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F I S C A L I M P A C T R E P O R T

SPONSOR SFL

ORIGINAL DATE

LAST UPDATED

3/13/07

HB

SHORT TITLE

Lynn and Erin Compassionate Use Act

SB 523/SFLS

ANALYST Hanika Ortiz

ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT (dollars in thousands)

FY07

FY08

FY09 3 Year

Total Cost

Recurring

or Non-Rec

Fund

Affected

Total

$115.0

Recurring General

Fund

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

LFC Files

SUMMARY

Synopsis of Bill

The Senate Floor Substitute for Senate Bill 523 enacts the Lynn and Erin Compassionate Use

Act which permits a “practitioner" to prescribe “medical cannabis" to a “qualified patient" with

“debilitating medical conditions". The Act requires DOH to establish rules by October 1, 2007

for the medical use of cannabis; the issuance of appropriate identification cards; and, develop a

distribution system for medical cannabis. The Act further requires the Secretary of Health to

establish an advisory board consisting of eight medical practitioners.

The substitute bill permits prosecution of a certified patient who is driving while under the

influence of medical cannabis, using medical cannabis in a school bus or on school grounds, at a

place of employment or and in public parks and recreation areas, etc.

The substitute bill exempts patients, patients’ primary caregivers, licensed physicians and

licensed producers from arrest or prosecution under state law for manufacturing or possession of

medical cannabis if acting within the program.

The substitute bill exempts any property used in connection with the medical use of cannabis

from civil forfeiture. The bill permits both civil and criminal prosecution of licensed producers

under state law who sell, distribute, dispense or transfer cannabis to uncertified persons or who

obtain or transport cannabis outside of New Mexico.

Senate Bill 523/SFLS – Page

2

The substitute bill also amends provisions within 30-31-6 Schedule I and 30-31-7 Schedule II of

the Controlled Substances Act by expanding on the exclusion criteria for qualified patients under

the Lyn and Erin Compassionate Use Act.

FISCAL IMPLICATIONS

There is no appropriation associated with this bill to assist DOH with implementing policies and

procedures for the medical use of cannabis. DOH has estimated that costs to implement a

program will be approximately $115,000.

The courts report there will be a minimal administrative cost for statewide update, distribution

and documentation of statutory changes. Any additional fiscal impact on the judiciary would be

proportional to the enforcement of this law and commenced prosecutions. New laws,

amendments to existing laws and new hearings have the potential to increase caseloads in the

courts, thus requiring additional resources to handle the increase.

SIGNIFICANT ISSUES

The growing, distribution and use of cannabis will still be subject to federal laws and code. The

Office of the Attorney General has noted that until such time as the U. S. Attorney General or the

Congress make possession of medical cannabis lawful under federal law, a contrary state law

gambles with the personal liberty of those who use medical cannabis as authorized by state law

but that still subjects them to criminal prosecution under federal law.

Since 1996, eleven states have legalized medical cannabis use: Alaska, Arizona, California,

Colorado, Hawaii, Maine, Nevada, Oregon, Rhode Island, Vermont, and Washington. Eight of

the eleven did so through the initiative process, Hawaii's law was enacted by the legislature and

signed by the governor in 2000, Vermont's was enacted by the legislature and passed into law

without the governor's signature in May 2004, and Rhode Island's was enacted overriding the

governor's veto in January 2006.

The most frequently specified illnesses covered in other states under medical cannabis laws are:

cancer (21 states), glaucoma (19 states), pain/chronic illness (8 states), and HIV/AIDS (7 states).

Seven states enacted laws that apply to all conditions and four states enacted their laws after a

1999 Institute of Medicine report advocated the efficacy of medicinal cannabis to relieve some

symptoms for some people. Four states do not specify any illnesses or symptoms to which their

statutes apply. (RAND Drug Policy Center, 2003)

Despite state legalization of medical cannabis, on June 6, 2005, the US Supreme Court ruled 6 to

3 that the federal government can arrest patients who use medical cannabis legally under their

state laws.

PERFORMANCE IMPLICATIONS

The bill fails to address the issue of interstate transport of cannabis by certified patients or their

primary caregivers.

The Board of Pharmacy will not be involved in the licensure of the producer or the distribution

settings designated by DOH. Board of Pharmacy laws and rules are tied specifically to the

Senate Bill 523/SFLS – Page

3

federal requirements for licensure.

ADMINISTRATIVE IMPLICATIONS

The bill does not limit the use of medical cannabis by qualified individuals except for public

areas, work place of the patient or caregiver, school bus, public vehicle, and school grounds. The

Act allows primary caregivers to care for qualified patients and possess the patient’s adequate

supply. Qualified patients may be residing in Licensed Nursing Homes, Boarding Homes,

Residential Care Facilities, Hospice, Home Health Care Agencies, and even

Correctional/Detention Facilities.

TECHNICAL ISSUES

The substitute bill requires that DOH have rules in place by October 1, 2007 to administer the

program; however the deadline may not be realistic for establishing regulations for a new

program for which DOH lacks prior experience or expertise.

OTHER SUBSTANTIVE ISSUES

Severe chronic pain, anorexia, and spasticity cause significant suffering among certain people

living with cancer, HIV/AIDS, and neuromuscular diseases, including multiple sclerosis and

spinal cord injury. There are approximately 6,553 New Mexicans diagnosed with cancer each

year, approximately 2,775 cancer patients die each year, and approximately 4,550 New Mexicans

are currently living with HIV/AIDS. In some instances, the suffering associated with symptoms

cannot be adequately controlled by the use of available prescription medications or the side

effects of the prescription medications are intolerable. Many patients have found that these

symptoms are well controlled by the use of medical cannabis when relief is not provided by

prescription medications, and scientific evidence provides reasonable support for the contention

that cannabis can play a therapeutic role in the treatment of these serious medical conditions.

The American Association of Retired Persons (AARP) conducted a national medical cannabis

poll in November 2004. The results of this poll indicate that nearly 75% of older Americans

support providing access to medical cannabis.

A New Mexico Policy Reform Study conducted in 2001 found that 81% of New Mexico voters

support making medical cannabis available to seriously or terminally ill patients in order to

alleviate their pain and suffering from illnesses such as cancer, AIDS, and multiple sclerosis.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL

State laws that make possession, use or distribution of cannabis a crime will remain in effect,

permitting state prosecution for such acts regardless of medical use.

AHO/nt:csd