House Study Bill 239 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON KAUFMANN) A BILL FOR An Act relating to the licensure of medical cannabidiol 1 dispensaries. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2547YC (2) 90 ss/rh

H.F. _____ Section 1. Section 124E.8, subsection 1, paragraph a, Code 1 2023, is amended to read as follows: 2 a. The department shall issue a request for proposals accept 3 applications to select and license by April 1, 2018, up to 4 five ten medical cannabidiol dispensaries to dispense medical 5 cannabidiol within this state consistent with the provisions 6 of this chapter . The department shall license new medical 7 cannabidiol dispensaries or relicense the existing medical 8 cannabidiol dispensaries by December 1 of each year. 9 Sec. 2. Section 124E.8, subsection 2, Code 2023, is amended 10 by striking the subsection. 11 Sec. 3. Section 124E.8, Code 2023, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 3A. The department shall not issue more 14 than one license for a medical cannabidiol dispensary per 15 county. 16 Sec. 4. Section 124E.9, subsection 1, Code 2023, is amended 17 to read as follows: 18 1. a. The medical cannabidiol dispensaries shall be located 19 based on geographical need throughout the state to improve 20 patient access. 21 b. A medical cannabidiol dispensary may dispense medical 22 cannabidiol pursuant to the provisions of this chapter but 23 shall not dispense any medical cannabidiol in a form or 24 quantity other than the form or quantity allowed by the 25 department pursuant to rule. 26 Sec. 5. MEDICAL CANNABIDIOL DISPENSARY LICENSES —— CURRENT 27 LICENSEES. 28 1. The department of health and human services shall accept 29 applications for new medical cannabidiol dispensary licenses 30 from current licensees between July 1, 2023, and October 1, 31 2023. 32 2. Notwithstanding section 124E.8, subsection 3, in 33 evaluating an application pursuant to this section, the 34 department shall consider only the security, physical layout, 35 -1- LSB 2547YC (2) 90 ss/rh 1/ 2

H.F. _____ and plan for technology at the proposed location. 1 3. A licensee submitting an application pursuant to 2 this section may hold a maximum of four medical cannabidiol 3 dispensary licenses, including the licensee’s current license. 4 EXPLANATION 5 The inclusion of this explanation does not constitute agreement with 6 the explanation’s substance by the members of the general assembly. 7 This bill relates to the licensure of medical cannabidiol 8 dispensaries. 9 The bill increases the maximum number of medical cannabidiol 10 dispensary licenses in the state from 5 to 10. The bill 11 prohibits the department of health and human services from 12 issuing more than one medical cannabidiol dispensary license 13 per county. The bill strikes a provision requiring the 14 department to locate medical cannabidiol dispensaries based on 15 geographical need throughout the state. 16 The bill requires the department of health and human 17 services to accept applications for medical cannabidiol 18 dispensary licenses from current licensees between July 1, 19 2023, and October 1, 2023. In evaluating an application from 20 a current licensee, the department shall consider only the 21 security, physical layout, and plan for technology at the 22 proposed location. A licensee may hold a maximum of four 23 medical cannabidiol dispensary licenses. 24 The bill strikes a provision in current law requiring a 25 medical cannabidiol dispensary to agree to begin supplying 26 medical cannabidiol by December 1, 2018. 27 -2- LSB 2547YC (2) 90 ss/rh 2/ 2