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MARIJUANA MOMENT

CONGRESSIONAL RESEARCHERS DETAIL LIMITATIONS OF MARIJUANA RESCHEDULING FOR STATE
MARKETS AND CRIMINAL JUSTICE REFORM


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 * Newsletter
   
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POLITICS


CONGRESSIONAL RESEARCHERS DETAIL LIMITATIONS OF MARIJUANA RESCHEDULING FOR STATE
MARKETS AND CRIMINAL JUSTICE REFORM

Published

5 hours ago

on

January 16, 2024

By

Kyle Jaeger

As the Drug Enforcement Administration (DEA) weighs a marijuana rescheduling
recommendation from health officials, congressional researchers are laying out
the limitations of the policy change— emphasizing that state cannabis markets
would continue to run afoul of federal law, and existing criminal penalties for
certain marijuana-related activity would remain in force.

In a report published on Tuesday, the Congressional Research Service (CRS)
explained the “legal consequences” of moving cannabis from Schedule I to
Schedule III of the Controlled Substances Act (CSA), as the U.S. Department of
Health and Human Services (HHS) has advised DEA to do following its
comprehensive scientific review.

“Moving marijuana from Schedule I to Schedule III, without other legal changes,
would not bring the state-legal medical or recreational marijuana industry into
compliance with federal controlled substances law,” CRS said.

State Governors Urge Biden to Reschedule Marijuana by Year-End for Economic and
Safety Benefits

State Governors Urge Biden to Reschedule Marijuana by Year-End for Economic and
Safety Benefits
Governors from six states are urging President Biden to fast-track the
rescheduling of marijuana from Schedule I to Schedule III, a move that could
have far-reaching economic and health implications. The governors of Colorado,
Illinois, Louisiana, Maryland, New Jersey, and New York have jointly penned a
letter to President Biden emphasizing economic benefits and aligning federal
policy with public opinion. Veuer’s Maria Mercedes Galuppo has the story.
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“With respect to medical marijuana, a key difference between placement in
Schedule I and Schedule III is that substances in Schedule III have an accepted
medical use and may lawfully be dispensed by prescription, while Substances in
Schedule I cannot,” it continued. However, in order for marijuana to be legally
prescribed, the Food and Drug Administration (FDA) would need to approve its
use, and plant medicines do not typically go through that approval process.

“Moreover, if one or more marijuana products obtained FDA approval,
manufacturers and distributors would need to register with DEA and comply with
regulatory requirements that apply to Schedule III substances in order to handle
those products. Users of medical marijuana would need to obtain valid
prescriptions for the substance from medical providers, subject to federal legal
requirements that differ from existing state regulatory requirements for medical
marijuana.”



Importantly, the report explains that only certain criminal penalties “depend on
the schedule in which a substance is classified,” while others are specific to
marijuana and would not automatically change with a Schedule III
reclassification.

“If marijuana were moved to Schedule III, applicable penalties for some offenses
would be reduced,” it says. “However, CSA penalties that apply to activities
involving marijuana specifically, such as the quantity-based mandatory minimum
sentences discussed above, would not change as a result of rescheduling.”



CRS did point out, however, that the scheduling change would “allow marijuana
businesses to deduct business expenses on federal tax filings” that they’ve been
barred from under an Internal Revenue Service (IRS) code known as 280E.

“Other collateral legal consequences would continue to attach to unauthorized
marijuana-related activities,” the report says.

Regardless of what scheduling decision is ultimately made, CRS said the Justice
Department would continue to be blocked from interfering in state medical
cannabis programs under an appropriations rider that Congress has annually
renewed each year since 2014.

“Thus, so long as the current rider remains in effect, participants in the
state-legal medical marijuana industry who comply with state law would be
shielded from federal prosecution,” the report says. “If the rider were to lapse
or be repealed, these persons would again be subject to prosecution at the
discretion of DOJ.”



The researchers also offered considerations for Congress, stating that if
lawmakers want to change the legal status of marijuana “it has broad authority
to do so before or after DEA makes any scheduling decision.” It listed a number
of existing legislative proposals that “would relax federal regulation of
marijuana,” while noting that “Congress could also seek to impose more stringent
controls.”

“Rescheduling or descheduling marijuana under the CSA could raise additional
legal questions,” it continues. “For instance, FDA regulates certain cannabis
products under the Federal Food, Drug, and Cosmetic Act, so Congress might also
consider whether to alter that regulatory regime or create some alternative
regulatory framework. In addition, relaxing the CSA’s restrictions on marijuana
could implicate the United States’ international treaty obligations.”



In September, CRS released a related analysis that focused on how rescheduling
would have “broad implications for federal policy” in areas such as taxes,
housing, immigration, military eligibility, gun rights and more. Researchers
also assessed that it is “likely” DEA will abide by the HHS recommendation,
based on past precedent.

HHS finally released the full recommendation and scientific findings it shared
with DEA last week, and HHS Secretary Xavier Becerra said his agency has
“communicated” their “position” on marijuana rescheduling to DEA and has
continued to offer additional information to assist with the final
determination.

As CRS said in its new report, DEA has steadfastly maintained it has “final
authority” over the matter and can make any scheduling determination that it
sees fit.



“DEA has the final authority to schedule, reschedule, or deschedule a drug under
the Controlled Substances Act, after considering the relevant statutory and
regulatory criteria and HHS’s scientific and medical evaluation,” the agency
said in a letter to lawmakers last month. “DEA is now conducting its review.”

The statement came in response to an earlier letter from 31 bipartisan
lawmakers, led by Rep. Earl Blumenauer (D-OR), that urged the agency to consider
the “merits” of legalization as it carried out its review.

DEA has faced pressure on both sides of the marijuana policy debate over recent
months, with advocates pressing for a Schedule III decision, or complete
descheduling, and prohibitionists urging the agency to keep cannabis in Schedule
I.



Prior to the HHS documents’ release, a coalition of 12 Democratic state
attorneys general implored DEA to move forward with federal marijuana
rescheduling, calling the policy change a “public safety imperative.”

In another letter last month, 29 former U.S. attorneys called on the Biden
administration to leave cannabis in Schedule I.

Last month, the governors of six U.S. states—Colorado, Illinois, New York, New
Jersey, Maryland and Louisiana—sent a letter to Biden calling on the
administration to reschedule marijuana by the end of last year.

Meanwhile, six former DEA heads and five former White House drug czars sent a
letter to the attorney general and current DEA administrator voicing opposition
to the top federal health agency’s recommendation to reschedule marijuana. They
also made a questionable claim about the relationship between drug schedules and
criminal penalties in a way that could exaggerate the potential impact of the
incremental reform.



Signatories include DEA and Office of National Drug Control Policy heads under
multiple administrations led by presidents of both major parties.

In October, Advocates and lawmakers who support cannabis reform marked the
one-year anniversary of Biden’s mass marijuana pardon and scheduling directive
this month by calling on him to do more—including by expanding the scope of
relief that his pardon had and by expressly supporting federal legalization.

Two GOP senators, including the lead Republican sponsor of a marijuana banking
bill that cleared a key committee in September, also filed legislation late last
year to prevent federal agencies from rescheduling cannabis without tacit
approval from Congress.

A coalition of 14 Republican congressional lawmakers, meanwhile, has urged DEA
to “reject” the top federal health agency’s recommendation to reschedule
marijuana and instead keep it in the most restrictive category under the CSA.

> Michigan Marijuana Sales Surpassed $3 Billion In 2023 As Retailers Smashed
> Monthly Record In December



 

Marijuana Moment is made possible with support from readers. If you rely on our
cannabis advocacy journalism to stay informed, please consider a monthly Patreon
pledge.

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Kyle Jaeger


Kyle Jaeger is Marijuana Moment's Sacramento-based managing editor. His work has
also appeared in High Times, VICE and attn.



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