This bill amends Iowa law to introduce new regulations and a tax structure for alternative nicotine and vapor products, while establishing the Iowa cancer research fund. It updates key definitions, including the introduction of "nicotine analog" and a broader definition of "vapor product," which encompasses various devices and components used to produce vapor. A new tax of ten percent on the wholesale sales price of these products will be imposed at the point of distribution, manufacturing, or sale within the state. The revenue generated from this tax will be allocated to the Iowa cancer research fund, specifically designated for supporting cancer research in Iowa.

Furthermore, the bill outlines the responsibilities of distributors and manufacturers regarding record-keeping and compliance with the new tax regulations. It ensures that the funds from the tax will be kept separate from the general fund and will not be subject to certain financial restrictions, allowing for dedicated use in cancer research. The bill also includes provisions for an inventory tax on products held for resale at the time of a tax increase, aligning the regulatory framework for alternative nicotine and vapor products with that of traditional tobacco products. The Iowa cancer research fund will not disburse any funds before July 1, 2026, and the Department of Health and Human Services will create an application process for researchers to access these funds. The bill is set to take effect on January 1, 2026.

Statutes affected:
Introduced: 453A.1, 453A.35, 453A.43A, 453A.44, 453A.46, 453A.43