Staffers from the Legislative Analyst’s Office of California (LAO) released a review on a ballot initiative to funnel $5 billion in bonds generated by California legislators towards psychedelic therapy for mental health.
The new report states that while the proposal could cost California $6.6 billion in 30 years, it can also generate revenue for the state through new scientific discoveries.
The TREAT California Act would not change the status of substances. would instead establish a state-level agency, the Treatment, Research, Education, Access and Therapies Institute, to identify and advance scientific research and development on the therapeutic potentials of psychedelics.
According to the initiative’s text, it’s intended to create a funding organization to “build all the pieces of this psychedelic eco-system necessary for this paradigm change in mental healthcare,” and the ultimate goal is to gain federal Food and Drug Administration approval and make these valuable therapeutics available to everyone.
According to the LAO report, this initiative would give Californians the constitutional right to research all psychedelic substances including synthetic and natural ones (except peyote).
It says that substances such as psilocybin, ibogaine (magic mushrooms), LSD, MDMA, ecstasy (molly), and cannabis could be studied.
LAO reported that funding from the institute will support “research and clinical trials, education, training and information relating to these substances as a treatment for mental health issues.”
Once the FDA approves psychedelics for therapeutic use, the agency will also help create “care programs” for psilocybin or MDMA in California.
The grants would support research on the benefits and risks of psychedelic assisted therapy for addiction, anxiety and depression, suicidality and post-traumatic disorder (PTSD), chronic pain, acute pain, and other disorders like obsessive-compulsive disorder and anorexia.
We have examined the proposed measure (A.G. We have reviewed the proposed measure (A.G. File No. https://t.co/aizEbSOha5
— Legislative analyst (@LAO_CA September 7, 2020
LAO reported that the state would have to pay $6.6 billion for the $5 billion of bond money used to fund the Institute, including interest. The total cost of bonds will be 10% more expensive if paid for in cash, due to the inflationary effects that are projected over a 30-year period.
California can also recover some of this money if it brings new scientific discoveries to the market. This is because all businesses and universities that receive funding from TREAT Institute are subject to agreements on intellectual property.
The LAO report states that “if TREAT awardees discover new drugs, the state would receive associated revenues.”
The question of how much revenue could be generated and when is still an open one.
reports that “because the R&D processes can be long, it is likely the state would not have derived such revenues in the first few years following the TREAT-funded R&D began.” The amount of revenue that can be derived from this method is also uncertain. R&D often does not result in new discoveries. However, some discoveries (such a new drug), can be very profitable.
The amount that the state would receive will also depend on the terms of the agreement.
To qualify for the ballot next year, the campaign must collect 874,641 valid voter signatures.
Deb Hubers told Marijuana Moment that she is confident that Californians will support the measure, if it gets to the ballot. She cited a recent national poll that showed that a majority of Americans support legalizing psychedelic assisted therapy.
Decriminalize California is a separate campaign that’s trying to qualify for the ballot next year. has recently received approval from officials in California to start collecting signatures to support its initiative to legalize adult-use psilocybin. The group’s activists have failed to get the reform on the ballot twice in previous cycles due to the difficulties they encountered in gathering signatures during the pandemic.
According to a fiscal analysis by LAO, the implementation of the legalization component, which also involves sealing records of previous psilocybin related convictions , would likely lead to a “net cost reduction” for the state.
In Sacramento, legislators sent a separate law to the governor last week that would legalize possession and cultivation of entheogenic fungi and plants beginning in 2025. California Health and Human Services Agency will establish a workgroup to study and provide recommendations for establishing a regulatory structure to allow access to the substances to be used therapeutically and facilitated.
The advocates are hopeful, but not certain that Governor Gavin Newsom (D) will sign the measure. Gavin Newsom, a Democrat, will sign the bill. Scott Wiener, the sponsor of the measure, told Marijuana Moment that he was unsure whether Newsom would support the amendment. He added that Newsom “wasn’t expressing an opinion, pro- or con.”
The government is increasingly urging federal regulators to investigate the benefits and broaden access to psychedelics in mental health. Last week, Michigan lawmakers passed a bill urging U.S. Congress , Department of Defense , and Department of Veterans Affairs HTML0 to prioritize research, investment, and “non technology treatment options” (including psychedelics ) for treating psychological trauma resulting from military service.
House lawmakers approved a spending measure earlier this year that included amendments aimed at veterans who use marijuana or psychedelics. The first would allow VA doctors the ability to recommend medical cannabis to veterans, while the second would encourage the research of the therapeutic potentials of psychedelics.
Three bipartisan House Members also sent a recent letter to VA Secretary Denis McDonough, expressing “deep concerns” over the recently updated VA marijuana Directive that continues to prevent its doctors from giving medical cannabis recommendations for veterans who live in states where it is legal.
The letter points out that before the VA released the directive last week, they had successfully advocated for an amendment to the House Appropriations Bill that would permit the department’s physicians to recommend medical marijuana. The Senate Appropriations Committee passed a reform similar to as part of , its version of appropriations legislation .
The legislation to implement the policy change has also advanced through both chambers, but it hasn’t been passed into law. In 2016, both the House and Senate adopted different versions in their respective spending bills. However, neither nor was included in the final conference report after negotiations.
California Senate Approves Marijuana Cafes Bill, with Final Concurrence Expected Soon Before Going to Governor
Image courtesy of /Madi.
The post California Initiative to Fund Psychedelics research Would Cost $6.6 billion But Could Earn Money through Discoveries, Analysis Says first appeared on Marijuana moment.
