Relating to the licensure of medical cannabidiol dispensaries

Sponsored by the Senate Judiciary Committee

Topics:Alcohol, cannabis & gaming Professional licensing

Same legislation: SSB 3100, HSB 684, HF 2659

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Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedJanuary 23, 2024
Done: SubcommitteeJanuary 23, 2024
Done: Senate committeeFebruary 13, 2024
Done: Passes the SenateApril 2, 202446–3
Stopped: House committeeDied when the General Assembly ended
Next: Passes the House
Next: To the Governor
Next: Signed into law

Died when the session ended The 2024 session adjourned on April 19, 2024, the General Assembly’s last regular session. Bills that didn’t pass both chambers died. What’s a funnel?

What’s in it

AI summary Iowa would increase the total number of medical cannabidiol dispensary licenses allowed in the state to 10. Under this rule, a single business can own up to three of these licenses. The law also removes the previous requirement that dispensaries had to start selling products by December 1, 2018.¹

Read the official explanation

This bill relates to the licensure of medical cannabidiol dispensaries. The bill increases the maximum number of medical cannabidiol dispensary licenses in the state from to 10. The bill allows a licensee to hold no more than three 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.

Changed since by amendment S-5114; see Amendments.

Full bill text²

Senate subcommittee

Named January 23, 2024 (as SSB 3100). On February 8, 2024 it recommended passage. [].

Three legislators hear a bill first and recommend what the committee should do; it’s the best time to weigh in. How to take part

2 written public comments to its subcommittee: February 27, 2024 (1), February 8, 2024 (1) · on the Legislature’s site

Fiscal note

AI summary This bill increases the maximum number of medical cannabidiol dispensary licenses in the state from 5 to 10 and allows a licensee to hold any number of licenses. It is estimated to increase revenue for the General Fund by $0.16 million in fiscal year 2025, $0.16 million in fiscal year 2026, $0.16 million in fiscal year 2027, $0.17 million in fiscal year 2028, and $0.17 million in fiscal year 2029. The bill is also estimated to bring in $0.03 million for the SAVE Fund and $0.03 million for LOST distributions for each of those fiscal years.³

Read the fiscal note

Description

Senate File 2335 increases the maximum number of medical cannabidiol dispensary licenses in the State from 5 to 10. The Bill allows a licensee to hold any number of medical cannabidiol dispensary licenses.

Background

The Medical Cannabidiol Program was established in 2017, authorizing the manufacture and sale of products that contain both cannabidiol (CBD) and tetrahydrocannabinol (THC). Through the Program, the Department of Health and Human Services (HHS) can award up to five CBD licenses in the State. Currently, MedPharm Iowa holds two dispensary licenses, while Iowa Cannabis Company holds three dispensary licenses.

Taxable sales of medical CBD were approximately $13.2 million in FY 2023.

Assumptions

Senate File 2335 may expand the availability of medical CBD.
The number of active registration cards issued to patients may remain unchanged.
Medical CBD taxable sales revenue may increase by 25.0% because of previously unmet demand.
Medical CBD taxable sales and sales tax revenue are estimated to grow at an average annual inflation rate of 2.0% from FY 2024 to FY 2029.
Secure an Advanced Vision for Education (SAVE) refunds are 1.0% of taxable sales. Local option sales tax (LOST) distributions are estimated to be 0.97% of taxable sales.
The HHS reports that approximately $100,000 of information technology (IT) costs and any additional licensing costs associated with validating and integrating new dispensaries and dispensary personnel will be absorbed by the Program’s current operational funding.

Fiscal Impact

Senate File 2335 is estimated to increase revenue to the General Fund, SAVE Fund, and LOST by the estimated amounts in Figure 1.

Figure 1 — Fiscal Impact of SF 2335 (in millions)General Fund SAVE LOST FY 2025 0.16$ 0.03$ 0.03$ FY 2026 0.16 0.03 0.03 FY 2027 0.16 0.03 0.03 FY 2028 0.17 0.03 0.03 FY 2029 0.17 0.03 0.03