Bills › 90th General Assembly

Where it is now

  1. Done: IntroducedFebruary 2, 2023
  2. Done: SubcommitteeFebruary 2, 2023
  3. Done: Senate committeeFebruary 21, 2023
  4. Skipped: Passes the SenateContinued as SF 345
  5. Next: House committee
  6. Next: Passes the House
  7. Next: To the Governor
  8. Next: Signed into law

Became SF 345 → Its progress continues under the new number. Go to SF 345 What’s a funnel?

What’s in it

This bill relates to the regulation of certain tobacco products. 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 fee for each permit; and provides for annual expiration of the permits.

Read the full explanation

_____ 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 a person age or older 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. _____ 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. Additionally, a person holding a device retailer permit or a device delivery sale permit who violates the bill by marketing or selling a device to be used or attempted to be used or that is capable of use in combination with tobacco, hemp, other plant materials, or a controlled substance, to knowingly or intentionally and primarily inhale the material or controlled substance through combustion, commits a serious misdemeanor and is also subject to permit revocation. A serious misdemeanor is punishable by confinement for no more than one year and a fine of at least $430 but not more than $2,560. 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 second violation, and a civil penalty of $5,000 for a third or subsequent violation.

Changed since by amendments S-5091, S-5050, H-8102, H-8087, H-8043, H-1251, S-3036; see Amendments.

Full bill text · What changed before it passed1

Senate subcommittee

Named February 2, 2023. On February 15, 2023 it recommended 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

Fiscal note

AI summary This bill regulates certain tobacco-related devices by requiring retailers to obtain permits and pay a 40.0% excise tax on sales. It is estimated to bring in $1.4 million in fiscal year 2025 and $2.9 million in fiscal year 2026 to the Specialty Courts and Diversion Programs Fund, along with approximately $50,000 in annual permit fees. The resulting costs to the justice system and potential increases in compliance check costs for the Department of Health and Human Services cannot be determined.2

From the note: 9 million in FY 2026 to the Specialty Courts and Diversion Programs Fund as a result of the excise tax collected. Figure 2 provides revenue estimates for the Fund through FY 2029.

Reading a fiscal note3

Iowa Code it changes

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

How the Code works4

Lobbying

6 for · 0 against · 20 undecided · Who →

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90th General Assembly