Bills › 88th General Assembly

SF 2402Died when the session ended · March 4, 2020

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

Sponsored by the Senate Ways and Means (successor To Ssb 3007) Committee

Topics:Alcohol, cannabis & gamingTaxes

Same legislation: SSB 3007, SF 2127

Where it is now

  1. Done: IntroducedJanuary 30, 2020
  2. Done: SubcommitteeFebruary 11, 2020
  3. Done: Senate committeeJanuary 30, 2020
  4. Stopped: Passes the SenateDied when the General Assembly ended
  5. Next: House committee
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Died when the session ended The 2020 session adjourned on June 14, 2020, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

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 $1,500 fee for each permit; and provides for annual expiration of the permits.

Read the full explanation

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 from permit fees, with the exception of city and county permit fees, and excise taxes imposed and collected under the bill, 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. This provision does not apply to a licensed cannabidiol manufacturer.16.

Full bill text1

Fiscal note

Cost: up to $52,500 Compare with other bills

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. Fiscal Note Fiscal Services Division 2 The DPH and ABD enforcement checks will be implemented with the agencies’ existing budgets.

Reading a fiscal note2

Iowa Code it changes

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

How the Code works3

Lobbying

3 for · 1 against · 26 undecided · Who →

Family tree

Earlier and later bills are matched by wording or an identical title.

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