The U.S. Department of Health and Human Services’ proposal to reclassify cannabis from a Schedule I to a Schedule III substance under the Controlled Substances Act faces an uncertain effective date due and potential legal battles.
The recommendation, if approved by the Drug Enforcement Administration, would shift cannabis into a category that recognizes its medical benefits and lower potential for abuse versus Schedule I substances. The reclassification could impact several legal and economic aspects of the industry in major ways, but it likely faces delays from opposition and court proceedings.
“I think that the whole industry thinks that ‘Oh, HHS has given its recommendation and now the DEA is going to approve it, they’ll issue a rule and we’ll all be good,’” said Sally Peebles, lead southern counsel for Vicente. “And that’s just not the case.”
The timeline for the proposed change remains unclear. According to the process, once the DEA reviews and endorses the HHS recommendation, a proposed ruling will be filed in the Federal Register, which is expected to initiate a 60-day public comment period.
Peebles noted that during the comment period, opposition groups may request a hearing before an administrative law judge. The DEA would then need to issue its final ruling, with the reclassification effective 30 days later.
However, if the decision is appealed, the timeline could be extended for further judicial review.
Money talks
In the best-case scenario, the effective date could be as early as 90 days after the DEA’s initial ruling. But, according to a memo by consulting firm GreenWave Advisors, that too is subject to change.
“Unless the industry mobilizes and funds attorneys and policy advisors to get this done, then this isn’t going to get done,” Peebles added. “Because the opposition to marijuana being rescheduled is huge, and they are well financed.”