Fiscal Note
Fiscal Services Division
SF 2335 – Cannabidiol Dispensaries, Maximum Number of Licensees (LSB5831SV.1)
Staff Contact: Louie Hoehle (515.281.6561) louie.hoehle@legis.iowa.gov
Fiscal Note Version – As amended and passed by the Senate
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
1
Sources
Department of Health and Human Services
Department of Revenue
/s/ Jennifer Acton
April 3, 2024
Doc ID 1448651
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in developing this
fiscal note is available from the Fiscal Services Division of the Legislative Services Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 124E.8
Reprinted: 124E.8