Senate Study Bill 1113 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON JUDICIARY BILL BY CHAIRPERSON ZAUN) A BILL FOR An Act relating to the medical cannabidiol program including 1 medical cannabidiol dispensaries. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 1398XC (3) 90 ss/rh

S.F. _____ Section 1. Section 124E.2, subsection 10, Code 2023, is 1 amended by striking the subsection and inserting in lieu 2 thereof the following: 3 10. “Medical cannabidiol” means any species of the genus 4 cannabis plant, or any mixture or preparation thereof, 5 including whole plant extracts and resins, that is delivered 6 in any of the following forms: 7 a. Oral forms, including but not limited to: 8 (1) Tablets. 9 (2) Capsules. 10 (3) Liquids. 11 (4) Tinctures. 12 (5) Sublingual forms. 13 b. Topical forms, including but not limited to: 14 (1) Gels. 15 (2) Ointments, creams, or lotions. 16 (3) Transdermal patches. 17 c. Inhaled forms, limited to: 18 (1) Nebulizable inhaled forms. 19 (2) Vaporizable dried raw cannabis. 20 (3) Other vaporizable forms of cannabis. 21 Sec. 2. Section 124E.8, subsection 1, paragraph a, Code 22 2023, is amended to read as follows: 23 a. The department shall issue a request for proposals accept 24 applications to select and license by April 1, 2018, up to 25 five ten medical cannabidiol dispensaries to dispense medical 26 cannabidiol within this state consistent with the provisions 27 of this chapter . The department shall license new medical 28 cannabidiol dispensaries or relicense the existing medical 29 cannabidiol dispensaries by December 1 of each year. 30 Sec. 3. Section 124E.8, subsection 2, Code 2023, is amended 31 by striking the subsection. 32 Sec. 4. Section 124E.8, Code 2023, is amended by adding the 33 following new subsection: 34 NEW SUBSECTION . 3A. The department shall not issue a 35 -1- LSB 1398XC (3) 90 ss/rh 1/ 3

S.F. _____ license for a medical cannabidiol dispensary to be located in a 1 county with a medical cannabidiol dispensary that was licensed 2 prior to January 1, 2023. 3 Sec. 5. Section 124E.9, subsection 1, Code 2023, is amended 4 to read as follows: 5 1. a. The medical cannabidiol dispensaries shall be located 6 based on geographical need throughout the state to improve 7 patient access. 8 b. A medical cannabidiol dispensary may dispense medical 9 cannabidiol pursuant to the provisions of this chapter but 10 shall not dispense any medical cannabidiol in a form or 11 quantity other than the form or quantity allowed by the 12 department pursuant to rule. 13 Sec. 6. MEDICAL CANNABIDIOL DISPENSARY LICENSES —— CURRENT 14 LICENSEES. 15 1. The department of health and human services shall accept 16 applications for new medical cannabidiol dispensary licenses 17 from current licensees between July 1, 2023, and October 1, 18 2023. 19 2. Notwithstanding section 124E.8, subsection 3, in 20 evaluating an application pursuant to this section, the 21 department shall consider only the security, physical layout, 22 and plan for technology at the proposed location. 23 3. A licensee submitting an application pursuant to 24 this section may hold a maximum of four medical cannabidiol 25 dispensary licenses, including the licensee’s current license. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to the medical cannabidiol program. 30 The bill changes the definition of “medical cannabidiol” 31 to include specific forms of oral, topical, and inhalable 32 cannabis. 33 The bill increases the maximum number of medical cannabidiol 34 dispensary licenses in the state from 5 to 10. The bill 35 -2- LSB 1398XC (3) 90 ss/rh 2/ 3

S.F. _____ prohibits the department of health and human services (HHS) 1 from issuing a new medical cannabidiol dispensary license for a 2 dispensary to be located in a county with a medical cannabidiol 3 dispensary that was licensed prior to January 1, 2023. The 4 bill strikes a provision requiring HHS to locate medical 5 cannabidiol dispensaries based on geographical need throughout 6 the state. 7 The bill requires HHS to accept applications for medical 8 cannabidiol dispensary licenses from current licensees 9 between July 1, 2023, and October 1, 2023. In evaluating an 10 application from a current licensee, HHS shall consider only 11 the security, physical layout, and plan for technology at the 12 proposed location. A licensee may hold a maximum of four 13 medical cannabidiol dispensary licenses. 14 The bill strikes a provision in current law requiring a 15 medical cannabidiol dispensary to agree to begin supplying 16 medical cannabidiol by December 1, 2018. 17 -3- LSB 1398XC (3) 90 ss/rh 3/ 3