Much of the reason that dispensaries as we know them today exist is because cannabis is a schedule 1 drug. As schedule 1, there is no place where the drug can legally be dispensed as per Federal Law. For the past three administrations, starting with Bill Clinton, the Feds have made the determination to allow medical cannabis dispensaries to open in states that have passed legislation allowing for them, despite that this is in direct opposition to Federal Law. Over the past 20 years there has been no shortage of anecdotal evidence that cannabis has efficacious qualities and recently we have seen a great deal of empirical evidence come out to further support its medical benefits. This has caused members of the public and their representative politicians to demand that cannabis is rescheduled away from schedule 1 to a lower schedule that allows for scientific research and clinical trials.

But what is the effect if this effort is successful? Arguably it is that the entire dispensary industry as we know it is immediately disrupted. If cannabis is a schedule 2 or 3 drug, that means that it must be prescribed by a physician and dispensed by a pharmacist. The DEA has made this clear for years saying:

Pharmacists must receive written and manually signed prescriptions for Schedule II substances. They may receive oral or faxed prescriptions for Schedules III-V substances provided they confirm the legitimacy of the prescription and the practitioner. Prescriptions for Schedule II substances may not be refilled. Prescriptions for Schedules III-V controlled substances may be refilled five times, but no prescription may be filled or refilled more than six months after the date on which the prescription was issued. Only those people who are registered with DEA as importers and who are in compliance with DEA requirements may have controlled substances shipped into the customs territory or jurisdiction of the U.S. from a foreign country.

With this in mind, a rescheduling to schedule 2 or lower may provide a boon to the pharmaceutical and bio tech industries who have been itching to study cannabinoids in the hope of isolating compounds that show true medicinal promise. This means that investment capital will likely come pouring into these more traditional industries as soon as the announcement is made, further exacerbating the problems traditional cannabis businesses may have once rescheduling happens.

In many ways, the preferred solution would be to declassify cannabis away from the Controlled Substances Act altogether. While this will not prevent outside industries from getting involved in the space, it could create a national marketplace where cannabis could move across state lines. If that happens the industry will see massive amounts of internal M&A activity in order to prepare for potential acquisitions from outside the industry.

Of course this is all conjecture until we see what the DEA does this Summer, but it is certainly worth thinking about in the near term as no matter what, reclassification or declassification will have a profound impact on the cannabis industry as we know it.

Rob

Unfortunately, there is a major issue with the law and that is that it is not legal in Georgia to grow cannabis, either low THC varieties or otherwise. That means patients have no way to access the medicine they are legally allowed to possess. The state tells them that they are able to import it from other states that have a legal cannabis program, but doing so would be a violation of Federal Law.

It would stand to reason that when this obvious catch 22 was exposed that the state of Georgia would take remedial measures to fix the issue, but new evidence shows that this is not the case. As it stands today, a patient can possess cannabis oil in Georgia if they have a qualifying condition and have been certified to do so by their physician, they just have no way to procure the oil without committing a Federal felony.

While this may be a tricky situation, we believe it is one that is easily remedied through the production of biosynthetic cannabinoids in a laboratory environment. This is exactly the reason that Tuatara has made an investment in CBC Biotechnologies. Their scientific solutions directly address problems such as these and they do so in a way that should satisfy the Governor’s office and all law enforcement concerns. We look forward to sharing more in the coming months.

Rob

There is no doubt that prior to the election, this issue will end up in Court. David Boyer, Maine political director for the Marijuana Policy Project intends to challenge the ruling.

It is situations like these that should cause concern to those involved in the cannabis movement who believe that popular sentiment is all that is needed to move legislation forward. Just because you have the votes to win at the ballot box, it is of little consequence if you are unable to get the question on the ballot. The Secretary of State is well aware that voter turn out is highest in a Presidential election year, especially with the younger voters who are more inclined to vote in favor of adult use recreational cannabis, and that the chance of this same question passing in an off year is significantly lower.

Is this a perversion of justice or justice politics as usual? It will be interesting to see this play out as Maine has traditionally been one of the more liberal states on cannabis policy. Several municipalities, including Portland, have already taken the symbolic, although non-binding, step of legalizing recreational cannabis.

One thing is sure and that is that New England will be the most interesting battleground to watch when it comes to adult use of recreational cannabis in the coming years.

Rob