Lansing Lines is presented in cooperation with MIRS, a Lansing-based news and information service.
Cannabis Redo Could Open Up Michigan Industry
U.S. Attorney General Merrick Garland put forth a proposal to reclassify cannabis from a schedule I drug, along with heroin, to a schedule III drug, with some codeine combinations, which could change some rules in the Michigan industry.
Department of Justice Director of Public Affairs Xochitil Hinojosa said the proposal would need to be published by the federal register, which would then initiate the formal rule-making process. The Drug Enforcement Administration and DOJ had no further comment about a timeframe for the process or how long it could take.
Cannabis Regulatory Agency Director Brian Hanna said rescheduling would make research easier and make it easier for consumers to access.
He said businesses would also have access to more banking and the tax burden would be reduced.
“We will continue to monitor the situation and look forward to our part to keep Michigan as a national leader in the cannabis industry,” Hanna said.
Michigan Cannabis Industry Association Executive Director Robin Schneider said the rule promulgation process could take three years or longer and the Michigan industry would be participating in that process.
“This is likely one of the most overdue polices that we’ve seen change and certainly the biggest cannabis reform that we’ve seen, federally, ever,” Schneider said.
She said the industry believed it should never have been designated a Schedule I drug, which are classified as drugs with no currently accepted medical use and high potential for abuse. It is the highest classification of controlled substance, and includes drugs like LSD, Ecstasy, Quaaludes, PCP, and peyote.
The DEA defines Schedule III drugs as having a moderate-to-low potential for physical or psychological dependence and lower abuse potential. The group of drugs includes ketamine, anabolic steroids, and testosterone.
“I believe the biggest impact that this will have on Michigan’s cannabis industry is the removal of the 280e tax penalty,” she said.
The 280e tax penalty means that most businesses pay a tax rate of about 81% and this would put the tax in line with other pharmaceutical companies.
Schneider said this reclassification could end up leading to the birth of a federal medical cannabis program.
“We don’t know what that’s going to look like yet, but it’ll be a good thing because individuals who have healthcare needs may be able to have their cannabis approved by doctors used in hospitals, hospice, and insurance coverage may become a possibility,” she said.
She said while this was a big step in the United States, any type of full legalization on the federal level could still be a decade away.
“Support for cannabis, legalization, cannabis as medicine, and certainly ending mass incarceration of our citizens, all of those issues are resonating with average citizens and voters right now,” she said.
She said it takes longer for the federal government to catch up to the sentiment of the citizens and progress was incremental.
“I think this is a historic decision that’s long overdue, and I think it’s a sign of where individuals stand on this issue,” she said.
Occupational Therapy Bills Pass House; Other Health Policy Bills Put On Hold
Despite a slew of health policy bills initially placed on the agenda, the only ones taken up and passed today were Reps. John Fitzgerald (D-Wyoming)’s and Dale Zorn (R-Onsted)’s two-bill package adding Michigan to the Physical Therapy Licensure Compact (PTLC).
A similar package sponsored by Reps. Julie Rogers (D-Kalamazoo) and Douglas C. Wozniak (R-Shelby Township) that would add Michigan to the Occupational Therapy Licensure Compact (OTLC) passed the House earlier this week with widespread bipartisan support.
Currently, 28 states are part of the OTLC, and 34 states are part of the PTLC, including the states of Indiana, Ohio and Wisconsin.
Fitzgerald’s HB 4504 and Zorn’s HB 4505 both passed with bipartisan support.
HB 4504, which would officially enter Michigan into the PTLC, passed 91-13. Reps. Steve Carra (R-Three Rivers), James Desana (R-Carleton), Neil Friske (R-Charlevoix), Jaime Greene (R-Richmond), Matt Hall (R-Kalamazoo), Mike Hoadley (R-Au Gres), Tom Kuhn (R-Troy), Matt Maddock (R-Milford), Brad Paquette (R-Niles), Josh Schriver (R-Oxford), Alicia St. Germaine (R-Harrison Township), Donni Steele (R-Lake Orion) and Dylan Wegela (D-Garden City) voted no.
Reps. Joey Andrews (D-St. Joseph), Felicia Brabec (D-Ann Arbor), Tyrone Carter (D-Detroit), Betsy Coffia (D-Traverse City), Cynthia Neeley (D-Flint) and Karen Whitsett (D-Detroit) were absent.
HB 5405 , which would allow individuals authorized under the PTLC to practice or assist with physical therapy, passed 97-7. Reps. Greene, Hall, Hoadley, Kuhn, St. Germaine and Steele were added to the list of yes votes.
On the floor, Zorn said he believes the bills will address critical staffing shortages across the state and better adapt Michigan to the “ever changing landscape of healthcare, particularly the increased use of telehealth services.”
He said the goal is to make physical therapy services more seamless and efficient, ensuring that patient care remains paramount.
Alternative Paramedics Licensing Bill Gets House OK
An alternate exam could be developed and used by the Department of Health and Human Services (DHHS) for those looking to become licensed paramedics under legislation the House passed today with bipartisan support.
According to Rep. Dave Prestin (R-Cedar River), this would provide a valuable second option for paramedics that would ultimately increase capacity in the state.
Currently, prospective paramedics must pass written and practical evaluations developed and approved by the National Registry of Emergency Medical Technicians.
SB 249, introduced by Sen. Kevin Hertel (D-St. Clair Shores), would keep the national accreditation as an option, but would develop a separate exam through DHHS.
The Department would have two years to come up with the criteria and choose a fee which could not exceed the national licensing fee of $152.
Licensees would then have the option to either become nationally licensed or go through the DHHS.
The bill is identical to HB 6086, which was introduced by former Rep. Jeff Yaroch in 2022, and which passed the House, 102-6.
Previous estimations found that establishing an examination program would cost DHHS around $2 million, with annual costs of $1.6 million per year and 15 full-time positions to implement and maintain the program.
A fee similar to that of the national registry, which could alleviate some of the program cost, has been estimated to produce revenue of $152,000.
The bill would also make a change to notification requirements given out by education sponsors, which conduct training for licensed emergency medical services professions and are reviewed and approved by DHHS.
The bill was supported by the Michigan Professional Firefighters, the Association of Michigan Fire Chiefs, the Michigan Fire Inspectors Society, the Michigan Association of Ambulance Services and the Michigan Professional Fire Fighters Union.
It was opposed by the Michigan College of Emergency Physicians.
On the floor, it passed, 101-4. Republican Reps. Steve Carra (R-Three Rivers), Neil Friske (R-Charlevoix) and Josh Schriver (R-Oxford) were joined by Rep. Julie Rogers (D-Kalamazoo) in voting no. Reps. Matt Hall (R-Kalamazoo), Mike Hoadley (R-Au Gres), Sarah L. Lightner (R-Springport), Matt Maddock (R-Milford) and Cynthia Neeley (D-Flint) were excused.
Other health policy legislation taken up at committee was Sen. Sarah Anthony (D-Lansing)’s
SB 27, a bill requiring health insurers to provide coverage for mental health and substance abuse disorder services at the same rate as offered for medical and surgical benefits in the same classification.
The bill would also prohibit additional financial requirements from being applied to mental health care benefits.
It passed, 93-12. Reps. Andrew Beeler (R-Port Huron), Carra, Cam Cavitt (R-Cheboygan), Jay Deboyer (R-Clay), James Desana (R-Carleton), Joseph D. Fox (R-Fremont), Friske, Jaime Greene (R-Richmond), Gina Johnsen (R-Lake Odessa), Brad Paquette (R-Niles), Schriver and Rachelle SMIT (R-Shelbyville) voted no.
The bill’s passage was applauded by Attorney General Dana Nessel, who said, “Michigan residents need legislation like Senate Bill 27 to require health insurers to provide parity in their coverage for substance use disorders and mental health treatments, the same as they cover similar medical benefits.
“We can strengthen the federal requirements by installing a state-level mandate and at the same time close loopholes that allow insurers to evade their responsibilities to consumers,” Nessel said. “A patient’s need for treatment of substance use disorder, or any other mental health needs can be every bit as acute, urgent and vital to a patient’s well-being as any other medical intervention.”
Opioid Recovery Given $50M More By House Panel
Opioid addiction recovery programs would share a combined $53 million more next fiscal year under a House spending plan that moved out of subcommittee in mid-April.
After sending the massive $37.76 billion Department of Health and Human Services (DHHS) budget to the full Appropriations Committee, Subcommittee Chair Christine Morse (D-Kalamazoo) said the state is sitting on $100 million as DHHS officials create the infrastructure to spend what is projected to be $1.6 billion over 18 years.
“I respect that (the Department) is creating something from nothing. They’re taking a massive influx of dollars, where a real comprehensive system did not exist, so I’m not going to fault them,” Morse said. “I just believe that at this point, when we have $100 million sitting on the books, we can find a way to get that out in an efficient way.”
DHHS officials told legislators earlier this year their goal is to take Michigan from having one of the highest rates of opioid overdose to the lowest.
The extra $53.4 million is on top of the $23.2 million already in the budget and will be split among community mental health entities ($30 million, non-Medicaid hospital programs ($8.3 million), tribal communities ($5 million) and other entities.
Otherwise, HB 5556 looked to fine-tune the governor’s recommendation with a few dollar-amount additions and subtractions as opposed to the elimination and creation of programs.
The House budget doles out more than 30 specific grants of a few million dollars or fewer to various hospitals, non-profits and other providers. The plan is .1 percent larger ($63 million) than what the governor recommended.
Morse said her guiding star in crafting the proposal was to make the most investments in areas where the state has been “severely lacking”—Behavioral health and child welfare, in particular.
“That was the priority for us,” Morse said. “We want people to have a good quality of life, and we want to make those investments where that was most likely to happen.”
Some noteworthy changes from the governor’s recommendation included:
– $10 million to help the poor pay their water bill debt
– $10 million to Wayne State Universities to support an effort to reduce nurse turnover and improve retention
– $9.2 million to help medical doctors serving impoverished areas pay off their student loans
– $8.1 million to increase Medicaid reimbursement rates for private duty nursing services by 25 percent
– $7.3 million for domestic violence and sexual assault survivor programs
– Autism behaviorial specialists’ Medicaid reimbursement rate would go from roughly $53 an hour to $62
– $3 million for a long-term care state ombudsman program
– Doubling a $5 million increase in pre-weatherization grants to $10 million
– $2.5 million in transitional housing for the homeless
– Instead of going $38 million more on rate increases for private child placement agencies, the House went with $25.4. Instead, $12 million was put into programs geared toward keeping children in their homes and out of foster care.
– Instead of $15 million more for emergency assistance, the House set aside $7.5 million
– $3 million for the Double Up Food Bucks program, to get more fresh produce into areas without much access to fresh fruits and vegetables.
– $31 million in racial disparity task force programming was taken out for use in the current fiscal year. The governor was looking to continue spending $45 million on the issue.