HSB 242

This bill relates to the medical cannabidiol program and is organized in divisions. DIVISION I —— MEDICAL CANNABIDIOL PROGRAM. The bill changes the definition of “medical cannabidiol” to include specific forms of oral, topical, and inhalable cannabis. The bill increases the maximum number of medical cannabidiol dispensary licenses in the state from to 10. The bill prohibits the department of health and human services from issuing a new medical cannabidiol dispensary license for a dispensary to be located in a county with a medical cannabidiol dispensary that was licensed prior to January 1, 2023. _____ medical cannabidiol dispensaries based on geographical need throughout the state. The bill requires the department of health and human services to accept applications for medical cannabidiol dispensary licenses from current licensees between July 1, 2023, and October 1, 2023. In evaluating an application from a current licensee, the department shall consider only the security, physical layout, and plan for technology at the proposed location. A licensee may hold a maximum of four medical cannabidiol dispensary licenses. The bill strikes a provision in current law requiring a medical cannabidiol dispensary to agree to begin supplying medical cannabidiol by December 1, 2018. DIVISION II —— MEDICAL CANNABIDIOL —— INCOME TAXES. 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. This division of the bill applies retroactively to January 1, 2023, for tax years beginning on or after that date. DIVISION III —— MEDICAL CANNABIDIOL —— SALES AND USE TAX. The bill exempts sales of medical cannabidiol products by a medical cannabidiol manufacturer or a medical cannabidiol dispensary pursuant to Code chapter 124E from sales tax.