The bill amends the taxation and regulation of alternative nicotine and vapor products in Iowa, introducing a new ten percent tax on the wholesale sales price of these products. This tax will be applied at the point of distribution, manufacturing, or transportation into the state, with the generated revenue allocated to a newly established Iowa cancer research fund dedicated to supporting cancer research initiatives. The bill also updates key definitions, including the introduction of "nicotine analog" and a more comprehensive definition of "vapor product," which encompasses various devices and components related to vaporization.

In addition to the tax provisions, the bill outlines the responsibilities of distributors and manufacturers regarding record-keeping and reporting to ensure compliance with the new regulations. It specifies that the funds from the tax will be kept separate from the general fund and will not be subject to typical appropriation processes until after July 1, 2026. The Department of Health and Human Services will develop guidelines for disbursing these funds and will report on the program's progress. The bill is set to take effect on January 1, 2026, and aims to enhance the regulation of alternative nicotine and vapor products while funding cancer research in Iowa.

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