Compensation and Equity

DEA’s Proposal to Reschedule Marijuana Sparks Significant Public Interest and Regulatory Debate






DEA Efforts to Reschedule Cannabis

DEA’s Proposal for Rescheduling Cannabis

On May 16, 2024, the Drug Enforcement Administration (DEA) took a significant step forward by proposing a rule to reschedule marijuana from its current classification as a Schedule I drug to a Schedule III drug under the Controlled Substances Act (CSA). This move signifies a shift in the federal stance towards recognizing the medical potential of marijuana and addressing its high classification due to abuse potential.

Currently, marijuana is listed alongside other Schedule I drugs such as heroin, LSD, and ecstasy. These substances are classified as having no accepted medical use and a high potential for abuse. In contrast, a move to Schedule III reflects a recognition that marijuana has a moderate to low potential for physical and psychological dependence. Other Schedule III drugs include substances such as ketamine and anabolic steroids.

Regulatory and Legal Implications

Even if marijuana is rescheduled to Schedule III, it will still be subject to stringent regulatory controls. These controls include compliance with the Federal Food, Drug, and Cosmetic Act (FDCA) and obtaining FDA approval for any interstate commerce activities involving marijuana. This means that while the rescheduling may reduce some legal barriers, significant federal regulations will still govern the cultivation, distribution, and use of marijuana.

The DEA opened a public comment period for the proposed rule, which concluded on July 22, 2024. Remarkably, nearly 43,000 comments were submitted, setting a record for the highest number of comments ever received by the DEA during such a period. This overwhelming public response underscores the importance and sensitivity of the subject.

Moving Forward with Public Hearings and Decision Making

Following the public comment period, the DEA announced a hearing on the proposed rule for December 2, 2024, at the DEA Hearing Facility in Arlington, VA. Interested persons must request participation by September 30, 2024. This hearing will be overseen by an administrative law judge (ALJ) who holds broad authority to determine the timeline of the hearing and will later submit his or her findings to the DEA for review.

After the hearing, the DEA will review the ALJ’s findings along with other relevant information, including comments and recommendations from the Department of Health and Human Services (HHS) and the Office of Legal Counsel (OLC). This review process will culminate in the DEA making a final determination, subsequently published in the Federal Register. However, it’s important to note that a final order on the rescheduling is not expected to become effective until early 2025, and potential litigation could delay the process further.

One of the most pressing issues raised by the proposed rule is how federal regulations will align with state laws, especially in states where marijuana is legal for medical or recreational use. The coordination between state and federal regulations will be a significant consideration for licensing, manufacturing, and dispensing marijuana. This alignment may substantially impact how businesses operate within the marijuana industry.