The DEA’s Upcoming Hearing on Marijuana Rescheduling: What’s at Stake?
The Drug Enforcement Administration (DEA) has rescheduled the critical hearing on the proposal to reclassify marijuana until December 2, 2024, after the November election. Â DEA's delay has sparked a flurry of reactions about its implications for federal cannabis policy.
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Background: The Push for Reclassification
Following longstanding grassroots advocacy for the reclassification of marijuana, the DEA began to officially reconsider marijuana’s Schedule I classification following President Biden’s October 2022 directive for a comprehensive review of U.S. cannabis policy. In January 2024, the Department of Health and Human Services (HHS) concluded that marijuana might qualify for a less stringent classification under federal law. Following this, in April 2024, the DEA proposed a rule to move marijuana from its current Schedule I classification to a less restrictive Schedule III, which would reduce legal and tax burdens for the cannabis industry.
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The Public’s Response and the DEA’s Decision
The proposal has been met with a significant outpouring of public feedback. During the  DEA’s 60-day comment period on rescheduling marijuana, nearly 43,000 comments were submitted, 10 times the average number of comments submitted during a comment period. An overwhelming 92.45% of these comments supported reclassification, with 62% arguing that cannabis be descheduled completely.
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Following pushback from the anti-marijuana legalization group SAM and a group of 18 attorneys general the DEA announced it would postpone the scheduling hearing until December 2, 2024, effectively postponing any final action until after the presidential election in November.
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This delay has disappointed many, particularly those in the cannabis industry, as reclassification is a critical step toward alleviating financial and regulatory pressures.Some in the cannabis industry have noted that the delay could mean another year of onerous tax implications under IRS Code 280E, which makes a significant difference in the bottom line of cannabis businesses.
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The Road Ahead
As the hearing date approaches, the future of marijuana’s federal classification remains uncertain. The outcome will not only affect the cannabis industry but also have broader implications for criminal justice, public health, and state versus federal regulatory dynamics.
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For now, stakeholders across the spectrum will be preparing for a high-stakes discussion that could significantly alter the landscape of cannabis policy in the United States. Whether or not the reclassification will advance will depend on the outcome of the December hearing and may be affected by the political climate following the upcoming election.
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While stakeholders and attorneys are split on the impacts, opportunities, and potential unintended consequences this scheduling action may result in, this is a signal for businesses to get ready for the
changes ahead. Stay informed as this historical rulemaking makes its way through the bureaucratic process!
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To help your business plan for and understand these changes in federal policy, schedule a consultation with us at 541- 632-3946 or info@earthlawllc.com.
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