Bill Text: IA HF524 | 2017-2018 | 87th General Assembly | Enrolled


Bill Title: A bill for an act relating to medical cannabidiol and prescription drugs, including the establishment of the medical cannabidiol Act, the federal scheduling of a cannabidiol investigational product, and the exchange of prescription drug information, providing for civil and criminal penalties and fees, and including effective date provisions. (Formerly HSB 89.) Effective 5-12-17.

Spectrum: Committee Bill

Status: (Passed) 2017-05-12 - Signed by Governor. H.J. 1152. [HF524 Detail]

Download: Iowa-2017-HF524-Enrolled.html

House File 524 - Enrolled




                              HOUSE FILE       
                              BY  COMMITTEE ON PUBLIC
                                  SAFETY

                              (SUCCESSOR TO HSB 89)
 \5
                                   A BILL FOR
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                                         House File 524

                             AN ACT
 RELATING TO MEDICAL CANNABIDIOL AND PRESCRIPTION DRUGS,
    INCLUDING THE ESTABLISHMENT OF THE MEDICAL CANNABIDIOL ACT,
    THE FEDERAL SCHEDULING OF A CANNABIDIOL INVESTIGATIONAL
    PRODUCT, AND THE EXCHANGE OF PRESCRIPTION DRUG INFORMATION,
    PROVIDING FOR CIVIL AND CRIMINAL PENALTIES AND FEES, AND
    INCLUDING EFFECTIVE DATE PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    Section 1.  NEW SECTION.  124.201A  Cannabidiol
 investigational product ==== rules.
    1.  If a cannabidiol investigational product approved as
 a prescription drug medication by the United States food and
 drug administration is eliminated from or revised in the
 federal schedule of controlled substances by the federal drug
 enforcement agency and notice of the elimination or revision
 is given to the board, the board shall similarly eliminate
 or revise the prescription drug medication in the schedule
 of controlled substances under this chapter.  Such action by
 the board shall be immediately effective upon the date of
 publication of the final regulation containing the elimination
 or revision in the federal register.
    2.  The board shall adopt rules pursuant to chapter 17A
 to administer this section.  The board may adopt rules on an
 emergency basis as provided in section 17A.4, subsection 3, and
 section 17A.5, subsection 2, to administer this section, and
 the rules shall be effective immediately upon filing unless
 a later date is specified in the rules.  Any emergency rules
 adopted in accordance with this section shall also be published
 as a notice of intended action as provided in section 17A.4,
 subsection 1.
    Sec. 2.  Section 124.401, subsection 5, unnumbered paragraph
 3, Code 2017, is amended to read as follows:
    A person may knowingly or intentionally recommend, possess,
 use, dispense, deliver, transport, or administer cannabidiol
 if the recommendation, possession, use, dispensing, delivery,
 transporting, or administering is in accordance with the
 provisions of chapter 124D 124E.  For purposes of this
 paragraph, "cannabidiol" means the same as defined in section
 124D.2 124E.2.
    Sec. 3.  Section 124.553, subsection 8, Code 2017, is amended
 to read as follows:
    8.  The board may enter into an agreement with a prescription
 database or monitoring program operated in a state bordering
 this state or in the state of Kansas any state for the mutual
 exchange of information. Any agreement entered into pursuant
 to this subsection shall specify that all the information
 exchanged pursuant to the agreement shall be used and
 disseminated in accordance with the laws of this state.
    Sec. 4.  NEW SECTION.  124E.1  Short title.
    This chapter shall be known and may be cited as the "Medical
 Cannabidiol Act".
    Sec. 5.  NEW SECTION.  124E.2  Definitions.
    As used in this chapter:
    1.  "Bordering state" means the same as defined in section
 331.910.
    2.  "Debilitating medical condition" means any of the
 following:
    a.  Cancer, if the underlying condition or treatment produces
 one or more of the following:
    (1)  Severe or chronic pain.
    (2)  Nausea or severe vomiting.
    (3)  Cachexia or severe wasting.
    b.  Multiple sclerosis with severe and persistent muscle
 spasms.
    c.  Seizures, including those characteristic of epilepsy.
    d.  AIDS or HIV as defined in section 141A.1.
    e.  Crohn's disease.
    f.  Amyotrophic lateral sclerosis.
    g.  Any terminal illness, with a probable life expectancy of
 under one year, if the illness or its treatment produces one or
 more of the following:
    (1)  Severe or chronic pain.
    (2)  Nausea or severe vomiting.
    (3)  Cachexia or severe wasting.
    h.  Parkinson's disease.
    i.  Untreatable pain.
    3.  "Department" means the department of public health.
    4.  "Disqualifying felony offense" means a violation under
 federal or state law of a felony under federal or state law,
 which has as an element the possession, use, or distribution of
 a controlled substance, as defined in 21 U.S.C. {802(6).
    5.  "Health care practitioner" means an individual licensed
 under chapter 148 to practice medicine and surgery or
 osteopathic medicine and surgery who is a patient's primary
 care provider. "Health care practitioner" shall not include a
 physician assistant licensed under chapter 148C or an advanced
 registered nurse practitioner licensed pursuant to chapter 152
 or 152E.
    6.  "Medical cannabidiol" means any pharmaceutical
 grade cannabinoid found in the plant Cannabis sativa L. or
 Cannabis indica or any other preparation thereof that has
 a tetrahydrocannabinol level of no more than three percent
 and that is delivered in a form recommended by the medical
 cannabidiol board, approved by the board of medicine, and
 adopted by the department pursuant to rule.
    7.  "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 pursuant
 to the provisions of this chapter.
    8.  "Untreatable pain" means any pain whose cause cannot be
 removed and, according to generally accepted medical practice,
 the full range of pain management modalities appropriate for
 the patient has been used without adequate result or with
 intolerable side effects.
    9.  "Written certification" means a document signed by a
 health care practitioner, with whom the patient has established
 a patient=provider relationship, which states that the patient
 has a debilitating medical condition and identifies that
 condition and provides any other relevant information.
    Sec. 6.  NEW SECTION.  124E.3  Health care practitioner
 certification ==== duties.
    1.  Prior to a patient's submission of an application for
 a medical cannabidiol registration card pursuant to section
 124E.4, a health care practitioner shall do all of the
 following:
    a.  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
 under this chapter, and if so determined, provide the patient
 with a written certification of that diagnosis.
    b.  Provide explanatory information as provided by the
 department to the patient about the therapeutic use of medical
 cannabidiol and the possible risks, benefits, and side effects
 of the proposed treatment.
    2.  Subsequently, the health care practitioner shall do the
 following:
    a.  Determine, on an annual basis, if the patient continues
 to suffer from a debilitating medical condition and, if so,
 issue the patient a new certification of that diagnosis.
    b.  Otherwise comply with all requirements established by the
 department pursuant to rule.
    3.  A health care practitioner may provide, but has no duty
 to provide, a written certification pursuant to this section.
    Sec. 7.  NEW SECTION.  124E.4  Medical cannabidiol
 registration card.
    1.  Issuance to patient.  Subject to subsection 7, the
 department may approve the issuance of a medical cannabidiol
 registration card by the department of transportation to a
 patient who:
    a.  Is at least eighteen years of age.
    b.  Is a permanent resident of this state.
    c.  Submits a written certification to the department signed
 by the patient's health care practitioner that the patient is
 suffering from a debilitating medical condition.
    d.  Submits an application to the department, on a form
 created by the department, in consultation with the department
 of transportation, that contains all of the following:
    (1)  The patient's full name, Iowa residence address, date
 of birth, and telephone number.
    (2)  A copy of the patient's valid photograph
 identification.
    (3)  Full name, address, and telephone number of the
 patient's health care practitioner.
    (4)  Full name, residence address, date of birth, and
 telephone number of each primary caregiver of the patient, if
 any.
    (5)  Any other information required by rule.
    e.  Submits a medical cannabidiol registration card fee of
 one hundred 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.
    f.  Has not been convicted of a disqualifying felony offense.
    2.  Patient card contents.  A medical cannabidiol
 registration card issued to a patient by the department of
 transportation pursuant to subsection 1 shall contain, at a
 minimum, all of the following:
    a.  The patient's full name, Iowa residence address, and date
 of birth.
    b.  The patient's photograph.
    c.  The date of issuance and expiration date of the medical
 cannabidiol registration card.
    d.  Any other information required by rule.
    3.  Issuance to primary caregiver.  For a patient in a
 primary caregiver's care, subject to subsection 7, the
 department may approve the issuance of a medical cannabidiol
 registration card by the department of transportation to the
 primary caregiver who:
    a.  Submits a written certification to the department signed
 by the patient's health care practitioner that the patient in
 the primary caregiver's care is suffering from a debilitating
 medical condition.
    b.  Submits an application to the department, on a form
 created by the department, in consultation with the department
 of transportation, that contains all of the following:
    (1)  The primary caregiver's full name, residence address,
 date of birth, and telephone number.
    (2)  The patient's full name.
    (3)  A copy of the primary caregiver's valid photograph
 identification.
    (4)  Full name, address, and telephone number of the
 patient's health care practitioner.
    (5)  Any other information required by rule.
    c.  Has not been convicted of a disqualifying felony offense.
    d.  Submits a medical cannabidiol registration card fee of
 twenty=five dollars to the department.
    4.  Primary caregiver card contents.  A medical cannabidiol
 registration card issued by the department of transportation to
 a primary caregiver pursuant to subsection 3 shall contain, at
 a minimum, all of the following:
    a.  The primary caregiver's full name, residence address, and
 date of birth.
    b.  The primary caregiver's photograph.
    c.  The date of issuance and expiration date of the
 registration card.
    d.  The medical cannabidiol 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.
    e.  Any other information required by rule.
    5.  Expiration date of card.  A medical cannabidiol
 registration card issued pursuant to this section shall expire
 one year after the date of issuance and may be renewed.
    6.  Card issuance ==== department of transportation.  The
 department may enter into a chapter 28E agreement with the
 department of transportation to facilitate the issuance of
 medical cannabidiol registration cards pursuant to subsections
 1 and 3.
    7.  Federally approved clinical trials.  The department shall
 not approve the issuance of a medical cannabidiol 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.
    Sec. 8.  NEW SECTION.  124E.4A  Medical cannabidiol board ====
 duties.
    1.  a.  A medical cannabidiol board is created consisting of
 eight practitioners representing the fields of neurology, pain
 management, gastroenterology, oncology, psychiatry, pediatrics,
 family medicine, 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.
    c.  Applicants for membership on the board shall submit a
 membership application to the department and the governor shall
 appoint members from the applicant pool.
    d.  For purposes of this subsection, "representative from
 law enforcement" means a regularly employed member of a police
 force of a city or county, including a sheriff, or of the state
 patrol, in this state, who is responsible for the prevention
 and detection of crime and the enforcement of the criminal laws
 of this state.
    2.  The medical cannabidiol board shall convene at least
 twice but no more than four times per year.
    3.  The duties of the medical cannabidiol 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 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 under this chapter would be medically
 beneficial.
    c.  Working with the department regarding the requirements
 for the licensure of medical cannabidiol manufacturers
 and medical cannabidiol dispensaries, including licensure
 procedures.
    d.  Advising the department regarding the location of medical
 cannabidiol manufacturers and medical cannabidiol dispensaries
 throughout the state.
    e.  Making recommendations relating to the form and quantity
 of allowable medical uses of cannabidiol.
    4.  Recommendations made by the medical cannabidiol board
 pursuant to section 3, paragraphs "b" and "e", shall be made to
 the board of medicine for consideration, and if 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 board shall submit a report
 detailing the activities of the board.
    6.  The medical cannabidiol board may recommend a statutory
 revision to the definition of medical cannabidiol contained in
 this chapter that increases the tetrahydrocannabinol level to
 more than three percent, however, any such recommendation shall
 be submitted to the general assembly during the regular session
 of the general assembly following such submission. The general
 assembly shall have the sole authority to revise the definition
 of medical cannabidiol for purposes of this chapter.
    Sec. 9.  NEW SECTION.  124E.5  Medical cannabidiol
 manufacturer licensure.
    1.  a.  The department shall issue a request for proposals
 to select and license by December 1, 2017, up to two medical
 cannabidiol manufacturers to manufacture and to possess,
 cultivate, harvest, transport, package, process, or supply
 medical cannabidiol within this state consistent with the
 provisions of this chapter.  The department shall license new
 medical cannabidiol manufacturers or relicense the existing
 medical cannabidiol manufacturers by December 1 of each year.
    b.  Information submitted during the application process
 shall be confidential until a medical cannabidiol manufacturer
 is licensed by the department unless otherwise protected from
 disclosure under state or federal law.
    2.  As a condition for licensure, a medical cannabidiol
 manufacturer must agree to begin supplying medical cannabidiol
 to medical cannabidiol 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
 manufacturer:
    a.  The technical expertise of the medical cannabidiol
 manufacturer regarding medical cannabidiol.
    b.  The qualifications of the medical cannabidiol
 manufacturer's employees.
    c.  The long=term financial stability of the medical
 cannabidiol manufacturer.
    d.  The ability to provide appropriate security measures on
 the premises of the medical cannabidiol manufacturer.
    e.  Whether the medical cannabidiol manufacturer has
 demonstrated an ability to meet certain medical cannabidiol
 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 in the manner determined by the department
 pursuant to rule.
    f.  The medical cannabidiol manufacturer's projection of
 and ongoing assessment of fees on patients with debilitating
 medical conditions.
    4.  The department shall require each medical cannabidiol
 manufacturer to contract with the state hygienic laboratory at
 the university of Iowa in Iowa City or an independent medical
 cannabidiol testing laboratory to perform spot=check testing
 of the medical cannabidiol produced by the manufacturer as
 provided in section 124E.6. The department shall require that
 the laboratory report testing results to the manufacturer in a
 manner determined by the department pursuant to rule.
    5.  Each entity submitting an application for licensure as
 a medical cannabidiol manufacturer shall pay a nonrefundable
 application fee of seven thousand five hundred dollars to the
 department.
    Sec. 10.  NEW SECTION.  124E.6  Medical cannabidiol
 manufacturers.
    1.  A medical cannabidiol manufacturer shall contract with
 the state hygienic laboratory at the university of Iowa in Iowa
 City or an independent medical cannabidiol testing laboratory
 to perform spot=check testing of the medical cannabidiol
 manufactured by the medical cannabidiol manufacturer as to
 content, contamination, and consistency.  The cost of all
 laboratory testing shall be paid by the medical cannabidiol
 manufacturer.
    2.  The operating documents of a medical cannabidiol
 manufacturer shall include all of the following:
    a.  Procedures for the oversight of the medical cannabidiol
 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
 and unauthorized entrance into areas containing medical
 cannabidiol.
    3.  A medical cannabidiol manufacturer shall 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 manufacturer shall not share
 office space with, refer patients to, or have any financial
 relationship with a health care practitioner.
    5.  A medical cannabidiol manufacturer shall not permit any
 person to consume medical cannabidiol on the property of the
 medical cannabidiol manufacturer.
    6.  A medical cannabidiol manufacturer is subject to
 reasonable inspection by the department.
    7.  A medical cannabidiol 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 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.
    8.  A medical cannabidiol 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.
    9.  A medical cannabidiol manufacturer shall not operate at
 the same physical location as a medical cannabidiol dispensary.
    10.  A medical cannabidiol 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
 manufacturer's licensure by the department.
    11.  A medical cannabidiol manufacturer shall comply
 with reasonable restrictions set by the department relating
 to signage, marketing, display, and advertising of medical
 cannabidiol.
    12.  a.  A medical cannabidiol manufacturer shall provide a
 reliable and ongoing supply of medical cannabidiol to medical
 cannabidiol dispensaries pursuant to this chapter.
    b.  All manufacturing, cultivating, harvesting, packaging,
 and processing of medical cannabidiol shall take place in an
 enclosed, locked facility at a physical address provided to the
 department during the licensure process.
    c.  A medical cannabidiol manufacturer shall not manufacture
 edible medical cannabidiol products.
    Sec. 11.  NEW SECTION.  124E.7  Medical cannabidiol dispensary
 licensure.
    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 dispensaries
 or relicense the existing medical cannabidiol dispensaries by
 December 1 of each year.
    b.  Information submitted during the application process
 shall be confidential until a medical cannabidiol dispensary
 is licensed by the department unless otherwise protected from
 disclosure under state or federal law.
    2.  As a condition for licensure, a medical cannabidiol
 dispensary must agree to begin supplying medical cannabidiol to
 patients by December 1, 2018.
    3.  The department shall consider the following factors in
 determining whether to select and license a medical cannabidiol
 dispensary:
    a.  The technical expertise of the medical cannabidiol
 dispensary regarding medical cannabidiol.
    b.  The qualifications of the medical cannabidiol
 dispensary's employees.
    c.  The long=term financial stability of the medical
 cannabidiol dispensary.
    d.  The ability to provide appropriate security measures on
 the premises of the medical cannabidiol dispensary.
    e.  The medical cannabidiol dispensary's projection and
 ongoing assessment of fees for the purchase of medical
 cannabidiol on patients with debilitating medical conditions.
    4.  Each entity submitting an application for licensure as
 a medical cannabidiol dispensary shall pay a nonrefundable
 application fee of five thousand dollars to the department.
    Sec. 12.  NEW SECTION.  124E.8  Medical cannabidiol
 dispensaries.
    1.  a.  The medical cannabidiol dispensaries shall be located
 based on geographical need throughout the state to improve
 patient access.
    b.  A medical cannabidiol dispensary may dispense medical
 cannabidiol pursuant to the provisions of this chapter but
 shall not dispense any medical cannabidiol 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
 dispensary shall include all of the following:
    a.  Procedures for the oversight of the medical cannabidiol
 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
 and unauthorized entrance into areas containing medical
 cannabidiol.
    3.  A medical cannabidiol 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 dispensary shall not share
 office space with, refer patients to, or have any financial
 relationship with a health care practitioner.
    5.  A medical cannabidiol dispensary shall not permit any
 person to consume medical cannabidiol on the property of the
 medical cannabidiol dispensary.
    6.  A medical cannabidiol dispensary is subject to
 reasonable inspection by the department.
    7.  A medical cannabidiol 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 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.
    8.  A medical cannabidiol 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.
    9.  A medical cannabidiol dispensary shall not operate at the
 same physical location as a medical cannabidiol manufacturer.
    10.  A medical cannabidiol 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
 dispensary's licensure by the department.
    11.  A medical cannabidiol dispensary shall comply with
 reasonable restrictions set by the department relating to
 signage, marketing, display, and advertising of medical
 cannabidiol.
    12.  Prior to dispensing of any medical cannabidiol, a
 medical cannabidiol dispensary shall do all of the following:
    a.  Verify that the medical cannabidiol dispensary has
 received a valid medical cannabidiol registration card from a
 patient or a patient's primary caregiver, if applicable.
    b.  Assign a tracking number to any medical cannabidiol
 dispensed from the medical cannabidiol dispensary.
    c.  Properly package medical cannabidiol in compliance
 with federal law regarding child resistant packaging and
 exemptions for packaging for elderly patients, and label
 medical cannabidiol with a list of all active ingredients and
 individually identifying information.
    Sec. 13.  NEW SECTION.  124E.9  Fees.
    Medical cannabidiol registration card fees and medical
 cannabidiol manufacturer and medical cannabidiol dispensary
 application and annual fees collected by the department
 pursuant to this chapter shall be retained by the department,
 shall be considered repayment receipts as defined in section
 8.2, and shall be used for the purpose of regulating medical
 cannabidiol manufacturers and medical cannabidiol dispensaries,
 for the cost of salaries for two agents of the division of
 criminal investigation of the department of public safety
 to inspect medical cannabidiol manufacturers and medical
 cannabidiol dispensaries, and for other expenses necessary for
 the administration of this chapter.
    Sec. 14.  NEW SECTION.  124E.10  Department duties ==== rules.
    1.  a.  The department shall maintain a confidential file
 of the names of each patient to or for whom the department
 issues a medical cannabidiol registration card and the name of
 each primary caregiver to whom the department issues a medical
 cannabidiol registration card under section 124E.4.
    b.  Individual names contained in the file shall be
 confidential and shall not be subject to disclosure, except as
 provided in subparagraph (1).
    (1)  Information in the confidential file maintained
 pursuant to paragraph "a" may be released on an individual basis
 to the following persons under the following circumstances:
    (a)  To authorized employees or agents of the department and
 the department of transportation as necessary to perform the
 duties of the department and the department of transportation
 pursuant to this chapter.
    (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 registration card issued pursuant to
 this chapter.
    (c)  To authorized employees of a medical cannabidiol
 dispensary, but only for the purpose of verifying that a person
 is lawfully in possession of a medical cannabidiol registration
 card issued pursuant to 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
 registration card issued pursuant to this chapter.
    (2)  Release of information pursuant to subparagraph
 (1) shall be consistent with the federal Health Insurance
 Portability and Accountability Act of 1996, Pub. L. No.
 104=191.
    2.  The department shall adopt rules pursuant to chapter
 17A to administer this chapter which shall include but not be
 limited to rules to do all of the following:
    a.  Govern the manner in which the department shall
 consider applications for new and renewal medical cannabidiol
 registration cards.
    b.  Ensure that the medical cannabidiol registration card
 program operates on a self=sustaining basis.
    c.  Establish the form and quantity of medical cannabidiol
 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 board and approval
 by the board of medicine.
    d.  Establish requirements for the licensure of medical
 cannabidiol manufacturers and medical cannabidiol dispensaries
 and set forth procedures for medical cannabidiol manufacturers
 and medical cannabidiol dispensaries to obtain licenses.
    e.  Develop a dispensing system for medical cannabidiol
 within this state that provides for all of the following:
    (1)  Medical cannabidiol dispensaries within this state
 housed on secured grounds and operated by licensed medical
 cannabidiol dispensaries.
    (2)  The dispensing of medical cannabidiol to patients and
 their primary caregivers to occur at locations designated by
 the department.
    f.  Establish and collect annual fees from medical
 cannabidiol manufacturers and medical cannabidiol dispensaries
 to cover the costs associated with regulating and inspecting
 medical cannabidiol manufacturers and medical cannabidiol
 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, safety, and labeling.
    h.  Establish and implement a real=time, statewide
 medical cannabidiol registry management sale tracking system
 that is available to medical cannabidiol 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 registration card issued pursuant to this
 chapter and for tracking the date of the sale and quantity
 of medical cannabidiol purchased by a patient or a primary
 caregiver.
    i.  Establish and implement a medical cannabidiol inventory
 and delivery tracking system to track medical cannabidiol
 from production by a medical cannabidiol manufacturer through
 dispensing at a medical cannabidiol dispensary.
    Sec. 15.  NEW SECTION.  124E.11  Use of medical cannabidiol
 ==== 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 in the treatment
 of a patient diagnosed with a debilitating medical condition
 as authorized by this chapter.
    2.  A medical cannabidiol 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 pursuant to this chapter.
    3.  A medical cannabidiol dispensary, including any
 authorized agent or employee thereof, shall not be subject to
 prosecution for dispensing medical cannabidiol 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, 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 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 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, 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
 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 registration
 card issued pursuant to this chapter, and where the primary
 caregiver's possession of the medical cannabidiol 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, including but not
 limited to chapters 124 and 453B, and is not in possession
 of the person's medical cannabidiol registration card, any
 charge or charges filed against the person for the possession
 of medical cannabidiol shall be dismissed by the court if the
 person produces to the court prior to or at the person's trial
 a medical cannabidiol 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
 as authorized under this chapter.
    6.  The department, the department of transportation,
 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 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,
 the department of transportation, 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 as authorized under this chapter.
    9.  Possession of a medical cannabidiol registration card or
 an application for a medical cannabidiol registration card by a
 person entitled to possess or apply for a medical cannabidiol
 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 registration card, or otherwise
 subject the person or property of the person to inspection by
 any governmental agency.
    Sec. 16.  NEW SECTION.  124E.12  Medical cannabidiol source.
    Medical cannabidiol 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. 17.  NEW SECTION.  124E.13  Out=of=state medical
 cannabidiol 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 dispensaries from a
 bordering state to sell and dispense medical cannabidiol to a
 patient or primary caregiver in possession of a valid medical
 cannabidiol registration card issued under this chapter.
    Sec. 18.  NEW SECTION.  124E.14  Iowa patients and primary
 caregivers registering in the state of Minnesota.
    A patient or a primary caregiver with a valid medical
 cannabidiol 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. 19.  NEW SECTION.  124E.15  Penalties.
    1.  A person who knowingly or intentionally possesses or uses
 medical cannabidiol in violation of the requirements of this
 chapter is subject to the penalties provided under chapters 124
 and 453B.
    2.  A medical cannabidiol manufacturer or a medical
 cannabidiol 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. 20.  NEW SECTION.  124E.16  Use of medical cannabidiol ====
 smoking prohibited.
    A patient shall not consume medical cannabidiol possessed
 or used as authorized under this chapter by smoking medical
 cannabidiol.
    Sec. 21.  NEW SECTION.  124E.17  Reciprocity.
    A valid medical cannabidiol 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
 in the jurisdiction of issuance shall have the same force and
 effect as a valid medical cannabidiol registration card issued
 pursuant to this chapter, except that an out=of=state patient
 in this state shall not obtain medical cannabidiol from a
 medical cannabidiol dispensary in this state.
    Sec. 22.  Section 730.5, subsection 11, Code 2017, is amended
 by adding the following new paragraph:
    NEW PARAGRAPH.  f.  Testing or taking action against an
 individual with a confirmed positive test result due to the
 individual's use of medical cannabidiol as authorized under
 chapter 124E.
    Sec. 23.  REPEAL.  Chapter 124D, Code 2017, is repealed.
    Sec. 24.  TRANSITION PROVISIONS.  A medical cannabidiol
 registration card issued under chapter 124D prior to the
 effective date of this Act, remains effective and continues
 in effect as issued for the twelve=month period following its
 issuance. This Act does not preclude the medical cannabidiol
 registration cardholder from seeking to renew the holder's
 medical cannabidiol registration card under this Act prior to
 the expiration of the twelve=month period.
    Sec. 25.  EFFECTIVE UPON ENACTMENT.  This Act, being of
 immediate importance, takes effect upon enactment.


                                                             
                               LINDA UPMEYER
                               Speaker of the House


                                                             
                               JACK WHITVER
                               President of the Senate
    I hereby certify that this bill originated in the House and
 is known as House File 524, Eighty=seventh General Assembly.


                                                             
                               CARMINE BOAL
                               Chief Clerk of the House
 Approved                , 2017


                                                             
                               TERRY E. BRANSTAD
                               Governor

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