H-1452

   Amend  the amendment, H-1448, to Senate File 516, as amended, passed, and reprinted by the Senate, as follows:
   1.  By striking page 1, line 1, through page 25, line 29, and inserting: 
   <Amend Senate File 516, as amended, passed, and reprinted by the Senate, as follows:
   1.  By striking everything after the enacting clause and inserting: 
<DIVISION I
STANDING APPROPRIATIONS AND RELATED MATTERS

   Section 1.  BUDGET PROCESS FOR FISCAL YEAR 2018-2019.
   1.  For the budget process applicable to the fiscal year beginning July 1, 2018, on or before October 1, 2017, in lieu of the information specified in section 8.23, subsection 1, unnumbered paragraph 1, and section 8.23, subsection 1, paragraph “a”, all departments and establishments of the government shall transmit to the director of the department of management, on blanks to be furnished by the director, estimates of their expenditure requirements, including every proposed expenditure, for the ensuing fiscal year, together with supporting data and explanations as called for by the director of the department of management after consultation with the legislative services agency.
   2.  The estimates of expenditure requirements shall be in a form specified by the director of the department of management, and the expenditure requirements shall include all proposed expenditures and shall be prioritized by program or the results to be achieved. The estimates shall be accompanied by performance measures for evaluating the effectiveness of the programs or results.
   Sec. 2.  BUDGET PROCESS FOR FISCAL YEAR 2019-2020.
   1.  For the budget process applicable to the fiscal year beginning July 1, 2019, on or before October 1, 2018, in lieu of the information specified in section 8.23, subsection 1, unnumbered paragraph 1, and section 8.23, subsection 1, paragraph “a”, all departments and establishments of the government shall transmit to the director of the department of management, on blanks to be furnished by the director, estimates of their expenditure requirements, including every proposed expenditure, for the ensuing fiscal year, together with supporting data and explanations as called for by the director of the department of management after consultation with the legislative services agency.
   2.  The estimates of expenditure requirements shall be in a form specified by the director of the department of management, and the expenditure requirements shall include all proposed expenditures and shall be prioritized by program or the results to be achieved. The estimates shall be accompanied by performance measures for evaluating the effectiveness of the programs or results.
   Sec. 3.  LIMITATIONS OF STANDING APPROPRIATIONS —— FY 2017-2018.  Notwithstanding the standing appropriations in the following designated sections for the fiscal year beginning July 1, 2017, and ending June 30, 2018, the amounts appropriated from the general fund of the state pursuant to these sections for the following designated purposes shall not exceed the following amounts:
   1.  For payment of claims for nonpublic school transportation under section 285.2:
   ...................................................................... $  8,197,091

   If total approved claims for reimbursement for nonpublic school pupil transportation exceed the amount appropriated in accordance with this subsection, the department of education shall prorate the amount of each approved claim.
   2.  For distribution for the tribal council of the Sac and Fox Indian settlement for educating American Indian children under section 256.30:
   ...................................................................... $     95,750
   Sec. 4.  LIMITATIONS OF STANDING APPROPRIATIONS —— FY 2018-2019.  Notwithstanding the standing appropriations in the following designated sections for the fiscal year beginning July 1, 2018, and ending June 30, 2019, the amounts appropriated from the general fund of the state pursuant to these sections for the following designated purposes shall not exceed the following amounts:
   1.  For payment of claims for nonpublic school transportation under section 285.2:
   ...................................................................... $  8,197,091

   If total approved claims for reimbursement for nonpublic school pupil transportation exceed the amount appropriated in accordance with this subsection, the department of education shall prorate the amount of each approved claim.
   2.  For distribution for the tribal council of the Sac and Fox Indian settlement for educating American Indian children under section 256.30:
   ...................................................................... $     95,750
   Sec. 5.  GENERAL ASSEMBLY.
   1.  The appropriations made pursuant to section 2.12 for the expenses of the general assembly and legislative agencies for the fiscal year beginning July 1, 2017, and ending June 30, 2018, are reduced by the following amount:
   ...................................................................... $    400,000

   2.  The budgeted amounts for the general assembly and legislative agencies for the fiscal year beginning July 1, 2017, may be adjusted to reflect the unexpended budgeted amounts from the previous fiscal year.
   3.  Annual membership dues for organizations, associations, and conferences shall not be paid from moneys appropriated pursuant to section 2.12.
   4.  Costs for out-of-state travel and per diems for out-of-state travel shall not be paid from moneys appropriated pursuant to section 2.12.
   Sec. 6.  INSTRUCTIONAL SUPPORT STATE AID —— FY 2017-2018.  In lieu of the appropriation provided in section 257.20, subsection 2, the appropriation for the fiscal year beginning July 1, 2017, and ending June 30, 2018, for paying instructional support state aid under section 257.20 for such fiscal years is zero.
   Sec. 7.  SPECIAL FUNDS —— SALARY ADJUSTMENTS —— FY 2017-2018 —— FY 2018-2019.  For the fiscal year beginning July 1, 2017, and ending June 30, 2018, and for the fiscal year beginning July 1, 2018, and ending June 30, 2019, salary adjustments may be funded using departmental revolving, trust, or special funds for which the general assembly has established an operating budget, provided that doing so does not exceed the operating budget established by the general assembly.
   Sec. 8.  OPERATIONAL APPROPRIATIONS —— REVERSION —— FY 2016-2017.  Notwithstanding section 8.62, at the close of the fiscal year beginning July 1, 2016, and ending June 30, 2017, any balance of an operational appropriation that remains unexpended or unencumbered shall not be encumbered or deposited in the cash reserve fund as provided in section 8.62, but shall instead revert to the general fund of the state at the close of the fiscal year as provided in section 8.33.
   Sec. 9.  SPECIAL FUNDS —— SALARY ADJUSTMENTS —— UNAPPROPRIATED MONEYS —— FY 2017-2018 —— FY 2018-2019.  For the fiscal year beginning July 1, 2017, and ending June 30, 2018, and for the fiscal year beginning July 1, 2018, and ending June 30, 2019, salary adjustments otherwise provided may be funded as determined by the department of management using unappropriated moneys remaining in the department of commerce revolving fund, the gaming enforcement revolving fund, the gaming regulatory revolving fund, the primary road fund, the road use tax fund, the fish and game protection fund, the Iowa public employees’ retirement fund, and in other departmental revolving, trust, or special funds for which the general assembly has not made an operating budget appropriation.
   Sec. 10.  SALARY MODEL ADMINISTRATOR.  The salary model administrator shall work in conjunction with the legislative services agency to maintain the state’s salary model used for analyzing, comparing, and projecting state employee salary and benefit information, including information relating to employees of the state board of regents. The department of revenue, the department of administrative services, the five institutions under the jurisdiction of the state board of regents, the judicial district departments of correctional services, and the state department of transportation shall provide salary data to the department of management and the legislative services agency to operate the state’s salary model. The format and frequency of provision of the salary data shall be determined by the department of management and the legislative services agency. The information shall be used in collective bargaining processes under chapter 20 and in calculating the funding needs contained within the annual salary adjustment legislation. A state employee organization as defined in section 20.3, subsection 4, may request information produced by the model, but the information provided shall not contain information attributable to individual employees.
   Sec. 11.  Section 257.35, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  11A.  Notwithstanding subsection 1, and in addition to the reduction applicable pursuant to subsection 2, the state aid for area education agencies and the portion of the combined district cost calculated for these agencies for the fiscal year beginning July 1, 2017, and ending June 30, 2018, shall be reduced by the department of management by fifteen million dollars. The reduction for each area education agency shall be prorated based on the reduction that the agency received in the fiscal year beginning July 1, 2003.
   Sec. 12.  EFFECTIVE UPON ENACTMENT.  The following provision or provisions of this division of this Act, being deemed of immediate importance, take effect upon enactment:
   1.  The section of this division of this Act reverting to the general fund any unexpended or unencumbered moneys from operational appropriations.
DIVISION II
MISCELLANEOUS PROVISIONS

   Sec. 13.  VICTIM ASSISTANCE GRANTS.  There is appropriated from the general fund of the state to the department of justice for the fiscal year beginning July 1, 2017, and ending June 30, 2018, the following amount, or so much thereof as is necessary, to be used for the purposes designated:
   For victim assistance grants:
   ...................................................................... $    150,000
   Sec. 14.  Section 2.43, unnumbered paragraph 1, Code 2017, is amended to read as follows:
   The legislative council in cooperation with the officers of the senate and house shall have the duty and responsibility for preparing for each session of the general assembly. Pursuant to such duty and responsibility, the legislative council shall assign the use of areas in the state capitol except for the areas used by the governor as of January 1, 1986, and by the courts as of July 1, 2003, and, in consultation with the director of the department of administrative services and the capitol planning commission, may assign areas in other state office buildings for use of the general assembly or legislative agencies.  The legislative council shall provide the courts with use of space in the state capitol for ceremonial purposes. The legislative council may authorize the renovation, remodeling and preparation of the physical facilities used or to be used by the general assembly or legislative agencies subject to the jurisdiction of the legislative council and award contracts pursuant to such authority to carry out such preparation. The legislative council may purchase supplies and equipment deemed necessary for the proper functioning of the legislative branch of government.
   Sec. 15.  Section 8A.322, subsection 2, Code 2017, is amended to read as follows:
   2.  Except for buildings and grounds described in section 216B.3, subsection 6; section 2.43, unnumbered paragraph 1; and any buildings under the custody and control of the Iowa public employees’ retirement system, the director shall assign office space at the capitol, other state buildings, and elsewhere in the city of Des Moines, and the state laboratories facility in Ankeny, for all executive and judicial state agencies. Assignments may be changed at any time. The various officers to whom rooms have been so assigned may control the same while the assignment to them is in force. Official apartments shall be used only for the purpose of conducting the business of the state. The term “capitol” or “capitol building” as used in the Code shall be descriptive of all buildings upon the capitol grounds. The capitol building itself is reserved for the operations of the general assembly, and the governor, and, for ceremonial purposes, for the courts and the. The assignment and use of physical facilities for the general assembly shall be pursuant to section 2.43.
   Sec. 16.  Section 8C.7A, subsection 3, paragraph b, unnumbered paragraph 1, if enacted by 2017 Iowa Acts, Senate File 431, is amended to read as follows:
   An authority shall not require a person to apply for or enter into an individual license, franchise, or other agreement with the authority or any other entity for the siting of a small wireless facility on a utility pole located in a public right-of-way. However, an authority may, through the conditions set forth in a building permit obtained pursuant to this subsection, do any of the following:
   Sec. 17.  Section 321N.4, subsection 6, Code 2017, is amended to read as follows:
   6.  Insurance maintained under this chapter shall be provided by an insurer governed by chapter 515 or 518, or by a surplus lines insurer governed by chapter 515I. A surplus lines insurer that issues a policy pursuant to this section shall be considered an insurance carrier duly authorized to transact business in this state for the purposes of chapter 321A.
   Sec. 18.  SMOKING AND USE OF CERTAIN PRODUCTS —— CAPITOL COMPLEX.
   1.  Pursuant to section 8A.322 and chapter 142D, the department of administrative services shall adopt rules prohibiting smoking and the use of alternative nicotine products, tobacco products, and vapor products in the public buildings and on the grounds of the capitol complex as follows:
   a.  Smoking shall be prohibited within the confines of all buildings operated or owned by the state.
   b.  Smoking shall be prohibited on the grounds of any public building on the capitol complex.
   c.  The use of alternative nicotine products, tobacco products, and vapor products shall be prohibited in all spaces in capitol complex buildings including tunnels and enclosures.
   d.  Use of alternative nicotine products, tobacco products, and vapor products shall be prohibited on the grounds of the capitol complex.
   2.  For the purposes of this section:
   a.  “Alternative nicotine product” means as defined in section 453A.1.
   b.  “Grounds” means an outdoor area of a public building that is used in connection with the building, including but not limited to a sidewalk immediately adjacent to the building, a sitting or standing area immediately adjacent to the building, a patio, a deck, a curtilage or courtyard, or any other outdoor area as designated by the person having custody or control of the public building.
   c.  “Smoking” means as defined in section 142D.2 and also includes but is not limited to burning or vaporizing tobacco or other products in a cigarette, cigar, pipe, electronic cigarette, or any noncombustible product, which may or may not contain nicotine, that employs a heating element, power source, electronic circuit, or other electronic, chemical, or mechanical means, regardless of shape or size, that can be used to produce vapor from a solution or other substance.
   d.  “Tobacco products” means as defined in section 453A.1.
   e.  “Vapor product” means as defined in section 453A.1.
   Sec. 19.  TAX CREDIT INTERIM STUDY COMMITTEE.  The legislative council is requested to appoint an interim study committee for purposes of studying tax credits and the contingent liability report issued by the department of revenue. The committee shall study the ability to refund and transfer tax credits, the fiscal impact ratio of tax credits, the rate of growth of tax credits, and the impact tax credits have on general fund revenue. The committee shall submit a report that includes recommendations to the members of the general assembly by December 29, 2017.
DIVISION III
CORRECTIVE PROVISIONS

   Sec. 20.  Section 22.13A, subsection 5, paragraph b, as enacted by 2017 Iowa Acts, House File 291, section 51, is amended to read as follows:
   b.  If paragraph “a”, subparagraph (1) or (2) is not consistent with the provision of a collective bargaining agreement, a state agency shall provide the individuals referenced in this subsection, as applicable, with regular reports regarding any personnel settlement agreements entered into with state employees by the state agency.
   Sec. 21.  Section 27.1, as enacted by 2017 Iowa Acts, Senate File 499, section 1, is amended to read as follows:
   27.1  Definitions.
   1.  For purposes of this section chapter:
   a.  1.  “Monitoring device” means a digital video or audio streaming or recording device that is part of a system of monitoring activity in an area or building using a system in which signals are transmitted from a video camera or microphone to the receivers by cables or wirelessly, forming a closed circuit.
   b.  2.  “Public hospital” means a hospital licensed pursuant to chapter 135B and governed pursuant to chapter 145A, 263, 347, 347A, or 392.
   c.  3.  “Public library” means a library district as described in chapter 336.
   d.  4.  “Public school” means a school district as described in chapter 274. 
   e.  5.  “Reasonable expectation of privacy” means a person’s reasonable belief, under the circumstances, that the person can disrobe or partially disrobe in privacy without being concerned that the person is being viewed, photographed, or filmed when doing so.
   Sec. 22.  Section 73A.26, as enacted by 2017 Iowa Acts, Senate File 438, section 6, is amended to read as follows:
   73A.26  Purpose.
   The purpose of this chapter subchapter is to provide for more economical, nondiscriminatory, neutral, and efficient procurement of construction-related goods and services by this state and political subdivisions of this state.
   Sec. 23.  Section 80B.19, subsection 2, if enacted by 2017 Iowa Acts, Senate File 509, section 22, is amended to read as follows:
   2.  Internal training funds in the internal training clearing fund shall be administered by the academy and shall consist of moneys collected by the academy from billings issued in accordance with this chapter 80B, and any other moneys obtained or accepted by the academy, including but not limited to gifts, loans, donations, grants, and contributions, which are obtained or designated to support the activities of the academy.
   Sec. 24.  Section 84A.1A, subsection 1, paragraph a, subparagraph (8), subparagraph division (b), subparagraph subdivision (iii), as enacted by 2017 Iowa Acts, House File 572, section 1, is amended to read as follows:
   (iii)  Two representatives of community-based organizations that have demonstrated experience and expertise in addressing the employment, training, or education needs of individuals with barriers to employment as defined in the federal Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, §3(24), including but not limited to organizations that serve veterans, or that provide or support competitive, integrated employment for individuals with disabilities; or that serve eligible youth, as defined in the federal Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, §3(18), including representatives of organizations that serve out-of-school youth, as defined in the federal Workforce Innovation and Opportunity Act, Pub. L. No. 113-128, §129(a)(1)(B).
   Sec. 25.  Section 225D.1, subsection 8, Code 2017, as amended by 2017 Iowa Acts, House File 215, section 1, is amended to read as follows:
   8.  “Eligible individual” means a child less than fourteen years of age who has been diagnosed with autism based on a diagnostic assessment of autism, is not otherwise eligible for coverage for applied behavioral analysis treatment or applied behavior analysis treatment under the medical assistance program, section 514C.28, 514C.31, or other private insurance coverage, and whose household income does not exceed five hundred percent of the federal poverty level.
   Sec. 26.  Section 261.9, subsection 2A, paragraph b, if enacted by 2017 Iowa Acts, House File 642, section 15, is amended to read as follows:
   b.  Is a barber school licensed under section 158.7 or a school of cosmetology arts and sciences licensed under chapter 157 and is accredited by a national accrediting agency recognized by the United States department of education. For the fiscal year beginning July 1, 2017, an eligible institution under this paragraph shall provide a matching aggregate amount of institutional financial aid equal to at least seventy-five percent of the amount received by the institution’s students for Iowa tuition grant assistance under section 261.16A.  For the fiscal year beginning July 1, 2018, the institution shall provide a matching aggregate amount of institutional financial aid equal to at least eighty-five percent of the amount received in that fiscal year. Commencing with the fiscal year beginning July 1, 2019, and each succeeding fiscal year, the matching aggregate amount of institutional financial aid shall be at least equal to the match provided by eligible institutions under section 261.16A, subsection 2 paragraph “a”.
   Sec. 27.  2017 Iowa Acts, House File 488, section 57, as enacted, is amended by striking the section and inserting in lieu thereof the following:
   SEC. 57.  Section 455B.474, subsection 2, paragraph a, subparagraph (1), Code 2017, is amended to read as follows:
   (1)  (a)  Financial responsibility required by this subsection may be established in accordance with rules adopted by the commission by any one, or any combination, of the following methods:  insurance, guarantee, surety bond, letter 
   (i)  Insurance.
   (ii)  Guarantee.
   (iii)  Surety bond.
   (iv)  Letter of credit, or qualification. 
   (v)  Qualification as a self-insurer.
   (b)  In adopting requirements under this subsection, the commission may specify policy or other contractual terms, conditions, or defenses which are necessary or are unacceptable in establishing the evidence of financial responsibility.
   Sec. 28.  2017 Iowa Acts, House File 642, section 44, subsection 1, paragraph f, unnumbered paragraph 2, if enacted, is amended to read as follows:
   From the moneys appropriated in this lettered paragraph “f”, not more than $50,000 shall be used by the department for expenses associated with the activities of the secondary career and technical programming task force convened pursuant to this Act to provide statewide support for work-based learning.
   Sec. 29.  2017 Iowa Acts, House File 642, section 52, subsection 4, paragraph c, subparagraph (4), is amended to read as follows:
   (4)  Notwithstanding section 8.33, of the moneys appropriated in this paragraph “c” that remain unencumbered or unobligated at the close of the fiscal year, an amount equivalent to not more than 5 percent of the amount appropriated in this paragraph “c” shall not revert by but shall remain available for expenditure for summer programs for students until the close of the succeeding fiscal year.
   Sec. 30.  2017 Iowa Acts, House File 642, section 55, subsection 1, paragraph f, unnumbered paragraph 2, if enacted, is amended to read as follows:
   From the moneys appropriated in this lettered paragraph “f”, not more than $25,000 shall be used by the department for expenses associated with the activities of the secondary career and technical programming task force convened pursuant to this Act to provide statewide support for work-based learning.
   Sec. 31.  2017 Iowa Acts, Senate File 510, section 22, subsection 1, if enacted, is amended to read as follows:
   1.  Notwithstanding section 466A.2, and the repeal of chapter 466A as provided in this division of this Act, on and after December 31, 2017, the department of agriculture and land stewardship shall manage moneys credited to the watershed improvement fund in the same manner as required in 2016 Acts, chapter 1134, section 35, including by making necessary payments to satisfy any outstanding obligations incurred by the watershed improvement review board prior to December 31, 2017.
   Sec. 32.  EFFECTIVE UPON ENACTMENT.  The following sections of this division of this Act, being deemed of immediate importance, take effect upon enactment:
   1.  The section of this division of this Act amending section 22.13A, subsection 5, paragraph “b”.
   2.  The section of this division of this Act amending section 73A.26.
   3.  The section of this division of this Act amending section 84A.1A, subsection 1, paragraph “a”, subparagraph (8), subparagraph division (b), subparagraph subdivision (iii).
   Sec. 33.  EFFECTIVE DATE.  The section of this division of this Act amending section 225D.1, subsection 8, takes effect January 1, 2018.
DIVISION IV
WEAPONS

   Sec. 34.  Section 724.2A, as enacted by 2017 Iowa Acts, House File 517, section 5, is amended to read as follows:
   724.2A  Peace officer and reserve peace officer —— defined.
   As used in sections 724.4, 724.6, and 724.11, “peace officer” means a certified “peace officer” and includes a reserve peace officer as defined in section 80D.1A.
   Sec. 35.  Section 724.4C, subsection 1, unnumbered paragraph 1, as enacted by 2017 Iowa Acts, House File 517, section 8, is amended to read as follows:
   Except as provided in subsection 2, a person commits a serious misdemeanor if the person is intoxicated as provided under the conditions set out in section 321J.2, subsection 1, paragraph “a”, “b”, or “c”, and the person does any of the following:
   Sec. 36.  Section 724.17, subsection 1, as enacted by 2017 Iowa Acts, House File 517, section 22, is amended to read as follows:
   1.  The application for a permit to acquire pistols or revolvers may be made to the sheriff of the county of the applicant’s residence and shall be on a form prescribed and published by the commissioner of public safety. The application shall require only the full name of the applicant, the driver’s license or nonoperator’s identification card number of the applicant, the residence of the applicant, and the date and place of birth of the applicant, and whether the applicant meets the criteria specified in section 724.15. The applicant shall also display an identification card that bears a distinguishing number assigned to the cardholder, the full name, date of birth, sex, residence address, and brief description and color photograph of the cardholder, or other identification as specified by rule of the department of public safety. The sheriff shall conduct a criminal history check concerning each applicant by obtaining criminal history data from the department of public safety which shall include an inquiry of the national instant criminal background check system maintained by the federal bureau of investigation or any successor agency. A person who makes what the person knows to be a false statement of material fact on an application submitted under this section or who submits what the person knows to be any materially falsified or forged documentation in connection with such an application commits a class “D” felony.
   Sec. 37.  Section 724.22, subsection 9, as enacted by 2017 Iowa Acts, House File 517, section 29, is amended to read as follows:
   9.  A parent, guardian, spouse, or instructor, who knowingly provides direct supervision under subsection 5, of a person while intoxicated as provided under the conditions set out in section 321J.2, subsection 1, or under the influence of an illegal drug paragraph “a”, “b”, or “c”, commits child endangerment in violation of section 726.6, subsection 1, paragraph “i”.
   Sec. 38.  Section 726.6, subsection 1, paragraph i, as enacted by 2017 Iowa Acts, House File 517, section 30, is amended to read as follows:
   i.  Knowingly provides direct supervision of a person under section 724.22, subsection 5, while intoxicated as provided under the conditions set out in section 321J.2, subsection 1, or under the influence of an illegal drug paragraph “a”, “b”, or “c”.
   Sec. 39.  2017 Iowa Acts, House File 517, section 50, subsection 1, as enacted, is amended to read as follows:
   1.  The section sections of this Act amending section sections 724.22 and 726.6.
   Sec. 40.  REPEAL.  2017 Iowa Acts, House File 517, section 16, as enacted, is repealed.
   Sec. 41.  EFFECTIVE UPON ENACTMENT.  The section of this division of this Act amending 2017 Iowa Acts, House File 517, section 50, subsection 1, being deemed of immediate importance, takes effect upon enactment.
   Sec. 42.  RETROACTIVE APPLICABILITY.  The section of this division of this Act amending 2017 Iowa Acts, House File 517, section 50, subsection 1, applies retroactively to April 13, 2017.
DIVISION V
VAPOR AND ALTERNATIVE NICOTINE PRODUCTS —— TAX

   Sec. 43.  Section 453A.1, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  7A.  “Delivery sale” means any sale of an alternative nicotine product or a vapor product to a purchaser in this state where the purchaser submits the order for such sale by means of a telephonic or other method of voice transmission, mail or any other delivery service, or the internet or other online service and the alternative nicotine product or vapor product is delivered by use of mail or a delivery service. The sale of an alternative nicotine product or vapor product shall constitute a delivery sale regardless of whether the seller is located in this state. “Delivery sale” does not include a sale to a distributor or retailer of any alternative nicotine product or vapor product not for personal consumption.
   Sec. 44.  Section 453A.1, subsection 20, Code 2017, is amended to read as follows:
   20.  “Place of business” is construed to mean and include any place where cigarettes are sold or where cigarettes are stored within or without the state of Iowa by the holder of an Iowa permit or kept for the purpose of sale or consumption; or if sold from any vehicle or train, the vehicle or train on which or from which such cigarettes are sold shall constitute a place of business; or for a business within or without the state that conducts delivery sales, any place where alternative nicotine products or vapor products are sold or where alternative nicotine products or vapor products are kept for the purpose of sale.
   Sec. 45.  Section 453A.13, subsection 1, Code 2017, is amended to read as follows:
   1.  Permits required.  Every distributor, wholesaler, cigarette vendor, and retailer, now engaged or who desires to become engaged in the sale or use of cigarettes, upon which a tax is required to be paid, and every retailer now engaged or who desires to become engaged in selling, offering for sale, or distributing alternative nicotine products or vapor products, including through delivery sales, shall obtain a state or retail permit as a distributor, wholesaler, cigarette vendor, or retailer, as the case may be.
   Sec. 46.  Section 453A.13, subsection 2, paragraph a, Code 2017, is amended to read as follows:
   a.  The department shall issue state permits to distributors, wholesalers, and cigarette vendors and retailers that make delivery sales of alternative nicotine products and vapor products subject to the conditions provided in this division.  If an out-of-state retailer makes delivery sales of alternative nicotine products or vapor products, an application shall be filed with the department and a permit shall be issued for the out-of-state retailer’s principal place of business. Cities may issue retail permits to dealers retailers with a place of business located within their respective limits. County boards of supervisors may issue retail permits to dealers retailers with a place of business in their respective counties, outside of the corporate limits of cities.
   Sec. 47.  Section 453A.42, Code 2017, is amended by adding the following new subsection:
   NEW SUBSECTION.  2A.  “Delivery sale” means any sale of an alternative nicotine product or a vapor product to a purchaser in this state where the purchaser submits the order for such sale by means of a telephonic or other method of voice transmission, mail or any other delivery service, or the internet or other online service and the alternative nicotine product or vapor product is delivered by use of mail or a delivery service. The sale of an alternative nicotine product or vapor product shall constitute a delivery sale regardless of whether the seller is located in this state. “Delivery sale” does not include a sale to a distributor or retailer of any alternative nicotine product or vapor product not for personal consumption.
   Sec. 48.  Section 453A.42, subsection 8, Code 2017, is amended to read as follows:
   8.  “Place of business” means any place where tobacco products are sold or where tobacco products are manufactured, stored, or kept for the purpose of sale or consumption, including any vessel, vehicle, airplane, train, or vending machine; or for a business within or without the state that conducts delivery sales, any place where alternative nicotine products or vapor products are sold or where alternative nicotine products or vapor products are kept for the purpose of sale, including delivery sales.
   Sec. 49.  Section 453A.47A, subsections 1, 3, and 6, Code 2017, are amended to read as follows:
   1.  Permits required.  A person shall not engage in the business of a retailer of tobacco, tobacco products, alternative nicotine products, or vapor products at any place of business, or through delivery sales, without first having received a permit as a retailer.
   3.  Number of permits.  An application shall be filed and a permit obtained for each place of business owned or operated by a retailer located in the state.  If an out-of-state retailer makes delivery sales of alternative nicotine products or vapor products, an application shall be filed with the department and a permit shall be issued for the out-of-state retailer’s principal place of business.
   6.  Issuance.  Cities shall may issue retail permits to retailers located within their respective limits. County boards of supervisors shall may issue retail permits to retailers located in their respective counties, outside of the corporate limits of cities. The city or county shall submit a duplicate of any application for a retail permit and any retail permit issued by the entity under this section to the alcoholic beverages division of the department of commerce within thirty days of issuance. The alcoholic beverages division of the department of commerce shall submit the current list of all retail permits issued to the Iowa department of public health by the first day of each quarter of a state fiscal year.
   Sec. 50.  NEW SECTION.  453A.47B  Requirements for mailing or shipping —— alternative nicotine products or vapor products.
   A retailer shall not mail, ship, or otherwise cause to be delivered any alternative nicotine product or vapor product in connection with a delivery sale unless all of the following apply:
   1.  Prior to sale to the purchaser, the retailer verifies that the purchaser is at least eighteen years of age through or by one of the following:
   a.  A commercially available database, or aggregate of databases, that is regularly used by government and businesses for the purpose of age and identity verification.
   b.  Obtaining a copy of a valid government-issued document that provides the name, address, and date of birth of the purchaser.
   2.  The retailer uses a method of mailing, shipping, or delivery that requires the signature of a person who is at least eighteen years of age before the shipping package is released to the purchaser.
   Sec. 51.  NEW SECTION.  453A.47C  Sales and use tax on delivery sales —— alternative nicotine products or vapor products.
   1.  A delivery sale of alternative nicotine products or vapor products within this state shall be subject to the sales tax provided in chapter 423, subchapter II.
   2.  The use in this state of alternative nicotine products or vapor products purchased for use in this state through a delivery sale shall be subject to the use tax provided in chapter 423, subchapter III.
   3.  A retailer required to possess or possessing a permit under section 453A.13 or 453A.47A to make delivery sales of alternative nicotine products or vapor products within this state shall be deemed to have waived all claims that such retailer lacks physical presence within this state for purposes of collecting and remitting sales and use tax.
   4.  A retailer making taxable delivery sales of alternative nicotine products or vapor products within this state shall remit to the department all sales and use tax due on such sales at the times and in the manner provided by chapter 423.
   5.  The director shall adopt rules pursuant to chapter 17A to administer this section.
DIVISION VI
SECURE AN ADVANCED VISION FOR EDUCATION FUND

   Sec. 52.  Section 423.2, subsection 11, paragraph b, subparagraph (3), Code 2017, is amended to read as follows:
   (3)  Transfer one-sixth of the remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This subparagraph (3) is repealed December 31, 2029 effective January 1, 2050.
   Sec. 53.  Section 423.2, subsection 14, Code 2017, is amended to read as follows:
   14.  The sales tax rate of six percent is reduced to five percent on January 1, 2030 2050.
   Sec. 54.  Section 423.5, subsection 5, Code 2017, is amended to read as follows:
   5.  The use tax rate of six percent is reduced to five percent on January 1, 2030 2050.
   Sec. 55.  Section 423.43, subsection 1, paragraph b, Code 2017, is amended to read as follows:
   b.  Subsequent to the deposit into the general fund of the state and after the transfer of such revenues collected under chapter 423B, the department shall transfer one-sixth of such remaining revenues to the secure an advanced vision for education fund created in section 423F.2. This paragraph is repealed December 31, 2029 effective January 1, 2050.
   Sec. 56.  Section 423F.6, Code 2017, is amended to read as follows:
   423F.6  Repeal.
   This chapter is repealed December 31, 2029 effective January 1, 2050.
DIVISION VII
MEDICAID MANAGED CARE CONTRACTS

   Sec. 57.  TERMINATION OF MEDICAID MANAGED CARE CONTRACTS —— TRANSITION TO ALTERNATIVES FOR HEALTH CARE DELIVERY AND PAYMENT REFORM.
   1.  The department of human services shall, upon the effective date of this Act, provide thirty days’ written notice in accordance with the termination provisions of the contract to each managed care organization with whom the department executed a contract to administer the Medicaid managed care program, to terminate all such contracts effective six months from the effective date of this Act.
   2.  The department shall pursue initiatives to transition the Medicaid program from the managed care model, effective upon the date of termination of the Medicaid managed care contracts, to a health care delivery system and value-based model of payment that provides holistic, integrated, patient-centered care, best meets the needs of the specific Medicaid population, ensures sufficient access by members to providers and services, provides adequate reimbursement to providers of services and supports, improves each member’s experience of care, and ensures positive outcomes.
   Sec. 58.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION VIII
MEDICAL CANNABIS

   Sec. 59.  Section 124.204, subsection 4, paragraphs m and u, Code 2017, are amended by striking the paragraphs.
   Sec. 60.  Section 124.204, subsection 7, Code 2017, is amended by striking the subsection.
   Sec. 61.  Section 124.206, subsection 7, Code 2017, is amended to read as follows:
   7.  Hallucinogenic substances.  Unless specifically excepted or unless listed in another schedule, any material, compound, mixture, or preparation which contains any quantity of the following substances, or, for purposes of paragraphs “a” and “b”, which contains any of its salts, isomers, or salts of isomers whenever the existence of such salts, isomers, or salts of isomers is possible within the specific chemical designation (for purposes of this paragraph only, the term “isomer” includes the optical, positional, and geometric isomers):
   a.  Marijuana when used for medicinal purposes pursuant to rules of the board.
   b.  Tetrahydrocannabinols, meaning tetrahydrocannabinols naturally contained in a plant of the genus cannabis (cannabis plant) as well as synthetic equivalents of the substances contained in the cannabis plant, or in the resinous extractives of such plant, and synthetic substances, derivatives, and their isomers with similar chemical structure and pharmacological activity to those substances contained in the plant, such as the following:
   (1)  1 cis or trans tetrahydrocannabinol, and their optical isomers.
   (2)  6 cis or trans tetrahydrocannabinol, and their optical isomers.
   (3)  3,4 cis or trans tetrahydrocannabinol, and their optical isomers. (Since nomenclature of these substances is not internationally standardized, compounds of these structures, regardless of numerical designation of atomic positions covered.)
   b.  c.  Nabilone [another name for nabilone: (+-) - trans-3-(1,1-dimethylheptyl)-6,6a,7,8,10,10a-hexahydro-1-

hydroxy-6,6-dimethyl-9H-dibenzo[b,d]pyran-9-one].
   Sec. 62.  Section 124.401, subsection 5, unnumbered paragraph 3, Code 2017, is amended to read as follows:
   A person may knowingly or intentionally recommend, possess, use, dispense, deliver, transport, or administer cannabidiol medical cannabis if the recommendation, possession, use, dispensing, delivery, transporting, or administering is in accordance with the provisions of chapter 124D 124E. For purposes of this paragraph, “cannabidiol” ”medical cannabis” means the same as defined in section 124D.2 124E.2.
   Sec. 63.  NEW SECTION.  124E.1  Short title.
   This chapter shall be known and may be cited as the “Compassionate Use of Medical Cannabis Act”.
   Sec. 64.  NEW SECTION.  124E.2  Definitions.
   As used in this chapter:
   1.  “Debilitating medical condition” means any of the following:
   a.  Cancer, if the underlying condition or treatment produces one or more of the following:
   (1)  Intractable pain.
   (2)  Nausea or severe vomiting.
   (3)  Cachexia or severe wasting.
   b.  Multiple sclerosis.
   c.  Epilepsy or seizure disorders.
   d.  AIDS or HIV as defined in section 141A.1.
   e.  Glaucoma.
   f.  Hepatitis C.
   g.  Crohn’s disease or ulcerative colitis.
   h.  Amyotrophic lateral sclerosis.
   i.  Ehlers-Danlos syndrome.
   j.  Post-traumatic stress disorder.
   k.  Tourette’s syndrome.
   l.  Any terminal illness, with a probable life expectancy of under one year, if the illness or its treatment produces one or more of the following:
   (1)  Intractable pain.
   (2)  Nausea or severe vomiting.
   (3)  Cachexia or severe wasting.
   m.  Intractable pain.
   n.  Parkinson’s disease.
   o.  Muscular dystrophy.
   p.  Huntington’s disease.
   q.  Alzheimer’s disease.
   r.  Complex regional pain syndrome, type I and II.
   s.  Rheumatoid arthritis.
   t.  Polyarteritis nodosa.
   u.  Any other chronic or debilitating disease or medical condition or its medical treatment approved by the department pursuant to rule.
   2.  “Department” means the department of public health.
   3.  “Disqualifying felony offense” means a violation under federal or state law of a felony offense, which has as an element the possession, use, or distribution of a controlled substance, as defined in 21 U.S.C. §802(6).
   4.  “Enclosed, locked facility” means a closet, room, greenhouse, or other enclosed area equipped with locks or other security devices that permit access only by authorized personnel.
   5.  “Health care practitioner” means an individual licensed under chapter 148 to practice medicine and surgery or osteopathic medicine and surgery or an individual licensed to practice medicine in any other state who provides specialty care for an Iowa resident for one or more of the debilitating medical conditions provided in this chapter.
   6.  “Intractable pain” means a pain in which the cause of the pain cannot be removed or otherwise treated with the consent of the patient and which, in the generally accepted course of medical practice, no relief or cure of the cause of the pain is possible, or none has been found after reasonable efforts. Reasonable efforts for relieving or curing the cause of the pain may be determined on the basis of but are not limited to any of the following:
   a.  When treating a nonterminally ill patient for intractable pain, evaluation by the attending physician and one or more physicians specializing in pain medicine or the treatment of the area, system, or organ of the body perceived as the source of the pain.
   b.  When treating a terminally ill patient, evaluation by the attending physician who does so in accordance with the level of care, skill, and treatment that would be recognized by a reasonably prudent physician under similar conditions and circumstances.
   7.  “Medical cannabis” means any species of the genus cannabis plant, or any mixture or preparation of them, including whole plant extracts and resins.
   8.  “Medical cannabis dispensary” means an entity licensed under section 124E.8 that acquires medical cannabis from a medical cannabis manufacturer in this state for the purpose of dispensing medical cannabis in this state pursuant to this chapter.
   9.  “Medical cannabis manufacturer” means an entity licensed under section 124E.6 to manufacture and to possess, cultivate, transport, or supply medical cannabis pursuant to the provisions of this chapter.
   10.  “Primary caregiver” means a person, at least eighteen years of age, who has been designated by a patient’s health care practitioner or a person having custody of a patient, as a necessary caretaker taking responsibility for managing the well-being of the patient with respect to the use of medical cannabis pursuant to the provisions of this chapter.
   11.  “Written certification” means a document signed by a health care practitioner, with whom the patient has established a patient-provider relationship, which states that the patient has a debilitating medical condition and identifies that condition and provides any other relevant information.
   Sec. 65.  NEW SECTION.  124E.3  Health care practitioner certification —— duties.
   1.  Prior to a patient’s submission of an application for a medical cannabis registration card pursuant to section 124E.4, a health care practitioner shall do all of the following:
   a.  Determine, in the health care practitioner’s medical judgment, whether the patient whom the health care practitioner has examined and treated suffers from a debilitating medical condition that qualifies for the use of medical cannabis under this chapter, and if so determined, provide the patient with a written certification of that diagnosis.
   b.  Provide explanatory information as provided by the department to the patient about the therapeutic use of medical cannabis.
   c.  Determine, on an annual basis, if the patient continues to suffer from a debilitating medical condition and, if so, issue the patient a new certification of that diagnosis. This paragraph shall not apply if the patient is suffering from an incurable debilitating medical condition.
   d.  Otherwise comply with all requirements established by the department pursuant to rule.
   2.  A health care practitioner may provide, but has no duty to provide, a written certification pursuant to this section.
   Sec. 66.  NEW SECTION.  124E.4  Medical cannabis registration card.
   1.  Issuance to patient.  The department may approve the issuance of a medical cannabis registration card by the department of transportation to a patient who:
   a.  Is at least eighteen years of age.
   b.  Is a permanent resident of this state.
   c.  Submits a written certification to the department signed by the patient’s health care practitioner that the patient is suffering from a debilitating medical condition.
   d.  Submits an application to the department, on a form created by the department, in consultation with the department of transportation, that contains all of the following:
   (1)  The patient’s full name, Iowa residence address, date of birth, and telephone number.
   (2)  A copy of the patient’s valid photograph identification.
   (3)  Full name, address, and telephone number of the patient’s health care practitioner.
   (4)  Full name, residence address, date of birth, and telephone number of each primary caregiver of the patient, if any.
   (5)  Any other information required by rule.
   e.  Submits a medical cannabis registration card fee of one hundred dollars to the department. If the patient attests to receiving social security disability benefits, supplemental security insurance payments, or being enrolled in the medical assistance program, the fee shall be twenty-five dollars.
   2.  Patient card contents.  A medical cannabis registration card issued to a patient by the department of transportation pursuant to subsection 1 shall contain, at a minimum, all of the following:
   a.  The patient’s full name, Iowa residence address, and date of birth.
   b.  The patient’s photograph.
   c.  The date of issuance and expiration of the registration card.
   d.  Any other information required by rule.
   3.  Issuance to primary caregiver.  For a patient in a primary caregiver’s care, the department may approve the issuance of a medical cannabis registration card by the department of transportation to the primary caregiver who:
   a.  Submits a written certification to the department signed by the patient’s health care practitioner that the patient in the primary caregiver’s care is suffering from a debilitating medical condition.
   b.  Submits an application to the department, on a form created by the department, in consultation with the department of transportation, that contains all of the following:
   (1)  The primary caregiver’s full name, residence address, date of birth, and telephone number.
   (2)  The patient’s full name.
   (3)  A copy of the primary caregiver’s valid photograph identification.
   (4)  Full name, address, and telephone number of the patient’s health care practitioner.
   (5)  Any other information required by rule.
   c.  Submits a medical cannabis registration card fee of twenty-five dollars to the department.
   4.  Primary caregiver card contents.  A medical cannabis registration card issued by the department of transportation to a primary caregiver pursuant to subsection 3 shall contain, at a minimum, all of the following:
   a.  The primary caregiver’s full name, residence address, and date of birth.
   b.  The primary caregiver’s photograph.
   c.  The date of issuance and expiration of the registration card.
   d.  The registration card number of each patient in the primary caregiver’s care. If the patient in the primary caregiver’s care is under the age of eighteen, the full name of the patient’s parent or legal guardian.
   e.  Any other information required by rule.
   5.  Expiration date of card.  A medical cannabis registration card issued pursuant to this section shall expire one year after the date of issuance and may be renewed.
   6.  Card issuance —— department of transportation.
   a.  The department may enter into a chapter 28E agreement with the department of transportation to facilitate the issuance of medical cannabis registration cards pursuant to subsections 1 and 3.
   b.  The department of transportation may issue renewal medical cannabis registration cards through an online or in-person process.
   Sec. 67.  NEW SECTION.  124E.5  Medical advisory board —— duties.
   1.  No later than August 15, 2017, the director of public health shall establish a medical advisory board consisting of nine practitioners representing the fields of neurology, pain management, gastroenterology, oncology, psychiatry, pediatrics, infectious disease, family medicine, and pharmacy, and three patients or primary caregivers with valid medical cannabis registration cards. The practitioners shall be nationally board-certified in their area of specialty and knowledgeable about the use of medical cannabis.
   2.  A quorum of the advisory board shall consist of seven members.
   3.  The duties of the advisory board shall include but not be limited to the following:
   a.  Reviewing and recommending to the department for approval additional chronic or debilitating diseases or medical conditions or their treatments as debilitating medical conditions that qualify for the use of medical cannabis under this chapter.
   b.  Accepting and reviewing petitions to add chronic or debilitating diseases or medical conditions or their medical treatments to the list of debilitating medical conditions that qualify for the use of medical cannabis under this chapter.
   c.  Working with the department regarding the requirements for the licensure of medical cannabis manufacturers and medical cannabis dispensaries, including licensure procedures.
   d.  Advising the department regarding the location of medical cannabis dispensaries throughout the state, the form and quantity of allowable medical cannabis to be dispensed to a patient or primary caregiver, and the general oversight of medical cannabis manufacturers and medical cannabis dispensaries in this state.
   e.  Convening at least twice per year to conduct public hearings and to review and recommend for approval petitions, which shall be maintained as confidential personal health information, to add chronic or debilitating diseases or medical conditions or their medical treatments to the list of debilitating medical conditions that qualify for the use of medical cannabis under this chapter.
   f.  Recommending improvements relating to the effectiveness of the provisions of this chapter.
   g.  In making recommendations pursuant to this section, consideration of the economic and financial impacts on patients and the medical cannabis industry, and making recommendations that minimize the extent of such impacts to the greatest extent practicable.
   Sec. 68.  NEW SECTION.  124E.6  Medical cannabis manufacturer licensure.
   1.  a.  The department shall license up to four medical cannabis manufacturers to manufacture  medical cannabis within this state consistent with the provisions of this chapter by December 1, 2017. The department shall license new medical cannabis manufacturers or relicense the existing medical cannabis manufacturers by December 1 of each year.
   b.  Information submitted during the application process shall be confidential until the medical cannabis manufacturer is licensed by the department unless otherwise protected from disclosure under state or federal law.
   2.  As a condition for licensure, a medical cannabis manufacturer must agree to begin supplying medical cannabis to medical cannabis dispensaries in this state by July 2, 2018.
   3.  The department shall consider the following factors in determining whether to license a medical cannabis manufacturer:
   a.  The technical expertise of the medical cannabis manufacturer regarding medical cannabis.
   b.  The qualifications of the medical cannabis manufacturer’s ownership and management team.
   c.  The long-term financial stability of the medical cannabis manufacturer.
   d.  The ability to provide appropriate security measures on the premises of the medical cannabis manufacturer.
   e.  Whether the medical cannabis manufacturer has demonstrated an ability to meet certain medical cannabis production needs for medical use regarding the range of recommended dosages for each debilitating medical condition, the range of chemical compositions of any plant of the genus cannabis that will likely be medically beneficial for each of the debilitating medical conditions, and the form of the medical cannabis in the manner determined by the department pursuant to rule.
   f.  The medical cannabis manufacturer’s projection of and ongoing assessment of fees on patients with debilitating medical conditions.
   g.  The medical cannabis manufacturer’s experience in medical cannabis production, plant extraction, and pharmaceutical formulations.
   4.  The department shall require each medical cannabis manufacturer to contract with a laboratory approved by the department to test the medical cannabis produced by the manufacturer. The department shall require that the laboratory report testing results to the manufacturer in a manner determined by the department pursuant to rule.
   5.  Each entity submitting an application for licensure as a medical cannabis manufacturer shall pay a nonrefundable application fee of fifteen thousand dollars to the department.
   Sec. 69.  NEW SECTION.  124E.7  Medical cannabis manufacturers.
   1.  A medical cannabis manufacturer shall contract with a laboratory approved by the department for purposes of testing the medical cannabis manufactured by the medical cannabis manufacturer as to content, contamination, and consistency. The cost of all laboratory testing shall be paid by the medical cannabis manufacturer.
   2.  The operating documents of a medical cannabis manufacturer shall include all of the following:
   a.  Procedures for the oversight of the medical cannabis manufacturer and procedures to ensure accurate recordkeeping.
   b.  Procedures for the implementation of appropriate security measures to deter and prevent the theft of medical cannabis and unauthorized entrance into areas containing medical cannabis.
   3.  A medical cannabis manufacturer shall implement security requirements, including requirements for protection of each location by a fully operational security alarm system, facility access controls, perimeter intrusion detection systems, and a personnel identification system.
   4.  A medical cannabis manufacturer shall not share office space with, refer patients to, or have any financial relationship with a health care practitioner.
   5.  A medical cannabis manufacturer shall not permit any person to consume medical cannabis on the property of the medical cannabis manufacturer.
   6.  A medical cannabis manufacturer is subject to reasonable inspection by the department.
   7.  A medical cannabis 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 cannabis 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.
   8.  A medical cannabis manufacturer shall not operate in any location, whether for manufacturing, cultivating, harvesting, packaging, or processing, within one thousand feet of a public or private school existing before the date of the medical cannabis manufacturer’s licensure by the department.
   9.  A medical cannabis manufacturer shall comply with reasonable restrictions set by the department relating to signage, marketing, display, and advertising of medical cannabis.
   10.  a.  A medical cannabis manufacturer shall provide a reliable and ongoing supply of medical cannabis to medical cannabis dispensaries pursuant to this chapter.
   b.  All manufacturing, cultivating, harvesting, packaging, and processing of medical cannabis shall take place in an enclosed, locked facility at a physical address provided to the department during the licensure process.
   c.  A medical cannabis manufacturer shall not manufacture edible medical cannabis products utilizing food coloring.
   d.  A medical cannabis manufacturer shall manufacture a reliable and ongoing supply of medical cannabis to treat every debilitating medical condition listed in this chapter.
   11.  The department shall establish and collect an annual fee from a medical cannabis manufacturer not to exceed the cost of regulating and inspecting the manufacturer in the calendar year.
   Sec. 70.  NEW SECTION.  124E.8  Medical cannabis dispensary licensure.
   1.  a.  The department shall license by April 2, 2018, twelve medical cannabis dispensaries to dispense medical cannabis within this state consistent with the provisions of this chapter. The department shall license new medical cannabis dispensaries or relicense the existing medical cannabis dispensaries by December 1 of each year.
   b.  Information submitted during the application process shall be confidential until the medical cannabis dispensary is licensed by the department unless otherwise protected from disclosure under state or federal law.
   2.  As a condition for licensure, a medical cannabis dispensary must agree to begin supplying medical cannabis to patients by July 16, 2018.
   3.  The department shall consider the following factors in determining whether to license a medical cannabis dispensary:
   a.  The technical expertise of the medical cannabis dispensary regarding medical cannabis.
   b.  The qualifications of the medical cannabis dispensary’s owners and management team.
   c.  The long-term financial stability of the medical cannabis dispensary.
   d.  The ability to provide appropriate security measures on the premises of the medical cannabis dispensary.
   e.  The medical cannabis dispensary’s projection and ongoing assessment of fees for the purchase of medical cannabis on patients with debilitating medical conditions.
   4.  Each entity submitting an application for licensure as a medical cannabis dispensary shall pay a nonrefundable application fee of fifteen thousand dollars to the department.
   Sec. 71.  NEW SECTION.  124E.9  Medical cannabis dispensaries.
   1.  a.  Medical cannabis dispensaries shall be located based on geographical need throughout the state to improve patient access.
   b.  A medical cannabis dispensary may dispense medical cannabis pursuant to the provisions of this chapter but shall not dispense any medical cannabis in a form or quantity other than the form or quantity allowed by the department pursuant to rule.
   2.  The operating documents of a medical cannabis dispensary shall include all of the following:
   a.  Procedures for the oversight of the medical cannabis dispensary and procedures to ensure accurate recordkeeping.
   b.  Procedures for the implementation of appropriate security measures to deter and prevent the theft of medical cannabis and unauthorized entrance into areas containing medical cannabis.
   3.  A medical cannabis dispensary shall implement security requirements, including requirements for protection by a fully operational security alarm system, facility access controls, perimeter intrusion detection systems, and a personnel identification system.
   4.  A medical cannabis dispensary shall not share office space with, refer patients to, or have any financial relationship with a health care practitioner.
   5.  A medical cannabis dispensary shall not permit any person to consume medical cannabis on the property of the medical cannabis dispensary.
   6.  A medical cannabis dispensary is subject to reasonable inspection by the department.
   7.  A medical cannabis 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 cannabis 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.
   8.  A medical cannabis dispensary shall not operate in any location within one thousand feet of a public or private school existing before the date of the medical cannabis dispensary’s licensure by the department.
   9.  A medical cannabis dispensary shall comply with reasonable restrictions set by the department relating to signage, marketing, display, and advertising of medical cannabis.
   10.  Prior to dispensing of any medical cannabis, a medical cannabis dispensary shall do all of the following:
   a.  Verify that the medical cannabis dispensary has received a valid medical cannabis registration card from a patient or a patient’s primary caregiver, if applicable.
   b.  Assign a tracking number to any medical cannabis dispensed from the medical cannabis dispensary.
   c.  (1)  Properly package medical cannabis in compliance with federal law regarding child resistant packaging and exemptions for packaging for elderly patients, and label medical cannabis with a list of all active ingredients and individually identifying information, including all of the following:
   (a)  The name and date of birth of the patient and the patient’s primary caregiver, if appropriate.
   (b)  The medical cannabis registration card numbers of the patient and the patient’s primary caregiver, if applicable.
   (c)  The chemical composition of the medical cannabis.
   (2)  Proper packaging of medical cannabis shall include but not be limited to all of the following:
   (a)  Warning labels regarding the use of medical cannabis by a woman during pregnancy and while breastfeeding.
   (b)  Clearly labeled packaging indicating that an edible medical cannabis product contains medical cannabis and which packaging shall not imitate candy products or in any way make the product marketable to children.
   Sec. 72.  NEW SECTION.  124E.10  Fees.
   Medical cannabis registration card fees and medical cannabis manufacturer and medical cannabis dispensary application and annual fees collected by the department pursuant to this chapter shall be retained by the department, shall be considered repayment receipts as defined in section 8.2, and shall be used for the purpose of regulating medical cannabis manufacturers and medical cannabis dispensaries and for other expenses necessary for the administration of this chapter.
   Sec. 73.  NEW SECTION.  124E.11  Department duties —— rules.
   1.  a.  The department shall maintain a confidential file of the names of each patient to or for whom the department issues a medical cannabis registration card, the name of each primary caregiver to whom the department issues a medical cannabis registration card under section 124E.4, and the names of each health care practitioner who provides a written certification for medical cannabis pursuant to this chapter.
   b.  Individual names contained in the file shall be confidential and shall not be subject to disclosure, except as provided in subparagraph (1).
   (1)  Information in the confidential file maintained pursuant to paragraph “a” may be released on an individual basis to the following persons under the following circumstances:
   (a)  To authorized employees or agents of the department and the department of transportation as necessary to perform the duties of the department and the department of transportation pursuant to this chapter.
   (b)  To authorized employees of state or local law enforcement agencies, but only for the purpose of verifying that a person is lawfully in possession of a medical cannabis registration card issued pursuant to this chapter.
   (c)  To authorized employees of a medical cannabis dispensary, but only for the purpose of verifying that a person is lawfully in possession of a medical cannabis registration card issued pursuant to this chapter.
   (d)  To any other authorized persons recognized by the department by rule, but only for the purpose of verifying that a person is lawfully in possession of a medical cannabis registration card issued pursuant to this chapter.
   (2)  Release of information pursuant to subparagraph (1) shall be consistent with the federal Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191.
   2.  The department shall adopt rules pursuant to chapter 17A to administer this chapter which shall include but not be limited to rules to do all of the following:
   a.  Govern the manner in which the department shall consider applications for new and renewal medical cannabis registration cards.
   b.  Identify criteria and set forth procedures for including additional chronic or debilitating diseases or medical conditions or their medical treatments on the list of debilitating medical conditions that qualify for the use of medical cannabis. Procedures shall include a petition process and shall allow for public comment and public hearings before the medical advisory board.
   c.  Set forth additional chronic or debilitating diseases or medical conditions or associated medical treatments for inclusion on the list of debilitating medical conditions that qualify for the use of medical cannabis as recommended by the medical advisory board.
   d.  Establish, in consultation with medical cannabis manufacturers and medical cannabis dispensaries, the form and quantity of medical cannabis allowed to be dispensed to a patient or primary caregiver pursuant to this chapter. The form and quantity of medical cannabis shall be appropriate to serve the medical needs of patients with debilitating medical conditions.
   e.  Establish, in conjunction with the medical advisory board, requirements for the licensure of medical cannabis manufacturers and medical cannabis dispensaries and set forth procedures for medical cannabis manufacturers and medical cannabis dispensaries to obtain licenses.
   f.  Develop a dispensing system for medical cannabis within this state that provides for all of the following:
   (1)  Medical cannabis dispensaries within this state housed on secured grounds and operated by licensed medical cannabis dispensaries.
   (2)  The dispensing of medical cannabis to patients and their primary caregivers to occur at locations designated by the department.
   g.  Establish and collect annual fees from medical cannabis manufacturers and medical cannabis dispensaries to cover the costs associated with regulating and inspecting medical cannabis manufacturers and medical cannabis dispensaries.
   h.  Specify and implement procedures that address public safety including security procedures and product quality including measures to ensure contaminant-free cultivation of medical cannabis, safety, and labeling.
   i.  Establish and implement a medical cannabis inventory and delivery tracking system to track medical cannabis from production by a medical cannabis manufacturer through dispensing at a medical cannabis dispensary.
   Sec. 74.  NEW SECTION.  124E.12  Reciprocity.
   A valid medical cannabis registration card, or its equivalent, issued under the laws of another state that allows an out-of-state patient to possess or use medical cannabis in the jurisdiction of issuance shall have the same force and effect as a valid medical cannabis registration card issued pursuant to this chapter, except that an out-of-state patient in this state shall not obtain medical cannabis from a medical cannabis dispensary in this state and an out-of-state patient shall not smoke medical cannabis.
   Sec. 75.  NEW SECTION.  124E.13  Use of medical cannabis —— affirmative defenses.
   1.  A health care practitioner, including any authorized agent or employee thereof, shall not be subject to prosecution for the unlawful certification, possession, or administration of marijuana under the laws of this state for activities arising directly out of or directly related to the certification or use of medical cannabis in the treatment of a patient diagnosed with a debilitating medical condition as authorized by this chapter.
   2.  A medical cannabis manufacturer, including any authorized agent or employee thereof, shall not be subject to prosecution for manufacturing, possessing, cultivating, harvesting, packaging, processing, transporting, or supplying medical cannabis pursuant to this chapter.
   3.  A medical cannabis dispensary, including any authorized agent or employee thereof, shall not be subject to prosecution for transporting, supplying, or dispensing medical cannabis pursuant to this chapter.
   a.  In a prosecution for the unlawful possession of marijuana under the laws of this state, including but not limited to chapters 124 and 453B, it is an affirmative and complete defense to the prosecution that the patient has been diagnosed with a debilitating medical condition, used or possessed medical cannabis pursuant to a certification by a health care practitioner as authorized under this chapter, and, for a patient eighteen years of age or older, is in possession of a valid medical cannabis registration card.
   b.  In a prosecution for the unlawful possession of marijuana under the laws of this state, including but not limited to chapters 124 and 453B, it is an affirmative and complete defense to the prosecution that the person possessed medical cannabis because the person is a primary caregiver of a patient who has been diagnosed with a debilitating medical condition and is in possession of a valid medical cannabis registration card, and where the primary caregiver’s possession of the medical cannabis is on behalf of the patient and for the patient’s use only as authorized under this chapter.
   c.  If a patient or primary caregiver is charged with the commission of a crime and is not in possession of the person’s medical cannabis registration card, any charge or charges filed against the person shall be dismissed by the court if the person produces to the court prior to or at the person’s trial a medical cannabis registration card issued to that person and valid at the time the person was charged.
   4.  An agency of this state or a political subdivision thereof, including any law enforcement agency, shall not remove or initiate proceedings to remove a patient under the age of eighteen from the home of a parent based solely upon the parent’s or patient’s possession or use of medical cannabis as authorized under this chapter.
   Sec. 76.  NEW SECTION.  124E.14  Penalties.
   1.  A person who knowingly or intentionally possesses or uses medical cannabis in violation of the requirements of this chapter is subject to the penalties provided under chapters 124 and 453B.
   2.  A medical cannabis manufacturer or a medical cannabis dispensary shall be assessed a civil penalty of up to one thousand dollars per violation for any violation of this chapter in addition to any other applicable penalties.
   Sec. 77.  NEW SECTION.  124E.15  Use of medical cannabis —— smoking prohibited.
   A patient shall not consume medical cannabis possessed or used as authorized under this chapter by smoking medical cannabis.
   Sec. 78.  NEW SECTION.  124E.16  Employment.
   1.  An employer in this state may retain, create, reinstate, or enforce a written zero tolerance policy prohibiting the possession or use of medical cannabis or any derivative thereof including cannabidiol by an employee in the employer’s workplace, including but not limited to a policy prohibiting an employee from having any detectable amount of medical cannabis or any derivative thereof including cannabidiol in the employee’s body while at work.
   2.  An employer’s prohibition of the possession or use of medical cannabis or any derivative thereof including cannabidiol under this section shall not be considered to be an unfair or discriminatory employment practice under section 216.6.
   Sec. 79.  Section 730.5, subsection 11, Code 2017, is amended by adding the following new paragraph:
   NEW PARAGRAPH.  f.  Testing or taking action against an individual with a confirmed positive test result due to the individual’s use of medical cannabis as authorized under chapter 124E.
   Sec. 80.  REPEAL.  Chapter 124D, Code 2017, is repealed.
   Sec. 81.  EMERGENCY RULES.  The department may adopt emergency rules under section 17A.4, subsection 3, and section 17A.5, subsection 2, paragraph “b”, to implement the provisions of this division of this Act and the rules shall be effective immediately upon filing unless a later date is specified in the rules. Any rules adopted in accordance with this section shall also be published as a notice of intended action as provided in section 17A.4.
   Sec. 82.  TRANSITION PROVISIONS.  A medical cannabidiol registration card issued under chapter 124D prior to the effective date of this division of this Act, remains effective and continues in effect as issued for the twelve-month period following its issuance. This division of this Act does not preclude a medical cannabidiol registration card holder from seeking to renew the registration card under this division of this Act prior to the expiration of the twelve-month period.
   Sec. 83.  EFFECTIVE UPON ENACTMENT.  This division of this Act, being deemed of immediate importance, takes effect upon enactment.
DIVISION IX
DEPARTMENT OF TRANSPORTATION —— BIDDING PREQUALIFICATION

   Sec. 84.  Section 26.16, as enacted by 2017 Iowa Acts, Senate File 438, section 2, is amended to read as follows:
   26.16  Prequalification requirements prohibited —— exception.
   1.  A governmental entity shall not by ordinance, rule, or any other action relating to contracts for public improvements for which competitive bids are required by this chapter impose any requirement that directly or indirectly restricts potential bidders to any predetermined class of bidders defined by experience on similar projects, size of company, union membership, or any other criteria. However, a governmental entity shall require nonresident bidders to comply with section 73A.21, subsection 4.
   2.  Notwithstanding subsection 1, a governmental entity may require that each bidder for a public improvement for which competitive bids are required by this chapter to file with the governmental entity a statement showing the bidder’s financial standing, equipment, and experience in the execution of like or similar work. The statement shall be filed with the agency prior to the letting at which the bidder expects to bid. The governmental entity may, in advance of the letting, notify the bidder as to the amount and the nature of the work for which the bidder is deemed qualified to bid. A bidder who is prequalified under this subsection by the governmental entity shall be deemed qualified for any public improvement by the governmental entity for which competitive bids are required by this chapter and shall submit proof of the prequalification in a manner determined by the governmental entity if required to do so by the governmental entity.>>

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HALL of Woodbury