Senate File 506 - Introduced SENATE FILE 506 BY COMMITTEE ON APPROPRIATIONS (SUCCESSOR TO SSB 1190) A BILL FOR An Act concerning the compassionate use of medical 1 cannabis Act, reclassifying marijuana, including 2 tetrahydrocannabinols, from a schedule I controlled 3 substance to a schedule II controlled substance, providing 4 for civil and criminal penalties and fees, and including 5 effective date provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 2665SV (1) 87 rh/rj

S.F. 506 Section 1. Section 124.204, subsection 4, paragraphs m and 1 u, Code 2017, are amended by striking the paragraphs. 2 Sec. 2. Section 124.204, subsection 7, Code 2017, is amended 3 by striking the subsection. 4 Sec. 3. Section 124.206, subsection 7, Code 2017, is amended 5 to read as follows: 6 7. Hallucinogenic substances. Unless specifically excepted 7 or unless listed in another schedule, any material, compound, 8 mixture, or preparation which contains any quantity of the 9 following substances , or, for purposes of paragraphs “a” and 10 “b” , which contains any of its salts, isomers, or salts of 11 isomers whenever the existence of such salts, isomers, or salts 12 of isomers is possible within the specific chemical designation 13 (for purposes of this paragraph only, the term “isomer” 14 includes the optical, positional, and geometric isomers) : 15 a. Marijuana when used for medicinal purposes pursuant to 16 rules of the board . 17 b. Tetrahydrocannabinols, meaning tetrahydrocannabinols 18 naturally contained in a plant of the genus cannabis (cannabis 19 plant) as well as synthetic equivalents of the substances 20 contained in the cannabis plant, or in the resinous extractives 21 of such plant, and synthetic substances, derivatives, and their 22 isomers with similar chemical structure and pharmacological 23 activity to those substances contained in the plant, such as 24 the following: 25 (1) 1 cis or trans tetrahydrocannabinol, and their optical 26 isomers. 27 (2) 6 cis or trans tetrahydrocannabinol, and their optical 28 isomers. 29 (3) 3,4 cis or trans tetrahydrocannabinol, and their 30 optical isomers. (Since nomenclature of these substances 31 is not internationally standardized, compounds of these 32 structures, regardless of numerical designation of atomic 33 positions covered.) 34 b. c. Nabilone [another name for nabilone: (+-) - 35 -1- LSB 2665SV (1) 87 rh/rj 1/ 30

S.F. 506 trans-3-(1,1-dimethylheptyl)-6,6a,7,8,10,10a-hexahydro-1- 1 hydroxy-6,6-dimethyl-9H-dibenzo[b,d]pyran-9-one]. 2 Sec. 4. Section 124.401, subsection 5, unnumbered paragraph 3 3, Code 2017, is amended to read as follows: 4 A person may knowingly or intentionally recommend, possess, 5 use, dispense, deliver, transport, or administer cannabidiol 6 medical cannabis if the recommendation, possession, use, 7 dispensing, delivery, transporting, or administering is in 8 accordance with the provisions of chapter 124D 124E . For 9 purposes of this paragraph, “cannabidiol” ”medical cannabis” 10 means the same as defined in section 124D.2 124E.2 . 11 Sec. 5. NEW SECTION . 124E.1 Short title. 12 This chapter shall be known and may be cited as the 13 “Compassionate Use of Medical Cannabis Act” . 14 Sec. 6. NEW SECTION . 124E.2 Definitions. 15 As used in this chapter: 16 1. “Debilitating medical condition” means any of the 17 following: 18 a. Cancer, if the underlying condition or treatment produces 19 one or more of the following: 20 (1) Intractable pain. 21 (2) Nausea or severe vomiting. 22 (3) Cachexia or severe wasting. 23 b. Multiple sclerosis. 24 c. Epilepsy or seizure disorders. 25 d. AIDS or HIV as defined in section 141A.1. 26 e. Glaucoma. 27 f. Hepatitis C. 28 g. Crohn’s disease or ulcerative colitis. 29 h. Amyotrophic lateral sclerosis. 30 i. Ehlers-Danlos syndrome. 31 j. Post-traumatic stress disorder. 32 k. Tourette’s syndrome. 33 l. Any terminal illness, with a probable life expectancy of 34 under one year, if the illness or its treatment produces one or 35 -2- LSB 2665SV (1) 87 rh/rj 2/ 30

S.F. 506 more of the following: 1 (1) Intractable pain. 2 (2) Nausea or severe vomiting. 3 (3) Cachexia or severe wasting. 4 m. Intractable pain. 5 n. Parkinson’s disease. 6 o. Muscular dystrophy. 7 p. Huntington’s disease. 8 q. Alzheimer’s disease. 9 r. Complex regional pain syndrome, type I and II. 10 s. Rheumatoid arthritis. 11 t. Any other chronic or debilitating disease or medical 12 condition or its medical treatment approved by the department 13 pursuant to rule. 14 2. “Department” means the department of public health. 15 3. “Disqualifying felony offense” means a violation under 16 federal or state law of a felony offense, which has as an 17 element the possession, use, or distribution of a controlled 18 substance, as defined in 21 U.S.C. §802(6). 19 4. “Enclosed, locked facility” means a closet, room, 20 greenhouse, or other enclosed area equipped with locks or other 21 security devices that permit access only by a cardholder. 22 5. “Health care practitioner” means an individual licensed 23 under chapter 148 to practice medicine and surgery or 24 osteopathic medicine and surgery or an individual licensed to 25 prescribe medicine in any other state who provides specialty 26 care for an Iowa resident for one or more of the debilitating 27 medical conditions provided in this chapter. 28 6. “Intractable pain” means a pain in which the cause of the 29 pain cannot be removed or otherwise treated with the consent 30 of the patient and which, in the generally accepted course of 31 medical practice, no relief or cure of the cause of the pain 32 is possible, or none has been found after reasonable efforts. 33 Reasonable efforts for relieving or curing the cause of the 34 pain may be determined on the basis of but are not limited to 35 -3- LSB 2665SV (1) 87 rh/rj 3/ 30

S.F. 506 any of the following: 1 a. When treating a nonterminally ill patient for intractable 2 pain, evaluation by the attending physician and one or more 3 physicians specializing in pain medicine or the treatment of 4 the area, system, or organ of the body perceived as the source 5 of the pain. 6 b. When treating a terminally ill patient, evaluation by 7 the attending physician who does so in accordance with the 8 level of care, skill, and treatment that would be recognized 9 by a reasonably prudent physician under similar conditions and 10 circumstances. 11 7. “Medical cannabis” means any species of the genus 12 cannabis plant, or any mixture or preparation of them, 13 including whole plant extracts and resins. 14 8. “Medical cannabis dispensary” means an entity licensed 15 under section 124E.8 that acquires medical cannabis from a 16 medical cannabis manufacturer in this state for the purpose 17 of dispensing medical cannabis in this state pursuant to this 18 chapter. 19 9. “Medical cannabis manufacturer” means an entity licensed 20 under section 124E.6 to manufacture and to possess, cultivate, 21 transport, or supply medical cannabis pursuant to the 22 provisions of this chapter. 23 10. “Primary caregiver” means a person, at least eighteen 24 years of age, who has been designated by a patient’s health 25 care practitioner or a person having custody of a patient, as 26 a necessary caretaker taking responsibility for managing the 27 well-being of the patient with respect to the use of medical 28 cannabis pursuant to the provisions of this chapter. 29 11. “Written certification” means a document signed by a 30 health care practitioner, with whom the patient has established 31 a patient-provider relationship, which states that the patient 32 has a debilitating medical condition and identifies that 33 condition and provides any other relevant information. 34 Sec. 7. NEW SECTION . 124E.3 Health care practitioner 35 -4- LSB 2665SV (1) 87 rh/rj 4/ 30

S.F. 506 certification —— duties. 1 1. Prior to a patient’s submission of an application for a 2 medical cannabis registration card pursuant to section 124E.4, 3 a health care practitioner shall do all of the following: 4 a. Determine, in the health care practitioner’s medical 5 judgment, whether the patient whom the health care practitioner 6 has examined and treated suffers from a debilitating medical 7 condition that qualifies for the use of medical cannabis under 8 this chapter, and if so determined, provide the patient with a 9 written certification of that diagnosis. 10 b. Provide explanatory information as provided by the 11 department to the patient about the therapeutic use of medical 12 cannabis. 13 c. Determine, on an annual basis, if the patient continues 14 to suffer from a debilitating medical condition and, if so, 15 issue the patient a new certification of that diagnosis. This 16 paragraph shall not apply if the patient is suffering from an 17 incurable debilitating medical condition. 18 d. Otherwise comply with all requirements established by the 19 department pursuant to rule. 20 2. A health care practitioner may provide, but has no duty 21 to provide, a written certification pursuant to this section. 22 Sec. 8. NEW SECTION . 124E.4 Medical cannabis registration 23 card. 24 1. Issuance to patient. The department may approve the 25 issuance of a medical cannabis registration card by the 26 department of transportation to a patient who: 27 a. Is at least eighteen years of age. 28 b. Is a permanent resident of this state. 29 c. Submits a written certification to the department signed 30 by the patient’s health care practitioner that the patient is 31 suffering from a debilitating medical condition. 32 d. Submits an application to the department, on a form 33 created by the department, in consultation with the department 34 of transportation, that contains all of the following: 35 -5- LSB 2665SV (1) 87 rh/rj 5/ 30

S.F. 506 (1) The patient’s full name, Iowa residence address, date 1 of birth, and telephone number. 2 (2) A copy of the patient’s valid photograph 3 identification. 4 (3) Full name, address, and telephone number of the 5 patient’s health care practitioner. 6 (4) Full name, residence address, date of birth, and 7 telephone number of each primary caregiver of the patient, if 8 any. 9 (5) Any other information required by rule. 10 e. Submits a medical cannabis registration card fee of one 11 hundred dollars to the department. If the patient attests to 12 receiving social security disability benefits, supplemental 13 security insurance payments, or being enrolled in the medical 14 assistance program, the fee shall be twenty-five dollars. 15 2. Patient card contents. A medical cannabis registration 16 card issued to a patient by the department of transportation 17 pursuant to subsection 1 shall contain, at a minimum, all of 18 the following: 19 a. The patient’s full name, Iowa residence address, and date 20 of birth. 21 b. The patient’s photograph. 22 c. The date of issuance and expiration of the registration 23 card. 24 d. Any other information required by rule. 25 3. Issuance to primary caregiver. For a patient in a 26 primary caregiver’s care, the department may approve the 27 issuance of a medical cannabis registration card by the 28 department of transportation to the primary caregiver who: 29 a. Submits a written certification to the department signed 30 by the patient’s health care practitioner that the patient in 31 the primary caregiver’s care is suffering from a debilitating 32 medical condition. 33 b. Submits an application to the department, on a form 34 created by the department, in consultation with the department 35 -6- LSB 2665SV (1) 87 rh/rj 6/ 30

S.F. 506 of transportation, that contains all of the following: 1 (1) The primary caregiver’s full name, residence address, 2 date of birth, and telephone number. 3 (2) The patient’s full name. 4 (3) A copy of the primary caregiver’s valid photograph 5 identification. 6 (4) Full name, address, and telephone number of the 7 patient’s health care practitioner. 8 (5) Any other information required by rule. 9 c. Submits a medical cannabis registration card fee of 10 twenty-five dollars to the department. 11 4. Primary caregiver card contents. A medical cannabis 12 registration card issued by the department of transportation to 13 a primary caregiver pursuant to subsection 3 shall contain, at 14 a minimum, all of the following: 15 a. The primary caregiver’s full name, residence address, and 16 date of birth. 17 b. The primary caregiver’s photograph. 18 c. The date of issuance and expiration of the registration 19 card. 20 d. The registration card number of each patient in the 21 primary caregiver’s care. If the patient in the primary 22 caregiver’s care is under the age of eighteen, the full name of 23 the patient’s parent or legal guardian. 24 e. Any other information required by rule. 25 5. Expiration date of card. A medical cannabis registration 26 card issued pursuant to this section shall expire one year 27 after the date of issuance and may be renewed. 28 6. Card issuance —— department of transportation. 29 a. The department may enter into a chapter 28E agreement 30 with the department of transportation to facilitate the 31 issuance of medical cannabis registration cards pursuant to 32 subsections 1 and 3. 33 b. The department of transportation may issue renewal 34 medical cannabis registration cards through an online or 35 -7- LSB 2665SV (1) 87 rh/rj 7/ 30

S.F. 506 in-person process. 1 Sec. 9. NEW SECTION . 124E.5 Medical advisory board —— 2 duties. 3 1. No later than August 15, 2017, the director of public 4 health shall establish a medical advisory board consisting of 5 nine practitioners representing the fields of neurology, pain 6 management, gastroenterology, oncology, psychiatry, pediatrics, 7 infectious disease, family medicine, and pharmacy, and three 8 patients or primary caregivers with valid medical cannabis 9 registration cards. The practitioners shall be nationally 10 board-certified in their area of specialty and knowledgeable 11 about the use of medical cannabis. 12 2. A quorum of the advisory board shall consist of seven 13 members. 14 3. The duties of the advisory board shall include but not be 15 limited to the following: 16 a. Reviewing and recommending to the department for 17 approval additional chronic or debilitating diseases or 18 medical conditions or their treatments as debilitating medical 19 conditions that qualify for the use of medical cannabis under 20 this chapter. 21 b. Accepting and reviewing petitions to add chronic or 22 debilitating diseases or medical conditions or their medical 23 treatments to the list of debilitating medical conditions that 24 qualify for the use of medical cannabis under this chapter. 25 c. Working with the department regarding the requirements 26 for the licensure of medical cannabis manufacturers and medical 27 cannabis dispensaries, including licensure procedures. 28 d. Advising the department regarding the location of 29 medical cannabis dispensaries throughout the state, the form 30 and quantity of allowable medical cannabis to be dispensed 31 to a patient or primary caregiver, and the general oversight 32 of medical cannabis manufacturers and medical cannabis 33 dispensaries in this state. 34 e. Convening at least twice per year to conduct public 35 -8- LSB 2665SV (1) 87 rh/rj 8/ 30

S.F. 506 hearings and to review and recommend for approval petitions, 1 which shall be maintained as confidential personal health 2 information, to add chronic or debilitating diseases or 3 medical conditions or their medical treatments to the list of 4 debilitating medical conditions that qualify for the use of 5 medical cannabis under this chapter. 6 f. Recommending improvements relating to the effectiveness 7 of the provisions of this chapter. 8 g. In making recommendations pursuant to this section, 9 consideration of the economic and financial impacts on patients 10 and the medical cannabis industry, and making recommendations 11 that minimize the extent of such impacts to the greatest extent 12 practicable. 13 Sec. 10. NEW SECTION . 124E.6 Medical cannabis manufacturer 14 licensure. 15 1. a. The department shall license at least four but no 16 more than twelve medical cannabis manufacturers to manufacture 17 medical cannabis within this state consistent with the 18 provisions of this chapter by December 1, 2017. The department 19 shall license new medical cannabis manufacturers or relicense 20 the existing medical cannabis manufacturers by December 1 of 21 each year. 22 b. Information submitted during the application process 23 shall be confidential until the medical cannabis manufacturer 24 is licensed by the department unless otherwise protected from 25 disclosure under state or federal law. 26 2. As a condition for licensure, a medical cannabis 27 manufacturer must agree to begin supplying medical cannabis to 28 medical cannabis dispensaries in this state by July 2, 2018. 29 3. The department shall consider the following factors in 30 determining whether to license a medical cannabis manufacturer: 31 a. The technical expertise of the medical cannabis 32 manufacturer regarding medical cannabis. 33 b. The qualifications of the medical cannabis manufacturer’s 34 ownership and management team. 35 -9- LSB 2665SV (1) 87 rh/rj 9/ 30

S.F. 506 c. The long-term financial stability of the medical cannabis 1 manufacturer. 2 d. The ability to provide appropriate security measures on 3 the premises of the medical cannabis manufacturer. 4 e. Whether the medical cannabis manufacturer has 5 demonstrated an ability to meet certain medical cannabis 6 production needs for medical use regarding the range of 7 recommended dosages for each debilitating medical condition, 8 the range of chemical compositions of any plant of the genus 9 cannabis that will likely be medically beneficial for each 10 of the debilitating medical conditions, and the form of the 11 medical cannabis in the manner determined by the department 12 pursuant to rule. 13 f. The medical cannabis manufacturer’s projection of and 14 ongoing assessment of fees on patients with debilitating 15 medical conditions. 16 g. The medical cannabis manufacturer’s experience in medical 17 cannabis production, plant extraction, and pharmaceutical 18 formulations. 19 4. The department shall require each medical cannabis 20 manufacturer to contract with a laboratory approved by the 21 department to test the medical cannabis produced by the 22 manufacturer. The department shall require that the laboratory 23 report testing results to the manufacturer in a manner 24 determined by the department pursuant to rule. 25 5. Each entity submitting an application for licensure 26 as a medical cannabis manufacturer shall pay a nonrefundable 27 application fee of fifteen thousand dollars to the department. 28 Sec. 11. NEW SECTION . 124E.7 Medical cannabis 29 manufacturers. 30 1. A medical cannabis manufacturer shall contract with a 31 laboratory approved by the department for purposes of testing 32 the medical cannabis manufactured by the medical cannabis 33 manufacturer as to content, contamination, and consistency. 34 The cost of all laboratory testing shall be paid by the medical 35 -10- LSB 2665SV (1) 87 rh/rj 10/ 30

S.F. 506 cannabis manufacturer. 1 2. The operating documents of a medical cannabis 2 manufacturer shall include all of the following: 3 a. Procedures for the oversight of the medical cannabis 4 manufacturer and procedures to ensure accurate recordkeeping. 5 b. Procedures for the implementation of appropriate security 6 measures to deter and prevent the theft of medical cannabis and 7 unauthorized entrance into areas containing medical cannabis. 8 3. A medical cannabis manufacturer shall implement security 9 requirements, including requirements for protection of each 10 location by a fully operational security alarm system, facility 11 access controls, perimeter intrusion detection systems, and a 12 personnel identification system. 13 4. A medical cannabis manufacturer shall not share 14 office space with, refer patients to, or have any financial 15 relationship with a health care practitioner. 16 5. A medical cannabis manufacturer shall not permit any 17 person to consume medical cannabis on the property of the 18 medical cannabis manufacturer. 19 6. A medical cannabis manufacturer is subject to reasonable 20 inspection by the department. 21 7. A medical cannabis manufacturer shall not employ a 22 person who is under eighteen years of age or who has been 23 convicted of a disqualifying felony offense. An employee 24 of a medical cannabis manufacturer shall be subject to a 25 background investigation conducted by the division of criminal 26 investigation of the department of public safety and a national 27 criminal history background check. 28 8. A medical cannabis manufacturer shall not operate in any 29 location, whether for manufacturing, cultivating, harvesting, 30 packaging, or processing, within one thousand feet of a public 31 or private school existing before the date of the medical 32 cannabis manufacturer’s licensure by the department. 33 9. A medical cannabis manufacturer shall comply with 34 reasonable restrictions set by the department relating to 35 -11- LSB 2665SV (1) 87 rh/rj 11/ 30

S.F. 506 signage, marketing, display, and advertising of medical 1 cannabis. 2 10. a. A medical cannabis manufacturer shall provide a 3 reliable and ongoing supply of medical cannabis to medical 4 cannabis dispensaries pursuant to this chapter. 5 b. All manufacturing, cultivating, harvesting, packaging, 6 and processing of medical cannabis shall take place in an 7 enclosed, locked facility at a physical address provided to the 8 department during the licensure process. 9 c. A medical cannabis manufacturer shall not manufacture 10 edible medical cannabis products utilizing food coloring. 11 d. A medical cannabis manufacturer shall manufacture a 12 reliable and ongoing supply of medical cannabis to treat every 13 debilitating medical condition listed in this chapter. 14 11. The department shall establish and collect an annual 15 fee from a medical cannabis manufacturer not to exceed the cost 16 of regulating and inspecting the manufacturer in the calendar 17 year. 18 Sec. 12. NEW SECTION . 124E.8 Medical cannabis dispensary 19 licensure. 20 1. a. The department shall license by April 2, 2018, twelve 21 medical cannabis dispensaries to dispense medical cannabis 22 within this state consistent with the provisions of this 23 chapter. The department shall license new medical cannabis 24 dispensaries or relicense the existing medical cannabis 25 dispensaries by December 1 of each year. 26 b. Information submitted during the application process 27 shall be confidential until the medical cannabis dispensary 28 is licensed by the department unless otherwise protected from 29 disclosure under state or federal law. 30 2. As a condition for licensure, a medical cannabis 31 dispensary must agree to begin supplying medical cannabis to 32 patients by July 16, 2018. 33 3. The department shall consider the following factors in 34 determining whether to license a medical cannabis dispensary: 35 -12- LSB 2665SV (1) 87 rh/rj 12/ 30

S.F. 506 a. The technical expertise of the medical cannabis 1 dispensary regarding medical cannabis. 2 b. The qualifications of the medical cannabis dispensary’s 3 employees. 4 c. The long-term financial stability of the medical cannabis 5 dispensary. 6 d. The ability to provide appropriate security measures on 7 the premises of the medical cannabis dispensary. 8 e. The medical cannabis dispensary’s projection and ongoing 9 assessment of fees for the purchase of medical cannabis on 10 patients with debilitating medical conditions. 11 4. Each entity submitting an application for licensure 12 as a medical cannabis dispensary shall pay a nonrefundable 13 application fee of fifteen thousand dollars to the department. 14 Sec. 13. NEW SECTION . 124E.9 Medical cannabis dispensaries. 15 1. a. Medical cannabis dispensaries shall be located based 16 on geographical need throughout the state to improve patient 17 access. 18 b. A medical cannabis dispensary may dispense medical 19 cannabis pursuant to the provisions of this chapter but shall 20 not dispense any medical cannabis in a form or quantity other 21 than the form or quantity allowed by the department pursuant 22 to rule. 23 2. The operating documents of a medical cannabis dispensary 24 shall include all of the following: 25 a. Procedures for the oversight of the medical cannabis 26 dispensary and procedures to ensure accurate recordkeeping. 27 b. Procedures for the implementation of appropriate security 28 measures to deter and prevent the theft of medical cannabis and 29 unauthorized entrance into areas containing medical cannabis. 30 3. A medical cannabis dispensary shall implement security 31 requirements, including requirements for protection by a fully 32 operational security alarm system, facility access controls, 33 perimeter intrusion detection systems, and a personnel 34 identification system. 35 -13- LSB 2665SV (1) 87 rh/rj 13/ 30

S.F. 506 4. A medical cannabis dispensary shall not share office 1 space with, refer patients to, or have any financial 2 relationship with a health care practitioner. 3 5. A medical cannabis dispensary shall not permit any person 4 to consume medical cannabis on the property of the medical 5 cannabis dispensary. 6 6. A medical cannabis dispensary is subject to reasonable 7 inspection by the department. 8 7. A medical cannabis dispensary shall not employ a 9 person who is under eighteen years of age or who has been 10 convicted of a disqualifying felony offense. An employee 11 of a medical cannabis dispensary shall be subject to a 12 background investigation conducted by the division of criminal 13 investigation of the department of public safety and a national 14 criminal history background check. 15 8. A medical cannabis dispensary shall not operate in any 16 location within one thousand feet of a public or private school 17 existing before the date of the medical cannabis dispensary’s 18 licensure by the department. 19 9. A medical cannabis dispensary shall comply with 20 reasonable restrictions set by the department relating to 21 signage, marketing, display, and advertising of medical 22 cannabis. 23 10. Prior to dispensing of any medical cannabis, a medical 24 cannabis dispensary shall do all of the following: 25 a. Verify that the medical cannabis dispensary has received 26 a valid medical cannabis registration card from a patient or a 27 patient’s primary caregiver, if applicable. 28 b. Assign a tracking number to any medical cannabis 29 dispensed from the medical cannabis dispensary. 30 c. (1) Properly package medical cannabis in compliance with 31 federal law regarding child resistant packaging and exemptions 32 for packaging for elderly patients, and label medical cannabis 33 with a list of all active ingredients and individually 34 identifying information, including all of the following: 35 -14- LSB 2665SV (1) 87 rh/rj 14/ 30

S.F. 506 (a) The name and date of birth of the patient and the 1 patient’s primary caregiver, if appropriate. 2 (b) The medical cannabis registration card numbers of the 3 patient and the patient’s primary caregiver, if applicable. 4 (c) The chemical composition of the medical cannabis. 5 (2) Proper packaging of medical cannabis shall include but 6 not be limited to all of the following: 7 (a) Warning labels regarding the use of medical cannabis by 8 a woman during pregnancy and while breastfeeding. 9 (b) Clearly labeled packaging indicating that an edible 10 medical cannabis product contains medical cannabis and which 11 packaging shall not imitate candy products or in any way make 12 the product marketable to children. 13 Sec. 14. NEW SECTION . 124E.10 Fees. 14 Medical cannabis registration card fees and medical cannabis 15 manufacturer and medical cannabis dispensary application 16 and annual fees collected by the department pursuant to 17 this chapter shall be retained by the department, shall be 18 considered repayment receipts as defined in section 8.2, and 19 shall be used for the purpose of regulating medical cannabis 20 manufacturers and medical cannabis dispensaries and for other 21 expenses necessary for the administration of this chapter. 22 Sec. 15. NEW SECTION . 124E.11 Department duties —— rules. 23 1. a. The department shall maintain a confidential file of 24 the names of each patient to or for whom the department issues 25 a medical cannabis registration card, the name of each primary 26 caregiver to whom the department issues a medical cannabis 27 registration card under section 124E.4, and the names of each 28 health care practitioner who provides a written certification 29 for medical cannabis pursuant to this chapter. 30 b. Individual names contained in the file shall be 31 confidential and shall not be subject to disclosure, except as 32 provided in subparagraph (1). 33 (1) Information in the confidential file maintained 34 pursuant to paragraph “a” may be released on an individual basis 35 -15- LSB 2665SV (1) 87 rh/rj 15/ 30

S.F. 506 to the following persons under the following circumstances: 1 (a) To authorized employees or agents of the department and 2 the department of transportation as necessary to perform the 3 duties of the department and the department of transportation 4 pursuant to this chapter. 5 (b) To authorized employees of state or local law 6 enforcement agencies, but only for the purpose of verifying 7 that a person is lawfully in possession of a medical cannabis 8 registration card issued pursuant to this chapter. 9 (c) To authorized employees of a medical cannabis 10 dispensary, but only for the purpose of verifying that a person 11 is lawfully in possession of a medical cannabis registration 12 card issued pursuant to this chapter. 13 (d) To any other authorized persons recognized by the 14 department by rule, but only for the purpose of verifying 15 that a person is lawfully in possession of a medical cannabis 16 registration card issued pursuant to this chapter. 17 (2) Release of information pursuant to subparagraph 18 (1) shall be consistent with the federal Health Insurance 19 Portability and Accountability Act of 1996, Pub. L. No. 20 104-191. 21 2. The department shall adopt rules pursuant to chapter 22 17A to administer this chapter which shall include but not be 23 limited to rules to do all of the following: 24 a. Govern the manner in which the department shall consider 25 applications for new and renewal medical cannabis registration 26 cards. 27 b. Identify criteria and set forth procedures for 28 including additional chronic or debilitating diseases or 29 medical conditions or their medical treatments on the list of 30 debilitating medical conditions that qualify for the use of 31 medical cannabis. Procedures shall include a petition process 32 and shall allow for public comment and public hearings before 33 the medical advisory board. 34 c. Set forth additional chronic or debilitating diseases 35 -16- LSB 2665SV (1) 87 rh/rj 16/ 30

S.F. 506 or medical conditions or associated medical treatments for 1 inclusion on the list of debilitating medical conditions that 2 qualify for the use of medical cannabis as recommended by the 3 medical advisory board. 4 d. Establish the form and quantity of medical cannabis 5 allowed to be dispensed to a patient or primary caregiver 6 pursuant to this chapter. The form and quantity of medical 7 cannabis shall be appropriate to serve the medical needs of 8 patients with debilitating medical conditions. 9 e. Establish, in conjunction with the medical advisory 10 board, requirements for the licensure of medical cannabis 11 manufacturers and medical cannabis dispensaries and set forth 12 procedures for medical cannabis manufacturers and medical 13 cannabis dispensaries to obtain licenses. 14 f. Develop a dispensing system for medical cannabis within 15 this state that provides for all of the following: 16 (1) Medical cannabis dispensaries within this state housed 17 on secured grounds and operated by licensed medical cannabis 18 dispensaries. 19 (2) The dispensing of medical cannabis to patients and 20 their primary caregivers to occur at locations designated by 21 the department. 22 g. Establish and collect annual fees from medical cannabis 23 manufacturers and medical cannabis dispensaries to cover 24 the costs associated with regulating and inspecting medical 25 cannabis manufacturers and medical cannabis dispensaries. 26 h. Specify and implement procedures that address public 27 safety including security procedures and product quality 28 including measures to ensure contaminant-free cultivation of 29 medical cannabis, safety, and labeling. 30 i. Establish and implement a medical cannabis inventory 31 and delivery tracking system to track medical cannabis 32 from production by a medical cannabis manufacturer through 33 dispensing at a medical cannabis dispensary. 34 Sec. 16. NEW SECTION . 124E.12 Reciprocity and registration 35 -17- LSB 2665SV (1) 87 rh/rj 17/ 30

S.F. 506 in Minnesota. 1 1. General provision. A valid medical cannabis registration 2 card, or its equivalent, issued under the laws of another state 3 that allows an out-of-state patient to possess or use medical 4 cannabis in the jurisdiction of issuance shall have the same 5 force and effect as a valid medical cannabis registration card 6 issued pursuant to this chapter, except that an out-of-state 7 patient in this state shall not obtain medical cannabis from a 8 medical cannabis dispensary in this state and an out-of-state 9 patient shall not smoke medical cannabis. 10 2. Iowa patients registering as nonresident patients in the 11 state of Minnesota. 12 a. A patient with a valid medical cannabis registration card 13 issued pursuant to this chapter may register as a nonresident 14 cardholder with the state of Minnesota and one or more medical 15 cannabis manufacturers registered under the laws of Minnesota. 16 b. A patient registered pursuant to paragraph “a” may 17 obtain, subject to the laws of Minnesota, medical cannabis from 18 a medical cannabis dispensary in Minnesota for treatment of 19 the patient’s debilitating medical condition. The patient may 20 possess and use the medical cannabis in this state, provided, 21 however, that the provisions of this chapter shall apply with 22 respect to the form, quantity, and use of the medical cannabis. 23 c. The department shall provide information reasonably 24 requested by the Minnesota department of health in order to 25 verify that an Iowa patient is lawfully in possession of a 26 medical cannabis registration card issued pursuant to this 27 chapter. 28 Sec. 17. NEW SECTION . 124E.13 Use of medical cannabis —— 29 affirmative defenses. 30 1. A health care practitioner, including any authorized 31 agent or employee thereof, shall not be subject to 32 prosecution for the unlawful certification, possession, or 33 administration of marijuana under the laws of this state for 34 activities arising directly out of or directly related to the 35 -18- LSB 2665SV (1) 87 rh/rj 18/ 30

S.F. 506 certification or use of medical cannabis in the treatment of 1 a patient diagnosed with a debilitating medical condition as 2 authorized by this chapter. 3 2. A medical cannabis manufacturer, including any 4 authorized agent or employee thereof, shall not be subject 5 to prosecution for manufacturing, possessing, cultivating, 6 harvesting, packaging, processing, transporting, or supplying 7 medical cannabis pursuant to this chapter. 8 3. A medical cannabis dispensary, including any authorized 9 agent or employee thereof, shall not be subject to prosecution 10 for transporting, supplying, or dispensing medical cannabis 11 pursuant to this chapter. 12 a. In a prosecution for the unlawful possession of marijuana 13 under the laws of this state, including but not limited to 14 chapters 124 and 453B, it is an affirmative and complete 15 defense to the prosecution that the patient has been diagnosed 16 with a debilitating medical condition, used or possessed 17 medical cannabis pursuant to a certification by a health care 18 practitioner as authorized under this chapter, and, for a 19 patient eighteen years of age or older, is in possession of a 20 valid medical cannabis registration card. 21 b. In a prosecution for the unlawful possession of marijuana 22 under the laws of this state, including but not limited to 23 chapters 124 and 453B, it is an affirmative and complete 24 defense to the prosecution that the person possessed medical 25 cannabis because the person is a primary caregiver of a patient 26 who has been diagnosed with a debilitating medical condition 27 and is in possession of a valid medical cannabis registration 28 card, and where the primary caregiver’s possession of the 29 medical cannabis is on behalf of the patient and for the 30 patient’s use only as authorized under this chapter. 31 c. If a patient or primary caregiver is charged with the 32 commission of a crime and is not in possession of the person’s 33 medical cannabis registration card, any charge or charges filed 34 against the person shall be dismissed by the court if the 35 -19- LSB 2665SV (1) 87 rh/rj 19/ 30

S.F. 506 person produces to the court prior to or at the person’s trial 1 a medical cannabis registration card issued to that person and 2 valid at the time the person was charged. 3 4. An agency of this state or a political subdivision 4 thereof, including any law enforcement agency, shall not remove 5 or initiate proceedings to remove a patient under the age 6 of eighteen from the home of a parent based solely upon the 7 parent’s or patient’s possession or use of medical cannabis as 8 authorized under this chapter. 9 Sec. 18. NEW SECTION . 124E.14 Penalties. 10 1. A person who knowingly or intentionally possesses or 11 uses medical cannabis in violation of the requirements of this 12 chapter is subject to the penalties provided under chapters 124 13 and 453B. 14 2. A medical cannabis manufacturer or a medical cannabis 15 dispensary shall be assessed a civil penalty of up to one 16 thousand dollars per violation for any violation of this 17 chapter in addition to any other applicable penalties. 18 Sec. 19. NEW SECTION . 124E.15 Use of medical cannabis —— 19 smoking prohibited. 20 A patient shall not consume medical cannabis possessed 21 or used as authorized under this chapter by smoking medical 22 cannabis. 23 Sec. 20. NEW SECTION . 124E.16 Employment. 24 1. An employer in this state may retain, create, reinstate, 25 or enforce a written zero tolerance policy prohibiting the 26 possession or use of medical cannabis or any derivative 27 thereof including cannabidiol by an employee in the employer’s 28 workplace, including but not limited to a policy prohibiting 29 an employee from having any detectable amount of medical 30 cannabis or any derivative thereof including cannabidiol in the 31 employee’s body while at work. 32 2. An employer’s prohibition of the possession or use 33 of medical cannabis or any derivative thereof including 34 cannabidiol under this section shall not be considered to be 35 -20- LSB 2665SV (1) 87 rh/rj 20/ 30