A coalition of cannabis companies and advocacy groups has been formed to help advance the conversation. They are embracing the benefits of a gradual rescheduling while pushing for wider legalization.
The Coalition for Cannabis Scheduling Reform, which revealed its plans exclusively to Marijuana Moment before an official launch on February 2, will work with advocates, stakeholders and lawmakers to promote education regarding the removal of marijuana from Schedule 1 of the Controlled Substances Act.
Unlike many other groups that advocate for full legalization and descheduling, the members of this group are united in the belief that moving cannabis from Schedule I to Schedule III, IV, or V would be a “historical progress” which shouldn’t go unnoticed.
While there is general agreement that a move like this would ease federal research restrictions and resolve important tax issues, some advocates caution against anything less than removing marijuana from the CSA. They claim that a simple rescheduling of marijuana would capsize the existing state markets, and allow big business to control the industry.
The date of the completion of the administrative review ordered by President Joe Biden late last year is not known. The U.S. Department of Health and Human Services must first conduct a scientific evaluation of the risks and benefits of cannabis, and then send its recommendations to the Drug Enforcement Administration in order for a final decision to be made. The heads of the agencies have stated that they are “working expeditiously” towards this goal.
The newly formed CCSR will engage federal officials from various departments in order to argue for rescheduling and descheduling. This will include collaborations with legislators, experts, and officials on the federal and state level.
The launch has been supported by some of the biggest names in the cannabis industry. Acreage Holdings is one of the largest names in cannabis.
Bryan Barash, the co-chairman of CCSR, and vice president, deputy legal counsel, and external affairs, at cannabis technology company Dutchie told Marijuana Moment on Monday in a telephone interview that the members “all unified” around the idea that they support reforming the scheduling.
“Our goal – and I think that everyone in this coalition has the same goal – is federal legalization of marijuana. “We strongly support descheduling,” said he. “We also believe that rescheduling Schedule III, IV, or V to Schedule III would be historic progress toward ending federal prohibition.”
Barash continued, “There will be many advantages over the current status quo. This is unacceptable from a moral, medical, legal, and ethical standpoint.” Let’s face it. It would be the first major change in federal cannabis policies in 100 years, regardless of whether it is descheduled or moved to Schedule III, IV or 5. “We would welcome any of these outcomes.”
The effects of rescheduling or descheduling marijuana would be different. Many advocates prefer the removal of the entire plant from the CSA, as it would eliminate federal criminal penalties for the plant.
Transferring marijuana to Schedules III or IV would have other symbolic and practical meanings. This would, for instance, mean that the federal government abandons its long-held belief that cannabis should remain in Schedule I, because it’s a dangerous drug without any medical value.
This move could promote research because it would remove the onerous federal regulations that scientists are currently required to follow when conducting studies on Schedule I controlled substances.
The industry would be able to finally take advantage of certain federal tax deductions, just like other businesses, because it wouldn’t have to worry about the controversial Internal Revenue Services code 280E that bars deductions from Schedule I and II drug sellers. In April , Rep. Earl Blumenauer(D-OR), filed a congressional bill that addresses this specific issue .
Barash stated that the notion that cannabis should be included in Schedule I or Schedule II with drugs such as heroin, cocaine, and fentanyl is not acceptable. “We are asking for a reasonable scientific, medical, and legal definition that is in line with common sense.”
The timing is right, as Congress considers several modest marijuana reform measures and the federal government looks at a change in scheduling. Even though advocates hope that the review will ultimately result in a decision to deschedule marijuana, there is a lot of skepticism.
Some people feel that rescheduling marijuana could have unintended consequences for the legal markets established by states across the nation under federal prohibition.
Khurshid Khoja , Board Chair Emeritus of the National Cannabis Industry Association, argued in a memo recently published that placing marijuana and THC on a lower schedule might inadvertently disrupt the industry, by shifting the regulatory and enforcement responsibility to FDA. He said that this could lead to cannabis products being subjected to the same rigorous and costly approval processes as are used for conventional drugs, under the Food, Drug & Cosmetic Act.
Khoja says that while DEA rarely prosecuted low-level cannabis offenders under the recent administrations, and the agency is prohibited by a congressional appropriations riders from interfering in the implementation state medical cannabis programs. He suggests rescheduling would embolden FDA’s regulatory and enforcement powers under FDCA.
Khoja, the founder of Greenbridge Corporate Counsel and a state-licensed cannabis business, wrote that a shift to Schedule III could “permanently freeze access to the interstate or international markets for existing state-licensed marijuana businesses.” This would leave those markets to well-capitalized pharmaceutical firms capable of navigating through the [New Drug Approval] Process.
He said that without additional statutory protections such as a “carve-out for whole flower cannabis” under FDCA the “sad Irony of opening the regulated market interstate to medical cannabis by rescheduling could be that the resulting FDCA application would lead to foreclosing the access to the market interstate for the vast majority state-licensed operators of the cannabis industry.”
Shane Pennington published an analysis late last year, which pushed back against this argument. Pennington wanted to “refute a widespread myth” that rescheduling drugs to schedules II to V would cause more harm than good.
While rescheduling may not be the best outcome we could hope for, he said, “it certainly wouldn’t hurt.” He added that the modest reform would be “a historic event, with tangible benefits for cannabis stakeholders and regulators as well as the general public.” The arguments to the contrary are based on faulty reasoning and assumptions which cannot withstand even the slightest scrutiny.
Barash told Marijuana Moment, CCSR’s Barash was his counterpart, that rescheduling marijuana “would not have any impact on FDA’s existing authority to control cannabis and state-legal businesses.”
He said: “It also would not change FDA resources or authority to enforce compliance, nor would it alter the legal status for cannabis under the FDCA,” he stated. “Rescheduling cannabis to Schedule III or IV can have tremendous benefits, without disrupting the existing state markets.” FDA can give further clarity by issuing an enforcement guidance that it won’t take enforcement actions against state-legal activities and products.”
In the coming weeks, CCSR is releasing a new report which will give a comprehensive overview on the coalition’s perspective and mission in the rescheduling discussion. The report will also attempt to explain the practical benefits that can be gained from scheduling reform even if it doesn’t involve the immediate elimination of prohibition.
The coalition acknowledges, however, that rescheduling could require additional actions to ensure the policy change is successful and without unintended effects.
CCSR stated that it would be working with legislators and officials, including governors, attorneys-general and mayors, to advance the scheduling reform. However, representatives refused to reveal the names of politicians who have endorsed the effort.
Barash stated that he could not “get into specifics” about how DEA and other federal agencies would be working together.
However, he said that “we will be actively partnering with folks across the spectrum–administration officials, elected officials, scientific medical and legal experts,” and CCSR is “certainly going to be putting things out for public consumption, both through the press and through our website, in our white paper, to make the case clear. We believe that the administration officials will be open to hearing these points of view.
“Everyone wants complete legalization.” Barash stressed that it all depends on the administrative opportunities. If there is still an opportunity to continue doing things through the administrative process, then the Coalition could do so. Everyone will push for full legalization, with or without a coalition.
Toi Hutchinson, president and CEO of MPP, said in a press release that “every day, we see the crushing burden that cannabis’s Schedule I status places on regulated cannabis businesses–particularly small and social equity operators–and communities impacted by the war on drugs.”
She said, “The Coalition for Cannabis Scheduling Reform strongly agreed with President Biden on the need for a modern approach to cannabis that is evidence-based, fair and equitable.”
The initial members of CCSR include: Arnold & Porter Kaye Scholer LLP, Bada Bloom, The Bronx Community Foundation, ConBud, Hemp for Victory, Hero Grown, Holistic Solutions, Housing Works, Justus Foundation, Kush Culture Industries, Major Bloom, Majority Minority Group, Marcu Enterprises, New York CAURD Coalition, Perkins Coie LLP, PharmaCann, Physicians Research Center, LLC, Queen City Remedies, Simply Pure Trenton, Smacked
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Photo by Mike Latimer.
The post New Coalition Of Major Marijuana Groups launches Push For Scheduling Reform, Even If It Means Waiting To Full Legalization first appeared on Marijuana Moment.
