Ron Strider
Well-Known Member
Attorneys argued for two hours on Tuesday in Albany County Supreme Court over whether the state can license five new medical marijuana producers, doubling the supply side of New York's nascent market.
But a judge did not immediately issue decisions on a request to dismiss a lawsuit challenging that authority or a request to stop the state from taking action.
The New York Medical Cannabis Industry Association, on behalf of four of the five current companies, sued the state in April, charging that expanding the number of "registered organizations" to 10 would kill an industry that has struggled to thrive with just under 30,000 patients as of Tuesday. Yet last month, the state licensed five new companies anyway.
Jennifer Harvey, the industry association's attorney, argued on Tuesday that the preliminary injunction the association sought in April to bar the state from licensing more companies is not moot even though the state Department of Health went ahead and licensed the new companies.
Harvey's arguments that the state unlawfully added new companies focused on language part of the Compassionate Care Act, which set up the medical marijuana program, that says the commissioner of health "shall register no more than five registered organizations that manufacture medical marijuana." Yet it also states that "the commission (sic) may register additional registered organizations."
Harvey said that while more non-manufacturing registered organizations, such as dispensaries, might be allowed, more manufacturers would not be.
Assistant Attorney General Harris Dague contended that the law grants the commissioner the authority to register five companies initially, to evaluate whether they fit the needs of the patient base and to register additional companies as needed. He said that the law gives the commissioner the ability to add new serious illnesses that can be treated by medical marijuana, which Commissioner Howard Zucker has done with the addition of chronic pain as a qualifying condition.
In addition to adding chronic pain to expand patient access, DOH has allowed home delivery, released a list of doctors who are signed up to certify patients and moved to allow production and sale of medical marijuana lotions, patches, chewable tablets and lozenges, expanding the roster of non-smokeable forms the drug comes in.
Still, the current five companies, which have operated at losses, argue that demand does not meet supply, and that by adding new companies, competition will irreparably harm the industry.
Exacerbating the issue is the small pool of repeat buyers of medical marijuana products. State data show that roughly half of all patients are dispensed a product more than once. Reasons for that the discrepancy between the total patient count and the repeat buyers number include price, insurers who won't cover medical marijuana and even the death of some critically patients who make it to the market only once, if at all.
"That (patient) number is not increasing to the extent that seems to be urged," Harvey said. "There has been no allegation of a supply issue."
The five newly licensed companies have been allowed to join the case. On Tuesday, Brian Butler, an attorney for new registrant New York Canna, argued that the lawsuit should be dismissed because the economic harm the industry foresees is speculative.
"The statute is intended to provide necessary medical marijuana to certified patients," he said. "That's the purpose of this statute. It's not to prevent competition. It's not to create a monopoly for these five registered ROs."
Harvey argued that not only does the law have a cap on the number of medical marijuana manufacturers, legislative efforts to amend that piece of the law have failed.
"You can use emotionally charged words like monopoly or whatever you want to use, but there's a cap of five such (manufacturing) entities," she said.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Channel - Times Union
Author: Matthew Hamilton
Contact: Help: Contact Us - Times Union
Photo Credit: Lori Van Buren
Website: Albany, Troy, Schenectady, Saratoga News, Weather, Sports, Capitol | timesunion.com - Times Union
But a judge did not immediately issue decisions on a request to dismiss a lawsuit challenging that authority or a request to stop the state from taking action.
The New York Medical Cannabis Industry Association, on behalf of four of the five current companies, sued the state in April, charging that expanding the number of "registered organizations" to 10 would kill an industry that has struggled to thrive with just under 30,000 patients as of Tuesday. Yet last month, the state licensed five new companies anyway.
Jennifer Harvey, the industry association's attorney, argued on Tuesday that the preliminary injunction the association sought in April to bar the state from licensing more companies is not moot even though the state Department of Health went ahead and licensed the new companies.
Harvey's arguments that the state unlawfully added new companies focused on language part of the Compassionate Care Act, which set up the medical marijuana program, that says the commissioner of health "shall register no more than five registered organizations that manufacture medical marijuana." Yet it also states that "the commission (sic) may register additional registered organizations."
Harvey said that while more non-manufacturing registered organizations, such as dispensaries, might be allowed, more manufacturers would not be.
Assistant Attorney General Harris Dague contended that the law grants the commissioner the authority to register five companies initially, to evaluate whether they fit the needs of the patient base and to register additional companies as needed. He said that the law gives the commissioner the ability to add new serious illnesses that can be treated by medical marijuana, which Commissioner Howard Zucker has done with the addition of chronic pain as a qualifying condition.
In addition to adding chronic pain to expand patient access, DOH has allowed home delivery, released a list of doctors who are signed up to certify patients and moved to allow production and sale of medical marijuana lotions, patches, chewable tablets and lozenges, expanding the roster of non-smokeable forms the drug comes in.
Still, the current five companies, which have operated at losses, argue that demand does not meet supply, and that by adding new companies, competition will irreparably harm the industry.
Exacerbating the issue is the small pool of repeat buyers of medical marijuana products. State data show that roughly half of all patients are dispensed a product more than once. Reasons for that the discrepancy between the total patient count and the repeat buyers number include price, insurers who won't cover medical marijuana and even the death of some critically patients who make it to the market only once, if at all.
"That (patient) number is not increasing to the extent that seems to be urged," Harvey said. "There has been no allegation of a supply issue."
The five newly licensed companies have been allowed to join the case. On Tuesday, Brian Butler, an attorney for new registrant New York Canna, argued that the lawsuit should be dismissed because the economic harm the industry foresees is speculative.
"The statute is intended to provide necessary medical marijuana to certified patients," he said. "That's the purpose of this statute. It's not to prevent competition. It's not to create a monopoly for these five registered ROs."
Harvey argued that not only does the law have a cap on the number of medical marijuana manufacturers, legislative efforts to amend that piece of the law have failed.
"You can use emotionally charged words like monopoly or whatever you want to use, but there's a cap of five such (manufacturing) entities," she said.
News Moderator: Ron Strider 420 MAGAZINE ®
Full Article: Channel - Times Union
Author: Matthew Hamilton
Contact: Help: Contact Us - Times Union
Photo Credit: Lori Van Buren
Website: Albany, Troy, Schenectady, Saratoga News, Weather, Sports, Capitol | timesunion.com - Times Union
