DEA Rescheduling Hearing Draws Notices From Both Sides

Groups supporting and opposing marijuana legalization have filed formal notices to testify at next month's Drug Enforcement Administration hearing on rescheduling cannabis from Schedule I to Schedule III.

The notices, submitted ahead of the February hearing deadline, signal what could become a contentious public forum on the Biden administration's proposed reclassification. Acting Attorney General Todd Blanche issued an order in March that would immediately reclassify state-licensed medical cannabis, setting the stage for the upcoming proceedings.

The DEA hearing represents the first major public forum where stakeholders can present evidence and testimony regarding the most significant proposed change to federal cannabis policy in decades. Under the Administrative Procedure Act, federal agencies must provide opportunities for public comment on major regulatory changes—and this hearing fulfills that requirement.

Who's Participating

While the DEA has not yet released a complete list of registered participants, advocacy organizations from across the political spectrum have confirmed their intent to testify. The diverse group of participants reflects the broad coalition of interests affected by potential rescheduling, from medical cannabis patients and industry operators to law enforcement organizations and drug policy opponents.

The hearing will allow each registered participant to present oral testimony, submit written evidence, and potentially cross-examine other witnesses. This format differs from typical public comment periods, which generally only accept written submissions without opportunities for dialogue or rebuttal.

The Rescheduling Timeline

The path to this hearing began in August 2023, when the Department of Health and Human Services recommended to DEA that cannabis be moved to Schedule III. That recommendation followed a comprehensive review ordered by President Biden, who directed federal agencies to examine marijuana's current Schedule I classification alongside drugs like heroin and LSD.

Schedule III substances—which include ketamine and some anabolic steroids—are defined as drugs with moderate to low potential for physical and psychological dependence. The reclassification would not legalize marijuana federally, but would remove several significant barriers facing state-licensed cannabis businesses.

Most notably, rescheduling would eliminate the application of Internal Revenue Code Section 280E, which currently prevents cannabis companies from deducting ordinary business expenses on their federal tax returns. Industry analysts estimate this change alone could save licensed operators hundreds of millions of dollars annually.

What's At Stake

The hearing comes at a critical juncture for the cannabis industry. Thirty-eight states have legalized medical marijuana, and 24 have approved adult-use programs. Yet the federal Schedule I classification creates ongoing conflicts between state and federal law, complicating everything from banking access to research protocols.

For opponents of legalization, the hearing represents a chance to present evidence they believe contradicts HHS's recommendation. Some groups have argued that marijuana's rising THC potency and concerns about youth access justify maintaining stricter federal controls.

Supporters, meanwhile, see rescheduling as an overdue recognition of cannabis's accepted medical uses and lower risk profile compared to Schedule I substances. They're expected to emphasize research showing marijuana's therapeutic applications and safety record relative to currently scheduled drugs.

Next Steps

The February hearing will likely span multiple days, depending on the number of registered participants and the complexity of testimony presented. After the hearing concludes, DEA will review the record and issue a final decision on whether to proceed with rescheduling.

That decision could come within weeks or stretch into months, depending on the volume of evidence presented and any legal challenges that emerge. The agency is not bound by HHS's recommendation, though it typically gives substantial weight to the health department's scientific analysis.

If DEA ultimately approves the rescheduling, the change would take effect immediately upon publication in the Federal Register. However, legal challenges from either supporters or opponents could delay implementation while courts review the administrative record.

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This article is based on original reporting by www.marijuanamoment.net.