Read the full stored bill text
House
File
2011
-
Introduced
HOUSE
FILE
2011
BY
GEARHART
A
BILL
FOR
An
Act
relating
to
the
taxation
and
regulation
of
alternative
1
nicotine
products
and
vapor
products,
creating
the
2
Iowa
cancer
research
fund,
and
including
effective
date
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
453A.1,
subsections
1
and
29,
Code
2026,
1
are
amended
to
read
as
follows:
2
1.
“Alternative
nicotine
product”
means
a
product,
not
3
consisting
of
or
containing
tobacco,
that
provides
for
the
4
ingestion
into
the
body
of
nicotine,
or
a
nicotine
analog,
5
whether
by
chewing,
absorbing,
dissolving,
inhaling,
snorting,
6
or
sniffing,
or
by
any
other
means.
“Alternative
nicotine
7
product”
does
not
include
cigarettes,
tobacco
products,
or
vapor
8
products,
or
a
product
that
is
regulated
as
a
drug
or
device
by
9
the
United
States
food
and
drug
administration
under
chapter
V
10
of
the
Federal
Food,
Drug,
and
Cosmetic
Act.
11
29.
a.
“Vapor
product”
means
any
noncombustible
product,
12
which
may
or
may
not
contain
nicotine
or
a
nicotine
analog
,
13
that
employs
a
heating
element,
power
source,
electronic
14
circuit,
or
other
electronic,
chemical,
or
mechanical
means,
15
regardless
of
shape
or
size,
that
can
be
used
to
produce
vapor
16
from
a
solution
or
other
substance.
“Vapor
product”
includes
an
17
but
is
not
limited
to
the
following:
18
(1)
Any
product
or
device
marketed,
manufactured,
19
distributed,
or
sold
as
an
electronic
cigarette,
electronic
20
cigar,
electronic
cigarillo,
electronic
pipe,
or
similar
21
product
or
device
,
and
any
.
22
(2)
Any
cartridge
or
other
container
of
a
solution
or
other
23
substance,
which
may
or
may
not
contain
nicotine
or
a
nicotine
24
analog
,
that
is
intended
to
be
used
with
or
in
an
electronic
25
cigarette,
electronic
cigar,
electronic
cigarillo,
electronic
26
pipe,
or
similar
product
or
device.
27
(3)
Any
component,
part,
or
accessory
of
such
a
product
28
or
device
that
is
used
during
the
operation
of
the
product
or
29
device
when
sold
in
combination
with
any
substance
containing
30
nicotine,
a
nicotine
analog,
tobacco,
or
tobacco
derivative.
31
b.
“Vapor
product”
does
not
include
a
any
of
the
following:
32
(1)
A
product
regulated
as
a
drug
or
device
by
the
United
33
States
food
and
drug
administration
under
chapter
V
of
the
34
Federal
Food,
Drug,
and
Cosmetic
Act.
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(2)
Any
component,
part,
or
accessory
of
such
a
product
1
or
device
that
is
used
during
the
operation
of
the
product
2
or
device
when
not
sold
in
combination
with
any
substance
3
containing
nicotine,
a
nicotine
analog,
tobacco,
or
tobacco
4
derivative.
5
Sec.
2.
Section
453A.1,
Code
2026,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
18A.
“Nicotine
analog”
means
a
substance
8
that
has
a
chemical
structure
that
is
substantially
similar
to
9
nicotine,
or
that
has
an
effect
on
the
central
nervous
system
10
that
is
substantially
similar
to,
or
greater
than,
the
effects
11
of
nicotine
on
the
central
nervous
system.
12
Sec.
3.
Section
453A.35,
subsection
1,
paragraph
a,
Code
13
2026,
is
amended
to
read
as
follows:
14
a.
With
the
exception
of
revenues
credited
to
the
health
15
care
trust
fund
pursuant
to
paragraph
“b”
and
revenues
credited
16
to
the
Iowa
cancer
research
fund
pursuant
to
paragraph
“c”
,
17
the
proceeds
derived
from
the
sale
of
stamps
and
the
payment
18
of
fees
and
penalties
provided
for
under
this
chapter
,
and
19
the
permit
fees
received
from
all
state
permits
issued
by
the
20
department,
shall
be
credited
to
the
general
fund
of
the
state.
21
Sec.
4.
Section
453A.35,
subsection
1,
Code
2026,
is
amended
22
by
adding
the
following
new
paragraph:
23
NEW
PARAGRAPH
.
c.
The
revenues
generated
from
the
24
additional
tax
in
section
453A.43A
shall
be
credited
to
the
25
Iowa
cancer
research
fund
created
in
section
453A.35B.
26
Sec.
5.
NEW
SECTION
.
453A.35B
Iowa
cancer
research
fund.
27
1.
An
Iowa
cancer
research
fund
is
created
in
the
office
of
28
the
treasurer
of
state
under
the
authority
of
the
department
of
29
health
and
human
services.
The
fund
consists
of
the
revenues
30
generated
from
the
additional
tax
in
section
453A.43A.
Moneys
31
in
the
fund
shall
be
separate
from
the
general
fund
of
the
32
state
and
shall
not
be
considered
part
of
the
general
fund
of
33
the
state.
Moneys
in
the
fund
shall
be
used
only
as
specified
34
in
this
section
and
shall
be
appropriated
only
for
the
uses
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specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
1
and
shall
not
be
transferred,
used,
obligated,
appropriated,
2
or
otherwise
encumbered,
except
as
provided
in
this
section.
3
Notwithstanding
section
12C.7,
subsection
2,
interest
or
4
earnings
on
moneys
deposited
in
the
fund
shall
be
credited
to
5
the
fund.
6
2.
Moneys
in
the
fund
shall
not
be
disbursed
prior
to
7
July
1,
2027,
and
shall
only
be
used
for
purposes
related
8
to
supporting
and
funding
cancer
research
in
the
state.
The
9
department
of
health
and
human
services
shall
develop
an
10
application
process
and
guidelines
for
cancer
researchers
to
11
receive
moneys
from
the
fund.
12
3.
The
department
of
health
and
human
services
shall
report
13
on
the
program
pursuant
to
section
217.21,
beginning
with
the
14
period
disbursements
commence.
15
Sec.
6.
Section
453A.40,
subsections
1
and
3,
Code
2026,
are
16
amended
to
read
as
follows:
17
1.
All
persons
required
to
obtain
a
permit
or
to
be
licensed
18
under
section
453A.13
or
section
453A.44
having
in
their
19
possession
and
held
for
resale
on
the
effective
date
of
an
20
increase
in
the
tax
rate
cigarettes,
little
cigars,
or
tobacco
21
products
,
alternative
nicotine
products,
or
vapor
products
upon
22
which
the
tax
under
section
453A.6
,
or
453A.43
,
or
453A.43A
23
has
been
paid,
unused
cigarette
tax
stamps
which
have
been
24
paid
for
under
section
453A.8
,
unused
metered
imprints
which
25
have
been
paid
for
under
section
453A.12
,
or
tobacco
products
,
26
alternative
nicotine
products,
or
vapor
products
for
which
the
27
tax
has
not
been
paid
under
section
453A.46
shall
be
subject
to
28
an
inventory
tax
on
the
items
as
provided
in
this
section
.
29
3.
The
rate
of
the
inventory
tax
on
each
item
subject
to
30
the
tax
as
specified
in
subsection
1
is
equal
to
the
difference
31
between
the
amount
paid
on
each
item
under
section
453A.6
,
32
453A.8
,
453A.12
,
or
453A.43
,
or
453A.43A
prior
to
the
tax
33
increase
and
the
amount
that
is
to
be
paid
on
each
similar
item
34
under
section
453A.6
,
453A.8
,
453A.12
,
or
453A.43
,
or
453A.43A
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after
the
tax
increase
except
that
in
computing
the
rate
of
the
1
inventory
tax
any
discount
allowed
or
allowable
under
section
2
453A.8
shall
not
be
considered.
3
Sec.
7.
Section
453A.42,
subsections
5,
7,
15,
and
18,
Code
4
2026,
are
amended
to
read
as
follows:
5
5.
“Distributor”
means
any
and
each
of
the
following:
6
a.
Any
person
engaged
in
the
business
of
selling
tobacco
7
products
,
alternative
nicotine
products,
or
vapor
products
8
in
this
state
who
brings,
or
causes
to
be
brought,
into
this
9
state
from
without
the
state
any
tobacco
products
,
alternative
10
nicotine
products,
or
vapor
products
for
sale
;
.
11
b.
Any
person
who
makes,
manufactures,
or
fabricates
tobacco
12
products
,
alternative
nicotine
products,
or
vapor
products
in
13
this
state
for
sale
in
this
state
;
.
14
c.
Any
person
engaged
in
the
business
of
selling
tobacco
15
products
,
alternative
nicotine
products,
or
vapor
products
16
without
this
state
who
ships
or
transports
tobacco
products
,
17
alternative
nicotine
products,
or
vapor
products
to
retailers
18
in
this
state,
to
be
sold
by
those
retailers.
19
7.
“Manufacturer”
means
a
person
who
manufactures
and
sells
20
tobacco
products
,
alternative
nicotine
products,
or
vapor
21
products
.
22
15.
“Subjobber”
means
any
person,
other
than
a
manufacturer
23
or
distributor,
who
buys
tobacco
products
,
alternative
nicotine
24
products,
or
vapor
products
from
a
distributor
and
sells
them
25
to
persons
other
than
the
ultimate
consumers.
26
18.
“Wholesale
sales
price”
means
the
established
price
27
for
which
a
manufacturer
sells
a
tobacco
product
,
alternative
28
nicotine
products,
or
vapor
products
to
a
distributor,
29
exclusive
of
any
discount
or
other
reduction.
30
Sec.
8.
NEW
SECTION
.
453A.43A
Additional
taxes
on
31
alternative
nicotine
and
vapor
products.
32
1.
a.
A
tax
is
imposed
upon
all
alternative
nicotine
33
products
and
all
vapor
products
in
this
state
and
upon
any
34
person
engaged
as
a
distributor
of
alternative
nicotine
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products
and
vapor
products,
at
the
rate
of
ten
percent
of
the
1
wholesale
sales
price
of
the
alternative
nicotine
products
or
2
vapor
products.
3
b.
The
tax
on
alternative
nicotine
products
and
vapor
4
products
shall
be
imposed
at
the
time
the
distributor
does
any
5
of
the
following:
6
(1)
Brings,
or
causes
to
be
brought
into
this
state
from
7
outside
the
state,
alternative
nicotine
products
or
vapor
8
products
for
sale.
9
(2)
Makes,
manufactures,
or
fabricates
alternative
nicotine
10
products
or
vapor
products
in
this
state
for
sale
in
this
11
state.
12
(3)
Ships
or
transports
alternative
nicotine
products
or
13
vapor
products
to
retailers
in
this
state,
to
be
sold
by
the
14
retailers.
15
2.
A
tax
is
imposed
upon
the
use
or
storage
of
alternative
16
nicotine
products
or
vapor
products
in
this
state,
and
upon
17
any
person
who
uses
or
stores
alternative
nicotine
products
or
18
vapor
products,
at
the
rate
of
ten
percent
of
the
cost
of
the
19
alternative
nicotine
products
or
vapor
products,
if
the
tax
20
imposed
under
subsection
1
has
not
been
paid.
21
3.
Any
alternative
nicotine
product
or
vapor
product
22
with
respect
to
which
a
tax
has
once
been
imposed
under
23
this
subchapter
shall
not
again
be
subject
to
tax
under
this
24
subchapter.
25
4.
The
tax
imposed
by
this
section
shall
not
apply
with
26
respect
to
any
alternative
nicotine
product
or
vapor
product
27
which
under
the
constitution
and
laws
of
the
United
States
may
28
not
be
made
the
subject
of
taxation
by
this
state.
29
5.
The
tax
imposed
by
this
section
shall
be
in
addition
to
30
any
other
taxes
imposed
by
law.
31
6.
All
excise
taxes
collected
under
this
section
by
any
32
person
are
deemed
to
be
held
in
trust
for
the
state
of
Iowa.
33
Sec.
9.
Section
453A.44,
subsections
1,
3,
and
10,
Code
34
2026,
are
amended
to
read
as
follows:
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1.
No
A
person
shall
engage
in
the
business
of
a
distributor
1
or
subjobber
of
tobacco
products
at
any
place
of
business
2
without
first
having
received
a
license
from
the
director
to
3
engage
in
that
business
at
that
place
of
business.
4
3.
A
person
without
this
state
who
ships
or
transports
5
tobacco
products
,
alternative
nicotine
products,
or
vapor
6
products
to
retailers
in
this
state,
to
be
sold
by
those
7
retailers,
may
make
application
for
a
license
as
a
distributor,
8
be
granted
a
license
by
the
director,
and
thereafter
be
subject
9
to
all
the
provisions
of
this
subchapter
and
entitled
to
act
as
10
a
licensed
distributor.
11
10.
The
director
may
revoke,
cancel,
or
suspend
the
12
license
or
licenses
of
any
distributor
or
subjobber
for
13
violation
of
any
of
the
provisions
of
this
subchapter
,
or
14
any
other
act
applicable
to
the
sale
of
tobacco
products,
15
alternative
nicotine
products,
or
vapor
products,
or
any
rule
16
or
regulations
promulgated
by
the
director
in
furtherance
of
17
this
subchapter
.
No
A
license
shall
not
be
revoked,
canceled,
18
or
suspended
except
after
notice
and
a
hearing
by
the
director
19
as
provided
in
section
453A.48
.
20
Sec.
10.
Section
453A.45,
Code
2026,
is
amended
to
read
as
21
follows:
22
453A.45
Licensees,
duties.
23
1.
a.
Every
distributor
shall
keep
at
each
licensed
24
place
of
business
complete
and
accurate
records
for
that
25
place
of
business,
including
itemized
invoices,
of
tobacco
26
products
,
alternative
nicotine
products,
or
vapor
products
27
held,
purchased,
manufactured,
brought
in
or
caused
to
be
28
brought
in
from
without
the
state,
or
shipped
or
transported
to
29
retailers
in
this
state,
and
of
all
sales
of
tobacco
products
,
30
alternative
nicotine
products,
or
vapor
products
made,
except
31
sales
to
the
ultimate
consumer.
32
b.
When
a
licensed
distributor
sells
tobacco
products
,
33
alternative
nicotine
products,
or
vapor
products
exclusively
to
34
the
ultimate
consumer
at
the
address
given
in
the
license,
an
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invoice
of
those
sales
is
not
required,
but
itemized
invoices
1
shall
be
made
of
all
tobacco
products
,
alternative
nicotine
2
products,
or
vapor
products
transferred
to
other
retail
3
outlets
owned
or
controlled
by
that
licensed
distributor.
All
4
books,
records,
and
other
papers
and
documents
required
by
5
this
subsection
to
be
kept
shall
be
preserved
for
a
period
6
of
at
least
three
years
after
the
date
of
the
documents
or
7
the
date
of
the
entries
appearing
in
the
records,
unless
the
8
director,
in
writing,
authorized
their
destruction
or
disposal
9
at
an
earlier
date.
At
any
time
during
usual
business
hours,
10
the
director,
or
the
director’s
duly
authorized
agents
or
11
employees,
may
enter
any
place
of
business
of
a
distributor,
12
without
a
search
warrant,
and
inspect
the
premises,
the
records
13
required
to
be
kept
under
this
subsection
,
and
the
tobacco
14
products
,
alternative
nicotine
products,
or
vapor
products
15
contained
therein,
to
determine
if
all
the
provisions
of
this
16
subchapter
are
being
fully
complied
with.
If
the
director,
17
or
any
such
agent
or
employee,
is
denied
free
access
or
is
18
hindered
or
interfered
with
in
making
the
examination,
the
19
license
of
the
distributor
at
that
premises
is
subject
to
20
revocation
by
the
director.
21
2.
Every
person
who
sells
tobacco
products
,
alternative
22
nicotine
products,
or
vapor
products
to
persons
other
than
the
23
ultimate
consumer
shall
render
with
each
sale
itemized
invoices
24
showing
the
seller’s
name
and
address,
the
purchaser’s
name
and
25
address,
the
date
of
sale,
and
all
prices
and
discounts.
The
26
person
shall
preserve
legible
copies
of
all
these
invoices
for
27
three
years
from
the
date
of
sale.
28
3.
Every
retailer
and
subjobber
shall
procure
itemized
29
invoices
of
all
tobacco
products
,
alternative
nicotine
30
products,
or
vapor
products
purchased.
The
invoices
shall
show
31
the
name
and
address
of
the
seller
and
the
date
of
purchase.
32
The
retailer
and
subjobber
shall
preserve
a
legible
copy
33
of
each
invoice
for
three
years
from
the
date
of
purchase.
34
Invoices
shall
be
available
for
inspection
by
the
director
or
35
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2011
the
director’s
authorized
agents
or
employees
at
the
retailer’s
1
or
subjobber’s
place
of
business.
2
4.
Records
of
all
deliveries
or
shipments
of
tobacco
3
products
,
alternative
nicotine
products,
or
vapor
products
from
4
any
public
warehouse
of
first
destination
in
this
state
which
5
is
subject
to
the
provisions
of
and
licensed
under
chapter
6
554
shall
be
kept
by
the
warehouse
and
be
available
to
the
7
director
for
inspection.
They
The
records
shall
show
the
name
8
and
address
of
the
consignee,
the
date,
the
quantity
of
tobacco
9
products
,
alternative
nicotine
products,
or
vapor
products
10
delivered,
and
such
other
information
as
the
commissioner
may
11
require.
These
The
records
shall
be
preserved
for
three
years
12
from
the
date
of
delivery
of
the
tobacco
products
,
alternative
13
nicotine
products,
or
vapor
products
.
14
5.
a.
The
transportation
of
tobacco
products
,
alternative
15
nicotine
products,
or
vapor
products
into
this
state
by
means
16
other
than
common
carrier
must
be
reported
to
the
director
17
within
thirty
days
with
the
following
exceptions:
18
(1)
The
transportation
of
not
more
than
fifty
cigars,
not
19
more
than
ten
ounces
of
snuff
or
snuff
powder,
or
not
more
20
than
one
pound
of
smoking
or
chewing
tobacco
or
other
tobacco
21
products
not
specifically
mentioned
herein;
22
(2)
Transportation
by
a
person
with
a
place
of
business
23
outside
the
state,
who
is
licensed
as
a
distributor
under
24
section
453A.44
,
or
tobacco
products
,
alternative
nicotine
25
products,
or
vapor
products
sold
by
such
person
to
a
retailer
26
in
this
state.
27
b.
The
report
shall
be
made
on
forms
provided
by
the
28
director.
A
report
required
under
this
subsection
shall
be
29
filed
electronically.
A
report
required
to
be
submitted
30
electronically
under
this
subsection
that
is
filed
in
a
manner
31
other
than
in
an
electronic
format
specified
by
the
department
32
shall
not
be
considered
a
valid
submission
unless
the
director
33
has
permitted
the
submission
of
such
a
report
through
an
34
alternative
method
pursuant
to
section
453A.57
.
35
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2011
c.
Common
carriers
transporting
tobacco
products
,
1
alternative
nicotine
products,
or
vapor
products
into
this
2
state
shall
file
with
the
director
reports
of
all
such
3
shipments
other
than
those
which
are
delivered
to
public
4
warehouses
of
first
destination
in
this
state
which
are
5
licensed
under
the
provisions
of
chapter
554
.
Such
reports
6
shall
be
filed
electronically
with
the
department
on
or
before
7
the
tenth
day
of
each
month
and
shall
show
with
respect
to
8
deliveries
made
in
the
preceding
month
all
of
the
following:
9
(1)
The
date.
10
(2)
The
point
of
origin.
11
(3)
The
point
of
delivery.
12
(4)
The
name
of
the
consignee.
13
(5)
A
description
and
the
quantity
of
tobacco
products
,
14
alternative
nicotine
products,
or
vapor
products
delivered.
15
(6)
Such
other
information
as
the
director
may
require.
16
d.
Any
person
who
fails
or
refuses
to
transmit
to
the
17
director
the
required
reports
or
whoever
refuses
to
permit
the
18
examination
of
the
records
by
the
director
shall
be
guilty
19
of
a
serious
misdemeanor.
In
addition,
any
person
who
fails
20
to
timely
submit
a
report
required
under
this
section
is
21
subject
to
a
penalty
in
the
amount
of
fifty
dollars
for
each
22
occurrence.
23
Sec.
11.
Section
453A.46,
subsection
1,
paragraph
a,
24
subparagraph
(1),
Code
2026,
is
amended
to
read
as
follows:
25
(1)
On
or
before
the
twentieth
day
of
each
calendar
month
26
every
distributor
with
a
place
of
business
in
this
state
shall
27
file
a
return
with
the
director
showing
for
the
preceding
28
calendar
month
the
quantity
and
wholesale
sales
price
of
each
29
tobacco
product
,
alternative
nicotine
products,
or
vapor
30
products
brought,
or
caused
to
be
brought,
into
this
state
31
for
sale;
made,
manufactured,
or
fabricated
in
this
state
for
32
sale
in
this
state;
and
any
other
information
the
director
33
may
require.
Every
licensed
distributor
outside
this
state
34
shall
in
like
manner
file
a
return
with
the
director
showing
35
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2011
for
the
preceding
calendar
month
the
quantity
and
wholesale
1
sales
price
of
each
tobacco
product
,
alternative
nicotine
2
products,
or
vapor
products
shipped
or
transported
to
retailers
3
in
this
state
to
be
sold
by
those
retailers
and
any
other
4
information
the
director
may
require.
Returns
shall
be
made
5
upon
forms
made
available
in
electronic
form
and
prescribed
6
by
the
director
and
shall
contain
other
information
as
the
7
director
may
require.
Each
return
shall
be
accompanied
by
a
8
remittance
for
the
full
tax
liability
shown
on
the
return,
less
9
a
discount
as
fixed
by
the
director
not
to
exceed
five
percent
10
of
the
tax.
Within
three
years
after
the
return
is
filed
or
11
within
three
years
after
the
return
became
due,
whichever
is
12
later,
the
department
shall
examine
it,
determine
the
correct
13
amount
of
tax,
and
assess
the
tax
against
the
taxpayer
for
any
14
deficiency.
The
period
for
examination
and
determination
of
15
the
correct
amount
of
tax
is
unlimited
in
the
case
of
a
false
or
16
fraudulent
return
made
with
the
intent
to
evade
tax,
or
in
the
17
case
of
a
failure
to
file
a
return.
18
Sec.
12.
Section
453A.46,
subsection
6,
Code
2026,
is
19
amended
to
read
as
follows:
20
6.
On
or
before
the
twentieth
day
of
each
calendar
month,
21
every
consumer
who,
during
the
preceding
calendar
month,
22
has
acquired
title
to
or
possession
of
tobacco
products
,
23
alternative
nicotine
products,
or
vapor
products
for
use
or
24
storage
in
this
state,
and
upon
which
tobacco
products
the
25
tax
taxes
imposed
by
section
453A.43
has
or
453A.43A
have
not
26
been
paid,
shall
file
a
return
with
the
director
showing
the
27
quantity
of
tobacco
products
,
alternative
nicotine
products,
28
or
vapor
products
so
acquired.
The
return
shall
be
made
upon
29
a
form
furnished
and
prescribed
by
the
director,
and
shall
30
contain
other
information
as
the
director
may
require.
The
31
return
shall
be
accompanied
by
a
remittance
for
the
full
unpaid
32
tax
liability
shown
by
it.
Within
three
years
after
the
return
33
is
filed
or
within
three
years
after
the
return
became
due,
34
whichever
is
later,
the
department
shall
examine
it,
determine
35
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5042YH
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2011
the
correct
amount
of
tax,
and
assess
the
tax
against
the
1
taxpayer
for
any
deficiency.
The
period
for
examination
and
2
determination
of
the
correct
amount
of
tax
is
unlimited
in
the
3
case
of
a
false
or
fraudulent
return
made
with
the
intent
to
4
evade
tax,
or
in
the
case
of
a
failure
to
file
a
return.
5
Sec.
13.
Section
453A.47,
Code
2026,
is
amended
to
read
as
6
follows:
7
453A.47
Refunds,
credits.
8
Where
tobacco
products
,
alternative
nicotine
products,
or
9
vapor
products
upon
which
the
tax
imposed
by
this
subchapter
10
has
been
reported
and
paid
are
shipped
or
transported
by
the
11
distributor
to
consumers
to
be
consumed
without
the
state
or
12
to
retailers
or
subjobbers
without
the
state
to
be
sold
by
13
those
retailers
or
subjobbers
without
the
state
or
are
returned
14
to
the
manufacturer
by
the
distributor
or
destroyed
by
the
15
distributor,
refund
of
such
tax
or
credit
may
be
made
to
the
16
distributor
in
accordance
with
regulations
prescribed
by
the
17
director.
Any
overpayment
of
the
tax
imposed
under
section
18
453A.43
or
453A.43A
may
be
made
to
the
taxpayer
in
accordance
19
with
regulations
prescribed
by
the
director.
The
director
20
shall
cause
any
such
refund
of
tax
to
be
paid
out
of
the
general
21
fund
of
the
state,
and
so
much
of
said
fund
as
may
be
necessary
22
is
hereby
appropriated
for
that
purpose.
23
Sec.
14.
Section
453A.47C,
subsections
3
and
4,
Code
2026,
24
are
amended
to
read
as
follows:
25
3.
A
retailer
required
to
possess
or
possessing
a
permit
26
under
section
453A.13
or
453A.47A
to
make
delivery
sales
27
of
alternative
nicotine
products
or
vapor
products
within
28
this
state
shall
be
deemed
to
have
waived
all
claims
that
29
such
retailer
lacks
physical
presence
within
this
state
for
30
purposes
of
collecting
and
remitting
sales
and
use
tax
and
the
31
additional
tax
provided
in
section
453A.43A
.
32
4.
A
retailer
making
taxable
delivery
sales
of
alternative
33
nicotine
products
or
vapor
products
within
this
state
shall
34
remit
to
the
department
all
sales
and
use
tax
due
on
such
sales
35
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2011
at
the
times
and
in
the
manner
provided
by
chapter
423
,
and
1
remit
the
additional
tax
as
provided
in
section
453A.43A
.
2
Sec.
15.
Section
453A.48,
subsection
3,
Code
2026,
is
3
amended
to
read
as
follows:
4
3.
The
director
may
exchange
information
with
the
officers
5
and
agencies
of
other
states
administering
laws
relating
to
the
6
taxation
of
tobacco
products
,
alternative
nicotine
products,
7
and
vapor
products
.
8
Sec.
16.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
9
2027.
10
EXPLANATION
11
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
12
the
explanation’s
substance
by
the
members
of
the
general
assembly.
13
This
bill
regulates
alternative
nicotine
products
and
vapor
14
products
and
imposes
taxes
upon
the
wholesale
sales
price
of
15
such
products,
and
makes
numerous
conforming
changes
to
Code
16
chapter
453A
(cigarettes
and
tobacco-related
products).
17
The
bill
defines
“nicotine
analog”
to
mean
a
substance
that
18
has
a
chemical
structure
that
is
substantially
similar
to
19
nicotine,
or
that
has
an
effect
on
the
central
nervous
system
20
that
is
substantially
similar
to,
or
greater
than,
the
effects
21
of
nicotine
on
the
central
nervous
system.
22
The
bill
adds
“nicotine
analog”
to
the
definitions
of
23
“alternative
nicotine
product”
and
“vapor
product”.
24
The
bill
imposes
a
tax
on
alternative
nicotine
and
25
vapor
products
upon
any
person
engaged
as
a
distributor
of
26
alternative
nicotine
products
and
vapor
products,
at
the
rate
27
of
10
percent
of
the
wholesale
sales
price
of
such
products.
28
In
the
alternative,
a
tax
is
imposed
on
the
use
or
storage
of
29
alternative
nicotine
and
vapor
products,
at
the
rate
of
10
30
percent
of
the
cost
of
such
products,
if
the
10
percent
tax
on
31
the
wholesale
sales
price
has
not
been
paid.
32
The
revenue
generated
by
the
bill
is
credited
to
the
new
33
Iowa
cancer
research
fund
(fund),
under
the
authority
of
the
34
department
of
health
and
human
services
(HHS).
The
bill
35
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13
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2011
specifies
moneys
in
the
fund
shall
not
be
disbursed
prior
to
1
July
1,
2027,
and
shall
only
be
appropriated
for
purposes
2
related
to
supporting
and
funding
cancer
research
in
the
state.
3
The
bill
requires
HHS
to
develop
an
application
process
and
4
guidelines
for
cancer
researchers
to
receive
moneys
from
the
5
fund.
6
The
fund
is
not
subject
to
reversion
and
moneys
or
earnings
7
attributable
to
the
fund
are
credited
to
the
fund.
8
The
bill
takes
effect
January
1,
2027.
9
-13-
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5042YH
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13