{"id":68498,"date":"2023-09-13T05:14:30","date_gmt":"2023-09-13T13:14:30","guid":{"rendered":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2023\/09\/13\/california-initiative-to-fund-psychedelics-research-would-cost-6-6-billion-but-could-earn-money-through-discoveries-analysis-says\/"},"modified":"2023-09-13T19:46:52","modified_gmt":"2023-09-14T03:46:52","slug":"california-initiative-to-fund-psychedelics-research-would-cost-6-6-billion-but-could-earn-money-through-discoveries-analysis-says","status":"publish","type":"post","link":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/2023\/09\/13\/california-initiative-to-fund-psychedelics-research-would-cost-6-6-billion-but-could-earn-money-through-discoveries-analysis-says\/","title":{"rendered":"California Initiative To Fund Psychedelics Research Would Cost $6.6 Billion But Could Earn Money Through Discoveries, Analysis Says"},"content":{"rendered":"<\/p>\n

The same day California lawmakers signed off on a bill to legalize psychedelics<\/a> last week, staffers at the state\u2019s Legislative Analyst\u2019s Office (LAO) released their review of a proposed ballot initiative that would funnel $5 billion generated from bonds toward psychedelic therapies for mental health.<\/p>\n

While the proposal would cost California nearly $6.6 billion over 30 years, the new report says, it could also earn the state revenue from new scientific discoveries.<\/p>\n

Known as the TREAT California Act, the would-be measure would not itself change the legal status of any substances. Rather, it would establish a state agency called the Treatment, Research, Education, Access and Therapies (TREAT) Institute<\/a>, which would identify opportunities for advancing scientific research and development into the therapeutic potential of psychedelics.<\/p>\n

The initiative\u2019s text says it\u2019s meant to create a funding agency to \u201cbuild out all the pieces of the psychedelic ecosystem necessary for this paradigm shift in mental healthcare,\u201d with the ultimate goal of gaining federal Food and Drug Administration (FDA) approval and \u201cmaking these valuable therapeutics accessible to all.\u201d<\/p>\n

As the new LAO report says, the initiative would create \u201ca state constitutional right to conduct research in California using all psychedelic substances (natural and synthetic), except peyote.\u201d<\/p>\n

\u201cSubstances that could be studied include psilocybin (magic mushrooms), ibogaine, LSD, MDMA (molly or ecstasy), ketamine, and cannabis,\u201d it says.<\/p>\n

Funding from the institute would support \u201cresearch, clinical trials, training, and education relating to the use of these substances for the treatment of mental health issues,\u201d LAO noted.<\/p>\n

The agency would also facilitate the creational of \u201ccare programs\u201d in California for psilocybin and MDMA once the psychedelics are approved for therapeutic use by FDA.<\/p>\n

Grants would need to support research into the risks and benefits of psychedelic-assisted therapy for addiction, anxiety, depression, suicidality, post-traumatic stress disorder (PTSD), chronic and acute pain and other disorders such as obsessive compulsive disorder (OCD) and anorexia.<\/p>\n

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We have reviewed the proposed measure (A.G. File No. 23-0013, Amendment #1) that would authorize $5 billion in state general obligation bonds for mental health-related research and therapies involving certain psychedelic substances. https:\/\/t.co\/aizEbSOha5<\/a><\/p>\n

\u2014 Legislative Analyst (@LAO_CA) September 7, 2023<\/a><\/p>\n<\/blockquote>\n

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Including interest on the loans, the $5 billion in bond money to fund the institute would end up costing the state about $6.6 billion, LAO said. \u201cGiven the inflationary effects over the 30-year period, the total cost of the bonds is projected to be 10 percent more expensive than if the state paid in cash.\u201d<\/p>\n

But because all businesses, universities and other entities that receive funding from the TREAT Institute would be subject to intellectual property agreements, California could also recoup some of that money by bringing new scientific discoveries to market.<\/p>\n

\u201cIf TREAT award recipients discover new drugs,\u201d the LAO report says, \u201cthe state would receive some associated revenue.\u201d<\/p>\n

How much revenue\u2014and when it could be generated\u2014are still open questions.<\/p>\n

\u201cBecause the R&D process can be lengthy, the state likely would not derive such revenue in the initial few years after TREAT-funded R&D commenced,\u201d the report<\/a> says. \u201cMoreover, the amount of revenue derived in this way is uncertain. Many times, R&D does not lead to new discoveries, but, in a few cases, new discoveries (such as a new drug) are very lucrative.\u201d<\/p>\n

The amount the state receives would also vary based on the specific terms of a given intellectual property agreement.<\/p>\n

In order to qualify the prospective constitutional amendment for next year\u2019s ballot, the campaign will need at least 874,641 valid signatures from registered voters.<\/p>\n

Deb Hubers, COO of\u00a0TREAT, told Marijuana Moment in July that she was confident Californians would support the measure if it makes it to the ballot, pointing to recent national polling showing that a majority of Americans\u00a0back legalizing psychedelic-assisted therapy<\/a>.<\/p>\n

A separate psychedelics campaign trying to qualify a measure for next year\u2019s ballot is Decriminalize California, which recently got approval from state officials to begin collecting signatures for its initiative to legalize psilocybin<\/a>, including adult-use sales. Activists with the group have tried twice to put the reform on the ballot in prior cycles, but they\u2019ve come up short, due in no small part to signature gathering complications during the pandemic.<\/p>\n

A fiscal analysis from LAO on that measure said implementing the legalization component of the policy, which would also involve sealing records of prior psilocybin-related convictions, would likely result in a \u201cnet reduction in costs\u201d to the state<\/a>.<\/p>\n

Last week in Sacramento, lawmakers sent a separate bill to the governor\u2019s desk that would legalize the possession and personal cultivation of certain entheogenic plants and fungi beginning in 2025. A workgroup would be established under the California Health and Human Services Agency (CHHSA) to study and make recommendations on establishing a regulatory framework to access the substances for therapeutic and facilitated use.<\/p>\n

Advocates are hopeful but not sure that Gov. Gavin Newsom (D) will sign the measure. Sponsor Sen. Scott Wiener (D) told Marijuana Moment in July that it\u2019s \u201cunclear\u201d to him whether Newsom will support the change, adding that the governor was \u201cnot expressing any opinion, pro or con.\u201d<\/p>\n

Officials at various levels of government are increasingly calling on federal regulators to study the benefits of\u2014and broaden access to\u2014psychedelics for mental health. In Michigan last week, lawmakers passed a resolution urging the U.S. Congress, Department of Defense and Department of Veterans Affairs (VA) to prioritize research and investment in \u201cnon-technology treatment options\u201d\u2014including psychedelics<\/a>\u2014to treat psychological trauma from military service.<\/p>\n

Earlier this year, House lawmakers passed a spending bill with a number of\u00a0veteran-focused marijuana and psychedelics amendments<\/a>. One would allow VA doctors to issue medical cannabis recommendations to former servicemembers, and the other would encourage research into the therapeutic potential of psychedelics.<\/p>\n

Three bipartisan House members also recently sent a letter to VA Secretary Denis McDonough expressing \u201cdeep concern\u201d over a recently updated VA marijuana directive that continues to\u00a0prohibit its doctors from making medical cannabis recommendations to veterans<\/a>\u00a0living in states where it\u2019s legal.<\/p>\n

The letter also points out that, prior to VA releasing the directive last month, they successfully championed an amendment to a House appropriations bill that would allow the department\u2019s doctors to recommend medical cannabis<\/a>\u00a0to veterans. The Senate Appropriations Committee also passed a similar reform as part of\u00a0its version of the appropriations legislation<\/a>.<\/p>\n

Legislation to enact the policy change also previously advanced through both chambers but has not been enacted into law. In 2016, the House and Senate both adopted different versions of the reform in their spending bills\u2014but\u00a0neither<\/a>\u00a0made it into the final conference report following negotiations.<\/p>\n

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California Senate Approves Bill To Legalize Marijuana Cafes, With Final Concurrence Vote Expected Shortly Before Going To Governor<\/a><\/p>\n<\/blockquote>\n

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Photo courtesy of Wikimedia\/M\u00e4di<\/a>.<\/p>\n

The post California Initiative To Fund Psychedelics Research Would Cost $6.6 Billion But Could Earn Money Through Discoveries, Analysis Says<\/a> appeared first on Marijuana Moment<\/a>.<\/p>\n


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The same day California lawmakers signed off on a bill to legalize psychedelics last week, staffers at the state\u2019s Legislative Analyst\u2019s Office (LAO) released their review of a proposed ballot initiative that would funnel $5 billion generated from bonds toward psychedelic therapies for mental health. While the proposal would costContinue Reading<\/a><\/span><\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[18,81],"tags":[],"_links":{"self":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/68498"}],"collection":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/comments?post=68498"}],"version-history":[{"count":1,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/68498\/revisions"}],"predecessor-version":[{"id":68499,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/posts\/68498\/revisions\/68499"}],"wp:attachment":[{"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/media?parent=68498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/categories?post=68498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannabiscultivatornews.com\/home\/index.php\/wp-json\/wp\/v2\/tags?post=68498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}