Earlier this week, the Drug Enforcement Administration (DEA) held a preliminary hearing as part of the ongoing process to determine whether cannabis should be reclassified from Schedule I to Schedule III of the Controlled Substances Act. This review follows an initial notice of proposed rulemaking issued by the US Attorney General on May 21, 2024. Since the time of that announcement, almost 43,000 comments have been submitted for DEA’s consideration during the 60-day public comment period.
While the hearings are still in their early stages, Judge John J. Mulrooney, the DEA’s Chief Administrative Law Judge, set the tone for the proceedings during Monday’s two- hour hearing. Additional appearances, scheduled to begin in mid-January, will consider witness testimony and written submissions from interested parties. No ruling on rescheduling is expected before February 2025.
Key Takeaways
- Testimony & Evidence: Participants will be allowed 90 minutes of testimony, with 20-minute cross-examinations. The proceedings will be focused and streamlined, with Mulrooney emphasizing the need for concise, relevant evidence.
- Narrow Focus: Mulrooney made clear that the hearings will not debate the generalized benefits or risks of cannabis, but must focus on relevant factors for reclassification like addiction potential. Mulrooney is aware of the limited legal issue before him and made clear to the parties that he will not permit the hearings to evolve into a large-scale debate over the substance itself.
- Rescheduling Timeline: There is no exact date for a ruling, but Mulrooney has indicated the decision could come as early as February 2025, depending on the volume of testimony and evidence presented at the hearings.
All of this precedes an incoming Trump Administration that has previously weighed in favorably on cannabis rescheduling and the Safe Banking Act. As the rescheduling process unfolds, cannabis businesses should closely monitor developments, as rescheduling could significantly impact the $32 billion industry that is currently at odds with federal law and is exclusively regulated by the states.
For more insight into how cannabis rescheduling might impact existing state markets, please refer to our prior client alert, DEA’s Plan to Reschedule Cannabis: Implications and Insights.
McCarter & English’s Cannabis and Government Affairs Practices are well positioned to navigate this critical juncture, possessing a deep understanding of emerging cannabis issues and valuable connections with industry leaders. Please contact the authors of this alert or any member of McCarter’s Cannabis or Government Affairs teams with questions or to learn more about the potential impact of reclassification.