stored,
transported,
sold,
or
offered
for
7
sale
or
exchanged,
to
examine
all
stocks
of
vapor
products
of
8
the
permit
holder,
and
to
examine
all
of
the
records
required
9
to
be
kept
or
any
other
records
that
may
be
kept
incident
to
10
the
conduct
of
the
vapor
products
business
of
the
permit
holder
11
or
any
other
person
dealing
in
vapor
products.
It
shall
be
12
unlawful
for
any
such
permit
holder
to
fail
to
produce
upon
13
demand
of
the
department
any
records
required
to
be
kept,
or
to
14
hinder
or
prevent
in
any
manner
the
inspection
of
the
records
15
or
the
examination
of
the
premises
or
stock
as
specified
in
16
this
subsection.
17
Sec.
2.
Section
453A.35,
subsection
1,
paragraph
b,
Code
18
2024,
is
amended
to
read
as
follows:
19
b.
The
revenues
generated
from
the
tax
on
cigarettes
20
pursuant
to
section
453A.6,
subsection
1
,
and
from
the
tax
on
21
tobacco
products
as
specified
in
section
453A.43,
subsections
22
1,
2,
3,
and
4
,
and
from
the
fees
and
penalties
specified
in
23
subchapter
III
shall
be
credited
to
the
health
care
trust
fund
24
created
in
section
453A.35A
.
25
Sec.
3.
Section
453A.35A,
Code
2024,
is
amended
to
read
as
26
follows:
27
453A.35A
Health
care
trust
fund.
28
1.
A
health
care
trust
fund
is
created
in
the
office
of
29
the
treasurer
of
state.
The
fund
consists
of
the
revenues
30
generated
from
the
tax
on
cigarettes
pursuant
to
section
31
453A.6,
subsection
1
,
and
from
the
tax
on
tobacco
products
32
as
specified
in
section
453A.43,
subsections
1,
2,
3,
and
4
,
33
and
from
the
fees
and
penalties
specified
in
subchapter
III,
34
that
are
credited
to
the
health
care
trust
fund,
annually,
35
-1-
HF
2677
(3)
90
pf/jh/md
1/
9
H.F.
2677
pursuant
to
section
453A.35
.
Moneys
in
the
fund
shall
be
1
separate
from
the
general
fund
of
the
state
and
shall
not
be
2
considered
part
of
the
general
fund
of
the
state.
However,
the
3
fund
shall
be
considered
a
special
account
for
the
purposes
4
of
section
8.53
relating
to
generally
accepted
accounting
5
principles.
Moneys
in
the
fund
shall
be
used
only
as
specified
6
in
this
section
and
shall
be
appropriated
only
for
the
uses
7
specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
8
and
shall
not
be
transferred,
used,
obligated,
appropriated,
9
or
otherwise
encumbered,
except
as
provided
in
this
section
.
10
Notwithstanding
section
12C.7,
subsection
2
,
interest
or
11
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
12
the
fund.
13
2.
Moneys
in
the
fund
shall
be
used
only
for
purposes
14
related
to
health
care,
substance
use
disorder
treatment
and
15
prevention,
and
tobacco
use
prevention,
cessation,
and
control
,
16
including
but
not
limited
to
the
administration
and
enforcement
17
of
subchapter
III
.
18
Sec.
4.
NEW
SECTION
.
453A.52
Vapor
products
directory
——
19
established
——
requirements.
20
1.
By
August
1,
annually,
following
the
date
the
director
21
first
makes
the
vapor
products
directory
available
as
specified
22
in
section
453A.52A,
every
vapor
products
manufacturer
where
23
vapor
products
are
sold
in
the
state,
whether
directly
or
24
through
a
distributor,
wholesaler,
retailer,
or
similar
25
intermediary
or
intermediaries,
shall
certify
under
penalty
of
26
perjury
on
a
form
and
in
the
manner
prescribed
by
the
director,
27
that
the
vapor
products
manufacturer
agrees
to
comply
with
this
28
subchapter
and
to
one
of
the
following:
29
a.
That
the
vapor
products
manufacturer
has
received
a
30
marketing
authorization
or
similar
order
for
the
vapor
product
31
from
the
United
States
food
and
drug
administration
pursuant
32
to
21
U.S.C.
§387j.
33
b.
That
the
vapor
product
was
marketed
in
the
United
34
States
as
of
August
8,
2016,
the
vapor
products
manufacturer
35
-2-
HF
2677
(3)
90
pf/jh/md
2/
9
H.F.
2677
submitted
a
premarket
tobacco
product
application
for
the
vapor
1
product
to
the
United
States
food
and
drug
administration
2
pursuant
to
21
U.S.C.
§387j
on
or
before
September
9,
2020,
3
and
the
application
either
remains
under
review
by
the
United
4
States
food
and
drug
administration
or
a
final
decision
on
the
5
application
has
not
otherwise
taken
effect.
6
2.
A
vapor
products
manufacturer
shall
submit
a
7
certification
form
that
separately
lists
each
of
the
vapor
8
products
manufacturer’s
vapor
products
sold
in
this
state.
9
3.
Each
initial
and
annual
certification
form
required
to
10
be
submitted
under
this
section
shall
be
accompanied
by
both
11
of
the
following:
12
a.
A
copy
of
the
marketing
authorization
or
other
order
13
for
each
vapor
product
issued
by
the
United
States
food
and
14
drug
administration
pursuant
to
21
U.S.C.
§387j,
or
evidence
15
that
the
premarket
tobacco
product
application
for
each
vapor
16
product
was
submitted
to
the
United
States
food
and
drug
17
administration
and
a
final
authorization
or
order
has
not
yet
18
taken
effect.
19
b.
A
payment
of
one
hundred
dollars
for
each
vapor
product
20
listed
in
the
certification.
21
4.
A
vapor
products
manufacturer
required
to
submit
a
22
certification
form
under
this
section
shall
notify
the
director
23
within
thirty
business
days
of
any
material
change
to
the
24
certification
form,
including
the
issuance
or
denial
of
a
25
marketing
authorization
or
other
order
by
the
United
States
26
food
and
drug
administration
pursuant
to
21
U.S.C.
§387j,
or
27
any
other
order
or
action
by
the
United
States
food
and
drug
28
administration
that
affects
the
authorization
of
the
vapor
29
product
to
be
introduced
or
delivered
into
interstate
commerce
30
for
commercial
distribution
in
the
United
States.
31
5.
a.
The
director
shall
maintain
and
make
publicly
32
available
a
vapor
products
directory
that
lists
all
33
vapor
products
manufacturers
and
vapor
products
for
which
34
certification
forms
have
been
submitted.
35
-3-
HF
2677
(3)
90
pf/jh/md
3/
9
H.F.
2677
b.
The
director
shall
make
the
directory
available
on
the
1
department’s
internet
site.
2
c.
The
director
shall
update
the
directory
as
necessary
in
3
order
to
correct
mistakes,
ensure
accuracy,
and
add
or
remove
4
vapor
products
on
at
least
a
monthly
basis.
5
d.
The
director
shall
notify
each
retailer,
distributor,
and
6
wholesaler
of
any
change
to
the
directory
on
at
least
a
monthly
7
basis
via
electronic
communication.
8
6.
a.
The
director
shall
provide
a
vapor
products
9
manufacturer
with
notice
and
an
opportunity
to
cure
10
deficiencies
before
removing
the
vapor
products
manufacturer
or
11
a
vapor
product
from
the
directory.
12
b.
The
director
shall
not
remove
a
vapor
products
13
manufacturer
or
the
vapor
products
manufacturer’s
vapor
product
14
from
the
directory
until
at
least
fifteen
business
days
after
15
the
vapor
products
manufacturer
has
been
given
notice
of
an
16
intended
action.
Notice
shall
be
sufficient
and
be
deemed
17
immediately
received
by
a
vapor
products
manufacturer
if
the
18
notice
is
sent
either
electronically
or
by
facsimile
to
an
19
electronic
mail
address
or
facsimile
number,
as
applicable,
20
provided
by
the
vapor
products
manufacturer
in
the
vapor
21
products
manufacturer’s
most
recent
certification
filed
under
22
this
section.
23
c.
The
vapor
products
manufacturer
shall
have
fifteen
24
business
days
from
the
date
of
service
of
the
notice
of
25
intended
action
to
establish
that
the
vapor
products
26
manufacturer
or
the
vapor
product
should
be
included
in
the
27
directory.
28
d.
A
determination
by
the
director
to
not
include
or
to
29
remove
a
vapor
products
manufacturer
or
a
vapor
product
from
30
the
directory
shall
be
subject
to
review
by
the
filing
of
a
31
civil
action
for
prospective
declaratory
or
injunctive
relief.
32
7.
If
a
vapor
product
is
removed
from
the
directory,
33
the
director
shall
notify
each
retailer,
distributor,
34
and
wholesaler
of
the
removal
of
the
vapor
product
and
35
-4-
HF
2677
(3)
90
pf/jh/md
4/
9
H.F.
2677
the
effective
date
of
such
removal
from
the
directory
via
1
electronic
communication.
2
8.
If
a
vapor
product
is
removed
from
the
directory,
each
3
retailer,
distributor,
and
wholesaler
shall
have
twenty-one
4
business
days
from
the
day
such
vapor
product
is
removed
from
5
the
directory
to
remove
the
vapor
product
from
its
inventory
6
and
return
the
vapor
product
to
the
vapor
products
manufacturer
7
for
disposal.
After
twenty-one
business
days
following
removal
8
from
the
directory,
the
vapor
products
of
a
vapor
products
9
manufacturer
identified
in
the
notice
of
removal
are
contraband
10
and
are
subject
to
seizure,
forfeiture,
and
destruction,
and
11
shall
not
be
purchased
or
sold
in
the
state.
The
cost
of
such
12
seizure,
forfeiture,
and
destruction
shall
be
borne
by
the
13
person
from
whom
the
vapor
products
are
confiscated.
14
Sec.
5.
NEW
SECTION
.
453A.52A
Vapor
products
——
15
requirements.
16
Beginning
October
1,
2024,
or
on
the
date
the
director
17
first
makes
the
vapor
products
directory
available
for
public
18
inspection
on
the
department’s
internet
site,
whichever
is
19
later,
all
of
the
following
shall
apply
to
vapor
products
in
20
this
state:
21
1.
A
person
shall
not
sell
or
offer
for
sale
a
vapor
product
22
in
this
state
that
is
not
included
in
the
vapor
products
23
directory,
and
a
vapor
products
manufacturer
shall
not
sell,
24
either
directly
or
through
a
distributor,
wholesaler,
retailer,
25
or
similar
intermediary
or
intermediaries,
a
vapor
product
26
in
this
state
that
is
not
included
in
the
vapor
products
27
directory.
28
2.
A
retailer
shall
purchase
vapor
products
for
resale
to
29
consumers
only
from
a
distributor
or
subjobber
with
a
valid
30
license
issued
pursuant
to
this
chapter.
31
Sec.
6.
NEW
SECTION
.
453A.52B
Penalties.
32
1.
A
retailer,
distributor,
or
wholesaler
who
sells
or
33
offers
for
sale
a
vapor
product
in
this
state
that
is
not
34
included
in
the
vapor
products
directory
established
in
35
-5-
HF
2677
(3)
90
pf/jh/md
5/
9
H.F.
2677
this
subchapter
shall
be
subject
to
all
of
the
following,
as
1
applicable:
2
a.
A
civil
penalty
of
three
hundred
dollars
per
day
for
each
3
vapor
product
offered
for
sale
in
violation
of
this
subsection
4
until
the
offending
vapor
product
is
removed
from
the
market
5
or
until
the
offending
vapor
product
is
properly
listed
on
the
6
directory.
7
b.
For
a
second
violation
within
a
period
of
two
years,
a
8
retailer
shall
be
assessed
a
civil
penalty
of
one
thousand
five
9
hundred
dollars
or
the
retailer’s
permit
shall
be
suspended
for
10
a
period
of
thirty
days.
11
c.
For
a
third
violation
within
a
period
of
three
years,
a
12
retailer
shall
be
assessed
a
civil
penalty
of
one
thousand
five
13
hundred
dollars
and
the
retailer’s
permit
shall
be
suspended
14
for
a
period
of
thirty
days.
15
d.
For
a
fourth
violation
within
a
period
of
three
years,
a
16
retailer
shall
be
assessed
a
civil
penalty
of
one
thousand
five
17
hundred
dollars
and
the
retailer’s
permit
shall
be
suspended
18
for
a
period
of
sixty
days.
19
e.
For
a
fifth
violation
within
a
period
of
four
years,
the
20
retailer’s
permit
shall
be
revoked.
21
2.
A
vapor
products
manufacturer
whose
vapor
products
are
22
not
listed
in
the
vapor
products
directory
and
are
sold
in
this
23
state,
whether
directly
or
through
a
distributor,
wholesaler,
24
retailer,
or
similar
intermediary
or
intermediaries,
is
subject
25
to
a
civil
penalty
of
one
thousand
dollars
per
day
for
each
26
vapor
product
offered
for
sale
in
violation
of
this
subsection
27
until
the
offending
vapor
product
is
removed
from
the
market
28
or
until
the
offending
vapor
product
is
properly
listed
on
the
29
directory.
30
3.
Any
vapor
products
manufacturer
that
knowingly
makes
a
31
false
representation
in
any
of
the
information
required
by
this
32
subchapter
is
guilty
of
a
serious
misdemeanor
for
each
false
33
representation.
34
4.
Knowingly
shipping
or
receiving
vapor
products
in
35
-6-
HF
2677
(3)
90
pf/jh/md
6/
9
H.F.
2677
violation
of
this
subchapter
is
an
unfair
practice
and
a
1
violation
of
section
714.16.
2
5.
In
any
action
brought
by
the
state
to
enforce
this
3
subchapter,
the
state
shall
be
entitled
to
recover
the
costs
4
of
investigation
and
prosecution,
expert
witness
fees,
court
5
costs,
and
reasonable
attorney
fees.
6
Sec.
7.
NEW
SECTION
.
453A.52C
Compliance
checks.
7
1.
Each
distributor
or
retailer
that
distributes
or
sells
8
vapor
products
in
this
state
shall
be
subject
to
unannounced
9
compliance
checks
conducted
by
the
department
or
peace
officers
10
as
defined
in
section
801.4
for
purposes
of
enforcing
this
11
subchapter.
Peace
officers
who
conduct
compliance
checks
12
pursuant
to
this
section
shall
forward
the
results
of
any
13
compliance
check
to
the
department
in
a
manner
prescribed
by
14
the
department
within
thirty
business
days
after
the
compliance
15
check
is
conducted.
16
2.
Any
unannounced
follow-up
compliance
checks
of
a
17
noncompliant
retailer
or
distributor
shall
be
conducted
within
18
thirty
business
days
after
any
violation
of
this
subchapter.
19
3.
The
director
shall
publish
the
results
of
all
compliance
20
checks
performed
under
this
section
at
least
annually
and
shall
21
make
the
results
available
to
the
public
upon
request.
22
Sec.
8.
NEW
SECTION
.
453A.52D
Agent
for
service
of
process.
23
1.
A
nonresident
vapor
products
manufacturer
that
has
not
24
registered
to
do
business
in
the
state
as
a
foreign
corporation
25
or
business
entity
shall,
as
a
condition
precedent
to
being
26
included
or
retained
in
the
vapor
products
directory,
appoint
27
and
continually
engage
without
interruption
the
services
of
28
an
agent
in
this
state
to
act
as
agent
for
service
of
process
29
on
whom
all
process,
and
any
action
or
proceeding
against
the
30
vapor
products
manufacturer
concerning
or
arising
out
of
the
31
enforcement
of
this
subchapter,
may
be
served
in
any
manner
32
authorized
by
law.
Such
service
shall
constitute
legal
and
33
valid
service
of
process
on
the
vapor
products
manufacturer.
34
The
vapor
products
manufacturer
shall
provide
the
name,
35
-7-
HF
2677
(3)
90
pf/jh/md
7/
9
H.F.
2677
address,
telephone
number,
and
proof
of
the
appointment
and
1
availability
of
such
agent
to
the
director.
2
2.
The
vapor
products
manufacturer
shall
provide
notice
3
to
the
director
thirty
calendar
days
prior
to
termination
of
4
the
authority
of
an
agent
and
shall
further
provide
proof
to
5
the
satisfaction
of
the
director
of
the
appointment
of
a
new
6
agent
no
less
than
five
calendar
days
prior
to
the
termination
7
of
an
existing
agent
appointment.
In
the
event
an
agent
8
terminates
an
agency
appointment,
the
manufacturer
shall
notify
9
the
director
of
the
termination
within
five
calendar
days
and
10
shall
include
proof
to
the
satisfaction
of
the
director
of
the
11
appointment
of
a
new
agent.
12
3.
A
vapor
products
manufacturer
whose
vapor
products
13
are
sold
in
this
state,
who
has
not
appointed
and
engaged
14
the
services
of
an
agent
as
required
by
this
section,
shall
15
be
deemed
to
have
appointed
the
secretary
of
state
as
its
16
agent
for
service
of
process.
However,
the
appointment
of
the
17
secretary
of
state
as
agent
shall
not
satisfy
the
condition
18
precedent
for
the
vapor
products
manufacturer
to
be
included
or
19
retained
in
the
vapor
products
directory.
20
Sec.
9.
NEW
SECTION
.
453A.52E
Proceeds
paid
to
health
care
21
trust
fund.
22
The
revenues
generated
from
the
payment
of
fees
and
23
penalties
provided
for
under
this
subchapter
shall
be
credited
24
to
the
health
care
trust
fund
created
in
section
453A.35A
and
25
used
for
the
administration
and
enforcement
of
this
subchapter.
26
Sec.
10.
NEW
SECTION
.
453A.52F
Annual
reports.
27
By
January
15,
annually,
following
the
date
the
director
28
first
makes
the
vapor
products
directory
available
as
specified
29
in
section
453A.52A,
the
director
shall
submit
a
report
to
the
30
general
assembly
regarding
the
status
of
the
vapor
products
31
directory,
vapor
products
manufacturers,
the
vapor
products
32
included
in
the
directory,
revenue
and
expenditures
related
to
33
administration
of
this
subchapter,
and
enforcement
activities
34
undertaken
pursuant
to
this
subchapter.
35
-8-
HF
2677
(3)
90
pf/jh/md
8/
9
H.F.
2677
Sec.
11.
NEW
SECTION
.
453A.52G
Adoption
of
rules.
1
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
2
administer
this
subchapter.
3
Sec.
12.
CODE
EDITOR
DIRECTIVES.
4
1.
The
Code
editor
is
directed
to
create
a
new
subchapter
IV
5
in
chapter
453A
as
follows:
Subchapter
IV
shall
be
entitled
6
“Uniform
Application
of
Chapter”.
7
2.
The
Code
editor
shall
transfer
section
453A.56
to
the
new
8
subchapter
IV.
9
3.
The
Code
editor
is
directed
to
create
a
new
subchapter
10
III
in
chapter
453A
as
follows:
Subchapter
III
shall
be
11
entitled
“Vapor
Products
Directory
and
Regulation”
and
include
12
sections
453A.52A
through
453A.52G.
13
4.
The
Code
editor
may
modify
subchapter
titles
if
necessary
14
and
is
directed
to
correct
internal
references
in
the
Code
as
15
necessary
due
to
enactment
of
this
section.
16
-9-
HF
2677
(3)
90
pf/jh/md
9/
9