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HF2206 • 2026

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

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

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
AMOS JR., WICHTENDAHL, GAINES, LEVIN, MADISON, McBURNEY, RAMIREZ, GOSA, WILSON, SCHOLTEN, KRESSIG, WILBURN, R. JOHNSON, KURTH and WESSEL-KROESCHELL
Last action
2026-01-29
Official status
Introduced, referred to Judiciary. H.J. 174 .
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

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

What This Bill Does

  • A bill for an act relating to the manufacture, delivery, and possession of marijuana, the licensure of retail marijuana, providing fees, including excise taxes, establishing funds, providing penalties, and including effective date provisions.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-01-29 Iowa Legislature

    Introduced, referred to Judiciary. H.J. 174 .

Official Summary Text

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

Current Bill Text

Read the full stored bill text
House

File

2206

-

Introduced

HOUSE

FILE

2206

BY

AMOS

JR.

,

WICHTENDAHL

,

GAINES

,

LEVIN

,

MADISON

,

McBURNEY

,

RAMIREZ

,

GOSA

,

WILSON

,

SCHOLTEN

,

KRESSIG

,

WILBURN

,

R.

JOHNSON

,

KURTH

,

and

WESSEL-KROESCHELL

A

BILL

FOR

An

Act

relating

to

the

manufacture,

delivery,

and

possession

1

of

marijuana,

the

licensure

of

retail

marijuana,

providing

2

fees,

including

excise

taxes,

establishing

funds,

providing

3

penalties,

and

including

effective

date

provisions.

4

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

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2206

DIVISION

I

1

MARIJUANA

——

CRIMINAL

PENALTIES

2

Section

1.

Section

124.401,

subsection

1,

unnumbered

3

paragraph

1,

Code

2026,

is

amended

to

read

as

follows:

4

Except

as

authorized

by

this

chapter

,

chapter

124E,

or

5

chapter

124F

,

it

is

unlawful

for

any

person

to

manufacture,

6

deliver,

or

possess

with

the

intent

to

manufacture

or

deliver,

7

a

controlled

substance,

a

counterfeit

substance,

a

simulated

8

controlled

substance,

or

an

imitation

controlled

substance,

9

or

to

act

with,

enter

into

a

common

scheme

or

design

with,

10

or

conspire

with

one

or

more

other

persons

to

manufacture,

11

deliver,

or

possess

with

the

intent

to

manufacture

or

deliver

12

a

controlled

substance,

a

counterfeit

substance,

a

simulated

13

controlled

substance,

or

an

imitation

controlled

substance.

14

Sec.

2.

Section

124.401,

subsection

1,

paragraph

a,

15

subparagraph

(6),

Code

2026,

is

amended

by

striking

the

16

subparagraph.

17

Sec.

3.

Section

124.401,

subsection

1,

paragraph

b,

18

subparagraph

(6),

Code

2026,

is

amended

by

striking

the

19

subparagraph.

20

Sec.

4.

Section

124.401,

subsection

1,

paragraph

c,

21

subparagraph

(5),

Code

2026,

is

amended

by

striking

the

22

subparagraph.

23

Sec.

5.

Section

124.401,

subsection

1,

paragraph

c,

24

subparagraph

(9),

Code

2026,

is

amended

to

read

as

follows:

25

(9)

Any

other

controlled

substance,

counterfeit

substance,

26

simulated

controlled

substance,

or

imitation

controlled

27

substance

classified

in

schedule

I,

II,

or

III,

except

as

28

provided

in

paragraph

“d”

,

chapter

124E,

or

chapter

124F

.

29

Sec.

6.

Section

124.401,

subsection

1,

paragraph

d,

Code

30

2026,

is

amended

to

read

as

follows:

31

d.

Violation

of

this

subsection

,

with

respect

to

any

other

32

controlled

substances,

counterfeit

substances,

simulated

33

controlled

substances,

or

imitation

controlled

substances

34

classified

in

schedule

IV

or

V

is

an

aggravated

misdemeanor.

35

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However,

violation

of

this

subsection

involving

fifty

kilograms

1

or

less

of

marijuana

or

involving

flunitrazepam

is

a

class

“D”

2

felony.

3

Sec.

7.

Section

124.401,

subsection

5,

paragraph

b,

Code

4

2026,

is

amended

to

read

as

follows:

5

b.

If

the

controlled

substance

is

marijuana,

the

punishment

6

shall

be

by

imprisonment

in

the

county

jail

for

not

more

than

7

six

months

or

by

a

fine

of

not

more

than

one

thousand

dollars,

8

or

by

both

such

fine

and

imprisonment

for

a

first

offense.

If

9

the

controlled

substance

is

marijuana

and

the

person

has

been

10

previously

convicted

of

a

violation

of

this

subsection

in

which

11

the

controlled

substance

was

marijuana,

the

punishment

shall

be

12

as

provided

in

section

903.1,

subsection

1

,

paragraph

“b”

.

If

13

the

controlled

substance

is

marijuana

and

the

person

has

been

14

previously

convicted

two

or

more

times

of

a

violation

of

this

15

subsection

in

which

the

controlled

substance

was

marijuana,

16

the

person

is

guilty

of

an

aggravated

misdemeanor.

This

17

subsection

does

not

apply

to

the

possession

of

marijuana

which

18

is

punishable

pursuant

to

chapter

124F.

19

Sec.

8.

Section

124.401G,

Code

2026,

is

amended

to

read

as

20

follows:

21

124.401G

Iowa

hemp

Act.

22

Notwithstanding

any

provision

of

this

chapter

to

the

23

contrary,

a

person

shall

not

be

guilty

of

an

offense

under

24

this

chapter

,

including

under

section

124.401

or

124.410

,

25

for

producing,

possessing,

using,

harvesting,

handling,

26

manufacturing,

marketing,

transporting,

delivering,

or

27

distributing

the

plant

cannabis,

to

the

extent

that

the

person

28

is

a

USDA

licensee

acting

in

accordance

with

the

federal

hemp

29

law,

as

those

terms

are

defined

in

chapter

204A

.

30

Sec.

9.

Section

124.407,

subsection

2,

Code

2026,

is

amended

31

to

read

as

follows:

32

2.

a.

Any

person

who

violates

this

section

,

and

where

the

33

controlled

substance

is

any

one

a

controlled

substance

other

34

than

marijuana

,

is

guilty

of

a

class

“D”

felony.

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b.

Any

person

who

violates

this

section

,

and

where

the

1

controlled

substance

is

marijuana

only,

is

guilty

of

a

serious

2

misdemeanor.

3

Sec.

10.

Section

124.411,

subsection

2,

Code

2026,

is

4

amended

to

read

as

follows:

5

2.

For

purposes

of

this

section

,

an

offense

is

considered

6

a

second

or

subsequent

offense,

if,

prior

to

the

person’s

7

having

been

convicted

of

the

offense,

the

offender

has

ever

8

been

convicted

under

this

chapter

or

under

any

state

or

federal

9

statute

relating

to

narcotic

drugs

or

cocaine,

marijuana,

10

depressant,

stimulant,

or

hallucinogenic

drugs.

11

Sec.

11.

Section

124.413,

subsection

2,

Code

2026,

is

12

amended

to

read

as

follows:

13

2.

This

section

shall

not

apply

if

:

14

a.

The

offense

is

found

to

be

an

accommodation

pursuant

to

15

section

124.410

;

or

16

b.

The

the

controlled

substance

is

marijuana.

17

Sec.

12.

NEW

SECTION

.

124F.1

Definitions.

18

As

used

in

this

subchapter:

19

1.

“Counterfeit

substance”

means

the

same

as

defined

in

20

section

124.101.

21

2.

“Imitation

controlled

substance”

means

the

same

as

22

defined

in

section

124.101.

23

3.

“Marijuana”

means

the

same

as

defined

in

section

124.101,

24

and

includes

a

counterfeit

substance,

imitation

controlled

25

substance,

or

simulated

controlled

substance

containing

a

26

detectable

amount

of

marijuana.

27

4.

“Simulated

controlled

substance”

means

the

same

as

28

defined

in

section

124.101.

29

Sec.

13.

NEW

SECTION

.

124F.2

Marijuana

——

penalties.

30

1.

a.

Except

as

otherwise

provided

in

this

subchapter

and

31

chapter

124E,

it

is

unlawful

for

any

person

to

manufacture,

32

deliver,

or

possess

with

the

intent

to

manufacture

or

deliver

33

marijuana,

or

to

act

with,

enter

into

a

common

scheme

or

34

design

with,

or

conspire

with

one

or

more

other

persons

to

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manufacture,

deliver,

or

possess

with

the

intent

to

manufacture

1

or

deliver

marijuana.

A

violation

of

this

subsection

involving

2

the

following

amounts

of

marijuana

shall

be

punishable

as

3

follows:

4

(1)

More

than

fifty

kilograms

shall

be

a

class

“C”

felony.

5

(2)

More

than

two

kilograms

but

not

more

than

fifty

6

kilograms

shall

be

a

class

“D”

felony.

7

(3)

More

than

twelve

ounces

but

not

more

than

two

kilograms

8

shall

be

an

aggravated

misdemeanor.

9

(4)

More

than

four

ounces

but

not

more

than

twelve

ounces

10

shall

be

punishable

as

a

serious

misdemeanor.

11

(5)

Four

ounces

or

less

shall

be

punishable

as

a

simple

12

misdemeanor,

except

as

provided

in

section

124F.3.

13

b.

In

addition

to

any

other

penalties

provided

in

this

14

subsection,

a

person

who

is

eighteen

years

of

age

or

older

15

who

unlawfully

manufactures

with

the

intent

to

distribute,

16

distributes,

or

possesses

with

the

intent

to

distribute

17

marijuana

to

another

person

who

is

eighteen

years

of

age

or

18

older

in

or

on,

or

within

one

thousand

feet

of,

the

real

19

property

comprising

a

public

or

private

elementary

or

secondary

20

school,

public

park,

public

swimming

pool,

public

recreation

21

center,

or

on

a

marked

school

bus,

may

be

sentenced

up

to

an

22

additional

term

of

confinement

of

five

years.

23

2.

It

is

unlawful

for

any

person

knowingly

or

intentionally

24

to

possess

marijuana

unless

such

substance

was

obtained

25

directly

from,

or

pursuant

to,

a

valid

prescription

or

order

of

26

a

practitioner

while

acting

in

the

course

of

the

practitioner’s

27

professional

practice,

or

except

as

otherwise

authorized

by

28

this

subsection.

A

violation

of

this

subsection

involving

29

the

possession

of

the

following

amounts

of

marijuana

shall

be

30

punishable

as

follows:

31

a.

More

than

six

ounces

but

not

more

than

twelve

ounces

is

32

a

serious

misdemeanor.

33

b.

More

than

one-half

ounce

but

not

more

than

six

ounces

is

34

a

simple

misdemeanor.

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c.

One-half

ounce

or

less

is

not

a

criminal

offense

but

1

shall

be

assessed

as

a

civil

penalty

in

the

amount

of

one

2

hundred

dollars,

except

if

the

person

is

under

twenty-one

years

3

of

age,

the

person

shall

complete

a

drug

awareness

program

and

4

ten

hours

of

unpaid

community

service,

and

shall

notify

the

5

person’s

parents

or

legal

guardian.

6

(1)

The

civil

penalty

shall

be

collected

by

the

clerk

of

the

7

district

court

pursuant

to

section

602.8105,

subsection

5.

8

(2)

Any

records

relating

to

the

civil

penalty

shall

not

9

be

displayed

for

public

viewing

on

the

Iowa

court

information

10

system.

11

(3)

Any

records

relating

to

the

civil

penalty

shall

not

12

be

kept

in

the

criminal

history

data

files

maintained

by

the

13

department

of

public

safety.

Any

records

relating

to

the

civil

14

penalty

shall

not

be

disseminated

to

other

criminal

or

juvenile

15

justice

agencies.

16

3.

a.

A

retail

marijuana

store

shall

not

sell

retail

17

marijuana

in

excess

of

the

following

amounts

in

a

single

18

transaction:

19

(1)

Thirty

grams

of

marijuana

flower.

20

(2)

Five

hundred

milligrams

of

tetrahydrocannabinol

21

contained

in

a

product

infused

with

marijuana.

22

b.

A

person

shall

not

possess

more

than

five

ounces

of

23

marijuana

flower.

24

c.

A

person

in

possession

of

retail

marijuana

in

excess

of

25

the

amounts

specified

in

paragraph

“a”

equivalent

to

the

amounts

26

specified

in

subsection

2,

shall

be

subject

to

the

penalties

in

27

subsection

2.

28

d.

A

retail

marijuana

store

in

violation

of

this

subsection

29

shall

be

subject

to

licensee

discipline

pursuant

to

section

30

124F.16.

31

e.

For

purposes

of

this

subsection,

“retail

marijuana”

and

32

“retail

marijuana

store”

mean

the

same

as

defined

in

section

33

124F.4.

34

4.

a.

Upon

the

expiration

of

two

years

following

a

35

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conviction

for

a

violation

of

subsection

2,

paragraph

“a”

or

1

“b”

,

a

person

may

petition

the

court

to

expunge

the

conviction,

2

and

if

the

person

has

had

no

other

criminal

convictions,

other

3

than

local

traffic

violations

or

simple

misdemeanor

violations

4

of

chapter

321

during

the

two-year

period,

the

conviction

5

shall

be

expunged

as

a

matter

of

law.

The

court

shall

enter

6

an

order

that

the

record

of

the

conviction

be

expunged

by

the

7

clerk

of

the

district

court.

Notwithstanding

section

692.2,

8

after

receipt

of

notice

from

the

clerk

of

the

district

court

9

that

a

record

of

conviction

has

been

expunged

pursuant

to

this

10

subsection,

the

record

of

conviction

shall

be

removed

from

the

11

criminal

history

data

files

maintained

by

the

department

of

12

public

safety.

13

b.

On

the

effective

date

of

this

Act,

each

court

shall

14

review

its

records

to

identify

persons

who

have

been

convicted

15

of

an

offense

based

on

conduct

allowed

under

this

Act.

Each

16

such

conviction

shall

be

expunged

as

a

matter

of

law

as

17

provided

in

paragraph

“a”

.

18

Sec.

14.

NEW

SECTION

.

124F.3

Juvenile

offenses.

19

The

juvenile

court

shall

have

exclusive

original

20

jurisdiction

in

a

proceeding

concerning

a

minor

who

is

alleged

21

to

have

committed

a

violation

of

this

subchapter.

22

Sec.

15.

NEW

SECTION

.

321.284B

Marijuana

in

motor

vehicles.

23

1.

A

driver

of

a

motor

vehicle

upon

a

public

street

or

24

highway

shall

not

use

marijuana

in

the

passenger

area

of

the

25

motor

vehicle.

“Passenger

area”

means

the

area

designed

to

26

seat

the

driver

and

passengers

while

the

motor

vehicle

is

in

27

operation

and

any

area

that

is

readily

accessible

to

the

driver

28

or

a

passenger

while

in

their

seating

positions,

including

the

29

glove

compartment.

30

2.

A

driver

or

passenger

of

or

in

a

motor

vehicle

upon

a

31

public

street

or

highway

shall

not

possess

marijuana

in

the

32

passenger

area

of

a

motor

vehicle

except

in

a

sealed,

odor

33

proof,

child

resistant

container.

34

3.

For

the

purposes

of

this

section,

“marijuana”

means

the

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same

as

defined

in

section

124.401.

1

4.

A

person

who

knowingly

violates

a

provision

of

this

2

section

is

guilty

of

a

simple

misdemeanor.

3

Sec.

16.

Section

321J.2,

subsection

1,

paragraph

c,

Code

4

2026,

is

amended

to

read

as

follows:

5

c.

While

Except

as

provided

in

section

321J.2C,

any

amount

6

of

a

controlled

substance

is

present

in

the

person,

as

measured

7

in

the

person’s

blood

or

urine.

8

Sec.

17.

NEW

SECTION

.

321J.2C

Operating

while

under

the

9

influence

of

marijuana.

10

1.

A

person

shall

not

operate

a

motor

vehicle

in

this

state

11

while

having

fifty

nanograms

of

tetrahydrocannabinol

in

the

12

person,

as

measured

in

the

person’s

blood.

13

2.

A

person

who

violates

subsection

1

is

guilty

of

a

serious

14

misdemeanor,

punishable

as

follows:

15

a.

For

a

first

offense,

revocation

of

the

person’s

driver’s

16

license

for

a

period

of

one

hundred

eighty

days,

except

that

if

17

the

person

refused

to

submit

to

chemical

testing,

the

person’s

18

driver’s

license

shall

be

revoked

for

a

period

of

one

year.

19

b.

For

a

second

or

subsequent

offense,

revocation

of

the

20

person’s

driver’s

license

for

a

period

of

one

year,

except

21

that

if

the

person

refused

to

submit

to

chemical

testing,

the

22

person’s

driver’s

license

shall

be

revoked

for

a

period

of

two

23

years.

24

Sec.

18.

Section

602.8105,

Code

2026,

is

amended

by

adding

25

the

following

new

subsection:

26

NEW

SUBSECTION

.

5.

The

clerk

of

the

district

court

shall

27

collect

the

civil

penalty

assessed

pursuant

to

section

124F.2,

28

subsection

2,

paragraph

“c”

,

subparagraph

(1).

29

Sec.

19.

NEW

SECTION

.

901C.4

Felony

offenses

related

to

30

marijuana

——

expungement.

31

1.

In

addition

to

the

expungement

provisions

available

32

to

a

defendant

convicted

of

a

misdemeanor

marijuana

offense

33

under

chapter

124,

upon

application

of

a

defendant

convicted

34

of

a

felony

offense

under

chapter

124

in

the

county

where

the

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conviction

occurred,

related

to

the

possession

or

transfer

of

1

marijuana,

the

court

shall

enter

an

order

expunging

the

record

2

of

such

a

criminal

case.

3

2.

A

person

shall

be

granted

an

expungement

of

a

record

4

under

this

section

one

time

in

the

person’s

lifetime.

However,

5

the

one

application

may

request

the

expungement

of

records

6

relating

to

more

than

one

nonviolent

offense

under

this

section

7

if

the

offenses

arose

from

the

same

transaction

or

occurrence,

8

and

the

application

contains

the

offenses

to

be

expunged.

9

3.

The

expunged

record

under

this

section

is

a

confidential

10

record

exempt

from

public

access

under

section

22.7

but

shall

11

be

made

available

by

the

clerk

of

the

district

court

upon

court

12

order.

13

4.

Notwithstanding

section

692.2,

after

receipt

of

14

notice

from

the

clerk

of

the

district

court

that

a

record

of

15

conviction

has

been

expunged

under

subsection

1,

the

record

16

of

conviction

shall

be

removed

from

the

criminal

history

data

17

files

maintained

by

the

department

of

public

safety

if

such

a

18

record

was

maintained

in

the

criminal

history

data

files.

19

5.

The

supreme

court

may

prescribe

rules

governing

the

20

procedures

applicable

to

the

expungement

of

a

criminal

case

21

under

this

section.

22

6.

This

section

applies

to

a

felony

conviction

that

occurred

23

prior

to

January

1,

2027.

24

Sec.

20.

REPEAL.

Section

124.410,

Code

2026,

is

repealed.

25

DIVISION

II

26

RETAIL

MARIJUANA

27

Sec.

21.

NEW

SECTION

.

124F.4

Definitions.

28

For

the

purposes

of

this

subchapter:

29

1.

“Division”

means

the

division

of

the

department

of

30

revenue

responsible

for

the

issuance

of

alcohol

licenses.

31

2.

“Immature

plant”

means

a

nonflowering

marijuana

plant

32

that

is

no

taller

than

eight

inches

and

no

wider

than

eight

33

inches,

is

produced

from

a

cutting,

clipping,

or

seedling,

and

34

is

in

a

cultivating

container.

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3.

“License”

means

a

license

or

registration

issued

pursuant

1

to

this

subchapter.

2

4.

“Licensed

premises”

means

the

premises

specified

in

an

3

application

for

a

license

under

this

subchapter,

which

are

4

owned

or

in

possession

of

the

licensee

and

within

which

the

5

licensee

is

authorized

to

cultivate,

manufacture,

distribute,

6

sell,

or

test

retail

marijuana

and

retail

marijuana

products

in

7

accordance

with

this

subchapter.

8

5.

“Licensee”

means

a

person

licensed

or

registered

pursuant

9

to

this

subchapter.

10

6.

“Local

jurisdiction”

means

a

county.

11

7.

“Local

licensing

authority”

means,

for

any

local

12

jurisdiction

that

has

chosen

to

adopt

a

local

licensing

13

requirement

in

addition

to

the

state

licensing

requirements

14

of

this

subchapter,

an

authority

designated

by

a

municipal

15

or

county

ordinance,

or

resolution,

or

the

governing

body

of

16

a

municipality

or

county,

or

the

board

of

commissioners

of

a

17

county

if

no

such

authority

is

designated.

18

8.

“Location”

means

a

particular

parcel

of

land

that

may

be

19

identified

by

an

address

or

other

descriptive

means.

20

9.

“Marijuana”

means

the

same

as

defined

in

section

124.101.

21

10.

“Marijuana

accessories”

means

any

equipment,

products,

22

or

materials

of

any

kind

which

are

used,

intended

for

use,

or

23

designed

for

use

in

planting,

cultivating,

growing,

harvesting,

24

composting,

manufacturing,

compounding,

converting,

producing,

25

processing,

preparing,

testing,

analyzing,

packaging,

26

repackaging,

storing,

vaporizing,

or

containing

marijuana,

or

27

for

ingesting,

inhaling,

or

otherwise

introducing

marijuana

28

into

the

human

body.

29

11.

“Person”

means

a

natural

person,

partnership,

30

association,

company,

corporation,

limited

liability

company,

31

or

organization;

except

that

“person”

does

not

include

any

32

governmental

organization.

33

12.

“Retail

marijuana”

means

all

parts

of

the

plant

of

the

34

genus

Cannabis,

whether

growing

or

not,

the

seeds

thereof;

the

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resin

extracted

from

any

part

of

the

plant;

and

every

compound,

1

manufacture,

salt,

derivative,

mixture,

or

preparation

of

the

2

plant,

its

seeds

or

resin,

including

marijuana

concentrate.

3

“Retail

marijuana”

does

not

include

industrial

hemp,

nor

does

4

it

include

fiber

produced

from

the

stalks,

oil

or

cake

made

5

from

the

seeds

of

the

plant,

sterilized

seeds

of

the

plant

6

which

are

incapable

of

germination,

or

the

weight

of

any

other

7

ingredient

combined

with

marijuana

to

prepare

topical

or

oral

8

administrations,

food,

drink,

or

other

product.

9

13.

“Retail

marijuana

cultivation

facility”

means

an

entity

10

licensed

to

cultivate,

prepare,

package,

and

sell

marijuana

to

11

retail

marijuana

stores,

to

marijuana

product

manufacturing

12

facilities,

and

to

other

marijuana

cultivation

facilities,

but

13

not

to

consumers.

14

14.

“Retail

marijuana

establishment”

means

a

retail

15

marijuana

store,

a

retail

marijuana

cultivation

facility,

or

a

16

retail

marijuana

products

manufacturer.

17

15.

“Retail

marijuana

products”

means

concentrated

marijuana

18

products

and

marijuana

products

that

are

comprised

of

marijuana

19

and

other

ingredients

and

are

intended

for

use

or

consumption,

20

such

as

but

not

limited

to

edible

products,

ointments,

and

21

tinctures.

22

16.

“Retail

marijuana

products

manufacturer”

means

an

entity

23

licensed

to

purchase

marijuana;

manufacture,

prepare,

and

24

package

marijuana

products;

and

sell

marijuana

and

marijuana

25

products

to

other

marijuana

product

manufacturing

facilities

26

and

to

retail

marijuana

stores,

but

not

to

consumers.

27

17.

“Retail

marijuana

store”

means

an

entity

licensed

28

to

purchase

marijuana

from

marijuana

cultivation

facilities

29

and

sell

marijuana

and

to

purchase

marijuana

products

from

30

retail

marijuana

product

manufacturing

facilities

and

to

sell

31

marijuana

and

marijuana

products

to

consumers.

32

18.

“Retail

marijuana

transporter”

means

an

entity

or

person

33

licensed

to

transport

retail

marijuana

and

retail

marijuana

34

products

from

one

retail

marijuana

establishment

to

another

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retail

marijuana

establishment

and

to

temporarily

store

the

1

transported

retail

marijuana

and

retail

marijuana

products

at

2

its

licensed

premises,

but

is

not

authorized

to

sell

retail

3

marijuana

or

retail

marijuana

products

under

any

circumstances.

4

Sec.

22.

NEW

SECTION

.

124F.5

Applicability.

5

1.

On

or

after

July

1,

2027,

an

applicant

may

apply

for

6

licensure

of

a

retail

marijuana

establishment

pursuant

to

this

7

subchapter.

8

2.

a.

Pursuant

to

subsection

1,

an

applicant

shall

complete

9

forms

as

provided

by

the

division

and

shall

pay

the

application

10

fee

and

the

licensing

fee.

The

division

shall

forward,

within

11

seven

days

of

the

date

of

the

application,

one-half

of

the

12

application

fee

to

the

local

jurisdiction

unless

the

local

13

jurisdiction

has

prohibited

the

operation

of

retail

marijuana

14

establishments.

If

the

license

is

denied,

the

division

shall

15

refund

the

licensing

fee

to

the

applicant.

16

b.

The

division

shall

act

upon

an

application

made

pursuant

17

to

subsection

1

no

sooner

than

forty-five

days

and

no

later

18

than

ninety

days

after

the

date

of

the

application.

The

19

division

shall

process

applications

in

the

order

in

which

20

completed

applications

are

received

by

the

division.

21

3.

a.

Any

local

jurisdiction

may

enact

ordinances

or

22

regulations

governing

the

time,

place,

manner,

and

number

of

23

retail

marijuana

establishments,

which

may

include

a

local

24

licensing

requirement,

or

may

prohibit

the

operation

of

retail

25

marijuana

establishments

by

ordinance

or

by

a

referred

or

26

initiated

measure.

If

a

county

acts

through

an

initiated

27

measure,

the

proponents

shall

submit

a

petition

signed

by

not

28

less

than

fifteen

percent

of

the

registered

electors

in

the

29

county.

30

b.

If

a

county

prohibits

the

operation

of

retail

marijuana

31

establishments,

the

county

shall,

upon

receipt

of

a

petition

32

signed

by

fifteen

percent

of

the

registered

voters

in

the

33

county,

submit

to

the

voters

of

the

county

the

question

of

34

whether

the

operation

of

retail

marijuana

establishments

should

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be

allowed

in

the

county

at

the

next

general

election.

1

Sec.

23.

NEW

SECTION

.

124F.6

Retail

marijuana

licensure.

2

1.

The

division

shall

develop

and

maintain

a

seed-to-sale

3

tracking

system

that

tracks

retail

marijuana

from

either

4

seed

or

immature

plant

stage

until

the

marijuana

or

retail

5

marijuana

product

is

sold

to

a

customer

at

a

retail

marijuana

6

establishment

to

ensure

that

no

marijuana

grown

or

processed

7

by

a

retail

marijuana

establishment

is

sold

or

otherwise

8

transferred

except

by

a

retail

marijuana

store.

9

2.

The

division

shall

adopt

all

rules

necessary

for

the

10

implementation

of

this

chapter.

11

3.

Nothing

in

this

subchapter

shall

be

construed

to

be

12

a

delegation

to

the

division

of

the

power

to

fix

prices

for

13

retail

marijuana.

14

4.

Nothing

in

this

subchapter

shall

be

construed

to

limit

15

a

law

enforcement

agency’s

ability

to

investigate

unlawful

16

activity

in

relation

to

a

retail

marijuana

establishment.

A

17

law

enforcement

agency

shall

have

the

authority

to

conduct

a

18

criminal

history

record

check

of

a

licensee

and

an

employee

of

19

a

licensee

during

an

investigation

of

unlawful

activity

related

20

to

retail

marijuana

and

retail

marijuana

products.

21

5.

The

division

shall

create

a

statewide

licensure

class

22

system

for

retail

marijuana

cultivation

facilities.

The

23

classifications

may

be

based

upon

square

footage

of

the

24

facility;

lights,

lumens,

or

wattage;

canopy

lighting;

the

25

number

of

cultivating

plants;

a

combination

of

the

foregoing;

26

or

other

reasonable

metrics.

The

division

shall

create

a

fee

27

structure

for

the

licensure

class

system.

28

Sec.

24.

NEW

SECTION

.

124F.7

State

and

local

participation

29

in

licensure.

30

1.

When

the

division

receives

an

application

for

an

31

initial

license

or

a

renewal

of

an

existing

license

for

32

any

retail

marijuana

establishment,

the

division

shall

33

provide,

within

seven

days

of

receipt

of

an

application,

34

a

copy

of

the

application

to

the

local

jurisdiction

in

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which

the

establishment

is

to

be

located

unless

the

local

1

jurisdiction

has

prohibited

the

operation

of

retail

marijuana

2

establishments.

The

local

jurisdiction

shall

determine

whether

3

the

application

complies

with

local

restrictions

relating

4

to

time,

place,

manner,

and

the

number

of

retail

marijuana

5

establishments

allowed.

The

local

jurisdiction

shall

inform

6

the

division

whether

the

application

complies

with

local

7

restrictions.

8

2.

A

local

jurisdiction

may

impose

a

separate

local

9

licensing

requirement

as

a

part

of

its

restrictions

relating

10

to

time,

place,

manner,

and

the

number

of

retail

marijuana

11

establishments

allowed.

A

local

jurisdiction

may

decline

12

to

impose

any

local

licensing

requirements,

but

a

local

13

jurisdiction

shall

notify

the

division

that

it

either

approves

14

or

denies

each

application

received

by

the

local

jurisdiction.

15

3.

If

a

local

jurisdiction

issues

a

local

license

for

16

a

retail

marijuana

establishment,

a

local

jurisdiction

may

17

schedule

a

public

hearing

on

the

application.

If

the

local

18

jurisdiction

schedules

a

hearing,

it

shall

post

and

publish

19

public

notice

of

the

hearing

not

less

than

ten

days

prior

20

to

the

hearing.

The

local

jurisdiction

shall

give

public

21

notice

by

posting

a

sign

in

a

conspicuous

place

on

the

license

22

applicant’s

premises

for

which

a

local

license

application

23

has

been

made

and

by

publication

in

a

newspaper

of

general

24

circulation

in

the

county

in

which

the

applicant’s

premises

are

25

located.

26

4.

If

a

local

jurisdiction

does

not

issue

local

licenses,

27

the

local

jurisdiction

may

give

public

notice

of

the

state

28

license

application

by

posting

a

sign

in

a

conspicuous

place

29

on

the

state

license

applicant’s

premises

for

which

a

state

30

license

application

has

been

made

and

by

publication

in

a

31

newspaper

of

general

circulation

in

the

county

in

which

the

32

applicant’s

premises

are

located.

33

5.

Applications

for

a

state

license

under

this

subchapter

34

must

be

made

to

the

division

on

forms

prepared

and

furnished

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by

the

division

and

must

set

forth

such

information

as

the

1

division

may

require

to

enable

the

division

to

determine

2

whether

a

state

license

should

be

granted.

3

6.

The

division

shall

deny

a

state

license

if

the

premises

4

on

which

the

applicant

proposes

to

conduct

its

business

does

5

not

meet

the

requirements

of

this

subchapter.

The

division

6

may

refuse

or

deny

a

license

renewal,

reinstatement,

or

7

initial

license

issuance

for

good

cause.

For

purposes

of

this

8

subsection,

“good

cause”

means

any

of

the

following:

9

a.

The

licensee

or

applicant

has

violated,

does

not

meet,

10

or

has

failed

to

comply

with

any

of

the

terms,

conditions,

or

11

provisions

of

this

subchapter,

any

rules

promulgated

pursuant

12

to

this

subchapter,

or

any

supplemental

local

law,

rules,

or

13

regulations.

14

b.

The

licensee

or

applicant

has

failed

to

comply

with

any

15

special

terms

or

conditions

of

the

license

pursuant

to

an

order

16

of

the

division

or

local

licensing

authority.

17

c.

The

licensed

premises

have

been

operated

in

a

manner

that

18

adversely

affects

the

public

health

or

safety

of

the

immediate

19

neighborhood

in

which

the

retail

marijuana

establishment

is

20

located.

21

d.

The

licensed

premises

are

located

within

two

thousand

22

feet

of

real

property

comprising

a

school,

child

care

facility,

23

or

public

park.

24

7.

If

the

division

denies

a

state

license

pursuant

to

25

subsection

6,

the

applicant

shall

be

entitled

to

a

hearing

26

pursuant

to

section

17A.12

and

judicial

review

pursuant

to

27

section

17A.19.

The

division

shall

provide

written

notice

of

28

the

grounds

for

denial

of

the

state

license

to

the

applicant

29

and

to

the

local

jurisdiction

at

least

fifteen

days

prior

to

30

the

hearing.

31

8.

The

division

shall

give

primary

preference

to

applicants

32

for

licensure

who

are

currently

licensed

as

a

medical

33

cannabidiol

manufacturer

or

medical

cannabidiol

dispensary

34

pursuant

to

chapter

124E.

The

division

shall

also

prioritize

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applicants

for

licensure

that

are

businesses

that

are

1

majority-owned

by

persons

who

are

women,

citizens

or

permanent

2

legal

residents

of

Iowa,

or

disabled

veterans.

3

9.

The

division

shall

issue

licenses

to

businesses

that

4

are

majority-owned

by

persons

who

are

racial

minorities

in

a

5

proportion

that

meets

or

exceeds

the

percentage

of

persons

in

6

this

state

who

are

racial

minorities

according

to

the

most

7

recent

federal

decennial

census.

8

Sec.

25.

NEW

SECTION

.

124F.8

Establishment

and

owner

9

requirements.

10

1.

An

owner

who

is

a

natural

person

must

have

been

either

11

of

the

following:

12

a.

A

resident

of

Iowa

for

at

least

one

year

prior

to

the

13

date

of

the

application.

14

b.

A

United

States

citizen

prior

to

the

date

of

the

15

application.

16

2.

A

retail

marijuana

establishment

may

be

composed

of

an

17

unlimited

number

of

owners

that

have

been

residents

of

Iowa

for

18

at

least

one

year

prior

to

the

date

of

the

application.

19

3.

A

retail

marijuana

establishment

shall

not

interfere

20

with

the

creation

of

or

participation

in

a

labor

organization,

21

as

defined

in

section

216.2,

by

employees

of

the

retail

22

marijuana

establishment.

23

4.

The

division

shall

review

the

retail

marijuana

24

establishment’s

operating

documents

to

ensure

compliance

with

25

this

section.

26

Sec.

26.

NEW

SECTION

.

124F.9

Retail

marijuana

establishment

27

licensure.

28

1.

Local

jurisdictions

may

adopt

and

enforce

regulations

29

for

retail

marijuana

establishments

that

are

at

least

as

30

restrictive

as

the

provisions

of

this

subchapter

and

any

rule

31

promulgated

pursuant

to

this

subchapter.

32

2.

A

retail

marijuana

establishment

shall

not

operate

33

until

the

retail

marijuana

establishment

is

licensed

by

the

34

division

pursuant

to

this

subchapter

and

approved

by

the

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relevant

local

jurisdiction.

If

an

application

is

denied

by

1

the

local

licensing

authority,

the

division

shall

revoke

the

2

state

license.

In

connection

with

a

license,

the

applicant

3

shall

provide

a

complete

and

accurate

application

as

required

4

by

the

division.

5

3.

A

retail

marijuana

establishment

shall

notify

the

6

division

in

writing

of

the

name,

address,

and

date

of

birth

of

7

a

new

owner,

officer,

or

manager

before

the

new

owner,

officer,

8

or

manager

begins

managing,

owning,

working,

or

otherwise

9

associating

with

the

establishment.

The

owner,

officer,

10

manager,

or

employee

shall

pass

a

fingerprint-based

criminal

11

history

record

check

as

required

by

the

division

and

shall

12

obtain

the

required

identification

prior

to

managing,

owning,

13

working,

or

otherwise

associating

with

the

establishment.

14

The

division

shall

not

deny

licensure

to

a

retail

marijuana

15

establishment

on

the

basis

that

an

owner,

officer,

manager,

16

or

employee

has

been

convicted

of

a

crime

other

than

a

17

violent

crime,

as

defined

in

section

915.10,

if

the

person

has

18

completed

any

term

of

probation

or

parole

imposed

by

the

court.

19

4.

Before

granting

a

state

license,

the

division

may

20

consider,

except

when

this

subchapter

specifically

provides

21

otherwise,

the

requirements

of

this

subchapter

and

any

22

rules

promulgated

pursuant

to

this

subchapter,

and

all

other

23

reasonable

restrictions

that

are

or

may

be

placed

upon

a

24

licensee

by

the

division

or

local

licensing

authority.

25

5.

a.

Each

license

issued

under

this

subchapter

is

separate

26

and

distinct.

It

is

unlawful

for

a

person

to

exercise

any

27

of

the

privileges

granted

under

a

license

other

than

the

28

license

that

the

person

holds

or

for

a

licensee

to

allow

any

29

other

person

to

exercise

the

privileges

granted

under

the

30

licensee’s

license.

A

separate

license

shall

be

required

for

31

each

specific

business

or

business

entity

and

each

geographical

32

location.

33

b.

At

all

times,

a

licensee

shall

possess

and

maintain

34

possession

of

the

premises

for

which

the

license

is

issued

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through

ownership,

lease,

rental,

or

other

arrangement

for

1

possession

of

the

premises.

2

6.

Each

licensee

shall

manage

the

licensed

premises

3

personally

or

employ

a

separate

and

distinct

manager

on

4

the

premises

and

shall

report

the

name

of

the

manager

to

5

the

division

and

local

licensing

authority.

The

licensee

6

shall

report

any

change

in

manager

to

the

division

and

local

7

licensing

authority

within

seven

days

after

the

change.

8

Sec.

27.

NEW

SECTION

.

124F.10

License

renewal.

9

1.

Ninety

days

prior

to

the

expiration

date

of

an

existing

10

license,

the

division

shall

notify

a

licensee

of

the

expiration

11

date

by

first

class

mail

at

the

licensee’s

address

of

record

12

with

the

division.

A

licensee

may

apply

for

the

renewal

of

13

an

existing

license

to

the

division

not

less

than

thirty

days

14

prior

to

the

date

of

expiration

of

the

existing

license.

Upon

15

receipt

of

an

application

for

renewal

of

an

existing

license

16

and

any

applicable

fees,

the

division

shall

submit,

within

17

seven

days

of

the

application,

a

copy

of

the

application

to

18

the

local

jurisdiction

to

determine

whether

the

application

19

complies

with

all

local

restrictions

on

renewal

of

licenses.

20

The

division

shall

not

accept

an

application

for

renewal

of

a

21

license

after

the

date

of

expiration,

except

as

provided

in

22

subsection

3.

The

division

may

extend

the

expiration

date

of

23

the

license

and

accept

a

late

application

for

renewal

of

a

24

license

if

the

applicant

has

filed

a

timely

renewal

application

25

with

the

local

licensing

authority.

The

division

or

the

local

26

licensing

authority,

in

its

discretion,

and

subject

to

the

27

requirements

of

this

subsection

and

subsection

3

and

based

upon

28

reasonable

grounds,

may

waive

the

thirty-day

time

requirements

29

set

forth

in

this

subsection.

30

2.

The

division

may

request

additional

fingerprints

from

a

31

licensee

when

there

is

a

demonstrated

investigative

need.

32

3.

a.

Notwithstanding

the

provisions

of

subsection

1,

33

a

licensee

whose

license

has

been

expired

for

not

more

than

34

ninety

days

may

file

a

late

renewal

application

upon

the

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payment

of

a

nonrefundable

late

application

fee

of

five

hundred

1

dollars

to

the

division.

A

licensee

who

files

a

late

renewal

2

application

and

pays

the

requisite

fees

may

continue

to

operate

3

until

the

division

takes

final

action

to

approve

or

deny

4

the

licensee’s

late

renewal

application

unless

the

division

5

summarily

suspends

the

license

pursuant

to

chapter

17A,

this

6

subchapter,

and

rules

adopted

pursuant

to

this

subchapter.

7

b.

The

division

may

administratively

continue

a

license

8

and

accept

a

later

application

for

renewal

of

a

license

at

the

9

discretion

of

the

division.

10

Sec.

28.

NEW

SECTION

.

124F.11

Classes

of

licenses.

11

For

the

purpose

of

regulating

the

cultivation,

manufacture,

12

distribution,

sale,

and

testing

of

retail

marijuana

and

retail

13

marijuana

products,

the

division

in

its

discretion,

upon

14

receipt

of

an

application

in

the

prescribed

form,

may

issue

and

15

grant

to

the

applicant

a

license

or

registration

in

any

of

the

16

following

classes,

subject

to

the

provisions

and

restrictions

17

provided

by

this

subchapter:

18

1.

Retail

marijuana

store

license.

19

2.

Retail

marijuana

cultivation

facility

license.

20

3.

Retail

marijuana

products

manufacturing

license.

21

4.

Occupational

licenses

and

registrations

for

owners,

22

managers,

operators,

employees,

contractors,

and

other

support

23

staff

employed

by,

working

in,

or

having

access

to

restricted

24

areas

of

the

licensed

premises,

as

determined

by

the

division.

25

The

division

may

take

any

action

with

respect

to

a

registration

26

pursuant

to

this

subchapter

as

it

may

with

respect

to

a

license

27

pursuant

to

this

subchapter,

in

accordance

with

the

procedures

28

established

pursuant

to

this

subchapter.

29

5.

Retail

marijuana

transporter

license.

30

Sec.

29.

NEW

SECTION

.

124F.12

Retail

marijuana

store

31

license.

32

1.

a.

A

retail

marijuana

store

license

shall

be

issued

33

by

the

division

only

to

a

person

selling

retail

marijuana

or

34

retail

marijuana

products

pursuant

to

the

terms

and

conditions

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of

this

subchapter.

1

b.

A

retail

marijuana

store

shall

not

accept

any

retail

2

marijuana

purchased

from

a

retail

marijuana

cultivation

3

facility

unless

the

retail

marijuana

store

is

provided

with

4

evidence

that

any

applicable

excise

tax

due

was

paid.

5

2.

Notwithstanding

the

provisions

of

this

section,

a

6

retail

marijuana

store

licensee

may

also

sell

retail

marijuana

7

products

that

are

prepackaged

and

labeled

as

required

by

rules

8

of

the

division

pursuant

to

section

124F.21.

9

3.

a.

A

retail

marijuana

store

shall

not

sell

more

than

one

10

ounce

of

retail

marijuana

or

its

equivalent

in

retail

marijuana

11

products,

including

retail

marijuana

concentrate,

except

for

12

nonedible,

nonpsychoactive

retail

marijuana

products,

including

13

ointments,

lotions,

balms,

and

other

nontransdermal

topical

14

products

to

a

person.

15

b.

(1)

Prior

to

initiating

a

sale,

an

employee

of

the

16

retail

marijuana

store

making

the

sale

shall

verify

that

17

the

purchaser

has

a

valid

identification

card

showing

the

18

purchaser

is

twenty-one

years

of

age

or

older.

If

a

person

19

under

twenty-one

years

of

age

presents

fraudulent

proof

of

age,

20

any

action

relying

on

the

fraudulent

proof

of

age

shall

not

be

21

grounds

for

the

revocation

or

suspension

of

any

license

issued

22

under

this

subchapter.

23

(2)

(a)

If

a

retail

marijuana

store

licensee

or

24

employee

has

reasonable

cause

to

believe

that

a

person

is

25

under

twenty-one

years

of

age

and

is

exhibiting

fraudulent

26

proof

of

age

in

an

attempt

to

obtain

any

retail

marijuana

27

or

cannabis-infused

product,

the

licensee

or

employee

is

28

authorized

to

confiscate

such

fraudulent

proof

of

age,

if

29

possible,

and

shall,

within

seventy-two

hours

after

the

30

confiscation,

remit

such

fraudulent

proof

of

age

to

a

state

31

or

local

law

enforcement

agency.

The

failure

to

confiscate

32

such

fraudulent

proof

of

age

or

to

remit

such

fraudulent

proof

33

of

age

to

a

state

or

local

law

enforcement

agency

within

34

seventy-two

hours

after

the

confiscation

shall

not

constitute

a

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criminal

offense.

1

(b)

If

a

retail

marijuana

store

licensee

or

employee

2

believes

that

a

person

is

under

twenty-one

years

of

age

and

3

presents

fraudulent

proof

of

age

in

an

attempt

to

obtain

any

4

retail

marijuana

or

retail

cannabis-infused

product,

the

5

licensee

or

employee

or

any

peace

officer

or

police

officer,

6

acting

in

good

faith

and

upon

probable

cause

based

upon

7

reasonable

grounds

therefor,

may

detain

and

question

such

8

person

in

a

reasonable

manner

for

the

purpose

of

ascertaining

9

whether

the

person

is

guilty

of

any

unlawful

act

regarding

the

10

purchase

of

retail

marijuana.

The

questioning

of

a

person

by

a

11

licensee,

employee,

peace

officer,

or

police

officer

does

not

12

render

the

licensee,

employee,

peace

officer,

or

police

officer

13

civilly

or

criminally

liable

for

slander,

false

arrest,

false

14

imprisonment,

malicious

prosecution,

or

unlawful

detention.

15

4.

All

retail

marijuana

and

retail

marijuana

products

16

sold

at

a

licensed

retail

marijuana

store

shall

be

packaged

17

and

labeled

as

required

by

rules

of

the

division

pursuant

to

18

section

124F.21.

19

5.

a.

A

licensed

retail

marijuana

store

shall

only

20

sell

retail

marijuana,

retail

marijuana

products,

marijuana

21

accessories,

nonconsumable

products

such

as

apparel,

and

22

marijuana-related

products

such

as

childproof

packaging

23

containers,

but

shall

be

prohibited

from

selling

or

giving

24

away

any

consumable

product,

including

but

not

limited

to

25

cigarettes,

alcohol,

or

an

edible

product

that

does

not

contain

26

marijuana,

including

but

not

limited

to

sodas,

candies,

or

27

baked

goods.

28

b.

A

licensed

retail

marijuana

store

shall

not

sell

any

29

retail

marijuana

or

retail

marijuana

products

that

contain

30

nicotine

or

alcohol,

if

the

sale

of

the

alcohol

would

require

a

31

license

pursuant

to

chapter

123.

32

c.

A

licensed

retail

marijuana

store

shall

not

sell

retail

33

marijuana

or

retail

marijuana

products

over

the

internet

nor

34

deliver

retail

marijuana

or

retail

marijuana

products

to

a

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person

who

is

not

physically

present

in

the

retail

marijuana

1

store’s

licensed

premises.

2

6.

Retail

marijuana

or

retail

marijuana

products

shall

not

3

be

consumed

on

the

premises

of

a

retail

marijuana

store.

4

7.

Notwithstanding

any

other

provision

of

state

law,

sales

5

of

retail

marijuana

and

retail

marijuana

products

are

not

6

exempt

from

state

or

local

sales

tax.

7

8.

The

division

shall

not

issue

more

than

one

retail

8

marijuana

store

license

per

county,

except

that

the

division

9

may,

upon

receipt

of

a

petition,

issue

one

additional

retail

10

marijuana

store

license

per

one

hundred

thousand

population

11

in

the

county

according

to

the

most

recent

federal

decennial

12

census.

13

9.

A

retail

marijuana

store

may

also

be

licensed

as

a

14

medical

cannabis

dispensary

pursuant

to

chapter

124E.

The

15

division

shall,

in

consultation

with

the

department

of

public

16

health,

adopt

rules

for

the

implementation

of

this

subsection.

17

Sec.

30.

NEW

SECTION

.

124F.13

Retail

marijuana

cultivation

18

facility

license.

19

1.

A

retail

marijuana

cultivation

facility

license

shall

20

be

issued

by

the

division

only

to

a

person

who

cultivates

21

retail

marijuana

for

sale

and

distribution

to

licensed

retail

22

marijuana

stores,

retail

marijuana

products

manufacturing

23

licensees,

or

other

retail

marijuana

cultivation

facilities.

24

2.

A

retail

marijuana

cultivation

facility

shall

remit

any

25

applicable

excise

tax

due.

26

3.

A

retail

marijuana

cultivation

facility

shall

track

27

the

marijuana

it

cultivates

from

seed

or

immature

plant

to

28

wholesale

purchase

of

the

retail

marijuana.

Prior

to

delivery

29

of

any

retail

marijuana

that

is

sold,

the

retail

marijuana

30

cultivation

facility

shall

provide

evidence

that

the

facility

31

paid

any

applicable

excise

tax

on

the

retail

marijuana

due.

32

4.

A

retail

marijuana

cultivation

facility

may

provide,

33

except

as

required

by

section

124F.21,

a

sample

of

its

products

34

to

the

state

hygienic

laboratory

for

testing

and

research

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purposes.

A

retail

marijuana

cultivation

facility

shall

1

maintain

a

record

of

the

sample

provided

to

the

state

hygienic

2

laboratory

and

the

testing

results.

3

5.

Retail

marijuana

or

retail

marijuana

products

shall

not

4

be

consumed

on

the

premises

of

a

retail

marijuana

cultivation

5

facility.

6

Sec.

31.

NEW

SECTION

.

124F.14

Retail

marijuana

products

7

manufacturing

license.

8

1.

a.

A

retail

marijuana

products

manufacturing

license

9

shall

be

issued

by

the

division

to

a

person

who

manufactures

10

retail

marijuana

products

pursuant

to

the

terms

and

conditions

11

of

this

subchapter.

12

b.

A

retail

marijuana

products

manufacturer

may

cultivate

13

its

own

retail

marijuana

if

the

manufacturer

obtains

a

retail

14

marijuana

cultivation

facility

license,

or

it

may

purchase

15

retail

marijuana

from

a

licensed

retail

marijuana

cultivation

16

facility.

A

retail

marijuana

products

manufacturer

shall

track

17

all

of

its

retail

marijuana

from

the

point

the

retail

marijuana

18

is

either

transferred

from

its

retail

marijuana

cultivation

19

facility

or

from

the

point

when

the

retail

marijuana

is

20

delivered

to

the

retail

marijuana

products

manufacturer

from

a

21

licensed

retail

marijuana

cultivation

facility

to

the

point

of

22

transfer

to

a

licensed

retail

marijuana

store.

23

c.

A

retail

marijuana

products

manufacturer

shall

not

24

accept

any

retail

marijuana

purchased

from

a

retail

marijuana

25

cultivation

facility

unless

the

retail

marijuana

products

26

manufacturer

is

provided

with

evidence

that

any

applicable

27

excise

tax

due

was

paid.

28

2.

All

retail

marijuana

products

shall

be

prepared

on

29

a

licensed

premises

used

exclusively

for

the

manufacture

30

and

preparation

of

retail

marijuana

or

retail

marijuana

31

products

and

using

equipment

that

is

used

exclusively

for

the

32

manufacture

and

preparation

of

retail

marijuana

products;

33

except

that,

if

permitted

by

the

local

jurisdiction,

a

34

retail

marijuana

products

manufacturing

licensee

may

share

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the

same

premises

as

a

medical

cannabidiol-infused

products

1

manufacturing

licensee

so

long

as

a

virtual

or

physical

2

separation

of

inventory

is

maintained

pursuant

to

rules

3

promulgated

by

the

division.

4

3.

All

licensed

premises

on

which

retail

marijuana

products

5

are

manufactured

shall

meet

the

sanitary

standards

for

retail

6

marijuana

product

preparation

promulgated

pursuant

to

section

7

124F.21.

8

4.

Retail

marijuana

or

retail

marijuana

products

shall

not

9

be

consumed

on

the

premises

of

a

retail

marijuana

products

10

manufacturing

facility.

11

5.

A

retail

marijuana

products

manufacturer

may

provide,

12

except

as

required

by

section

124F.21,

a

sample

of

its

products

13

to

the

state

hygienic

laboratory

for

testing

and

research

14

purposes.

A

retail

marijuana

products

manufacturer

shall

15

maintain

a

record

of

what

was

provided

to

the

state

hygienic

16

laboratory

and

the

results

of

the

testing.

17

6.

A

licensed

retail

marijuana

products

manufacturer

shall

18

package

and

label

each

product

manufactured

as

required

by

19

rules

of

the

division

pursuant

to

section

124F.21.

20

7.

All

retail

marijuana

products

that

require

refrigeration

21

to

prevent

spoilage

must

be

stored

and

transported

in

a

22

refrigerated

environment.

23

Sec.

32.

NEW

SECTION

.

124F.15

Retail

marijuana

use

——

24

protections.

25

1.

No

person

shall

be

subject

to

arrest,

prosecution,

or

26

penalty

in

any

manner,

or

be

denied

any

right

or

privilege,

27

including

but

not

limited

to

disciplinary

action

by

a

business,

28

occupational,

or

professional

licensing

board,

solely

for

29

conduct

permitted

under

this

subchapter.

30

2.

a.

Except

as

provided

in

this

section,

neither

the

state

31

nor

any

of

its

political

subdivisions

shall

impose

any

penalty

32

or

deny

any

benefit

or

entitlement

for

conduct

permitted

33

under

this

subchapter

or

for

the

presence

of

cannabinoids

or

34

cannabinoid

metabolites

in

the

urine,

blood,

saliva,

breath,

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hair,

or

other

tissue

or

fluid

of

a

person

who

is

twenty-one

1

years

of

age

or

older.

2

b.

Except

as

provided

in

this

section

and

section

321J.2C,

3

neither

the

state

nor

any

of

its

political

subdivisions

4

shall

deny

a

driver’s

license,

a

professional

license,

5

housing

assistance,

social

services,

or

other

benefits

based

6

on

marijuana

use

or

for

the

presence

of

cannabinoids

or

7

cannabinoid

metabolites

in

the

urine,

blood,

saliva,

breath,

8

hair,

or

other

tissue

or

fluid

of

a

person

who

is

twenty-one

9

years

of

age

or

older.

10

3.

No

person

shall

be

denied

custody

of

or

visitation

with

a

11

minor

for

acting

in

accordance

with

this

subchapter,

unless

the

12

person’s

behavior

creates

an

unreasonable

danger

to

the

minor

13

that

can

be

clearly

articulated

and

substantiated.

14

4.

Except

as

provided

in

this

section,

neither

the

state

15

nor

any

of

its

political

subdivisions

shall

deny

employment

16

or

a

contract

to

a

person

for

engaging

in

conduct

permitted

17

under

this

subchapter,

for

a

prior

conviction

for

a

nonviolent

18

marijuana

offense

that

does

not

involve

distribution

to

minors,

19

or

for

testing

positive

for

the

presence

of

cannabinoids

or

20

cannabinoid

metabolites

in

the

urine,

blood,

saliva,

breath,

21

hair,

or

other

tissue

or

fluid

of

the

individual’s

body.

22

5.

For

the

purposes

of

medical

care,

including

organ

and

23

tissue

transplants,

the

use

of

marijuana

does

not

constitute

24

the

use

of

an

illicit

substance

or

otherwise

disqualify

a

25

person

from

needed

medical

care

and

may

only

be

considered

with

26

respect

to

evidence-based

clinical

criteria.

27

6.

Notwithstanding

any

other

provision

of

law

to

the

28

contrary,

unless

there

is

a

specific

finding

that

the

29

individual’s

use,

cultivation,

or

possession

of

marijuana

could

30

create

a

danger

to

the

individual

or

another

person,

it

shall

31

not

be

a

violation

of

conditions

of

parole,

probation,

or

32

pretrial

release

to

do

any

of

the

following:

33

a.

Engage

in

conduct

allowed

by

this

subchapter.

34

b.

Test

positive

for

marijuana,

delta-9

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tetrahydrocannabinol,

or

any

other

cannabinoid

or

metabolite

of

1

marijuana,

except

as

provided

in

section

321J.2C.

2

7.

a.

This

section

does

not

prevent

a

governmental

employer

3

from

disciplining

an

employee

or

contractor

for

ingesting

4

marijuana

in

the

workplace

or

for

working

while

under

the

5

influence

of

marijuana.

6

b.

The

protections

provided

by

this

section

do

not

apply

to

7

the

extent

that

they

conflict

with

a

governmental

employer’s

8

obligations

under

federal

law

or

regulations

or

to

the

extent

9

that

they

would

disqualify

the

entity

from

a

monetary

or

10

licensing-related

benefit

under

federal

law

or

regulations.

11

c.

This

section

does

not

authorize

any

person

to

engage

in,

12

and

does

not

prevent

the

imposition

of

any

civil,

criminal,

13

discipline,

or

other

penalties,

including

discipline

or

14

termination

by

a

governmental

employer,

any

task

while

under

15

the

influence

of

marijuana,

when

doing

so

would

constitute

16

negligence

or

professional

malpractice.

17

Sec.

33.

NEW

SECTION

.

124F.16

Discipline.

18

In

addition

to

any

other

sanctions

prescribed

by

this

19

subchapter

or

rules

adopted

pursuant

to

this

subchapter,

the

20

division

has

the

power,

on

its

own

motion

or

upon

complaint,

21

after

investigation

and

opportunity

for

a

public

hearing

at

22

which

a

licensee

must

be

afforded

an

opportunity

to

be

heard,

23

to

fine

a

licensee

or

to

suspend

or

revoke

a

license

issued

by

24

the

division

for

a

violation

by

the

licensee

or

by

any

of

the

25

agents

or

employees

of

the

licensee

of

the

provisions

of

this

26

subchapter,

or

any

of

the

rules

promulgated

pursuant

to

this

27

subchapter,

or

of

any

of

the

terms,

conditions,

or

provisions

28

of

the

license

issued

by

the

division.

The

division

has

the

29

power

to

administer

oaths

and

issue

subpoenas

to

require

the

30

presence

of

persons

and

the

production

of

papers,

books,

and

31

records

necessary

to

the

determination

of

a

hearing

that

the

32

division

is

authorized

to

conduct.

The

division

shall

conduct

33

a

contested

case

pursuant

to

chapter

17A

prior

to

imposing

34

discipline,

except

in

the

case

of

an

emergency

adjudication.

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Sec.

34.

NEW

SECTION

.

124F.17

Disposition

of

seized

1

materials.

2

1.

This

section

shall

apply

in

addition

to

any

criminal,

3

civil,

or

administrative

penalties

and

in

addition

to

any

4

other

penalties

prescribed

by

this

subchapter

or

any

rules

5

promulgated

pursuant

to

this

subchapter.

6

2.

A

state

or

local

agency

shall

not

be

required

to

7

cultivate

or

care

for

any

retail

marijuana

or

retail

marijuana

8

product

belonging

to

or

seized

from

a

licensee.

A

state

or

9

local

agency

shall

not

be

authorized

to

sell

marijuana

or

10

retail

marijuana.

11

3.

If

the

division

issues

a

final

order

imposing

a

12

disciplinary

action

against

a

licensee

pursuant

to

section

13

124F.16,

then,

in

addition

to

any

other

remedies,

the

14

division’s

final

order

may

specify

that

some

or

all

of

the

15

licensee’s

marijuana

or

marijuana

product

is

not

retail

16

marijuana

or

a

retail

marijuana

product

and

is

an

illegal

17

controlled

substance.

The

final

order

may

further

specify

that

18

the

licensee

shall

lose

any

interest

in

any

of

the

marijuana

or

19

marijuana

product

even

if

the

marijuana

or

marijuana

product

20

previously

qualified

as

retail

marijuana

or

a

retail

marijuana

21

product.

22

4.

On

or

before

January

1,

2027,

the

division

shall

adopt

23

rules

governing

the

implementation

of

this

section.

24

Sec.

35.

NEW

SECTION

.

124F.18

Inspection

procedures.

25

1.

A

licensee

shall

keep

a

complete

set

of

all

records

26

necessary

to

show

fully

the

business

transactions

of

the

27

licensee,

all

of

which

shall

be

accessible

at

all

times

during

28

business

hours

for

inspection

and

examination

by

the

division

29

or

its

authorized

representatives.

The

division

may

require

30

a

licensee

to

furnish

such

information

as

necessary

for

the

31

proper

administration

of

this

subchapter

and

may

require

an

32

audit

to

be

made

of

the

books

of

account

and

records

on

such

33

occasions

as

necessary

by

an

auditor

selected

by

the

division

34

who

shall

have

access

to

all

books

and

records

of

the

licensee.

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All

associated

expenses

shall

be

paid

by

the

licensee.

1

2.

Any

licensed

premises,

including

any

places

of

storage

2

where

retail

marijuana

or

retail

marijuana

products

are

stored,

3

cultivated,

sold,

dispensed,

or

tested

shall

be

subject

to

4

inspection

by

the

state

or

local

jurisdictions

and

their

5

investigators,

during

all

business

hours

and

during

other

times

6

when

employees

are

present,

for

the

purpose

of

inspection

7

or

investigation.

Access

shall

be

required

during

business

8

hours

for

examination

of

any

inventory

or

books

and

records

9

required

to

be

kept

by

the

licensees.

If

any

part

of

the

10

licensed

premises

consists

of

a

locked

area,

upon

demand

to

11

the

licensee,

such

area

shall

be

made

available

for

inspection

12

without

delay,

and,

upon

request

by

authorized

representatives

13

of

the

state

or

local

jurisdiction,

the

licensee

shall

open

the

14

area

for

inspection.

15

3.

A

licensee

shall

retain

all

books

and

records

necessary

16

to

show

fully

the

business

transactions

of

the

licensee

for

17

a

period

of

the

current

tax

year

and

the

three

immediately

18

preceding

tax

years.

19

Sec.

36.

NEW

SECTION

.

124F.19

Marijuana

excise

tax.

20

1.

An

excise

tax

is

imposed

on

consumers

at

the

rate

of

ten

21

percent

of

the

sales

price

of

each

sale

of

retail

marijuana

and

22

retail

marijuana

products.

23

2.

The

tax

imposed

by

this

section

shall

be

paid

by

the

24

consumer

to

the

retail

marijuana

establishment.

Each

retail

25

marijuana

establishment

shall

collect

from

the

consumer

the

26

full

amount

of

the

tax

payable

on

each

taxable

sale.

27

3.

On

the

fifteenth

day

of

each

month,

each

retail

marijuana

28

establishment

that

sells

retail

marijuana

to

a

consumer

shall

29

pay

the

excise

taxes

due

on

the

retail

marijuana

that

the

30

retail

marijuana

establishment

sold

in

the

previous

calendar

31

month

to

the

division.

32

Sec.

37.

NEW

SECTION

.

124F.20

Occupational

licensing

——

33

protections.

34

1.

A

person

holding

a

professional

or

occupational

license

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shall

not

be

subject

to

professional

discipline

for

providing

1

advice

or

services

related

to

retail

marijuana

establishments

2

or

applications

to

operate

retail

marijuana

establishments

on

3

the

basis

that

marijuana

is

illegal

under

federal

law.

4

2.

An

applicant

for

a

professional

or

occupational

license

5

shall

not

be

denied

a

license

based

on

previous

employment

6

related

to

retail

marijuana

establishments

operating

in

7

accordance

with

state

law.

8

Sec.

38.

NEW

SECTION

.

124F.21

Rulemaking.

9

1.

The

division

shall,

within

one

year

of

the

effective

10

date

of

this

Act,

adopt

rules

for

the

implementation

of

11

this

subchapter.

The

rules

shall

not

prohibit

the

operation

12

of

retail

marijuana

establishments

or

require

such

a

high

13

investment

of

risk,

money,

time,

or

other

resource

or

asset

14

that

the

operation

of

a

retail

marijuana

establishment

is

not

15

worthy

of

being

carried

out

in

practice

by

a

reasonably

prudent

16

businessperson.

Such

rules

shall

include

all

of

the

following:

17

a.

Procedures

for

the

issuance,

renewal,

suspension,

and

18

revocation

of

a

registration

to

operate

a

retail

marijuana

19

establishment,

subject

to

chapter

17A.

20

b.

A

schedule

of

reasonable

application,

registration,

21

and

renewal

fees,

provided

application

fees

shall

not

exceed

22

five

thousand

dollars,

with

this

upper

limit

adjusted

annually

23

for

inflation,

unless

the

division

determines

a

greater

fee

24

is

necessary

to

carry

out

its

responsibilities

under

this

25

subchapter.

Fees

shall

be

collected

by

the

division

and

used

26

to

administer

this

subchapter.

27

c.

Qualifications

for

registration

that

are

directly

and

28

demonstrably

related

to

the

operation

of

a

retail

marijuana

29

establishment

and

that

may

not

disqualify

applicants

solely

for

30

marijuana

offenses

prior

to

the

effective

date

of

this

Act.

31

d.

Security

requirements.

32

e.

Requirements

for

the

transportation

and

storage

of

retail

33

marijuana

and

retail

marijuana

products

by

retail

marijuana

34

establishments.

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f.

Requirements

for

the

delivery

of

retail

marijuana

and

1

retail

marijuana

products

to

consumers,

including

a

prohibition

2

on

business

names,

logos,

and

other

identifying

language

or

3

images

on

delivery

vehicles

and

a

prohibition

on

delivering

4

retail

marijuana

and

retail

marijuana

products

to

any

address

5

located

on

land

owned

by

the

federal

government

or

any

address

6

on

land

or

in

a

building

leased

by

the

federal

government.

7

g.

Employment

and

training

requirements,

including

8

requiring

that

each

retail

marijuana

establishment

create

9

an

identification

badge

for

each

employee

or

agent.

These

10

requirements

shall

not

disqualify

applicants

solely

for

11

marijuana

offenses

prior

to

the

effective

date

of

this

Act.

12

h.

Requirements

designed

to

prevent

the

sale

or

diversion

of

13

retail

marijuana

and

retail

marijuana

products

to

persons

under

14

the

age

of

twenty-one.

15

i.

Requirements

for

retail

marijuana

and

retail

16

marijuana

products

sold

or

distributed

by

a

retail

marijuana

17

establishment,

including

prohibiting

any

misleading

labeling

18

and

requiring

retail

marijuana

product

labels

to

include

all

19

of

the

following:

20

(1)

The

length

of

time

it

typically

takes

for

the

product

21

to

take

effect.

22

(2)

A

disclosure

of

ingredients

and

possible

allergens.

23

(3)

A

nutritional

fact

panel.

24

(4)

Requiring

opaque,

child

resistant

packaging,

which

must

25

be

designed

or

constructed

to

be

significantly

difficult

for

26

children

under

five

years

of

age

to

open

and

not

difficult

for

27

adults

to

use

properly

as

defined

by

16

C.F.R.

§1700.20.

28

(5)

Requiring

that

edible

retail

marijuana

products

be

29

clearly

identifiable,

when

practicable,

with

a

standard

symbol

30

indicating

the

retail

marijuana

product

contains

marijuana.

31

j.

Health

and

safety

regulations

and

standards

for

the

32

manufacture

of

retail

marijuana

products

and

both

the

indoor

33

and

outdoor

cultivation

of

retail

marijuana

by

retail

marijuana

34

establishments.

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k.

Restrictions

on

advertising,

marketing,

and

signage

1

including

but

not

limited

to

a

prohibition

on

mass-market

2

campaigns

that

have

a

high

likelihood

of

reaching

minors.

3

l.

Rules

to

create

at

least

six

tiers

of

retail

marijuana

4

cultivation

facilities,

based

on

the

size

of

the

facility

or

5

the

number

of

plants

cultivated,

and

whether

the

cultivation

6

occurs

outdoors,

indoors,

or

in

a

greenhouse.

Security

7

regulations

and

licensing

fees

must

vary

based

on

the

size

of

8

the

cultivation

facility.

9

m.

Restrictions

or

prohibitions

on

additives

in

retail

10

marijuana

and

retail

marijuana-infused

products,

including

but

11

not

limited

to

those

that

are

toxic

or

designed

to

make

the

12

product

more

addictive.

13

n.

Prohibitions

on

products

that

are

designed

to

make

the

14

product

more

appealing

to

children,

including

prohibiting

the

15

use

of

any

images

designed

or

likely

to

appeal

to

minors,

16

including

cartoons,

toys,

animals,

or

children,

and

any

other

17

images,

characters,

or

phrases

that

are

popularly

used

to

18

advertise

to

children.

19

o.

Restrictions

on

the

use

of

pesticides

that

are

injurious

20

to

human

health.

21

p.

Rules

governing

visits

to

retail

marijuana

cultivation

22

facilities

and

retail

marijuana

product

manufacturing

23

facilities,

including

requiring

the

retail

marijuana

24

establishment

to

log

visitors.

25

q.

A

definition

of

the

amount

of

delta-9

26

tetrahydrocannabinol

that

constitutes

a

single

serving

27

in

a

retail

marijuana

product.

28

r.

Standards

for

the

safe

manufacture

of

marijuana

extracts

29

and

concentrates.

30

s.

Requirements

that

educational

materials

be

disseminated

31

to

consumers

who

purchase

retail

marijuana-infused

products.

32

t.

Requirements

for

random

sample

testing

to

ensure

quality

33

control,

including

by

ensuring

that

retail

marijuana

and

34

retail

marijuana-infused

products

are

accurately

labeled

for

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potency.

Unless

the

division

determines

that

remediation

or

1

treatment

is

sufficient

to

ensure

product

safety,

the

testing

2

analysis

must

include

testing

for

residual

solvents,

poisons,

3

or

toxins;

harmful

chemicals;

dangerous

molds

or

mildew;

filth;

4

and

harmful

microbials

such

as

E.

coli

or

salmonella

and

5

pesticides.

6

u.

Standards

for

the

operation

of

marijuana

testing

7

facilities,

including

requirements

for

equipment

and

8

qualifications

for

personnel.

9

v.

Civil

penalties

for

the

failure

to

comply

with

rules

10

adopted

pursuant

to

this

subchapter.

Civil

penalties

shall

11

be

collected

by

the

division

and

used

to

administer

this

12

subchapter.

13

w.

Procedures

for

collecting

taxes

levied

on

retail

14

marijuana

establishments.

15

x.

Requirements

for

on-site

consumption

establishments,

16

including

for

security,

ventilation,

odor

control,

and

17

consumption

by

patrons.

These

rules

may

include

a

prohibition

18

on

smoking

indoors.

19

y.

Requirements

for

the

verification

of

licensure

in

20

transactions

between

licensees.

21

2.

After

consultation

with

researchers

knowledgeable

22

about

the

risks

and

benefits

of

marijuana

and

providing

an

23

opportunity

for

public

comment,

the

division

shall

develop

a

24

scientifically

accurate

safety

information

label

or

handout

25

or

both,

which

shall

be

available

to

each

adult-use

marijuana

26

consumer.

The

label

or

handout

shall

include

all

of

the

27

following:

28

a.

Advice

about

the

potential

risks

of

marijuana,

including

29

all

of

the

following:

30

(1)

The

risks

of

driving

under

the

influence

of

marijuana,

31

and

the

fact

that

doing

so

is

illegal.

32

(2)

Any

adverse

effects

unique

to

younger

adults,

including

33

related

to

the

developing

mind.

34

(3)

Potential

adverse

events

and

other

risks.

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(4)

The

risks

of

using

marijuana

during

pregnancy

and

1

breastfeeding.

2

b.

The

need

to

safeguard

all

retail

marijuana

and

retail

3

marijuana

products

from

children

and

pets.

4

3.

The

division

shall

review

and

update

the

safety

5

information

materials

at

least

once

every

two

years

to

6

ensure

they

remain

accurate.

The

review

period

shall

include

7

soliciting

input

from

researchers

knowledgeable

about

the

8

risks

and

benefits

of

marijuana

and

an

opportunity

for

public

9

comment.

10

4.

In

order

to

ensure

that

individual

privacy

is

protected,

11

the

division

shall

not

require

a

consumer

to

provide

a

12

retail

marijuana

store

with

personal

information

other

than

13

government-issued

identification

to

determine

the

consumer’s

14

age,

and

a

retail

marijuana

store

shall

not

be

required

to

15

acquire

and

record

personal

information

about

consumers.

16

Sec.

39.

NEW

SECTION

.

124F.22

Marijuana

use

by

minors

——

17

prohibited.

18

Nothing

in

this

subchapter

allows

the

transfer

of

marijuana,

19

with

or

without

remuneration,

to

a

person

under

the

age

of

20

twenty-one

years,

or

the

use

of

marijuana

by

a

person

under

the

21

age

of

twenty-one

years.

22

Sec.

40.

NEW

SECTION

.

124F.23

Private

property

and

tenant

23

rights.

24

1.

Except

as

provided

in

this

section,

the

provisions

of

25

this

subchapter

do

not

require

any

person,

corporation,

or

any

26

other

entity

that

occupies,

owns,

or

controls

a

property

to

27

allow

the

consumption,

cultivation,

display,

sale,

or

transfer

28

of

marijuana

on

or

in

that

property.

29

2.

a.

Except

as

provided

in

this

section,

a

landlord

30

or

property

manager

shall

not

refuse

to

rent

to

a

tenant

31

or

otherwise

discriminate

against

a

tenant

based

on

a

past

32

conviction

for

a

marijuana

offense

that

would

have

been

legal

33

under

this

chapter.

34

b.

Except

as

provided

in

this

section,

in

the

case

of

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the

rental

of

a

residential

dwelling,

a

landlord

or

property

1

manager

shall

not

prohibit

the

possession

of

retail

marijuana

2

or

medical

cannabis,

as

defined

in

section

124E.2,

or

the

3

consumption

of

retail

marijuana

or

medical

cannabis,

as

defined

4

in

section

124E.2,

by

nonsmoking

means.

5

c.

The

limitations

in

this

subsection

do

not

apply

in

any

6

of

the

following

circumstances:

7

(1)

The

tenant

is

a

roomer

who

is

not

leasing

the

entire

8

residential

dwelling.

9

(2)

The

residence

is

incidental

to

detention

or

the

10

provision

of

medical,

geriatric,

educational,

counseling,

11

religious,

or

similar

services.

12

(3)

The

residence

is

a

transitional

housing

or

sober

living

13

facility.

14

(4)

Failing

to

prohibit

marijuana

possession

or

consumption

15

would

violate

federal

law

or

regulations

or

cause

a

landlord

16

or

property

manager

to

lose

a

monetary

or

licensing-related

17

benefit

under

federal

law

or

regulations.

18

d.

After

a

warning,

a

landlord

or

property

manager

may

take

19

action

against

a

tenant

if

the

tenant’s

use

of

marijuana

or

20

medical

cannabis,

as

defined

in

section

124E.2,

creates

an

21

odor

that

interferes

with

a

person’s

peaceful

enjoyment

of

the

22

person’s

home

or

property.

23

Sec.

41.

NEW

SECTION

.

124F.24

Apportionment

of

revenue.

24

Revenues

generated

by

the

marijuana

excise

tax

shall

be

25

deposited

as

follows:

26

1.

Thirty-five

percent

in

the

community

reinvestment

fund

27

created

pursuant

to

section

124F.25.

28

2.

Thirty-two

and

one-half

percent

in

the

mental

health

29

services

and

substance

use

disorder

prevention

fund

created

30

pursuant

to

section

124F.26.

31

3.

Thirty-two

and

one-half

percent

in

the

local

public

32

safety

fund

created

pursuant

to

section

124F.27.

33

Sec.

42.

NEW

SECTION

.

124F.25

Community

reinvestment

fund.

34

1.

A

community

reinvestment

fund

is

created

under

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the

control

of

the

division.

Moneys

in

the

fund

shall

be

1

appropriated

by

the

general

assembly

as

provided

in

subsection

2

2.

3

2.

Moneys

in

the

community

reinvestment

fund

shall

4

be

appropriated

exclusively

for

the

purpose

of

funding

5

scholarships

for

Iowa

students

for

two

years

of

postsecondary

6

education

at

Iowa

schools.

7

3.

Notwithstanding

section

12C.7,

subsection

2,

interest

8

or

earnings

on

moneys

deposited

in

the

community

reinvestment

9

fund

shall

be

credited

to

the

community

reinvestment

fund.

10

Notwithstanding

section

8.33,

moneys

credited

to

the

community

11

reinvestment

fund

shall

not

revert

at

the

close

of

a

fiscal

12

year.

13

Sec.

43.

NEW

SECTION

.

124F.26

Mental

health

services

and

14

substance

use

disorder

prevention

fund.

15

1.

A

mental

health

services

and

substance

use

disorder

16

prevention

fund

is

created

under

the

control

of

the

division.

17

Moneys

in

the

fund

shall

be

appropriated

by

the

general

18

assembly

as

provided

in

subsection

2.

19

2.

Moneys

in

the

mental

health

services

and

substance

use

20

disorder

prevention

fund

shall

be

appropriated

exclusively

for

21

the

purposes

of

providing

mental

health

services

and

preventing

22

substance

use

disorders.

23

3.

Notwithstanding

section

12C.7,

subsection

2,

interest

or

24

earnings

on

moneys

deposited

in

the

mental

health

services

and

25

substance

use

disorder

prevention

fund

shall

be

credited

to

the

26

mental

health

services

and

substance

use

disorder

prevention

27

fund.

Notwithstanding

section

8.33,

moneys

credited

to

the

28

mental

health

services

and

substance

use

disorder

prevention

29

fund

shall

not

revert

at

the

close

of

a

fiscal

year.

30

Sec.

44.

NEW

SECTION

.

124F.27

Local

public

safety

fund.

31

1.

A

local

public

safety

fund

is

created

under

the

control

32

of

the

division.

Moneys

in

the

fund

shall

be

appropriated

by

33

the

general

assembly

as

provided

in

subsection

2.

34

2.

Moneys

in

the

local

public

safety

fund

shall

be

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appropriated

exclusively

for

the

purposes

of

supporting

local

1

law

enforcement

personnel,

fire

department

personnel,

and

2

emergency

medical

personnel

in

municipalities.

3

3.

Notwithstanding

section

12C.7,

subsection

2,

interest

4

or

earnings

on

moneys

deposited

in

the

local

public

safety

5

fund

shall

be

credited

to

the

local

public

safety

fund.

6

Notwithstanding

section

8.33,

moneys

credited

to

the

local

7

public

safety

fund

shall

not

revert

at

the

close

of

a

fiscal

8

year.

9

Sec.

45.

NEW

SECTION

.

332.1

Definitions.

10

1.

“Department”

means

the

department

of

revenue.

11

2.

“Director”

means

the

director

of

the

department

of

12

revenue.

13

3.

“Retail

marijuana”

means

the

same

as

defined

in

section

14

124F.4.

15

4.

“Retail

marijuana

store”

means

the

same

as

defined

in

16

section

124F.4.

17

5.

“Retail

sale”

means

the

same

as

defined

in

section

423.1.

18

6.

“Surcharge”

means

a

retail

marijuana

surcharge

imposed

19

pursuant

to

this

chapter.

20

Sec.

46.

NEW

SECTION

.

332.2

Retail

marijuana

surcharge.

21

1.

A

surcharge

may

be

imposed,

in

accordance

with

the

22

provisions

of

this

section,

by

ordinance

of

the

board

of

23

supervisors

of

a

county

that

has

not

prohibited

the

sale

of

24

retail

marijuana.

The

surcharge

shall

be

imposed

at

a

rate

of

25

one

percent

upon

the

retail

sales

price

of

retail

marijuana.

26

2.

The

surcharge

shall

be

in

addition

to

the

state

sales

tax

27

imposed

pursuant

to

chapter

423,

subchapter

II,

and

the

local

28

sales

and

services

tax

imposed

pursuant

to

chapter

423B.

29

3.

a.

Within

ten

days

of

the

passage

of

an

ordinance

30

imposing

a

surcharge,

the

county

auditor

shall

give

written

31

notice

to

the

director

by

sending

a

copy

of

the

ordinance

to

32

the

director.

33

b.

A

surcharge

shall

be

imposed

either

January

1

or

July

1

34

following

the

notification

of

the

director

but

not

sooner

than

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ninety

days

following

the

passage

of

the

ordinance

imposing

the

1

surcharge

and

not

sooner

than

sixty

days

following

notice

to

2

sellers,

as

defined

in

section

423.1.

3

c.

A

surcharge

shall

be

repealed

only

on

June

30

or

December

4

31

but

not

sooner

than

ninety

days

following

repeal

of

the

5

ordinance.

At

least

forty

days

before

the

repeal

of

the

6

surcharge,

the

board

of

supervisors

shall

provide

notice

of

the

7

action

by

certified

mail

to

the

director

of

revenue.

8

4.

Upon

the

remittance

of

the

revenues

from

the

state

9

surcharge

revenue

fund

to

each

county

that

has

imposed

a

retail

10

marijuana

surcharge

under

section

332.4,

the

revenues

shall

be

11

deposited

into

the

general

fund

of

the

county.

12

Sec.

47.

NEW

SECTION

.

332.3

Administration

of

surcharge.

13

1.

The

director

shall

administer

the

surcharge

imposed

14

pursuant

to

this

chapter

as

nearly

as

possible

in

conjunction

15

with

the

administration

of

state

sales

tax

laws.

The

director

16

shall

provide

appropriate

forms,

or

provide

space

on

the

17

regular

state

tax

forms,

for

reporting

surcharge

liability.

18

2.

a.

Section

422.25,

subsection

4,

sections

422.30,

19

422.67,

and

422.68,

section

422.69,

subsection

1,

sections

20

422.70,

422.71,

422.72,

422.74,

and

422.75,

section

423.14,

21

subsection

1,

and

sections

423.23,

423.24,

423.25,

423.31,

22

423.33,

423.35,

423.37

through

423.42,

and

423.47,

consistent

23

with

the

provisions

of

this

chapter,

apply

with

respect

to

24

the

surcharge

authorized

under

this

chapter,

in

the

same

25

manner

and

with

the

same

effect

as

retail

sales

taxes

within

26

the

meaning

of

those

statutes.

The

director

may

require

all

27

persons

who

are

engaged

in

the

business

of

deriving

any

sales

28

price

subject

to

a

surcharge

under

this

chapter

to

register

29

with

the

department.

All

surcharges

collected

under

this

30

chapter

are

deemed

to

be

held

in

trust

for

the

state

of

Iowa

and

31

the

counties

imposing

the

surcharges.

County

officials

shall

32

confer

with

the

director

of

revenue

for

assistance

in

drafting

33

the

ordinance

imposing

the

surcharge.

A

certified

copy

of

the

34

ordinance

shall

be

filed

with

the

director

as

soon

as

possible

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after

passage.

1

b.

Frequency

of

deposits

and

quarterly

reports

of

the

2

surcharge

with

the

department

of

revenue

are

governed

by

the

3

provisions

in

section

423.31.

Local

surcharge

collections

4

shall

not

be

included

in

computation

of

the

total

tax

to

5

determine

frequency

of

filing

under

section

423.31.

6

3.

a.

The

director,

in

consultation

with

county

officials,

7

shall

collect

and

account

for

the

surcharge.

The

director

8

shall

certify

each

quarter

the

amount

of

the

surcharge

receipts

9

and

any

interest

and

penalties

to

be

credited

to

the

county

10

account

in

the

state

surcharge

revenue

fund

established

in

11

section

332.4.

County

authorities

shall

not

require

any

permit

12

not

required

by

the

director

of

revenue.

13

b.

All

surcharge

revenues

and

interest

and

penalties

14

received

or

refunded

one

hundred

eighty

days

or

more

after

15

the

date

on

which

the

county

repeals

the

surcharge

shall

be

16

deposited

in

or

withdrawn

from

the

general

fund

of

the

state.

17

4.

Each

county

that

has

imposed

a

retail

marijuana

surcharge

18

under

this

chapter

shall

assist

the

department

in

identifying

19

new

establishments

required

to

impose

the

surcharge

in

the

20

county.

This

process

shall

be

ongoing

until

the

surcharge

is

21

repealed.

22

Sec.

48.

NEW

SECTION

.

332.4

State

surcharge

revenue

fund

23

——

county

accounts.

24

1.

A

state

surcharge

revenue

fund

is

established

in

the

25

state

treasury

under

the

control

of

the

department

consisting

26

of

the

surcharge

revenues

collected

within

each

county

and

27

deposited

in

the

fund

pursuant

to

section

332.3.

Revenues

28

deposited

in

the

fund

are

appropriated

to

the

department

for

29

the

purposes

of

this

section.

30

2.

A

county

account

is

created

within

the

fund

for

each

31

county

imposing

a

retail

marijuana

surcharge

under

this

32

chapter.

33

3.

The

department

shall

deposit

the

revenues

described

in

34

subsection

1

that

were

collected

in

a

quarter

beginning

on

or

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after

the

imposition

of

the

surcharge

into

the

appropriate

1

county

account

in

the

fund.

2

4.

All

revenues

in

each

county

account

within

the

fund

3

shall

be

remitted

quarterly

by

the

department

to

the

county

4

that

imposed

the

retail

marijuana

surcharge

for

deposit

in

the

5

general

fund

of

the

county.

6

5.

The

department

shall

adopt

rules

pursuant

to

chapter

17A

7

necessary

to

administer

the

department’s

responsibilities

under

8

this

chapter.

9

Sec.

49.

NEW

SECTION

.

453B.19

Retail

marijuana.

10

This

chapter

shall

not

apply

to

retail

marijuana

or

retail

11

marijuana

products

produced

or

sold

pursuant

to

chapter

124F.

12

DIVISION

III

13

EFFECTIVE

DATE

14

Sec.

50.

EFFECTIVE

DATE.

This

Act,

being

deemed

of

15

immediate

importance,

takes

effect

upon

enactment,

except

that

16

the

division

of

the

department

of

revenue

responsible

for

17

issuing

alcohol

licenses

shall

not

issue

a

license

to

operate

a

18

retail

marijuana

establishment

prior

to

January

1,

2027.

19

DIVISION

IV

20

CODE

EDITOR

DIRECTIVE

21

Sec.

51.

CODE

EDITOR

DIRECTIVE

——

SUBCHAPTER

DESIGNATIONS.

22

1.

The

Code

editor

is

directed

to

create

two

new

subchapters

23

in

chapter

124F

as

follows:

24

a.

Subchapter

I

shall

be

entitled

“CRIMINAL

PENALTIES”

and

25

include

sections

124F.1

through

124F.3.

26

b.

Subchapter

II

shall

be

entitled

“RETAIL

MARIJUANA”

and

27

include

sections

124F.4

through

124F.27.

28

2.

The

Code

editor

may

modify

subchapter

titles

if

necessary

29

and

is

directed

to

correct

internal

references

in

the

Code

as

30

necessary

due

to

enactment

of

this

section.

31

EXPLANATION

32

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

33

the

explanation’s

substance

by

the

members

of

the

general

assembly.

34

This

bill

relates

to

retail

marijuana.

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DIVISION

I

——

MARIJUANA

——

CRIMINAL

PENALTIES.

The

1

bill

modifies

criminal

penalties

relating

to

marijuana

by

2

eliminating

and

modifying

certain

criminal

provisions

in

3

Code

chapter

124

(uniform

controlled

substances

Act),

and

4

transferring

certain

criminal

provisions

from

Code

chapter

124

5

to

new

Code

chapter

124F.

6

MANUFACTURE,

DELIVERY,

OR

POSSESSION

WITH

INTENT

TO

DELIVER

7

MARIJUANA.

The

bill

provides

that

an

unauthorized

person

8

commits

a

class

“C”

felony

punishable

by

confinement

for

9

no

more

than

10

years

and

a

fine

of

at

least

$1,370

but

not

10

more

than

$13,660

if

the

person

violates

new

Code

section

11

124F.2(1)(a)

and

the

controlled

substance

involves

more

than

12

50

kilograms

of

marijuana.

Currently,

such

a

person

commits

13

a

class

“B”

felony

punishable

by

confinement

of

no

more

than

14

50

years

if

the

controlled

substance

involves

more

than

1,000

15

kilograms

of

a

mixture

or

substance

containing

a

detectable

16

amount

of

marijuana,

or

a

class

“B”

felony

punishable

by

17

confinement

of

no

more

than

25

years

if

the

controlled

18

substance

involves

more

than

100

kilograms

of

marijuana

but

not

19

more

than

1,000

kilograms.

20

The

bill

provides

that

an

unauthorized

person

commits

a

21

class

“D”

felony

if

the

person

violates

new

Code

section

22

124F.2(1)(a)

and

the

controlled

substance

involves

more

than

23

2

kilograms

of

marijuana

but

not

more

than

50

kilograms.

A

24

class

“D”

felony

is

punishable

by

confinement

for

no

more

than

25

five

years

and

a

fine

of

at

least

$1,025

but

not

more

than

26

$10,245.

Currently,

such

a

person

commits

a

class

“C”

felony

27

if

the

controlled

substance

involves

more

than

50

kilograms

of

28

marijuana

but

not

more

than

100

kilograms.

29

The

bill

provides

that

an

unauthorized

person

commits

an

30

aggravated

misdemeanor

if

the

person

violates

new

Code

section

31

124F.2(1)(a)

and

the

controlled

substance

involves

more

than

32

12

ounces

of

marijuana

but

not

more

than

2

kilograms.

An

33

aggravated

misdemeanor

is

punishable

by

confinement

for

no

more

34

than

two

years

and

a

fine

of

at

least

$855

but

not

more

than

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$8,540.

Currently,

such

a

person

commits

a

class

“D”

felony

1

if

the

controlled

substance

involves

50

kilograms

or

less

of

2

marijuana.

3

The

bill

provides

that

an

unauthorized

person

commits

a

4

serious

misdemeanor

if

the

person

violates

new

Code

section

5

124F.2(1)(a)

and

the

controlled

substance

involves

more

than

6

4

ounces

of

marijuana

but

not

more

than

12

ounces.

A

serious

7

misdemeanor

is

punishable

by

confinement

for

no

more

than

one

8

year

and

a

fine

of

at

least

$430

but

not

more

than

$2,560.

9

Currently,

such

a

person

commits

a

class

“D”

felony.

10

The

bill

provides

that

an

unauthorized

person

commits

a

11

simple

misdemeanor

if

the

person

violates

new

Code

section

12

124F.2(1)(a)

and

the

controlled

substance

involves

4

ounces

or

13

less

of

marijuana

except

as

otherwise

provided

in

the

bill.

A

14

simple

misdemeanor

is

punishable

by

confinement

for

no

more

15

than

30

days

and

a

fine

of

at

least

$105

but

not

more

than

$855.

16

Currently,

such

a

person

commits

a

class

“D”

felony.

A

person

17

who

is

18

years

of

age

or

older

who

unlawfully

manufactures

18

with

the

intent

to

distribute,

distributes,

or

possesses

with

19

the

intent

to

distribute

marijuana

to

another

person

who

is

20

18

years

of

age

or

older

in

or

on,

or

within

1,000

feet

of,

21

the

real

property

comprising

a

public

or

private

elementary

or

22

secondary

school,

public

park,

public

swimming

pool,

public

23

recreation

center,

or

on

a

marked

school

bus,

may

be

sentenced

24

up

to

an

additional

term

of

confinement

of

five

years.

25

POSSESSION

OF

MARIJUANA.

The

bill

provides

that

if

a

person

26

unlawfully

possesses

more

than

6

ounces

of

marijuana

but

not

27

more

than

12

ounces,

the

person

commits

a

serious

misdemeanor.

28

The

bill

provides

that

if

a

person

unlawfully

possesses

more

29

than

one-half

ounce

of

marijuana

but

not

more

than

6

ounces,

30

the

person

commits

a

simple

misdemeanor.

31

The

bill

provides

that

if

a

person

21

years

of

age

or

older

32

possesses

one-half

ounce

or

less

of

marijuana,

the

person

does

33

not

commit

a

criminal

offense

but

shall

be

assessed

a

civil

34

penalty

in

the

amount

of

$100.

If

the

person

is

under

21

years

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of

age,

the

person

must

complete

10

hours

of

unpaid

community

1

service

and

a

substance

abuse

program,

and

inform

the

person’s

2

parents

or

legal

guardians.

The

bill

provides

that

any

records

3

relating

to

the

civil

penalty

shall

not

be

displayed

for

public

4

viewing

on

the

Iowa

court

information

system

and

such

records

5

shall

not

be

kept

in

the

criminal

history

files

maintained

by

6

the

department

of

public

safety.

7

RETAIL

MARIJUANA

——

POSSESSION

LIMITS.

The

bill

establishes

8

possession

limits

for

retail

marijuana,

defined

in

the

bill.

9

The

bill

prohibits

a

person

21

years

of

age

or

older

from

10

possessing

more

than

5

ounces

of

marijuana

flower,

or

500

11

milligrams

of

tetrahydrocannabinol

contained

in

a

product

12

infused

with

marijuana.

A

person

in

possession

of

retail

13

marijuana

in

excess

of

amounts

equivalent

to

the

amounts

14

specified

in

the

bill

for

the

possession

of

marijuana

is

15

subject

to

prosecution

for

a

simple

or

serious

misdemeanor

or

16

a

civil

penalty.

A

retail

marijuana

store

that

sells

retail

17

marijuana

in

excess

of

the

amounts

allowed

in

the

bill

is

18

subject

to

a

fine

or

other

discipline

imposed

by

the

division.

19

Currently,

if

a

person

unlawfully

possesses

marijuana,

the

20

person

shall

be

punished

by

imprisonment

in

the

county

jail

for

21

not

more

than

six

months

or

by

a

fine

of

not

more

than

$1,000,

22

or

by

both

for

a

first

offense.

If

the

person

has

previously

23

been

convicted

of

marijuana

possession,

the

person

commits

a

24

serious

misdemeanor

under

current

law,

and

if

the

person

has

25

been

convicted

of

marijuana

possession

two

or

more

times,

the

26

person

commits

an

aggravated

misdemeanor.

27

JUVENILE

MARIJUANA

OFFENSES.

The

bill

specifies

that

the

28

juvenile

court

shall

have

exclusive

original

jurisdiction

in

a

29

proceeding

concerning

a

minor

who

is

alleged

to

have

committed

30

a

violation

of

the

bill.

31

GATHERINGS

WHERE

CONTROLLED

SUBSTANCES

UNLAWFULLY

USED.

32

The

bill

strikes

a

provision

making

it

a

serious

misdemeanor

33

for

a

person

to

sponsor,

promote,

or

aid

in

the

sponsoring

34

or

promoting

of

a

meeting

or

gathering

with

the

knowledge

or

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intent

that

marijuana

be

distributed,

used,

or

possessed

at

the

1

meeting

or

gathering

in

violation

of

Code

chapter

124.

2

ACCOMMODATION

OFFENSE.

The

bill

strikes

a

provision

3

allowing

a

prosecution

for

unlawful

delivery

or

possession

with

4

intent

to

deliver

marijuana,

if

the

prosecution

proves

that

5

the

defendant

delivered

or

possessed

with

intent

to

deliver

6

one-half

ounce

or

less

of

marijuana

which

was

not

offered

for

7

sale,

the

defendant

is

guilty

of

an

accommodation

offense

8

and

rather

than

being

sentenced

for

a

class

“D”

felony

under

9

Code

section

124.401(1)(d),

the

person

is

sentenced

for

a

10

misdemeanor

in

violation

of

Code

section

124.401(5).

The

bill

11

makes

conforming

changes

to

Code

sections

124.401G

(Iowa

hemp

12

Act)

and

124.413

(mandatory

minimum

sentences

——

controlled

13

substances).

14

SECOND

OR

SUBSEQUENT

OFFENSES.

Currently,

a

person

15

convicted

of

a

second

or

subsequent

offense

under

Code

chapter

16

124

may

be

punished

by

imprisonment

for

a

period

not

to

exceed

17

three

times

the

term

otherwise

authorized,

or

fined

not

more

18

than

three

times

the

amount

otherwise

authorized.

The

bill

19

strikes

the

provision

that

allows

for

the

use

of

a

previous

20

marijuana

conviction

in

determining

if

a

person

has

been

21

convicted

of

a

second

or

subsequent

offense

under

Code

chapter

22

124.

23

MARIJUANA

IN

MOTOR

VEHICLES.

The

bill

prohibits

a

driver

24

of

a

motor

vehicle

upon

a

public

street

or

highway

from

using

25

marijuana

in

the

passenger

area

of

the

motor

vehicle.

The

bill

26

also

prohibits

a

driver

or

passenger

of

or

in

a

motor

vehicle

27

upon

a

public

street

or

highway

from

possessing

marijuana

in

28

the

passenger

area

of

a

motor

vehicle

except

in

a

sealed,

odor

29

proof,

child

resistant

container.

The

bill

defines

“passenger

30

area”

as

the

area

designed

to

seat

the

driver

and

passengers

31

while

the

motor

vehicle

is

in

operation

and

any

area

that

is

32

readily

accessible

to

the

driver

or

a

passenger

while

in

their

33

seating

positions,

including

the

glove

compartment.

A

person

34

who

knowingly

violates

this

provision

of

the

bill

is

guilty

of

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a

simple

misdemeanor.

A

simple

misdemeanor

is

punishable

by

1

confinement

for

no

more

than

30

days

and

a

fine

of

at

least

$105

2

but

not

more

than

$855.

3

The

bill

prohibits

a

person

from

operating

a

motor

4

vehicle

with

50

or

more

nanograms

of

tetrahydrocannabinol

5

in

the

person,

as

measured

in

the

person’s

blood.

A

person

6

who

operates

a

motor

vehicle

with

50

or

more

nanograms

of

7

tetrahydrocannabinol

in

the

person

shall

have

that

person’s

8

driver’s

license

suspended

for

180

days

for

a

first

offense

and

9

one

year

for

each

subsequent

offense.

A

person

who

refuses

10

to

submit

to

chemical

testing

for

tetrahydrocannabinol

shall

11

have

the

person’s

driver’s

license

suspended

for

one

year

for

a

12

first

offense,

and

two

years

for

each

subsequent

offense.

13

EXPUNGEMENT.

The

bill

provides

that

upon

application

by

a

14

defendant

convicted

of

a

felony

offense

under

Code

chapter

124

15

(controlled

substances)

related

to

the

possession

or

transfer

16

of

marijuana

prior

to

January

1,

2027,

the

court

shall

enter

an

17

order

expunging

the

record

of

such

a

criminal

case.

A

person

18

may

only

seek

an

expungement

once,

but

an

application

may

19

request

the

expungement

of

multiple

nonviolent

offenses

if

the

20

offenses

arose

from

the

same

transaction

or

occurrence.

Under

21

current

law,

misdemeanor

marijuana

offenses

may

be

expunged

22

pursuant

to

Code

section

901C.3

(misdemeanor

expungement).

The

23

bill

requires

each

court,

on

the

effective

date

of

the

bill,

to

24

review

its

records

to

identify

persons

convicted

of

marijuana

25

offenses

that

would

have

been

legal

under

the

bill

and

to

26

automatically

expunge

each

such

conviction.

27

DIVISION

II

——

RETAIL

MARIJUANA.

Division

II

of

the

28

bill

relates

to

the

regulation

of

retail

marijuana

in

29

Iowa.

The

bill

grants

the

division

of

the

department

of

30

revenue

responsible

for

issuing

alcohol

licenses

(division)

31

the

authority

to

regulate

the

cultivation,

production,

32

transportation,

testing,

and

sale

of

retail

marijuana

and

33

retail

marijuana

products,

including

by

issuing

appropriate

34

licenses

and

promulgating

rules.

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The

bill

requires

the

division

to

transfer

half

of

any

1

application

fee

collected

to

the

local

jurisdiction

in

which

2

the

retail

marijuana

establishment

will

be

located.

The

3

bill

allows

local

jurisdictions

to

impose

limitations

on

the

4

operation

of

retail

marijuana

establishments,

including

by

5

prohibiting

their

operation.

6

The

bill

directs

the

division

to

develop

and

maintain

a

7

seed-to-sale

tracking

system

to

track

retail

marijuana

from

the

8

seed

or

immature

plant

stage

until

it

is

sold

to

a

consumer

at

a

9

retail

marijuana

establishment.

10

The

bill

requires

the

division

to

prioritize

applicants

11

for

state

licenses

who

currently

hold

a

license

pursuant

to

12

Code

chapter

124E

(medical

cannabidiol)

or

that

are

businesses

13

majority-owned

by

women,

citizens

or

permanent

legal

residents

14

of

Iowa,

or

disabled

veterans.

The

bill

requires

the

division

15

to

issue

licenses

to

businesses

that

are

majority-owned

by

16

persons

who

are

racial

minorities

in

a

proportion

that

meets

or

17

exceeds

the

percentage

of

persons

in

this

state

who

are

racial

18

minorities

according

to

the

most

recent

federal

decennial

19

census.

20

The

bill

prohibits

the

owner

of

a

retail

marijuana

21

establishment

from

interfering

with

activities

of

employees

22

relating

to

labor

organizations.

23

LOCAL

LICENSES.

The

bill

requires

the

division

to

transmit

24

any

application

for

a

retail

marijuana

establishment

it

25

receives

to

the

local

jurisdiction

where

the

establishment

26

will

be

located

within

seven

days

of

receipt

unless

the

27

local

jurisdiction

has

prohibited

the

operation

of

retail

28

marijuana

establishments.

The

local

jurisdiction

must

then

29

inform

the

division

whether

the

application

complies

with

30

any

local

restrictions

on

the

operation

of

retail

marijuana

31

establishments

it

may

have

imposed.

The

bill

requires

a

person

32

to

receive

approval

from

both

the

division

and

the

local

33

jurisdiction

before

operating

a

retail

marijuana

establishment.

34

A

person

whose

application

for

a

license

is

denied

is

entitled

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to

a

hearing

and

judicial

review

pursuant

to

Code

chapter

17A.

1

RETAIL

MARIJUANA

LICENSES.

Ninety

days

prior

to

the

2

expiration

date

of

an

existing

license,

the

division

shall

3

notify

the

licensee

of

the

expiration

date

by

first

class

4

mail

at

the

licensee’s

address

of

record

with

the

division.

5

A

licensee

may

apply

for

the

renewal

of

an

existing

license

6

to

the

division

not

less

than

30

days

prior

to

the

date

of

7

expiration.

8

RETAIL

MARIJUANA

STORES.

The

bill

allows

a

retail

marijuana

9

store

to

purchase

retail

marijuana

from

a

retail

marijuana

10

cultivation

facility.

A

retail

marijuana

store

may

also

11

sell

prepackaged

and

labeled

retail

marijuana

products.

A

12

retail

marijuana

store

must

track

all

of

its

retail

marijuana

13

and

retail

marijuana

products

from

the

point

that

they

are

14

transferred

to

the

retail

marijuana

store

to

the

point

of

15

sale.

The

bill

prohibits

a

retail

marijuana

store

from

selling

16

more

than

one

ounce

of

retail

marijuana

or

its

equivalent

17

to

a

person

in

a

single

transaction,

excluding

nonedible,

18

nonpsychoactive

retail

marijuana

products.

19

Prior

to

initiating

a

sale,

the

bill

requires

a

retail

20

marijuana

store

employee

to

verify

that

purchaser

has

a

valid

21

identification

card

showing

that

the

person

is

21

years

of

age

22

or

older.

If

a

purchaser

presents

a

retail

marijuana

store

23

employee

with

fraudulent

proof

of

age,

any

action

taken

in

24

reliance

on

that

proof

of

age

shall

not

be

grounds

for

the

25

revocation

or

suspension

of

a

license.

26

The

bill

allows

a

retail

marijuana

store

to

provide

to

the

27

state

hygienic

laboratory

a

sample

of

its

products

for

testing

28

and

research

purposes.

The

retail

marijuana

store

shall

29

maintain

a

record

of

what

was

provided

to

the

laboratory

and

30

the

results

of

the

testing.

31

The

bill

prohibits

a

retail

marijuana

store

from

selling

32

any

products

other

than

retail

marijuana,

retail

marijuana

33

products,

marijuana

accessories,

nonconsumable

products

such

as

34

apparel,

and

marijuana

products

such

as

childproof

packaging

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containers.

1

The

bill

prohibits

the

division

from

issuing

more

than

one

2

retail

marijuana

store

license

per

county,

except

that

the

3

division

may,

upon

receipt

of

a

petition,

issue

one

additional

4

retail

marijuana

store

license

per

100,000

population

in

the

5

county.

The

bill

allows

a

location

licensed

as

a

retail

6

marijuana

store

to

also

be

licensed

as

a

medical

cannabis

7

dispensary,

pursuant

to

rules

adopted

by

the

division

in

8

consultation

with

the

Iowa

department

of

public

health.

9

RETAIL

MARIJUANA

CULTIVATION.

The

bill

allows

the

division

10

to

issue

retail

marijuana

cultivation

facility

licenses

11

to

persons

who

cultivate

retail

marijuana

for

sale

and

12

distribution

to

retail

marijuana

stores,

manufacturers,

or

13

other

cultivation

facilities.

The

bill

requires

a

retail

14

marijuana

cultivation

facility

to

remit

any

applicable

tax

due.

15

The

bill

also

requires

a

retail

marijuana

cultivation

facility

16

to

track

the

marijuana

it

cultivates

from

seed

or

immature

17

plant

to

wholesale

purchase.

18

RETAIL

MARIJUANA

PRODUCTS

MANUFACTURING

LICENSES.

The

19

bill

allows

the

division

to

issue

retail

marijuana

products

20

manufacturing

licenses

to

persons

who

manufacture

retail

21

marijuana

products.

The

bill

requires

a

retail

marijuana

22

products

manufacturer

to

track

all

of

its

retail

marijuana

from

23

the

point

it

is

either

transferred

from

its

retail

marijuana

24

cultivation

facility

or

the

point

when

it

is

delivered

to

the

25

retail

marijuana

products

manufacturer

from

a

retail

marijuana

26

cultivation

facility

to

the

point

of

transfer

to

a

retail

27

marijuana

store.

28

The

bill

requires

retail

marijuana

products

to

be

29

manufactured

and

prepared

in

a

facility

that

only

manufactures

30

retail

marijuana

products,

except

that

premises

may

be

shared

31

with

a

medical

cannabis-infused

products

manufacturer

so

long

32

as

a

virtual

or

physical

separation

of

inventory

is

maintained.

33

RETAIL

MARIJUANA

USE

——

PROTECTIONS.

The

bill

prohibits

34

the

state

and

its

political

subdivisions

from

taking

certain

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actions

against

a

person

on

the

basis

that

the

person

has

1

engaged

in

conduct

allowed

by

the

bill.

The

state

and

its

2

political

subdivisions

shall

not

prosecute

a

person,

deny

a

3

person

a

professional

license,

deny

a

person

a

benefit

or

4

entitlement,

deny

a

person

custody

or

visitation

of

a

child,

5

deny

a

person

employment

or

a

contract,

or

deny

a

person

6

medical

care

on

the

basis

that

the

person

has

engaged

in

7

conduct

allowed

by

the

bill.

The

bill

also

prohibits

the

8

state

or

a

political

subdivision

from

denying

employment

9

or

a

contract

to

a

person

on

the

basis

of

a

person’s

prior

10

conviction

of

a

nonviolent

marijuana

offense

that

does

not

11

involve

distribution

to

a

minor.

The

bill

excludes

engaging

12

in

conduct

allowed

by

the

bill

from

being

classified

as

a

13

violation

of

a

condition

of

parole,

probation,

or

pretrial

14

release

unless

there

is

a

specific

finding

that

the

conduct

15

could

create

a

danger

to

the

individual

or

another

person.

16

The

bill

does

not

prohibit

a

governmental

employer

from

17

disciplining

an

employee

or

contractor

for

ingesting

marijuana

18

at

work

or

working

while

under

the

influence

of

marijuana,

nor

19

does

it

prohibit

a

licensing

board

from

imposing

a

penalty

on

a

20

person

for

engaging

in

conduct

that

would

constitute

negligence

21

or

professional

malpractice.

The

protections

of

the

bill

do

22

not

apply

to

the

extent

that

they

conflict

with

a

governmental

23

employer’s

obligations

under

federal

law

or

would

disqualify

24

a

governmental

employer

from

a

monetary

or

licensing-related

25

benefit

under

federal

law.

26

FEES.

The

bill

allows

the

division

to

collect

and

charge

27

fees.

The

bill

sets

the

application

fee

for

a

person

applying

28

for

a

new

retail

marijuana

establishment

license

at

$5,000,

29

which

shall

be

divided

evenly

between

the

division

and

the

30

local

jurisdiction

where

the

license

is

proposed

to

be

issued.

31

The

bill

permits

a

local

jurisdiction

to

impose

operating

fees

32

on

retail

marijuana

establishments

to

which

it

has

granted

a

33

license.

34

LICENSE

DISCIPLINE.

The

bill

permits

the

division,

on

its

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own

motion

or

complaint,

and

after

investigation,

notice,

1

a

public

hearing,

and

opportunity

to

be

heard,

to

suspend

2

or

revoke

a

license

if

the

licensee

or

any

of

its

agents

or

3

employees

violate

a

provision

of

the

bill

or

a

rule

promulgated

4

by

the

division.

The

division

may

administer

oaths

and

issue

5

subpoenas

to

require

the

presence

of

persons

and

the

production

6

of

documents.

The

division

may

impose

discipline

pursuant

to

7

rules

and

Code

chapter

17A.

8

INSPECTION.

The

bill

requires

a

licensee

to

keep

a

complete

9

set

of

all

records

necessary

to

show

fully

the

business

10

transactions

of

the

licensee,

all

of

which

shall

be

open

at

all

11

times

during

business

hours

for

the

inspection

and

examination

12

by

the

division

or

its

duly

authorized

representatives.

13

The

bill

requires

the

licensed

premises

of

a

retail

14

marijuana

establishment,

including

any

places

of

storage

15

where

retail

marijuana

or

retail

marijuana

products

are

16

stored,

cultivated,

sold,

dispensed,

or

tested

to

be

subject

17

to

inspection

by

the

state

or

local

jurisdictions

and

their

18

investigators,

during

all

business

hours

and

other

times

19

of

apparent

activity,

for

the

purpose

of

inspection

or

20

investigation.

21

STATE

MARIJUANA

EXCISE

TAX.

The

bill

imposes

an

excise

tax

22

on

consumers

at

the

rate

of

10

percent

of

the

sale

price

on

23

each

sale

of

retail

marijuana.

The

tax

shall

be

paid

by

the

24

consumer

to

the

retail

marijuana

establishment

at

the

time

25

of

sale,

and

each

retail

marijuana

establishment

shall

remit

26

the

tax

collected

to

the

division

on

the

15th

day

of

each

27

month.

Revenues

generated

by

the

excise

tax

shall

be

deposited

28

in

the

community

reinvestment

fund,

mental

health

services

29

and

substance

use

disorder

prevention

fund,

and

local

public

30

safety

fund

created

in

the

bill.

Moneys

in

the

community

31

reinvestment

fund,

mental

health

services

and

substance

use

32

disorder

prevention

fund,

and

local

public

safety

fund

shall

be

33

appropriated

by

the

general

assembly

for

purposes

enumerated

34

in

the

bill.

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OCCUPATIONAL

LICENSING

PROTECTIONS.

The

bill

prohibits

a

1

professional

or

occupational

licensing

board

from

imposing

2

discipline

on

a

licensee

for

providing

services

related

to

3

retail

marijuana

establishments.

The

bill

also

prohibits

a

4

professional

or

occupational

licensing

board

from

denying

a

5

license

to

a

person

based

on

a

person’s

past

employment

with

a

6

retail

marijuana

establishment.

7

RULEMAKING.

The

bill

requires

the

division

to

adopt

rules

8

within

one

year

of

the

effective

date

of

the

bill

to

adopt

9

rules

for

the

implementation

of

the

bill.

The

rules

shall

10

not

prohibit

the

operation

of

retail

marijuana

establishments

11

or

make

the

operation

of

retail

marijuana

establishments

so

12

costly

as

to

be

impractical.

Required

rules

include

but

are

13

not

limited

to

rules

relating

to

applications,

fees,

licensure,

14

security

requirements,

labeling

requirements,

health

and

15

safety

requirements,

restrictions

on

advertising,

cultivation,

16

testing,

and

penalties.

The

division

shall

also

develop

and

17

regularly

update

safety

materials

to

be

distributed

upon

the

18

sale

of

retail

marijuana.

19

ACTS

PROHIBITED.

The

bill

does

not

allow

the

transfer

of

20

marijuana

to

a

person

under

21

years

of

age

or

the

possession

21

of

marijuana

by

a

person

under

21

years

of

age.

22

PROPERTY

RIGHTS.

The

bill

does

not

require

the

owner

of

23

a

property

to

allow

the

consumption,

cultivation,

display,

24

sale,

or

transfer

of

marijuana

at

that

property.

However,

in

25

the

case

of

a

residential

dwelling,

a

landlord

or

property

26

manager

shall

not

prohibit

the

possession

of

retail

marijuana

27

or

medical

cannabis

or

the

consumption

of

retail

marijuana

28

or

medical

cannabis

by

means

other

than

smoking

except

under

29

certain

circumstances.

The

bill

allows

a

landlord

to

take

30

action

against

a

tenant

after

a

warning

if

the

tenant’s

use

of

31

marijuana

creates

an

odor

that

interferes

with

the

peaceful

32

enjoyment

of

property

by

other

tenants.

The

bill

prohibits

33

a

landlord

from

discriminating

against

a

tenant

or

applicant

34

on

the

basis

of

a

past

conviction

of

a

marijuana

offense

that

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would

have

been

legal

under

the

bill.

1

LAW

ENFORCEMENT.

The

bill

prohibits

law

enforcement

2

agencies

from

expending

resources

on

the

investigation

of

or

3

arrest

for

activity

related

to

marijuana

that

is

in

violation

4

of

federal

law

if

the

officer

performing

the

investigation

5

or

arrest

has

reason

to

believe

that

the

activity

complies

6

with

the

requirements

of

the

bill.

The

bill

also

prohibits

7

an

agency

or

political

subdivision

of

the

state

from

taking

8

an

adverse

action

against

a

person

on

the

sole

basis

that

the

9

person

has

violated

a

federal

law

related

to

marijuana.

10

SURCHARGE.

The

bill

allows

a

county

that

has

not

prohibited

11

the

sale

of

retail

marijuana

to

impose

a

1

percent

surcharge

12

on

the

retail

sales

price

of

retail

marijuana.

The

surcharge

13

shall

be

administered

by

the

department

of

revenue

and

funds

14

collected

by

the

department

of

revenue

shall

be

remitted

to

15

the

county

on

a

quarterly

basis.

The

bill

includes

additional

16

provisions

regarding

the

implementation

and

operation

of

retail

17

marijuana

surcharges.

18

DIVISION

III

——

EFFECTIVE

DATE.

The

bill

takes

effect

19

upon

enactment,

except

that

the

division

of

the

department

of

20

revenue

responsible

for

issuing

alcohol

licenses

shall

not

21

issue

a

license

to

operate

a

retail

marijuana

establishment

22

prior

to

January

1,

2027.

23

DIVISION

IV

——

CODE

EDITOR

DIRECTIVE.

The

bill

directs

24

the

Code

editor

to

create

two

subchapters

in

new

Code

chapter

25

124F.

The

first

subchapter

shall

be

designated

“criminal

26

penalties”

and

the

second

subchapter

shall

be

designated

27

“retail

marijuana”.

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