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Bipartisan Senate Bill Would Give Marijuana Businesses Access To Insurance Coverage

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Marijuana businesses would gain greater access to insurance policies under a bipartisan bill introduced in the Senate on Monday.

The Clarifying Law Around Insurance of Marijuana (CLAIM) Act would address one of several obstacles that cannabis firms face under the federal framework of prohibition, which currently restricts their ability to gain property, casualty and title insurance coverage.

Sen. Bob Menendez (D-NJ), senior member of the Senate Banking Committee, is sponsoring the legislation with cosponsoring Sens. Rand Paul (R-KY), Jeff Merkley (D-OR) and Kevin Cramer (R-ND).

The bill’s introduction comes one day before the Senate Banking Committee will meet to discuss separate bipartisan legislation that would protect banks that service cannabis businesses from being penalized by federal financial regulators.

Under the CLAIM Act, insurers couldn’t be penalized for, or discouraged from, providing coverage to cannabis businesses or those that indirectly work with the industry such as lawyers or property managers. Those insurance policies couldn’t be terminated or limited simply due to its association with a state-legal cannabis market, either.

Further, federal entities wouldn’t be able to “recommend, incentivize, or encourage an insurer not to engage in the business of insurance in connection with a policyholder, or downgrade or cancel the insurance and insurances services offered to a policy holder solely because” they are a marijuana business, according to text of the legislation.

The bill also provides protections for employees of insurers, affirming that they could not be held liable just because they work with a cannabis company.

“Current federal law prevents these small business owners from getting insurance coverage, and without it, they can’t protect their property, employees, or customers,” Menendez said in a press release. “We can solve this problem with legislation that allows insurance companies to provide coverage to these enterprises without risk of federal prosecution or other unintended consequences.”

Paul added that “the principles behind the CLAIM Act are simple: respect the voices of the states and their people and stop shutting out legitimate businesses from obtaining basic protections.”

“The states are making their own decisions on these issues, and it’s time for the federal government to accept that,” he said.

Cramer argued that “federal law should not prohibit access to insurance for employees of local businesses these states voted to support, nor should it prohibit employers from acquiring insurance that protects their stores.”

The senator, who raised cannabis businesses’ financial services access problems during a Banking Committee hearing in February, said that the marijuana legalization movement has made it necessary for lawmakers to “ensure these businesses can fully operate just as any other legal small business would.”

Supporters of the legislation argue that providing insurance access to these businesses would mitigate safety risks and prevent the companies from being denied bank financing, which can occur when the businesses lack insurance coverage.

“The cannabis industry should be able to access insurance services just like any other agricultural commodity and related industries, and we are happy to support this legislation introduced by Sen. Menendez,” Morgan Fox, media relations director for the National Cannabis Industry Association, told Marijuana Moment. “There are currently only a very few forward-thinking insurance companies willing to work in the cannabis space and provide these farmers and the businesses that service them the peace of mind that comes with protection from unforeseen hardships or disasters.”

“We’ve seen from the impact of wildfires in the fertile cannabis growing areas of California and elsewhere over the last several years just how necessary this bill is to the long-term health and sustainability of the industry,” he said.

“In America, people and businesses need insurance, whether it has to deal with marijuana makes no difference,” Justin Strekal, political director of NORML, told Marijuana Moment. “Ultimately, Congress must amend federal policy so that these growing numbers of state-compliant businesses, and those millions of Americans who patronize them, are no longer subject to policies that needlessly place them in harms way. Cannabis businesses ought to be held to the same standards as other commercial enterprises.”

New Jersey Gov. Phil Murphy (D), who recently signed legislation expanding the state’s medical cannabis program, also weighed in on Menendez’s bill in a press release.

“It is our responsibility to make sure that businesses associated with this life-changing medical treatment are treated similarly to other medical services providers,” Murphy said. “I thank Senator Menendez for introducing legislation that will protect the access of these businesses to insurance. We must do everything in our power to ensure patients have access to treatment.”

Read the text of the cannabis insurance bill below:

Marijuana Insurance Bill by Marijuana Moment on Scribd

This piece was updated to include comments from Paul and Cramer.

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Mississippi Supreme Court Overturns Medical Marijuana Legalization Ballot That Voters Approved

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A voter-approved initiative to legalize medical marijuana in Mississippi has been overturned by the state Supreme Court.

On Friday, the court ruled in favor of a Mississippi mayor who filed a legal challenge against the 2020 measure, nullifying its certification by the Secretary of State. The lawsuit was unrelated to the reform proposal itself, but plaintiffs argued that the constitutional amendment violated procedural rules in place.

While the court acknowledged that a “strong, if not overwhelming, majority of voters of Mississippi approved Initiative 65” to legalize medical cannabis in the state, Madison Mayor Mary Hawkins Butler’s (R) petition was valid for statutory reasons.

Madison’s challenge cites a state law stipulating that “signatures of the qualified electors from any congressional district shall not exceed one-fifth (1/5) of the total number of signatures required to qualify an initiative petition for placement upon the ballot.” But that policy went into effect when Mississippi had five congressional districts, and that’s since been reduced to four, making it mathematically impossible to adhere to.

The state pushed back against the lawsuit and argued that a plain reading of the state Constitution makes it clear that the intention of the district-based requirement was to ensure that signatures were collected in a geographically dispersed manner—and the result of the campaign met that standard.

But in the court’s ruling released on Friday, the justices said that their hands were tied. The legislature or administration might be able to fix the procedural ballot issue, but it had to follow the letter of the law.

“We find ourselves presented with the question squarely before us and nowhere to turn but to its answer,” the decision states. “Remaining mindful of both the November 3, 2020 election results and the clear language in section 273 seeking to preserve the right of the people to enact changes to their Constitution, we nonetheless must hold that the text of section 273 fails to account for the possibility that has become reality in Mississippi.”

In sum, a Census-driven change in the number of congressional districts in Mississippi “did, indeed, break section 273 so that, absent amendment, it no longer functions,” meaning there’s no legal way to pass a constitutional ballot initiative in the state.

“Whether with intent, by oversight, or for some other reason, the drafters of section 273(3) wrote a ballot-initiative process that cannot work in a world where Mississippi has fewer than five representatives in Congress. To work in today’s reality, it will need amending—something that lies beyond the power of the Supreme Court.”

“We grant the petition, reverse the Secretary of State’s certification of Initiative 65, and hold that any subsequent proceedings on it are void,” the court ruled.

One justice who dissented said that the district-based requirement is arbitrary as it concerns Mississippi elections. While the federal government defines the state as having five congressional districts, the state Constitution “lays out the five districts,” and “there have been zero changes to the five districts” as far as the state’s laws are concerned.

In any case, this marks a major defeat for cannabis reform activists in the state who collected more than 214,000 signatures for their measure and saw 68 percent of voters approve it last year.

Under the voter-approved initiative, patients with debilitating medical issues would have been allowed to legally obtain marijuana after getting a doctor’s recommendation. The proposal included 22 qualifying conditions such as cancer, chronic pain and post-traumatic stress disorder, and patients would have been able to possess up to 2.5 ounces of marijuana per 14-day period.

There was an attempt in the legislature to pass a bill to legalize medical marijuana in the event that the court overruled the voter-approved initiative, but it failed to be enacted by the session’s end.

This is the latest state Supreme Court setback to affect cannabis reform efforts.

Last month, the Florida Supreme Court dealt a critical blow to marijuana activists working to legalize marijuana in the state—killing an initiative that hundreds of thousands of voters have already signed and forcing them to start all over again if they want to make the 2022 ballot.

While a Nebraska campaign collected enough signatures to qualify a reform initiative in 2020, the state Supreme Court shut it down following a legal challenge. It determined that the measure violated the state’s single-subject rule, much to the disappointment of advocates.

Read the Mississippi Supreme Court ruling on the medical cannabis initiative below: 

Mississippi Supreme Court m… by Marijuana Moment

Congressional Bill Filed To Protect Marijuana Consumers From Losing Public Housing

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Congressional Bill Filed To Protect Marijuana Consumers From Losing Public Housing

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A congresswoman on Thursday reintroduced a bill that would allow people living in federally assisted housing to use marijuana in compliance with state law without fear of losing their homes.

As it stands, people living in public housing are prohibited from using controlled substances in those facilities regardless of state law, and landlords are able to evict such individuals. But the bill from Rep. Eleanor Holmes Norton (D-DC) would change that.

It would provide protections for people living in public housing or Section 8 housing from being displaced simply for using cannabis in states that have legalized it for medical or recreational purposes.

“Individuals living in federally assisted housing should not be denied admission, or fear eviction, for using a legal product,” Norton said on Thursday. “Adult use and/or medical marijuana is currently legal in 36 states and the District of Columbia, and over 90 percent of Americans support legalized medical marijuana.”

The legislation would also require the head of the Department of Housing and Urban Development (HUD) to enact regulations that restrict smoking marijuana at these properties in the same way that tobacco is handled.

“HUD, like DOJ, should not be allowed to enforce federal marijuana laws where states have taken action to legalize marijuana,” the congresswoman said, referring to a congressionally approved rider that prevents the Department of Justice from interfering with state medical cannabis laws.

Norton filed earlier versions of the Marijuana in Federally Assisted Housing Parity Act in 2018 and 2019, but they did not receive hearings or votes.

In 2018, a Trump administration official said that she was working to resolve conflicting federal and state marijuana laws as it applies to residency in federally-subsidized housing, but it’s not clear what came of that effort.

Rep. Alexandria Ocasio-Cortez (D-NY) also raised the issue during a committee hearing in 2019, pressing former HUD Secretary Ben Carson on policies that cause public housing residents and their families to be evicted for committing low-level offenses such as marijuana possession.

She pointed to two specific HUD policies: the “one strike” rule, which allows property managers to evict people living in federally assisted housing if they engage in illicit drug use or other crimes, and the “no fault” rule, which stipulates that public housing residents can be evicted due to illicit drug use by other members of their household or guests—even if the resident was unaware of the activity.

Ocasio-Cortez and then-Sen. Kamala Harris (D-CA) also filed legislation that year that would protect people with low-level drug convictions from being denied access to or being evicted from public housing.

Sen. Jeff Merkley (D-OR) also introduced an affordable housing bill last year that included a provision to prevent landlords from evicting people over manufacturing marijuana extracts if they have a license to do so.

Read the text of the marijuana housing legislation below: 

Norton cannabis housing bill by Marijuana Moment

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FDA Clears Researchers To Study MDMA Use By Therapists Being Trained In Psychedelic Medicine

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The Food and Drug Administration (FDA) has already authorized clinical trials into the therapeutic potential of MDMA for patients with post-traumatic stress disorders—but now it’s given the green light to a psychedelics research institute to expand its studies by administering the substance to certain therapists.

Volunteer therapists who are being trained to treat people with PTSD will be able to participate in the Phase 1 trials to gain personal experience with the treatment option. This is a complementary research project that comes as the Multidisciplinary Association for Psychedelic Studies (MAPS) is in the process of conducting Phase 3 trials involving people with the disorder.

The development comes months after Canadian regulators announced that certain therapists would be allowed to take psilocybin in order to gain a better understanding of the psychedelic when treating patients.

MAPS sought permission to proceed with the therapist-specific trials in 2019, but FDA placed them on a 20-month hold because of concerns about the merits, risks and credentials of investigators. MAPS appealed that hold, providing evidence about the study’s scientific value and ability of its staff, and FDA cleared them on Tuesday.

The organization “chose to dispute” FDA’s hold not just because of the impact it had on the planned studies, “but in an attempt to resolve an ongoing issue with the FDA regarding investigator qualifications across studies,” it said in a press release on Wednesday.

“While the term ‘dispute’ may seem adversarial, this process can actually strengthen the relationship and trust between us and our review Division and ensures the Division has support on this project from the [FDA] Office of Neuroscience,” MAPS Public Benefit Corporation (PBC) CEO Amy Emerson said. “This decision demonstrates how our strategic, data-driven strategy in challenging the FDA rulings can be successful.”

Now MAPS is able to launch the Phase 1 clinical trials into MDMA-assisted therapy for therapists.

It will be designed to “measure development of self-compassion, professional quality of life, and professional burnout among clinicians delivering the treatment to patients,” the association said.

Getting personal experience with the substance “is widely considered to be an important element in preparation and training to deliver psychedelic-assisted therapies.”

This will “support the goals of the MDMA Therapy Training Program to provide comprehensive training to future providers,” and it “builds capacity to deliver quality, accessible care to patients, pending approval of MDMA-assisted therapy as a legal prescription treatment,” MAPS PBC Director and Head of Training and Supervision Shannon Carlin said.

FDA first granted MAPS’s request for an emergency use authorization for MDMA in PTSD in 2017. The organization expects to complete its Phase 3 trails in 2022.

The scientific expansion move also comes as the psychedelics decriminalization movement continues to build in the U.S.

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