SF 2397 (LSB 5205SZ (1) 87)

SENATE FILE 2397

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO SF 2301)
(SUCCESSOR TO SSB 3122)

A BILL FOR

An Act relating to the collection of fees and the performance of background investigations under the medical cannabidiol Act, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 124E.7, subsections 7 and 8, Code 2018, are amended to read as follows:
   7.  A medical cannabidiol manufacturer shall not employ a person who is under eighteen years of age or who has been convicted of a disqualifying felony offense. An employee of a medical cannabidiol manufacturer shall be subject to a background investigation conducted by the division of criminal investigation of the department of public safety and a national criminal history background check pursuant to section 124E.19.
   8.  A medical cannabidiol manufacturer owner shall not have been convicted of a disqualifying felony offense and shall be subject to a background investigation conducted by the division of criminal investigation of the department of public safety and a national criminal history background check pursuant to section 124E.19.
    Sec. 2.  Section 124E.9, subsections 7 and 8, Code 2018, are amended to read as follows:
   7.  A medical cannabidiol dispensary shall not employ a person who is under eighteen years of age or who has been convicted of a disqualifying felony offense. An employee of a medical cannabidiol dispensary shall be subject to a background investigation conducted by the division of criminal investigation of the department of public safety and a national criminal history background check pursuant to section 124E.19.
   8.  A medical cannabidiol dispensary owner shall not have been convicted of a disqualifying felony offense and shall be subject to a background investigation conducted by the division of criminal investigation of the department of public safety and a national criminal history background check pursuant to section 124E.19.
    Sec. 3.  Section 124E.10, Code 2018, is amended by striking the section and inserting in lieu thereof the following:
   124E.10  Fees.
   All fees collected by the department under this chapter shall be retained by the department for operation of the medical cannabidiol registration card program and the medical cannabidiol manufacturer and medical cannabidiol dispensary licensing programs. The moneys retained by the department shall be considered repayment receipts as defined in section 8.2 and shall be used for any of the department’s duties under this chapter, including but not limited to the addition of full-time equivalent positions for program services and investigations. Notwithstanding section 8.33, moneys retained by the department pursuant to this section shall not revert to the general fund of the state.
    Sec. 4.  NEW SECTION.  124E.19  Background investigations.
   1.  The division of criminal investigation of the department of public safety shall conduct thorough background investigations for the purposes of licensing medical cannabidiol manufacturers and medical cannabidiol dispensaries under this chapter. The results of any background investigation conducted pursuant to this section shall be presented to the department.
   a.  An applicant for a medical cannabidiol manufacturer license or a medical cannabidiol dispensary license and their owners, investors, and employees shall submit all required information on a form prescribed by the department of public safety.
   b.  The department shall charge an applicant for a medical cannabidiol manufacturer license or a medical cannabidiol dispensary license a fee determined by the department of public safety and adopted by the department by rule to defray the costs associated with background investigations conducted pursuant to the requirements of this section. The fee shall be in addition to any other fees charged by the department. The fee may be retained by the department of public safety and shall be considered repayment receipts as defined in section 8.2.
   2.  The department shall require an applicant for a medical cannabidiol manufacturer license or a medical cannabidiol dispensary license, their owners and investors, and applicants for employment at a medical cannabidiol manufacturer or medical cannabidiol dispensary to submit fingerprints and other required identifying information to the department on a form prescribed by the department of public safety. The department shall submit the fingerprint cards and other identifying information to the division of criminal investigation of the department of public safety for submission to the federal bureau of investigation for the purpose of conducting a national criminal history record check. The department may require employees and contractors involved in carrying out a background investigation to submit fingerprints and other identifying information for the same purpose.
   3.  The department may enter into a chapter 28E agreement with the department of public safety to meet the requirements of this section.
   4.  An applicant for a medical cannabidiol manufacturer license or a medical cannabidiol dispensary license shall submit information and fees required by this section at the time of application.
   5.  The results of background investigations conducted pursuant to this section shall not be considered public records under chapter 22.
    Sec. 5.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the collection of fees and the performance of background investigations under the medical cannabidiol Act (Code chapter 124E).
   The bill provides that, with respect to fees collected by the department of public health pursuant to Code chapter 124E, the department shall use such fees for the operation of the medical cannabidiol registration card program and the medical cannabidiol manufacturer and medical cannabidiol dispensary licensing programs. Any remaining funds are to be used to administer any of the department’s duties under Code chapter 124E, including the addition of full-time equivalent positions for program services and investigations. Funds retained by the department pursuant to the bill are not subject to reversion to the general fund of the state.
   The bill directs the division of criminal investigation of the department of public safety to conduct background investigations of applicants for medical cannabidiol manufacturer and medical cannabidiol dispensary licenses, including employees, owners of, and investors in, any such applicants. The division of criminal investigation of the department of public safety shall prescribe by rule the information that must be submitted as part of such investigations. Applicants must pay a fee, to be determined by the department of public safety and adopted by the department of public health by rule, to the department of public safety to defray the costs of background investigations. The fee must be submitted, along with any required information, at the time of application. In addition to the background investigation, the department of public safety must require applicants, their employees, and their owners and investors to submit fingerprints and other identifying information to the department for submittal to the federal bureau of investigation for the purpose of conducting a national criminal history record check. The department of public safety shall collect fees to offset the costs associated with the background investigations and the criminal history record checks.
   The bill becomes effective upon enactment.