Bill Text: IA SF73 | 2023-2024 | 90th General Assembly | Introduced

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

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Introduced - Dead) 2023-01-18 - Subcommittee: Schultz, Dawson, and Petersen. S.J. 152. [SF73 Detail]

Download: Iowa-2023-SF73-Introduced.html

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Senate File 73 - Introduced
SENATE FILE 73
BY PETERSEN , TRONE GARRIOTT ,
CELSI , BOULTON , DOTZLER ,
JOCHUM , T. TAYLOR , DONAHUE ,
KNOX , BENNETT , WEINER ,
WINCKLER , and GIDDENS
A BILL FOR
An Act relating to marijuana, including the manufacture,
delivery, and possession of marijuana and the licensure of
retail marijuana, providing fees, including excise taxes,
establishing funds, and including penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
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.
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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.
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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. 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
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follows:
a. More than twenty-two kilograms shall be a class “C”
felony.
b. More than two kilograms but not more than twenty-two
kilograms shall be a class “D” felony.
c. More than twelve ounces but not more than two kilograms
shall be an aggravated misdemeanor.
d. More than four ounces but not more than twelve ounces
shall be punishable as a serious misdemeanor.
e. Four ounces or less shall be punishable as a simple
misdemeanor, except as provided in section 124F.3.
2. a. 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:
(1) More than six ounces but not more than twelve ounces is
a serious misdemeanor.
(2) More than one-half ounce but not more than six ounces
is a simple misdemeanor.
(3) 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
of age, the person commits a serious misdemeanor.
(a) The civil penalty shall be collected by the clerk of the
district court pursuant to section 602.8105, subsection 5.
(b) Any records relating to the civil penalty shall not
be displayed for public viewing on the Iowa court information
system.
(c) 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
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penalty shall not be disseminated to other criminal or juvenile
justice agencies.
b. Notwithstanding paragraph “a” , a municipality may, by
ordinance, allow for the legal possession of marijuana.
3. a. A person shall not possess, and a retail marijuana
store not sell, in a single transaction, retail marijuana in
excess of the following amounts:
(1) For a resident of Iowa twenty-one years of age or older:
(a) Thirty grams of marijuana flower.
(b) Five grams of marijuana concentrate.
(c) Five hundred milligrams of tetrahydrocannabinol
contained in a product infused with marijuana.
(2) For a person twenty-one years of age or older who is not
a resident of Iowa:
(a) Fifteen grams of marijuana flower.
(b) Two and one-half grams of marijuana concentrate.
(c) Two hundred fifty milligrams of tetrahydrocannabinol
contained in a product infused with marijuana.
b. A person in possession of retail marijuana in excess of
the amounts specified in paragraph “a” equivalent to the amounts
specified in subsection 2, paragraph “a” , shall be subject to
the penalties in subsection 2, paragraph “a” .
c. A retail marijuana store in violation of this subsection
shall be subject to licensee discipline pursuant to section
124F.20.
d. For purposes of this subsection, “retail marijuana” and
“retail marijuana store” mean the same as defined in section
124F.7.
4. Upon the expiration of two years following a conviction
for a violation of subsection 2, paragraph “a” , subparagraph
(3), a person may petition the court to expunge the conviction,
and if the person has had no other criminal convictions, other
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
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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.
Sec. 14. NEW SECTION . 124F.3 Delivery or possession with
the intent to deliver —— small amounts.
If the amount of marijuana delivered or possessed with
intent to deliver is one ounce or less and no remuneration was
provided, the defendant shall not be prosecuted for a violation
of this subchapter.
Sec. 15. NEW SECTION . 124F.4 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. 16. NEW SECTION . 124F.5 Marijuana use in public.
1. Marijuana shall not be consumed in areas open and
accessible to the public, including but not limited to public
transportation facilities, sporting or music venues, parks,
playgrounds, sidewalks and roads, outdoor cafes, or indoor but
public locations.
2. A person who violates this section commits a simple
misdemeanor punishable as a scheduled violation under section
805.8C, subsection 15.
3. Upon the expiration of two years following conviction
for a violation of subsection 1, a person may petition the
court to expunge the conviction, and if the person has had no
other criminal convictions, other 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
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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.
Sec. 17. 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.
Sec. 18. Section 602.8105, Code 2023, 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 “a” , subparagraph (3).
Sec. 19. Section 805.8C, Code 2023, is amended by adding the
following new subsection:
NEW SUBSECTION . 15. Marijuana violations. For marijuana
use in public violations under section 124F.5, the scheduled
fine is fifty dollars for a first violation, and one hundred
dollars for a second or subsequent violation.
Sec. 20. REPEAL. Section 124.410, Code 2023, is repealed.
DIVISION II
RETAIL MARIJUANA
Sec. 21. NEW SECTION . 124F.6 Purpose and findings.
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The general assembly finds all of the following:
1. Marijuana prohibition, like alcohol prohibition before
it, has been a wasteful and destructive failure. About half
of Americans admit to having used marijuana despite more than
eight decades of prohibition.
2. The prohibition of marijuana has had an unfair, disparate
impact on persons and communities of color.
3. The prohibition of marijuana diverts law enforcement
resources from violent and property crimes and subjects
civilians to unnecessary police interactions.
4. Keeping marijuana illegal deprives the state of
thousands of legal jobs and hundreds of millions of dollars in
tax revenue.
5. The use of marijuana should be legal for persons
twenty-one years of age or older and subject to taxation and
regulation.
Sec. 22. NEW SECTION . 124F.7 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
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 city or county.
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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.
“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
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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
marijuana or retail marijuana products under any circumstances.
Sec. 23. NEW SECTION . 124F.8 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
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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. 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.
Sec. 24. NEW SECTION . 124F.9 Retail marijuana licensure.
1. The division shall develop and maintain a seed-to-sale
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
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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. 25. NEW SECTION . 124F.10 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
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
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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.
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.
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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.
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.
Sec. 26. NEW SECTION . 124F.11 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. The division shall review the retail marijuana
establishment’s operating documents to ensure compliance with
this section.
Sec. 27. NEW SECTION . 124F.12 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
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the local licensing authority, the division shall revoke the
state license. In connection with a license, the applicant
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.
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
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
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shall report any change in manager to the division and local
licensing authority within seven days after the change.
Sec. 28. NEW SECTION . 124F.13 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
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
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subchapter, and rules promulgated 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. 29. NEW SECTION . 124F.14 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. 30. NEW SECTION . 124F.15 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
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
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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.25.
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 during a single transaction 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 cannabidiol-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
presents fraudulent proof of age in an attempt to obtain any
retail marijuana or retail cannabidiol-infused product, the
licensee or employee or any peace officer or police officer,
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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.25.
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
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
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exempt from state or local sales tax.
Sec. 31. NEW SECTION . 124F.16 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.25, 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.
5. Retail marijuana or retail marijuana products shall not
be consumed on the premises of a retail marijuana cultivation
facility.
6. The division shall not issue more than twenty retail
marijuana cultivation facility licenses.
Sec. 32. NEW SECTION . 124F.17 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
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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
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.25.
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.25, a sample of its products
to the state hygienic laboratory for testing and research
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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.25.
7. All retail marijuana products that require refrigeration
to prevent spoilage must be stored and transported in a
refrigerated environment.
8. The division shall not issue more than twenty retail
marijuana products manufacturer licenses.
Sec. 33. NEW SECTION . 124F.18 Retail marijuana transporter
license.
1. a. A retail marijuana transporter license shall be
issued by the division to a person to provide logistics,
distribution, and storage of retail marijuana and retail
marijuana products. Notwithstanding any other provisions of
law, a retail marijuana transporter license shall be valid for
two years from the date of issuance, but cannot be transferred
with a change of ownership. A licensed retail marijuana
transporter shall be responsible for the retail marijuana and
retail marijuana products once the transporter takes control
of the product.
b. A licensed retail marijuana transporter may contract with
multiple licensed retail marijuana establishments.
c. On or after July 1, 2024, all retail marijuana
transporters shall hold a valid retail marijuana transporter
license; except that an entity licensed pursuant to this
subchapter that provides its own distribution is not required
to hold a retail marijuana transporter license to transport and
distribute its products. The division shall begin accepting
applications after January 1, 2024.
2. A retail marijuana transporter licensee shall use a
seed-to-sale tracking system developed pursuant to section
124F.25 to create shipping manifests documenting the transport
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of retail marijuana and retail marijuana products throughout
the state.
Sec. 34. NEW SECTION . 124F.19 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, 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.
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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.
7. a. This section does not prevent a governmental employer
from disciplining an employee or contractor for ingesting
marijuana in the workplace or for working while impaired by
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. 35. NEW SECTION . 124F.20 Discipline.
In addition to any other sanctions prescribed by this
subchapter or rules promulgated pursuant to this subchapter,
the division has the power, on its own motion or upon
complaint, after investigation and opportunity for a public
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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. 36. NEW SECTION . 124F.21 Disposition of seized
materials.
1. This section shall apply in addition to any criminal,
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.20, 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
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product.
4. On or before January 1, 2024, the division shall adopt
rules governing the implementation of this section.
Sec. 37. NEW SECTION . 124F.22 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,
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. 38. NEW SECTION . 124F.23 Marijuana excise tax.
1. An excise tax is imposed on consumers at the rate of
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twenty 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.
4. The retail marijuana excise tax shall be separately
itemized from a local marijuana excise tax on the receipt
provided to the purchaser.
Sec. 39. NEW SECTION . 124F.24 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
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. 40. NEW SECTION . 124F.25 Rulemaking.
1. The division shall, within one hundred eighty days 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
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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
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
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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.
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
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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,
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
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on smoking indoors.
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
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. 41. NEW SECTION . 124F.26 Driving under the influence
of marijuana —— prohibited.
Nothing in this subchapter allows driving under the
influence of marijuana or while impaired by marijuana.
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Sec. 42. NEW SECTION . 124F.27 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. 43. NEW SECTION . 124F.28 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 the consumption of retail marijuana 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.
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d. After a warning, a landlord or property manager may
take action against a tenant if the tenant’s use of marijuana
creates an odor that interferes with a person’s peaceful
enjoyment of the person’s home or property.
Sec. 44. NEW SECTION . 124F.29 Contracts enforceable.
It is the public policy of this state that contracts related
to the operation of a retail marijuana establishment registered
pursuant to this subchapter should be enforceable. It is
the public policy of this state that no contract entered
into by a retail marijuana establishment or its employees
or agents as permitted pursuant to a valid registration, or
by those who allow property to be used by an establishment,
its employees, or its agents as permitted pursuant to a
valid registration, shall be unenforceable on the basis
that cultivating, obtaining, manufacturing, distributing,
dispensing, transporting, selling, possessing, or using
marijuana or hemp is prohibited by federal law.
Sec. 45. NEW SECTION . 124F.30 Law enforcement ——
limitations.
1. No law enforcement officer employed by an agency that
receives state or local government funds shall expend any state
or local resources, including the officer’s time, to effect any
arrest or seizure of marijuana, or conduct any investigation,
on the sole basis of activity the officer believes to
constitute a violation of federal law, if the officer has
reason to believe that such activity is in compliance with
this chapter, nor shall any such officer expend any state or
local resources, including the officer’s time, to provide any
information or logistical support related to such activity to
any federal law enforcement authority or prosecuting entity.
2. No agency or political subdivision of this state shall
rely on a violation of federal law related to marijuana as the
sole basis for taking an adverse action against a person.
Sec. 46. NEW SECTION . 124F.31 Apportionment of revenue.
Revenues generated in excess of the amount needed to
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implement and enforce this subchapter by the marijuana excise
tax shall be distributed by the division every three months as
follows:
1. Seven percent to the Iowa department of public health for
use in evidence-based, voluntary programs for the prevention or
treatment of substance abuse.
2. Seventeen percent to the Iowa department of public health
for enhancement of the state’s mental health systems.
3. Up to one percent to the department of public safety
to fund impaired driving enforcement and drug recognition
training. If the entire one percent is not needed for
training, any excess shall be distributed to the general fund.
4. Seventy-five percent to the general fund.
Sec. 47. NEW SECTION . 423H.1 Definitions.
For the purposes of this chapter, unless the context
otherwise requires, “retail marijuana” , “retail marijuana
establishment” , and “retail marijuana product” mean the same as
defined in section 124F.7.
Sec. 48. NEW SECTION . 423H.2 Local marijuana excise tax.
1. A municipality may by ordinance adopt an excise tax at a
rate of no more than three percent of the sales price of each
sale of retail marijuana and retail marijuana products to a
consumer under the jurisdiction of the municipality pursuant
to chapter 124F, subchapter II.
2. A municipality shall provide notice of the imposition
of an excise tax under this section and the amount of the tax
to the department of revenue at least ninety days prior to
the first day of the tax quarter when the excise tax will be
collected.
3. A local marijuana excise tax imposed pursuant to 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.
4. On the fifteenth day of each month, each retail marijuana
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establishment that sells retail marijuana to a consumer
shall pay the local marijuana excise taxes due on the retail
marijuana that the retail marijuana establishment sold in the
previous calendar month to the municipality.
5. The local marijuana excise tax imposed by this section
is separate from and in addition to the marijuana excise tax
imposed pursuant to section 124F.23. The local marijuana
excise tax imposed pursuant to this section shall not be part
of the sales price to which the marijuana excise tax applies.
6. The local marijuana excise tax shall be separately
itemized from the marijuana excise tax imposed pursuant to
section 124F.23 on the receipt provided to the purchaser.
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.
Sec. 50. 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.5.
b. Subchapter II shall be entitled “retail marijuana” and
include sections 124F.6 through 124F.31.
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.
Sec. 51. EFFECTIVE DATE. This Act takes effect January
1, 2024, except that the alcoholic beverages division of the
department of commerce may adopt rules for the implementation
of this Act prior to that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
DIVISION I —— CRIMINAL PENALTIES. This bill modifies
criminal penalties relating to marijuana by eliminating and
modifying certain criminal provisions in Code chapter 124
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(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
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
22 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)(b) and the controlled substance involves more than
2 kilograms of marijuana but not more than 22 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)(c) 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.
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The bill provides that an unauthorized person commits a
serious misdemeanor if the person violates new Code section
124F.2(1)(d) and the controlled substance involves more than
4 ounces of marijuana but not more than 12 ounces. A serious
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)(e) 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.
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 offense shall be punishable as a serious
misdemeanor, which may be expunged after two years if the
person does not commit additional criminal violations other
than traffic offenses. 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.
The bill allows a municipality to adopt an ordinance to allow
for the legal possession of marijuana.
RETAIL MARIJUANA —— POSSESSION LIMITS. The bill establishes
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possession limits for retail marijuana, defined in the
bill. The bill prohibits a resident of Iowa 21 years of
age or older from possessing more than 30 grams of marijuana
flower, 5 grams of marijuana concentrate, or 500 milligrams
of tetrahydrocannabinol contained in a product infused with
marijuana. Persons 21 years of age or older who are not
residents of Iowa may possess retail marijuana of no more
than 15 grams of marijuana flower, 2.5 grams of marijuana
concentrate, or 250 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 such amounts 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.
DELIVERY OR POSSESSION OF MARIJUANA —— SMALL AMOUNTS. If
the amount of marijuana delivered or possessed with intent to
deliver is one ounce or less and no remuneration was provided,
the defendant shall not be prosecuted for a violation of the
bill.
MARIJUANA USE IN PUBLIC. The bill prohibits the consumption
of marijuana in areas open and accessible to the public,
including but not limited to public transportation facilities,
sporting or music venues, parks, playgrounds, sidewalks and
roads, outdoor cafes, or indoor but public locations. A person
who violates this provision commits a simple misdemeanor
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punishable as a scheduled violation in the amount of $50 for
a first offense and $100 for a second or subsequent offense.
This violation may be expunged after two years if the person
does not commit additional criminal violations other than
traffic offenses.
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
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
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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.
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
seed or immature plant stage until it is sold to a consumer at a
retail marijuana establishment.
LOCAL LICENSES. The bill requires the division to transmit
any application for a retail marijuana establishment it
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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.
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.
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
in a single transaction to a person, excluding nonedible,
nonpsychoactive retail marijuana products.
Prior to initiating a sale, the bill requires a retail
marijuana store employee to verify that 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.
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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.
RETAIL MARIJUANA CULTIVATION. The bill allows the division
to issue up to 20 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 up to 20 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 cannabidiol-infused products manufacturer so
long as a virtual or physical separation of inventory is
maintained.
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RETAIL MARIJUANA TRANSPORTATION. The bill allows the
division to issue a retail marijuana transporter license to
a person to provide logistics, distribution, and storage of
retail marijuana and retail marijuana products. The bill
requires a retail marijuana transporter to use the seed-to-sale
tracking system to create shipping manifests documenting the
transport of retail marijuana and retail marijuana products.
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
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 impaired by 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.
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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.
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 EXCISE TAX. The bill imposes an excise tax on
consumers at the rate of 20 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
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the tax collected to the division on the 15th day of each
month. Revenues generated by the excise tax shall be used to
administer the retail marijuana program. Excess funds shall be
distributed as provided by the bill to the Iowa department of
public health, the department of public safety, and the general
fund of the state.
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
division to adopt rules within 180 days 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 driving while under
the influence of or impaired by marijuana and 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 the consumption of retail marijuana by means other than
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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.
CONTRACTS. The bill states that it is the public policy
of the state that contracts relating to retail marijuana
shall not be unenforceable on the basis that the production,
distribution, and possession of marijuana is prohibited by
federal law.
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
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.
LOCAL EXCISE TAX. The bill allows a municipality to adopt
by ordinance an excise tax of no more than 3 percent on retail
marijuana sold in the municipality. The bill requires a
municipality to inform the department of revenue at least 90
days prior to the first day of the tax quarter when the excise
tax will be collected. 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 municipality on the 15th day of each month.
The bill takes effect January 1, 2024, except that the
alcoholic beverages division may adopt rules prior to that date
for the implementation of the bill.
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