https://www.northbaybusinessjournal.com/article/industrynews/federal-health-officials-pushing-to-categorize-cannabis-as-not-a-top-danger/
U.S. health officials have moved the cannabis industry a nudge toward federal legitimacy by recommending its removal from of the most dangerous drug category.
The Department of Health and Human Services had suggested Aug. 30 that cannabis be moved from a Schedule I to a Schedule III classification. The former places it in the same category as heroin, mescaline, LSD (acid) and meth. The latter makes it an equal substance with steroids, testosterone and Tylenol with at least 90 milligrams of codeine.
“This is unquestionably a historic moment in the decadeslong fight to end marijuana prohibition. It’s never made sense for cannabis to be listed as a Schedule I substance,” said National Cannabis Industry Association CEO Aaron Smith, who once hailed from Sonoma County.
Awaiting a Response
From across the nation to businesses in the North Bay, cannabis business operators await a response from the U.S. Drug Enforcement Agency with guarded optimism. The DEA has spent generations cracking down on the substance known for its participation in the counterculture over a half century ago. And now, it’s being touted for treating aches and pains, along with helping with sleep deprivation.
“It’s like an early Hanukkah and Christmas all wrapped up into one,” said Sam Rodriguez, policy director for Good Farmers, Great Neighbors trade organization. “We’re very close (to reclassification).”
Rodriguez anticipates the feds would finalize the maneuver by the end of this year.
“We’re delighted to see federal movement on cannabis policy. But a decade into this roller coaster, it’s hard not to be a little wary,” said Tiffany Devitt, who oversees government affairs at CannaCraft, a producer in Santa Rosa.
With Devitt labeling it “untenable,” one of the biggest burdens of Schedule I falls under IRS Rule 280e, which prohibits cannabis operations from writing off business expenses. As defined by the federal Controlled Substances Act, the drug changing hands is considered “trafficking” — despite it being legal in California. Cannabis for medical use with a medical recommendation is legal in more than half of the U.S. states.
The IRS rule represents money left on the table.
“If that went away, it would be a huge benefit,” Solful owner Eli Melrod said.
Still, he remained cautious about the federal government requiring extra steps to achieve the means to the end.
“It’s hard to know (what will happen.) I try not to predict the future,” the Sonoma County dispensary operator said.
Placing cannabis in the Schedule III category also mandates the substance sell under a prescription through a pharmacy. The hope is that rule won’t disrupt the state cannabis markets now legal.
“(The feds’) recommendation follows the science and comes to the same conclusion California reached decades ago — cannabis has medical value,” California Department of Cannabis Control Director Nicole Elliott said.
The state cannabis regulatory chief sees the gesture as “the most progress made to date in modernizing federal laws.” The state pledged to continue its work to build a legal market that “best serves California,” Elliott added.
Nonetheless, some industry advocates were less satisfied, insisting it’s a half step in the right direction.
“It’s inadequate to get where we need to go. Descheduling is the answer,” said Joe Rogoway, a Sonoma County lawyer representing cannabis clients. “Schedule III means it’s still a controlled substance.”
Pushing to Categorize Cannabis
