ALJ Hearing: December Cannabis Rescheduling Updates
On our latest Trade To Black podcast, our hosts Shadd Dales and Anthony Varrell break down the key takeaways from today’s ALJ hearing on the rescheduling of cannabis with GUAP. In a nutshell, there was a lack of groundbreaking developments. Still, it marks an essential step in the journey towards reform. Here’s what we know.
On December 2, 2024, the Drug Enforcement Administration (DEA) officially began its first hearing on the Biden administration’s proposal to move cannabis from Schedule I to Schedule III of the Controlled Substances Act. There are significant benefits to the industry in rescheduling the drug that transcend beyond legalization. Perhaps most notably, rescheduling cannabis would mean that cannabis retailers would no longer be subject to Schedule 280E, which would greatly increase profitability.
The December 2nd meeting was largely procedural, as was intended. It is setting the stage for more substantive hearings next year, focusing on the timelines and groundwork. Judge Mulrooney has been described as fair and efficient, and emphasized that this hearing will be about data-driven evidence rather than anecdotal claims. Of the hearing itself, Mulrooney said, it is “not a trial about whether marijuana is good or bad… My issues are much more narrow than that, it has to do with addiction potential and several other little pigeonholes.”
DEA clarified that this session focuses on legal and logistical issues—no witness testimony was taken. Still, it is already clear that addiction will be a recurring theme. Cannabis can create a dependency, but so can many other substances which aren’t classified as Schedule I drugs.
Trump’s appointment of the new head of the DEA, Sheriff Chad Chronister, could be a boon to the rescheduling efforts. Chad Chronister supported cannabis decriminalization in Hillsborough County, Florida. But that said, pro-cannabis rhetoric doesn’t always translate into actionable change.
Evidence submissions are due by January 3, 2025, so we will keep our finger on the pulse of the ALJ rescheduling hearings. In the meantime, we hope you’re looking forward to MJBizCon; we’ll be heading to Vegas to get the latest industry updates.
