Justice Dept. Plans Reclassification of Cannabis to Less Dangerous Drug
WASHINGTON — President Joe Biden on Thursday announced a recommendation for the U.S. Drug Enforcement Administration to relax restrictions on cannabis.
“This is monumental,” Biden said in a video announcement. “Today, my administration took a major step to reclassify [cannabis] from a Schedule 1 drug to a Schedule 3 drug. It’s an important move toward reversing long-standing inequities.”
The proposed rulemaking by the Department of Justice was published in the Federal Register.
Cannabis, whose active ingredient is THC (delta- 9-tetrahydrocannabinol), has been classified as a highly restricted and illegal Schedule 1 drug under the federal Controlled Substances Act since 1970.
Biden’s proposal represents the biggest change in drug policy since cannabis was criminalized.
The publication of the proposed rule comes after federal health officials determined the drug had medical uses and was not seriously dangerous.
Schedule 1 refers to high-level illegal drugs like heroin that carry felony penalties.
Schedule 3 is considered dangerous only when it is abused but is not strictly enforced for possession of it. Other Schedule 3 drugs include steroids and ketamine.
Biden first recommended a review of federal cannabis law in October 2022. About the same time, he pardoned thousands of persons convicted on federal charges of possession of cannabis.
“It adds to the action we’ve taken to lift barriers to housing, employment, small business loans, and so much more for tens of thousands of Americans,” Biden said in his announcement.
“Look, folks, no one should be in jail simply for using or possessing [cannabis], period,” Biden said. “Far too many lives have been upended because of a failed approach to [cannabis]. And I’m committed to righting those wrongs.”
For the growing number of cannabis dispensaries nationwide, it means they will need to register with the Drug Enforcement Administration.
Among the 24 states that legalized recreational cannabis and 17 that allow it for medical purposes, the drug currently is regulated only by local authorities.
There are about 15,000 cannabis dispensaries nationwide that would be affected by any DEA rule change. The anticipated new federal oversight also could create new regulatory expenses and restrictions for them, possibly cutting into their hefty profits.
Under the proposed rule change, the DEA would treat cannabis dispensaries like pharmacies with strict reporting requirements. The agency would allow sales of cannabis for medical reasons but would continue to ban recreational use.
According to a survey by MJBizDaily, the average dispensary owner makes between $250,000 and $500,000 per year. The average dispensary reports about $2 million in sales yearly with a 12% profit margin.
MJBizDaily refers to Marijuana Business Daily, a Colorado-based business news outlet for professionals in the recreational and medical cannabis industry.
The DEA is proposing the rule change on a recommendation from the U.S. Department of Health and Human Services after a policy review by the White House Office of Management and Budget. The DEA is a division of the Justice Department.
“Once published by the Federal Register, it will initiate a formal rulemaking process as prescribed by Congress in the Controlled Substances Act,” a Justice Department statement said.
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