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House
File
1035
-
Introduced
HOUSE
FILE
1035
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
321)
A
BILL
FOR
An
Act
relating
to
the
regulation
and
taxation
of
tobacco
1
products
and
heated
tobacco
products.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
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Section
1.
Section
421B.2,
subsection
2,
Code
2025,
is
1
amended
to
read
as
follows:
2
2.
“Cigarettes”
shall
mean
and
include
any
roll
for
smoking,
3
made
wholly
or
in
part
of
tobacco,
irrespective
of
size
or
4
shape
and
whether
or
not
such
tobacco
is
flavored,
adulterated
5
or
mixed
with
any
other
ingredient,
the
wrapper
or
cover
of
6
which
is
made
of
paper
or
any
other
substance
or
material
7
except
tobacco
,
and
include
a
heated
tobacco
product
as
defined
8
in
section
453A.1
.
9
Sec.
2.
Section
453A.1,
subsection
4,
Code
2025,
is
amended
10
to
read
as
follows:
11
4.
“Cigarette”
means
any
roll
for
smoking
made
wholly
or
in
12
part
of
tobacco,
or
any
substitute
for
tobacco,
irrespective
of
13
size
or
shape
and
irrespective
of
tobacco
or
any
substitute
for
14
tobacco
being
flavored,
adulterated,
or
mixed
with
any
other
15
ingredient,
where
such
roll
has
a
wrapper
or
cover
made
of
16
paper
or
any
other
material.
“Cigarette”
shall
be
construed
to
17
include
heated
tobacco
products.
However,
“cigarette”
shall
not
18
be
construed
to
include
cigars.
19
Sec.
3.
Section
453A.1,
Code
2025,
is
amended
by
adding
the
20
following
new
subsection:
21
NEW
SUBSECTION
.
15A.
“Heated
tobacco
product”
means
a
22
product
containing
tobacco
that
produces
an
inhalable
aerosol
23
by
heating
the
tobacco
by
means
of
a
device
without
combustion
24
of
the
tobacco
or
by
heat
generated
from
a
combustion
source
25
that
only
or
primarily
heats
rather
than
burns
the
tobacco.
26
Sec.
4.
Section
453A.1,
subsection
29,
Code
2025,
is
amended
27
to
read
as
follows:
28
29.
“Vapor
product”
means
any
noncombustible
product,
29
which
may
or
may
not
contain
nicotine,
that
employs
a
heating
30
element,
power
source,
electronic
circuit,
or
other
electronic,
31
chemical,
or
mechanical
means,
regardless
of
shape
or
size,
32
that
can
be
used
to
produce
vapor
from
a
solution
or
other
33
substance
liquid
.
“Vapor
product”
includes
an
electronic
34
cigarette,
electronic
cigar,
electronic
cigarillo,
electronic
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pipe,
or
similar
product
or
device,
and
any
cartridge
or
other
1
container
of
a
solution
or
other
substance
liquid
,
which
may
2
or
may
not
contain
nicotine,
that
is
intended
to
be
used
with
3
or
in
an
electronic
cigarette,
electronic
cigar,
electronic
4
cigarillo,
electronic
pipe,
or
similar
product
or
device.
5
“Vapor
product”
does
not
include
a
product
regulated
as
a
drug
6
or
device
by
the
United
States
food
and
drug
administration
7
under
chapter
V
of
the
federal
Food,
Drug,
and
Cosmetic
Act.
8
Sec.
5.
Section
453A.6,
subsection
1,
Code
2025,
is
amended
9
to
read
as
follows:
10
1.
a.
There
Except
as
provided
in
paragraph
“b”
,
there
is
11
imposed,
and
shall
be
collected
and
paid
to
the
department,
a
12
tax
on
all
cigarettes
used
or
otherwise
disposed
of
in
this
13
state
for
any
purpose
equal
to
six
and
eight-tenths
cents
on
14
each
cigarette.
15
b.
There
is
imposed,
and
shall
be
collected
and
paid
to
the
16
department,
a
tax
on
heated
tobacco
products
used
or
otherwise
17
disposed
of
in
this
state
for
any
purpose
equal
to
three
and
18
four-tenths
cents
on
each
consumable
unit
containing
a
heated
19
tobacco
product.
20
Sec.
6.
Section
453A.42,
Code
2025,
is
amended
by
adding
the
21
following
new
subsection:
22
NEW
SUBSECTION
.
5A.
“Heated
tobacco
product”
means
the
same
23
as
defined
in
section
453A.1,
except
“heated
tobacco
product”
24
does
not
include
a
vapor
product.
25
Sec.
7.
Section
453A.42,
subsection
16,
Code
2025,
is
26
amended
to
read
as
follows:
27
16.
“Tobacco
products”
means
cigars;
little
cigars
as
28
defined
herein;
cheroots;
stogies;
periques;
granulated,
plug
29
cut,
crimp
cut,
ready
rubbed,
and
other
smoking
tobacco;
30
snuff;
cavendish;
plug
and
twist
tobacco;
fine-cut
and
other
31
chewing
tobaccos;
shorts;
refuse
scraps,
clippings,
cuttings
32
and
sweepings
of
tobacco,
and
other
kinds
and
forms
of
tobacco,
33
prepared
in
such
manner
as
to
be
suitable
for
chewing
or
34
smoking
in
a
pipe
or
otherwise,
or
both
for
chewing
and
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smoking;
but
shall
not
include
cigarettes
or
heated
tobacco
1
products
as
defined
in
section
453A.1
,
subsection
4
.
2
Sec.
8.
Section
453C.1,
subsection
4,
paragraph
a,
Code
3
2025,
is
amended
by
adding
the
following
new
subparagraph:
4
NEW
SUBPARAGRAPH
.
(4)
Any
heated
tobacco
product
as
defined
5
in
section
453A.1.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
relates
to
the
regulation
and
taxation
of
tobacco
10
products
and
heated
tobacco
products.
11
The
bill
amends
Code
section
421B.2
by
including
heated
12
tobacco
products
in
the
definition
of
cigarette
for
the
purpose
13
of
cigarette
sales
including
the
determining
of
the
basic
cost
14
of
cigarettes
and
the
selling
of
cigarettes
at
less
than
cost
15
under
Code
chapter
421B.
16
The
bill
amends
Code
section
453A.1(4)
to
provide
that
the
17
definition
of
“cigarette”
includes
heated
tobacco
products
for
18
purposes
of
Code
chapter
453A
(cigarette
and
tobacco
taxes
19
and
regulation
of
alternative
nicotine
products
and
vapor
20
products).
21
The
bill
defines
“heated
tobacco
products”
for
purposes
of
22
Code
chapter
453A,
subchapter
I
(cigarettes
and
alternative
23
nicotine
products
and
vapor
products),
to
mean
a
product
24
containing
tobacco
that
produces
an
inhalable
aerosol
by
25
heating
the
tobacco
by
means
of
a
device
without
combustion
26
of
the
tobacco
or
by
heat
generated
from
a
combustion
source
27
that
only
or
primarily
heats
rather
than
burns
the
tobacco.
28
The
bill
defines
“heated
tobacco
products”
the
same
for
the
29
purposes
of
Code
chapter
453,
subchapter
II
(cigars,
other
30
tobacco
products,
and
alternative
nicotine
and
vapor
products),
31
except
the
definition
specifically
excludes
“vapor
products”
32
defined
in
Code
section
453A.1(29).
33
The
bill
amends
Code
section
453A.1(29)
to
provide
that
the
34
definition
of
“vapor
product”
include
liquid
nicotine
rather
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than
just
nicotine,
and
replaces
the
use
of
the
term
“other
1
substance”
in
the
definition
with
the
term
“liquid”.
2
Under
current
law
in
Code
chapter
453A,
subchapter
I,
a
tax
3
is
imposed
under
Code
section
453A.6
on
all
cigarettes
equal
to
4
6.80
cents
on
each
cigarette.
However,
the
bill
imposes
a
tax
5
on
each
cigarette
that
is
a
unit
containing
a
heated
tobacco
6
product
under
Code
chapter
453A,
subchapter
I,
that
is
equal
7
to
3.40
cents.
8
Under
current
law
in
Code
chapter
453A,
subchapter
II,
9
a
tax
is
imposed
under
Code
section
453A.43
on
all
tobacco
10
products
in
this
state
at
a
rate
of
22
percent
of
the
wholesale
11
price
of
the
tobacco
products,
except
little
cigars
and
snuff.
12
Currently,
cigarettes
are
also
excluded
from
the
22
percent
tax
13
on
the
wholesale
price.
By
amending
the
definition
of
“tobacco
14
products”
in
Code
chapter
453A,
subchapter
II,
to
exclude
15
heated
tobacco
products,
the
bill
excludes
heated
tobacco
16
products
including
vapor
products
from
the
22
percent
tax
on
17
the
wholesale
price
of
tobacco
products.
18
The
bill
defines
“cigarette”
to
include
heated
tobacco
19
products
for
purposes
of
regulating
cigarettes
under
Code
20
chapter
453C
(tobacco
product
manufacturers
——
financial
21
obligations).
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