Since more than 50 years, the federal agency has classified cannabis as a Schedule I substance, which means that it is highly addictive and has no accepted medical use. Last week, the Department of Health and Human Services recommended to the Drug Enforcement Administration that cannabis be classified as Schedule III. This means that it has a moderate to low abuse-potential, a medical use that is currently accepted, and a minimal psychological dependence potential.
Why Now?
The Biden administration announced in October 2022 that it would request the Secretary of HHS to begin the administrative process for a rapid review of how marijuana is classified under federal law. The Brookings Institute explained years ago that the executive process of rescheduling marijuana is more complex than the legislative path.
There’s no secret about the fact that the next presidential election will be held in less than a year, and it’s clear the President is looking to fulfill his campaign promise of reforming the marijuana laws across the country.
What does HTML0 mean?
It’s important to remember that HHS’s recommendation to DEA was just that: a suggestion. The recommendation is not binding. HHS may have reached the same conclusion as DEA, but it is not required.
One positive outcome of cannabis being moved to Schedule III would be that 280E no longer applies to businesses who touch plants, thus removing a punitive provision from the tax code.
Khurshid Khoja Esq., NCIA’s Board Chair Emeritus, “…it is important to remember that rescheduling does not mean the federal Food Drug and Cosmetic Act would be applied to marijuana for first time. It already applies, and, like the federal Controlled Substances Act, it would continue to apply even after rescheduling. The FDCA, however, would still apply to hemp products after descheduling, unless there is a statutory authority that allows FDA to do so.
Some claim that a shift to Schedule III will have minimal impact on individuals and businesses. We at NCIA are cautiously optimistic, but we also recognize that moving cannabis from Schedule I to III may have limited benefits. However, it does not align federal law to the 38 U.S. States which already regulate cannabis for adult or medical use.
What next?
The DEA will now begin the review of scheduling after HHS makes their recommendation.
There are differing opinions on what it would look like to move from Schedule III. There would be no 280E but what about enforcement priorities. Interstate commerce? Criminal penalties? Many unknowns.
NCIA had previously provided detailed feedback regarding legislative efforts and produced a roadmap that was based on common sense. It’s time for Congress and the American people to work together. Do not misunderstand me, this recommendation is undoubtedly a step forward and long overdue. We must not lose sight of our ultimate goal, which is to remove cannabis from the Controlled Substances Act.
Have questions?
Join NCIA for a webinar on September 14, at 1pm ET, where we will answer all of your questions. Register now to learn more about the impact of this legislation on your cannabis business and industry.
The National Cannabis Industry Association published the first article Breaking down the recent Cannabis Rescheduling Recommendation.
