CHARLESTON, W.V.–The West Virginia legislature adjourned without implementing any changes to the state’s medical cannabis program, even as the state treasurer has raised doubts for the financial infrastructure behind it.
The Senate had proposed the establishment of a credit union as part of a bill it was working on.
In a letter to Gov. Jim Justice and legislative leaders, State Treasurer John Perdue expressed concerns that because of the disparity between state and federal law regarding medical cannabis, the state cannot support the program with its financial services. As credit unions in other states know, as well, it’s an issue that has bedeviled many.
“Our vendors currently do not desire to engage in accepting any deposits related to sales, fees, licenses, or taxes related to state-sanctioned medical cannabis sales,” the letter states. “Therefore, in the best interest of the State, the Treasurer’s Office is unwilling to accept the funds derived from medical cannabis at this time. Any other depositing alternative is not a viable option.”
The West Virginia House passed a bill Feb. 28 that would increase the number of growers, processors and dispensaries that can be permitted under the program, following recommendations from the Medical Cannabis Advisory Board. The Senate has proposed establishing a credit union as a workaround.
“The State Treasurer may designate a credit union only for the banking functions necessary for the West Virginia Medical Cannabis Act,” the Senate proposal states. It contains similar language calling for another credit union to receive state funds for the program, according media reports.
The bill never made it to the floor.
The Senate Judiciary Committee had proposed legislation that contained provisions that would decriminalize the possession of marijuana; allow dispensaries to deliver it to patients’ homes; instruct the Bureau of Public Health to promulgate a rule allowing the dispensing of smokeable marijuana, which is not currently available within the program; and require the BPH to issue permits to 100 dispensaries around the state.
West Virginia’s medical cannabis program is scheduled to begin in the summer of 2019