From federal licensing and registration to an expedited review process, these are the basics
No matter how boring or slow-moving some people (ahem) may find the topic of federal rescheduling, analytics show that readers just can’t get enough. It’s understandable, of course, especially for those on the business and compliance side of things, and so we’re sharing anything and everything we come across that may be useful.
During our recent interview with Massachusetts Cannabis Control Commission Executive Director Travis Ahern, there were several mentions of the Cannabis Regulators Association (CANNRA). Specifically, the trade group’s April 27 “Overview of DOJ Final Order on Marijuana Rescheduling.”
It is an extremely dense document, but it is also a critical reference, since Mass and other state cannabis regulators are using it for guidance. And it’s not a secret, so we figured that it could be helpful to just share it here. Plus we excerpted some key points below:
- This order moves only medical marijuana – in the form of FDA approved marijuana drugs and statelicensed medical marijuana from Schedule I (which is federally illegal) to Schedule III (which recognizes and allows for medical use).
- Medical marijuana products and the companies that make them are no longer subject to the federal tax provision 280E, which has prohibited businesses from deducting common business expenses and operating costs if they are involved in trafficking a Schedule I or II controlled substance.
- There will be a federal registration and licensing system – as required under the UN Single Convention. Manufacturers, Distributors, and Dispensers in state-regulated programs who want to participate will need to register with the DEA.
- The order creates an expedited review process under which applicants holding state medical marijuana licenses may submit their existing state credentials as evidence of state law authorization. Applications submitted within 60 days of the publication of the rule will be processed within 6 months, and early applicants can operate lawfully under their state licenses during DEA review.
- Recreational marijuana and marijuana obtained outside of a DEA-registered, state regulated medical marijuana marketplace remains Schedule I. There will be an administrative hearing process beginning June 29th to consider broader rescheduling of non-medical marijuana from Schedule I to III.
