NCIA Only Pro-Cannabis Organization Granted Standing in DEA Rescheduling Proceedings

On November 19, the DEA’s Chief Administrative Law Judge John Mulrooney issued a ruling granting the National Cannabis Industry Association (NCIA) full standing to participate in the upcoming hearings on the agency’s proposed rule to reclassify marijuana from Schedule I to III in the federal Controlled Substances Act.

NCIA was the only party granted standing that supports rescheduling, while all 12 parties in opposition to the proposed change were given the nod to move forward. We are proud to be able to represent the cannabis industry in these important proceedings, which could yield a groundbreaking outcome for the legal cannabis industry should our efforts prove successful.

The first in a set of historic DEA hearings to consider a proposed reclassification of cannabis will take place at Monday, December 2. At that time, Judge Mulrooney is expected to set the dates for future hearings to hear the testimony of NCIA and other parties on this important issue.

These hearings are the final phase of a process to review and reclassify cannabis that was set in motion by President Biden in October 2022. NCIA has advocated for the legal cannabis industry throughout this process, strongly supporting the move to Schedule III as a critical first step toward ultimately making cannabis legal at the federal level.

Moving cannabis to Schedule III would not only be the first federal acknowledgment of the medicinal value of cannabis, it would eliminate the unjust burden of Tax Code Section 280E on the cannabis industry, allowing all businesses in the sector to take the ordinary business deductions afforded to other industries.

Currently, plant-touching cannabis businesses are collectively overpaying the IRS more than $2 billion annually in excess taxes. This stifles profitability and drives up costs across the entire industry—for licensees and ancillary businesses alike. So there is a lot at stake in the upcoming hearings and NCIA is up to the task of representing the industry and bringing home a big win for regulated cannabis.

I invite anyone interested in a favorable outcome to join our efforts by becoming a member of NCIA now so that we have the resources we need to make the best possible case for the cannabis industry in these proceedings. There are also opportunities for business leaders to pull up a seat at the table and provide input to NCIA during this important process, set up a call with someone on our team to learn more.