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Senate File 73 - IntroducedA Bill ForAn Act 1relating to marijuana, including the manufacture,
2delivery, and possession of marijuana and the licensure of
3retail marijuana, providing fees, including excise taxes,
4establishing funds, and including penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2CRIMINAL PENALTIES
3 Section 1. Section 124.401, subsection 1, unnumbered
4paragraph 1, Code 2023, is amended to read as follows:
5Except as authorized by this chapter or chapter 124E or
6124F, it is unlawful for any person to manufacture, deliver, or
7possess with the intent to manufacture or deliver, a controlled
8substance, a counterfeit substance, a simulated controlled
9substance, or an imitation controlled substance, or to act
10with, enter into a common scheme or design with, or conspire
11with one or more other persons to manufacture, deliver, or
12possess with the intent to manufacture or deliver a controlled
13substance, a counterfeit substance, a simulated controlled
14substance, or an imitation controlled substance.
15 Sec. 2. Section 124.401, subsection 1, paragraph a,
16subparagraph (6), Code 2023, is amended by striking the
17subparagraph.
18 Sec. 3. Section 124.401, subsection 1, paragraph b,
19subparagraph (6), Code 2023, is amended by striking the
20subparagraph.
21 Sec. 4. Section 124.401, subsection 1, paragraph c,
22subparagraph (5), Code 2023, is amended by striking the
23subparagraph.
24 Sec. 5. Section 124.401, subsection 1, paragraph c,
25subparagraph (9), Code 2023, is amended to read as follows:
26(9) Any other controlled substance, counterfeit substance,
27simulated controlled substance, or imitation controlled
28substance classified in schedule I, II, or III, except as
29provided in paragraph “d”, or in chapter 124E or 124F.
30 Sec. 6. Section 124.401, subsection 1, paragraph d, Code
312023, is amended to read as follows:
32d. Violation of this subsection, with respect to any other
33controlled substances, counterfeit substances, simulated
34controlled substances, or imitation controlled substances
35classified in schedule IV or V is an aggravated misdemeanor.
-1-1However, violation of this subsection involving fifty kilograms
2or less of marijuana or involving flunitrazepam is a class “D”
3felony.
4 Sec. 7. Section 124.401, subsection 5, paragraph b, Code
52023, is amended to read as follows:
6b. If the controlled substance is marijuana, the punishment
7shall be by imprisonment in the county jail for not more than
8six months or by a fine of not more than one thousand dollars,
9or by both such fine and imprisonment for a first offense.
10If the controlled substance is marijuana and the person has
11been previously convicted of a violation of this subsection in
12which the controlled substance was marijuana, the punishment
13shall be as provided in section 903.1, subsection 1, paragraph
14“b”. If the controlled substance is marijuana and the person
15has been previously convicted two or more times of a violation
16of this subsection in which the controlled substance was
17marijuana, the person is guilty of an aggravated misdemeanor.
18 This subsection does not apply to the possession of marijuana
19which is punishable pursuant to chapter 124F.
20 Sec. 8. Section 124.401G, unnumbered paragraph 1, Code
212023, is amended to read as follows:
22Notwithstanding any provision of this chapter to the
23contrary, a person shall not be guilty of an offense under
24this chapter, including under section 124.401 or 124.410,
25for producing, possessing, using, harvesting, handling,
26manufacturing, marketing, transporting, delivering, or
27distributing the plant cannabis, if all of the following apply:
28 Sec. 9. Section 124.407, subsection 2, Code 2023, is amended
29to read as follows:
302. a. Any person who violates this section and where the
31controlled substance is any one a controlled substance other
32than marijuana is guilty of a class “D” felony.
33b. Any person who violates this section, and where the
34controlled substance is marijuana only, is guilty of a serious
35misdemeanor.
-2-1 Sec. 10. Section 124.411, subsection 2, Code 2023, is
2amended to read as follows:
32. For purposes of this section, an offense is considered
4a second or subsequent offense, if, prior to the person’s
5having been convicted of the offense, the offender has ever
6been convicted under this chapter or under any state or federal
7statute relating to narcotic drugs or cocaine, marijuana,
8 depressant, stimulant, or hallucinogenic drugs.
9 Sec. 11. Section 124.413, subsection 2, Code 2023, is
10amended to read as follows:
112. This section shall not apply if:
12a. The offense is found to be an accommodation pursuant to
13section 124.410; or
14b. The the controlled substance is marijuana.
15 Sec. 12. NEW SECTION. 124F.1 Definitions.
16As used in this subchapter:
171. “Counterfeit substance” means the same as defined in
18section 124.101.
192. “Imitation controlled substance” means the same as
20defined in section 124.101.
213. “Marijuana” means the same as defined in section 124.101,
22and includes a counterfeit substance, imitation controlled
23substance, or simulated controlled substance containing a
24detectable amount of marijuana.
254. “Simulated controlled substance” means the same as
26defined in section 124.101.
27 Sec. 13. NEW SECTION. 124F.2 Marijuana — penalties.
281. Except as otherwise provided in this subchapter and
29chapter 124E, it is unlawful for any person to manufacture,
30deliver, or possess with the intent to manufacture or deliver
31marijuana, or to act with, enter into a common scheme or
32design with, or conspire with one or more other persons to
33manufacture, deliver, or possess with the intent to manufacture
34or deliver marijuana. A violation of this subsection involving
35the following amounts of marijuana shall be punishable as
-3-1follows:
2a. More than twenty-two kilograms shall be a class “C”
3felony.
4b. More than two kilograms but not more than twenty-two
5kilograms shall be a class “D” felony.
6c. More than twelve ounces but not more than two kilograms
7shall be an aggravated misdemeanor.
8d. More than four ounces but not more than twelve ounces
9shall be punishable as a serious misdemeanor.
10e. Four ounces or less shall be punishable as a simple
11misdemeanor, except as provided in section 124F.3.
122. a. It is unlawful for any person knowingly or
13intentionally to possess marijuana unless such substance was
14obtained directly from, or pursuant to, a valid prescription
15or order of a practitioner while acting in the course of the
16practitioner’s professional practice, or except as otherwise
17authorized by this subsection. A violation of this subsection
18involving the possession of the following amounts of marijuana
19shall be punishable as follows:
20(1) More than six ounces but not more than twelve ounces is
21a serious misdemeanor.
22(2) More than one-half ounce but not more than six ounces
23is a simple misdemeanor.
24(3) One-half ounce or less is not a criminal offense but
25shall be assessed as a civil penalty in the amount of one
26hundred dollars, except if the person is under twenty-one years
27of age, the person commits a serious misdemeanor.
28(a) The civil penalty shall be collected by the clerk of the
29district court pursuant to section 602.8105, subsection 5.
30(b) Any records relating to the civil penalty shall not
31be displayed for public viewing on the Iowa court information
32system.
33(c) Any records relating to the civil penalty shall not
34be kept in the criminal history data files maintained by the
35department of public safety. Any records relating to the civil
-4-1penalty shall not be disseminated to other criminal or juvenile
2justice agencies.
3b. Notwithstanding paragraph “a”, a municipality may, by
4ordinance, allow for the legal possession of marijuana.
53. a. A person shall not possess, and a retail marijuana
6store not sell, in a single transaction, retail marijuana in
7excess of the following amounts:
8(1) For a resident of Iowa twenty-one years of age or older:
9(a) Thirty grams of marijuana flower.
10(b) Five grams of marijuana concentrate.
11(c) Five hundred milligrams of tetrahydrocannabinol
12contained in a product infused with marijuana.
13(2) For a person twenty-one years of age or older who is not
14a resident of Iowa:
15(a) Fifteen grams of marijuana flower.
16(b) Two and one-half grams of marijuana concentrate.
17(c) Two hundred fifty milligrams of tetrahydrocannabinol
18contained in a product infused with marijuana.
19b. A person in possession of retail marijuana in excess of
20the amounts specified in paragraph “a” equivalent to the amounts
21specified in subsection 2, paragraph “a”, shall be subject to
22the penalties in subsection 2, paragraph “a”.
23c. A retail marijuana store in violation of this subsection
24shall be subject to licensee discipline pursuant to section
25124F.20.
26d. For purposes of this subsection, “retail marijuana” and
27“retail marijuana store” mean the same as defined in section
28124F.7.
294. Upon the expiration of two years following a conviction
30for a violation of subsection 2, paragraph “a”, subparagraph
31(3), a person may petition the court to expunge the conviction,
32and if the person has had no other criminal convictions, other
33than local traffic violations or simple misdemeanor violations
34of chapter 321 during the two-year period, the conviction
35shall be expunged as a matter of law. The court shall enter
-5-1an order that the record of the conviction be expunged by the
2clerk of the district court. Notwithstanding section 692.2,
3after receipt of notice from the clerk of the district court
4that a record of conviction has been expunged pursuant to this
5subsection, the record of conviction shall be removed from the
6criminal history data files maintained by the department of
7public safety.
8 Sec. 14. NEW SECTION. 124F.3 Delivery or possession with
9the intent to deliver — small amounts.
10If the amount of marijuana delivered or possessed with
11intent to deliver is one ounce or less and no remuneration was
12provided, the defendant shall not be prosecuted for a violation
13of this subchapter.
14 Sec. 15. NEW SECTION. 124F.4 Juvenile offenses.
15The juvenile court shall have exclusive original
16jurisdiction in a proceeding concerning a minor who is alleged
17to have committed a violation of this subchapter.
18 Sec. 16. NEW SECTION. 124F.5 Marijuana use in public.
191. Marijuana shall not be consumed in areas open and
20accessible to the public, including but not limited to public
21transportation facilities, sporting or music venues, parks,
22playgrounds, sidewalks and roads, outdoor cafes, or indoor but
23public locations.
242. A person who violates this section commits a simple
25misdemeanor punishable as a scheduled violation under section
26805.8C, subsection 15.
273. Upon the expiration of two years following conviction
28for a violation of subsection 1, a person may petition the
29court to expunge the conviction, and if the person has had no
30other criminal convictions, other than local traffic violations
31or simple misdemeanor violations of chapter 321 during the
32two-year period, the conviction shall be expunged as a matter
33of law. The court shall enter an order that the record of the
34conviction be expunged by the clerk of the district court.
35Notwithstanding section 692.2, after receipt of notice from
-6-1the clerk of the district court that a record of conviction
2has been expunged pursuant to this subsection, the record of
3conviction shall be removed from the criminal history data
4files maintained by the department of public safety.
5 Sec. 17. NEW SECTION. 321.284B Marijuana in motor vehicles.
61. A driver of a motor vehicle upon a public street or
7highway shall not use marijuana in the passenger area of the
8motor vehicle. “Passenger area” means the area designed to
9seat the driver and passengers while the motor vehicle is in
10operation and any area that is readily accessible to the driver
11or a passenger while in their seating positions, including the
12glove compartment.
132. A driver or passenger of or in a motor vehicle upon a
14public street or highway shall not possess marijuana in the
15passenger area of a motor vehicle except in a sealed, odor
16proof, child resistant container.
173. For the purposes of this section, “marijuana” means the
18same as defined in section 124.401.
194. A person who knowingly violates a provision of this
20section is guilty of a simple misdemeanor.
21 Sec. 18. Section 602.8105, Code 2023, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 5. The clerk of the district court shall
24collect the civil penalty assessed pursuant to section 124F.2,
25subsection 2, paragraph “a”, subparagraph (3).
26 Sec. 19. Section 805.8C, Code 2023, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 15. Marijuana violations. For marijuana
29use in public violations under section 124F.5, the scheduled
30fine is fifty dollars for a first violation, and one hundred
31dollars for a second or subsequent violation.
32 Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed.
33DIVISION II
34RETAIL marijuana
35 Sec. 21. NEW SECTION. 124F.6 Purpose and findings.
-7- 1The general assembly finds all of the following:
21. Marijuana prohibition, like alcohol prohibition before
3it, has been a wasteful and destructive failure. About half
4of Americans admit to having used marijuana despite more than
5eight decades of prohibition.
62. The prohibition of marijuana has had an unfair, disparate
7impact on persons and communities of color.
83. The prohibition of marijuana diverts law enforcement
9resources from violent and property crimes and subjects
10civilians to unnecessary police interactions.
114. Keeping marijuana illegal deprives the state of
12thousands of legal jobs and hundreds of millions of dollars in
13tax revenue.
145. The use of marijuana should be legal for persons
15twenty-one years of age or older and subject to taxation and
16regulation.
17 Sec. 22. NEW SECTION. 124F.7 Definitions.
18For the purposes of this subchapter:
191. “Division” means the alcoholic beverages division of the
20department of commerce.
212. “Immature plant” means a nonflowering marijuana plant
22that is no taller than eight inches and no wider than eight
23inches, is produced from a cutting, clipping, or seedling, and
24is in a cultivating container.
253. “License” means a license or registration issued pursuant
26to this subchapter.
274. “Licensed premises” means the premises specified in an
28application for a license under this subchapter, which are
29owned or in possession of the licensee and within which the
30licensee is authorized to cultivate, manufacture, distribute,
31sell, or test retail marijuana and retail marijuana products in
32accordance with this subchapter.
335. “Licensee” means a person licensed or registered pursuant
34to this subchapter.
356. “Local jurisdiction” means a city or county.
-8- 17. “Local licensing authority” means, for any local
2jurisdiction that has chosen to adopt a local licensing
3requirement in addition to the state licensing requirements
4of this subchapter, an authority designated by a municipal
5or county ordinance, or resolution, or the governing body of
6a municipality or county, or the board of commissioners of a
7county if no such authority is designated.
88. “Location” means a particular parcel of land that may be
9identified by an address or other descriptive means.
109. “Marijuana” means the same as defined in section 124.101.
1110. “Marijuana accessories” means any equipment, products,
12or materials of any kind which are used, intended for use, or
13designed for use in planting, cultivating, growing, harvesting,
14composting, manufacturing, compounding, converting, producing,
15processing, preparing, testing, analyzing, packaging,
16repackaging, storing, vaporizing, or containing marijuana, or
17for ingesting, inhaling, or otherwise introducing marijuana
18into the human body.
1911. “Person” means a natural person, partnership,
20association, company, corporation, limited liability company,
21or organization; except that “person” does not include any
22governmental organization.
2312. “Retail marijuana” means all parts of the plant of the
24genus Cannabis, whether growing or not, the seeds thereof; the
25resin extracted from any part of the plant; and every compound,
26manufacture, salt, derivative, mixture, or preparation of the
27plant, its seeds or resin, including marijuana concentrate.
28“Retail marijuana” does not include industrial hemp, nor does
29it include fiber produced from the stalks, oil or cake made
30from the seeds of the plant, sterilized seeds of the plant
31which are incapable of germination, or the weight of any other
32ingredient combined with marijuana to prepare topical or oral
33administrations, food, drink, or other product.
3413. “Retail marijuana cultivation facility” means an entity
35licensed to cultivate, prepare, package, and sell marijuana to
-9-1retail marijuana stores, to marijuana product manufacturing
2facilities, and to other marijuana cultivation facilities, but
3not to consumers.
414. “Retail marijuana establishment” means a retail
5marijuana store, a retail marijuana cultivation facility, or a
6retail marijuana products manufacturer.
715. “Retail marijuana products” means concentrated marijuana
8products and marijuana products that are comprised of marijuana
9and other ingredients and are intended for use or consumption,
10such as but not limited to edible products, ointments, and
11tinctures.
1216. “Retail marijuana products manufacturer” means an entity
13licensed to purchase marijuana; manufacture, prepare, and
14package marijuana products; and sell marijuana and marijuana
15products to other marijuana product manufacturing facilities
16and to retail marijuana stores, but not to consumers.
1717. “Retail marijuana store” means an entity licensed
18to purchase marijuana from marijuana cultivation facilities
19and sell marijuana and to purchase marijuana products from
20retail marijuana product manufacturing facilities and to sell
21marijuana and marijuana products to consumers.
2218. “Retail marijuana transporter” means an entity or person
23licensed to transport retail marijuana and retail marijuana
24products from one retail marijuana establishment to another
25retail marijuana establishment and to temporarily store the
26transported retail marijuana and retail marijuana products at
27its licensed premises, but is not authorized to sell retail
28marijuana or retail marijuana products under any circumstances.
29 Sec. 23. NEW SECTION. 124F.8 Applicability.
301. On or after July 1, 2024, an applicant may apply for
31licensure of a retail marijuana establishment pursuant to this
32subchapter.
332. a. Pursuant to subsection 1, an applicant shall complete
34forms as provided by the division and shall pay the application
35fee and the licensing fee. The division shall forward, within
-10-1seven days of the date of the application, one-half of the
2application fee to the local jurisdiction unless the local
3jurisdiction has prohibited the operation of retail marijuana
4establishments. If the license is denied, the division shall
5refund the licensing fee to the applicant.
6b. The division shall act upon an application made pursuant
7to subsection 1 no sooner than forty-five days and no later
8than ninety days after the date of the application. The
9division shall process applications in the order in which
10completed applications are received by the division.
113. Any local jurisdiction may enact ordinances or
12regulations governing the time, place, manner, and number of
13retail marijuana establishments, which may include a local
14licensing requirement, or may prohibit the operation of retail
15marijuana establishments by ordinance or by a referred or
16initiated measure. If a county acts through an initiated
17measure, the proponents shall submit a petition signed by not
18less than fifteen percent of the registered electors in the
19county.
20 Sec. 24. NEW SECTION. 124F.9 Retail marijuana licensure.
211. The division shall develop and maintain a seed-to-sale
22tracking system that tracks retail marijuana from either
23seed or immature plant stage until the marijuana or retail
24marijuana product is sold to a customer at a retail marijuana
25establishment to ensure that no marijuana grown or processed
26by a retail marijuana establishment is sold or otherwise
27transferred except by a retail marijuana store.
282. The division shall adopt all rules necessary for the
29implementation of this chapter.
303. Nothing in this subchapter shall be construed to be
31a delegation to the division of the power to fix prices for
32retail marijuana.
334. Nothing in this subchapter shall be construed to limit
34a law enforcement agency’s ability to investigate unlawful
35activity in relation to a retail marijuana establishment. A
-11-1law enforcement agency shall have the authority to conduct a
2criminal history record check of a licensee and an employee of
3a licensee during an investigation of unlawful activity related
4to retail marijuana and retail marijuana products.
55. The division shall create a statewide licensure class
6system for retail marijuana cultivation facilities. The
7classifications may be based upon square footage of the
8facility; lights, lumens, or wattage; canopy lighting; the
9number of cultivating plants; a combination of the foregoing;
10or other reasonable metrics. The division shall create a fee
11structure for the licensure class system.
12 Sec. 25. NEW SECTION. 124F.10 State and local participation
13in licensure.
141. When the division receives an application for an
15initial license or a renewal of an existing license for
16any retail marijuana establishment, the division shall
17provide, within seven days of receipt of an application,
18a copy of the application to the local jurisdiction in
19which the establishment is to be located unless the local
20jurisdiction has prohibited the operation of retail marijuana
21establishments. The local jurisdiction shall determine whether
22the application complies with local restrictions relating
23to time, place, manner, and the number of retail marijuana
24establishments allowed. The local jurisdiction shall inform
25the division whether the application complies with local
26restrictions.
272. A local jurisdiction may impose a separate local
28licensing requirement as a part of its restrictions relating
29to time, place, manner, and the number of retail marijuana
30establishments allowed. A local jurisdiction may decline
31to impose any local licensing requirements, but a local
32jurisdiction shall notify the division that it either approves
33or denies each application received by the local jurisdiction.
343. If a local jurisdiction issues a local license for
35a retail marijuana establishment, a local jurisdiction may
-12-1schedule a public hearing on the application. If the local
2jurisdiction schedules a hearing, it shall post and publish
3public notice of the hearing not less than ten days prior
4to the hearing. The local jurisdiction shall give public
5notice by posting a sign in a conspicuous place on the license
6applicant’s premises for which a local license application
7has been made and by publication in a newspaper of general
8circulation in the county in which the applicant’s premises are
9located.
104. If a local jurisdiction does not issue local licenses,
11the local jurisdiction may give public notice of the state
12license application by posting a sign in a conspicuous place
13on the state license applicant’s premises for which a state
14license application has been made and by publication in a
15newspaper of general circulation in the county in which the
16applicant’s premises are located.
175. Applications for a state license under this subchapter
18must be made to the division on forms prepared and furnished
19by the division and must set forth such information as the
20division may require to enable the division to determine
21whether a state license should be granted.
226. The division shall deny a state license if the premises
23on which the applicant proposes to conduct its business does
24not meet the requirements of this subchapter. The division
25may refuse or deny a license renewal, reinstatement, or
26initial license issuance for good cause. For purposes of this
27subsection, “good cause” means any of the following:
28a. The licensee or applicant has violated, does not meet,
29or has failed to comply with any of the terms, conditions, or
30provisions of this subchapter, any rules promulgated pursuant
31to this subchapter, or any supplemental local law, rules, or
32regulations.
33b. The licensee or applicant has failed to comply with any
34special terms or conditions of the license pursuant to an order
35of the division or local licensing authority.
-13- 1c. The licensed premises have been operated in a manner that
2adversely affects the public health or safety of the immediate
3neighborhood in which the retail marijuana establishment is
4located.
57. If the division denies a state license pursuant to
6subsection 6, the applicant shall be entitled to a hearing
7pursuant to section 17A.12 and judicial review pursuant to
8section 17A.19. The division shall provide written notice of
9the grounds for denial of the state license to the applicant
10and to the local jurisdiction at least fifteen days prior to
11the hearing.
12 Sec. 26. NEW SECTION. 124F.11 Establishment and owner
13requirements.
141. An owner who is a natural person must have been either
15of the following:
16a. A resident of Iowa for at least one year prior to the
17date of the application.
18b. A United States citizen prior to the date of the
19application.
202. A retail marijuana establishment may be composed of an
21unlimited number of owners that have been residents of Iowa for
22at least one year prior to the date of the application.
233. The division shall review the retail marijuana
24establishment’s operating documents to ensure compliance with
25this section.
26 Sec. 27. NEW SECTION. 124F.12 Retail marijuana
27establishment licensure.
281. Local jurisdictions may adopt and enforce regulations
29for retail marijuana establishments that are at least as
30restrictive as the provisions of this subchapter and any rule
31promulgated pursuant to this subchapter.
322. A retail marijuana establishment shall not operate
33until the retail marijuana establishment is licensed by the
34division pursuant to this subchapter and approved by the
35relevant local jurisdiction. If an application is denied by
-14-1the local licensing authority, the division shall revoke the
2state license. In connection with a license, the applicant
3shall provide a complete and accurate application as required
4by the division.
53. A retail marijuana establishment shall notify the
6division in writing of the name, address, and date of birth of
7a new owner, officer, or manager before the new owner, officer,
8or manager begins managing, owning, working, or otherwise
9associating with the establishment. The owner, officer,
10manager, or employee shall pass a fingerprint-based criminal
11history record check as required by the division and shall
12obtain the required identification prior to managing, owning,
13working, or otherwise associating with the establishment.
144. Before granting a state license, the division may
15consider, except when this subchapter specifically provides
16otherwise, the requirements of this subchapter and any
17rules promulgated pursuant to this subchapter, and all other
18reasonable restrictions that are or may be placed upon a
19licensee by the division or local licensing authority.
205. a. Each license issued under this subchapter is separate
21and distinct. It is unlawful for a person to exercise any
22of the privileges granted under a license other than the
23license that the person holds or for a licensee to allow any
24other person to exercise the privileges granted under the
25licensee’s license. A separate license shall be required for
26each specific business or business entity and each geographical
27location.
28b. At all times, a licensee shall possess and maintain
29possession of the premises for which the license is issued
30through ownership, lease, rental, or other arrangement for
31possession of the premises.
326. Each licensee shall manage the licensed premises
33personally or employ a separate and distinct manager on
34the premises and shall report the name of the manager to
35the division and local licensing authority. The licensee
-15-1shall report any change in manager to the division and local
2licensing authority within seven days after the change.
3 Sec. 28. NEW SECTION. 124F.13 License renewal.
41. Ninety days prior to the expiration date of an existing
5license, the division shall notify a licensee of the expiration
6date by first class mail at the licensee’s address of record
7with the division. A licensee may apply for the renewal of
8an existing license to the division not less than thirty days
9prior to the date of expiration of the existing license. Upon
10receipt of an application for renewal of an existing license
11and any applicable fees, the division shall submit, within
12seven days of the application, a copy of the application to
13the local jurisdiction to determine whether the application
14complies with all local restrictions on renewal of licenses.
15The division shall not accept an application for renewal of a
16license after the date of expiration, except as provided in
17subsection 3. The division may extend the expiration date of
18the license and accept a late application for renewal of a
19license if the applicant has filed a timely renewal application
20with the local licensing authority. The division or the local
21licensing authority, in its discretion, and subject to the
22requirements of this subsection and subsection 3 and based upon
23reasonable grounds, may waive the thirty-day time requirements
24set forth in this subsection.
252. The division may request additional fingerprints from a
26licensee when there is a demonstrated investigative need.
273. a. Notwithstanding the provisions of subsection 1,
28a licensee whose license has been expired for not more than
29ninety days may file a late renewal application upon the
30payment of a nonrefundable late application fee of five hundred
31dollars to the division. A licensee who files a late renewal
32application and pays the requisite fees may continue to operate
33until the division takes final action to approve or deny
34the licensee’s late renewal application unless the division
35summarily suspends the license pursuant to chapter 17A, this
-16-1subchapter, and rules promulgated pursuant to this subchapter.
2b. The division may administratively continue a license
3and accept a later application for renewal of a license at the
4discretion of the division.
5 Sec. 29. NEW SECTION. 124F.14 Classes of licenses.
6For the purpose of regulating the cultivation, manufacture,
7distribution, sale, and testing of retail marijuana and retail
8marijuana products, the division in its discretion, upon
9receipt of an application in the prescribed form, may issue and
10grant to the applicant a license or registration in any of the
11following classes, subject to the provisions and restrictions
12provided by this subchapter:
131. Retail marijuana store license.
142. Retail marijuana cultivation facility license.
153. Retail marijuana products manufacturing license.
164. Occupational licenses and registrations for owners,
17managers, operators, employees, contractors, and other support
18staff employed by, working in, or having access to restricted
19areas of the licensed premises, as determined by the division.
20The division may take any action with respect to a registration
21pursuant to this subchapter as it may with respect to a license
22pursuant to this subchapter, in accordance with the procedures
23established pursuant to this subchapter.
245. Retail marijuana transporter license.
25 Sec. 30. NEW SECTION. 124F.15 Retail marijuana store
26license.
271. a. A retail marijuana store license shall be issued
28by the division only to a person selling retail marijuana or
29retail marijuana products pursuant to the terms and conditions
30of this subchapter.
31b. A retail marijuana store shall not accept any retail
32marijuana purchased from a retail marijuana cultivation
33facility unless the retail marijuana store is provided with
34evidence that any applicable excise tax due was paid.
352. Notwithstanding the provisions of this section, a
-17-1retail marijuana store licensee may also sell retail marijuana
2products that are prepackaged and labeled as required by rules
3of the division pursuant to section 124F.25.
43. a. A retail marijuana store shall not sell more than one
5ounce of retail marijuana or its equivalent in retail marijuana
6products, including retail marijuana concentrate, except for
7nonedible, nonpsychoactive retail marijuana products, including
8ointments, lotions, balms, and other nontransdermal topical
9products during a single transaction to a person.
10b. (1) Prior to initiating a sale, an employee of the
11retail marijuana store making the sale shall verify that
12the purchaser has a valid identification card showing the
13purchaser is twenty-one years of age or older. If a person
14under twenty-one years of age presents fraudulent proof of age,
15any action relying on the fraudulent proof of age shall not be
16grounds for the revocation or suspension of any license issued
17under this subchapter.
18(2) (a) If a retail marijuana store licensee or
19employee has reasonable cause to believe that a person is
20under twenty-one years of age and is exhibiting fraudulent
21proof of age in an attempt to obtain any retail marijuana
22or cannabidiol-infused product, the licensee or employee
23is authorized to confiscate such fraudulent proof of age,
24if possible, and shall, within seventy-two hours after the
25confiscation, remit such fraudulent proof of age to a state
26or local law enforcement agency. The failure to confiscate
27such fraudulent proof of age or to remit such fraudulent proof
28of age to a state or local law enforcement agency within
29seventy-two hours after the confiscation shall not constitute a
30criminal offense.
31(b) If a retail marijuana store licensee or employee
32believes that a person is under twenty-one years of age and
33presents fraudulent proof of age in an attempt to obtain any
34retail marijuana or retail cannabidiol-infused product, the
35licensee or employee or any peace officer or police officer,
-18-1acting in good faith and upon probable cause based upon
2reasonable grounds therefor, may detain and question such
3person in a reasonable manner for the purpose of ascertaining
4whether the person is guilty of any unlawful act regarding the
5purchase of retail marijuana. The questioning of a person by a
6licensee, employee, peace officer, or police officer does not
7render the licensee, employee, peace officer, or police officer
8civilly or criminally liable for slander, false arrest, false
9imprisonment, malicious prosecution, or unlawful detention.
104. All retail marijuana and retail marijuana products
11sold at a licensed retail marijuana store shall be packaged
12and labeled as required by rules of the division pursuant to
13section 124F.25.
145. a. A licensed retail marijuana store shall only
15sell retail marijuana, retail marijuana products, marijuana
16accessories, nonconsumable products such as apparel, and
17marijuana-related products such as childproof packaging
18containers, but shall be prohibited from selling or giving
19away any consumable product, including but not limited to
20cigarettes, alcohol, or an edible product that does not contain
21marijuana, including but not limited to sodas, candies, or
22baked goods.
23b. A licensed retail marijuana store shall not sell any
24retail marijuana or retail marijuana products that contain
25nicotine or alcohol, if the sale of the alcohol would require a
26license pursuant to chapter 123.
27c. A licensed retail marijuana store shall not sell retail
28marijuana or retail marijuana products over the internet nor
29deliver retail marijuana or retail marijuana products to a
30person who is not physically present in the retail marijuana
31store’s licensed premises.
326. Retail marijuana or retail marijuana products shall not
33be consumed on the premises of a retail marijuana store.
347. Notwithstanding any other provision of state law, sales
35of retail marijuana and retail marijuana products are not
-19-1exempt from state or local sales tax.
2 Sec. 31. NEW SECTION. 124F.16 Retail marijuana cultivation
3facility license.
41. A retail marijuana cultivation facility license shall
5be issued by the division only to a person who cultivates
6retail marijuana for sale and distribution to licensed retail
7marijuana stores, retail marijuana products manufacturing
8licensees, or other retail marijuana cultivation facilities.
92. A retail marijuana cultivation facility shall remit any
10applicable excise tax due.
113. A retail marijuana cultivation facility shall track
12the marijuana it cultivates from seed or immature plant to
13wholesale purchase of the retail marijuana. Prior to delivery
14of any retail marijuana that is sold, the retail marijuana
15cultivation facility shall provide evidence that the facility
16paid any applicable excise tax on the retail marijuana due.
174. A retail marijuana cultivation facility may provide,
18except as required by section 124F.25, a sample of its products
19to the state hygienic laboratory for testing and research
20purposes. A retail marijuana cultivation facility shall
21maintain a record of the sample provided to the state hygienic
22laboratory and the testing results.
235. Retail marijuana or retail marijuana products shall not
24be consumed on the premises of a retail marijuana cultivation
25facility.
266. The division shall not issue more than twenty retail
27marijuana cultivation facility licenses.
28 Sec. 32. NEW SECTION. 124F.17 Retail marijuana products
29manufacturing license.
301. a. A retail marijuana products manufacturing license
31shall be issued by the division to a person who manufactures
32retail marijuana products pursuant to the terms and conditions
33of this subchapter.
34b. A retail marijuana products manufacturer may cultivate
35its own retail marijuana if the manufacturer obtains a retail
-20-1marijuana cultivation facility license, or it may purchase
2retail marijuana from a licensed retail marijuana cultivation
3facility. A retail marijuana products manufacturer shall track
4all of its retail marijuana from the point the retail marijuana
5is either transferred from its retail marijuana cultivation
6facility or from the point when the retail marijuana is
7delivered to the retail marijuana products manufacturer from a
8licensed retail marijuana cultivation facility to the point of
9transfer to a licensed retail marijuana store.
10c. A retail marijuana products manufacturer shall not
11accept any retail marijuana purchased from a retail marijuana
12cultivation facility unless the retail marijuana products
13manufacturer is provided with evidence that any applicable
14excise tax due was paid.
152. All retail marijuana products shall be prepared on
16a licensed premises used exclusively for the manufacture
17and preparation of retail marijuana or retail marijuana
18products and using equipment that is used exclusively for the
19manufacture and preparation of retail marijuana products;
20except that, if permitted by the local jurisdiction, a
21retail marijuana products manufacturing licensee may share
22the same premises as a medical cannabidiol-infused products
23manufacturing licensee so long as a virtual or physical
24separation of inventory is maintained pursuant to rules
25promulgated by the division.
263. All licensed premises on which retail marijuana products
27are manufactured shall meet the sanitary standards for retail
28marijuana product preparation promulgated pursuant to section
29124F.25.
304. Retail marijuana or retail marijuana products shall not
31be consumed on the premises of a retail marijuana products
32manufacturing facility.
335. A retail marijuana products manufacturer may provide,
34except as required by section 124F.25, a sample of its products
35to the state hygienic laboratory for testing and research
-21-1purposes. A retail marijuana products manufacturer shall
2maintain a record of what was provided to the state hygienic
3laboratory and the results of the testing.
46. A licensed retail marijuana products manufacturer shall
5package and label each product manufactured as required by
6rules of the division pursuant to section 124F.25.
77. All retail marijuana products that require refrigeration
8to prevent spoilage must be stored and transported in a
9refrigerated environment.
108. The division shall not issue more than twenty retail
11marijuana products manufacturer licenses.
12 Sec. 33. NEW SECTION. 124F.18 Retail marijuana transporter
13license.
141. a. A retail marijuana transporter license shall be
15issued by the division to a person to provide logistics,
16distribution, and storage of retail marijuana and retail
17marijuana products. Notwithstanding any other provisions of
18law, a retail marijuana transporter license shall be valid for
19two years from the date of issuance, but cannot be transferred
20with a change of ownership. A licensed retail marijuana
21transporter shall be responsible for the retail marijuana and
22retail marijuana products once the transporter takes control
23of the product.
24b. A licensed retail marijuana transporter may contract with
25multiple licensed retail marijuana establishments.
26c. On or after July 1, 2024, all retail marijuana
27transporters shall hold a valid retail marijuana transporter
28license; except that an entity licensed pursuant to this
29subchapter that provides its own distribution is not required
30to hold a retail marijuana transporter license to transport and
31distribute its products. The division shall begin accepting
32applications after January 1, 2024.
332. A retail marijuana transporter licensee shall use a
34seed-to-sale tracking system developed pursuant to section
35124F.25 to create shipping manifests documenting the transport
-22-1of retail marijuana and retail marijuana products throughout
2the state.
3 Sec. 34. NEW SECTION. 124F.19 Retail marijuana use —
4protections.
51. No person shall be subject to arrest, prosecution, or
6penalty in any manner, or be denied any right or privilege,
7including but not limited to disciplinary action by a business,
8occupational, or professional licensing board, solely for
9conduct permitted under this subchapter.
102. a. Except as provided in this section, neither the state
11nor any of its political subdivisions shall impose any penalty
12or deny any benefit or entitlement for conduct permitted
13under this subchapter or for the presence of cannabinoids or
14cannabinoid metabolites in the urine, blood, saliva, breath,
15hair, or other tissue or fluid of a person who is twenty-one
16years of age or older.
17b. Except as provided in this section, neither the state
18nor any of its political subdivisions shall deny a driver’s
19license, a professional license, housing assistance, social
20services, or other benefits based on marijuana use or for the
21presence of cannabinoids or cannabinoid metabolites in the
22urine, blood, saliva, breath, hair, or other tissue or fluid of
23a person who is twenty-one years of age or older.
243. No person shall be denied custody of or visitation with a
25minor for acting in accordance with this subchapter, unless the
26person’s behavior creates an unreasonable danger to the minor
27that can be clearly articulated and substantiated.
284. Except as provided in this section, neither the state
29nor any of its political subdivisions shall deny employment
30or a contract to a person for engaging in conduct permitted
31under this subchapter, for a prior conviction for a nonviolent
32marijuana offense that does not involve distribution to minors,
33or for testing positive for the presence of cannabinoids or
34cannabinoid metabolites in the urine, blood, saliva, breath,
35hair, or other tissue or fluid of the individual’s body.
-23- 15. For the purposes of medical care, including organ and
2tissue transplants, the use of marijuana does not constitute
3the use of an illicit substance or otherwise disqualify a
4person from needed medical care and may only be considered with
5respect to evidence-based clinical criteria.
66. Notwithstanding any other provision of law to the
7contrary, unless there is a specific finding that the
8individual’s use, cultivation, or possession of marijuana could
9create a danger to the individual or another person, it shall
10not be a violation of conditions of parole, probation, or
11pretrial release to do any of the following:
12a. Engage in conduct allowed by this subchapter.
13b. Test positive for marijuana, delta-9
14tetrahydrocannabinol, or any other cannabinoid or metabolite
15of marijuana.
167. a. This section does not prevent a governmental employer
17from disciplining an employee or contractor for ingesting
18marijuana in the workplace or for working while impaired by
19marijuana.
20b. The protections provided by this section do not apply to
21the extent that they conflict with a governmental employer’s
22obligations under federal law or regulations or to the extent
23that they would disqualify the entity from a monetary or
24licensing-related benefit under federal law or regulations.
25c. This section does not authorize any person to engage in,
26and does not prevent the imposition of any civil, criminal,
27discipline, or other penalties, including discipline or
28termination by a governmental employer, any task while under
29the influence of marijuana, when doing so would constitute
30negligence or professional malpractice.
31 Sec. 35. NEW SECTION. 124F.20 Discipline.
32In addition to any other sanctions prescribed by this
33subchapter or rules promulgated pursuant to this subchapter,
34the division has the power, on its own motion or upon
35complaint, after investigation and opportunity for a public
-24-1hearing at which a licensee must be afforded an opportunity
2to be heard, to fine a licensee or to suspend or revoke
3a license issued by the division for a violation by the
4licensee or by any of the agents or employees of the licensee
5of the provisions of this subchapter, or any of the rules
6promulgated pursuant to this subchapter, or of any of the
7terms, conditions, or provisions of the license issued by the
8division. The division has the power to administer oaths and
9issue subpoenas to require the presence of persons and the
10production of papers, books, and records necessary to the
11determination of a hearing that the division is authorized to
12conduct. The division shall conduct a contested case pursuant
13to chapter 17A prior to imposing discipline, except in the case
14of an emergency adjudication.
15 Sec. 36. NEW SECTION. 124F.21 Disposition of seized
16materials.
171. This section shall apply in addition to any criminal,
18civil, or administrative penalties and in addition to any
19other penalties prescribed by this subchapter or any rules
20promulgated pursuant to this subchapter.
212. A state or local agency shall not be required to
22cultivate or care for any retail marijuana or retail marijuana
23product belonging to or seized from a licensee. A state or
24local agency shall not be authorized to sell marijuana or
25retail marijuana.
263. If the division issues a final order imposing a
27disciplinary action against a licensee pursuant to section
28124F.20, then, in addition to any other remedies, the
29division’s final order may specify that some or all of the
30licensee’s marijuana or marijuana product is not retail
31marijuana or a retail marijuana product and is an illegal
32controlled substance. The final order may further specify that
33the licensee shall lose any interest in any of the marijuana or
34marijuana product even if the marijuana or marijuana product
35previously qualified as retail marijuana or a retail marijuana
-25-1product.
24. On or before January 1, 2024, the division shall adopt
3rules governing the implementation of this section.
4 Sec. 37. NEW SECTION. 124F.22 Inspection procedures.
51. A licensee shall keep a complete set of all records
6necessary to show fully the business transactions of the
7licensee, all of which shall be accessible at all times during
8business hours for inspection and examination by the division
9or its authorized representatives. The division may require
10a licensee to furnish such information as necessary for the
11proper administration of this subchapter and may require an
12audit to be made of the books of account and records on such
13occasions as necessary by an auditor selected by the division
14who shall have access to all books and records of the licensee.
15All associated expenses shall be paid by the licensee.
162. Any licensed premises, including any places of storage
17where retail marijuana or retail marijuana products are stored,
18cultivated, sold, dispensed, or tested shall be subject to
19inspection by the state or local jurisdictions and their
20investigators, during all business hours and during other times
21when employees are present, for the purpose of inspection
22or investigation. Access shall be required during business
23hours for examination of any inventory or books and records
24required to be kept by the licensees. If any part of the
25licensed premises consists of a locked area, upon demand to
26the licensee, such area shall be made available for inspection
27without delay, and, upon request by authorized representatives
28of the state or local jurisdiction, the licensee shall open the
29area for inspection.
303. A licensee shall retain all books and records necessary
31to show fully the business transactions of the licensee for
32a period of the current tax year and the three immediately
33preceding tax years.
34 Sec. 38. NEW SECTION. 124F.23 Marijuana excise tax.
351. An excise tax is imposed on consumers at the rate of
-26-1twenty percent of the sales price of each sale of retail
2marijuana and retail marijuana products.
32. The tax imposed by this section shall be paid by the
4consumer to the retail marijuana establishment. Each retail
5marijuana establishment shall collect from the consumer the
6full amount of the tax payable on each taxable sale.
73. On the fifteenth day of each month, each retail marijuana
8establishment that sells retail marijuana to a consumer shall
9pay the excise taxes due on the retail marijuana that the
10retail marijuana establishment sold in the previous calendar
11month to the division.
124. The retail marijuana excise tax shall be separately
13itemized from a local marijuana excise tax on the receipt
14provided to the purchaser.
15 Sec. 39. NEW SECTION. 124F.24 Occupational licensing —
16protections.
171. A person holding a professional or occupational license
18shall not be subject to professional discipline for providing
19advice or services related to retail marijuana establishments
20or applications to operate retail marijuana establishments on
21the basis that marijuana is illegal under federal law.
222. An applicant for a professional or occupational license
23shall not be denied a license based on previous employment
24related to retail marijuana establishments operating in
25accordance with state law.
26 Sec. 40. NEW SECTION. 124F.25 Rulemaking.
271. The division shall, within one hundred eighty days of the
28effective date of this Act, adopt rules for the implementation
29of this subchapter. The rules shall not prohibit the operation
30of retail marijuana establishments or require such a high
31investment of risk, money, time, or other resource or asset
32that the operation of a retail marijuana establishment is not
33worthy of being carried out in practice by a reasonably prudent
34businessperson. Such rules shall include all of the following:
35a. Procedures for the issuance, renewal, suspension, and
-27-1revocation of a registration to operate a retail marijuana
2establishment, subject to chapter 17A.
3b. A schedule of reasonable application, registration,
4and renewal fees, provided application fees shall not exceed
5five thousand dollars, with this upper limit adjusted annually
6for inflation, unless the division determines a greater fee
7is necessary to carry out its responsibilities under this
8subchapter. Fees shall be collected by the division and used
9to administer this subchapter.
10c. Qualifications for registration that are directly and
11demonstrably related to the operation of a retail marijuana
12establishment and that may not disqualify applicants solely for
13marijuana offenses prior to the effective date of this Act.
14d. Security requirements.
15e. Requirements for the transportation and storage of retail
16marijuana and retail marijuana products by retail marijuana
17establishments.
18f. Requirements for the delivery of retail marijuana and
19retail marijuana products to consumers, including a prohibition
20on business names, logos, and other identifying language or
21images on delivery vehicles and a prohibition on delivering
22retail marijuana and retail marijuana products to any address
23located on land owned by the federal government or any address
24on land or in a building leased by the federal government.
25g. Employment and training requirements, including
26requiring that each retail marijuana establishment create
27an identification badge for each employee or agent. These
28requirements shall not disqualify applicants solely for
29marijuana offenses prior to the effective date of this Act.
30h. Requirements designed to prevent the sale or diversion of
31retail marijuana and retail marijuana products to persons under
32the age of twenty-one.
33i. Requirements for retail marijuana and retail
34marijuana products sold or distributed by a retail marijuana
35establishment, including prohibiting any misleading labeling
-28-1and requiring retail marijuana product labels to include all
2of the following:
3(1) The length of time it typically takes for the product
4to take effect.
5(2) A disclosure of ingredients and possible allergens.
6(3) A nutritional fact panel.
7(4) Requiring opaque, child resistant packaging, which must
8be designed or constructed to be significantly difficult for
9children under five years of age to open and not difficult for
10adults to use properly as defined by 16 C.F.R. §1700.20.
11(5) Requiring that edible retail marijuana products be
12clearly identifiable, when practicable, with a standard symbol
13indicating the retail marijuana product contains marijuana.
14j. Health and safety regulations and standards for the
15manufacture of retail marijuana products and both the indoor
16and outdoor cultivation of retail marijuana by retail marijuana
17establishments.
18k. Restrictions on advertising, marketing, and signage
19including but not limited to a prohibition on mass-market
20campaigns that have a high likelihood of reaching minors.
21l. Rules to create at least six tiers of retail marijuana
22cultivation facilities, based on the size of the facility or
23the number of plants cultivated, and whether the cultivation
24occurs outdoors, indoors, or in a greenhouse. Security
25regulations and licensing fees must vary based on the size of
26the cultivation facility.
27m. Restrictions or prohibitions on additives in retail
28marijuana and retail marijuana-infused products, including but
29not limited to those that are toxic or designed to make the
30product more addictive.
31n. Prohibitions on products that are designed to make the
32product more appealing to children, including prohibiting the
33use of any images designed or likely to appeal to minors,
34including cartoons, toys, animals, or children, and any other
35images, characters, or phrases that are popularly used to
-29-1advertise to children.
2o. Restrictions on the use of pesticides that are injurious
3to human health.
4p. Rules governing visits to retail marijuana cultivation
5facilities and retail marijuana product manufacturing
6facilities, including requiring the retail marijuana
7establishment to log visitors.
8q. A definition of the amount of delta-9
9tetrahydrocannabinol that constitutes a single serving
10in a retail marijuana product.
11r. Standards for the safe manufacture of marijuana extracts
12and concentrates.
13s. Requirements that educational materials be disseminated
14to consumers who purchase retail marijuana-infused products.
15t. Requirements for random sample testing to ensure quality
16control, including by ensuring that retail marijuana and
17retail marijuana-infused products are accurately labeled for
18potency. Unless the division determines that remediation or
19treatment is sufficient to ensure product safety, the testing
20analysis must include testing for residual solvents, poisons,
21or toxins; harmful chemicals; dangerous molds or mildew; filth;
22and harmful microbials such as E. coli or salmonella and
23pesticides.
24u. Standards for the operation of marijuana testing
25facilities, including requirements for equipment and
26qualifications for personnel.
27v. Civil penalties for the failure to comply with rules
28adopted pursuant to this subchapter. Civil penalties shall
29be collected by the division and used to administer this
30subchapter.
31w. Procedures for collecting taxes levied on retail
32marijuana establishments.
33x. Requirements for on-site consumption establishments,
34including for security, ventilation, odor control, and
35consumption by patrons. These rules may include a prohibition
-30-1on smoking indoors.
22. After consultation with researchers knowledgeable
3about the risks and benefits of marijuana and providing an
4opportunity for public comment, the division shall develop a
5scientifically accurate safety information label or handout
6or both, which shall be available to each adult-use marijuana
7consumer. The label or handout shall include all of the
8following:
9a. Advice about the potential risks of marijuana, including
10all of the following:
11(1) The risks of driving under the influence of marijuana,
12and the fact that doing so is illegal.
13(2) Any adverse effects unique to younger adults, including
14related to the developing mind.
15(3) Potential adverse events and other risks.
16(4) The risks of using marijuana during pregnancy and
17breastfeeding.
18b. The need to safeguard all retail marijuana and retail
19marijuana products from children and pets.
203. The division shall review and update the safety
21information materials at least once every two years to
22ensure they remain accurate. The review period shall include
23soliciting input from researchers knowledgeable about the
24risks and benefits of marijuana and an opportunity for public
25comment.
264. In order to ensure that individual privacy is protected,
27the division shall not require a consumer to provide a
28retail marijuana store with personal information other than
29government-issued identification to determine the consumer’s
30age, and a retail marijuana store shall not be required to
31acquire and record personal information about consumers.
32 Sec. 41. NEW SECTION. 124F.26 Driving under the influence
33of marijuana — prohibited.
34Nothing in this subchapter allows driving under the
35influence of marijuana or while impaired by marijuana.
-31-1 Sec. 42. NEW SECTION. 124F.27 Marijuana use by minors —
2prohibited.
3Nothing in this subchapter allows the transfer of marijuana,
4with or without remuneration, to a person under the age of
5twenty-one years, or the use of marijuana by a person under the
6age of twenty-one years.
7 Sec. 43. NEW SECTION. 124F.28 Private property and tenant
8rights.
91. Except as provided in this section, the provisions of
10this subchapter do not require any person, corporation, or any
11other entity that occupies, owns, or controls a property to
12allow the consumption, cultivation, display, sale, or transfer
13of marijuana on or in that property.
142. a. Except as provided in this section, a landlord
15or property manager shall not refuse to rent to a tenant
16or otherwise discriminate against a tenant based on a past
17conviction for a marijuana offense that would have been legal
18under this chapter.
19b. Except as provided in this section, in the case of
20the rental of a residential dwelling, a landlord or property
21manager shall not prohibit the possession of retail marijuana
22or the consumption of retail marijuana by nonsmoking means.
23c. The limitations in this subsection do not apply in any
24of the following circumstances:
25(1) The tenant is a roomer who is not leasing the entire
26residential dwelling.
27(2) The residence is incidental to detention or the
28provision of medical, geriatric, educational, counseling,
29religious, or similar services.
30(3) The residence is a transitional housing or sober living
31facility.
32(4) Failing to prohibit marijuana possession or consumption
33would violate federal law or regulations or cause a landlord
34or property manager to lose a monetary or licensing-related
35benefit under federal law or regulations.
-32- 1d. After a warning, a landlord or property manager may
2take action against a tenant if the tenant’s use of marijuana
3creates an odor that interferes with a person’s peaceful
4enjoyment of the person’s home or property.
5 Sec. 44. NEW SECTION. 124F.29 Contracts enforceable.
6It is the public policy of this state that contracts related
7to the operation of a retail marijuana establishment registered
8pursuant to this subchapter should be enforceable. It is
9the public policy of this state that no contract entered
10into by a retail marijuana establishment or its employees
11or agents as permitted pursuant to a valid registration, or
12by those who allow property to be used by an establishment,
13its employees, or its agents as permitted pursuant to a
14valid registration, shall be unenforceable on the basis
15that cultivating, obtaining, manufacturing, distributing,
16dispensing, transporting, selling, possessing, or using
17marijuana or hemp is prohibited by federal law.
18 Sec. 45. NEW SECTION. 124F.30 Law enforcement —
19limitations.
201. No law enforcement officer employed by an agency that
21receives state or local government funds shall expend any state
22or local resources, including the officer’s time, to effect any
23arrest or seizure of marijuana, or conduct any investigation,
24on the sole basis of activity the officer believes to
25constitute a violation of federal law, if the officer has
26reason to believe that such activity is in compliance with
27this chapter, nor shall any such officer expend any state or
28local resources, including the officer’s time, to provide any
29information or logistical support related to such activity to
30any federal law enforcement authority or prosecuting entity.
312. No agency or political subdivision of this state shall
32rely on a violation of federal law related to marijuana as the
33sole basis for taking an adverse action against a person.
34 Sec. 46. NEW SECTION. 124F.31 Apportionment of revenue.
35Revenues generated in excess of the amount needed to
-33-1implement and enforce this subchapter by the marijuana excise
2tax shall be distributed by the division every three months as
3follows:
41. Seven percent to the Iowa department of public health for
5use in evidence-based, voluntary programs for the prevention or
6treatment of substance abuse.
72. Seventeen percent to the Iowa department of public health
8for enhancement of the state’s mental health systems.
93. Up to one percent to the department of public safety
10to fund impaired driving enforcement and drug recognition
11training. If the entire one percent is not needed for
12training, any excess shall be distributed to the general fund.
134. Seventy-five percent to the general fund.
14 Sec. 47. NEW SECTION. 423H.1 Definitions.
15For the purposes of this chapter, unless the context
16otherwise requires, “retail marijuana”, “retail marijuana
17establishment”, and “retail marijuana product” mean the same as
18defined in section 124F.7.
19 Sec. 48. NEW SECTION. 423H.2 Local marijuana excise tax.
201. A municipality may by ordinance adopt an excise tax at a
21rate of no more than three percent of the sales price of each
22sale of retail marijuana and retail marijuana products to a
23consumer under the jurisdiction of the municipality pursuant
24to chapter 124F, subchapter II.
252. A municipality shall provide notice of the imposition
26of an excise tax under this section and the amount of the tax
27to the department of revenue at least ninety days prior to
28the first day of the tax quarter when the excise tax will be
29collected.
303. A local marijuana excise tax imposed pursuant to this
31section shall be paid by the consumer to the retail marijuana
32establishment. Each retail marijuana establishment shall
33collect from the consumer the full amount of the tax payable on
34each taxable sale.
354. On the fifteenth day of each month, each retail marijuana
-34-1establishment that sells retail marijuana to a consumer
2shall pay the local marijuana excise taxes due on the retail
3marijuana that the retail marijuana establishment sold in the
4previous calendar month to the municipality.
55. The local marijuana excise tax imposed by this section
6is separate from and in addition to the marijuana excise tax
7imposed pursuant to section 124F.23. The local marijuana
8excise tax imposed pursuant to this section shall not be part
9of the sales price to which the marijuana excise tax applies.
106. The local marijuana excise tax shall be separately
11itemized from the marijuana excise tax imposed pursuant to
12section 124F.23 on the receipt provided to the purchaser.
13 Sec. 49. NEW SECTION. 453B.19 Retail marijuana.
14This chapter shall not apply to retail marijuana or retail
15marijuana products produced or sold pursuant to chapter 124F.
16 Sec. 50. SUBCHAPTER DESIGNATIONS.
171. The Code editor is directed to create two new subchapters
18in chapter 124F as follows:
19a. Subchapter I shall be entitled “criminal penalties” and
20include sections 124F.1 through 124F.5.
21b. Subchapter II shall be entitled “retail marijuana” and
22include sections 124F.6 through 124F.31.
232. The Code editor may modify subchapter titles if necessary
24and is directed to correct internal references in the Code as
25necessary due to enactment of this section.
26 Sec. 51. EFFECTIVE DATE. This Act takes effect January
271, 2024, except that the alcoholic beverages division of the
28department of commerce may adopt rules for the implementation
29of this Act prior to that date.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33DIVISION I — CRIMINAL PENALTIES. This bill modifies
34criminal penalties relating to marijuana by eliminating and
35modifying certain criminal provisions in Code chapter 124
-35-1(uniform controlled substances Act), and transferring certain
2criminal provisions from Code chapter 124 to new Code chapter
3124F.
4MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER
5MARIJUANA. The bill provides that an unauthorized person
6commits a class “C” felony punishable by confinement for
7no more than 10 years and a fine of at least $1,370 but not
8more than $13,660 if the person violates new Code section
9124F.2(1)(a) and the controlled substance involves more than
1022 kilograms of marijuana. Currently, such a person commits
11a class “B” felony punishable by confinement of no more than
1250 years if the controlled substance involves more than 1,000
13kilograms of a mixture or substance containing a detectable
14amount of marijuana, or a class “B” felony punishable by
15confinement of no more than 25 years if the controlled
16substance involves more than 100 kilograms of marijuana but not
17more than 1,000 kilograms.
18The bill provides that an unauthorized person commits a
19class “D” felony if the person violates new Code section
20124F.2(1)(b) and the controlled substance involves more than
212 kilograms of marijuana but not more than 22 kilograms. A
22class “D” felony is punishable by confinement for no more than
23five years and a fine of at least $1,025 but not more than
24$10,245. Currently, such a person commits a class “C” felony
25if the controlled substance involves more than 50 kilograms of
26marijuana but not more than 100 kilograms.
27The bill provides that an unauthorized person commits an
28aggravated misdemeanor if the person violates new Code section
29124F.2(1)(c) and the controlled substance involves more than
3012 ounces of marijuana but not more than 2 kilograms. An
31aggravated misdemeanor is punishable by confinement for no more
32than two years and a fine of at least $855 but not more than
33$8,540. Currently, such a person commits a class “D” felony
34if the controlled substance involves 50 kilograms or less of
35marijuana.
-36- 1The bill provides that an unauthorized person commits a
2serious misdemeanor if the person violates new Code section
3124F.2(1)(d) and the controlled substance involves more than
44 ounces of marijuana but not more than 12 ounces. A serious
5misdemeanor is punishable by confinement for no more than one
6year and a fine of at least $430 but not more than $2,560.
7Currently, such a person commits a class “D” felony.
8The bill provides that an unauthorized person commits a
9simple misdemeanor if the person violates new Code section
10124F.2(1)(e) and the controlled substance involves 4 ounces or
11less of marijuana except as otherwise provided in the bill. A
12simple misdemeanor is punishable by confinement for no more
13than 30 days and a fine of at least $105 but not more than $855.
14Currently, such a person commits a class “D” felony.
15POSSESSION OF MARIJUANA. The bill provides that if a person
16unlawfully possesses more than 6 ounces of marijuana but not
17more than 12 ounces, the person commits a serious misdemeanor.
18The bill provides that if a person unlawfully possesses more
19than one-half ounce of marijuana but not more than 6 ounces,
20the person commits a simple misdemeanor.
21The bill provides that if a person 21 years of age or older
22possesses one-half ounce or less of marijuana, the person
23does not commit a criminal offense but shall be assessed a
24civil penalty in the amount of $100. If the person is under
2521 years of age, the offense shall be punishable as a serious
26misdemeanor, which may be expunged after two years if the
27person does not commit additional criminal violations other
28than traffic offenses. The bill provides that any records
29relating to the civil penalty shall not be displayed for public
30viewing on the Iowa court information system and such records
31shall not be kept in the criminal history files maintained by
32the department of public safety.
33The bill allows a municipality to adopt an ordinance to allow
34for the legal possession of marijuana.
35RETAIL MARIJUANA — POSSESSION LIMITS. The bill establishes
-37-1possession limits for retail marijuana, defined in the
2bill. The bill prohibits a resident of Iowa 21 years of
3age or older from possessing more than 30 grams of marijuana
4flower, 5 grams of marijuana concentrate, or 500 milligrams
5of tetrahydrocannabinol contained in a product infused with
6marijuana. Persons 21 years of age or older who are not
7residents of Iowa may possess retail marijuana of no more
8than 15 grams of marijuana flower, 2.5 grams of marijuana
9concentrate, or 250 milligrams of tetrahydrocannabinol
10contained in a product infused with marijuana. A person in
11possession of retail marijuana in excess of amounts equivalent
12to the amounts specified in the bill for the possession of
13marijuana is subject to prosecution for a simple or serious
14misdemeanor or a civil penalty. A retail marijuana store that
15sells retail marijuana in excess of such amounts is subject to
16a fine or other discipline imposed by the division.
17Currently, if a person unlawfully possesses marijuana, the
18person shall be punished by imprisonment in the county jail for
19not more than six months or by a fine of not more than $1,000,
20or by both for a first offense. If the person has previously
21been convicted of marijuana possession, the person commits a
22serious misdemeanor under current law, and if the person has
23been convicted of marijuana possession two or more times, the
24person commits an aggravated misdemeanor.
25DELIVERY OR POSSESSION OF MARIJUANA — SMALL AMOUNTS. If
26the amount of marijuana delivered or possessed with intent to
27deliver is one ounce or less and no remuneration was provided,
28the defendant shall not be prosecuted for a violation of the
29bill.
30MARIJUANA USE IN PUBLIC. The bill prohibits the consumption
31of marijuana in areas open and accessible to the public,
32including but not limited to public transportation facilities,
33sporting or music venues, parks, playgrounds, sidewalks and
34roads, outdoor cafes, or indoor but public locations. A person
35who violates this provision commits a simple misdemeanor
-38-1punishable as a scheduled violation in the amount of $50 for
2a first offense and $100 for a second or subsequent offense.
3This violation may be expunged after two years if the person
4does not commit additional criminal violations other than
5traffic offenses.
6JUVENILE MARIJUANA OFFENSES. The bill specifies that the
7juvenile court shall have exclusive original jurisdiction in a
8proceeding concerning a minor who is alleged to have committed
9a violation of the bill.
10GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED.
11 The bill strikes a provision making it a serious misdemeanor
12for a person to sponsor, promote, or aid in the sponsoring
13or promoting of a meeting or gathering with the knowledge or
14intent that marijuana be distributed, used, or possessed at the
15meeting or gathering in violation of Code chapter 124.
16ACCOMMODATION OFFENSE. The bill strikes a provision
17allowing a prosecution for unlawful delivery or possession with
18intent to deliver marijuana, if the prosecution proves that
19the defendant delivered or possessed with intent to deliver
20one-half ounce or less of marijuana which was not offered for
21sale, the defendant is guilty of an accommodation offense
22and rather than being sentenced for a class “D” felony under
23Code section 124.401(1)(d), the person is sentenced for a
24misdemeanor in violation of Code section 124.401(5). The bill
25makes conforming changes to Code sections 124.401G (Iowa hemp
26Act) and 124.413 (mandatory minimum sentences — controlled
27substances).
28SECOND OR SUBSEQUENT OFFENSES. Currently, a person
29convicted of a second or subsequent offense under Code chapter
30124 may be punished by imprisonment for a period not to exceed
31three times the term otherwise authorized, or fined not more
32than three times the amount otherwise authorized. The bill
33strikes the provision that allows for the use of a previous
34marijuana conviction in determining if a person has been
35convicted of a second or subsequent offense under Code chapter
-39-1124.
2MARIJUANA IN MOTOR VEHICLES. The bill prohibits a driver
3of a motor vehicle upon a public street or highway from using
4marijuana in the passenger area of the motor vehicle. The bill
5also prohibits a driver or passenger of or in a motor vehicle
6upon a public street or highway from possessing marijuana in
7the passenger area of a motor vehicle except in a sealed, odor
8proof, child resistant container. The bill defines “passenger
9area” as the area designed to seat the driver and passengers
10while the motor vehicle is in operation and any area that is
11readily accessible to the driver or a passenger while in their
12seating positions, including the glove compartment. A person
13who knowingly violates this provision of the bill is guilty of
14a simple misdemeanor. A simple misdemeanor is punishable by
15confinement for no more than 30 days and a fine of at least $105
16but not more than $855.
17DIVISION II — RETAIL MARIJUANA. Division II of the
18bill relates to the regulation of retail marijuana in Iowa.
19The bill grants the alcoholic beverages division of the
20department of commerce (division) the authority to regulate the
21cultivation, production, transportation, testing, and sale of
22retail marijuana and retail marijuana products, including by
23issuing appropriate licenses and promulgating rules.
24The bill requires the division to transfer half of any
25application fee collected to the local jurisdiction in which
26the retail marijuana establishment will be located. The
27bill allows local jurisdictions to impose limitations on the
28operation of retail marijuana establishments, including by
29prohibiting their operation.
30The bill directs the division to develop and maintain a
31seed-to-sale tracking system to track retail marijuana from the
32seed or immature plant stage until it is sold to a consumer at a
33retail marijuana establishment.
34LOCAL LICENSES. The bill requires the division to transmit
35any application for a retail marijuana establishment it
-40-1receives to the local jurisdiction where the establishment
2will be located within seven days of receipt unless the
3local jurisdiction has prohibited the operation of retail
4marijuana establishments. The local jurisdiction must then
5inform the division whether the application complies with
6any local restrictions on the operation of retail marijuana
7establishments it may have imposed. The bill requires a person
8to receive approval from both the division and the local
9jurisdiction before operating a retail marijuana establishment.
10A person whose application for a license is denied is entitled
11to a hearing and judicial review pursuant to Code chapter 17A.
12LICENSES. Ninety days prior to the expiration date of an
13existing license, the division shall notify the licensee of the
14expiration date by first class mail at the licensee’s address
15of record with the division. A licensee may apply for the
16renewal of an existing license to the division not less than 30
17days prior to the date of expiration.
18RETAIL MARIJUANA STORES. The bill allows a retail marijuana
19store to purchase retail marijuana from a retail marijuana
20cultivation facility. A retail marijuana store may also
21sell prepackaged and labeled retail marijuana products. A
22retail marijuana store must track all of its retail marijuana
23and retail marijuana products from the point that they are
24transferred to the retail marijuana store to the point of
25sale. The bill prohibits a retail marijuana store from selling
26more than one ounce of retail marijuana or its equivalent
27in a single transaction to a person, excluding nonedible,
28nonpsychoactive retail marijuana products.
29Prior to initiating a sale, the bill requires a retail
30marijuana store employee to verify that that purchaser has a
31valid identification card showing that the person is 21 years
32of age or older. If a purchaser presents a retail marijuana
33store employee with fraudulent proof of age, any action taken
34in reliance on that proof of age shall not be grounds for the
35revocation or suspension of a license.
-41- 1The bill allows a retail marijuana store to provide to the
2state hygienic laboratory a sample of its products for testing
3and research purposes. The retail marijuana store shall
4maintain a record of what was provided to the laboratory and
5the results of the testing.
6The bill prohibits a retail marijuana store from selling
7any products other than retail marijuana, retail marijuana
8products, marijuana accessories, nonconsumable products such as
9apparel, and marijuana products such as childproof packaging
10containers.
11RETAIL MARIJUANA CULTIVATION. The bill allows the division
12to issue up to 20 retail marijuana cultivation facility
13licenses to persons who cultivate retail marijuana for sale
14and distribution to retail marijuana stores, manufacturers,
15or other cultivation facilities. The bill requires a retail
16marijuana cultivation facility to remit any applicable tax due.
17The bill also requires a retail marijuana cultivation facility
18to track the marijuana it cultivates from seed or immature
19plant to wholesale purchase.
20RETAIL MARIJUANA PRODUCTS MANUFACTURING LICENSES. The bill
21allows the division to issue up to 20 retail marijuana products
22manufacturing licenses to persons who manufacture retail
23marijuana products. The bill requires a retail marijuana
24products manufacturer to track all of its retail marijuana from
25the point it is either transferred from its retail marijuana
26cultivation facility or the point when it is delivered to the
27retail marijuana products manufacturer from a retail marijuana
28cultivation facility to the point of transfer to a retail
29marijuana store.
30The bill requires retail marijuana products to be
31manufactured and prepared in a facility that only manufactures
32retail marijuana products, except that premises may be shared
33with a medical cannabidiol-infused products manufacturer so
34long as a virtual or physical separation of inventory is
35maintained.
-42- 1RETAIL MARIJUANA TRANSPORTATION. The bill allows the
2division to issue a retail marijuana transporter license to
3a person to provide logistics, distribution, and storage of
4retail marijuana and retail marijuana products. The bill
5requires a retail marijuana transporter to use the seed-to-sale
6tracking system to create shipping manifests documenting the
7transport of retail marijuana and retail marijuana products.
8RETAIL MARIJUANA USE — PROTECTIONS. The bill prohibits
9the state and its political subdivisions from taking certain
10actions against a person on the basis that the person has
11engaged in conduct allowed by the bill. The state and its
12political subdivisions shall not prosecute a person, deny a
13person a professional license, deny a person a benefit or
14entitlement, deny a person custody or visitation of a child,
15deny a person employment or a contract, or deny a person
16medical care on the basis that the person has engaged in
17conduct allowed by the bill. The bill also prohibits the
18state or a political subdivision from denying employment
19or a contract to a person on the basis of a person’s prior
20conviction of a nonviolent marijuana offense that does not
21involve distribution to a minor. The bill excludes engaging
22in conduct allowed by the bill from being classified as a
23violation of a condition of parole, probation, or pretrial
24release unless there is a specific finding that the conduct
25could create a danger to the individual or another person.
26The bill does not prohibit a governmental employer from
27disciplining an employee or contractor for ingesting marijuana
28at work or working while impaired by marijuana, nor does it
29prohibit a licensing board from imposing a penalty on a person
30for engaging in conduct that would constitute negligence or
31professional malpractice. The protections of the bill do not
32apply to the extent that they conflict with a governmental
33employer’s obligations under federal law or would disqualify
34a governmental employer from a monetary or licensing-related
35benefit under federal law.
-43- 1FEES. The bill allows the division to collect and charge
2fees. The bill sets the application fee for a person applying
3for a new retail marijuana establishment license at $5,000,
4which shall be divided evenly between the division and the
5local jurisdiction where the license is proposed to be issued.
6The bill permits a local jurisdiction to impose operating fees
7on retail marijuana establishments to which it has granted a
8license.
9LICENSE DISCIPLINE. The bill permits the division, on its
10own motion or complaint, and after investigation, notice,
11a public hearing, and opportunity to be heard, to suspend
12or revoke a license if the licensee or any of its agents or
13employees violate a provision of the bill or a rule promulgated
14by the division. The division may administer oaths and issue
15subpoenas to require the presence of persons and the production
16of documents. The division may impose discipline pursuant to
17rules and Code chapter 17A.
18INSPECTION. The bill requires a licensee to keep a complete
19set of all records necessary to show fully the business
20transactions of the licensee, all of which shall be open at all
21times during business hours for the inspection and examination
22by the division or its duly authorized representatives.
23The bill requires the licensed premises of a retail
24marijuana establishment, including any places of storage
25where retail marijuana or retail marijuana products are
26stored, cultivated, sold, dispensed, or tested to be subject
27to inspection by the state or local jurisdictions and their
28investigators, during all business hours and other times
29of apparent activity, for the purpose of inspection or
30investigation.
31STATE EXCISE TAX. The bill imposes an excise tax on
32consumers at the rate of 20 percent of the sale price on
33each sale of retail marijuana. The tax shall be paid by the
34consumer to the retail marijuana establishment at the time
35of sale, and each retail marijuana establishment shall remit
-44-1the tax collected to the division on the 15th day of each
2month. Revenues generated by the excise tax shall be used to
3administer the retail marijuana program. Excess funds shall be
4distributed as provided by the bill to the Iowa department of
5public health, the department of public safety, and the general
6fund of the state.
7OCCUPATIONAL LICENSING PROTECTIONS. The bill prohibits a
8professional or occupational licensing board from imposing
9discipline on a licensee for providing services related to
10retail marijuana establishments. The bill also prohibits a
11professional or occupational licensing board from denying a
12license to a person based on a person’s past employment with a
13retail marijuana establishment.
14RULEMAKING. The bill requires the alcoholic beverages
15division to adopt rules within 180 days of the effective date
16of the bill to adopt rules for the implementation of the bill.
17The rules shall not prohibit the operation of retail marijuana
18establishments or make the operation of retail marijuana
19establishments so costly as to be impractical. Required rules
20include but are not limited to rules relating to applications,
21fees, licensure, security requirements, labeling requirements,
22health and safety requirements, restrictions on advertising,
23cultivation, testing, and penalties. The division shall also
24develop and regularly update safety materials to be distributed
25upon the sale of retail marijuana.
26ACTS PROHIBITED. The bill does not allow driving while under
27the influence of or impaired by marijuana and does not allow
28the transfer of marijuana to a person under 21 years of age or
29the possession of marijuana by a person under 21 years of age.
30PROPERTY RIGHTS. The bill does not require the owner of
31a property to allow the consumption, cultivation, display,
32sale, or transfer of marijuana at that property. However, in
33the case of a residential dwelling, a landlord or property
34manager shall not prohibit the possession of retail marijuana
35or the consumption of retail marijuana by means other than
-45-1smoking except under certain circumstances. The bill allows
2a landlord to take action against a tenant after a warning if
3the tenant’s use of marijuana creates an odor that interferes
4with the peaceful enjoyment of property by other tenants. The
5bill prohibits a landlord from discriminating against a tenant
6or applicant on the basis of a past conviction of a marijuana
7offense that would have been legal under the bill.
8CONTRACTS. The bill states that it is the public policy
9of the state that contracts relating to retail marijuana
10shall not be unenforceable on the basis that the production,
11distribution, and possession of marijuana is prohibited by
12federal law.
13LAW ENFORCEMENT. The bill prohibits law enforcement
14agencies from expending resources on the investigation of or
15arrest for activity related to marijuana that is in violation
16of federal law if the officer performing the investigation
17or arrest has reason to believe that the activity complies
18with the requirements of the bill. The bill also prohibits
19an agency or political subdivision of the state from taking
20an adverse action against a person on the sole basis that the
21person has violated a federal law related to marijuana.
22LOCAL EXCISE TAX. The bill allows a municipality to adopt
23by ordinance an excise tax of no more than 3 percent on retail
24marijuana sold in the municipality. The bill requires a
25municipality to inform the department of revenue at least 90
26days prior to the first day of the tax quarter when the excise
27tax will be collected. The tax shall be paid by the consumer
28to the retail marijuana establishment at the time of sale,
29and each retail marijuana establishment shall remit the tax
30collected to the municipality on the 15th day of each month.
31The bill takes effect January 1, 2024, except that the
32alcoholic beverages division may adopt rules prior to that date
33for the implementation of the bill.
-46-ss/rh
2delivery, and possession of marijuana and the licensure of
3retail marijuana, providing fees, including excise taxes,
4establishing funds, and including penalties.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2CRIMINAL PENALTIES
3 Section 1. Section 124.401, subsection 1, unnumbered
4paragraph 1, Code 2023, is amended to read as follows:
5Except as authorized by this chapter or chapter 124E or
6124F, it is unlawful for any person to manufacture, deliver, or
7possess with the intent to manufacture or deliver, a controlled
8substance, a counterfeit substance, a simulated controlled
9substance, or an imitation controlled substance, or to act
10with, enter into a common scheme or design with, or conspire
11with one or more other persons to manufacture, deliver, or
12possess with the intent to manufacture or deliver a controlled
13substance, a counterfeit substance, a simulated controlled
14substance, or an imitation controlled substance.
15 Sec. 2. Section 124.401, subsection 1, paragraph a,
16subparagraph (6), Code 2023, is amended by striking the
17subparagraph.
18 Sec. 3. Section 124.401, subsection 1, paragraph b,
19subparagraph (6), Code 2023, is amended by striking the
20subparagraph.
21 Sec. 4. Section 124.401, subsection 1, paragraph c,
22subparagraph (5), Code 2023, is amended by striking the
23subparagraph.
24 Sec. 5. Section 124.401, subsection 1, paragraph c,
25subparagraph (9), Code 2023, is amended to read as follows:
26(9) Any other controlled substance, counterfeit substance,
27simulated controlled substance, or imitation controlled
28substance classified in schedule I, II, or III, except as
29provided in paragraph “d”, or in chapter 124E or 124F.
30 Sec. 6. Section 124.401, subsection 1, paragraph d, Code
312023, is amended to read as follows:
32d. Violation of this subsection, with respect to any other
33controlled substances, counterfeit substances, simulated
34controlled substances, or imitation controlled substances
35classified in schedule IV or V is an aggravated misdemeanor.
-1-1However, violation of this subsection involving fifty kilograms
2or less of marijuana or involving flunitrazepam is a class “D”
3felony.
4 Sec. 7. Section 124.401, subsection 5, paragraph b, Code
52023, is amended to read as follows:
6b. If the controlled substance is marijuana, the punishment
7shall be by imprisonment in the county jail for not more than
8six months or by a fine of not more than one thousand dollars,
9or by both such fine and imprisonment for a first offense.
10If the controlled substance is marijuana and the person has
11been previously convicted of a violation of this subsection in
12which the controlled substance was marijuana, the punishment
13shall be as provided in section 903.1, subsection 1, paragraph
14“b”. If the controlled substance is marijuana and the person
15has been previously convicted two or more times of a violation
16of this subsection in which the controlled substance was
17marijuana, the person is guilty of an aggravated misdemeanor.
18 This subsection does not apply to the possession of marijuana
19which is punishable pursuant to chapter 124F.
20 Sec. 8. Section 124.401G, unnumbered paragraph 1, Code
212023, is amended to read as follows:
22Notwithstanding any provision of this chapter to the
23contrary, a person shall not be guilty of an offense under
24this chapter, including under section 124.401 or 124.410,
25for producing, possessing, using, harvesting, handling,
26manufacturing, marketing, transporting, delivering, or
27distributing the plant cannabis, if all of the following apply:
28 Sec. 9. Section 124.407, subsection 2, Code 2023, is amended
29to read as follows:
302. a. Any person who violates this section and where the
31controlled substance is any one a controlled substance other
32than marijuana is guilty of a class “D” felony.
33b. Any person who violates this section, and where the
34controlled substance is marijuana only, is guilty of a serious
35misdemeanor.
-2-1 Sec. 10. Section 124.411, subsection 2, Code 2023, is
2amended to read as follows:
32. For purposes of this section, an offense is considered
4a second or subsequent offense, if, prior to the person’s
5having been convicted of the offense, the offender has ever
6been convicted under this chapter or under any state or federal
7statute relating to narcotic drugs or cocaine, marijuana,
8 depressant, stimulant, or hallucinogenic drugs.
9 Sec. 11. Section 124.413, subsection 2, Code 2023, is
10amended to read as follows:
112. This section shall not apply if:
12a. The offense is found to be an accommodation pursuant to
13section 124.410; or
14b. The the controlled substance is marijuana.
15 Sec. 12. NEW SECTION. 124F.1 Definitions.
16As used in this subchapter:
171. “Counterfeit substance” means the same as defined in
18section 124.101.
192. “Imitation controlled substance” means the same as
20defined in section 124.101.
213. “Marijuana” means the same as defined in section 124.101,
22and includes a counterfeit substance, imitation controlled
23substance, or simulated controlled substance containing a
24detectable amount of marijuana.
254. “Simulated controlled substance” means the same as
26defined in section 124.101.
27 Sec. 13. NEW SECTION. 124F.2 Marijuana — penalties.
281. Except as otherwise provided in this subchapter and
29chapter 124E, it is unlawful for any person to manufacture,
30deliver, or possess with the intent to manufacture or deliver
31marijuana, or to act with, enter into a common scheme or
32design with, or conspire with one or more other persons to
33manufacture, deliver, or possess with the intent to manufacture
34or deliver marijuana. A violation of this subsection involving
35the following amounts of marijuana shall be punishable as
-3-1follows:
2a. More than twenty-two kilograms shall be a class “C”
3felony.
4b. More than two kilograms but not more than twenty-two
5kilograms shall be a class “D” felony.
6c. More than twelve ounces but not more than two kilograms
7shall be an aggravated misdemeanor.
8d. More than four ounces but not more than twelve ounces
9shall be punishable as a serious misdemeanor.
10e. Four ounces or less shall be punishable as a simple
11misdemeanor, except as provided in section 124F.3.
122. a. It is unlawful for any person knowingly or
13intentionally to possess marijuana unless such substance was
14obtained directly from, or pursuant to, a valid prescription
15or order of a practitioner while acting in the course of the
16practitioner’s professional practice, or except as otherwise
17authorized by this subsection. A violation of this subsection
18involving the possession of the following amounts of marijuana
19shall be punishable as follows:
20(1) More than six ounces but not more than twelve ounces is
21a serious misdemeanor.
22(2) More than one-half ounce but not more than six ounces
23is a simple misdemeanor.
24(3) One-half ounce or less is not a criminal offense but
25shall be assessed as a civil penalty in the amount of one
26hundred dollars, except if the person is under twenty-one years
27of age, the person commits a serious misdemeanor.
28(a) The civil penalty shall be collected by the clerk of the
29district court pursuant to section 602.8105, subsection 5.
30(b) Any records relating to the civil penalty shall not
31be displayed for public viewing on the Iowa court information
32system.
33(c) Any records relating to the civil penalty shall not
34be kept in the criminal history data files maintained by the
35department of public safety. Any records relating to the civil
-4-1penalty shall not be disseminated to other criminal or juvenile
2justice agencies.
3b. Notwithstanding paragraph “a”, a municipality may, by
4ordinance, allow for the legal possession of marijuana.
53. a. A person shall not possess, and a retail marijuana
6store not sell, in a single transaction, retail marijuana in
7excess of the following amounts:
8(1) For a resident of Iowa twenty-one years of age or older:
9(a) Thirty grams of marijuana flower.
10(b) Five grams of marijuana concentrate.
11(c) Five hundred milligrams of tetrahydrocannabinol
12contained in a product infused with marijuana.
13(2) For a person twenty-one years of age or older who is not
14a resident of Iowa:
15(a) Fifteen grams of marijuana flower.
16(b) Two and one-half grams of marijuana concentrate.
17(c) Two hundred fifty milligrams of tetrahydrocannabinol
18contained in a product infused with marijuana.
19b. A person in possession of retail marijuana in excess of
20the amounts specified in paragraph “a” equivalent to the amounts
21specified in subsection 2, paragraph “a”, shall be subject to
22the penalties in subsection 2, paragraph “a”.
23c. A retail marijuana store in violation of this subsection
24shall be subject to licensee discipline pursuant to section
25124F.20.
26d. For purposes of this subsection, “retail marijuana” and
27“retail marijuana store” mean the same as defined in section
28124F.7.
294. Upon the expiration of two years following a conviction
30for a violation of subsection 2, paragraph “a”, subparagraph
31(3), a person may petition the court to expunge the conviction,
32and if the person has had no other criminal convictions, other
33than local traffic violations or simple misdemeanor violations
34of chapter 321 during the two-year period, the conviction
35shall be expunged as a matter of law. The court shall enter
-5-1an order that the record of the conviction be expunged by the
2clerk of the district court. Notwithstanding section 692.2,
3after receipt of notice from the clerk of the district court
4that a record of conviction has been expunged pursuant to this
5subsection, the record of conviction shall be removed from the
6criminal history data files maintained by the department of
7public safety.
8 Sec. 14. NEW SECTION. 124F.3 Delivery or possession with
9the intent to deliver — small amounts.
10If the amount of marijuana delivered or possessed with
11intent to deliver is one ounce or less and no remuneration was
12provided, the defendant shall not be prosecuted for a violation
13of this subchapter.
14 Sec. 15. NEW SECTION. 124F.4 Juvenile offenses.
15The juvenile court shall have exclusive original
16jurisdiction in a proceeding concerning a minor who is alleged
17to have committed a violation of this subchapter.
18 Sec. 16. NEW SECTION. 124F.5 Marijuana use in public.
191. Marijuana shall not be consumed in areas open and
20accessible to the public, including but not limited to public
21transportation facilities, sporting or music venues, parks,
22playgrounds, sidewalks and roads, outdoor cafes, or indoor but
23public locations.
242. A person who violates this section commits a simple
25misdemeanor punishable as a scheduled violation under section
26805.8C, subsection 15.
273. Upon the expiration of two years following conviction
28for a violation of subsection 1, a person may petition the
29court to expunge the conviction, and if the person has had no
30other criminal convictions, other than local traffic violations
31or simple misdemeanor violations of chapter 321 during the
32two-year period, the conviction shall be expunged as a matter
33of law. The court shall enter an order that the record of the
34conviction be expunged by the clerk of the district court.
35Notwithstanding section 692.2, after receipt of notice from
-6-1the clerk of the district court that a record of conviction
2has been expunged pursuant to this subsection, the record of
3conviction shall be removed from the criminal history data
4files maintained by the department of public safety.
5 Sec. 17. NEW SECTION. 321.284B Marijuana in motor vehicles.
61. A driver of a motor vehicle upon a public street or
7highway shall not use marijuana in the passenger area of the
8motor vehicle. “Passenger area” means the area designed to
9seat the driver and passengers while the motor vehicle is in
10operation and any area that is readily accessible to the driver
11or a passenger while in their seating positions, including the
12glove compartment.
132. A driver or passenger of or in a motor vehicle upon a
14public street or highway shall not possess marijuana in the
15passenger area of a motor vehicle except in a sealed, odor
16proof, child resistant container.
173. For the purposes of this section, “marijuana” means the
18same as defined in section 124.401.
194. A person who knowingly violates a provision of this
20section is guilty of a simple misdemeanor.
21 Sec. 18. Section 602.8105, Code 2023, is amended by adding
22the following new subsection:
23 NEW SUBSECTION. 5. The clerk of the district court shall
24collect the civil penalty assessed pursuant to section 124F.2,
25subsection 2, paragraph “a”, subparagraph (3).
26 Sec. 19. Section 805.8C, Code 2023, is amended by adding the
27following new subsection:
28 NEW SUBSECTION. 15. Marijuana violations. For marijuana
29use in public violations under section 124F.5, the scheduled
30fine is fifty dollars for a first violation, and one hundred
31dollars for a second or subsequent violation.
32 Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed.
33DIVISION II
34RETAIL marijuana
35 Sec. 21. NEW SECTION. 124F.6 Purpose and findings.
-7- 1The general assembly finds all of the following:
21. Marijuana prohibition, like alcohol prohibition before
3it, has been a wasteful and destructive failure. About half
4of Americans admit to having used marijuana despite more than
5eight decades of prohibition.
62. The prohibition of marijuana has had an unfair, disparate
7impact on persons and communities of color.
83. The prohibition of marijuana diverts law enforcement
9resources from violent and property crimes and subjects
10civilians to unnecessary police interactions.
114. Keeping marijuana illegal deprives the state of
12thousands of legal jobs and hundreds of millions of dollars in
13tax revenue.
145. The use of marijuana should be legal for persons
15twenty-one years of age or older and subject to taxation and
16regulation.
17 Sec. 22. NEW SECTION. 124F.7 Definitions.
18For the purposes of this subchapter:
191. “Division” means the alcoholic beverages division of the
20department of commerce.
212. “Immature plant” means a nonflowering marijuana plant
22that is no taller than eight inches and no wider than eight
23inches, is produced from a cutting, clipping, or seedling, and
24is in a cultivating container.
253. “License” means a license or registration issued pursuant
26to this subchapter.
274. “Licensed premises” means the premises specified in an
28application for a license under this subchapter, which are
29owned or in possession of the licensee and within which the
30licensee is authorized to cultivate, manufacture, distribute,
31sell, or test retail marijuana and retail marijuana products in
32accordance with this subchapter.
335. “Licensee” means a person licensed or registered pursuant
34to this subchapter.
356. “Local jurisdiction” means a city or county.
-8- 17. “Local licensing authority” means, for any local
2jurisdiction that has chosen to adopt a local licensing
3requirement in addition to the state licensing requirements
4of this subchapter, an authority designated by a municipal
5or county ordinance, or resolution, or the governing body of
6a municipality or county, or the board of commissioners of a
7county if no such authority is designated.
88. “Location” means a particular parcel of land that may be
9identified by an address or other descriptive means.
109. “Marijuana” means the same as defined in section 124.101.
1110. “Marijuana accessories” means any equipment, products,
12or materials of any kind which are used, intended for use, or
13designed for use in planting, cultivating, growing, harvesting,
14composting, manufacturing, compounding, converting, producing,
15processing, preparing, testing, analyzing, packaging,
16repackaging, storing, vaporizing, or containing marijuana, or
17for ingesting, inhaling, or otherwise introducing marijuana
18into the human body.
1911. “Person” means a natural person, partnership,
20association, company, corporation, limited liability company,
21or organization; except that “person” does not include any
22governmental organization.
2312. “Retail marijuana” means all parts of the plant of the
24genus Cannabis, whether growing or not, the seeds thereof; the
25resin extracted from any part of the plant; and every compound,
26manufacture, salt, derivative, mixture, or preparation of the
27plant, its seeds or resin, including marijuana concentrate.
28“Retail marijuana” does not include industrial hemp, nor does
29it include fiber produced from the stalks, oil or cake made
30from the seeds of the plant, sterilized seeds of the plant
31which are incapable of germination, or the weight of any other
32ingredient combined with marijuana to prepare topical or oral
33administrations, food, drink, or other product.
3413. “Retail marijuana cultivation facility” means an entity
35licensed to cultivate, prepare, package, and sell marijuana to
-9-1retail marijuana stores, to marijuana product manufacturing
2facilities, and to other marijuana cultivation facilities, but
3not to consumers.
414. “Retail marijuana establishment” means a retail
5marijuana store, a retail marijuana cultivation facility, or a
6retail marijuana products manufacturer.
715. “Retail marijuana products” means concentrated marijuana
8products and marijuana products that are comprised of marijuana
9and other ingredients and are intended for use or consumption,
10such as but not limited to edible products, ointments, and
11tinctures.
1216. “Retail marijuana products manufacturer” means an entity
13licensed to purchase marijuana; manufacture, prepare, and
14package marijuana products; and sell marijuana and marijuana
15products to other marijuana product manufacturing facilities
16and to retail marijuana stores, but not to consumers.
1717. “Retail marijuana store” means an entity licensed
18to purchase marijuana from marijuana cultivation facilities
19and sell marijuana and to purchase marijuana products from
20retail marijuana product manufacturing facilities and to sell
21marijuana and marijuana products to consumers.
2218. “Retail marijuana transporter” means an entity or person
23licensed to transport retail marijuana and retail marijuana
24products from one retail marijuana establishment to another
25retail marijuana establishment and to temporarily store the
26transported retail marijuana and retail marijuana products at
27its licensed premises, but is not authorized to sell retail
28marijuana or retail marijuana products under any circumstances.
29 Sec. 23. NEW SECTION. 124F.8 Applicability.
301. On or after July 1, 2024, an applicant may apply for
31licensure of a retail marijuana establishment pursuant to this
32subchapter.
332. a. Pursuant to subsection 1, an applicant shall complete
34forms as provided by the division and shall pay the application
35fee and the licensing fee. The division shall forward, within
-10-1seven days of the date of the application, one-half of the
2application fee to the local jurisdiction unless the local
3jurisdiction has prohibited the operation of retail marijuana
4establishments. If the license is denied, the division shall
5refund the licensing fee to the applicant.
6b. The division shall act upon an application made pursuant
7to subsection 1 no sooner than forty-five days and no later
8than ninety days after the date of the application. The
9division shall process applications in the order in which
10completed applications are received by the division.
113. Any local jurisdiction may enact ordinances or
12regulations governing the time, place, manner, and number of
13retail marijuana establishments, which may include a local
14licensing requirement, or may prohibit the operation of retail
15marijuana establishments by ordinance or by a referred or
16initiated measure. If a county acts through an initiated
17measure, the proponents shall submit a petition signed by not
18less than fifteen percent of the registered electors in the
19county.
20 Sec. 24. NEW SECTION. 124F.9 Retail marijuana licensure.
211. The division shall develop and maintain a seed-to-sale
22tracking system that tracks retail marijuana from either
23seed or immature plant stage until the marijuana or retail
24marijuana product is sold to a customer at a retail marijuana
25establishment to ensure that no marijuana grown or processed
26by a retail marijuana establishment is sold or otherwise
27transferred except by a retail marijuana store.
282. The division shall adopt all rules necessary for the
29implementation of this chapter.
303. Nothing in this subchapter shall be construed to be
31a delegation to the division of the power to fix prices for
32retail marijuana.
334. Nothing in this subchapter shall be construed to limit
34a law enforcement agency’s ability to investigate unlawful
35activity in relation to a retail marijuana establishment. A
-11-1law enforcement agency shall have the authority to conduct a
2criminal history record check of a licensee and an employee of
3a licensee during an investigation of unlawful activity related
4to retail marijuana and retail marijuana products.
55. The division shall create a statewide licensure class
6system for retail marijuana cultivation facilities. The
7classifications may be based upon square footage of the
8facility; lights, lumens, or wattage; canopy lighting; the
9number of cultivating plants; a combination of the foregoing;
10or other reasonable metrics. The division shall create a fee
11structure for the licensure class system.
12 Sec. 25. NEW SECTION. 124F.10 State and local participation
13in licensure.
141. When the division receives an application for an
15initial license or a renewal of an existing license for
16any retail marijuana establishment, the division shall
17provide, within seven days of receipt of an application,
18a copy of the application to the local jurisdiction in
19which the establishment is to be located unless the local
20jurisdiction has prohibited the operation of retail marijuana
21establishments. The local jurisdiction shall determine whether
22the application complies with local restrictions relating
23to time, place, manner, and the number of retail marijuana
24establishments allowed. The local jurisdiction shall inform
25the division whether the application complies with local
26restrictions.
272. A local jurisdiction may impose a separate local
28licensing requirement as a part of its restrictions relating
29to time, place, manner, and the number of retail marijuana
30establishments allowed. A local jurisdiction may decline
31to impose any local licensing requirements, but a local
32jurisdiction shall notify the division that it either approves
33or denies each application received by the local jurisdiction.
343. If a local jurisdiction issues a local license for
35a retail marijuana establishment, a local jurisdiction may
-12-1schedule a public hearing on the application. If the local
2jurisdiction schedules a hearing, it shall post and publish
3public notice of the hearing not less than ten days prior
4to the hearing. The local jurisdiction shall give public
5notice by posting a sign in a conspicuous place on the license
6applicant’s premises for which a local license application
7has been made and by publication in a newspaper of general
8circulation in the county in which the applicant’s premises are
9located.
104. If a local jurisdiction does not issue local licenses,
11the local jurisdiction may give public notice of the state
12license application by posting a sign in a conspicuous place
13on the state license applicant’s premises for which a state
14license application has been made and by publication in a
15newspaper of general circulation in the county in which the
16applicant’s premises are located.
175. Applications for a state license under this subchapter
18must be made to the division on forms prepared and furnished
19by the division and must set forth such information as the
20division may require to enable the division to determine
21whether a state license should be granted.
226. The division shall deny a state license if the premises
23on which the applicant proposes to conduct its business does
24not meet the requirements of this subchapter. The division
25may refuse or deny a license renewal, reinstatement, or
26initial license issuance for good cause. For purposes of this
27subsection, “good cause” means any of the following:
28a. The licensee or applicant has violated, does not meet,
29or has failed to comply with any of the terms, conditions, or
30provisions of this subchapter, any rules promulgated pursuant
31to this subchapter, or any supplemental local law, rules, or
32regulations.
33b. The licensee or applicant has failed to comply with any
34special terms or conditions of the license pursuant to an order
35of the division or local licensing authority.
-13- 1c. The licensed premises have been operated in a manner that
2adversely affects the public health or safety of the immediate
3neighborhood in which the retail marijuana establishment is
4located.
57. If the division denies a state license pursuant to
6subsection 6, the applicant shall be entitled to a hearing
7pursuant to section 17A.12 and judicial review pursuant to
8section 17A.19. The division shall provide written notice of
9the grounds for denial of the state license to the applicant
10and to the local jurisdiction at least fifteen days prior to
11the hearing.
12 Sec. 26. NEW SECTION. 124F.11 Establishment and owner
13requirements.
141. An owner who is a natural person must have been either
15of the following:
16a. A resident of Iowa for at least one year prior to the
17date of the application.
18b. A United States citizen prior to the date of the
19application.
202. A retail marijuana establishment may be composed of an
21unlimited number of owners that have been residents of Iowa for
22at least one year prior to the date of the application.
233. The division shall review the retail marijuana
24establishment’s operating documents to ensure compliance with
25this section.
26 Sec. 27. NEW SECTION. 124F.12 Retail marijuana
27establishment licensure.
281. Local jurisdictions may adopt and enforce regulations
29for retail marijuana establishments that are at least as
30restrictive as the provisions of this subchapter and any rule
31promulgated pursuant to this subchapter.
322. A retail marijuana establishment shall not operate
33until the retail marijuana establishment is licensed by the
34division pursuant to this subchapter and approved by the
35relevant local jurisdiction. If an application is denied by
-14-1the local licensing authority, the division shall revoke the
2state license. In connection with a license, the applicant
3shall provide a complete and accurate application as required
4by the division.
53. A retail marijuana establishment shall notify the
6division in writing of the name, address, and date of birth of
7a new owner, officer, or manager before the new owner, officer,
8or manager begins managing, owning, working, or otherwise
9associating with the establishment. The owner, officer,
10manager, or employee shall pass a fingerprint-based criminal
11history record check as required by the division and shall
12obtain the required identification prior to managing, owning,
13working, or otherwise associating with the establishment.
144. Before granting a state license, the division may
15consider, except when this subchapter specifically provides
16otherwise, the requirements of this subchapter and any
17rules promulgated pursuant to this subchapter, and all other
18reasonable restrictions that are or may be placed upon a
19licensee by the division or local licensing authority.
205. a. Each license issued under this subchapter is separate
21and distinct. It is unlawful for a person to exercise any
22of the privileges granted under a license other than the
23license that the person holds or for a licensee to allow any
24other person to exercise the privileges granted under the
25licensee’s license. A separate license shall be required for
26each specific business or business entity and each geographical
27location.
28b. At all times, a licensee shall possess and maintain
29possession of the premises for which the license is issued
30through ownership, lease, rental, or other arrangement for
31possession of the premises.
326. Each licensee shall manage the licensed premises
33personally or employ a separate and distinct manager on
34the premises and shall report the name of the manager to
35the division and local licensing authority. The licensee
-15-1shall report any change in manager to the division and local
2licensing authority within seven days after the change.
3 Sec. 28. NEW SECTION. 124F.13 License renewal.
41. Ninety days prior to the expiration date of an existing
5license, the division shall notify a licensee of the expiration
6date by first class mail at the licensee’s address of record
7with the division. A licensee may apply for the renewal of
8an existing license to the division not less than thirty days
9prior to the date of expiration of the existing license. Upon
10receipt of an application for renewal of an existing license
11and any applicable fees, the division shall submit, within
12seven days of the application, a copy of the application to
13the local jurisdiction to determine whether the application
14complies with all local restrictions on renewal of licenses.
15The division shall not accept an application for renewal of a
16license after the date of expiration, except as provided in
17subsection 3. The division may extend the expiration date of
18the license and accept a late application for renewal of a
19license if the applicant has filed a timely renewal application
20with the local licensing authority. The division or the local
21licensing authority, in its discretion, and subject to the
22requirements of this subsection and subsection 3 and based upon
23reasonable grounds, may waive the thirty-day time requirements
24set forth in this subsection.
252. The division may request additional fingerprints from a
26licensee when there is a demonstrated investigative need.
273. a. Notwithstanding the provisions of subsection 1,
28a licensee whose license has been expired for not more than
29ninety days may file a late renewal application upon the
30payment of a nonrefundable late application fee of five hundred
31dollars to the division. A licensee who files a late renewal
32application and pays the requisite fees may continue to operate
33until the division takes final action to approve or deny
34the licensee’s late renewal application unless the division
35summarily suspends the license pursuant to chapter 17A, this
-16-1subchapter, and rules promulgated pursuant to this subchapter.
2b. The division may administratively continue a license
3and accept a later application for renewal of a license at the
4discretion of the division.
5 Sec. 29. NEW SECTION. 124F.14 Classes of licenses.
6For the purpose of regulating the cultivation, manufacture,
7distribution, sale, and testing of retail marijuana and retail
8marijuana products, the division in its discretion, upon
9receipt of an application in the prescribed form, may issue and
10grant to the applicant a license or registration in any of the
11following classes, subject to the provisions and restrictions
12provided by this subchapter:
131. Retail marijuana store license.
142. Retail marijuana cultivation facility license.
153. Retail marijuana products manufacturing license.
164. Occupational licenses and registrations for owners,
17managers, operators, employees, contractors, and other support
18staff employed by, working in, or having access to restricted
19areas of the licensed premises, as determined by the division.
20The division may take any action with respect to a registration
21pursuant to this subchapter as it may with respect to a license
22pursuant to this subchapter, in accordance with the procedures
23established pursuant to this subchapter.
245. Retail marijuana transporter license.
25 Sec. 30. NEW SECTION. 124F.15 Retail marijuana store
26license.
271. a. A retail marijuana store license shall be issued
28by the division only to a person selling retail marijuana or
29retail marijuana products pursuant to the terms and conditions
30of this subchapter.
31b. A retail marijuana store shall not accept any retail
32marijuana purchased from a retail marijuana cultivation
33facility unless the retail marijuana store is provided with
34evidence that any applicable excise tax due was paid.
352. Notwithstanding the provisions of this section, a
-17-1retail marijuana store licensee may also sell retail marijuana
2products that are prepackaged and labeled as required by rules
3of the division pursuant to section 124F.25.
43. a. A retail marijuana store shall not sell more than one
5ounce of retail marijuana or its equivalent in retail marijuana
6products, including retail marijuana concentrate, except for
7nonedible, nonpsychoactive retail marijuana products, including
8ointments, lotions, balms, and other nontransdermal topical
9products during a single transaction to a person.
10b. (1) Prior to initiating a sale, an employee of the
11retail marijuana store making the sale shall verify that
12the purchaser has a valid identification card showing the
13purchaser is twenty-one years of age or older. If a person
14under twenty-one years of age presents fraudulent proof of age,
15any action relying on the fraudulent proof of age shall not be
16grounds for the revocation or suspension of any license issued
17under this subchapter.
18(2) (a) If a retail marijuana store licensee or
19employee has reasonable cause to believe that a person is
20under twenty-one years of age and is exhibiting fraudulent
21proof of age in an attempt to obtain any retail marijuana
22or cannabidiol-infused product, the licensee or employee
23is authorized to confiscate such fraudulent proof of age,
24if possible, and shall, within seventy-two hours after the
25confiscation, remit such fraudulent proof of age to a state
26or local law enforcement agency. The failure to confiscate
27such fraudulent proof of age or to remit such fraudulent proof
28of age to a state or local law enforcement agency within
29seventy-two hours after the confiscation shall not constitute a
30criminal offense.
31(b) If a retail marijuana store licensee or employee
32believes that a person is under twenty-one years of age and
33presents fraudulent proof of age in an attempt to obtain any
34retail marijuana or retail cannabidiol-infused product, the
35licensee or employee or any peace officer or police officer,
-18-1acting in good faith and upon probable cause based upon
2reasonable grounds therefor, may detain and question such
3person in a reasonable manner for the purpose of ascertaining
4whether the person is guilty of any unlawful act regarding the
5purchase of retail marijuana. The questioning of a person by a
6licensee, employee, peace officer, or police officer does not
7render the licensee, employee, peace officer, or police officer
8civilly or criminally liable for slander, false arrest, false
9imprisonment, malicious prosecution, or unlawful detention.
104. All retail marijuana and retail marijuana products
11sold at a licensed retail marijuana store shall be packaged
12and labeled as required by rules of the division pursuant to
13section 124F.25.
145. a. A licensed retail marijuana store shall only
15sell retail marijuana, retail marijuana products, marijuana
16accessories, nonconsumable products such as apparel, and
17marijuana-related products such as childproof packaging
18containers, but shall be prohibited from selling or giving
19away any consumable product, including but not limited to
20cigarettes, alcohol, or an edible product that does not contain
21marijuana, including but not limited to sodas, candies, or
22baked goods.
23b. A licensed retail marijuana store shall not sell any
24retail marijuana or retail marijuana products that contain
25nicotine or alcohol, if the sale of the alcohol would require a
26license pursuant to chapter 123.
27c. A licensed retail marijuana store shall not sell retail
28marijuana or retail marijuana products over the internet nor
29deliver retail marijuana or retail marijuana products to a
30person who is not physically present in the retail marijuana
31store’s licensed premises.
326. Retail marijuana or retail marijuana products shall not
33be consumed on the premises of a retail marijuana store.
347. Notwithstanding any other provision of state law, sales
35of retail marijuana and retail marijuana products are not
-19-1exempt from state or local sales tax.
2 Sec. 31. NEW SECTION. 124F.16 Retail marijuana cultivation
3facility license.
41. A retail marijuana cultivation facility license shall
5be issued by the division only to a person who cultivates
6retail marijuana for sale and distribution to licensed retail
7marijuana stores, retail marijuana products manufacturing
8licensees, or other retail marijuana cultivation facilities.
92. A retail marijuana cultivation facility shall remit any
10applicable excise tax due.
113. A retail marijuana cultivation facility shall track
12the marijuana it cultivates from seed or immature plant to
13wholesale purchase of the retail marijuana. Prior to delivery
14of any retail marijuana that is sold, the retail marijuana
15cultivation facility shall provide evidence that the facility
16paid any applicable excise tax on the retail marijuana due.
174. A retail marijuana cultivation facility may provide,
18except as required by section 124F.25, a sample of its products
19to the state hygienic laboratory for testing and research
20purposes. A retail marijuana cultivation facility shall
21maintain a record of the sample provided to the state hygienic
22laboratory and the testing results.
235. Retail marijuana or retail marijuana products shall not
24be consumed on the premises of a retail marijuana cultivation
25facility.
266. The division shall not issue more than twenty retail
27marijuana cultivation facility licenses.
28 Sec. 32. NEW SECTION. 124F.17 Retail marijuana products
29manufacturing license.
301. a. A retail marijuana products manufacturing license
31shall be issued by the division to a person who manufactures
32retail marijuana products pursuant to the terms and conditions
33of this subchapter.
34b. A retail marijuana products manufacturer may cultivate
35its own retail marijuana if the manufacturer obtains a retail
-20-1marijuana cultivation facility license, or it may purchase
2retail marijuana from a licensed retail marijuana cultivation
3facility. A retail marijuana products manufacturer shall track
4all of its retail marijuana from the point the retail marijuana
5is either transferred from its retail marijuana cultivation
6facility or from the point when the retail marijuana is
7delivered to the retail marijuana products manufacturer from a
8licensed retail marijuana cultivation facility to the point of
9transfer to a licensed retail marijuana store.
10c. A retail marijuana products manufacturer shall not
11accept any retail marijuana purchased from a retail marijuana
12cultivation facility unless the retail marijuana products
13manufacturer is provided with evidence that any applicable
14excise tax due was paid.
152. All retail marijuana products shall be prepared on
16a licensed premises used exclusively for the manufacture
17and preparation of retail marijuana or retail marijuana
18products and using equipment that is used exclusively for the
19manufacture and preparation of retail marijuana products;
20except that, if permitted by the local jurisdiction, a
21retail marijuana products manufacturing licensee may share
22the same premises as a medical cannabidiol-infused products
23manufacturing licensee so long as a virtual or physical
24separation of inventory is maintained pursuant to rules
25promulgated by the division.
263. All licensed premises on which retail marijuana products
27are manufactured shall meet the sanitary standards for retail
28marijuana product preparation promulgated pursuant to section
29124F.25.
304. Retail marijuana or retail marijuana products shall not
31be consumed on the premises of a retail marijuana products
32manufacturing facility.
335. A retail marijuana products manufacturer may provide,
34except as required by section 124F.25, a sample of its products
35to the state hygienic laboratory for testing and research
-21-1purposes. A retail marijuana products manufacturer shall
2maintain a record of what was provided to the state hygienic
3laboratory and the results of the testing.
46. A licensed retail marijuana products manufacturer shall
5package and label each product manufactured as required by
6rules of the division pursuant to section 124F.25.
77. All retail marijuana products that require refrigeration
8to prevent spoilage must be stored and transported in a
9refrigerated environment.
108. The division shall not issue more than twenty retail
11marijuana products manufacturer licenses.
12 Sec. 33. NEW SECTION. 124F.18 Retail marijuana transporter
13license.
141. a. A retail marijuana transporter license shall be
15issued by the division to a person to provide logistics,
16distribution, and storage of retail marijuana and retail
17marijuana products. Notwithstanding any other provisions of
18law, a retail marijuana transporter license shall be valid for
19two years from the date of issuance, but cannot be transferred
20with a change of ownership. A licensed retail marijuana
21transporter shall be responsible for the retail marijuana and
22retail marijuana products once the transporter takes control
23of the product.
24b. A licensed retail marijuana transporter may contract with
25multiple licensed retail marijuana establishments.
26c. On or after July 1, 2024, all retail marijuana
27transporters shall hold a valid retail marijuana transporter
28license; except that an entity licensed pursuant to this
29subchapter that provides its own distribution is not required
30to hold a retail marijuana transporter license to transport and
31distribute its products. The division shall begin accepting
32applications after January 1, 2024.
332. A retail marijuana transporter licensee shall use a
34seed-to-sale tracking system developed pursuant to section
35124F.25 to create shipping manifests documenting the transport
-22-1of retail marijuana and retail marijuana products throughout
2the state.
3 Sec. 34. NEW SECTION. 124F.19 Retail marijuana use —
4protections.
51. No person shall be subject to arrest, prosecution, or
6penalty in any manner, or be denied any right or privilege,
7including but not limited to disciplinary action by a business,
8occupational, or professional licensing board, solely for
9conduct permitted under this subchapter.
102. a. Except as provided in this section, neither the state
11nor any of its political subdivisions shall impose any penalty
12or deny any benefit or entitlement for conduct permitted
13under this subchapter or for the presence of cannabinoids or
14cannabinoid metabolites in the urine, blood, saliva, breath,
15hair, or other tissue or fluid of a person who is twenty-one
16years of age or older.
17b. Except as provided in this section, neither the state
18nor any of its political subdivisions shall deny a driver’s
19license, a professional license, housing assistance, social
20services, or other benefits based on marijuana use or for the
21presence of cannabinoids or cannabinoid metabolites in the
22urine, blood, saliva, breath, hair, or other tissue or fluid of
23a person who is twenty-one years of age or older.
243. No person shall be denied custody of or visitation with a
25minor for acting in accordance with this subchapter, unless the
26person’s behavior creates an unreasonable danger to the minor
27that can be clearly articulated and substantiated.
284. Except as provided in this section, neither the state
29nor any of its political subdivisions shall deny employment
30or a contract to a person for engaging in conduct permitted
31under this subchapter, for a prior conviction for a nonviolent
32marijuana offense that does not involve distribution to minors,
33or for testing positive for the presence of cannabinoids or
34cannabinoid metabolites in the urine, blood, saliva, breath,
35hair, or other tissue or fluid of the individual’s body.
-23- 15. For the purposes of medical care, including organ and
2tissue transplants, the use of marijuana does not constitute
3the use of an illicit substance or otherwise disqualify a
4person from needed medical care and may only be considered with
5respect to evidence-based clinical criteria.
66. Notwithstanding any other provision of law to the
7contrary, unless there is a specific finding that the
8individual’s use, cultivation, or possession of marijuana could
9create a danger to the individual or another person, it shall
10not be a violation of conditions of parole, probation, or
11pretrial release to do any of the following:
12a. Engage in conduct allowed by this subchapter.
13b. Test positive for marijuana, delta-9
14tetrahydrocannabinol, or any other cannabinoid or metabolite
15of marijuana.
167. a. This section does not prevent a governmental employer
17from disciplining an employee or contractor for ingesting
18marijuana in the workplace or for working while impaired by
19marijuana.
20b. The protections provided by this section do not apply to
21the extent that they conflict with a governmental employer’s
22obligations under federal law or regulations or to the extent
23that they would disqualify the entity from a monetary or
24licensing-related benefit under federal law or regulations.
25c. This section does not authorize any person to engage in,
26and does not prevent the imposition of any civil, criminal,
27discipline, or other penalties, including discipline or
28termination by a governmental employer, any task while under
29the influence of marijuana, when doing so would constitute
30negligence or professional malpractice.
31 Sec. 35. NEW SECTION. 124F.20 Discipline.
32In addition to any other sanctions prescribed by this
33subchapter or rules promulgated pursuant to this subchapter,
34the division has the power, on its own motion or upon
35complaint, after investigation and opportunity for a public
-24-1hearing at which a licensee must be afforded an opportunity
2to be heard, to fine a licensee or to suspend or revoke
3a license issued by the division for a violation by the
4licensee or by any of the agents or employees of the licensee
5of the provisions of this subchapter, or any of the rules
6promulgated pursuant to this subchapter, or of any of the
7terms, conditions, or provisions of the license issued by the
8division. The division has the power to administer oaths and
9issue subpoenas to require the presence of persons and the
10production of papers, books, and records necessary to the
11determination of a hearing that the division is authorized to
12conduct. The division shall conduct a contested case pursuant
13to chapter 17A prior to imposing discipline, except in the case
14of an emergency adjudication.
15 Sec. 36. NEW SECTION. 124F.21 Disposition of seized
16materials.
171. This section shall apply in addition to any criminal,
18civil, or administrative penalties and in addition to any
19other penalties prescribed by this subchapter or any rules
20promulgated pursuant to this subchapter.
212. A state or local agency shall not be required to
22cultivate or care for any retail marijuana or retail marijuana
23product belonging to or seized from a licensee. A state or
24local agency shall not be authorized to sell marijuana or
25retail marijuana.
263. If the division issues a final order imposing a
27disciplinary action against a licensee pursuant to section
28124F.20, then, in addition to any other remedies, the
29division’s final order may specify that some or all of the
30licensee’s marijuana or marijuana product is not retail
31marijuana or a retail marijuana product and is an illegal
32controlled substance. The final order may further specify that
33the licensee shall lose any interest in any of the marijuana or
34marijuana product even if the marijuana or marijuana product
35previously qualified as retail marijuana or a retail marijuana
-25-1product.
24. On or before January 1, 2024, the division shall adopt
3rules governing the implementation of this section.
4 Sec. 37. NEW SECTION. 124F.22 Inspection procedures.
51. A licensee shall keep a complete set of all records
6necessary to show fully the business transactions of the
7licensee, all of which shall be accessible at all times during
8business hours for inspection and examination by the division
9or its authorized representatives. The division may require
10a licensee to furnish such information as necessary for the
11proper administration of this subchapter and may require an
12audit to be made of the books of account and records on such
13occasions as necessary by an auditor selected by the division
14who shall have access to all books and records of the licensee.
15All associated expenses shall be paid by the licensee.
162. Any licensed premises, including any places of storage
17where retail marijuana or retail marijuana products are stored,
18cultivated, sold, dispensed, or tested shall be subject to
19inspection by the state or local jurisdictions and their
20investigators, during all business hours and during other times
21when employees are present, for the purpose of inspection
22or investigation. Access shall be required during business
23hours for examination of any inventory or books and records
24required to be kept by the licensees. If any part of the
25licensed premises consists of a locked area, upon demand to
26the licensee, such area shall be made available for inspection
27without delay, and, upon request by authorized representatives
28of the state or local jurisdiction, the licensee shall open the
29area for inspection.
303. A licensee shall retain all books and records necessary
31to show fully the business transactions of the licensee for
32a period of the current tax year and the three immediately
33preceding tax years.
34 Sec. 38. NEW SECTION. 124F.23 Marijuana excise tax.
351. An excise tax is imposed on consumers at the rate of
-26-1twenty percent of the sales price of each sale of retail
2marijuana and retail marijuana products.
32. The tax imposed by this section shall be paid by the
4consumer to the retail marijuana establishment. Each retail
5marijuana establishment shall collect from the consumer the
6full amount of the tax payable on each taxable sale.
73. On the fifteenth day of each month, each retail marijuana
8establishment that sells retail marijuana to a consumer shall
9pay the excise taxes due on the retail marijuana that the
10retail marijuana establishment sold in the previous calendar
11month to the division.
124. The retail marijuana excise tax shall be separately
13itemized from a local marijuana excise tax on the receipt
14provided to the purchaser.
15 Sec. 39. NEW SECTION. 124F.24 Occupational licensing —
16protections.
171. A person holding a professional or occupational license
18shall not be subject to professional discipline for providing
19advice or services related to retail marijuana establishments
20or applications to operate retail marijuana establishments on
21the basis that marijuana is illegal under federal law.
222. An applicant for a professional or occupational license
23shall not be denied a license based on previous employment
24related to retail marijuana establishments operating in
25accordance with state law.
26 Sec. 40. NEW SECTION. 124F.25 Rulemaking.
271. The division shall, within one hundred eighty days of the
28effective date of this Act, adopt rules for the implementation
29of this subchapter. The rules shall not prohibit the operation
30of retail marijuana establishments or require such a high
31investment of risk, money, time, or other resource or asset
32that the operation of a retail marijuana establishment is not
33worthy of being carried out in practice by a reasonably prudent
34businessperson. Such rules shall include all of the following:
35a. Procedures for the issuance, renewal, suspension, and
-27-1revocation of a registration to operate a retail marijuana
2establishment, subject to chapter 17A.
3b. A schedule of reasonable application, registration,
4and renewal fees, provided application fees shall not exceed
5five thousand dollars, with this upper limit adjusted annually
6for inflation, unless the division determines a greater fee
7is necessary to carry out its responsibilities under this
8subchapter. Fees shall be collected by the division and used
9to administer this subchapter.
10c. Qualifications for registration that are directly and
11demonstrably related to the operation of a retail marijuana
12establishment and that may not disqualify applicants solely for
13marijuana offenses prior to the effective date of this Act.
14d. Security requirements.
15e. Requirements for the transportation and storage of retail
16marijuana and retail marijuana products by retail marijuana
17establishments.
18f. Requirements for the delivery of retail marijuana and
19retail marijuana products to consumers, including a prohibition
20on business names, logos, and other identifying language or
21images on delivery vehicles and a prohibition on delivering
22retail marijuana and retail marijuana products to any address
23located on land owned by the federal government or any address
24on land or in a building leased by the federal government.
25g. Employment and training requirements, including
26requiring that each retail marijuana establishment create
27an identification badge for each employee or agent. These
28requirements shall not disqualify applicants solely for
29marijuana offenses prior to the effective date of this Act.
30h. Requirements designed to prevent the sale or diversion of
31retail marijuana and retail marijuana products to persons under
32the age of twenty-one.
33i. Requirements for retail marijuana and retail
34marijuana products sold or distributed by a retail marijuana
35establishment, including prohibiting any misleading labeling
-28-1and requiring retail marijuana product labels to include all
2of the following:
3(1) The length of time it typically takes for the product
4to take effect.
5(2) A disclosure of ingredients and possible allergens.
6(3) A nutritional fact panel.
7(4) Requiring opaque, child resistant packaging, which must
8be designed or constructed to be significantly difficult for
9children under five years of age to open and not difficult for
10adults to use properly as defined by 16 C.F.R. §1700.20.
11(5) Requiring that edible retail marijuana products be
12clearly identifiable, when practicable, with a standard symbol
13indicating the retail marijuana product contains marijuana.
14j. Health and safety regulations and standards for the
15manufacture of retail marijuana products and both the indoor
16and outdoor cultivation of retail marijuana by retail marijuana
17establishments.
18k. Restrictions on advertising, marketing, and signage
19including but not limited to a prohibition on mass-market
20campaigns that have a high likelihood of reaching minors.
21l. Rules to create at least six tiers of retail marijuana
22cultivation facilities, based on the size of the facility or
23the number of plants cultivated, and whether the cultivation
24occurs outdoors, indoors, or in a greenhouse. Security
25regulations and licensing fees must vary based on the size of
26the cultivation facility.
27m. Restrictions or prohibitions on additives in retail
28marijuana and retail marijuana-infused products, including but
29not limited to those that are toxic or designed to make the
30product more addictive.
31n. Prohibitions on products that are designed to make the
32product more appealing to children, including prohibiting the
33use of any images designed or likely to appeal to minors,
34including cartoons, toys, animals, or children, and any other
35images, characters, or phrases that are popularly used to
-29-1advertise to children.
2o. Restrictions on the use of pesticides that are injurious
3to human health.
4p. Rules governing visits to retail marijuana cultivation
5facilities and retail marijuana product manufacturing
6facilities, including requiring the retail marijuana
7establishment to log visitors.
8q. A definition of the amount of delta-9
9tetrahydrocannabinol that constitutes a single serving
10in a retail marijuana product.
11r. Standards for the safe manufacture of marijuana extracts
12and concentrates.
13s. Requirements that educational materials be disseminated
14to consumers who purchase retail marijuana-infused products.
15t. Requirements for random sample testing to ensure quality
16control, including by ensuring that retail marijuana and
17retail marijuana-infused products are accurately labeled for
18potency. Unless the division determines that remediation or
19treatment is sufficient to ensure product safety, the testing
20analysis must include testing for residual solvents, poisons,
21or toxins; harmful chemicals; dangerous molds or mildew; filth;
22and harmful microbials such as E. coli or salmonella and
23pesticides.
24u. Standards for the operation of marijuana testing
25facilities, including requirements for equipment and
26qualifications for personnel.
27v. Civil penalties for the failure to comply with rules
28adopted pursuant to this subchapter. Civil penalties shall
29be collected by the division and used to administer this
30subchapter.
31w. Procedures for collecting taxes levied on retail
32marijuana establishments.
33x. Requirements for on-site consumption establishments,
34including for security, ventilation, odor control, and
35consumption by patrons. These rules may include a prohibition
-30-1on smoking indoors.
22. After consultation with researchers knowledgeable
3about the risks and benefits of marijuana and providing an
4opportunity for public comment, the division shall develop a
5scientifically accurate safety information label or handout
6or both, which shall be available to each adult-use marijuana
7consumer. The label or handout shall include all of the
8following:
9a. Advice about the potential risks of marijuana, including
10all of the following:
11(1) The risks of driving under the influence of marijuana,
12and the fact that doing so is illegal.
13(2) Any adverse effects unique to younger adults, including
14related to the developing mind.
15(3) Potential adverse events and other risks.
16(4) The risks of using marijuana during pregnancy and
17breastfeeding.
18b. The need to safeguard all retail marijuana and retail
19marijuana products from children and pets.
203. The division shall review and update the safety
21information materials at least once every two years to
22ensure they remain accurate. The review period shall include
23soliciting input from researchers knowledgeable about the
24risks and benefits of marijuana and an opportunity for public
25comment.
264. In order to ensure that individual privacy is protected,
27the division shall not require a consumer to provide a
28retail marijuana store with personal information other than
29government-issued identification to determine the consumer’s
30age, and a retail marijuana store shall not be required to
31acquire and record personal information about consumers.
32 Sec. 41. NEW SECTION. 124F.26 Driving under the influence
33of marijuana — prohibited.
34Nothing in this subchapter allows driving under the
35influence of marijuana or while impaired by marijuana.
-31-1 Sec. 42. NEW SECTION. 124F.27 Marijuana use by minors —
2prohibited.
3Nothing in this subchapter allows the transfer of marijuana,
4with or without remuneration, to a person under the age of
5twenty-one years, or the use of marijuana by a person under the
6age of twenty-one years.
7 Sec. 43. NEW SECTION. 124F.28 Private property and tenant
8rights.
91. Except as provided in this section, the provisions of
10this subchapter do not require any person, corporation, or any
11other entity that occupies, owns, or controls a property to
12allow the consumption, cultivation, display, sale, or transfer
13of marijuana on or in that property.
142. a. Except as provided in this section, a landlord
15or property manager shall not refuse to rent to a tenant
16or otherwise discriminate against a tenant based on a past
17conviction for a marijuana offense that would have been legal
18under this chapter.
19b. Except as provided in this section, in the case of
20the rental of a residential dwelling, a landlord or property
21manager shall not prohibit the possession of retail marijuana
22or the consumption of retail marijuana by nonsmoking means.
23c. The limitations in this subsection do not apply in any
24of the following circumstances:
25(1) The tenant is a roomer who is not leasing the entire
26residential dwelling.
27(2) The residence is incidental to detention or the
28provision of medical, geriatric, educational, counseling,
29religious, or similar services.
30(3) The residence is a transitional housing or sober living
31facility.
32(4) Failing to prohibit marijuana possession or consumption
33would violate federal law or regulations or cause a landlord
34or property manager to lose a monetary or licensing-related
35benefit under federal law or regulations.
-32- 1d. After a warning, a landlord or property manager may
2take action against a tenant if the tenant’s use of marijuana
3creates an odor that interferes with a person’s peaceful
4enjoyment of the person’s home or property.
5 Sec. 44. NEW SECTION. 124F.29 Contracts enforceable.
6It is the public policy of this state that contracts related
7to the operation of a retail marijuana establishment registered
8pursuant to this subchapter should be enforceable. It is
9the public policy of this state that no contract entered
10into by a retail marijuana establishment or its employees
11or agents as permitted pursuant to a valid registration, or
12by those who allow property to be used by an establishment,
13its employees, or its agents as permitted pursuant to a
14valid registration, shall be unenforceable on the basis
15that cultivating, obtaining, manufacturing, distributing,
16dispensing, transporting, selling, possessing, or using
17marijuana or hemp is prohibited by federal law.
18 Sec. 45. NEW SECTION. 124F.30 Law enforcement —
19limitations.
201. No law enforcement officer employed by an agency that
21receives state or local government funds shall expend any state
22or local resources, including the officer’s time, to effect any
23arrest or seizure of marijuana, or conduct any investigation,
24on the sole basis of activity the officer believes to
25constitute a violation of federal law, if the officer has
26reason to believe that such activity is in compliance with
27this chapter, nor shall any such officer expend any state or
28local resources, including the officer’s time, to provide any
29information or logistical support related to such activity to
30any federal law enforcement authority or prosecuting entity.
312. No agency or political subdivision of this state shall
32rely on a violation of federal law related to marijuana as the
33sole basis for taking an adverse action against a person.
34 Sec. 46. NEW SECTION. 124F.31 Apportionment of revenue.
35Revenues generated in excess of the amount needed to
-33-1implement and enforce this subchapter by the marijuana excise
2tax shall be distributed by the division every three months as
3follows:
41. Seven percent to the Iowa department of public health for
5use in evidence-based, voluntary programs for the prevention or
6treatment of substance abuse.
72. Seventeen percent to the Iowa department of public health
8for enhancement of the state’s mental health systems.
93. Up to one percent to the department of public safety
10to fund impaired driving enforcement and drug recognition
11training. If the entire one percent is not needed for
12training, any excess shall be distributed to the general fund.
134. Seventy-five percent to the general fund.
14 Sec. 47. NEW SECTION. 423H.1 Definitions.
15For the purposes of this chapter, unless the context
16otherwise requires, “retail marijuana”, “retail marijuana
17establishment”, and “retail marijuana product” mean the same as
18defined in section 124F.7.
19 Sec. 48. NEW SECTION. 423H.2 Local marijuana excise tax.
201. A municipality may by ordinance adopt an excise tax at a
21rate of no more than three percent of the sales price of each
22sale of retail marijuana and retail marijuana products to a
23consumer under the jurisdiction of the municipality pursuant
24to chapter 124F, subchapter II.
252. A municipality shall provide notice of the imposition
26of an excise tax under this section and the amount of the tax
27to the department of revenue at least ninety days prior to
28the first day of the tax quarter when the excise tax will be
29collected.
303. A local marijuana excise tax imposed pursuant to this
31section shall be paid by the consumer to the retail marijuana
32establishment. Each retail marijuana establishment shall
33collect from the consumer the full amount of the tax payable on
34each taxable sale.
354. On the fifteenth day of each month, each retail marijuana
-34-1establishment that sells retail marijuana to a consumer
2shall pay the local marijuana excise taxes due on the retail
3marijuana that the retail marijuana establishment sold in the
4previous calendar month to the municipality.
55. The local marijuana excise tax imposed by this section
6is separate from and in addition to the marijuana excise tax
7imposed pursuant to section 124F.23. The local marijuana
8excise tax imposed pursuant to this section shall not be part
9of the sales price to which the marijuana excise tax applies.
106. The local marijuana excise tax shall be separately
11itemized from the marijuana excise tax imposed pursuant to
12section 124F.23 on the receipt provided to the purchaser.
13 Sec. 49. NEW SECTION. 453B.19 Retail marijuana.
14This chapter shall not apply to retail marijuana or retail
15marijuana products produced or sold pursuant to chapter 124F.
16 Sec. 50. SUBCHAPTER DESIGNATIONS.
171. The Code editor is directed to create two new subchapters
18in chapter 124F as follows:
19a. Subchapter I shall be entitled “criminal penalties” and
20include sections 124F.1 through 124F.5.
21b. Subchapter II shall be entitled “retail marijuana” and
22include sections 124F.6 through 124F.31.
232. The Code editor may modify subchapter titles if necessary
24and is directed to correct internal references in the Code as
25necessary due to enactment of this section.
26 Sec. 51. EFFECTIVE DATE. This Act takes effect January
271, 2024, except that the alcoholic beverages division of the
28department of commerce may adopt rules for the implementation
29of this Act prior to that date.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33DIVISION I — CRIMINAL PENALTIES. This bill modifies
34criminal penalties relating to marijuana by eliminating and
35modifying certain criminal provisions in Code chapter 124
-35-1(uniform controlled substances Act), and transferring certain
2criminal provisions from Code chapter 124 to new Code chapter
3124F.
4MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER
5MARIJUANA. The bill provides that an unauthorized person
6commits a class “C” felony punishable by confinement for
7no more than 10 years and a fine of at least $1,370 but not
8more than $13,660 if the person violates new Code section
9124F.2(1)(a) and the controlled substance involves more than
1022 kilograms of marijuana. Currently, such a person commits
11a class “B” felony punishable by confinement of no more than
1250 years if the controlled substance involves more than 1,000
13kilograms of a mixture or substance containing a detectable
14amount of marijuana, or a class “B” felony punishable by
15confinement of no more than 25 years if the controlled
16substance involves more than 100 kilograms of marijuana but not
17more than 1,000 kilograms.
18The bill provides that an unauthorized person commits a
19class “D” felony if the person violates new Code section
20124F.2(1)(b) and the controlled substance involves more than
212 kilograms of marijuana but not more than 22 kilograms. A
22class “D” felony is punishable by confinement for no more than
23five years and a fine of at least $1,025 but not more than
24$10,245. Currently, such a person commits a class “C” felony
25if the controlled substance involves more than 50 kilograms of
26marijuana but not more than 100 kilograms.
27The bill provides that an unauthorized person commits an
28aggravated misdemeanor if the person violates new Code section
29124F.2(1)(c) and the controlled substance involves more than
3012 ounces of marijuana but not more than 2 kilograms. An
31aggravated misdemeanor is punishable by confinement for no more
32than two years and a fine of at least $855 but not more than
33$8,540. Currently, such a person commits a class “D” felony
34if the controlled substance involves 50 kilograms or less of
35marijuana.
-36- 1The bill provides that an unauthorized person commits a
2serious misdemeanor if the person violates new Code section
3124F.2(1)(d) and the controlled substance involves more than
44 ounces of marijuana but not more than 12 ounces. A serious
5misdemeanor is punishable by confinement for no more than one
6year and a fine of at least $430 but not more than $2,560.
7Currently, such a person commits a class “D” felony.
8The bill provides that an unauthorized person commits a
9simple misdemeanor if the person violates new Code section
10124F.2(1)(e) and the controlled substance involves 4 ounces or
11less of marijuana except as otherwise provided in the bill. A
12simple misdemeanor is punishable by confinement for no more
13than 30 days and a fine of at least $105 but not more than $855.
14Currently, such a person commits a class “D” felony.
15POSSESSION OF MARIJUANA. The bill provides that if a person
16unlawfully possesses more than 6 ounces of marijuana but not
17more than 12 ounces, the person commits a serious misdemeanor.
18The bill provides that if a person unlawfully possesses more
19than one-half ounce of marijuana but not more than 6 ounces,
20the person commits a simple misdemeanor.
21The bill provides that if a person 21 years of age or older
22possesses one-half ounce or less of marijuana, the person
23does not commit a criminal offense but shall be assessed a
24civil penalty in the amount of $100. If the person is under
2521 years of age, the offense shall be punishable as a serious
26misdemeanor, which may be expunged after two years if the
27person does not commit additional criminal violations other
28than traffic offenses. The bill provides that any records
29relating to the civil penalty shall not be displayed for public
30viewing on the Iowa court information system and such records
31shall not be kept in the criminal history files maintained by
32the department of public safety.
33The bill allows a municipality to adopt an ordinance to allow
34for the legal possession of marijuana.
35RETAIL MARIJUANA — POSSESSION LIMITS. The bill establishes
-37-1possession limits for retail marijuana, defined in the
2bill. The bill prohibits a resident of Iowa 21 years of
3age or older from possessing more than 30 grams of marijuana
4flower, 5 grams of marijuana concentrate, or 500 milligrams
5of tetrahydrocannabinol contained in a product infused with
6marijuana. Persons 21 years of age or older who are not
7residents of Iowa may possess retail marijuana of no more
8than 15 grams of marijuana flower, 2.5 grams of marijuana
9concentrate, or 250 milligrams of tetrahydrocannabinol
10contained in a product infused with marijuana. A person in
11possession of retail marijuana in excess of amounts equivalent
12to the amounts specified in the bill for the possession of
13marijuana is subject to prosecution for a simple or serious
14misdemeanor or a civil penalty. A retail marijuana store that
15sells retail marijuana in excess of such amounts is subject to
16a fine or other discipline imposed by the division.
17Currently, if a person unlawfully possesses marijuana, the
18person shall be punished by imprisonment in the county jail for
19not more than six months or by a fine of not more than $1,000,
20or by both for a first offense. If the person has previously
21been convicted of marijuana possession, the person commits a
22serious misdemeanor under current law, and if the person has
23been convicted of marijuana possession two or more times, the
24person commits an aggravated misdemeanor.
25DELIVERY OR POSSESSION OF MARIJUANA — SMALL AMOUNTS. If
26the amount of marijuana delivered or possessed with intent to
27deliver is one ounce or less and no remuneration was provided,
28the defendant shall not be prosecuted for a violation of the
29bill.
30MARIJUANA USE IN PUBLIC. The bill prohibits the consumption
31of marijuana in areas open and accessible to the public,
32including but not limited to public transportation facilities,
33sporting or music venues, parks, playgrounds, sidewalks and
34roads, outdoor cafes, or indoor but public locations. A person
35who violates this provision commits a simple misdemeanor
-38-1punishable as a scheduled violation in the amount of $50 for
2a first offense and $100 for a second or subsequent offense.
3This violation may be expunged after two years if the person
4does not commit additional criminal violations other than
5traffic offenses.
6JUVENILE MARIJUANA OFFENSES. The bill specifies that the
7juvenile court shall have exclusive original jurisdiction in a
8proceeding concerning a minor who is alleged to have committed
9a violation of the bill.
10GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED.
11 The bill strikes a provision making it a serious misdemeanor
12for a person to sponsor, promote, or aid in the sponsoring
13or promoting of a meeting or gathering with the knowledge or
14intent that marijuana be distributed, used, or possessed at the
15meeting or gathering in violation of Code chapter 124.
16ACCOMMODATION OFFENSE. The bill strikes a provision
17allowing a prosecution for unlawful delivery or possession with
18intent to deliver marijuana, if the prosecution proves that
19the defendant delivered or possessed with intent to deliver
20one-half ounce or less of marijuana which was not offered for
21sale, the defendant is guilty of an accommodation offense
22and rather than being sentenced for a class “D” felony under
23Code section 124.401(1)(d), the person is sentenced for a
24misdemeanor in violation of Code section 124.401(5). The bill
25makes conforming changes to Code sections 124.401G (Iowa hemp
26Act) and 124.413 (mandatory minimum sentences — controlled
27substances).
28SECOND OR SUBSEQUENT OFFENSES. Currently, a person
29convicted of a second or subsequent offense under Code chapter
30124 may be punished by imprisonment for a period not to exceed
31three times the term otherwise authorized, or fined not more
32than three times the amount otherwise authorized. The bill
33strikes the provision that allows for the use of a previous
34marijuana conviction in determining if a person has been
35convicted of a second or subsequent offense under Code chapter
-39-1124.
2MARIJUANA IN MOTOR VEHICLES. The bill prohibits a driver
3of a motor vehicle upon a public street or highway from using
4marijuana in the passenger area of the motor vehicle. The bill
5also prohibits a driver or passenger of or in a motor vehicle
6upon a public street or highway from possessing marijuana in
7the passenger area of a motor vehicle except in a sealed, odor
8proof, child resistant container. The bill defines “passenger
9area” as the area designed to seat the driver and passengers
10while the motor vehicle is in operation and any area that is
11readily accessible to the driver or a passenger while in their
12seating positions, including the glove compartment. A person
13who knowingly violates this provision of the bill is guilty of
14a simple misdemeanor. A simple misdemeanor is punishable by
15confinement for no more than 30 days and a fine of at least $105
16but not more than $855.
17DIVISION II — RETAIL MARIJUANA. Division II of the
18bill relates to the regulation of retail marijuana in Iowa.
19The bill grants the alcoholic beverages division of the
20department of commerce (division) the authority to regulate the
21cultivation, production, transportation, testing, and sale of
22retail marijuana and retail marijuana products, including by
23issuing appropriate licenses and promulgating rules.
24The bill requires the division to transfer half of any
25application fee collected to the local jurisdiction in which
26the retail marijuana establishment will be located. The
27bill allows local jurisdictions to impose limitations on the
28operation of retail marijuana establishments, including by
29prohibiting their operation.
30The bill directs the division to develop and maintain a
31seed-to-sale tracking system to track retail marijuana from the
32seed or immature plant stage until it is sold to a consumer at a
33retail marijuana establishment.
34LOCAL LICENSES. The bill requires the division to transmit
35any application for a retail marijuana establishment it
-40-1receives to the local jurisdiction where the establishment
2will be located within seven days of receipt unless the
3local jurisdiction has prohibited the operation of retail
4marijuana establishments. The local jurisdiction must then
5inform the division whether the application complies with
6any local restrictions on the operation of retail marijuana
7establishments it may have imposed. The bill requires a person
8to receive approval from both the division and the local
9jurisdiction before operating a retail marijuana establishment.
10A person whose application for a license is denied is entitled
11to a hearing and judicial review pursuant to Code chapter 17A.
12LICENSES. Ninety days prior to the expiration date of an
13existing license, the division shall notify the licensee of the
14expiration date by first class mail at the licensee’s address
15of record with the division. A licensee may apply for the
16renewal of an existing license to the division not less than 30
17days prior to the date of expiration.
18RETAIL MARIJUANA STORES. The bill allows a retail marijuana
19store to purchase retail marijuana from a retail marijuana
20cultivation facility. A retail marijuana store may also
21sell prepackaged and labeled retail marijuana products. A
22retail marijuana store must track all of its retail marijuana
23and retail marijuana products from the point that they are
24transferred to the retail marijuana store to the point of
25sale. The bill prohibits a retail marijuana store from selling
26more than one ounce of retail marijuana or its equivalent
27in a single transaction to a person, excluding nonedible,
28nonpsychoactive retail marijuana products.
29Prior to initiating a sale, the bill requires a retail
30marijuana store employee to verify that that purchaser has a
31valid identification card showing that the person is 21 years
32of age or older. If a purchaser presents a retail marijuana
33store employee with fraudulent proof of age, any action taken
34in reliance on that proof of age shall not be grounds for the
35revocation or suspension of a license.
-41- 1The bill allows a retail marijuana store to provide to the
2state hygienic laboratory a sample of its products for testing
3and research purposes. The retail marijuana store shall
4maintain a record of what was provided to the laboratory and
5the results of the testing.
6The bill prohibits a retail marijuana store from selling
7any products other than retail marijuana, retail marijuana
8products, marijuana accessories, nonconsumable products such as
9apparel, and marijuana products such as childproof packaging
10containers.
11RETAIL MARIJUANA CULTIVATION. The bill allows the division
12to issue up to 20 retail marijuana cultivation facility
13licenses to persons who cultivate retail marijuana for sale
14and distribution to retail marijuana stores, manufacturers,
15or other cultivation facilities. The bill requires a retail
16marijuana cultivation facility to remit any applicable tax due.
17The bill also requires a retail marijuana cultivation facility
18to track the marijuana it cultivates from seed or immature
19plant to wholesale purchase.
20RETAIL MARIJUANA PRODUCTS MANUFACTURING LICENSES. The bill
21allows the division to issue up to 20 retail marijuana products
22manufacturing licenses to persons who manufacture retail
23marijuana products. The bill requires a retail marijuana
24products manufacturer to track all of its retail marijuana from
25the point it is either transferred from its retail marijuana
26cultivation facility or the point when it is delivered to the
27retail marijuana products manufacturer from a retail marijuana
28cultivation facility to the point of transfer to a retail
29marijuana store.
30The bill requires retail marijuana products to be
31manufactured and prepared in a facility that only manufactures
32retail marijuana products, except that premises may be shared
33with a medical cannabidiol-infused products manufacturer so
34long as a virtual or physical separation of inventory is
35maintained.
-42- 1RETAIL MARIJUANA TRANSPORTATION. The bill allows the
2division to issue a retail marijuana transporter license to
3a person to provide logistics, distribution, and storage of
4retail marijuana and retail marijuana products. The bill
5requires a retail marijuana transporter to use the seed-to-sale
6tracking system to create shipping manifests documenting the
7transport of retail marijuana and retail marijuana products.
8RETAIL MARIJUANA USE — PROTECTIONS. The bill prohibits
9the state and its political subdivisions from taking certain
10actions against a person on the basis that the person has
11engaged in conduct allowed by the bill. The state and its
12political subdivisions shall not prosecute a person, deny a
13person a professional license, deny a person a benefit or
14entitlement, deny a person custody or visitation of a child,
15deny a person employment or a contract, or deny a person
16medical care on the basis that the person has engaged in
17conduct allowed by the bill. The bill also prohibits the
18state or a political subdivision from denying employment
19or a contract to a person on the basis of a person’s prior
20conviction of a nonviolent marijuana offense that does not
21involve distribution to a minor. The bill excludes engaging
22in conduct allowed by the bill from being classified as a
23violation of a condition of parole, probation, or pretrial
24release unless there is a specific finding that the conduct
25could create a danger to the individual or another person.
26The bill does not prohibit a governmental employer from
27disciplining an employee or contractor for ingesting marijuana
28at work or working while impaired by marijuana, nor does it
29prohibit a licensing board from imposing a penalty on a person
30for engaging in conduct that would constitute negligence or
31professional malpractice. The protections of the bill do not
32apply to the extent that they conflict with a governmental
33employer’s obligations under federal law or would disqualify
34a governmental employer from a monetary or licensing-related
35benefit under federal law.
-43- 1FEES. The bill allows the division to collect and charge
2fees. The bill sets the application fee for a person applying
3for a new retail marijuana establishment license at $5,000,
4which shall be divided evenly between the division and the
5local jurisdiction where the license is proposed to be issued.
6The bill permits a local jurisdiction to impose operating fees
7on retail marijuana establishments to which it has granted a
8license.
9LICENSE DISCIPLINE. The bill permits the division, on its
10own motion or complaint, and after investigation, notice,
11a public hearing, and opportunity to be heard, to suspend
12or revoke a license if the licensee or any of its agents or
13employees violate a provision of the bill or a rule promulgated
14by the division. The division may administer oaths and issue
15subpoenas to require the presence of persons and the production
16of documents. The division may impose discipline pursuant to
17rules and Code chapter 17A.
18INSPECTION. The bill requires a licensee to keep a complete
19set of all records necessary to show fully the business
20transactions of the licensee, all of which shall be open at all
21times during business hours for the inspection and examination
22by the division or its duly authorized representatives.
23The bill requires the licensed premises of a retail
24marijuana establishment, including any places of storage
25where retail marijuana or retail marijuana products are
26stored, cultivated, sold, dispensed, or tested to be subject
27to inspection by the state or local jurisdictions and their
28investigators, during all business hours and other times
29of apparent activity, for the purpose of inspection or
30investigation.
31STATE EXCISE TAX. The bill imposes an excise tax on
32consumers at the rate of 20 percent of the sale price on
33each sale of retail marijuana. The tax shall be paid by the
34consumer to the retail marijuana establishment at the time
35of sale, and each retail marijuana establishment shall remit
-44-1the tax collected to the division on the 15th day of each
2month. Revenues generated by the excise tax shall be used to
3administer the retail marijuana program. Excess funds shall be
4distributed as provided by the bill to the Iowa department of
5public health, the department of public safety, and the general
6fund of the state.
7OCCUPATIONAL LICENSING PROTECTIONS. The bill prohibits a
8professional or occupational licensing board from imposing
9discipline on a licensee for providing services related to
10retail marijuana establishments. The bill also prohibits a
11professional or occupational licensing board from denying a
12license to a person based on a person’s past employment with a
13retail marijuana establishment.
14RULEMAKING. The bill requires the alcoholic beverages
15division to adopt rules within 180 days of the effective date
16of the bill to adopt rules for the implementation of the bill.
17The rules shall not prohibit the operation of retail marijuana
18establishments or make the operation of retail marijuana
19establishments so costly as to be impractical. Required rules
20include but are not limited to rules relating to applications,
21fees, licensure, security requirements, labeling requirements,
22health and safety requirements, restrictions on advertising,
23cultivation, testing, and penalties. The division shall also
24develop and regularly update safety materials to be distributed
25upon the sale of retail marijuana.
26ACTS PROHIBITED. The bill does not allow driving while under
27the influence of or impaired by marijuana and does not allow
28the transfer of marijuana to a person under 21 years of age or
29the possession of marijuana by a person under 21 years of age.
30PROPERTY RIGHTS. The bill does not require the owner of
31a property to allow the consumption, cultivation, display,
32sale, or transfer of marijuana at that property. However, in
33the case of a residential dwelling, a landlord or property
34manager shall not prohibit the possession of retail marijuana
35or the consumption of retail marijuana by means other than
-45-1smoking except under certain circumstances. The bill allows
2a landlord to take action against a tenant after a warning if
3the tenant’s use of marijuana creates an odor that interferes
4with the peaceful enjoyment of property by other tenants. The
5bill prohibits a landlord from discriminating against a tenant
6or applicant on the basis of a past conviction of a marijuana
7offense that would have been legal under the bill.
8CONTRACTS. The bill states that it is the public policy
9of the state that contracts relating to retail marijuana
10shall not be unenforceable on the basis that the production,
11distribution, and possession of marijuana is prohibited by
12federal law.
13LAW ENFORCEMENT. The bill prohibits law enforcement
14agencies from expending resources on the investigation of or
15arrest for activity related to marijuana that is in violation
16of federal law if the officer performing the investigation
17or arrest has reason to believe that the activity complies
18with the requirements of the bill. The bill also prohibits
19an agency or political subdivision of the state from taking
20an adverse action against a person on the sole basis that the
21person has violated a federal law related to marijuana.
22LOCAL EXCISE TAX. The bill allows a municipality to adopt
23by ordinance an excise tax of no more than 3 percent on retail
24marijuana sold in the municipality. The bill requires a
25municipality to inform the department of revenue at least 90
26days prior to the first day of the tax quarter when the excise
27tax will be collected. The tax shall be paid by the consumer
28to the retail marijuana establishment at the time of sale,
29and each retail marijuana establishment shall remit the tax
30collected to the municipality on the 15th day of each month.
31The bill takes effect January 1, 2024, except that the
32alcoholic beverages division may adopt rules prior to that date
33for the implementation of the bill.
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