H.F. _____ Section 1. Section 124D.2, Code 2017, is amended by striking 1 the section and inserting in lieu thereof the following: 2 124D.2 Definitions. 3 As used in this chapter: 4 1. “Cannabidiol” means a nonpsychoactive cannabidiol found 5 in the plant Cannabis sativa L. or Cannabis indica or any 6 other preparation thereof that is essentially free from plant 7 material, and has a tetrahydrocannabinol level of no more than 8 three percent. 9 2. “Debilitating medical condition” means intractable 10 epilepsy and any other medical condition or its treatment 11 recommended by the university of Iowa carver college of 12 medicine and approved by the general assembly by law. 13 3. “Department” means the department of public health. 14 4. “Health care practitioner” means an individual licensed 15 under chapter 148 to practice medicine and surgery or 16 osteopathic medicine and surgery who provides specialty care 17 for a resident of this state for one or more debilitating 18 medical conditions. 19 5. “Intractable epilepsy” means an epileptic seizure 20 disorder for which standard medical treatment does not prevent 21 or significantly ameliorate recurring, uncontrolled seizures or 22 for which standard medical treatment results in harmful side 23 effects. 24 6. “Medical cannabidiol dispensary” means an entity located 25 in this state and licensed by the department that acquires 26 cannabidiol from a medical cannabidiol manufacturer licensed in 27 this state for the purpose of dispensing cannabidiol in this 28 state pursuant to this chapter. 29 7. “Medical cannabidiol manufacturer” means an entity 30 located in this state and licensed by the department to 31 process, package, transport, and supply cannabidiol to a 32 medical cannabidiol dispensary pursuant to the provisions of 33 this chapter. 34 8. “Medical cannabis grower” means an entity located in 35 -1- LSB 1003YC (13) 87 rh/rj 1/ 20

H.F. _____ this state and licensed by the department to grow, cultivate, 1 harvest, and transport cannabis pursuant to the provisions of 2 this chapter. 3 9. “Primary caregiver” means a person, at least eighteen 4 years of age, who has been designated by a patient’s health 5 care practitioner or by a person having custody of a patient, 6 as being necessary to take responsibility for managing the 7 well-being of the patient with respect to the medical use of 8 cannabidiol pursuant to the provisions of this chapter. 9 Sec. 2. Section 124D.3, Code 2017, is amended to read as 10 follows: 11 124D.3 Neurologist Health care practitioner recommendation 12 —— medical use of cannabidiol. 13 A neurologist health care practitioner who has examined 14 and treated a patient suffering from intractable epilepsy 15 a debilitating medical condition may provide but has no 16 duty to provide a written recommendation for the patient’s 17 medical use of cannabidiol to treat or alleviate symptoms of 18 intractable epilepsy the debilitating medical condition if no 19 other satisfactory alternative treatment options exist for the 20 patient and all of the following conditions apply: 21 1. The patient is a permanent resident of this state. 22 2. A neurologist health care practitioner has treated the 23 patient for intractable epilepsy for at least six months a 24 debilitating medical condition . For purposes of this treatment 25 period, and notwithstanding section 124D.2, subsection 4 , 26 treatment provided by a neurologist health care practitioner 27 may include treatment by an out-of-state licensed neurologist 28 health care practitioner in good standing. 29 3. The neurologist has tried alternative treatment options 30 that have not alleviated the patient’s symptoms. 31 4. 3. The neurologist health care practitioner determines 32 the risks of recommending the medical use of cannabidiol are 33 reasonable in light of the potential benefit for the patient. 34 5. 4. The neurologist health care practitioner maintains a 35 -2- LSB 1003YC (13) 87 rh/rj 2/ 20

H.F. _____ patient treatment plan. 1 Sec. 3. Section 124D.4, subsection 1, paragraph c, Code 2 2017, is amended to read as follows: 3 c. Requests the patient’s neurologist health care 4 practitioner to submit a written recommendation to the 5 department signed by the neurologist health care practitioner 6 that the patient may benefit from the medical use of 7 cannabidiol pursuant to section 124D.3 . 8 Sec. 4. Section 124D.4, subsection 1, paragraph d, 9 subparagraph (3), Code 2017, is amended to read as follows: 10 (3) Full name, address, and telephone number of the 11 patient’s neurologist health care practitioner . 12 Sec. 5. Section 124D.4, subsection 1, Code 2017, is amended 13 by adding the following new paragraph: 14 NEW PARAGRAPH . e. Submits a cannabidiol registration card 15 fee of one hundred dollars to the department. If the patient 16 attests to receiving social security disability benefits, 17 supplemental security insurance benefits, or being enrolled in 18 the medical assistance program, the fee shall be twenty-five 19 dollars. 20 Sec. 6. Section 124D.4, subsection 3, paragraph b, Code 21 2017, is amended to read as follows: 22 b. Requests a patient’s neurologist health care practitioner 23 to submit a written recommendation to the department signed by 24 the neurologist health care practitioner that a patient in the 25 primary caregiver’s care may benefit from the medical use of 26 cannabidiol pursuant to section 124D.3 . 27 Sec. 7. Section 124D.4, subsection 3, paragraph c, 28 subparagraph (4), Code 2017, is amended to read as follows: 29 (4) Full name, address, and telephone number of the 30 patient’s neurologist health care practitioner . 31 Sec. 8. Section 124D.5, subsection 1, paragraph b, 32 subparagraph (1), Code 2017, is amended by adding the following 33 new subparagraph division: 34 NEW SUBPARAGRAPH DIVISION . (c) To authorized employees 35 -3- LSB 1003YC (13) 87 rh/rj 3/ 20

H.F. _____ of a medical cannabidiol dispensary, but only for the purpose 1 of verifying that a person is lawfully in possession of a 2 cannabidiol registration card issued pursuant to this chapter. 3 Sec. 9. Section 124D.5, subsection 2, Code 2017, is amended 4 by striking the subsection and inserting in lieu thereof the 5 following: 6 2. The department shall adopt rules pursuant to chapter 7 17A to administer this chapter which shall include but not be 8 limited to rules to do all of the following: 9 a. Govern the manner in which the department shall consider 10 applications for new and renewal cannabidiol registration 11 cards. 12 b. Establish requirements for the suspension and revocation 13 of cannabidiol registration cards and medical cannabis grower, 14 medical cannabidiol dispensary, and medical cannabidiol 15 manufacturer licenses. 16 c. Establish requirements for the licensure of medical 17 cannabis growers, medical cannabidiol manufacturers, and 18 medical cannabidiol dispensaries and set forth procedures for 19 medical cannabis growers, medical cannabidiol manufacturers, 20 and medical cannabidiol dispensaries to obtain licenses. 21 d. Develop a dispensing system for medical cannabidiol 22 dispensaries to dispense cannabidiol within this state that 23 provides for all of the following: 24 (1) Medical cannabidiol dispensaries within this state 25 housed on secured grounds. 26 (2) The dispensing of cannabidiol to patients and their 27 primary caregivers in person to occur at medical cannabidiol 28 dispensary locations designated by the department. 29 e. Establish and collect annual fees from medical cannabis 30 growers, medical cannabidiol manufacturers, and medical 31 cannabidiol dispensaries to cover the costs associated with 32 regulating and inspecting medical cannabis growers, medical 33 cannabidiol manufacturers, and medical cannabis dispensaries. 34 f. Specify and implement procedures that address public 35 -4- LSB 1003YC (13) 87 rh/rj 4/ 20

H.F. _____ safety including security procedures and product quality 1 including measures to ensure contaminant-free cultivation 2 of cannabis, safety in the medical use of cannabidiol, and 3 appropriate labeling of cannabidiol by medical cannabidiol 4 dispensaries. 5 g. Establish and implement a real-time, statewide 6 cannabidiol registry management sale tracking system that 7 is available to medical cannabidiol dispensaries on a 8 twenty-four-hour-day, seven-day-a-week basis for the purpose 9 of verifying that a person is lawfully in possession of 10 a cannabidiol registration card issued pursuant to this 11 chapter and for tracking the date of the sale and quantity of 12 cannabidiol purchased by or dispensed to a patient or a primary 13 caregiver. 14 h. Establish and implement a real-time global positioning, 15 transportation, and delivery tracking system to track 16 cannabis from cultivation by a medical cannabis grower through 17 production of cannabidiol by a cannabidiol manufacturer through 18 dispensing of cannabidiol at a cannabidiol dispensary. 19 Sec. 10. Section 124D.6, subsections 1 and 2, Code 2017, are 20 amended to read as follows: 21 1. a. A recommendation for the possession or use of 22 cannabidiol as authorized by this chapter shall be provided 23 exclusively by a neurologist health care practitioner for a 24 patient who has been diagnosed with intractable epilepsy a 25 debilitating medical condition . 26 b. Cannabidiol provided exclusively pursuant to the 27 recommendation of a neurologist shall be obtained from an 28 out-of-state source and health care practitioner shall only be 29 recommended for oral or transdermal administration. 30 c. A neurologist health care practitioner shall be the sole 31 authorized recommender as part of the treatment plan by the 32 neurologist health care practitioner of a patient diagnosed 33 with intractable epilepsy a debilitating medical condition . 34 A neurologist health care practitioner shall have the sole 35 -5- LSB 1003YC (13) 87 rh/rj 5/ 20

H.F. _____ authority to recommend the use or amount of cannabidiol, 1 if any, in the treatment plan of a patient diagnosed with 2 intractable epilepsy a debilitating medical condition . 3 2. A neurologist health care practitioner , including 4 any authorized agent thereof, shall not be subject to 5 prosecution for the unlawful recommendation, possession, or 6 administration of marijuana under the laws of this state for 7 activities arising directly out of or directly related to 8 the recommendation or use of cannabidiol in the treatment of 9 a patient diagnosed with intractable epilepsy a debilitating 10 medical condition . 11 Sec. 11. Section 124D.6, Code 2017, is amended by adding the 12 following new subsections: 13 NEW SUBSECTION . 2A. A medical cannabis grower, including 14 any authorized agent or employee thereof, shall not be subject 15 to prosecution for possessing, growing, cultivating, or 16 harvesting cannabis pursuant to this chapter. 17 NEW SUBSECTION . 2B. A medical cannabidiol manufacturer, 18 including any authorized agent or employee thereof, shall 19 not be subject to prosecution for possessing, manufacturing, 20 processing, packaging, transporting, or supplying cannabidiol 21 pursuant to this chapter. 22 NEW SUBSECTION . 2C. A medical cannabidiol dispensary, 23 including any authorized agent or employee thereof, shall 24 not be subject to prosecution for possessing, packaging, or 25 dispensing medical cannabidiol pursuant to this chapter. 26 Sec. 12. Section 124D.6, subsection 3, paragraphs a and b, 27 Code 2017, are amended to read as follows: 28 a. In a prosecution for the unlawful possession of marijuana 29 under the laws of this state, including but not limited to 30 chapters 124 and 453B , it is an affirmative and complete 31 defense to the prosecution that the patient has been diagnosed 32 with intractable epilepsy a debilitating medical condition , 33 used or possessed cannabidiol pursuant to a recommendation by a 34 neurologist health care practitioner as authorized under this 35 -6- LSB 1003YC (13) 87 rh/rj 6/ 20

H.F. _____ chapter , and, for a patient eighteen years of age or older, is 1 in possession of a valid cannabidiol registration card. 2 b. In a prosecution for the unlawful possession of 3 marijuana under the laws of this state, including but not 4 limited to chapters 124 and 453B , it is an affirmative and 5 complete defense to the prosecution that the person possessed 6 cannabidiol because the person is a primary caregiver of a 7 patient who has been diagnosed with intractable epilepsy a 8 debilitating medical condition and is in possession of a 9 valid cannabidiol registration card, and where the primary 10 caregiver’s possession of the cannabidiol is on behalf of the 11 patient and for the patient’s use only as authorized under this 12 chapter . 13 Sec. 13. NEW SECTION . 124D.9 Medical cannabis grower 14 licensure. 15 1. The department shall license medical cannabis growers to 16 grow, cultivate, harvest, and transport cannabis within this 17 state consistent with the provisions of this chapter. 18 2. The department shall consider the following factors in 19 determining whether to license a medical cannabis grower: 20 a. The technical expertise of the medical cannabis grower 21 in growing, breeding, cultivating, and harvesting cannabis for 22 medical use. 23 b. The qualifications of the medical cannabis grower’s 24 employees. 25 c. The long-term financial stability of the medical cannabis 26 grower. 27 d. The ability to provide appropriate security measures on 28 the premises of the medical cannabis grower. 29 e. Whether the medical cannabis grower has demonstrated 30 an ability to meet certain cannabis production needs for 31 medical use regarding the range of recommended dosages for 32 each debilitating medical condition, the range of chemical 33 compositions of any plant of the genus cannabis that will 34 likely be medically beneficial for each of the debilitating 35 -7- LSB 1003YC (13) 87 rh/rj 7/ 20

H.F. _____ medical conditions, and the form of the cannabis grown for 1 medical use in the manner determined by the department pursuant 2 to rule. 3 3. Each entity submitting an application for licensure as a 4 medical cannabis grower shall pay a nonrefundable application 5 fee of five thousand dollars to the department. 6 Sec. 14. NEW SECTION . 124D.10 Medical cannabis growers. 7 1. The operating documents of a medical cannabis grower 8 shall include all of the following: 9 a. Procedures for the oversight of the medical cannabis 10 grower and procedures to ensure accurate recordkeeping. 11 b. Procedures for the implementation of appropriate security 12 measures to deter and prevent the theft of cannabis grown for 13 medical use and unauthorized entrance into areas containing 14 cannabis grown for medical use. 15 2. A medical cannabis grower shall implement security 16 requirements, including requirements for protection of each 17 location by a fully operational security alarm system, facility 18 access controls, perimeter intrusion detection systems, and a 19 personnel identification system. 20 3. A medical cannabis grower shall install and operate on a 21 twenty-four-hour basis a real-time audio and video monitoring 22 system on the grounds and in all buildings of the medical 23 cannabis grower. The information contained in the monitoring 24 system is confidential and shall not be disclosed except to 25 authorized employees or agents of the department as necessary 26 to perform the duties of the department under this chapter or 27 pursuant to court order. Such information shall be stored 28 and retained by the medical cannabis grower for a minimum of 29 six months from the date such audio and video information is 30 created. 31 4. A medical cannabis grower shall not share office space 32 with, refer patients to, or have any financial relationship 33 with a health care practitioner. 34 5. The location of a medical cannabis grower shall be 35 -8- LSB 1003YC (13) 87 rh/rj 8/ 20

H.F. _____ physically separate and off-site from the location of a medical 1 cannabidiol manufacturer and a medical cannabidiol dispensary. 2 6. A medical cannabis grower shall not permit any person to 3 consume cannabis grown for medical use on the property of the 4 medical cannabis grower. 5 7. A medical cannabis grower is subject to reasonable 6 inspection by the department. 7 8. a. A medical cannabis grower shall not employ a person 8 who is under eighteen years of age or who has been convicted of 9 any felony offense. 10 b. An employee of a medical cannabis grower shall be subject 11 to a background investigation conducted by the division of 12 criminal investigation of the department of public safety and a 13 national criminal history background check. 14 c. An employee of a medical cannabis grower shall be subject 15 to periodic drug testing as determined by the department 16 pursuant to rule. 17 9. A medical cannabis grower shall not operate in any 18 location within one thousand feet of a public or private school 19 existing before the date of the medical cannabis grower’s 20 licensure by the department. 21 10. A medical cannabis grower shall not engage in any 22 advertising relating to the medical cannabis grower. 23 11. a. A medical cannabis grower shall provide a reliable 24 and ongoing supply of cannabis grown for medical use to medical 25 cannabidiol manufacturers pursuant to this chapter. 26 b. All growing, cultivating, and harvesting of medical 27 cannabis shall take place in an enclosed, locked facility 28 at a physical address provided to the department during the 29 licensure process. 30 c. A medical cannabis grower shall supply a reliable and 31 ongoing amount of cannabidiol to treat every debilitating 32 medical condition listed in this chapter. 33 12. A medical cannabis grower shall pay an annual fee 34 determined by the department equal to the cost of regulating 35 -9- LSB 1003YC (13) 87 rh/rj 9/ 20

H.F. _____ and inspecting the grower during that year. 1 Sec. 15. NEW SECTION . 124D.11 Medical cannabidiol 2 manufacturer licensure. 3 1. The department shall license medical cannabidiol 4 manufacturers to process, package, transport, and supply 5 cannabidiol within this state consistent with the provisions of 6 this chapter. 7 2. The department shall consider the following factors 8 in determining whether to license a medical cannabidiol 9 manufacturer: 10 a. The technical expertise of the medical cannabidiol 11 manufacturer in processing, packaging, transporting, and 12 supplying cannabidiol. 13 b. The qualifications of the medical cannabidiol 14 manufacturer’s employees. 15 c. The long-term financial stability of the medical 16 cannabidiol manufacturer. 17 d. The ability to provide appropriate security measures on 18 the premises of the medical cannabidiol manufacturer. 19 3. The department shall require each medical cannabidiol 20 manufacturer to contract with the state hygienic laboratory at 21 the university of Iowa in Iowa City to test the cannabidiol 22 produced by the medical cannabidiol manufacturer as to content, 23 contamination, and consistency. The department shall require 24 the state hygienic laboratory to report testing results to the 25 medical cannabidiol manufacturer in a manner determined by the 26 department pursuant to rule. 27 4. Each entity submitting an application for licensure as 28 a medical cannabidiol manufacturer shall pay a nonrefundable 29 application fee of five thousand dollars to the department. 30 Sec. 16. NEW SECTION . 124D.12 Medical cannabidiol 31 manufacturers. 32 1. A medical cannabidiol manufacturer shall pay the cost of 33 all state hygienic laboratory testing. 34 2. The operating documents of a medical cannabidiol 35 -10- LSB 1003YC (13) 87 rh/rj 10/ 20

H.F. _____ manufacturer shall include all of the following: 1 a. Procedures for the oversight of the medical cannabidiol 2 manufacturer and procedures to ensure accurate recordkeeping. 3 b. Procedures for the implementation of appropriate security 4 measures to deter and prevent the theft of cannabidiol and 5 unauthorized entrance into areas containing cannabidiol. 6 3. A medical cannabidiol manufacturer shall implement 7 security requirements, including requirements for protection 8 of each location by a fully operational security alarm system, 9 facility access controls, perimeter intrusion detection 10 systems, and a personnel identification system. 11 4. A medical cannabidiol manufacturer shall install and 12 operate on a twenty-four-hour basis a real-time audio and 13 video monitoring system on the grounds and in all buildings 14 of the medical cannabidiol manufacturer. The information 15 contained in the monitoring system is confidential and shall 16 not be disclosed except to authorized employees or agents 17 of the department as necessary to perform the duties of the 18 department under this chapter or pursuant to court order. 19 Such information shall be stored and retained by the medical 20 cannabidiol manufacturer for a minimum of six months from the 21 date such audio and video information is created. 22 5. A medical cannabidiol manufacturer shall not share 23 office space with, refer patients to, or have any financial 24 relationship with a health care practitioner. 25 6. The location of a medical cannabidiol manufacturer shall 26 be physically separate and off-site from the location of a 27 medical cannabis grower and a medical cannabidiol dispensary. 28 A medical cannabidiol manufacturer shall not permit any 29 person to consume cannabidiol on the property of the medical 30 cannabidiol manufacturer. A medical cannabidiol manufacturer 31 is subject to reasonable inspection by the department. 32 a. A medical cannabidiol manufacturer shall not employ a 33 person who is under twenty-one years of age or who has been 34 convicted of any felony offense. 35 -11- LSB 1003YC (13) 87 rh/rj 11/ 20

H.F. _____ b. An employee of a medical cannabidiol manufacturer shall 1 be subject to a background investigation conducted by the 2 division of criminal investigation of the department of public 3 safety and a national criminal history background check. 4 c. An employee of a medical cannabidiol manufacturer shall 5 be subject to periodic drug testing as determined by the 6 department pursuant to rule. 7 7. A medical cannabidiol manufacturer shall not engage 8 in any advertising relating to the medical cannabidiol 9 manufacturer. 10 8. a. All processing and packaging of cannabidiol shall 11 take place in an enclosed, locked facility at a physical 12 address provided to the department during the licensure 13 process. 14 b. A medical cannabidiol manufacturer shall supply a 15 reliable and ongoing amount of cannabidiol oil to treat every 16 debilitating medical condition listed in this chapter. 17 9. A medical cannabidiol manufacturer shall pay an 18 annual fee determined by the department equal to the cost of 19 regulating and inspecting the medical cannabidiol manufacturer 20 during that year. 21 Sec. 17. NEW SECTION . 124D.13 Medical cannabidiol 22 dispensary licensure. 23 1. a. The department shall license medical cannabidiol 24 dispensaries to dispense cannabidiol for medical use within 25 this state consistent with the provisions of this chapter. 26 b. Information submitted during the application process 27 shall be confidential until the medical cannabidiol dispensary 28 is licensed by the department unless otherwise protected from 29 disclosure under state or federal law. 30 2. The department shall consider the following factors 31 in determining whether to license a medical cannabidiol 32 dispensary: 33 a. The technical expertise of the medical cannabidiol 34 dispensary in packaging and dispensing cannabidiol for medical 35 -12- LSB 1003YC (13) 87 rh/rj 12/ 20

H.F. _____ use. 1 b. The qualifications of the medical cannabidiol 2 dispensary’s employees. 3 c. The long-term financial stability of the medical 4 cannabidiol dispensary. 5 d. The ability to provide appropriate security measures on 6 the premises of the medical cannabidiol dispensary. 7 e. The medical cannabidiol dispensary’s projection and 8 ongoing assessment of fees for the purchase or dispensing of 9 medical cannabidiol for patients with debilitating medical 10 conditions. 11 3. Each entity submitting an application for licensure as 12 a medical cannabidiol dispensary shall pay a nonrefundable 13 application fee of five thousand dollars to the department. 14 4. A medical cannabidiol dispensary shall pay an annual fee 15 determined by the department equal to the cost of regulating 16 and inspecting the medical cannabidiol dispensary during that 17 year. 18 Sec. 18. NEW SECTION . 124D.14 Medical cannabidiol 19 dispensaries. 20 1. a. The medical cannabidiol dispensaries shall be located 21 throughout the state based on geographical need for patient 22 access. 23 b. A medical cannabidiol dispensary may dispense cannabidiol 24 for medical use pursuant to the provisions of this chapter but 25 shall only dispense cannabidiol for medical use in oil form. 26 2. The operating documents of a medical cannabidiol 27 dispensary shall include all of the following: 28 a. Procedures for the oversight of the medical cannabidiol 29 dispensary and procedures to ensure accurate recordkeeping. 30 b. Procedures for the implementation of appropriate security 31 measures to deter and prevent the theft of cannabidiol grown 32 for medical use and unauthorized entrance into areas containing 33 cannabidiol grown for medical use. 34 3. A medical cannabidiol dispensary shall implement 35 -13- LSB 1003YC (13) 87 rh/rj 13/ 20

H.F. _____ security requirements, including requirements for protection 1 by a fully operational security alarm system, facility 2 access controls, perimeter intrusion detection systems, and a 3 personnel identification system. 4 4. A medical cannabidiol dispensary shall install and 5 operate on a twenty-four-hour basis a real-time audio and 6 video monitoring system on the grounds and in all buildings 7 of the medical cannabidiol dispensary. The information 8 contained in the monitoring system is confidential and shall 9 not be disclosed except to authorized employees or agents 10 of the department as necessary to perform the duties of the 11 department or pursuant to court order. Such information shall 12 be stored and retained by the medical cannabidiol dispensary 13 for a minimum of six months from the date the audio and video 14 information is created. 15 5. A medical cannabidiol dispensary shall not share 16 office space with, refer patients to, or have any financial 17 relationship with a health care practitioner. 18 6. The location of a medical cannabidiol dispensary shall be 19 physically separate and off-site from the location of a medical 20 cannabis grower and a medical cannabidiol manufacturer. 21 7. A medical cannabidiol dispensary shall not permit any 22 person to consume cannabidiol grown for medical use on the 23 property of the medical cannabidiol dispensary. 24 8. A medical cannabidiol dispensary is subject to 25 reasonable inspection by the department. 26 9. a. A medical cannabidiol dispensary shall not employ 27 a person who is under eighteen years of age or who has been 28 convicted of a disqualifying felony offense. 29 b. An employee of a medical cannabidiol dispensary shall be 30 subject to a background investigation conducted by the division 31 of criminal investigation of the department of public safety 32 and a national criminal history background check. 33 c. An employee of a medical cannabidiol dispensary shall 34 be subject to periodic drug testing as determined by the 35 -14- LSB 1003YC (13) 87 rh/rj 14/ 20

H.F. _____ department pursuant to rule. 1 10. A medical cannabidiol dispensary shall not operate in 2 any location within one thousand feet of a public or private 3 school existing before the date of the medical cannabidiol 4 dispensary’s licensure by the department. 5 11. A medical cannabidiol dispensary shall not engage in any 6 advertising relating to the medical cannabidiol dispensary. 7 12. Prior to dispensing of any cannabidiol for medical use 8 in oil form, a medical cannabidiol dispensary shall do all of 9 the following: 10 a. Verify that the medical cannabidiol dispensary has 11 received a valid cannabidiol registration card from a patient 12 or a patient’s primary caregiver, if applicable. 13 b. Assign a tracking number to any cannabidiol for medical 14 use dispensed from the medical cannabidiol dispensary. 15 13. A medical cannabidiol dispensary shall employ a 16 pharmacist licensed pursuant to chapter 155A. 17 Sec. 19. NEW SECTION . 124D.15 Fees. 18 Cannabidiol registration card fees and medical cannabis 19 grower and medical cannabidiol manufacturer and medical 20 cannabidiol dispensary application and annual fees collected 21 by the department pursuant to this chapter shall be retained 22 by the department, shall be considered repayment receipts as 23 defined in section 8.2 , and shall be used for the purpose 24 of regulating medical cannabis growers, medical cannabidiol 25 manufacturers, and medical cannabidiol dispensaries and 26 for other expenses necessary for the administration of this 27 chapter. Notwithstanding section 8.33, moneys that remain 28 unencumbered or unobligated at the end of the fiscal year shall 29 not revert to the general fund of the state. 30 Sec. 20. NEW SECTION . 124D.16 Reciprocity. 31 A valid cannabidiol registration card, or its equivalent, 32 issued under the laws of another state that allows an 33 out-of-state patient to purchase, possess, and use cannabidiol 34 for medical use in the jurisdiction of issuance shall have the 35 -15- LSB 1003YC (13) 87 rh/rj 15/ 20

H.F. _____ same force and effect as a valid cannabidiol registration card 1 issued pursuant to this chapter and allows an out-of-state 2 patient in this state to purchase cannabidiol for medical use 3 from a medical cannabidiol dispensary in this state and to 4 possess and use the cannabidiol for medical use in this state. 5 Sec. 21. NEW SECTION . 124D.17 Use of cannabidiol —— smoking 6 and vaping prohibited. 7 A patient shall not consume cannabidiol possessed or used as 8 authorized by this chapter by smoking or vaping cannabidiol. 9 Sec. 22. NEW SECTION . 124D.18 Penalties. 10 1. A person who knowingly or intentionally possesses or uses 11 cannabidiol in violation of the requirements of this chapter is 12 subject to the penalties provided under chapters 124 and 453B. 13 2. A medical cannabis grower, medical cannabidiol 14 manufacturer, or medical cannabidiol dispensary shall be 15 assessed a civil penalty of up to one thousand dollars per 16 violation for any violation of this chapter in addition to any 17 other applicable penalties. 18 3. A health care practitioner who makes what the health care 19 practitioner knows to be a false statement of material fact 20 on a written recommendation provided to a patient pursuant to 21 section 124D.3 or who submits what the person knows to be any 22 materially falsified or forged documentation in connection with 23 such a recommendation commits a class “C” felony. 24 4. A patient or primary caregiver who makes what the 25 person knows to be a false statement of material fact on a 26 cannabidiol registration card application submitted pursuant to 27 section 124D.4 or who submits what the person knows to be any 28 materially falsified or forged documentation in connection with 29 such an application commits a class “C” felony. 30 Sec. 23. REPORT —— RECOMMENDATION —— ACTION BY GENERAL 31 ASSEMBLY. 32 1. The university of Iowa carver college of medicine 33 and college of pharmacy shall, on or before July 1 of each 34 year, beginning July 1, 2018, submit a report detailing the 35 -16- LSB 1003YC (13) 87 rh/rj 16/ 20

H.F. _____ scientific literature, studies, and clinical trials regarding 1 the medical use of cannabidiol to the department of public 2 health and the general assembly. The report may recommend 3 additional debilitating medical conditions that qualify for 4 the medical use of cannabidiol and shall include a range of 5 recommended dosages for each debilitating medical condition and 6 the range of chemical compositions of any plant of the genus 7 Cannabis that will likely be medically beneficial for each of 8 the debilitating medical conditions. 9 2. The general assembly is requested to review any 10 additional debilitating medical conditions recommended and 11 submitted to the general assembly pursuant to subsection 1 12 during the following regular session of the general assembly 13 and to approve by law any additional debilitating medical 14 conditions during that regular session. 15 Sec. 24. REPEAL. Section 124D.7, Code 2017, is repealed. 16 Sec. 25. REPEAL. Section 124D.8, Code 2017, is repealed. 17 Sec. 26. EFFECTIVE DATE. The section of this Act repealing 18 section 124D.8, Code 2017, takes effect June 30, 2017. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to the medical cannabidiol Act, makes 23 related modifications, provides for civil and criminal 24 penalties and fees, makes an appropriation, and strikes 25 the repeal of Code chapter 124D before that repeal becomes 26 effective on July 1, 2017. 27 MEDICAL CANNABIDIOL ACT —— OVERVIEW. Code chapter 124D, 28 the medical cannabidiol Act, currently allows an Iowa 29 licensed neurologist who has examined and treated a patient 30 suffering from intractable epilepsy to provide a written 31 recommendation for the patient’s medical use of cannabidiol 32 to treat or alleviate symptoms of intractable epilepsy if 33 no other satisfactory alternative treatment options exist 34 and if certain conditions apply. A patient who receives a 35 -17- LSB 1003YC (13) 87 rh/rj 17/ 20

H.F. _____ written recommendation from the patient’s neurologist or 1 the patient’s primary caregiver is required to have a valid 2 cannabidiol registration card to use or possess cannabidiol 3 for medical purposes. The cannabidiol must be obtained from 4 an out-of-state source. The department of public health 5 is required to maintain a confidential file of the names 6 of each patient and primary caregiver to or for whom the 7 department issues a cannabidiol registration card and to keep 8 such information confidential except as otherwise allowed. 9 The medical cannabidiol Act provides affirmative defenses 10 to a neurologist, a patient, and a primary caregiver from 11 prosecution. A person who knowingly or intentionally possesses 12 or uses cannabidiol in violation of the medical cannabidiol 13 Act is subject to the penalties provided under Code chapters 14 124 (controlled substances) and 453B (excise taxes on unlawful 15 dealing in certain substances). 16 DEBILITATING MEDICAL CONDITIONS —— HEALTH CARE PRACTITIONER. 17 The bill defines a debilitating medical condition as 18 intractable epilepsy and any other medical condition or 19 its treatment recommended by the university of Iowa carver 20 college of medicine and approved by the general assembly by 21 law. “Health care practitioner” is defined to mean any Iowa 22 licensed physician who provides specialty care for one or more 23 debilitating medical conditions. 24 CANNABIDIOL REGISTRATION CARD FEE. The bill requires a 25 patient to submit a cannabidiol registration card fee to the 26 department of $100 or $25, if the patient is the recipient of 27 certain public assistance. 28 CONFIDENTIALITY. The bill provides that confidential 29 patient and primary caregiver cannabidiol registration card 30 information maintained by the department may be disclosed to 31 authorized employees of a medical cannabidiol dispensary under 32 certain circumstances. 33 MEDICAL CANNABIS GROWERS, MEDICAL CANNABIDIOL MANUFACTURERS, 34 AND MEDICAL CANNABIDIOL DISPENSARIES —— LICENSURE. The bill 35 -18- LSB 1003YC (13) 87 rh/rj 18/ 20

H.F. _____ requires the department to license medical cannabis growers, 1 medical cannabidiol manufacturers, and medical cannabidiol 2 dispensaries within this state. The department is directed to 3 consider several factors in determining whether to license a 4 medical cannabis grower, medical cannabidiol manufacturer, or 5 medical cannabidiol dispensary. 6 MEDICAL CANNABIS GROWERS, MEDICAL CANNABIDIOL MANUFACTURERS, 7 AND MEDICAL CANNABIDIOL DISPENSARIES —— ADDITIONAL 8 REQUIREMENTS. The bill provides that certain requirements 9 must be included in the operating documents of a medical 10 cannabis grower, medical cannabidiol manufacturer, or medical 11 cannabidiol dispensary. All three entities are prohibited from 12 engaging in certain activities and are subject to reasonable 13 inspection and reasonable restrictions by the department. 14 FEES. Cannabidiol registration card fees and medical 15 cannabidiol manufacturer application and annual fees collected 16 by the department shall be retained by the department, and 17 shall be used for the purpose of regulating medical cannabis 18 growers, medical cannabidiol manufacturers, and medical 19 cannabidiol dispensaries and for other expenses necessary for 20 the administration of the bill. 21 ADDITIONAL DEPARTMENT DUTIES —— RULES. The bill requires 22 the department to adopt rules relating to cannabidiol 23 registration cards and a dispensing system for medical 24 cannabidiol manufacturers, and requirements for the licensure 25 of medical cannabis growers, medical cannabidiol manufacturers, 26 and medical cannabidiol dispensaries, including annual 27 fees, public safety procedures, and the establishment and 28 implementation of statewide cannabidiol registry management 29 sale and delivery tracking systems. 30 RECIPROCITY. The bill provides that a valid cannabidiol 31 registration card, or its equivalent, issued under the laws 32 of another state allows an out-of-state patient to possess 33 or use medical cannabidiol in this state, and allows the 34 out-of-state patient to purchase medical cannabidiol from a 35 -19- LSB 1003YC (13) 87 rh/rj 19/ 20

H.F. _____ medical cannabidiol dispensary in this state. 1 USE OF CANNABIDIOL —— SMOKING AND VAPING PROHIBITED. The 2 bill provides that a patient shall not consume the cannabidiol 3 by smoking or vaping the cannabidiol. 4 USE OF MEDICAL CANNABIDIOL —— AFFIRMATIVE DEFENSES. 5 The bill provides prosecution immunity for a health care 6 practitioner, medical cannabis grower, medical cannabidiol 7 manufacturer, and medical cannabidiol dispensary, including 8 any authorized agents or employees thereof, for activities 9 undertaken by the health care practitioner, medical cannabis 10 grower, medical cannabidiol manufacturer, or medical 11 cannabidiol dispensary pursuant to the provisions of the bill. 12 PENALTIES. The bill provides certain criminal and civil 13 penalties for a person who knowingly or intentionally possesses 14 or uses cannabidiol in violation of the requirements of the 15 bill, and for a medical cannabis grower, medical cannabidiol 16 manufacturer, medical cannabidiol dispensary, health care 17 practitioner, or patient or primary caregiver in violation of 18 other provisions of the bill. 19 REPORT AND RECOMMENDATIONS. The bill requires the 20 university of Iowa carver college of medicine and college 21 of pharmacy to, on or before July 1 of each year, beginning 22 July 1, 2018, submit a report detailing the scientific 23 literature, studies, and clinical trials regarding the medical 24 use of cannabidiol to the department of public health and 25 the general assembly. The report may recommend additional 26 debilitating medical conditions that qualify for the medical 27 use of cannabidiol and shall include a range of recommended 28 dosages for each debilitating medical condition and the range 29 of chemical compositions of any plant of the genus cannabis 30 that will likely be medically beneficial for each of the 31 debilitating medical conditions. The general assembly is 32 requested to review any additional recommended debilitating 33 medical conditions submitted to the general assembly during the 34 next regular legislative session. 35 -20- LSB 1003YC (13) 87 rh/rj 20/ 20