News

Colorado Leads Submits Public Comment in Support of Federal Rescheduling

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Colorado Leads submitted a public comment in support of the Department of Justice’s proposed rule to transfer marijuana from schedule I to schedule III of the Controlled Substances Act.

As the leading marijuana business association in the nation’s longest- running state-regulated marijuana market, we are uniquely positioned to help inform DOJ’s analysis. We also felt it was imperative that we participate in the rescheduling process since it will directly and substantially impact our businesses, our industry as a whole, and our state and local communities.

Our comment begins by explaining how Colorado’s experience and public policies support HHS’s conclusions that:

  • marijuana has a currently accepted medical use in treatment; and
  • marijuana has less potential for abuse than substances in schedules I and II, as well as alcohol, which is an unscheduled substance.

DOJ specifically solicited comments on the economic impact of the proposed rule, recognizing it may significantly affect a substantial number of small entities, including state-regulated marijuana businesses that would no longer be subject to section 280E of the Internal Revenue Code. It could also impact entities that engage in marijuana research, which may be subject to different protocols set by the DEA.

Colorado Leads surveyed its membership regarding the impact they expect it could have on their businesses, and we offered some of the insights that were shared, along with our analysis of the impact rescheduling could have on our industry, state, and local communities. We also reached out to leaders of Colorado’s marijuana research community to get their thoughts.

Read Colorado Leads’ full public comment.

In Historic Move, DEA Will Reclassify Marijuana From Schedule I to Schedule III

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News broke today that the DEA will move to reclassify marijuana from Schedule I to Schedule III. Colorado Leads has already responded to several media inquiries, and you can hear a representative of the organization discuss the news live on the state’s leading talk radio station, KOA 850 AM, tomorrow (May 1) at 6:49 a.m. MT.

Leads also released the following statement:

“This is a truly historic development in federal cannabis policy that will have significant impacts on the legal marijuana industry in Colorado and throughout the nation. This is by no means the end of the line for federal reform, and we will continue to support efforts to treat cannabis more like alcohol, which is in line with the views of most Colorado voters.

“Rescheduling is a major step in the right direction, and its significance cannot be overstated. Perhaps most notably, reclassification under Schedule III will address the 280E tax issue that has unfairly forced state-legal cannabis businesses to pay a far higher effective tax rate than other legal businesses. Allowing marijuana businesses to start deducting ordinary business expenses will allow Colorado companies to retain more revenue, employ more workers, and further invest in their surrounding communities.”

The DEA’s proposal must be reviewed by the White House Office of Management and Budget, and it will then undergo a public comment period prior to final implementation. The experts tell us these periods are typically 30-60 days, but can be 90 days if DEA determines more time is needed.