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House File 442 - IntroducedA Bill ForAn Act 1relating to marijuana, including the manufacture,
2delivery, and possession of marijuana, the licensure of
3retail marijuana, and medical cannabis, providing fees,
4including excise taxes, establishing funds, providing
5penalties, and including effective date provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2marijuana — CRIMINAL 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. If
10the controlled substance is marijuana and the person has been
11previously convicted of a violation of this subsection in which
12the controlled substance was marijuana, the punishment shall be
13as provided in section 903.1, subsection 1, paragraph “b”. If
14the controlled substance is marijuana and the person has been
15previously convicted two or more times of a violation of this
16subsection in which the controlled substance was marijuana,
17the person is guilty of an aggravated misdemeanor. This
18subsection does not apply to the possession of marijuana which
19is 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. a. 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:
2(1) More than fifty kilograms shall be a class “C” felony.
3(2) More than two kilograms but not more than fifty
4kilograms shall be a class “D” felony.
5(3) More than twelve ounces but not more than two kilograms
6shall be an aggravated misdemeanor.
7(4) More than four ounces but not more than twelve ounces
8shall be punishable as a serious misdemeanor.
9(5) Four ounces or less shall be punishable as a simple
10misdemeanor, except as provided in section 124F.3.
11b. In addition to any other penalties provided in this
12subsection, a person who is eighteen years of age or older
13who unlawfully manufactures with the intent to distribute,
14distributes, or possesses with the intent to distribute
15marijuana to another person who is eighteen years of age or
16older in or on, or within one thousand feet of, the real
17property comprising a public or private elementary or secondary
18school, public park, public swimming pool, public recreation
19center, or on a marked school bus, may be sentenced up to an
20additional term of confinement of five years.
212. It is unlawful for any person knowingly or intentionally
22to possess marijuana unless such substance was obtained
23directly from, or pursuant to, a valid prescription or order of
24a practitioner while acting in the course of the practitioner’s
25professional practice, or except as otherwise authorized by
26this subsection. A violation of this subsection involving
27the possession of the following amounts of marijuana shall be
28punishable as follows:
29a. More than six ounces but not more than twelve ounces is
30a serious misdemeanor.
31b. More than one-half ounce but not more than six ounces is
32a simple misdemeanor.
33c. One-half ounce or less is not a criminal offense but
34shall be assessed as a civil penalty in the amount of one
35hundred dollars, except if the person is under twenty-one years
-4-1of age, the person shall complete a drug awareness program and
2ten hours of unpaid community service, and shall notify the
3person’s parents or legal guardian.
4(1) The civil penalty shall be collected by the clerk of the
5district court pursuant to section 602.8105, subsection 5.
6(2) Any records relating to the civil penalty shall not
7be displayed for public viewing on the Iowa court information
8system.
9(3) Any records relating to the civil penalty shall not
10be kept in the criminal history data files maintained by the
11department of public safety. Any records relating to the civil
12penalty shall not be disseminated to other criminal or juvenile
13justice agencies.
143. a. A retail marijuana store shall not sell retail
15marijuana in excess of the following amounts in a single
16transaction:
17(1) Thirty grams of marijuana flower.
18(2) Five hundred milligrams of tetrahydrocannabinol
19contained in a product infused with marijuana.
20b. A person shall not possess more than five ounces of
21marijuana flower.
22c. A person in possession of retail marijuana in excess of
23the amounts specified in paragraph “a” equivalent to the amounts
24specified in subsection 2, shall be subject to the penalties in
25subsection 2.
26d. A retail marijuana store in violation of this subsection
27shall be subject to licensee discipline pursuant to section
28124F.16.
29e. For purposes of this subsection, “retail marijuana” and
30“retail marijuana store” mean the same as defined in section
31124F.4.
324. a. Upon the expiration of two years following a
33conviction for a violation of subsection 2, paragraph “a” or
34“b”, a person may petition the court to expunge the conviction,
35and if the person has had no other criminal convictions, other
-5-1than local traffic violations or simple misdemeanor violations
2of chapter 321 during the two-year period, the conviction
3shall be expunged as a matter of law. The court shall enter
4an order that the record of the conviction be expunged by the
5clerk of the district court. Notwithstanding section 692.2,
6after receipt of notice from the clerk of the district court
7that a record of conviction has been expunged pursuant to this
8subsection, the record of conviction shall be removed from the
9criminal history data files maintained by the department of
10public safety.
11b. On the effective date of this Act, each court shall
12review its records to identify persons who have been convicted
13of an offense based on conduct allowed under this Act. Each
14such conviction shall be expunged as a matter of law as
15provided in paragraph “a”.
16 Sec. 14. NEW SECTION. 124F.3 Juvenile offenses.
17The juvenile court shall have exclusive original
18jurisdiction in a proceeding concerning a minor who is alleged
19to have committed a violation of this subchapter.
20 Sec. 15. NEW SECTION. 321.284B Marijuana in motor vehicles.
211. A driver of a motor vehicle upon a public street or
22highway shall not use marijuana in the passenger area of the
23motor vehicle. “Passenger area” means the area designed to
24seat the driver and passengers while the motor vehicle is in
25operation and any area that is readily accessible to the driver
26or a passenger while in their seating positions, including the
27glove compartment.
282. A driver or passenger of or in a motor vehicle upon a
29public street or highway shall not possess marijuana in the
30passenger area of a motor vehicle except in a sealed, odor
31proof, child resistant container.
323. For the purposes of this section, “marijuana” means the
33same as defined in section 124.401.
344. A person who knowingly violates a provision of this
35section is guilty of a simple misdemeanor.
-6-1 Sec. 16. Section 321J.2, subsection 1, paragraph c, Code
22023, is amended to read as follows:
3c. While Except as provided in section 321J.2C, any amount
4of a controlled substance is present in the person, as measured
5in the person’s blood or urine.
6 Sec. 17. NEW SECTION. 321J.2C Operating while under the
7influence of marijuana.
81. A person shall not operate a motor vehicle in this state
9while having fifty nanograms of tetrahydrocannabinol in the
10person, as measured in the person’s blood.
112. A person who violates subsection 1 is guilty of a serious
12misdemeanor, punishable as follows:
13a. For a first offense, revocation of the person’s driver’s
14license for a period of one hundred eighty days, except that if
15the person refused to submit to chemical testing, the person’s
16driver’s license shall be revoked for a period of one year.
17b. For a second or subsequent offense, revocation of the
18person’s driver’s license for a period of one year, except
19that if the person refused to submit to chemical testing, the
20person’s driver’s license shall be revoked for a period of two
21years.
22 Sec. 18. Section 602.8105, Code 2022, is amended by adding
23the following new subsection:
24 NEW SUBSECTION. 5. The clerk of the district court shall
25collect the civil penalty assessed pursuant to section 124F.2,
26subsection 2, paragraph “c”, subparagraph (1).
27 Sec. 19. NEW SECTION. 901C.4 Felony offenses related to
28marijuana — expungement.
291. In addition to the expungement provisions available
30to a defendant convicted of a misdemeanor marijuana offense
31under chapter 124, upon application of a defendant convicted
32of a felony offense under chapter 124 in the county where the
33conviction occurred, related to the possession or transfer of
34marijuana, the court shall enter an order expunging the record
35of such a criminal case.
-7- 12. A person shall be granted an expungement of a record
2under this section one time in the person’s lifetime. However,
3the one application may request the expungement of records
4relating to more than one nonviolent offense under this section
5if the offenses arose from the same transaction or occurrence,
6and the application contains the offenses to be expunged.
73. The expunged record under this section is a confidential
8record exempt from public access under section 22.7 but shall
9be made available by the clerk of the district court upon court
10order.
114. Notwithstanding section 692.2, after receipt of
12notice from the clerk of the district court that a record of
13conviction has been expunged under subsection 1, the record
14of conviction shall be removed from the criminal history data
15files maintained by the department of public safety if such a
16record was maintained in the criminal history data files.
175. The supreme court may prescribe rules governing the
18procedures applicable to the expungement of a criminal case
19under this section.
206. This section applies to a felony conviction that occurred
21prior to January 1, 2024.
22 Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed.
23DIVISION II
24RETAIL marijuana
25 Sec. 21. NEW SECTION. 124F.4 Definitions.
26For the purposes of this subchapter:
271. “Division” means the alcoholic beverages division of the
28department of commerce.
292. “Immature plant” means a nonflowering marijuana plant
30that is no taller than eight inches and no wider than eight
31inches, is produced from a cutting, clipping, or seedling, and
32is in a cultivating container.
333. “License” means a license or registration issued pursuant
34to this subchapter.
354. “Licensed premises” means the premises specified in an
-8-1application for a license under this subchapter, which are
2owned or in possession of the licensee and within which the
3licensee is authorized to cultivate, manufacture, distribute,
4sell, or test retail marijuana and retail marijuana products in
5accordance with this subchapter.
65. “Licensee” means a person licensed or registered pursuant
7to this subchapter.
86. “Local jurisdiction” means a county.
97. “Local licensing authority” means, for any local
10jurisdiction that has chosen to adopt a local licensing
11requirement in addition to the state licensing requirements
12of this subchapter, an authority designated by a municipal
13or county ordinance, or resolution, or the governing body of
14a municipality or county, or the board of commissioners of a
15county if no such authority is designated.
168. “Location” means a particular parcel of land that may be
17identified by an address or other descriptive means.
189. “Marijuana” means the same as defined in section 124.101.
1910. “Marijuana accessories” means any equipment, products,
20or materials of any kind which are used, intended for use, or
21designed for use in planting, cultivating, growing, harvesting,
22composting, manufacturing, compounding, converting, producing,
23processing, preparing, testing, analyzing, packaging,
24repackaging, storing, vaporizing, or containing marijuana, or
25for ingesting, inhaling, or otherwise introducing marijuana
26into the human body.
2711. “Person” means a natural person, partnership,
28association, company, corporation, limited liability company,
29or organization; except that “person” does not include any
30governmental organization.
3112. “Retail marijuana” means all parts of the plant of the
32genus Cannabis, whether growing or not, the seeds thereof; the
33resin extracted from any part of the plant; and every compound,
34manufacture, salt, derivative, mixture, or preparation of the
35plant, its seeds or resin, including marijuana concentrate.
-9-1“Retail marijuana” does not include industrial hemp, nor does
2it include fiber produced from the stalks, oil or cake made
3from the seeds of the plant, sterilized seeds of the plant
4which are incapable of germination, or the weight of any other
5ingredient combined with marijuana to prepare topical or oral
6administrations, food, drink, or other product.
713. “Retail marijuana cultivation facility” means an entity
8licensed to cultivate, prepare, package, and sell marijuana to
9retail marijuana stores, to marijuana product manufacturing
10facilities, and to other marijuana cultivation facilities, but
11not to consumers.
1214. “Retail marijuana establishment” means a retail
13marijuana store, a retail marijuana cultivation facility, or a
14retail marijuana products manufacturer.
1515. “Retail marijuana products” means concentrated marijuana
16products and marijuana products that are comprised of marijuana
17and other ingredients and are intended for use or consumption,
18such as but not limited to edible products, ointments, and
19tinctures.
2016. “Retail marijuana products manufacturer” means an entity
21licensed to purchase marijuana; manufacture, prepare, and
22package marijuana products; and sell marijuana and marijuana
23products to other marijuana product manufacturing facilities
24and to retail marijuana stores, but not to consumers.
2517. “Retail marijuana store” means an entity licensed
26to purchase marijuana from marijuana cultivation facilities
27and sell marijuana and to purchase marijuana products from
28retail marijuana product manufacturing facilities and to sell
29marijuana and marijuana products to consumers.
3018. “Retail marijuana transporter” means an entity or person
31licensed to transport retail marijuana and retail marijuana
32products from one retail marijuana establishment to another
33retail marijuana establishment and to temporarily store the
34transported retail marijuana and retail marijuana products at
35its licensed premises, but is not authorized to sell retail
-10-1marijuana or retail marijuana products under any circumstances.
2 Sec. 22. NEW SECTION. 124F.5 Applicability.
31. On or after July 1, 2024, an applicant may apply for
4licensure of a retail marijuana establishment pursuant to this
5subchapter.
62. a. Pursuant to subsection 1, an applicant shall complete
7forms as provided by the division and shall pay the application
8fee and the licensing fee. The division shall forward, within
9seven days of the date of the application, one-half of the
10application fee to the local jurisdiction unless the local
11jurisdiction has prohibited the operation of retail marijuana
12establishments. If the license is denied, the division shall
13refund the licensing fee to the applicant.
14b. The division shall act upon an application made pursuant
15to subsection 1 no sooner than forty-five days and no later
16than ninety days after the date of the application. The
17division shall process applications in the order in which
18completed applications are received by the division.
193. a. Any local jurisdiction may enact ordinances or
20regulations governing the time, place, manner, and number of
21retail marijuana establishments, which may include a local
22licensing requirement, or may prohibit the operation of retail
23marijuana establishments by ordinance or by a referred or
24initiated measure. If a county acts through an initiated
25measure, the proponents shall submit a petition signed by not
26less than fifteen percent of the registered electors in the
27county.
28b. If a county prohibits the operation of retail marijuana
29establishments, the county shall, upon receipt of a petition
30signed by fifteen percent of the registered voters in the
31county, submit to the voters of the county the question of
32whether the operation of retail marijuana establishments should
33be allowed in the county at the next general election.
34 Sec. 23. NEW SECTION. 124F.6 Retail marijuana licensure.
351. The division shall develop and maintain a seed-to-sale
-11-1tracking system that tracks retail marijuana from either
2seed or immature plant stage until the marijuana or retail
3marijuana product is sold to a customer at a retail marijuana
4establishment to ensure that no marijuana grown or processed
5by a retail marijuana establishment is sold or otherwise
6transferred except by a retail marijuana store.
72. The division shall adopt all rules necessary for the
8implementation of this chapter.
93. Nothing in this subchapter shall be construed to be
10a delegation to the division of the power to fix prices for
11retail marijuana.
124. Nothing in this subchapter shall be construed to limit
13a law enforcement agency’s ability to investigate unlawful
14activity in relation to a retail marijuana establishment. A
15law enforcement agency shall have the authority to conduct a
16criminal history record check of a licensee and an employee of
17a licensee during an investigation of unlawful activity related
18to retail marijuana and retail marijuana products.
195. The division shall create a statewide licensure class
20system for retail marijuana cultivation facilities. The
21classifications may be based upon square footage of the
22facility; lights, lumens, or wattage; canopy lighting; the
23number of cultivating plants; a combination of the foregoing;
24or other reasonable metrics. The division shall create a fee
25structure for the licensure class system.
26 Sec. 24. NEW SECTION. 124F.7 State and local participation
27in licensure.
281. When the division receives an application for an
29initial license or a renewal of an existing license for
30any retail marijuana establishment, the division shall
31provide, within seven days of receipt of an application,
32a copy of the application to the local jurisdiction in
33which the establishment is to be located unless the local
34jurisdiction has prohibited the operation of retail marijuana
35establishments. The local jurisdiction shall determine whether
-12-1the application complies with local restrictions relating
2to time, place, manner, and the number of retail marijuana
3establishments allowed. The local jurisdiction shall inform
4the division whether the application complies with local
5restrictions.
62. A local jurisdiction may impose a separate local
7licensing requirement as a part of its restrictions relating
8to time, place, manner, and the number of retail marijuana
9establishments allowed. A local jurisdiction may decline
10to impose any local licensing requirements, but a local
11jurisdiction shall notify the division that it either approves
12or denies each application received by the local jurisdiction.
133. If a local jurisdiction issues a local license for
14a retail marijuana establishment, a local jurisdiction may
15schedule a public hearing on the application. If the local
16jurisdiction schedules a hearing, it shall post and publish
17public notice of the hearing not less than ten days prior
18to the hearing. The local jurisdiction shall give public
19notice by posting a sign in a conspicuous place on the license
20applicant’s premises for which a local license application
21has been made and by publication in a newspaper of general
22circulation in the county in which the applicant’s premises are
23located.
244. If a local jurisdiction does not issue local licenses,
25the local jurisdiction may give public notice of the state
26license application by posting a sign in a conspicuous place
27on the state license applicant’s premises for which a state
28license application has been made and by publication in a
29newspaper of general circulation in the county in which the
30applicant’s premises are located.
315. Applications for a state license under this subchapter
32must be made to the division on forms prepared and furnished
33by the division and must set forth such information as the
34division may require to enable the division to determine
35whether a state license should be granted.
-13- 16. The division shall deny a state license if the premises
2on which the applicant proposes to conduct its business does
3not meet the requirements of this subchapter. The division
4may refuse or deny a license renewal, reinstatement, or
5initial license issuance for good cause. For purposes of this
6subsection, “good cause” means any of the following:
7a. The licensee or applicant has violated, does not meet,
8or has failed to comply with any of the terms, conditions, or
9provisions of this subchapter, any rules promulgated pursuant
10to this subchapter, or any supplemental local law, rules, or
11regulations.
12b. The licensee or applicant has failed to comply with any
13special terms or conditions of the license pursuant to an order
14of the division or local licensing authority.
15c. The licensed premises have been operated in a manner that
16adversely affects the public health or safety of the immediate
17neighborhood in which the retail marijuana establishment is
18located.
19d. The licensed premises are located within two thousand
20feet of real property comprising a school, child care facility,
21or public park.
227. If the division denies a state license pursuant to
23subsection 6, the applicant shall be entitled to a hearing
24pursuant to section 17A.12 and judicial review pursuant to
25section 17A.19. The division shall provide written notice of
26the grounds for denial of the state license to the applicant
27and to the local jurisdiction at least fifteen days prior to
28the hearing.
298. The division shall give primary preference to applicants
30for licensure who are currently licensed as a medical
31cannabidiol manufacturer or medical cannabidiol dispensary
32pursuant to chapter 124E. The division shall also prioritize
33applicants for licensure that are businesses that are
34majority-owned by persons who are women, citizens or permanent
35legal residents of Iowa, or disabled veterans.
-14- 19. The division shall issue licenses to businesses that
2are majority-owned by persons who are racial minorities in a
3proportion that meets or exceeds the percentage of persons in
4this state who are racial minorities according to the most
5recent federal decennial census.
6 Sec. 25. NEW SECTION. 124F.8 Establishment and owner
7requirements.
81. An owner who is a natural person must have been either
9of the following:
10a. A resident of Iowa for at least one year prior to the
11date of the application.
12b. A United States citizen prior to the date of the
13application.
142. A retail marijuana establishment may be composed of an
15unlimited number of owners that have been residents of Iowa for
16at least one year prior to the date of the application.
173. A retail marijuana establishment shall not interfere
18with the creation of or participation in a labor organization,
19as defined in section 216.2, by employees of the retail
20marijuana establishment.
214. The division shall review the retail marijuana
22establishment’s operating documents to ensure compliance with
23this section.
24 Sec. 26. NEW SECTION. 124F.9 Retail marijuana establishment
25licensure.
261. Local jurisdictions may adopt and enforce regulations
27for retail marijuana establishments that are at least as
28restrictive as the provisions of this subchapter and any rule
29promulgated pursuant to this subchapter.
302. A retail marijuana establishment shall not operate
31until the retail marijuana establishment is licensed by the
32division pursuant to this subchapter and approved by the
33relevant local jurisdiction. If an application is denied by
34the local licensing authority, the division shall revoke the
35state license. In connection with a license, the applicant
-15-1shall provide a complete and accurate application as required
2by the division.
33. A retail marijuana establishment shall notify the
4division in writing of the name, address, and date of birth of
5a new owner, officer, or manager before the new owner, officer,
6or manager begins managing, owning, working, or otherwise
7associating with the establishment. The owner, officer,
8manager, or employee shall pass a fingerprint-based criminal
9history record check as required by the division and shall
10obtain the required identification prior to managing, owning,
11working, or otherwise associating with the establishment.
12The division shall not deny licensure to a retail marijuana
13establishment on the basis that an owner, officer, manager,
14or employee has been convicted of a crime other than a
15violent crime, as defined in section 915.10, if the person has
16completed any term of probation or parole imposed by the court.
174. Before granting a state license, the division may
18consider, except when this subchapter specifically provides
19otherwise, the requirements of this subchapter and any
20rules promulgated pursuant to this subchapter, and all other
21reasonable restrictions that are or may be placed upon a
22licensee by the division or local licensing authority.
235. a. Each license issued under this subchapter is separate
24and distinct. It is unlawful for a person to exercise any
25of the privileges granted under a license other than the
26license that the person holds or for a licensee to allow any
27other person to exercise the privileges granted under the
28licensee’s license. A separate license shall be required for
29each specific business or business entity and each geographical
30location.
31b. At all times, a licensee shall possess and maintain
32possession of the premises for which the license is issued
33through ownership, lease, rental, or other arrangement for
34possession of the premises.
356. Each licensee shall manage the licensed premises
-16-1personally or employ a separate and distinct manager on
2the premises and shall report the name of the manager to
3the division and local licensing authority. The licensee
4shall report any change in manager to the division and local
5licensing authority within seven days after the change.
6 Sec. 27. NEW SECTION. 124F.10 License renewal.
71. Ninety days prior to the expiration date of an existing
8license, the division shall notify a licensee of the expiration
9date by first class mail at the licensee’s address of record
10with the division. A licensee may apply for the renewal of
11an existing license to the division not less than thirty days
12prior to the date of expiration of the existing license. Upon
13receipt of an application for renewal of an existing license
14and any applicable fees, the division shall submit, within
15seven days of the application, a copy of the application to
16the local jurisdiction to determine whether the application
17complies with all local restrictions on renewal of licenses.
18The division shall not accept an application for renewal of a
19license after the date of expiration, except as provided in
20subsection 3. The division may extend the expiration date of
21the license and accept a late application for renewal of a
22license if the applicant has filed a timely renewal application
23with the local licensing authority. The division or the local
24licensing authority, in its discretion, and subject to the
25requirements of this subsection and subsection 3 and based upon
26reasonable grounds, may waive the thirty-day time requirements
27set forth in this subsection.
282. The division may request additional fingerprints from a
29licensee when there is a demonstrated investigative need.
303. a. Notwithstanding the provisions of subsection 1,
31a licensee whose license has been expired for not more than
32ninety days may file a late renewal application upon the
33payment of a nonrefundable late application fee of five hundred
34dollars to the division. A licensee who files a late renewal
35application and pays the requisite fees may continue to operate
-17-1until the division takes final action to approve or deny
2the licensee’s late renewal application unless the division
3summarily suspends the license pursuant to chapter 17A, this
4subchapter, and rules adopted pursuant to this subchapter.
5b. The division may administratively continue a license
6and accept a later application for renewal of a license at the
7discretion of the division.
8 Sec. 28. NEW SECTION. 124F.11 Classes of licenses.
9For the purpose of regulating the cultivation, manufacture,
10distribution, sale, and testing of retail marijuana and retail
11marijuana products, the division in its discretion, upon
12receipt of an application in the prescribed form, may issue and
13grant to the applicant a license or registration in any of the
14following classes, subject to the provisions and restrictions
15provided by this subchapter:
161. Retail marijuana store license.
172. Retail marijuana cultivation facility license.
183. Retail marijuana products manufacturing license.
194. Occupational licenses and registrations for owners,
20managers, operators, employees, contractors, and other support
21staff employed by, working in, or having access to restricted
22areas of the licensed premises, as determined by the division.
23The division may take any action with respect to a registration
24pursuant to this subchapter as it may with respect to a license
25pursuant to this subchapter, in accordance with the procedures
26established pursuant to this subchapter.
275. Retail marijuana transporter license.
28 Sec. 29. NEW SECTION. 124F.12 Retail marijuana store
29license.
301. a. A retail marijuana store license shall be issued
31by the division only to a person selling retail marijuana or
32retail marijuana products pursuant to the terms and conditions
33of this subchapter.
34b. A retail marijuana store shall not accept any retail
35marijuana purchased from a retail marijuana cultivation
-18-1facility unless the retail marijuana store is provided with
2evidence that any applicable excise tax due was paid.
32. Notwithstanding the provisions of this section, a
4retail marijuana store licensee may also sell retail marijuana
5products that are prepackaged and labeled as required by rules
6of the division pursuant to section 124F.21.
73. a. A retail marijuana store shall not sell more than one
8ounce of retail marijuana or its equivalent in retail marijuana
9products, including retail marijuana concentrate, except for
10nonedible, nonpsychoactive retail marijuana products, including
11ointments, lotions, balms, and other nontransdermal topical
12products to a person.
13b. (1) Prior to initiating a sale, an employee of the
14retail marijuana store making the sale shall verify that
15the purchaser has a valid identification card showing the
16purchaser is twenty-one years of age or older. If a person
17under twenty-one years of age presents fraudulent proof of age,
18any action relying on the fraudulent proof of age shall not be
19grounds for the revocation or suspension of any license issued
20under this subchapter.
21(2) (a) If a retail marijuana store licensee or
22employee has reasonable cause to believe that a person is
23under twenty-one years of age and is exhibiting fraudulent
24proof of age in an attempt to obtain any retail marijuana
25or cannabis-infused product, the licensee or employee is
26authorized to confiscate such fraudulent proof of age, if
27possible, and shall, within seventy-two hours after the
28confiscation, remit such fraudulent proof of age to a state
29or local law enforcement agency. The failure to confiscate
30such fraudulent proof of age or to remit such fraudulent proof
31of age to a state or local law enforcement agency within
32seventy-two hours after the confiscation shall not constitute a
33criminal offense.
34(b) If a retail marijuana store licensee or employee
35believes that a person is under twenty-one years of age and
-19-1presents fraudulent proof of age in an attempt to obtain any
2retail marijuana or retail cannabis-infused product, the
3licensee or employee or any peace officer or police officer,
4acting in good faith and upon probable cause based upon
5reasonable grounds therefor, may detain and question such
6person in a reasonable manner for the purpose of ascertaining
7whether the person is guilty of any unlawful act regarding the
8purchase of retail marijuana. The questioning of a person by a
9licensee, employee, peace officer, or police officer does not
10render the licensee, employee, peace officer, or police officer
11civilly or criminally liable for slander, false arrest, false
12imprisonment, malicious prosecution, or unlawful detention.
134. All retail marijuana and retail marijuana products
14sold at a licensed retail marijuana store shall be packaged
15and labeled as required by rules of the division pursuant to
16section 124F.21.
175. a. A licensed retail marijuana store shall only
18sell retail marijuana, retail marijuana products, marijuana
19accessories, nonconsumable products such as apparel, and
20marijuana-related products such as childproof packaging
21containers, but shall be prohibited from selling or giving
22away any consumable product, including but not limited to
23cigarettes, alcohol, or an edible product that does not contain
24marijuana, including but not limited to sodas, candies, or
25baked goods.
26b. A licensed retail marijuana store shall not sell any
27retail marijuana or retail marijuana products that contain
28nicotine or alcohol, if the sale of the alcohol would require a
29license pursuant to chapter 123.
30c. A licensed retail marijuana store shall not sell retail
31marijuana or retail marijuana products over the internet nor
32deliver retail marijuana or retail marijuana products to a
33person who is not physically present in the retail marijuana
34store’s licensed premises.
356. Retail marijuana or retail marijuana products shall not
-20-1be consumed on the premises of a retail marijuana store.
27. Notwithstanding any other provision of state law, sales
3of retail marijuana and retail marijuana products are not
4exempt from state or local sales tax.
58. The division shall not issue more than one retail
6marijuana store license per county, except that the division
7may, upon receipt of a petition, issue one additional retail
8marijuana store license per one hundred thousand population
9in the county according to the most recent federal decennial
10census.
119. A retail marijuana store may also be licensed as a
12medical cannabis dispensary pursuant to chapter 124E. The
13division shall, in consultation with the department of public
14health, adopt rules for the implementation of this subsection.
15 Sec. 30. NEW SECTION. 124F.13 Retail marijuana cultivation
16facility license.
171. A retail marijuana cultivation facility license shall
18be issued by the division only to a person who cultivates
19retail marijuana for sale and distribution to licensed retail
20marijuana stores, retail marijuana products manufacturing
21licensees, or other retail marijuana cultivation facilities.
222. A retail marijuana cultivation facility shall remit any
23applicable excise tax due.
243. A retail marijuana cultivation facility shall track
25the marijuana it cultivates from seed or immature plant to
26wholesale purchase of the retail marijuana. Prior to delivery
27of any retail marijuana that is sold, the retail marijuana
28cultivation facility shall provide evidence that the facility
29paid any applicable excise tax on the retail marijuana due.
304. A retail marijuana cultivation facility may provide,
31except as required by section 124F.21, a sample of its products
32to the state hygienic laboratory for testing and research
33purposes. A retail marijuana cultivation facility shall
34maintain a record of the sample provided to the state hygienic
35laboratory and the testing results.
-21- 15. Retail marijuana or retail marijuana products shall not
2be consumed on the premises of a retail marijuana cultivation
3facility.
4 Sec. 31. NEW SECTION. 124F.14 Retail marijuana products
5manufacturing license.
61. a. A retail marijuana products manufacturing license
7shall be issued by the division to a person who manufactures
8retail marijuana products pursuant to the terms and conditions
9of this subchapter.
10b. A retail marijuana products manufacturer may cultivate
11its own retail marijuana if the manufacturer obtains a retail
12marijuana cultivation facility license, or it may purchase
13retail marijuana from a licensed retail marijuana cultivation
14facility. A retail marijuana products manufacturer shall track
15all of its retail marijuana from the point the retail marijuana
16is either transferred from its retail marijuana cultivation
17facility or from the point when the retail marijuana is
18delivered to the retail marijuana products manufacturer from a
19licensed retail marijuana cultivation facility to the point of
20transfer to a licensed retail marijuana store.
21c. A retail marijuana products manufacturer shall not
22accept any retail marijuana purchased from a retail marijuana
23cultivation facility unless the retail marijuana products
24manufacturer is provided with evidence that any applicable
25excise tax due was paid.
262. All retail marijuana products shall be prepared on
27a licensed premises used exclusively for the manufacture
28and preparation of retail marijuana or retail marijuana
29products and using equipment that is used exclusively for the
30manufacture and preparation of retail marijuana products;
31except that, if permitted by the local jurisdiction, a
32retail marijuana products manufacturing licensee may share
33the same premises as a medical cannabidiol-infused products
34manufacturing licensee so long as a virtual or physical
35separation of inventory is maintained pursuant to rules
-22-1promulgated by the division.
23. All licensed premises on which retail marijuana products
3are manufactured shall meet the sanitary standards for retail
4marijuana product preparation promulgated pursuant to section
5124F.21.
64. Retail marijuana or retail marijuana products shall not
7be consumed on the premises of a retail marijuana products
8manufacturing facility.
95. A retail marijuana products manufacturer may provide,
10except as required by section 124F.21, a sample of its products
11to the state hygienic laboratory for testing and research
12purposes. A retail marijuana products manufacturer shall
13maintain a record of what was provided to the state hygienic
14laboratory and the results of the testing.
156. A licensed retail marijuana products manufacturer shall
16package and label each product manufactured as required by
17rules of the division pursuant to section 124F.21.
187. All retail marijuana products that require refrigeration
19to prevent spoilage must be stored and transported in a
20refrigerated environment.
21 Sec. 32. NEW SECTION. 124F.15 Retail marijuana use —
22protections.
231. No person shall be subject to arrest, prosecution, or
24penalty in any manner, or be denied any right or privilege,
25including but not limited to disciplinary action by a business,
26occupational, or professional licensing board, solely for
27conduct permitted under this subchapter.
282. a. Except as provided in this section, neither the state
29nor any of its political subdivisions shall impose any penalty
30or deny any benefit or entitlement for conduct permitted
31under this subchapter or for the presence of cannabinoids or
32cannabinoid metabolites in the urine, blood, saliva, breath,
33hair, or other tissue or fluid of a person who is twenty-one
34years of age or older.
35b. Except as provided in this section and section 321J.2C,
-23-1neither the state nor any of its political subdivisions
2shall deny a driver’s license, a professional license,
3housing assistance, social services, or other benefits based
4on marijuana use or for the presence of cannabinoids or
5cannabinoid metabolites in the urine, blood, saliva, breath,
6hair, or other tissue or fluid of a person who is twenty-one
7years of age or older.
83. No person shall be denied custody of or visitation with a
9minor for acting in accordance with this subchapter, unless the
10person’s behavior creates an unreasonable danger to the minor
11that can be clearly articulated and substantiated.
124. Except as provided in this section, neither the state
13nor any of its political subdivisions shall deny employment
14or a contract to a person for engaging in conduct permitted
15under this subchapter, for a prior conviction for a nonviolent
16marijuana offense that does not involve distribution to minors,
17or for testing positive for the presence of cannabinoids or
18cannabinoid metabolites in the urine, blood, saliva, breath,
19hair, or other tissue or fluid of the individual’s body.
205. For the purposes of medical care, including organ and
21tissue transplants, the use of marijuana does not constitute
22the use of an illicit substance or otherwise disqualify a
23person from needed medical care and may only be considered with
24respect to evidence-based clinical criteria.
256. Notwithstanding any other provision of law to the
26contrary, unless there is a specific finding that the
27individual’s use, cultivation, or possession of marijuana could
28create a danger to the individual or another person, it shall
29not be a violation of conditions of parole, probation, or
30pretrial release to do any of the following:
31a. Engage in conduct allowed by this subchapter.
32b. Test positive for marijuana, delta-9
33tetrahydrocannabinol, or any other cannabinoid or metabolite of
34marijuana, except as provided in section 321J.2C.
357. a. This section does not prevent a governmental employer
-24-1from disciplining an employee or contractor for ingesting
2marijuana in the workplace or for working while under the
3influence of marijuana.
4b. The protections provided by this section do not apply to
5the extent that they conflict with a governmental employer’s
6obligations under federal law or regulations or to the extent
7that they would disqualify the entity from a monetary or
8licensing-related benefit under federal law or regulations.
9c. This section does not authorize any person to engage in,
10and does not prevent the imposition of any civil, criminal,
11discipline, or other penalties, including discipline or
12termination by a governmental employer, any task while under
13the influence of marijuana, when doing so would constitute
14negligence or professional malpractice.
15 Sec. 33. NEW SECTION. 124F.16 Discipline.
16In addition to any other sanctions prescribed by this
17subchapter or rules adopted pursuant to this subchapter, the
18division has the power, on its own motion or upon complaint,
19after investigation and opportunity for a public hearing at
20which a licensee must be afforded an opportunity to be heard,
21to fine a licensee or to suspend or revoke a license issued by
22the division for a violation by the licensee or by any of the
23agents or employees of the licensee of the provisions of this
24subchapter, or any of the rules promulgated pursuant to this
25subchapter, or of any of the terms, conditions, or provisions
26of the license issued by the division. The division has the
27power to administer oaths and issue subpoenas to require the
28presence of persons and the production of papers, books, and
29records necessary to the determination of a hearing that the
30division is authorized to conduct. The division shall conduct
31a contested case pursuant to chapter 17A prior to imposing
32discipline, except in the case of an emergency adjudication.
33 Sec. 34. NEW SECTION. 124F.17 Disposition of seized
34materials.
351. This section shall apply in addition to any criminal,
-25-1civil, or administrative penalties and in addition to any
2other penalties prescribed by this subchapter or any rules
3promulgated pursuant to this subchapter.
42. A state or local agency shall not be required to
5cultivate or care for any retail marijuana or retail marijuana
6product belonging to or seized from a licensee. A state or
7local agency shall not be authorized to sell marijuana or
8retail marijuana.
93. If the division issues a final order imposing a
10disciplinary action against a licensee pursuant to section
11124F.16, then, in addition to any other remedies, the
12division’s final order may specify that some or all of the
13licensee’s marijuana or marijuana product is not retail
14marijuana or a retail marijuana product and is an illegal
15controlled substance. The final order may further specify that
16the licensee shall lose any interest in any of the marijuana or
17marijuana product even if the marijuana or marijuana product
18previously qualified as retail marijuana or a retail marijuana
19product.
204. On or before January 1, 2024, the division shall adopt
21rules governing the implementation of this section.
22 Sec. 35. NEW SECTION. 124F.18 Inspection procedures.
231. A licensee shall keep a complete set of all records
24necessary to show fully the business transactions of the
25licensee, all of which shall be accessible at all times during
26business hours for inspection and examination by the division
27or its authorized representatives. The division may require
28a licensee to furnish such information as necessary for the
29proper administration of this subchapter and may require an
30audit to be made of the books of account and records on such
31occasions as necessary by an auditor selected by the division
32who shall have access to all books and records of the licensee.
33All associated expenses shall be paid by the licensee.
342. Any licensed premises, including any places of storage
35where retail marijuana or retail marijuana products are stored,
-26-1cultivated, sold, dispensed, or tested shall be subject to
2inspection by the state or local jurisdictions and their
3investigators, during all business hours and during other times
4when employees are present, for the purpose of inspection
5or investigation. Access shall be required during business
6hours for examination of any inventory or books and records
7required to be kept by the licensees. If any part of the
8licensed premises consists of a locked area, upon demand to
9the licensee, such area shall be made available for inspection
10without delay, and, upon request by authorized representatives
11of the state or local jurisdiction, the licensee shall open the
12area for inspection.
133. A licensee shall retain all books and records necessary
14to show fully the business transactions of the licensee for
15a period of the current tax year and the three immediately
16preceding tax years.
17 Sec. 36. NEW SECTION. 124F.19 Marijuana excise tax.
181. An excise tax is imposed on consumers at the rate of ten
19percent of the sales price of each sale of retail marijuana and
20retail marijuana products.
212. The tax imposed by this section shall be paid by the
22consumer to the retail marijuana establishment. Each retail
23marijuana establishment shall collect from the consumer the
24full amount of the tax payable on each taxable sale.
253. On the fifteenth day of each month, each retail marijuana
26establishment that sells retail marijuana to a consumer shall
27pay the excise taxes due on the retail marijuana that the
28retail marijuana establishment sold in the previous calendar
29month to the division.
30 Sec. 37. NEW SECTION. 124F.20 Occupational licensing —
31protections.
321. A person holding a professional or occupational license
33shall not be subject to professional discipline for providing
34advice or services related to retail marijuana establishments
35or applications to operate retail marijuana establishments on
-27-1the basis that marijuana is illegal under federal law.
22. An applicant for a professional or occupational license
3shall not be denied a license based on previous employment
4related to retail marijuana establishments operating in
5accordance with state law.
6 Sec. 38. NEW SECTION. 124F.21 Rulemaking.
71. The division shall, within one year of the effective
8date of this Act, adopt rules for the implementation of
9this subchapter. The rules shall not prohibit the operation
10of retail marijuana establishments or require such a high
11investment of risk, money, time, or other resource or asset
12that the operation of a retail marijuana establishment is not
13worthy of being carried out in practice by a reasonably prudent
14businessperson. Such rules shall include all of the following:
15a. Procedures for the issuance, renewal, suspension, and
16revocation of a registration to operate a retail marijuana
17establishment, subject to chapter 17A.
18b. A schedule of reasonable application, registration,
19and renewal fees, provided application fees shall not exceed
20five thousand dollars, with this upper limit adjusted annually
21for inflation, unless the division determines a greater fee
22is necessary to carry out its responsibilities under this
23subchapter. Fees shall be collected by the division and used
24to administer this subchapter.
25c. Qualifications for registration that are directly and
26demonstrably related to the operation of a retail marijuana
27establishment and that may not disqualify applicants solely for
28marijuana offenses prior to the effective date of this Act.
29d. Security requirements.
30e. Requirements for the transportation and storage of retail
31marijuana and retail marijuana products by retail marijuana
32establishments.
33f. Requirements for the delivery of retail marijuana and
34retail marijuana products to consumers, including a prohibition
35on business names, logos, and other identifying language or
-28-1images on delivery vehicles and a prohibition on delivering
2retail marijuana and retail marijuana products to any address
3located on land owned by the federal government or any address
4on land or in a building leased by the federal government.
5g. Employment and training requirements, including
6requiring that each retail marijuana establishment create
7an identification badge for each employee or agent. These
8requirements shall not disqualify applicants solely for
9marijuana offenses prior to the effective date of this Act.
10h. Requirements designed to prevent the sale or diversion of
11retail marijuana and retail marijuana products to persons under
12the age of twenty-one.
13i. Requirements for retail marijuana and retail
14marijuana products sold or distributed by a retail marijuana
15establishment, including prohibiting any misleading labeling
16and requiring retail marijuana product labels to include all
17of the following:
18(1) The length of time it typically takes for the product
19to take effect.
20(2) A disclosure of ingredients and possible allergens.
21(3) A nutritional fact panel.
22(4) Requiring opaque, child resistant packaging, which must
23be designed or constructed to be significantly difficult for
24children under five years of age to open and not difficult for
25adults to use properly as defined by 16 C.F.R. §1700.20.
26(5) Requiring that edible retail marijuana products be
27clearly identifiable, when practicable, with a standard symbol
28indicating the retail marijuana product contains marijuana.
29j. Health and safety regulations and standards for the
30manufacture of retail marijuana products and both the indoor
31and outdoor cultivation of retail marijuana by retail marijuana
32establishments.
33k. Restrictions on advertising, marketing, and signage
34including but not limited to a prohibition on mass-market
35campaigns that have a high likelihood of reaching minors.
-29- 1l. Rules to create at least six tiers of retail marijuana
2cultivation facilities, based on the size of the facility or
3the number of plants cultivated, and whether the cultivation
4occurs outdoors, indoors, or in a greenhouse. Security
5regulations and licensing fees must vary based on the size of
6the cultivation facility.
7m. Restrictions or prohibitions on additives in retail
8marijuana and retail marijuana-infused products, including but
9not limited to those that are toxic or designed to make the
10product more addictive.
11n. Prohibitions on products that are designed to make the
12product more appealing to children, including prohibiting the
13use of any images designed or likely to appeal to minors,
14including cartoons, toys, animals, or children, and any other
15images, characters, or phrases that are popularly used to
16advertise to children.
17o. Restrictions on the use of pesticides that are injurious
18to human health.
19p. Rules governing visits to retail marijuana cultivation
20facilities and retail marijuana product manufacturing
21facilities, including requiring the retail marijuana
22establishment to log visitors.
23q. A definition of the amount of delta-9
24tetrahydrocannabinol that constitutes a single serving
25in a retail marijuana product.
26r. Standards for the safe manufacture of marijuana extracts
27and concentrates.
28s. Requirements that educational materials be disseminated
29to consumers who purchase retail marijuana-infused products.
30t. Requirements for random sample testing to ensure quality
31control, including by ensuring that retail marijuana and
32retail marijuana-infused products are accurately labeled for
33potency. Unless the division determines that remediation or
34treatment is sufficient to ensure product safety, the testing
35analysis must include testing for residual solvents, poisons,
-30-1or toxins; harmful chemicals; dangerous molds or mildew; filth;
2and harmful microbials such as E.coli or salmonella and
3pesticides.
4u. Standards for the operation of marijuana testing
5facilities, including requirements for equipment and
6qualifications for personnel.
7v. Civil penalties for the failure to comply with rules
8adopted pursuant to this subchapter. Civil penalties shall
9be collected by the division and used to administer this
10subchapter.
11w. Procedures for collecting taxes levied on retail
12marijuana establishments.
13x. Requirements for on-site consumption establishments,
14including for security, ventilation, odor control, and
15consumption by patrons. These rules may include a prohibition
16on smoking indoors.
17y. Requirements for the verification of licensure in
18transactions between licensees.
192. After consultation with researchers knowledgeable
20about the risks and benefits of marijuana and providing an
21opportunity for public comment, the division shall develop a
22scientifically accurate safety information label or handout
23or both, which shall be available to each adult-use marijuana
24consumer. The label or handout shall include all of the
25following:
26a. Advice about the potential risks of marijuana, including
27all of the following:
28(1) The risks of driving under the influence of marijuana,
29and the fact that doing so is illegal.
30(2) Any adverse effects unique to younger adults, including
31related to the developing mind.
32(3) Potential adverse events and other risks.
33(4) The risks of using marijuana during pregnancy and
34breastfeeding.
35b. The need to safeguard all retail marijuana and retail
-31-1marijuana products from children and pets.
23. The division shall review and update the safety
3information materials at least once every two years to
4ensure they remain accurate. The review period shall include
5soliciting input from researchers knowledgeable about the
6risks and benefits of marijuana and an opportunity for public
7comment.
84. In order to ensure that individual privacy is protected,
9the division shall not require a consumer to provide a
10retail marijuana store with personal information other than
11government-issued identification to determine the consumer’s
12age, and a retail marijuana store shall not be required to
13acquire and record personal information about consumers.
14 Sec. 39. NEW SECTION. 124F.22 Marijuana use by minors —
15prohibited.
16Nothing in this subchapter allows the transfer of marijuana,
17with or without remuneration, to a person under the age of
18twenty-one years, or the use of marijuana by a person under the
19age of twenty-one years.
20 Sec. 40. NEW SECTION. 124F.23 Private property and tenant
21rights.
221. Except as provided in this section, the provisions of
23this subchapter do not require any person, corporation, or any
24other entity that occupies, owns, or controls a property to
25allow the consumption, cultivation, display, sale, or transfer
26of marijuana on or in that property.
272. a. Except as provided in this section, a landlord
28or property manager shall not refuse to rent to a tenant
29or otherwise discriminate against a tenant based on a past
30conviction for a marijuana offense that would have been legal
31under this chapter.
32b. Except as provided in this section, in the case of
33the rental of a residential dwelling, a landlord or property
34manager shall not prohibit the possession of retail marijuana
35or medical cannabis, as defined in section 124E.2, or the
-32-1consumption of retail marijuana or medical cannabis, as defined
2in section 124E.2, by nonsmoking means.
3c. The limitations in this subsection do not apply in any
4of the following circumstances:
5(1) The tenant is a roomer who is not leasing the entire
6residential dwelling.
7(2) The residence is incidental to detention or the
8provision of medical, geriatric, educational, counseling,
9religious, or similar services.
10(3) The residence is a transitional housing or sober living
11facility.
12(4) Failing to prohibit marijuana possession or consumption
13would violate federal law or regulations or cause a landlord
14or property manager to lose a monetary or licensing-related
15benefit under federal law or regulations.
16d. After a warning, a landlord or property manager may take
17action against a tenant if the tenant’s use of marijuana or
18medical cannabis, as defined in section 124E.2, creates an
19odor that interferes with a person’s peaceful enjoyment of the
20person’s home or property.
21 Sec. 41. NEW SECTION. 124F.24 Apportionment of revenue.
22Revenues generated by the marijuana excise tax shall be
23deposited as follows:
241. Thirty-five percent in the community reinvestment fund
25created pursuant to section 124F.25.
262. Thirty-two and one-half percent in the mental health
27services and substance use disorder prevention fund created
28pursuant to section 124F.26.
293. Thirty-two and one-half percent in the local public
30safety fund created pursuant to section 124F.27.
31 Sec. 42. NEW SECTION. 124F.25 Community reinvestment fund.
321. A community reinvestment fund is created under
33the control of the division. Moneys in the fund shall be
34appropriated by the general assembly as provided in subsection
352.
-33- 12. Moneys in the community reinvestment fund shall
2be appropriated exclusively for the purpose of funding
3scholarships for Iowa students for two years of postsecondary
4education at Iowa schools.
53. Notwithstanding section 12C.7, subsection 2, interest
6or earnings on moneys deposited in the community reinvestment
7fund shall be credited to the community reinvestment fund.
8Notwithstanding section 8.33, moneys credited to the community
9reinvestment fund shall not revert at the close of a fiscal
10year.
11 Sec. 43. NEW SECTION. 124F.26 Mental health services and
12substance use disorder prevention fund.
131. A mental health services and substance use disorder
14prevention fund is created under the control of the division.
15Moneys in the fund shall be appropriated by the general
16assembly as provided in subsection 2.
172. Moneys in the mental health services and substance use
18disorder prevention fund shall be appropriated exclusively for
19the purposes of providing mental health services and preventing
20substance use disorders.
213. Notwithstanding section 12C.7, subsection 2, interest or
22earnings on moneys deposited in the mental health services and
23substance use disorder prevention fund shall be credited to the
24mental health services and substance use disorder prevention
25fund. Notwithstanding section 8.33, moneys credited to the
26mental health services and substance use disorder prevention
27fund shall not revert at the close of a fiscal year.
28 Sec. 44. NEW SECTION. 124F.27 Local public safety fund.
291. A local public safety fund is created under the control
30of the division. Moneys in the fund shall be appropriated by
31the general assembly as provided in subsection 2.
322. Moneys in the local public safety fund shall be
33appropriated exclusively for the purposes of supporting local
34law enforcement personnel, fire department personnel, and
35emergency medical personnel in municipalities.
-34- 13. Notwithstanding section 12C.7, subsection 2, interest
2or earnings on moneys deposited in the local public safety
3fund shall be credited to the local public safety fund.
4Notwithstanding section 8.33, moneys credited to the local
5public safety fund shall not revert at the close of a fiscal
6year.
7 Sec. 45. NEW SECTION. 332.1 Definitions.
81. “Department” means the department of revenue.
92. “Director” means the director of the department of
10revenue.
113. “Retail marijuana” means the same as defined in section
12124F.4.
134. “Retail marijuana store” means the same as defined in
14section 124F.4.
155. “Retail sale” means the same as defined in section 423.1.
166. “Surcharge” means a retail marijuana surcharge imposed
17pursuant to this chapter.
18 Sec. 46. NEW SECTION. 332.2 Retail marijuana surcharge.
191. A surcharge may be imposed, in accordance with the
20provisions of this section, by ordinance of the board of
21supervisors of a county that has not prohibited the sale of
22retail marijuana. The surcharge shall be imposed at a rate of
23one percent upon the retail sales price of retail marijuana.
242. The surcharge shall be in addition to the state sales tax
25imposed pursuant to chapter 423, subchapter II, and the local
26sales and services tax imposed pursuant to chapter 423B.
273. a. Within ten days of the passage of an ordinance
28imposing a surcharge, the county auditor shall give written
29notice to the director by sending a copy of the ordinance to
30the director.
31b. A surcharge shall be imposed either January 1 or July 1
32following the notification of the director but not sooner than
33ninety days following the passage of the ordinance imposing the
34surcharge and not sooner than sixty days following notice to
35sellers, as defined in section 423.1.
-35- 1c. A surcharge shall be repealed only on June 30 or December
231 but not sooner than ninety days following repeal of the
3ordinance. At least forty days before the repeal of the
4surcharge, the board of supervisors shall provide notice of the
5action by certified mail to the director of revenue.
64. Upon the remittance of the revenues from the state
7surcharge revenue fund to each county that has imposed a retail
8marijuana surcharge under section 332.4, the revenues shall be
9deposited into the general fund of the county.
10 Sec. 47. NEW SECTION. 332.3 Administration of surcharge.
111. The director shall administer the surcharge imposed
12pursuant to this chapter as nearly as possible in conjunction
13with the administration of state sales tax laws. The director
14shall provide appropriate forms, or provide space on the
15regular state tax forms, for reporting surcharge liability.
162. a. Section 422.25, subsection 4, sections 422.30,
17422.67, and 422.68, section 422.69, subsection 1, sections
18422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14,
19subsection 1, and sections 423.23, 423.24, 423.25, 423.31,
20423.33, 423.35, 423.37 through 423.42, and 423.47, consistent
21with the provisions of this chapter, apply with respect to
22the surcharge authorized under this chapter, in the same
23manner and with the same effect as retail sales taxes within
24the meaning of those statutes. The director may require all
25persons who are engaged in the business of deriving any sales
26price subject to a surcharge under this chapter to register
27with the department. All surcharges collected under this
28chapter are deemed to be held in trust for the state of Iowa and
29the counties imposing the surcharges. County officials shall
30confer with the director of revenue for assistance in drafting
31the ordinance imposing the surcharge. A certified copy of the
32ordinance shall be filed with the director as soon as possible
33after passage.
34b. Frequency of deposits and quarterly reports of the
35surcharge with the department of revenue are governed by the
-36-1provisions in section 423.31. Local surcharge collections
2shall not be included in computation of the total tax to
3determine frequency of filing under section 423.31.
43. a. The director, in consultation with county officials,
5shall collect and account for the surcharge. The director
6shall certify each quarter the amount of the surcharge receipts
7and any interest and penalties to be credited to the county
8account in the state surcharge revenue fund established in
9section 386.3C. County authorities shall not require any
10permit not required by the director of revenue.
11b. All surcharge revenues and interest and penalties
12received or refunded one hundred eighty days or more after
13the date on which the county repeals the surcharge shall be
14deposited in or withdrawn from the general fund of the state.
154. Each county that has imposed a retail marijuana surcharge
16under this chapter shall assist the department in identifying
17new establishments required to impose the surcharge in the
18county. This process shall be ongoing until the surcharge is
19repealed.
20 Sec. 48. NEW SECTION. 332.4 State surcharge revenue fund
21— county accounts.
221. A state surcharge revenue fund is established in the
23state treasury under the control of the department consisting
24of the surcharge revenues collected within each county and
25deposited in the fund pursuant to section 332.3. Revenues
26deposited in the fund are appropriated to the department for
27the purposes of this section.
282. A county account is created within the fund for each
29county imposing a retail marijuana surcharge under this
30chapter.
313. The department shall deposit the revenues described in
32subsection 1 that were collected in a quarter beginning on or
33after the imposition of the surcharge into the appropriate
34county account in the fund.
354. All revenues in each county account within the fund
-37-1shall be remitted quarterly by the department to the county
2that imposed the retail marijuana surcharge for deposit in the
3general fund of the county.
45. The department shall adopt rules pursuant to chapter 17A
5necessary to administer the department’s responsibilities under
6this chapter.
7 Sec. 49. NEW SECTION. 453B.19 Retail marijuana.
8This chapter shall not apply to retail marijuana or retail
9marijuana products produced or sold pursuant to chapter 124F.
10DIVISION III
11medical cannabis
12 Sec. 50. Section 124E.1, Code 2023, is amended to read as
13follows:
14124E.1 Short title.
15This chapter shall be known and may be cited as the “Medical
16Cannabidiol Cannabis Act”.
17 Sec. 51. Section 124E.2, subsection 2, Code 2023, is amended
18by adding the following new paragraph:
19 NEW PARAGRAPH. l. Any other medical condition for which
20the patient’s health care practitioner determines the use of
21medical cannabis could be medically beneficial.
22 Sec. 52. Section 124E.2, subsection 7, Code 2023, is amended
23to read as follows:
247. “Health care practitioner” means an individual licensed
25under chapter 148 to practice medicine and surgery or
26osteopathic medicine and surgery, a physician assistant
27licensed under chapter 148C, an advanced registered nurse
28practitioner licensed under chapter 152, or an advanced
29practice registered nurse under chapter 152E, who is a
30patient’s primary care provider, or a podiatrist licensed
31pursuant to chapter 149, or a pharmacist licensed pursuant
32to chapter 155A who has completed medical cannabis training
33requirements imposed by the board of pharmacy.
34 Sec. 53. Section 124E.3, subsection 1, paragraph a, Code
352023, is amended to read as follows:
-38- 1a. (1) Determine, in the health care practitioner’s medical
2judgment, whether the patient whom the health care practitioner
3has examined and treated suffers from a debilitating medical
4condition that qualifies for the use of medical cannabidiol
5 cannabis under this chapter, and if so determined, provide the
6patient with a written certification of that diagnosis.
7(2) If a health care practitioner determines that the
8patient whom the health care practitioner has examined and
9treated suffers from a debilitating medical condition pursuant
10to section 124E.2, subsection 2, paragraph “l”, that qualifies
11for the use of medical cannabis under this chapter, the health
12care practitioner’s written certification shall be based on
13reasonable medical evidence, and shall be made in good faith,
14in the best interest of the patient, without fraudulent intent,
15and with the same reasonable medical judgment and prudence
16exercised according to generally accepted medical practice.
17 Sec. 54. Section 124E.4, subsection 1, paragraph e, Code
182023, is amended to read as follows:
19e. Submits a medical cannabidiol cannabis registration
20card fee of one hundred ten dollars to the department. If
21the patient attests to receiving social security disability
22benefits, supplemental security insurance payments, or being
23enrolled in the medical assistance program, the fee shall be
24twenty-five dollars submits documentation that the patient is a
25veteran as defined in section 35.1, the department shall waive
26the fee.
27 Sec. 55. Section 124E.4, subsection 3, paragraph c, Code
282023, is amended to read as follows:
29c. Submits a medical cannabidiol cannabis registration card
30fee of twenty-five ten dollars to the department.
31 Sec. 56. Section 124E.5, subsection 1, paragraphs a and b,
32Code 2023, are amended to read as follows:
33a. A medical cannabidiol cannabis board is created
34consisting of eight ten practitioners representing the fields
35of neurology, pain management, gastroenterology, oncology,
-39-1psychiatry, pediatrics, family medicine, physician assistance,
2advanced practice registered nursing, and pharmacy, and one
3representative from law enforcement.
4b. The practitioners shall be licensed in this state and
5nationally board-certified in their area of specialty and
6knowledgeable about the use of medical cannabidiol cannabis.
7 Sec. 57. Section 124E.6, subsection 1, Code 2023, is amended
8to read as follows:
91. a. The department shall issue a request for proposals
10to select and license by December 1, 2017, up to two medical
11cannabidiol cannabis manufacturers to manufacture and to
12possess, cultivate, harvest, transport, package, process,
13or supply medical cannabidiol cannabis within this state
14consistent with the provisions of this chapter. The department
15shall license new medical cannabidiol cannabis manufacturers
16or relicense the existing medical cannabidiol cannabis
17 manufacturers by December 1 of each year.
18b. Information submitted during the application process
19shall be confidential until a medical cannabidiol cannabis
20 manufacturer is licensed by the department unless otherwise
21protected from disclosure under state or federal law.
22 Sec. 58. Section 124E.6, subsection 3, Code 2023, is amended
23by adding the following new paragraph:
24 NEW PARAGRAPH. g. The demand for medical cannabis in the
25state based on an evidence-based analysis performed by the
26department.
27 Sec. 59. Section 124E.7, subsection 12, paragraph c, Code
282023, is amended to read as follows:
29c. A medical cannabidiol cannabis manufacturer shall not
30 may manufacture edible medical cannabidiol cannabis products.
31However, an edible medical cannabis product shall not appear
32in a form or be sold in packaging that would be likely to
33appeal to children. The department shall adopt rules for the
34implementation of this paragraph.
35 Sec. 60. Section 124E.8, subsection 1, Code 2023, is amended
-40-1to read as follows:
21. a. The department shall issue a request for proposals
3to select and license by April 1, 2018, up to five medical
4cannabidiol dispensaries to dispense medical cannabidiol within
5this state consistent with the provisions of this chapter.
6 The department shall license new medical cannabidiol cannabis
7 dispensaries or relicense the existing medical cannabidiol
8 cannabis dispensaries by December 1 of each year.
9b. Information submitted during the application process
10shall be confidential until a medical cannabidiol cannabis
11 dispensary is licensed by the department unless otherwise
12protected from disclosure under state or federal law.
13 Sec. 61. Section 124E.8, subsection 3, Code 2023, is amended
14by adding the following new paragraph:
15 NEW PARAGRAPH. f. The demand for medical cannabis in the
16state based on an evidence-based analysis performed by the
17department.
18 Sec. 62. Section 124E.9, subsection 14, Code 2023, is
19amended to read as follows:
2014. A medical cannabidiol cannabis dispensary shall not
21dispense more than a combined total of four and one-half
22 seventeen grams of total tetrahydrocannabinol to a patient and
23the patient’s primary caregiver in a ninety-day period, except
24as provided in subsection 15.
25 Sec. 63. Section 124E.9, subsection 15, unnumbered
26paragraph 1, Code 2023, is amended to read as follows:
27A medical cannabidiol cannabis dispensary may dispense
28more than a combined total of four and one-half seventeen
29 grams of total tetrahydrocannabinol to a patient and the
30patient’s primary caregiver in a ninety-day period if any of
31the following apply:
32 Sec. 64. Section 124E.9, subsection 15, paragraph b, Code
332023, is amended to read as follows:
34b. The health care practitioner who certified the patient
35to receive a medical cannabidiol cannabis registration
-41-1card certifies that the patient has participated in the
2medical cannabidiol cannabis program and that the health
3care practitioner has determined that four and one-half
4 seventeen grams of total tetrahydrocannabinol in a ninety-day
5period is insufficient to treat the patient’s debilitating
6medical condition. A certification issued pursuant to this
7paragraph shall include a total tetrahydrocannabinol cap deemed
8appropriate by the patient’s health care practitioner.
9 Sec. 65. Section 124E.9, Code 2023, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 16. A medical cannabis dispensary shall
12share information regarding the dispensation of medical
13cannabis to a patient with the health care practitioner
14who certified the patient to receive a medical cannabis
15registration card upon request of the health care practitioner.
16 Sec. 66. Section 124E.11, subsection 2, paragraph h, Code
172023, is amended to read as follows:
18h. Establish and implement a real-time, statewide medical
19cannabidiol cannabis registry management sale tracking system
20that is available to medical cannabidiol cannabis dispensaries
21on a twenty-four-hour-a-day, seven-day-a-week basis for the
22purpose of verifying that a person is lawfully in possession
23of a medical cannabidiol cannabis registration card issued
24pursuant to this chapter and for tracking the date of the sale
25and quantity of medical cannabidiol cannabis purchased by a
26patient or a primary caregiver. The department may share
27information regarding medical cannabis purchased by a patient
28or a primary caregiver with the health care practitioner who
29certified the patient or primary caregiver to purchase medical
30cannabis.
31 Sec. 67. NEW SECTION. 124E.27 Health care practitioners —
32telemedicine.
331. A health care practitioner who uses telemedicine
34shall establish a valid practitioner-patient relationship
35with the person who receives telemedicine services. A
-42-1practitioner-patient relationship begins when all of the
2following conditions are met:
3a. A person with a health-related matter seeks assistance
4from the health care practitioner.
5b. The health care practitioner agrees to undertake
6diagnosis and treatment of the person.
7c. The person agrees to be treated by the health care
8practitioner, regardless of whether there has been an in-person
9encounter between the health care practitioner and the person.
102. A valid practitioner-patient relationship may be
11established by any of the following:
12a. An in-person medical interview and physical examination.
13b. Through consultation with another health care
14practitioner when the health care practitioner agrees to
15participate in or supervise the patient’s care.
16c. A telemedicine encounter, but only if the standard of
17care does not require an in-person encounter, and in accordance
18with evidence-based standards of practice and telemedicine
19practice guidelines that address the clinical and technological
20aspects of telemedicine.
21 Sec. 68. NEW SECTION. 155A.49 Medical cannabis —
22recommendation.
23The board shall adopt rules establishing the requirements a
24pharmacist must meet prior to recommending the use of medical
25cannabis by a patient pursuant to chapter 124E.
26 Sec. 69. MEDICAL CANNABIDIOL — FEDERAL EXEMPTION TASK
27FORCE. The department of health and human services shall
28convene a task force of legal experts to assist the department
29in executing the department’s responsibilities under 2020 Iowa
30Acts, chapter 1116, section 31.
31DIVISION IV
32MEDICAL CANNABIS — INCOME TAXES
33 Sec. 70. Section 422.7, Code 2023, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 44. Subtract, to the extent included, the
-43-1amount of business expense for a medical cannabis manufacturer
2or medical cannabis dispensary licensed pursuant to chapter
3124E without regard to section 280E of the Internal Revenue
4Code.
5 Sec. 71. Section 422.35, Code 2023, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 15. Subtract, to the extent included, the
8amount of business expense for a medical cannabis manufacturer
9or medical cannabis dispensary licensed pursuant to chapter
10124E without regard to section 280E of the Internal Revenue
11Code.
12DIVISION V
13MEDICAL CANNABIs — SALES AND USE TAX
14 Sec. 72. Section 423.3, Code 2023, is amended by adding the
15following new subsection:
16 NEW SUBSECTION. 110. The sales price of the sale of a
17medical cannabidiol product by a medical cannabis manufacturer
18or a medical cannabis dispensary pursuant to chapter 124E.
19DIVISION VI
20MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO MEDICAL CANNABIS —
21CONFORMING CODE CHANGES
22 Sec. 73. Section 124.401, subsection 5, paragraph c, Code
232023, is amended to read as follows:
24c. A person may knowingly or intentionally recommend,
25possess, use, dispense, deliver, transport, or administer
26cannabidiol medical cannabis if the recommendation, possession,
27use, dispensing, delivery, transporting, or administering is in
28accordance with the provisions of chapter 124E. For purposes
29of this paragraph, “cannabidiol” “medical cannabis” means the
30same as defined in section 124E.2.
31 Sec. 74. Section 124E.2, subsections 8, 9, 10, and 11, Code
322023, are amended to read as follows:
338. “Laboratory” means the state hygienic laboratory at
34the university of Iowa in Iowa City or any other independent
35medical cannabidiol cannabis testing facility accredited
-44-1to standard ISO/IEC 17025 by an international organization
2for standards-approved accrediting body, with a controlled
3substance registration certificate from the United States drug
4enforcement administration and a certificate of registration
5from the board of pharmacy. For the purposes of this chapter,
6an independent laboratory is a laboratory operated by an entity
7that has no equity ownership in a medical cannabidiol cannabis
8 manufacturer.
99. “Marijuana” means any derivative of marijuana including
10but not limited to medical cannabidiol cannabis.
1110. “Medical cannabidiol” “Medical cannabis” means any
12pharmaceutical grade cannabinoid found in the plant Cannabis
13sativa L. or Cannabis indica or any other preparation thereof
14that is delivered in a form recommended by the medical
15cannabidiol cannabis board, approved by the board of medicine,
16and adopted by the department pursuant to rule.
1711. “Primary caregiver” means a person who is a resident of
18this state or a bordering state as defined in section 331.910,
19including but not limited to a parent or legal guardian, at
20least eighteen years of age, who has been designated by a
21patient’s health care practitioner as a necessary caretaker
22taking responsibility for managing the well-being of the
23patient with respect to the use of medical cannabidiol cannabis
24 pursuant to the provisions of this chapter.
25 Sec. 75. Section 124E.3, subsection 1, unnumbered paragraph
261, Code 2023, is amended to read as follows:
27Prior to a patient’s submission of an application for a
28medical cannabidiol cannabis registration card pursuant to
29section 124E.4, a health care practitioner shall do all of the
30following:
31 Sec. 76. Section 124E.3, subsection 1, paragraph b, Code
322023, is amended to read as follows:
33b. Provide explanatory information as provided by the
34department to the patient about the therapeutic use of medical
35cannabidiol cannabis and the possible risks, benefits, and side
-45-1effects of the proposed treatment.
2 Sec. 77. Section 124E.4, subsection 1, unnumbered paragraph
31, Code 2023, is amended to read as follows:
4Subject to subsection 6, the department may issue a medical
5cannabidiol cannabis registration card to a patient who:
6 Sec. 78. Section 124E.4, subsection 2, unnumbered paragraph
71, Code 2023, is amended to read as follows:
8A medical cannabidiol cannabis registration card issued to
9a patient by the department pursuant to subsection 1 shall
10contain, at a minimum, all of the following:
11 Sec. 79. Section 124E.4, subsection 2, paragraph b, Code
122023, is amended to read as follows:
13b. The date of issuance and expiration date of the medical
14cannabidiol cannabis registration card.
15 Sec. 80. Section 124E.4, subsection 3, unnumbered paragraph
161, Code 2023, is amended to read as follows:
17For a patient in a primary caregiver’s care, subject to
18subsection 6, the department may issue a medical cannabidiol
19 cannabis registration card to the primary caregiver who:
20 Sec. 81. Section 124E.4, subsection 4, unnumbered paragraph
211, Code 2023, is amended to read as follows:
22A medical cannabidiol cannabis registration card issued by
23the department to a primary caregiver pursuant to subsection 3
24shall contain, at a minimum, all of the following:
25 Sec. 82. Section 124E.4, subsection 4, paragraph c, Code
262023, is amended to read as follows:
27c. The medical cannabidiol cannabis registration card
28number of each patient in the primary caregiver’s care. If
29the patient in the primary caregiver’s care is under the age
30of eighteen, the full name of the patient’s parent or legal
31guardian.
32 Sec. 83. Section 124E.4, subsections 5 and 6, Code 2023, are
33amended to read as follows:
345. Expiration date of card. A medical cannabidiol cannabis
35 registration card issued pursuant to this section shall expire
-46-1one year after the date of issuance and may be renewed.
26. Federally approved clinical trials. The department shall
3not approve the issuance of a medical cannabidiol cannabis
4 registration card pursuant to this section for a patient who
5is enrolled in a federally approved clinical trial for the
6treatment of a debilitating medical condition with medical
7cannabidiol cannabis.
8 Sec. 84. Section 124E.5, subsections 2, 3, 4, 5, and 6, Code
92023, are amended to read as follows:
102. The medical cannabidiol cannabis board shall convene at
11least twice per year.
123. The duties of the medical cannabidiol cannabis board
13shall include but not be limited to the following:
14a. Accepting and reviewing petitions to add medical
15conditions, medical treatments, or debilitating diseases to the
16list of debilitating medical conditions for which the medical
17use of cannabidiol cannabis would be medically beneficial under
18this chapter.
19b. Making recommendations relating to the removal or
20addition of debilitating medical conditions to the list
21of allowable debilitating medical conditions for which the
22medical use of cannabidiol cannabis under this chapter would
23be medically beneficial.
24c. Working with the department regarding the requirements
25for the licensure of medical cannabidiol cannabis manufacturers
26and medical cannabidiol dispensaries, including licensure
27procedures.
28d. Advising the department regarding the location of medical
29cannabidiol cannabis manufacturers and medical cannabidiol
30 cannabis dispensaries throughout the state.
31e. Making recommendations relating to the form and quantity
32of allowable medical uses of cannabidiol cannabis.
334. Recommendations made by the medical cannabidiol cannabis
34 board pursuant to subsection 3, paragraphs “b” and “e”, shall
35be made to the board of medicine for consideration, and if
-47-1approved, shall be adopted by the board of medicine by rule.
25. On or before January 1 of each year, beginning January
31, 2018, the medical cannabidiol cannabis board shall submit a
4report detailing the activities of the board.
56. The general assembly shall have the sole authority
6to revise the definition of medical cannabidiol cannabis for
7purposes of this chapter.
8 Sec. 85. Section 124E.6, subsections 2, 3, 4, and 5, Code
92023, are amended to read as follows:
102. As a condition for licensure, a medical cannabidiol
11 cannabis manufacturer must agree to begin supplying medical
12cannabidiol cannabis to medical cannabidiol cannabis
13 dispensaries in this state no later than December 1, 2018.
143. The department shall consider the following factors in
15determining whether to select and license a medical cannabidiol
16 cannabis manufacturer:
17a. The technical expertise of the medical cannabidiol
18 cannabis manufacturer regarding medical cannabidiol cannabis.
19b. The qualifications of the medical cannabidiol cannabis
20 manufacturer’s employees.
21c. The long-term financial stability of the medical
22cannabidiol cannabis manufacturer.
23d. The ability to provide appropriate security measures on
24the premises of the medical cannabidiol cannabis manufacturer.
25e. Whether the medical cannabidiol cannabis manufacturer
26has demonstrated an ability to meet certain medical cannabidiol
27 cannabis production needs for medical use regarding the range
28of recommended dosages for each debilitating medical condition,
29the range of chemical compositions of any plant of the genus
30cannabis that will likely be medically beneficial for each
31of the debilitating medical conditions, and the form of the
32medical cannabidiol cannabis in the manner determined by the
33department pursuant to rule.
34f. The medical cannabidiol cannabis manufacturer’s
35projection of and ongoing assessment of fees on patients with
-48-1debilitating medical conditions.
24. A medical cannabidiol cannabis manufacturer shall
3contract with a laboratory to perform spot-check testing of
4the medical cannabidiol cannabis produced by the medical
5cannabidiol cannabis manufacturer as provided in section
6124E.7. The department shall require that the laboratory
7report testing results to the medical cannabidiol cannabis
8 manufacturer and the department as determined by the department
9by rule. If a medical cannabidiol cannabis manufacturer
10contracts with a laboratory other than the state hygienic
11laboratory at the university of Iowa in Iowa City, the
12department shall approve the laboratory to perform testing
13pursuant to this chapter.
145. Each entity submitting an application for licensure
15as a medical cannabidiol cannabis manufacturer shall pay a
16nonrefundable application fee of seven thousand five hundred
17dollars to the department.
18 Sec. 86. Section 124E.7, subsections 1, 2, 3, 4, 5, 6, 7, 8,
199, 10, and 11, Code 2023, are amended to read as follows:
201. A medical cannabidiol cannabis manufacturer shall
21contract with a laboratory to perform spot-check testing of
22the medical cannabidiol cannabis produced by the medical
23cannabidiol cannabis manufacturer as to content, contamination,
24and consistency. The cost of all laboratory testing shall be
25paid by the medical cannabidiol cannabis manufacturer.
262. The operating documents of a medical cannabidiol
27 cannabis manufacturer shall include all of the following:
28a. Procedures for the oversight of the medical cannabidiol
29 cannabis manufacturer and procedures to ensure accurate
30recordkeeping.
31b. Procedures for the implementation of appropriate security
32measures to deter and prevent the theft of medical cannabidiol
33 cannabis and unauthorized entrance into areas containing
34medical cannabidiol cannabis.
353. A medical cannabidiol cannabis manufacturer shall
-49-1implement security requirements, including requirements for
2protection of each location by a fully operational security
3alarm system, facility access controls, perimeter intrusion
4detection systems, and a personnel identification system.
54. A medical cannabidiol cannabis manufacturer shall
6not share office space with, refer patients to, or have any
7financial relationship with a health care practitioner.
85. A medical cannabidiol cannabis manufacturer shall not
9permit any person to consume medical cannabidiol cannabis on
10the property of the medical cannabidiol cannabis manufacturer.
116. A medical cannabidiol cannabis manufacturer is subject
12to reasonable inspection by the department.
137. A medical cannabidiol cannabis manufacturer shall not
14employ a person who is under eighteen years of age or who has
15been convicted of a disqualifying felony offense. An employee
16of a medical cannabidiol cannabis manufacturer shall be subject
17to a background investigation conducted by the division of
18criminal investigation of the department of public safety and a
19national criminal history background check pursuant to section
20124E.19.
218. A medical cannabidiol cannabis manufacturer owner shall
22not have been convicted of a disqualifying felony offense and
23shall be subject to a background investigation conducted by
24the division of criminal investigation of the department of
25public safety and a national criminal history background check
26pursuant to section 124E.19.
279. A medical cannabidiol cannabis manufacturer shall not
28operate at the same physical location as a medical cannabidiol
29 cannabis dispensary.
3010. A medical cannabidiol cannabis manufacturer shall not
31operate in any location, whether for manufacturing, possessing,
32cultivating, harvesting, transporting, packaging, processing,
33or supplying, within one thousand feet of a public or private
34school existing before the date of the medical cannabidiol
35 cannabis manufacturer’s licensure by the department.
-50- 111. A medical cannabidiol cannabis manufacturer shall
2comply with reasonable restrictions set by the department
3relating to signage, marketing, display, and advertising of
4medical cannabidiol cannabis.
5 Sec. 87. Section 124E.7, subsection 12, paragraphs a and b,
6Code 2023, are amended to read as follows:
7a. A medical cannabidiol cannabis manufacturer shall provide
8a reliable and ongoing supply of medical cannabidiol cannabis
9 to medical cannabidiol cannabis dispensaries pursuant to this
10chapter.
11b. All manufacturing, cultivating, harvesting, packaging,
12and processing of medical cannabidiol cannabis shall take place
13in an enclosed, locked facility at a physical address provided
14to the department during the licensure process.
15 Sec. 88. Section 124E.8, subsections 2, 3, and 4, Code 2023,
16are amended to read as follows:
172. As a condition for licensure, a medical cannabidiol
18 cannabis dispensary must agree to begin supplying medical
19cannabidiol cannabis to patients by December 1, 2018.
203. The department shall consider the following factors in
21determining whether to select and license a medical cannabidiol
22 cannabis dispensary:
23a. The technical expertise of the medical cannabidiol
24 cannabis dispensary regarding medical cannabidiol cannabis.
25b. The qualifications of the medical cannabidiol cannabis
26 dispensary’s employees.
27c. The long-term financial stability of the medical
28cannabidiol cannabis dispensary.
29d. The ability to provide appropriate security measures on
30the premises of the medical cannabidiol cannabis dispensary.
31e. The medical cannabidiol cannabis dispensary’s projection
32and ongoing assessment of fees for the purchase of medical
33cannabidiol cannabis on patients with debilitating medical
34conditions.
354. Each entity submitting an application for licensure
-51-1as a medical cannabidiol cannabis dispensary shall pay a
2nonrefundable application fee of five thousand dollars to the
3department.
4 Sec. 89. Section 124E.9, subsections 1, 2, 3, 4, 5, 6, 7,
58, 9, 10, 11, 12, and 13, Code 2023, are amended to read as
6follows:
71. a. The medical cannabidiol cannabis dispensaries shall
8be located based on geographical need throughout the state to
9improve patient access.
10b. A medical cannabidiol cannabis dispensary may dispense
11medical cannabidiol cannabis pursuant to the provisions of this
12chapter but shall not dispense any medical cannabidiol cannabis
13 in a form or quantity other than the form or quantity allowed
14by the department pursuant to rule.
152. The operating documents of a medical cannabidiol
16 cannabis dispensary shall include all of the following:
17a. Procedures for the oversight of the medical cannabidiol
18 cannabis dispensary and procedures to ensure accurate
19recordkeeping.
20b. Procedures for the implementation of appropriate security
21measures to deter and prevent the theft of medical cannabidiol
22 cannabis and unauthorized entrance into areas containing
23medical cannabidiol cannabis.
243. A medical cannabidiol cannabis dispensary shall
25implement security requirements, including requirements for
26protection by a fully operational security alarm system,
27facility access controls, perimeter intrusion detection
28systems, and a personnel identification system.
294. A medical cannabidiol cannabis dispensary shall not
30share office space with, refer patients to, or have any
31financial relationship with a health care practitioner.
325. A medical cannabidiol cannabis dispensary shall not
33permit any person to consume medical cannabidiol cannabis on
34the property of the medical cannabidiol cannabis dispensary.
356. A medical cannabidiol cannabis dispensary is subject to
-52-1reasonable inspection by the department.
27. A medical cannabidiol cannabis dispensary shall not
3employ a person who is under eighteen years of age or who has
4been convicted of a disqualifying felony offense. An employee
5of a medical cannabidiol cannabis dispensary shall be subject
6to a background investigation conducted by the division of
7criminal investigation of the department of public safety and a
8national criminal history background check pursuant to section
9124E.19.
108. A medical cannabidiol cannabis dispensary owner shall
11not have been convicted of a disqualifying felony offense and
12shall be subject to a background investigation conducted by
13the division of criminal investigation of the department of
14public safety and a national criminal history background check
15pursuant to section 124E.19.
169. A medical cannabidiol cannabis dispensary shall not
17operate at the same physical location as a medical cannabidiol
18 cannabis manufacturer.
1910. A medical cannabidiol cannabis dispensary shall not
20operate in any location within one thousand feet of a public
21or private school existing before the date of the medical
22cannabidiol cannabis dispensary’s licensure by the department.
2311. A medical cannabidiol cannabis dispensary shall comply
24with reasonable restrictions set by the department relating
25to signage, marketing, display, and advertising of medical
26cannabidiol cannabis.
2712. Prior to dispensing of any medical cannabidiol
28 cannabis, a medical cannabidiol cannabis dispensary shall do
29all of the following:
30a. Verify that the medical cannabidiol cannabis dispensary
31has received a valid medical cannabidiol cannabis registration
32card from a patient or a patient’s primary caregiver, if
33applicable.
34b. Assign a tracking number to any medical cannabidiol
35 cannabis dispensed from the medical cannabidiol cannabis
-53-1 dispensary.
2c. Properly package medical cannabidiol cannabis in
3compliance with federal law regarding child resistant packaging
4and exemptions for packaging for elderly patients, and
5label medical cannabidiol cannabis with a list of all active
6ingredients and individually identifying information.
713. A medical cannabidiol cannabis dispensary shall employ
8a pharmacist or pharmacy technician licensed or registered
9pursuant to chapter 155A for the purpose of making dosing
10recommendations.
11 Sec. 90. Section 124E.9, subsection 15, paragraph a, Code
122023, is amended to read as follows:
13a. The health care practitioner who certified the patient
14to receive a medical cannabidiol cannabis registration card
15certifies that patient’s debilitating medical condition is a
16terminal illness with a life expectancy of less than one year.
17A certification issued pursuant to this paragraph shall include
18a total tetrahydrocannabinol cap deemed appropriate by the
19patient’s health care practitioner.
20 Sec. 91. Section 124E.10, Code 2023, is amended to read as
21follows:
22124E.10 Fees.
23All fees collected by the department under this chapter
24shall be retained by the department for operation of the
25medical cannabidiol cannabis registration card program and
26the medical cannabidiol cannabis manufacturer and medical
27cannabidiol cannabis dispensary licensing programs. The moneys
28retained by the department shall be considered repayment
29receipts as defined in section 8.2 and shall be used for any of
30the department’s duties under this chapter, including but not
31limited to the addition of full-time equivalent positions for
32program services and investigations. Notwithstanding section
338.33, moneys retained by the department pursuant to this
34section shall not revert to the general fund of the state but
35shall remain available for expenditure only for the purposes
-54-1specified in this section.
2 Sec. 92. Section 124E.11, subsection 1, paragraph a, Code
32023, is amended to read as follows:
4a. The department shall maintain a confidential file of the
5names of each patient to or for whom the department issues a
6medical cannabidiol cannabis registration card and the name of
7each primary caregiver to whom the department issues a medical
8cannabidiol cannabis registration card under section 124E.4.
9 Sec. 93. Section 124E.11, subsection 1, paragraph b,
10subparagraph (1), subparagraph divisions (b), (c), and (d),
11Code 2023, are amended to read as follows:
12(b) To authorized employees of law enforcement agencies
13of a state or political subdivision thereof, but only for the
14purpose of verifying that a person is lawfully in possession
15of a medical cannabidiol cannabis registration card issued
16pursuant to this chapter.
17(c) To authorized employees of a medical cannabidiol
18 cannabis dispensary, but only for the purposes of verifying
19that a person is lawfully in possession of a medical
20cannabidiol cannabis registration card issued pursuant
21to this chapter and that a person has not purchased total
22tetrahydrocannabinol in excess of the amount authorized by this
23chapter.
24(d) To any other authorized persons recognized by the
25department by rule, but only for the purpose of verifying that
26a person is lawfully in possession of a medical cannabidiol
27 cannabis registration card issued pursuant to this chapter.
28 Sec. 94. Section 124E.11, subsection 2, paragraphs a, b, c,
29d, e, f, g, and i, Code 2023, are amended to read as follows:
30a. Govern the manner in which the department shall consider
31applications for new and renewal medical cannabidiol cannabis
32 registration cards.
33b. Ensure that the medical cannabidiol cannabis registration
34card program operates on a self-sustaining basis.
35c. Establish the form and quantity of medical cannabidiol
-55-1 cannabis allowed to be dispensed to a patient or primary
2caregiver pursuant to this chapter as appropriate to serve the
3medical needs of patients with debilitating medical conditions,
4subject to recommendation by the medical cannabidiol cannabis
5 board and approval by the board of medicine.
6d. Establish requirements for the licensure of medical
7cannabidiol cannabis manufacturers and medical cannabidiol
8 cannabis dispensaries and set forth procedures for medical
9cannabidiol cannabis manufacturers and medical cannabidiol
10 cannabis dispensaries to obtain licenses.
11e. Develop a dispensing system for medical cannabidiol
12 cannabis within this state that provides for all of the
13following:
14(1) Medical cannabidiol cannabis dispensaries within this
15state housed on secured grounds and operated by licensed
16medical cannabidiol cannabis dispensaries.
17(2) The dispensing of medical cannabidiol cannabis to
18patients and their primary caregivers to occur at locations
19designated by the department.
20f. Establish and collect annual fees from medical
21cannabidiol cannabis manufacturers and medical cannabidiol
22 cannabis dispensaries to cover the costs associated with
23regulating and inspecting medical cannabidiol cannabis
24 manufacturers and medical cannabidiol cannabis dispensaries.
25g. Specify and implement procedures that address public
26safety including security procedures and product quality
27including measures to ensure contaminant-free cultivation of
28medical cannabidiol cannabis, safety, and labeling.
29i. Establish and implement a medical cannabidiol cannabis
30 inventory and delivery tracking system to track medical
31cannabidiol cannabis from production by a medical cannabidiol
32 cannabis manufacturer through dispensing at a medical
33cannabidiol cannabis dispensary.
34 Sec. 95. Section 124E.12, Code 2023, is amended to read as
35follows:
-56- 1124E.12 Use of medical cannabidiol cannabis — affirmative
2defenses.
31. A health care practitioner, including any authorized
4agent or employee thereof, shall not be subject to
5prosecution for the unlawful certification, possession, or
6administration of marijuana under the laws of this state for
7activities arising directly out of or directly related to the
8certification or use of medical cannabidiol cannabis in the
9treatment of a patient diagnosed with a debilitating medical
10condition as authorized by this chapter.
112. A medical cannabidiol cannabis manufacturer, including
12any authorized agent or employee thereof, shall not be subject
13to prosecution for manufacturing, possessing, cultivating,
14harvesting, transporting, packaging, processing, or supplying
15medical cannabidiol cannabis pursuant to this chapter.
163. A medical cannabidiol cannabis dispensary, including
17any authorized agent or employee thereof, shall not be subject
18to prosecution for dispensing medical cannabidiol cannabis
19 pursuant to this chapter.
204. a. In a prosecution for the unlawful possession of
21marijuana under the laws of this state for the possession
22of medical cannabidiol cannabis, including but not limited
23to chapters 124 and 453B, it is an affirmative and complete
24defense to the prosecution that the patient has been diagnosed
25with a debilitating medical condition, used or possessed
26medical cannabidiol cannabis pursuant to a certification by a
27health care practitioner as authorized under this chapter, and,
28for a patient eighteen years of age or older, is in possession
29of a valid medical cannabidiol cannabis registration card
30issued pursuant to this chapter.
31b. In a prosecution for the unlawful possession of marijuana
32under the laws of this state for the possession of medical
33cannabidiol cannabis, including but not limited to chapters
34124 and 453B, it is an affirmative and complete defense to
35the prosecution that the person possessed medical cannabidiol
-57-1 cannabis because the person is a primary caregiver of a patient
2who has been diagnosed with a debilitating medical condition
3and is in possession of a valid medical cannabidiol cannabis
4 registration card issued pursuant to this chapter, and where
5the primary caregiver’s possession of the medical cannabidiol
6 cannabis is on behalf of the patient and for the patient’s use
7only as authorized under this chapter.
8c. If a patient or primary caregiver is charged with
9the unlawful possession of marijuana under the laws of this
10state for the possession of medical cannabidiol cannabis,
11including but not limited to chapters 124 and 453B, and is not
12in possession of the person’s medical cannabidiol cannabis
13 registration card, any charge or charges filed against the
14person for the possession of medical cannabidiol cannabis
15 shall be dismissed by the court if the person produces to the
16court prior to or at the person’s trial a medical cannabidiol
17 cannabis registration card issued to that person and valid at
18the time the person was charged.
195. An agency of this state or a political subdivision
20thereof, including any law enforcement agency, shall not remove
21or initiate proceedings to remove a patient under the age
22of eighteen from the home of a parent based solely upon the
23parent’s or patient’s possession or use of medical cannabidiol
24 cannabis as authorized under this chapter.
256. The department and any health care practitioner,
26including any authorized agent or employee thereof, are not
27subject to any civil or disciplinary penalties by the board
28of medicine or any business, occupational, or professional
29licensing board or entity, solely for activities conducted
30relating to a patient’s possession or use of medical
31cannabidiol cannabis as authorized under this chapter. Nothing
32in this section affects a professional licensing board from
33taking action in response to violations of any other section
34of law.
357. Notwithstanding any law to the contrary, the department,
-58-1the governor, or any employee of any state agency shall not
2be held civilly or criminally liable for any injury, loss
3of property, personal injury, or death caused by any act or
4omission while acting within the scope of office or employment
5as authorized under this chapter.
68. An attorney shall not be subject to disciplinary action
7by the Iowa supreme court or attorney disciplinary board for
8providing legal assistance to a patient, primary caregiver, or
9others based upon a patient’s or primary caregiver’s possession
10or use of medical cannabidiol cannabis as authorized under this
11chapter.
129. Possession of a medical cannabidiol cannabis
13 registration card or an application for a medical cannabidiol
14 cannabis registration card by a person entitled to possess or
15apply for a medical cannabidiol cannabis registration card
16shall not constitute probable cause or reasonable suspicion,
17and shall not be used to support a search of the person or
18property of the person possessing or applying for the medical
19cannabidiol cannabis registration card, or otherwise subject
20the person or property of the person to inspection by any
21governmental agency.
22 Sec. 96. Section 124E.13, Code 2023, is amended to read as
23follows:
24124E.13 Medical cannabidiol cannabis source.
25Medical cannabidiol cannabis provided exclusively pursuant
26to a written certification of a health care practitioner, if
27not legally available in this state or from any other bordering
28state, shall be obtained from an out-of-state source.
29 Sec. 97. Section 124E.14, Code 2023, is amended to read as
30follows:
31124E.14 Out-of-state medical cannabidiol cannabis
32 dispensaries.
33The department of public health shall utilize a request for
34proposals process to select and license by December 1, 2017, up
35to two out-of-state medical cannabidiol cannabis dispensaries
-59-1from a bordering state to sell and dispense medical cannabidiol
2 cannabis to a patient or primary caregiver in possession of a
3valid medical cannabidiol cannabis registration card issued
4under this chapter.
5 Sec. 98. Section 124E.15, Code 2023, is amended to read as
6follows:
7124E.15 Iowa patients and primary caregivers registering in
8the state of Minnesota.
9A patient or a primary caregiver with a valid medical
10cannabidiol cannabis registration card issued pursuant to this
11chapter may register in the state of Minnesota as a visiting
12qualified patient or primary caregiver and may register with
13one or more medical cannabis manufacturers registered under the
14laws of Minnesota.
15 Sec. 99. Section 124E.16, Code 2023, is amended to read as
16follows:
17124E.16 Penalties.
181. A person who knowingly or intentionally possesses or uses
19medical cannabidiol cannabis in violation of the requirements
20of this chapter is subject to the penalties provided under
21chapters 124 and 453B.
222. A medical cannabidiol cannabis manufacturer or a medical
23cannabidiol cannabis dispensary shall be assessed a civil
24penalty of up to one thousand dollars per violation for any
25violation of this chapter in addition to any other applicable
26penalties.
27 Sec. 100. Section 124E.17, Code 2023, is amended to read as
28follows:
29124E.17 Use of medical cannabidiol cannabis — smoking
30prohibited.
31A patient shall not consume medical cannabidiol cannabis
32 possessed or used as authorized under this chapter by smoking
33medical cannabidiol cannabis.
34 Sec. 101. Section 124E.18, Code 2023, is amended to read as
35follows:
-60- 1124E.18 Reciprocity.
2A valid medical cannabidiol cannabis registration card,
3or its equivalent, issued under the laws of another state
4that allows an out-of-state patient to possess or use medical
5cannabidiol cannabis in the jurisdiction of issuance shall
6have the same force and effect as a valid medical cannabidiol
7 cannabis registration card issued pursuant to this chapter,
8except that an out-of-state patient in this state shall not
9obtain medical cannabidiol cannabis from a medical cannabidiol
10 cannabis dispensary in this state.
11 Sec. 102. Section 124E.19, subsections 1, 2, and 4, Code
122023, are amended to read as follows:
131. The division of criminal investigation of the
14department of public safety shall conduct thorough background
15investigations for the purposes of licensing medical
16cannabidiol cannabis manufacturers and medical cannabidiol
17 cannabis dispensaries under this chapter. The results of any
18background investigation conducted pursuant to this section
19shall be presented to the department.
20a. An applicant for a medical cannabidiol cannabis
21 manufacturer license or a medical cannabidiol cannabis
22 dispensary license and their owners, investors, and employees
23shall submit all required information on a form prescribed by
24the department of public safety.
25b. The department shall charge an applicant for a medical
26cannabidiol cannabis manufacturer license or a medical
27cannabidiol cannabis dispensary license a fee determined by
28the department of public safety and adopted by the department
29by rule to defray the costs associated with background
30investigations conducted pursuant to the requirements of this
31section. The fee shall be in addition to any other fees
32charged by the department. The fee may be retained by the
33department of public safety and shall be considered repayment
34receipts as defined in section 8.2.
352. The department shall require an applicant for a
-61-1medical cannabidiol cannabis manufacturer license or a
2medical cannabidiol cannabis dispensary license, their owners
3and investors, and applicants for employment at a medical
4cannabidiol cannabis manufacturer or medical cannabidiol
5 cannabis dispensary to submit fingerprints and other required
6identifying information to the department on a form prescribed
7by the department of public safety. The department shall
8submit the fingerprint cards and other identifying information
9to the division of criminal investigation of the department
10of public safety for submission to the federal bureau of
11investigation for the purpose of conducting a national criminal
12history record check. The department may require employees and
13contractors involved in carrying out a background investigation
14to submit fingerprints and other identifying information for
15the same purpose.
164. An applicant for a medical cannabidiol cannabis
17 manufacturer license or a medical cannabidiol cannabis
18 dispensary license shall submit information and fees required
19by this section at the time of application.
20 Sec. 103. Section 124E.20, Code 2023, is amended to read as
21follows:
22124E.20 Observational effectiveness study.
23The department may conduct an observational effectiveness
24study in cooperation with patients and health care
25practitioners and pursuant to rules of the department in order
26to study the effectiveness of medical cannabidiol cannabis in
27the treatment of debilitating medical conditions.
28 Sec. 104. Section 204.17, subsection 4, Code 2023, is
29amended to read as follows:
304. Nothing in this chapter shall be construed or applied
31to authorize a person to manufacture, recommend, possess, use,
32dispense, deliver, transport, or administer medical cannabidiol
33 cannabis pursuant to chapter 124E.
34 Sec. 105. Section 730.5, subsection 11, paragraph f, Code
352023, is amended to read as follows:
-62- 1f. Testing or taking action against an employee or
2prospective employee with a confirmed positive test result due
3to the employee’s or prospective employee’s use of medical
4cannabidiol cannabis as authorized under chapter 124E.
5DIVISION VII
6effective date
7 Sec. 106. EFFECTIVE DATE. This Act, being deemed of
8immediate importance, takes effect upon enactment, except that
9the alcoholic beverages division of the department of commerce
10shall not issue a license to operate a retail marijuana
11establishment prior to January 1, 2024.
12DIVISION VIII
13code editor directive
14 Sec. 107. CODE EDITOR DIRECTIVE — SUBCHAPTER DESIGNATIONS.
151. The Code editor is directed to create two new subchapters
16in chapter 124F as follows:
17a. Subchapter I shall be entitled “CRIMINAL PENALTIES” and
18include sections 124F.1 through 124F.3.
19b. Subchapter II shall be entitled “RETAIL MARIJUANA” and
20include sections 124F.4 through 124F.27.
212. The Code editor may modify subchapter titles if necessary
22and is directed to correct internal references in the Code as
23necessary due to enactment of this section.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill relates to marijuana, including retail marijuana
28and medical cannabis.
29DIVISION I — MARIJUANA — CRIMINAL PENALTIES. The
30bill modifies criminal penalties relating to marijuana by
31eliminating and modifying certain criminal provisions in
32Code chapter 124 (uniform controlled substances Act), and
33transferring certain criminal provisions from Code chapter 124
34to new Code chapter 124F.
35MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER
-63-1MARIJUANA. The bill provides that an unauthorized person
2commits a class “C” felony punishable by confinement for
3no more than 10 years and a fine of at least $1,370 but not
4more than $13,660 if the person violates new Code section
5124F.2(1)(a) and the controlled substance involves more than
650 kilograms of marijuana. Currently, such a person commits
7a class “B” felony punishable by confinement of no more than
850 years if the controlled substance involves more than 1,000
9kilograms of a mixture or substance containing a detectable
10amount of marijuana, or a class “B” felony punishable by
11confinement of no more than 25 years if the controlled
12substance involves more than 100 kilograms of marijuana but not
13more than 1,000 kilograms.
14The bill provides that an unauthorized person commits a
15class “D” felony if the person violates new Code section
16124F.2(1)(a) and the controlled substance involves more than
172 kilograms of marijuana but not more than 50 kilograms. A
18class “D” felony is punishable by confinement for no more than
19five years and a fine of at least $1,025 but not more than
20$10,245. Currently, such a person commits a class “C” felony
21if the controlled substance involves more than 50 kilograms of
22marijuana but not more than 100 kilograms.
23The bill provides that an unauthorized person commits an
24aggravated misdemeanor if the person violates new Code section
25124F.2(1)(a) and the controlled substance involves more than
2612 ounces of marijuana but not more than 2 kilograms. An
27aggravated misdemeanor is punishable by confinement for no more
28than two years and a fine of at least $855 but not more than
29$8,540. Currently, such a person commits a class “D” felony
30if the controlled substance involves 50 kilograms or less of
31marijuana.
32The bill provides that an unauthorized person commits a
33serious misdemeanor if the person violates new Code section
34124F.2(1)(a) and the controlled substance involves more than
354 ounces of marijuana but not more than 12 ounces. A serious
-64-1misdemeanor is punishable by confinement for no more than one
2year and a fine of at least $430 but not more than $2,560.
3Currently, such a person commits a class “D” felony.
4The bill provides that an unauthorized person commits a
5simple misdemeanor if the person violates new Code section
6124F.2(1)(a) and the controlled substance involves 4 ounces or
7less of marijuana except as otherwise provided in the bill. A
8simple misdemeanor is punishable by confinement for no more
9than 30 days and a fine of at least $105 but not more than $855.
10Currently, such a person commits a class “D” felony. A person
11who is 18 years of age or older who unlawfully manufactures
12with the intent to distribute, distributes, or possesses with
13the intent to distribute marijuana to another person who is
1418 years of age or older in or on, or within 1,000 feet of,
15the real property comprising a public or private elementary or
16secondary school, public park, public swimming pool, public
17recreation center, or on a marked school bus, may be sentenced
18up to an additional term of confinement of five years.
19POSSESSION OF MARIJUANA. The bill provides that if a person
20unlawfully possesses more than 6 ounces of marijuana but not
21more than 12 ounces, the person commits a serious misdemeanor.
22The bill provides that if a person unlawfully possesses more
23than one-half ounce of marijuana but not more than 6 ounces,
24the person commits a simple misdemeanor.
25The bill provides that if a person 21 years of age or older
26possesses one-half ounce or less of marijuana, the person does
27not commit a criminal offense but shall be assessed a civil
28penalty in the amount of $100. If the person is under 21 years
29of age, the person must complete 10 hours of unpaid community
30service and a substance abuse program, and inform the person’s
31parents or legal guardians. The bill provides that any records
32relating to the civil penalty shall not be displayed for public
33viewing on the Iowa court information system and such records
34shall not be kept in the criminal history files maintained by
35the department of public safety.
-65- 1RETAIL MARIJUANA — POSSESSION LIMITS. The bill establishes
2possession limits for retail marijuana, defined in the bill.
3The bill prohibits a person 21 years of age or older from
4possessing more than 5 ounces of marijuana flower, or 500
5milligrams of tetrahydrocannabinol contained in a product
6infused with marijuana. A person in possession of retail
7marijuana in excess of amounts equivalent to the amounts
8specified in the bill for the possession of marijuana is
9subject to prosecution for a simple or serious misdemeanor or
10a civil penalty. A retail marijuana store that sells retail
11marijuana in excess of the amounts allowed in the bill is
12subject to a fine or other discipline imposed by the division.
13Currently, if a person unlawfully possesses marijuana, the
14person shall be punished by imprisonment in the county jail for
15not more than six months or by a fine of not more than $1,000,
16or by both for a first offense. If the person has previously
17been convicted of marijuana possession, the person commits a
18serious misdemeanor under current law, and if the person has
19been convicted of marijuana possession two or more times, the
20person commits an aggravated misdemeanor.
21JUVENILE MARIJUANA OFFENSES. The bill specifies that the
22juvenile court shall have exclusive original jurisdiction in a
23proceeding concerning a minor who is alleged to have committed
24a violation of the bill.
25GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED.
26 The bill strikes a provision making it a serious misdemeanor
27for a person to sponsor, promote, or aid in the sponsoring
28or promoting of a meeting or gathering with the knowledge or
29intent that marijuana be distributed, used, or possessed at the
30meeting or gathering in violation of Code chapter 124.
31ACCOMMODATION OFFENSE. The bill strikes a provision
32allowing a prosecution for unlawful delivery or possession with
33intent to deliver marijuana, if the prosecution proves that
34the defendant delivered or possessed with intent to deliver
35one-half ounce or less of marijuana which was not offered for
-66-1sale, the defendant is guilty of an accommodation offense
2and rather than being sentenced for a class “D” felony under
3Code section 124.401(1)(d), the person is sentenced for a
4misdemeanor in violation of Code section 124.401(5). The bill
5makes conforming changes to Code sections 124.401G (Iowa hemp
6Act) and 124.413 (mandatory minimum sentences — controlled
7substances).
8SECOND OR SUBSEQUENT OFFENSES. Currently, a person
9convicted of a second or subsequent offense under Code chapter
10124 may be punished by imprisonment for a period not to exceed
11three times the term otherwise authorized, or fined not more
12than three times the amount otherwise authorized. The bill
13strikes the provision that allows for the use of a previous
14marijuana conviction in determining if a person has been
15convicted of a second or subsequent offense under Code chapter
16124.
17MARIJUANA IN MOTOR VEHICLES. The bill prohibits a driver
18of a motor vehicle upon a public street or highway from using
19marijuana in the passenger area of the motor vehicle. The bill
20also prohibits a driver or passenger of or in a motor vehicle
21upon a public street or highway from possessing marijuana in
22the passenger area of a motor vehicle except in a sealed, odor
23proof, child resistant container. The bill defines “passenger
24area” as the area designed to seat the driver and passengers
25while the motor vehicle is in operation and any area that is
26readily accessible to the driver or a passenger while in their
27seating positions, including the glove compartment. A person
28who knowingly violates this provision of the bill is guilty of
29a simple misdemeanor. A simple misdemeanor is punishable by
30confinement for no more than 30 days and a fine of at least $105
31but not more than $855.
32The bill prohibits a person from operating a motor
33vehicle with 50 or more nanograms of tetrahydrocannabinol
34in the person, as measured in the person’s blood. A person
35who operates a motor vehicle with 50 or more nanograms of
-67-1tetrahydrocannabinol in the person shall have that person’s
2driver’s license suspended for 180 days for a first offense and
3one year for each subsequent offense. A person who refuses
4to submit to chemical testing for tetrahydrocannabinol shall
5have the person’s driver’s license suspended for one year for a
6first offense, and two years for each subsequent offense.
7EXPUNGEMENT. The bill provides that upon application by a
8defendant convicted of a felony offense under Code chapter 124
9(controlled substances) related to the possession or transfer
10of marijuana prior to January 1, 2023, the court shall enter an
11order expunging the record of such a criminal case. A person
12may only seek an expungement once, but an application may
13request the expungement of multiple nonviolent offenses if the
14offenses arose from the same transaction or occurrence. Under
15current law, misdemeanor marijuana offenses may be expunged
16pursuant to Code section 901C.3 (misdemeanor expungement). The
17bill requires each court, on the effective date of the bill, to
18review its records to identify persons convicted of marijuana
19offenses that would have been legal under the bill and to
20automatically expunge each such conviction.
21DIVISION II — RETAIL MARIJUANA. Division II of the
22bill relates to the regulation of retail marijuana in Iowa.
23The bill grants the alcoholic beverages division of the
24department of commerce (division) the authority to regulate the
25cultivation, production, transportation, testing, and sale of
26retail marijuana and retail marijuana products, including by
27issuing appropriate licenses and promulgating rules.
28The bill requires the division to transfer half of any
29application fee collected to the local jurisdiction in which
30the retail marijuana establishment will be located. The
31bill allows local jurisdictions to impose limitations on the
32operation of retail marijuana establishments, including by
33prohibiting their operation.
34The bill directs the division to develop and maintain a
35seed-to-sale tracking system to track retail marijuana from the
-68-1seed or immature plant stage until it is sold to a consumer at a
2retail marijuana establishment.
3The bill requires the division to prioritize applicants
4for state licenses who currently hold a license pursuant to
5Code chapter 124E (medical cannabidiol) or that are businesses
6majority-owned by women, citizens or permanent legal residents
7of Iowa, or disabled veterans. The bill requires the division
8to issue licenses to businesses that are majority-owned by
9persons who are racial minorities in a proportion that meets or
10exceeds the percentage of persons in this state who are racial
11minorities according to the most recent federal decennial
12census.
13The bill prohibits the owner of a retail marijuana
14establishment from interfering with activities of employees
15relating to labor organizations.
16LOCAL LICENSES. The bill requires the division to transmit
17any application for a retail marijuana establishment it
18receives to the local jurisdiction where the establishment
19will be located within seven days of receipt unless the
20local jurisdiction has prohibited the operation of retail
21marijuana establishments. The local jurisdiction must then
22inform the division whether the application complies with
23any local restrictions on the operation of retail marijuana
24establishments it may have imposed. The bill requires a person
25to receive approval from both the division and the local
26jurisdiction before operating a retail marijuana establishment.
27A person whose application for a license is denied is entitled
28to a hearing and judicial review pursuant to Code chapter 17A.
29RETAIL MARIJUANA LICENSES. Ninety days prior to the
30expiration date of an existing license, the division shall
31notify the licensee of the expiration date by first class
32mail at the licensee’s address of record with the division.
33A licensee may apply for the renewal of an existing license
34to the division not less than 30 days prior to the date of
35expiration.
-69- 1RETAIL MARIJUANA STORES. The bill allows a retail marijuana
2store to purchase retail marijuana from a retail marijuana
3cultivation facility. A retail marijuana store may also
4sell prepackaged and labeled retail marijuana products. A
5retail marijuana store must track all of its retail marijuana
6and retail marijuana products from the point that they are
7transferred to the retail marijuana store to the point of
8sale. The bill prohibits a retail marijuana store from selling
9more than one ounce of retail marijuana or its equivalent
10to a person in a single transaction, excluding nonedible,
11nonpsychoactive retail marijuana products.
12Prior to initiating a sale, the bill requires a retail
13marijuana store employee to verify that purchaser has a valid
14identification card showing that the person is 21 years of age
15or older. If a purchaser presents a retail marijuana store
16employee with fraudulent proof of age, any action taken in
17reliance on that proof of age shall not be grounds for the
18revocation or suspension of a license.
19The bill allows a retail marijuana store to provide to the
20state hygienic laboratory a sample of its products for testing
21and research purposes. The retail marijuana store shall
22maintain a record of what was provided to the laboratory and
23the results of the testing.
24The bill prohibits a retail marijuana store from selling
25any products other than retail marijuana, retail marijuana
26products, marijuana accessories, nonconsumable products such as
27apparel, and marijuana products such as childproof packaging
28containers.
29The bill prohibits the division from issuing more than one
30retail marijuana store license per county, except that the
31division may, upon receipt of a petition, issue one additional
32retail marijuana store license per 100,000 population in the
33county. The bill allows a location licensed as a retail
34marijuana store to also be licensed as a medical cannabis
35dispensary, pursuant to rules adopted by the division in
-70-1consultation with the Iowa department of public health.
2RETAIL MARIJUANA CULTIVATION. The bill allows the division
3to issue retail marijuana cultivation facility licenses
4to persons who cultivate retail marijuana for sale and
5distribution to retail marijuana stores, manufacturers, or
6other cultivation facilities. The bill requires a retail
7marijuana cultivation facility to remit any applicable tax due.
8The bill also requires a retail marijuana cultivation facility
9to track the marijuana it cultivates from seed or immature
10plant to wholesale purchase.
11RETAIL MARIJUANA PRODUCTS MANUFACTURING LICENSES. The
12bill allows the division to issue retail marijuana products
13manufacturing licenses to persons who manufacture retail
14marijuana products. The bill requires a retail marijuana
15products manufacturer to track all of its retail marijuana from
16the point it is either transferred from its retail marijuana
17cultivation facility or the point when it is delivered to the
18retail marijuana products manufacturer from a retail marijuana
19cultivation facility to the point of transfer to a retail
20marijuana store.
21The bill requires retail marijuana products to be
22manufactured and prepared in a facility that only manufactures
23retail marijuana products, except that premises may be shared
24with a medical cannabis-infused products manufacturer so long
25as a virtual or physical separation of inventory is maintained.
26RETAIL MARIJUANA USE — PROTECTIONS. The bill prohibits
27the state and its political subdivisions from taking certain
28actions against a person on the basis that the person has
29engaged in conduct allowed by the bill. The state and its
30political subdivisions shall not prosecute a person, deny a
31person a professional license, deny a person a benefit or
32entitlement, deny a person custody or visitation of a child,
33deny a person employment or a contract, or deny a person
34medical care on the basis that the person has engaged in
35conduct allowed by the bill. The bill also prohibits the
-71-1state or a political subdivision from denying employment
2or a contract to a person on the basis of a person’s prior
3conviction of a nonviolent marijuana offense that does not
4involve distribution to a minor. The bill excludes engaging
5in conduct allowed by the bill from being classified as a
6violation of a condition of parole, probation, or pretrial
7release unless there is a specific finding that the conduct
8could create a danger to the individual or another person.
9The bill does not prohibit a governmental employer from
10disciplining an employee or contractor for ingesting marijuana
11at work or working while under the influence of marijuana, nor
12does it prohibit a licensing board from imposing a penalty on a
13person for engaging in conduct that would constitute negligence
14or professional malpractice. The protections of the bill do
15not apply to the extent that they conflict with a governmental
16employer’s obligations under federal law or would disqualify
17a governmental employer from a monetary or licensing-related
18benefit under federal law.
19FEES. The bill allows the division to collect and charge
20fees. The bill sets the application fee for a person applying
21for a new retail marijuana establishment license at $5,000,
22which shall be divided evenly between the division and the
23local jurisdiction where the license is proposed to be issued.
24The bill permits a local jurisdiction to impose operating fees
25on retail marijuana establishments to which it has granted a
26license.
27LICENSE DISCIPLINE. The bill permits the division, on its
28own motion or complaint, and after investigation, notice,
29a public hearing, and opportunity to be heard, to suspend
30or revoke a license if the licensee or any of its agents or
31employees violate a provision of the bill or a rule promulgated
32by the division. The division may administer oaths and issue
33subpoenas to require the presence of persons and the production
34of documents. The division may impose discipline pursuant to
35rules and Code chapter 17A.
-72- 1INSPECTION. The bill requires a licensee to keep a complete
2set of all records necessary to show fully the business
3transactions of the licensee, all of which shall be open at all
4times during business hours for the inspection and examination
5by the division or its duly authorized representatives.
6The bill requires the licensed premises of a retail
7marijuana establishment, including any places of storage
8where retail marijuana or retail marijuana products are
9stored, cultivated, sold, dispensed, or tested to be subject
10to inspection by the state or local jurisdictions and their
11investigators, during all business hours and other times
12of apparent activity, for the purpose of inspection or
13investigation.
14STATE MARIJUANA EXCISE TAX. The bill imposes an excise tax
15on consumers at the rate of 10 percent of the sale price on
16each sale of retail marijuana. The tax shall be paid by the
17consumer to the retail marijuana establishment at the time
18of sale, and each retail marijuana establishment shall remit
19the tax collected to the division on the 15th day of each
20month. Revenues generated by the excise tax shall be deposited
21in the community reinvestment fund, mental health services
22and substance use disorder prevention fund, and local public
23safety fund created in the bill. Moneys in the community
24reinvestment fund, mental health services and substance use
25disorder prevention fund, and local public safety fund shall be
26appropriated by the general assembly for purposes enumerated
27in the bill.
28OCCUPATIONAL LICENSING PROTECTIONS. The bill prohibits a
29professional or occupational licensing board from imposing
30discipline on a licensee for providing services related to
31retail marijuana establishments. The bill also prohibits a
32professional or occupational licensing board from denying a
33license to a person based on a person’s past employment with a
34retail marijuana establishment.
35RULEMAKING. The bill requires the alcoholic beverages
-73-1division of the department of commerce to adopt rules within
2one year of the effective date of the bill to adopt rules for
3the implementation of the bill. The rules shall not prohibit
4the operation of retail marijuana establishments or make
5the operation of retail marijuana establishments so costly
6as to be impractical. Required rules include but are not
7limited to rules relating to applications, fees, licensure,
8security requirements, labeling requirements, health and
9safety requirements, restrictions on advertising, cultivation,
10testing, and penalties. The division shall also develop and
11regularly update safety materials to be distributed upon the
12sale of retail marijuana.
13ACTS PROHIBITED. The bill does not allow the transfer of
14marijuana to a person under 21 years of age or the possession
15of marijuana by a person under 21 years of age.
16PROPERTY RIGHTS. The bill does not require the owner of
17a property to allow the consumption, cultivation, display,
18sale, or transfer of marijuana at that property. However, in
19the case of a residential dwelling, a landlord or property
20manager shall not prohibit the possession of retail marijuana
21or medical cannabis or the consumption of retail marijuana
22or medical cannabis by means other than smoking except under
23certain circumstances. The bill allows a landlord to take
24action against a tenant after a warning if the tenant’s use of
25marijuana creates an odor that interferes with the peaceful
26enjoyment of property by other tenants. The bill prohibits
27a landlord from discriminating against a tenant or applicant
28on the basis of a past conviction of a marijuana offense that
29would have been legal under the bill.
30LAW ENFORCEMENT. The bill prohibits law enforcement
31agencies from expending resources on the investigation of or
32arrest for activity related to marijuana that is in violation
33of federal law if the officer performing the investigation
34or arrest has reason to believe that the activity complies
35with the requirements of the bill. The bill also prohibits
-74-1an agency or political subdivision of the state from taking
2an adverse action against a person on the sole basis that the
3person has violated a federal law related to marijuana.
4SURCHARGE. The bill allows a county that has not prohibited
5the sale of retail marijuana to impose a 1 percent surcharge
6on the retail sales price of retail marijuana. The surcharge
7shall be administered by the department of revenue and funds
8collected by the department of revenue shall be remitted to
9the county on a quarterly basis. The bill includes additional
10provisions regarding the implementation and operation of retail
11marijuana surcharges.
12DIVISION III — MEDICAL CANNABIS. The bill changes the name
13of the medical cannabidiol Act to the medical cannabis Act.
14The bill allows a health care practitioner to certify a
15patient for the use of medical cannabis to a patient for
16any medical condition for which a patient’s health care
17practitioner determines the use of medical cannabis could be
18medically beneficial. The bill requires that any certification
19made by a health care practitioner for a patient for a
20debilitating medical condition not explicitly included on
21the list of debilitating medical conditions shall be made by
22a health care practitioner pursuant to reasonable medical
23evidence, in good faith, in the best interest of the patient,
24without fraudulent intent, and with the same reasonable medical
25judgment and prudence exercised according to generally accepted
26medical practice.
27The bill adds pharmacists to the list of health care
28practitioners able to certify a patient to receive a medical
29cannabis registration card. The bill requires a pharmacist to
30complete a training program designated by the board of pharmacy
31prior to certifying a patient to receive a medical cannabis
32registration card.
33The bill lowers the fee to receive a medical cannabis
34registration card from $25 to $10 and requires the department
35of public health to waive the fee for veterans. The bill
-75-1expands the membership of the medical cannabis board from 8
2to 10 members and adds one member licensed as a physician
3assistant and one member licensed as an advanced practice
4registered nurse.
5The bill allows a medical cannabis manufacturer to
6manufacture edible medical cannabis products. The bill
7prohibits such products from being designed or packaged in
8such a way as would be likely to appeal to children. The bill
9removes the cap on the number of medical cannabis manufacturers
10and dispensaries that may be licensed in this state. The bill
11requires the department to consider demand for medical cannabis
12when licensing a medical cannabis manufacturer or dispensary.
13The bill raises the cap on total tetrahydrocannabinol that
14a patient may receive in a 90-day period from 4.5 grams to 17
15grams.
16The bill requires a medical cannabis dispensary to share
17information regarding the dispensation of medical cannabis to
18a patient with the health care practitioner who certified the
19patient to receive a medical cannabis registration card. The
20bill allows the department to share information regarding the
21purchase of medical cannabis by a patient or primary caregiver
22with the health care practitioner who certified the patient or
23primary caregiver to receive a medical cannabis registration
24card.
25The bill creates standards that a health care practitioner
26must meet in order to provide telemedicine services to
27a patient and defines the start of a provider-patient
28relationship as when a person seeks medical assistance, a
29health care provider agrees to provide treatment, and the
30person agrees to receive treatment. The bill allows a valid
31provider-patient relationship to be formed through an in-person
32encounter, through consultation with another health care
33provider, or through telemedicine, but only if the standard of
34care does not require an in-person encounter.
35The bill requires the department of health and human
-76-1services to convene a task force of legal experts to assist
2the department in ensuring that educational and long-term care
3facilities that receive federal funding and that allow the use
4and administration of medical cannabidiol on the grounds of the
5facilities do not lose eligibility for federal funding.
6DIVISION IV — MEDICAL CANNABIS — INCOME TAXES. The bill
7allows individuals and corporations to subtract from net
8income, to the extent included, business expenses for a medical
9cannabis manufacturer or medical cannabis dispensary.
10DIVISION V — MEDICAL CANNABIS — SALES AND USE TAX. The
11bill exempts sales of medical cannabis products by a medical
12cannabis manufacturer or a medical cannabis dispensary pursuant
13to Code chapter 124E from sales tax.
14DIVISION VI — MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO
15MEDICAL CANNABIS — CONFORMING CODE CHANGES. This division
16changes references from “medical cannabidiol” to “medical
17cannabis” throughout the Code.
18DIVISION VII — EFFECTIVE DATE. The bill takes effect upon
19enactment, except that the alcoholic beverages division of the
20department of commerce shall not issue a license to operate a
21retail marijuana establishment prior to January 1, 2023.
22DIVISION VIII — CODE EDITOR DIRECTIVE. The bill directs
23the Code editor to create two subchapters in new Code chapter
24124F. The first subchapter shall be designated “criminal
25penalties” and the second subchapter shall be designated
26“retail marijuana”.
-77-ss/rh
2delivery, and possession of marijuana, the licensure of
3retail marijuana, and medical cannabis, providing fees,
4including excise taxes, establishing funds, providing
5penalties, and including effective date provisions.
6BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2marijuana — CRIMINAL 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. If
10the controlled substance is marijuana and the person has been
11previously convicted of a violation of this subsection in which
12the controlled substance was marijuana, the punishment shall be
13as provided in section 903.1, subsection 1, paragraph “b”. If
14the controlled substance is marijuana and the person has been
15previously convicted two or more times of a violation of this
16subsection in which the controlled substance was marijuana,
17the person is guilty of an aggravated misdemeanor. This
18subsection does not apply to the possession of marijuana which
19is 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. a. 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:
2(1) More than fifty kilograms shall be a class “C” felony.
3(2) More than two kilograms but not more than fifty
4kilograms shall be a class “D” felony.
5(3) More than twelve ounces but not more than two kilograms
6shall be an aggravated misdemeanor.
7(4) More than four ounces but not more than twelve ounces
8shall be punishable as a serious misdemeanor.
9(5) Four ounces or less shall be punishable as a simple
10misdemeanor, except as provided in section 124F.3.
11b. In addition to any other penalties provided in this
12subsection, a person who is eighteen years of age or older
13who unlawfully manufactures with the intent to distribute,
14distributes, or possesses with the intent to distribute
15marijuana to another person who is eighteen years of age or
16older in or on, or within one thousand feet of, the real
17property comprising a public or private elementary or secondary
18school, public park, public swimming pool, public recreation
19center, or on a marked school bus, may be sentenced up to an
20additional term of confinement of five years.
212. It is unlawful for any person knowingly or intentionally
22to possess marijuana unless such substance was obtained
23directly from, or pursuant to, a valid prescription or order of
24a practitioner while acting in the course of the practitioner’s
25professional practice, or except as otherwise authorized by
26this subsection. A violation of this subsection involving
27the possession of the following amounts of marijuana shall be
28punishable as follows:
29a. More than six ounces but not more than twelve ounces is
30a serious misdemeanor.
31b. More than one-half ounce but not more than six ounces is
32a simple misdemeanor.
33c. One-half ounce or less is not a criminal offense but
34shall be assessed as a civil penalty in the amount of one
35hundred dollars, except if the person is under twenty-one years
-4-1of age, the person shall complete a drug awareness program and
2ten hours of unpaid community service, and shall notify the
3person’s parents or legal guardian.
4(1) The civil penalty shall be collected by the clerk of the
5district court pursuant to section 602.8105, subsection 5.
6(2) Any records relating to the civil penalty shall not
7be displayed for public viewing on the Iowa court information
8system.
9(3) Any records relating to the civil penalty shall not
10be kept in the criminal history data files maintained by the
11department of public safety. Any records relating to the civil
12penalty shall not be disseminated to other criminal or juvenile
13justice agencies.
143. a. A retail marijuana store shall not sell retail
15marijuana in excess of the following amounts in a single
16transaction:
17(1) Thirty grams of marijuana flower.
18(2) Five hundred milligrams of tetrahydrocannabinol
19contained in a product infused with marijuana.
20b. A person shall not possess more than five ounces of
21marijuana flower.
22c. A person in possession of retail marijuana in excess of
23the amounts specified in paragraph “a” equivalent to the amounts
24specified in subsection 2, shall be subject to the penalties in
25subsection 2.
26d. A retail marijuana store in violation of this subsection
27shall be subject to licensee discipline pursuant to section
28124F.16.
29e. For purposes of this subsection, “retail marijuana” and
30“retail marijuana store” mean the same as defined in section
31124F.4.
324. a. Upon the expiration of two years following a
33conviction for a violation of subsection 2, paragraph “a” or
34“b”, a person may petition the court to expunge the conviction,
35and if the person has had no other criminal convictions, other
-5-1than local traffic violations or simple misdemeanor violations
2of chapter 321 during the two-year period, the conviction
3shall be expunged as a matter of law. The court shall enter
4an order that the record of the conviction be expunged by the
5clerk of the district court. Notwithstanding section 692.2,
6after receipt of notice from the clerk of the district court
7that a record of conviction has been expunged pursuant to this
8subsection, the record of conviction shall be removed from the
9criminal history data files maintained by the department of
10public safety.
11b. On the effective date of this Act, each court shall
12review its records to identify persons who have been convicted
13of an offense based on conduct allowed under this Act. Each
14such conviction shall be expunged as a matter of law as
15provided in paragraph “a”.
16 Sec. 14. NEW SECTION. 124F.3 Juvenile offenses.
17The juvenile court shall have exclusive original
18jurisdiction in a proceeding concerning a minor who is alleged
19to have committed a violation of this subchapter.
20 Sec. 15. NEW SECTION. 321.284B Marijuana in motor vehicles.
211. A driver of a motor vehicle upon a public street or
22highway shall not use marijuana in the passenger area of the
23motor vehicle. “Passenger area” means the area designed to
24seat the driver and passengers while the motor vehicle is in
25operation and any area that is readily accessible to the driver
26or a passenger while in their seating positions, including the
27glove compartment.
282. A driver or passenger of or in a motor vehicle upon a
29public street or highway shall not possess marijuana in the
30passenger area of a motor vehicle except in a sealed, odor
31proof, child resistant container.
323. For the purposes of this section, “marijuana” means the
33same as defined in section 124.401.
344. A person who knowingly violates a provision of this
35section is guilty of a simple misdemeanor.
-6-1 Sec. 16. Section 321J.2, subsection 1, paragraph c, Code
22023, is amended to read as follows:
3c. While Except as provided in section 321J.2C, any amount
4of a controlled substance is present in the person, as measured
5in the person’s blood or urine.
6 Sec. 17. NEW SECTION. 321J.2C Operating while under the
7influence of marijuana.
81. A person shall not operate a motor vehicle in this state
9while having fifty nanograms of tetrahydrocannabinol in the
10person, as measured in the person’s blood.
112. A person who violates subsection 1 is guilty of a serious
12misdemeanor, punishable as follows:
13a. For a first offense, revocation of the person’s driver’s
14license for a period of one hundred eighty days, except that if
15the person refused to submit to chemical testing, the person’s
16driver’s license shall be revoked for a period of one year.
17b. For a second or subsequent offense, revocation of the
18person’s driver’s license for a period of one year, except
19that if the person refused to submit to chemical testing, the
20person’s driver’s license shall be revoked for a period of two
21years.
22 Sec. 18. Section 602.8105, Code 2022, is amended by adding
23the following new subsection:
24 NEW SUBSECTION. 5. The clerk of the district court shall
25collect the civil penalty assessed pursuant to section 124F.2,
26subsection 2, paragraph “c”, subparagraph (1).
27 Sec. 19. NEW SECTION. 901C.4 Felony offenses related to
28marijuana — expungement.
291. In addition to the expungement provisions available
30to a defendant convicted of a misdemeanor marijuana offense
31under chapter 124, upon application of a defendant convicted
32of a felony offense under chapter 124 in the county where the
33conviction occurred, related to the possession or transfer of
34marijuana, the court shall enter an order expunging the record
35of such a criminal case.
-7- 12. A person shall be granted an expungement of a record
2under this section one time in the person’s lifetime. However,
3the one application may request the expungement of records
4relating to more than one nonviolent offense under this section
5if the offenses arose from the same transaction or occurrence,
6and the application contains the offenses to be expunged.
73. The expunged record under this section is a confidential
8record exempt from public access under section 22.7 but shall
9be made available by the clerk of the district court upon court
10order.
114. Notwithstanding section 692.2, after receipt of
12notice from the clerk of the district court that a record of
13conviction has been expunged under subsection 1, the record
14of conviction shall be removed from the criminal history data
15files maintained by the department of public safety if such a
16record was maintained in the criminal history data files.
175. The supreme court may prescribe rules governing the
18procedures applicable to the expungement of a criminal case
19under this section.
206. This section applies to a felony conviction that occurred
21prior to January 1, 2024.
22 Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed.
23DIVISION II
24RETAIL marijuana
25 Sec. 21. NEW SECTION. 124F.4 Definitions.
26For the purposes of this subchapter:
271. “Division” means the alcoholic beverages division of the
28department of commerce.
292. “Immature plant” means a nonflowering marijuana plant
30that is no taller than eight inches and no wider than eight
31inches, is produced from a cutting, clipping, or seedling, and
32is in a cultivating container.
333. “License” means a license or registration issued pursuant
34to this subchapter.
354. “Licensed premises” means the premises specified in an
-8-1application for a license under this subchapter, which are
2owned or in possession of the licensee and within which the
3licensee is authorized to cultivate, manufacture, distribute,
4sell, or test retail marijuana and retail marijuana products in
5accordance with this subchapter.
65. “Licensee” means a person licensed or registered pursuant
7to this subchapter.
86. “Local jurisdiction” means a county.
97. “Local licensing authority” means, for any local
10jurisdiction that has chosen to adopt a local licensing
11requirement in addition to the state licensing requirements
12of this subchapter, an authority designated by a municipal
13or county ordinance, or resolution, or the governing body of
14a municipality or county, or the board of commissioners of a
15county if no such authority is designated.
168. “Location” means a particular parcel of land that may be
17identified by an address or other descriptive means.
189. “Marijuana” means the same as defined in section 124.101.
1910. “Marijuana accessories” means any equipment, products,
20or materials of any kind which are used, intended for use, or
21designed for use in planting, cultivating, growing, harvesting,
22composting, manufacturing, compounding, converting, producing,
23processing, preparing, testing, analyzing, packaging,
24repackaging, storing, vaporizing, or containing marijuana, or
25for ingesting, inhaling, or otherwise introducing marijuana
26into the human body.
2711. “Person” means a natural person, partnership,
28association, company, corporation, limited liability company,
29or organization; except that “person” does not include any
30governmental organization.
3112. “Retail marijuana” means all parts of the plant of the
32genus Cannabis, whether growing or not, the seeds thereof; the
33resin extracted from any part of the plant; and every compound,
34manufacture, salt, derivative, mixture, or preparation of the
35plant, its seeds or resin, including marijuana concentrate.
-9-1“Retail marijuana” does not include industrial hemp, nor does
2it include fiber produced from the stalks, oil or cake made
3from the seeds of the plant, sterilized seeds of the plant
4which are incapable of germination, or the weight of any other
5ingredient combined with marijuana to prepare topical or oral
6administrations, food, drink, or other product.
713. “Retail marijuana cultivation facility” means an entity
8licensed to cultivate, prepare, package, and sell marijuana to
9retail marijuana stores, to marijuana product manufacturing
10facilities, and to other marijuana cultivation facilities, but
11not to consumers.
1214. “Retail marijuana establishment” means a retail
13marijuana store, a retail marijuana cultivation facility, or a
14retail marijuana products manufacturer.
1515. “Retail marijuana products” means concentrated marijuana
16products and marijuana products that are comprised of marijuana
17and other ingredients and are intended for use or consumption,
18such as but not limited to edible products, ointments, and
19tinctures.
2016. “Retail marijuana products manufacturer” means an entity
21licensed to purchase marijuana; manufacture, prepare, and
22package marijuana products; and sell marijuana and marijuana
23products to other marijuana product manufacturing facilities
24and to retail marijuana stores, but not to consumers.
2517. “Retail marijuana store” means an entity licensed
26to purchase marijuana from marijuana cultivation facilities
27and sell marijuana and to purchase marijuana products from
28retail marijuana product manufacturing facilities and to sell
29marijuana and marijuana products to consumers.
3018. “Retail marijuana transporter” means an entity or person
31licensed to transport retail marijuana and retail marijuana
32products from one retail marijuana establishment to another
33retail marijuana establishment and to temporarily store the
34transported retail marijuana and retail marijuana products at
35its licensed premises, but is not authorized to sell retail
-10-1marijuana or retail marijuana products under any circumstances.
2 Sec. 22. NEW SECTION. 124F.5 Applicability.
31. On or after July 1, 2024, an applicant may apply for
4licensure of a retail marijuana establishment pursuant to this
5subchapter.
62. a. Pursuant to subsection 1, an applicant shall complete
7forms as provided by the division and shall pay the application
8fee and the licensing fee. The division shall forward, within
9seven days of the date of the application, one-half of the
10application fee to the local jurisdiction unless the local
11jurisdiction has prohibited the operation of retail marijuana
12establishments. If the license is denied, the division shall
13refund the licensing fee to the applicant.
14b. The division shall act upon an application made pursuant
15to subsection 1 no sooner than forty-five days and no later
16than ninety days after the date of the application. The
17division shall process applications in the order in which
18completed applications are received by the division.
193. a. Any local jurisdiction may enact ordinances or
20regulations governing the time, place, manner, and number of
21retail marijuana establishments, which may include a local
22licensing requirement, or may prohibit the operation of retail
23marijuana establishments by ordinance or by a referred or
24initiated measure. If a county acts through an initiated
25measure, the proponents shall submit a petition signed by not
26less than fifteen percent of the registered electors in the
27county.
28b. If a county prohibits the operation of retail marijuana
29establishments, the county shall, upon receipt of a petition
30signed by fifteen percent of the registered voters in the
31county, submit to the voters of the county the question of
32whether the operation of retail marijuana establishments should
33be allowed in the county at the next general election.
34 Sec. 23. NEW SECTION. 124F.6 Retail marijuana licensure.
351. The division shall develop and maintain a seed-to-sale
-11-1tracking system that tracks retail marijuana from either
2seed or immature plant stage until the marijuana or retail
3marijuana product is sold to a customer at a retail marijuana
4establishment to ensure that no marijuana grown or processed
5by a retail marijuana establishment is sold or otherwise
6transferred except by a retail marijuana store.
72. The division shall adopt all rules necessary for the
8implementation of this chapter.
93. Nothing in this subchapter shall be construed to be
10a delegation to the division of the power to fix prices for
11retail marijuana.
124. Nothing in this subchapter shall be construed to limit
13a law enforcement agency’s ability to investigate unlawful
14activity in relation to a retail marijuana establishment. A
15law enforcement agency shall have the authority to conduct a
16criminal history record check of a licensee and an employee of
17a licensee during an investigation of unlawful activity related
18to retail marijuana and retail marijuana products.
195. The division shall create a statewide licensure class
20system for retail marijuana cultivation facilities. The
21classifications may be based upon square footage of the
22facility; lights, lumens, or wattage; canopy lighting; the
23number of cultivating plants; a combination of the foregoing;
24or other reasonable metrics. The division shall create a fee
25structure for the licensure class system.
26 Sec. 24. NEW SECTION. 124F.7 State and local participation
27in licensure.
281. When the division receives an application for an
29initial license or a renewal of an existing license for
30any retail marijuana establishment, the division shall
31provide, within seven days of receipt of an application,
32a copy of the application to the local jurisdiction in
33which the establishment is to be located unless the local
34jurisdiction has prohibited the operation of retail marijuana
35establishments. The local jurisdiction shall determine whether
-12-1the application complies with local restrictions relating
2to time, place, manner, and the number of retail marijuana
3establishments allowed. The local jurisdiction shall inform
4the division whether the application complies with local
5restrictions.
62. A local jurisdiction may impose a separate local
7licensing requirement as a part of its restrictions relating
8to time, place, manner, and the number of retail marijuana
9establishments allowed. A local jurisdiction may decline
10to impose any local licensing requirements, but a local
11jurisdiction shall notify the division that it either approves
12or denies each application received by the local jurisdiction.
133. If a local jurisdiction issues a local license for
14a retail marijuana establishment, a local jurisdiction may
15schedule a public hearing on the application. If the local
16jurisdiction schedules a hearing, it shall post and publish
17public notice of the hearing not less than ten days prior
18to the hearing. The local jurisdiction shall give public
19notice by posting a sign in a conspicuous place on the license
20applicant’s premises for which a local license application
21has been made and by publication in a newspaper of general
22circulation in the county in which the applicant’s premises are
23located.
244. If a local jurisdiction does not issue local licenses,
25the local jurisdiction may give public notice of the state
26license application by posting a sign in a conspicuous place
27on the state license applicant’s premises for which a state
28license application has been made and by publication in a
29newspaper of general circulation in the county in which the
30applicant’s premises are located.
315. Applications for a state license under this subchapter
32must be made to the division on forms prepared and furnished
33by the division and must set forth such information as the
34division may require to enable the division to determine
35whether a state license should be granted.
-13- 16. The division shall deny a state license if the premises
2on which the applicant proposes to conduct its business does
3not meet the requirements of this subchapter. The division
4may refuse or deny a license renewal, reinstatement, or
5initial license issuance for good cause. For purposes of this
6subsection, “good cause” means any of the following:
7a. The licensee or applicant has violated, does not meet,
8or has failed to comply with any of the terms, conditions, or
9provisions of this subchapter, any rules promulgated pursuant
10to this subchapter, or any supplemental local law, rules, or
11regulations.
12b. The licensee or applicant has failed to comply with any
13special terms or conditions of the license pursuant to an order
14of the division or local licensing authority.
15c. The licensed premises have been operated in a manner that
16adversely affects the public health or safety of the immediate
17neighborhood in which the retail marijuana establishment is
18located.
19d. The licensed premises are located within two thousand
20feet of real property comprising a school, child care facility,
21or public park.
227. If the division denies a state license pursuant to
23subsection 6, the applicant shall be entitled to a hearing
24pursuant to section 17A.12 and judicial review pursuant to
25section 17A.19. The division shall provide written notice of
26the grounds for denial of the state license to the applicant
27and to the local jurisdiction at least fifteen days prior to
28the hearing.
298. The division shall give primary preference to applicants
30for licensure who are currently licensed as a medical
31cannabidiol manufacturer or medical cannabidiol dispensary
32pursuant to chapter 124E. The division shall also prioritize
33applicants for licensure that are businesses that are
34majority-owned by persons who are women, citizens or permanent
35legal residents of Iowa, or disabled veterans.
-14- 19. The division shall issue licenses to businesses that
2are majority-owned by persons who are racial minorities in a
3proportion that meets or exceeds the percentage of persons in
4this state who are racial minorities according to the most
5recent federal decennial census.
6 Sec. 25. NEW SECTION. 124F.8 Establishment and owner
7requirements.
81. An owner who is a natural person must have been either
9of the following:
10a. A resident of Iowa for at least one year prior to the
11date of the application.
12b. A United States citizen prior to the date of the
13application.
142. A retail marijuana establishment may be composed of an
15unlimited number of owners that have been residents of Iowa for
16at least one year prior to the date of the application.
173. A retail marijuana establishment shall not interfere
18with the creation of or participation in a labor organization,
19as defined in section 216.2, by employees of the retail
20marijuana establishment.
214. The division shall review the retail marijuana
22establishment’s operating documents to ensure compliance with
23this section.
24 Sec. 26. NEW SECTION. 124F.9 Retail marijuana establishment
25licensure.
261. Local jurisdictions may adopt and enforce regulations
27for retail marijuana establishments that are at least as
28restrictive as the provisions of this subchapter and any rule
29promulgated pursuant to this subchapter.
302. A retail marijuana establishment shall not operate
31until the retail marijuana establishment is licensed by the
32division pursuant to this subchapter and approved by the
33relevant local jurisdiction. If an application is denied by
34the local licensing authority, the division shall revoke the
35state license. In connection with a license, the applicant
-15-1shall provide a complete and accurate application as required
2by the division.
33. A retail marijuana establishment shall notify the
4division in writing of the name, address, and date of birth of
5a new owner, officer, or manager before the new owner, officer,
6or manager begins managing, owning, working, or otherwise
7associating with the establishment. The owner, officer,
8manager, or employee shall pass a fingerprint-based criminal
9history record check as required by the division and shall
10obtain the required identification prior to managing, owning,
11working, or otherwise associating with the establishment.
12The division shall not deny licensure to a retail marijuana
13establishment on the basis that an owner, officer, manager,
14or employee has been convicted of a crime other than a
15violent crime, as defined in section 915.10, if the person has
16completed any term of probation or parole imposed by the court.
174. Before granting a state license, the division may
18consider, except when this subchapter specifically provides
19otherwise, the requirements of this subchapter and any
20rules promulgated pursuant to this subchapter, and all other
21reasonable restrictions that are or may be placed upon a
22licensee by the division or local licensing authority.
235. a. Each license issued under this subchapter is separate
24and distinct. It is unlawful for a person to exercise any
25of the privileges granted under a license other than the
26license that the person holds or for a licensee to allow any
27other person to exercise the privileges granted under the
28licensee’s license. A separate license shall be required for
29each specific business or business entity and each geographical
30location.
31b. At all times, a licensee shall possess and maintain
32possession of the premises for which the license is issued
33through ownership, lease, rental, or other arrangement for
34possession of the premises.
356. Each licensee shall manage the licensed premises
-16-1personally or employ a separate and distinct manager on
2the premises and shall report the name of the manager to
3the division and local licensing authority. The licensee
4shall report any change in manager to the division and local
5licensing authority within seven days after the change.
6 Sec. 27. NEW SECTION. 124F.10 License renewal.
71. Ninety days prior to the expiration date of an existing
8license, the division shall notify a licensee of the expiration
9date by first class mail at the licensee’s address of record
10with the division. A licensee may apply for the renewal of
11an existing license to the division not less than thirty days
12prior to the date of expiration of the existing license. Upon
13receipt of an application for renewal of an existing license
14and any applicable fees, the division shall submit, within
15seven days of the application, a copy of the application to
16the local jurisdiction to determine whether the application
17complies with all local restrictions on renewal of licenses.
18The division shall not accept an application for renewal of a
19license after the date of expiration, except as provided in
20subsection 3. The division may extend the expiration date of
21the license and accept a late application for renewal of a
22license if the applicant has filed a timely renewal application
23with the local licensing authority. The division or the local
24licensing authority, in its discretion, and subject to the
25requirements of this subsection and subsection 3 and based upon
26reasonable grounds, may waive the thirty-day time requirements
27set forth in this subsection.
282. The division may request additional fingerprints from a
29licensee when there is a demonstrated investigative need.
303. a. Notwithstanding the provisions of subsection 1,
31a licensee whose license has been expired for not more than
32ninety days may file a late renewal application upon the
33payment of a nonrefundable late application fee of five hundred
34dollars to the division. A licensee who files a late renewal
35application and pays the requisite fees may continue to operate
-17-1until the division takes final action to approve or deny
2the licensee’s late renewal application unless the division
3summarily suspends the license pursuant to chapter 17A, this
4subchapter, and rules adopted pursuant to this subchapter.
5b. The division may administratively continue a license
6and accept a later application for renewal of a license at the
7discretion of the division.
8 Sec. 28. NEW SECTION. 124F.11 Classes of licenses.
9For the purpose of regulating the cultivation, manufacture,
10distribution, sale, and testing of retail marijuana and retail
11marijuana products, the division in its discretion, upon
12receipt of an application in the prescribed form, may issue and
13grant to the applicant a license or registration in any of the
14following classes, subject to the provisions and restrictions
15provided by this subchapter:
161. Retail marijuana store license.
172. Retail marijuana cultivation facility license.
183. Retail marijuana products manufacturing license.
194. Occupational licenses and registrations for owners,
20managers, operators, employees, contractors, and other support
21staff employed by, working in, or having access to restricted
22areas of the licensed premises, as determined by the division.
23The division may take any action with respect to a registration
24pursuant to this subchapter as it may with respect to a license
25pursuant to this subchapter, in accordance with the procedures
26established pursuant to this subchapter.
275. Retail marijuana transporter license.
28 Sec. 29. NEW SECTION. 124F.12 Retail marijuana store
29license.
301. a. A retail marijuana store license shall be issued
31by the division only to a person selling retail marijuana or
32retail marijuana products pursuant to the terms and conditions
33of this subchapter.
34b. A retail marijuana store shall not accept any retail
35marijuana purchased from a retail marijuana cultivation
-18-1facility unless the retail marijuana store is provided with
2evidence that any applicable excise tax due was paid.
32. Notwithstanding the provisions of this section, a
4retail marijuana store licensee may also sell retail marijuana
5products that are prepackaged and labeled as required by rules
6of the division pursuant to section 124F.21.
73. a. A retail marijuana store shall not sell more than one
8ounce of retail marijuana or its equivalent in retail marijuana
9products, including retail marijuana concentrate, except for
10nonedible, nonpsychoactive retail marijuana products, including
11ointments, lotions, balms, and other nontransdermal topical
12products to a person.
13b. (1) Prior to initiating a sale, an employee of the
14retail marijuana store making the sale shall verify that
15the purchaser has a valid identification card showing the
16purchaser is twenty-one years of age or older. If a person
17under twenty-one years of age presents fraudulent proof of age,
18any action relying on the fraudulent proof of age shall not be
19grounds for the revocation or suspension of any license issued
20under this subchapter.
21(2) (a) If a retail marijuana store licensee or
22employee has reasonable cause to believe that a person is
23under twenty-one years of age and is exhibiting fraudulent
24proof of age in an attempt to obtain any retail marijuana
25or cannabis-infused product, the licensee or employee is
26authorized to confiscate such fraudulent proof of age, if
27possible, and shall, within seventy-two hours after the
28confiscation, remit such fraudulent proof of age to a state
29or local law enforcement agency. The failure to confiscate
30such fraudulent proof of age or to remit such fraudulent proof
31of age to a state or local law enforcement agency within
32seventy-two hours after the confiscation shall not constitute a
33criminal offense.
34(b) If a retail marijuana store licensee or employee
35believes that a person is under twenty-one years of age and
-19-1presents fraudulent proof of age in an attempt to obtain any
2retail marijuana or retail cannabis-infused product, the
3licensee or employee or any peace officer or police officer,
4acting in good faith and upon probable cause based upon
5reasonable grounds therefor, may detain and question such
6person in a reasonable manner for the purpose of ascertaining
7whether the person is guilty of any unlawful act regarding the
8purchase of retail marijuana. The questioning of a person by a
9licensee, employee, peace officer, or police officer does not
10render the licensee, employee, peace officer, or police officer
11civilly or criminally liable for slander, false arrest, false
12imprisonment, malicious prosecution, or unlawful detention.
134. All retail marijuana and retail marijuana products
14sold at a licensed retail marijuana store shall be packaged
15and labeled as required by rules of the division pursuant to
16section 124F.21.
175. a. A licensed retail marijuana store shall only
18sell retail marijuana, retail marijuana products, marijuana
19accessories, nonconsumable products such as apparel, and
20marijuana-related products such as childproof packaging
21containers, but shall be prohibited from selling or giving
22away any consumable product, including but not limited to
23cigarettes, alcohol, or an edible product that does not contain
24marijuana, including but not limited to sodas, candies, or
25baked goods.
26b. A licensed retail marijuana store shall not sell any
27retail marijuana or retail marijuana products that contain
28nicotine or alcohol, if the sale of the alcohol would require a
29license pursuant to chapter 123.
30c. A licensed retail marijuana store shall not sell retail
31marijuana or retail marijuana products over the internet nor
32deliver retail marijuana or retail marijuana products to a
33person who is not physically present in the retail marijuana
34store’s licensed premises.
356. Retail marijuana or retail marijuana products shall not
-20-1be consumed on the premises of a retail marijuana store.
27. Notwithstanding any other provision of state law, sales
3of retail marijuana and retail marijuana products are not
4exempt from state or local sales tax.
58. The division shall not issue more than one retail
6marijuana store license per county, except that the division
7may, upon receipt of a petition, issue one additional retail
8marijuana store license per one hundred thousand population
9in the county according to the most recent federal decennial
10census.
119. A retail marijuana store may also be licensed as a
12medical cannabis dispensary pursuant to chapter 124E. The
13division shall, in consultation with the department of public
14health, adopt rules for the implementation of this subsection.
15 Sec. 30. NEW SECTION. 124F.13 Retail marijuana cultivation
16facility license.
171. A retail marijuana cultivation facility license shall
18be issued by the division only to a person who cultivates
19retail marijuana for sale and distribution to licensed retail
20marijuana stores, retail marijuana products manufacturing
21licensees, or other retail marijuana cultivation facilities.
222. A retail marijuana cultivation facility shall remit any
23applicable excise tax due.
243. A retail marijuana cultivation facility shall track
25the marijuana it cultivates from seed or immature plant to
26wholesale purchase of the retail marijuana. Prior to delivery
27of any retail marijuana that is sold, the retail marijuana
28cultivation facility shall provide evidence that the facility
29paid any applicable excise tax on the retail marijuana due.
304. A retail marijuana cultivation facility may provide,
31except as required by section 124F.21, a sample of its products
32to the state hygienic laboratory for testing and research
33purposes. A retail marijuana cultivation facility shall
34maintain a record of the sample provided to the state hygienic
35laboratory and the testing results.
-21- 15. Retail marijuana or retail marijuana products shall not
2be consumed on the premises of a retail marijuana cultivation
3facility.
4 Sec. 31. NEW SECTION. 124F.14 Retail marijuana products
5manufacturing license.
61. a. A retail marijuana products manufacturing license
7shall be issued by the division to a person who manufactures
8retail marijuana products pursuant to the terms and conditions
9of this subchapter.
10b. A retail marijuana products manufacturer may cultivate
11its own retail marijuana if the manufacturer obtains a retail
12marijuana cultivation facility license, or it may purchase
13retail marijuana from a licensed retail marijuana cultivation
14facility. A retail marijuana products manufacturer shall track
15all of its retail marijuana from the point the retail marijuana
16is either transferred from its retail marijuana cultivation
17facility or from the point when the retail marijuana is
18delivered to the retail marijuana products manufacturer from a
19licensed retail marijuana cultivation facility to the point of
20transfer to a licensed retail marijuana store.
21c. A retail marijuana products manufacturer shall not
22accept any retail marijuana purchased from a retail marijuana
23cultivation facility unless the retail marijuana products
24manufacturer is provided with evidence that any applicable
25excise tax due was paid.
262. All retail marijuana products shall be prepared on
27a licensed premises used exclusively for the manufacture
28and preparation of retail marijuana or retail marijuana
29products and using equipment that is used exclusively for the
30manufacture and preparation of retail marijuana products;
31except that, if permitted by the local jurisdiction, a
32retail marijuana products manufacturing licensee may share
33the same premises as a medical cannabidiol-infused products
34manufacturing licensee so long as a virtual or physical
35separation of inventory is maintained pursuant to rules
-22-1promulgated by the division.
23. All licensed premises on which retail marijuana products
3are manufactured shall meet the sanitary standards for retail
4marijuana product preparation promulgated pursuant to section
5124F.21.
64. Retail marijuana or retail marijuana products shall not
7be consumed on the premises of a retail marijuana products
8manufacturing facility.
95. A retail marijuana products manufacturer may provide,
10except as required by section 124F.21, a sample of its products
11to the state hygienic laboratory for testing and research
12purposes. A retail marijuana products manufacturer shall
13maintain a record of what was provided to the state hygienic
14laboratory and the results of the testing.
156. A licensed retail marijuana products manufacturer shall
16package and label each product manufactured as required by
17rules of the division pursuant to section 124F.21.
187. All retail marijuana products that require refrigeration
19to prevent spoilage must be stored and transported in a
20refrigerated environment.
21 Sec. 32. NEW SECTION. 124F.15 Retail marijuana use —
22protections.
231. No person shall be subject to arrest, prosecution, or
24penalty in any manner, or be denied any right or privilege,
25including but not limited to disciplinary action by a business,
26occupational, or professional licensing board, solely for
27conduct permitted under this subchapter.
282. a. Except as provided in this section, neither the state
29nor any of its political subdivisions shall impose any penalty
30or deny any benefit or entitlement for conduct permitted
31under this subchapter or for the presence of cannabinoids or
32cannabinoid metabolites in the urine, blood, saliva, breath,
33hair, or other tissue or fluid of a person who is twenty-one
34years of age or older.
35b. Except as provided in this section and section 321J.2C,
-23-1neither the state nor any of its political subdivisions
2shall deny a driver’s license, a professional license,
3housing assistance, social services, or other benefits based
4on marijuana use or for the presence of cannabinoids or
5cannabinoid metabolites in the urine, blood, saliva, breath,
6hair, or other tissue or fluid of a person who is twenty-one
7years of age or older.
83. No person shall be denied custody of or visitation with a
9minor for acting in accordance with this subchapter, unless the
10person’s behavior creates an unreasonable danger to the minor
11that can be clearly articulated and substantiated.
124. Except as provided in this section, neither the state
13nor any of its political subdivisions shall deny employment
14or a contract to a person for engaging in conduct permitted
15under this subchapter, for a prior conviction for a nonviolent
16marijuana offense that does not involve distribution to minors,
17or for testing positive for the presence of cannabinoids or
18cannabinoid metabolites in the urine, blood, saliva, breath,
19hair, or other tissue or fluid of the individual’s body.
205. For the purposes of medical care, including organ and
21tissue transplants, the use of marijuana does not constitute
22the use of an illicit substance or otherwise disqualify a
23person from needed medical care and may only be considered with
24respect to evidence-based clinical criteria.
256. Notwithstanding any other provision of law to the
26contrary, unless there is a specific finding that the
27individual’s use, cultivation, or possession of marijuana could
28create a danger to the individual or another person, it shall
29not be a violation of conditions of parole, probation, or
30pretrial release to do any of the following:
31a. Engage in conduct allowed by this subchapter.
32b. Test positive for marijuana, delta-9
33tetrahydrocannabinol, or any other cannabinoid or metabolite of
34marijuana, except as provided in section 321J.2C.
357. a. This section does not prevent a governmental employer
-24-1from disciplining an employee or contractor for ingesting
2marijuana in the workplace or for working while under the
3influence of marijuana.
4b. The protections provided by this section do not apply to
5the extent that they conflict with a governmental employer’s
6obligations under federal law or regulations or to the extent
7that they would disqualify the entity from a monetary or
8licensing-related benefit under federal law or regulations.
9c. This section does not authorize any person to engage in,
10and does not prevent the imposition of any civil, criminal,
11discipline, or other penalties, including discipline or
12termination by a governmental employer, any task while under
13the influence of marijuana, when doing so would constitute
14negligence or professional malpractice.
15 Sec. 33. NEW SECTION. 124F.16 Discipline.
16In addition to any other sanctions prescribed by this
17subchapter or rules adopted pursuant to this subchapter, the
18division has the power, on its own motion or upon complaint,
19after investigation and opportunity for a public hearing at
20which a licensee must be afforded an opportunity to be heard,
21to fine a licensee or to suspend or revoke a license issued by
22the division for a violation by the licensee or by any of the
23agents or employees of the licensee of the provisions of this
24subchapter, or any of the rules promulgated pursuant to this
25subchapter, or of any of the terms, conditions, or provisions
26of the license issued by the division. The division has the
27power to administer oaths and issue subpoenas to require the
28presence of persons and the production of papers, books, and
29records necessary to the determination of a hearing that the
30division is authorized to conduct. The division shall conduct
31a contested case pursuant to chapter 17A prior to imposing
32discipline, except in the case of an emergency adjudication.
33 Sec. 34. NEW SECTION. 124F.17 Disposition of seized
34materials.
351. This section shall apply in addition to any criminal,
-25-1civil, or administrative penalties and in addition to any
2other penalties prescribed by this subchapter or any rules
3promulgated pursuant to this subchapter.
42. A state or local agency shall not be required to
5cultivate or care for any retail marijuana or retail marijuana
6product belonging to or seized from a licensee. A state or
7local agency shall not be authorized to sell marijuana or
8retail marijuana.
93. If the division issues a final order imposing a
10disciplinary action against a licensee pursuant to section
11124F.16, then, in addition to any other remedies, the
12division’s final order may specify that some or all of the
13licensee’s marijuana or marijuana product is not retail
14marijuana or a retail marijuana product and is an illegal
15controlled substance. The final order may further specify that
16the licensee shall lose any interest in any of the marijuana or
17marijuana product even if the marijuana or marijuana product
18previously qualified as retail marijuana or a retail marijuana
19product.
204. On or before January 1, 2024, the division shall adopt
21rules governing the implementation of this section.
22 Sec. 35. NEW SECTION. 124F.18 Inspection procedures.
231. A licensee shall keep a complete set of all records
24necessary to show fully the business transactions of the
25licensee, all of which shall be accessible at all times during
26business hours for inspection and examination by the division
27or its authorized representatives. The division may require
28a licensee to furnish such information as necessary for the
29proper administration of this subchapter and may require an
30audit to be made of the books of account and records on such
31occasions as necessary by an auditor selected by the division
32who shall have access to all books and records of the licensee.
33All associated expenses shall be paid by the licensee.
342. Any licensed premises, including any places of storage
35where retail marijuana or retail marijuana products are stored,
-26-1cultivated, sold, dispensed, or tested shall be subject to
2inspection by the state or local jurisdictions and their
3investigators, during all business hours and during other times
4when employees are present, for the purpose of inspection
5or investigation. Access shall be required during business
6hours for examination of any inventory or books and records
7required to be kept by the licensees. If any part of the
8licensed premises consists of a locked area, upon demand to
9the licensee, such area shall be made available for inspection
10without delay, and, upon request by authorized representatives
11of the state or local jurisdiction, the licensee shall open the
12area for inspection.
133. A licensee shall retain all books and records necessary
14to show fully the business transactions of the licensee for
15a period of the current tax year and the three immediately
16preceding tax years.
17 Sec. 36. NEW SECTION. 124F.19 Marijuana excise tax.
181. An excise tax is imposed on consumers at the rate of ten
19percent of the sales price of each sale of retail marijuana and
20retail marijuana products.
212. The tax imposed by this section shall be paid by the
22consumer to the retail marijuana establishment. Each retail
23marijuana establishment shall collect from the consumer the
24full amount of the tax payable on each taxable sale.
253. On the fifteenth day of each month, each retail marijuana
26establishment that sells retail marijuana to a consumer shall
27pay the excise taxes due on the retail marijuana that the
28retail marijuana establishment sold in the previous calendar
29month to the division.
30 Sec. 37. NEW SECTION. 124F.20 Occupational licensing —
31protections.
321. A person holding a professional or occupational license
33shall not be subject to professional discipline for providing
34advice or services related to retail marijuana establishments
35or applications to operate retail marijuana establishments on
-27-1the basis that marijuana is illegal under federal law.
22. An applicant for a professional or occupational license
3shall not be denied a license based on previous employment
4related to retail marijuana establishments operating in
5accordance with state law.
6 Sec. 38. NEW SECTION. 124F.21 Rulemaking.
71. The division shall, within one year of the effective
8date of this Act, adopt rules for the implementation of
9this subchapter. The rules shall not prohibit the operation
10of retail marijuana establishments or require such a high
11investment of risk, money, time, or other resource or asset
12that the operation of a retail marijuana establishment is not
13worthy of being carried out in practice by a reasonably prudent
14businessperson. Such rules shall include all of the following:
15a. Procedures for the issuance, renewal, suspension, and
16revocation of a registration to operate a retail marijuana
17establishment, subject to chapter 17A.
18b. A schedule of reasonable application, registration,
19and renewal fees, provided application fees shall not exceed
20five thousand dollars, with this upper limit adjusted annually
21for inflation, unless the division determines a greater fee
22is necessary to carry out its responsibilities under this
23subchapter. Fees shall be collected by the division and used
24to administer this subchapter.
25c. Qualifications for registration that are directly and
26demonstrably related to the operation of a retail marijuana
27establishment and that may not disqualify applicants solely for
28marijuana offenses prior to the effective date of this Act.
29d. Security requirements.
30e. Requirements for the transportation and storage of retail
31marijuana and retail marijuana products by retail marijuana
32establishments.
33f. Requirements for the delivery of retail marijuana and
34retail marijuana products to consumers, including a prohibition
35on business names, logos, and other identifying language or
-28-1images on delivery vehicles and a prohibition on delivering
2retail marijuana and retail marijuana products to any address
3located on land owned by the federal government or any address
4on land or in a building leased by the federal government.
5g. Employment and training requirements, including
6requiring that each retail marijuana establishment create
7an identification badge for each employee or agent. These
8requirements shall not disqualify applicants solely for
9marijuana offenses prior to the effective date of this Act.
10h. Requirements designed to prevent the sale or diversion of
11retail marijuana and retail marijuana products to persons under
12the age of twenty-one.
13i. Requirements for retail marijuana and retail
14marijuana products sold or distributed by a retail marijuana
15establishment, including prohibiting any misleading labeling
16and requiring retail marijuana product labels to include all
17of the following:
18(1) The length of time it typically takes for the product
19to take effect.
20(2) A disclosure of ingredients and possible allergens.
21(3) A nutritional fact panel.
22(4) Requiring opaque, child resistant packaging, which must
23be designed or constructed to be significantly difficult for
24children under five years of age to open and not difficult for
25adults to use properly as defined by 16 C.F.R. §1700.20.
26(5) Requiring that edible retail marijuana products be
27clearly identifiable, when practicable, with a standard symbol
28indicating the retail marijuana product contains marijuana.
29j. Health and safety regulations and standards for the
30manufacture of retail marijuana products and both the indoor
31and outdoor cultivation of retail marijuana by retail marijuana
32establishments.
33k. Restrictions on advertising, marketing, and signage
34including but not limited to a prohibition on mass-market
35campaigns that have a high likelihood of reaching minors.
-29- 1l. Rules to create at least six tiers of retail marijuana
2cultivation facilities, based on the size of the facility or
3the number of plants cultivated, and whether the cultivation
4occurs outdoors, indoors, or in a greenhouse. Security
5regulations and licensing fees must vary based on the size of
6the cultivation facility.
7m. Restrictions or prohibitions on additives in retail
8marijuana and retail marijuana-infused products, including but
9not limited to those that are toxic or designed to make the
10product more addictive.
11n. Prohibitions on products that are designed to make the
12product more appealing to children, including prohibiting the
13use of any images designed or likely to appeal to minors,
14including cartoons, toys, animals, or children, and any other
15images, characters, or phrases that are popularly used to
16advertise to children.
17o. Restrictions on the use of pesticides that are injurious
18to human health.
19p. Rules governing visits to retail marijuana cultivation
20facilities and retail marijuana product manufacturing
21facilities, including requiring the retail marijuana
22establishment to log visitors.
23q. A definition of the amount of delta-9
24tetrahydrocannabinol that constitutes a single serving
25in a retail marijuana product.
26r. Standards for the safe manufacture of marijuana extracts
27and concentrates.
28s. Requirements that educational materials be disseminated
29to consumers who purchase retail marijuana-infused products.
30t. Requirements for random sample testing to ensure quality
31control, including by ensuring that retail marijuana and
32retail marijuana-infused products are accurately labeled for
33potency. Unless the division determines that remediation or
34treatment is sufficient to ensure product safety, the testing
35analysis must include testing for residual solvents, poisons,
-30-1or toxins; harmful chemicals; dangerous molds or mildew; filth;
2and harmful microbials such as E.coli or salmonella and
3pesticides.
4u. Standards for the operation of marijuana testing
5facilities, including requirements for equipment and
6qualifications for personnel.
7v. Civil penalties for the failure to comply with rules
8adopted pursuant to this subchapter. Civil penalties shall
9be collected by the division and used to administer this
10subchapter.
11w. Procedures for collecting taxes levied on retail
12marijuana establishments.
13x. Requirements for on-site consumption establishments,
14including for security, ventilation, odor control, and
15consumption by patrons. These rules may include a prohibition
16on smoking indoors.
17y. Requirements for the verification of licensure in
18transactions between licensees.
192. After consultation with researchers knowledgeable
20about the risks and benefits of marijuana and providing an
21opportunity for public comment, the division shall develop a
22scientifically accurate safety information label or handout
23or both, which shall be available to each adult-use marijuana
24consumer. The label or handout shall include all of the
25following:
26a. Advice about the potential risks of marijuana, including
27all of the following:
28(1) The risks of driving under the influence of marijuana,
29and the fact that doing so is illegal.
30(2) Any adverse effects unique to younger adults, including
31related to the developing mind.
32(3) Potential adverse events and other risks.
33(4) The risks of using marijuana during pregnancy and
34breastfeeding.
35b. The need to safeguard all retail marijuana and retail
-31-1marijuana products from children and pets.
23. The division shall review and update the safety
3information materials at least once every two years to
4ensure they remain accurate. The review period shall include
5soliciting input from researchers knowledgeable about the
6risks and benefits of marijuana and an opportunity for public
7comment.
84. In order to ensure that individual privacy is protected,
9the division shall not require a consumer to provide a
10retail marijuana store with personal information other than
11government-issued identification to determine the consumer’s
12age, and a retail marijuana store shall not be required to
13acquire and record personal information about consumers.
14 Sec. 39. NEW SECTION. 124F.22 Marijuana use by minors —
15prohibited.
16Nothing in this subchapter allows the transfer of marijuana,
17with or without remuneration, to a person under the age of
18twenty-one years, or the use of marijuana by a person under the
19age of twenty-one years.
20 Sec. 40. NEW SECTION. 124F.23 Private property and tenant
21rights.
221. Except as provided in this section, the provisions of
23this subchapter do not require any person, corporation, or any
24other entity that occupies, owns, or controls a property to
25allow the consumption, cultivation, display, sale, or transfer
26of marijuana on or in that property.
272. a. Except as provided in this section, a landlord
28or property manager shall not refuse to rent to a tenant
29or otherwise discriminate against a tenant based on a past
30conviction for a marijuana offense that would have been legal
31under this chapter.
32b. Except as provided in this section, in the case of
33the rental of a residential dwelling, a landlord or property
34manager shall not prohibit the possession of retail marijuana
35or medical cannabis, as defined in section 124E.2, or the
-32-1consumption of retail marijuana or medical cannabis, as defined
2in section 124E.2, by nonsmoking means.
3c. The limitations in this subsection do not apply in any
4of the following circumstances:
5(1) The tenant is a roomer who is not leasing the entire
6residential dwelling.
7(2) The residence is incidental to detention or the
8provision of medical, geriatric, educational, counseling,
9religious, or similar services.
10(3) The residence is a transitional housing or sober living
11facility.
12(4) Failing to prohibit marijuana possession or consumption
13would violate federal law or regulations or cause a landlord
14or property manager to lose a monetary or licensing-related
15benefit under federal law or regulations.
16d. After a warning, a landlord or property manager may take
17action against a tenant if the tenant’s use of marijuana or
18medical cannabis, as defined in section 124E.2, creates an
19odor that interferes with a person’s peaceful enjoyment of the
20person’s home or property.
21 Sec. 41. NEW SECTION. 124F.24 Apportionment of revenue.
22Revenues generated by the marijuana excise tax shall be
23deposited as follows:
241. Thirty-five percent in the community reinvestment fund
25created pursuant to section 124F.25.
262. Thirty-two and one-half percent in the mental health
27services and substance use disorder prevention fund created
28pursuant to section 124F.26.
293. Thirty-two and one-half percent in the local public
30safety fund created pursuant to section 124F.27.
31 Sec. 42. NEW SECTION. 124F.25 Community reinvestment fund.
321. A community reinvestment fund is created under
33the control of the division. Moneys in the fund shall be
34appropriated by the general assembly as provided in subsection
352.
-33- 12. Moneys in the community reinvestment fund shall
2be appropriated exclusively for the purpose of funding
3scholarships for Iowa students for two years of postsecondary
4education at Iowa schools.
53. Notwithstanding section 12C.7, subsection 2, interest
6or earnings on moneys deposited in the community reinvestment
7fund shall be credited to the community reinvestment fund.
8Notwithstanding section 8.33, moneys credited to the community
9reinvestment fund shall not revert at the close of a fiscal
10year.
11 Sec. 43. NEW SECTION. 124F.26 Mental health services and
12substance use disorder prevention fund.
131. A mental health services and substance use disorder
14prevention fund is created under the control of the division.
15Moneys in the fund shall be appropriated by the general
16assembly as provided in subsection 2.
172. Moneys in the mental health services and substance use
18disorder prevention fund shall be appropriated exclusively for
19the purposes of providing mental health services and preventing
20substance use disorders.
213. Notwithstanding section 12C.7, subsection 2, interest or
22earnings on moneys deposited in the mental health services and
23substance use disorder prevention fund shall be credited to the
24mental health services and substance use disorder prevention
25fund. Notwithstanding section 8.33, moneys credited to the
26mental health services and substance use disorder prevention
27fund shall not revert at the close of a fiscal year.
28 Sec. 44. NEW SECTION. 124F.27 Local public safety fund.
291. A local public safety fund is created under the control
30of the division. Moneys in the fund shall be appropriated by
31the general assembly as provided in subsection 2.
322. Moneys in the local public safety fund shall be
33appropriated exclusively for the purposes of supporting local
34law enforcement personnel, fire department personnel, and
35emergency medical personnel in municipalities.
-34- 13. Notwithstanding section 12C.7, subsection 2, interest
2or earnings on moneys deposited in the local public safety
3fund shall be credited to the local public safety fund.
4Notwithstanding section 8.33, moneys credited to the local
5public safety fund shall not revert at the close of a fiscal
6year.
7 Sec. 45. NEW SECTION. 332.1 Definitions.
81. “Department” means the department of revenue.
92. “Director” means the director of the department of
10revenue.
113. “Retail marijuana” means the same as defined in section
12124F.4.
134. “Retail marijuana store” means the same as defined in
14section 124F.4.
155. “Retail sale” means the same as defined in section 423.1.
166. “Surcharge” means a retail marijuana surcharge imposed
17pursuant to this chapter.
18 Sec. 46. NEW SECTION. 332.2 Retail marijuana surcharge.
191. A surcharge may be imposed, in accordance with the
20provisions of this section, by ordinance of the board of
21supervisors of a county that has not prohibited the sale of
22retail marijuana. The surcharge shall be imposed at a rate of
23one percent upon the retail sales price of retail marijuana.
242. The surcharge shall be in addition to the state sales tax
25imposed pursuant to chapter 423, subchapter II, and the local
26sales and services tax imposed pursuant to chapter 423B.
273. a. Within ten days of the passage of an ordinance
28imposing a surcharge, the county auditor shall give written
29notice to the director by sending a copy of the ordinance to
30the director.
31b. A surcharge shall be imposed either January 1 or July 1
32following the notification of the director but not sooner than
33ninety days following the passage of the ordinance imposing the
34surcharge and not sooner than sixty days following notice to
35sellers, as defined in section 423.1.
-35- 1c. A surcharge shall be repealed only on June 30 or December
231 but not sooner than ninety days following repeal of the
3ordinance. At least forty days before the repeal of the
4surcharge, the board of supervisors shall provide notice of the
5action by certified mail to the director of revenue.
64. Upon the remittance of the revenues from the state
7surcharge revenue fund to each county that has imposed a retail
8marijuana surcharge under section 332.4, the revenues shall be
9deposited into the general fund of the county.
10 Sec. 47. NEW SECTION. 332.3 Administration of surcharge.
111. The director shall administer the surcharge imposed
12pursuant to this chapter as nearly as possible in conjunction
13with the administration of state sales tax laws. The director
14shall provide appropriate forms, or provide space on the
15regular state tax forms, for reporting surcharge liability.
162. a. Section 422.25, subsection 4, sections 422.30,
17422.67, and 422.68, section 422.69, subsection 1, sections
18422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14,
19subsection 1, and sections 423.23, 423.24, 423.25, 423.31,
20423.33, 423.35, 423.37 through 423.42, and 423.47, consistent
21with the provisions of this chapter, apply with respect to
22the surcharge authorized under this chapter, in the same
23manner and with the same effect as retail sales taxes within
24the meaning of those statutes. The director may require all
25persons who are engaged in the business of deriving any sales
26price subject to a surcharge under this chapter to register
27with the department. All surcharges collected under this
28chapter are deemed to be held in trust for the state of Iowa and
29the counties imposing the surcharges. County officials shall
30confer with the director of revenue for assistance in drafting
31the ordinance imposing the surcharge. A certified copy of the
32ordinance shall be filed with the director as soon as possible
33after passage.
34b. Frequency of deposits and quarterly reports of the
35surcharge with the department of revenue are governed by the
-36-1provisions in section 423.31. Local surcharge collections
2shall not be included in computation of the total tax to
3determine frequency of filing under section 423.31.
43. a. The director, in consultation with county officials,
5shall collect and account for the surcharge. The director
6shall certify each quarter the amount of the surcharge receipts
7and any interest and penalties to be credited to the county
8account in the state surcharge revenue fund established in
9section 386.3C. County authorities shall not require any
10permit not required by the director of revenue.
11b. All surcharge revenues and interest and penalties
12received or refunded one hundred eighty days or more after
13the date on which the county repeals the surcharge shall be
14deposited in or withdrawn from the general fund of the state.
154. Each county that has imposed a retail marijuana surcharge
16under this chapter shall assist the department in identifying
17new establishments required to impose the surcharge in the
18county. This process shall be ongoing until the surcharge is
19repealed.
20 Sec. 48. NEW SECTION. 332.4 State surcharge revenue fund
21— county accounts.
221. A state surcharge revenue fund is established in the
23state treasury under the control of the department consisting
24of the surcharge revenues collected within each county and
25deposited in the fund pursuant to section 332.3. Revenues
26deposited in the fund are appropriated to the department for
27the purposes of this section.
282. A county account is created within the fund for each
29county imposing a retail marijuana surcharge under this
30chapter.
313. The department shall deposit the revenues described in
32subsection 1 that were collected in a quarter beginning on or
33after the imposition of the surcharge into the appropriate
34county account in the fund.
354. All revenues in each county account within the fund
-37-1shall be remitted quarterly by the department to the county
2that imposed the retail marijuana surcharge for deposit in the
3general fund of the county.
45. The department shall adopt rules pursuant to chapter 17A
5necessary to administer the department’s responsibilities under
6this chapter.
7 Sec. 49. NEW SECTION. 453B.19 Retail marijuana.
8This chapter shall not apply to retail marijuana or retail
9marijuana products produced or sold pursuant to chapter 124F.
10DIVISION III
11medical cannabis
12 Sec. 50. Section 124E.1, Code 2023, is amended to read as
13follows:
14124E.1 Short title.
15This chapter shall be known and may be cited as the “Medical
16Cannabidiol Cannabis Act”.
17 Sec. 51. Section 124E.2, subsection 2, Code 2023, is amended
18by adding the following new paragraph:
19 NEW PARAGRAPH. l. Any other medical condition for which
20the patient’s health care practitioner determines the use of
21medical cannabis could be medically beneficial.
22 Sec. 52. Section 124E.2, subsection 7, Code 2023, is amended
23to read as follows:
247. “Health care practitioner” means an individual licensed
25under chapter 148 to practice medicine and surgery or
26osteopathic medicine and surgery, a physician assistant
27licensed under chapter 148C, an advanced registered nurse
28practitioner licensed under chapter 152, or an advanced
29practice registered nurse under chapter 152E, who is a
30patient’s primary care provider, or a podiatrist licensed
31pursuant to chapter 149, or a pharmacist licensed pursuant
32to chapter 155A who has completed medical cannabis training
33requirements imposed by the board of pharmacy.
34 Sec. 53. Section 124E.3, subsection 1, paragraph a, Code
352023, is amended to read as follows:
-38- 1a. (1) Determine, in the health care practitioner’s medical
2judgment, whether the patient whom the health care practitioner
3has examined and treated suffers from a debilitating medical
4condition that qualifies for the use of medical cannabidiol
5 cannabis under this chapter, and if so determined, provide the
6patient with a written certification of that diagnosis.
7(2) If a health care practitioner determines that the
8patient whom the health care practitioner has examined and
9treated suffers from a debilitating medical condition pursuant
10to section 124E.2, subsection 2, paragraph “l”, that qualifies
11for the use of medical cannabis under this chapter, the health
12care practitioner’s written certification shall be based on
13reasonable medical evidence, and shall be made in good faith,
14in the best interest of the patient, without fraudulent intent,
15and with the same reasonable medical judgment and prudence
16exercised according to generally accepted medical practice.
17 Sec. 54. Section 124E.4, subsection 1, paragraph e, Code
182023, is amended to read as follows:
19e. Submits a medical cannabidiol cannabis registration
20card fee of one hundred ten dollars to the department. If
21the patient attests to receiving social security disability
22benefits, supplemental security insurance payments, or being
23enrolled in the medical assistance program, the fee shall be
24twenty-five dollars submits documentation that the patient is a
25veteran as defined in section 35.1, the department shall waive
26the fee.
27 Sec. 55. Section 124E.4, subsection 3, paragraph c, Code
282023, is amended to read as follows:
29c. Submits a medical cannabidiol cannabis registration card
30fee of twenty-five ten dollars to the department.
31 Sec. 56. Section 124E.5, subsection 1, paragraphs a and b,
32Code 2023, are amended to read as follows:
33a. A medical cannabidiol cannabis board is created
34consisting of eight ten practitioners representing the fields
35of neurology, pain management, gastroenterology, oncology,
-39-1psychiatry, pediatrics, family medicine, physician assistance,
2advanced practice registered nursing, and pharmacy, and one
3representative from law enforcement.
4b. The practitioners shall be licensed in this state and
5nationally board-certified in their area of specialty and
6knowledgeable about the use of medical cannabidiol cannabis.
7 Sec. 57. Section 124E.6, subsection 1, Code 2023, is amended
8to read as follows:
91. a. The department shall issue a request for proposals
10to select and license by December 1, 2017, up to two medical
11cannabidiol cannabis manufacturers to manufacture and to
12possess, cultivate, harvest, transport, package, process,
13or supply medical cannabidiol cannabis within this state
14consistent with the provisions of this chapter. The department
15shall license new medical cannabidiol cannabis manufacturers
16or relicense the existing medical cannabidiol cannabis
17 manufacturers by December 1 of each year.
18b. Information submitted during the application process
19shall be confidential until a medical cannabidiol cannabis
20 manufacturer is licensed by the department unless otherwise
21protected from disclosure under state or federal law.
22 Sec. 58. Section 124E.6, subsection 3, Code 2023, is amended
23by adding the following new paragraph:
24 NEW PARAGRAPH. g. The demand for medical cannabis in the
25state based on an evidence-based analysis performed by the
26department.
27 Sec. 59. Section 124E.7, subsection 12, paragraph c, Code
282023, is amended to read as follows:
29c. A medical cannabidiol cannabis manufacturer shall not
30 may manufacture edible medical cannabidiol cannabis products.
31However, an edible medical cannabis product shall not appear
32in a form or be sold in packaging that would be likely to
33appeal to children. The department shall adopt rules for the
34implementation of this paragraph.
35 Sec. 60. Section 124E.8, subsection 1, Code 2023, is amended
-40-1to read as follows:
21. a. The department shall issue a request for proposals
3to select and license by April 1, 2018, up to five medical
4cannabidiol dispensaries to dispense medical cannabidiol within
5this state consistent with the provisions of this chapter.
6 The department shall license new medical cannabidiol cannabis
7 dispensaries or relicense the existing medical cannabidiol
8 cannabis dispensaries by December 1 of each year.
9b. Information submitted during the application process
10shall be confidential until a medical cannabidiol cannabis
11 dispensary is licensed by the department unless otherwise
12protected from disclosure under state or federal law.
13 Sec. 61. Section 124E.8, subsection 3, Code 2023, is amended
14by adding the following new paragraph:
15 NEW PARAGRAPH. f. The demand for medical cannabis in the
16state based on an evidence-based analysis performed by the
17department.
18 Sec. 62. Section 124E.9, subsection 14, Code 2023, is
19amended to read as follows:
2014. A medical cannabidiol cannabis dispensary shall not
21dispense more than a combined total of four and one-half
22 seventeen grams of total tetrahydrocannabinol to a patient and
23the patient’s primary caregiver in a ninety-day period, except
24as provided in subsection 15.
25 Sec. 63. Section 124E.9, subsection 15, unnumbered
26paragraph 1, Code 2023, is amended to read as follows:
27A medical cannabidiol cannabis dispensary may dispense
28more than a combined total of four and one-half seventeen
29 grams of total tetrahydrocannabinol to a patient and the
30patient’s primary caregiver in a ninety-day period if any of
31the following apply:
32 Sec. 64. Section 124E.9, subsection 15, paragraph b, Code
332023, is amended to read as follows:
34b. The health care practitioner who certified the patient
35to receive a medical cannabidiol cannabis registration
-41-1card certifies that the patient has participated in the
2medical cannabidiol cannabis program and that the health
3care practitioner has determined that four and one-half
4 seventeen grams of total tetrahydrocannabinol in a ninety-day
5period is insufficient to treat the patient’s debilitating
6medical condition. A certification issued pursuant to this
7paragraph shall include a total tetrahydrocannabinol cap deemed
8appropriate by the patient’s health care practitioner.
9 Sec. 65. Section 124E.9, Code 2023, is amended by adding the
10following new subsection:
11 NEW SUBSECTION. 16. A medical cannabis dispensary shall
12share information regarding the dispensation of medical
13cannabis to a patient with the health care practitioner
14who certified the patient to receive a medical cannabis
15registration card upon request of the health care practitioner.
16 Sec. 66. Section 124E.11, subsection 2, paragraph h, Code
172023, is amended to read as follows:
18h. Establish and implement a real-time, statewide medical
19cannabidiol cannabis registry management sale tracking system
20that is available to medical cannabidiol cannabis dispensaries
21on a twenty-four-hour-a-day, seven-day-a-week basis for the
22purpose of verifying that a person is lawfully in possession
23of a medical cannabidiol cannabis registration card issued
24pursuant to this chapter and for tracking the date of the sale
25and quantity of medical cannabidiol cannabis purchased by a
26patient or a primary caregiver. The department may share
27information regarding medical cannabis purchased by a patient
28or a primary caregiver with the health care practitioner who
29certified the patient or primary caregiver to purchase medical
30cannabis.
31 Sec. 67. NEW SECTION. 124E.27 Health care practitioners —
32telemedicine.
331. A health care practitioner who uses telemedicine
34shall establish a valid practitioner-patient relationship
35with the person who receives telemedicine services. A
-42-1practitioner-patient relationship begins when all of the
2following conditions are met:
3a. A person with a health-related matter seeks assistance
4from the health care practitioner.
5b. The health care practitioner agrees to undertake
6diagnosis and treatment of the person.
7c. The person agrees to be treated by the health care
8practitioner, regardless of whether there has been an in-person
9encounter between the health care practitioner and the person.
102. A valid practitioner-patient relationship may be
11established by any of the following:
12a. An in-person medical interview and physical examination.
13b. Through consultation with another health care
14practitioner when the health care practitioner agrees to
15participate in or supervise the patient’s care.
16c. A telemedicine encounter, but only if the standard of
17care does not require an in-person encounter, and in accordance
18with evidence-based standards of practice and telemedicine
19practice guidelines that address the clinical and technological
20aspects of telemedicine.
21 Sec. 68. NEW SECTION. 155A.49 Medical cannabis —
22recommendation.
23The board shall adopt rules establishing the requirements a
24pharmacist must meet prior to recommending the use of medical
25cannabis by a patient pursuant to chapter 124E.
26 Sec. 69. MEDICAL CANNABIDIOL — FEDERAL EXEMPTION TASK
27FORCE. The department of health and human services shall
28convene a task force of legal experts to assist the department
29in executing the department’s responsibilities under 2020 Iowa
30Acts, chapter 1116, section 31.
31DIVISION IV
32MEDICAL CANNABIS — INCOME TAXES
33 Sec. 70. Section 422.7, Code 2023, is amended by adding the
34following new subsection:
35 NEW SUBSECTION. 44. Subtract, to the extent included, the
-43-1amount of business expense for a medical cannabis manufacturer
2or medical cannabis dispensary licensed pursuant to chapter
3124E without regard to section 280E of the Internal Revenue
4Code.
5 Sec. 71. Section 422.35, Code 2023, is amended by adding the
6following new subsection:
7 NEW SUBSECTION. 15. Subtract, to the extent included, the
8amount of business expense for a medical cannabis manufacturer
9or medical cannabis dispensary licensed pursuant to chapter
10124E without regard to section 280E of the Internal Revenue
11Code.
12DIVISION V
13MEDICAL CANNABIs — SALES AND USE TAX
14 Sec. 72. Section 423.3, Code 2023, is amended by adding the
15following new subsection:
16 NEW SUBSECTION. 110. The sales price of the sale of a
17medical cannabidiol product by a medical cannabis manufacturer
18or a medical cannabis dispensary pursuant to chapter 124E.
19DIVISION VI
20MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO MEDICAL CANNABIS —
21CONFORMING CODE CHANGES
22 Sec. 73. Section 124.401, subsection 5, paragraph c, Code
232023, is amended to read as follows:
24c. A person may knowingly or intentionally recommend,
25possess, use, dispense, deliver, transport, or administer
26cannabidiol medical cannabis if the recommendation, possession,
27use, dispensing, delivery, transporting, or administering is in
28accordance with the provisions of chapter 124E. For purposes
29of this paragraph, “cannabidiol” “medical cannabis” means the
30same as defined in section 124E.2.
31 Sec. 74. Section 124E.2, subsections 8, 9, 10, and 11, Code
322023, are amended to read as follows:
338. “Laboratory” means the state hygienic laboratory at
34the university of Iowa in Iowa City or any other independent
35medical cannabidiol cannabis testing facility accredited
-44-1to standard ISO/IEC 17025 by an international organization
2for standards-approved accrediting body, with a controlled
3substance registration certificate from the United States drug
4enforcement administration and a certificate of registration
5from the board of pharmacy. For the purposes of this chapter,
6an independent laboratory is a laboratory operated by an entity
7that has no equity ownership in a medical cannabidiol cannabis
8 manufacturer.
99. “Marijuana” means any derivative of marijuana including
10but not limited to medical cannabidiol cannabis.
1110. “Medical cannabidiol” “Medical cannabis” means any
12pharmaceutical grade cannabinoid found in the plant Cannabis
13sativa L. or Cannabis indica or any other preparation thereof
14that is delivered in a form recommended by the medical
15cannabidiol cannabis board, approved by the board of medicine,
16and adopted by the department pursuant to rule.
1711. “Primary caregiver” means a person who is a resident of
18this state or a bordering state as defined in section 331.910,
19including but not limited to a parent or legal guardian, at
20least eighteen years of age, who has been designated by a
21patient’s health care practitioner as a necessary caretaker
22taking responsibility for managing the well-being of the
23patient with respect to the use of medical cannabidiol cannabis
24 pursuant to the provisions of this chapter.
25 Sec. 75. Section 124E.3, subsection 1, unnumbered paragraph
261, Code 2023, is amended to read as follows:
27Prior to a patient’s submission of an application for a
28medical cannabidiol cannabis registration card pursuant to
29section 124E.4, a health care practitioner shall do all of the
30following:
31 Sec. 76. Section 124E.3, subsection 1, paragraph b, Code
322023, is amended to read as follows:
33b. Provide explanatory information as provided by the
34department to the patient about the therapeutic use of medical
35cannabidiol cannabis and the possible risks, benefits, and side
-45-1effects of the proposed treatment.
2 Sec. 77. Section 124E.4, subsection 1, unnumbered paragraph
31, Code 2023, is amended to read as follows:
4Subject to subsection 6, the department may issue a medical
5cannabidiol cannabis registration card to a patient who:
6 Sec. 78. Section 124E.4, subsection 2, unnumbered paragraph
71, Code 2023, is amended to read as follows:
8A medical cannabidiol cannabis registration card issued to
9a patient by the department pursuant to subsection 1 shall
10contain, at a minimum, all of the following:
11 Sec. 79. Section 124E.4, subsection 2, paragraph b, Code
122023, is amended to read as follows:
13b. The date of issuance and expiration date of the medical
14cannabidiol cannabis registration card.
15 Sec. 80. Section 124E.4, subsection 3, unnumbered paragraph
161, Code 2023, is amended to read as follows:
17For a patient in a primary caregiver’s care, subject to
18subsection 6, the department may issue a medical cannabidiol
19 cannabis registration card to the primary caregiver who:
20 Sec. 81. Section 124E.4, subsection 4, unnumbered paragraph
211, Code 2023, is amended to read as follows:
22A medical cannabidiol cannabis registration card issued by
23the department to a primary caregiver pursuant to subsection 3
24shall contain, at a minimum, all of the following:
25 Sec. 82. Section 124E.4, subsection 4, paragraph c, Code
262023, is amended to read as follows:
27c. The medical cannabidiol cannabis registration card
28number of each patient in the primary caregiver’s care. If
29the patient in the primary caregiver’s care is under the age
30of eighteen, the full name of the patient’s parent or legal
31guardian.
32 Sec. 83. Section 124E.4, subsections 5 and 6, Code 2023, are
33amended to read as follows:
345. Expiration date of card. A medical cannabidiol cannabis
35 registration card issued pursuant to this section shall expire
-46-1one year after the date of issuance and may be renewed.
26. Federally approved clinical trials. The department shall
3not approve the issuance of a medical cannabidiol cannabis
4 registration card pursuant to this section for a patient who
5is enrolled in a federally approved clinical trial for the
6treatment of a debilitating medical condition with medical
7cannabidiol cannabis.
8 Sec. 84. Section 124E.5, subsections 2, 3, 4, 5, and 6, Code
92023, are amended to read as follows:
102. The medical cannabidiol cannabis board shall convene at
11least twice per year.
123. The duties of the medical cannabidiol cannabis board
13shall include but not be limited to the following:
14a. Accepting and reviewing petitions to add medical
15conditions, medical treatments, or debilitating diseases to the
16list of debilitating medical conditions for which the medical
17use of cannabidiol cannabis would be medically beneficial under
18this chapter.
19b. Making recommendations relating to the removal or
20addition of debilitating medical conditions to the list
21of allowable debilitating medical conditions for which the
22medical use of cannabidiol cannabis under this chapter would
23be medically beneficial.
24c. Working with the department regarding the requirements
25for the licensure of medical cannabidiol cannabis manufacturers
26and medical cannabidiol dispensaries, including licensure
27procedures.
28d. Advising the department regarding the location of medical
29cannabidiol cannabis manufacturers and medical cannabidiol
30 cannabis dispensaries throughout the state.
31e. Making recommendations relating to the form and quantity
32of allowable medical uses of cannabidiol cannabis.
334. Recommendations made by the medical cannabidiol cannabis
34 board pursuant to subsection 3, paragraphs “b” and “e”, shall
35be made to the board of medicine for consideration, and if
-47-1approved, shall be adopted by the board of medicine by rule.
25. On or before January 1 of each year, beginning January
31, 2018, the medical cannabidiol cannabis board shall submit a
4report detailing the activities of the board.
56. The general assembly shall have the sole authority
6to revise the definition of medical cannabidiol cannabis for
7purposes of this chapter.
8 Sec. 85. Section 124E.6, subsections 2, 3, 4, and 5, Code
92023, are amended to read as follows:
102. As a condition for licensure, a medical cannabidiol
11 cannabis manufacturer must agree to begin supplying medical
12cannabidiol cannabis to medical cannabidiol cannabis
13 dispensaries in this state no later than December 1, 2018.
143. The department shall consider the following factors in
15determining whether to select and license a medical cannabidiol
16 cannabis manufacturer:
17a. The technical expertise of the medical cannabidiol
18 cannabis manufacturer regarding medical cannabidiol cannabis.
19b. The qualifications of the medical cannabidiol cannabis
20 manufacturer’s employees.
21c. The long-term financial stability of the medical
22cannabidiol cannabis manufacturer.
23d. The ability to provide appropriate security measures on
24the premises of the medical cannabidiol cannabis manufacturer.
25e. Whether the medical cannabidiol cannabis manufacturer
26has demonstrated an ability to meet certain medical cannabidiol
27 cannabis production needs for medical use regarding the range
28of recommended dosages for each debilitating medical condition,
29the range of chemical compositions of any plant of the genus
30cannabis that will likely be medically beneficial for each
31of the debilitating medical conditions, and the form of the
32medical cannabidiol cannabis in the manner determined by the
33department pursuant to rule.
34f. The medical cannabidiol cannabis manufacturer’s
35projection of and ongoing assessment of fees on patients with
-48-1debilitating medical conditions.
24. A medical cannabidiol cannabis manufacturer shall
3contract with a laboratory to perform spot-check testing of
4the medical cannabidiol cannabis produced by the medical
5cannabidiol cannabis manufacturer as provided in section
6124E.7. The department shall require that the laboratory
7report testing results to the medical cannabidiol cannabis
8 manufacturer and the department as determined by the department
9by rule. If a medical cannabidiol cannabis manufacturer
10contracts with a laboratory other than the state hygienic
11laboratory at the university of Iowa in Iowa City, the
12department shall approve the laboratory to perform testing
13pursuant to this chapter.
145. Each entity submitting an application for licensure
15as a medical cannabidiol cannabis manufacturer shall pay a
16nonrefundable application fee of seven thousand five hundred
17dollars to the department.
18 Sec. 86. Section 124E.7, subsections 1, 2, 3, 4, 5, 6, 7, 8,
199, 10, and 11, Code 2023, are amended to read as follows:
201. A medical cannabidiol cannabis manufacturer shall
21contract with a laboratory to perform spot-check testing of
22the medical cannabidiol cannabis produced by the medical
23cannabidiol cannabis manufacturer as to content, contamination,
24and consistency. The cost of all laboratory testing shall be
25paid by the medical cannabidiol cannabis manufacturer.
262. The operating documents of a medical cannabidiol
27 cannabis manufacturer shall include all of the following:
28a. Procedures for the oversight of the medical cannabidiol
29 cannabis manufacturer and procedures to ensure accurate
30recordkeeping.
31b. Procedures for the implementation of appropriate security
32measures to deter and prevent the theft of medical cannabidiol
33 cannabis and unauthorized entrance into areas containing
34medical cannabidiol cannabis.
353. A medical cannabidiol cannabis manufacturer shall
-49-1implement security requirements, including requirements for
2protection of each location by a fully operational security
3alarm system, facility access controls, perimeter intrusion
4detection systems, and a personnel identification system.
54. A medical cannabidiol cannabis manufacturer shall
6not share office space with, refer patients to, or have any
7financial relationship with a health care practitioner.
85. A medical cannabidiol cannabis manufacturer shall not
9permit any person to consume medical cannabidiol cannabis on
10the property of the medical cannabidiol cannabis manufacturer.
116. A medical cannabidiol cannabis manufacturer is subject
12to reasonable inspection by the department.
137. A medical cannabidiol cannabis manufacturer shall not
14employ a person who is under eighteen years of age or who has
15been convicted of a disqualifying felony offense. An employee
16of a medical cannabidiol cannabis manufacturer shall be subject
17to a background investigation conducted by the division of
18criminal investigation of the department of public safety and a
19national criminal history background check pursuant to section
20124E.19.
218. A medical cannabidiol cannabis manufacturer owner shall
22not have been convicted of a disqualifying felony offense and
23shall be subject to a background investigation conducted by
24the division of criminal investigation of the department of
25public safety and a national criminal history background check
26pursuant to section 124E.19.
279. A medical cannabidiol cannabis manufacturer shall not
28operate at the same physical location as a medical cannabidiol
29 cannabis dispensary.
3010. A medical cannabidiol cannabis manufacturer shall not
31operate in any location, whether for manufacturing, possessing,
32cultivating, harvesting, transporting, packaging, processing,
33or supplying, within one thousand feet of a public or private
34school existing before the date of the medical cannabidiol
35 cannabis manufacturer’s licensure by the department.
-50- 111. A medical cannabidiol cannabis manufacturer shall
2comply with reasonable restrictions set by the department
3relating to signage, marketing, display, and advertising of
4medical cannabidiol cannabis.
5 Sec. 87. Section 124E.7, subsection 12, paragraphs a and b,
6Code 2023, are amended to read as follows:
7a. A medical cannabidiol cannabis manufacturer shall provide
8a reliable and ongoing supply of medical cannabidiol cannabis
9 to medical cannabidiol cannabis dispensaries pursuant to this
10chapter.
11b. All manufacturing, cultivating, harvesting, packaging,
12and processing of medical cannabidiol cannabis shall take place
13in an enclosed, locked facility at a physical address provided
14to the department during the licensure process.
15 Sec. 88. Section 124E.8, subsections 2, 3, and 4, Code 2023,
16are amended to read as follows:
172. As a condition for licensure, a medical cannabidiol
18 cannabis dispensary must agree to begin supplying medical
19cannabidiol cannabis to patients by December 1, 2018.
203. The department shall consider the following factors in
21determining whether to select and license a medical cannabidiol
22 cannabis dispensary:
23a. The technical expertise of the medical cannabidiol
24 cannabis dispensary regarding medical cannabidiol cannabis.
25b. The qualifications of the medical cannabidiol cannabis
26 dispensary’s employees.
27c. The long-term financial stability of the medical
28cannabidiol cannabis dispensary.
29d. The ability to provide appropriate security measures on
30the premises of the medical cannabidiol cannabis dispensary.
31e. The medical cannabidiol cannabis dispensary’s projection
32and ongoing assessment of fees for the purchase of medical
33cannabidiol cannabis on patients with debilitating medical
34conditions.
354. Each entity submitting an application for licensure
-51-1as a medical cannabidiol cannabis dispensary shall pay a
2nonrefundable application fee of five thousand dollars to the
3department.
4 Sec. 89. Section 124E.9, subsections 1, 2, 3, 4, 5, 6, 7,
58, 9, 10, 11, 12, and 13, Code 2023, are amended to read as
6follows:
71. a. The medical cannabidiol cannabis dispensaries shall
8be located based on geographical need throughout the state to
9improve patient access.
10b. A medical cannabidiol cannabis dispensary may dispense
11medical cannabidiol cannabis pursuant to the provisions of this
12chapter but shall not dispense any medical cannabidiol cannabis
13 in a form or quantity other than the form or quantity allowed
14by the department pursuant to rule.
152. The operating documents of a medical cannabidiol
16 cannabis dispensary shall include all of the following:
17a. Procedures for the oversight of the medical cannabidiol
18 cannabis dispensary and procedures to ensure accurate
19recordkeeping.
20b. Procedures for the implementation of appropriate security
21measures to deter and prevent the theft of medical cannabidiol
22 cannabis and unauthorized entrance into areas containing
23medical cannabidiol cannabis.
243. A medical cannabidiol cannabis dispensary shall
25implement security requirements, including requirements for
26protection by a fully operational security alarm system,
27facility access controls, perimeter intrusion detection
28systems, and a personnel identification system.
294. A medical cannabidiol cannabis dispensary shall not
30share office space with, refer patients to, or have any
31financial relationship with a health care practitioner.
325. A medical cannabidiol cannabis dispensary shall not
33permit any person to consume medical cannabidiol cannabis on
34the property of the medical cannabidiol cannabis dispensary.
356. A medical cannabidiol cannabis dispensary is subject to
-52-1reasonable inspection by the department.
27. A medical cannabidiol cannabis dispensary shall not
3employ a person who is under eighteen years of age or who has
4been convicted of a disqualifying felony offense. An employee
5of a medical cannabidiol cannabis dispensary shall be subject
6to a background investigation conducted by the division of
7criminal investigation of the department of public safety and a
8national criminal history background check pursuant to section
9124E.19.
108. A medical cannabidiol cannabis dispensary owner shall
11not have been convicted of a disqualifying felony offense and
12shall be subject to a background investigation conducted by
13the division of criminal investigation of the department of
14public safety and a national criminal history background check
15pursuant to section 124E.19.
169. A medical cannabidiol cannabis dispensary shall not
17operate at the same physical location as a medical cannabidiol
18 cannabis manufacturer.
1910. A medical cannabidiol cannabis dispensary shall not
20operate in any location within one thousand feet of a public
21or private school existing before the date of the medical
22cannabidiol cannabis dispensary’s licensure by the department.
2311. A medical cannabidiol cannabis dispensary shall comply
24with reasonable restrictions set by the department relating
25to signage, marketing, display, and advertising of medical
26cannabidiol cannabis.
2712. Prior to dispensing of any medical cannabidiol
28 cannabis, a medical cannabidiol cannabis dispensary shall do
29all of the following:
30a. Verify that the medical cannabidiol cannabis dispensary
31has received a valid medical cannabidiol cannabis registration
32card from a patient or a patient’s primary caregiver, if
33applicable.
34b. Assign a tracking number to any medical cannabidiol
35 cannabis dispensed from the medical cannabidiol cannabis
-53-1 dispensary.
2c. Properly package medical cannabidiol cannabis in
3compliance with federal law regarding child resistant packaging
4and exemptions for packaging for elderly patients, and
5label medical cannabidiol cannabis with a list of all active
6ingredients and individually identifying information.
713. A medical cannabidiol cannabis dispensary shall employ
8a pharmacist or pharmacy technician licensed or registered
9pursuant to chapter 155A for the purpose of making dosing
10recommendations.
11 Sec. 90. Section 124E.9, subsection 15, paragraph a, Code
122023, is amended to read as follows:
13a. The health care practitioner who certified the patient
14to receive a medical cannabidiol cannabis registration card
15certifies that patient’s debilitating medical condition is a
16terminal illness with a life expectancy of less than one year.
17A certification issued pursuant to this paragraph shall include
18a total tetrahydrocannabinol cap deemed appropriate by the
19patient’s health care practitioner.
20 Sec. 91. Section 124E.10, Code 2023, is amended to read as
21follows:
22124E.10 Fees.
23All fees collected by the department under this chapter
24shall be retained by the department for operation of the
25medical cannabidiol cannabis registration card program and
26the medical cannabidiol cannabis manufacturer and medical
27cannabidiol cannabis dispensary licensing programs. The moneys
28retained by the department shall be considered repayment
29receipts as defined in section 8.2 and shall be used for any of
30the department’s duties under this chapter, including but not
31limited to the addition of full-time equivalent positions for
32program services and investigations. Notwithstanding section
338.33, moneys retained by the department pursuant to this
34section shall not revert to the general fund of the state but
35shall remain available for expenditure only for the purposes
-54-1specified in this section.
2 Sec. 92. Section 124E.11, subsection 1, paragraph a, Code
32023, is amended to read as follows:
4a. The department shall maintain a confidential file of the
5names of each patient to or for whom the department issues a
6medical cannabidiol cannabis registration card and the name of
7each primary caregiver to whom the department issues a medical
8cannabidiol cannabis registration card under section 124E.4.
9 Sec. 93. Section 124E.11, subsection 1, paragraph b,
10subparagraph (1), subparagraph divisions (b), (c), and (d),
11Code 2023, are amended to read as follows:
12(b) To authorized employees of law enforcement agencies
13of a state or political subdivision thereof, but only for the
14purpose of verifying that a person is lawfully in possession
15of a medical cannabidiol cannabis registration card issued
16pursuant to this chapter.
17(c) To authorized employees of a medical cannabidiol
18 cannabis dispensary, but only for the purposes of verifying
19that a person is lawfully in possession of a medical
20cannabidiol cannabis registration card issued pursuant
21to this chapter and that a person has not purchased total
22tetrahydrocannabinol in excess of the amount authorized by this
23chapter.
24(d) To any other authorized persons recognized by the
25department by rule, but only for the purpose of verifying that
26a person is lawfully in possession of a medical cannabidiol
27 cannabis registration card issued pursuant to this chapter.
28 Sec. 94. Section 124E.11, subsection 2, paragraphs a, b, c,
29d, e, f, g, and i, Code 2023, are amended to read as follows:
30a. Govern the manner in which the department shall consider
31applications for new and renewal medical cannabidiol cannabis
32 registration cards.
33b. Ensure that the medical cannabidiol cannabis registration
34card program operates on a self-sustaining basis.
35c. Establish the form and quantity of medical cannabidiol
-55-1 cannabis allowed to be dispensed to a patient or primary
2caregiver pursuant to this chapter as appropriate to serve the
3medical needs of patients with debilitating medical conditions,
4subject to recommendation by the medical cannabidiol cannabis
5 board and approval by the board of medicine.
6d. Establish requirements for the licensure of medical
7cannabidiol cannabis manufacturers and medical cannabidiol
8 cannabis dispensaries and set forth procedures for medical
9cannabidiol cannabis manufacturers and medical cannabidiol
10 cannabis dispensaries to obtain licenses.
11e. Develop a dispensing system for medical cannabidiol
12 cannabis within this state that provides for all of the
13following:
14(1) Medical cannabidiol cannabis dispensaries within this
15state housed on secured grounds and operated by licensed
16medical cannabidiol cannabis dispensaries.
17(2) The dispensing of medical cannabidiol cannabis to
18patients and their primary caregivers to occur at locations
19designated by the department.
20f. Establish and collect annual fees from medical
21cannabidiol cannabis manufacturers and medical cannabidiol
22 cannabis dispensaries to cover the costs associated with
23regulating and inspecting medical cannabidiol cannabis
24 manufacturers and medical cannabidiol cannabis dispensaries.
25g. Specify and implement procedures that address public
26safety including security procedures and product quality
27including measures to ensure contaminant-free cultivation of
28medical cannabidiol cannabis, safety, and labeling.
29i. Establish and implement a medical cannabidiol cannabis
30 inventory and delivery tracking system to track medical
31cannabidiol cannabis from production by a medical cannabidiol
32 cannabis manufacturer through dispensing at a medical
33cannabidiol cannabis dispensary.
34 Sec. 95. Section 124E.12, Code 2023, is amended to read as
35follows:
-56- 1124E.12 Use of medical cannabidiol cannabis — affirmative
2defenses.
31. A health care practitioner, including any authorized
4agent or employee thereof, shall not be subject to
5prosecution for the unlawful certification, possession, or
6administration of marijuana under the laws of this state for
7activities arising directly out of or directly related to the
8certification or use of medical cannabidiol cannabis in the
9treatment of a patient diagnosed with a debilitating medical
10condition as authorized by this chapter.
112. A medical cannabidiol cannabis manufacturer, including
12any authorized agent or employee thereof, shall not be subject
13to prosecution for manufacturing, possessing, cultivating,
14harvesting, transporting, packaging, processing, or supplying
15medical cannabidiol cannabis pursuant to this chapter.
163. A medical cannabidiol cannabis dispensary, including
17any authorized agent or employee thereof, shall not be subject
18to prosecution for dispensing medical cannabidiol cannabis
19 pursuant to this chapter.
204. a. In a prosecution for the unlawful possession of
21marijuana under the laws of this state for the possession
22of medical cannabidiol cannabis, including but not limited
23to chapters 124 and 453B, it is an affirmative and complete
24defense to the prosecution that the patient has been diagnosed
25with a debilitating medical condition, used or possessed
26medical cannabidiol cannabis pursuant to a certification by a
27health care practitioner as authorized under this chapter, and,
28for a patient eighteen years of age or older, is in possession
29of a valid medical cannabidiol cannabis registration card
30issued pursuant to this chapter.
31b. In a prosecution for the unlawful possession of marijuana
32under the laws of this state for the possession of medical
33cannabidiol cannabis, including but not limited to chapters
34124 and 453B, it is an affirmative and complete defense to
35the prosecution that the person possessed medical cannabidiol
-57-1 cannabis because the person is a primary caregiver of a patient
2who has been diagnosed with a debilitating medical condition
3and is in possession of a valid medical cannabidiol cannabis
4 registration card issued pursuant to this chapter, and where
5the primary caregiver’s possession of the medical cannabidiol
6 cannabis is on behalf of the patient and for the patient’s use
7only as authorized under this chapter.
8c. If a patient or primary caregiver is charged with
9the unlawful possession of marijuana under the laws of this
10state for the possession of medical cannabidiol cannabis,
11including but not limited to chapters 124 and 453B, and is not
12in possession of the person’s medical cannabidiol cannabis
13 registration card, any charge or charges filed against the
14person for the possession of medical cannabidiol cannabis
15 shall be dismissed by the court if the person produces to the
16court prior to or at the person’s trial a medical cannabidiol
17 cannabis registration card issued to that person and valid at
18the time the person was charged.
195. An agency of this state or a political subdivision
20thereof, including any law enforcement agency, shall not remove
21or initiate proceedings to remove a patient under the age
22of eighteen from the home of a parent based solely upon the
23parent’s or patient’s possession or use of medical cannabidiol
24 cannabis as authorized under this chapter.
256. The department and any health care practitioner,
26including any authorized agent or employee thereof, are not
27subject to any civil or disciplinary penalties by the board
28of medicine or any business, occupational, or professional
29licensing board or entity, solely for activities conducted
30relating to a patient’s possession or use of medical
31cannabidiol cannabis as authorized under this chapter. Nothing
32in this section affects a professional licensing board from
33taking action in response to violations of any other section
34of law.
357. Notwithstanding any law to the contrary, the department,
-58-1the governor, or any employee of any state agency shall not
2be held civilly or criminally liable for any injury, loss
3of property, personal injury, or death caused by any act or
4omission while acting within the scope of office or employment
5as authorized under this chapter.
68. An attorney shall not be subject to disciplinary action
7by the Iowa supreme court or attorney disciplinary board for
8providing legal assistance to a patient, primary caregiver, or
9others based upon a patient’s or primary caregiver’s possession
10or use of medical cannabidiol cannabis as authorized under this
11chapter.
129. Possession of a medical cannabidiol cannabis
13 registration card or an application for a medical cannabidiol
14 cannabis registration card by a person entitled to possess or
15apply for a medical cannabidiol cannabis registration card
16shall not constitute probable cause or reasonable suspicion,
17and shall not be used to support a search of the person or
18property of the person possessing or applying for the medical
19cannabidiol cannabis registration card, or otherwise subject
20the person or property of the person to inspection by any
21governmental agency.
22 Sec. 96. Section 124E.13, Code 2023, is amended to read as
23follows:
24124E.13 Medical cannabidiol cannabis source.
25Medical cannabidiol cannabis provided exclusively pursuant
26to a written certification of a health care practitioner, if
27not legally available in this state or from any other bordering
28state, shall be obtained from an out-of-state source.
29 Sec. 97. Section 124E.14, Code 2023, is amended to read as
30follows:
31124E.14 Out-of-state medical cannabidiol cannabis
32 dispensaries.
33The department of public health shall utilize a request for
34proposals process to select and license by December 1, 2017, up
35to two out-of-state medical cannabidiol cannabis dispensaries
-59-1from a bordering state to sell and dispense medical cannabidiol
2 cannabis to a patient or primary caregiver in possession of a
3valid medical cannabidiol cannabis registration card issued
4under this chapter.
5 Sec. 98. Section 124E.15, Code 2023, is amended to read as
6follows:
7124E.15 Iowa patients and primary caregivers registering in
8the state of Minnesota.
9A patient or a primary caregiver with a valid medical
10cannabidiol cannabis registration card issued pursuant to this
11chapter may register in the state of Minnesota as a visiting
12qualified patient or primary caregiver and may register with
13one or more medical cannabis manufacturers registered under the
14laws of Minnesota.
15 Sec. 99. Section 124E.16, Code 2023, is amended to read as
16follows:
17124E.16 Penalties.
181. A person who knowingly or intentionally possesses or uses
19medical cannabidiol cannabis in violation of the requirements
20of this chapter is subject to the penalties provided under
21chapters 124 and 453B.
222. A medical cannabidiol cannabis manufacturer or a medical
23cannabidiol cannabis dispensary shall be assessed a civil
24penalty of up to one thousand dollars per violation for any
25violation of this chapter in addition to any other applicable
26penalties.
27 Sec. 100. Section 124E.17, Code 2023, is amended to read as
28follows:
29124E.17 Use of medical cannabidiol cannabis — smoking
30prohibited.
31A patient shall not consume medical cannabidiol cannabis
32 possessed or used as authorized under this chapter by smoking
33medical cannabidiol cannabis.
34 Sec. 101. Section 124E.18, Code 2023, is amended to read as
35follows:
-60- 1124E.18 Reciprocity.
2A valid medical cannabidiol cannabis registration card,
3or its equivalent, issued under the laws of another state
4that allows an out-of-state patient to possess or use medical
5cannabidiol cannabis in the jurisdiction of issuance shall
6have the same force and effect as a valid medical cannabidiol
7 cannabis registration card issued pursuant to this chapter,
8except that an out-of-state patient in this state shall not
9obtain medical cannabidiol cannabis from a medical cannabidiol
10 cannabis dispensary in this state.
11 Sec. 102. Section 124E.19, subsections 1, 2, and 4, Code
122023, are amended to read as follows:
131. The division of criminal investigation of the
14department of public safety shall conduct thorough background
15investigations for the purposes of licensing medical
16cannabidiol cannabis manufacturers and medical cannabidiol
17 cannabis dispensaries under this chapter. The results of any
18background investigation conducted pursuant to this section
19shall be presented to the department.
20a. An applicant for a medical cannabidiol cannabis
21 manufacturer license or a medical cannabidiol cannabis
22 dispensary license and their owners, investors, and employees
23shall submit all required information on a form prescribed by
24the department of public safety.
25b. The department shall charge an applicant for a medical
26cannabidiol cannabis manufacturer license or a medical
27cannabidiol cannabis dispensary license a fee determined by
28the department of public safety and adopted by the department
29by rule to defray the costs associated with background
30investigations conducted pursuant to the requirements of this
31section. The fee shall be in addition to any other fees
32charged by the department. The fee may be retained by the
33department of public safety and shall be considered repayment
34receipts as defined in section 8.2.
352. The department shall require an applicant for a
-61-1medical cannabidiol cannabis manufacturer license or a
2medical cannabidiol cannabis dispensary license, their owners
3and investors, and applicants for employment at a medical
4cannabidiol cannabis manufacturer or medical cannabidiol
5 cannabis dispensary to submit fingerprints and other required
6identifying information to the department on a form prescribed
7by the department of public safety. The department shall
8submit the fingerprint cards and other identifying information
9to the division of criminal investigation of the department
10of public safety for submission to the federal bureau of
11investigation for the purpose of conducting a national criminal
12history record check. The department may require employees and
13contractors involved in carrying out a background investigation
14to submit fingerprints and other identifying information for
15the same purpose.
164. An applicant for a medical cannabidiol cannabis
17 manufacturer license or a medical cannabidiol cannabis
18 dispensary license shall submit information and fees required
19by this section at the time of application.
20 Sec. 103. Section 124E.20, Code 2023, is amended to read as
21follows:
22124E.20 Observational effectiveness study.
23The department may conduct an observational effectiveness
24study in cooperation with patients and health care
25practitioners and pursuant to rules of the department in order
26to study the effectiveness of medical cannabidiol cannabis in
27the treatment of debilitating medical conditions.
28 Sec. 104. Section 204.17, subsection 4, Code 2023, is
29amended to read as follows:
304. Nothing in this chapter shall be construed or applied
31to authorize a person to manufacture, recommend, possess, use,
32dispense, deliver, transport, or administer medical cannabidiol
33 cannabis pursuant to chapter 124E.
34 Sec. 105. Section 730.5, subsection 11, paragraph f, Code
352023, is amended to read as follows:
-62- 1f. Testing or taking action against an employee or
2prospective employee with a confirmed positive test result due
3to the employee’s or prospective employee’s use of medical
4cannabidiol cannabis as authorized under chapter 124E.
5DIVISION VII
6effective date
7 Sec. 106. EFFECTIVE DATE. This Act, being deemed of
8immediate importance, takes effect upon enactment, except that
9the alcoholic beverages division of the department of commerce
10shall not issue a license to operate a retail marijuana
11establishment prior to January 1, 2024.
12DIVISION VIII
13code editor directive
14 Sec. 107. CODE EDITOR DIRECTIVE — SUBCHAPTER DESIGNATIONS.
151. The Code editor is directed to create two new subchapters
16in chapter 124F as follows:
17a. Subchapter I shall be entitled “CRIMINAL PENALTIES” and
18include sections 124F.1 through 124F.3.
19b. Subchapter II shall be entitled “RETAIL MARIJUANA” and
20include sections 124F.4 through 124F.27.
212. The Code editor may modify subchapter titles if necessary
22and is directed to correct internal references in the Code as
23necessary due to enactment of this section.
24EXPLANATION
25The inclusion of this explanation does not constitute agreement with
26the explanation’s substance by the members of the general assembly.
27This bill relates to marijuana, including retail marijuana
28and medical cannabis.
29DIVISION I — MARIJUANA — CRIMINAL PENALTIES. The
30bill modifies criminal penalties relating to marijuana by
31eliminating and modifying certain criminal provisions in
32Code chapter 124 (uniform controlled substances Act), and
33transferring certain criminal provisions from Code chapter 124
34to new Code chapter 124F.
35MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER
-63-1MARIJUANA. The bill provides that an unauthorized person
2commits a class “C” felony punishable by confinement for
3no more than 10 years and a fine of at least $1,370 but not
4more than $13,660 if the person violates new Code section
5124F.2(1)(a) and the controlled substance involves more than
650 kilograms of marijuana. Currently, such a person commits
7a class “B” felony punishable by confinement of no more than
850 years if the controlled substance involves more than 1,000
9kilograms of a mixture or substance containing a detectable
10amount of marijuana, or a class “B” felony punishable by
11confinement of no more than 25 years if the controlled
12substance involves more than 100 kilograms of marijuana but not
13more than 1,000 kilograms.
14The bill provides that an unauthorized person commits a
15class “D” felony if the person violates new Code section
16124F.2(1)(a) and the controlled substance involves more than
172 kilograms of marijuana but not more than 50 kilograms. A
18class “D” felony is punishable by confinement for no more than
19five years and a fine of at least $1,025 but not more than
20$10,245. Currently, such a person commits a class “C” felony
21if the controlled substance involves more than 50 kilograms of
22marijuana but not more than 100 kilograms.
23The bill provides that an unauthorized person commits an
24aggravated misdemeanor if the person violates new Code section
25124F.2(1)(a) and the controlled substance involves more than
2612 ounces of marijuana but not more than 2 kilograms. An
27aggravated misdemeanor is punishable by confinement for no more
28than two years and a fine of at least $855 but not more than
29$8,540. Currently, such a person commits a class “D” felony
30if the controlled substance involves 50 kilograms or less of
31marijuana.
32The bill provides that an unauthorized person commits a
33serious misdemeanor if the person violates new Code section
34124F.2(1)(a) and the controlled substance involves more than
354 ounces of marijuana but not more than 12 ounces. A serious
-64-1misdemeanor is punishable by confinement for no more than one
2year and a fine of at least $430 but not more than $2,560.
3Currently, such a person commits a class “D” felony.
4The bill provides that an unauthorized person commits a
5simple misdemeanor if the person violates new Code section
6124F.2(1)(a) and the controlled substance involves 4 ounces or
7less of marijuana except as otherwise provided in the bill. A
8simple misdemeanor is punishable by confinement for no more
9than 30 days and a fine of at least $105 but not more than $855.
10Currently, such a person commits a class “D” felony. A person
11who is 18 years of age or older who unlawfully manufactures
12with the intent to distribute, distributes, or possesses with
13the intent to distribute marijuana to another person who is
1418 years of age or older in or on, or within 1,000 feet of,
15the real property comprising a public or private elementary or
16secondary school, public park, public swimming pool, public
17recreation center, or on a marked school bus, may be sentenced
18up to an additional term of confinement of five years.
19POSSESSION OF MARIJUANA. The bill provides that if a person
20unlawfully possesses more than 6 ounces of marijuana but not
21more than 12 ounces, the person commits a serious misdemeanor.
22The bill provides that if a person unlawfully possesses more
23than one-half ounce of marijuana but not more than 6 ounces,
24the person commits a simple misdemeanor.
25The bill provides that if a person 21 years of age or older
26possesses one-half ounce or less of marijuana, the person does
27not commit a criminal offense but shall be assessed a civil
28penalty in the amount of $100. If the person is under 21 years
29of age, the person must complete 10 hours of unpaid community
30service and a substance abuse program, and inform the person’s
31parents or legal guardians. The bill provides that any records
32relating to the civil penalty shall not be displayed for public
33viewing on the Iowa court information system and such records
34shall not be kept in the criminal history files maintained by
35the department of public safety.
-65- 1RETAIL MARIJUANA — POSSESSION LIMITS. The bill establishes
2possession limits for retail marijuana, defined in the bill.
3The bill prohibits a person 21 years of age or older from
4possessing more than 5 ounces of marijuana flower, or 500
5milligrams of tetrahydrocannabinol contained in a product
6infused with marijuana. A person in possession of retail
7marijuana in excess of amounts equivalent to the amounts
8specified in the bill for the possession of marijuana is
9subject to prosecution for a simple or serious misdemeanor or
10a civil penalty. A retail marijuana store that sells retail
11marijuana in excess of the amounts allowed in the bill is
12subject to a fine or other discipline imposed by the division.
13Currently, if a person unlawfully possesses marijuana, the
14person shall be punished by imprisonment in the county jail for
15not more than six months or by a fine of not more than $1,000,
16or by both for a first offense. If the person has previously
17been convicted of marijuana possession, the person commits a
18serious misdemeanor under current law, and if the person has
19been convicted of marijuana possession two or more times, the
20person commits an aggravated misdemeanor.
21JUVENILE MARIJUANA OFFENSES. The bill specifies that the
22juvenile court shall have exclusive original jurisdiction in a
23proceeding concerning a minor who is alleged to have committed
24a violation of the bill.
25GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED.
26 The bill strikes a provision making it a serious misdemeanor
27for a person to sponsor, promote, or aid in the sponsoring
28or promoting of a meeting or gathering with the knowledge or
29intent that marijuana be distributed, used, or possessed at the
30meeting or gathering in violation of Code chapter 124.
31ACCOMMODATION OFFENSE. The bill strikes a provision
32allowing a prosecution for unlawful delivery or possession with
33intent to deliver marijuana, if the prosecution proves that
34the defendant delivered or possessed with intent to deliver
35one-half ounce or less of marijuana which was not offered for
-66-1sale, the defendant is guilty of an accommodation offense
2and rather than being sentenced for a class “D” felony under
3Code section 124.401(1)(d), the person is sentenced for a
4misdemeanor in violation of Code section 124.401(5). The bill
5makes conforming changes to Code sections 124.401G (Iowa hemp
6Act) and 124.413 (mandatory minimum sentences — controlled
7substances).
8SECOND OR SUBSEQUENT OFFENSES. Currently, a person
9convicted of a second or subsequent offense under Code chapter
10124 may be punished by imprisonment for a period not to exceed
11three times the term otherwise authorized, or fined not more
12than three times the amount otherwise authorized. The bill
13strikes the provision that allows for the use of a previous
14marijuana conviction in determining if a person has been
15convicted of a second or subsequent offense under Code chapter
16124.
17MARIJUANA IN MOTOR VEHICLES. The bill prohibits a driver
18of a motor vehicle upon a public street or highway from using
19marijuana in the passenger area of the motor vehicle. The bill
20also prohibits a driver or passenger of or in a motor vehicle
21upon a public street or highway from possessing marijuana in
22the passenger area of a motor vehicle except in a sealed, odor
23proof, child resistant container. The bill defines “passenger
24area” as the area designed to seat the driver and passengers
25while the motor vehicle is in operation and any area that is
26readily accessible to the driver or a passenger while in their
27seating positions, including the glove compartment. A person
28who knowingly violates this provision of the bill is guilty of
29a simple misdemeanor. A simple misdemeanor is punishable by
30confinement for no more than 30 days and a fine of at least $105
31but not more than $855.
32The bill prohibits a person from operating a motor
33vehicle with 50 or more nanograms of tetrahydrocannabinol
34in the person, as measured in the person’s blood. A person
35who operates a motor vehicle with 50 or more nanograms of
-67-1tetrahydrocannabinol in the person shall have that person’s
2driver’s license suspended for 180 days for a first offense and
3one year for each subsequent offense. A person who refuses
4to submit to chemical testing for tetrahydrocannabinol shall
5have the person’s driver’s license suspended for one year for a
6first offense, and two years for each subsequent offense.
7EXPUNGEMENT. The bill provides that upon application by a
8defendant convicted of a felony offense under Code chapter 124
9(controlled substances) related to the possession or transfer
10of marijuana prior to January 1, 2023, the court shall enter an
11order expunging the record of such a criminal case. A person
12may only seek an expungement once, but an application may
13request the expungement of multiple nonviolent offenses if the
14offenses arose from the same transaction or occurrence. Under
15current law, misdemeanor marijuana offenses may be expunged
16pursuant to Code section 901C.3 (misdemeanor expungement). The
17bill requires each court, on the effective date of the bill, to
18review its records to identify persons convicted of marijuana
19offenses that would have been legal under the bill and to
20automatically expunge each such conviction.
21DIVISION II — RETAIL MARIJUANA. Division II of the
22bill relates to the regulation of retail marijuana in Iowa.
23The bill grants the alcoholic beverages division of the
24department of commerce (division) the authority to regulate the
25cultivation, production, transportation, testing, and sale of
26retail marijuana and retail marijuana products, including by
27issuing appropriate licenses and promulgating rules.
28The bill requires the division to transfer half of any
29application fee collected to the local jurisdiction in which
30the retail marijuana establishment will be located. The
31bill allows local jurisdictions to impose limitations on the
32operation of retail marijuana establishments, including by
33prohibiting their operation.
34The bill directs the division to develop and maintain a
35seed-to-sale tracking system to track retail marijuana from the
-68-1seed or immature plant stage until it is sold to a consumer at a
2retail marijuana establishment.
3The bill requires the division to prioritize applicants
4for state licenses who currently hold a license pursuant to
5Code chapter 124E (medical cannabidiol) or that are businesses
6majority-owned by women, citizens or permanent legal residents
7of Iowa, or disabled veterans. The bill requires the division
8to issue licenses to businesses that are majority-owned by
9persons who are racial minorities in a proportion that meets or
10exceeds the percentage of persons in this state who are racial
11minorities according to the most recent federal decennial
12census.
13The bill prohibits the owner of a retail marijuana
14establishment from interfering with activities of employees
15relating to labor organizations.
16LOCAL LICENSES. The bill requires the division to transmit
17any application for a retail marijuana establishment it
18receives to the local jurisdiction where the establishment
19will be located within seven days of receipt unless the
20local jurisdiction has prohibited the operation of retail
21marijuana establishments. The local jurisdiction must then
22inform the division whether the application complies with
23any local restrictions on the operation of retail marijuana
24establishments it may have imposed. The bill requires a person
25to receive approval from both the division and the local
26jurisdiction before operating a retail marijuana establishment.
27A person whose application for a license is denied is entitled
28to a hearing and judicial review pursuant to Code chapter 17A.
29RETAIL MARIJUANA LICENSES. Ninety days prior to the
30expiration date of an existing license, the division shall
31notify the licensee of the expiration date by first class
32mail at the licensee’s address of record with the division.
33A licensee may apply for the renewal of an existing license
34to the division not less than 30 days prior to the date of
35expiration.
-69- 1RETAIL MARIJUANA STORES. The bill allows a retail marijuana
2store to purchase retail marijuana from a retail marijuana
3cultivation facility. A retail marijuana store may also
4sell prepackaged and labeled retail marijuana products. A
5retail marijuana store must track all of its retail marijuana
6and retail marijuana products from the point that they are
7transferred to the retail marijuana store to the point of
8sale. The bill prohibits a retail marijuana store from selling
9more than one ounce of retail marijuana or its equivalent
10to a person in a single transaction, excluding nonedible,
11nonpsychoactive retail marijuana products.
12Prior to initiating a sale, the bill requires a retail
13marijuana store employee to verify that purchaser has a valid
14identification card showing that the person is 21 years of age
15or older. If a purchaser presents a retail marijuana store
16employee with fraudulent proof of age, any action taken in
17reliance on that proof of age shall not be grounds for the
18revocation or suspension of a license.
19The bill allows a retail marijuana store to provide to the
20state hygienic laboratory a sample of its products for testing
21and research purposes. The retail marijuana store shall
22maintain a record of what was provided to the laboratory and
23the results of the testing.
24The bill prohibits a retail marijuana store from selling
25any products other than retail marijuana, retail marijuana
26products, marijuana accessories, nonconsumable products such as
27apparel, and marijuana products such as childproof packaging
28containers.
29The bill prohibits the division from issuing more than one
30retail marijuana store license per county, except that the
31division may, upon receipt of a petition, issue one additional
32retail marijuana store license per 100,000 population in the
33county. The bill allows a location licensed as a retail
34marijuana store to also be licensed as a medical cannabis
35dispensary, pursuant to rules adopted by the division in
-70-1consultation with the Iowa department of public health.
2RETAIL MARIJUANA CULTIVATION. The bill allows the division
3to issue retail marijuana cultivation facility licenses
4to persons who cultivate retail marijuana for sale and
5distribution to retail marijuana stores, manufacturers, or
6other cultivation facilities. The bill requires a retail
7marijuana cultivation facility to remit any applicable tax due.
8The bill also requires a retail marijuana cultivation facility
9to track the marijuana it cultivates from seed or immature
10plant to wholesale purchase.
11RETAIL MARIJUANA PRODUCTS MANUFACTURING LICENSES. The
12bill allows the division to issue retail marijuana products
13manufacturing licenses to persons who manufacture retail
14marijuana products. The bill requires a retail marijuana
15products manufacturer to track all of its retail marijuana from
16the point it is either transferred from its retail marijuana
17cultivation facility or the point when it is delivered to the
18retail marijuana products manufacturer from a retail marijuana
19cultivation facility to the point of transfer to a retail
20marijuana store.
21The bill requires retail marijuana products to be
22manufactured and prepared in a facility that only manufactures
23retail marijuana products, except that premises may be shared
24with a medical cannabis-infused products manufacturer so long
25as a virtual or physical separation of inventory is maintained.
26RETAIL MARIJUANA USE — PROTECTIONS. The bill prohibits
27the state and its political subdivisions from taking certain
28actions against a person on the basis that the person has
29engaged in conduct allowed by the bill. The state and its
30political subdivisions shall not prosecute a person, deny a
31person a professional license, deny a person a benefit or
32entitlement, deny a person custody or visitation of a child,
33deny a person employment or a contract, or deny a person
34medical care on the basis that the person has engaged in
35conduct allowed by the bill. The bill also prohibits the
-71-1state or a political subdivision from denying employment
2or a contract to a person on the basis of a person’s prior
3conviction of a nonviolent marijuana offense that does not
4involve distribution to a minor. The bill excludes engaging
5in conduct allowed by the bill from being classified as a
6violation of a condition of parole, probation, or pretrial
7release unless there is a specific finding that the conduct
8could create a danger to the individual or another person.
9The bill does not prohibit a governmental employer from
10disciplining an employee or contractor for ingesting marijuana
11at work or working while under the influence of marijuana, nor
12does it prohibit a licensing board from imposing a penalty on a
13person for engaging in conduct that would constitute negligence
14or professional malpractice. The protections of the bill do
15not apply to the extent that they conflict with a governmental
16employer’s obligations under federal law or would disqualify
17a governmental employer from a monetary or licensing-related
18benefit under federal law.
19FEES. The bill allows the division to collect and charge
20fees. The bill sets the application fee for a person applying
21for a new retail marijuana establishment license at $5,000,
22which shall be divided evenly between the division and the
23local jurisdiction where the license is proposed to be issued.
24The bill permits a local jurisdiction to impose operating fees
25on retail marijuana establishments to which it has granted a
26license.
27LICENSE DISCIPLINE. The bill permits the division, on its
28own motion or complaint, and after investigation, notice,
29a public hearing, and opportunity to be heard, to suspend
30or revoke a license if the licensee or any of its agents or
31employees violate a provision of the bill or a rule promulgated
32by the division. The division may administer oaths and issue
33subpoenas to require the presence of persons and the production
34of documents. The division may impose discipline pursuant to
35rules and Code chapter 17A.
-72- 1INSPECTION. The bill requires a licensee to keep a complete
2set of all records necessary to show fully the business
3transactions of the licensee, all of which shall be open at all
4times during business hours for the inspection and examination
5by the division or its duly authorized representatives.
6The bill requires the licensed premises of a retail
7marijuana establishment, including any places of storage
8where retail marijuana or retail marijuana products are
9stored, cultivated, sold, dispensed, or tested to be subject
10to inspection by the state or local jurisdictions and their
11investigators, during all business hours and other times
12of apparent activity, for the purpose of inspection or
13investigation.
14STATE MARIJUANA EXCISE TAX. The bill imposes an excise tax
15on consumers at the rate of 10 percent of the sale price on
16each sale of retail marijuana. The tax shall be paid by the
17consumer to the retail marijuana establishment at the time
18of sale, and each retail marijuana establishment shall remit
19the tax collected to the division on the 15th day of each
20month. Revenues generated by the excise tax shall be deposited
21in the community reinvestment fund, mental health services
22and substance use disorder prevention fund, and local public
23safety fund created in the bill. Moneys in the community
24reinvestment fund, mental health services and substance use
25disorder prevention fund, and local public safety fund shall be
26appropriated by the general assembly for purposes enumerated
27in the bill.
28OCCUPATIONAL LICENSING PROTECTIONS. The bill prohibits a
29professional or occupational licensing board from imposing
30discipline on a licensee for providing services related to
31retail marijuana establishments. The bill also prohibits a
32professional or occupational licensing board from denying a
33license to a person based on a person’s past employment with a
34retail marijuana establishment.
35RULEMAKING. The bill requires the alcoholic beverages
-73-1division of the department of commerce to adopt rules within
2one year of the effective date of the bill to adopt rules for
3the implementation of the bill. The rules shall not prohibit
4the operation of retail marijuana establishments or make
5the operation of retail marijuana establishments so costly
6as to be impractical. Required rules include but are not
7limited to rules relating to applications, fees, licensure,
8security requirements, labeling requirements, health and
9safety requirements, restrictions on advertising, cultivation,
10testing, and penalties. The division shall also develop and
11regularly update safety materials to be distributed upon the
12sale of retail marijuana.
13ACTS PROHIBITED. The bill does not allow the transfer of
14marijuana to a person under 21 years of age or the possession
15of marijuana by a person under 21 years of age.
16PROPERTY RIGHTS. The bill does not require the owner of
17a property to allow the consumption, cultivation, display,
18sale, or transfer of marijuana at that property. However, in
19the case of a residential dwelling, a landlord or property
20manager shall not prohibit the possession of retail marijuana
21or medical cannabis or the consumption of retail marijuana
22or medical cannabis by means other than smoking except under
23certain circumstances. The bill allows a landlord to take
24action against a tenant after a warning if the tenant’s use of
25marijuana creates an odor that interferes with the peaceful
26enjoyment of property by other tenants. The bill prohibits
27a landlord from discriminating against a tenant or applicant
28on the basis of a past conviction of a marijuana offense that
29would have been legal under the bill.
30LAW ENFORCEMENT. The bill prohibits law enforcement
31agencies from expending resources on the investigation of or
32arrest for activity related to marijuana that is in violation
33of federal law if the officer performing the investigation
34or arrest has reason to believe that the activity complies
35with the requirements of the bill. The bill also prohibits
-74-1an agency or political subdivision of the state from taking
2an adverse action against a person on the sole basis that the
3person has violated a federal law related to marijuana.
4SURCHARGE. The bill allows a county that has not prohibited
5the sale of retail marijuana to impose a 1 percent surcharge
6on the retail sales price of retail marijuana. The surcharge
7shall be administered by the department of revenue and funds
8collected by the department of revenue shall be remitted to
9the county on a quarterly basis. The bill includes additional
10provisions regarding the implementation and operation of retail
11marijuana surcharges.
12DIVISION III — MEDICAL CANNABIS. The bill changes the name
13of the medical cannabidiol Act to the medical cannabis Act.
14The bill allows a health care practitioner to certify a
15patient for the use of medical cannabis to a patient for
16any medical condition for which a patient’s health care
17practitioner determines the use of medical cannabis could be
18medically beneficial. The bill requires that any certification
19made by a health care practitioner for a patient for a
20debilitating medical condition not explicitly included on
21the list of debilitating medical conditions shall be made by
22a health care practitioner pursuant to reasonable medical
23evidence, in good faith, in the best interest of the patient,
24without fraudulent intent, and with the same reasonable medical
25judgment and prudence exercised according to generally accepted
26medical practice.
27The bill adds pharmacists to the list of health care
28practitioners able to certify a patient to receive a medical
29cannabis registration card. The bill requires a pharmacist to
30complete a training program designated by the board of pharmacy
31prior to certifying a patient to receive a medical cannabis
32registration card.
33The bill lowers the fee to receive a medical cannabis
34registration card from $25 to $10 and requires the department
35of public health to waive the fee for veterans. The bill
-75-1expands the membership of the medical cannabis board from 8
2to 10 members and adds one member licensed as a physician
3assistant and one member licensed as an advanced practice
4registered nurse.
5The bill allows a medical cannabis manufacturer to
6manufacture edible medical cannabis products. The bill
7prohibits such products from being designed or packaged in
8such a way as would be likely to appeal to children. The bill
9removes the cap on the number of medical cannabis manufacturers
10and dispensaries that may be licensed in this state. The bill
11requires the department to consider demand for medical cannabis
12when licensing a medical cannabis manufacturer or dispensary.
13The bill raises the cap on total tetrahydrocannabinol that
14a patient may receive in a 90-day period from 4.5 grams to 17
15grams.
16The bill requires a medical cannabis dispensary to share
17information regarding the dispensation of medical cannabis to
18a patient with the health care practitioner who certified the
19patient to receive a medical cannabis registration card. The
20bill allows the department to share information regarding the
21purchase of medical cannabis by a patient or primary caregiver
22with the health care practitioner who certified the patient or
23primary caregiver to receive a medical cannabis registration
24card.
25The bill creates standards that a health care practitioner
26must meet in order to provide telemedicine services to
27a patient and defines the start of a provider-patient
28relationship as when a person seeks medical assistance, a
29health care provider agrees to provide treatment, and the
30person agrees to receive treatment. The bill allows a valid
31provider-patient relationship to be formed through an in-person
32encounter, through consultation with another health care
33provider, or through telemedicine, but only if the standard of
34care does not require an in-person encounter.
35The bill requires the department of health and human
-76-1services to convene a task force of legal experts to assist
2the department in ensuring that educational and long-term care
3facilities that receive federal funding and that allow the use
4and administration of medical cannabidiol on the grounds of the
5facilities do not lose eligibility for federal funding.
6DIVISION IV — MEDICAL CANNABIS — INCOME TAXES. The bill
7allows individuals and corporations to subtract from net
8income, to the extent included, business expenses for a medical
9cannabis manufacturer or medical cannabis dispensary.
10DIVISION V — MEDICAL CANNABIS — SALES AND USE TAX. The
11bill exempts sales of medical cannabis products by a medical
12cannabis manufacturer or a medical cannabis dispensary pursuant
13to Code chapter 124E from sales tax.
14DIVISION VI — MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO
15MEDICAL CANNABIS — CONFORMING CODE CHANGES. This division
16changes references from “medical cannabidiol” to “medical
17cannabis” throughout the Code.
18DIVISION VII — EFFECTIVE DATE. The bill takes effect upon
19enactment, except that the alcoholic beverages division of the
20department of commerce shall not issue a license to operate a
21retail marijuana establishment prior to January 1, 2023.
22DIVISION VIII — CODE EDITOR DIRECTIVE. The bill directs
23the Code editor to create two subchapters in new Code chapter
24124F. The first subchapter shall be designated “criminal
25penalties” and the second subchapter shall be designated
26“retail marijuana”.
-77-ss/rh