Bill Text: IA SSB1177 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the medical cannabidiol program, including medical cannabidiol registration cards, medical cannabidiol dispensaries, and income tax deductions, and establishing a medical cannabidiol tax fund.
Spectrum: Committee Bill
Status: (Introduced - Dead) 2021-02-22 - Subcommittee recommends passage. [SSB1177 Detail]
Download: Iowa-2021-SSB1177-Introduced.html
Senate
Study
Bill
1177
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
JUDICIARY
BILL
BY
CHAIRPERSON
ZAUN)
A
BILL
FOR
An
Act
relating
to
the
medical
cannabidiol
program,
including
1
medical
cannabidiol
registration
cards,
medical
cannabidiol
2
dispensaries,
and
income
tax
deductions,
and
establishing
a
3
medical
cannabidiol
tax
fund.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
124E.4,
subsection
1,
paragraph
e,
Code
1
2021,
is
amended
to
read
as
follows:
2
e.
Submits
a
medical
cannabidiol
registration
card
fee
of
3
one
hundred
ten
dollars
to
the
department.
If
the
patient
4
attests
to
receiving
social
security
disability
benefits,
5
supplemental
security
insurance
payments,
or
being
enrolled
in
6
the
medical
assistance
program,
the
fee
shall
be
twenty-five
7
dollars.
8
Sec.
2.
Section
124E.4,
subsection
3,
paragraph
c,
Code
9
2021,
is
amended
to
read
as
follows:
10
c.
Submits
a
medical
cannabidiol
registration
card
fee
of
11
twenty-five
ten
dollars
to
the
department.
12
Sec.
3.
Section
124E.4,
Code
2021,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
3A.
Issuance
to
an
institution.
The
15
department
shall
adopt
rules
for
the
issuance
of
a
medical
16
cannabidiol
registration
card
to
an
institution,
including
but
17
not
limited
to
a
school,
university,
nursing
home,
long-term
18
care
facility,
correctional
facility,
or
jail,
allowing
19
employees
of
the
institution
to
administer
medical
cannabidiol
20
to
qualified
patients
in
the
care
of
the
institution.
21
Sec.
4.
Section
124E.4,
subsection
5,
Code
2021,
is
amended
22
to
read
as
follows:
23
5.
Expiration
date
of
card.
A
medical
cannabidiol
24
registration
card
issued
pursuant
to
this
section
shall
expire
25
one
year
two
years
after
the
date
of
issuance
and
may
be
26
renewed.
27
Sec.
5.
Section
124E.7,
subsection
4,
Code
2021,
is
amended
28
to
read
as
follows:
29
4.
A
medical
cannabidiol
manufacturer
shall
not
share
30
office
space
with,
refer
patients
to,
or
have
any
direct
31
financial
relationship
with
a
health
care
practitioner.
32
Sec.
6.
Section
124E.8,
subsection
1,
paragraph
a,
Code
33
2021,
is
amended
to
read
as
follows:
34
a.
The
department
shall
issue
a
request
for
proposals
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accept
applications
to
select
and
license
by
April
1,
2018,
up
1
to
five
medical
cannabidiol
dispensaries
to
dispense
medical
2
cannabidiol
within
this
state
consistent
with
the
provisions
3
of
this
chapter
.
The
department
shall
license
new
medical
4
cannabidiol
dispensaries
or
relicense
the
existing
medical
5
cannabidiol
dispensaries
by
December
1
of
each
year.
6
Sec.
7.
Section
124E.8,
subsection
2,
Code
2021,
is
amended
7
to
read
as
follows:
8
2.
As
a
condition
for
licensure,
a
medical
cannabidiol
9
dispensary
must
agree
to
begin
supplying
medical
cannabidiol
10
to
patients
by
December
1,
2018
within
one
year
of
the
date
of
11
licensure
.
12
Sec.
8.
Section
124E.8,
Code
2021,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
3A.
The
department
shall
not
issue
a
15
license
for
a
medical
cannabidiol
dispensary
to
be
located
in
a
16
county
with
a
medical
cannabidiol
dispensary
that
was
licensed
17
prior
to
July
1,
2021,
or
in
a
bordering
county
of
a
county
with
18
a
medical
cannabidiol
dispensary
that
was
licensed
prior
to
19
July
1,
2021.
20
Sec.
9.
Section
124E.9,
subsection
1,
paragraph
a,
Code
21
2021,
is
amended
by
striking
the
paragraph.
22
Sec.
10.
Section
124E.9,
subsection
4,
Code
2021,
is
amended
23
to
read
as
follows:
24
4.
A
medical
cannabidiol
dispensary
shall
not
share
office
25
space
with,
refer
patients
to,
or
have
any
direct
financial
26
relationship
with
a
health
care
practitioner.
27
Sec.
11.
Section
124E.11,
subsection
2,
paragraph
f,
Code
28
2021,
is
amended
to
read
as
follows:
29
f.
Establish
and
collect
annual
fees
not
to
exceed
two
30
thousand
dollars
from
medical
cannabidiol
manufacturers
31
and
medical
cannabidiol
dispensaries
to
cover
the
costs
32
associated
with
regulating
and
inspecting
medical
cannabidiol
33
manufacturers
and
medical
cannabidiol
dispensaries.
34
Sec.
12.
Section
124E.11,
subsection
2,
Code
2021,
is
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amended
by
adding
the
following
new
paragraph:
1
NEW
PARAGRAPH
.
j.
Allow
an
operator
of
a
medical
2
cannabidiol
dispensary
to
conduct
dispensary
operations
using
a
3
mobile
location,
provided
that
a
mobile
dispensary
shall
not
4
operate
in
a
county
with
a
medical
cannabidiol
dispensary.
5
Sec.
13.
Section
422.7,
Code
2021,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
63.
Subtract,
to
the
extent
included,
8
the
amount
of
business
expense
for
a
medical
cannabidiol
9
manufacturer
or
medical
cannabidiol
dispensary
licensed
10
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
11
Internal
Revenue
Code.
12
Sec.
14.
Section
422.35,
Code
2021,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
31.
Subtract,
to
the
extent
included,
15
the
amount
of
business
expense
for
a
medical
cannabidiol
16
manufacturer
or
medical
cannabidiol
dispensary
licensed
17
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
18
Internal
Revenue
Code.
19
Sec.
15.
Section
423.2A,
subsection
2,
Code
2021,
is
amended
20
by
adding
the
following
new
paragraph:
21
NEW
PARAGRAPH
.
h.
Beginning
the
first
day
of
the
calendar
22
quarter
following
July
1,
2021,
transfer
to
the
medical
23
cannabidiol
tax
fund
created
in
section
423.4,
subsection
12,
24
the
sales
tax
receipts
collected
and
remitted
upon
sales
of
25
tangible
personal
property
furnished
by
medical
cannabidiol
26
dispensaries
or
medical
cannabidiol
manufacturers
pursuant
to
27
chapter
124E.
28
Sec.
16.
Section
423.4,
Code
2021,
is
amended
by
adding
the
29
following
new
subsection:
30
NEW
SUBSECTION
.
12.
a.
There
is
established
within
the
31
state
treasury
under
the
control
of
the
Iowa
department
of
32
public
health
a
medical
cannabidiol
tax
fund
consisting
of
the
33
amount
of
state
sales
tax
revenues
transferred
pursuant
to
34
section
423.2A,
subsection
2,
paragraph
“h”
.
Moneys
in
the
fund
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shall
be
used
by
the
Iowa
department
of
public
health
only
for
1
the
following
purposes
and
in
the
following
order
of
priority:
2
(1)
The
repayment
of
fees
paid
to
the
state
hygienic
3
laboratory
at
the
university
of
Iowa
in
Iowa
City
by
a
medical
4
cannabidiol
manufacturer
pursuant
to
section
124E.7
on
or
after
5
the
effective
date
of
this
Act.
6
(2)
The
repayment
of
fees
paid
to
a
laboratory,
as
defined
7
in
section
124E.2,
other
than
the
state
hygienic
laboratory
at
8
the
university
of
Iowa
in
Iowa
City,
by
a
medical
cannabidiol
9
manufacturer
pursuant
to
section
124E.7
on
or
after
the
10
effective
date
of
this
Act.
11
(3)
For
other
purposes
as
provided
in
section
124E.10.
12
b.
Notwithstanding
section
8.33,
moneys
appropriated
in
this
13
subsection
that
remain
unencumbered
or
unobligated
at
the
close
14
of
the
fiscal
year
shall
not
revert
but
shall
remain
available
15
for
expenditure
for
the
purposes
designated.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
relates
to
the
medical
cannabidiol
Act,
including
20
medical
cannabidiol
registration
cards
and
medical
cannabidiol
21
dispensaries.
22
The
bill
changes
the
application
fee
for
a
medical
23
cannabidiol
registration
card
to
$10.
The
bill
also
changes
24
the
expiration
date
of
medical
cannabidiol
registration
cards
25
from
one
year
after
issuance
to
two
years
after
issuance.
26
The
bill
requires
the
Iowa
department
of
public
health
(DPH)
27
to
develop
rules
for
the
issuance
of
a
medical
cannabidiol
28
registration
card
to
an
institution,
which
would
allow
29
employees
of
the
institution
to
administer
medical
cannabidiol
30
to
qualified
medical
cannabidiol
patients
in
the
care
of
the
31
institution.
32
The
bill
requires
DPH
to
accept
applications
for
the
33
licensure
of
medical
cannabidiol
dispensaries
beyond
the
five
34
currently
allowed
in
Code
beginning
July
1,
2021.
The
bill
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prohibits
the
department
from
issuing
such
a
license
to
a
1
dispensary
in
a
county
where
a
dispensary
is
currently
located,
2
or
in
a
county
bordering
such
a
county.
As
a
condition
for
3
licensure,
the
medical
cannabidiol
dispensary
must
agree
to
4
begin
supplying
medical
cannabidiol
to
patients
within
one
year
5
of
the
date
of
licensure.
6
The
bill
strikes
a
provision
prohibiting
a
medical
7
cannabidiol
dispensary
from
referring
patients
to
a
health
care
8
practitioner.
The
bill
requires
DPH
to
adopt
rules
allowing
9
the
operator
of
a
medical
cannabidiol
dispensary
to
conduct
10
dispensary
operations
from
a
mobile
location,
and
prohibits
a
11
mobile
dispensary
from
operating
in
a
county
with
a
medical
12
cannabidiol
dispensary.
The
bill
prohibits
DPH
from
imposing
13
annual
fees
of
greater
than
$2,000
on
medical
cannabidiol
14
manufacturers
and
dispensaries.
15
The
bill
allows
individuals
and
corporations
to
subtract
16
from
net
income,
to
the
extent
included,
business
expenses
17
for
a
medical
cannabidiol
manufacturer
or
medical
cannabidiol
18
dispensary.
19
The
bill
creates
a
medical
cannabidiol
tax
fund
within
the
20
state
treasury
under
the
control
of
DPH.
Beginning
the
first
21
day
of
the
calendar
quarter
following
July
1,
2021,
sales
tax
22
for
the
sales
of
medical
cannabidiol
shall
be
transferred
23
to
the
fund.
Moneys
in
the
fund
shall
be
used,
in
order
of
24
priority,
for
the
repayment
of
fees
paid
to
the
state
hygienic
25
laboratory
at
the
university
of
Iowa
in
Iowa
City
by
a
medical
26
cannabidiol
manufacturer
on
or
after
the
effective
date
of
the
27
bill,
the
repayment
of
fees
paid
to
other
laboratories
by
a
28
medical
cannabidiol
manufacturer
on
or
after
the
effective
date
29
of
the
bill,
and
the
administration
of
the
medical
cannabidiol
30
program.
Moneys
in
the
fund
are
not
subject
to
reversion.
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