Bill Text: IA HF442 | 2023-2024 | 90th General Assembly | Introduced

---

Bill Title: A bill for an act relating to marijuana, including the manufacture, delivery, and possession of marijuana, the licensure of retail marijuana, and medical cannabis, providing fees, including excise taxes, establishing funds, providing penalties, and including effective date provisions.

Spectrum: Partisan Bill (Democrat 31-0)

Status: (Introduced - Dead) 2023-03-02 - Sponsor added, Gaines. H.J. 484. [HF442 Detail]

Download: Iowa-2023-HF442-Introduced.html

---

House File 442 - Introduced
HOUSE FILE 442
BY KONFRST , JAMES ,
ZABNER , BAGNIEWSKI ,
WESSEL-KROESCHELL , OLSON ,
AMOS JR. , NIELSEN , STAED ,
STECKMAN , WILSON , EHLERT ,
TUREK , MATSON , SCHOLTEN ,
KRESSIG , BROWN-POWERS ,
LEVIN , KURTH , BAETH ,
COOLING , CAHILL , SRINIVAS ,
WILBURN , SCHEETZ , MADISON ,
ABDUL-SAMAD , B. MEYER ,
CROKEN , GJERDE , and BUCK
A BILL FOR
An Act relating to marijuana, including the manufacture,
delivery, and possession of marijuana, the licensure of
retail marijuana, and medical cannabis, providing fees,
including excise taxes, establishing funds, providing
penalties, and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1615YH (11) 90
ss/rh

H.F. 442
DIVISION I
MARIJUANA —— CRIMINAL PENALTIES
Section 1. Section 124.401, subsection 1, unnumbered
paragraph 1, Code 2023, is amended to read as follows:
Except as authorized by this chapter or chapter 124E or
124F , it is unlawful for any person to manufacture, deliver, or
possess with the intent to manufacture or deliver, a controlled
substance, a counterfeit substance, a simulated controlled
substance, or an imitation controlled substance, or to act
with, enter into a common scheme or design with, or conspire
with one or more other persons to manufacture, deliver, or
possess with the intent to manufacture or deliver a controlled
substance, a counterfeit substance, a simulated controlled
substance, or an imitation controlled substance.
Sec. 2. Section 124.401, subsection 1, paragraph a,
subparagraph (6), Code 2023, is amended by striking the
subparagraph.
Sec. 3. Section 124.401, subsection 1, paragraph b,
subparagraph (6), Code 2023, is amended by striking the
subparagraph.
Sec. 4. Section 124.401, subsection 1, paragraph c,
subparagraph (5), Code 2023, is amended by striking the
subparagraph.
Sec. 5. Section 124.401, subsection 1, paragraph c,
subparagraph (9), Code 2023, is amended to read as follows:
(9) Any other controlled substance, counterfeit substance,
simulated controlled substance, or imitation controlled
substance classified in schedule I, II, or III, except as
provided in paragraph “d” , or in chapter 124E or 124F .
Sec. 6. Section 124.401, subsection 1, paragraph d, Code
2023, is amended to read as follows:
d. Violation of this subsection , with respect to any other
controlled substances, counterfeit substances, simulated
controlled substances, or imitation controlled substances
classified in schedule IV or V is an aggravated misdemeanor.
-1-
LSB 1615YH (11) 90
ss/rh 1/ 77

H.F. 442
However, violation of this subsection involving fifty kilograms
or less of marijuana or involving flunitrazepam is a class “D”
felony.
Sec. 7. Section 124.401, subsection 5, paragraph b, Code
2023, is amended to read as follows:
b. If the controlled substance is marijuana, the punishment
shall be by imprisonment in the county jail for not more than
six months or by a fine of not more than one thousand dollars,
or by both such fine and imprisonment for a first offense. If
the controlled substance is marijuana and the person has been
previously convicted of a violation of this subsection in which
the controlled substance was marijuana, the punishment shall be
as provided in section 903.1, subsection 1 , paragraph “b” . If
the controlled substance is marijuana and the person has been
previously convicted two or more times of a violation of this
subsection in which the controlled substance was marijuana,
the person is guilty of an aggravated misdemeanor. This
subsection does not apply to the possession of marijuana which
is punishable pursuant to chapter 124F.
Sec. 8. Section 124.401G, unnumbered paragraph 1, Code
2023, is amended to read as follows:
Notwithstanding any provision of this chapter to the
contrary, a person shall not be guilty of an offense under
this chapter , including under section 124.401 or 124.410 ,
for producing, possessing, using, harvesting, handling,
manufacturing, marketing, transporting, delivering, or
distributing the plant cannabis, if all of the following apply:
Sec. 9. Section 124.407, subsection 2, Code 2023, is amended
to read as follows:
2. a. Any person who violates this section and where the
controlled substance is any one a controlled substance other
than marijuana is guilty of a class “D” felony.
b. Any person who violates this section , and where the
controlled substance is marijuana only, is guilty of a serious
misdemeanor.
-2-
LSB 1615YH (11) 90
ss/rh 2/ 77

H.F. 442
Sec. 10. Section 124.411, subsection 2, Code 2023, is
amended to read as follows:
2. For purposes of this section , an offense is considered
a second or subsequent offense, if, prior to the person’s
having been convicted of the offense, the offender has ever
been convicted under this chapter or under any state or federal
statute relating to narcotic drugs or cocaine, marijuana,
depressant, stimulant, or hallucinogenic drugs.
Sec. 11. Section 124.413, subsection 2, Code 2023, is
amended to read as follows:
2. This section shall not apply if :
a. The offense is found to be an accommodation pursuant to
section 124.410 ; or
b. The the controlled substance is marijuana.
Sec. 12. NEW SECTION . 124F.1 Definitions.
As used in this subchapter:
1. “Counterfeit substance” means the same as defined in
section 124.101.
2. “Imitation controlled substance” means the same as
defined in section 124.101.
3. “Marijuana” means the same as defined in section 124.101,
and includes a counterfeit substance, imitation controlled
substance, or simulated controlled substance containing a
detectable amount of marijuana.
4. “Simulated controlled substance” means the same as
defined in section 124.101.
Sec. 13. NEW SECTION . 124F.2 Marijuana —— penalties.
1. a. Except as otherwise provided in this subchapter and
chapter 124E, it is unlawful for any person to manufacture,
deliver, or possess with the intent to manufacture or deliver
marijuana, or to act with, enter into a common scheme or
design with, or conspire with one or more other persons to
manufacture, deliver, or possess with the intent to manufacture
or deliver marijuana. A violation of this subsection involving
the following amounts of marijuana shall be punishable as
-3-
LSB 1615YH (11) 90
ss/rh 3/ 77

H.F. 442
follows:
(1) More than fifty kilograms shall be a class “C” felony.
(2) More than two kilograms but not more than fifty
kilograms shall be a class “D” felony.
(3) More than twelve ounces but not more than two kilograms
shall be an aggravated misdemeanor.
(4) More than four ounces but not more than twelve ounces
shall be punishable as a serious misdemeanor.
(5) Four ounces or less shall be punishable as a simple
misdemeanor, except as provided in section 124F.3.
b. In addition to any other penalties provided in this
subsection, a person who is eighteen years of age or older
who unlawfully manufactures with the intent to distribute,
distributes, or possesses with the intent to distribute
marijuana to another person who is eighteen years of age or
older in or on, or within one thousand feet of, the real
property comprising a public or private elementary or secondary
school, public park, public swimming pool, public recreation
center, or on a marked school bus, may be sentenced up to an
additional term of confinement of five years.
2. It is unlawful for any person knowingly or intentionally
to possess marijuana unless such substance was obtained
directly from, or pursuant to, a valid prescription or order of
a practitioner while acting in the course of the practitioner’s
professional practice, or except as otherwise authorized by
this subsection. A violation of this subsection involving
the possession of the following amounts of marijuana shall be
punishable as follows:
a. More than six ounces but not more than twelve ounces is
a serious misdemeanor.
b. More than one-half ounce but not more than six ounces is
a simple misdemeanor.
c. One-half ounce or less is not a criminal offense but
shall be assessed as a civil penalty in the amount of one
hundred dollars, except if the person is under twenty-one years
-4-
LSB 1615YH (11) 90
ss/rh 4/ 77

H.F. 442
of age, the person shall complete a drug awareness program and
ten hours of unpaid community service, and shall notify the
person’s parents or legal guardian.
(1) The civil penalty shall be collected by the clerk of the
district court pursuant to section 602.8105, subsection 5.
(2) Any records relating to the civil penalty shall not
be displayed for public viewing on the Iowa court information
system.
(3) Any records relating to the civil penalty shall not
be kept in the criminal history data files maintained by the
department of public safety. Any records relating to the civil
penalty shall not be disseminated to other criminal or juvenile
justice agencies.
3. a. A retail marijuana store shall not sell retail
marijuana in excess of the following amounts in a single
transaction:
(1) Thirty grams of marijuana flower.
(2) Five hundred milligrams of tetrahydrocannabinol
contained in a product infused with marijuana.
b. A person shall not possess more than five ounces of
marijuana flower.
c. A person in possession of retail marijuana in excess of
the amounts specified in paragraph “a” equivalent to the amounts
specified in subsection 2, shall be subject to the penalties in
subsection 2.
d. A retail marijuana store in violation of this subsection
shall be subject to licensee discipline pursuant to section
124F.16.
e. For purposes of this subsection, “retail marijuana” and
“retail marijuana store” mean the same as defined in section
124F.4.
4. a. Upon the expiration of two years following a
conviction for a violation of subsection 2, paragraph “a” or
“b” , a person may petition the court to expunge the conviction,
and if the person has had no other criminal convictions, other
-5-
LSB 1615YH (11) 90
ss/rh 5/ 77

H.F. 442
than local traffic violations or simple misdemeanor violations
of chapter 321 during the two-year period, the conviction
shall be expunged as a matter of law. The court shall enter
an order that the record of the conviction be expunged by the
clerk of the district court. Notwithstanding section 692.2,
after receipt of notice from the clerk of the district court
that a record of conviction has been expunged pursuant to this
subsection, the record of conviction shall be removed from the
criminal history data files maintained by the department of
public safety.
b. On the effective date of this Act, each court shall
review its records to identify persons who have been convicted
of an offense based on conduct allowed under this Act. Each
such conviction shall be expunged as a matter of law as
provided in paragraph “a” .
Sec. 14. NEW SECTION . 124F.3 Juvenile offenses.
The juvenile court shall have exclusive original
jurisdiction in a proceeding concerning a minor who is alleged
to have committed a violation of this subchapter.
Sec. 15. NEW SECTION . 321.284B Marijuana in motor vehicles.
1. A driver of a motor vehicle upon a public street or
highway shall not use marijuana in the passenger area of the
motor vehicle. “Passenger area” means the area designed to
seat the driver and passengers while the motor vehicle is in
operation and any area that is readily accessible to the driver
or a passenger while in their seating positions, including the
glove compartment.
2. A driver or passenger of or in a motor vehicle upon a
public street or highway shall not possess marijuana in the
passenger area of a motor vehicle except in a sealed, odor
proof, child resistant container.
3. For the purposes of this section, “marijuana” means the
same as defined in section 124.401.
4. A person who knowingly violates a provision of this
section is guilty of a simple misdemeanor.
-6-
LSB 1615YH (11) 90
ss/rh 6/ 77

H.F. 442
Sec. 16. Section 321J.2, subsection 1, paragraph c, Code
2023, is amended to read as follows:
c. While Except as provided in section 321J.2C, any amount
of a controlled substance is present in the person, as measured
in the person’s blood or urine.
Sec. 17. NEW SECTION . 321J.2C Operating while under the
influence of marijuana.
1. A person shall not operate a motor vehicle in this state
while having fifty nanograms of tetrahydrocannabinol in the
person, as measured in the person’s blood.
2. A person who violates subsection 1 is guilty of a serious
misdemeanor, punishable as follows:
a. For a first offense, revocation of the person’s driver’s
license for a period of one hundred eighty days, except that if
the person refused to submit to chemical testing, the person’s
driver’s license shall be revoked for a period of one year.
b. For a second or subsequent offense, revocation of the
person’s driver’s license for a period of one year, except
that if the person refused to submit to chemical testing, the
person’s driver’s license shall be revoked for a period of two
years.
Sec. 18. Section 602.8105, Code 2022, is amended by adding
the following new subsection:
NEW SUBSECTION . 5. The clerk of the district court shall
collect the civil penalty assessed pursuant to section 124F.2,
subsection 2, paragraph “c” , subparagraph (1).
Sec. 19. NEW SECTION . 901C.4 Felony offenses related to
marijuana —— expungement.
1. In addition to the expungement provisions available
to a defendant convicted of a misdemeanor marijuana offense
under chapter 124, upon application of a defendant convicted
of a felony offense under chapter 124 in the county where the
conviction occurred, related to the possession or transfer of
marijuana, the court shall enter an order expunging the record
of such a criminal case.
-7-
LSB 1615YH (11) 90
ss/rh 7/ 77

H.F. 442
2. A person shall be granted an expungement of a record
under this section one time in the person’s lifetime. However,
the one application may request the expungement of records
relating to more than one nonviolent offense under this section
if the offenses arose from the same transaction or occurrence,
and the application contains the offenses to be expunged.
3. The expunged record under this section is a confidential
record exempt from public access under section 22.7 but shall
be made available by the clerk of the district court upon court
order.
4. Notwithstanding section 692.2, after receipt of
notice from the clerk of the district court that a record of
conviction has been expunged under subsection 1, the record
of conviction shall be removed from the criminal history data
files maintained by the department of public safety if such a
record was maintained in the criminal history data files.
5. The supreme court may prescribe rules governing the
procedures applicable to the expungement of a criminal case
under this section.
6. This section applies to a felony conviction that occurred
prior to January 1, 2024.
Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed.
DIVISION II
RETAIL MARIJUANA
Sec. 21. NEW SECTION . 124F.4 Definitions.
For the purposes of this subchapter:
1. “Division” means the alcoholic beverages division of the
department of commerce.
2. “Immature plant” means a nonflowering marijuana plant
that is no taller than eight inches and no wider than eight
inches, is produced from a cutting, clipping, or seedling, and
is in a cultivating container.
3. “License” means a license or registration issued pursuant
to this subchapter.
4. “Licensed premises” means the premises specified in an
-8-
LSB 1615YH (11) 90
ss/rh 8/ 77

H.F. 442
application for a license under this subchapter, which are
owned or in possession of the licensee and within which the
licensee is authorized to cultivate, manufacture, distribute,
sell, or test retail marijuana and retail marijuana products in
accordance with this subchapter.
5. “Licensee” means a person licensed or registered pursuant
to this subchapter.
6. “Local jurisdiction” means a county.
7. “Local licensing authority” means, for any local
jurisdiction that has chosen to adopt a local licensing
requirement in addition to the state licensing requirements
of this subchapter, an authority designated by a municipal
or county ordinance, or resolution, or the governing body of
a municipality or county, or the board of commissioners of a
county if no such authority is designated.
8. “Location” means a particular parcel of land that may be
identified by an address or other descriptive means.
9. “Marijuana” means the same as defined in section 124.101.
10. “Marijuana accessories” means any equipment, products,
or materials of any kind which are used, intended for use, or
designed for use in planting, cultivating, growing, harvesting,
composting, manufacturing, compounding, converting, producing,
processing, preparing, testing, analyzing, packaging,
repackaging, storing, vaporizing, or containing marijuana, or
for ingesting, inhaling, or otherwise introducing marijuana
into the human body.
11. “Person” means a natural person, partnership,
association, company, corporation, limited liability company,
or organization; except that “person” does not include any
governmental organization.
12. “Retail marijuana” means all parts of the plant of the
genus Cannabis, whether growing or not, the seeds thereof; the
resin extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the
plant, its seeds or resin, including marijuana concentrate.
-9-
LSB 1615YH (11) 90
ss/rh 9/ 77

H.F. 442
“Retail marijuana” does not include industrial hemp, nor does
it include fiber produced from the stalks, oil or cake made
from the seeds of the plant, sterilized seeds of the plant
which are incapable of germination, or the weight of any other
ingredient combined with marijuana to prepare topical or oral
administrations, food, drink, or other product.
13. “Retail marijuana cultivation facility” means an entity
licensed to cultivate, prepare, package, and sell marijuana to
retail marijuana stores, to marijuana product manufacturing
facilities, and to other marijuana cultivation facilities, but
not to consumers.
14. “Retail marijuana establishment” means a retail
marijuana store, a retail marijuana cultivation facility, or a
retail marijuana products manufacturer.
15. “Retail marijuana products” means concentrated marijuana
products and marijuana products that are comprised of marijuana
and other ingredients and are intended for use or consumption,
such as but not limited to edible products, ointments, and
tinctures.
16. “Retail marijuana products manufacturer” means an entity
licensed to purchase marijuana; manufacture, prepare, and
package marijuana products; and sell marijuana and marijuana
products to other marijuana product manufacturing facilities
and to retail marijuana stores, but not to consumers.
17. “Retail marijuana store” means an entity licensed
to purchase marijuana from marijuana cultivation facilities
and sell marijuana and to purchase marijuana products from
retail marijuana product manufacturing facilities and to sell
marijuana and marijuana products to consumers.
18. “Retail marijuana transporter” means an entity or person
licensed to transport retail marijuana and retail marijuana
products from one retail marijuana establishment to another
retail marijuana establishment and to temporarily store the
transported retail marijuana and retail marijuana products at
its licensed premises, but is not authorized to sell retail
-10-
LSB 1615YH (11) 90
ss/rh 10/ 77

H.F. 442
marijuana or retail marijuana products under any circumstances.
Sec. 22. NEW SECTION . 124F.5 Applicability.
1. On or after July 1, 2024, an applicant may apply for
licensure of a retail marijuana establishment pursuant to this
subchapter.
2. a. Pursuant to subsection 1, an applicant shall complete
forms as provided by the division and shall pay the application
fee and the licensing fee. The division shall forward, within
seven days of the date of the application, one-half of the
application fee to the local jurisdiction unless the local
jurisdiction has prohibited the operation of retail marijuana
establishments. If the license is denied, the division shall
refund the licensing fee to the applicant.
b. The division shall act upon an application made pursuant
to subsection 1 no sooner than forty-five days and no later
than ninety days after the date of the application. The
division shall process applications in the order in which
completed applications are received by the division.
3. a. Any local jurisdiction may enact ordinances or
regulations governing the time, place, manner, and number of
retail marijuana establishments, which may include a local
licensing requirement, or may prohibit the operation of retail
marijuana establishments by ordinance or by a referred or
initiated measure. If a county acts through an initiated
measure, the proponents shall submit a petition signed by not
less than fifteen percent of the registered electors in the
county.
b. If a county prohibits the operation of retail marijuana
establishments, the county shall, upon receipt of a petition
signed by fifteen percent of the registered voters in the
county, submit to the voters of the county the question of
whether the operation of retail marijuana establishments should
be allowed in the county at the next general election.
Sec. 23. NEW SECTION . 124F.6 Retail marijuana licensure.
1. The division shall develop and maintain a seed-to-sale
-11-
LSB 1615YH (11) 90
ss/rh 11/ 77

H.F. 442
tracking system that tracks retail marijuana from either
seed or immature plant stage until the marijuana or retail
marijuana product is sold to a customer at a retail marijuana
establishment to ensure that no marijuana grown or processed
by a retail marijuana establishment is sold or otherwise
transferred except by a retail marijuana store.
2. The division shall adopt all rules necessary for the
implementation of this chapter.
3. Nothing in this subchapter shall be construed to be
a delegation to the division of the power to fix prices for
retail marijuana.
4. Nothing in this subchapter shall be construed to limit
a law enforcement agency’s ability to investigate unlawful
activity in relation to a retail marijuana establishment. A
law enforcement agency shall have the authority to conduct a
criminal history record check of a licensee and an employee of
a licensee during an investigation of unlawful activity related
to retail marijuana and retail marijuana products.
5. The division shall create a statewide licensure class
system for retail marijuana cultivation facilities. The
classifications may be based upon square footage of the
facility; lights, lumens, or wattage; canopy lighting; the
number of cultivating plants; a combination of the foregoing;
or other reasonable metrics. The division shall create a fee
structure for the licensure class system.
Sec. 24. NEW SECTION . 124F.7 State and local participation
in licensure.
1. When the division receives an application for an
initial license or a renewal of an existing license for
any retail marijuana establishment, the division shall
provide, within seven days of receipt of an application,
a copy of the application to the local jurisdiction in
which the establishment is to be located unless the local
jurisdiction has prohibited the operation of retail marijuana
establishments. The local jurisdiction shall determine whether
-12-
LSB 1615YH (11) 90
ss/rh 12/ 77

H.F. 442
the application complies with local restrictions relating
to time, place, manner, and the number of retail marijuana
establishments allowed. The local jurisdiction shall inform
the division whether the application complies with local
restrictions.
2. A local jurisdiction may impose a separate local
licensing requirement as a part of its restrictions relating
to time, place, manner, and the number of retail marijuana
establishments allowed. A local jurisdiction may decline
to impose any local licensing requirements, but a local
jurisdiction shall notify the division that it either approves
or denies each application received by the local jurisdiction.
3. If a local jurisdiction issues a local license for
a retail marijuana establishment, a local jurisdiction may
schedule a public hearing on the application. If the local
jurisdiction schedules a hearing, it shall post and publish
public notice of the hearing not less than ten days prior
to the hearing. The local jurisdiction shall give public
notice by posting a sign in a conspicuous place on the license
applicant’s premises for which a local license application
has been made and by publication in a newspaper of general
circulation in the county in which the applicant’s premises are
located.
4. If a local jurisdiction does not issue local licenses,
the local jurisdiction may give public notice of the state
license application by posting a sign in a conspicuous place
on the state license applicant’s premises for which a state
license application has been made and by publication in a
newspaper of general circulation in the county in which the
applicant’s premises are located.
5. Applications for a state license under this subchapter
must be made to the division on forms prepared and furnished
by the division and must set forth such information as the
division may require to enable the division to determine
whether a state license should be granted.
-13-
LSB 1615YH (11) 90
ss/rh 13/ 77

H.F. 442
6. The division shall deny a state license if the premises
on which the applicant proposes to conduct its business does
not meet the requirements of this subchapter. The division
may refuse or deny a license renewal, reinstatement, or
initial license issuance for good cause. For purposes of this
subsection, “good cause” means any of the following:
a. The licensee or applicant has violated, does not meet,
or has failed to comply with any of the terms, conditions, or
provisions of this subchapter, any rules promulgated pursuant
to this subchapter, or any supplemental local law, rules, or
regulations.
b. The licensee or applicant has failed to comply with any
special terms or conditions of the license pursuant to an order
of the division or local licensing authority.
c. The licensed premises have been operated in a manner that
adversely affects the public health or safety of the immediate
neighborhood in which the retail marijuana establishment is
located.
d. The licensed premises are located within two thousand
feet of real property comprising a school, child care facility,
or public park.
7. If the division denies a state license pursuant to
subsection 6, the applicant shall be entitled to a hearing
pursuant to section 17A.12 and judicial review pursuant to
section 17A.19. The division shall provide written notice of
the grounds for denial of the state license to the applicant
and to the local jurisdiction at least fifteen days prior to
the hearing.
8. The division shall give primary preference to applicants
for licensure who are currently licensed as a medical
cannabidiol manufacturer or medical cannabidiol dispensary
pursuant to chapter 124E. The division shall also prioritize
applicants for licensure that are businesses that are
majority-owned by persons who are women, citizens or permanent
legal residents of Iowa, or disabled veterans.
-14-
LSB 1615YH (11) 90
ss/rh 14/ 77

H.F. 442
9. The division shall issue licenses to businesses that
are majority-owned by persons who are racial minorities in a
proportion that meets or exceeds the percentage of persons in
this state who are racial minorities according to the most
recent federal decennial census.
Sec. 25. NEW SECTION . 124F.8 Establishment and owner
requirements.
1. An owner who is a natural person must have been either
of the following:
a. A resident of Iowa for at least one year prior to the
date of the application.
b. A United States citizen prior to the date of the
application.
2. A retail marijuana establishment may be composed of an
unlimited number of owners that have been residents of Iowa for
at least one year prior to the date of the application.
3. A retail marijuana establishment shall not interfere
with the creation of or participation in a labor organization,
as defined in section 216.2, by employees of the retail
marijuana establishment.
4. The division shall review the retail marijuana
establishment’s operating documents to ensure compliance with
this section.
Sec. 26. NEW SECTION . 124F.9 Retail marijuana establishment
licensure.
1. Local jurisdictions may adopt and enforce regulations
for retail marijuana establishments that are at least as
restrictive as the provisions of this subchapter and any rule
promulgated pursuant to this subchapter.
2. A retail marijuana establishment shall not operate
until the retail marijuana establishment is licensed by the
division pursuant to this subchapter and approved by the
relevant local jurisdiction. If an application is denied by
the local licensing authority, the division shall revoke the
state license. In connection with a license, the applicant
-15-
LSB 1615YH (11) 90
ss/rh 15/ 77

H.F. 442
shall provide a complete and accurate application as required
by the division.
3. A retail marijuana establishment shall notify the
division in writing of the name, address, and date of birth of
a new owner, officer, or manager before the new owner, officer,
or manager begins managing, owning, working, or otherwise
associating with the establishment. The owner, officer,
manager, or employee shall pass a fingerprint-based criminal
history record check as required by the division and shall
obtain the required identification prior to managing, owning,
working, or otherwise associating with the establishment.
The division shall not deny licensure to a retail marijuana
establishment on the basis that an owner, officer, manager,
or employee has been convicted of a crime other than a
violent crime, as defined in section 915.10, if the person has
completed any term of probation or parole imposed by the court.
4. Before granting a state license, the division may
consider, except when this subchapter specifically provides
otherwise, the requirements of this subchapter and any
rules promulgated pursuant to this subchapter, and all other
reasonable restrictions that are or may be placed upon a
licensee by the division or local licensing authority.
5. a. Each license issued under this subchapter is separate
and distinct. It is unlawful for a person to exercise any
of the privileges granted under a license other than the
license that the person holds or for a licensee to allow any
other person to exercise the privileges granted under the
licensee’s license. A separate license shall be required for
each specific business or business entity and each geographical
location.
b. At all times, a licensee shall possess and maintain
possession of the premises for which the license is issued
through ownership, lease, rental, or other arrangement for
possession of the premises.
6. Each licensee shall manage the licensed premises
-16-
LSB 1615YH (11) 90
ss/rh 16/ 77

H.F. 442
personally or employ a separate and distinct manager on
the premises and shall report the name of the manager to
the division and local licensing authority. The licensee
shall report any change in manager to the division and local
licensing authority within seven days after the change.
Sec. 27. NEW SECTION . 124F.10 License renewal.
1. Ninety days prior to the expiration date of an existing
license, the division shall notify a licensee of the expiration
date by first class mail at the licensee’s address of record
with the division. A licensee may apply for the renewal of
an existing license to the division not less than thirty days
prior to the date of expiration of the existing license. Upon
receipt of an application for renewal of an existing license
and any applicable fees, the division shall submit, within
seven days of the application, a copy of the application to
the local jurisdiction to determine whether the application
complies with all local restrictions on renewal of licenses.
The division shall not accept an application for renewal of a
license after the date of expiration, except as provided in
subsection 3. The division may extend the expiration date of
the license and accept a late application for renewal of a
license if the applicant has filed a timely renewal application
with the local licensing authority. The division or the local
licensing authority, in its discretion, and subject to the
requirements of this subsection and subsection 3 and based upon
reasonable grounds, may waive the thirty-day time requirements
set forth in this subsection.
2. The division may request additional fingerprints from a
licensee when there is a demonstrated investigative need.
3. a. Notwithstanding the provisions of subsection 1,
a licensee whose license has been expired for not more than
ninety days may file a late renewal application upon the
payment of a nonrefundable late application fee of five hundred
dollars to the division. A licensee who files a late renewal
application and pays the requisite fees may continue to operate
-17-
LSB 1615YH (11) 90
ss/rh 17/ 77

H.F. 442
until the division takes final action to approve or deny
the licensee’s late renewal application unless the division
summarily suspends the license pursuant to chapter 17A, this
subchapter, and rules adopted pursuant to this subchapter.
b. The division may administratively continue a license
and accept a later application for renewal of a license at the
discretion of the division.
Sec. 28. NEW SECTION . 124F.11 Classes of licenses.
For the purpose of regulating the cultivation, manufacture,
distribution, sale, and testing of retail marijuana and retail
marijuana products, the division in its discretion, upon
receipt of an application in the prescribed form, may issue and
grant to the applicant a license or registration in any of the
following classes, subject to the provisions and restrictions
provided by this subchapter:
1. Retail marijuana store license.
2. Retail marijuana cultivation facility license.
3. Retail marijuana products manufacturing license.
4. Occupational licenses and registrations for owners,
managers, operators, employees, contractors, and other support
staff employed by, working in, or having access to restricted
areas of the licensed premises, as determined by the division.
The division may take any action with respect to a registration
pursuant to this subchapter as it may with respect to a license
pursuant to this subchapter, in accordance with the procedures
established pursuant to this subchapter.
5. Retail marijuana transporter license.
Sec. 29. NEW SECTION . 124F.12 Retail marijuana store
license.
1. a. A retail marijuana store license shall be issued
by the division only to a person selling retail marijuana or
retail marijuana products pursuant to the terms and conditions
of this subchapter.
b. A retail marijuana store shall not accept any retail
marijuana purchased from a retail marijuana cultivation
-18-
LSB 1615YH (11) 90
ss/rh 18/ 77

H.F. 442
facility unless the retail marijuana store is provided with
evidence that any applicable excise tax due was paid.
2. Notwithstanding the provisions of this section, a
retail marijuana store licensee may also sell retail marijuana
products that are prepackaged and labeled as required by rules
of the division pursuant to section 124F.21.
3. a. A retail marijuana store shall not sell more than one
ounce of retail marijuana or its equivalent in retail marijuana
products, including retail marijuana concentrate, except for
nonedible, nonpsychoactive retail marijuana products, including
ointments, lotions, balms, and other nontransdermal topical
products to a person.
b. (1) Prior to initiating a sale, an employee of the
retail marijuana store making the sale shall verify that
the purchaser has a valid identification card showing the
purchaser is twenty-one years of age or older. If a person
under twenty-one years of age presents fraudulent proof of age,
any action relying on the fraudulent proof of age shall not be
grounds for the revocation or suspension of any license issued
under this subchapter.
(2) (a) If a retail marijuana store licensee or
employee has reasonable cause to believe that a person is
under twenty-one years of age and is exhibiting fraudulent
proof of age in an attempt to obtain any retail marijuana
or cannabis-infused product, the licensee or employee is
authorized to confiscate such fraudulent proof of age, if
possible, and shall, within seventy-two hours after the
confiscation, remit such fraudulent proof of age to a state
or local law enforcement agency. The failure to confiscate
such fraudulent proof of age or to remit such fraudulent proof
of age to a state or local law enforcement agency within
seventy-two hours after the confiscation shall not constitute a
criminal offense.
(b) If a retail marijuana store licensee or employee
believes that a person is under twenty-one years of age and
-19-
LSB 1615YH (11) 90
ss/rh 19/ 77

H.F. 442
presents fraudulent proof of age in an attempt to obtain any
retail marijuana or retail cannabis-infused product, the
licensee or employee or any peace officer or police officer,
acting in good faith and upon probable cause based upon
reasonable grounds therefor, may detain and question such
person in a reasonable manner for the purpose of ascertaining
whether the person is guilty of any unlawful act regarding the
purchase of retail marijuana. The questioning of a person by a
licensee, employee, peace officer, or police officer does not
render the licensee, employee, peace officer, or police officer
civilly or criminally liable for slander, false arrest, false
imprisonment, malicious prosecution, or unlawful detention.
4. All retail marijuana and retail marijuana products
sold at a licensed retail marijuana store shall be packaged
and labeled as required by rules of the division pursuant to
section 124F.21.
5. a. A licensed retail marijuana store shall only
sell retail marijuana, retail marijuana products, marijuana
accessories, nonconsumable products such as apparel, and
marijuana-related products such as childproof packaging
containers, but shall be prohibited from selling or giving
away any consumable product, including but not limited to
cigarettes, alcohol, or an edible product that does not contain
marijuana, including but not limited to sodas, candies, or
baked goods.
b. A licensed retail marijuana store shall not sell any
retail marijuana or retail marijuana products that contain
nicotine or alcohol, if the sale of the alcohol would require a
license pursuant to chapter 123.
c. A licensed retail marijuana store shall not sell retail
marijuana or retail marijuana products over the internet nor
deliver retail marijuana or retail marijuana products to a
person who is not physically present in the retail marijuana
store’s licensed premises.
6. Retail marijuana or retail marijuana products shall not
-20-
LSB 1615YH (11) 90
ss/rh 20/ 77

H.F. 442
be consumed on the premises of a retail marijuana store.
7. Notwithstanding any other provision of state law, sales
of retail marijuana and retail marijuana products are not
exempt from state or local sales tax.
8. The division shall not issue more than one retail
marijuana store license per county, except that the division
may, upon receipt of a petition, issue one additional retail
marijuana store license per one hundred thousand population
in the county according to the most recent federal decennial
census.
9. A retail marijuana store may also be licensed as a
medical cannabis dispensary pursuant to chapter 124E. The
division shall, in consultation with the department of public
health, adopt rules for the implementation of this subsection.
Sec. 30. NEW SECTION . 124F.13 Retail marijuana cultivation
facility license.
1. A retail marijuana cultivation facility license shall
be issued by the division only to a person who cultivates
retail marijuana for sale and distribution to licensed retail
marijuana stores, retail marijuana products manufacturing
licensees, or other retail marijuana cultivation facilities.
2. A retail marijuana cultivation facility shall remit any
applicable excise tax due.
3. A retail marijuana cultivation facility shall track
the marijuana it cultivates from seed or immature plant to
wholesale purchase of the retail marijuana. Prior to delivery
of any retail marijuana that is sold, the retail marijuana
cultivation facility shall provide evidence that the facility
paid any applicable excise tax on the retail marijuana due.
4. A retail marijuana cultivation facility may provide,
except as required by section 124F.21, a sample of its products
to the state hygienic laboratory for testing and research
purposes. A retail marijuana cultivation facility shall
maintain a record of the sample provided to the state hygienic
laboratory and the testing results.
-21-
LSB 1615YH (11) 90
ss/rh 21/ 77

H.F. 442
5. Retail marijuana or retail marijuana products shall not
be consumed on the premises of a retail marijuana cultivation
facility.
Sec. 31. NEW SECTION . 124F.14 Retail marijuana products
manufacturing license.
1. a. A retail marijuana products manufacturing license
shall be issued by the division to a person who manufactures
retail marijuana products pursuant to the terms and conditions
of this subchapter.
b. A retail marijuana products manufacturer may cultivate
its own retail marijuana if the manufacturer obtains a retail
marijuana cultivation facility license, or it may purchase
retail marijuana from a licensed retail marijuana cultivation
facility. A retail marijuana products manufacturer shall track
all of its retail marijuana from the point the retail marijuana
is either transferred from its retail marijuana cultivation
facility or from the point when the retail marijuana is
delivered to the retail marijuana products manufacturer from a
licensed retail marijuana cultivation facility to the point of
transfer to a licensed retail marijuana store.
c. A retail marijuana products manufacturer shall not
accept any retail marijuana purchased from a retail marijuana
cultivation facility unless the retail marijuana products
manufacturer is provided with evidence that any applicable
excise tax due was paid.
2. All retail marijuana products shall be prepared on
a licensed premises used exclusively for the manufacture
and preparation of retail marijuana or retail marijuana
products and using equipment that is used exclusively for the
manufacture and preparation of retail marijuana products;
except that, if permitted by the local jurisdiction, a
retail marijuana products manufacturing licensee may share
the same premises as a medical cannabidiol-infused products
manufacturing licensee so long as a virtual or physical
separation of inventory is maintained pursuant to rules
-22-
LSB 1615YH (11) 90
ss/rh 22/ 77

H.F. 442
promulgated by the division.
3. All licensed premises on which retail marijuana products
are manufactured shall meet the sanitary standards for retail
marijuana product preparation promulgated pursuant to section
124F.21.
4. Retail marijuana or retail marijuana products shall not
be consumed on the premises of a retail marijuana products
manufacturing facility.
5. A retail marijuana products manufacturer may provide,
except as required by section 124F.21, a sample of its products
to the state hygienic laboratory for testing and research
purposes. A retail marijuana products manufacturer shall
maintain a record of what was provided to the state hygienic
laboratory and the results of the testing.
6. A licensed retail marijuana products manufacturer shall
package and label each product manufactured as required by
rules of the division pursuant to section 124F.21.
7. All retail marijuana products that require refrigeration
to prevent spoilage must be stored and transported in a
refrigerated environment.
Sec. 32. NEW SECTION . 124F.15 Retail marijuana use ——
protections.
1. No person shall be subject to arrest, prosecution, or
penalty in any manner, or be denied any right or privilege,
including but not limited to disciplinary action by a business,
occupational, or professional licensing board, solely for
conduct permitted under this subchapter.
2. a. Except as provided in this section, neither the state
nor any of its political subdivisions shall impose any penalty
or deny any benefit or entitlement for conduct permitted
under this subchapter or for the presence of cannabinoids or
cannabinoid metabolites in the urine, blood, saliva, breath,
hair, or other tissue or fluid of a person who is twenty-one
years of age or older.
b. Except as provided in this section and section 321J.2C,
-23-
LSB 1615YH (11) 90
ss/rh 23/ 77

H.F. 442
neither the state nor any of its political subdivisions
shall deny a driver’s license, a professional license,
housing assistance, social services, or other benefits based
on marijuana use or for the presence of cannabinoids or
cannabinoid metabolites in the urine, blood, saliva, breath,
hair, or other tissue or fluid of a person who is twenty-one
years of age or older.
3. No person shall be denied custody of or visitation with a
minor for acting in accordance with this subchapter, unless the
person’s behavior creates an unreasonable danger to the minor
that can be clearly articulated and substantiated.
4. Except as provided in this section, neither the state
nor any of its political subdivisions shall deny employment
or a contract to a person for engaging in conduct permitted
under this subchapter, for a prior conviction for a nonviolent
marijuana offense that does not involve distribution to minors,
or for testing positive for the presence of cannabinoids or
cannabinoid metabolites in the urine, blood, saliva, breath,
hair, or other tissue or fluid of the individual’s body.
5. For the purposes of medical care, including organ and
tissue transplants, the use of marijuana does not constitute
the use of an illicit substance or otherwise disqualify a
person from needed medical care and may only be considered with
respect to evidence-based clinical criteria.
6. Notwithstanding any other provision of law to the
contrary, unless there is a specific finding that the
individual’s use, cultivation, or possession of marijuana could
create a danger to the individual or another person, it shall
not be a violation of conditions of parole, probation, or
pretrial release to do any of the following:
a. Engage in conduct allowed by this subchapter.
b. Test positive for marijuana, delta-9
tetrahydrocannabinol, or any other cannabinoid or metabolite of
marijuana, except as provided in section 321J.2C.
7. a. This section does not prevent a governmental employer
-24-
LSB 1615YH (11) 90
ss/rh 24/ 77

H.F. 442
from disciplining an employee or contractor for ingesting
marijuana in the workplace or for working while under the
influence of marijuana.
b. The protections provided by this section do not apply to
the extent that they conflict with a governmental employer’s
obligations under federal law or regulations or to the extent
that they would disqualify the entity from a monetary or
licensing-related benefit under federal law or regulations.
c. This section does not authorize any person to engage in,
and does not prevent the imposition of any civil, criminal,
discipline, or other penalties, including discipline or
termination by a governmental employer, any task while under
the influence of marijuana, when doing so would constitute
negligence or professional malpractice.
Sec. 33. NEW SECTION . 124F.16 Discipline.
In addition to any other sanctions prescribed by this
subchapter or rules adopted pursuant to this subchapter, the
division has the power, on its own motion or upon complaint,
after investigation and opportunity for a public hearing at
which a licensee must be afforded an opportunity to be heard,
to fine a licensee or to suspend or revoke a license issued by
the division for a violation by the licensee or by any of the
agents or employees of the licensee of the provisions of this
subchapter, or any of the rules promulgated pursuant to this
subchapter, or of any of the terms, conditions, or provisions
of the license issued by the division. The division has the
power to administer oaths and issue subpoenas to require the
presence of persons and the production of papers, books, and
records necessary to the determination of a hearing that the
division is authorized to conduct. The division shall conduct
a contested case pursuant to chapter 17A prior to imposing
discipline, except in the case of an emergency adjudication.
Sec. 34. NEW SECTION . 124F.17 Disposition of seized
materials.
1. This section shall apply in addition to any criminal,
-25-
LSB 1615YH (11) 90
ss/rh 25/ 77

H.F. 442
civil, or administrative penalties and in addition to any
other penalties prescribed by this subchapter or any rules
promulgated pursuant to this subchapter.
2. A state or local agency shall not be required to
cultivate or care for any retail marijuana or retail marijuana
product belonging to or seized from a licensee. A state or
local agency shall not be authorized to sell marijuana or
retail marijuana.
3. If the division issues a final order imposing a
disciplinary action against a licensee pursuant to section
124F.16, then, in addition to any other remedies, the
division’s final order may specify that some or all of the
licensee’s marijuana or marijuana product is not retail
marijuana or a retail marijuana product and is an illegal
controlled substance. The final order may further specify that
the licensee shall lose any interest in any of the marijuana or
marijuana product even if the marijuana or marijuana product
previously qualified as retail marijuana or a retail marijuana
product.
4. On or before January 1, 2024, the division shall adopt
rules governing the implementation of this section.
Sec. 35. NEW SECTION . 124F.18 Inspection procedures.
1. A licensee shall keep a complete set of all records
necessary to show fully the business transactions of the
licensee, all of which shall be accessible at all times during
business hours for inspection and examination by the division
or its authorized representatives. The division may require
a licensee to furnish such information as necessary for the
proper administration of this subchapter and may require an
audit to be made of the books of account and records on such
occasions as necessary by an auditor selected by the division
who shall have access to all books and records of the licensee.
All associated expenses shall be paid by the licensee.
2. Any licensed premises, including any places of storage
where retail marijuana or retail marijuana products are stored,
-26-
LSB 1615YH (11) 90
ss/rh 26/ 77

H.F. 442
cultivated, sold, dispensed, or tested shall be subject to
inspection by the state or local jurisdictions and their
investigators, during all business hours and during other times
when employees are present, for the purpose of inspection
or investigation. Access shall be required during business
hours for examination of any inventory or books and records
required to be kept by the licensees. If any part of the
licensed premises consists of a locked area, upon demand to
the licensee, such area shall be made available for inspection
without delay, and, upon request by authorized representatives
of the state or local jurisdiction, the licensee shall open the
area for inspection.
3. A licensee shall retain all books and records necessary
to show fully the business transactions of the licensee for
a period of the current tax year and the three immediately
preceding tax years.
Sec. 36. NEW SECTION . 124F.19 Marijuana excise tax.
1. An excise tax is imposed on consumers at the rate of ten
percent of the sales price of each sale of retail marijuana and
retail marijuana products.
2. The tax imposed by this section shall be paid by the
consumer to the retail marijuana establishment. Each retail
marijuana establishment shall collect from the consumer the
full amount of the tax payable on each taxable sale.
3. On the fifteenth day of each month, each retail marijuana
establishment that sells retail marijuana to a consumer shall
pay the excise taxes due on the retail marijuana that the
retail marijuana establishment sold in the previous calendar
month to the division.
Sec. 37. NEW SECTION . 124F.20 Occupational licensing ——
protections.
1. A person holding a professional or occupational license
shall not be subject to professional discipline for providing
advice or services related to retail marijuana establishments
or applications to operate retail marijuana establishments on
-27-
LSB 1615YH (11) 90
ss/rh 27/ 77

H.F. 442
the basis that marijuana is illegal under federal law.
2. An applicant for a professional or occupational license
shall not be denied a license based on previous employment
related to retail marijuana establishments operating in
accordance with state law.
Sec. 38. NEW SECTION . 124F.21 Rulemaking.
1. The division shall, within one year of the effective
date of this Act, adopt rules for the implementation of
this subchapter. The rules shall not prohibit the operation
of retail marijuana establishments or require such a high
investment of risk, money, time, or other resource or asset
that the operation of a retail marijuana establishment is not
worthy of being carried out in practice by a reasonably prudent
businessperson. Such rules shall include all of the following:
a. Procedures for the issuance, renewal, suspension, and
revocation of a registration to operate a retail marijuana
establishment, subject to chapter 17A.
b. A schedule of reasonable application, registration,
and renewal fees, provided application fees shall not exceed
five thousand dollars, with this upper limit adjusted annually
for inflation, unless the division determines a greater fee
is necessary to carry out its responsibilities under this
subchapter. Fees shall be collected by the division and used
to administer this subchapter.
c. Qualifications for registration that are directly and
demonstrably related to the operation of a retail marijuana
establishment and that may not disqualify applicants solely for
marijuana offenses prior to the effective date of this Act.
d. Security requirements.
e. Requirements for the transportation and storage of retail
marijuana and retail marijuana products by retail marijuana
establishments.
f. Requirements for the delivery of retail marijuana and
retail marijuana products to consumers, including a prohibition
on business names, logos, and other identifying language or
-28-
LSB 1615YH (11) 90
ss/rh 28/ 77

H.F. 442
images on delivery vehicles and a prohibition on delivering
retail marijuana and retail marijuana products to any address
located on land owned by the federal government or any address
on land or in a building leased by the federal government.
g. Employment and training requirements, including
requiring that each retail marijuana establishment create
an identification badge for each employee or agent. These
requirements shall not disqualify applicants solely for
marijuana offenses prior to the effective date of this Act.
h. Requirements designed to prevent the sale or diversion of
retail marijuana and retail marijuana products to persons under
the age of twenty-one.
i. Requirements for retail marijuana and retail
marijuana products sold or distributed by a retail marijuana
establishment, including prohibiting any misleading labeling
and requiring retail marijuana product labels to include all
of the following:
(1) The length of time it typically takes for the product
to take effect.
(2) A disclosure of ingredients and possible allergens.
(3) A nutritional fact panel.
(4) Requiring opaque, child resistant packaging, which must
be designed or constructed to be significantly difficult for
children under five years of age to open and not difficult for
adults to use properly as defined by 16 C.F.R. §1700.20.
(5) Requiring that edible retail marijuana products be
clearly identifiable, when practicable, with a standard symbol
indicating the retail marijuana product contains marijuana.
j. Health and safety regulations and standards for the
manufacture of retail marijuana products and both the indoor
and outdoor cultivation of retail marijuana by retail marijuana
establishments.
k. Restrictions on advertising, marketing, and signage
including but not limited to a prohibition on mass-market
campaigns that have a high likelihood of reaching minors.
-29-
LSB 1615YH (11) 90
ss/rh 29/ 77

H.F. 442
l. Rules to create at least six tiers of retail marijuana
cultivation facilities, based on the size of the facility or
the number of plants cultivated, and whether the cultivation
occurs outdoors, indoors, or in a greenhouse. Security
regulations and licensing fees must vary based on the size of
the cultivation facility.
m. Restrictions or prohibitions on additives in retail
marijuana and retail marijuana-infused products, including but
not limited to those that are toxic or designed to make the
product more addictive.
n. Prohibitions on products that are designed to make the
product more appealing to children, including prohibiting the
use of any images designed or likely to appeal to minors,
including cartoons, toys, animals, or children, and any other
images, characters, or phrases that are popularly used to
advertise to children.
o. Restrictions on the use of pesticides that are injurious
to human health.
p. Rules governing visits to retail marijuana cultivation
facilities and retail marijuana product manufacturing
facilities, including requiring the retail marijuana
establishment to log visitors.
q. A definition of the amount of delta-9
tetrahydrocannabinol that constitutes a single serving
in a retail marijuana product.
r. Standards for the safe manufacture of marijuana extracts
and concentrates.
s. Requirements that educational materials be disseminated
to consumers who purchase retail marijuana-infused products.
t. Requirements for random sample testing to ensure quality
control, including by ensuring that retail marijuana and
retail marijuana-infused products are accurately labeled for
potency. Unless the division determines that remediation or
treatment is sufficient to ensure product safety, the testing
analysis must include testing for residual solvents, poisons,
-30-
LSB 1615YH (11) 90
ss/rh 30/ 77

H.F. 442
or toxins; harmful chemicals; dangerous molds or mildew; filth;
and harmful microbials such as E. coli or salmonella and
pesticides.
u. Standards for the operation of marijuana testing
facilities, including requirements for equipment and
qualifications for personnel.
v. Civil penalties for the failure to comply with rules
adopted pursuant to this subchapter. Civil penalties shall
be collected by the division and used to administer this
subchapter.
w. Procedures for collecting taxes levied on retail
marijuana establishments.
x. Requirements for on-site consumption establishments,
including for security, ventilation, odor control, and
consumption by patrons. These rules may include a prohibition
on smoking indoors.
y. Requirements for the verification of licensure in
transactions between licensees.
2. After consultation with researchers knowledgeable
about the risks and benefits of marijuana and providing an
opportunity for public comment, the division shall develop a
scientifically accurate safety information label or handout
or both, which shall be available to each adult-use marijuana
consumer. The label or handout shall include all of the
following:
a. Advice about the potential risks of marijuana, including
all of the following:
(1) The risks of driving under the influence of marijuana,
and the fact that doing so is illegal.
(2) Any adverse effects unique to younger adults, including
related to the developing mind.
(3) Potential adverse events and other risks.
(4) The risks of using marijuana during pregnancy and
breastfeeding.
b. The need to safeguard all retail marijuana and retail
-31-
LSB 1615YH (11) 90
ss/rh 31/ 77

H.F. 442
marijuana products from children and pets.
3. The division shall review and update the safety
information materials at least once every two years to
ensure they remain accurate. The review period shall include
soliciting input from researchers knowledgeable about the
risks and benefits of marijuana and an opportunity for public
comment.
4. In order to ensure that individual privacy is protected,
the division shall not require a consumer to provide a
retail marijuana store with personal information other than
government-issued identification to determine the consumer’s
age, and a retail marijuana store shall not be required to
acquire and record personal information about consumers.
Sec. 39. NEW SECTION . 124F.22 Marijuana use by minors ——
prohibited.
Nothing in this subchapter allows the transfer of marijuana,
with or without remuneration, to a person under the age of
twenty-one years, or the use of marijuana by a person under the
age of twenty-one years.
Sec. 40. NEW SECTION . 124F.23 Private property and tenant
rights.
1. Except as provided in this section, the provisions of
this subchapter do not require any person, corporation, or any
other entity that occupies, owns, or controls a property to
allow the consumption, cultivation, display, sale, or transfer
of marijuana on or in that property.
2. a. Except as provided in this section, a landlord
or property manager shall not refuse to rent to a tenant
or otherwise discriminate against a tenant based on a past
conviction for a marijuana offense that would have been legal
under this chapter.
b. Except as provided in this section, in the case of
the rental of a residential dwelling, a landlord or property
manager shall not prohibit the possession of retail marijuana
or medical cannabis, as defined in section 124E.2, or the
-32-
LSB 1615YH (11) 90
ss/rh 32/ 77

H.F. 442
consumption of retail marijuana or medical cannabis, as defined
in section 124E.2, by nonsmoking means.
c. The limitations in this subsection do not apply in any
of the following circumstances:
(1) The tenant is a roomer who is not leasing the entire
residential dwelling.
(2) The residence is incidental to detention or the
provision of medical, geriatric, educational, counseling,
religious, or similar services.
(3) The residence is a transitional housing or sober living
facility.
(4) Failing to prohibit marijuana possession or consumption
would violate federal law or regulations or cause a landlord
or property manager to lose a monetary or licensing-related
benefit under federal law or regulations.
d. After a warning, a landlord or property manager may take
action against a tenant if the tenant’s use of marijuana or
medical cannabis, as defined in section 124E.2, creates an
odor that interferes with a person’s peaceful enjoyment of the
person’s home or property.
Sec. 41. NEW SECTION . 124F.24 Apportionment of revenue.
Revenues generated by the marijuana excise tax shall be
deposited as follows:
1. Thirty-five percent in the community reinvestment fund
created pursuant to section 124F.25.
2. Thirty-two and one-half percent in the mental health
services and substance use disorder prevention fund created
pursuant to section 124F.26.
3. Thirty-two and one-half percent in the local public
safety fund created pursuant to section 124F.27.
Sec. 42. NEW SECTION . 124F.25 Community reinvestment fund.
1. A community reinvestment fund is created under
the control of the division. Moneys in the fund shall be
appropriated by the general assembly as provided in subsection
2.
-33-
LSB 1615YH (11) 90
ss/rh 33/ 77

H.F. 442
2. Moneys in the community reinvestment fund shall
be appropriated exclusively for the purpose of funding
scholarships for Iowa students for two years of postsecondary
education at Iowa schools.
3. Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys deposited in the community reinvestment
fund shall be credited to the community reinvestment fund.
Notwithstanding section 8.33, moneys credited to the community
reinvestment fund shall not revert at the close of a fiscal
year.
Sec. 43. NEW SECTION . 124F.26 Mental health services and
substance use disorder prevention fund.
1. A mental health services and substance use disorder
prevention fund is created under the control of the division.
Moneys in the fund shall be appropriated by the general
assembly as provided in subsection 2.
2. Moneys in the mental health services and substance use
disorder prevention fund shall be appropriated exclusively for
the purposes of providing mental health services and preventing
substance use disorders.
3. Notwithstanding section 12C.7, subsection 2, interest or
earnings on moneys deposited in the mental health services and
substance use disorder prevention fund shall be credited to the
mental health services and substance use disorder prevention
fund. Notwithstanding section 8.33, moneys credited to the
mental health services and substance use disorder prevention
fund shall not revert at the close of a fiscal year.
Sec. 44. NEW SECTION . 124F.27 Local public safety fund.
1. A local public safety fund is created under the control
of the division. Moneys in the fund shall be appropriated by
the general assembly as provided in subsection 2.
2. Moneys in the local public safety fund shall be
appropriated exclusively for the purposes of supporting local
law enforcement personnel, fire department personnel, and
emergency medical personnel in municipalities.
-34-
LSB 1615YH (11) 90
ss/rh 34/ 77

H.F. 442
3. Notwithstanding section 12C.7, subsection 2, interest
or earnings on moneys deposited in the local public safety
fund shall be credited to the local public safety fund.
Notwithstanding section 8.33, moneys credited to the local
public safety fund shall not revert at the close of a fiscal
year.
Sec. 45. NEW SECTION . 332.1 Definitions.
1. “Department” means the department of revenue.
2. “Director” means the director of the department of
revenue.
3. “Retail marijuana” means the same as defined in section
124F.4.
4. “Retail marijuana store” means the same as defined in
section 124F.4.
5. “Retail sale” means the same as defined in section 423.1.
6. “Surcharge” means a retail marijuana surcharge imposed
pursuant to this chapter.
Sec. 46. NEW SECTION . 332.2 Retail marijuana surcharge.
1. A surcharge may be imposed, in accordance with the
provisions of this section, by ordinance of the board of
supervisors of a county that has not prohibited the sale of
retail marijuana. The surcharge shall be imposed at a rate of
one percent upon the retail sales price of retail marijuana.
2. The surcharge shall be in addition to the state sales tax
imposed pursuant to chapter 423, subchapter II, and the local
sales and services tax imposed pursuant to chapter 423B.
3. a. Within ten days of the passage of an ordinance
imposing a surcharge, the county auditor shall give written
notice to the director by sending a copy of the ordinance to
the director.
b. A surcharge shall be imposed either January 1 or July 1
following the notification of the director but not sooner than
ninety days following the passage of the ordinance imposing the
surcharge and not sooner than sixty days following notice to
sellers, as defined in section 423.1.
-35-
LSB 1615YH (11) 90
ss/rh 35/ 77

H.F. 442
c. A surcharge shall be repealed only on June 30 or December
31 but not sooner than ninety days following repeal of the
ordinance. At least forty days before the repeal of the
surcharge, the board of supervisors shall provide notice of the
action by certified mail to the director of revenue.
4. Upon the remittance of the revenues from the state
surcharge revenue fund to each county that has imposed a retail
marijuana surcharge under section 332.4, the revenues shall be
deposited into the general fund of the county.
Sec. 47. NEW SECTION . 332.3 Administration of surcharge.
1. The director shall administer the surcharge imposed
pursuant to this chapter as nearly as possible in conjunction
with the administration of state sales tax laws. The director
shall provide appropriate forms, or provide space on the
regular state tax forms, for reporting surcharge liability.
2. a. Section 422.25, subsection 4, sections 422.30,
422.67, and 422.68, section 422.69, subsection 1, sections
422.70, 422.71, 422.72, 422.74, and 422.75, section 423.14,
subsection 1, and sections 423.23, 423.24, 423.25, 423.31,
423.33, 423.35, 423.37 through 423.42, and 423.47, consistent
with the provisions of this chapter, apply with respect to
the surcharge authorized under this chapter, in the same
manner and with the same effect as retail sales taxes within
the meaning of those statutes. The director may require all
persons who are engaged in the business of deriving any sales
price subject to a surcharge under this chapter to register
with the department. All surcharges collected under this
chapter are deemed to be held in trust for the state of Iowa and
the counties imposing the surcharges. County officials shall
confer with the director of revenue for assistance in drafting
the ordinance imposing the surcharge. A certified copy of the
ordinance shall be filed with the director as soon as possible
after passage.
b. Frequency of deposits and quarterly reports of the
surcharge with the department of revenue are governed by the
-36-
LSB 1615YH (11) 90
ss/rh 36/ 77

H.F. 442
provisions in section 423.31. Local surcharge collections
shall not be included in computation of the total tax to
determine frequency of filing under section 423.31.
3. a. The director, in consultation with county officials,
shall collect and account for the surcharge. The director
shall certify each quarter the amount of the surcharge receipts
and any interest and penalties to be credited to the county
account in the state surcharge revenue fund established in
section 386.3C. County authorities shall not require any
permit not required by the director of revenue.
b. All surcharge revenues and interest and penalties
received or refunded one hundred eighty days or more after
the date on which the county repeals the surcharge shall be
deposited in or withdrawn from the general fund of the state.
4. Each county that has imposed a retail marijuana surcharge
under this chapter shall assist the department in identifying
new establishments required to impose the surcharge in the
county. This process shall be ongoing until the surcharge is
repealed.
Sec. 48. NEW SECTION . 332.4 State surcharge revenue fund
—— county accounts.
1. A state surcharge revenue fund is established in the
state treasury under the control of the department consisting
of the surcharge revenues collected within each county and
deposited in the fund pursuant to section 332.3. Revenues
deposited in the fund are appropriated to the department for
the purposes of this section.
2. A county account is created within the fund for each
county imposing a retail marijuana surcharge under this
chapter.
3. The department shall deposit the revenues described in
subsection 1 that were collected in a quarter beginning on or
after the imposition of the surcharge into the appropriate
county account in the fund.
4. All revenues in each county account within the fund
-37-
LSB 1615YH (11) 90
ss/rh 37/ 77

H.F. 442
shall be remitted quarterly by the department to the county
that imposed the retail marijuana surcharge for deposit in the
general fund of the county.
5. The department shall adopt rules pursuant to chapter 17A
necessary to administer the department’s responsibilities under
this chapter.
Sec. 49. NEW SECTION . 453B.19 Retail marijuana.
This chapter shall not apply to retail marijuana or retail
marijuana products produced or sold pursuant to chapter 124F.
DIVISION III
MEDICAL CANNABIS
Sec. 50. Section 124E.1, Code 2023, is amended to read as
follows:
124E.1 Short title.
This chapter shall be known and may be cited as the “Medical
Cannabidiol Cannabis Act” .
Sec. 51. Section 124E.2, subsection 2, Code 2023, is amended
by adding the following new paragraph:
NEW PARAGRAPH . l. Any other medical condition for which
the patient’s health care practitioner determines the use of
medical cannabis could be medically beneficial.
Sec. 52. Section 124E.2, subsection 7, Code 2023, is amended
to read as follows:
7. “Health care practitioner” means an individual licensed
under chapter 148 to practice medicine and surgery or
osteopathic medicine and surgery, a physician assistant
licensed under chapter 148C , an advanced registered nurse
practitioner licensed under chapter 152 , or an advanced
practice registered nurse under chapter 152E , who is a
patient’s primary care provider , or a podiatrist licensed
pursuant to chapter 149 , or a pharmacist licensed pursuant
to chapter 155A who has completed medical cannabis training
requirements imposed by the board of pharmacy .
Sec. 53. Section 124E.3, subsection 1, paragraph a, Code
2023, is amended to read as follows:
-38-
LSB 1615YH (11) 90
ss/rh 38/ 77

H.F. 442
a. (1) Determine, in the health care practitioner’s medical
judgment, whether the patient whom the health care practitioner
has examined and treated suffers from a debilitating medical
condition that qualifies for the use of medical cannabidiol
cannabis under this chapter , and if so determined, provide the
patient with a written certification of that diagnosis.
(2) If a health care practitioner determines that the
patient whom the health care practitioner has examined and
treated suffers from a debilitating medical condition pursuant
to section 124E.2, subsection 2, paragraph “l” , that qualifies
for the use of medical cannabis under this chapter, the health
care practitioner’s written certification shall be based on
reasonable medical evidence, and shall be made in good faith,
in the best interest of the patient, without fraudulent intent,
and with the same reasonable medical judgment and prudence
exercised according to generally accepted medical practice.
Sec. 54. Section 124E.4, subsection 1, paragraph e, Code
2023, is amended to read as follows:
e. Submits a medical cannabidiol cannabis registration
card fee of one hundred ten dollars to the department. If
the patient attests to receiving social security disability
benefits, supplemental security insurance payments, or being
enrolled in the medical assistance program, the fee shall be
twenty-five dollars submits documentation that the patient is a
veteran as defined in section 35.1, the department shall waive
the fee .
Sec. 55. Section 124E.4, subsection 3, paragraph c, Code
2023, is amended to read as follows:
c. Submits a medical cannabidiol cannabis registration card
fee of twenty-five ten dollars to the department.
Sec. 56. Section 124E.5, subsection 1, paragraphs a and b,
Code 2023, are amended to read as follows:
a. A medical cannabidiol cannabis board is created
consisting of eight ten practitioners representing the fields
of neurology, pain management, gastroenterology, oncology,
-39-
LSB 1615YH (11) 90
ss/rh 39/ 77

H.F. 442
psychiatry, pediatrics, family medicine, physician assistance,
advanced practice registered nursing, and pharmacy, and one
representative from law enforcement.
b. The practitioners shall be licensed in this state and
nationally board-certified in their area of specialty and
knowledgeable about the use of medical cannabidiol cannabis .
Sec. 57. Section 124E.6, subsection 1, Code 2023, is amended
to read as follows:
1. a. The department shall issue a request for proposals
to select and license by December 1, 2017, up to two medical
cannabidiol cannabis manufacturers to manufacture and to
possess, cultivate, harvest, transport, package, process,
or supply medical cannabidiol cannabis within this state
consistent with the provisions of this chapter . The department
shall license new medical cannabidiol cannabis manufacturers
or relicense the existing medical cannabidiol cannabis
manufacturers by December 1 of each year.
b. Information submitted during the application process
shall be confidential until a medical cannabidiol cannabis
manufacturer is licensed by the department unless otherwise
protected from disclosure under state or federal law.
Sec. 58. Section 124E.6, subsection 3, Code 2023, is amended
by adding the following new paragraph:
NEW PARAGRAPH . g. The demand for medical cannabis in the
state based on an evidence-based analysis performed by the
department.
Sec. 59. Section 124E.7, subsection 12, paragraph c, Code
2023, is amended to read as follows:
c. A medical cannabidiol cannabis manufacturer shall not
may manufacture edible medical cannabidiol cannabis products.
However, an edible medical cannabis product shall not appear
in a form or be sold in packaging that would be likely to
appeal to children. The department shall adopt rules for the
implementation of this paragraph.
Sec. 60. Section 124E.8, subsection 1, Code 2023, is amended
-40-
LSB 1615YH (11) 90
ss/rh 40/ 77

H.F. 442
to read as follows:
1. a. The department shall issue a request for proposals
to select and license by April 1, 2018, up to five medical
cannabidiol dispensaries to dispense medical cannabidiol within
this state consistent with the provisions of this chapter .
The department shall license new medical cannabidiol cannabis
dispensaries or relicense the existing medical cannabidiol
cannabis dispensaries by December 1 of each year.
b. Information submitted during the application process
shall be confidential until a medical cannabidiol cannabis
dispensary is licensed by the department unless otherwise
protected from disclosure under state or federal law.
Sec. 61. Section 124E.8, subsection 3, Code 2023, is amended
by adding the following new paragraph:
NEW PARAGRAPH . f. The demand for medical cannabis in the
state based on an evidence-based analysis performed by the
department.
Sec. 62. Section 124E.9, subsection 14, Code 2023, is
amended to read as follows:
14. A medical cannabidiol cannabis dispensary shall not
dispense more than a combined total of four and one-half
seventeen grams of total tetrahydrocannabinol to a patient and
the patient’s primary caregiver in a ninety-day period, except
as provided in subsection 15 .
Sec. 63. Section 124E.9, subsection 15, unnumbered
paragraph 1, Code 2023, is amended to read as follows:
A medical cannabidiol cannabis dispensary may dispense
more than a combined total of four and one-half seventeen
grams of total tetrahydrocannabinol to a patient and the
patient’s primary caregiver in a ninety-day period if any of
the following apply:
Sec. 64. Section 124E.9, subsection 15, paragraph b, Code
2023, is amended to read as follows:
b. The health care practitioner who certified the patient
to receive a medical cannabidiol cannabis registration
-41-
LSB 1615YH (11) 90
ss/rh 41/ 77

H.F. 442
card certifies that the patient has participated in the
medical cannabidiol cannabis program and that the health
care practitioner has determined that four and one-half
seventeen grams of total tetrahydrocannabinol in a ninety-day
period is insufficient to treat the patient’s debilitating
medical condition. A certification issued pursuant to this
paragraph shall include a total tetrahydrocannabinol cap deemed
appropriate by the patient’s health care practitioner.
Sec. 65. Section 124E.9, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 16. A medical cannabis dispensary shall
share information regarding the dispensation of medical
cannabis to a patient with the health care practitioner
who certified the patient to receive a medical cannabis
registration card upon request of the health care practitioner.
Sec. 66. Section 124E.11, subsection 2, paragraph h, Code
2023, is amended to read as follows:
h. Establish and implement a real-time, statewide medical
cannabidiol cannabis registry management sale tracking system
that is available to medical cannabidiol cannabis dispensaries
on a twenty-four-hour-a-day, seven-day-a-week basis for the
purpose of verifying that a person is lawfully in possession
of a medical cannabidiol cannabis registration card issued
pursuant to this chapter and for tracking the date of the sale
and quantity of medical cannabidiol cannabis purchased by a
patient or a primary caregiver. The department may share
information regarding medical cannabis purchased by a patient
or a primary caregiver with the health care practitioner who
certified the patient or primary caregiver to purchase medical
cannabis.
Sec. 67. NEW SECTION . 124E.27 Health care practitioners ——
telemedicine.
1. A health care practitioner who uses telemedicine
shall establish a valid practitioner-patient relationship
with the person who receives telemedicine services. A
-42-
LSB 1615YH (11) 90
ss/rh 42/ 77

H.F. 442
practitioner-patient relationship begins when all of the
following conditions are met:
a. A person with a health-related matter seeks assistance
from the health care practitioner.
b. The health care practitioner agrees to undertake
diagnosis and treatment of the person.
c. The person agrees to be treated by the health care
practitioner, regardless of whether there has been an in-person
encounter between the health care practitioner and the person.
2. A valid practitioner-patient relationship may be
established by any of the following:
a. An in-person medical interview and physical examination.
b. Through consultation with another health care
practitioner when the health care practitioner agrees to
participate in or supervise the patient’s care.
c. A telemedicine encounter, but only if the standard of
care does not require an in-person encounter, and in accordance
with evidence-based standards of practice and telemedicine
practice guidelines that address the clinical and technological
aspects of telemedicine.
Sec. 68. NEW SECTION . 155A.49 Medical cannabis ——
recommendation.
The board shall adopt rules establishing the requirements a
pharmacist must meet prior to recommending the use of medical
cannabis by a patient pursuant to chapter 124E.
Sec. 69. MEDICAL CANNABIDIOL —— FEDERAL EXEMPTION TASK
FORCE. The department of health and human services shall
convene a task force of legal experts to assist the department
in executing the department’s responsibilities under 2020 Iowa
Acts, chapter 1116, section 31.
DIVISION IV
MEDICAL CANNABIS —— INCOME TAXES
Sec. 70. Section 422.7, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 44. Subtract, to the extent included, the
-43-
LSB 1615YH (11) 90
ss/rh 43/ 77

H.F. 442
amount of business expense for a medical cannabis manufacturer
or medical cannabis dispensary licensed pursuant to chapter
124E without regard to section 280E of the Internal Revenue
Code.
Sec. 71. Section 422.35, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 15. Subtract, to the extent included, the
amount of business expense for a medical cannabis manufacturer
or medical cannabis dispensary licensed pursuant to chapter
124E without regard to section 280E of the Internal Revenue
Code.
DIVISION V
MEDICAL CANNABIS —— SALES AND USE TAX
Sec. 72. Section 423.3, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 110. The sales price of the sale of a
medical cannabidiol product by a medical cannabis manufacturer
or a medical cannabis dispensary pursuant to chapter 124E.
DIVISION VI
MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO MEDICAL CANNABIS ——
CONFORMING CODE CHANGES
Sec. 73. Section 124.401, subsection 5, paragraph c, Code
2023, is amended to read as follows:
c. A person may knowingly or intentionally recommend,
possess, use, dispense, deliver, transport, or administer
cannabidiol medical cannabis if the recommendation, possession,
use, dispensing, delivery, transporting, or administering is in
accordance with the provisions of chapter 124E . For purposes
of this paragraph, “cannabidiol” “medical cannabis” means the
same as defined in section 124E.2 .
Sec. 74. Section 124E.2, subsections 8, 9, 10, and 11, Code
2023, are amended to read as follows:
8. “Laboratory” means the state hygienic laboratory at
the university of Iowa in Iowa City or any other independent
medical cannabidiol cannabis testing facility accredited
-44-
LSB 1615YH (11) 90
ss/rh 44/ 77

H.F. 442
to standard ISO/IEC 17025 by an international organization
for standards-approved accrediting body, with a controlled
substance registration certificate from the United States drug
enforcement administration and a certificate of registration
from the board of pharmacy. For the purposes of this chapter ,
an independent laboratory is a laboratory operated by an entity
that has no equity ownership in a medical cannabidiol cannabis
manufacturer.
9. “Marijuana” means any derivative of marijuana including
but not limited to medical cannabidiol cannabis .
10. “Medical cannabidiol” “Medical cannabis” means any
pharmaceutical grade cannabinoid found in the plant Cannabis
sativa L. or Cannabis indica or any other preparation thereof
that is delivered in a form recommended by the medical
cannabidiol cannabis board, approved by the board of medicine,
and adopted by the department pursuant to rule.
11. “Primary caregiver” means a person who is a resident of
this state or a bordering state as defined in section 331.910 ,
including but not limited to a parent or legal guardian, at
least eighteen years of age, who has been designated by a
patient’s health care practitioner as a necessary caretaker
taking responsibility for managing the well-being of the
patient with respect to the use of medical cannabidiol cannabis
pursuant to the provisions of this chapter .
Sec. 75. Section 124E.3, subsection 1, unnumbered paragraph
1, Code 2023, is amended to read as follows:
Prior to a patient’s submission of an application for a
medical cannabidiol cannabis registration card pursuant to
section 124E.4 , a health care practitioner shall do all of the
following:
Sec. 76. Section 124E.3, subsection 1, paragraph b, Code
2023, is amended to read as follows:
b. Provide explanatory information as provided by the
department to the patient about the therapeutic use of medical
cannabidiol cannabis and the possible risks, benefits, and side
-45-
LSB 1615YH (11) 90
ss/rh 45/ 77

H.F. 442
effects of the proposed treatment.
Sec. 77. Section 124E.4, subsection 1, unnumbered paragraph
1, Code 2023, is amended to read as follows:
Subject to subsection 6 , the department may issue a medical
cannabidiol cannabis registration card to a patient who:
Sec. 78. Section 124E.4, subsection 2, unnumbered paragraph
1, Code 2023, is amended to read as follows:
A medical cannabidiol cannabis registration card issued to
a patient by the department pursuant to subsection 1 shall
contain, at a minimum, all of the following:
Sec. 79. Section 124E.4, subsection 2, paragraph b, Code
2023, is amended to read as follows:
b. The date of issuance and expiration date of the medical
cannabidiol cannabis registration card.
Sec. 80. Section 124E.4, subsection 3, unnumbered paragraph
1, Code 2023, is amended to read as follows:
For a patient in a primary caregiver’s care, subject to
subsection 6 , the department may issue a medical cannabidiol
cannabis registration card to the primary caregiver who:
Sec. 81. Section 124E.4, subsection 4, unnumbered paragraph
1, Code 2023, is amended to read as follows:
A medical cannabidiol cannabis registration card issued by
the department to a primary caregiver pursuant to subsection 3
shall contain, at a minimum, all of the following:
Sec. 82. Section 124E.4, subsection 4, paragraph c, Code
2023, is amended to read as follows:
c. The medical cannabidiol cannabis registration card
number of each patient in the primary caregiver’s care. If
the patient in the primary caregiver’s care is under the age
of eighteen, the full name of the patient’s parent or legal
guardian.
Sec. 83. Section 124E.4, subsections 5 and 6, Code 2023, are
amended to read as follows:
5. Expiration date of card. A medical cannabidiol cannabis
registration card issued pursuant to this section shall expire
-46-
LSB 1615YH (11) 90
ss/rh 46/ 77

H.F. 442
one year after the date of issuance and may be renewed.
6. Federally approved clinical trials. The department shall
not approve the issuance of a medical cannabidiol cannabis
registration card pursuant to this section for a patient who
is enrolled in a federally approved clinical trial for the
treatment of a debilitating medical condition with medical
cannabidiol cannabis .
Sec. 84. Section 124E.5, subsections 2, 3, 4, 5, and 6, Code
2023, are amended to read as follows:
2. The medical cannabidiol cannabis board shall convene at
least twice per year.
3. The duties of the medical cannabidiol cannabis board
shall include but not be limited to the following:
a. Accepting and reviewing petitions to add medical
conditions, medical treatments, or debilitating diseases to the
list of debilitating medical conditions for which the medical
use of cannabidiol cannabis would be medically beneficial under
this chapter .
b. Making recommendations relating to the removal or
addition of debilitating medical conditions to the list
of allowable debilitating medical conditions for which the
medical use of cannabidiol cannabis under this chapter would
be medically beneficial.
c. Working with the department regarding the requirements
for the licensure of medical cannabidiol cannabis manufacturers
and medical cannabidiol dispensaries, including licensure
procedures.
d. Advising the department regarding the location of medical
cannabidiol cannabis manufacturers and medical cannabidiol
cannabis dispensaries throughout the state.
e. Making recommendations relating to the form and quantity
of allowable medical uses of cannabidiol cannabis .
4. Recommendations made by the medical cannabidiol cannabis
board pursuant to subsection 3 , paragraphs “b” and “e” , shall
be made to the board of medicine for consideration, and if
-47-
LSB 1615YH (11) 90
ss/rh 47/ 77

H.F. 442
approved, shall be adopted by the board of medicine by rule.
5. On or before January 1 of each year, beginning January
1, 2018, the medical cannabidiol cannabis board shall submit a
report detailing the activities of the board.
6. The general assembly shall have the sole authority
to revise the definition of medical cannabidiol cannabis for
purposes of this chapter .
Sec. 85. Section 124E.6, subsections 2, 3, 4, and 5, Code
2023, are amended to read as follows:
2. As a condition for licensure, a medical cannabidiol
cannabis manufacturer must agree to begin supplying medical
cannabidiol cannabis to medical cannabidiol cannabis
dispensaries in this state no later than December 1, 2018.
3. The department shall consider the following factors in
determining whether to select and license a medical cannabidiol
cannabis manufacturer:
a. The technical expertise of the medical cannabidiol
cannabis manufacturer regarding medical cannabidiol cannabis .
b. The qualifications of the medical cannabidiol cannabis
manufacturer’s employees.
c. The long-term financial stability of the medical
cannabidiol cannabis manufacturer.
d. The ability to provide appropriate security measures on
the premises of the medical cannabidiol cannabis manufacturer.
e. Whether the medical cannabidiol cannabis manufacturer
has demonstrated an ability to meet certain medical cannabidiol
cannabis production needs for medical use regarding the range
of recommended dosages for each debilitating medical condition,
the range of chemical compositions of any plant of the genus
cannabis that will likely be medically beneficial for each
of the debilitating medical conditions, and the form of the
medical cannabidiol cannabis in the manner determined by the
department pursuant to rule.
f. The medical cannabidiol cannabis manufacturer’s
projection of and ongoing assessment of fees on patients with
-48-
LSB 1615YH (11) 90
ss/rh 48/ 77

H.F. 442
debilitating medical conditions.
4. A medical cannabidiol cannabis manufacturer shall
contract with a laboratory to perform spot-check testing of
the medical cannabidiol cannabis produced by the medical
cannabidiol cannabis manufacturer as provided in section
124E.7 . The department shall require that the laboratory
report testing results to the medical cannabidiol cannabis
manufacturer and the department as determined by the department
by rule. If a medical cannabidiol cannabis manufacturer
contracts with a laboratory other than the state hygienic
laboratory at the university of Iowa in Iowa City, the
department shall approve the laboratory to perform testing
pursuant to this chapter .
5. Each entity submitting an application for licensure
as a medical cannabidiol cannabis manufacturer shall pay a
nonrefundable application fee of seven thousand five hundred
dollars to the department.
Sec. 86. Section 124E.7, subsections 1, 2, 3, 4, 5, 6, 7, 8,
9, 10, and 11, Code 2023, are amended to read as follows:
1. A medical cannabidiol cannabis manufacturer shall
contract with a laboratory to perform spot-check testing of
the medical cannabidiol cannabis produced by the medical
cannabidiol cannabis manufacturer as to content, contamination,
and consistency. The cost of all laboratory testing shall be
paid by the medical cannabidiol cannabis manufacturer.
2. The operating documents of a medical cannabidiol
cannabis manufacturer shall include all of the following:
a. Procedures for the oversight of the medical cannabidiol
cannabis manufacturer and procedures to ensure accurate
recordkeeping.
b. Procedures for the implementation of appropriate security
measures to deter and prevent the theft of medical cannabidiol
cannabis and unauthorized entrance into areas containing
medical cannabidiol cannabis .
3. A medical cannabidiol cannabis manufacturer shall
-49-
LSB 1615YH (11) 90
ss/rh 49/ 77

H.F. 442
implement security requirements, including requirements for
protection of each location by a fully operational security
alarm system, facility access controls, perimeter intrusion
detection systems, and a personnel identification system.
4. A medical cannabidiol cannabis manufacturer shall
not share office space with, refer patients to, or have any
financial relationship with a health care practitioner.
5. A medical cannabidiol cannabis manufacturer shall not
permit any person to consume medical cannabidiol cannabis on
the property of the medical cannabidiol cannabis manufacturer.
6. A medical cannabidiol cannabis manufacturer is subject
to reasonable inspection by the department.
7. A medical cannabidiol cannabis manufacturer shall not
employ a person who is under eighteen years of age or who has
been convicted of a disqualifying felony offense. An employee
of a medical cannabidiol cannabis manufacturer shall be subject
to a background investigation conducted by the division of
criminal investigation of the department of public safety and a
national criminal history background check pursuant to section
124E.19 .
8. A medical cannabidiol cannabis manufacturer owner shall
not have been convicted of a disqualifying felony offense and
shall be subject to a background investigation conducted by
the division of criminal investigation of the department of
public safety and a national criminal history background check
pursuant to section 124E.19 .
9. A medical cannabidiol cannabis manufacturer shall not
operate at the same physical location as a medical cannabidiol
cannabis dispensary.
10. A medical cannabidiol cannabis manufacturer shall not
operate in any location, whether for manufacturing, possessing,
cultivating, harvesting, transporting, packaging, processing,
or supplying, within one thousand feet of a public or private
school existing before the date of the medical cannabidiol
cannabis manufacturer’s licensure by the department.
-50-
LSB 1615YH (11) 90
ss/rh 50/ 77

H.F. 442
11. A medical cannabidiol cannabis manufacturer shall
comply with reasonable restrictions set by the department
relating to signage, marketing, display, and advertising of
medical cannabidiol cannabis .
Sec. 87. Section 124E.7, subsection 12, paragraphs a and b,
Code 2023, are amended to read as follows:
a. A medical cannabidiol cannabis manufacturer shall provide
a reliable and ongoing supply of medical cannabidiol cannabis
to medical cannabidiol cannabis dispensaries pursuant to this
chapter .
b. All manufacturing, cultivating, harvesting, packaging,
and processing of medical cannabidiol cannabis shall take place
in an enclosed, locked facility at a physical address provided
to the department during the licensure process.
Sec. 88. Section 124E.8, subsections 2, 3, and 4, Code 2023,
are amended to read as follows:
2. As a condition for licensure, a medical cannabidiol
cannabis dispensary must agree to begin supplying medical
cannabidiol cannabis to patients by December 1, 2018.
3. The department shall consider the following factors in
determining whether to select and license a medical cannabidiol
cannabis dispensary:
a. The technical expertise of the medical cannabidiol
cannabis dispensary regarding medical cannabidiol cannabis .
b. The qualifications of the medical cannabidiol cannabis
dispensary’s employees.
c. The long-term financial stability of the medical
cannabidiol cannabis dispensary.
d. The ability to provide appropriate security measures on
the premises of the medical cannabidiol cannabis dispensary.
e. The medical cannabidiol cannabis dispensary’s projection
and ongoing assessment of fees for the purchase of medical
cannabidiol cannabis on patients with debilitating medical
conditions.
4. Each entity submitting an application for licensure
-51-
LSB 1615YH (11) 90
ss/rh 51/ 77

H.F. 442
as a medical cannabidiol cannabis dispensary shall pay a
nonrefundable application fee of five thousand dollars to the
department.
Sec. 89. Section 124E.9, subsections 1, 2, 3, 4, 5, 6, 7,
8, 9, 10, 11, 12, and 13, Code 2023, are amended to read as
follows:
1. a. The medical cannabidiol cannabis dispensaries shall
be located based on geographical need throughout the state to
improve patient access.
b. A medical cannabidiol cannabis dispensary may dispense
medical cannabidiol cannabis pursuant to the provisions of this
chapter but shall not dispense any medical cannabidiol cannabis
in a form or quantity other than the form or quantity allowed
by the department pursuant to rule.
2. The operating documents of a medical cannabidiol
cannabis dispensary shall include all of the following:
a. Procedures for the oversight of the medical cannabidiol
cannabis dispensary and procedures to ensure accurate
recordkeeping.
b. Procedures for the implementation of appropriate security
measures to deter and prevent the theft of medical cannabidiol
cannabis and unauthorized entrance into areas containing
medical cannabidiol cannabis .
3. A medical cannabidiol cannabis dispensary shall
implement security requirements, including requirements for
protection by a fully operational security alarm system,
facility access controls, perimeter intrusion detection
systems, and a personnel identification system.
4. A medical cannabidiol cannabis dispensary shall not
share office space with, refer patients to, or have any
financial relationship with a health care practitioner.
5. A medical cannabidiol cannabis dispensary shall not
permit any person to consume medical cannabidiol cannabis on
the property of the medical cannabidiol cannabis dispensary.
6. A medical cannabidiol cannabis dispensary is subject to
-52-
LSB 1615YH (11) 90
ss/rh 52/ 77

H.F. 442
reasonable inspection by the department.
7. A medical cannabidiol cannabis dispensary shall not
employ a person who is under eighteen years of age or who has
been convicted of a disqualifying felony offense. An employee
of a medical cannabidiol cannabis dispensary shall be subject
to a background investigation conducted by the division of
criminal investigation of the department of public safety and a
national criminal history background check pursuant to section
124E.19 .
8. A medical cannabidiol cannabis dispensary owner shall
not have been convicted of a disqualifying felony offense and
shall be subject to a background investigation conducted by
the division of criminal investigation of the department of
public safety and a national criminal history background check
pursuant to section 124E.19 .
9. A medical cannabidiol cannabis dispensary shall not
operate at the same physical location as a medical cannabidiol
cannabis manufacturer.
10. A medical cannabidiol cannabis dispensary shall not
operate in any location within one thousand feet of a public
or private school existing before the date of the medical
cannabidiol cannabis dispensary’s licensure by the department.
11. A medical cannabidiol cannabis dispensary shall comply
with reasonable restrictions set by the department relating
to signage, marketing, display, and advertising of medical
cannabidiol cannabis .
12. Prior to dispensing of any medical cannabidiol
cannabis , a medical cannabidiol cannabis dispensary shall do
all of the following:
a. Verify that the medical cannabidiol cannabis dispensary
has received a valid medical cannabidiol cannabis registration
card from a patient or a patient’s primary caregiver, if
applicable.
b. Assign a tracking number to any medical cannabidiol
cannabis dispensed from the medical cannabidiol cannabis
-53-
LSB 1615YH (11) 90
ss/rh 53/ 77

H.F. 442
dispensary.
c. Properly package medical cannabidiol cannabis in
compliance with federal law regarding child resistant packaging
and exemptions for packaging for elderly patients, and
label medical cannabidiol cannabis with a list of all active
ingredients and individually identifying information.
13. A medical cannabidiol cannabis dispensary shall employ
a pharmacist or pharmacy technician licensed or registered
pursuant to chapter 155A for the purpose of making dosing
recommendations.
Sec. 90. Section 124E.9, subsection 15, paragraph a, Code
2023, is amended to read as follows:
a. The health care practitioner who certified the patient
to receive a medical cannabidiol cannabis registration card
certifies that patient’s debilitating medical condition is a
terminal illness with a life expectancy of less than one year.
A certification issued pursuant to this paragraph shall include
a total tetrahydrocannabinol cap deemed appropriate by the
patient’s health care practitioner.
Sec. 91. Section 124E.10, Code 2023, is amended to read as
follows:
124E.10 Fees.
All fees collected by the department under this chapter
shall be retained by the department for operation of the
medical cannabidiol cannabis registration card program and
the medical cannabidiol cannabis manufacturer and medical
cannabidiol cannabis dispensary licensing programs. The moneys
retained by the department shall be considered repayment
receipts as defined in section 8.2 and shall be used for any of
the department’s duties under this chapter , including but not
limited to the addition of full-time equivalent positions for
program services and investigations. Notwithstanding section
8.33 , moneys retained by the department pursuant to this
section shall not revert to the general fund of the state but
shall remain available for expenditure only for the purposes
-54-
LSB 1615YH (11) 90
ss/rh 54/ 77

H.F. 442
specified in this section .
Sec. 92. Section 124E.11, subsection 1, paragraph a, Code
2023, is amended to read as follows:
a. The department shall maintain a confidential file of the
names of each patient to or for whom the department issues a
medical cannabidiol cannabis registration card and the name of
each primary caregiver to whom the department issues a medical
cannabidiol cannabis registration card under section 124E.4 .
Sec. 93. Section 124E.11, subsection 1, paragraph b,
subparagraph (1), subparagraph divisions (b), (c), and (d),
Code 2023, are amended to read as follows:
(b) To authorized employees of law enforcement agencies
of a state or political subdivision thereof, but only for the
purpose of verifying that a person is lawfully in possession
of a medical cannabidiol cannabis registration card issued
pursuant to this chapter .
(c) To authorized employees of a medical cannabidiol
cannabis dispensary, but only for the purposes of verifying
that a person is lawfully in possession of a medical
cannabidiol cannabis registration card issued pursuant
to this chapter and that a person has not purchased total
tetrahydrocannabinol in excess of the amount authorized by this
chapter .
(d) To any other authorized persons recognized by the
department by rule, but only for the purpose of verifying that
a person is lawfully in possession of a medical cannabidiol
cannabis registration card issued pursuant to this chapter .
Sec. 94. Section 124E.11, subsection 2, paragraphs a, b, c,
d, e, f, g, and i, Code 2023, are amended to read as follows:
a. Govern the manner in which the department shall consider
applications for new and renewal medical cannabidiol cannabis
registration cards.
b. Ensure that the medical cannabidiol cannabis registration
card program operates on a self-sustaining basis.
c. Establish the form and quantity of medical cannabidiol
-55-
LSB 1615YH (11) 90
ss/rh 55/ 77

H.F. 442
cannabis allowed to be dispensed to a patient or primary
caregiver pursuant to this chapter as appropriate to serve the
medical needs of patients with debilitating medical conditions,
subject to recommendation by the medical cannabidiol cannabis
board and approval by the board of medicine.
d. Establish requirements for the licensure of medical
cannabidiol cannabis manufacturers and medical cannabidiol
cannabis dispensaries and set forth procedures for medical
cannabidiol cannabis manufacturers and medical cannabidiol
cannabis dispensaries to obtain licenses.
e. Develop a dispensing system for medical cannabidiol
cannabis within this state that provides for all of the
following:
(1) Medical cannabidiol cannabis dispensaries within this
state housed on secured grounds and operated by licensed
medical cannabidiol cannabis dispensaries.
(2) The dispensing of medical cannabidiol cannabis to
patients and their primary caregivers to occur at locations
designated by the department.
f. Establish and collect annual fees from medical
cannabidiol cannabis manufacturers and medical cannabidiol
cannabis dispensaries to cover the costs associated with
regulating and inspecting medical cannabidiol cannabis
manufacturers and medical cannabidiol cannabis dispensaries.
g. Specify and implement procedures that address public
safety including security procedures and product quality
including measures to ensure contaminant-free cultivation of
medical cannabidiol cannabis , safety, and labeling.
i. Establish and implement a medical cannabidiol cannabis
inventory and delivery tracking system to track medical
cannabidiol cannabis from production by a medical cannabidiol
cannabis manufacturer through dispensing at a medical
cannabidiol cannabis dispensary.
Sec. 95. Section 124E.12, Code 2023, is amended to read as
follows:
-56-
LSB 1615YH (11) 90
ss/rh 56/ 77

H.F. 442
124E.12 Use of medical cannabidiol cannabis —— affirmative
defenses.
1. A health care practitioner, including any authorized
agent or employee thereof, shall not be subject to
prosecution for the unlawful certification, possession, or
administration of marijuana under the laws of this state for
activities arising directly out of or directly related to the
certification or use of medical cannabidiol cannabis in the
treatment of a patient diagnosed with a debilitating medical
condition as authorized by this chapter .
2. A medical cannabidiol cannabis manufacturer, including
any authorized agent or employee thereof, shall not be subject
to prosecution for manufacturing, possessing, cultivating,
harvesting, transporting, packaging, processing, or supplying
medical cannabidiol cannabis pursuant to this chapter .
3. A medical cannabidiol cannabis dispensary, including
any authorized agent or employee thereof, shall not be subject
to prosecution for dispensing medical cannabidiol cannabis
pursuant to this chapter .
4. a. In a prosecution for the unlawful possession of
marijuana under the laws of this state for the possession
of medical cannabidiol cannabis , including but not limited
to chapters 124 and 453B , it is an affirmative and complete
defense to the prosecution that the patient has been diagnosed
with a debilitating medical condition, used or possessed
medical cannabidiol cannabis pursuant to a certification by a
health care practitioner as authorized under this chapter , and,
for a patient eighteen years of age or older, is in possession
of a valid medical cannabidiol cannabis registration card
issued pursuant to this chapter .
b. In a prosecution for the unlawful possession of marijuana
under the laws of this state for the possession of medical
cannabidiol cannabis , including but not limited to chapters
124 and 453B , it is an affirmative and complete defense to
the prosecution that the person possessed medical cannabidiol
-57-
LSB 1615YH (11) 90
ss/rh 57/ 77

H.F. 442
cannabis because the person is a primary caregiver of a patient
who has been diagnosed with a debilitating medical condition
and is in possession of a valid medical cannabidiol cannabis
registration card issued pursuant to this chapter , and where
the primary caregiver’s possession of the medical cannabidiol
cannabis is on behalf of the patient and for the patient’s use
only as authorized under this chapter .
c. If a patient or primary caregiver is charged with
the unlawful possession of marijuana under the laws of this
state for the possession of medical cannabidiol cannabis ,
including but not limited to chapters 124 and 453B , and is not
in possession of the person’s medical cannabidiol cannabis
registration card, any charge or charges filed against the
person for the possession of medical cannabidiol cannabis
shall be dismissed by the court if the person produces to the
court prior to or at the person’s trial a medical cannabidiol
cannabis registration card issued to that person and valid at
the time the person was charged.
5. An agency of this state or a political subdivision
thereof, including any law enforcement agency, shall not remove
or initiate proceedings to remove a patient under the age
of eighteen from the home of a parent based solely upon the
parent’s or patient’s possession or use of medical cannabidiol
cannabis as authorized under this chapter .
6. The department and any health care practitioner,
including any authorized agent or employee thereof, are not
subject to any civil or disciplinary penalties by the board
of medicine or any business, occupational, or professional
licensing board or entity, solely for activities conducted
relating to a patient’s possession or use of medical
cannabidiol cannabis as authorized under this chapter . Nothing
in this section affects a professional licensing board from
taking action in response to violations of any other section
of law.
7. Notwithstanding any law to the contrary, the department,
-58-
LSB 1615YH (11) 90
ss/rh 58/ 77

H.F. 442
the governor, or any employee of any state agency shall not
be held civilly or criminally liable for any injury, loss
of property, personal injury, or death caused by any act or
omission while acting within the scope of office or employment
as authorized under this chapter .
8. An attorney shall not be subject to disciplinary action
by the Iowa supreme court or attorney disciplinary board for
providing legal assistance to a patient, primary caregiver, or
others based upon a patient’s or primary caregiver’s possession
or use of medical cannabidiol cannabis as authorized under this
chapter .
9. Possession of a medical cannabidiol cannabis
registration card or an application for a medical cannabidiol
cannabis registration card by a person entitled to possess or
apply for a medical cannabidiol cannabis registration card
shall not constitute probable cause or reasonable suspicion,
and shall not be used to support a search of the person or
property of the person possessing or applying for the medical
cannabidiol cannabis registration card, or otherwise subject
the person or property of the person to inspection by any
governmental agency.
Sec. 96. Section 124E.13, Code 2023, is amended to read as
follows:
124E.13 Medical cannabidiol cannabis source.
Medical cannabidiol cannabis provided exclusively pursuant
to a written certification of a health care practitioner, if
not legally available in this state or from any other bordering
state, shall be obtained from an out-of-state source.
Sec. 97. Section 124E.14, Code 2023, is amended to read as
follows:
124E.14 Out-of-state medical cannabidiol cannabis
dispensaries.
The department of public health shall utilize a request for
proposals process to select and license by December 1, 2017, up
to two out-of-state medical cannabidiol cannabis dispensaries
-59-
LSB 1615YH (11) 90
ss/rh 59/ 77

H.F. 442
from a bordering state to sell and dispense medical cannabidiol
cannabis to a patient or primary caregiver in possession of a
valid medical cannabidiol cannabis registration card issued
under this chapter .
Sec. 98. Section 124E.15, Code 2023, is amended to read as
follows:
124E.15 Iowa patients and primary caregivers registering in
the state of Minnesota.
A patient or a primary caregiver with a valid medical
cannabidiol cannabis registration card issued pursuant to this
chapter may register in the state of Minnesota as a visiting
qualified patient or primary caregiver and may register with
one or more medical cannabis manufacturers registered under the
laws of Minnesota.
Sec. 99. Section 124E.16, Code 2023, is amended to read as
follows:
124E.16 Penalties.
1. A person who knowingly or intentionally possesses or uses
medical cannabidiol cannabis in violation of the requirements
of this chapter is subject to the penalties provided under
chapters 124 and 453B .
2. A medical cannabidiol cannabis manufacturer or a medical
cannabidiol cannabis dispensary shall be assessed a civil
penalty of up to one thousand dollars per violation for any
violation of this chapter in addition to any other applicable
penalties.
Sec. 100. Section 124E.17, Code 2023, is amended to read as
follows:
124E.17 Use of medical cannabidiol cannabis —— smoking
prohibited.
A patient shall not consume medical cannabidiol cannabis
possessed or used as authorized under this chapter by smoking
medical cannabidiol cannabis .
Sec. 101. Section 124E.18, Code 2023, is amended to read as
follows:
-60-
LSB 1615YH (11) 90
ss/rh 60/ 77

H.F. 442
124E.18 Reciprocity.
A valid medical cannabidiol cannabis registration card,
or its equivalent, issued under the laws of another state
that allows an out-of-state patient to possess or use medical
cannabidiol cannabis in the jurisdiction of issuance shall
have the same force and effect as a valid medical cannabidiol
cannabis registration card issued pursuant to this chapter ,
except that an out-of-state patient in this state shall not
obtain medical cannabidiol cannabis from a medical cannabidiol
cannabis dispensary in this state.
Sec. 102. Section 124E.19, subsections 1, 2, and 4, Code
2023, are amended to read as follows:
1. The division of criminal investigation of the
department of public safety shall conduct thorough background
investigations for the purposes of licensing medical
cannabidiol cannabis manufacturers and medical cannabidiol
cannabis dispensaries under this chapter . The results of any
background investigation conducted pursuant to this section
shall be presented to the department.
a. An applicant for a medical cannabidiol cannabis
manufacturer license or a medical cannabidiol cannabis
dispensary license and their owners, investors, and employees
shall submit all required information on a form prescribed by
the department of public safety.
b. The department shall charge an applicant for a medical
cannabidiol cannabis manufacturer license or a medical
cannabidiol cannabis dispensary license a fee determined by
the department of public safety and adopted by the department
by rule to defray the costs associated with background
investigations conducted pursuant to the requirements of this
section . The fee shall be in addition to any other fees
charged by the department. The fee may be retained by the
department of public safety and shall be considered repayment
receipts as defined in section 8.2 .
2. The department shall require an applicant for a
-61-
LSB 1615YH (11) 90
ss/rh 61/ 77

H.F. 442
medical cannabidiol cannabis manufacturer license or a
medical cannabidiol cannabis dispensary license, their owners
and investors, and applicants for employment at a medical
cannabidiol cannabis manufacturer or medical cannabidiol
cannabis dispensary to submit fingerprints and other required
identifying information to the department on a form prescribed
by the department of public safety. The department shall
submit the fingerprint cards and other identifying information
to the division of criminal investigation of the department
of public safety for submission to the federal bureau of
investigation for the purpose of conducting a national criminal
history record check. The department may require employees and
contractors involved in carrying out a background investigation
to submit fingerprints and other identifying information for
the same purpose.
4. An applicant for a medical cannabidiol cannabis
manufacturer license or a medical cannabidiol cannabis
dispensary license shall submit information and fees required
by this section at the time of application.
Sec. 103. Section 124E.20, Code 2023, is amended to read as
follows:
124E.20 Observational effectiveness study.
The department may conduct an observational effectiveness
study in cooperation with patients and health care
practitioners and pursuant to rules of the department in order
to study the effectiveness of medical cannabidiol cannabis in
the treatment of debilitating medical conditions.
Sec. 104. Section 204.17, subsection 4, Code 2023, is
amended to read as follows:
4. Nothing in this chapter shall be construed or applied
to authorize a person to manufacture, recommend, possess, use,
dispense, deliver, transport, or administer medical cannabidiol
cannabis pursuant to chapter 124E .
Sec. 105. Section 730.5, subsection 11, paragraph f, Code
2023, is amended to read as follows:
-62-
LSB 1615YH (11) 90
ss/rh 62/ 77

H.F. 442
f. Testing or taking action against an employee or
prospective employee with a confirmed positive test result due
to the employee’s or prospective employee’s use of medical
cannabidiol cannabis as authorized under chapter 124E .
DIVISION VII
EFFECTIVE DATE
Sec. 106. EFFECTIVE DATE. This Act, being deemed of
immediate importance, takes effect upon enactment, except that
the alcoholic beverages division of the department of commerce
shall not issue a license to operate a retail marijuana
establishment prior to January 1, 2024.
DIVISION VIII
CODE EDITOR DIRECTIVE
Sec. 107. CODE EDITOR DIRECTIVE —— SUBCHAPTER DESIGNATIONS.
1. The Code editor is directed to create two new subchapters
in chapter 124F as follows:
a. Subchapter I shall be entitled “CRIMINAL PENALTIES” and
include sections 124F.1 through 124F.3.
b. Subchapter II shall be entitled “RETAIL MARIJUANA” and
include sections 124F.4 through 124F.27.
2. The Code editor may modify subchapter titles if necessary
and is directed to correct internal references in the Code as
necessary due to enactment of this section.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to marijuana, including retail marijuana
and medical cannabis.
DIVISION I —— MARIJUANA —— CRIMINAL PENALTIES. The
bill modifies criminal penalties relating to marijuana by
eliminating and modifying certain criminal provisions in
Code chapter 124 (uniform controlled substances Act), and
transferring certain criminal provisions from Code chapter 124
to new Code chapter 124F.
MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER
-63-
LSB 1615YH (11) 90
ss/rh 63/ 77

H.F. 442
MARIJUANA. The bill provides that an unauthorized person
commits a class “C” felony punishable by confinement for
no more than 10 years and a fine of at least $1,370 but not
more than $13,660 if the person violates new Code section
124F.2(1)(a) and the controlled substance involves more than
50 kilograms of marijuana. Currently, such a person commits
a class “B” felony punishable by confinement of no more than
50 years if the controlled substance involves more than 1,000
kilograms of a mixture or substance containing a detectable
amount of marijuana, or a class “B” felony punishable by
confinement of no more than 25 years if the controlled
substance involves more than 100 kilograms of marijuana but not
more than 1,000 kilograms.
The bill provides that an unauthorized person commits a
class “D” felony if the person violates new Code section
124F.2(1)(a) and the controlled substance involves more than
2 kilograms of marijuana but not more than 50 kilograms. A
class “D” felony is punishable by confinement for no more than
five years and a fine of at least $1,025 but not more than
$10,245. Currently, such a person commits a class “C” felony
if the controlled substance involves more than 50 kilograms of
marijuana but not more than 100 kilograms.
The bill provides that an unauthorized person commits an
aggravated misdemeanor if the person violates new Code section
124F.2(1)(a) and the controlled substance involves more than
12 ounces of marijuana but not more than 2 kilograms. An
aggravated misdemeanor is punishable by confinement for no more
than two years and a fine of at least $855 but not more than
$8,540. Currently, such a person commits a class “D” felony
if the controlled substance involves 50 kilograms or less of
marijuana.
The bill provides that an unauthorized person commits a
serious misdemeanor if the person violates new Code section
124F.2(1)(a) and the controlled substance involves more than
4 ounces of marijuana but not more than 12 ounces. A serious
-64-
LSB 1615YH (11) 90
ss/rh 64/ 77

H.F. 442
misdemeanor is punishable by confinement for no more than one
year and a fine of at least $430 but not more than $2,560.
Currently, such a person commits a class “D” felony.
The bill provides that an unauthorized person commits a
simple misdemeanor if the person violates new Code section
124F.2(1)(a) and the controlled substance involves 4 ounces or
less of marijuana except as otherwise provided in the bill. A
simple misdemeanor is punishable by confinement for no more
than 30 days and a fine of at least $105 but not more than $855.
Currently, such a person commits a class “D” felony. A person
who is 18 years of age or older who unlawfully manufactures
with the intent to distribute, distributes, or possesses with
the intent to distribute marijuana to another person who is
18 years of age or older in or on, or within 1,000 feet of,
the real property comprising a public or private elementary or
secondary school, public park, public swimming pool, public
recreation center, or on a marked school bus, may be sentenced
up to an additional term of confinement of five years.
POSSESSION OF MARIJUANA. The bill provides that if a person
unlawfully possesses more than 6 ounces of marijuana but not
more than 12 ounces, the person commits a serious misdemeanor.
The bill provides that if a person unlawfully possesses more
than one-half ounce of marijuana but not more than 6 ounces,
the person commits a simple misdemeanor.
The bill provides that if a person 21 years of age or older
possesses one-half ounce or less of marijuana, the person does
not commit a criminal offense but shall be assessed a civil
penalty in the amount of $100. If the person is under 21 years
of age, the person must complete 10 hours of unpaid community
service and a substance abuse program, and inform the person’s
parents or legal guardians. The bill provides that any records
relating to the civil penalty shall not be displayed for public
viewing on the Iowa court information system and such records
shall not be kept in the criminal history files maintained by
the department of public safety.
-65-
LSB 1615YH (11) 90
ss/rh 65/ 77

H.F. 442
RETAIL MARIJUANA —— POSSESSION LIMITS. The bill establishes
possession limits for retail marijuana, defined in the bill.
The bill prohibits a person 21 years of age or older from
possessing more than 5 ounces of marijuana flower, or 500
milligrams of tetrahydrocannabinol contained in a product
infused with marijuana. A person in possession of retail
marijuana in excess of amounts equivalent to the amounts
specified in the bill for the possession of marijuana is
subject to prosecution for a simple or serious misdemeanor or
a civil penalty. A retail marijuana store that sells retail
marijuana in excess of the amounts allowed in the bill is
subject to a fine or other discipline imposed by the division.
Currently, if a person unlawfully possesses marijuana, the
person shall be punished by imprisonment in the county jail for
not more than six months or by a fine of not more than $1,000,
or by both for a first offense. If the person has previously
been convicted of marijuana possession, the person commits a
serious misdemeanor under current law, and if the person has
been convicted of marijuana possession two or more times, the
person commits an aggravated misdemeanor.
JUVENILE MARIJUANA OFFENSES. The bill specifies that the
juvenile court shall have exclusive original jurisdiction in a
proceeding concerning a minor who is alleged to have committed
a violation of the bill.
GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED.
The bill strikes a provision making it a serious misdemeanor
for a person to sponsor, promote, or aid in the sponsoring
or promoting of a meeting or gathering with the knowledge or
intent that marijuana be distributed, used, or possessed at the
meeting or gathering in violation of Code chapter 124.
ACCOMMODATION OFFENSE. The bill strikes a provision
allowing a prosecution for unlawful delivery or possession with
intent to deliver marijuana, if the prosecution proves that
the defendant delivered or possessed with intent to deliver
one-half ounce or less of marijuana which was not offered for
-66-
LSB 1615YH (11) 90
ss/rh 66/ 77

H.F. 442
sale, the defendant is guilty of an accommodation offense
and rather than being sentenced for a class “D” felony under
Code section 124.401(1)(d), the person is sentenced for a
misdemeanor in violation of Code section 124.401(5). The bill
makes conforming changes to Code sections 124.401G (Iowa hemp
Act) and 124.413 (mandatory minimum sentences —— controlled
substances).
SECOND OR SUBSEQUENT OFFENSES. Currently, a person
convicted of a second or subsequent offense under Code chapter
124 may be punished by imprisonment for a period not to exceed
three times the term otherwise authorized, or fined not more
than three times the amount otherwise authorized. The bill
strikes the provision that allows for the use of a previous
marijuana conviction in determining if a person has been
convicted of a second or subsequent offense under Code chapter
124.
MARIJUANA IN MOTOR VEHICLES. The bill prohibits a driver
of a motor vehicle upon a public street or highway from using
marijuana in the passenger area of the motor vehicle. The bill
also prohibits a driver or passenger of or in a motor vehicle
upon a public street or highway from possessing marijuana in
the passenger area of a motor vehicle except in a sealed, odor
proof, child resistant container. The bill defines “passenger
area” as the area designed to seat the driver and passengers
while the motor vehicle is in operation and any area that is
readily accessible to the driver or a passenger while in their
seating positions, including the glove compartment. A person
who knowingly violates this provision of the bill is guilty of
a simple misdemeanor. A simple misdemeanor is punishable by
confinement for no more than 30 days and a fine of at least $105
but not more than $855.
The bill prohibits a person from operating a motor
vehicle with 50 or more nanograms of tetrahydrocannabinol
in the person, as measured in the person’s blood. A person
who operates a motor vehicle with 50 or more nanograms of
-67-
LSB 1615YH (11) 90
ss/rh 67/ 77

H.F. 442
tetrahydrocannabinol in the person shall have that person’s
driver’s license suspended for 180 days for a first offense and
one year for each subsequent offense. A person who refuses
to submit to chemical testing for tetrahydrocannabinol shall
have the person’s driver’s license suspended for one year for a
first offense, and two years for each subsequent offense.
EXPUNGEMENT. The bill provides that upon application by a
defendant convicted of a felony offense under Code chapter 124
(controlled substances) related to the possession or transfer
of marijuana prior to January 1, 2023, the court shall enter an
order expunging the record of such a criminal case. A person
may only seek an expungement once, but an application may
request the expungement of multiple nonviolent offenses if the
offenses arose from the same transaction or occurrence. Under
current law, misdemeanor marijuana offenses may be expunged
pursuant to Code section 901C.3 (misdemeanor expungement). The
bill requires each court, on the effective date of the bill, to
review its records to identify persons convicted of marijuana
offenses that would have been legal under the bill and to
automatically expunge each such conviction.
DIVISION II —— RETAIL MARIJUANA. Division II of the
bill relates to the regulation of retail marijuana in Iowa.
The bill grants the alcoholic beverages division of the
department of commerce (division) the authority to regulate the
cultivation, production, transportation, testing, and sale of
retail marijuana and retail marijuana products, including by
issuing appropriate licenses and promulgating rules.
The bill requires the division to transfer half of any
application fee collected to the local jurisdiction in which
the retail marijuana establishment will be located. The
bill allows local jurisdictions to impose limitations on the
operation of retail marijuana establishments, including by
prohibiting their operation.
The bill directs the division to develop and maintain a
seed-to-sale tracking system to track retail marijuana from the
-68-
LSB 1615YH (11) 90
ss/rh 68/ 77

H.F. 442
seed or immature plant stage until it is sold to a consumer at a
retail marijuana establishment.
The bill requires the division to prioritize applicants
for state licenses who currently hold a license pursuant to
Code chapter 124E (medical cannabidiol) or that are businesses
majority-owned by women, citizens or permanent legal residents
of Iowa, or disabled veterans. The bill requires the division
to issue licenses to businesses that are majority-owned by
persons who are racial minorities in a proportion that meets or
exceeds the percentage of persons in this state who are racial
minorities according to the most recent federal decennial
census.
The bill prohibits the owner of a retail marijuana
establishment from interfering with activities of employees
relating to labor organizations.
LOCAL LICENSES. The bill requires the division to transmit
any application for a retail marijuana establishment it
receives to the local jurisdiction where the establishment
will be located within seven days of receipt unless the
local jurisdiction has prohibited the operation of retail
marijuana establishments. The local jurisdiction must then
inform the division whether the application complies with
any local restrictions on the operation of retail marijuana
establishments it may have imposed. The bill requires a person
to receive approval from both the division and the local
jurisdiction before operating a retail marijuana establishment.
A person whose application for a license is denied is entitled
to a hearing and judicial review pursuant to Code chapter 17A.
RETAIL MARIJUANA LICENSES. Ninety days prior to the
expiration date of an existing license, the division shall
notify the licensee of the expiration date by first class
mail at the licensee’s address of record with the division.
A licensee may apply for the renewal of an existing license
to the division not less than 30 days prior to the date of
expiration.
-69-
LSB 1615YH (11) 90
ss/rh 69/ 77

H.F. 442
RETAIL MARIJUANA STORES. The bill allows a retail marijuana
store to purchase retail marijuana from a retail marijuana
cultivation facility. A retail marijuana store may also
sell prepackaged and labeled retail marijuana products. A
retail marijuana store must track all of its retail marijuana
and retail marijuana products from the point that they are
transferred to the retail marijuana store to the point of
sale. The bill prohibits a retail marijuana store from selling
more than one ounce of retail marijuana or its equivalent
to a person in a single transaction, excluding nonedible,
nonpsychoactive retail marijuana products.
Prior to initiating a sale, the bill requires a retail
marijuana store employee to verify that purchaser has a valid
identification card showing that the person is 21 years of age
or older. If a purchaser presents a retail marijuana store
employee with fraudulent proof of age, any action taken in
reliance on that proof of age shall not be grounds for the
revocation or suspension of a license.
The bill allows a retail marijuana store to provide to the
state hygienic laboratory a sample of its products for testing
and research purposes. The retail marijuana store shall
maintain a record of what was provided to the laboratory and
the results of the testing.
The bill prohibits a retail marijuana store from selling
any products other than retail marijuana, retail marijuana
products, marijuana accessories, nonconsumable products such as
apparel, and marijuana products such as childproof packaging
containers.
The bill prohibits the division from issuing more than one
retail marijuana store license per county, except that the
division may, upon receipt of a petition, issue one additional
retail marijuana store license per 100,000 population in the
county. The bill allows a location licensed as a retail
marijuana store to also be licensed as a medical cannabis
dispensary, pursuant to rules adopted by the division in
-70-
LSB 1615YH (11) 90
ss/rh 70/ 77

H.F. 442
consultation with the Iowa department of public health.
RETAIL MARIJUANA CULTIVATION. The bill allows the division
to issue retail marijuana cultivation facility licenses
to persons who cultivate retail marijuana for sale and
distribution to retail marijuana stores, manufacturers, or
other cultivation facilities. The bill requires a retail
marijuana cultivation facility to remit any applicable tax due.
The bill also requires a retail marijuana cultivation facility
to track the marijuana it cultivates from seed or immature
plant to wholesale purchase.
RETAIL MARIJUANA PRODUCTS MANUFACTURING LICENSES. The
bill allows the division to issue retail marijuana products
manufacturing licenses to persons who manufacture retail
marijuana products. The bill requires a retail marijuana
products manufacturer to track all of its retail marijuana from
the point it is either transferred from its retail marijuana
cultivation facility or the point when it is delivered to the
retail marijuana products manufacturer from a retail marijuana
cultivation facility to the point of transfer to a retail
marijuana store.
The bill requires retail marijuana products to be
manufactured and prepared in a facility that only manufactures
retail marijuana products, except that premises may be shared
with a medical cannabis-infused products manufacturer so long
as a virtual or physical separation of inventory is maintained.
RETAIL MARIJUANA USE —— PROTECTIONS. The bill prohibits
the state and its political subdivisions from taking certain
actions against a person on the basis that the person has
engaged in conduct allowed by the bill. The state and its
political subdivisions shall not prosecute a person, deny a
person a professional license, deny a person a benefit or
entitlement, deny a person custody or visitation of a child,
deny a person employment or a contract, or deny a person
medical care on the basis that the person has engaged in
conduct allowed by the bill. The bill also prohibits the
-71-
LSB 1615YH (11) 90
ss/rh 71/ 77

H.F. 442
state or a political subdivision from denying employment
or a contract to a person on the basis of a person’s prior
conviction of a nonviolent marijuana offense that does not
involve distribution to a minor. The bill excludes engaging
in conduct allowed by the bill from being classified as a
violation of a condition of parole, probation, or pretrial
release unless there is a specific finding that the conduct
could create a danger to the individual or another person.
The bill does not prohibit a governmental employer from
disciplining an employee or contractor for ingesting marijuana
at work or working while under the influence of marijuana, nor
does it prohibit a licensing board from imposing a penalty on a
person for engaging in conduct that would constitute negligence
or professional malpractice. The protections of the bill do
not apply to the extent that they conflict with a governmental
employer’s obligations under federal law or would disqualify
a governmental employer from a monetary or licensing-related
benefit under federal law.
FEES. The bill allows the division to collect and charge
fees. The bill sets the application fee for a person applying
for a new retail marijuana establishment license at $5,000,
which shall be divided evenly between the division and the
local jurisdiction where the license is proposed to be issued.
The bill permits a local jurisdiction to impose operating fees
on retail marijuana establishments to which it has granted a
license.
LICENSE DISCIPLINE. The bill permits the division, on its
own motion or complaint, and after investigation, notice,
a public hearing, and opportunity to be heard, to suspend
or revoke a license if the licensee or any of its agents or
employees violate a provision of the bill or a rule promulgated
by the division. The division may administer oaths and issue
subpoenas to require the presence of persons and the production
of documents. The division may impose discipline pursuant to
rules and Code chapter 17A.
-72-
LSB 1615YH (11) 90
ss/rh 72/ 77

H.F. 442
INSPECTION. The bill requires a licensee to keep a complete
set of all records necessary to show fully the business
transactions of the licensee, all of which shall be open at all
times during business hours for the inspection and examination
by the division or its duly authorized representatives.
The bill requires the licensed premises of a retail
marijuana establishment, including any places of storage
where retail marijuana or retail marijuana products are
stored, cultivated, sold, dispensed, or tested to be subject
to inspection by the state or local jurisdictions and their
investigators, during all business hours and other times
of apparent activity, for the purpose of inspection or
investigation.
STATE MARIJUANA EXCISE TAX. The bill imposes an excise tax
on consumers at the rate of 10 percent of the sale price on
each sale of retail marijuana. The tax shall be paid by the
consumer to the retail marijuana establishment at the time
of sale, and each retail marijuana establishment shall remit
the tax collected to the division on the 15th day of each
month. Revenues generated by the excise tax shall be deposited
in the community reinvestment fund, mental health services
and substance use disorder prevention fund, and local public
safety fund created in the bill. Moneys in the community
reinvestment fund, mental health services and substance use
disorder prevention fund, and local public safety fund shall be
appropriated by the general assembly for purposes enumerated
in the bill.
OCCUPATIONAL LICENSING PROTECTIONS. The bill prohibits a
professional or occupational licensing board from imposing
discipline on a licensee for providing services related to
retail marijuana establishments. The bill also prohibits a
professional or occupational licensing board from denying a
license to a person based on a person’s past employment with a
retail marijuana establishment.
RULEMAKING. The bill requires the alcoholic beverages
-73-
LSB 1615YH (11) 90
ss/rh 73/ 77

H.F. 442
division of the department of commerce to adopt rules within
one year of the effective date of the bill to adopt rules for
the implementation of the bill. The rules shall not prohibit
the operation of retail marijuana establishments or make
the operation of retail marijuana establishments so costly
as to be impractical. Required rules include but are not
limited to rules relating to applications, fees, licensure,
security requirements, labeling requirements, health and
safety requirements, restrictions on advertising, cultivation,
testing, and penalties. The division shall also develop and
regularly update safety materials to be distributed upon the
sale of retail marijuana.
ACTS PROHIBITED. The bill does not allow the transfer of
marijuana to a person under 21 years of age or the possession
of marijuana by a person under 21 years of age.
PROPERTY RIGHTS. The bill does not require the owner of
a property to allow the consumption, cultivation, display,
sale, or transfer of marijuana at that property. However, in
the case of a residential dwelling, a landlord or property
manager shall not prohibit the possession of retail marijuana
or medical cannabis or the consumption of retail marijuana
or medical cannabis by means other than smoking except under
certain circumstances. The bill allows a landlord to take
action against a tenant after a warning if the tenant’s use of
marijuana creates an odor that interferes with the peaceful
enjoyment of property by other tenants. The bill prohibits
a landlord from discriminating against a tenant or applicant
on the basis of a past conviction of a marijuana offense that
would have been legal under the bill.
LAW ENFORCEMENT. The bill prohibits law enforcement
agencies from expending resources on the investigation of or
arrest for activity related to marijuana that is in violation
of federal law if the officer performing the investigation
or arrest has reason to believe that the activity complies
with the requirements of the bill. The bill also prohibits
-74-
LSB 1615YH (11) 90
ss/rh 74/ 77

H.F. 442
an agency or political subdivision of the state from taking
an adverse action against a person on the sole basis that the
person has violated a federal law related to marijuana.
SURCHARGE. The bill allows a county that has not prohibited
the sale of retail marijuana to impose a 1 percent surcharge
on the retail sales price of retail marijuana. The surcharge
shall be administered by the department of revenue and funds
collected by the department of revenue shall be remitted to
the county on a quarterly basis. The bill includes additional
provisions regarding the implementation and operation of retail
marijuana surcharges.
DIVISION III —— MEDICAL CANNABIS. The bill changes the name
of the medical cannabidiol Act to the medical cannabis Act.
The bill allows a health care practitioner to certify a
patient for the use of medical cannabis to a patient for
any medical condition for which a patient’s health care
practitioner determines the use of medical cannabis could be
medically beneficial. The bill requires that any certification
made by a health care practitioner for a patient for a
debilitating medical condition not explicitly included on
the list of debilitating medical conditions shall be made by
a health care practitioner pursuant to reasonable medical
evidence, in good faith, in the best interest of the patient,
without fraudulent intent, and with the same reasonable medical
judgment and prudence exercised according to generally accepted
medical practice.
The bill adds pharmacists to the list of health care
practitioners able to certify a patient to receive a medical
cannabis registration card. The bill requires a pharmacist to
complete a training program designated by the board of pharmacy
prior to certifying a patient to receive a medical cannabis
registration card.
The bill lowers the fee to receive a medical cannabis
registration card from $25 to $10 and requires the department
of public health to waive the fee for veterans. The bill
-75-
LSB 1615YH (11) 90
ss/rh 75/ 77

H.F. 442
expands the membership of the medical cannabis board from 8
to 10 members and adds one member licensed as a physician
assistant and one member licensed as an advanced practice
registered nurse.
The bill allows a medical cannabis manufacturer to
manufacture edible medical cannabis products. The bill
prohibits such products from being designed or packaged in
such a way as would be likely to appeal to children. The bill
removes the cap on the number of medical cannabis manufacturers
and dispensaries that may be licensed in this state. The bill
requires the department to consider demand for medical cannabis
when licensing a medical cannabis manufacturer or dispensary.
The bill raises the cap on total tetrahydrocannabinol that
a patient may receive in a 90-day period from 4.5 grams to 17
grams.
The bill requires a medical cannabis dispensary to share
information regarding the dispensation of medical cannabis to
a patient with the health care practitioner who certified the
patient to receive a medical cannabis registration card. The
bill allows the department to share information regarding the
purchase of medical cannabis by a patient or primary caregiver
with the health care practitioner who certified the patient or
primary caregiver to receive a medical cannabis registration
card.
The bill creates standards that a health care practitioner
must meet in order to provide telemedicine services to
a patient and defines the start of a provider-patient
relationship as when a person seeks medical assistance, a
health care provider agrees to provide treatment, and the
person agrees to receive treatment. The bill allows a valid
provider-patient relationship to be formed through an in-person
encounter, through consultation with another health care
provider, or through telemedicine, but only if the standard of
care does not require an in-person encounter.
The bill requires the department of health and human
-76-
LSB 1615YH (11) 90
ss/rh 76/ 77

H.F. 442
services to convene a task force of legal experts to assist
the department in ensuring that educational and long-term care
facilities that receive federal funding and that allow the use
and administration of medical cannabidiol on the grounds of the
facilities do not lose eligibility for federal funding.
DIVISION IV —— MEDICAL CANNABIS —— INCOME TAXES. The bill
allows individuals and corporations to subtract from net
income, to the extent included, business expenses for a medical
cannabis manufacturer or medical cannabis dispensary.
DIVISION V —— MEDICAL CANNABIS —— SALES AND USE TAX. The
bill exempts sales of medical cannabis products by a medical
cannabis manufacturer or a medical cannabis dispensary pursuant
to Code chapter 124E from sales tax.
DIVISION VI —— MEDICAL CANNABIDIOL PROGRAM NAME CHANGE TO
MEDICAL CANNABIS —— CONFORMING CODE CHANGES. This division
changes references from “medical cannabidiol” to “medical
cannabis” throughout the Code.
DIVISION VII —— EFFECTIVE DATE. The bill takes effect upon
enactment, except that the alcoholic beverages division of the
department of commerce shall not issue a license to operate a
retail marijuana establishment prior to January 1, 2023.
DIVISION VIII —— CODE EDITOR DIRECTIVE. The bill directs
the Code editor to create two subchapters in new Code chapter
124F. The first subchapter shall be designated “criminal
penalties” and the second subchapter shall be designated
“retail marijuana”.
-77-
LSB 1615YH (11) 90
ss/rh 77/ 77