SSB 1177

This bill relates to the medical cannabidiol Act, including medical cannabidiol registration cards and medical cannabidiol dispensaries. The bill changes the application fee for a medical cannabidiol registration card to $10. The bill also changes the expiration date of medical cannabidiol registration cards from one year after issuance to two years after issuance. The bill requires the Iowa department of public health (DPH) to develop rules for the issuance of a medical cannabidiol registration card to an institution, which would allow employees of the institution to administer medical cannabidiol to qualified medical cannabidiol patients in the care of the institution. The bill requires DPH to accept applications for the licensure of medical cannabidiol dispensaries beyond the five currently allowed in Code beginning July 1, 2021. _____ prohibits the department from issuing such a license to a dispensary in a county where a dispensary is currently located, or in a county bordering such a county. As a condition for licensure, the medical cannabidiol dispensary must agree to begin supplying medical cannabidiol to patients within one year of the date of licensure. The bill strikes a provision prohibiting a medical cannabidiol dispensary from referring patients to a health care practitioner. The bill requires DPH to adopt rules allowing the operator of a medical cannabidiol dispensary to conduct dispensary operations from a mobile location, and prohibits a mobile dispensary from operating in a county with a medical cannabidiol dispensary. The bill prohibits DPH from imposing annual fees of greater than $2,000 on medical cannabidiol manufacturers and dispensaries. The bill allows individuals and corporations to subtract from net income, to the extent included, business expenses for a medical cannabidiol manufacturer or medical cannabidiol dispensary. The bill creates a medical cannabidiol tax fund within the state treasury under the control of DPH. Beginning the first day of the calendar quarter following July 1, 2021, sales tax for the sales of medical cannabidiol shall be transferred to the fund. Moneys in the fund shall be used, in order of priority, for the repayment of fees paid to the state hygienic laboratory at the university of Iowa in Iowa City by a medical cannabidiol manufacturer on or after the effective date of the bill, the repayment of fees paid to other laboratories by a medical cannabidiol manufacturer on or after the effective date of the bill, and the administration of the medical cannabidiol program. Moneys in the fund are not subject to reversion.