A Prescription for Progress? Would a Schedule III Reclassification of Psychoactive Cannabis Help or Hurt State Operators?
Ohio State Legal Studies Research Paper No. 799
Drug Enforcement and Policy Center, September 2023
5 Pages Posted: 8 Sep 2023
Date Written: September 8, 2023
Abstract
On August 30, 2023, the U.S. Department of Health and Human Services (HHS) concluded a scheduling review of psychoactive cannabis and recommended that the Drug Enforcement Administration “reschedule” psychoactive cannabis from Schedule I to Schedule III under the Controlled Substances Act. The next 6 to 12 months could be among the most transformative for the U.S. cannabis industry, but progress is unlikely to come without regulatory confusion, conflicts of federal laws, and unintended consequences. This paper aims to answer major questions that remain following the release of HHS’s statement, including why psychoactive cannabis was on Schedule I given its medical uses, whether a move to Schedule III effectively legalizes existing state-compliant cannabis companies, if relief from 280E tax or advertising restrictions are likely, and whether a move to Schedule III opens up banking for existing cannabis companies. The paper ends with a look at the road ahead.
Keywords: Marijuana reform, marijuana legalization, Controlled Substances Act, cannabis regulation, psychoactive cannabis, marijuana rescheduling, cannabis industry, Schedule III, SAFE Banking
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