Why in News? The US Drug Enforcement Administration (DEA) has proposed to reclassify marijuana as a less dangerous drug by moving it from “Schedule-I” to less tightly regulated “Schedule-III” group.
What has Changed and Why? Technically, nothing yet as the proposal is to be scrutinized by White House Officials, undergo public-comment period and review by administrative judge. It was reclassified on the suggestion of President Biden because Schedule-I put marijuana on par with heroin, LSD etc. and the President supports legalizing marijuana for medical use based on medical and scientific evidence.
Effects of Reclassification-
- Legal Status- It won't change much as Schedule-III drugs including ketamine and anabolic steroids are still controlled substances, subject to various rules that allow for some medical uses, and for federal criminal prosecution of anyone trafficking the drug. Also, there haven’t been many federal prosecutions for possessing marijuana in recent years, even under Schedule-I status.
- Research- Until now ,it was very difficult to conduct authorized clinical studies of marijuana that involved its administration. As Schedule-III drugs are easier to study, reclassification will surely allow research on human subjects with cannabis.
- Taxes-Under the federal tax code, businesses involved in “marijuana trafficking” or any other Schedule-I or II drug can’t deduct rent, payroll or various other expenses that other businesses can write-off. Schedule-III drugs are exempted from this rule, so the proposed change would cut cannabis companies’ taxes substantially.
- Business Problems- Reclassification won't provide much relief as marijuana businesses deal with problems related to difficulty accessing banks, particularly for loans, because federally regulated institutions are wary of marijuana’s legal status. Instead, the industry is looking forward to SAFE Banking Act which has repeatedly passed the House but stalled in the Senate.
