Bill Text: IA HF2080 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to cigarettes, tobacco products, and vapor products, including the taxation of such products, and making penalties applicable.
Spectrum: Partisan Bill (Democrat 22-0)
Status: (Introduced - Dead) 2020-01-23 - Sponsor added, Gaskill. H.J. 130. [HF2080 Detail]
Download: Iowa-2019-HF2080-Introduced.html
House
File
2080
-
Introduced
HOUSE
FILE
2080
BY
STECKMAN
,
STAED
,
THEDE
,
HUNTER
,
EHLERT
,
LENSING
,
DONAHUE
,
M.
SMITH
,
FORBES
,
COHOON
,
WOLFE
,
B.
MEYER
,
KONFRST
,
HALL
,
WILBURN
,
ANDERSON
,
MASCHER
,
KACENA
,
KURTH
,
R.
SMITH
,
ABDUL-SAMAD
,
and
DERRY
A
BILL
FOR
An
Act
relating
to
cigarettes,
tobacco
products,
and
vapor
1
products,
including
the
taxation
of
such
products,
and
2
making
penalties
applicable.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
331.303,
subsection
3,
Code
2020,
is
1
amended
to
read
as
follows:
2
3.
Act
upon
applications
for
cigarette
,
tobacco
product,
3
and
vapor
product
tax
permits
in
accordance
with
chapter
453A
.
4
Sec.
2.
Section
331.653,
subsection
11,
Code
2020,
is
5
amended
to
read
as
follows:
6
11.
Carry
out
duties
relating
to
the
seizure
and
forfeiture
7
of
cigarettes,
tobacco
products,
and
vapor
products,
vehicles,
8
and
other
property
used
in
violation
of
cigarette
,
tobacco
9
product,
or
vapor
product
tax
laws
as
provided
in
section
10
453A.32
.
11
Sec.
3.
Section
331.756,
subsection
19,
Code
2020,
is
12
amended
to
read
as
follows:
13
19.
Assist,
at
the
request
of
the
director
of
revenue,
in
14
the
enforcement
of
cigar
and
cigarette,
tobacco
product,
and
15
vapor
product
tax
laws
as
provided
in
sections
453A.32
and
16
453A.49
.
17
Sec.
4.
Section
453A.1,
subsection
21,
Code
2020,
is
amended
18
to
read
as
follows:
19
21.
“Place
of
business”
is
construed
to
mean
and
include
any
20
place
where
cigarettes
,
alternative
nicotine
products,
or
vapor
21
products
are
sold
or
where
cigarettes
,
alternative
nicotine
22
products,
or
vapor
products
are
stored
within
or
without
the
23
state
of
Iowa
by
the
holder
of
an
Iowa
permit
or
kept
for
the
24
purpose
of
sale
or
consumption;
or
if
sold
from
any
vehicle
25
or
train,
the
vehicle
or
train
on
which
or
from
which
such
26
cigarettes
are
sold
shall
constitute
a
place
of
business;
27
or
for
a
business
within
or
without
the
state
that
conducts
28
delivery
sales,
any
place
where
alternative
nicotine
products
29
or
vapor
products
are
sold
or
where
alternative
nicotine
30
products
or
vapor
products
are
kept
for
the
purpose
of
sale.
31
Sec.
5.
Section
453A.1,
Code
2020,
is
amended
by
adding
the
32
following
new
subsection:
33
NEW
SUBSECTION
.
29A.
“Vapor
product
solution
or
substance”
34
means
any
cartridge
or
other
container
of
a
solution
or
other
35
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substance,
which
may
or
may
not
contain
nicotine,
that
is
1
intended
to
be
used
with
an
electronic
cigarette,
electronic
2
cigar,
electronic
cigarillo,
electronic
pipe,
or
similar
3
product
or
device,
whether
or
not
the
solution
or
substance
is
4
a
component
of
the
device
or
sold
separately.
5
Sec.
6.
Section
453A.15,
subsections
1,
2,
and
4,
Code
2020,
6
are
amended
to
read
as
follows:
7
1.
The
director
may
prescribe
the
forms
necessary
for
the
8
efficient
administration
of
this
subchapter
and
may
require
9
uniform
books
and
records
to
be
used
and
kept
by
each
permit
10
holder
or
other
person
as
deemed
necessary.
The
director
may
11
also
require
each
permit
holder
or
other
person
to
keep
and
12
retain
in
the
director’s
possession
evidence
on
prescribed
13
forms
of
all
transactions
involving
the
purchase
and
sale
of
14
cigarettes
,
alternative
nicotine
products,
or
vapor
products,
15
or
the
purchase
and
use
of
stamps.
The
evidence
shall
be
kept
16
for
a
period
of
three
years
from
the
date
of
each
transaction,
17
for
the
inspection
at
all
times
by
the
department.
18
2.
Where
a
state
permit
holder
sells
cigarettes
,
19
alternative
nicotine
products,
or
vapor
products
at
retail,
the
20
holder
shall
be
required
to
maintain
detailed
records
for
sales
21
of
cigarettes
,
alternative
nicotine
products,
or
vapor
products
22
to
be
sold
at
retail
and
the
cigarette
,
alternative
nicotine
23
product,
or
vapor
product
sales
records
shall
be
kept
separate
24
and
apart.
25
4.
Every
permit
holder
or
other
person
shall,
when
requested
26
by
the
department,
make
additional
reports
as
the
department
27
deems
necessary
and
proper
and
shall
at
the
request
of
the
28
department
furnish
full
and
complete
information
pertaining
to
29
any
transaction
of
the
permit
holder
or
other
person
involving
30
the
purchase
or
sale
or
use
of
cigarettes
,
alternative
nicotine
31
products,
vapor
products,
or
purchase
of
cigarette
stamps.
32
The
director
shall
specifically
prescribe
the
forms
necessary
33
and
require
each
retailer
to
provide
on
the
forms
prescribed,
34
full
and
complete
information
pertaining
to
any
cigarettes,
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alternative
nicotine
products,
or
vapor
products
offered
for
1
sale
or
sold
by
the
retailer,
including
the
type
and
brand
of
2
the
product.
3
Sec.
7.
Section
453A.24,
Code
2020,
is
amended
to
read
as
4
follows:
5
453A.24
Carrier
to
permit
access
to
records.
6
1.
Every
common
carrier
or
person
in
this
state
having
7
custody
of
books
or
records
showing
the
transportation
of
8
cigarettes
,
alternative
nicotine
products,
or
vapor
products
9
both
interstate
and
intrastate
shall
give
and
allow
the
10
department
free
access
to
those
books
and
records.
11
2.
The
director
may
require
by
rule
that
common
carriers
12
or
the
appropriate
persons
provide
monthly
reports
to
the
13
department
detailing
all
information
the
department
deems
14
necessary
on
shipments
into
and
out
of
Iowa
of
cigarettes
,
15
and
tobacco
products
,
alternative
nicotine
products,
or
vapor
16
products
as
set
forth
in
this
subchapter
I
and
subchapter
II
17
of
this
chapter
.
The
director
may
require
by
rule
that
the
18
reports
be
filed
by
electronic
transmission.
19
Sec.
8.
Section
453A.32,
subsection
6,
Code
2020,
is
amended
20
to
read
as
follows:
21
6.
The
provisions
of
this
section
applying
to
cigarettes
22
shall
also
apply
to
tobacco
products
and
vapor
products
taxed
23
under
subchapter
II
of
this
chapter
.
24
Sec.
9.
Section
453A.33,
Code
2020,
is
amended
to
read
as
25
follows:
26
453A.33
Seizure
not
to
affect
criminal
prosecution.
27
The
seizure,
forfeiture,
and
sale
of
cigarettes,
tobacco
28
products,
vapor
products,
and
other
property
under
the
terms
29
and
conditions
hereinabove
set
out
pursuant
to
section
453A.32
,
30
shall
not
constitute
any
defense
to
the
person
owning
or
having
31
control
or
possession
of
the
property
from
criminal
prosecution
32
for
any
act
or
omission
made
or
offense
committed
under
this
33
chapter
or
from
liability
to
pay
penalties
provided
by
this
34
chapter
.
35
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Sec.
10.
Section
453A.35,
subsection
1,
paragraph
b,
Code
1
2020,
is
amended
to
read
as
follows:
2
b.
The
revenues
generated
from
the
tax
on
cigarettes
3
pursuant
to
section
453A.6,
subsection
1
,
and
from
the
tax
on
4
tobacco
products
as
specified
in
section
453A.43,
subsections
5
1,
2,
3,
and
4
,
and
from
the
tax
on
vapor
products
as
specified
6
in
section
453A.47D,
shall
be
credited
to
the
health
care
trust
7
fund
created
in
section
453A.35A
.
8
Sec.
11.
Section
453A.35A,
subsection
1,
Code
2020,
is
9
amended
to
read
as
follows:
10
1.
A
health
care
trust
fund
is
created
in
the
office
of
11
the
treasurer
of
state.
The
fund
consists
of
the
revenues
12
generated
from
the
tax
on
cigarettes
pursuant
to
section
13
453A.6,
subsection
1
,
and
from
the
tax
on
tobacco
products
14
as
specified
in
section
453A.43,
subsections
1,
2,
3,
and
4
,
15
and
from
the
tax
on
vapor
products
as
specified
in
section
16
453A.47D,
that
are
credited
to
the
health
care
trust
fund,
17
annually,
pursuant
to
section
453A.35
.
Moneys
in
the
fund
18
shall
be
separate
from
the
general
fund
of
the
state
and
shall
19
not
be
considered
part
of
the
general
fund
of
the
state.
20
However,
the
fund
shall
be
considered
a
special
account
for
21
the
purposes
of
section
8.53
relating
to
generally
accepted
22
accounting
principles.
Moneys
in
the
fund
shall
be
used
only
23
as
specified
in
this
section
and
shall
be
appropriated
only
24
for
the
uses
specified.
Moneys
in
the
fund
are
not
subject
to
25
section
8.33
and
shall
not
be
transferred,
used,
obligated,
26
appropriated,
or
otherwise
encumbered,
except
as
provided
in
27
this
section
.
Notwithstanding
section
12C.7,
subsection
2
,
28
interest
or
earnings
on
moneys
deposited
in
the
fund
shall
be
29
credited
to
the
fund.
30
Sec.
12.
Section
453A.40,
subsections
1
and
3,
Code
2020,
31
are
amended
to
read
as
follows:
32
1.
All
persons
required
to
obtain
a
permit
or
to
be
licensed
33
under
section
453A.13
or
section
453A.44
having
in
their
34
possession
and
held
for
resale
on
the
effective
date
of
an
35
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increase
in
the
tax
rate
cigarettes,
little
cigars,
or
tobacco
1
products
,
or
vapor
products
upon
which
the
tax
under
section
2
453A.6
,
or
453A.43
,
or
453A.47D
has
been
paid,
unused
cigarette
3
tax
stamps
which
have
been
paid
for
under
section
453A.8
,
4
unused
metered
imprints
which
have
been
paid
for
under
section
5
453A.12
,
or
tobacco
products
for
which
the
tax
has
not
been
6
paid
under
section
453A.46
,
or
vapor
products
for
which
the
tax
7
has
not
been
paid
under
section
453A.47D,
shall
be
subject
to
8
an
inventory
tax
on
the
items
as
provided
in
this
section
.
9
3.
The
rate
of
the
inventory
tax
on
each
item
subject
to
10
the
tax
as
specified
in
subsection
1
is
equal
to
the
difference
11
between
the
amount
paid
on
each
item
under
section
453A.6
,
12
453A.8
,
453A.12
,
or
453A.43
,
or
453A.47D
prior
to
the
tax
13
increase
and
the
amount
that
is
to
be
paid
on
each
similar
item
14
under
section
453A.6
,
453A.8
,
453A.12
,
or
453A.43
,
or
453A.47D
15
after
the
tax
increase
except
that
in
computing
the
rate
of
the
16
inventory
tax
any
discount
allowed
or
allowable
under
section
17
453A.8
shall
not
be
considered.
18
Sec.
13.
Section
453A.42,
subsections
1,
2,
8,
9,
10,
12,
19
14,
and
17,
Code
2020,
are
amended
to
read
as
follows:
20
1.
“Business”
means
any
trade,
occupation,
activity,
21
or
enterprise
engaged
in
for
the
purpose
of
selling
or
22
distributing
tobacco
products
,
alternative
nicotine
products,
23
or
vapor
products
in
this
state.
24
2.
“Consumer”
means
any
person
who
has
title
to
or
25
possession
of
tobacco
products
,
alternative
nicotine
products,
26
or
vapor
products
in
storage,
for
use
or
other
consumption
in
27
this
state.
28
8.
“Person”
means
any
individual,
firm,
association,
29
partnership,
joint
stock
company,
joint
adventure
venture
,
30
corporation,
trustee,
agency,
or
receiver,
or
any
legal
31
representative
of
any
of
the
foregoing
individual,
firm,
32
association,
partnership,
joint
stock
company,
joint
venture,
33
corporation,
trustee,
agency,
or
receiver
.
34
9.
“Place
of
business”
means
any
place
where
tobacco
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products
,
alternative
nicotine
products,
or
vapor
products
are
1
sold
or
where
tobacco
products
,
alternative
nicotine
products,
2
or
vapor
products
are
manufactured,
stored,
or
kept
for
the
3
purpose
of
sale
or
consumption,
including
any
vessel,
vehicle,
4
airplane,
train,
or
vending
machine;
or
for
a
business
within
5
or
without
the
state
that
conducts
delivery
sales,
any
place
6
where
alternative
nicotine
products
or
vapor
products
are
sold
7
or
where
alternative
nicotine
products
or
vapor
products
are
8
kept
for
the
purpose
of
sale,
including
delivery
sales.
9
10.
“Retail
outlet”
means
each
place
of
business
from
which
10
tobacco
products
,
alternative
nicotine
products,
or
vapor
11
products
are
sold
to
consumers.
12
12.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
any
13
manner
or
by
any
means
whatsoever,
for
a
consideration,
and
14
includes
and
means
all
sales
made
by
any
person.
It
includes
15
a
gift
by
a
person
engaged
in
the
business
of
selling
tobacco
16
products
,
alternative
nicotine
products,
or
vapor
products
,
17
for
advertising,
as
a
means
of
evading
the
provisions
of
this
18
subchapter
,
or
for
any
other
purposes
whatsoever
.
19
14.
“Storage”
means
any
keeping
or
retention
of
tobacco
20
products
,
alternative
nicotine
products,
or
vapor
products
for
21
use
or
consumption
in
this
state.
22
17.
“Use”
means
the
exercise
of
any
right
or
power
23
incidental
to
the
ownership
of
tobacco
products
,
alternative
24
nicotine
products,
or
vapor
products
.
25
Sec.
14.
Section
453A.45,
subsection
3,
Code
2020,
is
26
amended
to
read
as
follows:
27
3.
Every
retailer
and
subjobber
shall
procure
itemized
28
invoices
of
all
tobacco
products
,
alternative
nicotine
29
products,
and
vapor
products
purchased.
The
invoices
shall
30
show
the
name
and
address
of
the
seller
and
the
date
of
31
purchase.
The
retailer
and
subjobber
shall
preserve
a
legible
32
copy
of
each
invoice
for
three
years
from
the
date
of
purchase.
33
Invoices
shall
be
available
for
inspection
by
the
director
or
34
the
director’s
authorized
agents
or
employees
at
the
retailer’s
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or
subjobber’s
place
of
business.
1
Sec.
15.
Section
453A.47A,
subsection
10,
paragraph
b,
Code
2
2020,
is
amended
to
read
as
follows:
3
b.
Every
retailer
shall,
when
requested
by
the
department,
4
make
additional
reports
as
the
department
deems
necessary
and
5
proper
and
shall
at
the
request
of
the
department
furnish
6
full
and
complete
information
pertaining
to
any
transaction
7
of
the
retailer
involving
the
purchase
or
sale
or
use
of
8
tobacco,
tobacco
products,
alternative
nicotine
products,
or
9
vapor
products.
The
director
shall
specifically
prescribe
the
10
forms
necessary
and
require
each
retailer
to
provide
on
the
11
forms
prescribed
full
and
complete
information
pertaining
to
12
any
tobacco,
tobacco
products,
alternative
nicotine
products,
13
or
vapor
products
offered
for
sale
or
sold
by
the
retailer,
14
including
the
type
and
brand
of
the
product.
15
Sec.
16.
NEW
SECTION
.
453A.47D
Tax
on
vapor
products.
16
1.
A
tax
is
imposed
upon
all
vapor
products
in
this
state
17
at
the
rate
of
one
dollar
and
thirty-six
cents
per
cartridge
18
or
other
container
of
a
vapor
product
solution
or
substance,
19
whether
or
not
the
cartridge
or
other
container
of
a
vapor
20
product
solution
or
substance
is
a
component
of
the
electronic
21
cigarette,
electronic
cigar,
electronic
cigarillo,
electronic
22
pipe,
or
similar
product
or
device,
or
sold
separately.
23
2.
The
tax
on
vapor
products
shall
be
imposed
at
the
point
24
of
retail
sale
to
consumers
in
this
state.
The
amount
of
the
25
tax
shall
be
added
to
the
selling
price
of
each
cartridge
or
26
other
container
sold
in
this
state
and
shall
be
collected
from
27
the
purchaser
so
that
the
ultimate
consumer
bears
the
burden
28
of
the
tax.
29
Sec.
17.
Section
453A.48,
subsection
3,
Code
2020,
is
30
amended
to
read
as
follows:
31
3.
The
director
may
exchange
information
with
the
officers
32
and
agencies
of
other
states
administering
laws
relating
to
the
33
taxation
of
tobacco
products
and
vapor
products
.
34
Sec.
18.
Section
453A.51,
Code
2020,
is
amended
to
read
as
35
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follows:
1
453A.51
Assessment
of
cost
of
audit.
2
The
department
may
employ
auditors
or
other
persons
to
3
audit
and
examine
the
books
and
records
of
a
permit
holder
or
4
other
person
dealing
in
tobacco
products
or
vapor
products
5
to
ascertain
whether
the
permit
holder
or
other
person
has
6
paid
the
amount
of
the
taxes
required
to
be
paid
by
the
permit
7
holder
or
other
person
under
the
provisions
of
this
chapter
.
8
If
the
taxes
have
not
been
paid,
as
required,
the
department
9
shall
assess
against
the
permit
holder
or
other
person,
as
10
additional
penalty,
the
reasonable
expenses
and
costs
of
the
11
investigation
and
audit.
12
EXPLANATION
13
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
14
the
explanation’s
substance
by
the
members
of
the
general
assembly.
15
This
bill
relates
to
the
taxing
and
regulation
of
16
cigarettes,
tobacco
products,
alternative
nicotine
products,
17
and
vapor
products,
by
imposing
a
tax
on
vapor
products
in
the
18
state
at
the
rate
of
$1.36
per
cartridge
or
other
container
of
19
a
solution
or
substance,
which
may
or
may
not
contain
nicotine,
20
that
is
intended
to
be
used
with
or
in
a
vapor
product.
The
tax
21
is
imposed
at
the
point
of
retail
sale
on
cartridges
or
other
22
containers
sold
in
the
state
so
that
the
ultimate
consumer
23
bears
the
burden
of
the
tax.
Revenues
generated
from
the
tax
24
are
credited
to
the
health
care
trust
fund.
25
The
bill
makes
conforming
changes
to
applicable
Code
26
provisions.
Existing
penalties
for
violations
of
the
27
provisions
of
Code
chapter
453A
(cigarette
and
tobacco
taxes
28
and
regulation
of
alternative
nicotine
products
and
vapor
29
products),
including
permit
revocation
or
suspension
and
civil
30
penalties,
are
applicable
to
violations
of
the
bill.
31
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