Business
Texas Bill Approved in House, Would Expand Medical MJ Eligibility, Replace THC Cap
Texas has some major changes surrounding cannabis on the horizon.
The state’s House of Representatives has given initial approval to a bill allowing doctors to recommend medical cannabis to patients as an alternative to opioids for chronic pain treatment. The bill would specifically expand eligibility for low-THC cannabis products, granting legal access to patients with “a condition that causes chronic pain, for which a physician would otherwise prescribe an opioid.”
According to the Center for Disease Control, one in five Americans live with chronic pain. In 2021, more than 106,000 people in the U.S. died from a drug-involved overdose, including illicit drugs and prescription opioids, according to the National Institutes of Health. In Texas specifically, there was an 80% increase in reported synthetic opioid-related deaths in 2021 compared to 2020, according to the Texas Workforce Commission.
Conversely, even the DEA admits that no deaths from cannabis overdose have ever occurred.
A New Chapter for the Texas Cannabis Industry?
The legislation, House Bill 1805, would also replace the THC cap established under Texas’s existing medical cannabis law. Texas’s medical cannabis law is currently CBD-only, with a cap of 1% THC for cannabis oil. Should the bill be enacted, the THC limit would shift to the volumetric dose of 10 mg. The bill further stipulates that Department of State Health Services (DSHS) regulators could approve additional debilitating medical conditions to qualify new patients for the cannabis program through rulemaking.
The bill from Rep. Stephanie Klick (R) cleared the chamber after a 121-23 vote on Tuesday, and it needs one more round of approval in the House before it can move to the Senate. If enacted, the bill would take effect on Sept. 1, 2023.
Texas NORML has also encouraged supporters in the state to reach out to lawmakers and voice their support of the reform, encouraging lawmakers to approve it. Jax James, executive director of Texas NORML, said in a news release that he is “thrilled” to see the advancement of the proposed legislation.
“Passage of this legislation will provide qualified patients with a state-sanctioned option to access a therapy that has proven to offer significant benefits,” Jones said. “Medical cannabis is an objectively safer alternative to the array of pharmaceutical drugs that it could potentially replace. I urge my fellow Texans to voice their support for this important legislation and to reach out to their Senators to encourage their backing as it moves through the legislative process.”
One of Many Recent Shifts
Of course, this move could be seen as a small step compared to other states that have enacted more wide-reaching medical cannabis legislation, or ended prohibition as a whole, though it still represents significant expansion for Texas. It’s also one of several recent moves that show Texas may be broadening its horizons when it comes to cannabis.
Texas lawmakers recently held a hearing on House Bill 218 that, if passed, would lower the penalties for possession of cannabis and cannabis concentrates. Last month, the Texas House Criminal Jurisprudence Committee also voted 9-0 to pass a bill that would decriminalize possession of small amounts of cannabis.
On Election Day 2022, five Texas cities also voted to decriminalize low-level cannabis possession: Denton, San Marcos, Killeen, Elgin and Harker Heights. In the weeks since, some cities clashed with lawmakers, who argued that the decriminalization effort violates state law and hinders police officers.
Recently, a Texas Federal Court also ruled that the federal ban on cannabis users owning firearms is unconstitutional. The judge on the case, Kathleen Cardone, said, “It strains credulity to believe that taking part in such a widespread practice can render an individual so dangerous or untrustworthy that they must be stripped of their Second Amendment rights.”
Texas Residents Favor Updated Cannabis Policies
And while Texas still has very restrictive cannabis laws, they don’t align with views the state’s citizens hold.
According to a University of Houston study released earlier this year, out of 1,200 Texan adults 18 and older, four out of five adults said they would support an expanded medical cannabis program. The survey also found that the majority of respondents supported decriminalizing cannabis possession, lessening the penalty of possessing small amounts of cannabis to a citation, and two-thirds of surveyed individuals support legalizing cannabis for adult use.
Another poll, conducted by the University of Texas and the Texas Politics Project in 2022, similarly found that a strong majority (72%) back decriminalizing cannabis by making the offense punishable by a citation and fine with no threat of jail time. Only 17% said they would support a complete prohibition on cannabis usage, including medicinal cannabis.
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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