Iowa House Bill HF442 Latest Draft

                            House File 442 - Introduced   HOUSE FILE 442   BY KONFRST , JAMES ,   ZABNER , BAGNIEWSKI ,   WESSEL-KROESCHELL , OLSON ,   AMOS JR. , NIELSEN , STAED ,   STECKMAN , WILSON , EHLERT ,   TUREK , MATSON , SCHOLTEN ,   KRESSIG , BROWN-POWERS ,   LEVIN , KURTH , BAETH ,   COOLING , CAHILL , SRINIVAS ,   WILBURN , SCHEETZ , MADISON ,   ABDUL-SAMAD , B. MEYER ,   CROKEN , GJERDE , and BUCK   A BILL FOR   An Act relating to marijuana, including the manufacture, 1   delivery, and possession of marijuana, the licensure of 2   retail marijuana, and medical cannabis, providing fees, 3   including excise taxes, establishing funds, providing 4   penalties, and including effective date provisions. 5   BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6   TLSB 1615YH (11) 90   ss/rh  

  H.F. 442   DIVISION I 1   MARIJUANA  CRIMINAL PENALTIES 2   Section 1. Section 124.401, subsection 1, unnumbered 3   paragraph 1, Code 2023, is amended to read as follows: 4   Except as authorized by this chapter or chapter 124E or 5   124F   , it is unlawful for any person to manufacture, deliver, or 6   possess with the intent to manufacture or deliver, a controlled 7   substance, a counterfeit substance, a simulated controlled 8   substance, or an imitation controlled substance, or to act 9   with, enter into a common scheme or design with, or conspire 10   with one or more other persons to manufacture, deliver, or 11   possess with the intent to manufacture or deliver a controlled 12   substance, a counterfeit substance, a simulated controlled 13   substance, or an imitation controlled substance. 14   Sec. 2. Section 124.401, subsection 1, paragraph a, 15   subparagraph (6), Code 2023, is amended by striking the 16   subparagraph. 17   Sec. 3. Section 124.401, subsection 1, paragraph b, 18   subparagraph (6), Code 2023, is amended by striking the 19   subparagraph. 20   Sec. 4. Section 124.401, subsection 1, paragraph c, 21   subparagraph (5), Code 2023, is amended by striking the 22   subparagraph. 23   Sec. 5. Section 124.401, subsection 1, paragraph c, 24   subparagraph (9), Code 2023, is amended to read as follows: 25   (9) Any other controlled substance, counterfeit substance, 26   simulated controlled substance, or imitation controlled   27   substance classified in schedule I, II, or III, except as 28   provided in paragraph d , or in chapter 124E or 124F   . 29   Sec. 6. Section 124.401, subsection 1, paragraph d, Code 30   2023, is amended to read as follows: 31   d. Violation of this subsection , with respect to any other 32   controlled substances, counterfeit substances, simulated 33   controlled substances, or imitation controlled substances   34   classified in schedule IV or V is an aggravated misdemeanor. 35   -1-   LSB 1615YH (11) 90   ss/rh 1/ 77     

  H.F. 442   However, violation of this subsection involving fifty kilograms 1   or less of marijuana or involving   flunitrazepam is a class D 2   felony. 3   Sec. 7. Section 124.401, subsection 5, paragraph b, Code 4   2023, is amended to read as follows: 5   b. If the controlled substance is marijuana, the punishment 6   shall be by imprisonment in the county jail for not more than 7   six months or by a fine of not more than one thousand dollars, 8   or by both such fine and imprisonment for a first offense. If   9   the controlled substance is marijuana and the person has been 10   previously convicted of a violation of   this subsection in which 11   the controlled substance was marijuana, the punishment shall be 12   as provided in section 903.1, subsection 1 , paragraph b . If 13   the controlled substance is marijuana and the person has been   14   previously convicted two or more times of a violation of this 15   subsection in which the controlled substance was marijuana, 16   the person is guilty of an aggravated misdemeanor. This 17   subsection does not apply to the possession of marijuana which   18   is punishable pursuant to chapter 124F.   19   Sec. 8. Section 124.401G, unnumbered paragraph 1, Code 20   2023, is amended to read as follows: 21   Notwithstanding any provision of this chapter to the 22   contrary, a person shall not be guilty of an offense under 23   this chapter , including under section 124.401 or   124.410 , 24   for producing, possessing, using, harvesting, handling, 25   manufacturing, marketing, transporting, delivering, or 26   distributing the plant cannabis, if all of the following apply: 27   Sec. 9. Section 124.407, subsection 2, Code 2023, is amended   28   to read as follows: 29   2. a.   Any person who violates this section and where the 30   controlled substance is any one a controlled substance other 31   than marijuana is guilty of a class D felony. 32   b.   Any person who violates this section , and where the 33   controlled substance is marijuana only, is guilty of a serious   34   misdemeanor. 35   -2-   LSB 1615YH (11) 90   ss/rh 2/ 77                                       

  H.F. 442   Sec. 10. Section 124.411, subsection 2, Code 2023, is 1   amended to read as follows: 2   2. For purposes of this section , an offense is considered 3   a second or subsequent offense, if, prior to the persons 4   having been convicted of the offense, the offender has ever 5   been convicted under this chapter or under any state or federal 6   statute relating to narcotic drugs or cocaine, marijuana,   7   depressant, stimulant, or hallucinogenic drugs. 8   Sec. 11. Section 124.413, subsection 2, Code 2023, is 9   amended to read as follows: 10   2. This section shall not apply if :   11   a. The offense is found to be an accommodation pursuant to 12   section 124.410 ; or 13   b.   The the controlled substance is marijuana. 14   Sec. 12. NEW SECTION . 124F.1 Definitions. 15   As used in this subchapter: 16   1. Counterfeit substance means the same as defined in 17   section 124.101. 18   2. Imitation controlled substance means the same as 19   defined in section 124.101. 20   3. Marijuana means the same as defined in section 124.101, 21   and includes a counterfeit substance, imitation controlled 22   substance, or simulated controlled substance containing a 23   detectable amount of marijuana. 24   4. Simulated controlled substance means the same as 25   defined in section 124.101. 26   Sec. 13. NEW SECTION   . 124F.2 Marijuana  penalties. 27   1. a. Except as otherwise provided in this subchapter and 28   chapter 124E, it is unlawful for any person to manufacture, 29   deliver, or possess with the intent to manufacture or deliver 30   marijuana, or to act with, enter into a common scheme or 31   design with, or conspire with one or more other persons to 32   manufacture, deliver, or possess with the intent to manufacture 33   or deliver marijuana. A violation of this subsection involving 34   the following amounts of marijuana shall be punishable as 35   -3-   LSB 1615YH (11) 90   ss/rh 3/ 77               

  H.F. 442   follows: 1   (1) More than fifty kilograms shall be a class C felony. 2   (2) More than two kilograms but not more than fifty 3   kilograms shall be a class D felony. 4   (3) More than twelve ounces but not more than two kilograms 5   shall be an aggravated misdemeanor. 6   (4) More than four ounces but not more than twelve ounces 7   shall be punishable as a serious misdemeanor. 8   (5) Four ounces or less shall be punishable as a simple 9   misdemeanor, except as provided in section 124F.3. 10   b. In addition to any other penalties provided in this 11   subsection, a person who is eighteen years of age or older 12   who unlawfully manufactures with the intent to distribute, 13   distributes, or possesses with the intent to distribute 14   marijuana to another person who is eighteen years of age or 15   older in or on, or within one thousand feet of, the real 16   property comprising a public or private elementary or secondary 17   school, public park, public swimming pool, public recreation 18   center, or on a marked school bus, may be sentenced up to an 19   additional term of confinement of five years. 20   2. It is unlawful for any person knowingly or intentionally 21   to possess marijuana unless such substance was obtained 22   directly from, or pursuant to, a valid prescription or order of 23   a practitioner while acting in the course of the practitioners 24   professional practice, or except as otherwise authorized by 25   this subsection. A violation of this subsection involving 26   the possession of the following amounts of marijuana shall be 27   punishable as follows: 28   a. More than six ounces but not more than twelve ounces is 29   a serious misdemeanor.   30   b. More than one-half ounce but not more than six ounces is   31   a simple misdemeanor. 32   c. One-half ounce or less is not a criminal offense but 33   shall be assessed as a civil penalty in the amount of one 34   hundred dollars, except if the person is under twenty-one years 35   -4-   LSB 1615YH (11) 90   ss/rh 4/ 77  

  H.F. 442   of age, the person shall complete a drug awareness program and 1   ten hours of unpaid community service, and shall notify the 2   persons parents or legal guardian. 3   (1) The civil penalty shall be collected by the clerk of the 4   district court pursuant to section 602.8105, subsection 5. 5   (2) Any records relating to the civil penalty shall not 6   be displayed for public viewing on the Iowa court information 7   system. 8   (3) Any records relating to the civil penalty shall not 9   be kept in the criminal history data files maintained by the 10   department of public safety. Any records relating to the civil 11   penalty shall not be disseminated to other criminal or juvenile 12   justice agencies. 13   3. a. A retail marijuana store shall not sell retail 14   marijuana in excess of the following amounts in a single 15   transaction: 16   (1) Thirty grams of marijuana flower. 17   (2) Five hundred milligrams of tetrahydrocannabinol 18   contained in a product infused with marijuana. 19   b. A person shall not possess more than five ounces of 20   marijuana flower. 21   c. A person in possession of retail marijuana in excess of 22   the amounts specified in paragraph a equivalent to the amounts 23   specified in subsection 2, shall be subject to the penalties in 24   subsection 2. 25   d. A retail marijuana store in violation of this subsection 26   shall be subject to licensee discipline pursuant to section 27   124F.16.   28   e. For purposes of this subsection, retail marijuana and 29   retail marijuana store mean the same as defined in section 30   124F.4.   31   4. a. Upon the expiration of two years following a 32   conviction for a violation of subsection 2, paragraph a or 33   b , a person may petition the court to expunge the conviction, 34   and if the person has had no other criminal convictions, other 35   -5-   LSB 1615YH (11) 90   ss/rh 5/ 77  

  H.F. 442   than local traffic violations or simple misdemeanor violations 1   of chapter 321 during the two-year period, the conviction 2   shall be expunged as a matter of law. The court shall enter 3   an order that the record of the conviction be expunged by the 4   clerk of the district court. Notwithstanding section 692.2, 5   after receipt of notice from the clerk of the district court 6   that a record of conviction has been expunged pursuant to this 7   subsection, the record of conviction shall be removed from the 8   criminal history data files maintained by the department of 9   public safety. 10   b. On the effective date of this Act, each court shall 11   review its records to identify persons who have been convicted 12   of an offense based on conduct allowed under this Act. Each 13   such conviction shall be expunged as a matter of law as 14   provided in paragraph a . 15   Sec. 14. NEW SECTION   . 124F.3 Juvenile offenses. 16   The juvenile court shall have exclusive original 17   jurisdiction in a proceeding concerning a minor who is alleged 18   to have committed a violation of this subchapter. 19   Sec. 15. NEW SECTION   . 321.284B Marijuana in motor vehicles. 20   1. A driver of a motor vehicle upon a public street or 21   highway shall not use marijuana in the passenger area of the 22   motor vehicle. Passenger area means the area designed to 23   seat the driver and passengers while the motor vehicle is in 24   operation and any area that is readily accessible to the driver 25   or a passenger while in their seating positions, including the 26   glove compartment. 27   2. A driver or passenger of or in a motor vehicle upon a 28   public street or highway shall not possess marijuana in the 29   passenger area of a motor vehicle except in a sealed, odor 30   proof, child resistant container. 31   3. For the purposes of this section, marijuana means the 32   same as defined in section 124.401.   33   4. A person who knowingly violates a provision of this 34   section is guilty of a simple misdemeanor. 35   -6-   LSB 1615YH (11) 90   ss/rh 6/ 77    

  H.F. 442   Sec. 16. Section 321J.2, subsection 1, paragraph c, Code 1   2023, is amended to read as follows: 2   c. While   Except as provided in section 321J.2C, any amount 3   of a controlled substance is present in the person, as measured 4   in the persons blood or urine. 5   Sec. 17. NEW SECTION . 321J.2C Operating while under the 6   influence of marijuana. 7   1. A person shall not operate a motor vehicle in this state 8   while having fifty nanograms of tetrahydrocannabinol in the 9   person, as measured in the persons blood. 10   2. A person who violates subsection 1 is guilty of a serious 11   misdemeanor, punishable as follows: 12   a. For a first offense, revocation of the persons drivers 13   license for a period of one hundred eighty days, except that if 14   the person refused to submit to chemical testing, the persons 15   drivers license shall be revoked for a period of one year. 16   b. For a second or subsequent offense, revocation of the 17   persons drivers license for a period of one year, except 18   that if the person refused to submit to chemical testing, the 19   persons drivers license shall be revoked for a period of two 20   years. 21   Sec. 18. Section 602.8105, Code 2022, is amended by adding 22   the following new subsection: 23   NEW SUBSECTION   . 5. The clerk of the district court shall 24   collect the civil penalty assessed pursuant to section 124F.2, 25   subsection 2, paragraph c , subparagraph (1). 26   Sec. 19. NEW SECTION   . 901C.4 Felony offenses related to 27   marijuana  expungement. 28   1. In addition to the expungement provisions available 29   to a defendant convicted of a misdemeanor marijuana offense 30   under chapter 124, upon application of a defendant convicted 31   of a felony offense under chapter 124 in the county where the 32   conviction occurred, related to the possession or transfer of 33   marijuana, the court shall enter an order expunging the record 34   of such a criminal case.   35   -7-   LSB 1615YH (11) 90   ss/rh 7/ 77       

  H.F. 442   2. A person shall be granted an expungement of a record 1   under this section one time in the persons lifetime. However, 2   the one application may request the expungement of records 3   relating to more than one nonviolent offense under this section 4   if the offenses arose from the same transaction or occurrence, 5   and the application contains the offenses to be expunged. 6   3. The expunged record under this section is a confidential 7   record exempt from public access under section 22.7 but shall 8   be made available by the clerk of the district court upon court 9   order. 10   4. Notwithstanding section 692.2, after receipt of 11   notice from the clerk of the district court that a record of 12   conviction has been expunged under subsection 1, the record 13   of conviction shall be removed from the criminal history data 14   files maintained by the department of public safety if such a 15   record was maintained in the criminal history data files. 16   5. The supreme court may prescribe rules governing the 17   procedures applicable to the expungement of a criminal case 18   under this section. 19   6. This section applies to a felony conviction that occurred 20   prior to January 1, 2024. 21   Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed. 22   DIVISION II 23   RETAIL MARIJUANA 24   Sec. 21. NEW SECTION   . 124F.4 Definitions. 25   For the purposes of this subchapter: 26   1. Division means the alcoholic beverages division of the 27   department of commerce. 28   2. Immature plant means a nonflowering marijuana plant 29   that is no taller than eight inches and no wider than eight 30   inches, is produced from a cutting, clipping, or seedling, and 31   is in a cultivating container. 32   3. License means a license or registration issued pursuant 33   to this subchapter. 34   4. Licensed premises means the premises specified in an 35   -8-   LSB 1615YH (11) 90   ss/rh 8/ 77   

  H.F. 442   application for a license under this subchapter, which are 1   owned or in possession of the licensee and within which the 2   licensee is authorized to cultivate, manufacture, distribute, 3   sell, or test retail marijuana and retail marijuana products in 4   accordance with this subchapter. 5   5. Licensee means a person licensed or registered pursuant 6   to this subchapter. 7   6. Local jurisdiction means a county. 8   7. Local licensing authority means, for any local 9   jurisdiction that has chosen to adopt a local licensing 10   requirement in addition to the state licensing requirements 11   of this subchapter, an authority designated by a municipal 12   or county ordinance, or resolution, or the governing body of 13   a municipality or county, or the board of commissioners of a 14   county if no such authority is designated. 15   8. Location means a particular parcel of land that may be 16   identified by an address or other descriptive means. 17   9. Marijuana means the same as defined in section 124.101. 18   10. Marijuana accessories means any equipment, products, 19   or materials of any kind which are used, intended for use, or 20   designed for use in planting, cultivating, growing, harvesting, 21   composting, manufacturing, compounding, converting, producing, 22   processing, preparing, testing, analyzing, packaging, 23   repackaging, storing, vaporizing, or containing marijuana, or 24   for ingesting, inhaling, or otherwise introducing marijuana 25   into the human body. 26   11. Person means a natural person, partnership, 27   association, company, corporation, limited liability company, 28   or organization; except that person does not include any 29   governmental organization. 30   12. Retail marijuana means all parts of the plant of the 31   genus Cannabis, whether growing or not, the seeds thereof; the 32   resin extracted from any part of the plant; and every compound, 33   manufacture, salt, derivative, mixture, or preparation of the 34   plant, its seeds or resin, including marijuana concentrate. 35   -9-   LSB 1615YH (11) 90   ss/rh 9/ 77  

  H.F. 442   Retail marijuana does not include industrial hemp, nor does 1   it include fiber produced from the stalks, oil or cake made 2   from the seeds of the plant, sterilized seeds of the plant 3   which are incapable of germination, or the weight of any other 4   ingredient combined with marijuana to prepare topical or oral 5   administrations, food, drink, or other product. 6   13. Retail marijuana cultivation facility means an entity 7   licensed to cultivate, prepare, package, and sell marijuana to 8   retail marijuana stores, to marijuana product manufacturing 9   facilities, and to other marijuana cultivation facilities, but 10   not to consumers. 11   14. Retail marijuana establishment means a retail 12   marijuana store, a retail marijuana cultivation facility, or a 13   retail marijuana products manufacturer. 14   15. Retail marijuana products means concentrated marijuana 15   products and marijuana products that are comprised of marijuana 16   and other ingredients and are intended for use or consumption, 17   such as but not limited to edible products, ointments, and 18   tinctures. 19   16. Retail marijuana products manufacturer means an entity 20   licensed to purchase marijuana; manufacture, prepare, and 21   package marijuana products; and sell marijuana and marijuana 22   products to other marijuana product manufacturing facilities 23   and to retail marijuana stores, but not to consumers. 24   17. Retail marijuana store means an entity licensed 25   to purchase marijuana from marijuana cultivation facilities 26   and sell marijuana and to purchase marijuana products from 27   retail marijuana product manufacturing facilities and to sell 28   marijuana and marijuana products to consumers. 29   18. Retail marijuana transporter means an entity or person 30   licensed to transport retail marijuana and retail marijuana 31   products from one retail marijuana establishment to another 32   retail marijuana establishment and to temporarily store the 33   transported retail marijuana and retail marijuana products at 34   its licensed premises, but is not authorized to sell retail 35   -10-   LSB 1615YH (11) 90   ss/rh 10/ 77  

  H.F. 442   marijuana or retail marijuana products under any circumstances. 1   Sec. 22. NEW SECTION   . 124F.5 Applicability. 2   1. On or after July 1, 2024, an applicant may apply for 3   licensure of a retail marijuana establishment pursuant to this 4   subchapter. 5   2. a. Pursuant to subsection 1, an applicant shall complete 6   forms as provided by the division and shall pay the application 7   fee and the licensing fee. The division shall forward, within 8   seven days of the date of the application, one-half of the 9   application fee to the local jurisdiction unless the local 10   jurisdiction has prohibited the operation of retail marijuana 11   establishments. If the license is denied, the division shall 12   refund the licensing fee to the applicant. 13   b. The division shall act upon an application made pursuant 14   to subsection 1 no sooner than forty-five days and no later 15   than ninety days after the date of the application. The 16   division shall process applications in the order in which 17   completed applications are received by the division. 18   3. a. Any local jurisdiction may enact ordinances or 19   regulations governing the time, place, manner, and number of 20   retail marijuana establishments, which may include a local 21   licensing requirement, or may prohibit the operation of retail 22   marijuana establishments by ordinance or by a referred or 23   initiated measure. If a county acts through an initiated 24   measure, the proponents shall submit a petition signed by not 25   less than fifteen percent of the registered electors in the 26   county. 27   b. If a county prohibits the operation of retail marijuana 28   establishments, the county shall, upon receipt of a petition 29   signed by fifteen percent of the registered voters in the 30   county, submit to the voters of the county the question of 31   whether the operation of retail marijuana establishments should 32   be allowed in the county at the next general election. 33   Sec. 23. NEW SECTION   . 124F.6 Retail marijuana licensure. 34   1. The division shall develop and maintain a seed-to-sale 35   -11-   LSB 1615YH (11) 90   ss/rh 11/ 77    

  H.F. 442   tracking system that tracks retail marijuana from either 1   seed or immature plant stage until the marijuana or retail 2   marijuana product is sold to a customer at a retail marijuana 3   establishment to ensure that no marijuana grown or processed 4   by a retail marijuana establishment is sold or otherwise 5   transferred except by a retail marijuana store. 6   2. The division shall adopt all rules necessary for the 7   implementation of this chapter. 8   3. Nothing in this subchapter shall be construed to be 9   a delegation to the division of the power to fix prices for 10   retail marijuana. 11   4. Nothing in this subchapter shall be construed to limit 12   a law enforcement agencys ability to investigate unlawful 13   activity in relation to a retail marijuana establishment. A 14   law enforcement agency shall have the authority to conduct a 15   criminal history record check of a licensee and an employee of 16   a licensee during an investigation of unlawful activity related 17   to retail marijuana and retail marijuana products. 18   5. The division shall create a statewide licensure class 19   system for retail marijuana cultivation facilities. The 20   classifications may be based upon square footage of the 21   facility; lights, lumens, or wattage; canopy lighting; the 22   number of cultivating plants; a combination of the foregoing; 23   or other reasonable metrics. The division shall create a fee 24   structure for the licensure class system. 25   Sec. 24. NEW SECTION   . 124F.7 State and local participation 26   in licensure.   27   1. When the division receives an application for an 28   initial license or a renewal of an existing license for 29   any retail marijuana establishment, the division shall 30   provide, within seven days of receipt of an application, 31   a copy of the application to the local jurisdiction in 32   which the establishment is to be located unless the local   33   jurisdiction has prohibited the operation of retail marijuana 34   establishments. The local jurisdiction shall determine whether 35   -12-   LSB 1615YH (11) 90   ss/rh 12/ 77   

  H.F. 442   the application complies with local restrictions relating 1   to time, place, manner, and the number of retail marijuana 2   establishments allowed. The local jurisdiction shall inform 3   the division whether the application complies with local 4   restrictions. 5   2. A local jurisdiction may impose a separate local 6   licensing requirement as a part of its restrictions relating 7   to time, place, manner, and the number of retail marijuana 8   establishments allowed. A local jurisdiction may decline 9   to impose any local licensing requirements, but a local 10   jurisdiction shall notify the division that it either approves 11   or denies each application received by the local jurisdiction. 12   3. If a local jurisdiction issues a local license for 13   a retail marijuana establishment, a local jurisdiction may 14   schedule a public hearing on the application. If the local 15   jurisdiction schedules a hearing, it shall post and publish 16   public notice of the hearing not less than ten days prior 17   to the hearing. The local jurisdiction shall give public 18   notice by posting a sign in a conspicuous place on the license 19   applicants premises for which a local license application 20   has been made and by publication in a newspaper of general 21   circulation in the county in which the applicants premises are 22   located. 23   4. If a local jurisdiction does not issue local licenses, 24   the local jurisdiction may give public notice of the state 25   license application by posting a sign in a conspicuous place 26   on the state license applicants premises for which a state 27   license application has been made and by publication in a 28   newspaper of general circulation in the county in which the 29   applicants premises are located. 30   5. Applications for a state license under this subchapter 31   must be made to the division on forms prepared and furnished 32   by the division and must set forth such information as the 33   division may require to enable the division to determine 34   whether a state license should be granted. 35   -13-   LSB 1615YH (11) 90   ss/rh 13/ 77  

  H.F. 442   6. The division shall deny a state license if the premises 1   on which the applicant proposes to conduct its business does 2   not meet the requirements of this subchapter. The division 3   may refuse or deny a license renewal, reinstatement, or 4   initial license issuance for good cause. For purposes of this 5   subsection, good cause means any of the following: 6   a. The licensee or applicant has violated, does not meet, 7   or has failed to comply with any of the terms, conditions, or 8   provisions of this subchapter, any rules promulgated pursuant 9   to this subchapter, or any supplemental local law, rules, or 10   regulations. 11   b. The licensee or applicant has failed to comply with any 12   special terms or conditions of the license pursuant to an order 13   of the division or local licensing authority. 14   c. The licensed premises have been operated in a manner that 15   adversely affects the public health or safety of the immediate 16   neighborhood in which the retail marijuana establishment is 17   located. 18   d. The licensed premises are located within two thousand 19   feet of real property comprising a school, child care facility, 20   or public park. 21   7. If the division denies a state license pursuant to 22   subsection 6, the applicant shall be entitled to a hearing 23   pursuant to section 17A.12 and judicial review pursuant to 24   section 17A.19. The division shall provide written notice of 25   the grounds for denial of the state license to the applicant 26   and to the local jurisdiction at least fifteen days prior to 27   the hearing. 28   8. The division shall give primary preference to applicants 29   for licensure who are currently licensed as a medical 30   cannabidiol manufacturer or medical cannabidiol dispensary 31   pursuant to chapter 124E. The division shall also prioritize 32   applicants for licensure that are businesses that are 33   majority-owned by persons who are women, citizens or permanent 34   legal residents of Iowa, or disabled veterans. 35   -14-   LSB 1615YH (11) 90   ss/rh 14/ 77  

  H.F. 442   9. The division shall issue licenses to businesses that 1   are majority-owned by persons who are racial minorities in a 2   proportion that meets or exceeds the percentage of persons in 3   this state who are racial minorities according to the most 4   recent federal decennial census. 5   Sec. 25. NEW SECTION   . 124F.8 Establishment and owner 6   requirements. 7   1. An owner who is a natural person must have been either 8   of the following: 9   a. A resident of Iowa for at least one year prior to the 10   date of the application. 11   b. A United States citizen prior to the date of the 12   application. 13   2. A retail marijuana establishment may be composed of an 14   unlimited number of owners that have been residents of Iowa for 15   at least one year prior to the date of the application. 16   3. A retail marijuana establishment shall not interfere 17   with the creation of or participation in a labor organization, 18   as defined in section 216.2, by employees of the retail 19   marijuana establishment. 20   4. The division shall review the retail marijuana 21   establishments operating documents to ensure compliance with 22   this section. 23   Sec. 26. NEW SECTION   . 124F.9 Retail marijuana establishment 24   licensure. 25   1. Local jurisdictions may adopt and enforce regulations 26   for retail marijuana establishments that are at least as 27   restrictive as the provisions of this subchapter and any rule 28   promulgated pursuant to this subchapter. 29   2. A retail marijuana establishment shall not operate 30   until the retail marijuana establishment is licensed by the 31   division pursuant to this subchapter and approved by the 32   relevant local jurisdiction. If an application is denied by 33   the local licensing authority, the division shall revoke the 34   state license. In connection with a license, the applicant 35   -15-   LSB 1615YH (11) 90   ss/rh 15/ 77    

  H.F. 442   shall provide a complete and accurate application as required 1   by the division. 2   3. A retail marijuana establishment shall notify the 3   division in writing of the name, address, and date of birth of 4   a new owner, officer, or manager before the new owner, officer, 5   or manager begins managing, owning, working, or otherwise 6   associating with the establishment. The owner, officer, 7   manager, or employee shall pass a fingerprint-based criminal 8   history record check as required by the division and shall 9   obtain the required identification prior to managing, owning, 10   working, or otherwise associating with the establishment. 11   The division shall not deny licensure to a retail marijuana 12   establishment on the basis that an owner, officer, manager, 13   or employee has been convicted of a crime other than a 14   violent crime, as defined in section 915.10, if the person has 15   completed any term of probation or parole imposed by the court. 16   4. Before granting a state license, the division may 17   consider, except when this subchapter specifically provides 18   otherwise, the requirements of this subchapter and any 19   rules promulgated pursuant to this subchapter, and all other 20   reasonable restrictions that are or may be placed upon a 21   licensee by the division or local licensing authority. 22   5. a. Each license issued under this subchapter is separate 23   and distinct. It is unlawful for a person to exercise any 24   of the privileges granted under a license other than the 25   license that the person holds or for a licensee to allow any 26   other person to exercise the privileges granted under the 27   licensees license. A separate license shall be required for 28   each specific business or business entity and each geographical 29   location. 30   b. At all times, a licensee shall possess and maintain 31   possession of the premises for which the license is issued 32   through ownership, lease, rental, or other arrangement for 33   possession of the premises. 34   6. Each licensee shall manage the licensed premises 35   -16-   LSB 1615YH (11) 90   ss/rh 16/ 77  

  H.F. 442   personally or employ a separate and distinct manager on 1   the premises and shall report the name of the manager to 2   the division and local licensing authority. The licensee 3   shall report any change in manager to the division and local 4   licensing authority within seven days after the change. 5   Sec. 27. NEW SECTION   . 124F.10 License renewal. 6   1. Ninety days prior to the expiration date of an existing 7   license, the division shall notify a licensee of the expiration 8   date by first class mail at the licensees address of record 9   with the division. A licensee may apply for the renewal of 10   an existing license to the division not less than thirty days 11   prior to the date of expiration of the existing license. Upon 12   receipt of an application for renewal of an existing license 13   and any applicable fees, the division shall submit, within 14   seven days of the application, a copy of the application to 15   the local jurisdiction to determine whether the application 16   complies with all local restrictions on renewal of licenses. 17   The division shall not accept an application for renewal of a 18   license after the date of expiration, except as provided in 19   subsection 3. The division may extend the expiration date of 20   the license and accept a late application for renewal of a 21   license if the applicant has filed a timely renewal application 22   with the local licensing authority. The division or the local 23   licensing authority, in its discretion, and subject to the 24   requirements of this subsection and subsection 3 and based upon 25   reasonable grounds, may waive the thirty-day time requirements 26   set forth in this subsection.   27   2. The division may request additional fingerprints from a 28   licensee when there is a demonstrated investigative need. 29   3. a. Notwithstanding the provisions of subsection 1, 30   a licensee whose license has been expired for not more than 31   ninety days may file a late renewal application upon the 32   payment of a nonrefundable late application fee of five hundred 33   dollars to the division. A licensee who files a late renewal 34   application and pays the requisite fees may continue to operate 35   -17-   LSB 1615YH (11) 90   ss/rh 17/ 77   

  H.F. 442   until the division takes final action to approve or deny 1   the licensees late renewal application unless the division 2   summarily suspends the license pursuant to chapter 17A, this 3   subchapter, and rules adopted pursuant to this subchapter. 4   b. The division may administratively continue a license 5   and accept a later application for renewal of a license at the 6   discretion of the division. 7   Sec. 28. NEW SECTION   . 124F.11 Classes of licenses. 8   For the purpose of regulating the cultivation, manufacture, 9   distribution, sale, and testing of retail marijuana and retail 10   marijuana products, the division in its discretion, upon 11   receipt of an application in the prescribed form, may issue and 12   grant to the applicant a license or registration in any of the 13   following classes, subject to the provisions and restrictions 14   provided by this subchapter: 15   1. Retail marijuana store license. 16   2. Retail marijuana cultivation facility license. 17   3. Retail marijuana products manufacturing license. 18   4. Occupational licenses and registrations for owners, 19   managers, operators, employees, contractors, and other support 20   staff employed by, working in, or having access to restricted 21   areas of the licensed premises, as determined by the division. 22   The division may take any action with respect to a registration 23   pursuant to this subchapter as it may with respect to a license 24   pursuant to this subchapter, in accordance with the procedures 25   established pursuant to this subchapter. 26   5. Retail marijuana transporter license. 27   Sec. 29. NEW SECTION   . 124F.12 Retail marijuana store 28   license. 29   1. a. A retail marijuana store license shall be issued 30   by the division only to a person selling retail marijuana or 31   retail marijuana products pursuant to the terms and conditions 32   of this subchapter. 33   b. A retail marijuana store shall not accept any retail 34   marijuana purchased from a retail marijuana cultivation 35   -18-   LSB 1615YH (11) 90   ss/rh 18/ 77    

  H.F. 442   facility unless the retail marijuana store is provided with 1   evidence that any applicable excise tax due was paid. 2   2. Notwithstanding the provisions of this section, a 3   retail marijuana store licensee may also sell retail marijuana 4   products that are prepackaged and labeled as required by rules 5   of the division pursuant to section 124F.21. 6   3. a. A retail marijuana store shall not sell more than one 7   ounce of retail marijuana or its equivalent in retail marijuana 8   products, including retail marijuana concentrate, except for 9   nonedible, nonpsychoactive retail marijuana products, including 10   ointments, lotions, balms, and other nontransdermal topical 11   products to a person. 12   b. (1) Prior to initiating a sale, an employee of the 13   retail marijuana store making the sale shall verify that 14   the purchaser has a valid identification card showing the 15   purchaser is twenty-one years of age or older. If a person 16   under twenty-one years of age presents fraudulent proof of age, 17   any action relying on the fraudulent proof of age shall not be 18   grounds for the revocation or suspension of any license issued 19   under this subchapter. 20   (2) (a) If a retail marijuana store licensee or 21   employee has reasonable cause to believe that a person is 22   under twenty-one years of age and is exhibiting fraudulent 23   proof of age in an attempt to obtain any retail marijuana 24   or cannabis-infused product, the licensee or employee is 25   authorized to confiscate such fraudulent proof of age, if 26   possible, and shall, within seventy-two hours after the 27   confiscation, remit such fraudulent proof of age to a state 28   or local law enforcement agency. The failure to confiscate 29   such fraudulent proof of age or to remit such fraudulent proof 30   of age to a state or local law enforcement agency within 31   seventy-two hours after the confiscation shall not constitute a 32   criminal offense. 33   (b) If a retail marijuana store licensee or employee 34   believes that a person is under twenty-one years of age and 35   -19-   LSB 1615YH (11) 90   ss/rh 19/ 77  

  H.F. 442   presents fraudulent proof of age in an attempt to obtain any 1   retail marijuana or retail cannabis-infused product, the 2   licensee or employee or any peace officer or police officer, 3   acting in good faith and upon probable cause based upon 4   reasonable grounds therefor, may detain and question such 5   person in a reasonable manner for the purpose of ascertaining 6   whether the person is guilty of any unlawful act regarding the 7   purchase of retail marijuana. The questioning of a person by a 8   licensee, employee, peace officer, or police officer does not 9   render the licensee, employee, peace officer, or police officer 10   civilly or criminally liable for slander, false arrest, false 11   imprisonment, malicious prosecution, or unlawful detention. 12   4. All retail marijuana and retail marijuana products 13   sold at a licensed retail marijuana store shall be packaged 14   and labeled as required by rules of the division pursuant to 15   section 124F.21. 16   5. a. A licensed retail marijuana store shall only 17   sell retail marijuana, retail marijuana products, marijuana 18   accessories, nonconsumable products such as apparel, and 19   marijuana-related products such as childproof packaging 20   containers, but shall be prohibited from selling or giving 21   away any consumable product, including but not limited to 22   cigarettes, alcohol, or an edible product that does not contain 23   marijuana, including but not limited to sodas, candies, or 24   baked goods. 25   b. A licensed retail marijuana store shall not sell any 26   retail marijuana or retail marijuana products that contain 27   nicotine or alcohol, if the sale of the alcohol would require a 28   license pursuant to chapter 123. 29   c. A licensed retail marijuana store shall not sell retail 30   marijuana or retail marijuana products over the internet nor 31   deliver retail marijuana or retail marijuana products to a 32   person who is not physically present in the retail marijuana 33   stores licensed premises. 34   6. Retail marijuana or retail marijuana products shall not 35   -20-   LSB 1615YH (11) 90   ss/rh 20/ 77  

  H.F. 442   be consumed on the premises of a retail marijuana store. 1   7. Notwithstanding any other provision of state law, sales 2   of retail marijuana and retail marijuana products are not 3   exempt from state or local sales tax. 4   8. The division shall not issue more than one retail 5   marijuana store license per county, except that the division 6   may, upon receipt of a petition, issue one additional retail 7   marijuana store license per one hundred thousand population 8   in the county according to the most recent federal decennial 9   census. 10   9. A retail marijuana store may also be licensed as a 11   medical cannabis dispensary pursuant to chapter 124E. The 12   division shall, in consultation with the department of public 13   health, adopt rules for the implementation of this subsection. 14   Sec. 30. NEW SECTION   . 124F.13 Retail marijuana cultivation 15   facility license. 16   1. A retail marijuana cultivation facility license shall 17   be issued by the division only to a person who cultivates 18   retail marijuana for sale and distribution to licensed retail 19   marijuana stores, retail marijuana products manufacturing 20   licensees, or other retail marijuana cultivation facilities. 21   2. A retail marijuana cultivation facility shall remit any 22   applicable excise tax due. 23   3. A retail marijuana cultivation facility shall track 24   the marijuana it cultivates from seed or immature plant to 25   wholesale purchase of the retail marijuana. Prior to delivery 26   of any retail marijuana that is sold, the retail marijuana 27   cultivation facility shall provide evidence that the facility 28   paid any applicable excise tax on the retail marijuana due. 29   4. A retail marijuana cultivation facility may provide, 30   except as required by section 124F.21, a sample of its products 31   to the state hygienic laboratory for testing and research 32   purposes. A retail marijuana cultivation facility shall 33   maintain a record of the sample provided to the state hygienic 34   laboratory and the testing results. 35   -21-   LSB 1615YH (11) 90   ss/rh 21/ 77   

  H.F. 442   5. Retail marijuana or retail marijuana products shall not 1   be consumed on the premises of a retail marijuana cultivation 2   facility. 3   Sec. 31. NEW SECTION   . 124F.14 Retail marijuana products 4   manufacturing license. 5   1. a. A retail marijuana products manufacturing license 6   shall be issued by the division to a person who manufactures 7   retail marijuana products pursuant to the terms and conditions 8   of this subchapter. 9   b. A retail marijuana products manufacturer may cultivate 10   its own retail marijuana if the manufacturer obtains a retail 11   marijuana cultivation facility license, or it may purchase 12   retail marijuana from a licensed retail marijuana cultivation 13   facility. A retail marijuana products manufacturer shall track 14   all of its retail marijuana from the point the retail marijuana 15   is either transferred from its retail marijuana cultivation 16   facility or from the point when the retail marijuana is 17   delivered to the retail marijuana products manufacturer from a 18   licensed retail marijuana cultivation facility to the point of 19   transfer to a licensed retail marijuana store. 20   c. A retail marijuana products manufacturer shall not 21   accept any retail marijuana purchased from a retail marijuana 22   cultivation facility unless the retail marijuana products 23   manufacturer is provided with evidence that any applicable 24   excise tax due was paid. 25   2. All retail marijuana products shall be prepared on 26   a licensed premises used exclusively for the manufacture 27   and preparation of retail marijuana or retail marijuana 28   products and using equipment that is used exclusively for the 29   manufacture and preparation of retail marijuana products; 30   except that, if permitted by the local jurisdiction, a 31   retail marijuana products manufacturing licensee may share 32   the same premises as a medical cannabidiol-infused products 33   manufacturing licensee so long as a virtual or physical 34   separation of inventory is maintained pursuant to rules 35   -22-   LSB 1615YH (11) 90   ss/rh 22/ 77   

  H.F. 442   promulgated by the division. 1   3. All licensed premises on which retail marijuana products 2   are manufactured shall meet the sanitary standards for retail 3   marijuana product preparation promulgated pursuant to section 4   124F.21. 5   4. Retail marijuana or retail marijuana products shall not 6   be consumed on the premises of a retail marijuana products 7   manufacturing facility. 8   5. A retail marijuana products manufacturer may provide, 9   except as required by section 124F.21, a sample of its products 10   to the state hygienic laboratory for testing and research 11   purposes. A retail marijuana products manufacturer shall 12   maintain a record of what was provided to the state hygienic 13   laboratory and the results of the testing. 14   6. A licensed retail marijuana products manufacturer shall 15   package and label each product manufactured as required by 16   rules of the division pursuant to section 124F.21. 17   7. All retail marijuana products that require refrigeration 18   to prevent spoilage must be stored and transported in a 19   refrigerated environment. 20   Sec. 32. NEW SECTION   . 124F.15 Retail marijuana use  21   protections. 22   1. No person shall be subject to arrest, prosecution, or 23   penalty in any manner, or be denied any right or privilege, 24   including but not limited to disciplinary action by a business, 25   occupational, or professional licensing board, solely for 26   conduct permitted under this subchapter. 27   2. a. Except as provided in this section, neither the state 28   nor any of its political subdivisions shall impose any penalty 29   or deny any benefit or entitlement for conduct permitted 30   under this subchapter or for the presence of cannabinoids or 31   cannabinoid metabolites in the urine, blood, saliva, breath,   32   hair, or other tissue or fluid of a person who is twenty-one 33   years of age or older. 34   b. Except as provided in this section and section 321J.2C, 35   -23-   LSB 1615YH (11) 90   ss/rh 23/ 77   

  H.F. 442   neither the state nor any of its political subdivisions 1   shall deny a drivers license, a professional license, 2   housing assistance, social services, or other benefits based 3   on marijuana use or for the presence of cannabinoids or 4   cannabinoid metabolites in the urine, blood, saliva, breath, 5   hair, or other tissue or fluid of a person who is twenty-one 6   years of age or older. 7   3. No person shall be denied custody of or visitation with a 8   minor for acting in accordance with this subchapter, unless the 9   persons behavior creates an unreasonable danger to the minor 10   that can be clearly articulated and substantiated. 11   4. Except as provided in this section, neither the state 12   nor any of its political subdivisions shall deny employment 13   or a contract to a person for engaging in conduct permitted 14   under this subchapter, for a prior conviction for a nonviolent 15   marijuana offense that does not involve distribution to minors, 16   or for testing positive for the presence of cannabinoids or 17   cannabinoid metabolites in the urine, blood, saliva, breath, 18   hair, or other tissue or fluid of the individuals body. 19   5. For the purposes of medical care, including organ and 20   tissue transplants, the use of marijuana does not constitute 21   the use of an illicit substance or otherwise disqualify a 22   person from needed medical care and may only be considered with 23   respect to evidence-based clinical criteria. 24   6. Notwithstanding any other provision of law to the 25   contrary, unless there is a specific finding that the 26   individuals use, cultivation, or possession of marijuana could 27   create a danger to the individual or another person, it shall 28   not be a violation of conditions of parole, probation, or 29   pretrial release to do any of the following: 30   a. Engage in conduct allowed by this subchapter. 31   b. Test positive for marijuana, delta-9 32   tetrahydrocannabinol, or any other cannabinoid or metabolite of 33   marijuana, except as provided in section 321J.2C. 34   7. a. This section does not prevent a governmental employer 35   -24-   LSB 1615YH (11) 90   ss/rh 24/ 77  

  H.F. 442   from disciplining an employee or contractor for ingesting 1   marijuana in the workplace or for working while under the 2   influence of marijuana. 3   b. The protections provided by this section do not apply to 4   the extent that they conflict with a governmental employers 5   obligations under federal law or regulations or to the extent 6   that they would disqualify the entity from a monetary or 7   licensing-related benefit under federal law or regulations. 8   c. This section does not authorize any person to engage in, 9   and does not prevent the imposition of any civil, criminal, 10   discipline, or other penalties, including discipline or 11   termination by a governmental employer, any task while under 12   the influence of marijuana, when doing so would constitute 13   negligence or professional malpractice. 14   Sec. 33. NEW SECTION   . 124F.16 Discipline. 15   In addition to any other sanctions prescribed by this 16   subchapter or rules adopted pursuant to this subchapter, the 17   division has the power, on its own motion or upon complaint, 18   after investigation and opportunity for a public hearing at 19   which a licensee must be afforded an opportunity to be heard, 20   to fine a licensee or to suspend or revoke a license issued by 21   the division for a violation by the licensee or by any of the 22   agents or employees of the licensee of the provisions of this 23   subchapter, or any of the rules promulgated pursuant to this 24   subchapter, or of any of the terms, conditions, or provisions 25   of the license issued by the division. The division has the 26   power to administer oaths and issue subpoenas to require the 27   presence of persons and the production of papers, books, and 28   records necessary to the determination of a hearing that the 29   division is authorized to conduct. The division shall conduct   30   a contested case pursuant to chapter 17A prior to imposing 31   discipline, except in the case of an emergency adjudication. 32   Sec. 34. NEW SECTION   . 124F.17 Disposition of seized 33   materials. 34   1. This section shall apply in addition to any criminal, 35   -25-   LSB 1615YH (11) 90   ss/rh 25/ 77    

  H.F. 442   civil, or administrative penalties and in addition to any 1   other penalties prescribed by this subchapter or any rules 2   promulgated pursuant to this subchapter. 3   2. A state or local agency shall not be required to 4   cultivate or care for any retail marijuana or retail marijuana 5   product belonging to or seized from a licensee. A state or 6   local agency shall not be authorized to sell marijuana or 7   retail marijuana. 8   3. If the division issues a final order imposing a 9   disciplinary action against a licensee pursuant to section 10   124F.16, then, in addition to any other remedies, the 11   divisions final order may specify that some or all of the 12   licensees marijuana or marijuana product is not retail 13   marijuana or a retail marijuana product and is an illegal 14   controlled substance. The final order may further specify that 15   the licensee shall lose any interest in any of the marijuana or 16   marijuana product even if the marijuana or marijuana product 17   previously qualified as retail marijuana or a retail marijuana 18   product. 19   4. On or before January 1, 2024, the division shall adopt 20   rules governing the implementation of this section. 21   Sec. 35. NEW SECTION   . 124F.18 Inspection procedures. 22   1. A licensee shall keep a complete set of all records 23   necessary to show fully the business transactions of the 24   licensee, all of which shall be accessible at all times during 25   business hours for inspection and examination by the division 26   or its authorized representatives. The division may require 27   a licensee to furnish such information as necessary for the 28   proper administration of this subchapter and may require an 29   audit to be made of the books of account and records on such   30   occasions as necessary by an auditor selected by the division 31   who shall have access to all books and records of the licensee. 32   All associated expenses shall be paid by the licensee. 33   2. Any licensed premises, including any places of storage 34   where retail marijuana or retail marijuana products are stored, 35   -26-   LSB 1615YH (11) 90   ss/rh 26/ 77   

  H.F. 442   cultivated, sold, dispensed, or tested shall be subject to 1   inspection by the state or local jurisdictions and their 2   investigators, during all business hours and during other times 3   when employees are present, for the purpose of inspection 4   or investigation. Access shall be required during business 5   hours for examination of any inventory or books and records 6   required to be kept by the licensees. If any part of the 7   licensed premises consists of a locked area, upon demand to 8   the licensee, such area shall be made available for inspection 9   without delay, and, upon request by authorized representatives 10   of the state or local jurisdiction, the licensee shall open the 11   area for inspection. 12   3. A licensee shall retain all books and records necessary 13   to show fully the business transactions of the licensee for 14   a period of the current tax year and the three immediately 15   preceding tax years. 16   Sec. 36. NEW SECTION   . 124F.19 Marijuana excise tax. 17   1. An excise tax is imposed on consumers at the rate of ten 18   percent of the sales price of each sale of retail marijuana and 19   retail marijuana products. 20   2. The tax imposed by this section shall be paid by the 21   consumer to the retail marijuana establishment. Each retail 22   marijuana establishment shall collect from the consumer the 23   full amount of the tax payable on each taxable sale. 24   3. On the fifteenth day of each month, each retail marijuana 25   establishment that sells retail marijuana to a consumer shall 26   pay the excise taxes due on the retail marijuana that the 27   retail marijuana establishment sold in the previous calendar 28   month to the division. 29   Sec. 37. NEW SECTION   . 124F.20 Occupational licensing  30   protections. 31   1. A person holding a professional or occupational license 32   shall not be subject to professional discipline for providing 33   advice or services related to retail marijuana establishments 34   or applications to operate retail marijuana establishments on 35   -27-   LSB 1615YH (11) 90   ss/rh 27/ 77    

  H.F. 442   the basis that marijuana is illegal under federal law. 1   2. An applicant for a professional or occupational license 2   shall not be denied a license based on previous employment 3   related to retail marijuana establishments operating in 4   accordance with state law. 5   Sec. 38. NEW SECTION   . 124F.21 Rulemaking. 6   1. The division shall, within one year of the effective 7   date of this Act, adopt rules for the implementation of 8   this subchapter. The rules shall not prohibit the operation 9   of retail marijuana establishments or require such a high 10   investment of risk, money, time, or other resource or asset 11   that the operation of a retail marijuana establishment is not 12   worthy of being carried out in practice by a reasonably prudent 13   businessperson. Such rules shall include all of the following: 14   a. Procedures for the issuance, renewal, suspension, and 15   revocation of a registration to operate a retail marijuana 16   establishment, subject to chapter 17A. 17   b. A schedule of reasonable application, registration, 18   and renewal fees, provided application fees shall not exceed 19   five thousand dollars, with this upper limit adjusted annually 20   for inflation, unless the division determines a greater fee 21   is necessary to carry out its responsibilities under this 22   subchapter. Fees shall be collected by the division and used 23   to administer this subchapter. 24   c. Qualifications for registration that are directly and 25   demonstrably related to the operation of a retail marijuana 26   establishment and that may not disqualify applicants solely for 27   marijuana offenses prior to the effective date of this Act. 28   d. Security requirements. 29   e. Requirements for the transportation and storage of retail 30   marijuana and retail marijuana products by retail marijuana 31   establishments.   32   f. Requirements for the delivery of retail marijuana and 33   retail marijuana products to consumers, including a prohibition 34   on business names, logos, and other identifying language or 35   -28-   LSB 1615YH (11) 90   ss/rh 28/ 77   

  H.F. 442   images on delivery vehicles and a prohibition on delivering 1   retail marijuana and retail marijuana products to any address 2   located on land owned by the federal government or any address 3   on land or in a building leased by the federal government. 4   g. Employment and training requirements, including 5   requiring that each retail marijuana establishment create 6   an identification badge for each employee or agent. These 7   requirements shall not disqualify applicants solely for 8   marijuana offenses prior to the effective date of this Act. 9   h. Requirements designed to prevent the sale or diversion of 10   retail marijuana and retail marijuana products to persons under 11   the age of twenty-one. 12   i. Requirements for retail marijuana and retail 13   marijuana products sold or distributed by a retail marijuana 14   establishment, including prohibiting any misleading labeling 15   and requiring retail marijuana product labels to include all 16   of the following: 17   (1) The length of time it typically takes for the product 18   to take effect. 19   (2) A disclosure of ingredients and possible allergens. 20   (3) A nutritional fact panel. 21   (4) Requiring opaque, child resistant packaging, which must 22   be designed or constructed to be significantly difficult for 23   children under five years of age to open and not difficult for 24   adults to use properly as defined by 16 C.F.R. 1700.20. 25   (5) Requiring that edible retail marijuana products be 26   clearly identifiable, when practicable, with a standard symbol 27   indicating the retail marijuana product contains marijuana. 28   j. Health and safety regulations and standards for the 29   manufacture of retail marijuana products and both the indoor 30   and outdoor cultivation of retail marijuana by retail marijuana 31   establishments.   32   k. Restrictions on advertising, marketing, and signage 33   including but not limited to a prohibition on mass-market 34   campaigns that have a high likelihood of reaching minors. 35   -29-   LSB 1615YH (11) 90   ss/rh 29/ 77  

  H.F. 442   l. Rules to create at least six tiers of retail marijuana 1   cultivation facilities, based on the size of the facility or 2   the number of plants cultivated, and whether the cultivation 3   occurs outdoors, indoors, or in a greenhouse. Security 4   regulations and licensing fees must vary based on the size of 5   the cultivation facility. 6   m. Restrictions or prohibitions on additives in retail 7   marijuana and retail marijuana-infused products, including but 8   not limited to those that are toxic or designed to make the 9   product more addictive. 10   n. Prohibitions on products that are designed to make the 11   product more appealing to children, including prohibiting the 12   use of any images designed or likely to appeal to minors, 13   including cartoons, toys, animals, or children, and any other 14   images, characters, or phrases that are popularly used to 15   advertise to children. 16   o. Restrictions on the use of pesticides that are injurious 17   to human health. 18   p. Rules governing visits to retail marijuana cultivation 19   facilities and retail marijuana product manufacturing 20   facilities, including requiring the retail marijuana 21   establishment to log visitors. 22   q. A definition of the amount of delta-9 23   tetrahydrocannabinol that constitutes a single serving 24   in a retail marijuana product. 25   r. Standards for the safe manufacture of marijuana extracts 26   and concentrates.   27   s. Requirements that educational materials be disseminated 28   to consumers who purchase retail marijuana-infused products. 29   t. Requirements for random sample testing to ensure quality 30   control, including by ensuring that retail marijuana and 31   retail marijuana-infused products are accurately labeled for 32   potency. Unless the division determines that remediation or 33   treatment is sufficient to ensure product safety, the testing 34   analysis must include testing for residual solvents, poisons, 35   -30-   LSB 1615YH (11) 90   ss/rh 30/ 77  

  H.F. 442   or toxins; harmful chemicals; dangerous molds or mildew; filth; 1   and harmful microbials such as E. coli or salmonella and 2   pesticides. 3   u. Standards for the operation of marijuana testing 4   facilities, including requirements for equipment and 5   qualifications for personnel. 6   v. Civil penalties for the failure to comply with rules 7   adopted pursuant to this subchapter. Civil penalties shall 8   be collected by the division and used to administer this 9   subchapter. 10   w. Procedures for collecting taxes levied on retail 11   marijuana establishments. 12   x. Requirements for on-site consumption establishments, 13   including for security, ventilation, odor control, and 14   consumption by patrons. These rules may include a prohibition 15   on smoking indoors. 16   y. Requirements for the verification of licensure in 17   transactions between licensees. 18   2. After consultation with researchers knowledgeable 19   about the risks and benefits of marijuana and providing an 20   opportunity for public comment, the division shall develop a 21   scientifically accurate safety information label or handout 22   or both, which shall be available to each adult-use marijuana 23   consumer. The label or handout shall include all of the 24   following: 25   a. Advice about the potential risks of marijuana, including 26   all of the following: 27   (1) The risks of driving under the influence of marijuana, 28   and the fact that doing so is illegal. 29   (2) Any adverse effects unique to younger adults, including 30   related to the developing mind. 31   (3) Potential adverse events and other risks. 32   (4) The risks of using marijuana during pregnancy and 33   breastfeeding. 34   b. The need to safeguard all retail marijuana and retail 35   -31-   LSB 1615YH (11) 90   ss/rh 31/ 77  

  H.F. 442   marijuana products from children and pets. 1   3. The division shall review and update the safety 2   information materials at least once every two years to 3   ensure they remain accurate. The review period shall include 4   soliciting input from researchers knowledgeable about the 5   risks and benefits of marijuana and an opportunity for public 6   comment. 7   4. In order to ensure that individual privacy is protected, 8   the division shall not require a consumer to provide a 9   retail marijuana store with personal information other than 10   government-issued identification to determine the consumers 11   age, and a retail marijuana store shall not be required to 12   acquire and record personal information about consumers. 13   Sec. 39. NEW SECTION   . 124F.22 Marijuana use by minors  14   prohibited. 15   Nothing in this subchapter allows the transfer of marijuana, 16   with or without remuneration, to a person under the age of 17   twenty-one years, or the use of marijuana by a person under the 18   age of twenty-one years. 19   Sec. 40. NEW SECTION   . 124F.23 Private property and tenant 20   rights. 21   1. Except as provided in this section, the provisions of 22   this subchapter do not require any person, corporation, or any 23   other entity that occupies, owns, or controls a property to 24   allow the consumption, cultivation, display, sale, or transfer 25   of marijuana on or in that property. 26   2. a. Except as provided in this section, a landlord 27   or property manager shall not refuse to rent to a tenant 28   or otherwise discriminate against a tenant based on a past 29   conviction for a marijuana offense that would have been legal 30   under this chapter. 31   b. Except as provided in this section, in the case of 32   the rental of a residential dwelling, a landlord or property 33   manager shall not prohibit the possession of retail marijuana 34   or medical cannabis, as defined in section 124E.2, or the 35   -32-   LSB 1615YH (11) 90   ss/rh 32/ 77    

  H.F. 442   consumption of retail marijuana or medical cannabis, as defined 1   in section 124E.2, by nonsmoking means. 2   c. The limitations in this subsection do not apply in any 3   of the following circumstances: 4   (1) The tenant is a roomer who is not leasing the entire 5   residential dwelling. 6   (2) The residence is incidental to detention or the 7   provision of medical, geriatric, educational, counseling, 8   religious, or similar services. 9   (3) The residence is a transitional housing or sober living 10   facility. 11   (4) Failing to prohibit marijuana possession or consumption 12   would violate federal law or regulations or cause a landlord 13   or property manager to lose a monetary or licensing-related 14   benefit under federal law or regulations. 15   d. After a warning, a landlord or property manager may take 16   action against a tenant if the tenants use of marijuana or 17   medical cannabis, as defined in section 124E.2, creates an 18   odor that interferes with a persons peaceful enjoyment of the 19   persons home or property. 20   Sec. 41. NEW SECTION   . 124F.24 Apportionment of revenue. 21   Revenues generated by the marijuana excise tax shall be 22   deposited as follows: 23   1. Thirty-five percent in the community reinvestment fund 24   created pursuant to section 124F.25. 25   2. Thirty-two and one-half percent in the mental health 26   services and substance use disorder prevention fund created 27   pursuant to section 124F.26. 28   3. Thirty-two and one-half percent in the local public 29   safety fund created pursuant to section 124F.27. 30   Sec. 42. NEW SECTION   . 124F.25 Community reinvestment fund. 31   1. A community reinvestment fund is created under 32   the control of the division. Moneys in the fund shall be 33   appropriated by the general assembly as provided in subsection 34   2. 35   -33-   LSB 1615YH (11) 90   ss/rh 33/ 77    

  H.F. 442   2. Moneys in the community reinvestment fund shall 1   be appropriated exclusively for the purpose of funding 2   scholarships for Iowa students for two years of postsecondary 3   education at Iowa schools. 4   3. Notwithstanding section 12C.7, subsection 2, interest 5   or earnings on moneys deposited in the community reinvestment 6   fund shall be credited to the community reinvestment fund. 7   Notwithstanding section 8.33, moneys credited to the community 8   reinvestment fund shall not revert at the close of a fiscal 9   year. 10   Sec. 43. NEW SECTION   . 124F.26 Mental health services and 11   substance use disorder prevention fund. 12   1. A mental health services and substance use disorder 13   prevention fund is created under the control of the division. 14   Moneys in the fund shall be appropriated by the general 15   assembly as provided in subsection 2. 16   2. Moneys in the mental health services and substance use 17   disorder prevention fund shall be appropriated exclusively for 18   the purposes of providing mental health services and preventing 19   substance use disorders. 20   3. Notwithstanding section 12C.7, subsection 2, interest or 21   earnings on moneys deposited in the mental health services and 22   substance use disorder prevention fund shall be credited to the 23   mental health services and substance use disorder prevention 24   fund. Notwithstanding section 8.33, moneys credited to the 25   mental health services and substance use disorder prevention 26   fund shall not revert at the close of a fiscal year. 27   Sec. 44. NEW SECTION   . 124F.27 Local public safety fund. 28   1. A local public safety fund is created under the control 29   of the division. Moneys in the fund shall be appropriated by 30   the general assembly as provided in subsection 2. 31   2. Moneys in the local public safety fund shall be 32   appropriated exclusively for the purposes of supporting local 33   law enforcement personnel, fire department personnel, and 34   emergency medical personnel in municipalities. 35   -34-   LSB 1615YH (11) 90   ss/rh 34/ 77    

  H.F. 442   3. Notwithstanding section 12C.7, subsection 2, interest 1   or earnings on moneys deposited in the local public safety 2   fund shall be credited to the local public safety fund. 3   Notwithstanding section 8.33, moneys credited to the local 4   public safety fund shall not revert at the close of a fiscal 5   year. 6   Sec. 45. NEW SECTION   . 332.1 Definitions. 7   1. Department means the department of revenue. 8   2. Director means the director of the department of 9   revenue. 10   3. Retail marijuana means the same as defined in section 11   124F.4. 12   4. Retail marijuana store means the same as defined in 13   section 124F.4. 14   5. Retail sale means the same as defined in section 423.1. 15   6. Surcharge means a retail marijuana surcharge imposed 16   pursuant to this chapter. 17   Sec. 46. NEW SECTION   . 332.2 Retail marijuana surcharge. 18   1. A surcharge may be imposed, in accordance with the 19   provisions of this section, by ordinance of the board of 20   supervisors of a county that has not prohibited the sale of 21   retail marijuana. The surcharge shall be imposed at a rate of 22   one percent upon the retail sales price of retail marijuana. 23   2. The surcharge shall be in addition to the state sales tax 24   imposed pursuant to chapter 423, subchapter II, and the local 25   sales and services tax imposed pursuant to chapter 423B. 26   3. a. Within ten days of the passage of an ordinance 27   imposing a surcharge, the county auditor shall give written 28   notice to the director by sending a copy of the ordinance to 29   the director.   30   b. A surcharge shall be imposed either January 1 or July 1 31   following the notification of the director but not sooner than 32   ninety days following the passage of the ordinance imposing the 33   surcharge and not sooner than sixty days following notice to 34   sellers, as defined in section 423.1.   35   -35-   LSB 1615YH (11) 90   ss/rh 35/ 77    

  H.F. 442   c. A surcharge shall be repealed only on June 30 or December 1   31 but not sooner than ninety days following repeal of the 2   ordinance. At least forty days before the repeal of the 3   surcharge, the board of supervisors shall provide notice of the 4   action by certified mail to the director of revenue. 5   4. Upon the remittance of the revenues from the state 6   surcharge revenue fund to each county that has imposed a retail 7   marijuana surcharge under section 332.4, the revenues shall be 8   deposited into the general fund of the county. 9   Sec. 47. NEW SECTION   . 332.3 Administration of surcharge. 10   1. The director shall administer the surcharge imposed 11   pursuant to this chapter as nearly as possible in conjunction 12   with the administration of state sales tax laws. The director 13   shall provide appropriate forms, or provide space on the 14   regular state tax forms, for reporting surcharge liability. 15   2. a. Section 422.25, subsection 4, sections 422.30, 16   422.67, and 422.68, section 422.69, subsection 1, sections 17   422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14, 18   subsection 1, and sections 423.23, 423.24, 423.25, 423.31, 19   423.33, 423.35, 423.37 through 423.42, and 423.47, consistent 20   with the provisions of this chapter, apply with respect to 21   the surcharge authorized under this chapter, in the same 22   manner and with the same effect as retail sales taxes within 23   the meaning of those statutes. The director may require all 24   persons who are engaged in the business of deriving any sales 25   price subject to a surcharge under this chapter to register 26   with the department. All surcharges collected under this 27   chapter are deemed to be held in trust for the state of Iowa and 28   the counties imposing the surcharges. County officials shall 29   confer with the director of revenue for assistance in drafting 30   the ordinance imposing the surcharge. A certified copy of the 31   ordinance shall be filed with the director as soon as possible 32   after passage. 33   b. Frequency of deposits and quarterly reports of the 34   surcharge with the department of revenue are governed by the 35   -36-   LSB 1615YH (11) 90   ss/rh 36/ 77   

  H.F. 442   provisions in section 423.31. Local surcharge collections 1   shall not be included in computation of the total tax to 2   determine frequency of filing under section 423.31. 3   3. a. The director, in consultation with county officials, 4   shall collect and account for the surcharge. The director 5   shall certify each quarter the amount of the surcharge receipts 6   and any interest and penalties to be credited to the county 7   account in the state surcharge revenue fund established in 8   section 386.3C. County authorities shall not require any 9   permit not required by the director of revenue. 10   b. All surcharge revenues and interest and penalties 11   received or refunded one hundred eighty days or more after 12   the date on which the county repeals the surcharge shall be 13   deposited in or withdrawn from the general fund of the state. 14   4. Each county that has imposed a retail marijuana surcharge 15   under this chapter shall assist the department in identifying 16   new establishments required to impose the surcharge in the 17   county. This process shall be ongoing until the surcharge is 18   repealed. 19   Sec. 48. NEW SECTION   . 332.4 State surcharge revenue fund 20    county accounts. 21   1. A state surcharge revenue fund is established in the 22   state treasury under the control of the department consisting 23   of the surcharge revenues collected within each county and 24   deposited in the fund pursuant to section 332.3. Revenues 25   deposited in the fund are appropriated to the department for 26   the purposes of this section. 27   2. A county account is created within the fund for each 28   county imposing a retail marijuana surcharge under this 29   chapter. 30   3. The department shall deposit the revenues described in 31   subsection 1 that were collected in a quarter beginning on or 32   after the imposition of the surcharge into the appropriate 33   county account in the fund. 34   4. All revenues in each county account within the fund 35   -37-   LSB 1615YH (11) 90   ss/rh 37/ 77   

  H.F. 442   shall be remitted quarterly by the department to the county 1   that imposed the retail marijuana surcharge for deposit in the 2   general fund of the county. 3   5. The department shall adopt rules pursuant to chapter 17A 4   necessary to administer the departments responsibilities under 5   this chapter. 6   Sec. 49. NEW SECTION   . 453B.19 Retail marijuana. 7   This chapter shall not apply to retail marijuana or retail 8   marijuana products produced or sold pursuant to chapter 124F. 9   DIVISION III 10   MEDICAL CANNABIS 11   Sec. 50. Section 124E.1, Code 2023, is amended to read as 12   follows: 13   124E.1 Short title. 14   This chapter shall be known and may be cited as the Medical 15   Cannabidiol   Cannabis Act . 16   Sec. 51. Section 124E.2, subsection 2, Code 2023, is amended 17   by adding the following new paragraph: 18   NEW PARAGRAPH   . l. Any other medical condition for which 19   the patients health care practitioner determines the use of 20   medical cannabis could be medically beneficial. 21   Sec. 52. Section 124E.2, subsection 7, Code 2023, is amended 22   to read as follows: 23   7. Health care practitioner means an individual licensed 24   under chapter 148 to practice medicine and surgery or 25   osteopathic medicine and surgery, a physician assistant 26   licensed under chapter 148C , an advanced registered nurse 27   practitioner licensed under chapter 152 , or an advanced 28   practice registered nurse under chapter 152E , who is a 29   patients primary care provider ,   or a podiatrist licensed 30   pursuant to chapter 149 , or a pharmacist licensed pursuant 31   to chapter 155A who has completed medical cannabis training   32   requirements imposed by the board of pharmacy . 33   Sec. 53. Section 124E.3, subsection 1, paragraph a, Code 34   2023, is amended to read as follows:   35   -38-   LSB 1615YH (11) 90   ss/rh 38/ 77           

  H.F. 442   a. (1) Determine, in the health care practitioners medical 1   judgment, whether the patient whom the health care practitioner 2   has examined and treated suffers from a debilitating medical 3   condition that qualifies for the use of medical cannabidiol   4   cannabis   under this chapter , and if so determined, provide the 5   patient with a written certification of that diagnosis. 6   (2)   If a health care practitioner determines that the 7   patient whom the health care practitioner has examined and 8   treated suffers from a debilitating medical condition pursuant   9   to section 124E.2, subsection 2, paragraph l , that qualifies 10   for the use of medical cannabis under this chapter, the health   11   care practitioners written certification shall be based on 12   reasonable medical evidence, and shall be made in good faith, 13   in the best interest of the patient, without fraudulent intent,   14   and with the same reasonable medical judgment and prudence 15   exercised according to generally accepted medical practice. 16   Sec. 54. Section 124E.4, subsection 1, paragraph e, Code 17   2023, is amended to read as follows: 18   e. Submits a medical cannabidiol   cannabis registration 19   card fee of one hundred ten dollars to the department. If 20   the patient attests to receiving social security disability   21   benefits, supplemental security insurance payments, or being 22   enrolled in the medical assistance program, the fee shall be   23   twenty-five dollars submits documentation that the patient is a 24   veteran as defined in section 35.1, the department shall waive 25   the fee . 26   Sec. 55. Section 124E.4, subsection 3, paragraph c, Code 27   2023, is amended to read as follows:   28   c. Submits a medical cannabidiol   cannabis registration card 29   fee of twenty-five   ten dollars to the department. 30   Sec. 56. Section 124E.5, subsection 1, paragraphs a and b, 31   Code 2023, are amended to read as follows: 32   a. A medical cannabidiol   cannabis board is created   33   consisting of eight   ten practitioners representing the fields 34   of neurology, pain management, gastroenterology, oncology, 35   -39-   LSB 1615YH (11) 90   ss/rh 39/ 77                                      

  H.F. 442   psychiatry, pediatrics, family medicine, physician assistance, 1   advanced practice registered nursing,   and pharmacy, and one 2   representative from law enforcement. 3   b. The practitioners shall be licensed in this state and 4   nationally board-certified in their area of specialty and 5   knowledgeable about the use of medical cannabidiol cannabis . 6   Sec. 57. Section 124E.6, subsection 1, Code 2023, is amended 7   to read as follows: 8   1. a. The department shall issue a request for proposals   9   to select and license by December 1, 2017, up to two medical 10   cannabidiol   cannabis manufacturers to manufacture and to 11   possess, cultivate, harvest, transport, package, process, 12   or supply medical cannabidiol cannabis within this state 13   consistent with the provisions of this chapter . The department 14   shall license new medical cannabidiol   cannabis manufacturers 15   or relicense the existing medical cannabidiol cannabis 16   manufacturers by December 1 of each year. 17   b. Information submitted during the application process 18   shall be confidential until a medical cannabidiol   cannabis 19   manufacturer is licensed by the department unless otherwise 20   protected from disclosure under state or federal law. 21   Sec. 58. Section 124E.6, subsection 3, Code 2023, is amended 22   by adding the following new paragraph: 23   NEW PARAGRAPH   . g. The demand for medical cannabis in the 24   state based on an evidence-based analysis performed by the 25   department. 26   Sec. 59. Section 124E.7, subsection 12, paragraph c, Code 27   2023, is amended to read as follows:   28   c. A medical cannabidiol   cannabis manufacturer shall not 29   may   manufacture edible medical cannabidiol cannabis products. 30   However, an edible medical cannabis product shall not appear 31   in a form or be sold in packaging that would be likely to   32   appeal to children. The department shall adopt rules for the 33   implementation of this paragraph.   34   Sec. 60. Section 124E.8, subsection 1, Code 2023, is amended 35   -40-   LSB 1615YH (11) 90   ss/rh 40/ 77                              

  H.F. 442   to read as follows: 1   1. a. The department shall issue a request for proposals   2   to select and license by April 1, 2018, up to five medical 3   cannabidiol dispensaries to dispense medical cannabidiol within 4   this state consistent with the provisions of   this chapter . 5   The department shall license new medical cannabidiol   cannabis 6   dispensaries or relicense the existing medical cannabidiol 7   cannabis dispensaries by December 1 of each year. 8   b. Information submitted during the application process 9   shall be confidential until a medical cannabidiol   cannabis 10   dispensary is licensed by the department unless otherwise 11   protected from disclosure under state or federal law. 12   Sec. 61. Section 124E.8, subsection 3, Code 2023, is amended 13   by adding the following new paragraph: 14   NEW PARAGRAPH   . f. The demand for medical cannabis in the 15   state based on an evidence-based analysis performed by the 16   department. 17   Sec. 62. Section 124E.9, subsection 14, Code 2023, is 18   amended to read as follows: 19   14. A medical cannabidiol   cannabis dispensary shall not 20   dispense more than a combined total of four and one-half   21   seventeen grams of total tetrahydrocannabinol to a patient and 22   the patients primary caregiver in a ninety-day period, except 23   as provided in subsection 15 . 24   Sec. 63. Section 124E.9, subsection 15, unnumbered 25   paragraph 1, Code 2023, is amended to read as follows: 26   A medical cannabidiol   cannabis dispensary may dispense 27   more than a combined total of four and one-half seventeen 28   grams of total tetrahydrocannabinol to a patient and the 29   patients primary caregiver in a ninety-day period if any of 30   the following apply: 31   Sec. 64. Section 124E.9, subsection 15, paragraph b, Code 32   2023, is amended to read as follows:   33   b. The health care practitioner who certified the patient 34   to receive a medical cannabidiol   cannabis registration 35   -41-   LSB 1615YH (11) 90   ss/rh 41/ 77                         

  H.F. 442   card certifies that the patient has participated in the 1   medical cannabidiol   cannabis program and that the health 2   care practitioner has determined that four and one-half 3   seventeen grams of total tetrahydrocannabinol in a ninety-day 4   period is insufficient to treat the patients debilitating 5   medical condition. A certification issued pursuant to this 6   paragraph shall include a total tetrahydrocannabinol cap deemed 7   appropriate by the patients health care practitioner. 8   Sec. 65. Section 124E.9, Code 2023, is amended by adding the 9   following new subsection: 10   NEW SUBSECTION   . 16. A medical cannabis dispensary shall 11   share information regarding the dispensation of medical 12   cannabis to a patient with the health care practitioner 13   who certified the patient to receive a medical cannabis 14   registration card upon request of the health care practitioner. 15   Sec. 66. Section 124E.11, subsection 2, paragraph h, Code 16   2023, is amended to read as follows: 17   h. Establish and implement a real-time, statewide medical 18   cannabidiol   cannabis registry management sale tracking system 19   that is available to medical cannabidiol cannabis dispensaries 20   on a twenty-four-hour-a-day, seven-day-a-week basis for the 21   purpose of verifying that a person is lawfully in possession 22   of a medical cannabidiol   cannabis registration card issued 23   pursuant to this chapter and for tracking the date of the sale 24   and quantity of medical cannabidiol cannabis purchased by a 25   patient or a primary caregiver. The department may share 26   information regarding medical cannabis purchased by a patient 27   or a primary caregiver with the health care practitioner who 28   certified the patient or primary caregiver to purchase medical 29   cannabis.   30   Sec. 67. NEW SECTION . 124E.27 Health care practitioners  31   telemedicine. 32   1. A health care practitioner who uses telemedicine 33   shall establish a valid practitioner-patient relationship 34   with the person who receives telemedicine services. A 35   -42-   LSB 1615YH (11) 90   ss/rh 42/ 77                     

  H.F. 442   practitioner-patient relationship begins when all of the 1   following conditions are met: 2   a. A person with a health-related matter seeks assistance 3   from the health care practitioner. 4   b. The health care practitioner agrees to undertake 5   diagnosis and treatment of the person. 6   c. The person agrees to be treated by the health care 7   practitioner, regardless of whether there has been an in-person 8   encounter between the health care practitioner and the person. 9   2. A valid practitioner-patient relationship may be 10   established by any of the following: 11   a. An in-person medical interview and physical examination. 12   b. Through consultation with another health care 13   practitioner when the health care practitioner agrees to 14   participate in or supervise the patients care. 15   c. A telemedicine encounter, but only if the standard of 16   care does not require an in-person encounter, and in accordance 17   with evidence-based standards of practice and telemedicine 18   practice guidelines that address the clinical and technological 19   aspects of telemedicine. 20   Sec. 68. NEW SECTION   . 155A.49 Medical cannabis  21   recommendation. 22   The board shall adopt rules establishing the requirements a 23   pharmacist must meet prior to recommending the use of medical 24   cannabis by a patient pursuant to chapter 124E. 25   Sec. 69. MEDICAL CANNABIDIOL  FEDERAL EXEMPTION TASK 26   FORCE. The department of health and human services shall 27   convene a task force of legal experts to assist the department 28   in executing the departments responsibilities under 2020 Iowa 29   Acts, chapter 1116, section 31. 30   DIVISION IV   31   MEDICAL CANNABIS  INCOME TAXES   32   Sec. 70. Section 422.7, Code 2023, is amended by adding the 33   following new subsection: 34   NEW SUBSECTION   . 44. Subtract, to the extent included, the   35   -43-   LSB 1615YH (11) 90   ss/rh 43/ 77    

  H.F. 442   amount of business expense for a medical cannabis manufacturer 1   or medical cannabis dispensary licensed pursuant to chapter 2   124E without regard to section 280E of the Internal Revenue 3   Code. 4   Sec. 71. Section 422.35, Code 2023, is amended by adding the 5   following new subsection: 6   NEW SUBSECTION   . 15. Subtract, to the extent included, the 7   amount of business expense for a medical cannabis manufacturer 8   or medical cannabis dispensary licensed pursuant to chapter 9   124E without regard to section 280E of the Internal Revenue 10   Code. 11   DIVISION V 12   MEDICAL CANNABIS  SALES AND USE TAX 13   Sec. 72. Section 423.3, Code 2023, is amended by adding the 14   following new subsection: 15   NEW SUBSECTION   . 110. The sales price of the sale of a 16   medical cannabidiol product by a medical cannabis manufacturer 17   or a medical cannabis dispensary pursuant to chapter 124E. 18   DIVISION VI 19   MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO MEDICAL CANNABIS  20   CONFORMING CODE CHANGES 21   Sec. 73. Section 124.401, subsection 5, paragraph c, Code 22   2023, is amended to read as follows: 23   c. A person may knowingly or intentionally recommend, 24   possess, use, dispense, deliver, transport, or administer 25   cannabidiol   medical cannabis if the recommendation, possession, 26   use, dispensing, delivery, transporting, or administering is in 27   accordance with the provisions of chapter 124E . For purposes 28   of this paragraph, cannabidiol medical cannabis means the 29   same as defined in section 124E.2 .   30   Sec. 74. Section 124E.2, subsections 8, 9, 10, and 11, Code   31   2023, are amended to read as follows: 32   8. Laboratory means the state hygienic laboratory at 33   the university of Iowa in Iowa City or any other independent 34   medical cannabidiol   cannabis testing facility accredited 35   -44-   LSB 1615YH (11) 90   ss/rh 44/ 77          

  H.F. 442   to standard ISO/IEC 17025 by an international organization 1   for standards-approved accrediting body, with a controlled 2   substance registration certificate from the United States drug 3   enforcement administration and a certificate of registration 4   from the board of pharmacy. For the purposes of this chapter , 5   an independent laboratory is a laboratory operated by an entity 6   that has no equity ownership in a medical cannabidiol   cannabis 7   manufacturer. 8   9. Marijuana means any derivative of marijuana including 9   but not limited to medical cannabidiol   cannabis . 10   10. Medical cannabidiol   Medical cannabis means any 11   pharmaceutical grade cannabinoid found in the plant Cannabis 12   sativa L. or Cannabis indica or any other preparation thereof 13   that is delivered in a form recommended by the medical 14   cannabidiol   cannabis board, approved by the board of medicine, 15   and adopted by the department pursuant to rule. 16   11. Primary caregiver means a person who is a resident of 17   this state or a bordering state as defined in section 331.910 , 18   including but not limited to a parent or legal guardian, at 19   least eighteen years of age, who has been designated by a 20   patients health care practitioner as a necessary caretaker 21   taking responsibility for managing the well-being of the 22   patient with respect to the use of medical cannabidiol   cannabis 23   pursuant to the provisions of this chapter . 24   Sec. 75. Section 124E.3, subsection 1, unnumbered paragraph 25   1, Code 2023, is amended to read as follows: 26   Prior to a patients submission of an application for a 27   medical cannabidiol cannabis registration card pursuant to 28   section 124E.4 , a health care practitioner shall do all of the 29   following: 30   Sec. 76. Section 124E.3, subsection 1, paragraph b, Code 31   2023, is amended to read as follows:   32   b. Provide explanatory information as provided by the 33   department to the patient about the therapeutic use of medical 34   cannabidiol   cannabis and the possible risks, benefits, and side 35   -45-   LSB 1615YH (11) 90   ss/rh 45/ 77                

  H.F. 442   effects of the proposed treatment. 1   Sec. 77. Section 124E.4, subsection 1, unnumbered paragraph 2   1, Code 2023, is amended to read as follows: 3   Subject to subsection 6 , the department may issue a medical 4   cannabidiol cannabis registration card to a patient who: 5   Sec. 78. Section 124E.4, subsection 2, unnumbered paragraph 6   1, Code 2023, is amended to read as follows: 7   A medical cannabidiol   cannabis registration card issued to 8   a patient by the department pursuant to subsection 1 shall 9   contain, at a minimum, all of the following: 10   Sec. 79. Section 124E.4, subsection 2, paragraph b, Code 11   2023, is amended to read as follows: 12   b. The date of issuance and expiration date of the medical 13   cannabidiol   cannabis registration card. 14   Sec. 80. Section 124E.4, subsection 3, unnumbered paragraph 15   1, Code 2023, is amended to read as follows: 16   For a patient in a primary caregivers care, subject to 17   subsection 6 , the department may issue a medical cannabidiol   18   cannabis   registration card to the primary caregiver who: 19   Sec. 81. Section 124E.4, subsection 4, unnumbered paragraph 20   1, Code 2023, is amended to read as follows: 21   A medical cannabidiol   cannabis registration card issued by 22   the department to a primary caregiver pursuant to subsection 3 23   shall contain, at a minimum, all of the following: 24   Sec. 82. Section 124E.4, subsection 4, paragraph c, Code 25   2023, is amended to read as follows: 26   c. The medical cannabidiol   cannabis registration card 27   number of each patient in the primary caregivers care. If 28   the patient in the primary caregivers care is under the age 29   of eighteen, the full name of the patients parent or legal 30   guardian. 31   Sec. 83. Section 124E.4, subsections 5 and 6, Code 2023, are 32   amended to read as follows: 33   5. Expiration date of card. A medical cannabidiol   cannabis 34   registration card issued pursuant to this section shall expire 35   -46-   LSB 1615YH (11) 90   ss/rh 46/ 77                

  H.F. 442   one year after the date of issuance and may be renewed. 1   6. Federally approved clinical trials. The department shall 2   not approve the issuance of a medical cannabidiol   cannabis 3   registration card pursuant to this section for a patient who 4   is enrolled in a federally approved clinical trial for the 5   treatment of a debilitating medical condition with medical 6   cannabidiol cannabis . 7   Sec. 84. Section 124E.5, subsections 2, 3, 4, 5, and 6, Code 8   2023, are amended to read as follows: 9   2. The medical cannabidiol   cannabis board shall convene at 10   least twice per year. 11   3. The duties of the medical cannabidiol   cannabis board 12   shall include but not be limited to the following: 13   a. Accepting and reviewing petitions to add medical 14   conditions, medical treatments, or debilitating diseases to the 15   list of debilitating medical conditions for which the medical 16   use of cannabidiol   cannabis would be medically beneficial under 17   this chapter . 18   b. Making recommendations relating to the removal or 19   addition of debilitating medical conditions to the list 20   of allowable debilitating medical conditions for which the 21   medical use of cannabidiol   cannabis under this chapter would 22   be medically beneficial. 23   c. Working with the department regarding the requirements 24   for the licensure of medical cannabidiol   cannabis manufacturers 25   and medical cannabidiol dispensaries, including licensure 26   procedures. 27   d. Advising the department regarding the location of medical 28   cannabidiol cannabis manufacturers and medical cannabidiol 29   cannabis   dispensaries throughout the state. 30   e. Making recommendations relating to the form and quantity 31   of allowable medical uses of cannabidiol   cannabis .   32   4. Recommendations made by the medical cannabidiol   cannabis 33   board pursuant to subsection 3 , paragraphs b and e , shall 34   be made to the board of medicine for consideration, and if   35   -47-   LSB 1615YH (11) 90   ss/rh 47/ 77                        

  H.F. 442   approved, shall be adopted by the board of medicine by rule. 1   5. On or before January 1 of each year, beginning January 2   1, 2018, the medical cannabidiol   cannabis board shall submit a 3   report detailing the activities of the board. 4   6. The general assembly shall have the sole authority 5   to revise the definition of medical cannabidiol cannabis for 6   purposes of this chapter . 7   Sec. 85. Section 124E.6, subsections 2, 3, 4, and 5, Code 8   2023, are amended to read as follows: 9   2. As a condition for licensure, a medical cannabidiol   10   cannabis   manufacturer must agree to begin supplying medical 11   cannabidiol cannabis to medical cannabidiol cannabis 12   dispensaries in this state no later than December 1, 2018. 13   3. The department shall consider the following factors in 14   determining whether to select and license a medical cannabidiol   15   cannabis manufacturer: 16   a. The technical expertise of the medical cannabidiol 17   cannabis   manufacturer regarding medical cannabidiol cannabis . 18   b. The qualifications of the medical cannabidiol   cannabis 19   manufacturers employees. 20   c. The long-term financial stability of the medical 21   cannabidiol   cannabis manufacturer. 22   d. The ability to provide appropriate security measures on 23   the premises of the medical cannabidiol   cannabis manufacturer. 24   e. Whether the medical cannabidiol cannabis manufacturer 25   has demonstrated an ability to meet certain medical cannabidiol 26   cannabis production needs for medical use regarding the range 27   of recommended dosages for each debilitating medical condition, 28   the range of chemical compositions of any plant of the genus 29   cannabis that will likely be medically beneficial for each 30   of the debilitating medical conditions, and the form of the 31   medical cannabidiol   cannabis in the manner determined by the 32   department pursuant to rule. 33   f. The medical cannabidiol   cannabis manufacturers 34   projection of and ongoing assessment of fees on patients with 35   -48-   LSB 1615YH (11) 90   ss/rh 48/ 77                                

  H.F. 442   debilitating medical conditions. 1   4. A medical cannabidiol   cannabis manufacturer shall 2   contract with a laboratory to perform spot-check testing of 3   the medical cannabidiol cannabis produced by the medical 4   cannabidiol   cannabis manufacturer as provided in section 5   124E.7 . The department shall require that the laboratory 6   report testing results to the medical cannabidiol   cannabis 7   manufacturer and the department as determined by the department 8   by rule. If a medical cannabidiol   cannabis manufacturer 9   contracts with a laboratory other than the state hygienic 10   laboratory at the university of Iowa in Iowa City, the 11   department shall approve the laboratory to perform testing 12   pursuant to this chapter . 13   5. Each entity submitting an application for licensure 14   as a medical cannabidiol   cannabis manufacturer shall pay a 15   nonrefundable application fee of seven thousand five hundred 16   dollars to the department. 17   Sec. 86. Section 124E.7, subsections 1, 2, 3, 4, 5, 6, 7, 8, 18   9, 10, and 11, Code 2023, are amended to read as follows: 19   1. A medical cannabidiol   cannabis manufacturer shall 20   contract with a laboratory to perform spot-check testing of 21   the medical cannabidiol   cannabis produced by the medical 22   cannabidiol   cannabis manufacturer as to content, contamination, 23   and consistency. The cost of all laboratory testing shall be 24   paid by the medical cannabidiol cannabis manufacturer. 25   2. The operating documents of a medical cannabidiol 26   cannabis manufacturer shall include all of the following: 27   a. Procedures for the oversight of the medical cannabidiol 28   cannabis manufacturer and procedures to ensure accurate 29   recordkeeping. 30   b. Procedures for the implementation of appropriate security 31   measures to deter and prevent the theft of medical cannabidiol   32   cannabis and unauthorized entrance into areas containing 33   medical cannabidiol   cannabis .   34   3. A medical cannabidiol   cannabis manufacturer shall   35   -49-   LSB 1615YH (11) 90   ss/rh 49/ 77                                

  H.F. 442   implement security requirements, including requirements for 1   protection of each location by a fully operational security 2   alarm system, facility access controls, perimeter intrusion 3   detection systems, and a personnel identification system. 4   4. A medical cannabidiol cannabis manufacturer shall 5   not share office space with, refer patients to, or have any 6   financial relationship with a health care practitioner. 7   5. A medical cannabidiol   cannabis manufacturer shall not 8   permit any person to consume medical cannabidiol   cannabis on 9   the property of the medical cannabidiol cannabis manufacturer. 10   6. A medical cannabidiol   cannabis manufacturer is subject 11   to reasonable inspection by the department. 12   7. A medical cannabidiol cannabis manufacturer shall not 13   employ a person who is under eighteen years of age or who has 14   been convicted of a disqualifying felony offense. An employee 15   of a medical cannabidiol   cannabis manufacturer shall be subject 16   to a background investigation conducted by the division of 17   criminal investigation of the department of public safety and a 18   national criminal history background check pursuant to section 19   124E.19 . 20   8. A medical cannabidiol   cannabis manufacturer owner shall 21   not have been convicted of a disqualifying felony offense and 22   shall be subject to a background investigation conducted by 23   the division of criminal investigation of the department of 24   public safety and a national criminal history background check 25   pursuant to section 124E.19 . 26   9. A medical cannabidiol   cannabis manufacturer shall not   27   operate at the same physical location as a medical cannabidiol   28   cannabis dispensary. 29   10. A medical cannabidiol   cannabis manufacturer shall not 30   operate in any location, whether for manufacturing, possessing, 31   cultivating, harvesting, transporting, packaging, processing, 32   or supplying, within one thousand feet of a public or private 33   school existing before the date of the medical cannabidiol   34   cannabis   manufacturers licensure by the department. 35   -50-   LSB 1615YH (11) 90   ss/rh 50/ 77                          

  H.F. 442   11. A medical cannabidiol cannabis manufacturer shall 1   comply with reasonable restrictions set by the department 2   relating to signage, marketing, display, and advertising of 3   medical cannabidiol   cannabis . 4   Sec. 87. Section 124E.7, subsection 12, paragraphs a and b, 5   Code 2023, are amended to read as follows: 6   a. A medical cannabidiol cannabis manufacturer shall provide 7   a reliable and ongoing supply of medical cannabidiol cannabis 8   to medical cannabidiol   cannabis dispensaries pursuant to this 9   chapter . 10   b. All manufacturing, cultivating, harvesting, packaging, 11   and processing of medical cannabidiol   cannabis shall take place 12   in an enclosed, locked facility at a physical address provided 13   to the department during the licensure process. 14   Sec. 88. Section 124E.8, subsections 2, 3, and 4, Code 2023, 15   are amended to read as follows: 16   2. As a condition for licensure, a medical cannabidiol   17   cannabis   dispensary must agree to begin supplying medical 18   cannabidiol   cannabis to patients by December 1, 2018. 19   3. The department shall consider the following factors in 20   determining whether to select and license a medical cannabidiol   21   cannabis dispensary: 22   a. The technical expertise of the medical cannabidiol   23   cannabis dispensary regarding medical cannabidiol cannabis . 24   b. The qualifications of the medical cannabidiol cannabis 25   dispensarys employees. 26   c. The long-term financial stability of the medical 27   cannabidiol cannabis dispensary. 28   d. The ability to provide appropriate security measures on 29   the premises of the medical cannabidiol   cannabis dispensary. 30   e. The medical cannabidiol cannabis dispensarys projection 31   and ongoing assessment of fees for the purchase of medical 32   cannabidiol   cannabis on patients with debilitating medical 33   conditions.   34   4. Each entity submitting an application for licensure 35   -51-   LSB 1615YH (11) 90   ss/rh 51/ 77                                  

  H.F. 442   as a medical cannabidiol cannabis dispensary shall pay a 1   nonrefundable application fee of five thousand dollars to the 2   department. 3   Sec. 89. Section 124E.9, subsections 1, 2, 3, 4, 5, 6, 7, 4   8, 9, 10, 11, 12, and 13, Code 2023, are amended to read as 5   follows: 6   1. a. The medical cannabidiol   cannabis dispensaries shall 7   be located based on geographical need throughout the state to 8   improve patient access. 9   b. A medical cannabidiol   cannabis dispensary may dispense 10   medical cannabidiol   cannabis pursuant to the provisions of this 11   chapter but shall not dispense any medical cannabidiol cannabis 12   in a form or quantity other than the form or quantity allowed 13   by the department pursuant to rule. 14   2. The operating documents of a medical cannabidiol   15   cannabis dispensary shall include all of the following: 16   a. Procedures for the oversight of the medical cannabidiol 17   cannabis   dispensary and procedures to ensure accurate 18   recordkeeping. 19   b. Procedures for the implementation of appropriate security 20   measures to deter and prevent the theft of medical cannabidiol   21   cannabis and unauthorized entrance into areas containing 22   medical cannabidiol   cannabis . 23   3. A medical cannabidiol cannabis dispensary shall 24   implement security requirements, including requirements for 25   protection by a fully operational security alarm system, 26   facility access controls, perimeter intrusion detection 27   systems, and a personnel identification system. 28   4. A medical cannabidiol cannabis dispensary shall not 29   share office space with, refer patients to, or have any 30   financial relationship with a health care practitioner. 31   5. A medical cannabidiol   cannabis dispensary shall not 32   permit any person to consume medical cannabidiol cannabis on 33   the property of the medical cannabidiol   cannabis dispensary. 34   6. A medical cannabidiol cannabis dispensary is subject to 35   -52-   LSB 1615YH (11) 90   ss/rh 52/ 77                                

  H.F. 442   reasonable inspection by the department. 1   7. A medical cannabidiol   cannabis dispensary shall not 2   employ a person who is under eighteen years of age or who has 3   been convicted of a disqualifying felony offense. An employee 4   of a medical cannabidiol   cannabis dispensary shall be subject 5   to a background investigation conducted by the division of 6   criminal investigation of the department of public safety and a 7   national criminal history background check pursuant to section 8   124E.19 . 9   8. A medical cannabidiol   cannabis dispensary owner shall 10   not have been convicted of a disqualifying felony offense and 11   shall be subject to a background investigation conducted by 12   the division of criminal investigation of the department of 13   public safety and a national criminal history background check 14   pursuant to section 124E.19 . 15   9. A medical cannabidiol   cannabis dispensary shall not 16   operate at the same physical location as a medical cannabidiol 17   cannabis   manufacturer. 18   10. A medical cannabidiol   cannabis dispensary shall not 19   operate in any location within one thousand feet of a public 20   or private school existing before the date of the medical 21   cannabidiol   cannabis dispensarys licensure by the department. 22   11. A medical cannabidiol   cannabis dispensary shall comply 23   with reasonable restrictions set by the department relating 24   to signage, marketing, display, and advertising of medical 25   cannabidiol cannabis . 26   12. Prior to dispensing of any medical cannabidiol 27   cannabis , a medical cannabidiol cannabis dispensary shall do 28   all of the following: 29   a. Verify that the medical cannabidiol   cannabis dispensary 30   has received a valid medical cannabidiol cannabis registration 31   card from a patient or a patients primary caregiver, if 32   applicable. 33   b. Assign a tracking number to any medical cannabidiol   34   cannabis dispensed from the medical cannabidiol cannabis 35   -53-   LSB 1615YH (11) 90   ss/rh 53/ 77                                

  H.F. 442   dispensary. 1   c. Properly package medical cannabidiol   cannabis in 2   compliance with federal law regarding child resistant packaging 3   and exemptions for packaging for elderly patients, and 4   label medical cannabidiol   cannabis with a list of all active 5   ingredients and individually identifying information. 6   13. A medical cannabidiol   cannabis dispensary shall employ 7   a pharmacist or pharmacy technician licensed or registered 8   pursuant to chapter 155A for the purpose of making dosing 9   recommendations. 10   Sec. 90. Section 124E.9, subsection 15, paragraph a, Code 11   2023, is amended to read as follows: 12   a. The health care practitioner who certified the patient 13   to receive a medical cannabidiol   cannabis registration card 14   certifies that patients debilitating medical condition is a 15   terminal illness with a life expectancy of less than one year. 16   A certification issued pursuant to this paragraph shall include 17   a total tetrahydrocannabinol cap deemed appropriate by the 18   patients health care practitioner. 19   Sec. 91. Section 124E.10, Code 2023, is amended to read as 20   follows: 21   124E.10 Fees. 22   All fees collected by the department under this chapter 23   shall be retained by the department for operation of the 24   medical cannabidiol   cannabis registration card program and 25   the medical cannabidiol cannabis manufacturer and medical 26   cannabidiol cannabis dispensary licensing programs. The moneys 27   retained by the department shall be considered repayment 28   receipts as defined in section 8.2 and shall be used for any of 29   the departments duties under this chapter , including but not 30   limited to the addition of full-time equivalent positions for 31   program services and investigations. Notwithstanding section 32   8.33 , moneys retained by the department pursuant to this 33   section shall not revert to the general fund of the state but 34   shall remain available for expenditure only for the purposes 35   -54-   LSB 1615YH (11) 90   ss/rh 54/ 77                

  H.F. 442   specified in this section . 1   Sec. 92. Section 124E.11, subsection 1, paragraph a, Code 2   2023, is amended to read as follows: 3   a. The department shall maintain a confidential file of the 4   names of each patient to or for whom the department issues a 5   medical cannabidiol   cannabis registration card and the name of 6   each primary caregiver to whom the department issues a medical 7   cannabidiol cannabis registration card under section 124E.4 . 8   Sec. 93. Section 124E.11, subsection 1, paragraph b, 9   subparagraph (1), subparagraph divisions (b), (c), and (d), 10   Code 2023, are amended to read as follows: 11   (b) To authorized employees of law enforcement agencies 12   of a state or political subdivision thereof, but only for the 13   purpose of verifying that a person is lawfully in possession 14   of a medical cannabidiol   cannabis registration card issued 15   pursuant to this chapter . 16   (c) To authorized employees of a medical cannabidiol 17   cannabis   dispensary, but only for the purposes of verifying 18   that a person is lawfully in possession of a medical 19   cannabidiol   cannabis registration card issued pursuant 20   to this chapter and that a person has not purchased total 21   tetrahydrocannabinol in excess of the amount authorized by this 22   chapter . 23   (d) To any other authorized persons recognized by the 24   department by rule, but only for the purpose of verifying that 25   a person is lawfully in possession of a medical cannabidiol   26   cannabis registration card issued pursuant to this chapter . 27   Sec. 94. Section 124E.11, subsection 2, paragraphs a, b, c, 28   d, e, f, g, and i, Code 2023, are amended to read as follows: 29   a. Govern the manner in which the department shall consider 30   applications for new and renewal medical cannabidiol   cannabis 31   registration cards. 32   b. Ensure that the medical cannabidiol   cannabis registration 33   card program operates on a self-sustaining basis. 34   c. Establish the form and quantity of medical cannabidiol   35   -55-   LSB 1615YH (11) 90   ss/rh 55/ 77                   

  H.F. 442   cannabis allowed to be dispensed to a patient or primary 1   caregiver pursuant to this chapter as appropriate to serve the 2   medical needs of patients with debilitating medical conditions, 3   subject to recommendation by the medical cannabidiol   cannabis 4   board and approval by the board of medicine. 5   d. Establish requirements for the licensure of medical 6   cannabidiol cannabis manufacturers and medical cannabidiol 7   cannabis dispensaries and set forth procedures for medical 8   cannabidiol   cannabis manufacturers and medical cannabidiol 9   cannabis dispensaries to obtain licenses. 10   e. Develop a dispensing system for medical cannabidiol   11   cannabis within this state that provides for all of the 12   following: 13   (1) Medical cannabidiol   cannabis dispensaries within this 14   state housed on secured grounds and operated by licensed 15   medical cannabidiol cannabis dispensaries. 16   (2) The dispensing of medical cannabidiol cannabis to 17   patients and their primary caregivers to occur at locations 18   designated by the department. 19   f. Establish and collect annual fees from medical 20   cannabidiol   cannabis manufacturers and medical cannabidiol 21   cannabis dispensaries to cover the costs associated with 22   regulating and inspecting medical cannabidiol   cannabis 23   manufacturers and medical cannabidiol cannabis dispensaries. 24   g. Specify and implement procedures that address public 25   safety including security procedures and product quality 26   including measures to ensure contaminant-free cultivation of 27   medical cannabidiol cannabis , safety, and labeling. 28   i. Establish and implement a medical cannabidiol cannabis 29   inventory and delivery tracking system to track medical 30   cannabidiol   cannabis from production by a medical cannabidiol 31   cannabis   manufacturer through dispensing at a medical 32   cannabidiol cannabis dispensary. 33   Sec. 95. Section 124E.12, Code 2023, is amended to read as   34   follows:   35   -56-   LSB 1615YH (11) 90   ss/rh 56/ 77                                       

  H.F. 442   124E.12 Use of medical cannabidiol cannabis  affirmative 1   defenses. 2   1. A health care practitioner, including any authorized 3   agent or employee thereof, shall not be subject to 4   prosecution for the unlawful certification, possession, or 5   administration of marijuana under the laws of this state for 6   activities arising directly out of or directly related to the 7   certification or use of medical cannabidiol   cannabis in the 8   treatment of a patient diagnosed with a debilitating medical 9   condition as authorized by this chapter . 10   2. A medical cannabidiol   cannabis manufacturer, including 11   any authorized agent or employee thereof, shall not be subject 12   to prosecution for manufacturing, possessing, cultivating, 13   harvesting, transporting, packaging, processing, or supplying 14   medical cannabidiol   cannabis pursuant to this chapter . 15   3. A medical cannabidiol cannabis dispensary, including 16   any authorized agent or employee thereof, shall not be subject 17   to prosecution for dispensing medical cannabidiol   cannabis 18   pursuant to this chapter . 19   4. a. In a prosecution for the unlawful possession of 20   marijuana under the laws of this state for the possession 21   of medical cannabidiol   cannabis , including but not limited 22   to chapters 124 and 453B , it is an affirmative and complete 23   defense to the prosecution that the patient has been diagnosed 24   with a debilitating medical condition, used or possessed 25   medical cannabidiol   cannabis pursuant to a certification by a 26   health care practitioner as authorized under this chapter , and, 27   for a patient eighteen years of age or older, is in possession 28   of a valid medical cannabidiol cannabis registration card 29   issued pursuant to this chapter . 30   b. In a prosecution for the unlawful possession of marijuana 31   under the laws of this state for the possession of medical 32   cannabidiol   cannabis , including but not limited to chapters 33   124 and 453B , it is an affirmative and complete defense to 34   the prosecution that the person possessed medical cannabidiol   35   -57-   LSB 1615YH (11) 90   ss/rh 57/ 77                       

  H.F. 442   cannabis because the person is a primary caregiver of a patient 1   who has been diagnosed with a debilitating medical condition 2   and is in possession of a valid medical cannabidiol   cannabis 3   registration card issued pursuant to this chapter , and where 4   the primary caregivers possession of the medical cannabidiol   5   cannabis   is on behalf of the patient and for the patients use 6   only as authorized under this chapter . 7   c. If a patient or primary caregiver is charged with 8   the unlawful possession of marijuana under the laws of this 9   state for the possession of medical cannabidiol   cannabis , 10   including but not limited to chapters 124 and 453B , and is not 11   in possession of the persons medical cannabidiol   cannabis 12   registration card, any charge or charges filed against the 13   person for the possession of medical cannabidiol   cannabis 14   shall be dismissed by the court if the person produces to the 15   court prior to or at the persons trial a medical cannabidiol 16   cannabis registration card issued to that person and valid at 17   the time the person was charged. 18   5. An agency of this state or a political subdivision 19   thereof, including any law enforcement agency, shall not remove 20   or initiate proceedings to remove a patient under the age 21   of eighteen from the home of a parent based solely upon the 22   parents or patients possession or use of medical cannabidiol   23   cannabis as authorized under this chapter . 24   6. The department and any health care practitioner, 25   including any authorized agent or employee thereof, are not 26   subject to any civil or disciplinary penalties by the board 27   of medicine or any business, occupational, or professional 28   licensing board or entity, solely for activities conducted 29   relating to a patients possession or use of medical 30   cannabidiol   cannabis as authorized under this chapter . Nothing 31   in this section affects a professional licensing board from 32   taking action in response to violations of any other section 33   of law. 34   7. Notwithstanding any law to the contrary, the department, 35   -58-   LSB 1615YH (11) 90   ss/rh 58/ 77                   

  H.F. 442   the governor, or any employee of any state agency shall not 1   be held civilly or criminally liable for any injury, loss 2   of property, personal injury, or death caused by any act or 3   omission while acting within the scope of office or employment 4   as authorized under this chapter . 5   8. An attorney shall not be subject to disciplinary action 6   by the Iowa supreme court or attorney disciplinary board for 7   providing legal assistance to a patient, primary caregiver, or 8   others based upon a patients or primary caregivers possession 9   or use of medical cannabidiol   cannabis as authorized under this 10   chapter . 11   9. Possession of a medical cannabidiol   cannabis 12   registration card or an application for a medical cannabidiol 13   cannabis   registration card by a person entitled to possess or 14   apply for a medical cannabidiol cannabis registration card 15   shall not constitute probable cause or reasonable suspicion, 16   and shall not be used to support a search of the person or 17   property of the person possessing or applying for the medical 18   cannabidiol   cannabis registration card, or otherwise subject 19   the person or property of the person to inspection by any 20   governmental agency. 21   Sec. 96. Section 124E.13, Code 2023, is amended to read as 22   follows: 23   124E.13 Medical cannabidiol   cannabis source. 24   Medical cannabidiol cannabis provided exclusively pursuant 25   to a written certification of a health care practitioner, if 26   not legally available in this state or from any other bordering 27   state, shall be obtained from an out-of-state source.   28   Sec. 97. Section 124E.14, Code 2023, is amended to read as   29   follows:   30   124E.14 Out-of-state medical cannabidiol   cannabis 31   dispensaries. 32   The department of public health shall utilize a request for 33   proposals process to select and license by December 1, 2017, up 34   to two out-of-state medical cannabidiol   cannabis dispensaries 35   -59-   LSB 1615YH (11) 90   ss/rh 59/ 77                    

  H.F. 442   from a bordering state to sell and dispense medical cannabidiol 1   cannabis   to a patient or primary caregiver in possession of a 2   valid medical cannabidiol cannabis registration card issued 3   under this chapter . 4   Sec. 98. Section 124E.15, Code 2023, is amended to read as 5   follows: 6   124E.15 Iowa patients and primary caregivers registering in 7   the state of Minnesota. 8   A patient or a primary caregiver with a valid medical 9   cannabidiol   cannabis registration card issued pursuant to this 10   chapter may register in the state of Minnesota as a visiting 11   qualified patient or primary caregiver and may register with 12   one or more medical cannabis manufacturers registered under the 13   laws of Minnesota. 14   Sec. 99. Section 124E.16, Code 2023, is amended to read as 15   follows: 16   124E.16 Penalties. 17   1. A person who knowingly or intentionally possesses or uses 18   medical cannabidiol   cannabis in violation of the requirements 19   of this chapter is subject to the penalties provided under 20   chapters 124 and 453B . 21   2. A medical cannabidiol   cannabis manufacturer or a medical 22   cannabidiol   cannabis dispensary shall be assessed a civil 23   penalty of up to one thousand dollars per violation for any 24   violation of this chapter in addition to any other applicable 25   penalties. 26   Sec. 100. Section 124E.17, Code 2023, is amended to read as   27   follows: 28   124E.17 Use of medical cannabidiol   cannabis  smoking 29   prohibited. 30   A patient shall not consume medical cannabidiol   cannabis 31   possessed or used as authorized under this chapter by smoking 32   medical cannabidiol   cannabis .   33   Sec. 101. Section 124E.18, Code 2023, is amended to read as   34   follows:   35   -60-   LSB 1615YH (11) 90   ss/rh 60/ 77                    

  H.F. 442   124E.18 Reciprocity. 1   A valid medical cannabidiol   cannabis registration card, 2   or its equivalent, issued under the laws of another state 3   that allows an out-of-state patient to possess or use medical 4   cannabidiol   cannabis in the jurisdiction of issuance shall 5   have the same force and effect as a valid medical cannabidiol   6   cannabis registration card issued pursuant to this chapter , 7   except that an out-of-state patient in this state shall not 8   obtain medical cannabidiol   cannabis from a medical cannabidiol 9   cannabis dispensary in this state. 10   Sec. 102. Section 124E.19, subsections 1, 2, and 4, Code 11   2023, are amended to read as follows: 12   1. The division of criminal investigation of the 13   department of public safety shall conduct thorough background 14   investigations for the purposes of licensing medical 15   cannabidiol   cannabis manufacturers and medical cannabidiol 16   cannabis dispensaries under this chapter . The results of any 17   background investigation conducted pursuant to this section 18   shall be presented to the department. 19   a. An applicant for a medical cannabidiol   cannabis 20   manufacturer license or a medical cannabidiol   cannabis 21   dispensary license and their owners, investors, and employees 22   shall submit all required information on a form prescribed by 23   the department of public safety. 24   b. The department shall charge an applicant for a medical 25   cannabidiol   cannabis manufacturer license or a medical 26   cannabidiol cannabis dispensary license a fee determined by 27   the department of public safety and adopted by the department 28   by rule to defray the costs associated with background 29   investigations conducted pursuant to the requirements of this 30   section . The fee shall be in addition to any other fees 31   charged by the department. The fee may be retained by the 32   department of public safety and shall be considered repayment 33   receipts as defined in section 8.2 . 34   2. The department shall require an applicant for a 35   -61-   LSB 1615YH (11) 90   ss/rh 61/ 77                        

  H.F. 442   medical cannabidiol cannabis manufacturer license or a 1   medical cannabidiol   cannabis dispensary license, their owners 2   and investors, and applicants for employment at a medical 3   cannabidiol cannabis manufacturer or medical cannabidiol 4   cannabis   dispensary to submit fingerprints and other required 5   identifying information to the department on a form prescribed 6   by the department of public safety. The department shall 7   submit the fingerprint cards and other identifying information 8   to the division of criminal investigation of the department 9   of public safety for submission to the federal bureau of 10   investigation for the purpose of conducting a national criminal 11   history record check. The department may require employees and 12   contractors involved in carrying out a background investigation 13   to submit fingerprints and other identifying information for 14   the same purpose. 15   4. An applicant for a medical cannabidiol   cannabis 16   manufacturer license or a medical cannabidiol cannabis 17   dispensary license shall submit information and fees required 18   by this section at the time of application. 19   Sec. 103. Section 124E.20, Code 2023, is amended to read as 20   follows: 21   124E.20 Observational effectiveness study. 22   The department may conduct an observational effectiveness 23   study in cooperation with patients and health care 24   practitioners and pursuant to rules of the department in order 25   to study the effectiveness of medical cannabidiol   cannabis in 26   the treatment of debilitating medical conditions. 27   Sec. 104. Section 204.17, subsection 4, Code 2023, is   28   amended to read as follows: 29   4. Nothing in this chapter shall be construed or applied 30   to authorize a person to manufacture, recommend, possess, use, 31   dispense, deliver, transport, or administer medical cannabidiol   32   cannabis pursuant to chapter 124E . 33   Sec. 105. Section 730.5, subsection 11, paragraph f, Code 34   2023, is amended to read as follows: 35   -62-   LSB 1615YH (11) 90   ss/rh 62/ 77                  

  H.F. 442   f. Testing or taking action against an employee or 1   prospective employee with a confirmed positive test result due 2   to the employees or prospective employees use of medical 3   cannabidiol   cannabis as authorized under chapter 124E . 4   DIVISION VII 5   EFFECTIVE DATE 6   Sec. 106. EFFECTIVE DATE. This Act, being deemed of 7   immediate importance, takes effect upon enactment, except that 8   the alcoholic beverages division of the department of commerce 9   shall not issue a license to operate a retail marijuana 10   establishment prior to January 1, 2024. 11   DIVISION VIII 12   CODE EDITOR DIRECTIVE 13   Sec. 107. CODE EDITOR DIRECTIVE  SUBCHAPTER DESIGNATIONS. 14   1. The Code editor is directed to create two new subchapters 15   in chapter 124F as follows: 16   a. Subchapter I shall be entitled CRIMINAL PENALTIES and 17   include sections 124F.1 through 124F.3. 18   b. Subchapter II shall be entitled RETAIL MARIJUANA and 19   include sections 124F.4 through 124F.27. 20   2. The Code editor may modify subchapter titles if necessary 21   and is directed to correct internal references in the Code as 22   necessary due to enactment of this section. 23   EXPLANATION 24   The inclusion of this explanation does not constitute agreement with 25   the explanations substance by the members of the general assembly. 26   This bill relates to marijuana, including retail marijuana 27   and medical cannabis.   28   DIVISION I  MARIJUANA  CRIMINAL PENALTIES. The   29   bill modifies criminal penalties relating to marijuana by 30   eliminating and modifying certain criminal provisions in 31   Code chapter 124 (uniform controlled substances Act), and 32   transferring certain criminal provisions from Code chapter 124 33   to new Code chapter 124F. 34   MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER   35   -63-   LSB 1615YH (11) 90   ss/rh 63/ 77    

  H.F. 442   MARIJUANA. The bill provides that an unauthorized person 1   commits a class C felony punishable by confinement for 2   no more than 10 years and a fine of at least $1,370 but not 3   more than $13,660 if the person violates new Code section 4   124F.2(1)(a) and the controlled substance involves more than 5   50 kilograms of marijuana. Currently, such a person commits 6   a class B felony punishable by confinement of no more than 7   50 years if the controlled substance involves more than 1,000 8   kilograms of a mixture or substance containing a detectable 9   amount of marijuana, or a class B felony punishable by 10   confinement of no more than 25 years if the controlled 11   substance involves more than 100 kilograms of marijuana but not 12   more than 1,000 kilograms. 13   The bill provides that an unauthorized person commits a 14   class D felony if the person violates new Code section 15   124F.2(1)(a) and the controlled substance involves more than 16   2 kilograms of marijuana but not more than 50 kilograms. A 17   class D felony is punishable by confinement for no more than 18   five years and a fine of at least $1,025 but not more than 19   $10,245. Currently, such a person commits a class C felony 20   if the controlled substance involves more than 50 kilograms of 21   marijuana but not more than 100 kilograms. 22   The bill provides that an unauthorized person commits an 23   aggravated misdemeanor if the person violates new Code section 24   124F.2(1)(a) and the controlled substance involves more than 25   12 ounces of marijuana but not more than 2 kilograms. An 26   aggravated misdemeanor is punishable by confinement for no more 27   than two years and a fine of at least $855 but not more than 28   $8,540. Currently, such a person commits a class D felony 29   if the controlled substance involves 50 kilograms or less of 30   marijuana. 31   The bill provides that an unauthorized person commits a 32   serious misdemeanor if the person violates new Code section 33   124F.2(1)(a) and the controlled substance involves more than 34   4 ounces of marijuana but not more than 12 ounces. A serious 35   -64-   LSB 1615YH (11) 90   ss/rh 64/ 77  

  H.F. 442   misdemeanor is punishable by confinement for no more than one 1   year and a fine of at least $430 but not more than $2,560. 2   Currently, such a person commits a class D felony. 3   The bill provides that an unauthorized person commits a 4   simple misdemeanor if the person violates new Code section 5   124F.2(1)(a) and the controlled substance involves 4 ounces or 6   less of marijuana except as otherwise provided in the bill. A 7   simple misdemeanor is punishable by confinement for no more 8   than 30 days and a fine of at least $105 but not more than $855. 9   Currently, such a person commits a class D felony. A person 10   who is 18 years of age or older who unlawfully manufactures 11   with the intent to distribute, distributes, or possesses with 12   the intent to distribute marijuana to another person who is 13   18 years of age or older in or on, or within 1,000 feet of, 14   the real property comprising a public or private elementary or 15   secondary school, public park, public swimming pool, public 16   recreation center, or on a marked school bus, may be sentenced 17   up to an additional term of confinement of five years. 18   POSSESSION OF MARIJUANA. The bill provides that if a person 19   unlawfully possesses more than 6 ounces of marijuana but not 20   more than 12 ounces, the person commits a serious misdemeanor. 21   The bill provides that if a person unlawfully possesses more 22   than one-half ounce of marijuana but not more than 6 ounces, 23   the person commits a simple misdemeanor. 24   The bill provides that if a person 21 years of age or older 25   possesses one-half ounce or less of marijuana, the person does 26   not commit a criminal offense but shall be assessed a civil   27   penalty in the amount of $100. If the person is under 21 years 28   of age, the person must complete 10 hours of unpaid community 29   service and a substance abuse program, and inform the persons 30   parents or legal guardians. The bill provides that any records 31   relating to the civil penalty shall not be displayed for public 32   viewing on the Iowa court information system and such records 33   shall not be kept in the criminal history files maintained by 34   the department of public safety. 35   -65-   LSB 1615YH (11) 90   ss/rh 65/ 77  

  H.F. 442   RETAIL MARIJUANA  POSSESSION LIMITS. The bill establishes 1   possession limits for retail marijuana, defined in the bill. 2   The bill prohibits a person 21 years of age or older from 3   possessing more than 5 ounces of marijuana flower, or 500 4   milligrams of tetrahydrocannabinol contained in a product 5   infused with marijuana. A person in possession of retail 6   marijuana in excess of amounts equivalent to the amounts 7   specified in the bill for the possession of marijuana is 8   subject to prosecution for a simple or serious misdemeanor or 9   a civil penalty. A retail marijuana store that sells retail 10   marijuana in excess of the amounts allowed in the bill is 11   subject to a fine or other discipline imposed by the division. 12   Currently, if a person unlawfully possesses marijuana, the 13   person shall be punished by imprisonment in the county jail for 14   not more than six months or by a fine of not more than $1,000, 15   or by both for a first offense. If the person has previously 16   been convicted of marijuana possession, the person commits a 17   serious misdemeanor under current law, and if the person has 18   been convicted of marijuana possession two or more times, the 19   person commits an aggravated misdemeanor. 20   JUVENILE MARIJUANA OFFENSES. The bill specifies that the 21   juvenile court shall have exclusive original jurisdiction in a 22   proceeding concerning a minor who is alleged to have committed 23   a violation of the bill. 24   GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED. 25   The bill strikes a provision making it a serious misdemeanor 26   for a person to sponsor, promote, or aid in the sponsoring 27   or promoting of a meeting or gathering with the knowledge or 28   intent that marijuana be distributed, used, or possessed at the 29   meeting or gathering in violation of Code chapter 124. 30   ACCOMMODATION OFFENSE. The bill strikes a provision 31   allowing a prosecution for unlawful delivery or possession with 32   intent to deliver marijuana, if the prosecution proves that 33   the defendant delivered or possessed with intent to deliver 34   one-half ounce or less of marijuana which was not offered for 35   -66-   LSB 1615YH (11) 90   ss/rh 66/ 77  

  H.F. 442   sale, the defendant is guilty of an accommodation offense 1   and rather than being sentenced for a class D felony under 2   Code section 124.401(1)(d), the person is sentenced for a 3   misdemeanor in violation of Code section 124.401(5). The bill 4   makes conforming changes to Code sections 124.401G (Iowa hemp 5   Act) and 124.413 (mandatory minimum sentences  controlled 6   substances). 7   SECOND OR SUBSEQUENT OFFENSES. Currently, a person 8   convicted of a second or subsequent offense under Code chapter 9   124 may be punished by imprisonment for a period not to exceed 10   three times the term otherwise authorized, or fined not more 11   than three times the amount otherwise authorized. The bill 12   strikes the provision that allows for the use of a previous 13   marijuana conviction in determining if a person has been 14   convicted of a second or subsequent offense under Code chapter 15   124. 16   MARIJUANA IN MOTOR VEHICLES. The bill prohibits a driver 17   of a motor vehicle upon a public street or highway from using 18   marijuana in the passenger area of the motor vehicle. The bill 19   also prohibits a driver or passenger of or in a motor vehicle 20   upon a public street or highway from possessing marijuana in 21   the passenger area of a motor vehicle except in a sealed, odor 22   proof, child resistant container. The bill defines passenger 23   area as the area designed to seat the driver and passengers 24   while the motor vehicle is in operation and any area that is 25   readily accessible to the driver or a passenger while in their 26   seating positions, including the glove compartment. A person 27   who knowingly violates this provision of the bill is guilty of 28   a simple misdemeanor. A simple misdemeanor is punishable by 29   confinement for no more than 30 days and a fine of at least $105 30   but not more than $855. 31   The bill prohibits a person from operating a motor 32   vehicle with 50 or more nanograms of tetrahydrocannabinol 33   in the person, as measured in the persons blood. A person 34   who operates a motor vehicle with 50 or more nanograms of 35   -67-   LSB 1615YH (11) 90   ss/rh 67/ 77  

  H.F. 442   tetrahydrocannabinol in the person shall have that persons 1   drivers license suspended for 180 days for a first offense and 2   one year for each subsequent offense. A person who refuses 3   to submit to chemical testing for tetrahydrocannabinol shall 4   have the persons drivers license suspended for one year for a 5   first offense, and two years for each subsequent offense. 6   EXPUNGEMENT. The bill provides that upon application by a 7   defendant convicted of a felony offense under Code chapter 124 8   (controlled substances) related to the possession or transfer 9   of marijuana prior to January 1, 2023, the court shall enter an 10   order expunging the record of such a criminal case. A person 11   may only seek an expungement once, but an application may 12   request the expungement of multiple nonviolent offenses if the 13   offenses arose from the same transaction or occurrence. Under 14   current law, misdemeanor marijuana offenses may be expunged 15   pursuant to Code section 901C.3 (misdemeanor expungement). The 16   bill requires each court, on the effective date of the bill, to 17   review its records to identify persons convicted of marijuana 18   offenses that would have been legal under the bill and to 19   automatically expunge each such conviction. 20   DIVISION II  RETAIL MARIJUANA. Division II of the 21   bill relates to the regulation of retail marijuana in Iowa. 22   The bill grants the alcoholic beverages division of the 23   department of commerce (division) the authority to regulate the 24   cultivation, production, transportation, testing, and sale of 25   retail marijuana and retail marijuana products, including by 26   issuing appropriate licenses and promulgating rules. 27   The bill requires the division to transfer half of any 28   application fee collected to the local jurisdiction in which 29   the retail marijuana establishment will be located. The 30   bill allows local jurisdictions to impose limitations on the 31   operation of retail marijuana establishments, including by 32   prohibiting their operation. 33   The bill directs the division to develop and maintain a 34   seed-to-sale tracking system to track retail marijuana from the 35   -68-   LSB 1615YH (11) 90   ss/rh 68/ 77  

  H.F. 442   seed or immature plant stage until it is sold to a consumer at a 1   retail marijuana establishment. 2   The bill requires the division to prioritize applicants 3   for state licenses who currently hold a license pursuant to 4   Code chapter 124E (medical cannabidiol) or that are businesses 5   majority-owned by women, citizens or permanent legal residents 6   of Iowa, or disabled veterans. The bill requires the division 7   to issue licenses to businesses that are majority-owned by 8   persons who are racial minorities in a proportion that meets or 9   exceeds the percentage of persons in this state who are racial 10   minorities according to the most recent federal decennial 11   census. 12   The bill prohibits the owner of a retail marijuana 13   establishment from interfering with activities of employees 14   relating to labor organizations. 15   LOCAL LICENSES. The bill requires the division to transmit 16   any application for a retail marijuana establishment it 17   receives to the local jurisdiction where the establishment 18   will be located within seven days of receipt unless the 19   local jurisdiction has prohibited the operation of retail 20   marijuana establishments. The local jurisdiction must then 21   inform the division whether the application complies with 22   any local restrictions on the operation of retail marijuana 23   establishments it may have imposed. The bill requires a person 24   to receive approval from both the division and the local 25   jurisdiction before operating a retail marijuana establishment. 26   A person whose application for a license is denied is entitled 27   to a hearing and judicial review pursuant to Code chapter 17A. 28   RETAIL MARIJUANA LICENSES. Ninety days prior to the 29   expiration date of an existing license, the division shall 30   notify the licensee of the expiration date by first class 31   mail at the licensees address of record with the division. 32   A licensee may apply for the renewal of an existing license 33   to the division not less than 30 days prior to the date of 34   expiration. 35   -69-   LSB 1615YH (11) 90   ss/rh 69/ 77  

  H.F. 442   RETAIL MARIJUANA STORES. The bill allows a retail marijuana 1   store to purchase retail marijuana from a retail marijuana 2   cultivation facility. A retail marijuana store may also 3   sell prepackaged and labeled retail marijuana products. A 4   retail marijuana store must track all of its retail marijuana 5   and retail marijuana products from the point that they are 6   transferred to the retail marijuana store to the point of 7   sale. The bill prohibits a retail marijuana store from selling 8   more than one ounce of retail marijuana or its equivalent 9   to a person in a single transaction, excluding nonedible, 10   nonpsychoactive retail marijuana products. 11   Prior to initiating a sale, the bill requires a retail 12   marijuana store employee to verify that purchaser has a valid 13   identification card showing that the person is 21 years of age 14   or older. If a purchaser presents a retail marijuana store 15   employee with fraudulent proof of age, any action taken in 16   reliance on that proof of age shall not be grounds for the 17   revocation or suspension of a license. 18   The bill allows a retail marijuana store to provide to the 19   state hygienic laboratory a sample of its products for testing 20   and research purposes. The retail marijuana store shall 21   maintain a record of what was provided to the laboratory and 22   the results of the testing. 23   The bill prohibits a retail marijuana store from selling 24   any products other than retail marijuana, retail marijuana 25   products, marijuana accessories, nonconsumable products such as 26   apparel, and marijuana products such as childproof packaging 27   containers.   28   The bill prohibits the division from issuing more than one 29   retail marijuana store license per county, except that the 30   division may, upon receipt of a petition, issue one additional 31   retail marijuana store license per 100,000 population in the 32   county. The bill allows a location licensed as a retail 33   marijuana store to also be licensed as a medical cannabis 34   dispensary, pursuant to rules adopted by the division in 35   -70-   LSB 1615YH (11) 90   ss/rh 70/ 77  

  H.F. 442   consultation with the Iowa department of public health. 1   RETAIL MARIJUANA CULTIVATION. The bill allows the division 2   to issue retail marijuana cultivation facility licenses 3   to persons who cultivate retail marijuana for sale and 4   distribution to retail marijuana stores, manufacturers, or 5   other cultivation facilities. The bill requires a retail 6   marijuana cultivation facility to remit any applicable tax due. 7   The bill also requires a retail marijuana cultivation facility 8   to track the marijuana it cultivates from seed or immature 9   plant to wholesale purchase. 10   RETAIL MARIJUANA PRODUCTS MANUFACTURING LICENSES. The 11   bill allows the division to issue retail marijuana products 12   manufacturing licenses to persons who manufacture retail 13   marijuana products. The bill requires a retail marijuana 14   products manufacturer to track all of its retail marijuana from 15   the point it is either transferred from its retail marijuana 16   cultivation facility or the point when it is delivered to the 17   retail marijuana products manufacturer from a retail marijuana 18   cultivation facility to the point of transfer to a retail 19   marijuana store. 20   The bill requires retail marijuana products to be 21   manufactured and prepared in a facility that only manufactures 22   retail marijuana products, except that premises may be shared 23   with a medical cannabis-infused products manufacturer so long 24   as a virtual or physical separation of inventory is maintained. 25   RETAIL MARIJUANA USE  PROTECTIONS. The bill prohibits 26   the state and its political subdivisions from taking certain 27   actions against a person on the basis that the person has 28   engaged in conduct allowed by the bill. The state and its 29   political subdivisions shall not prosecute a person, deny a 30   person a professional license, deny a person a benefit or 31   entitlement, deny a person custody or visitation of a child, 32   deny a person employment or a contract, or deny a person 33   medical care on the basis that the person has engaged in 34   conduct allowed by the bill. The bill also prohibits the 35   -71-   LSB 1615YH (11) 90   ss/rh 71/ 77  

  H.F. 442   state or a political subdivision from denying employment 1   or a contract to a person on the basis of a persons prior 2   conviction of a nonviolent marijuana offense that does not 3   involve distribution to a minor. The bill excludes engaging 4   in conduct allowed by the bill from being classified as a 5   violation of a condition of parole, probation, or pretrial 6   release unless there is a specific finding that the conduct 7   could create a danger to the individual or another person. 8   The bill does not prohibit a governmental employer from 9   disciplining an employee or contractor for ingesting marijuana 10   at work or working while under the influence of marijuana, nor 11   does it prohibit a licensing board from imposing a penalty on a 12   person for engaging in conduct that would constitute negligence 13   or professional malpractice. The protections of the bill do 14   not apply to the extent that they conflict with a governmental 15   employers obligations under federal law or would disqualify 16   a governmental employer from a monetary or licensing-related 17   benefit under federal law. 18   FEES. The bill allows the division to collect and charge 19   fees. The bill sets the application fee for a person applying 20   for a new retail marijuana establishment license at $5,000, 21   which shall be divided evenly between the division and the 22   local jurisdiction where the license is proposed to be issued. 23   The bill permits a local jurisdiction to impose operating fees 24   on retail marijuana establishments to which it has granted a 25   license. 26   LICENSE DISCIPLINE. The bill permits the division, on its 27   own motion or complaint, and after investigation, notice, 28   a public hearing, and opportunity to be heard, to suspend 29   or revoke a license if the licensee or any of its agents or 30   employees violate a provision of the bill or a rule promulgated 31   by the division. The division may administer oaths and issue 32   subpoenas to require the presence of persons and the production 33   of documents. The division may impose discipline pursuant to 34   rules and Code chapter 17A. 35   -72-   LSB 1615YH (11) 90   ss/rh 72/ 77  

  H.F. 442   INSPECTION. The bill requires a licensee to keep a complete 1   set of all records necessary to show fully the business 2   transactions of the licensee, all of which shall be open at all 3   times during business hours for the inspection and examination 4   by the division or its duly authorized representatives. 5   The bill requires the licensed premises of a retail 6   marijuana establishment, including any places of storage 7   where retail marijuana or retail marijuana products are 8   stored, cultivated, sold, dispensed, or tested to be subject 9   to inspection by the state or local jurisdictions and their 10   investigators, during all business hours and other times 11   of apparent activity, for the purpose of inspection or 12   investigation. 13   STATE MARIJUANA EXCISE TAX. The bill imposes an excise tax 14   on consumers at the rate of 10 percent of the sale price on 15   each sale of retail marijuana. The tax shall be paid by the 16   consumer to the retail marijuana establishment at the time 17   of sale, and each retail marijuana establishment shall remit 18   the tax collected to the division on the 15th day of each 19   month. Revenues generated by the excise tax shall be deposited 20   in the community reinvestment fund, mental health services 21   and substance use disorder prevention fund, and local public 22   safety fund created in the bill. Moneys in the community 23   reinvestment fund, mental health services and substance use 24   disorder prevention fund, and local public safety fund shall be 25   appropriated by the general assembly for purposes enumerated 26   in the bill.   27   OCCUPATIONAL LICENSING PROTECTIONS. The bill prohibits a 28   professional or occupational licensing board from imposing 29   discipline on a licensee for providing services related to 30   retail marijuana establishments. The bill also prohibits a 31   professional or occupational licensing board from denying a 32   license to a person based on a persons past employment with a 33   retail marijuana establishment. 34   RULEMAKING. The bill requires the alcoholic beverages 35   -73-   LSB 1615YH (11) 90   ss/rh 73/ 77  

  H.F. 442   division of the department of commerce to adopt rules within 1   one year of the effective date of the bill to adopt rules for 2   the implementation of the bill. The rules shall not prohibit 3   the operation of retail marijuana establishments or make 4   the operation of retail marijuana establishments so costly 5   as to be impractical. Required rules include but are not 6   limited to rules relating to applications, fees, licensure, 7   security requirements, labeling requirements, health and 8   safety requirements, restrictions on advertising, cultivation, 9   testing, and penalties. The division shall also develop and 10   regularly update safety materials to be distributed upon the 11   sale of retail marijuana. 12   ACTS PROHIBITED. The bill does not allow the transfer of 13   marijuana to a person under 21 years of age or the possession 14   of marijuana by a person under 21 years of age. 15   PROPERTY RIGHTS. The bill does not require the owner of 16   a property to allow the consumption, cultivation, display, 17   sale, or transfer of marijuana at that property. However, in 18   the case of a residential dwelling, a landlord or property 19   manager shall not prohibit the possession of retail marijuana 20   or medical cannabis or the consumption of retail marijuana 21   or medical cannabis by means other than smoking except under 22   certain circumstances. The bill allows a landlord to take 23   action against a tenant after a warning if the tenants use of 24   marijuana creates an odor that interferes with the peaceful 25   enjoyment of property by other tenants. The bill prohibits 26   a landlord from discriminating against a tenant or applicant 27   on the basis of a past conviction of a marijuana offense that 28   would have been legal under the bill. 29   LAW ENFORCEMENT. The bill prohibits law enforcement 30   agencies from expending resources on the investigation of or 31   arrest for activity related to marijuana that is in violation 32   of federal law if the officer performing the investigation 33   or arrest has reason to believe that the activity complies 34   with the requirements of the bill. The bill also prohibits 35   -74-   LSB 1615YH (11) 90   ss/rh 74/ 77  

  H.F. 442   an agency or political subdivision of the state from taking 1   an adverse action against a person on the sole basis that the 2   person has violated a federal law related to marijuana. 3   SURCHARGE. The bill allows a county that has not prohibited 4   the sale of retail marijuana to impose a 1 percent surcharge 5   on the retail sales price of retail marijuana. The surcharge 6   shall be administered by the department of revenue and funds 7   collected by the department of revenue shall be remitted to 8   the county on a quarterly basis. The bill includes additional 9   provisions regarding the implementation and operation of retail 10   marijuana surcharges. 11   DIVISION III  MEDICAL CANNABIS. The bill changes the name 12   of the medical cannabidiol Act to the medical cannabis Act. 13   The bill allows a health care practitioner to certify a 14   patient for the use of medical cannabis to a patient for 15   any medical condition for which a patients health care 16   practitioner determines the use of medical cannabis could be 17   medically beneficial. The bill requires that any certification 18   made by a health care practitioner for a patient for a 19   debilitating medical condition not explicitly included on 20   the list of debilitating medical conditions shall be made by 21   a health care practitioner pursuant to reasonable medical 22   evidence, in good faith, in the best interest of the patient, 23   without fraudulent intent, and with the same reasonable medical 24   judgment and prudence exercised according to generally accepted 25   medical practice. 26   The bill adds pharmacists to the list of health care 27   practitioners able to certify a patient to receive a medical 28   cannabis registration card. The bill requires a pharmacist to 29   complete a training program designated by the board of pharmacy 30   prior to certifying a patient to receive a medical cannabis 31   registration card. 32   The bill lowers the fee to receive a medical cannabis 33   registration card from $25 to $10 and requires the department 34   of public health to waive the fee for veterans. The bill 35   -75-   LSB 1615YH (11) 90   ss/rh 75/ 77  

  H.F. 442   expands the membership of the medical cannabis board from 8 1   to 10 members and adds one member licensed as a physician 2   assistant and one member licensed as an advanced practice 3   registered nurse. 4   The bill allows a medical cannabis manufacturer to 5   manufacture edible medical cannabis products. The bill 6   prohibits such products from being designed or packaged in 7   such a way as would be likely to appeal to children. The bill 8   removes the cap on the number of medical cannabis manufacturers 9   and dispensaries that may be licensed in this state. The bill 10   requires the department to consider demand for medical cannabis 11   when licensing a medical cannabis manufacturer or dispensary. 12   The bill raises the cap on total tetrahydrocannabinol that 13   a patient may receive in a 90-day period from 4.5 grams to 17 14   grams. 15   The bill requires a medical cannabis dispensary to share 16   information regarding the dispensation of medical cannabis to 17   a patient with the health care practitioner who certified the 18   patient to receive a medical cannabis registration card. The 19   bill allows the department to share information regarding the 20   purchase of medical cannabis by a patient or primary caregiver 21   with the health care practitioner who certified the patient or 22   primary caregiver to receive a medical cannabis registration 23   card. 24   The bill creates standards that a health care practitioner 25   must meet in order to provide telemedicine services to 26   a patient and defines the start of a provider-patient 27   relationship as when a person seeks medical assistance, a 28   health care provider agrees to provide treatment, and the 29   person agrees to receive treatment. The bill allows a valid 30   provider-patient relationship to be formed through an in-person 31   encounter, through consultation with another health care 32   provider, or through telemedicine, but only if the standard of 33   care does not require an in-person encounter. 34   The bill requires the department of health and human 35   -76-   LSB 1615YH (11) 90   ss/rh 76/ 77  

  H.F. 442   services to convene a task force of legal experts to assist 1   the department in ensuring that educational and long-term care 2   facilities that receive federal funding and that allow the use 3   and administration of medical cannabidiol on the grounds of the 4   facilities do not lose eligibility for federal funding. 5   DIVISION IV  MEDICAL CANNABIS  INCOME TAXES. The bill 6   allows individuals and corporations to subtract from net 7   income, to the extent included, business expenses for a medical 8   cannabis manufacturer or medical cannabis dispensary. 9   DIVISION V  MEDICAL CANNABIS  SALES AND USE TAX. The 10   bill exempts sales of medical cannabis products by a medical 11   cannabis manufacturer or a medical cannabis dispensary pursuant 12   to Code chapter 124E from sales tax. 13   DIVISION VI  MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO 14   MEDICAL CANNABIS  CONFORMING CODE CHANGES. This division 15   changes references from medical cannabidiol to medical 16   cannabis throughout the Code. 17   DIVISION VII  EFFECTIVE DATE. The bill takes effect upon 18   enactment, except that the alcoholic beverages division of the 19   department of commerce shall not issue a license to operate a 20   retail marijuana establishment prior to January 1, 2023. 21   DIVISION VIII  CODE EDITOR DIRECTIVE. The bill directs 22   the Code editor to create two subchapters in new Code chapter 23   124F. The first subchapter shall be designated criminal 24   penalties and the second subchapter shall be designated 25   retail marijuana. 26   -77-   LSB 1615YH (11) 90   ss/rh 77/ 77