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Oregon Health Authority Finalizes Rules for Psilocybin Services Act

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Oregon officials finalized rules for the state’s psilocybin law just a few days before the end-of-year deadline.

The Oregon Health Authority (OHA) approved its final rules for the Oregon Psilocybin Services Act on Dec. 27. The Act was originally created through the passing of Ballot Measure 109 in November 2020, which was later codified into law as ORS 475A.

The OHA’s final rules were created through recommendations from the Oregon Psilocybin Advisory Board, the Rules Advisory Committee, and public comments. Initially the OHA released its first subset of rules in May 2022, and with the final rules now in place, Oregon Psilocybin Services (OPS) will begin accepting applications for four license types starting on Jan. 2, 2023.

According to a letter co-written by André Ourso, Administrator of the Center for Health Protection, and Angie Allbee, Section Manager for OPS:

“OPS received over 200 written comments and six hours of comments shared in the public hearings during the November 2022 public comment period,” wrote Ourso and Allbee. “These comments helped to further refine and improve the rules, which have now been adopted as final. The final rules are a starting place for the nation’s first regulatory framework for psilocybin services, and we will continue to evaluate and evolve this work as we move into the future.”

These new rules include an option for microdosing with the hope that it will “increase access, equity, and affordability while ensuring public safety.” “The final rules on duration of administrative sessions have been revised to create a new tier for subperceptual doses. These doses are defined as products containing less than 2.5 mg of psilocybin analyte. After a client’s initial session, the minimum duration for a subperceptual dose of 2.5 mg of psilocybin analyte or less is 30 minutes.”

The OPS also established rules to create translated materials in English, Spanish, along with interpretation materials to best serve a wide variety of potential patients. The agency also created numerous rules to address confidentiality of client data, improvements to the application form, and certain limitations for applicants if they have recently had thoughts about causing harm to themselves, or are pregnant or breastfeeding.

As for fees, the OPS will offer less expensive options to those who qualify, with the opportunity to consider making the service more affordable in the future. “The final rules include reduced license fees for applicants who are veterans, receiving social security income, receiving food stamp benefits, or are enrolled in the Oregon Health Plan,” the OPS letter states. “Creating a more complicated tiered license fee structure is not feasible due to the work required to identify appropriate tiers and evaluate license applications and supporting documentation. This work would require more staff capacity, which would result in higher license fees overall.”

With applications opening in less than a week, the OPS letter signs off with a hopeful statement. “OPS will strive to support applicants in navigating license application requirements and will continue to provide technical assistance as we launch the nation’s first regulatory and licensing framework for psilocybin services,” the letter concludes.

Meanwhile in cannabis, end-of-year analysis discuss the past year’s oversupply issues. The Oregon Office of Economic Analysis (OEA) released a forecast in December covering a wide variety of businesses in Oregon, including cannabis. “Now, this is great news for consumers who can enjoy widely available products at low prices,” OEA economists wrote about the cannabis industry. “This is bad news for firms trying to operate a profitable business. One challenge there is even as businesses do leave the market, to date there has always been another willing to step in and take their place.”

Source: https://hightimes.com/news/oregon-health-authority-finalizes-rules-for-psilocybin-services-act/

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New Mexico cannabis operator fined, loses license for alleged BioTrack fraud

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New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.

The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.

Golden Roots operates the The Cannabis Revolution Dispensary.

The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.

The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.

Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.

After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.

In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.

The company requested a hearing, which the regulator scheduled for Sept. 1.

At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.

Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.

Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.

The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:

Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.

Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/

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Marijuana companies suing US attorney general in federal prohibition challenge

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Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.

According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”

Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.

The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”

The companies want the case to go before the U.S. Supreme Court.

They hired prominent law firm Boies Schiller Flexner to represent them.

The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.

Similar challenges to the federal Controlled Substances Act (CSA) have failed.

One such challenge led to a landmark Supreme Court decision in 2005.

In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.

In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.

Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.

“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.

“Moreover, the facts on which those precedents are based are no longer true.”

Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”

While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.

“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”

Source: https://mjbizdaily.com/marijuana-companies-suing-us-attorney-general-to-overturn-federal-prohibition/

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Alabama to make another attempt Dec. 1 to award medical cannabis licenses

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Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.

The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).

Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.

Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.

That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.

Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.

Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.

A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.

Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/

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