Connect with us

Politics

Texas Senate Committee Approves House-Passed Medical Marijuana Expansion Bill

Published

on

By Alex Samuels, The Texas Tribune

Even as the Senate stonewalls a handful of bills aimed at lessening criminal penalties for possession of marijuana, an upper chamber committee on Friday advanced legislation that aims to vastly expand who has access to medical cannabis in the state.

As filed, state Rep. Stephanie Klick’s House Bill 3703 would add multiple sclerosis, epilepsy and spasticity to the list of debilitating medical conditions that qualify for cannabis oil. The progress on her bill comes four years after Klick authored legislation that narrowly opened up the state to the sale of the medicine.

The bill requires approval by the full Senate chamber before it can return to the Texas House, where lawmakers have already approved two bills to drastically expand the Compassionate Use Program, which currently only allows the sale of cannabis oil to people with intractable epilepsy who meet certain requirements. But according to the Senate sponsor of the bill, the legislation is likely to pass the upper chamber — despite leadership once expressing aversion to relaxing the existing state program.

Several who testified before the Senate committee pleaded with the panel to advance the bill, sharing personal stories of how using cannabis oil has helped them treat a bevy of medical ailments. Lawmakers from both parties were receptive to the emotional testimony and, after more than an hour of discussion, voted unanimously to send the legislation to the full Senate.

When laying out the bill in front of the Senate committee Friday, state Sen. Donna Campbell, R-New Braunfels, introduced a reworked version of the measure which further expanded which Texans have access to the medicine. In addition to the conditions already outlined by Klick, those with other illnesses like seizure disorders, amyotrophic lateral sclerosis, or ALS, terminal cancer and autism would also be eligible to obtain the medicine. The version of the bill Campbell laid out also eliminated what she called an “onerous requirement” that those wanting access to the medicine get the approval of two licensed neurologists.

Under Campbell’s version of the bill, the Texas Department on Public Safety would still have oversight of the Compassionate Use Program. Her revised bill also keeps intact the 0.5% cap on the amount of the psychoactive element in marijuana known as THC that medical cannabis products are legally allowed to contain.

“For many patients in the [Compassionate Use Program], participation in the program has been life altering,” Campbell said. “These people are our friends, our family, our neighbors. Members of our churches and in our communities have benefitted from this.”

Multiple Texans who either currently use the medicine, or felt they could benefit from access to it, spoke before the Senate committee.

“Before CBD, I had 200 seizures a day lasting 15 to 30 seconds,” said Brenham resident Julia Patterson. “It affected my grades and my social life. I couldn’t play sports. I couldn’t go to sleepovers. … After CBD oil, I’m now one year seizure free. I have my driver’s license and I’m finishing the school year with A’s.”

Still, there was a small show of opposition from a handful of parents and veterans who said they wished the legislation was more broad and included conditions like post-traumatic stress disorder.

State Sen. José Menéndez, a San Antonio Democrat who filed a medical expansion bill this legislative session that never got hearing, raised questions about the potential shortfalls of Klick’s bill.

“What happens if the Legislature does not address PTSD in this bill? What do you think is going to be the impact?” Menéndez asked Keith Crook, a retired Air Force veteran who testified on the bill.

“I’m going to bury more of my friends because this medicine saved my life,” Crook responded. “And there are people who don’t have the ability to access it or will be refused access to it because of a law.

“I’m a criminal. I use everyday. But I’m just trying to stay alive and do the right thing.”

Nearing the end of the testimony, Campbell implied that it would take more than one legislative session before Texas further expanded the number of conditions who qualify for the medicine in order to prevent “unintended consequences.”

“Anybody who watches a football game is going to root for their team and be happy when they at least get a first down,” Campbell said. “We would like to be able to include so many more diagnoses. This is more certainly a more expanded list and we will keep working with this.”

The bill still faces several more hurdles before it can be signed into law. The bill will need approval from the full Senate and then the House will have to accept the Senate’s changes — or both chambers will need to reconcile their differences on the bill’s language in conference committee.

Its chances of passage look sunny in the upper chamber, however, though Lt. Gov. Dan Patrick previously said he was “wary of the various medicinal use proposals that could become a vehicle for expanding access to this drug.” During Friday’s hearing, Campbell said Patrick “helped craft” the reworked version of the legislation. House Speaker Dennis Bonnen also told Spectrum News this week he thinks the Senate will take concepts from both medical cannabis bills passed by the House earlier — one from Klick and the other from Democratic state Rep. Eddie Lucio III of Brownsville — and “put them into one.”

Expanding the Compassionate Use Act has drawn the support of some politically powerful players since the last legislative session. In March, a new group lobbying for medical marijuana, Texans for Expanded Access to Medical Marijuana, emerged and has players with some serious clout in the Capitol — including Allen Blakemore, a top political consultant for Patrick.

The Republican Party of Texas also approved a plank last year asking the Legislature to “improve the 2015 Compassionate Use Act to allow doctors to determine the appropriate use of cannabis to certified patients.”

This article originally appeared in The Texas Tribune.

The Texas Tribune is a nonprofit, nonpartisan media organization that informs Texans — and engages with them — about public policy, politics, government and statewide issues.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.

Tom Angell is the editor of Marijuana Moment. A 15-year veteran in the cannabis law reform movement, he covers the policy and politics of marijuana. Separately, he founded the nonprofit Marijuana Majority. Previously he reported for Marijuana.com and MassRoots, and handled media relations and campaigns for Law Enforcement Against Prohibition and Students for Sensible Drug Policy. (Organization citations are for identification only and do not constitute an endorsement or partnership.)

Politics

Marijuana Banking Bill Would Save Federal Money, Congressional Budget Office Says

Published

on

The federal government would save money if a bipartisan bill to give marijuana businesses access to banks is approved, according to a report released by the Congressional Budget Office (CBO) on Friday.

The legislation, which cleared the House Financial Services Committee in a bipartisan vote of 45 to 15 in March, would change federal law to protect financial institutions that service the cannabis industry from being penalized by regulators. That reform would set off a chain of events, beginning with a likely increase in the number of banks accepting deposits from those businesses, CBO reasoned.

Assuming the bill takes effect near the end of the 2019 fiscal year, the office estimates that starting in 2022, banks would see a $1.2 billion increase in deposits, and credit union deposits would grow by $200 million. By 2029, the amounts “would rise to $2.1 billion and $350 million, respectively.”

Because those deposits would have to be insured through the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA), the CBO took into account the possibility that individual financial institutions will fail, and the estimated cost of resolving those failures is $5 million.

That said, those direct spending costs would be “offset by assessments levied on insured financial institutions,” which would amount to about $9 million.

“As a result, CBO estimates, H.R. 1595 would decrease net direct spending by $4 million over the 2019-2029 period,” the office reported.

Rep. Ed Perlmutter (D-CO), the bill’s chief sponsor, told Marijuana Moment that its enactment would have benefits beyond fiscal savings.

“Getting cash off our streets and making our communities safer will come at no cost to the federal government and actually save money while providing a much-needed long-term banking solution for legitimate marijuana businesses across the country,” he said.

Via CBO.

“This CBO score should only increase the significant momentum in Congress behind passing the SAFE Banking Act,” Neal Levine, CEO of the Cannabis Trade Federation, told Marijuana Moment. “It is now apparent that we can help diminish a serious threat to public safety at no net cost to the federal government. We look forward to the bill passing through the House and hope the Senate will follow suit.”

There are some implementation costs to take into account, CBO says. The administrative costs are estimated to be $3 million. But the FDIC and NCUA are able to charge premiums on the financial institutions they regulate to cover much of those costs. The total net administrative costs would, therefore, be about $1 million.

The Federal Reserve would also have to spend funds to implement the bill, and that would reduce remittances to the Treasury Department. Those remittances are considered revenue, which is expected to decrease by about $1 million if the legislation is implemented.

Then there are costs related to other provisions of the bill. Financial regulators would have to update and issue new guidance, which would “cost less than $500,000 over the 2019-2024 period.”

The legislation also requires the Government Accountability Office to study barriers to entry in the marijuana industry and to financial services for minority- and women-owned cannabis businesses. The costs are estimated to be less than $500,000 annually from 2020 to 2024.

The CBO also estimated that enacting the legislation “would not increase on-budget deficits by more than $5 billion in any of the four consecutive 10-year periods beginning in 2030.”

The CBO outlined “several noteworthy areas of uncertainty” that could change the calculus.

1. New guidance from federal financial regulators could be more or less stringent than existing guidance implemented under the Obama administration, which could impact the amount of deposits banks and credit unions will receive.

2. Data on cannabis-related deposits is currently “limited,” as federal restrictions have forced marijuana businesses to operate on a largely cash basis. That means CBO’s estimates on the amount of deposits financial institutions will see could end up being “greater or smaller.”

3. If those estimates do end up being different, costs associated with the bank and credit union insurance funds “could be higher or lower depending on the amount of premium collections and capital deposits and on changes in the resolution costs for financial institutions.”

Sahar Ayinehsazian, an associate attorney at Vicente Sederberg LLP who specializes in cannabis banking, told Marijuana Moment that most of the figures lined up with her expectations. However, given that many marijuana businesses have gravitated toward credit unions rather than banks, she said the estimate increase in deposits to those financial institutions may well end up being larger.

“Looking at the chances of this legislation passing from an economic standpoint, I think [the CBO score is] good news,” she said.

Other advocates agreed that the CBO estimate should help efforts to advance the bill.

“For years, cannabis advocates have been preaching the net benefits SAFE Banking would have on consumers, patients, financial institutions, regulators and taxpayers. This CBO cost estimate confirms that,” Michael Correia, director of government relations for the National Cannabis Industry Association, told Marijuana Moment. “The increase of insured deposits, coming from the added certainty this legislation brings, far outweighs the minor administrative costs to implement this bill.”

The House marijuana banking bill currently has 184 cosponsors, and a companion Senate version has 30 lawmakers signed on. The committee of jurisdiction in the upper chamber has not yet set a hearing or a vote, but pressure is increasing.

Banking associations from all 50 states urged the Senate to take up the legislation earlier this week. Other organizations that have called for a resolution to the cannabis banking dilemma include the National Association of Attorneys General, which has endorsed the bill, and the National Association of State Treasurers, representing state treasurers and finance officials, which adopted a resolution last week in favor of the legislation’s passage.

The new analysis is just the third time that the CBO, which is mandated to score bills that pass full committees, has issued a report on the economic impact of standalone cannabis legislation. The agency scored two marijuana research bills that cleared committees last year.

Federal Small Business Administration Pressed On Supporting Marijuana Industry

This story was updated to include comment from Perlmutter and Correia.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
Continue Reading

Politics

Federal Small Business Administration Pressed On Supporting Marijuana Industry

Published

on

Sen. Jacky Rosen (D-NV) pressed a federal official responsible for advocating for small businesses on Wednesday about whether existing laws and regulations are preventing the growth of state-legal marijuana markets.

The line of questioning comes as members of Congress are preparing legislation aimed at removing barriers to small business assistance for cannabis industry participants.

The senator said at a hearing of the Senate Small Business and Entrepreneurship Committee that her state’s legal industry is attracting small businesses and entrepreneurs who are selling millions of dollars of product each month. She asked Major Clark, acting chief counsel of the office of advocacy at the Small Business Administration (SBA), about the unique barriers these companies face under federal prohibition.

“Senator, that’s a difficult question,” Clark replied. “We have not actually studied the issue of marijuana in that regard, and we have not because the federal government has not yet legalized it.”

“We do, in conversations with a lot of businesses, get inquires as to what they can do and how they can do it. But to actually do an analysis of it, we have not yet done that,” he said. “I’m sure that as soon as the federal government decides to legalize this substance, we will begin to study its impact and the ability to use it in a more economical context within the state.”

Watch the conversation about small business assistance for cannabis operators at 35:50 in the video below:

Rosen followed up to get Clark’s opinion about whether marijuana companies would benefit from some of the guidelines and resources the SBA offers to small businesses in other industries.

“These types of businesses can benefit from some of these types of things, but again, because this issue is an issue that has not reached the surface of being legalized, we have actually stayed away from trying to advise these businesses on these particular aspects,” he said.

Sen. James Lankford (R-OK), chair of the committee, weighed in on the issue after the Rosen’s time expired, saying that he recognizes the difficulty that federal agencies face when it comes to regulating a controlled substance.

“It is a unique challenge dealing with a Schedule I drug on the federal side and to also know that some states, including my own, have said that they want to allow it,” Lankford said, referring to the medical cannabis law that Oklahoma voters approved in 2018. “And the federal government and the [Food and Drug Administration] continues to study it and say there’s no medicinal gain from this product.”

“It’s a Schedule I drug. I get it,” he said. “The science, and whether it is SBA or whoever it is continues to be able to deal with that.”

While lawmakers push to get marijuana businesses access to federally authorized financial services, industry advocates say that SBA-specific reform legislation may be on the horizon.

The day after Rosen questioned the SBA official about cannabis policy, Khurshid Khoja, a board member for the National Cannabis Industry Association, said at a press conference on Capitol Hill that a bill was being drafted to “essentially get SBA services for cannabis businesses and for cannabis businesses from disproportionately impacted communities.”

Watch the SBA reform discussion at about 32:15 in the video below:

“The House Small Business Committee is looking into the issue and is interested in holding a hearing and drafting legislation this summer that addresses these issues,” a cannabis policy lobbyist who didn’t wish to be named in order to discuss plans that are in development, told Marijuana Moment separately.

GOP Congressman Exposes Flaws In VA Marijuana Research Projects

Photo courtesy of Brian Shamblen.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
Continue Reading

Politics

GOP Congressman Exposes Flaws In VA Marijuana Research Projects

Published

on

Rep. Matt Gaetz (R-FL) emphasized the importance conducting clinical trials on medical marijuana at the U.S. Department of Veterans Affairs (VA) on Tuesday, a topic on which he has often focused.

He also criticized the catch-22 of VA cannabis research, arguing that while the department is able to conduct clinical trials on marijuana, it doesn’t effectively publicize those studies, leaving veterans who might be interested in participating in the dark.

The congressman started by asking whether Mike Colston, director of mental health policy and oversight at the Department of Defense, felt that giving veterans access to medical cannabis could reduce suicides.

Colston said “there’s far more research to be done” and that there’s “insufficient evidence for or against that position.”

Gaetz cited research showing reductions in opioid use in states that have loosened cannabis laws, and he questioned whether “the current offramp for opioid addiction,” which typically involves prescribing long-term opioids that are less potent and less prone to abuse, “is a more effective offramp than medical cannabis.”

“I just think those are the three evidence-based therapies right now that meet the medical bar,” Colston said, referring to bupenehprine, methadone and naltrexone. “Obviously more research can change that.”

That prompted Gaetz to expand on VA policy as it pertains to medical cannabis. He asked for confirmation that the department’s doctors cannot currently recommend marijuana to veterans in states where it’s legal.

They can’t do that because “there’s a federal law against it right now,” Keita Franklin, national director of suicide prevention at the VA, claimed. (This has been a point of contention for legalization advocates, who argue that only the VA’s own internal administrative policies, and not an overarching federal law, blocks such recommendations.)

But VA officials can conduct clinical trials on marijuana, Franklin said.

“We have two ongoing research studies going on right now in this space,” she said. “I think we are open to research, yes.”

The congressman wanted to know if the VA publishes information about these studies and where to find it. The VA official wasn’t sure—and that was exactly Gaetz’s point.

“I don’t think anyone is clear, which is the source of my frustration because I think that there are a lot of these clinical trials that are seeking veterans,” he said. “The VA, due to a lack of clarity, won’t publicize that information or make it available, and then we’re unable to do the research that Captain Colston says is necessary to advance additional options for veterans trying to get off opioids and to stop them from killing themselves.”

Lawmakers have introduced legislation this session that would allow VA doctors to issue medical cannabis recommendations and require the department to conduct clinical trials on the plant’s potential therapeutic benefits for veterans, among other cannabis and veterans-related bills.

But if the VA is mandated to research the plant, Gaetz wants the department to better publicize the studies so that would-be participants actually know about them.

Trump Official Would Rather Discuss Marijuana Than President’s Tax Returns, He Says

Photo courtesy of YouTube.

Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
Continue Reading
Advertisement

Stay Up To The Moment

Marijuana News In Your Inbox


Support Marijuana Moment

Marijuana News In Your Inbox