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House File 2307 - IntroducedA Bill ForAn Act 1relating to cigarettes, tobacco, tobacco products,
2alternative nicotine products, and vapor products, and
3including taxation of such products.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.216C, Code 2020, is amended to read
2as follows:
3321.216C Use of driver’s license or nonoperator’s
4identification card by underage person to obtain tobacco, tobacco
5products, alternative nicotine products, vapor products, or
6cigarettes.
7A person who is under the age of eighteen, who alters
8or displays or has in the person’s possession a fictitious
9or fraudulently altered driver’s license or nonoperator’s
10identification card and who uses the license or card to violate
11or attempt to violate section 453A.2, subsection 2, commits a
12simple misdemeanor punishable as a scheduled violation under
13section 805.8A, subsection 4. The court shall forward a copy
14of the conviction to the department.
15 Sec. 2. Section 423.3, subsection 57, paragraph h, Code
162020, is amended to read as follows:
17h. “Tobacco” means cigarettes, cigars, chewing or pipe
18tobacco, or any other item that contains and tobacco products
19as defined in section 453A.1.
20 Sec. 3. Section 453A.1, subsections 1, 23, and 28, Code
212020, are amended to read as follows:
221. “Alternative nicotine product” means a product, not
23consisting of or containing tobacco, that provides for the
24ingestion into the body of nicotine, whether by chewing,
25absorbing, dissolving, inhaling, snorting, or sniffing, or
26by any other means. “Alternative nicotine product” does not
27include cigarettes, tobacco products, or vapor products, or a
28product that is regulated as a drug or device by the United
29States food and drug administration under chapter V of the
30federal Food, Drug, and Cosmetic Act.
3123. “Retailer” shall mean and include every person in
32this state who shall sell, distribute, or offer for sale for
33consumption or possess for the purpose of sale for consumption,
34cigarettes, alternative nicotine products, or vapor products
35 irrespective of quantity or amount or the number of sales; and
-1-1every person within or without the state that conducts delivery
2sales.
328. “Tobacco products” means cigars; little cigars as
4defined in section 453A.42, subsection 6; alternative nicotine
5products; vapor products; cheroots; stogies; periques;
6granulated;, plug cut, crimp cut, ready rubbed, and other
7smoking tobacco; snuff, snuff flour; cavendish; plug and twist
8tobacco; fine-cut and other chewing tobaccos; shorts; or refuse
9scraps, clippings, cuttings and sweepings of tobacco, and other
10kinds and forms of tobacco, prepared in such manner as to be
11suitable for chewing or smoking in a pipe or otherwise, or both
12for chewing and smoking; but does not mean cigarettes.
13 Sec. 4. Section 453A.2, subsections 1, 2, 3, and 8, Code
142020, are amended to read as follows:
151. A person shall not sell, give, or otherwise supply any
16tobacco, tobacco products, alternative nicotine products, vapor
17products, or cigarettes to any person under eighteen years of
18age.
192. A person under eighteen years of age shall not smoke,
20use, possess, purchase, or attempt to purchase any tobacco,
21tobacco products, alternative nicotine products, vapor
22products, or cigarettes.
233. Possession of tobacco, tobacco products, alternative
24nicotine products, vapor products, or cigarettes by an
25individual under eighteen years of age does not constitute
26a violation under this section if the individual under
27eighteen years of age possesses the tobacco, tobacco products,
28alternative nicotine products, vapor products, or cigarettes
29as part of the individual’s employment and the individual
30is employed by a person who holds a valid permit under this
31chapter or who lawfully offers for sale or sells cigarettes or
32tobacco products.
338. a. A person shall not be guilty of a violation of this
34section if conduct that would otherwise constitute a violation
35is performed to assess compliance with tobacco, tobacco
-2-1products, alternative nicotine products, vapor products, or
2cigarette laws if any of the following applies:
3(1) The compliance effort is conducted by or under the
4supervision of law enforcement officers.
5(2) The compliance effort is conducted with the advance
6knowledge of law enforcement officers and reasonable measures
7are adopted by those conducting the effort to ensure that
8use of tobacco, tobacco products, alternative nicotine
9products, vapor products, or cigarettes by individuals under
10eighteen years of age does not result from participation by
11any individual under eighteen years of age in the compliance
12effort.
13b. For the purposes of this subsection, “law enforcement
14officer” means a peace officer as defined in section 801.4 and
15includes persons designated under subsection 4 to enforce this
16section.
17 Sec. 5. Section 453A.4, subsection 1, Code 2020, is amended
18to read as follows:
191. If a person holding a permit under this chapter or an
20employee of such a permittee has a reasonable belief based on
21factual evidence that a driver’s license as defined in section
22321.1, subsection 20A, or nonoperator’s identification card
23issued pursuant to section 321.190 offered by a person who
24wishes to purchase tobacco, tobacco products, alternative
25nicotine products, vapor products, or cigarettes is altered
26or falsified or belongs to another person, the permittee or
27employee may retain the driver’s license or nonoperator’s
28identification card. Within twenty-four hours, the card shall
29be delivered to the appropriate city or county law enforcement
30agency of the jurisdiction in which the permittee’s premises
31are located, and the permittee shall file a written report of
32the circumstances under which the card was retained. The local
33law enforcement agency may investigate whether a violation
34of section 321.216, 321.216A, or 321.216C has occurred. If
35an investigation is not initiated or probable cause is not
-3-1established by the local law enforcement agency, the driver’s
2license or nonoperator’s identification card shall be delivered
3to the person to whom it was issued. The local law enforcement
4agency may forward the card with the report to the state
5department of transportation for investigation, in which
6case, the state department of transportation may investigate
7whether a violation of section 321.216, 321.216A, or 321.216C
8has occurred. The state department of transportation shall
9return the card to the person to whom it was issued if an
10investigation is not initiated or probable cause is not
11established.
12 Sec. 6. Section 453A.5, subsection 1, Code 2020, is amended
13to read as follows:
141. The alcoholic beverages division of the department of
15commerce shall develop a tobacco compliance employee training
16program not to exceed two hours in length for employees and
17prospective employees of retailers, as defined in sections
18453A.1 and 453A.42, to inform the employees about state and
19federal laws and regulations regarding the sale of tobacco,
20tobacco products, alternative nicotine products, vapor
21products, and cigarettes to persons under eighteen years of
22age and compliance with and the importance of laws regarding
23the sale of tobacco, tobacco products, alternative nicotine
24products, vapor products, and cigarettes to persons under
25eighteen years of age.
26 Sec. 7. Section 453A.13, subsections 1, 6, 9, and 10, Code
272020, are amended to read as follows:
281. Permits required. Every distributor, wholesaler,
29cigarette vendor, and retailer, now engaged or who desires to
30become engaged in the sale or use of cigarettes, upon which a
31tax is required to be paid, and every retailer now engaged or
32who desires to become engaged in selling, offering for sale, or
33distributing alternative nicotine products or vapor products,
34including through delivery sales, shall obtain a state or
35retail permit as a distributor, wholesaler, cigarette vendor,
-4-1or retailer, as the case may be.
26. No sales without permit. A distributor, wholesaler,
3cigarette vendor, or retailer shall not sell any cigarettes,
4or sell, offer for sale, or distribute alternative nicotine
5products, or vapor products through delivery sales, until such
6application has been filed and the fee prescribed paid for a
7permit and until such permit is obtained and only while such
8permit is unrevoked and unexpired.
99. Permit — form and contents. Each permit issued shall
10describe clearly the place of business for which it is issued,
11shall be nonassignable, consecutively numbered, designating the
12kind of permit, and shall authorize the sale of cigarettes, or
13the selling, offering for sale, or distributing of alternative
14nicotine products, or vapor products through delivery sales in
15this state subject to the limitations and restrictions herein
16contained. The retail permits shall be upon forms furnished by
17the department or on forms made available or approved by the
18department.
1910. Permit displayed. The permit shall, at all times, be
20publicly displayed by the distributor, wholesaler, or retailer
21at the place of business so as to be easily seen by the public
22and the persons authorized to inspect the place of business.
23The proprietor or keeper of any building or place where
24cigarettes, alternative nicotine products, vapor products,
25 tobacco, or tobacco products are kept for sale, or with intent
26to sell, shall upon request of any agent of the department or
27any peace officer exhibit the permit. A refusal or failure to
28exhibit the permit is prima facie evidence that the cigarettes,
29alternative nicotine products, vapor products, tobacco, or
30tobacco products are kept for sale or with intent to sell in
31violation of this subchapter.
32 Sec. 8. Section 453A.36, subsection 6, Code 2020, is amended
33to read as follows:
346. Any sales of tobacco, tobacco products, alternative
35nicotine products, vapor products, or cigarettes made through a
-5-1cigarette vending machine are subject to rules and penalties
2relative to retail sales of tobacco, tobacco products,
3alternative nicotine products, vapor products, and cigarettes
4provided for in this chapter. Cigarettes shall not be sold
5through any cigarette vending machine unless the cigarettes
6have been properly stamped or metered as provided by this
7subchapter, and in case of violation of this provision, the
8permit of the dealer authorizing retail sales of cigarettes
9shall be revoked. Payment of the permit fee as provided
10in section 453A.13 authorizes a cigarette vendor to sell
11tobacco, tobacco products, alternative nicotine products, vapor
12products, and cigarettes through vending machines. However,
13tobacco, tobacco products, alternative nicotine products, vapor
14products, and cigarettes shall not be sold through a vending
15machine unless the vending machine is located in a place where
16the retailer ensures that no person younger than eighteen
17years of age is present or permitted to enter at any time.
18Tobacco, tobacco products, alternative nicotine products,
19vapor products, and cigarettes shall not be sold through
20any cigarette vending machine if such products are placed
21together with any nontobacco product, other than matches, in
22the cigarette vending machine. This section does not require
23a retail permit holder to buy a cigarette vendor’s permit if
24the retail permit holder is in fact the owner of the cigarette
25vending machines and the machines are operated in the location
26described in the retail permit.
27 Sec. 9. Section 453A.36, subsection 7, paragraph a, Code
282020, is amended to read as follows:
29a. It shall be unlawful for a person other than a retailer
30as defined in section 453A.1 or 453A.42 who holds a valid
31retail permit, as applicable, to sell tobacco, tobacco
32products, alternative nicotine products, vapor products, or
33cigarettes at retail.
34 Sec. 10. Section 453A.36A, subsection 1, Code 2020, is
35amended to read as follows:
-6- 11. Except as provided in section 453A.36, subsection 6,
2a retailer shall not sell or offer for sale tobacco, tobacco
3products, alternative nicotine products, vapor products, or
4cigarettes through the use of a self-service display.
5 Sec. 11. Section 453A.39, Code 2020, is amended to read as
6follows:
7453A.39 Tobacco, tobacco products, alternative nicotine
8products, vapor products, and cigarette samples — restrictions
9— administration.
101. A manufacturer, distributor, wholesaler, retailer, or
11distributing agent, or agent thereof, shall not give away
12cigarettes or tobacco products at any time in connection with
13the manufacturer’s, distributor’s, wholesaler’s, retailer’s, or
14distributing agent’s business or for promotion of the business
15or product, except as provided in subsection 2.
162. a. All cigarette samples shall be shipped only to a
17distributor that has a permit to stamp cigarettes or little
18cigars with Iowa tax. All cigarette samples must have a
19cigarette stamp. The manufacturer shipping samples under this
20section shall send an affidavit to the director stating the
21shipment information, including the date shipped, quantity, and
22to whom the samples were shipped. The distributor receiving
23the shipment shall send an affidavit to the director stating
24the shipment information, including the date shipped, quantity,
25and from whom the samples were shipped. These affidavits shall
26be duly notarized and submitted to the director at the time of
27shipment and receipt of the samples. The distributor shall
28pay the tax on samples by separate remittance along with the
29affidavit.
30b. A manufacturer, distributor, wholesaler, retailer, or
31distributing agent or agent thereof shall not give away any
32tobacco, tobacco products, alternative nicotine products, vapor
33products, or cigarettes to any person under eighteen years of
34age, or within five hundred feet of any playground, school,
35high school, or other facility when such facility is being
-7-1used primarily by persons under age eighteen for recreational,
2educational, or other purposes.
3c. Proof of age shall be required if a reasonable person
4could conclude on the basis of outward appearance that a
5prospective recipient of a sample may be under eighteen years
6of age.
7 Sec. 12. Section 453A.42, subsection 3, Code 2020, is
8amended by striking the subsection and inserting in lieu
9thereof the following:
103. “Delivery sale” means the same as defined in section
11453A.1.
12 Sec. 13. Section 453A.42, subsections 9 and 11, Code 2020,
13are amended to read as follows:
149. “Place of business” means any place where tobacco
15products are sold or where tobacco products are manufactured,
16stored, or kept for the purpose of sale or consumption,
17including any vessel, vehicle, airplane, train, or vending
18machine; or for a business within or without the state that
19conducts delivery sales, any place where alternative nicotine
20products or vapor products are sold or where alternative
21nicotine products or vapor products are kept for the purpose of
22sale, including delivery sales.
2311. “Retailer” means any person engaged in the business
24of selling tobacco, or tobacco products, alternative nicotine
25products, or vapor products to ultimate consumers; and every
26person within or without the state that conducts delivery
27sales.
28 Sec. 14. Section 453A.42, subsection 16, Code 2020, is
29amended by striking the subsection and inserting in lieu
30thereof the following:
3116. “Tobacco products” means the same as defined in section
32453A.1.
33 Sec. 15. Section 453A.42, Code 2020, is amended by adding
34the following new subsections:
35 NEW SUBSECTION. 01. “Alternative nicotine product” means
-8-1the same as defined in section 453A.1.
2 NEW SUBSECTION. 17A. “Vapor product” means the same as
3defined in section 453A.1.
4 Sec. 16. Section 453A.47A, subsections 1, 2, 4, and 5, Code
52020, are amended to read as follows:
61. Permits required. A person shall not engage in the
7business of a retailer of tobacco, or tobacco products,
8alternative nicotine products, or vapor products at any place
9of business, or through delivery sales, without first having
10received a permit as a retailer.
112. No sales without permit. A retailer shall not sell any
12tobacco, or tobacco products, alternative nicotine products, or
13vapor products until an application has been filed and the fee
14prescribed paid for a permit and until such permit is obtained
15and only while such permit is not suspended, unrevoked, or
16unexpired.
174. Retailer — multiple permits not required — effect of
18suspension. A retailer, as defined in section 453A.1, who holds
19a permit under subchapter I of this chapter is not required to
20also obtain a retail permit under this subchapter. However,
21if a retailer, as defined in section 453A.1, only holds a
22permit under subchapter I of this chapter and that permit is
23suspended, revoked, or expired, the retailer shall not sell any
24tobacco, or tobacco products, alternative nicotine products, or
25vapor products during the time which the permit is suspended,
26revoked, or expired.
275. Separate permit. A separate retail permit shall be
28required of a distributor or subjobber if the distributor or
29subjobber sells tobacco, or tobacco products, alternative
30nicotine products, or vapor products at retail.
31 Sec. 17. Section 453A.47A, subsection 10, paragraph b, Code
322020, is amended to read as follows:
33b. Every retailer shall, when requested by the department,
34make additional reports as the department deems necessary and
35proper and shall at the request of the department furnish full
-9-1and complete information pertaining to any transaction of the
2retailer involving the purchase or sale or use of tobacco,
3 or tobacco products, alternative nicotine products, or vapor
4products.
5 Sec. 18. CODE EDITOR DIRECTIVE. The Code editor shall do
6all of the following:
71. Modify the title of chapter 453A to read “Cigarettes and
8Tobacco Taxes and Regulation”.
92. Modify the subheading of subchapter I of chapter 453A to
10read “Cigarettes and Tobacco Products”.
113. Modify the subheading of subchapter II of chapter 453A to
12read “Cigars, Tobacco, and Tobacco Products”.
134. Modify the heading of section 805.8C, subsection 3, to
14read “Violations related to smoking, tobacco, tobacco products,
15and cigarettes”.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill redefines alternative nicotine and vapor products
20as tobacco products, thereby making applicable to alternative
21nicotine and vapor products all provisions applicable to
22tobacco products including taxation of such products. The bill
23makes conforming changes throughout the Code to redefine these
24products.
-10-pf/jh
2alternative nicotine products, and vapor products, and
3including taxation of such products.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 321.216C, Code 2020, is amended to read
2as follows:
3321.216C Use of driver’s license or nonoperator’s
4identification card by underage person to obtain tobacco, tobacco
5products, alternative nicotine products, vapor products, or
6cigarettes.
7A person who is under the age of eighteen, who alters
8or displays or has in the person’s possession a fictitious
9or fraudulently altered driver’s license or nonoperator’s
10identification card and who uses the license or card to violate
11or attempt to violate section 453A.2, subsection 2, commits a
12simple misdemeanor punishable as a scheduled violation under
13section 805.8A, subsection 4. The court shall forward a copy
14of the conviction to the department.
15 Sec. 2. Section 423.3, subsection 57, paragraph h, Code
162020, is amended to read as follows:
17h. “Tobacco” means cigarettes, cigars, chewing or pipe
18tobacco, or any other item that contains and tobacco products
19as defined in section 453A.1.
20 Sec. 3. Section 453A.1, subsections 1, 23, and 28, Code
212020, are amended to read as follows:
221. “Alternative nicotine product” means a product, not
23consisting of or containing tobacco, that provides for the
24ingestion into the body of nicotine, whether by chewing,
25absorbing, dissolving, inhaling, snorting, or sniffing, or
26by any other means. “Alternative nicotine product” does not
27include cigarettes, tobacco products, or vapor products, or a
28product that is regulated as a drug or device by the United
29States food and drug administration under chapter V of the
30federal Food, Drug, and Cosmetic Act.
3123. “Retailer” shall mean and include every person in
32this state who shall sell, distribute, or offer for sale for
33consumption or possess for the purpose of sale for consumption,
34cigarettes, alternative nicotine products, or vapor products
35 irrespective of quantity or amount or the number of sales; and
-1-1every person within or without the state that conducts delivery
2sales.
328. “Tobacco products” means cigars; little cigars as
4defined in section 453A.42, subsection 6; alternative nicotine
5products; vapor products; cheroots; stogies; periques;
6granulated;, plug cut, crimp cut, ready rubbed, and other
7smoking tobacco; snuff, snuff flour; cavendish; plug and twist
8tobacco; fine-cut and other chewing tobaccos; shorts; or refuse
9scraps, clippings, cuttings and sweepings of tobacco, and other
10kinds and forms of tobacco, prepared in such manner as to be
11suitable for chewing or smoking in a pipe or otherwise, or both
12for chewing and smoking; but does not mean cigarettes.
13 Sec. 4. Section 453A.2, subsections 1, 2, 3, and 8, Code
142020, are amended to read as follows:
151. A person shall not sell, give, or otherwise supply any
16tobacco, tobacco products, alternative nicotine products, vapor
17products, or cigarettes to any person under eighteen years of
18age.
192. A person under eighteen years of age shall not smoke,
20use, possess, purchase, or attempt to purchase any tobacco,
21tobacco products, alternative nicotine products, vapor
22products, or cigarettes.
233. Possession of tobacco, tobacco products, alternative
24nicotine products, vapor products, or cigarettes by an
25individual under eighteen years of age does not constitute
26a violation under this section if the individual under
27eighteen years of age possesses the tobacco, tobacco products,
28alternative nicotine products, vapor products, or cigarettes
29as part of the individual’s employment and the individual
30is employed by a person who holds a valid permit under this
31chapter or who lawfully offers for sale or sells cigarettes or
32tobacco products.
338. a. A person shall not be guilty of a violation of this
34section if conduct that would otherwise constitute a violation
35is performed to assess compliance with tobacco, tobacco
-2-1products, alternative nicotine products, vapor products, or
2cigarette laws if any of the following applies:
3(1) The compliance effort is conducted by or under the
4supervision of law enforcement officers.
5(2) The compliance effort is conducted with the advance
6knowledge of law enforcement officers and reasonable measures
7are adopted by those conducting the effort to ensure that
8use of tobacco, tobacco products, alternative nicotine
9products, vapor products, or cigarettes by individuals under
10eighteen years of age does not result from participation by
11any individual under eighteen years of age in the compliance
12effort.
13b. For the purposes of this subsection, “law enforcement
14officer” means a peace officer as defined in section 801.4 and
15includes persons designated under subsection 4 to enforce this
16section.
17 Sec. 5. Section 453A.4, subsection 1, Code 2020, is amended
18to read as follows:
191. If a person holding a permit under this chapter or an
20employee of such a permittee has a reasonable belief based on
21factual evidence that a driver’s license as defined in section
22321.1, subsection 20A, or nonoperator’s identification card
23issued pursuant to section 321.190 offered by a person who
24wishes to purchase tobacco, tobacco products, alternative
25nicotine products, vapor products, or cigarettes is altered
26or falsified or belongs to another person, the permittee or
27employee may retain the driver’s license or nonoperator’s
28identification card. Within twenty-four hours, the card shall
29be delivered to the appropriate city or county law enforcement
30agency of the jurisdiction in which the permittee’s premises
31are located, and the permittee shall file a written report of
32the circumstances under which the card was retained. The local
33law enforcement agency may investigate whether a violation
34of section 321.216, 321.216A, or 321.216C has occurred. If
35an investigation is not initiated or probable cause is not
-3-1established by the local law enforcement agency, the driver’s
2license or nonoperator’s identification card shall be delivered
3to the person to whom it was issued. The local law enforcement
4agency may forward the card with the report to the state
5department of transportation for investigation, in which
6case, the state department of transportation may investigate
7whether a violation of section 321.216, 321.216A, or 321.216C
8has occurred. The state department of transportation shall
9return the card to the person to whom it was issued if an
10investigation is not initiated or probable cause is not
11established.
12 Sec. 6. Section 453A.5, subsection 1, Code 2020, is amended
13to read as follows:
141. The alcoholic beverages division of the department of
15commerce shall develop a tobacco compliance employee training
16program not to exceed two hours in length for employees and
17prospective employees of retailers, as defined in sections
18453A.1 and 453A.42, to inform the employees about state and
19federal laws and regulations regarding the sale of tobacco,
20tobacco products, alternative nicotine products, vapor
21products, and cigarettes to persons under eighteen years of
22age and compliance with and the importance of laws regarding
23the sale of tobacco, tobacco products, alternative nicotine
24products, vapor products, and cigarettes to persons under
25eighteen years of age.
26 Sec. 7. Section 453A.13, subsections 1, 6, 9, and 10, Code
272020, are amended to read as follows:
281. Permits required. Every distributor, wholesaler,
29cigarette vendor, and retailer, now engaged or who desires to
30become engaged in the sale or use of cigarettes, upon which a
31tax is required to be paid, and every retailer now engaged or
32who desires to become engaged in selling, offering for sale, or
33distributing alternative nicotine products or vapor products,
34including through delivery sales, shall obtain a state or
35retail permit as a distributor, wholesaler, cigarette vendor,
-4-1or retailer, as the case may be.
26. No sales without permit. A distributor, wholesaler,
3cigarette vendor, or retailer shall not sell any cigarettes,
4or sell, offer for sale, or distribute alternative nicotine
5products, or vapor products through delivery sales, until such
6application has been filed and the fee prescribed paid for a
7permit and until such permit is obtained and only while such
8permit is unrevoked and unexpired.
99. Permit — form and contents. Each permit issued shall
10describe clearly the place of business for which it is issued,
11shall be nonassignable, consecutively numbered, designating the
12kind of permit, and shall authorize the sale of cigarettes, or
13the selling, offering for sale, or distributing of alternative
14nicotine products, or vapor products through delivery sales in
15this state subject to the limitations and restrictions herein
16contained. The retail permits shall be upon forms furnished by
17the department or on forms made available or approved by the
18department.
1910. Permit displayed. The permit shall, at all times, be
20publicly displayed by the distributor, wholesaler, or retailer
21at the place of business so as to be easily seen by the public
22and the persons authorized to inspect the place of business.
23The proprietor or keeper of any building or place where
24cigarettes, alternative nicotine products, vapor products,
25 tobacco, or tobacco products are kept for sale, or with intent
26to sell, shall upon request of any agent of the department or
27any peace officer exhibit the permit. A refusal or failure to
28exhibit the permit is prima facie evidence that the cigarettes,
29alternative nicotine products, vapor products, tobacco, or
30tobacco products are kept for sale or with intent to sell in
31violation of this subchapter.
32 Sec. 8. Section 453A.36, subsection 6, Code 2020, is amended
33to read as follows:
346. Any sales of tobacco, tobacco products, alternative
35nicotine products, vapor products, or cigarettes made through a
-5-1cigarette vending machine are subject to rules and penalties
2relative to retail sales of tobacco, tobacco products,
3alternative nicotine products, vapor products, and cigarettes
4provided for in this chapter. Cigarettes shall not be sold
5through any cigarette vending machine unless the cigarettes
6have been properly stamped or metered as provided by this
7subchapter, and in case of violation of this provision, the
8permit of the dealer authorizing retail sales of cigarettes
9shall be revoked. Payment of the permit fee as provided
10in section 453A.13 authorizes a cigarette vendor to sell
11tobacco, tobacco products, alternative nicotine products, vapor
12products, and cigarettes through vending machines. However,
13tobacco, tobacco products, alternative nicotine products, vapor
14products, and cigarettes shall not be sold through a vending
15machine unless the vending machine is located in a place where
16the retailer ensures that no person younger than eighteen
17years of age is present or permitted to enter at any time.
18Tobacco, tobacco products, alternative nicotine products,
19vapor products, and cigarettes shall not be sold through
20any cigarette vending machine if such products are placed
21together with any nontobacco product, other than matches, in
22the cigarette vending machine. This section does not require
23a retail permit holder to buy a cigarette vendor’s permit if
24the retail permit holder is in fact the owner of the cigarette
25vending machines and the machines are operated in the location
26described in the retail permit.
27 Sec. 9. Section 453A.36, subsection 7, paragraph a, Code
282020, is amended to read as follows:
29a. It shall be unlawful for a person other than a retailer
30as defined in section 453A.1 or 453A.42 who holds a valid
31retail permit, as applicable, to sell tobacco, tobacco
32products, alternative nicotine products, vapor products, or
33cigarettes at retail.
34 Sec. 10. Section 453A.36A, subsection 1, Code 2020, is
35amended to read as follows:
-6- 11. Except as provided in section 453A.36, subsection 6,
2a retailer shall not sell or offer for sale tobacco, tobacco
3products, alternative nicotine products, vapor products, or
4cigarettes through the use of a self-service display.
5 Sec. 11. Section 453A.39, Code 2020, is amended to read as
6follows:
7453A.39 Tobacco, tobacco products, alternative nicotine
8products, vapor products, and cigarette samples — restrictions
9— administration.
101. A manufacturer, distributor, wholesaler, retailer, or
11distributing agent, or agent thereof, shall not give away
12cigarettes or tobacco products at any time in connection with
13the manufacturer’s, distributor’s, wholesaler’s, retailer’s, or
14distributing agent’s business or for promotion of the business
15or product, except as provided in subsection 2.
162. a. All cigarette samples shall be shipped only to a
17distributor that has a permit to stamp cigarettes or little
18cigars with Iowa tax. All cigarette samples must have a
19cigarette stamp. The manufacturer shipping samples under this
20section shall send an affidavit to the director stating the
21shipment information, including the date shipped, quantity, and
22to whom the samples were shipped. The distributor receiving
23the shipment shall send an affidavit to the director stating
24the shipment information, including the date shipped, quantity,
25and from whom the samples were shipped. These affidavits shall
26be duly notarized and submitted to the director at the time of
27shipment and receipt of the samples. The distributor shall
28pay the tax on samples by separate remittance along with the
29affidavit.
30b. A manufacturer, distributor, wholesaler, retailer, or
31distributing agent or agent thereof shall not give away any
32tobacco, tobacco products, alternative nicotine products, vapor
33products, or cigarettes to any person under eighteen years of
34age, or within five hundred feet of any playground, school,
35high school, or other facility when such facility is being
-7-1used primarily by persons under age eighteen for recreational,
2educational, or other purposes.
3c. Proof of age shall be required if a reasonable person
4could conclude on the basis of outward appearance that a
5prospective recipient of a sample may be under eighteen years
6of age.
7 Sec. 12. Section 453A.42, subsection 3, Code 2020, is
8amended by striking the subsection and inserting in lieu
9thereof the following:
103. “Delivery sale” means the same as defined in section
11453A.1.
12 Sec. 13. Section 453A.42, subsections 9 and 11, Code 2020,
13are amended to read as follows:
149. “Place of business” means any place where tobacco
15products are sold or where tobacco products are manufactured,
16stored, or kept for the purpose of sale or consumption,
17including any vessel, vehicle, airplane, train, or vending
18machine; or for a business within or without the state that
19conducts delivery sales, any place where alternative nicotine
20products or vapor products are sold or where alternative
21nicotine products or vapor products are kept for the purpose of
22sale, including delivery sales.
2311. “Retailer” means any person engaged in the business
24of selling tobacco, or tobacco products, alternative nicotine
25products, or vapor products to ultimate consumers; and every
26person within or without the state that conducts delivery
27sales.
28 Sec. 14. Section 453A.42, subsection 16, Code 2020, is
29amended by striking the subsection and inserting in lieu
30thereof the following:
3116. “Tobacco products” means the same as defined in section
32453A.1.
33 Sec. 15. Section 453A.42, Code 2020, is amended by adding
34the following new subsections:
35 NEW SUBSECTION. 01. “Alternative nicotine product” means
-8-1the same as defined in section 453A.1.
2 NEW SUBSECTION. 17A. “Vapor product” means the same as
3defined in section 453A.1.
4 Sec. 16. Section 453A.47A, subsections 1, 2, 4, and 5, Code
52020, are amended to read as follows:
61. Permits required. A person shall not engage in the
7business of a retailer of tobacco, or tobacco products,
8alternative nicotine products, or vapor products at any place
9of business, or through delivery sales, without first having
10received a permit as a retailer.
112. No sales without permit. A retailer shall not sell any
12tobacco, or tobacco products, alternative nicotine products, or
13vapor products until an application has been filed and the fee
14prescribed paid for a permit and until such permit is obtained
15and only while such permit is not suspended, unrevoked, or
16unexpired.
174. Retailer — multiple permits not required — effect of
18suspension. A retailer, as defined in section 453A.1, who holds
19a permit under subchapter I of this chapter is not required to
20also obtain a retail permit under this subchapter. However,
21if a retailer, as defined in section 453A.1, only holds a
22permit under subchapter I of this chapter and that permit is
23suspended, revoked, or expired, the retailer shall not sell any
24tobacco, or tobacco products, alternative nicotine products, or
25vapor products during the time which the permit is suspended,
26revoked, or expired.
275. Separate permit. A separate retail permit shall be
28required of a distributor or subjobber if the distributor or
29subjobber sells tobacco, or tobacco products, alternative
30nicotine products, or vapor products at retail.
31 Sec. 17. Section 453A.47A, subsection 10, paragraph b, Code
322020, is amended to read as follows:
33b. Every retailer shall, when requested by the department,
34make additional reports as the department deems necessary and
35proper and shall at the request of the department furnish full
-9-1and complete information pertaining to any transaction of the
2retailer involving the purchase or sale or use of tobacco,
3 or tobacco products, alternative nicotine products, or vapor
4products.
5 Sec. 18. CODE EDITOR DIRECTIVE. The Code editor shall do
6all of the following:
71. Modify the title of chapter 453A to read “Cigarettes and
8Tobacco Taxes and Regulation”.
92. Modify the subheading of subchapter I of chapter 453A to
10read “Cigarettes and Tobacco Products”.
113. Modify the subheading of subchapter II of chapter 453A to
12read “Cigars, Tobacco, and Tobacco Products”.
134. Modify the heading of section 805.8C, subsection 3, to
14read “Violations related to smoking, tobacco, tobacco products,
15and cigarettes”.
16EXPLANATION
17The inclusion of this explanation does not constitute agreement with
18the explanation’s substance by the members of the general assembly.
19This bill redefines alternative nicotine and vapor products
20as tobacco products, thereby making applicable to alternative
21nicotine and vapor products all provisions applicable to
22tobacco products including taxation of such products. The bill
23makes conforming changes throughout the Code to redefine these
24products.
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