The Associated Press recently reported that the U.S. Drug Enforcement Administration (DEA) will move to reclassify cannabis — a historic shift that could have wide ripple effects across the country.
In the wake of this announcement, you may have a few questions. What does rescheduling actually mean? What could the implications be for patients on their medical cannabis journey? In this blog, we’ll break down what the big news means and what could happen next.
Understanding current drug scheduling for cannabis
The DEA classifies drugs, substances, and certain chemicals used to make drugs into five distinct categories or “schedules.” Classification is dependent on the drug’s acceptable medical use and abuse potential. Abuse rate is a determinate factor in scheduling; Schedule I has the most abuse potential while Schedule V drugs have the least abuse potential.
As part of the Controlled Substances Act of 1970, the Federal government categorized cannabis as a Schedule I substance. This is defined as a “drug with no currently accepted medical use and a high potential for abuse” and some examples of other Schedule I drugs include LSD, ecstasy, and peyote.
This proposed rescheduling would move cannabis to the less tightly regulated Schedule III group, defined as “drugs with a moderate to low potential for physical and psychological dependence.” Ketamine, anabolic steroids, and testosterone are some examples of current Schedule III drugs.
This proposed change is so historic because it is the first time the DEA has recognized the medicinal uses of cannabis and its low risk for abuse.
Potential implications of rescheduling cannabis
It’s important to keep in mind that rescheduling does not legalize cannabis outright for recreational use. Schedule III drugs allow for some medical uses, but are still controlled and subject to rules and regulations. Rescheduling would stand to have the largest impact on cannabis research and business taxes.
Cannabis research
The Controlled Substances Act requires scientists to register with the DEA if they want to research Schedule I substances. The current scheduling of cannabis has also made it difficult to conduct authorized clinical studies that involve administering the drug. Rescheduling would ease those research barriers, improving access to data and education around the plant and opening the door to fully explore the medical benefits cannabis could provide.
Cannabis business taxes
If rescheduling is approved, it means state-legal cannabis businesses could start taking federal tax deductions they’ve been previously banned from under Internal Revenue Service (IRS) code 280E. Some industry groups estimate taxes can make up 70% or more of total operating expenses for a cannabis business. If that tax burden were to be reduced, cost savings could be passed on to consumers in the form of less expensive cannabis products.
What does rescheduling cannabis mean for medical cannabis patients?
The Associated Press reported, “No changes are expected to the medical marijuana programs now licensed in 38 states or the legal recreational cannabis markets in 23 states, but it’s unlikely they would meet the federal production, record-keeping, prescribing and other requirements for Schedule III drugs.”
At this point in time, the proposal is still in the review phase and no immediate changes will impact the medical or recreational adult-use markets.
Next steps for cannabis rescheduling
This proposed policy change is just that — a proposal. Technically, nothing has happened just yet as the proposal must first be reviewed by the White House Office of Management and Budget. Next, it will undergo a public comment period and a review by an administrative judge. After this comment period and review, which could be a lengthy process, the agency would eventually publish the final rule.
Navigate the world of medicinal cannabis with Canna Care Docs
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