Will rescheduling marijuana benefit Coloradans?
DENVER (KDVR) — The Federal Drug Enforcement Administration is reportedly moving to reschedule marijuana as a Schedule III substance, classifying it as a less harmful drug.
With Colorado being a longtime leader in legalization, what does this mean for the drug at home and nationally?
It’s something lawmakers and business leaders alike have wanted to happen for decades,
but experts said it is more of a win for the industry in Colorado rather than consumers — for now.
“This insane placement of cannabis next to heroin on Schedule I at the federal level has been in effect since 1971. So, it’s really been a long time in the works. It’s a historic day,” said Brian Vicente, founding partner of Vicente LLP, a law firm focused on cannabis policy.
US drug control agency will move to reclassify marijuana: AP sources
Vicente said news of marijuana rescheduling is a victory that could have ripple effects.
“There’s a big symbolic win,” Vicente said. “The federal government for the first time in 50 years is acknowledging that marijuana is medicine. And I think that is gonna send a message nationwide to legislators that may be on the fence about this, to voters who may be on the fence about it, about what to do with cannabis. I think it is going to propel the cannabis legalization and medical marijuana movement forward.”
While 24 states in the U.S. have approved the usage of recreational marijuana, this move does not mean the plant will be legalized nationwide. The announcement of the DEA’s intent to reschedule weed from a Schedule I drug to a Schedule III drug would still come with consequences if it’s found in areas that haven’t legalized it.
“Schedule III drugs, they still are [generally] required to have a prescription. So, if someone accesses cannabis in a state that doesn’t quite allow medical use or allow adult use, they could still be looking at criminal justice implications. I think overall, this is going to start the turn of some of our states that have not been as progressive with marijuana laws,” Shannon Donnelly, professor of marijuana in the School of Hospitality at MSU Denver.
While this may not change things for interstate commerce and criminal justice, in Colorado, folks like the governor are hailing this as a big win for marijuana businesses.
“In Colorado, we’ve had a thousand cannabis businesses and many of them pay an absurdly high tax rate. Because of this proposed change, if it goes into effect, they will no longer be subject to 70-80% effective tax rates. In fact, they’ll just be paying the same tax rate as the typical business that sells anything. So, that’s an enormous change and will have a real effect here in Colorado,” Vicente said.
Is it legal to consume recreational marijuana in public in Colorado?
“280e, the tax code that requires that businesses cannot write off most traditional tax areas in their business is now going away. So, these businesses will be able to be more flush with cash and also, they’ll be able to operate in a different kind of area. They’ll also be able to do research in Colorado,” Donnelly said.
It’s important to note this will be a process that will take a while to play out. Public comments will be heard over the coming months until the rulemaking is complete. Experts project the process won’t be done until later this year, around late summer or early fall.
“The comment public comment period could be 30-90 days. I think it will likely be somewhere around 60 days. So, assuming a hearing, it may go through an OMB review before we get through that comment period. If everything goes smoothly, we could be done somewhere around August, but it may take longer. We could be more like October, so kind of right in time for the election,” said Shawn Hauser, a partner at Vicente LLP.
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