Iowa SF 475: A bill for an act providing for an annual transfer of moneys from the beer and liquor control fund and the uses of such moneys.(Formerly SSB 1171.)

Bill Text

Senate
File
475
-
Introduced

SENATE
FILE
475

BY
COMMITTEE
ON
HEALTH
AND

HUMAN
SERVICES

(SUCCESSOR
TO
SSB
1137)

A
BILL
FOR

An
Act
imposing
a
tax
on
certain
products
containing
nicotine
1

or
nonnicotine
substances,
creating
the
Iowa
cancer
research
2

fund,
and
including
effective
date
provisions.
3

BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4

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(2)
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S.F.
475

Section
1.
NEW
SECTION
.
453A.6A
Additional
taxes
imposed.
1

1.
For
purposes
of
this
section:
2

a.
“E-liquid”
means
a
liquid
solution
containing
nicotine,
3

nicotine
analog,
a
nonnicotine
substance,
or
other
material
4

consumed
during
the
process
of
vaporization
or
aerosolization
5

and
is
intended
to
be
used
with
or
in
a
vapor
product.
6

“E-liquid”
does
not
include
any
product
regulated
as
a
drug
or
7

device
by
the
United
States
department
of
agriculture
under
8

chapter
V
of
the
federal
Food,
Drug,
and
Cosmetic
Act.
9

b.
“Nicotine
pouch”
means
a
smokeless
preportioned
pouch
10

containing
nicotine
designed
to
be
placed
between
the
lip
and
11

the
gum
where
the
nicotine
is
absorbed
into
the
bloodstream.
A
12

“nicotine
pouch”
is
not
a
tobacco
product.
13

c.
“Retail
sales
price”
means
the
same
as
“sales
price”
as
14

defined
in
section
423.1.
15

d.
“Vapor
cartridge”
means
a
prefilled
disposable
cartridge
16

or
pod
containing
nicotine,
nicotine
analog,
a
nonnicotine
17

substance,
or
other
material
consumed
during
the
process
of
18

vaporization
or
aerosolization
and
is
intended
to
be
used
with
19

or
in
a
vapor
product.
“Vapor
cartridge”
does
not
include
any
20

product
regulated
as
a
drug
or
device
by
the
United
States
21

department
of
agriculture
under
chapter
V
of
the
federal
Food,
22

Drug,
and
Cosmetic
Act.
23

2.
a.
The
following
taxes
shall
be
imposed,
collected,
and
24

paid
to
the
department
on
the
following
products
sold
at
retail
25

in
the
following
amounts:
26

(1)
For
a
vapor
cartridge,
one
dollar
and
fifteen
cents
per
27

cartridge.
28

(2)
For
a
nicotine
pouch,
six
and
eight-tenths
cents
per
29

pouch.
30

b.
The
following
taxes
shall
be
imposed
and
collected,
and
31

paid
to
the
department
in
the
following
amounts
upon
the
retail
32

sales
price:
33

(1)
For
a
vapor
product
requiring
the
use
of
e-liquids,
34

fifteen
percent.
35

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475

(2)
For
e-liquids
sold
separately
from
a
vapor
cartridge,
1

fifteen
percent.
2

3.
The
taxes
imposed
pursuant
to
this
section
are
in
3

addition
to
any
other
taxes
imposed
by
law.
4

Sec.
2.
Section
453A.35,
subsection
1,
paragraph
a,
Code
5

2025,
is
amended
to
read
as
follows:
6

a.
With
the
exception
of
revenues
credited
to
the
health
7

care
trust
fund
pursuant
to
paragraph
“b”
and
revenues
credited

8

to
the
Iowa
cancer
research
fund
pursuant
to
paragraph

“c”
,
9

the
proceeds
derived
from
the
sale
of
stamps
and
the
payment
10

of
fees
and
penalties
provided
for
under
this
chapter
,
and
the
11

permit
fees
received
from
all
permits
issued
by
the
department,
12

shall
be
credited
to
the
general
fund
of
the
state.
13

Sec.
3.
Section
453A.35,
subsection
1,
Code
2025,
is
amended
14

by
adding
the
following
new
paragraph:
15

NEW
PARAGRAPH

.
c.
The
revenues
generated
from
the
16

additional
tax
in
section
453A.6A
shall
be
credited
to
the
Iowa
17

cancer
research
fund
created
in
section
453A.35B.
18

Sec.
4.
NEW
SECTION

.
453A.35B
Iowa
cancer
research
fund.
19

1.
An
Iowa
cancer
research
fund
is
created
in
the
office
of
20

the
treasurer
of
state
under
the
authority
of
the
department
of
21

health
and
human
services.
The
fund
consists
of
the
revenues
22

generated
from
the
additional
tax
in
section
453A.6A.
Moneys
23

in
the
fund
shall
be
separate
from
the
general
fund
of
the
24

state
and
shall
not
be
considered
part
of
the
general
fund
of
25

the
state.
Moneys
in
the
fund
shall
be
used
only
as
specified
26

in
this
section
and
shall
be
appropriated
only
for
the
uses
27

specified.
Moneys
in
the
fund
are
not
subject
to
section
8.33
28

and
shall
not
be
transferred,
used,
obligated,
appropriated,
29

or
otherwise
encumbered,
except
as
provided
in
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

2.
Moneys
in
the
fund
shall
not
be
disbursed
prior
to
34

July
1,
2026,
and
shall
only
be
used
for
purposes
related
35

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to
supporting
and
funding
cancer
research
in
the
state.
The
1

department
of
health
and
human
services
shall
develop
an
2

application
process
and
guidelines
for
cancer
researchers
to
3

receive
moneys
from
the
fund.
4

3.
The
department
of
health
and
human
services
shall
report
5

on
the
program
pursuant
to
section
217.21,
beginning
with
the
6

period
disbursements
commence.
7

Sec.
5.
EFFECTIVE
DATE.
This
Act
takes
effect
January
1,
8

2026.
9

EXPLANATION
10

The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11

the
expl