President Trump moves to reclassify state-licensed medical marijuana
Lynette Niebla
(KYMA) – On April 23, the Department of Justice announced it was easing the restriction on state-licensed medical marijuana, reclassifying the substance from a Schedule I drug, the highest level of regulation, to a Schedule III.
This effort moves medical marijuana away from the same classification as heroin and into a new category that acknowledges the drug as one for medical use and a low potential for abuse.
Begun under President Joe Biden, and following President Donald Trump’s Dec. 18 executive action, the reclassification creates many benefits for California and Arizona.
This is a major step forward towards legitimizing the industry, especially in California, the nations largest legal cannabis market.
The reclassification is also a huge relief for businesses of California and Arizona. Before, medical marijuana operators and dispensaries were subject to IRS tax law 280E, prohibiting them from deducting normal business expenses in their taxes.
No longer bound by this law, businesses will now save millions in federal taxes and product prices for consumers can potentially drop.
Nationwide, this action opens the door for medical marijuana and CBD research, an action previously taking scientists years to authorize and complete.
Prior to reclassification, researches faced numerous hurdles in the filed, needing approval from several agencies, rigorous security requirements and funding limitations.
Now, this reclassification simplifies the process for researchers and allows for validated scientific data on the drug.
To learn more about this, read the press release below.