A bill that would require the U.S. Department of Veterans Affairs (VA) to conduct clinical trials into the therapeutic benefits of marijuana for veterans would have minimal fiscal impact, according to a new analysis from the Congressional Budget Office (CBO). However, the report seems to contain erroneous interpretations of the legislation’s provisions.
CBO said in its report, which was released on Wednesday, that a VA study into the potential impact of CBD that launched in February 2019 “would satisfy the bill’s requirement for research.” Thus, the bill wouldn’t create significant additional costs.
But text of the legislation itself indicates that the ongoing study would not satisfy its research requirements, for several reasons.
First, the cited study only covers post-traumatic stress disorder (PTSD). The bill, as approved last month by the House Veterans’ Affairs Committee, mandates that VA shall conduct clinical trials not just into PTSD, but also specifically on chronic pain as well as “other conditions.”
Second, the bill calls for studies that look into “varying forms of cannabis,” including full plant and extracts. Further, it requires an investigation into at least three marijuana varieties “with significant variants in phenotypic traits and various ratios of tetrahydrocannabinol and cannabidiol in chemical composition.” Again, the study CBO pointed to looks exclusively at synthetic CBD.
Another issue: the bill, sponsored by Rep. Lou Correa (D-CA), says the studies should involve different modes of consumption, including “topical application, combustible and non-combustible inhalation, and ingestion.” The CBD-only study does not appear to satisfy that requirement either.
Finally, while it stands to reason that a study like the one VA is currently carrying out could be a part of the broader research initiative described in the bill, it’s also the case that the VA secretary is supposed to develop an implementation plan for complying with the legislation and submit it to the House and Senate Veterans’ Affairs Committees before conducting the research.
H.R. 712, a bill to direct the Secretary of Veterans Affairs to carry out a clinical trial of the effects of cannabis on certain health outcomes of adults with chronic pain and post-traumatic stress disorder, and for other purposes https://t.co/ZZMEPIKsJj
— CBO Cost Estimates (@USCBOcostest) April 15, 2020
All of that is to say, it’s not clear that CBO’s interpretation aligns with the intent of the VA Medicinal Cannabis Research Act, which was approved in a bipartisan voice vote by the House Veterans’ Affairs Committee in March. And that could mean that its report on the fiscal impact is flawed.
Marijuana Moment reached out to CBO for comment, but a representative was not immediately available.
CBO also seemed to misinterpret another section of the bill concerning the ability of VA doctors to discuss medical cannabis with their veteran patients. The research office wrote that it “would require VA to authorize physicians and other health care providers employed by the department to provide recommendations and opinions on the use of medical marijuana to veterans who live where its use is legal under state law.”
This appears to be in reference to an amendment approved by voice vote during last month’s committee markup. But that measure, from Rep. Greg Steube (R-FL), simply protects veterans from losing federal benefits for participating in a state-legal marijuana program and stipulates that VA doctors can “discuss cannabis use” and “record such use in the medical records of the veteran,” rather than issue recommendations.
A separate bill sponsored by Rep. Earl Blumenauer (D-OR), which was also approved by the committee last month, would actually allow VA doctors to issue written recommendations for medical cannabis. CBO scored that legislation and found it would have no fiscal impact.
VA officials said during a hearing last year that they oppose both proposals.
On a related note, seven members of Massachusetts’s congressional delegation, led by Sen. Elizabeth Warren (D-MA), sent a letter to the VA secretary on Wednesday, urging him to issue a directive allowing VA doctors to issue written recommendations for medical marijuana during the coronavirus pandemic—and then, ideally, extend that policy permanently.
The reason for the urgency, they said, is because Massachusetts shut down recreational marijuana shops during the outbreak but left medical cannabis dispensaries open as essential services. Some veterans may be wary of registering as medical patients, however, out of concern that they’d lose federal benefits—so the verbal recommendations would help assuage that concern.
Photo by Aphiwat chuangchoem.
Louisiana Senate And House Both Approve Significant Medical Marijuana Expansion
The Louisiana Senate approved a bill to significantly expand the state’s medical marijuana program on Wednesday, and a committee advanced separate legislation on banking access for cannabis businesses.
The expansion proposal, which the House of Representatives approved last week, would allow physicians to recommend medical cannabis to patients for any debilitating condition that they deem fit instead of from the limited list of maladies that’s used under current law.
The Senate Health and Welfare Committee advanced the proposal last week and now the full chamber has approved it in a 28-6 vote. Before the bill heads to the desk of Gov. John Bel Edwards (D) for signature or veto, the House will have to sign off on an amendment made by the Senate to require dispensaries to record medical marijuana purchases in the state prescription monitoring program database.
As originally drafted, the bill sponsored by Rep. Larry Bagley (R) would have simply added traumatic brain injuries and concussions to the list of conditions that qualify a patient for a marijuana recommendation. But it was amended in a House committee to add several other conditions as well as language stipulating that cannabis can be recommended for any condition that a physician “considers debilitating to an individual patient.”
Under current law there are only 14 conditions that qualify patients for marijuana.
“House Bill 819 is the new standard for medical marijuana programs. The bill allows any doctor who is licensed by and in good standing with the Louisiana Board of Medical Examiners to make medical marijuana recommendations for their patients,” Bagley told Marijuana Moment. “The bill also ends the Legislature’s task of picking medical winners and losers each session, and instead allows doctors to recommend medical marijuana for any condition that a physician, in his medical opinion, considers debilitating to an individual patient.”
Bagley also introduced a House-passed bill to provide for cannabis deliveries to patients, but he voluntarily withdrew it from Senate committee consideration last week and told Marijuana Moment it’s because he felt the medical marijuana expansion legislation would already allow cannabis products to be delivered to patients like other traditional pharmaceuticals.
The delivery bill would have required a government regulatory body to develop “procedures and regulations relative to delivery of dispensed marijuana to patients by designated employees or agents of the pharmacy.”
It’s not clear if regulators will agree with Bagley’s interpretation, as doctors are still prohibited from “prescribing” cannabis and marijuana products are not dispensed through traditional pharmacies. That said, they recently released a memo authorizing dispensaries to temporarily deliver cannabis to patients during the COVID-19 pandemic, so it’s possible officials will be amendable to extending that policy on a permanent basis.
State lawmakers also advanced several other pieces of cannabis reform legislation last week.
A bill introduced by Rep. Edmond Jordan (D) to protect banks and credit unions that service cannabis businesses from being penalized by state regulators cleared the full House in a 74-20 vote.
That measure was approved by Senate Committee on Commerce, Consumer Protection and International Affairs on Wednesday, setting it up for floor action in the chamber.
Also last week, the House Labor and Industrial Relations Committee unanimously approved a resolution to establish “a task force to study and make recommendations relative to the cannabis industry projected workforce demands.”
Text of the legislation states that “there is a need to study the workforce demands and the skills necessary to supply the cannabis industry with a capable and compete workforce, including physicians, nurse practitioners, nurses, and other healthcare practitioners.”
Legislators have until the end of the legislative session on June 1 to get any of the measures to the governor’s desk.
Former Attorney General, Lawmakers And Police Leaders Call For Federal Marijuana Legalization Waivers
A task force comprised of former lawmakers, federal prosecutors and reform advocates issued a series of recommendations on Wednesday about criminal justice policy changes that should be enacted, and that includes creating a waiver system to allow states to set their own marijuana policies without federal interference.
The Council on Criminal Justice task force was established prior to the coronavirus pandemic, but its new report said the health crisis has “underscored the urgency” of the recommendations. While the group is far from the only criminal justice-minded organization to push for cannabis reform, it’s especially notable because of the backgrounds of its membership.
Sally Yates, who served as deputy attorney general and interim attorney general, is on the task force. So is former Georgia Gov. Nathan Deal (R), former Philadelphia Mayor Michael Nutter and former Washington, D.C. and Philadelphia Police Chief Charles Ramsey. Mark Holden, who was senior vice president and general counsel at Koch Industries, and David Safavian, general counsel of the American Conservative Union, are also members.
Together, the group agreed on 15 reform recommendations.
While they didn’t endorse federally legalizing cannabis outright, the group said the current conflict between local and national policy is untenable and should be addressed in the interim by creating waivers for states to proceed with marijuana legalization without the fear of federal intervention.
“The federal government must act to resolve this conflict and confusion, by creating an environment that respects sovereignty and by providing a responsible framework in which states can make policy choices,” they said. “Without federal action, the cannabis industry will continue to operate without consistent guardrails and guidance for testing, labeling, and marketing—to minors and all consumers.”
“The Task Force concludes that neither a federal crackdown nor a hands-off approach is advisable. In the absence of cannabis rescheduling, or its legalization at the federal level, the Task Force recommends that Congress and the Administration develop a state waiver process or contractual framework. Without it, states and the industry will continue to exist under an illusion of sovereignty where circumstances can change at any moment. A balanced and thoughtful accommodation from the federal government would provide confidence to states, stabilize the market, and help address many of the myriad safety and health problems.”
To implement the recommendation, the group wants the federal government to create an interagency task force including representatives of the Departments of Justice, Treasury and Health and Human Services, among other agencies. Members would be charged with creating policies and standards on best public health practices regarding issues such as product availability, testing, labeling, marketing and child-resistant packaging.
It would also lay out guidelines for banks that work with the cannabis industry as well as guidance, grant funding and assistance to aid law enforcement efforts to crack down on illicit marijuana distribution. Also recommended is an expansion of National Institute on Drug Abuse-supported research on the potential benefits and risks of cannabis as well as the effects of regulatory legal models.
New federal legislation “should provide guidance and assurances to all stakeholders legally operating under the waiver and/or contractual agreement, shielding them from civil and/or criminal liability,” the report says.
Our task force report is the culmination of hard work by the 14-member task force, composed of key leaders in the criminal justice field.
— Council on Criminal Justice (@CouncilonCJ) May 27, 2020
Beyond marijuana, the Council on Criminal Justice task force also proposed eliminating mandatory minimum sentences for all federal drug crimes in order to reduce the prison population, automatically sealing public criminal records for non-violent federal convictions “including simple possession of controlled substances, following a conviction-free period of no longer than seven years” and establishing “independent oversight of the federal prison system.”
Due to the high rate of substance use disorders in prisons, the task force also recommended enhancing access “to evidence-based treatment services” that can “help break the cycle of substance use and incarceration.” Medication-assisted treatment would be an example of such a service, the report said.
“The pandemic engulfing the world has exposed more fully than ever the deficiencies in our nation’s criminal justice system, and how those deficiencies endanger people, communities, and public safety,” Nutter said in a press release. “Let us honor the pain, suffering, and loss of life that has occurred during this crisis by sharpening and refocusing our work for change.”
Another task force that advocates are eyeing was recently formed to make criminal justice recommendations to presumptive Democratic presidential nominee Joe Biden. The candidate and Sen. Bernie Sanders (I-VT), who dropped out of the race in April, teamed up to create the group, and most members are in favor of marijuana legalization, in contrast to Biden’s current position. It remains to be seen whether they will formally recommend adopting broader cannabis reform as part of the former vice president’s platform.
Photo courtesy of Mike Latimer.
Marijuana Dispensaries Excluded From New York’s Coronavirus Loan Program
Not only are marijuana businesses excluded from federal coronavirus relief funds, but medical cannabis dispensaries in New York are also ineligible for a new COVID-19 loan program that the state is offering.
Under the New York Forward Loan Fund (NYFLF), marijuana shops are specifically excluded, alongside payday loan providers, pawn shops, strip clubs, liquor stores and astrologers. Information pages about the program don’t provide a reason for why dispensaries are considered ineligible.
“The working capital loans are timed to support businesses and organizations as they proceed to reopen and have upfront expenses to comply with guidelines (e.g., inventory, marketing, refitting for new social distancing guidelines) under the New York Forward Plan,” a description of the program states.
This eligibility requirement restrictions come despite the fact that most states, including New York, have deemed cannabis businesses as essential services that can continue to operate during the pandemic.
For the industry in the Empire State, the loan exclusion is another gut punch in a crisis. There have been widespread calls from stakeholders, advocates and legislatures to provide the market with equitable relief from the federal Small Business Administration and, while that so far has not panned out, there’s been hope that states could help fill the gap.
“Given that cannabis businesses are ineligible for federal relief, it is unconscionable for the state of New York to deny them access to state-based relief efforts,” Morgan Fox, media relations director for the National Cannabis Industry Association, told Marijuana Moment. “These businesses have been going above and beyond to provide continuous healthcare, protect jobs, and generate revenue for the state under terrible conditions just like other essential services.”
“Leaving them in the lurch like this is a tremendous disservice to the people who risked their health to provide medical cannabis to the people that need it, and will stunt the ability of the industry to recover and grow at a time when the economy needs it most,” he said.
Katie Neer, chair of the New York Medical Cannabis Industry Association and director of government relations for Acreage Holdings, told Marijuana Moment that it’s “unfortunate that medical cannabis operators, which are licensed and regulated in New York, and help thousands of patients manage a wide range of ailments, conditions, and illnesses, continue to be lumped in with other so-called ‘sin’ businesses, like pay-day loan stores, massage parlors, and strip clubs.”
“The reality is that New York’s medical cannabis program, established by the governor and Legislature in 2014, is one of the most restrictive in the nation,” she said. “As a result, the industry was struggling prior to the pandemic, even as it was deemed ‘essential’ and continues to serve patients throughout the crisis.”
“While we are eager to participate in the economic recovery at both the state and federal levels, accessing capital has long been a struggle for cannabis operators due to cannabis remaining a federally illegal schedule I drug. We applaud the state’s $100 million New York Forward Loan fund to support small businesses, but we regret not being able to participate due to inconsistencies between state and federal law. To that end, we urge the US Senate to include the SAFE Banking Act in the next federal aid package, which would improve the cannabis industry’s access to capital and ensure that state administered efforts like this one can include state-legal cannabis operators.”
It’s possible that because this loan program is the product of a private-public partnership involving several large national banks, the cannabis exclusion could be related to perceived risks associated with providing financial services to a federally illicit market.
While New York might not be extending state-level relief to cannabis businesses, lawmakers in Massachusetts are actively considering legislation that would establish a coronavirus relief program for marijuana firms and other companies that are left out of federal aid.
In the meantime, at the federal level, the House passed a COVID-19 package that does contain language that would protect banks that service cannabis businesses from being penalized by federal regulators. Advocates argue that this would mitigate the spread of the virus in a heavily cash-based industry.
Rep. Earl Blumenauer (D-OR) also introduced a bill last month that would extend SBA access to marijuana companies.
New York Gov. Andrew Cuomo (D) was recently asked why the state hasn’t legalized cannabis for adult use as a means to generate much-needed tax revenue during the pandemic. He said it’s a policy change he expects will happen, but it’s a “complicated issue and it has to be done in a comprehensive way.”