Relating to marijuana, including the manufacture, delivery, and possession of marijuana and the licensure of retail marijuana, providing fees, including excise taxes, establishing a trust fund, and including penalties

2(1)(b) and the controlled substance involves more than kilograms of marijuana but not more than kilograms. Currently, such a person commits a class “C” felony if the controlled substance involves more than kilograms of marijuana but not more than 100 kilograms.2(1)(c) and the controlled substance involves more than ounces of marijuana but not more than kilograms. Currently, such a person commits a class “D” felony if the controlled substance involves kilograms or less of marijuana.2(1)(d) and the controlled substance involves more than ounces of marijuana but not more than ounces. Currently, such a person commits a class “D” felony.2(1)(e) and the controlled substance involves ounces or less of marijuana. Currently, such a person commits a class “D” felony. POSSESSION OF MARIJUANA. The bill provides that if a person unlawfully possesses more than ounces of marijuana, the person commits a class “D” felony. The bill provides that if a person unlawfully possesses more than ounces of marijuana but not more than ounces, the person commits an aggravated misdemeanor. The bill provides that if a person unlawfully possesses more than ounces of marijuana but not more than ounces, the person commits a serious misdemeanor. The bill provides that if a person years of age or older possesses more than ounce of marijuana but not more than ounces, the person does not commit a criminal offense but shall be assessed a civil penalty in the amount of $100. If the person is under years of age, the offense shall be punishable as a serious misdemeanor, which may be expunged after two years if the person does not commit additional criminal violations other than traffic offenses. The bill provides that any records relating to the civil penalty shall not be displayed for public viewing on the Iowa court information system and such records shall not be kept in the criminal history files maintained by the department of public safety. A person does not unlawfully possesses marijuana under the bill if the amount of marijuana possessed is one ounce or less. However, if the person is under years of age, the person commits a simple misdemeanor, which may be expunged after two years if the person does not commit additional criminal violations other than traffic offenses. Currently, if a person unlawfully possesses marijuana, the person shall be punished by imprisonment in the county jail for not more than six months or by a fine of not more than $1,000, or by both for a first offense. If the person has previously been convicted of marijuana possession, the person commits a serious misdemeanor under current law, and if the person has been convicted of marijuana possession two or more times, the person commits an aggravated misdemeanor. SMALL AMOUNTS OF MARIJUANA. If the amount of marijuana delivered or possessed with intent to deliver is one ounce or less and no remuneration was provided, the defendant shall not be prosecuted for a violation of the bill. MARIJUANA USE IN PUBLIC. The bill prohibits the consumption of marijuana in areas open and accessible to the public, including but not limited to public transportation facilities, sporting or music venues, parks, playgrounds, sidewalks and roads, outdoor cafes, or indoor but public locations. A person who violates this provision commits a simple misdemeanor punishable as a scheduled violation in the amount of $50 for a first offense and $100 for a second or subsequent offense. This violation may be expunged after two years if the person does not commit additional criminal violations other than traffic offenses. JUVENILE MARIJUANA OFFENSES. The bill specifies that the juvenile court shall have exclusive original jurisdiction in a proceeding concerning a minor who is alleged to have committed a violation of the bill. GATHERINGS WHERE CONTROLLED SUBSTANCES UNLAWFULLY USED. The bill strikes a provision making it a serious misdemeanor for a person to sponsor, promote, or aid in the sponsoring or promoting of a meeting or gathering with the knowledge or intent that marijuana be distributed, used, or possessed at the meeting or gathering in violation of Code chapter 124. ACCOMMODATION OFFENSE.401(5). SECOND OR SUBSEQUENT OFFENSES. Currently, a person convicted of a second or subsequent offense under Code chapter 124 may be punished by imprisonment for a period not to exceed three times the term otherwise authorized, or fined not more than three times the amount otherwise authorized. The bill strikes the provision that allows for the use of a previous marijuana conviction in determining if a person has been convicted of a second or subsequent offense under Code chapter 124. DIVISION II —— RETAIL MARIJUANA. Division II of the bill relates to the regulation of retail marijuana in Iowa. The bill grants the alcoholic beverages division of the department of commerce (division) the authority to regulate the cultivation, production, transportation, testing, and sale of retail marijuana and retail marijuana products, including by issuing appropriate licenses and promulgating rules. The bill requires the division to transfer half of any application fee collected to the local jurisdiction in which the retail marijuana establishment will be located and to deposit the other half in the marijuana cash fund under the control of the division. The bill allows local jurisdictions to impose limitations on the operation of retail marijuana establishments, including by prohibiting their operation. The bill directs the division to develop and maintain a seed-to-sale tracking system to track retail marijuana from the seed or immature plant stage until it is sold to a consumer at a retail marijuana establishment. LOCAL LICENSES. The bill requires the division to transmit any application for a retail marijuana establishment it receives to the local jurisdiction where the establishment will be located within seven days of receipt unless the local jurisdiction has prohibited the operation of retail marijuana establishments. The local jurisdiction must then inform the division whether the application complies with any local restrictions on the operation of retail marijuana establishments it may have imposed. The bill requires a person to receive approval from both the division and the local jurisdiction before operating a retail marijuana establishment. A person whose application for a license is denied is entitled to a hearing and judicial review pursuant to Code chapter 17A. LICENSES. Ninety days prior to the expiration date of an existing license, the division shall notify the licensee of the expiration date by first class mail at the licensee’s address of record with the division. A licensee may apply for the renewal of an existing license to the division not less than days prior to the date of expiration. RETAIL MARIJUANA STORES. The bill allows a retail marijuana store to purchase retail marijuana from a retail marijuana cultivation facility. A retail marijuana store may also sell prepackaged and labeled retail marijuana products. A retail marijuana store must track all of its retail marijuana and retail marijuana products from the point that they are transferred to the retail marijuana store to the point of sale. The bill prohibits a retail marijuana store from selling more than one ounce of retail marijuana or its equivalent in a single transaction to a person, excluding nonedible, nonpsychoactive retail marijuana products. Prior to initiating a sale, the bill requires a retail marijuana store employee to verify that that purchaser has a valid identification card showing that the person is years of age or older. If a purchaser presents a retail marijuana store employee with fraudulent proof of age, any action taken in reliance on that proof of age shall not be grounds for the revocation or suspension of a license. The bill allows a retail marijuana store to provide to the state hygienic laboratory a sample of its products for testing and research purposes. The retail marijuana store shall maintain a record of what was provided to the laboratory and the results of the testing. The bill prohibits a retail marijuana store from selling any products other than retail marijuana, retail marijuana products, marijuana accessories, nonconsumable products such as apparel, and marijuana products such as childproof packaging containers. RETAIL MARIJUANA CULTIVATION. The bill allows the division to issue up to retail marijuana cultivation facility licenses to persons who cultivate retail marijuana for sale and distribution to retail marijuana stores, manufacturers, or other cultivation facilities. The bill requires a retail marijuana cultivation facility to remit any applicable tax due. The bill also requires a retail marijuana cultivation facility to track the marijuana it cultivates from seed or immature plant to wholesale purchase. RETAIL MARIJUANA PRODUCTS MANUFACTURING. The bill allows the division to issue up to retail marijuana products manufacturing license to persons who manufacture retail marijuana products. The bill requires a retail marijuana products manufacturer to track all of its retail marijuana from the point it is either transferred from its retail marijuana cultivation facility or the point when it is delivered to the retail marijuana products manufacturer from a retail marijuana cultivation facility to the point of transfer to a retail marijuana store. The bill requires retail marijuana products to be manufactured and prepared in a facility that only manufactures retail marijuana products, except that premises may be shared with a medical cannabidiol-infused products manufacturer so long as a virtual or physical separation of inventory is maintained. RETAIL MARIJUANA TRANSPORTATION. The bill allows the division to issue a retail marijuana transporter license to a person to provide logistics, distribution, and storage of retail marijuana and retail marijuana products. The bill requires a retail marijuana transporter to use the seed-to-sale tracking system to create shipping manifests documenting the transport of retail marijuana and retail marijuana products. FEES. The bill allows the division to collect and charge fees. The bill sets the application fee for a person applying for a new retail marijuana establishment license at $5,000, which shall be divided evenly between the marijuana cash fund and the local jurisdiction where the license is proposed to be issued. The bill permits a local jurisdiction to impose operating fees on retail marijuana establishments to which it has granted a license. LICENSE DISCIPLINE. The bill permits the division, on its own motion or complaint, and after investigation, notice, a public hearing, and opportunity to be heard, to suspend or revoke a license if the licensee or any of its agents or employees violate a provision of the bill or a rule promulgated by the division. The division may administer oaths and issue subpoenas to require the presence of persons and the production of documents. The division may impose discipline pursuant to rules and Code chapter 17A. INSPECTION. The bill requires a licensee to keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which shall be open at all times during business hours for the inspection and examination by the division or its duly authorized representatives. The bill requires the licensed premises of a retail marijuana establishment, including any places of storage where retail marijuana or retail marijuana products are stored, cultivated, sold, dispensed, or tested to be subject to inspection by the state or local jurisdictions and their investigators, during all business hours and other times of apparent activity, for the purpose of inspection or investigation. The bill imposes on excise tax on retail marijuana cultivation facilities in the amount $25 per immature plant, $50 per ounce of the flowers of a retail marijuana plant, and $15 per ounce on all other parts of a retail marijuana plant. A retail marijuana cultivation facility is required to collect this tax at the point of first sale. The tax owed for each month’s sales must be transferred by a retail marijuana cultivation facility to the retail marijuana trust fund by the 15th day of the next month. The bill establishes the retail marijuana trust fund under the control of the division. The fund consists of all excise taxes collected and any excess funds transferred from the retail marijuana cash fund, as well as the interest and earnings thereon. The director of the division is the trustee of the fund and is required to administer the fund and distribute moneys for the support of substance abuse programs, drug courts, early childhood development programs, and counties and cities that have licensed at least one retail marijuana establishment. Moneys in the fund are not subject to reversion to the general fund of the state.