Medical Cannabis Policy Update: Summer 2010

NATIONAL
Reps Ask Treasury for Help with Banking Problems
AG Held Accountable on Medical Cannabis
First Webcast by National League of Cities Covers Cannabis

STATE UPDATES
California Bill Urges New Federal Policy on Medical Cannabis
Oregon Pharmacy Board Reclassifies Cannabis as Medicine
Program Updates from CA, NJ, RI, DC, CO, ME, MT
Medical Cannabis Initiatives in SD, AZ, OR

RESEARCH
Smokeless Delivery Method Reduces Respiratory Complaints
Cannabinoids Help Grow New Brain Cells
Cannabinoids Fight Brain Cancer
Cannabinoids Aid Mental Health
Cannabinoids May Help Transplants
Another Cannabinoid Shows Anti-Inflammation Properties
Cannabis Helps GI Disorders
Cannabis Helps MS Incontinence
Cannabis Spray OKed for UK Pharmacies


NATIONAL

House Members Ask Treasury for Help with Banking Problems

Medical Cannabis Providers Denied Basic Services

Fifteen members of Congress have asked Treasury Secretary Timothy Geithner to help protect banking services for medical cannabis providers. After receiving dozens of reports of banks closing the accounts of state-qualified medical cannabis providers, ASA worked to educate members of the House of Representatives about the problem and helped solicit co-signers of a letter to Secretary Geithner. The letter urges him to provide "written guidance for financial institutions," assuring them that the Treasury Department would not target either the institutions or account holders who are in compliance with state medical marijuana laws.

"[L]egitimate state-legal businesses are being denied access to banking services, which does not serve the public interest," says the letter authored by Rep. Jared Polis (D-CO) and co-signed by representatives from Arizona, California, Massachusetts, New Jersey, New York, Tennessee, Texas, and Wisconsin. They point out that the denial of financial services produces "an increased risk to public safety with potential theft or robbery that any cash-only or cash-reliant business faces," and is "an affront to fundamental fairness."

Federal law technically considers the deposit of any reimbursements or other money related to medical cannabis to be "money laundering." But many states with medical cannabis laws expect patients and dispensaries to pay sales tax, with the state of California estimating it has collected in excess of $100 million this year alone.

"State agencies reasonably expect medical cannabis patients and providers to pay their taxes and be financially responsible," said ASA Government Affairs Director Caren Woodson. "Yet outmoded federal law is being used to prevent them from using basic financial services."

A spokesperson for Chase, one of the banks that has closed accounts, told a Colorado paper that they refuse to do business with dispensaries due to "financial operational and compliance risk," but was unable to explain what that meant.

"Americans for Safe Access is working with Congress to obtain a Treasury policy similar to that of the Department of Justice," said Woodson. "We appreciate the leadership of Representative Polis and others as we attempt to remove federal obstacles from the implementation of safe access to medical marijuana at the local and state levels."

Further Information:
Congressional letter to Treasury Secretary Geithner
U.S. Attorney General Eric Holder's recent statements before Congress
October 2009 DOJ directive

NATIONAL

Holder Held Accountable on Medical Cannabis

In the wake of the announced new administration policy on medical cannabis, U.S. Attorney General Eric Holder faced tough questions at a recent House Judiciary Committee hearing. Rep. Steve Cohen (D-TN) and Rep. Jared Polis (D-CO) each pressed him to take action on issues that affect medical cannabis patients.

Rep. Polis, who has worked closely with ASA to identify the concerns of doctors and patients and is one of the newest members of the House Judiciary Committee, asked Attorney General Holder to clarify federal medical cannabis policy.

After voicing his support for the DOJ memo discouraging US Attorneys from prosecuting individuals who are in clear and unambiguous compliance with state law, Rep. Polis asked the attorney general to "describe the objective processes DEA and US Attorneys are using in order to make a determination about whether individuals are in 'clear and unambiguous' compliance with state law."

Attorney General Holder said that he expects U.S. Attorneys to evaluate on a case-by-case basis whether individuals are acting "consistent with state law."

Rep. Polis suggested that "the question of whether or not it's consistent with state law be left to state enforcement actions," and pressed Attorney General Holder to clarify what steps he is taking to ensure that the policy outlined in the memo is not undermined or contradicted by field agents, as happened recently in Rep. Polis' district in Colorado.

The attorney general conceded that it is his responsibility "to make sure that what we've set out as policy is being followed. To the extent DEA or US Attorneys are not following that policy, my responsibility is to make sure the policy is clear, disseminated, and that employees of the Justice Department act accordingly."

During his time to ask questions, Rep. Cohen asked Attorney General Holder to respond to the recent federal sentencing order in the case of California medical cannabis provider Charles C. Lynch, quoting the judge's comments that Lynch was "caught in the middle of shifting positions" on the medical use of cannabis.

Attorney General Holder responded without addressing the specifics of the Lynch case, but said that "so far as state medical marijuana laws are concerned, we will not use federal resources to target medical marijuana patients or their providers."

Rep. Cohen also challenged Attorney General Holder on the Department of Justice's approach to rescheduling cannabis to make it available by prescription everywhere in the nation, noting that in situations like the Lynch case, "much of the problem could be ameliorated…by the reclassification of marijuana from Schedule I."

A petition requesting such a change has been pending since 2002. Health and Human Services recently completed its review of the petition and passed it to the Justice Department's Drug Enforcement Administration, where Michele Leonhart is awaiting confirmation as director. Patient advocates are pressing for answers from her on these questions during her upcoming confirmation hearing to become director.

"We're grateful that medical cannabis patients now have strong allies in Congress, such as Reps. Cohen and Polis," said ASA Government Affairs Director Caren Woodson after the hearing. "ASA has worked hard to ensure that members with oversight over federal policy have all the information they need to ask the tough questions and help formulate more sensible approaches to medical cannabis."

First Webcast by National League of Cities Focuses on Medical Cannabis

Americans for Safe Access Featured

Americans for Safe Access explained the needs of medical cannabis patients in the first live webcast presented by the National League of Cities (NLC) on its internet TV channel.

Caren Woodson, ASA's Government Affairs Director, presented the benefits to patients and communities of establishing city-regulated distribution for medical cannabis and then participated in a question and answer session with webcast viewers.

"City officials benefit enormously from hearing the needs of patients," said Woodson. "A few states have mandated programs for medical cannabis distribution, but most of it happens at the local level and requires local government to be involved in its implementation."

States that leave distribution rules to local governments include California, Colorado, Michigan, Montana, Oregon and Washington. The states that are currently considering laws that would establish regulated medical cannabis distribution include Iowa, Kansas, Maryland and Wisconsin.

The webcast is the first in series on medical cannabis presented by the NLC's Finance, Administration and Intergovernmental Relations Committee (FAIR). A subsequent program featured Ron Brooks, president of the National Narcotics Officers' Associations' Coalition, discussing law enforcement issues related to medical cannabis.

FAIR voted to take a closer look at the medical cannabis issue following inquiries from city representatives on the committee. FAIR invited Woodson to participate based on ASA's expertise in interpreting and implementing state-authorized safe access provisions at the local level.

"The elements of a safe, reliable and affordable distribution plan for medical cannabis primarily concern land use issues," continued Woodson. "ASA's research has shown that the additional security typically provided by medical cannabis distributors reduces or eliminates crime and nuisance activity in their neighborhoods."

The NLC is the premier national organization representing municipal governments in the U.S., representing 19,000 cities, villages, and towns and working in partnership with 49 state municipal leagues.

Further Information:
The National League of Cities FAIR webcast page
ASA Report on medical marijuana dispensary regulations


STATE UPDATE

California Bill Urges New Federal Policy on Medical Cannabis

A bill sponsored by ASA that urges federal officials to adopt a new national policy ensuring safe access is now before the California Assembly. Senate Joint Resolution 14 urges the federal government to end medical marijuana raids and to "create a comprehensive federal medical marijuana policy that ensures safe and legal access to any patient that would benefit from it."

The Department of Justice issued a memo to US Attorneys in October 2009, discouraging them from prosecuting individuals who comply with state medical cannabis laws. But raids, arrests and prosecutions have occurred since then in California, Colorado, New Mexico and Michigan, including raids that targeted the organizers of patient protests. More than two-dozen patients and providers are currently being prosecuted under federal law and face decades in prison.

In addition to urging President Obama and Congress to "move quickly to end federal raids, intimidation, and interference with state medical marijuana law," SJR 14 asks them to establish "an affirmative defense to medical marijuana charges in federal court and establish federal legal protection for individuals authorized by state and local law."

Currently, defendants facing federal marijuana charges cannot use their medical condition or compliance with state law as a defense in court. A bill to change that, the Truth in Trials Act (HR 3939), is currently pending before Congress.

Further information:
Senate Joint Resolution on medical marijuana
ASA fact sheet on SJR 14

STATE UPDATE

Oregon Pharmacy Board Says Cannabis is Medicine

Decision Bolsters Pending Petitions on Medical Use

The latest indication of the scientific consensus on the medical uses of cannabis comes from the Oregon Board of Pharmacy, which officially reclassified the drug as a medicine last month.

After months of deliberation and input from scientists, physicians and patients, the board voted 4-1 to move marijuana from Schedule I, reserved for highly dangerous drugs with no medical use, to Schedule II. The decision follows action by the Oregon legislature in August 2009, when it passed a bill directing the pharmacy board to reclassify marijuana to an appropriate schedule.

Although 14 states have adopted laws making the medical use of cannabis legal, and four have classified cannabis as medicine, it is still listed as a Schedule I substance by the federal government.

"When a state public health and drug regulatory body takes such an action, it sends a clear message to the federal government," said Caren Woodson, ASA's Director of Government Affairs. "They should approve the petition on rescheduling cannabis they've been sitting on for eight years, as well as ASA's petition on correcting the denials of its accepted medical uses."

Congress defined cannabis as a substance with a high potential for abuse and no medical value in 1970, when it enacted the Controlled Substances Act. Requests to change that classification have been rejected by federal officials in the past, and the latest petition to reschedule cannabis has been under consideration since 2002. That petition -- filed by the Coalition for Rescheduling Cannabis, of which ASA is a member - has been passed to the DEA with a recommendation from the U.S. Department of Health and Human Services. Acting DEA Administrator Michele Leonhart, who awaits confirmation by the Senate, will have the final say on the matter.

"DEA Administrator Leonhart has yet to demonstrate that she understands the science on medical cannabis," said Woodson. "But this is nonetheless an opportunity for the Obama Administration to make good on its pledge to base policy on scientific findings."

Further Information:
Oregon legislation (SB 728) instructing BOP to reclassify marijuana
Oregon Board of Pharmacy page on reclassifying marijuana

STATE UPDATES

Medical Cannabis Programs

In California, the regulations for dispensing medical cannabis in Los Angeles, the nation's second largest city, are in place, though litigation over restrictive rules on where medical cannabis dispensaries can operate continues. Location restrictions are also the focus of a state bill advancing through state senate committees. AB 2650 would require a 600-foot buffer zone between medical cannabis collectives and schools statewide. Pressure from ASA and other advocacy groups was also able to scale back the original proposal, which would have required a 1,000 foot buffer from not just schools but a long list of sensitive uses that would have made finding acceptable locations difficult.

New Jersey Gov. Chris Christie (R) obtained a 90-day delay from the state legislature on the implementation of the state's medical cannabis program. Legal sales were slated to begin in October, but Christie said health officials need more time to write regulations for distribution. Christie has suggested Rutgers University grow cannabis and distribute it through hospitals.

A year after establishing provisions for dispensaries, Rhode Island lawmakers have enacted medical cannabis legislation for the fourth time, amending state law to protect patient-physician confidentiality. The new measure specifies that federal privacy protections afforded by the Health Insurance Portability and Accountability Act (HIPA) be extended to paperwork filed by qualifying patients, "including information regarding their primary caregivers and practitioners."

The District of Columbia is establishing rules for the distribution of small amounts of medical cannabis after Congress lifted a more than decade-old ban on a successful voter initiative. But a member of the House from Utah, Rep. Jason Chaffetz (R), is fighting to derail the measure all over again. Chaffetz says Congress should use its power over District laws to stop any efforts to reclassify or decriminalize the use of marijuana. Congress has until late July to block or change the D.C. law.

A pair of bills in Colorado have added additional regulations to how medical cannabis is distributed in that state. Under the new laws, physicians must be in good standing to recommend medical cannabis to patients, and operators of cannabis dispensaries must pass criminal background checks as well as grow 70 percent of their own marijuana. New fees are being imposed to pay for the regulatory system.

Maine is in the process of establishing state-licensed distribution centers for medical cannabis. The Maine Department of Health and Human Services has just approved six of the 29 applications it received for the eight locations to be established. Under Maine's Medical Use of Marijuana Act, the applications will be evaluated on a variety of criteria, including convenience of the location, experience of the operator, and plans for record keeping, security and staffing. The two areas without accepted proposals will be reopened to application.

In Montana, state lawmakers are considering possible changes to their program, including adding PTSD to the covered conditions, requiring specialists to evaluate chronic pain, adding cannabis to the ban on smoking in public places, changing the time period for which state ID cards are valid, and requiring those cards to be carried along with photo identification when using medical cannabis.

STATE UPDATE

IMedical Cannabis Initiatives in South Dakota, Arizona, Oregon

South Dakota voters get a second chance in November to remove criminal penalties for cannabis patients. The South Dakota Safe Access Act (Measure 13) would, if approved by voters in November, authorize qualified patients and designated caregivers to grow six plants and possess up to one ounce of usable cannabis. Caregivers would be allowed to provide cannabis for up to five patients. In 2006, South Dakota became the first and only state to reject a medical cannabis initiative, after the state attorney general and the Bush Administration campaigned against it. Backers of the current initiative predict victory, saying the political landscape has changed.

In Arizona, voters have twice before approved medical cannabis measures, only to see implementation fail over poor wording of the laws. The latest initiative, known as the Arizona Medical Marijuana Act, would allow qualified patients and their caregivers to possess up to 2-1/2 ounces of cannabis. It would also establish state-regulated, nonprofit dispensaries where most patients would be required to obtain their medicine. Patients and caregivers who reside more than 25 miles from a licensed dispensary would be permitted to grow up to 12 plants.

Oregon voters will likely have a chance to approve a dispensary system for their state. The Coalition for Patients' Rights 2010, working with Voter Power, has submitted over 190,000 signatures to ensure they have the 82,769 valid signatures needed to place Initiative 28 on Oregon's November 2010 ballot. The initiative would add a regulated supply system of dispensaries to the current law, which requires patients to produce their own medicine. Advance polling shows 59% of Oregon voters support the measure.


RESEARCH UPDATES

Smokeless Delivery Method Reduces Respiratory Complaints

Research on using "vaporizers" for the smokeless delivery of cannabis found that individuals with respiratory problems related to smoking showed "meaningful improvements in respiratory function." Vaporizers heat plant material to release cannabinoids in a mist, eliminating smoke and other respiratory irritants.
Int J Drug Policy. 2010 May 5.

Cannabinoids Help Grow New Brain Cells

Previous studies have established the neurogenerative properties of cannabinoids in adult brain cells, but new research indicates the effect comes from a non-psychoactive cannabinoid attaching to CB1 receptors. A team of scientists from Germany, Switzerland and Mexico found that cannabidiol (CBD), the second most prevalent cannabinoid in cannabis, increases the formation of new nerve cells in the brains of adult mice without impairing learning, while THC, the primary psychoactive component, has no effect on neurogenesis.
Wolf SA, et al. Cell Commun Signal 2010;8(1):12.)

Cannabinoids Fight Brain Cancer

Scientists at the University of Washington report that cannabinoids may have a role in controlling the development of aggressive brain cancers. They found that cannabinoid and cannabinoid-like receptors in brain cells "regulate these cells' differentiation, functions and viability." This suggests cannabinoids and other drugs that target cannabinoid receptors can "manage neuroinflammation and eradicate malignant astrocytomas." Individuals with grade 4 astrocytoma have a median survival time of from 17 to 37 weeks, depending on how aggressively they are treated.
Glia. 2010 Jul;58(9):1017-30.

Cannabinoids Can Aid Mental Health

Brazilian researchers report that their review of studies on the role of cannabinoids in mental health found that cannabidiol (CBD) has "antipsychotic, anxiolytic [anti-anxiety], and antidepressant properties, in addition to being effective in other conditions." THC and its analogues were also shown to have anti-anxiety effects and to have potential in treating schizophrenia.
Rev Bras Psiquiatr. 2010 May;32 Suppl 1:S56-66.


A separate review in the same journal examines the endocannabinoid system and its pharmacology, concluding that cannabinoids and cannabinoid receptors "modulate a variety of brain functions, including anxiety, fear and mood." Preclinical studies show that activating CB1 receptors has antidepressant and anti-anxiety effects. The researchers conclude that drugs that target the endocannabinoid system offer treatment of depression and anxiety disorders.
Rev Bras Psiquiatr. 2010 May;32 Suppl 1:S7-14.

Researchers at the University of Mississippi tested the anti-depressant effects of a variety of cannabinoids on mice, finding that Delta-9 THC, CBC, and CBD have "significant antidepressant-like effects" but that CBG, CBN and Delta-8 THC do not.
Pharmacol Biochem Behav. 2010 Jun;95(4):434-42.

Cannabinoids May Help Transplants

The well-established immune-modulating effects of cannabis may have a therapeutic application in transplant surgery. Researchers at the University of South Carolina have concluded that cannabinoids may help prevent transplant rejection. The scientists suggest that the cannabinoid receptors known as CB2, which are prevalent in the gut and immune cells, "may offer a new avenue to selectively target immune cells involved in allograft rejection."
Nagarkatti M, et al. Trends Pharmacol Sci. 2010 Jun 28.

Cannabinoid Shows Anti-Inflammation Properties

The ability of cannabis and cannabinoids to control inflammation has been demonstrated in many studies, but a new report from the University of Aberdeen has shown that the plant cannabinoid THCV (delta-9-tetrahydrocannabivarin) attaches to CB2 receptors and is effective in reducing inflammation and pain in mice.
Bolognini D, et al. Br J Pharmacol 2010;160(3):677-87.

Cannabis Helps GI Disorders

Much research has shown how and why cannabis is effective in treating gastro-intestinal disorders. New university research out of England demonstrates that both primary plant cannabinoids, THC and CBD, are each beneficial in a rat model of colitis, reducing inflammation and functional disturbances. THC was most helpful but was more effective when combined with CBD.
Jamontt JM, et al. Br J Pharmacol 2010;160(3):712-23.

Italian scientists have published an overview of the role of endocannabinoids in the gut in health and disease. Noting that "cannabis has been used to treat gastrointestinal conditions that range from enteric infections and inflammatory conditions to disorders of motility, emesis and abdominal pain," the researchers consider "the pharmacological actions of cannabinoids in relation to GI disorders."
Pharmacol Ther. 2010 Apr;126(1):21-38. Epub 2010 Feb 1.

Cannabis Helps MS Incontinence

MS patients frequently report cannabis helps with bladder control and researchers in Michigan have just published a review of studies on cannabinoid receptors in the bladder. They suggest that in addition to non-psychoactive cannabinoids, psychotropic effects can be mitigated by delivering cannabinoids directly into the bladder.
Indian J Urol. 2010 Jan;26(1):26-35.

Cannabis Spray OKed for UK Pharmacies

After years of successful clinical trials, an oral spray made from cannabis has been approved for distribution to patients with Multiple Sclerosis in the UK. The controlled-dose sublingual spray, manufactured by GW Pharmaceuticals and called Sativex, has been shown to be effective for treating both neuropathic pain and the spasticity associated with MS. Clinical trials on treating cancer pain have also shown good results, but the drug has not yet won approval for that use in the UK. It has been available in Canada by prescription since 2005 and was approved for clinical pain trials in the US three years ago. More than a third of MS sufferers report using cannabis to control their symptoms.

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