Bill Text: IA HSB242 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to the medical cannabidiol program including medical cannabidiol dispensaries and manufacturers, income tax deductions, and sales and use tax, and including retroactive applicability provisions.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-03-30 - Subcommittee: Kaufmann, Forbes and Harris. H.J. 747. [HSB242 Detail]
Download: Iowa-2023-HSB242-Introduced.html
House
Study
Bill
242
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
the
medical
cannabidiol
program
including
1
medical
cannabidiol
dispensaries
and
manufacturers,
income
2
tax
deductions,
and
sales
and
use
tax,
and
including
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
2528YC
(1)
90
ss/rh
H.F.
_____
DIVISION
I
1
MEDICAL
CANNABIDIOL
PROGRAM
2
Section
1.
Section
124E.2,
subsection
10,
Code
2023,
is
3
amended
by
striking
the
subsection
and
inserting
in
lieu
4
thereof
the
following:
5
10.
“Medical
cannabidiol”
means
any
species
of
the
genus
6
cannabis
plant,
or
any
mixture
or
preparation
thereof,
7
including
whole
plant
extracts
and
resins,
that
is
delivered
8
in
any
of
the
following
forms:
9
a.
Oral
forms,
including
but
not
limited
to:
10
(1)
Tablets.
11
(2)
Capsules.
12
(3)
Liquids.
13
(4)
Tinctures.
14
(5)
Sublingual
forms.
15
b.
Topical
forms,
including
but
not
limited
to:
16
(1)
Gels.
17
(2)
Ointments,
creams,
or
lotions.
18
(3)
Transdermal
patches.
19
c.
Inhaled
forms,
limited
to:
20
(1)
Nebulizable
inhaled
forms.
21
(2)
Vaporizable
dried
raw
cannabis.
22
(3)
Other
vaporizable
forms
of
cannabis.
23
Sec.
2.
Section
124E.8,
subsection
1,
paragraph
a,
Code
24
2023,
is
amended
to
read
as
follows:
25
a.
The
department
shall
issue
a
request
for
proposals
accept
26
applications
to
select
and
license
by
April
1,
2018,
up
to
27
five
ten
medical
cannabidiol
dispensaries
to
dispense
medical
28
cannabidiol
within
this
state
consistent
with
the
provisions
29
of
this
chapter
.
The
department
shall
license
new
medical
30
cannabidiol
dispensaries
or
relicense
the
existing
medical
31
cannabidiol
dispensaries
by
December
1
of
each
year.
32
Sec.
3.
Section
124E.8,
subsection
2,
Code
2023,
is
amended
33
by
striking
the
subsection.
34
Sec.
4.
Section
124E.8,
Code
2023,
is
amended
by
adding
the
35
-1-
LSB
2528YC
(1)
90
ss/rh
1/
4
H.F.
_____
following
new
subsection:
1
NEW
SUBSECTION
.
3A.
The
department
shall
not
issue
a
2
license
for
a
medical
cannabidiol
dispensary
to
be
located
in
a
3
county
with
a
medical
cannabidiol
dispensary
that
was
licensed
4
prior
to
January
1,
2023.
5
Sec.
5.
Section
124E.9,
subsection
1,
Code
2023,
is
amended
6
to
read
as
follows:
7
1.
a.
The
medical
cannabidiol
dispensaries
shall
be
located
8
based
on
geographical
need
throughout
the
state
to
improve
9
patient
access.
10
b.
A
medical
cannabidiol
dispensary
may
dispense
medical
11
cannabidiol
pursuant
to
the
provisions
of
this
chapter
but
12
shall
not
dispense
any
medical
cannabidiol
in
a
form
or
13
quantity
other
than
the
form
or
quantity
allowed
by
the
14
department
pursuant
to
rule.
15
Sec.
6.
MEDICAL
CANNABIDIOL
DISPENSARY
LICENSES
——
CURRENT
16
LICENSEES.
17
1.
The
department
of
health
and
human
services
shall
accept
18
applications
for
new
medical
cannabidiol
dispensary
licenses
19
from
current
licensees
between
July
1,
2023,
and
October
1,
20
2023.
21
2.
Notwithstanding
section
124E.8,
subsection
3,
in
22
evaluating
an
application
pursuant
to
this
section,
the
23
department
shall
consider
only
the
security,
physical
layout,
24
and
plan
for
technology
at
the
proposed
location.
25
3.
A
licensee
submitting
an
application
pursuant
to
26
this
section
may
hold
a
maximum
of
four
medical
cannabidiol
27
dispensary
licenses,
including
the
licensee’s
current
license.
28
DIVISION
II
29
MEDICAL
CANNABIDIOL
——
INCOME
TAXES
30
Sec.
7.
Section
422.7,
Code
2023,
is
amended
by
adding
the
31
following
new
subsection:
32
NEW
SUBSECTION
.
44.
Subtract,
to
the
extent
included,
33
the
amount
of
business
expense
for
a
medical
cannabidiol
34
manufacturer
or
medical
cannabidiol
dispensary
licensed
35
-2-
LSB
2528YC
(1)
90
ss/rh
2/
4
H.F.
_____
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
1
Internal
Revenue
Code.
2
Sec.
8.
Section
422.35,
Code
2023,
is
amended
by
adding
the
3
following
new
subsection:
4
NEW
SUBSECTION
.
15.
Subtract,
to
the
extent
included,
5
the
amount
of
business
expense
for
a
medical
cannabidiol
6
manufacturer
or
medical
cannabidiol
dispensary
licensed
7
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
8
Internal
Revenue
Code.
9
Sec.
9.
RETROACTIVE
APPLICABILITY.
This
division
of
this
10
Act
applies
retroactively
to
January
1,
2023,
for
tax
years
11
beginning
on
or
after
that
date.
12
DIVISION
III
13
MEDICAL
CANNABIDIOL
——
SALES
AND
USE
TAX
14
Sec.
10.
Section
423.3,
Code
2023,
is
amended
by
adding
the
15
following
new
subsection:
16
NEW
SUBSECTION
.
110.
The
sales
price
of
the
sale
of
17
a
medical
cannabidiol
product
by
a
medical
cannabidiol
18
manufacturer
or
a
medical
cannabidiol
dispensary
pursuant
to
19
chapter
124E.
20
EXPLANATION
21
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
22
the
explanation’s
substance
by
the
members
of
the
general
assembly.
23
This
bill
relates
to
the
medical
cannabidiol
program
and
is
24
organized
in
divisions.
25
DIVISION
I
——
MEDICAL
CANNABIDIOL
PROGRAM.
The
bill
changes
26
the
definition
of
“medical
cannabidiol”
to
include
specific
27
forms
of
oral,
topical,
and
inhalable
cannabis.
28
The
bill
increases
the
maximum
number
of
medical
cannabidiol
29
dispensary
licenses
in
the
state
from
5
to
10.
The
bill
30
prohibits
the
department
of
health
and
human
services
from
31
issuing
a
new
medical
cannabidiol
dispensary
license
for
a
32
dispensary
to
be
located
in
a
county
with
a
medical
cannabidiol
33
dispensary
that
was
licensed
prior
to
January
1,
2023.
The
34
bill
strikes
a
provision
requiring
the
department
to
locate
35
-3-
LSB
2528YC
(1)
90
ss/rh
3/
4
H.F.
_____
medical
cannabidiol
dispensaries
based
on
geographical
need
1
throughout
the
state.
2
The
bill
requires
the
department
of
health
and
human
3
services
to
accept
applications
for
medical
cannabidiol
4
dispensary
licenses
from
current
licensees
between
July
1,
5
2023,
and
October
1,
2023.
In
evaluating
an
application
from
6
a
current
licensee,
the
department
shall
consider
only
the
7
security,
physical
layout,
and
plan
for
technology
at
the
8
proposed
location.
A
licensee
may
hold
a
maximum
of
four
9
medical
cannabidiol
dispensary
licenses.
10
The
bill
strikes
a
provision
in
current
law
requiring
a
11
medical
cannabidiol
dispensary
to
agree
to
begin
supplying
12
medical
cannabidiol
by
December
1,
2018.
13
DIVISION
II
——
MEDICAL
CANNABIDIOL
——
INCOME
TAXES.
The
14
bill
allows
individuals
and
corporations
to
subtract
from
net
15
income,
to
the
extent
included,
business
expenses
for
a
medical
16
cannabidiol
manufacturer
or
medical
cannabidiol
dispensary.
17
This
division
of
the
bill
applies
retroactively
to
January
1,
18
2023,
for
tax
years
beginning
on
or
after
that
date.
19
DIVISION
III
——
MEDICAL
CANNABIDIOL
——
SALES
AND
USE
TAX.
20
The
bill
exempts
sales
of
medical
cannabidiol
products
by
a
21
medical
cannabidiol
manufacturer
or
a
medical
cannabidiol
22
dispensary
pursuant
to
Code
chapter
124E
from
sales
tax.
23
-4-
LSB
2528YC
(1)
90
ss/rh
4/
4