Business
States give marijuana data to Biden administration for rescheduling review
At least five states with medical marijuana programs have shared key data – including the products patients are using and how they are affected – with U.S. health regulators as part of the Biden administration’s review of whether to remove marijuana from the federal government’s list of the most dangerous drugs, MJBizDaily has learned.
The state data sent to the U.S. Food and Drug Administration and the Department of Health and Human Services (HHS) offers federal researchers a wider and deeper look into marijuana use and its medical potential than most peer-reviewed studies available to researchers, experts told MJBizDaily.
In sharing the data, officials hope to influence the ongoing federal review of cannabis’ status under the Controlled Substances Act (CSA), which still serves as an immovable barrier to long-awaited federal marijuana reform, including interstate commerce and tax relief.
President Joe Biden ordered the review last fall.
The process ultimately could lead to lower federal taxes for cannabis companies and better access to traditional financial services as well as legal interstate commerce and, possibly, federal marijuana legalization – although the final outcome is far from clear.
So far, Illinois, Maryland, Massachusetts, Minnesota and Utah have shared information with federal health regulators about marijuana use gleaned from their state programs, officials from those markets confirmed.
“This is going to be some of the most important data considered,” predicted Jahan Marcu, a published researcher who earned a Ph.D. examining the endocannabinoid system and is serving as scientific adviser to the Coalition for Cannabis Scheduling Reform (CCSR).
The CCSR is a collection of major multistate operators seeking to encourage rescheduling or descheduling marijuana.
States shared the insight into marijuana use and MJ products at the encouragement of the Cannabis Regulators Association, an organization comprised of government officials overseeing state programs.
The revelation that states are participating in the administrative rescheduling review offers a rare peek into that process, which federal health officials have kept a near secret so far, observers in Congress and on Capitol Hill said.
Asked previously what studies or data officials are weighing, spokespeople for the federal health agencies have declined to elaborate.
Separately, a spokesperson from the U.S. Food and Drug Administration did not respond to an MJBizDaily request for comment this week.
“So much money has been put into understanding the risks of illicit cannabis,” Marcu noted.
By comparison, there’s been very little research into legal commercial marijuana.
“With state-level data, you’re talking about what products people are using, any health effects – that information is so important,” he added. “In some ways, that’s what Big Pharma does.”
Surveys say
“We shared a subset of our data – minus any identifying information – with the FDA,” David Rak, the research manager at the Minnesota Department of Public Health’s Office of Medical Cannabis, told MJBizDaily via email.
“We collect data from our patients every time they go to make a purchase at a dispensary (Patient Self Evaluation), and offer an optional survey at fixed intervals (Patient Experience Survey).
“So, we have a fair amount of data to analyze.”
Minnesota’s data also includes reports of adverse events, such as prescription-drug interactions.
“In general, we’ve had very few adverse events reported,” Rak said.
According to Rak, the FDA has yet to respond to the states that shared information.
Massachusetts officials “submitted data and information to the U.S. Food and Drug Administration as part of its review of cannabis’s scheduling status, including conditions approved for medicinal cannabis use, cannabinoid profiles of medical-use products, and frequency and quantity of medical patient purchases from the medical-use market,” a spokesperson for the state Cannabis Control Commission told MJBizDaily via email.
“We look forward to continuing to work with our partners at the state and federal level to encourage additional research and data-sharing, and ultimately impact nationwide policy.”
Unique source
In an ongoing paradox that Congress has yet to untangle, current federal drug laws thwart and discourage research into cannabis.
The marijuana research bill that Biden signed into law last fall – drafted by one of the country’s most prominent anti-legalization organizations – has not yielded new research protocols nor new sources of research-grade cannabis.
Critics have told MJBizDaily that the research bill is failing by design.
Meanwhile, federal officials have repeatedly said more research is necessary before marijuana prohibition can be weakened or undone.
The little marijuana research that does go on in the U.S. typically examines cannabis grown by U.S. Drug Enforcement Administration-approved suppliers.
Experts agree this supply does not bear much resemblance to the marijuana available in state-legal medical dispensaries.
When determining a drug’s appropriate classification under the CSA, the FDA employs what’s called an “eight-factor analysis.”
The eight factors considered are:
In another demonstration of how marijuana’s legal status stymies research that could change that status, there are a limited number of peer-reviewed academic studies that the FDA would traditionally rely on for the eight-factor analysis process, said Gillian Schauer, executive director of the Cannabis Regulators Association.
“A number of state medical cannabis programs have rich data sources around patient use of cannabis, clinical recommendations for medical cannabis, adverse events (or lack thereof), and more,” she said via email.
“These data are typically not collected for academic or research purposes but rather for consumer safety, program improvement, and regulatory reasons.”
Those states that haven’t yet shared data are encouraged to do so, Schauer added.
“It is imperative that these data are shared with the FDA so they can conduct the 8-factor analysis with data not only from academia, but from what is happening in practice on the ground in states and territories.”
‘Nobody can really say’
In announcing his administration’s rescheduling review last October, Biden noted in a statement that federal law “currently classifies marijuana in Schedule 1 of the Controlled Substances Act, the classification meant for the most dangerous substances.
“This is the same schedule as for heroin and LSD, and even higher than the classification of fentanyl and methamphetamine – the drugs that are driving our overdose epidemic.”
For most laypeople as well as Biden – and many lawmakers and officials who have decried the conflict between state and federal MJ laws as well as the Nixon-era declaration that marijuana is more dangerous than heroin – the idea that cannabis should be reclassified from Schedule 1 is obvious.
Schedule 1 is the category reserved for drugs with a high potential for abuse and no medical value.
Less obvious is how far federal health officials will go in their recommendation, which is due to the DEA by the end of the year, and whether law enforcement officials will take heed.
“What nobody can really say is what the scientists (at the FDA and HHS) are going to look at and what will be persuasive,” said Andrew Freedman, a senior vice president at influential Washington DC-based law and lobbying firm Forbes Tate and the executive director of the Coalition for Cannabis Policy, Education, and Regulation.
That’s also true of scientific studies. “How persuasive they will find anecdotes at the state level, I think, will be harder to determine,” Freedman added.
“The other thing that’s going to confuse this analysis is, well, what ‘cannabis’ are we talking about?” he added.
“Are we talking about someone who uses shatter three times a day, or someone who smokes half a joint with a friend on a Friday night?
“Those are two different versions of risk. Cannabis is not one thing, even though it’s scheduled as one thing.”
Most experts agree that health officials are unlikely to remove marijuana from the Controlled Substances Act entirely.
That might satisfy some major cannabis companies, as the notorious Section 280E of the federal tax code – which bars marijuana operators from taking basic deductions for business expenses – does not apply to drugs classified Schedule 3 or lower.
But it won’t satisfy advocates or many regulators, whose state frameworks aren’t set up for drugs controlled at that level, which are typically sold at pharmacies.
“This data is going to be used to support some sort of showing that there is a medical benefit,” said Griffen Thorne, a Los Angeles-based attorney at Harris Bricken.
“Everybody knows there is some medical benefit, at least for pain if for nothing else.”
But will that convince federal regulators? It’s still anyone’s guess.
“It’s hard to deduce what the federal government is doing,” Thorne noted.
Source: https://mjbizdaily.com/states-give-marijuana-data-to-biden-administration-for-rescheduling-review/
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
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:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
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/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
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.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
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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