{"id":33714,"date":"2024-03-06T08:00:44","date_gmt":"2024-03-06T13:00:44","guid":{"rendered":"https:\/\/www.veriheal.com\/blog\/?p=33714"},"modified":"2024-03-01T16:00:37","modified_gmt":"2024-03-01T21:00:37","slug":"hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets","status":"publish","type":"post","link":"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/","title":{"rendered":"HSS Releases Full Recommendation Report for Rescheduling Cannabis: What Will This Mean for Med &#038; Rec Markets?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The U.S. Department of Health and Human Services (HHS) recommended that the Drug Enforcement Agency (DEA) reshedule cannabis as a Schedule III substance in <\/span><a href=\"https:\/\/thehill.com\/policy\/healthcare\/4179304-hhs-sends-recommendation-to-dea-on-rescheduling-marijuana\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">August of 2023<\/span><\/a><span style=\"font-weight: 400;\">. The recommendation for rescheduling cannabis marked the first time a government agency officially recognized cannabis\u2019 medical benefits. Though the recommendation was announced over 6 months ago \u2014 the HSS\u2019 report outlining their reasoning for the recommendation <\/span><a href=\"https:\/\/www.nytimes.com\/2024\/01\/12\/health\/marijuana-fda-dea.html\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">only recently became publicly available<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Here\u2019s a summary of the HSS\u2019 arguments for rescheduling cannabis:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Although there are high levels of cannabis abuse, abuse of the substance has far less harmful consequences than the abuse of Schedule II and I substances like cocaine, heroin, and OxyContin.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0The HSS found strong scientific support regarding cannabis\u2019 medically beneficial effects for conditions like <\/span><a href=\"https:\/\/www.veriheal.com\/conditions\/anorexia\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">anorexia<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.veriheal.com\/conditions\/nausea\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">nausea,<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.veriheal.com\/conditions\/chronic-pain\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">chronic pain<\/span><\/a><span style=\"font-weight: 400;\">. The HSS also pointed out studies with weaker evidence suggesting cannabis can potentially help with conditions like <\/span><a href=\"https:\/\/www.veriheal.com\/conditions\/ptsd\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">PTSD<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><a href=\"https:\/\/www.veriheal.com\/conditions\/epilepsy\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">epilepsy<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><span style=\"font-weight: 400;\">and <\/span><a href=\"https:\/\/www.veriheal.com\/conditions\/anxiety\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">anxiety<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">\u00a0Cannabis use has a low potential to cause physical or psychological dependence.\u00a0<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">The ball is now in the DEA\u2019s court regarding <\/span><b><i>when<\/i><\/b><span style=\"font-weight: 400;\"> rescheduling will actually happen. Unfortunately, there is no indication that this change will materialize anytime soon.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, while we wait for the snail-paced wheels of the federal government to churn out this long-awaited change, let\u2019s take a look at the possible impact that rescheduling could have on the cannabis industry when this decision finally comes to fruition.<\/span><\/p>\n<h2><b>From One to Three: What Does This Change Actually Mean?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Let\u2019s make one thing clear, rescheduling cannabis does not mean that it is suddenly federally legal. That means that the cannabis industry\u2019s built-in conflict between federal and state-level regulations is likely to continue. That said, rescheduling will definitely remedy one major headache for cannabis business owners \u2014 taxes!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Going from selling and manufacturing a Schedule I substance to a Schedule III substance means that cannabis businesses no longer have to contend with <\/span><a href=\"https:\/\/www.law.cornell.edu\/uscode\/text\/26\/280E\"><span style=\"font-weight: 400;\">Internal Revenue Code 280E<\/span><\/a><span style=\"font-weight: 400;\">. The code essentially blocks businesses selling or trading schedule I or II substances from claiming deductions or credits. This means massive tax savings for cannabis businesses!<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The other big change that comes with rescheduling is an increase in cannabis research opportunities. As it currently stands, the <\/span><a href=\"https:\/\/www.dea.gov\/drug-information\/csa\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Controlled Substance Act<\/span><\/a><span style=\"font-weight: 400;\"> makes it incredibly difficult for the DEA and outside research groups to grow cannabis products for the purpose of research. A schedule III classification means scientists will have an easier time sourcing the plant \u2014 though cannabis growing for research purposes will still be subject to significant regulation.<\/span><\/p>\n<h2><b>The Longterm Implications of Rescheduling Cannabis<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Though the improvements facilitated by cannabis\u2019 forthcoming rescheduling may seem small \u2014 in the long run \u2014 they have the potential to bring the budding industry into a new era.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Clearing the monetary burden caused by Code 280E will free cannabis businesses to thrive, not just survive. As Oregon-based research firm Whitney Economics highlighted, in 2022 state-legal cannabis businesses paid more than <\/span><a href=\"https:\/\/mjbizdaily.com\/what-the-end-of-280e-might-mean-for-cannabis-business-taxes\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">$1.8 billion in excess taxes<\/span><\/a><span style=\"font-weight: 400;\"> when compared to non-cannabis businesses. With these tax savings in hand, cannabis businesses can increase research and development spending, improving product quality in the process. Improved product offerings will give the cannabis industry another advantage in it\u2019s fight against the <\/span><a href=\"https:\/\/www.veriheal.com\/blog\/cannabis-research-explores-whats-better-the-illicit-market-or-legal-market\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">ever-lurking illicit market<\/span><\/a><span style=\"font-weight: 400;\"> \u2014 hopefully \u2014 leading to industry growth.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Speaking about research and development, think about all the new cannabis studies that can happen when you allow researchers to more easily access the plant. Despite all the <\/span><a href=\"https:\/\/www.veriheal.com\/blog\/research\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">new cannabis research<\/span><\/a><span style=\"font-weight: 400;\"> we cover right here at Veriheal, much of it is held back from reaching real conclusions because of cannabis\u2019 current scheduling status. Increasing researcher access to cannabis increases the potential to not only learn more about the plant\u2019s medical properties but to turn those findings into science-backed recommendations and medicine.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cannabis research goes beyond expanding medical options available to humans; it also allows us to take better care of our furry friends. Dr. Joseph Wakshlag from Cornell University\u2019s College of Veterinary Medicine <\/span><a href=\"https:\/\/www.avma.org\/news\/hhs-senators-request-dea-reschedule-marijuana#:~:text=The%20Department%20of%20Health%20and,of%20the%20Controlled%20Substances%20Act.\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">says<\/span><\/a><span style=\"font-weight: 400;\"> rescheduling cannabis will \u201copen the door\u201d to veterinary cannabis research. This opens a new world of opportunities for a cannabis industry <\/span><a href=\"https:\/\/www.veriheal.com\/blog\/cannabis-trend-watch-trends-to-watch-this-year\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">eager to diversify<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Though it may not be full-on legalization, it is clear that the start of the cannabis industry\u2019s next era starts with rescheduling cannabis.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. Department of Health and Human Services (HHS) recommended that the Drug Enforcement Agency (DEA) reshedule cannabis as a Schedule III substance in August of 2023. The recommendation for rescheduling cannabis marked the first time a government agency officially recognized cannabis\u2019 medical benefits. Though the recommendation was announced over 6 months ago \u2014 the&#8230;<\/p>\n","protected":false},"author":66,"featured_media":33737,"parent":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5339,255],"tags":[15916,15919,136,15918,3746,15917],"class_list":["post-33714","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-news","tag-cannabis-reschedule","tag-hss-recommendation-report","tag-medical-cannabis","tag-predictions","tag-recreational-cannabis","tag-rescheduling-cannabis"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.1 (Yoast SEO v26.1.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>HHS Suggests Rescheduling Cannabis: What It Means<\/title>\n<meta name=\"description\" content=\"The U.S. Health Department recommended rescheduling cannabis to Schedule III. 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Explore the potential impact on taxes, research, and industry.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/\" \/>\n<meta property=\"og:site_name\" content=\"Cannabis Central\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/veriheal\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-06T13:00:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.veriheal.com\/blog\/wp-content\/uploads\/2024\/03\/Cannabis-Rescheduled.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1080\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cesar Gallegos\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@veriheal\" \/>\n<meta name=\"twitter:site\" content=\"@veriheal\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cesar Gallegos\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/\"},\"author\":{\"name\":\"Cesar Gallegos\",\"@id\":\"https:\/\/www.veriheal.com\/blog\/#\/schema\/person\/7deec11fd09702196a6daed13449e5e5\"},\"headline\":\"HSS Releases Full Recommendation Report for Rescheduling Cannabis: What Will This Mean for Med &#038; Rec Markets?\",\"datePublished\":\"2024-03-06T13:00:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/\"},\"wordCount\":710,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.veriheal.com\/blog\/wp-content\/uploads\/2024\/03\/Cannabis-Rescheduled.jpg\",\"keywords\":[\"cannabis reschedule\",\"HSS recommendation report\",\"medical cannabis\",\"predictions\",\"recreational cannabis\",\"rescheduling cannabis\"],\"articleSection\":[\"Business\",\"News\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/#respond\"]}],\"copyrightYear\":\"2024\",\"copyrightHolder\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/#organization\"}},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/\",\"url\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/\",\"name\":\"HHS Suggests Rescheduling Cannabis: What It Means\",\"isPartOf\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.veriheal.com\/blog\/hss-releases-full-recommendation-report-for-rescheduling-cannabis-what-will-this-mean-for-med-rec-markets\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.veriheal.com\/blog\/wp-content\/uploads\/2024\/03\/Cannabis-Rescheduled.jpg\",\"datePublished\":\"2024-03-06T13:00:44+00:00\",\"description\":\"The U.S. Health Department recommended rescheduling cannabis to Schedule III. 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When he\u2019s not scouring social media for the latest internet drama, you can find him working on yet another collage project.\",\"url\":\"https:\/\/www.veriheal.com\/blog\/authors\/cesar-gallegos\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"HHS Suggests Rescheduling Cannabis: What It Means","description":"The U.S. Health Department recommended rescheduling cannabis to Schedule III. 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