DENVER — It was reported Tuesday that the U.S. Drug Enforcement Administration will reclassify cannabis from Schedule I to Schedule III, per the August recommendation from the U.S. Department of Health and Human Services. The decision stems from an October 2022 directive from President Joe Biden to HHS and the Department of Justice, requesting they initiate the process of reviewing cannabis' Schedule I classification.
The DEA’s announcement marks a historic shift in federal drug policy. For more than 50 years, cannabis has been classified under Schedule I, which is reserved for the most dangerous substances with no accepted medical value and high potential for abuse. The agency’s decision to reschedule cannabis to Schedule III acknowledges cannabis’s medical efficacy and relatively low potential for abuse.
“This is a remarkable about-face by the DEA, which spent decades denying the true medical value of the cannabis plant,” said Brian Vicente, founding partner of national cannabis law firm Vicente LLP. Vicente LLP has been at the forefront of cannabis policy reform for more than a decade and actively engaged in the Coalition for Cannabis Scheduling Reform, which strongly advocated for removing cannabis from Schedule I.
“While a strong case can be made for removing cannabis from the federal drug schedules entirely, rescheduling marks a huge step forward for commonsense cannabis policy in our country,” Vicente said. “This action will have massive impacts, both practically for the cannabis industry and symbolically for the reform movement. We have entered a new era of dialogue and policy around this historically maligned plant.”
Attorneys and policy experts from Vicente LLP have published an analysis of the decision that highlights the next steps in the rescheduling process and the implications of Schedule III for the state-legal cannabis industry. The firm will also host a free online briefing Friday at 10 a.m. MT, at which several national cannabis policy thought leaders will be available for Q&A, including attorneys with specialized knowledge of intellectual property laws and the 280E tax issue, both of which will be significantly impacted by rescheduling. See below for details.
The DEA’s proposed rule is expected to undergo a public comment period, after which it will issue a final rule based on HHS’s evaluation and recommendation, DEA’s own analysis, public comments, and the record of any hearing it holds on the subject. Public comment periods are typically 30-60 days but can be extended to 90 days if DEA determines more time is needed.
“The DEA’s proposed rule is a major step forward toward the ultimate goal of ending federal cannabis prohibition,” said Vicente LLP partner Shawn Hauser, who closely follows the federal scheduling process. “This will be a historic rulemaking process to formalize the DEA’s proposed reclassification. It’s likely the best outcome possible, given the realities of the federal administrative review process. This historic action by the Biden administration has the potential to embolden Congress to finally pass legislation that federally legalizes and regulates cannabis for medical and adult use.”