Bill Text: IA SF506 | 2017-2018 | 87th General Assembly | Amended


Bill Title: A bill for an act concerning the compassionate use of medical cannabis Act, reclassifying marijuana, including tetrahydrocannabinols, from a schedule I controlled substance to a schedule II controlled substance, providing for civil and criminal penalties and fees, and including effective date provisions. (Formerly SSB 1190.)

Sponsorship: Committee Bill

Status: (Engrossed - Dead) 2017-04-18 - Subcommittee: Vander Linden, Forbes and Nunn. H.J. 1075. [SF506 Detail]

Download: Iowa-2017-SF506-Amended.html

Senate File 506 - Reprinted




                                 SENATE FILE       
                                 BY  COMMITTEE ON
                                     APPROPRIATIONS

                                 (SUCCESSOR TO SSB
                                     1190)
       (As Amended and Passed by the Senate April 17, 2017)

                                      A BILL FOR

  1 An Act concerning the compassionate use of medical
  2    cannabis Act, reclassifying marijuana, including
  3    tetrahydrocannabinols, from a schedule I controlled
  4    substance to a schedule II controlled substance, providing
  5    for civil and criminal penalties and fees, and including
  6    effective date provisions.
  7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    SF 506 (2) 87
    rh/rj/jh

PAG LIN



  1  1    Section 1.  Section 124.204, subsection 4, paragraphs m and
  1  2 u, Code 2017, are amended by striking the paragraphs.
  1  3    Sec. 2.  Section 124.204, subsection 7, Code 2017, is amended
  1  4 by striking the subsection.
  1  5    Sec. 3.  Section 124.206, subsection 7, Code 2017, is amended
  1  6 to read as follows:
  1  7    7.  Hallucinogenic substances.  Unless specifically excepted
  1  8 or unless listed in another schedule, any material, compound,
  1  9 mixture, or preparation which contains any quantity of the
  1 10 following substances, or, for purposes of paragraphs "a" and
  1 11 "b", which contains any of its salts, isomers, or salts of
  1 12 isomers whenever the existence of such salts, isomers, or salts
  1 13 of isomers is possible within the specific chemical designation
  1 14 (for purposes of this paragraph only, the term "isomer"
  1 15 includes the optical, positional, and geometric isomers):
  1 16    a.  Marijuana when used for medicinal purposes pursuant to
  1 17 rules of the board.
  1 18    b.  Tetrahydrocannabinols, meaning tetrahydrocannabinols
  1 19 naturally contained in a plant of the genus cannabis (cannabis
  1 20 plant) as well as synthetic equivalents of the substances
  1 21 contained in the cannabis plant, or in the resinous extractives
  1 22 of such plant, and synthetic substances, derivatives, and their
  1 23 isomers with similar chemical structure and pharmacological
  1 24 activity to those substances contained in the plant, such as
  1 25 the following:
  1 26    (1)  1 cis or trans tetrahydrocannabinol, and their optical
  1 27 isomers.
  1 28    (2)  6 cis or trans tetrahydrocannabinol, and their optical
  1 29 isomers.
  1 30    (3)  3,4 cis or trans tetrahydrocannabinol, and their
  1 31 optical isomers. (Since nomenclature of these substances
  1 32 is not internationally standardized, compounds of these
  1 33 structures, regardless of numerical designation of atomic
  1 34 positions covered.)
  1 35    b.  c.  Nabilone [another name for nabilone: (+=) =
  2  1 trans=3=(1,1=dimethylheptyl)=6,6a,7,8,10,10a=hexahydro=1=
  2  2 hydroxy=6,6=dimethyl=9H=dibenzo[b,d]pyran=9=one].
  2  3    Sec. 4.  Section 124.401, subsection 5, unnumbered paragraph
  2  4 3, Code 2017, is amended to read as follows:
  2  5    A person may knowingly or intentionally recommend, possess,
  2  6 use, dispense, deliver, transport, or administer cannabidiol
  2  7  medical cannabis if the recommendation, possession, use,
  2  8 dispensing, delivery, transporting, or administering is in
  2  9 accordance with the provisions of chapter 124D 124E.  For
  2 10 purposes of this paragraph, "cannabidiol" "medical cannabis"
  2 11  means the same as defined in section 124D.2 124E.2.
  2 12    Sec. 5.  NEW SECTION.  124E.1  Short title.
  2 13    This chapter shall be known and may be cited as the
  2 14 "Compassionate Use of Medical Cannabis Act".
  2 15    Sec. 6.  NEW SECTION.  124E.2  Definitions.
  2 16    As used in this chapter:
  2 17    1.  "Debilitating medical condition" means any of the
  2 18 following:
  2 19    a.  Cancer, if the underlying condition or treatment produces
  2 20 one or more of the following:
  2 21    (1)  Intractable pain.
  2 22    (2)  Nausea or severe vomiting.
  2 23    (3)  Cachexia or severe wasting.
  2 24    b.  Multiple sclerosis.
  2 25    c.  Epilepsy or seizure disorders.
  2 26    d.  AIDS or HIV as defined in section 141A.1.
  2 27    e.  Glaucoma.
  2 28    f.  Hepatitis C.
  2 29    g.  Crohn's disease or ulcerative colitis.
  2 30    h.  Amyotrophic lateral sclerosis.
  2 31    i.  Ehlers=Danlos syndrome.
  2 32    j.  Post=traumatic stress disorder.
  2 33    k.  Tourette's syndrome.
  2 34    l.  Any terminal illness, with a probable life expectancy of
  2 35 under one year, if the illness or its treatment produces one or
  3  1 more of the following:
  3  2    (1)  Intractable pain.
  3  3    (2)  Nausea or severe vomiting.
  3  4    (3)  Cachexia or severe wasting.
  3  5    m.  Intractable pain.
  3  6    n.  Parkinson's disease.
  3  7    o.  Muscular dystrophy.
  3  8    p.  Huntington's disease.
  3  9    q.  Alzheimer's disease.
  3 10    r.  Complex regional pain syndrome, type I and II.
  3 11    s.  Rheumatoid arthritis.
  3 12    t.  Polyarteritis nodosa.
  3 13    u.  Any other chronic or debilitating disease or medical
  3 14 condition or its medical treatment approved by the department
  3 15 pursuant to rule.
  3 16    2.  "Department" means the department of public health.
  3 17    3.  "Disqualifying felony offense" means a violation under
  3 18 federal or state law of a felony offense, which has as an
  3 19 element the possession, use, or distribution of a controlled
  3 20 substance, as defined in 21 U.S.C. {802(6).
  3 21    4.  "Enclosed, locked facility" means a closet, room,
  3 22 greenhouse, or other enclosed area equipped with locks or
  3 23 other security devices that permit access only by authorized
  3 24 personnel.
  3 25    5.  "Health care practitioner" means an individual licensed
  3 26 under chapter 148 to practice medicine and surgery or
  3 27 osteopathic medicine and surgery or an individual licensed to
  3 28 practice medicine in any other state who provides specialty
  3 29 care for an Iowa resident for one or more of the debilitating
  3 30 medical conditions provided in this chapter.
  3 31    6.  "Intractable pain" means a pain in which the cause of the
  3 32 pain cannot be removed or otherwise treated with the consent
  3 33 of the patient and which, in the generally accepted course of
  3 34 medical practice, no relief or cure of the cause of the pain
  3 35 is possible, or none has been found after reasonable efforts.
  4  1 Reasonable efforts for relieving or curing the cause of the
  4  2 pain may be determined on the basis of but are not limited to
  4  3 any of the following:
  4  4    a.  When treating a nonterminally ill patient for intractable
  4  5 pain, evaluation by the attending physician and one or more
  4  6 physicians specializing in pain medicine or the treatment of
  4  7 the area, system, or organ of the body perceived as the source
  4  8 of the pain.
  4  9    b.  When treating a terminally ill patient, evaluation by
  4 10 the attending physician who does so in accordance with the
  4 11 level of care, skill, and treatment that would be recognized
  4 12 by a reasonably prudent physician under similar conditions and
  4 13 circumstances.
  4 14    7.  "Medical cannabis" means any species of the genus
  4 15 cannabis plant, or any mixture or preparation of them,
  4 16 including whole plant extracts and resins.
  4 17    8.  "Medical cannabis dispensary" means an entity licensed
  4 18 under section 124E.8 that acquires medical cannabis from a
  4 19 medical cannabis manufacturer in this state for the purpose
  4 20 of dispensing medical cannabis in this state pursuant to this
  4 21 chapter.
  4 22    9.  "Medical cannabis manufacturer" means an entity licensed
  4 23 under section 124E.6 to manufacture and to possess, cultivate,
  4 24 transport, or supply medical cannabis pursuant to the
  4 25 provisions of this chapter.
  4 26    10.  "Primary caregiver" means a person, at least eighteen
  4 27 years of age, who has been designated by a patient's health
  4 28 care practitioner or a person having custody of a patient, as
  4 29 a necessary caretaker taking responsibility for managing the
  4 30 well=being of the patient with respect to the use of medical
  4 31 cannabis pursuant to the provisions of this chapter.
  4 32    11.  "Written certification" means a document signed by a
  4 33 health care practitioner, with whom the patient has established
  4 34 a patient=provider relationship, which states that the patient
  4 35 has a debilitating medical condition and identifies that
  5  1 condition and provides any other relevant information.
  5  2    Sec. 7.  NEW SECTION.  124E.3  Health care practitioner
  5  3 certification ==== duties.
  5  4    1.  Prior to a patient's submission of an application for a
  5  5 medical cannabis registration card pursuant to section 124E.4,
  5  6 a health care practitioner shall do all of the following:
  5  7    a.  Determine, in the health care practitioner's medical
  5  8 judgment, whether the patient whom the health care practitioner
  5  9 has examined and treated suffers from a debilitating medical
  5 10 condition that qualifies for the use of medical cannabis under
  5 11 this chapter, and if so determined, provide the patient with a
  5 12 written certification of that diagnosis.
  5 13    b.  Provide explanatory information as provided by the
  5 14 department to the patient about the therapeutic use of medical
  5 15 cannabis.
  5 16    c.  Determine, on an annual basis, if the patient continues
  5 17 to suffer from a debilitating medical condition and, if so,
  5 18 issue the patient a new certification of that diagnosis. This
  5 19 paragraph shall not apply if the patient is suffering from an
  5 20 incurable debilitating medical condition.
  5 21    d.  Otherwise comply with all requirements established by the
  5 22 department pursuant to rule.
  5 23    2.  A health care practitioner may provide, but has no duty
  5 24 to provide, a written certification pursuant to this section.
  5 25    Sec. 8.  NEW SECTION.  124E.4  Medical cannabis registration
  5 26 card.
  5 27    1.  Issuance to patient.  The department may approve the
  5 28 issuance of a medical cannabis registration card by the
  5 29 department of transportation to a patient who:
  5 30    a.  Is at least eighteen years of age.
  5 31    b.  Is a permanent resident of this state.
  5 32    c.  Submits a written certification to the department signed
  5 33 by the patient's health care practitioner that the patient is
  5 34 suffering from a debilitating medical condition.
  5 35    d.  Submits an application to the department, on a form
  6  1 created by the department, in consultation with the department
  6  2 of transportation, that contains all of the following:
  6  3    (1)  The patient's full name, Iowa residence address, date
  6  4 of birth, and telephone number.
  6  5    (2)  A copy of the patient's valid photograph
  6  6 identification.
  6  7    (3)  Full name, address, and telephone number of the
  6  8 patient's health care practitioner.
  6  9    (4)  Full name, residence address, date of birth, and
  6 10 telephone number of each primary caregiver of the patient, if
  6 11 any.
  6 12    (5)  Any other information required by rule.
  6 13    e.  Submits a medical cannabis registration card fee of one
  6 14 hundred dollars to the department. If the patient attests to
  6 15 receiving social security disability benefits, supplemental
  6 16 security insurance payments, or being enrolled in the medical
  6 17 assistance program, the fee shall be twenty=five dollars.
  6 18    2.  Patient card contents.  A medical cannabis registration
  6 19 card issued to a patient by the department of transportation
  6 20 pursuant to subsection 1 shall contain, at a minimum, all of
  6 21 the following:
  6 22    a.  The patient's full name, Iowa residence address, and date
  6 23 of birth.
  6 24    b.  The patient's photograph.
  6 25    c.  The date of issuance and expiration of the registration
  6 26 card.
  6 27    d.  Any other information required by rule.
  6 28    3.  Issuance to primary caregiver.  For a patient in a
  6 29 primary caregiver's care, the department may approve the
  6 30 issuance of a medical cannabis registration card by the
  6 31 department of transportation to the primary caregiver who:
  6 32    a.  Submits a written certification to the department signed
  6 33 by the patient's health care practitioner that the patient in
  6 34 the primary caregiver's care is suffering from a debilitating
  6 35 medical condition.
  7  1    b.  Submits an application to the department, on a form
  7  2 created by the department, in consultation with the department
  7  3 of transportation, that contains all of the following:
  7  4    (1)  The primary caregiver's full name, residence address,
  7  5 date of birth, and telephone number.
  7  6    (2)  The patient's full name.
  7  7    (3)  A copy of the primary caregiver's valid photograph
  7  8 identification.
  7  9    (4)  Full name, address, and telephone number of the
  7 10 patient's health care practitioner.
  7 11    (5)  Any other information required by rule.
  7 12    c.  Submits a medical cannabis registration card fee of
  7 13 twenty=five dollars to the department.
  7 14    4.  Primary caregiver card contents.  A medical cannabis
  7 15 registration card issued by the department of transportation to
  7 16 a primary caregiver pursuant to subsection 3 shall contain, at
  7 17 a minimum, all of the following:
  7 18    a.  The primary caregiver's full name, residence address, and
  7 19 date of birth.
  7 20    b.  The primary caregiver's photograph.
  7 21    c.  The date of issuance and expiration of the registration
  7 22 card.
  7 23    d.  The registration card number of each patient in the
  7 24 primary caregiver's care. If the patient in the primary
  7 25 caregiver's care is under the age of eighteen, the full name of
  7 26 the patient's parent or legal guardian.
  7 27    e.  Any other information required by rule.
  7 28    5.  Expiration date of card.  A medical cannabis registration
  7 29 card issued pursuant to this section shall expire one year
  7 30 after the date of issuance and may be renewed.
  7 31    6.  Card issuance ==== department of transportation.
  7 32    a.  The department may enter into a chapter 28E agreement
  7 33 with the department of transportation to facilitate the
  7 34 issuance of medical cannabis registration cards pursuant to
  7 35 subsections 1 and 3.
  8  1    b.  The department of transportation may issue renewal
  8  2 medical cannabis registration cards through an online or
  8  3 in=person process.
  8  4    Sec. 9.  NEW SECTION.  124E.5  Medical advisory board ====
  8  5 duties.
  8  6    1.  No later than August 15, 2017, the director of public
  8  7 health shall establish a medical advisory board consisting of
  8  8 nine practitioners representing the fields of neurology, pain
  8  9 management, gastroenterology, oncology, psychiatry, pediatrics,
  8 10 infectious disease, family medicine, and pharmacy, and three
  8 11 patients or primary caregivers with valid medical cannabis
  8 12 registration cards. The practitioners shall be nationally
  8 13 board=certified in their area of specialty and knowledgeable
  8 14 about the use of medical cannabis.
  8 15    2.  A quorum of the advisory board shall consist of seven
  8 16 members.
  8 17    3.  The duties of the advisory board shall include but not be
  8 18 limited to the following:
  8 19    a.  Reviewing and recommending to the department for
  8 20 approval additional chronic or debilitating diseases or
  8 21 medical conditions or their treatments as debilitating medical
  8 22 conditions that qualify for the use of medical cannabis under
  8 23 this chapter.
  8 24    b.  Accepting and reviewing petitions to add chronic or
  8 25 debilitating diseases or medical conditions or their medical
  8 26 treatments to the list of debilitating medical conditions that
  8 27 qualify for the use of medical cannabis under this chapter.
  8 28    c.  Working with the department regarding the requirements
  8 29 for the licensure of medical cannabis manufacturers and medical
  8 30 cannabis dispensaries, including licensure procedures.
  8 31    d.  Advising the department regarding the location of
  8 32 medical cannabis dispensaries throughout the state, the form
  8 33 and quantity of allowable medical cannabis to be dispensed
  8 34 to a patient or primary caregiver, and the general oversight
  8 35 of medical cannabis manufacturers and medical cannabis
  9  1 dispensaries in this state.
  9  2    e.  Convening at least twice per year to conduct public
  9  3 hearings and to review and recommend for approval petitions,
  9  4 which shall be maintained as confidential personal health
  9  5 information, to add chronic or debilitating diseases or
  9  6 medical conditions or their medical treatments to the list of
  9  7 debilitating medical conditions that qualify for the use of
  9  8 medical cannabis under this chapter.
  9  9    f.  Recommending improvements relating to the effectiveness
  9 10 of the provisions of this chapter.
  9 11    g.  In making recommendations pursuant to this section,
  9 12 consideration of the economic and financial impacts on patients
  9 13 and the medical cannabis industry, and making recommendations
  9 14 that minimize the extent of such impacts to the greatest extent
  9 15 practicable.
  9 16    Sec. 10.  NEW SECTION.  124E.6  Medical cannabis manufacturer
  9 17 licensure.
  9 18    1.  a.  The department shall license up to four medical
  9 19 cannabis manufacturers to manufacture  medical cannabis within
  9 20 this state consistent with the provisions of this chapter by
  9 21 December 1, 2017. The department shall license new medical
  9 22 cannabis manufacturers or relicense the existing medical
  9 23 cannabis manufacturers by December 1 of each year.
  9 24    b.  Information submitted during the application process
  9 25 shall be confidential until the medical cannabis manufacturer
  9 26 is licensed by the department unless otherwise protected from
  9 27 disclosure under state or federal law.
  9 28    2.  As a condition for licensure, a medical cannabis
  9 29 manufacturer must agree to begin supplying medical cannabis to
  9 30 medical cannabis dispensaries in this state by July 2, 2018.
  9 31    3.  The department shall consider the following factors in
  9 32 determining whether to license a medical cannabis manufacturer:
  9 33    a.  The technical expertise of the medical cannabis
  9 34 manufacturer regarding medical cannabis.
  9 35    b.  The qualifications of the medical cannabis manufacturer's
 10  1 ownership and management team.
 10  2    c.  The long=term financial stability of the medical cannabis
 10  3 manufacturer.
 10  4    d.  The ability to provide appropriate security measures on
 10  5 the premises of the medical cannabis manufacturer.
 10  6    e.  Whether the medical cannabis manufacturer has
 10  7 demonstrated an ability to meet certain medical cannabis
 10  8 production needs for medical use regarding the range of
 10  9 recommended dosages for each debilitating medical condition,
 10 10 the range of chemical compositions of any plant of the genus
 10 11 cannabis that will likely be medically beneficial for each
 10 12 of the debilitating medical conditions, and the form of the
 10 13 medical cannabis in the manner determined by the department
 10 14 pursuant to rule.
 10 15    f.  The medical cannabis manufacturer's projection of and
 10 16 ongoing assessment of fees on patients with debilitating
 10 17 medical conditions.
 10 18    g.  The medical cannabis manufacturer's experience in medical
 10 19 cannabis production, plant extraction, and pharmaceutical
 10 20 formulations.
 10 21    4.  The department shall require each medical cannabis
 10 22 manufacturer to contract with a laboratory approved by the
 10 23 department to test the medical cannabis produced by the
 10 24 manufacturer. The department shall require that the laboratory
 10 25 report testing results to the manufacturer in a manner
 10 26 determined by the department pursuant to rule.
 10 27    5.  Each entity submitting an application for licensure
 10 28 as a medical cannabis manufacturer shall pay a nonrefundable
 10 29 application fee of fifteen thousand dollars to the department.
 10 30    Sec. 11.  NEW SECTION.  124E.7  Medical cannabis
 10 31 manufacturers.
 10 32    1.  A medical cannabis manufacturer shall contract with a
 10 33 laboratory approved by the department for purposes of testing
 10 34 the medical cannabis manufactured by the medical cannabis
 10 35 manufacturer as to content, contamination, and consistency.
 11  1 The cost of all laboratory testing shall be paid by the medical
 11  2 cannabis manufacturer.
 11  3    2.  The operating documents of a medical cannabis
 11  4 manufacturer shall include all of the following:
 11  5    a.  Procedures for the oversight of the medical cannabis
 11  6 manufacturer and procedures to ensure accurate recordkeeping.
 11  7    b.  Procedures for the implementation of appropriate security
 11  8 measures to deter and prevent the theft of medical cannabis and
 11  9 unauthorized entrance into areas containing medical cannabis.
 11 10    3.  A medical cannabis manufacturer shall implement security
 11 11 requirements, including requirements for protection of each
 11 12 location by a fully operational security alarm system, facility
 11 13 access controls, perimeter intrusion detection systems, and a
 11 14 personnel identification system.
 11 15    4.  A medical cannabis manufacturer shall not share
 11 16 office space with, refer patients to, or have any financial
 11 17 relationship with a health care practitioner.
 11 18    5.  A medical cannabis manufacturer shall not permit any
 11 19 person to consume medical cannabis on the property of the
 11 20 medical cannabis manufacturer.
 11 21    6.  A medical cannabis manufacturer is subject to reasonable
 11 22 inspection by the department.
 11 23    7.  A medical cannabis manufacturer shall not employ a
 11 24 person who is under eighteen years of age or who has been
 11 25 convicted of a disqualifying felony offense. An employee
 11 26 of a medical cannabis manufacturer shall be subject to a
 11 27 background investigation conducted by the division of criminal
 11 28 investigation of the department of public safety and a national
 11 29 criminal history background check.
 11 30    8.  A medical cannabis manufacturer shall not operate in any
 11 31 location, whether for manufacturing, cultivating, harvesting,
 11 32 packaging, or processing, within one thousand feet of a public
 11 33 or private school existing before the date of the medical
 11 34 cannabis manufacturer's licensure by the department.
 11 35    9.  A medical cannabis manufacturer shall comply with
 12  1 reasonable restrictions set by the department relating to
 12  2 signage, marketing, display, and advertising of medical
 12  3 cannabis.
 12  4    10.  a.  A medical cannabis manufacturer shall provide a
 12  5 reliable and ongoing supply of medical cannabis to medical
 12  6 cannabis dispensaries pursuant to this chapter.
 12  7    b.  All manufacturing, cultivating, harvesting, packaging,
 12  8 and processing of medical cannabis shall take place in an
 12  9 enclosed, locked facility at a physical address provided to the
 12 10 department during the licensure process.
 12 11    c.  A medical cannabis manufacturer shall not manufacture
 12 12 edible medical cannabis products utilizing food coloring.
 12 13    d.  A medical cannabis manufacturer shall manufacture a
 12 14 reliable and ongoing supply of medical cannabis to treat every
 12 15 debilitating medical condition listed in this chapter.
 12 16    11.  The department shall establish and collect an annual
 12 17 fee from a medical cannabis manufacturer not to exceed the cost
 12 18 of regulating and inspecting the manufacturer in the calendar
 12 19 year.
 12 20    Sec. 12.  NEW SECTION.  124E.8  Medical cannabis dispensary
 12 21 licensure.
 12 22    1.  a.  The department shall license by April 2, 2018, twelve
 12 23 medical cannabis dispensaries to dispense medical cannabis
 12 24 within this state consistent with the provisions of this
 12 25 chapter. The department shall license new medical cannabis
 12 26 dispensaries or relicense the existing medical cannabis
 12 27 dispensaries by December 1 of each year.
 12 28    b.  Information submitted during the application process
 12 29 shall be confidential until the medical cannabis dispensary
 12 30 is licensed by the department unless otherwise protected from
 12 31 disclosure under state or federal law.
 12 32    2.  As a condition for licensure, a medical cannabis
 12 33 dispensary must agree to begin supplying medical cannabis to
 12 34 patients by July 16, 2018.
 12 35    3.  The department shall consider the following factors in
 13  1 determining whether to license a medical cannabis dispensary:
 13  2    a.  The technical expertise of the medical cannabis
 13  3 dispensary regarding medical cannabis.
 13  4    b.  The qualifications of the medical cannabis dispensary's
 13  5 owners and management team.
 13  6    c.  The long=term financial stability of the medical cannabis
 13  7 dispensary.
 13  8    d.  The ability to provide appropriate security measures on
 13  9 the premises of the medical cannabis dispensary.
 13 10    e.  The medical cannabis dispensary's projection and ongoing
 13 11 assessment of fees for the purchase of medical cannabis on
 13 12 patients with debilitating medical conditions.
 13 13    4.  Each entity submitting an application for licensure
 13 14 as a medical cannabis dispensary shall pay a nonrefundable
 13 15 application fee of fifteen thousand dollars to the department.
 13 16    Sec. 13.  NEW SECTION.  124E.9  Medical cannabis dispensaries.
 13 17    1.  a.  Medical cannabis dispensaries shall be located based
 13 18 on geographical need throughout the state to improve patient
 13 19 access.
 13 20    b.  A medical cannabis dispensary may dispense medical
 13 21 cannabis pursuant to the provisions of this chapter but shall
 13 22 not dispense any medical cannabis in a form or quantity other
 13 23 than the form or quantity allowed by the department pursuant
 13 24 to rule.
 13 25    2.  The operating documents of a medical cannabis dispensary
 13 26 shall include all of the following:
 13 27    a.  Procedures for the oversight of the medical cannabis
 13 28 dispensary and procedures to ensure accurate recordkeeping.
 13 29    b.  Procedures for the implementation of appropriate security
 13 30 measures to deter and prevent the theft of medical cannabis and
 13 31 unauthorized entrance into areas containing medical cannabis.
 13 32    3.  A medical cannabis dispensary shall implement security
 13 33 requirements, including requirements for protection by a fully
 13 34 operational security alarm system, facility access controls,
 13 35 perimeter intrusion detection systems, and a personnel
 14  1 identification system.
 14  2    4.  A medical cannabis dispensary shall not share office
 14  3 space with, refer patients to, or have any financial
 14  4 relationship with a health care practitioner.
 14  5    5.  A medical cannabis dispensary shall not permit any person
 14  6 to consume medical cannabis on the property of the medical
 14  7 cannabis dispensary.
 14  8    6.  A medical cannabis dispensary is subject to reasonable
 14  9 inspection by the department.
 14 10    7.  A medical cannabis dispensary shall not employ a
 14 11 person who is under eighteen years of age or who has been
 14 12 convicted of a disqualifying felony offense. An employee
 14 13 of a medical cannabis dispensary shall be subject to a
 14 14 background investigation conducted by the division of criminal
 14 15 investigation of the department of public safety and a national
 14 16 criminal history background check.
 14 17    8.  A medical cannabis dispensary shall not operate in any
 14 18 location within one thousand feet of a public or private school
 14 19 existing before the date of the medical cannabis dispensary's
 14 20 licensure by the department.
 14 21    9.  A medical cannabis dispensary shall comply with
 14 22 reasonable restrictions set by the department relating to
 14 23 signage, marketing, display, and advertising of medical
 14 24 cannabis.
 14 25    10.  Prior to dispensing of any medical cannabis, a medical
 14 26 cannabis dispensary shall do all of the following:
 14 27    a.  Verify that the medical cannabis dispensary has received
 14 28 a valid medical cannabis registration card from a patient or a
 14 29 patient's primary caregiver, if applicable.
 14 30    b.  Assign a tracking number to any medical cannabis
 14 31 dispensed from the medical cannabis dispensary.
 14 32    c.  (1)  Properly package medical cannabis in compliance with
 14 33 federal law regarding child resistant packaging and exemptions
 14 34 for packaging for elderly patients, and label medical cannabis
 14 35 with a list of all active ingredients and individually
 15  1 identifying information, including all of the following:
 15  2    (a)  The name and date of birth of the patient and the
 15  3 patient's primary caregiver, if appropriate.
 15  4    (b)  The medical cannabis registration card numbers of the
 15  5 patient and the patient's primary caregiver, if applicable.
 15  6    (c)  The chemical composition of the medical cannabis.
 15  7    (2)  Proper packaging of medical cannabis shall include but
 15  8 not be limited to all of the following:
 15  9    (a)  Warning labels regarding the use of medical cannabis by
 15 10 a woman during pregnancy and while breastfeeding.
 15 11    (b)  Clearly labeled packaging indicating that an edible
 15 12 medical cannabis product contains medical cannabis and which
 15 13 packaging shall not imitate candy products or in any way make
 15 14 the product marketable to children.
 15 15    Sec. 14.  NEW SECTION.  124E.10  Fees.
 15 16    Medical cannabis registration card fees and medical cannabis
 15 17 manufacturer and medical cannabis dispensary application
 15 18 and annual fees collected by the department pursuant to
 15 19 this chapter shall be retained by the department, shall be
 15 20 considered repayment receipts as defined in section 8.2, and
 15 21 shall be used for the purpose of regulating medical cannabis
 15 22 manufacturers and medical cannabis dispensaries and for other
 15 23 expenses necessary for the administration of this chapter.
 15 24    Sec. 15.  NEW SECTION.  124E.11  Department duties ==== rules.
 15 25    1.  a.  The department shall maintain a confidential file of
 15 26 the names of each patient to or for whom the department issues
 15 27 a medical cannabis registration card, the name of each primary
 15 28 caregiver to whom the department issues a medical cannabis
 15 29 registration card under section 124E.4, and the names of each
 15 30 health care practitioner who provides a written certification
 15 31 for medical cannabis pursuant to this chapter.
 15 32    b.  Individual names contained in the file shall be
 15 33 confidential and shall not be subject to disclosure, except as
 15 34 provided in subparagraph (1).
 15 35    (1)  Information in the confidential file maintained
 16  1 pursuant to paragraph "a" may be released on an individual basis
 16  2 to the following persons under the following circumstances:
 16  3    (a)  To authorized employees or agents of the department and
 16  4 the department of transportation as necessary to perform the
 16  5 duties of the department and the department of transportation
 16  6 pursuant to this chapter.
 16  7    (b)  To authorized employees of state or local law
 16  8 enforcement agencies, but only for the purpose of verifying
 16  9 that a person is lawfully in possession of a medical cannabis
 16 10 registration card issued pursuant to this chapter.
 16 11    (c)  To authorized employees of a medical cannabis
 16 12 dispensary, but only for the purpose of verifying that a person
 16 13 is lawfully in possession of a medical cannabis registration
 16 14 card issued pursuant to this chapter.
 16 15    (d)  To any other authorized persons recognized by the
 16 16 department by rule, but only for the purpose of verifying
 16 17 that a person is lawfully in possession of a medical cannabis
 16 18 registration card issued pursuant to this chapter.
 16 19    (2)  Release of information pursuant to subparagraph
 16 20 (1) shall be consistent with the federal Health Insurance
 16 21 Portability and Accountability Act of 1996, Pub. L. No.
 16 22 104=191.
 16 23    2.  The department shall adopt rules pursuant to chapter
 16 24 17A to administer this chapter which shall include but not be
 16 25 limited to rules to do all of the following:
 16 26    a.  Govern the manner in which the department shall consider
 16 27 applications for new and renewal medical cannabis registration
 16 28 cards.
 16 29    b.  Identify criteria and set forth procedures for
 16 30 including additional chronic or debilitating diseases or
 16 31 medical conditions or their medical treatments on the list of
 16 32 debilitating medical conditions that qualify for the use of
 16 33 medical cannabis. Procedures shall include a petition process
 16 34 and shall allow for public comment and public hearings before
 16 35 the medical advisory board.
 17  1    c.  Set forth additional chronic or debilitating diseases
 17  2 or medical conditions or associated medical treatments for
 17  3 inclusion on the list of debilitating medical conditions that
 17  4 qualify for the use of medical cannabis as recommended by the
 17  5 medical advisory board.
 17  6    d.  Establish, in consultation with medical cannabis
 17  7 manufacturers and medical cannabis dispensaries, the form and
 17  8 quantity of medical cannabis allowed to be dispensed to a
 17  9 patient or primary caregiver pursuant to this chapter. The
 17 10 form and quantity of medical cannabis shall be appropriate to
 17 11 serve the medical needs of patients with debilitating medical
 17 12 conditions.
 17 13    e.  Establish, in conjunction with the medical advisory
 17 14 board, requirements for the licensure of medical cannabis
 17 15 manufacturers and medical cannabis dispensaries and set forth
 17 16 procedures for medical cannabis manufacturers and medical
 17 17 cannabis dispensaries to obtain licenses.
 17 18    f.  Develop a dispensing system for medical cannabis within
 17 19 this state that provides for all of the following:
 17 20    (1)  Medical cannabis dispensaries within this state housed
 17 21 on secured grounds and operated by licensed medical cannabis
 17 22 dispensaries.
 17 23    (2)  The dispensing of medical cannabis to patients and
 17 24 their primary caregivers to occur at locations designated by
 17 25 the department.
 17 26    g.  Establish and collect annual fees from medical cannabis
 17 27 manufacturers and medical cannabis dispensaries to cover
 17 28 the costs associated with regulating and inspecting medical
 17 29 cannabis manufacturers and medical cannabis dispensaries.
 17 30    h.  Specify and implement procedures that address public
 17 31 safety including security procedures and product quality
 17 32 including measures to ensure contaminant=free cultivation of
 17 33 medical cannabis, safety, and labeling.
 17 34    i.  Establish and implement a medical cannabis inventory
 17 35 and delivery tracking system to track medical cannabis
 18  1 from production by a medical cannabis manufacturer through
 18  2 dispensing at a medical cannabis dispensary.
 18  3    Sec. 16.  NEW SECTION.  124E.12  Reciprocity.
 18  4    A valid medical cannabis registration card, or its
 18  5 equivalent, issued under the laws of another state that allows
 18  6 an out=of=state patient to possess or use medical cannabis in
 18  7 the jurisdiction of issuance shall have the same force and
 18  8 effect as a valid medical cannabis registration card issued
 18  9 pursuant to this chapter, except that an out=of=state patient
 18 10 in this state shall not obtain medical cannabis from a medical
 18 11 cannabis dispensary in this state and an out=of=state patient
 18 12 shall not smoke medical cannabis.
 18 13    Sec. 17.  NEW SECTION.  124E.13  Use of medical cannabis ====
 18 14 affirmative defenses.
 18 15    1.  A health care practitioner, including any authorized
 18 16 agent or employee thereof, shall not be subject to
 18 17 prosecution for the unlawful certification, possession, or
 18 18 administration of marijuana under the laws of this state for
 18 19 activities arising directly out of or directly related to the
 18 20 certification or use of medical cannabis in the treatment of
 18 21 a patient diagnosed with a debilitating medical condition as
 18 22 authorized by this chapter.
 18 23    2.  A medical cannabis manufacturer, including any
 18 24 authorized agent or employee thereof, shall not be subject
 18 25 to prosecution for manufacturing, possessing, cultivating,
 18 26 harvesting, packaging, processing, transporting, or supplying
 18 27 medical cannabis pursuant to this chapter.
 18 28    3.  A medical cannabis dispensary, including any authorized
 18 29 agent or employee thereof, shall not be subject to prosecution
 18 30 for transporting, supplying, or dispensing medical cannabis
 18 31 pursuant to this chapter.
 18 32    a.  In a prosecution for the unlawful possession of marijuana
 18 33 under the laws of this state, including but not limited to
 18 34 chapters 124 and 453B, it is an affirmative and complete
 18 35 defense to the prosecution that the patient has been diagnosed
 19  1 with a debilitating medical condition, used or possessed
 19  2 medical cannabis pursuant to a certification by a health care
 19  3 practitioner as authorized under this chapter, and, for a
 19  4 patient eighteen years of age or older, is in possession of a
 19  5 valid medical cannabis registration card.
 19  6    b.  In a prosecution for the unlawful possession of marijuana
 19  7 under the laws of this state, including but not limited to
 19  8 chapters 124 and 453B, it is an affirmative and complete
 19  9 defense to the prosecution that the person possessed medical
 19 10 cannabis because the person is a primary caregiver of a patient
 19 11 who has been diagnosed with a debilitating medical condition
 19 12 and is in possession of a valid medical cannabis registration
 19 13 card, and where the primary caregiver's possession of the
 19 14 medical cannabis is on behalf of the patient and for the
 19 15 patient's use only as authorized under this chapter.
 19 16    c.  If a patient or primary caregiver is charged with the
 19 17 commission of a crime and is not in possession of the person's
 19 18 medical cannabis registration card, any charge or charges filed
 19 19 against the person shall be dismissed by the court if the
 19 20 person produces to the court prior to or at the person's trial
 19 21 a medical cannabis registration card issued to that person and
 19 22 valid at the time the person was charged.
 19 23    4.  An agency of this state or a political subdivision
 19 24 thereof, including any law enforcement agency, shall not remove
 19 25 or initiate proceedings to remove a patient under the age
 19 26 of eighteen from the home of a parent based solely upon the
 19 27 parent's or patient's possession or use of medical cannabis as
 19 28 authorized under this chapter.
 19 29    Sec. 18.  NEW SECTION.  124E.14  Penalties.
 19 30    1.  A person who knowingly or intentionally possesses or
 19 31 uses medical cannabis in violation of the requirements of this
 19 32 chapter is subject to the penalties provided under chapters 124
 19 33 and 453B.
 19 34    2.  A medical cannabis manufacturer or a medical cannabis
 19 35 dispensary shall be assessed a civil penalty of up to one
 20  1 thousand dollars per violation for any violation of this
 20  2 chapter in addition to any other applicable penalties.
 20  3    Sec. 19.  NEW SECTION.  124E.15  Use of medical cannabis ==
 20  4 smoking prohibited.
 20  5    A patient shall not consume medical cannabis possessed
 20  6 or used as authorized under this chapter by smoking medical
 20  7 cannabis.
 20  8    Sec. 20.  NEW SECTION.  124E.16  Employment.
 20  9    1.  An employer in this state may retain, create, reinstate,
 20 10 or enforce a written zero tolerance policy prohibiting the
 20 11 possession or use of medical cannabis or any derivative
 20 12 thereof including cannabidiol by an employee in the employer's
 20 13 workplace, including but not limited to a policy prohibiting
 20 14 an employee from having any detectable amount of medical
 20 15 cannabis or any derivative thereof including cannabidiol in the
 20 16 employee's body while at work.
 20 17    2.  An employer's prohibition of the possession or use
 20 18 of medical cannabis or any derivative thereof including
 20 19 cannabidiol under this section shall not be considered to be
 20 20 an unfair or discriminatory employment practice under section
 20 21 216.6.
 20 22    Sec. 21.  Section 730.5, subsection 11, Code 2017, is amended
 20 23 by adding the following new paragraph:
 20 24    NEW PARAGRAPH.  f.  Testing or taking action against an
 20 25 individual with a confirmed positive test result due to the
 20 26 individual's use of medical cannabis as authorized under
 20 27 chapter 124E.
 20 28    Sec. 22.  REPEAL.  Chapter 124D, Code 2017, is repealed.
 20 29    Sec. 23.  EMERGENCY RULES.  The department may adopt
 20 30 emergency rules under section 17A.4, subsection 3, and section
 20 31 17A.5, subsection 2, paragraph "b", to implement the provisions
 20 32 of this Act and the rules shall be effective immediately upon
 20 33 filing unless a later date is specified in the rules. Any
 20 34 rules adopted in accordance with this section shall also be
 20 35 published as a notice of intended action as provided in section
 21  1 17A.4.
 21  2    Sec. 24.  TRANSITION PROVISIONS.  A medical cannabidiol
 21  3 registration card issued under chapter 124D prior to the
 21  4 effective date of this Act, remains effective and continues
 21  5 in effect as issued for the twelve=month period following its
 21  6 issuance. This Act does not preclude a medical cannabidiol
 21  7 registration card holder from seeking to renew the registration
 21  8 card under this Act prior to the expiration of the twelve=month
 21  9 period.
 21 10    Sec. 25.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed
 21 11 of immediate importance, takes effect upon enactment.
       SF 506 (2) 87
       rh/rj/jh
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