HB 238 Summary

• Authorizes persons 21 years of age or older to possess up to one ounce of cannabis or grow up to seven cannabis plants for recreational use without criminal penalty.

• Establishes licensing and regulation system for cannabis establishments (cultivation facilities, manufacturing facilities, testing facilities, and retail stores) administered by the Department of Health, with rules to be adopted by July 1, 2022.

• Restricts cannabis establishment licenses to existing medical cannabis dispensary licensees under chapter 329D, who may establish additional retail locations.

• Allocates an unspecified percentage of general excise tax revenues from retail cannabis sales to counties and exempts cannabis business expenses from federal IRC section 280E restrictions for state income tax purposes.

• Amends penal code provisions to decriminalize cannabis possession for adults 21 and older, adds affirmative defense for lawful recreational cannabis activities, and repeals limitations on authorized sources of medical cannabis; takes effect January 1, 2022.