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President Biden Announces Federal Government Will Reschedule Cannabis in ‘Monumental’ Announcement

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President Joe Biden announced that the U.S. Department of Justice will officially reschedule cannabis, moving it from Schedule I, reserved for dangerous drugs with no medical value, to Schedule III. The news follows the historic announcement on April 30, that the U.S. Drug Enforcement Administration (DEA), will move to reclassify cannabis under Schedule III, the Associated Press reported.

Biden, along with Vice President Kamala Harris, both recorded videos of the announcement and posted them on social media.

“This is monumental,” Biden said in a video that was posted on X. “Today my administration took a major step to reclassify marijuana from a Schedule I to a Schedule III drug. It’s an important move towards reversing longstanding inequities.”  

“Today’s announcement builds on the work we’ve already done to pardon a record number of federal offenses for simple possession of marijuana. And it adds to the action we’ve taken to lift barriers to housing, employment, small business loans, and so much more for tens of thousands of Americans.”

Biden continued, “No one should be in jail just for using or possessing marijuana.”

“Today’s announcement builds on the work we’ve already done to pardon a record number of federal offenses for simple possession of marijuana. I’m committed to writing those historic wrongs,” he said. “You have my word.

“Currently marijuana is classified on the same level as heroin and more dangerous than fentanyl,” Harris said in another video. “We are finally changing that. But I want to thank all of the advocates and everyone out there for helping to make this possible and we are on the road to getting it done.” 

“This recommendation validates the experiences of tens of millions of Americans, as well as tens of thousands of physicians, who have long recognized that cannabis possesses legitimate medical utility,” NORML Deputy Director Paul Armentano said. “But it still falls well short of the changes necessary to bring federal marijuana policy into the 21st century. Specifically, the proposed change fails to harmonize federal marijuana policy with the cannabis laws of most U.S. states, particularly the 24 states that have legalized its use and sale to adults.”

“Nevertheless, as a first step forward, this policy change dramatically shifts the political debate surrounding cannabis,” Armentano added. “Specifically, it delegitimizes many of the tropes historically exploited by opponents of marijuana policy reform. Claims that cannabis poses unique harms to health, or that it’s not useful for treating chronic pain and other ailments, have now been rejected by the very federal agencies that formerly perpetuated them. Going forward, these specious allegations should be absent from any serious conversations surrounding cannabis and how to best regulate its use.”

A 60-day comment period will soon begin to allow input on the pros and cons of Schedule III.

Questions and Shortcomings of Schedule III

Industry leaders pointed out that reclassifying cannabis under Schedule III won’t absolve the discord between federal law and dozens of medical adult-use cannabis laws at the state level. For some, the reclassification announcement leads to more questions.

“For me, it raises more questions than solving any problems that we have,” said Christopher Louie, Co-Founder & CEO of Made in Xiaolin, a legacy cannabis operator in Colorado and soo in New York. “What does this mean from here? Great, marijuana now has medical benefits in the eyes of the government. Does this mean that in order to obtain it you need a prescription and in order to distribute or manufacture it I would need a medical license? It seems this could help out pharmaceutical companies and big businesses affiliated in the medical field, but I’m not sure how this benefits companies like ours.”

Others commended the small step towards legalization that signals a shift in the way cannabis is viewed in the eyes of the federal government.

“We commend the POTUS’s efforts to reschedule cannabis to Schedule III. While the fight isn’t over to legalize cannabis nationally, this is a much-needed wind in our sails that we haven’t felt in over 50 years at the federal level,” said Vince Ning, co-founder and CEO of Nabis, a leading wholesale marketplace. “As far as public commentary goes, we will certainly be providing our thoughts on how to improve this change to push for the full legalization of this controlled substance, and how to provide safe access of quality tested cannabis products to the patients in need through existing regulatory frameworks that currently exist today.”

“President Biden characterized rescheduling as a means of reversing longstanding inequities,” said Brian Vicente, founder of Vicente LLP. “One dominating inequity cannabis businesses face is the inability to deduct regular business expenses, since they sell a Schedule 1 substance.  We work with hundreds of licensed cannabis businesses, and the ability to deduct ordinary operating costs under the Schedule 3 proposal would be a game-changer for them. This proposal will release cannabis businesses from the crippling tax burden they are currently shackled with and allow these businesses to grow and prosper.”

“On behalf of thousands of legal businesses operating across the country, we commend President Biden for taking this important first step toward a more rational marijuana policy. Now it’s time for Congress to enact legislation that would protect our industry, uphold public safety, and advance the will of the voters who overwhelmingly support making cannabis legal for adults,” said Aaron Smith, NCIA CEO & co-founder. “Rescheduling alone does not fix our nation’s state and federal cannabis policy conflict. Only Congress can enact the legislation needed to fully respect the states and advance the will of the vast majority of voters who support legal cannabis.”

There will then be a 60-day public comment period before the rule is potentially finalized.





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97% of public comments support cannabis rescheduling

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If the public comments are any indication, the Drug Enforcement Administration’s proposal to reschedule cannabis is well on its way to approval.

The government agency has only been accepting submissions for two weeks – with nearly seven weeks yet to go – but the agency has received more than 11,000 submissions so far. More than 7,000 comments were received in the first week.

How does it break down?

Recent analysis from cannabis data firm Headset found that 97% of the comments submitted through May 29 were in favor of the proposed regulation. The peak of support occurred on May 23, with 2,657 comments expressing approval, while opposition remained minimal throughout the period.

Review of the comments after the period analyzed by Headset showed that the overwhelming support continues.

The DEA’s notice of proposed rulemaking cites the Department of Health and Human Services’ recommendation, stating that cannabis has a lower potential for abuse compared to Schedule I and II substances, accepted medical use, and limited physical or psychological dependence. The notice also acknowledges a 2023 HHS recommendation recognizing the accepted medical use of cannabis for treating conditions such as anorexia, nausea, vomiting, and pain.

What they’re saying

The comments submitted to the Federal Register reflect a wide range of perspectives on the rescheduling proposal. The first official comment posted was from a USMC veteran with post-traumatic stress disorder and chronic pain. He wrote of gratitude for the “leadership” of government officials, saying, “This first step of rescheduling cannabis is going to (benefit) the lives millions of people in the US.”

“The cannabis plant saved my life,” the commenter, who submitted anonymously, wrote. “I am now pain free, full mobility and in a strong positive mental state, since being in Nevada State Medical Program since 2017. With Blessing of Love and Respect to all those serving the USA. God Bless America.”

Another comment pointed to the potential benefits for individuals with disabilities, such as autism: “Current regulations before this have hindered access to potentially beneficial treatments.” The commenter, who identified as an autistic adult, shared their personal experience using CBD oil to manage symptoms like anxiety, behavioral issues, and sleep problems.

For those who oppose the change, commenters cited concerns about public health harms, the lack of research supporting the use of high-THC products for medical purposes, and the potential risks to young people. One comment also questioned whether botanical cannabis would meet the criteria for currently accepted medical use and raised concerns about safety, citing associations with psychosis and other mental health issues.

Commenters who believe rescheduling does not go far enough also had a strong presence among the submissions. “Rescheduling cannabis is a step in the right direction, but frankly it should be descheduled entirely,” wrote one individual. That sentiment was echoed throughout the comments.

“Do my thoughts change anything? Nope,” they wrote. “Will anyone care I shared this opinion? Probably not, but deschedule and legalize the damn plant.”

The overwhelming public support for rescheduling cannabis is also reflected in other arenas. For example, a January 2024 Pew Research study found that 88% of U.S. adults support the legalization of marijuana for either medical or recreational use.

The public comment period will remain open until July 22, after which the DEA will review all information that was provided on the record. In addition, the agency may grant an administrative hearing to hear more evidence about the proposal.



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New report makes recommendations to the DEA on religious exemptions for psychedelics

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The U.S. Government Accountability Office (GAO) told the Drug Enforcement Administration (DEA) that it needs to do a better job with religious exemption requests it gets for controlled substances like psychedelics. The 70-page report was published last week and made four recommendations to the DEA – mostly revolving around timelines for the requests. However, the report was also notable for all the data it provided about the DEA and these requests.

Psilocybin

The report focused on psilocybin, which is the most requested drug to be used as a sacrament for some religions. The GAO reviewed enforcement data from the DEA during fiscal years 2018 through 2023. The report pointed out that psilocybin cases represented the smallest amount of attention from the DEA with regard to investigations and seizures during this period and these cases were only 1% of all the DEA cases investigated and closed.

During this six-year study time frame, U.S. Customs and Border Protection (CBP) reported the seizure of 49 different drug types—representing a total of 371,088 drug seizures. Psilocybin accounted for 8,349 drug seizures—representing about 2% of the total seizures reported by CBP.  LSD accounted for 13,489 drug seizures—representing 4% of the total seizures reported by CBP during the same period. Most of the drug seizures during this study period by the CPB were for cannabis.

During fiscal years 2018 through September 18, 2023, CBP’s seizure data show that the number and weight of its drug seizures involving psilocybin generally increased—accounting for about a 400% increase in the number of psilocybin seizures and over a 1,000% increase in the weight (in pounds) of the seizures. Over these six years, CBP’s Chicago Field Office location accounted for about 37% (3,081), which is the CBP field office with the largest number of seizures related to psilocybin.

Long Timeline

The report stated, “Over an 8-year period—from fiscal year 2016 through January 2024—DEA reported that 24 petitioners requested a religious exemption for various controlled substances. As of January 2024, DEA reported that none of these petitions had been granted an exemption and of the 6 for psilocybin, three were withdrawn and three were pending a DEA determination. The three pending religious exemption petitions related to psilocybin ranged from about 8 months to over 3 years from the date of receipt. DEA’s information also showed instances where finalized actions regarding exemption petitions related to other controlled substances have been pending a determination for an extensive period—one almost 5 years and one almost 8 years.”

The report identified the state and local initiatives to decriminalize and deprioritize the adult use of psilocybin. The GOA also reviewed various studies underway for using psilocybin as a treatment for mental illness.

The report pointed out the conflict between the Controlled Substances Act and the Religious Freedom Restoration Act causing the DEA  to create a guidance document in 2009 that would establish a procedure for seeking religious exemptions from the Controlled Substances Act from DEA. The document was updated in 2020. The DEA approaches each religious exemption request with a case-by-case analysis that includes interviews and on-site visits.

The DEA said that the processing time varies by case for a variety of reasons. This can be insufficient information to determine whether the religious beliefs are sincerely held, unsafe practices, previous criminal convictions, and the ability to control the diversion of the drug.

Stakeholders

The GOA report said that the stakeholders it interviewed found the process to be difficult to navigate and guidance wasn’t clear. They also complained about the DEA’s communication. One of the petitioners mentioned in the GOA report was the Soul Quest Church, which Green Market Report recently wrote that a member died during a psychedelic retreat. In that situation, the courts found the church and its founder liable for the death of a young man for not providing medical care and for administering the drugs in an unsafe manner.

The stakeholders also told the GOA that it believed the DEA had no interest in granting any waivers.

Conclusions

The report made four recommendations to the DEA as follows:

  1. The DEA Administrator should more clearly communicate the types of information that the Religious Freedom Restoration Act petitioners should provide to allow the DEA to evaluate petitions for religious sincerity.
  2. The DEA Administrator should more clearly communicate the standards and relevant factors to the Religious Freedom Restoration Act petitioners in deciding religious sincerity.
  3. The DEA Administrator should establish timeframes for the DEA to make determinations on completed religious exemption petitions to provide the Religious Freedom Restoration Act petitioners with the DEA’s final determinations.
  4. The DEA Administrator should provide the Religious Freedom Restoration Act petitioners with information for petitioners to be able to receive updates on the agency’s progress related to exemption reviews.

1843000-1843205-gao-24-106630



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DEA Report Reflects Average Potency of THC in Illegal Cannabis at 16%

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The Drug Enforcement Administration (DEA) recently released a report on May 9 with details about its 2024 National Drug Threat Assessment (NDTA), which is dedicated to compiling data in relation to illegal drugs and trafficking trends within the U.S.

DEA Administrator Anne Milgram introduced the report to warn of the many threats to public safety as well as national security. “The shift from plant-based drugs, like heroin and cocaine, to synthetic, chemical-based drugs, like fentanyl and methamphetamine, has resulted in the most dangerous and deadly drug crisis the United States has ever faced,” Milgram said. “At the heart of the synthetic drug crisis are the Sinaloa and Jalisco cartels and their associates, who DEA is tracking world-wide. The suppliers, manufacturers, distributors, and money launderers all play a role in the web of deliberate and calculated treachery orchestrated by these cartels. DEA will continue to use all available resources to target these networks and save American lives.”

Individual chapters include the Sinaloa and Jalisco Cartels and their reach within the U.S., and individual substances such as fentanyl, nitazenes, heroin, methamphetamine, cocaine, “marijuana,” controlled prescription drugs, new psychoactive substances, illicit finance, and DEA response.

The chapter on cannabis explained that legalization on a state level illegal cannabis continues to thrive. “Despite these measures, the black market for marijuana continues, with substantial trafficking by Mexican cartels, and Chinese and other Asian organized crime groups profiting from illegal cultivation and sales, as well as exploitation of the ‘legal’ market,” the DEA wrote. “The price of marijuana in illegal U.S. markets has remained largely stable for years, even as the potency of marijuana has increased exponentially.”

The administration noted the increase in “average Delta-9 THC Potency in Marijuana” between 1977-2022, as according to information provided by the University of Mississippi Marijuana Potency Monitoring Program. In 1977, the percentage of potency was recorded at approximately 1%, followed by approximately 3% in 1982, 1987, and 1992. This rose to 4% in 1997, 6% in 2002, 8% in 2007, 12% in 2012, 15% in 2017, and finally 16% in 2022. “The potency of THC in leafy marijuana is at an all-time high, increasing the potential risk of negative effects on users of any form of the drug, and on children who may consume edibles made with these substances,” the DEA stated.

The rest of the DEA report focuses on Asian organized crime and illegal cultivation. “Many of these home-grows pretend to operate under business registrations granted by state licensing authorities in jurisdictions where marijuana cultivation and sales are ‘legal’ at the state level but, absent overt evidence such as the trafficking of marijuana across state lines or the commission of non-drug crimes such as money laundering and human trafficking, it can be difficult for law enforcement to immediately identify violations or discover an illegal grow,” the DEA explained. The administration’s Dallas Division seized $2.8 million in cannabis linked to four Chinese nationals growing illegally in Oklahoma. Two of those nationals were convicted of drug trafficking in January 2024.

The report also described the rise in emergency room visits by children, as well as the environmental damage caused by illegal cultivation.

The University of Mississippi’s potency percentages pale in comparison to the potency percentages of current cannabis strains. In March, a study analyzed Colorado cannabis samples to determine if the THC percentages were accurate, and found that more than 70% of products were at least 15% higher than reported. Many THC potency reports showed a range between 12.8%-19.3%, as well as a higher range of 28.07%-31.28%. “THC levels averaged 9.75% back in 2009, based on testing of DEA-seized cannabis flower,” wrote report author Anna Schwabe, a professor at University of Colorado, Boulder. “Today, levels reportedly surpass 35%, though they’re not as common as consumers have been led to believe. DEA-seized cannabis flower averaged 13.88% in 2019, which is closer to my observed mean of 14.98% than the reported mean of my samples, which was 20.27%-24.10%.”

According to Headset data obtained by SFGATE, the median THC potency for cannabis has decreased over the past six months in California, with a 7% decrease in the past three months. In December, the average potency levels were recorded at 30.7%, but dropped to 28.5% in March. The potency shifted due to new regulations on cannabinoid testing, which went into effect on Jan. 1, 2024. According to Zach Eisenberg, Anresco Laboratories vice president, the potency decrease was an expected result. “We certainly heard from customers and potential customers that they’re seeing potency values dropping at other laboratories,” Eisenberg said to SFGATE. “Some labs were even proactively saying, ‘Be prepared for our results to be lower after this change.’”

In reality, the more recent reports are just reflecting current potency percentages. “I highly doubt anything has changed in terms of the actual composition of the cannabis products,” Eisenberg told SFGATE. High Times received a statement from Vicente LLP attorney Andrea Golan, based in Los Angeles, about the recent change. “For years, the efficacy of cannabis lab test results has been widely discussed across the California cannabis industry due to inflated potency test results and inconsistencies in results due to labs using different methodologies for testing cannabis,” Golan said. “The change in law ends the practice of shopping for labs with less strict testing methods in order to inflate THC content. Therefore, rather than cannabis getting weaker, recent changes may now provide a more accurate reflection of true potency.”



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