Weeks after the Drug Enforcement Administration proposed loosening the federal prohibition on marijuana, the next phase in the policy battle over the drug’s status is starting to take shape.
The DEA is accepting public comments on the proposal through mid-July, which could include an analysis of the economic impacts of looser federal rules.
An administrative law hearing will likely follow, providing a forum for opponents to challenge the agency’s decision, and marijuana’s potential for misuse could come into question.
Meanwhile, Congress could address several related issues, including banking access for state-legal marijuana businesses and proposals to help communities harmed by decades of federal prohibition.
Rep. Earl Blumenauer, a Democrat from Oregon who is a longtime advocate of marijuana legalization and is retiring at the end of the year, has urged his colleagues to step up the administration’s efforts by taking up bills on related issues.
Blumenauer, in a May 17 interview, noted the popularity of a more tolerant approach to the drug and said the political aspects of the issue should spur action, despite the upcoming election season that typically delays legislative action.
“Congress may not do much between now and November, but they should,” the 14-term congressman said. “This is an election year, so there’s no harm in being more aggressive.”
Economic impact
in Proposed Rules In a report published in the Federal Register last month, the DEA specifically asked for comment on the economic impact of moving drugs from a Schedule I to the less-regulated Schedule III listing under the federal Controlled Substances Act.
That likely means officials will consider the impact of allowing state-legal marijuana businesses to deduct business expenses from their federal taxes, Mason Tvert, a partner at Denver-based cannabis policy and public policy firm Strategies 64, said in an interview. Current LawNo deductions are allowed.
This problem is recognized by advocates such as Blumenauer and F.Oregon Democrat Ron WydenHe said he is the most important person for the industry because he chairs the U.S. Senate Finance Committee, which writes tax policy.
Blumenauer said that under the current system, thousands of businesses recognized under state law are struggling to turn a profit or are operating at a loss.
Potential for abuse
The DEA typically considers three factors when assessing how strictly to regulate a drug: its medicinal effects, its potential for abuse compared to other drugs, and its potential to cause physical dependence.
a 2023 Analysis A U.S. Department of Health and Human Services study examining data from states where medical marijuana is legal found that “there is reliable scientific evidence supporting the medical use of marijuana.”
The discovery may prompt the DEA to consider other factors, Tubert said.
“The battleground going forward will be how to define potential abuse,” he said.
Agency split?
But the DEA’s proposed regulations reveal divided opinions among government agencies about the drug’s potential harms, Paul Armentano, executive director of the National Organization for the Reform of Marijuana Laws, a longtime leading advocacy group, told States Newsroom.
He said the proposed rule language shows a “lack of consensus” between the Department of Health and Human Services, the Attorney General’s Office and the Drug Enforcement Administration.
“DEA’s proposed rule includes several comments requesting additional evidence regarding concerns the agency has about the potential effects of cannabis, particularly with regard to its potential for abuse and potential harm,” Armentano said.
“HHS is addressing these issues, but the DEA is basically saying, ‘We want more information on that.'”
Kevin Sabat, president and CEO of Smart Approaches to Marijuana, an anti-marijuana legalization group, agreed that the DEA doesn’t seem to agree with HHS’ conclusion that there is a medical use.
The proposed rule “raises all of these issues regarding HHS’s determinations and essentially requests comment on all of these issues,” he said.
Administrative Law Hearings
Sabbat said his group also plans to petition the DEA for an administrative hearing, where an administrative law judge could rule that the proposal shouldn’t go through or that it should be revised to be stricter than the original proposal.
“First of all, I want to highlight the fact that this has not been approved or accepted for any medical use,” he said.
Tubert said the question of whether the drug has a recognized medical value won’t be a major factor in the administrative law hearing: Several medical groups and states that allow it for medical use have already acknowledged its medical value, he said.
Instead, he said the focus will shift to possible drug abuse.
“The key is to look at cannabis compared to other substances that may or may not currently be Schedule II or III and determine whether cannabis should be Schedule I when alcohol isn’t even on the schedule and ketamine is in Schedule III.”
As of June 6, approximately 12,000 people had commented on the proposal in the 18 days since it was announced.
Polls show that most Americans support liberalizing marijuana laws, but the Pew Research Center March Survey The survey found that 57% of U.S. adults support full legalization, while only 11% say it should be completely illegal. Public comments so far reflect a wide range of opinions on the issue.
“This rule is a terrible idea. It should stay in Schedule I,” one commenter wrote. “Marijuana is a gateway drug and ruins lives.”
“There are no side effects from using it,” wrote another commenter who supported “total” legalization of the substance. “It is not harmful. The only harm is what the government has done to me and to America. Shame on those who continue to oppose this. Shame on those who stand in the way of this change.”
Congressional action?
Blumenauer produced a memo last month on the “path forward” for the reforms as the rescheduling process progresses.
He listed four bills that Congress should consider this year.
One bill proposed by House Democrats would completely remove marijuana from the Controlled Substances Act and expunge past crimes.
The bipartisan bill would amend banking laws to make loans and other financial services more accessible to state-chartered businesses.
Another bill, co-sponsored by Rep. Brian Mast, R-Fla., would allow VA health care providers to discuss state-legal medical marijuana with veteran patients.
Blumenauer also co-wrote language in a spending bill that would prohibit the Justice Department from prosecuting marijuana operations that are legal under state or tribal law.
“All of these have overwhelming support, they’re important, they have the legislative tools and the advocates,” he said.
Still, there may be disagreement about what to pursue next.
In recent years, Democrats who support legalization have been divided over whether to prioritize banking reform or criminal justice reform.
Banking reform enjoys much greater bipartisan support, and advocates on all sides of the issue agree that it has the best chance of seeing action in Congress.
But some who support reforming banking laws in principle object to focusing on improving the business environment without first addressing the harms that Prohibition has inflicted on primarily non-white and disadvantaged communities.
As Recently 2021Senate Majority Leader Chuck Schumer said the banking reform bill was too narrow in scope, and Sen. Cory Booker, D-New Jersey, called the bill “common sense policy” but said he supported a more comprehensive approach.
“I’ve been circling around with Corey on that,” Blumenauer said, “and I support major reform more than anybody in Congress, and we’ve fought for racial justice and equality… but (racial justice and banking reform) are not mutually exclusive.”
During September, Booker agreed. He co-sponsored the banking reform bill after securing a promise from Mr. Schumer to bring to a vote another bill to help expunge criminal records, though neither bill has actually reached a floor vote.
In a statement after the administration announced the rescheduling, Booker applauded the move but called for further action from Congress.
This includes passing legislation he has proposed that would decriminalize the drug at the federal level, expunge the records of people convicted of federal marijuana crimes and direct federal funds to communities “most harmed by the failed War on Drugs.” summary From Booker’s office.
“We still have a long way to go,” Booker said in a statement about the sentencing changes. “Thousands of people remain in prisons across our nation for marijuana-related offenses and continue to suffer the devastating consequences of their criminal records.”
Blumenauer said Congress should act on proposals that have broad support from voters.
“This is not an easy issue to address and we need them to pick it up off the ground,” he said. “There is no other contentious issue with such bipartisan support waiting for action.”
