Opponents of Marijuana Rescheduling Request Further Testimony and Briefings in DEA Hearing

Opponents of federal plans to reclassify marijuana from Schedule I to Schedule III have filed a motion asking a Drug Enforcement Administration administrative law judge for additional testimony, discovery, and written briefings. The group Smart Approaches to Marijuana, joined by the states of Idaho, Indiana, and Nebraska, submitted the motion following a Government Accountability Office report examining agency scheduling practices. The opposition argues that internal policies at the Department of Health and Human Services should be scrutinized to determine if proper procedures were followed.

The regulatory process directly affects major cannabis operators, including Curaleaf Holdings, Inc. (OTC:CURLF), Trulieve Cannabis Corp. (NYSE:TRLV), Green Thumb Industries Inc. (OTC:GTBIF), TerrAscend Corp. (OTC:TSNDF), Cresco Labs, Inc. (OTC:CRLBF), and Ayr Wellness, Inc. (OTC:AYRWF). Reclassification to Schedule III would significantly ease tax and operational burdens across the industry. However, legal challenges and procedural requests to expand the hearing scope could prolong the administrative review, adding regulatory uncertainty for multi-state cannabis businesses.

Drug Enforcement Administration Chief Administrative Law Judge Derek Julius previously suspended proceedings temporarily to assess whether to incorporate the accountability office report into the record. The agency stated it will leave the decision on including the report to the judge, but opposes additional written briefings on the matter. The judge has ordered federal officials to respond to the opposition motion by October 21.