It’s the first week of September 2023, and reports have emerged indicating that the Department of Health and Human Services (HHS) will be recommending the reclassification of cannabis from Schedule I to Schedule III under the Controlled Substances Act (CSA). While HHS's recommendation is seen by the majority as a potential step forward, many cannabis industry groups are sounding the alarm and urging the public to look below the surface of yet another government promise. 

In this Daily Nug, we’re breaking down the joint press release while urging our readers to spread the word to the streets that things are not as they appear. It’s time to roll up our sleeves and demand real reform in the cannabis industry.

"Everyone who cares about communities impacted by cannabis prohibition need to contact the President and your Congressional Representatives and demand they finally and fully end this madness by descheduling cannabis. President Biden made a promise to fully decriminalize and it's on us to hold him to it." said Jason Ortiz, Executive Director of Students for Sensible Drug Policy.

 "Our community has fought and won legalization in 24 states and we can win this fight too, but only if we stand together and reject these crumbs when we were promised a whole pie."

A Unified Front for Cannabis Reform

Several notable organizations, including the Drug Policy Alliance (DPA), Minority Cannabis Business Association (MCBA), National Cannabis Industry Association (NCIA), Parabola Center for Law and Policy, Better Organizing to Win Legalization/BOWL PAC, Students for Sensible Drug Policy (SSDP), and Marijuana Justice Coalition, have come together to advocate for meaningful cannabis reform during this recent consideration by HHS. While movement in the right direction is always welcome, these groups are emphasizing the need to go even further than the limitations of the HHS’s recommendations.

Limited Impact on Criminal Justice and Equity

One critical aspect that reform advocates underscore in this statement is that rescheduling cannabis wouldn't automatically lead to the release of current cannabis convicts or the expungement of related records. Furthermore, the unresolved issues of immigration-related consequences and eligibility for public benefits would persist. The criminalization's disproportionate impact on Black and Latino communities would continue, despite the change in scheduling.

Existing Programs and Businesses Remain Unchanged

Rescheduling cannabis to Schedule III would not result in federal legalization of medical and adult-use programs in the 38 states that have already embraced these initiatives. The thriving state-legal cannabis businesses, which provide employment for over 400,000 workers, would not directly benefit from this rescheduling effort.

Tax Implications and Small Businesses

While rescheduling could potentially relieve existing cannabis companies from IRS section 280E penalties, it does not offer specific tax relief or protections for small businesses operating within the cannabis industry. This highlights the need for comprehensive reform that addresses the economic challenges faced by various stakeholders.

FDA and the Access to Medical Marijuana

Rescheduling cannabis to Schedule III would not automatically grant legal access to state-authorized medical marijuana programs. Moreover, there is a risk that cannabis products could be deemed unapproved drugs by the Food and Drug Administration (FDA), potentially limiting patients' access to essential medical treatments.

Even if the Fed stays true to its word and allows the states to continue cannabis business as normal, there is nothing holding back big pharma or any other giant from using the courts to disrupt the industry, and even crush small operators. 

Rescheduling ≠ Decriminalization

It's crucial to emphasize that even if cannabis were to be rescheduled to Schedule III, federal criminal penalties for cannabis possession would persist. 

The promise of decriminalization, which holds significant social and justice implications, would not be fully realized through rescheduling alone. The statement suggests that a comprehensive approach that involves the removal of cannabis from the CSA is essential to achieving the desired outcomes of decriminalization.

Advocating for Holistic Reform

While the recommendation to reschedule cannabis from Schedule I to Schedule III is seen as a potential step forward, it falls short of addressing the historical injustices tied to cannabis and the thriving legal cannabis industry. To honor President Biden's campaign promise and to bring about meaningful and lasting change, the removal of cannabis from the Controlled Substances Act remains an imperative. This move would not only align federal law with state regulations but also serve as a pivotal step toward achieving a more equitable and just society.

Download the Press Release in full here.