Bill Text: IA SF469 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act 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.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-03-05 - Subcommittee: Garrett, R. Taylor, and Whiting. S.J. 469. [SF469 Detail]

Download: Iowa-2019-SF469-Introduced.html

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Senate File 469 - Introduced
SENATE FILE 469
BY BOLKCOM
A BILL FOR
An Act 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.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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DIVISION I
CRIMINAL PENALTIES
Section 1. Section 124.401, subsection 1, unnumbered
paragraph 1, Code 2019, is amended to read as follows:
Except as authorized by this chapter or chapter 124E or
124F , it is unlawful for any person to manufacture, deliver, or
possess with the intent to manufacture or deliver, a controlled
substance, a counterfeit substance, a simulated controlled
substance, or an imitation controlled substance, or to act
with, enter into a common scheme or design with, or conspire
with one or more other persons to manufacture, deliver, or
possess with the intent to manufacture or deliver a controlled
substance, a counterfeit substance, a simulated controlled
substance, or an imitation controlled substance.
Sec. 2. Section 124.401, subsection 1, paragraph a,
subparagraph (6), Code 2019, is amended by striking the
subparagraph.
Sec. 3. Section 124.401, subsection 1, paragraph b,
subparagraph (6), Code 2019, is amended by striking the
subparagraph.
Sec. 4. Section 124.401, subsection 1, paragraph c,
subparagraph (5), Code 2019, is amended by striking the
subparagraph.
Sec. 5. Section 124.401, subsection 1, paragraph c,
subparagraph (9), Code 2019, is amended to read as follows:
(9) Any other controlled substance, counterfeit substance,
simulated controlled substance, or imitation controlled
substance classified in schedule I, II, or III, except as
provided in paragraph “d” , or in chapter 124E or 124F .
Sec. 6. Section 124.401, subsection 1, paragraph d, Code
2019, is amended to read as follows:
d. Violation of this subsection , with respect to any other
controlled substances, counterfeit substances, simulated
controlled substances, or imitation controlled substances
classified in schedule IV or V is an aggravated misdemeanor.
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However, violation of this subsection involving fifty kilograms
or less of marijuana or involving flunitrazepam is a class “D”
felony.
Sec. 7. Section 124.401, subsection 5, unnumbered paragraph
2, Code 2019, is amended to read as follows:
If the controlled substance is marijuana, the punishment
shall be by imprisonment in the county jail for not more than
six months or by a fine of not more than one thousand dollars,
or by both such fine and imprisonment for a first offense. If
the controlled substance is marijuana and the person has been
previously convicted of a violation of this subsection in which
the controlled substance was marijuana, the punishment shall be
as provided in section 903.1, subsection 1 , paragraph “b” . If
the controlled substance is marijuana and the person has been
previously convicted two or more times of a violation of this
subsection in which the controlled substance was marijuana,
the person is guilty of an aggravated misdemeanor. This
subsection does not apply to the possession of marijuana which
is punishable pursuant to chapter 124F.
Sec. 8. Section 124.407, subsection 2, Code 2019, is amended
to read as follows:
2. a. Any person who violates this section and where the
controlled substance is any one a controlled substance other
than marijuana is guilty of a class “D” felony.
b. Any person who violates this section , and where the
controlled substance is marijuana only, is guilty of a serious
misdemeanor.
Sec. 9. Section 124.411, subsection 2, Code 2019, is amended
to read as follows:
2. For purposes of this section , an offense is considered
a second or subsequent offense, if, prior to the person’s
having been convicted of the offense, the offender has ever
been convicted under this chapter or under any state or federal
statute relating to narcotic drugs or cocaine, marijuana,
depressant, stimulant, or hallucinogenic drugs.
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Sec. 10. NEW SECTION . 124F.1 Definitions.
As used in this subchapter:
1. “Counterfeit substance” means the same as defined in
section 124.101.
2. “Imitation controlled substance” means the same as
defined in section 124.101.
3. “Marijuana” means the same as defined in section 124.101,
and includes a counterfeit substance, imitation controlled
substance, or simulated controlled substance containing a
detectable amount of marijuana.
4. “Simulated controlled substance” means the same as
defined in section 124.101.
Sec. 11. NEW SECTION . 124F.2 Marijuana —— penalties.
1. Except as otherwise provided in this subchapter and
chapter 124E, it is unlawful for any person to manufacture,
deliver, or possess with the intent to manufacture or deliver
marijuana, or to act with, enter into a common scheme or
design with, or conspire with one or more other persons to
manufacture, deliver, or possess with the intent to manufacture
or deliver marijuana. A violation of this subsection involving
the following amounts of marijuana shall be punishable as
follows:
a. More than twenty-two kilograms shall be a class “B”
felony.
b. More than two kilograms but not more than twenty-two
kilograms shall be a class “C” felony.
c. More than twelve ounces but not more than two kilograms
shall be a class “D” felony.
d. More than four ounces but not more than twelve ounces
shall be punishable as an aggravated misdemeanor.
e. Four ounces or less shall be punishable as a serious
misdemeanor, except as provided in section 124F.3.
2. a. It is unlawful for any person knowingly or
intentionally to possess marijuana unless such substance was
obtained directly from, or pursuant to, a valid prescription
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or order of a practitioner while acting in the course of the
practitioner’s professional practice, or except as otherwise
authorized by this subsection. A violation of this subsection
involving the possession of the following amounts of marijuana
shall be punishable as follows:
(1) More than six ounces but not more than twelve ounces is
an aggravated misdemeanor.
(2) More than four ounces but not more than six ounces is
a serious misdemeanor.
(3) More than one ounce but not more than four ounces is
not a criminal offense but shall be assessed as a civil penalty
in the amount of one hundred dollars, except if the person is
under twenty-one years of age, the person commits a serious
misdemeanor.
(a) The civil penalty shall be collected by the clerk of the
district court pursuant to section 602.8105, subsection 5.
(b) Any records relating to the civil penalty shall not
be displayed for public viewing on the Iowa court information
system.
(c) Any records relating to the civil penalty shall not
be kept in the criminal history data files maintained by the
department of public safety. Any records relating to the civil
penalty shall not be disseminated to other criminal or juvenile
justice agencies.
b. (1) Except as provided in subparagraph (2), a person
does not violate this subsection if the amount of marijuana
involved is one ounce or less.
(2) If the person is under twenty-one years of age, the
person commits a simple misdemeanor.
3. Upon the expiration of two years following a conviction
for a violation of subsection 2, paragraph “a” , subparagraph
(3), or for a violation of subsection 2, paragraph “b” ,
subparagraph (2), a person may petition the court to expunge
the conviction, and if the person has had no other criminal
convictions, other than local traffic violations or simple
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misdemeanor violations of chapter 321 during the two-year
period, the conviction shall be expunged as a matter of
law. The court shall enter an order that the record of the
conviction be expunged by the clerk of the district court.
Notwithstanding section 692.2, after receipt of notice from
the clerk of the district court that a record of conviction
has been expunged pursuant to this subsection, the record of
conviction shall be removed from the criminal history data
files maintained by the department of public safety.
Sec. 12. NEW SECTION . 124F.3 Delivery or possession with
the intent to deliver —— small amounts.
If the amount of marijuana delivered or possessed with
intent to deliver is two ounces or less and no remuneration was
provided, the defendant shall not be prosecuted for a violation
of this subchapter.
Sec. 13. NEW SECTION . 124F.4 Juvenile offenses.
The juvenile court shall have exclusive original
jurisdiction in a proceeding concerning a minor who is alleged
to have committed a violation of this subchapter.
Sec. 14. NEW SECTION . 124F.5 Marijuana use in public.
1. Marijuana shall not be consumed 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.
2. A person who violates this section commits a simple
misdemeanor punishable as a scheduled violation under section
805.8C, subsection 12.
3. Upon the expiration of two years following conviction
for a violation of subsection 1, a person may petition the
court to expunge the conviction, and if the person has had no
other criminal convictions, other than local traffic violations
or simple misdemeanor violations of chapter 321 during the
two-year period, the conviction shall be expunged as a matter
of law. The court shall enter an order that the record of the
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conviction be expunged by the clerk of the district court.
Notwithstanding section 692.2, after receipt of notice from
the clerk of the district court that a record of conviction
has been expunged pursuant to this subsection, the record of
conviction shall be removed from the criminal history data
files maintained by the department of public safety.
Sec. 15. Section 602.8105, Code 2019, is amended by adding
the following new subsection:
NEW SUBSECTION . 5. The clerk of the district court shall
collect the civil penalty assessed pursuant to section 124F.2,
subsection 2, paragraph “a” , subparagraph (3).
Sec. 16. Section 805.8C, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION . 12. Marijuana violations. For marijuana
use in public violations under section 124F.5, the scheduled
fine is fifty dollars for a first violation, and one hundred
dollars for a second or subsequent violation.
Sec. 17. REPEAL. Section 124.410, Code 2019, is repealed.
DIVISION II
RETAIL MARIJUANA
Sec. 18. NEW SECTION . 124F.6 Purpose and findings.
In the interest of allowing law enforcement to focus on
violent and property crimes, generating revenue for education
and other public purposes, and promoting individual freedom,
the state of Iowa finds and declares that the use of marijuana
should be legal for persons twenty-one years of age and older
and taxed in a manner similar to alcohol.
Sec. 19. NEW SECTION . 124F.7 Definitions.
For the purposes of this subchapter:
1. “Division” means the alcoholic beverages division of the
department of commerce.
2. “Immature plant” means a nonflowering marijuana plant
that is no taller than eight inches and no wider than eight
inches, is produced from a cutting, clipping, or seedling, and
is in a cultivating container.
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3. “License” means a license or registration issued pursuant
to this subchapter.
4. “Licensed premises” means the premises specified in an
application for a license under this subchapter, which are
owned or in possession of the licensee and within which the
licensee is authorized to cultivate, manufacture, distribute,
sell, or test retail marijuana and retail marijuana products in
accordance with this subchapter.
5. “Licensee” means a person licensed or registered pursuant
to this subchapter.
6. “Local jurisdiction” means a city or county.
7. “Local licensing authority” means, for any local
jurisdiction that has chosen to adopt a local licensing
requirement in addition to the state licensing requirements
of this subchapter, an authority designated by a municipal
or county ordinance, or resolution, or the governing body of
a municipality or county, or the board of commissioners of a
county if no such authority is designated.
8. “Location” means a particular parcel of land that may be
identified by an address or other descriptive means.
9. “Marijuana” means the same as defined in section 124.101.
10. “Marijuana accessories” means any equipment, products,
or materials of any kind which are used, intended for use, or
designed for use in planting, cultivating, growing, harvesting,
composting, manufacturing, compounding, converting, producing,
processing, preparing, testing, analyzing, packaging,
repackaging, storing, vaporizing, or containing marijuana, or
for ingesting, inhaling, or otherwise introducing marijuana
into the human body.
11. “Operating fees” means fees that may be charged by a
local jurisdiction for costs, including but not limited to
costs associated with the inspection, administration, and
enforcement of retail marijuana establishments authorized
pursuant to this subchapter.
12. “Person” means a natural person, partnership,
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association, company, corporation, limited liability company,
or organization; except that “person” does not include any
governmental organization.
13. “Retail marijuana” means all parts of the plant of the
genus Cannabis, whether growing or not, the seeds thereof; the
resin extracted from any part of the plant; and every compound,
manufacture, salt, derivative, mixture, or preparation of the
plant, its seeds or resin, including marijuana concentrate.
“Retail marijuana” does not include industrial hemp, nor does
it include fiber produced from the stalks, oil or cake made
from the seeds of the plant, sterilized seeds of the plant
which are incapable of germination, or the weight of any other
ingredient combined with marijuana to prepare topical or oral
administrations, food, drink, or other product.
14. “Retail marijuana cultivation facility” means an entity
licensed to cultivate, prepare, package, and sell marijuana to
retail marijuana stores, to marijuana product manufacturing
facilities, and to other marijuana cultivation facilities, but
not to consumers.
15. “Retail marijuana establishment” means a retail
marijuana store, a retail marijuana cultivation facility, or a
retail marijuana products manufacturer.
16. “Retail marijuana products” means concentrated marijuana
products and marijuana products that are comprised of marijuana
and other ingredients and are intended for use or consumption,
such as but not limited to edible products, ointments, and
tinctures.
17. “Retail marijuana products manufacturer” means an entity
licensed to purchase marijuana; manufacture, prepare, and
package marijuana products; and sell marijuana and marijuana
products to other marijuana product manufacturing facilities
and to retail marijuana stores, but not to consumers.
18. “Retail marijuana store” means an entity licensed
to purchase marijuana from marijuana cultivation facilities
and sell marijuana and to purchase marijuana products from
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retail marijuana product manufacturing facilities and to sell
marijuana and marijuana products to consumers.
19. “Retail marijuana transporter” means an entity or person
licensed to transport retail marijuana and retail marijuana
products from one retail marijuana establishment to another
retail marijuana establishment and to temporarily store the
transported retail marijuana and retail marijuana products at
its licensed premises, but is not authorized to sell retail
marijuana or retail marijuana products under any circumstances.
Sec. 20. NEW SECTION . 124F.8 Applicability.
1. On or after July 1, 2020, an applicant may apply for
licensure pursuant to this subchapter. A license issued to a
person pursuant to this subsection shall not be effective until
October 1, 2020.
2. a. Pursuant to subsection 1, an applicant shall complete
forms as provided by the division and shall pay the application
fee and the licensing fee, which shall be credited to the
marijuana cash fund established pursuant to section 124F.19.
The division shall forward, within seven days of the date of
the application, one-half of the application fee to the local
jurisdiction unless the local jurisdiction has prohibited the
operation of retail marijuana establishments. If the license
is denied, the division shall refund the licensing fee to the
applicant.
b. The division shall act upon an application made pursuant
to subsection 1 no sooner than forty-five days and no later
than ninety days after the date of the application. The
division shall process applications in the order in which
completed applications are received by the division.
3. Any local jurisdiction may enact ordinances or
regulations governing the time, place, manner, and number of
retail marijuana establishments, which may include a local
licensing requirement, or may prohibit the operation of retail
marijuana establishments by ordinance or by a referred or
initiated measure. If a county acts through an initiated
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measure, the proponents shall submit a petition signed by not
less than fifteen percent of the registered electors in the
county.
Sec. 21. NEW SECTION . 124F.9 Retail marijuana licensure.
1. The division shall develop and maintain a seed-to-sale
tracking system that tracks retail marijuana from either
seed or immature plant stage until the marijuana or retail
marijuana product is sold to a customer at a retail marijuana
establishment to ensure that no marijuana grown or processed
by a retail marijuana establishment is sold or otherwise
transferred except by a retail marijuana store.
2. The division shall adopt all rules necessary for the
implementation of this chapter.
3. Nothing in this subchapter shall be construed to be
a delegation to the division of the power to fix prices for
retail marijuana.
4. Nothing in this subchapter shall be construed to limit
a law enforcement agency’s ability to investigate unlawful
activity in relation to a retail marijuana establishment. A
law enforcement agency shall have the authority to conduct a
criminal history record check of a licensee and an employee of
a licensee during an investigation of unlawful activity related
to retail marijuana and retail marijuana products.
5. The division shall create a statewide licensure class
system for retail marijuana cultivation facilities. The
classifications may be based upon square footage of the
facility; lights, lumens, or wattage; canopy lighting; the
number of cultivating plants; a combination of the foregoing;
or other reasonable metrics. The division shall create a fee
structure for the licensure class system.
Sec. 22. NEW SECTION . 124F.10 State and local participation
in licensure.
1. When the division receives an application for an
initial license or a renewal of an existing license for
any retail marijuana establishment, the division shall
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provide, within seven days of receipt of an application,
a copy of the application to the local jurisdiction in
which the establishment is to be located unless the local
jurisdiction has prohibited the operation of retail marijuana
establishments. The local jurisdiction shall determine whether
the application complies with local restrictions relating
to time, place, manner, and the number of retail marijuana
establishments allowed. The local jurisdiction shall inform
the division whether the application complies with local
restrictions.
2. A local jurisdiction may impose a separate local
licensing requirement as a part of its restrictions relating
to time, place, manner, and the number of retail marijuana
establishments allowed. A local jurisdiction may decline
to impose any local licensing requirements, but a local
jurisdiction shall notify the division that it either approves
or denies each application received by the local jurisdiction.
3. If a local jurisdiction issues a local license for
a retail marijuana establishment, a local jurisdiction may
schedule a public hearing on the application. If the local
jurisdiction schedules a hearing, it shall post and publish
public notice of the hearing not less than ten days prior
to the hearing. The local jurisdiction shall give public
notice by posting a sign in a conspicuous place on the license
applicant’s premises for which a local license application
has been made and by publication in a newspaper of general
circulation in the county in which the applicant’s premises are
located.
4. If a local jurisdiction does not issue local licenses,
the local jurisdiction may give public notice of the state
license application by posting a sign in a conspicuous place
on the state license applicant’s premises for which a state
license application has been made and by publication in a
newspaper of general circulation in the county in which the
applicant’s premises are located.
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5. Applications for a state license under this subchapter
must be made to the division on forms prepared and furnished
by the division and must set forth such information as the
division may require to enable the division to determine
whether a state license should be granted.
6. The division shall deny a state license if the premises
on which the applicant proposes to conduct its business does
not meet the requirements of this subchapter. The division
may refuse or deny a license renewal, reinstatement, or
initial license issuance for good cause. For purposes of this
subsection, “good cause” means any of the following:
a. The licensee or applicant has violated, does not meet,
or has failed to comply with any of the terms, conditions, or
provisions of this subchapter, any rules promulgated pursuant
to this subchapter, or any supplemental local law, rules, or
regulations.
b. The licensee or applicant has failed to comply with any
special terms or conditions of the license pursuant to an order
of the division or local licensing authority.
c. The licensed premises have been operated in a manner that
adversely affects the public health or safety of the immediate
neighborhood in which the retail marijuana establishment is
located.
7. If the division denies a state license pursuant to
subsection 6, the applicant shall be entitled to a hearing
pursuant to section 17A.12 and judicial review pursuant to
section 17A.19. The division shall provide written notice of
the grounds for denial of the state license to the applicant
and to the local jurisdiction at least fifteen days prior to
the hearing.
Sec. 23. NEW SECTION . 124F.11 Establishment and owner
requirements.
1. An owner who is a natural person must have been either
of the following:
a. A resident of Iowa for at least one year prior to the
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date of the application.
b. A United States citizen prior to the date of the
application.
2. A retail marijuana establishment may be composed of an
unlimited number of owners that have been residents of Iowa for
at least one year prior to the date of the application.
3. The division shall review the retail marijuana
establishment’s operating documents to ensure compliance with
this section.
Sec. 24. NEW SECTION . 124F.12 Retail marijuana
establishment licensure.
1. Local jurisdictions may adopt and enforce regulations
for retail marijuana establishments that are at least as
restrictive as the provisions of this subchapter and any rule
promulgated pursuant to this subchapter.
2. A retail marijuana establishment shall not operate
until the retail marijuana establishment is licensed by the
division pursuant to this subchapter and approved by the
relevant local jurisdiction. If an application is denied by
the local licensing authority, the division shall revoke the
state license. In connection with a license, the applicant
shall provide a complete and accurate application as required
by the division.
3. A retail marijuana establishment shall notify the
division in writing of the name, address, and date of birth of
a new owner, officer, or manager before the new owner, officer,
or manager begins managing, owning, working, or otherwise
associating with the establishment. The owner, officer,
manager, or employee shall pass a fingerprint-based criminal
history record check as required by the division and shall
obtain the required identification prior to managing, owning,
working, or otherwise associating with the establishment.
4. Before granting a state license, the division may
consider, except when this subchapter specifically provides
otherwise, the requirements of this subchapter and any
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rules promulgated pursuant to this subchapter, and all other
reasonable restrictions that are or may be placed upon a
licensee by the division or local licensing authority.
5. a. Each license issued under this subchapter is separate
and distinct. It is unlawful for a person to exercise any
of the privileges granted under a license other than the
license that the person holds or for a licensee to allow any
other person to exercise the privileges granted under the
licensee’s license. A separate license shall be required for
each specific business or business entity and each geographical
location.
b. At all times, a licensee shall possess and maintain
possession of the premises for which the license is issued
through ownership, lease, rental, or other arrangement for
possession of the premises.
6. Each licensee shall manage the licensed premises
personally or employ a separate and distinct manager on
the premises and shall report the name of the manager to
the division and local licensing authority. The licensee
shall report any change in manager to the division and local
licensing authority within seven days after the change.
Sec. 25. NEW SECTION . 124F.13 License renewal.
1. Ninety days prior to the expiration date of an existing
license, the division shall notify a 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 thirty days
prior to the date of expiration of the existing license. Upon
receipt of an application for renewal of an existing license
and any applicable fees, the division shall submit, within
seven days of the application, a copy of the application to
the local jurisdiction to determine whether the application
complies with all local restrictions on renewal of licenses.
The division shall not accept an application for renewal of a
license after the date of expiration, except as provided in
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subsection 3. The division may extend the expiration date of
the license and accept a late application for renewal of a
license if the applicant has filed a timely renewal application
with the local licensing authority. The division or the local
licensing authority, in its discretion, and subject to the
requirements of this subsection and subsection 3 and based upon
reasonable grounds, may waive the thirty-day time requirements
set forth in this subsection.
2. The division may request additional fingerprints from a
licensee when there is a demonstrated investigative need.
3. a. Notwithstanding the provisions of subsection 1,
a licensee whose license has been expired for not more than
ninety days may file a late renewal application upon the
payment of a nonrefundable late application fee of five hundred
dollars to the division. A licensee who files a late renewal
application and pays the requisite fees may continue to operate
until the division takes final action to approve or deny
the licensee’s late renewal application unless the division
summarily suspends the license pursuant to chapter 17A, this
subchapter, and rules promulgated pursuant to this subchapter.
b. The division may administratively continue a license
and accept a later application for renewal of a license at the
discretion of the division.
Sec. 26. NEW SECTION . 124F.14 Classes of licenses.
For the purpose of regulating the cultivation, manufacture,
distribution, sale, and testing of retail marijuana and retail
marijuana products, the division in its discretion, upon
receipt of an application in the prescribed form, may issue and
grant to the applicant a license or registration in any of the
following classes, subject to the provisions and restrictions
provided by this subchapter:
1. Retail marijuana store license.
2. Retail marijuana cultivation facility license.
3. Retail marijuana products manufacturing license.
4. Occupational licenses and registrations for owners,
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managers, operators, employees, contractors, and other support
staff employed by, working in, or having access to restricted
areas of the licensed premises, as determined by the division.
The division may take any action with respect to a registration
pursuant to this subchapter as it may with respect to a license
pursuant to this subchapter, in accordance with the procedures
established pursuant to this subchapter.
5. Retail marijuana transporter license.
Sec. 27. NEW SECTION . 124F.15 Retail marijuana store
license.
1. a. A retail marijuana store license shall be issued
by the division only to a person selling retail marijuana or
retail marijuana products pursuant to the terms and conditions
of this subchapter.
b. A retail marijuana store shall not accept any retail
marijuana purchased from a retail marijuana cultivation
facility unless the retail marijuana store is provided with
evidence that any applicable excise tax due was paid.
2. Notwithstanding the provisions of this section, a
retail marijuana store licensee may also sell retail marijuana
products that are prepackaged and labeled as required by rules
of the division pursuant to section 124F.9.
3. a. A retail marijuana store shall not sell more than one
ounce of retail marijuana or its equivalent in retail marijuana
products, including retail marijuana concentrate, except for
nonedible, nonpsychoactive retail marijuana products, including
ointments, lotions, balms, and other nontransdermal topical
products during a single transaction to a person.
b. (1) Prior to initiating a sale, an employee of the
retail marijuana store making the sale shall verify that
the purchaser has a valid identification card showing the
purchaser is twenty-one years of age or older. If a person
under twenty-one years of age presents fraudulent proof of age,
any action relying on the fraudulent proof of age shall not be
grounds for the revocation or suspension of any license issued
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under this subchapter.
(2) (a) If a retail marijuana store licensee or
employee has reasonable cause to believe that a person is
under twenty-one years of age and is exhibiting fraudulent
proof of age in an attempt to obtain any retail marijuana
or cannabidiol-infused product, the licensee or employee
is authorized to confiscate such fraudulent proof of age,
if possible, and shall, within seventy-two hours after the
confiscation, remit such fraudulent proof of age to a state
or local law enforcement agency. The failure to confiscate
such fraudulent proof of age or to remit such fraudulent proof
of age to a state or local law enforcement agency within
seventy-two hours after the confiscation shall not constitute a
criminal offense.
(b) If a retail marijuana store licensee or employee
believes that a person is under twenty-one years of age and
presents fraudulent proof of age in an attempt to obtain any
retail marijuana or retail cannabidiol-infused product, the
licensee or employee or any peace officer or police officer,
acting in good faith and upon probable cause based upon
reasonable grounds therefor, may detain and question such
person in a reasonable manner for the purpose of ascertaining
whether the person is guilty of any unlawful act regarding the
purchase of retail marijuana. The questioning of a person by a
licensee, employee, peace officer, or police officer does not
render the licensee, employee, peace officer, or police officer
civilly or criminally liable for slander, false arrest, false
imprisonment, malicious prosecution, or unlawful detention.
4. All retail marijuana and retail marijuana products
sold at a licensed retail marijuana store shall be packaged
and labeled as required by rules of the division pursuant to
section 124F.9.
5. a. A licensed retail marijuana store shall only
sell retail marijuana, retail marijuana products, marijuana
accessories, nonconsumable products such as apparel, and
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marijuana-related products such as childproof packaging
containers, but shall be prohibited from selling or giving
away any consumable product, including but not limited to
cigarettes, alcohol, or an edible product that does not contain
marijuana, including but not limited to sodas, candies, or
baked goods.
b. A licensed retail marijuana store shall not sell any
retail marijuana or retail marijuana products that contain
nicotine or alcohol, if the sale of the alcohol would require a
license pursuant to chapter 123.
c. A licensed retail marijuana store shall not sell retail
marijuana or retail marijuana products over the internet nor
deliver retail marijuana or retail marijuana products to a
person who is not physically present in the retail marijuana
store’s licensed premises.
6. Retail marijuana or retail marijuana products shall not
be consumed on the premises of a retail marijuana store.
7. Notwithstanding any other provision of state law, sales
of retail marijuana and retail marijuana products are not
exempt from state or local sales tax.
Sec. 28. NEW SECTION . 124F.16 Retail marijuana cultivation
facility license.
1. A retail marijuana cultivation facility license shall
be issued by the division only to a person who cultivates
retail marijuana for sale and distribution to licensed retail
marijuana stores, retail marijuana products manufacturing
licensees, or other retail marijuana cultivation facilities.
2. A retail marijuana cultivation facility shall remit any
applicable excise tax due.
3. A retail marijuana cultivation facility shall track
the marijuana it cultivates from seed or immature plant to
wholesale purchase of the retail marijuana. Prior to delivery
of any retail marijuana that is sold, the retail marijuana
cultivation facility shall provide evidence that the facility
paid any applicable excise tax on the retail marijuana due.
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4. A retail marijuana cultivation facility may provide,
except as required by section 124F.9, a sample of its products
to the state hygienic laboratory for testing and research
purposes. A retail marijuana cultivation facility shall
maintain a record of the sample provided to the state hygienic
laboratory and the testing results.
5. Retail marijuana or retail marijuana products shall not
be consumed on the premises of a retail marijuana cultivation
facility.
6. The division shall not issue more than twenty retail
marijuana cultivation facility licenses.
Sec. 29. NEW SECTION . 124F.17 Retail marijuana products
manufacturing license.
1. a. A retail marijuana products manufacturing license
shall be issued by the division to a person who manufactures
retail marijuana products pursuant to the terms and conditions
of this subchapter.
b. A retail marijuana products manufacturer may cultivate
its own retail marijuana if the manufacturer obtains a retail
marijuana cultivation facility license, or it may purchase
retail marijuana from a licensed retail marijuana cultivation
facility. A retail marijuana products manufacturer shall track
all of its retail marijuana from the point the retail marijuana
is either transferred from its retail marijuana cultivation
facility or from the point when the retail marijuana is
delivered to the retail marijuana products manufacturer from a
licensed retail marijuana cultivation facility to the point of
transfer to a licensed retail marijuana store.
c. A retail marijuana products manufacturer shall not
accept any retail marijuana purchased from a retail marijuana
cultivation facility unless the retail marijuana products
manufacturer is provided with evidence that any applicable
excise tax due was paid.
2. All retail marijuana products shall be prepared on
a licensed premises used exclusively for the manufacture
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and preparation of retail marijuana or retail marijuana
products and using equipment that is used exclusively for the
manufacture and preparation of retail marijuana products;
except that, if permitted by the local jurisdiction, a
retail marijuana products manufacturing licensee may share
the same premises as a medical cannabidiol-infused products
manufacturing licensee so long as a virtual or physical
separation of inventory is maintained pursuant to rules
promulgated by the division.
3. All licensed premises on which retail marijuana products
are manufactured shall meet the sanitary standards for retail
marijuana product preparation promulgated pursuant to section
124F.9.
4. Retail marijuana or retail marijuana products shall not
be consumed on the premises of a retail marijuana products
manufacturing facility.
5. A retail marijuana products manufacturer may provide,
except as required by section 124F.9, a sample of its products
to the state hygienic laboratory for testing and research
purposes. A retail marijuana products manufacturer shall
maintain a record of what was provided to the state hygienic
laboratory and the results of the testing.
6. A licensed retail marijuana products manufacturer shall
package and label each product manufactured as required by
rules of the division pursuant to section 124F.9.
7. All retail marijuana products that require refrigeration
to prevent spoilage must be stored and transported in a
refrigerated environment.
8. The division shall not issue more than twenty retail
marijuana products manufacturer licenses.
Sec. 30. NEW SECTION . 124F.18 Retail marijuana transporter
license.
1. a. A retail marijuana transporter license shall be
issued by the division to a person to provide logistics,
distribution, and storage of retail marijuana and retail
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marijuana products. Notwithstanding any other provisions of
law, a retail marijuana transporter license shall be valid for
two years from the date of issuance, but cannot be transferred
with a change of ownership. A licensed retail marijuana
transporter shall be responsible for the retail marijuana and
retail marijuana products once the transporter takes control
of the product.
b. A licensed retail marijuana transporter may contract with
multiple licensed retail marijuana establishments.
c. On or after July 1, 2020, all retail marijuana
transporters shall hold a valid retail marijuana transporter
license; except that an entity licensed pursuant to this
subchapter that provides its own distribution is not required
to hold a retail marijuana transporter license to transport and
distribute its products. The division shall begin accepting
applications after January 1, 2020.
2. A retail marijuana transporter licensee shall use a
seed-to-sale tracking system developed pursuant to section
124F.9 to create shipping manifests documenting the transport
of retail marijuana and retail marijuana products throughout
the state.
Sec. 31. NEW SECTION . 124F.19 Marijuana cash fund —— fees.
1. A marijuana cash fund is created under the control of
the division. Moneys in the fund shall be used to administer
this chapter. Any excess funds as determined by the division
shall be transferred to the marijuana trust fund established in
section 124F.24 at the end of each fiscal quarter.
2. The application fee for a person applying pursuant to
section 124F.8, subsection 2, shall be five thousand dollars.
The division shall transfer two thousand five hundred dollars
of the fee to the marijuana cash fund and remit two thousand
five hundred dollars to the local jurisdiction in which
the license is proposed to be issued. If the division is
considering raising the amount of the application fee, it shall
confer with each local jurisdiction in which a license under
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this subchapter is issued prior to raising the application
fee. If the application fee amount is changed, it shall be
split evenly between the marijuana cash fund and the local
jurisdiction in which the license is proposed to be issued.
3. A local jurisdiction in which a license under this
subchapter may be permitted may adopt and impose operating fees
in an amount determined by the local jurisdiction on retail
marijuana establishments located within the local jurisdiction.
Sec. 32. NEW SECTION . 124F.20 Discipline.
In addition to any other sanctions prescribed by this
subchapter or rules promulgated pursuant to this subchapter,
the division has the power, on its own motion or upon
complaint, after investigation and opportunity for a public
hearing at which a licensee must be afforded an opportunity
to be heard, to fine a licensee or to suspend or revoke
a license issued by the division for a violation by the
licensee or by any of the agents or employees of the licensee
of the provisions of this subchapter, or any of the rules
promulgated pursuant to this subchapter, or of any of the
terms, conditions, or provisions of the license issued by the
division. The division has the power to administer oaths and
issue subpoenas to require the presence of persons and the
production of papers, books, and records necessary to the
determination of a hearing that the division is authorized to
conduct. The division shall conduct a contested case pursuant
to chapter 17A prior to imposing discipline, except in the case
of an emergency adjudication.
Sec. 33. NEW SECTION . 124F.21 Disposition of seized
materials.
1. This section shall apply in addition to any criminal,
civil, or administrative penalties and in addition to any
other penalties prescribed by this subchapter or any rules
promulgated pursuant to this subchapter.
2. A state or local agency shall not be required to
cultivate or care for any retail marijuana or retail marijuana
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product belonging to or seized from a licensee. A state or
local agency shall not be authorized to sell marijuana or
retail marijuana.
3. If the division issues a final order imposing a
disciplinary action against a licensee pursuant to section
124F.20, then, in addition to any other remedies, the
division’s final order may specify that some or all of the
licensee’s marijuana or marijuana product is not retail
marijuana or a retail marijuana product and is an illegal
controlled substance. The final order may further specify that
the licensee shall lose any interest in any of the marijuana or
marijuana product even if the marijuana or marijuana product
previously qualified as retail marijuana or a retail marijuana
product.
4. On or before January 1, 2020, the division shall
promulgate rules governing the implementation of this section.
Sec. 34. NEW SECTION . 124F.22 Inspection procedures.
1. A licensee shall keep a complete set of all records
necessary to show fully the business transactions of the
licensee, all of which shall be accessible at all times during
business hours for inspection and examination by the division
or its authorized representatives. The division may require
a licensee to furnish such information as necessary for the
proper administration of this subchapter and may require an
audit to be made of the books of account and records on such
occasions as necessary by an auditor selected by the division
who shall have access to all books and records of the licensee.
All associated expenses shall be paid by the licensee.
2. Any licensed premises, including any places of storage
where retail marijuana or retail marijuana products are stored,
cultivated, sold, dispensed, or tested shall be subject to
inspection by the state or local jurisdictions and their
investigators, during all business hours and during other times
when employees are present, for the purpose of inspection
or investigation. Access shall be required during business
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hours for examination of any inventory or books and records
required to be kept by the licensees. If any part of the
licensed premises consists of a locked area, upon demand to
the licensee, such area shall be made available for inspection
without delay, and, upon request by authorized representatives
of the state or local jurisdiction, the licensee shall open the
area for inspection.
3. A licensee shall retain all books and records necessary
to show fully the business transactions of the licensee for
a period of the current tax year and the three immediately
preceding tax years.
Sec. 35. NEW SECTION . 124F.23 Retail marijuana excise tax.
1. There is levied and imposed an excise tax on all retail
marijuana cultivation facilities within the state in the
following amounts:
a. On an immature marijuana plant, twenty-five dollars per
plant.
b. On the flowers of a retail marijuana plant, fifty dollars
per ounce, or a proportional amount thereof on any fraction of
an ounce.
c. On all parts of a retail marijuana plant other the
flowers of a retail marijuana plant, fifteen dollars per ounce,
or a proportional amount thereof on any fraction of an ounce.
2. A retail marijuana cultivation facility shall collect
the applicable excise tax at the point of first sale.
3. A retail marijuana cultivation facility shall pay the
excise tax due on all retail marijuana sold in the previous
month by the fifteenth day of each month.
4. The excise tax under this section shall be paid to the
retail marijuana trust fund established in section 124F.24.
Sec. 36. NEW SECTION . 124F.24 Retail marijuana trust fund.
1. A retail marijuana trust fund is created in the state
treasury under the control of the division. The fund shall
consist of all moneys deposited in the fund pursuant to
sections 124F.19 and 124F.23, and all interest and earnings
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thereon.
2. The director of the division is the trustee of the fund
and shall administer the fund. Any loss to the fund shall
be charged against the fund and the director shall not be
personally liable for such loss. In addition, the director is
the trustee of any trusts referenced in section 457(g) of the
federal Internal Revenue Code. Any loss to the trusts shall
be charged against the trusts and the director shall not be
personally liable for such loss.
3. The trustee shall administer the fund and distribute
moneys therefrom for the following purposes:
a. The support of substance abuse prevention programs.
b. The support of drug courts.
c. The support of early childhood development programs.
d. Making disbursements to the county supervisors for the
support of counties that have licensed at least one retail
marijuana establishment and to the city council for the support
of cities that have licensed at least one retail marijuana
establishment.
4. Notwithstanding section 8.33, moneys in the trust fund
shall not revert. Notwithstanding section 12C.7, subsection
2, interest or earnings on moneys deposited in the trust fund
shall be credited to the trust fund.
Sec. 37. NEW SECTION . 453B.17 Retail marijuana.
This chapter shall not apply to retail marijuana or retail
marijuana products produced or sold pursuant to chapter 124F.
Sec. 38. SUBCHAPTER DESIGNATIONS.
1. The Code editor is directed to create two new subchapters
in chapter 124F as follows:
a. Subchapter I shall be entitled “criminal penalties” and
include sections 124F.1 through 124F.5.
b. Subchapter II shall be entitled “retail marijuana” and
include sections 124F.6 through 124F.24.
2. The Code editor may modify subchapter titles if necessary
and is directed to correct internal references in the Code as
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necessary due to enactment of this section.
Sec. 39. EFFECTIVE DATE. This Act takes effect January
1, 2020, except that the alcoholic beverages division of the
department of commerce may adopt rules for the implementation
of this Act prior to that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
DIVISION I —— CRIMINAL PENALTIES. This bill modifies
criminal penalties relating to marijuana by eliminating and
modifying certain criminal provisions in Code chapter 124
(uniform controlled substances Act), and transferring certain
criminal provisions from Code chapter 124 to new Code chapter
124F.
MANUFACTURE, DELIVERY, OR POSSESSION WITH INTENT TO DELIVER
MARIJUANA. The bill provides that an unauthorized person
commits a class “B” felony punishable by confinement of no
more than 25 years if the person violates new Code section
124F.2(1)(a) and the controlled substance involves more than
22 kilograms of marijuana. Currently, such a person commits
a class “B” felony punishable by confinement of no more than
50 years if the controlled substance involves more than 1,000
kilograms of a mixture or substance containing a detectable
amount of marijuana, or a class “B” felony punishable by
confinement of no more than 25 years if the controlled
substance involves more than 100 kilograms of marijuana but not
more than 1,000 kilograms.
The bill provides that an unauthorized person commits a
class “C” felony if the person violates new Code section
124F.2(1)(b) and the controlled substance involves more than
2 kilograms of marijuana but not more than 22 kilograms.
Currently, such a person commits a class “C” felony if the
controlled substance involves more than 50 kilograms of
marijuana but not more than 100 kilograms.
The bill provides that an unauthorized person commits a
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class “D” felony if the person violates new Code section
124F.2(1)(c) and the controlled substance involves more than 12
ounces of marijuana but not more than 2 kilograms. Currently,
such a person commits a class “D” felony if the controlled
substance involves 50 kilograms or less of marijuana.
The bill provides that an unauthorized person commits an
aggravated misdemeanor if the person violates new Code section
124F.2(1)(d) and the controlled substance involves more than 4
ounces of marijuana but not more than 12 ounces. Currently,
such a person commits a class “D” felony.
The bill provides that an unauthorized person commits a
serious misdemeanor if the person violates new Code section
124F.2(1)(e) and the controlled substance involves 4 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 12 ounces of marijuana, the
person commits a class “D” felony.
The bill provides that if a person unlawfully possesses more
than 6 ounces of marijuana but not more than 12 ounces, the
person commits an aggravated misdemeanor.
The bill provides that if a person unlawfully possesses more
than 2 ounces of marijuana but not more than 6 ounces, the
person commits a serious misdemeanor.
The bill provides that if a person 21 years of age or older
possesses more than 1 ounce of marijuana but not more than
2 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 21 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
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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 21 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.
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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. The bill strikes a provision
allowing a prosecution for unlawful delivery or possession with
intent to deliver marijuana, if the prosecution proves that
the defendant delivered or possessed with intent to deliver
one-half ounce or less of marijuana which was not offered for
sale, the defendant is guilty of an accommodation offense
and rather than being sentenced for a class “D” felony under
Code section 124.401(1)(d), the person is sentenced for a
misdemeanor in violation of Code section 124.401(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
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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 30
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
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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 21 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 20 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 20 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
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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
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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.
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