House File 520 H-1162 Amend House File 520 as follows: 1 1. Page 1, after line 22 by inserting: 2 < Sec. ___. Section 124D.2, Code 2017, is amended by 3 striking the section and inserting in lieu thereof the 4 following: 5 124D.2 Definitions. 6 As used in this chapter: 7 1. “Cannabidiol” means a nonpsychoactive 8 cannabidiol found in the plant Cannabis sativa L. 9 or Cannabis indica or any other preparation thereof 10 that is essentially free from plant material, and has 11 a tetrahydrocannabinol level of no more than three 12 percent. 13 2. “Debilitating medical condition” means 14 intractable epilepsy and any other medical condition 15 or its treatment recommended by the university of Iowa 16 carver college of medicine and approved by the general 17 assembly by law. 18 3. “Department” means the department of public 19 health. 20 4. “Health care practitioner” means an individual 21 licensed under chapter 148 to practice medicine 22 and surgery or osteopathic medicine and surgery who 23 provides specialty care for a resident of this state 24 for one or more debilitating medical conditions. 25 5. “Intractable epilepsy” means an epileptic seizure 26 disorder for which standard medical treatment does 27 not prevent or significantly ameliorate recurring, 28 uncontrolled seizures or for which standard medical 29 treatment results in harmful side effects. 30 6. “Medical cannabidiol dispensary” means an entity 31 located in this state and licensed by the department 32 that acquires cannabidiol from a medical cannabidiol 33 manufacturer licensed in this state for the purpose of 34 dispensing cannabidiol in this state pursuant to this 35 -1- HF520.1222 (3) 87 rh/rj 1/ 20 #1.

chapter. 1 7. “Medical cannabidiol manufacturer” means an 2 entity located in this state and licensed by the 3 department to process, package, transport, and supply 4 cannabidiol to a medical cannabidiol dispensary 5 pursuant to the provisions of this chapter. 6 8. “Medical cannabis grower” means an entity located 7 in this state and licensed by the department to grow, 8 cultivate, harvest, and transport cannabis pursuant to 9 the provisions of this chapter. 10 9. “Primary caregiver” means a person, at least 11 eighteen years of age, who has been designated by a 12 patient’s health care practitioner or by a person 13 having custody of a patient, as being necessary to 14 take responsibility for managing the well-being of the 15 patient with respect to the medical use of cannabidiol 16 pursuant to the provisions of this chapter. 17 Sec. ___. Section 124D.3, Code 2017, is amended to 18 read as follows: 19 124D.3 Neurologist Health care practitioner 20 recommendation —— medical use of cannabidiol. 21 A neurologist health care practitioner who 22 has examined and treated a patient suffering from 23 intractable epilepsy a debilitating medical condition 24 may provide but has no duty to provide a written 25 recommendation for the patient’s medical use of 26 cannabidiol to treat or alleviate symptoms of 27 intractable epilepsy the debilitating medical condition 28 if no other satisfactory alternative treatment 29 options exist for the patient and all of the following 30 conditions apply: 31 1. The patient is a permanent resident of this 32 state. 33 2. A neurologist health care practitioner has 34 treated the patient for intractable epilepsy for at 35 -2- HF520.1222 (3) 87 rh/rj 2/ 20

least six months a debilitating medical condition . For 1 purposes of this treatment period, and notwithstanding 2 section 124D.2, subsection 4 , treatment provided by 3 a neurologist health care practitioner may include 4 treatment by an out-of-state licensed neurologist 5 health care practitioner in good standing. 6 3. The neurologist has tried alternative treatment 7 options that have not alleviated the patient’s 8 symptoms. 9 4. 3. The neurologist health care practitioner 10 determines the risks of recommending the medical use of 11 cannabidiol are reasonable in light of the potential 12 benefit for the patient. 13 5. 4. The neurologist health care practitioner 14 maintains a patient treatment plan. 15 Sec. ___. Section 124D.4, subsection 1, paragraph 16 c, Code 2017, is amended to read as follows: 17 c. Requests the patient’s neurologist health care 18 practitioner to submit a written recommendation to 19 the department signed by the neurologist health care 20 practitioner that the patient may benefit from the 21 medical use of cannabidiol pursuant to section 124D.3 . 22 Sec. ___. Section 124D.4, subsection 1, paragraph 23 d, subparagraph (3), Code 2017, is amended to read as 24 follows: 25 (3) Full name, address, and telephone number of the 26 patient’s neurologist health care practitioner . 27 Sec. ___. Section 124D.4, subsection 1, Code 2017, 28 is amended by adding the following new paragraph: 29 NEW PARAGRAPH . e. Submits a cannabidiol 30 registration card fee of one hundred dollars to the 31 department. If the patient attests to receiving social 32 security disability benefits, supplemental security 33 insurance benefits, or being enrolled in the medical 34 assistance program, the fee shall be twenty-five 35 -3- HF520.1222 (3) 87 rh/rj 3/ 20

dollars. 1 Sec. ___. Section 124D.4, subsection 3, paragraph 2 b, Code 2017, is amended to read as follows: 3 b. Requests a patient’s neurologist health care 4 practitioner to submit a written recommendation to 5 the department signed by the neurologist health care 6 practitioner that a patient in the primary caregiver’s 7 care may benefit from the medical use of cannabidiol 8 pursuant to section 124D.3 . 9 Sec. ___. Section 124D.4, subsection 3, paragraph 10 c, subparagraph (4), Code 2017, is amended to read as 11 follows: 12 (4) Full name, address, and telephone number of the 13 patient’s neurologist health care practitioner . 14 Sec. ___. Section 124D.5, subsection 1, paragraph 15 b, subparagraph (1), Code 2017, is amended by adding 16 the following new subparagraph division: 17 NEW SUBPARAGRAPH DIVISION . (c) To authorized 18 employees of a medical cannabidiol dispensary, but only 19 for the purpose of verifying that a person is lawfully 20 in possession of a cannabidiol registration card issued 21 pursuant to this chapter. 22 Sec. ___. Section 124D.5, subsection 2, Code 2017, 23 is amended by striking the subsection and inserting in 24 lieu thereof the following: 25 2. The department shall adopt rules pursuant to 26 chapter 17A to administer this chapter which shall 27 include but not be limited to rules to do all of the 28 following: 29 a. Govern the manner in which the department shall 30 consider applications for new and renewal cannabidiol 31 registration cards. 32 b. Establish requirements for the suspension 33 and revocation of cannabidiol registration cards 34 and medical cannabis grower, medical cannabidiol 35 -4- HF520.1222 (3) 87 rh/rj 4/ 20

dispensary, and medical cannabidiol manufacturer 1 licenses. 2 c. Establish requirements for the licensure 3 of medical cannabis growers, medical cannabidiol 4 manufacturers, and medical cannabidiol dispensaries 5 and set forth procedures for medical cannabis growers, 6 medical cannabidiol manufacturers, and medical 7 cannabidiol dispensaries to obtain licenses. 8 d. Develop a dispensing system for medical 9 cannabidiol dispensaries to dispense cannabidiol within 10 this state that provides for all of the following: 11 (1) Medical cannabidiol dispensaries within this 12 state housed on secured grounds. 13 (2) The dispensing of cannabidiol to patients and 14 their primary caregivers in person to occur at medical 15 cannabidiol dispensary locations designated by the 16 department. 17 e. Establish and collect annual fees from medical 18 cannabis growers, medical cannabidiol manufacturers, 19 and medical cannabidiol dispensaries to cover the costs 20 associated with regulating and inspecting medical 21 cannabis growers, medical cannabidiol manufacturers, 22 and medical cannabis dispensaries. 23 f. Specify and implement procedures that address 24 public safety including security procedures and product 25 quality including measures to ensure contaminant-free 26 cultivation of cannabis, safety in the medical use of 27 cannabidiol, and appropriate labeling of cannabidiol by 28 medical cannabidiol dispensaries. 29 g. Establish and implement a real-time, statewide 30 cannabidiol registry management sale tracking system 31 that is available to medical cannabidiol dispensaries 32 on a twenty-four-hour-day, seven-day-a-week basis for 33 the purpose of verifying that a person is lawfully in 34 possession of a cannabidiol registration card issued 35 -5- HF520.1222 (3) 87 rh/rj 5/ 20

pursuant to this chapter and for tracking the date of 1 the sale and quantity of cannabidiol purchased by or 2 dispensed to a patient or a primary caregiver. 3 h. Establish and implement a real-time global 4 positioning, transportation, and delivery tracking 5 system to track cannabis from cultivation by a medical 6 cannabis grower through production of cannabidiol 7 by a cannabidiol manufacturer through dispensing of 8 cannabidiol at a cannabidiol dispensary. 9 Sec. ___. Section 124D.6, subsections 1 and 2, Code 10 2017, are amended to read as follows: 11 1. a. A recommendation for the possession or use 12 of cannabidiol as authorized by this chapter shall 13 be provided exclusively by a neurologist health care 14 practitioner for a patient who has been diagnosed with 15 intractable epilepsy a debilitating medical condition . 16 b. Cannabidiol provided exclusively pursuant to the 17 recommendation of a neurologist shall be obtained from 18 an out-of-state source and health care practitioner 19 shall only be recommended for oral or transdermal 20 administration. 21 c. A neurologist health care practitioner shall 22 be the sole authorized recommender as part of 23 the treatment plan by the neurologist health care 24 practitioner of a patient diagnosed with intractable 25 epilepsy a debilitating medical condition . A 26 neurologist health care practitioner shall have the 27 sole authority to recommend the use or amount of 28 cannabidiol, if any, in the treatment plan of a patient 29 diagnosed with intractable epilepsy a debilitating 30 medical condition . 31 2. A neurologist health care practitioner , 32 including any authorized agent thereof, shall not be 33 subject to prosecution for the unlawful recommendation, 34 possession, or administration of marijuana under the 35 -6- HF520.1222 (3) 87 rh/rj 6/ 20

laws of this state for activities arising directly out 1 of or directly related to the recommendation or use of 2 cannabidiol in the treatment of a patient diagnosed 3 with intractable epilepsy a debilitating medical 4 condition . 5 Sec. ___. Section 124D.6, Code 2017, is amended by 6 adding the following new subsections: 7 NEW SUBSECTION . 2A. A medical cannabis grower, 8 including any authorized agent or employee thereof, 9 shall not be subject to prosecution for possessing, 10 growing, cultivating, or harvesting cannabis pursuant 11 to this chapter. 12 NEW SUBSECTION . 2B. A medical cannabidiol 13 manufacturer, including any authorized agent or 14 employee thereof, shall not be subject to prosecution 15 for possessing, manufacturing, processing, packaging, 16 transporting, or supplying cannabidiol pursuant to this 17 chapter. 18 NEW SUBSECTION . 2C. A medical cannabidiol 19 dispensary, including any authorized agent or 20 employee thereof, shall not be subject to prosecution 21 for possessing, packaging, or dispensing medical 22 cannabidiol pursuant to this chapter. 23 Sec. ___. Section 124D.6, subsection 3, paragraphs 24 a and b, Code 2017, are amended to read as follows: 25 a. In a prosecution for the unlawful possession 26 of marijuana under the laws of this state, including 27 but not limited to chapters 124 and 453B , it is an 28 affirmative and complete defense to the prosecution 29 that the patient has been diagnosed with intractable 30 epilepsy a debilitating medical condition , used or 31 possessed cannabidiol pursuant to a recommendation by 32 a neurologist health care practitioner as authorized 33 under this chapter , and, for a patient eighteen 34 years of age or older, is in possession of a valid 35 -7- HF520.1222 (3) 87 rh/rj 7/ 20

cannabidiol registration card. 1 b. In a prosecution for the unlawful possession 2 of marijuana under the laws of this state, including 3 but not limited to chapters 124 and 453B , it is an 4 affirmative and complete defense to the prosecution 5 that the person possessed cannabidiol because the 6 person is a primary caregiver of a patient who has been 7 diagnosed with intractable epilepsy a debilitating 8 medical condition and is in possession of a valid 9 cannabidiol registration card, and where the primary 10 caregiver’s possession of the cannabidiol is on behalf 11 of the patient and for the patient’s use only as 12 authorized under this chapter . 13 Sec. ___. NEW SECTION . 124D.9 Medical cannabis 14 grower licensure. 15 1. The department shall license medical cannabis 16 growers to grow, cultivate, harvest, and transport 17 cannabis within this state consistent with the 18 provisions of this chapter. 19 2. The department shall consider the following 20 factors in determining whether to license a medical 21 cannabis grower: 22 a. The technical expertise of the medical cannabis 23 grower in growing, breeding, cultivating, and 24 harvesting cannabis for medical use. 25 b. The qualifications of the medical cannabis 26 grower’s employees. 27 c. The long-term financial stability of the medical 28 cannabis grower. 29 d. The ability to provide appropriate security 30 measures on the premises of the medical cannabis 31 grower. 32 e. Whether the medical cannabis grower has 33 demonstrated an ability to meet certain cannabis 34 production needs for medical use regarding the range 35 -8- HF520.1222 (3) 87 rh/rj 8/ 20

of recommended dosages for each debilitating medical 1 condition, the range of chemical compositions of 2 any plant of the genus cannabis that will likely be 3 medically beneficial for each of the debilitating 4 medical conditions, and the form of the cannabis 5 grown for medical use in the manner determined by the 6 department pursuant to rule. 7 3. Each entity submitting an application for 8 licensure as a medical cannabis grower shall pay a 9 nonrefundable application fee of five thousand dollars 10 to the department. 11 Sec. ___. NEW SECTION . 124D.10 Medical cannabis 12 growers. 13 1. The operating documents of a medical cannabis 14 grower shall include all of the following: 15 a. Procedures for the oversight of the medical 16 cannabis grower and procedures to ensure accurate 17 recordkeeping. 18 b. Procedures for the implementation of appropriate 19 security measures to deter and prevent the theft 20 of cannabis grown for medical use and unauthorized 21 entrance into areas containing cannabis grown for 22 medical use. 23 2. A medical cannabis grower shall implement 24 security requirements, including requirements for 25 protection of each location by a fully operational 26 security alarm system, facility access controls, 27 perimeter intrusion detection systems, and a personnel 28 identification system. 29 3. A medical cannabis grower shall install and 30 operate on a twenty-four-hour basis a real-time audio 31 and video monitoring system on the grounds and in 32 all buildings of the medical cannabis grower. The 33 information contained in the monitoring system is 34 confidential and shall not be disclosed except to 35 -9- HF520.1222 (3) 87 rh/rj 9/ 20

authorized employees or agents of the department as 1 necessary to perform the duties of the department 2 under this chapter or pursuant to court order. Such 3 information shall be stored and retained by the medical 4 cannabis grower for a minimum of six months from the 5 date such audio and video information is created. 6 4. A medical cannabis grower shall not share office 7 space with, refer patients to, or have any financial 8 relationship with a health care practitioner. 9 5. The location of a medical cannabis grower shall 10 be physically separate and off-site from the location 11 of a medical cannabidiol manufacturer and a medical 12 cannabidiol dispensary. 13 6. A medical cannabis grower shall not permit any 14 person to consume cannabis grown for medical use on the 15 property of the medical cannabis grower. 16 7. A medical cannabis grower is subject to 17 reasonable inspection by the department. 18 8. a. A medical cannabis grower shall not employ a 19 person who is under eighteen years of age or who has 20 been convicted of any felony offense. 21 b. An employee of a medical cannabis grower shall 22 be subject to a background investigation conducted 23 by the division of criminal investigation of the 24 department of public safety and a national criminal 25 history background check. 26 c. An employee of a medical cannabis grower shall 27 be subject to periodic drug testing as determined by 28 the department pursuant to rule. 29 9. A medical cannabis grower shall not operate in 30 any location within one thousand feet of a public or 31 private school existing before the date of the medical 32 cannabis grower’s licensure by the department. 33 10. A medical cannabis grower shall not engage 34 in any advertising relating to the medical cannabis 35 -10- HF520.1222 (3) 87 rh/rj 10/ 20

grower. 1 11. a. A medical cannabis grower shall provide 2 a reliable and ongoing supply of cannabis grown for 3 medical use to medical cannabidiol manufacturers 4 pursuant to this chapter. 5 b. All growing, cultivating, and harvesting of 6 medical cannabis shall take place in an enclosed, 7 locked facility at a physical address provided to the 8 department during the licensure process. 9 c. A medical cannabis grower shall supply a 10 reliable and ongoing amount of cannabidiol to treat 11 every debilitating medical condition listed in this 12 chapter. 13 12. A medical cannabis grower shall pay an annual 14 fee determined by the department equal to the cost of 15 regulating and inspecting the grower during that year. 16 Sec. ___. NEW SECTION . 124D.11 Medical cannabidiol 17 manufacturer licensure. 18 1. The department shall license medical cannabidiol 19 manufacturers to process, package, transport, and 20 supply cannabidiol within this state consistent with 21 the provisions of this chapter. 22 2. The department shall consider the following 23 factors in determining whether to license a medical 24 cannabidiol manufacturer: 25 a. The technical expertise of the medical 26 cannabidiol manufacturer in processing, packaging, 27 transporting, and supplying cannabidiol. 28 b. The qualifications of the medical cannabidiol 29 manufacturer’s employees. 30 c. The long-term financial stability of the medical 31 cannabidiol manufacturer. 32 d. The ability to provide appropriate security 33 measures on the premises of the medical cannabidiol 34 manufacturer. 35 -11- HF520.1222 (3) 87 rh/rj 11/ 20

3. The department shall require each medical 1 cannabidiol manufacturer to contract with the state 2 hygienic laboratory at the university of Iowa in Iowa 3 City to test the cannabidiol produced by the medical 4 cannabidiol manufacturer as to content, contamination, 5 and consistency. The department shall require the 6 state hygienic laboratory to report testing results 7 to the medical cannabidiol manufacturer in a manner 8 determined by the department pursuant to rule. 9 4. Each entity submitting an application for 10 licensure as a medical cannabidiol manufacturer shall 11 pay a nonrefundable application fee of five thousand 12 dollars to the department. 13 Sec. ___. NEW SECTION . 124D.12 Medical cannabidiol 14 manufacturers. 15 1. A medical cannabidiol manufacturer shall pay the 16 cost of all state hygienic laboratory testing. 17 2. The operating documents of a medical cannabidiol 18 manufacturer shall include all of the following: 19 a. Procedures for the oversight of the medical 20 cannabidiol manufacturer and procedures to ensure 21 accurate recordkeeping. 22 b. Procedures for the implementation of appropriate 23 security measures to deter and prevent the theft of 24 cannabidiol and unauthorized entrance into areas 25 containing cannabidiol. 26 3. A medical cannabidiol manufacturer shall 27 implement security requirements, including requirements 28 for protection of each location by a fully operational 29 security alarm system, facility access controls, 30 perimeter intrusion detection systems, and a personnel 31 identification system. 32 4. A medical cannabidiol manufacturer shall install 33 and operate on a twenty-four-hour basis a real-time 34 audio and video monitoring system on the grounds and in 35 -12- HF520.1222 (3) 87 rh/rj 12/ 20

all buildings of the medical cannabidiol manufacturer. 1 The information contained in the monitoring system 2 is confidential and shall not be disclosed except to 3 authorized employees or agents of the department as 4 necessary to perform the duties of the department 5 under this chapter or pursuant to court order. Such 6 information shall be stored and retained by the medical 7 cannabidiol manufacturer for a minimum of six months 8 from the date such audio and video information is 9 created. 10 5. A medical cannabidiol manufacturer shall not 11 share office space with, refer patients to, or have any 12 financial relationship with a health care practitioner. 13 6. The location of a medical cannabidiol 14 manufacturer shall be physically separate and off-site 15 from the location of a medical cannabis grower and a 16 medical cannabidiol dispensary. A medical cannabidiol 17 manufacturer shall not permit any person to consume 18 cannabidiol on the property of the medical cannabidiol 19 manufacturer. A medical cannabidiol manufacturer is 20 subject to reasonable inspection by the department. 21 a. A medical cannabidiol manufacturer shall not 22 employ a person who is under twenty-one years of age or 23 who has been convicted of any felony offense. 24 b. An employee of a medical cannabidiol 25 manufacturer shall be subject to a background 26 investigation conducted by the division of criminal 27 investigation of the department of public safety and a 28 national criminal history background check. 29 c. An employee of a medical cannabidiol 30 manufacturer shall be subject to periodic drug testing 31 as determined by the department pursuant to rule. 32 7. A medical cannabidiol manufacturer shall not 33 engage in any advertising relating to the medical 34 cannabidiol manufacturer. 35 -13- HF520.1222 (3) 87 rh/rj 13/ 20

8. a. All processing and packaging of cannabidiol 1 shall take place in an enclosed, locked facility at a 2 physical address provided to the department during the 3 licensure process. 4 b. A medical cannabidiol manufacturer shall supply 5 a reliable and ongoing amount of cannabidiol oil to 6 treat every debilitating medical condition listed in 7 this chapter. 8 9. A medical cannabidiol manufacturer shall pay 9 an annual fee determined by the department equal to 10 the cost of regulating and inspecting the medical 11 cannabidiol manufacturer during that year. 12 Sec. ___. NEW SECTION . 124D.13 Medical cannabidiol 13 dispensary licensure. 14 1. a. The department shall license medical 15 cannabidiol dispensaries to dispense cannabidiol for 16 medical use within this state consistent with the 17 provisions of this chapter. 18 b. Information submitted during the application 19 process shall be confidential until the medical 20 cannabidiol dispensary is licensed by the department 21 unless otherwise protected from disclosure under state 22 or federal law. 23 2. The department shall consider the following 24 factors in determining whether to license a medical 25 cannabidiol dispensary: 26 a. The technical expertise of the medical 27 cannabidiol dispensary in packaging and dispensing 28 cannabidiol for medical use. 29 b. The qualifications of the medical cannabidiol 30 dispensary’s employees. 31 c. The long-term financial stability of the medical 32 cannabidiol dispensary. 33 d. The ability to provide appropriate security 34 measures on the premises of the medical cannabidiol 35 -14- HF520.1222 (3) 87 rh/rj 14/ 20

dispensary. 1 e. The medical cannabidiol dispensary’s projection 2 and ongoing assessment of fees for the purchase or 3 dispensing of medical cannabidiol for patients with 4 debilitating medical conditions. 5 3. Each entity submitting an application for 6 licensure as a medical cannabidiol dispensary shall 7 pay a nonrefundable application fee of five thousand 8 dollars to the department. 9 4. A medical cannabidiol dispensary shall pay 10 an annual fee determined by the department equal to 11 the cost of regulating and inspecting the medical 12 cannabidiol dispensary during that year. 13 Sec. ___. NEW SECTION . 124D.14 Medical cannabidiol 14 dispensaries. 15 1. a. The medical cannabidiol dispensaries shall 16 be located throughout the state based on geographical 17 need for patient access. 18 b. A medical cannabidiol dispensary may dispense 19 cannabidiol for medical use pursuant to the provisions 20 of this chapter but shall only dispense cannabidiol for 21 medical use in oil form. 22 2. The operating documents of a medical cannabidiol 23 dispensary shall include all of the following: 24 a. Procedures for the oversight of the medical 25 cannabidiol dispensary and procedures to ensure 26 accurate recordkeeping. 27 b. Procedures for the implementation of appropriate 28 security measures to deter and prevent the theft of 29 cannabidiol grown for medical use and unauthorized 30 entrance into areas containing cannabidiol grown for 31 medical use. 32 3. A medical cannabidiol dispensary shall implement 33 security requirements, including requirements for 34 protection by a fully operational security alarm 35 -15- HF520.1222 (3) 87 rh/rj 15/ 20

system, facility access controls, perimeter intrusion 1 detection systems, and a personnel identification 2 system. 3 4. A medical cannabidiol dispensary shall install 4 and operate on a twenty-four-hour basis a real-time 5 audio and video monitoring system on the grounds and in 6 all buildings of the medical cannabidiol dispensary. 7 The information contained in the monitoring system 8 is confidential and shall not be disclosed except to 9 authorized employees or agents of the department as 10 necessary to perform the duties of the department 11 or pursuant to court order. Such information shall 12 be stored and retained by the medical cannabidiol 13 dispensary for a minimum of six months from the date 14 the audio and video information is created. 15 5. A medical cannabidiol dispensary shall not share 16 office space with, refer patients to, or have any 17 financial relationship with a health care practitioner. 18 6. The location of a medical cannabidiol dispensary 19 shall be physically separate and off-site from the 20 location of a medical cannabis grower and a medical 21 cannabidiol manufacturer. 22 7. A medical cannabidiol dispensary shall not 23 permit any person to consume cannabidiol grown for 24 medical use on the property of the medical cannabidiol 25 dispensary. 26 8. A medical cannabidiol dispensary is subject to 27 reasonable inspection by the department. 28 9. a. A medical cannabidiol dispensary shall not 29 employ a person who is under eighteen years of age 30 or who has been convicted of a disqualifying felony 31 offense. 32 b. An employee of a medical cannabidiol dispensary 33 shall be subject to a background investigation 34 conducted by the division of criminal investigation of 35 -16- HF520.1222 (3) 87 rh/rj 16/ 20

the department of public safety and a national criminal 1 history background check. 2 c. An employee of a medical cannabidiol dispensary 3 shall be subject to periodic drug testing as determined 4 by the department pursuant to rule. 5 10. A medical cannabidiol dispensary shall not 6 operate in any location within one thousand feet of a 7 public or private school existing before the date of 8 the medical cannabidiol dispensary’s licensure by the 9 department. 10 11. A medical cannabidiol dispensary shall not 11 engage in any advertising relating to the medical 12 cannabidiol dispensary. 13 12. Prior to dispensing of any cannabidiol for 14 medical use in oil form, a medical cannabidiol 15 dispensary shall do all of the following: 16 a. Verify that the medical cannabidiol dispensary 17 has received a valid cannabidiol registration card 18 from a patient or a patient’s primary caregiver, if 19 applicable. 20 b. Assign a tracking number to any cannabidiol for 21 medical use dispensed from the medical cannabidiol 22 dispensary. 23 13. A medical cannabidiol dispensary shall employ a 24 pharmacist licensed pursuant to chapter 155A. 25 Sec. ___. NEW SECTION . 124D.15 Fees. 26 Cannabidiol registration card fees and medical 27 cannabis grower and medical cannabidiol manufacturer 28 and medical cannabidiol dispensary application and 29 annual fees collected by the department pursuant to 30 this chapter shall be retained by the department, shall 31 be considered repayment receipts as defined in section 32 8.2 , and shall be used for the purpose of regulating 33 medical cannabis growers, medical cannabidiol 34 manufacturers, and medical cannabidiol dispensaries and 35 -17- HF520.1222 (3) 87 rh/rj 17/ 20

for other expenses necessary for the administration of 1 this chapter. Notwithstanding section 8.33, moneys 2 that remain unencumbered or unobligated at the end of 3 the fiscal year shall not revert to the general fund 4 of the state. 5 Sec. ___. NEW SECTION . 124D.16 Reciprocity. 6 A valid cannabidiol registration card, or its 7 equivalent, issued under the laws of another state that 8 allows an out-of-state patient to purchase, possess, 9 and use cannabidiol for medical use in the jurisdiction 10 of issuance shall have the same force and effect as 11 a valid cannabidiol registration card issued pursuant 12 to this chapter and allows an out-of-state patient in 13 this state to purchase cannabidiol for medical use from 14 a medical cannabidiol dispensary in this state and to 15 possess and use the cannabidiol for medical use in this 16 state. 17 Sec. ___. NEW SECTION . 124D.17 Use of cannabidiol 18 —— smoking and vaping prohibited. 19 A patient shall not consume cannabidiol possessed or 20 used as authorized by this chapter by smoking or vaping 21 cannabidiol. 22 Sec. ___. NEW SECTION . 124D.18 Penalties. 23 1. A person who knowingly or intentionally 24 possesses or uses cannabidiol in violation of the 25 requirements of this chapter is subject to the 26 penalties provided under chapters 124 and 453B. 27 2. A medical cannabis grower, medical cannabidiol 28 manufacturer, or medical cannabidiol dispensary shall 29 be assessed a civil penalty of up to one thousand 30 dollars per violation for any violation of this chapter 31 in addition to any other applicable penalties. 32 3. A health care practitioner who makes what the 33 health care practitioner knows to be a false statement 34 of material fact on a written recommendation provided 35 -18- HF520.1222 (3) 87 rh/rj 18/ 20

to a patient pursuant to section 124D.3 or who submits 1 what the person knows to be any materially falsified 2 or forged documentation in connection with such a 3 recommendation commits a class “C” felony. 4 4. A patient or primary caregiver who makes what 5 the person knows to be a false statement of material 6 fact on a cannabidiol registration card application 7 submitted pursuant to section 124D.4 or who submits 8 what the person knows to be any materially falsified 9 or forged documentation in connection with such an 10 application commits a class “C” felony. 11 Sec. ___. REPORT —— RECOMMENDATION —— ACTION BY 12 GENERAL ASSEMBLY. 13 1. The university of Iowa carver college of 14 medicine and college of pharmacy shall, on or before 15 July 1 of each year, beginning July 1, 2018, submit a 16 report detailing the scientific literature, studies, 17 and clinical trials regarding the medical use of 18 cannabidiol to the department of public health and the 19 general assembly. The report may recommend additional 20 debilitating medical conditions that qualify for the 21 medical use of cannabidiol and shall include a range 22 of recommended dosages for each debilitating medical 23 condition and the range of chemical compositions of 24 any plant of the genus Cannabis that will likely be 25 medically beneficial for each of the debilitating 26 medical conditions. 27 2. The general assembly is requested to review any 28 additional debilitating medical conditions recommended 29 and submitted to the general assembly pursuant to 30 subsection 1 during the following regular session 31 of the general assembly and to approve by law any 32 additional debilitating medical conditions during that 33 regular session. 34 Sec. 24. REPEAL. Section 124D.7, Code 2017, is 35 -19- HF520.1222 (3) 87 rh/rj 19/ 20