Thoughts on DEA's Marijuana Rescheduling Hearing Announcement (Dec. 2)

Yesterday, the Drug Enforcement Administration (DEA) near-noticed a listening to for its marijuana rescheduling proposal. The listening to would start on December 2, 2024 at 9 a.m. ET, and will span a number of days and even weeks. The announcement got here through an unpublished “discover of listening to on proposed rulemaking” (NOH).

The ultimate NOH is about for publication this Thursday, August 29. Nonetheless, nothing ought to change between at times. Which means we lastly know with certainty that if marijuana rescheduling occurs, it gained’t be till after the November elections.

Beneath are some ideas on the newest improvement, in Q&A format.

Did you inform us so?

Sure, we instructed you so. Again in March, when DEA agreed to provoke rulemaking to reschedule marijuana, I wrote that “I doubt hashish might be on Schedule III by November.” Extra lately, through the open remark interval, I once more said that “you’ll be able to count on this course of to be ongoing on the time of the November elections.”

Why are you telling us that you just instructed us so?

It’s enjoyable in fact; however greater than that, I consider expectations by some have been overly optimistic as to rescheduling timelines. I’m not simply speaking about on social media. I’ve seen doubtful forecasts in funding professional formas and elsewhere.

At this level, hashish companies ought to examine their expectations for planning functions (particularly tax planning functions) no less than via subsequent 12 months. There may be nonetheless no assure the Schedule III will occur, and there’s definitely no assure that Schedule III would apply to the 2024 tax 12 months.

What can hashish companies do at this level?

Wait a couple of days for NOH to drop, then signal as much as take part within the listening to if that’s of curiosity to you. You’ll have 30 days from the date of NOPHR to enroll, which is September 28, 2024, I consider.

Aside from that, the remark interval on DEA’s proposed Schedule III rule closed final month. You could possibly be calling and writing your Congressional reps, I suppose, however even essentially the most highly effective and vocal amongst them haven’t been capable of transfer issues alongside.

events must also stay looking out for proposed “marijuana particular controls” from DEA, which ought to accompany the present proposed guidelines in some unspecified time in the future. That could possibly be an entire ‘nother can of worms, as I defined again in Might.

Did Biden muck issues up?

I form of suppose he did. Again in January, I argued that “Biden handed the buck, placing us on an unsure, circuitous path” when he instigated this course of. He might have executed extra, and sooner, in step with his marketing campaign guarantees.

Now that we all know a listening to won’t happen till December, it appears extra probably than ever that marijuana will stay on Schedule I via January, when we’ve got a brand new President. I’d prefer to be flawed.

Are extra delays on the horizon?

Could possibly be, to the extent that the NOH might even be thought of a “delay.” Past that, it’s laborious to say. DEA has quite a lot of discretion to hurry up or decelerate this course of. From the Administration’s perspective, a slower course of might assist insulate its choices, particularly given the entire eyeballs on this factor (over 40,000 feedback submitted).

And but, whereas DEA would possibly attempt to run a cautious, clear course of, the prospect of litigation round rescheduling could be very actual. It’s additionally doable {that a} new President makes an attempt to place the brakes on issues come January. I don’t suppose that is probably, however I’m no pundit both. For some scuttlebutt on that, Marijuana Second ran a great piece yesterday.