Bill Text: IA SSB3007 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the regulation of certain tobacco and hemp-related products, and providing penalties.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-01-30 - Reported out of committee as SF 2127. [SSB3007 Detail]
Download: Iowa-2019-SSB3007-Introduced.html
Senate
Study
Bill
3007
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
DAWSON)
A
BILL
FOR
An
Act
relating
to
the
regulation
of
certain
tobacco
and
1
hemp-related
products,
and
providing
penalties.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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DIVISION
I
1
REGULATION
OF
DEVICE
RETAILERS
2
Section
1.
NEW
SECTION
.
453E.1
Definitions.
3
As
used
in
this
chapter,
unless
the
context
otherwise
4
requires:
5
1.
“Business”
means
any
trade,
occupation,
activity,
6
or
enterprise
engaged
in
for
the
purpose
of
selling
or
7
distributing
tobacco
products
and
devices
in
this
state.
8
2.
“Consumer”
means
any
person
who
has
title
to
or
9
possession
of
devices
in
storage,
for
use
or
other
consumption
10
in
this
state.
11
3.
“Controlled
substance”
means
controlled
substance
as
12
defined
in
section
124.101.
13
4.
“Delivery
sale”
means
any
sale
of
a
device
to
a
purchaser
14
in
this
state
where
the
purchaser
submits
the
order
for
15
such
sale
by
means
of
a
telephonic
or
other
method
of
voice
16
transmission,
mail
or
any
other
delivery
service,
or
the
17
internet
or
other
online
service
and
the
device
is
delivered
by
18
use
of
mail
or
a
delivery
service.
The
sale
of
a
device
shall
19
constitute
a
delivery
sale
regardless
of
whether
the
seller
is
20
located
in
this
state.
“Delivery
sale”
does
not
include
a
sale
21
to
a
distributor
or
retailer
of
a
device
not
for
personal
use.
22
5.
“Department”
means
the
department
of
revenue.
23
6.
“Device”
means
an
item
that
is
a
glass
or
metal
pipe
24
designed
to
ingest
a
substance
through
combustion
that
would
25
otherwise
be
defined
as
drug
paraphernalia
pursuant
to
21
26
U.S.C.
§863(d)
but
is
exempt
under
21
U.S.C.
§863(f)(2)
because
27
the
item
is
intended
for
use
with
tobacco
products.
28
7.
“Device
retailer”
means
a
tobacco
retailer
who
is
also
29
engaged
in
selling
devices
to
the
ultimate
consumer.
30
8.
“Director”
means
the
director
of
revenue.
31
9.
“Place
of
business”
means
any
place
where
tobacco
32
products
and
devices
are
sold,
stored,
or
kept
for
the
purpose
33
of
sale
or
consumption;
or
for
a
business
within
or
without
the
34
state
that
conducts
delivery
sales,
any
place
where
tobacco
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products
and
devices
are
sold
or
are
kept
for
the
purpose
of
1
sale,
including
delivery
sales.
2
10.
“Retail
outlet”
means
each
place
of
business
from
which
3
tobacco
products
and
devices
are
sold
to
consumers.
4
11.
“Sale”
means
any
transfer,
exchange,
or
barter,
in
5
any
manner
or
by
any
means
whatsoever,
for
consideration,
and
6
includes
and
means
all
sales
made
by
any
person.
7
12.
“Tobacco
products”
means
cigars;
little
cigars;
8
cheroots;
stogies;
periques;
granulated,
plug
cut,
crimp
cut,
9
ready
rubbed,
and
other
smoking
tobacco;
snuff;
cavendish;
10
plug
and
twist
tobacco;
fine-cut
and
other
chewing
tobaccos;
11
shorts;
refuse
scraps,
clippings,
cuttings
and
sweepings
of
12
tobacco,
and
other
kinds
and
forms
of
tobacco,
prepared
in
13
such
manner
as
to
be
suitable
for
chewing
or
smoking
in
a
pipe
14
or
otherwise,
or
both
for
chewing
and
smoking;
but
shall
not
15
include
cigarettes
as
defined
in
section
453A.1.
16
13.
“Tobacco
retailer”
means
a
retailer
as
defined
in
17
section
453A.42.
18
14.
“Use”
means
the
exercise
of
any
right
or
power
19
incidental
to
the
ownership
of
tobacco
products
or
devices.
20
Sec.
2.
NEW
SECTION
.
453E.2
Administration
——
rules.
21
1.
The
director
shall
administer
this
chapter.
The
director
22
shall
collect,
supervise,
and
enforce
the
collection
of
all
23
fees,
taxes,
and
civil
penalties
imposed
under
this
chapter
and
24
deposit
them
in
the
specialty
courts
program
fund
created
in
25
section
453E.6.
26
2.
The
director
may
adopt
rules
pursuant
to
chapter
17A
that
27
are
necessary
to
enforce
this
chapter.
28
3.
The
director
may
designate
employees
to
administer
29
and
enforce
the
provisions
of
this
chapter,
including
the
30
collection
of
all
taxes
provided
for
in
this
chapter.
In
the
31
enforcement,
the
director
may
request
aid
from
the
attorney
32
general,
the
special
agents
of
the
state,
any
county
attorney,
33
or
any
peace
officer.
The
director
may
appoint
clerks
and
34
additional
help
as
may
be
needed
to
administer
this
chapter.
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Sec.
3.
NEW
SECTION
.
453E.3
Device
retailers
——
permits
——
1
fees.
2
1.
Permits
required.
A
person
shall
not
engage
in
the
3
business
of
a
device
retailer
at
any
place
of
business
or
4
through
delivery
sales,
unless
the
person
complies
with
all
of
5
the
following:
6
a.
The
person
has
received
and
holds
a
permit
as
a
tobacco
7
retailer
pursuant
to
section
453A.47A
that
has
not
been
8
suspended
or
revoked
and
is
not
expired;
complies
with
the
9
provisions
of
chapter
453A
applicable
to
a
tobacco
retailer;
10
and
sells
tobacco
products
in
addition
to
devices
at
the
retail
11
outlet
or
through
delivery
sales.
12
b.
The
person
has
received
and
holds
a
permit
as
a
device
13
retailer
pursuant
to
this
section
that
has
not
been
suspended
14
or
revoked
and
is
not
expired,
and
complies
with
the
provisions
15
of
this
chapter.
16
2.
No
sales
without
device
retailer
permit.
A
device
17
retailer
shall
not
sell
devices
until
an
application
has
been
18
filed
and
the
fee
prescribed
paid
for
a
permit
and
until
such
19
permit
is
obtained
and
only
while
such
permit
is
not
suspended,
20
revoked,
or
expired.
21
3.
Number
of
device
retailer
permits.
An
application
shall
22
be
filed
and
a
permit
obtained
for
each
place
of
business
owned
23
or
operated
by
a
device
retailer
located
in
the
state.
If
an
24
out-of-state
device
retailer
makes
delivery
sales
of
devices,
25
an
application
shall
be
filed
with
the
department
and
a
permit
26
shall
be
issued
for
the
out-of-state
retailer’s
principal
place
27
of
business.
28
4.
Issuance.
Cities
may
issue
device
retailer
permits
29
to
device
retailers
located
within
their
respective
limits.
30
County
boards
of
supervisors
may
issue
device
retailer
permits
31
to
device
retailers
located
in
their
respective
counties,
32
outside
of
the
corporate
limits
of
cities.
The
city
or
county
33
shall
submit
a
duplicate
of
any
application
for
a
device
34
retailer
permit
to
the
alcoholic
beverages
division
of
the
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department
of
commerce
within
thirty
days
of
issuance
of
a
1
device
retailer
permit.
The
alcoholic
beverages
division
of
2
the
department
of
commerce
shall
submit
the
current
list
of
3
all
device
retailer
permits
issued
to
the
department
of
public
4
health
by
the
last
day
of
each
quarter
of
a
state
fiscal
year.
5
5.
Fees
——
expiration.
All
device
retailer
permits
provided
6
for
in
this
section
shall
expire
on
June
30
of
each
year.
A
7
device
retailer
permit
shall
not
be
granted
or
issued
until
the
8
applicant
has
paid
the
fees
provided
for
in
this
section
for
9
the
period
ending
June
30
next,
to
the
city
or
county
granting
10
the
device
retailer
permit.
The
fee
for
a
device
retailer
11
permit
is
one
thousand
dollars.
12
6.
Application.
Device
retailer
permits
shall
be
issued
13
only
upon
application,
accompanied
by
the
one
thousand
dollar
14
fee,
made
upon
forms
furnished
by
the
department
upon
written
15
request.
The
failure
to
furnish
such
forms
shall
be
no
excuse
16
for
the
failure
to
file
the
form
unless
absolute
refusal
is
17
shown.
The
forms
shall
specify
all
of
the
following:
18
a.
The
manner
under
which
the
device
retailer
transacts
or
19
intends
to
transact
business
as
a
device
retailer.
20
b.
The
principal
office,
residence,
and
place
of
business,
21
to
which
the
device
retailer
permit
is
to
apply.
22
c.
If
the
applicant
is
not
an
individual,
the
principal
23
officers
or
members
of
the
applicant,
not
to
exceed
three,
and
24
their
addresses.
25
d.
Such
other
information
as
the
director
shall
by
rule
26
prescribe.
27
7.
Records
and
reports
of
device
retailers.
28
a.
The
director
shall
prescribe
the
forms
necessary
for
29
the
efficient
administration
of
this
section
and
may
require
30
uniform
books
and
records
to
be
used
and
kept
by
each
device
31
retailer
or
other
person
as
deemed
necessary.
32
b.
Every
device
retailer
shall,
when
requested
by
the
33
department,
make
additional
reports
as
the
department
deems
34
necessary
and
proper
and
shall
at
the
request
of
the
department
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furnish
full
and
complete
information
pertaining
to
any
1
transaction
of
the
device
retailer
involving
the
purchase
or
2
sale
of
devices,
including
the
number
of
devices
sold.
3
8.
Requirements
for
sale.
4
a.
A
device
retailer
shall
not
sell,
give,
or
otherwise
5
supply
a
device
to
any
person
under
eighteen
years
of
age
and
6
must
verify
the
age
of
all
purchasers
of
devices.
Valid
proof
7
of
the
purchaser’s
identity
and
age
shall
be
obtained
at
the
8
time
the
device
is
supplied
to
the
purchaser.
9
b.
A
device
retailer
shall
only
display
and
sell
devices
in
10
a
location
where
the
device
retailer
ensures
that
the
devices
11
are
not
visible
to
a
person
younger
than
eighteen
years
of
12
age
and
where
no
person
younger
than
eighteen
years
of
age
is
13
present
or
permitted
to
enter
at
any
time.
14
Sec.
4.
NEW
SECTION
.
453E.4
Delivery
sale
of
devices
——
15
permit
——
requirements.
16
1.
a.
A
person
shall
not
mail,
ship,
or
otherwise
cause
17
to
be
delivered
any
device
in
connection
with
a
delivery
sale
18
to
any
other
person
within
this
state
unless
the
person
has
19
applied
for
and
holds
a
device
delivery
sale
permit
as
provided
20
in
this
section.
21
b.
A
person
applying
for
a
device
delivery
sale
permit
shall
22
submit
an
application
for
the
permit
electronically,
or
in
a
23
manner
prescribed
by
the
director.
24
c.
An
application
submitted
pursuant
to
paragraph
“b”
shall
25
be
accompanied
by
a
permit
fee
in
the
amount
of
one
thousand
26
dollars.
27
d.
The
director
may
in
accordance
with
this
section
issue
a
28
device
delivery
sale
permit
which
shall
be
valid
for
one
year
29
from
the
date
of
issuance
unless
it
is
sooner
suspended
or
30
revoked
for
a
violation
of
this
section.
31
e.
A
permit
issued
pursuant
to
this
section
may
be
renewed
32
annually
by
submitting
a
renewal
application
in
a
manner
33
prescribed
by
the
director,
accompanied
by
the
one
thousand
34
dollar
permit
fee.
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2.
The
delivery
sale
of
devices
pursuant
to
this
1
section
shall
be
subject
to
the
following
requirements
and
2
restrictions:
3
a.
All
devices
delivered
by
delivery
sale
directly
to
a
4
resident
of
this
state
shall
be
delivered
only
by
a
device
5
delivery
sale
permit
holder.
6
b.
A
device
delivery
sale
permit
holder
shall
only
deliver
7
devices
by
delivery
sale
to
a
resident
of
this
state
who
is
at
8
least
eighteen
years
of
age
for
the
resident’s
personal
use
and
9
not
for
resale.
10
c.
All
devices
delivered
by
delivery
sale
directly
to
a
11
resident
of
this
state
shall
be
conspicuously
labeled
with
the
12
words
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
18
OR
OLDER
13
REQUIRED
FOR
DELIVERY”
or
shall
be
conspicuously
labeled
with
14
alternative
wording
preapproved
by
the
director.
15
d.
A
device
delivery
sale
permit
holder
shall
obtain
valid
16
proof
of
identity
and
age
prior
to
delivery,
and
shall
obtain
17
the
signature
of
an
adult
as
a
condition
of
delivery.
18
e.
A
device
delivery
sale
permit
holder
shall
maintain
19
records
of
devices
delivered
which
include
the
name
of
the
20
device
manufacturer,
quantity
of
devices
delivered,
recipient’s
21
name
and
address
and
verification
of
age
on
an
electronic
or
22
paper
form
of
signature
from
the
recipient
of
the
device,
and
23
sales
and
excise
taxes
paid.
Records
shall
be
submitted
to
24
the
director
on
a
monthly
basis
in
a
form
and
manner
to
be
25
determined
by
the
director.
Records
shall
be
maintained
for
at
26
least
five
years.
27
3.
A
device
delivery
sale
permit
holder
shall
remit
to
the
28
director
an
amount
equivalent
to
the
applicable
sales
tax
and
29
excise
tax
on
devices
subject
to
delivery
sale
at
the
rates
30
specified
in
section
423.2
and
section
453E.5,
as
applicable,
31
for
deposit
as
provided
in
section
453E.6.
The
amount
shall
32
be
remitted
at
the
time
and
in
the
manner
provided
in
section
33
453E.5.
34
4.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
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have
consented
to
the
jurisdiction
of
the
director
or
any
other
1
agency
or
court
in
this
state
concerning
enforcement
of
this
2
section
and
any
related
laws,
rules,
or
regulations.
A
device
3
delivery
sale
permit
holder
shall
allow
the
director
to
perform
4
an
audit
of
records
of
devices
upon
request.
5
Sec.
5.
NEW
SECTION
.
453E.5
Sales
and
use
tax
on
sales
and
6
delivery
sales
of
devices
——
examination
of
records
and
premises
7
——
subpoena
for
witnesses
and
papers.
8
1.
A
sale
or
delivery
sale
of
a
device
within
this
state
9
shall
be
subject
to
the
sales
tax
provided
in
chapter
423,
10
subchapter
II.
All
the
provisions
for
the
lien
of
the
tax,
its
11
collection,
and
all
actions
as
provided
in
the
uniform
sales
12
and
use
tax
administration
Act,
chapter
423,
shall
apply
to
the
13
tax
imposed
in
this
chapter.
14
2.
There
is
levied
and
imposed
an
excise
tax
on
a
device
15
purchased
for
use
in
this
state
through
a
sale
or
delivery
sale
16
in
this
state
as
follows:
17
a.
If
the
purchase
price
of
the
device
is
twenty
dollars
or
18
less,
an
excise
tax
of
ten
dollars.
19
b.
If
the
purchase
price
of
the
device
is
more
than
twenty
20
dollars,
an
excise
tax
of
twenty
dollars.
21
3.
A
device
delivery
sale
permit
holder
shall
be
deemed
to
22
have
waived
all
claims
that
such
permit
holder
lacks
physical
23
presence
within
this
state
for
purposes
of
collecting
and
24
remitting
the
sales
and
excise
taxes.
25
4.
A
device
delivery
sale
permit
holder
making
taxable
26
delivery
sales
of
devices
within
this
state
and
a
device
27
retailer
shall
remit
to
the
department
all
sales
and
excise
28
taxes
due
on
such
sales
at
the
times
and
in
the
manner
as
29
established
by
rule
of
the
director.
30
5.
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
31
administer
this
section.
32
6.
Moneys
collected
under
this
section
shall
be
deposited
in
33
the
specialty
courts
program
fund
created
in
section
453E.6.
34
7.
a.
For
the
purpose
of
enabling
the
department
to
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determine
the
tax
liability
of
device
delivery
sale
permit
1
holders,
device
retailers,
or
any
other
person
dealing
in
2
devices
or
to
determine
whether
a
tax
liability
has
been
3
incurred,
the
department
shall
have
the
right
to
inspect
any
4
premises
of
the
device
delivery
sale
permit
holder,
device
5
retailer,
or
other
person
dealing
in
devices
located
within
6
or
without
the
state
of
Iowa
where
devices
are
manufactured,
7
produced,
made,
stored,
transported,
sold,
or
offered
for
sale
8
or
exchange,
and
to
examine
all
of
the
records
required
to
be
9
kept
or
any
other
records
that
may
be
kept
incident
to
the
10
conduct
of
the
business
of
said
device
delivery
sale
permit
11
holder,
retailer,
or
any
other
person
dealing
in
devices.
12
b.
The
department
shall
also
have
the
right
as
an
incident
13
to
determining
the
tax
liability,
or
whether
a
tax
liability
14
has
been
incurred,
to
examine
all
stocks
of
devices
and
to
15
remain
upon
the
premises
for
such
length
of
time
as
may
be
16
necessary
to
fully
determine
the
tax
liability,
or
whether
a
17
tax
liability
has
been
incurred.
18
c.
It
shall
be
unlawful
for
a
permit
holder
to
fail
to
19
produce
upon
demand
of
the
department
any
records
required
to
20
be
kept
or
to
hinder
or
prevent
in
any
manner
the
inspection
of
21
the
records
or
the
examination
of
the
premises.
22
d.
In
the
case
of
any
departmental
inspection
conducted
23
under
this
section
requiring
department
personnel
to
travel
24
outside
the
state
of
Iowa,
any
additional
costs
incurred
by
25
the
department
for
out-of-state
travel
expenses
shall
be
borne
26
by
the
device
delivery
sale
permit
holder,
retailer,
or
other
27
person
dealing
in
devices.
These
additional
costs
shall
be
28
those
costs
in
excess
of
the
costs
of
a
similar
inspection
29
conducted
at
the
geographical
point
located
within
the
state
30
of
Iowa
nearest
to
the
out-of-state
inspection
point.
In
31
lieu
of
conducting
an
on-premises
out-of-state
inspection,
32
the
department
shall
have
the
authority
to
direct
the
device
33
delivery
sale
permit
holder,
retailer,
or
other
person
dealing
34
in
devices
to
assemble
and
transport
all
records
described
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in
this
subsection
to
the
nearest
practical
and
convenient
1
geographical
location
in
Iowa
for
inspection
by
the
department.
2
Sec.
6.
NEW
SECTION
.
453E.6
Specialty
courts
program
fund.
3
1.
A
specialty
courts
program
fund
is
created
in
the
state
4
treasury
under
the
control
of
the
director
of
the
department
5
of
corrections.
Moneys
from
permit
fees,
with
the
exception
6
of
permit
fees
collected
by
cities
or
counties
in
the
issuance
7
of
permits,
penalties,
sales
and
use
taxes,
and
other
amounts
8
collected
under
this
chapter
shall
be
deposited
in
the
fund.
9
Permit
fees
collected
by
cities
or
counties
under
this
chapter
10
shall
be
paid
to
the
treasurer
of
the
city
where
the
permit
is
11
effective,
or
to
another
city
officer
as
designated
by
the
city
12
council,
and
credited
to
the
general
fund
of
the
city.
Permit
13
fees
collected
by
counties
under
this
chapter
shall
be
paid
to
14
the
county
treasurer
and
credited
to
the
general
fund
of
the
15
county.
16
2.
Moneys
in
the
fund
shall
be
used
only
as
provided
17
in
appropriations
from
the
fund
for
the
purpose
of
the
18
support
of
specialty
courts
to
address
underlying
substance
19
use
disorder-related
and
mental
health-related
issues
that
20
contribute
to
the
contact
of
individuals
with
the
justice
21
system.
22
3.
The
fund
shall
be
separate
from
the
general
fund
of
the
23
state
and
shall
not
be
considered
part
of
the
general
fund
of
24
the
state.
The
moneys
in
the
fund
shall
not
be
considered
25
revenue
of
the
state,
but
rather
shall
be
moneys
of
the
fund.
26
The
moneys
in
the
fund
are
not
subject
to
reversion
to
the
27
general
fund
of
the
state
under
section
8.33
and
shall
not
28
be
transferred,
used,
obligated,
appropriated,
or
otherwise
29
encumbered,
except
to
provide
for
the
purposes
of
this
section.
30
Notwithstanding
section
12C.7,
subsection
2,
interest
or
31
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
32
the
fund.
33
4.
The
treasurer
of
state
shall
provide
a
quarterly
34
report
of
fund
activities
and
balances
to
the
director
of
the
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department
of
corrections.
1
Sec.
7.
NEW
SECTION
.
453E.7
Permits
——
suspension
——
2
revocation
——
penalties.
3
1.
The
provisions
of
chapter
453A
including
the
permit
4
suspension
and
revocation
provisions
and
the
civil
penalties
5
established
in
section
453A.22
shall
apply
to
tobacco
retailers
6
who
are
also
device
retailer
permit
holders
or
device
delivery
7
sale
permit
holders
under
this
chapter.
The
provisions
of
8
chapter
453A
applicable
to
persons
other
than
tobacco
retailers
9
who
violate
chapter
453A
shall
also
apply
to
persons
who
10
violate
this
chapter.
11
2.
A
person
holding
a
device
retailer
permit
or
a
12
device
delivery
sale
permit
under
this
chapter
who
violates
13
this
chapter
by
marketing
or
selling
a
device
to
be
used
14
or
attempted
to
be
used
in
combination
with
a
controlled
15
substance
to
knowingly
or
intentionally
and
primarily
inject,
16
ingest,
inhale,
or
otherwise
introduce
into
the
human
body
a
17
controlled
substance,
resulting
in
the
device
constituting
drug
18
paraphernalia
pursuant
to
section
124.414,
commits
a
simple
19
misdemeanor
in
violation
of
section
124.414
and
is
also
subject
20
to
permit
revocation.
21
3.
a.
If
a
person
holding
a
device
retailer
permit
or
a
22
device
delivery
sale
permit
issued
by
the
department
under
this
23
chapter
has
willfully
violated
this
chapter,
the
department
24
shall
revoke
the
permit
upon
notice
and
hearing.
The
hearing
25
before
the
department
may
be
held
at
a
site
in
the
state
as
the
26
department
may
direct.
The
notice
shall
be
given
by
mailing
a
27
copy
to
the
permit
holder’s
place
of
business
as
it
appears
on
28
the
application
for
a
permit.
If,
upon
hearing,
the
department
29
finds
that
the
violation
has
occurred,
the
department
may
30
revoke
the
permit.
31
b.
If
a
device
retailer
permit
or
a
device
delivery
32
sale
permit
is
suspended
or
revoked
under
this
section,
the
33
suspension
or
revocation
shall
only
apply
to
the
place
of
34
business
at
which
the
violation
occurred
and
shall
not
apply
to
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any
other
place
of
business
to
which
the
permit
applies
but
at
1
which
the
violation
did
not
occur.
2
c.
The
department
or
local
authority
shall
report
the
3
suspension
or
revocation
of
a
device
retailer
permit
or
a
4
device
delivery
sale
permit
under
this
section
to
the
alcoholic
5
beverages
division
of
the
department
of
commerce
within
thirty
6
days
of
the
suspension
or
revocation
of
the
permit.
7
4.
In
addition
to
any
other
applicable
penalties,
a
device
8
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
9
who
violates
this
chapter
shall
be
subject
to
the
following:
10
a.
For
a
first
violation,
a
civil
penalty
of
five
hundred
11
dollars.
12
b.
For
a
second
violation,
a
civil
penalty
of
one
thousand
13
dollars.
14
c.
A
third
violation
constitutes
grounds
for
suspension
or
15
revocation
of
the
permit
under
this
chapter.
16
5.
A
person
other
than
a
device
retailer
permit
holder
or
a
17
device
delivery
sale
permit
holder
who
violates
this
chapter
18
shall
be
subject
to
the
following
penalties:
19
a.
For
a
first
violation,
a
civil
penalty
of
one
thousand
20
dollars.
21
b.
For
a
second
violation,
a
civil
penalty
of
two
thousand
22
dollars.
23
c.
For
a
third
or
subsequent
violation,
a
civil
penalty
of
24
five
thousand
dollars.
25
DIVISION
II
26
HEMP
PRODUCTS
——
RETAIL
SALES
27
Sec.
8.
NEW
SECTION
.
126.24
Hemp
products
——
retail
sales
28
——
claims.
29
Unless
a
state
or
federal
agency
has
substantiated
and
30
approved
the
efficacy
and
safety
claims
of
a
product
based
31
on
competent
and
reliable
scientific
evidence,
a
person
32
engaging
in
the
retail
sale
in
this
state
of
a
hemp
product
33
that
contains
hemp-derived
cannabidiol,
or
in
the
retail
sale
34
of
a
cosmetic,
personal
care
product,
or
product
intended
for
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human
or
animal
consumption
to
which
hemp-derived
cannabidiol
1
has
been
added
in
compliance
with
section
204.7,
subsection
2
9,
shall
include
on
the
product’s
principal
display
panel,
3
a
statement
that
the
product
may
or
may
not
contain
the
4
ingredients
stated
on
the
label,
that
the
efficacy
and
safety
5
of
the
product
have
not
been
substantiated
or
approved
by
6
a
state
or
federal
agency
based
on
competent
and
reliable
7
scientific
evidence,
and
that
the
consumer
should
use
the
8
product
at
the
consumer’s
own
risk.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
relates
to
the
regulation
of
certain
tobacco
and
13
hemp-related
products.
14
Division
I
of
the
bill
requires
a
person
who
engages
in
15
the
business
of
a
device
retailer
through
a
retail
outlet
16
or
delivery
sales
to
receive
and
hold
a
permit
as
a
tobacco
17
retailer,
comply
with
provisions
applicable
to
a
tobacco
18
retailer,
sell
tobacco
products
in
addition
to
devices
at
the
19
retail
outlet
or
through
delivery
sales,
and
hold
a
permit
20
as
a
device
retailer.
The
bill
provides
for
the
application
21
for
and
issuance
of
device
retailer
permits
by
cities
and
22
counties
depending
upon
the
location
of
the
retailer;
requires
23
the
payment
of
a
$1,000
fee
for
each
permit;
and
provides
for
24
annual
expiration
of
the
permits.
The
bill
also
requires
25
device
retailer
permit
holders
to
keep
certain
records
and
26
submit
reports
to
the
department
of
revenue;
establishes
27
requirements
for
the
sale
of
devices
including
that
a
device
28
retailer
shall
not
sell,
give,
or
otherwise
supply
a
device
to
29
any
person
under
18
years
of
age
and
must
verify
the
age
of
30
all
purchasers
of
devices;
and
provides
that
a
device
retailer
31
shall
only
display
and
sell
devices
in
a
location
where
the
32
device
retailer
ensures
that
the
devices
are
not
visible
to
a
33
person
younger
than
18
years
of
age
and
where
no
person
younger
34
than
18
years
of
age
is
present
or
permitted
to
enter
at
any
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time.
1
The
bill
establishes
requirements
for
the
delivery
sale
2
of
devices
including
permit
requirements
and
restrictions
3
including
all
devices
delivered
by
delivery
sale
directly
to
4
a
resident
of
this
state
shall
be
delivered
by
a
holder
of
5
a
device
delivery
sale
permit;
that
a
device
delivery
sale
6
permit
holder
shall
only
deliver
devices
by
delivery
sale
to
7
a
resident
of
this
state
who
is
at
least
18
years
of
age,
for
8
the
resident’s
personal
use
and
consumption
and
not
for
resale;
9
all
devices
delivered
by
delivery
sale
directly
to
a
resident
10
of
this
state
shall
be
conspicuously
labeled
with
the
words
11
“CONTAINS
DEVICE:
SIGNATURE
OF
PERSON
AGE
18
OR
OLDER
REQUIRED
12
FOR
DELIVERY”
or
with
an
alternative
wording
preapproved
by
13
the
director
of
revenue;
a
device
delivery
sale
permit
holder
14
shall
obtain
valid
proof
of
identity
and
age
prior
to
delivery,
15
and
shall
obtain
the
signature
of
an
adult
as
a
condition
of
16
delivery;
and
that
a
device
delivery
sale
permit
holder
shall
17
maintain
records
of
devices
delivered
which
include
certain
18
information
that
must
be
maintained
for
five
years.
19
The
bill
provides
for
the
imposition,
collection,
and
20
payment
of
sales
and
excise
taxes
on
the
retail
sale,
including
21
delivery
sales,
of
devices.
Moneys
collected,
with
the
22
exception
of
city
and
county
permit
fees,
are
to
be
deposited
23
in
the
specialty
courts
program
fund
created
in
the
bill
to
24
be
used
for
the
purpose
of
the
support
of
specialty
courts
25
to
address
underlying
substance
use
disorder-related
and
26
mental
health-related
issues
that
contribute
to
the
contact
of
27
individuals
with
the
justice
system.
28
The
bill
provides
penalties
for
violations
of
the
bill.
29
The
applicable
provisions
of
Code
chapter
453A
(cigarette
and
30
tobacco
taxes
and
regulation
of
alternative
nicotine
products
31
and
vapor
products)
including
penalties
and
license
suspension
32
and
revocation
provisions
and
penalties
applicable
to
those
33
other
than
permit
holders
apply
to
tobacco
retailers
who
are
34
also
device
retailer
permit
holders
or
device
delivery
sale
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permit
holders
as
well
as
to
those
who
are
not
permit
holders.
1
Additionally,
a
person
holding
a
device
retailer
permit
2
or
a
device
delivery
sale
permit
who
violates
the
bill
by
3
marketing
or
selling
a
device
to
be
used
or
attempted
to
be
4
used
in
combination
with
a
controlled
substance
to
knowingly
5
or
intentionally
and
primarily
inject,
ingest,
inhale,
or
6
otherwise
introduce
into
the
human
body
a
controlled
substance,
7
resulting
in
the
device
constituting
drug
paraphernalia,
8
commits
a
simple
misdemeanor
in
violation
of
Code
section
9
124.414
and
is
also
subject
to
permit
revocation.
10
If
a
person
holding
a
device
retailer
permit
or
a
device
11
delivery
sale
permit
willfully
violates
the
bill,
the
12
department
shall
revoke
the
permit
upon
notice
and
hearing.
13
In
addition
to
any
other
applicable
penalties,
a
device
14
retailer
permit
holder
or
a
device
delivery
sale
permit
holder
15
who
violates
the
Code
chapter
is
subject
to
a
civil
penalty
16
of
$500
for
a
first
violation,
a
civil
penalty
of
$1,000
for
17
a
second
violation,
and
a
third
violation
constitutes
grounds
18
for
suspension
or
revocation
of
the
permit.
A
person
other
19
than
a
device
retailer
permit
holder
or
a
device
delivery
sale
20
permit
holder
who
violates
the
Code
chapter
is
subject
to
a
21
civil
penalty
of
$1,000
for
a
first
violation,
a
civil
penalty
22
of
$2,000
for
a
second
violation,
and
a
civil
penalty
of
$5,000
23
for
a
third
or
subsequent
violation.
24
Division
II
of
the
bill
relates
to
claims
made
regarding
25
hemp
products
sold
at
retail.
The
bill
provides
that
unless
26
a
state
or
federal
agency
has
substantiated
and
approved
the
27
efficacy
and
safety
claims
of
a
product
based
on
competent
and
28
reliable
scientific
evidence,
a
person
engaging
in
the
retail
29
sale
in
this
state
of
a
hemp
product
that
contains
hemp-derived
30
cannabidiol,
or
in
the
retail
sale
of
a
cosmetic,
personal
care
31
product,
or
product
intended
for
human
or
animal
consumption
32
to
which
hemp-derived
cannabidiol
has
been
added
in
compliance
33
with
Code
section
204.7(9),
shall
include
on
the
product’s
34
principal
display
panel
a
statement
that
the
product
may
or
35
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S.F.
_____
may
not
contain
the
ingredients
stated
on
the
label,
that
the
1
efficacy
and
safety
of
the
product
have
not
been
substantiated
2
or
approved
by
a
state
or
federal
agency
based
on
competent
and
3
reliable
scientific
evidence,
and
that
the
consumer
should
use
4
the
product
at
the
consumer’s
own
risk.
5
The
violation
of
this
provision
is
a
serious
misdemeanor
as
6
well
as
an
unfair
practice
under
Code
section
714.16.
7
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