Proyectos de ley › 88.ª Asamblea General

Relating to the regulation of certain tobacco and hemp-related products, and providing penalties

Presentado por el comité Commerce del Senado

Temas:Alcohol, cannabis & gamingTaxes

La misma legislación: SSB 3007, SF 2402

Dónde está ahora

  1. Hecho: Presentado30 de enero de 2020
  2. Hecho: Subcomité11 de febrero de 2020
  3. Hecho: Comité del Senado30 de enero de 2020
  4. Se saltó: Lo aprueba el SenadoSigue como SF 2402
  5. Sigue: Comité de la Cámara
  6. Sigue: Lo aprueba la Cámara
  7. Sigue: A gobernador(a)
  8. Sigue: Firmado como ley

Ahora es SF 2402 → Sigue avanzando con el número nuevo. Ir a SF 2402 ¿Qué es el embudo (funnel)?

Qué contiene

La explicación oficial está en inglés; todavía no hay resumen en palabras sencillas.

This bill relates to the regulation of certain tobacco and hemp-related products. Division I of the bill requires a person who engages in the business of a device retailer through a retail outlet or delivery sales to receive and hold a permit as a tobacco retailer, comply with provisions applicable to a tobacco retailer, sell tobacco products in addition to devices at the retail outlet or through delivery sales, and hold a permit as a device retailer. The bill provides for the application for and issuance of device retailer permits by cities and counties depending upon the location of the retailer; requires the payment of a $1,000 fee for each permit; and provides for annual expiration of the permits.

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The bill also requires device retailer permit holders to keep certain records and submit reports to the department of revenue; establishes requirements for the sale of devices including that a device retailer shall not sell, give, or otherwise supply a device to any person under years of age and must verify the age of all purchasers of devices; and provides that a device retailer shall only display and sell devices in a location where the device retailer ensures that the devices are not visible to a person younger than years of age and where no person younger than years of age is present or permitted to enter at any time. The bill establishes requirements for the delivery sale of devices including permit requirements and restrictions including all devices delivered by delivery sale directly to a resident of this state shall be delivered by a holder of a device delivery sale permit; that a device delivery sale permit holder shall only deliver devices by delivery sale to a resident of this state who is at least years of age, for the resident’s personal use and consumption and not for resale; all devices delivered by delivery sale directly to a resident of this state shall be conspicuously labeled with the words “CONTAINS DEVICE: SIGNATURE OF PERSON AGE OR OLDER REQUIRED FOR DELIVERY” or with an alternative wording preapproved by the director of revenue; a device delivery sale permit holder shall obtain valid proof of identity and age prior to delivery, and shall obtain the signature of an adult as a condition of delivery; and that a device delivery sale permit holder shall maintain records of devices delivered which include certain information that must be maintained for five years. The bill provides for the imposition, collection, and payment of sales and excise taxes on the retail sale, including delivery sales, of devices. Moneys collected, with the exception of city and county permit fees, are to be deposited in the specialty courts program fund created in the bill to be used for the purpose of the support of specialty courts to address underlying substance use disorder-related and mental health-related issues that contribute to the contact of individuals with the justice system. The bill provides penalties for violations of the bill. The applicable provisions of Code chapter 453A (cigarette and tobacco taxes and regulation of alternative nicotine products and vapor products) including penalties and license suspension and revocation provisions and penalties applicable to those other than permit holders apply to tobacco retailers who are also device retailer permit holders or device delivery sale permit holders as well as to those who are not permit holders.414 and is also subject to permit revocation. If a person holding a device retailer permit or a device delivery sale permit willfully violates the bill, the department shall revoke the permit upon notice and hearing. In addition to any other applicable penalties, a device retailer permit holder or a device delivery sale permit holder who violates the Code chapter is subject to a civil penalty of $500 for a first violation, a civil penalty of $1,000 for a second violation, and a third violation constitutes grounds for suspension or revocation of the permit. A person other than a device retailer permit holder or a device delivery sale permit holder who violates the Code chapter is subject to a civil penalty of $1,000 for a first violation, a civil penalty of $2,000 for a second violation, and a civil penalty of $5,000 for a third or subsequent violation. Division II of the bill relates to claims made regarding hemp products sold at retail.7(9), shall include on the product’s principal display panel a statement that the product may or may not contain the ingredients stated on the label, that the efficacy and safety of the product have not been substantiated or approved by a state or federal agency based on competent and reliable scientific evidence, and that the consumer should use the product at the consumer’s own risk.16.

Texto completo del proyecto (en inglés)1

Senate subcommittee

Named February 11, 2020. On February 25, 2020 it recommended amendment and passage.

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

Nota fiscal

Resumen con IA This bill taxes certain retailers of glass or metal pipes at a rate of 40.0% and requires a $1,500 permit fee for retailers without tobacco permits. It is estimated to generate $2.6 million annually for the Specialty Courts Program Fund beginning in fiscal year 2021, while cities and counties would receive an estimated $52,500 annually beginning in fiscal year 2021. The Department of Public Health and the Alcoholic Beverages Division will carry out additional compliance checks using their existing budgets. (en inglés)2

Lea la nota fiscal (en inglés)

Description

Division I of SF 2402 requires retailers who sell glass or metal pipes (defined in the Bill as devices), that would otherwise be defined as drug paraphernalia, but are exempt due to the intended use with tobacco products, be taxed at a rate of 40.0% in addition to the sales tax and use tax.

The Bill creates the Specialty Courts Program Fund, under the control of the Department of Corrections, and deposits revenues from the tax in the Fund. Money in the Fund would only be available to support specialty courts addressing underlying substance use disorders and mental health-related issues that contribute to the contact of individuals with the justice system. Retailers of devices that do not possess a tobacco permit must apply for a device retailer and pay a permit fee of $1,500. Cities and counties that collect the device retailer permit fee will retain the revenue. Device retailer permit fees collected by the State will be deposited in the Specialty Courts Program Fund.

The sale of devices will be prohibited to anyone under the age of 18. The Bill establishes civil penalties for violations.

Division II requires that unless a State or federal agency substantiates the product claims, sellers of hemp-derived cannabidiol must display a label that contains a specific statement. This Division does not have a fiscal impact.

Assumptions

  • The Department of Revenue (IDR) identified 35 businesses that sell these devices as part of their total taxable sales.
  • Total sales at these stores from FY 2019 were allocated to calculate an estimate of device sales. The assumptions include: four stores are 100.0% device sales, seven stores are 50.0% device sales, and 24 stores are 25.0% device sales. Estimated sales of devices were $5.9 million in FY 2019.
  • The Department of Public Health (DPH) and Department of Commerce, Alcoholic Beverages Division (ABD) will have additional retail compliance checks to complete for device retailers.
  • The permit fees collected by the State for out-of-state device retailers cannot be determined.

Fiscal Impact

Senate File 2402 is estimated to generate $2.6 million annually for the Specialty Courts Program Fund beginning in FY 2021.

Cities or counties would receive an estimated $52,500 annually beginning in FY 2021. The DPH and ABD enforcement checks will be implemented with the agencies’ existing budgets.

Sources

  • Department of Revenue
  • Department of Public Health
  • Department of Commerce, Alcoholic Beverages Division
  • LSA analysis and calculations

Cómo leer una nota fiscal3

Lo que cambia del Código de Iowa (Iowa Code)

Crea§126.24§453E.1§453E.2§453E.3§453E.4§453E.5§453E.6§453E.7

Cómo funciona el Código4

Cabildeo

3 a favor · 1 en contra · 26 indecisos · Quiénes →

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