STATEMENT OF PURPOSE
RS28413 / H0108
This legislation would provide for a regulated system of medically recommended cannabis and would move
cannabis a schedule 1 to a schedule 2 controlled substance under Idaho code. Patients who are 21 or older
with certain defined diagnoses, including cancer, ALS, AIDS, wasting syndrome, Crohn’s disease, epilepsy,
multiple sclerosis, debilitating seizures, and terminal illness, would be eligible to be approved by a qualifying
medical practitioner to apply for a medical cannabis card. Medical cannabis cards would be valid for the
period recommended by the medical practitioner, up to a maximum of one year, upon which a renewal must be
sought. Qualifying medical practitioners would be those practitioners that are currently authorized to prescribe
Schedule 2 controlled substances in Idaho. Upon receipt of a medical cannabis card and a recommendation from
a qualifying medical practitioner, the cardholder could then obtain cannabis from authorized medical cannabis
pharmacies. This legislation further provides that up to 28 medical cannabis pharmacies throughout Idaho may
be authorized by the Board of Pharmacy to dispense medical cannabis in amounts not to exceed a 30-day supply,
or a 60-day supply if there is no such pharmacy within 100 miles of the cardholder’s residence. An electronic
verification system would be operated by the Board of Pharmacy to ensure that a cardholder is not purchasing
an amount exceeding the maximum allowed amount of cannabis. This legislation would allow a maximum
total amount of 2 grams of THC, to be dispensed by a pharmacist or registered nurse approved by the Board of
Pharmacy, per month per patient, if such form is dispensed in liquid or solid form. However, up to 10 grams of
THC would be permitted for those with cancer or terminal illness diagnoses. All cannabis must be in measured
dosage form, wherein the package (which must be blister-seal or tamper-evident) indicates the amount of THC
and CBD contained therein. If authorized by a medical practitioner, up to 30 grams of unprocessed cannabis
flower may be dispensed containing up to 22% THC, but no smoking of cannabis in public or in view of the
public is permitted. Should a medical cannabis cardholder sell or provide their cannabis to a non-cardholder,
they would be guilty of a criminal offense under existing law, and upon court conviction, the Department
of Health and Welfare would permanently revoke the medical cannabis card. No growing or production of
cannabis in Idaho would be permitted under this legislation.
FISCAL NOTE
Using projections based upon states that have legalized only medical cannabis, implementation of the proposed
legislation would yield up to $33 million in annual sales tax revenue. In addition, an excise fee of 2% on sales
will be allocated to cover administrative costs of the program, which would yield up to an additional $11 million
that would be allocated to cover any ongoing administration costs incurred by the impacted government entities
and thus assure at least cost neutrality. On an ongoing basis, this legislation is expected to yield substantial
positive revenue to the General Fund in the range of $20 - $33 million per year. Before such revenue is received,
however, there are up-front costs to structure the program. Such anticipated costs include: • Acquisition and
maintenance of an electronic verification system to be operated by the Board of Pharmacy, with an initial
estimated purchase price of $225,000. There would be an estimated annual maintenance cost of $75,000, but
excise revenues would likely have begun to flow to cover such ongoing maintenance costs prior to the time
they would be incurred. • Addition of one FTE to the Board of Pharmacy to serve as the program manager, at
an estimated annual cost of $95,000.
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/09/2021, 8:22 AM
Revenue from the program would cover this cost over time, however there would be a start-up period where
such revenue has not yet been received and would have to be covered by general funds, to be reimbursed
from program revenues once sales commence in Idaho. It is anticipated that the processing of registrations for
the new medical cannabis pharmacies can be achieved with current Board of Pharmacy staff, and that fees for
registration of the medical cannabis pharmacies will be set at a level to cover registration costs. • Applicants for
a medical cannabis card will pay an application fee to be determined by the Department of Health and Welfare
that is anticipated to cover the ongoing administrative costs of overseeing the issuance, renewal and termination
of cards. Once this legislation is fully implemented, there is no expected negative impact to the general fund or
any other government fund. However, there will be a start-up period during which The Department of Health
and Welfare could incur up to $1 million in administrative costs to establish the cannabis card issuance program.
There is no permanent negative impact to the general fund from this legislation, and an annual positive impact
of $20-$33 million per year is expected. There are, however, one-time start-up costs to structure the program
up to approximately $1.3 million that would be recouped from application fees and excise tax revenues once
there are actual sales in Idaho starting in 2022.
Contact:
Representative Ilana Rubel
Representative Mike Kingsley
(208) 332-1000
DISCLAIMER: This statement of purpose and fiscal note are a mere attachment to this bill and prepared by a proponent
of the bill. It is neither intended as an expression of legislative intent nor intended for any use outside of the legislative
process, including judicial review (Joint Rule 18).
Statement of Purpose / Fiscal Note Bill SOP/FN INTRODUCED: 02/09/2021, 8:22 AM


Statutes affected:
Bill Text: 37-2705, 37-2707, 37-2732, 37-2732B