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COMMITTEE ACTION:
SF 628 – Fuel excise tax for ethanol- and biodiesel-blended motor fuels
SF 628 would extend the current preferential excise tax rates for ethanol- or biodiesel-blended motor fuels. Currently:
The bill would change the structure of the preferential excise tax rates for higher blends of ethanol-blended fuel by focusing on E-15. The bill:
The proposed ethanol and biodiesel excise tax rates are projected to divert fewer dollars from the Road Use Tax Fund and are meant to promote higher blends of renewable fuels.
The bill
includes a new sunset date for the preferential excise tax rates. The new rates
will end after June 30, 2026. The report that is used to determine the
distribution percentage will instead determine the discounted fuel excise tax
rate. The current rates are determined based on the distribution of blended
fuels delivered from a motor fuel terminal. That report shows much lower
distribution rates than what is declared by retailers on the reports they
submit to the Department of Revenue. The retailer reports include blending that
is done after the fuel leaves the motor fuel terminal.
[3/3: Short From (Absent: Wahls)]
SF 2127 – Regulation of certain tobacco products
SF 2127 requires a device (paraphernalia) retailer through a retail outlet or delivery sales to hold a tobacco retailer permit, comply with provisions applicable to a tobacco retailer, sell tobacco products in addition to devices at the retail outlet or through delivery sales, and hold a permit as a device retailer. It provides for application for and issuance of annual device retailer permits by cities and counties (depending on the location of the retailer) and requires a $1,000 fee for each permit. The device retailer permit holders must keep certain records and submit reports to the Department of Revenue. A device retailer must not sell, give or otherwise supply a device to any person under 18 and must verify the age of all purchasers. A device retailer can only display and sell devices in a location not visible to anyone under 18 and where no one under 18 is present or permitted.
It provides for the imposition, collection and payment of sales and excise taxes on the retail sale, including delivery sales, of devices. It creates a “specialty courts program fund” to support specialty courts in addressing underlying substance use disorder-related and mental health-related issues that contribute to the contact of individuals with the justice system. Moneys collected, with the exception of city and county permit fees, will be deposited in the fund. The bill also sets various penalties for violations.
Additionally, SF 2127 addresses claims made regarding hemp products sold at retail. Unless a state or federal agency has substantiated and approved the efficacy and safety claims of a product based on competent and reliable scientific evidence, a person engaging in the retail sale of a hemp product that contains hemp-derived cannabidiol, or in the retail sale of a cosmetic, personal care product, or product intended for human or animal consumption to which hemp-derived cannabidiol has been added in compliance with Code section 204.7(9), must include on the product’s principal display panel a statement that the product may contain the ingredients stated on the label, that the efficacy and safety of the product have not been substantiated or approved by a state or federal agency, and that the consumer should use the product at their own risk. A violation is a serious misdemeanor, as well as an unfair practice under Code 714.16.
The committee adopted an amendment to increase the cost of the device retailer permits to $1,500. The amendment also clarifies which monies will be deposited into the new special courts program fund and establishes a set 40% excise tax on the sale or delivery of the specified products. Finally, the amendment clarifies that the labeling requirements for cannabidiol products does not apply to manufacturers of medically prescribed cannabidiol products.
[3/3: Short From (Absent: Wahls)]
SF 2200 – IID omnibus
SF 2200 is the Iowa Insurance Division’s (IID) annual “clean-up” recommendation. It clarifies, strikes obsolete Code language and streamlines various provisions. It also corrects an inadvertent omission made years ago when a clean-up bill was passed to ensure sections dealing with fees and charges were correctly routed to the commerce revolving fund before reverting to the general fund if unused (Ch. 505.7). One section was missed, but the IID does not believe there is a fiscal impact to the state as the commerce revolving fund continually reverts revenue back to the general fund.
The legislation also updates various provisions in cemetery and pre-need sellers and sales laws. It modifies reporting dates and requires all purchase agreements, including those made electronically, identify a sales agent. The purchase agreement must also be reviewed by the sales agent and signed by the purchaser and seller. If the purchase agreement is for mortuary sciences, it must also be signed by a person licensed to deliver funeral services. The bill removes the prohibition on an annual allocation to the insurance division regulatory fund if the current balance of the fund exceeds $500,000, and removes the cap on the allocation to the insurance division’s enforcement fund of examination fees paid by perpetual cemeteries with their annual reports. The bill requires the Commissioner to deposit all of the examination fees in the enforcement fund. Currently, the IID is the receiver of three cemeteries (in Fort Dodge, Davenport and Clinton) that are in receivership. Given the financial stresses and aging ownership of cemeteries generally, these challenges are likely to continue.
It also reinstates certain late
fees for pre-need sells and pre-need sales agents. Years ago, the penalty for
failure to file an annual report was taken out. In recent years, the IID has
seen a marked increase in failure to report and much staff time is devoted to obtaining
compliance with this provision. The bill reinstates a “late fee” of $5 per day up to $500, and allows the
Commissioner to impose a civil penalty against individuals or companies that
violate most of Iowa’s pre-need statutes and rules.
[3/3: Short From (Absent: Wahls)]