In May of 2024, the Justice Department moved to reclassify cannabis as a less dangerous drug, proposing to shift it from its current position as a Schedule I substance to a Schedule III. If enacted, this change would recognize the potential medical uses of cannabis and that the plant has a lower risk of abuse than other Schedule I and II drugs.
The proposal is a historic shift in decades of U.S. drug policy. Weed has been a Schedule I drug under the Controlled Substances Act since 1970. Reclassifying it as a Schedule III substance is a major step forward. But what exactly does it mean for Massachusetts residents and the country as a whole? Let’s take a closer look.
Would Reclassifying Weed Affect Massachusetts Residents?
First things first. Will weed be federally legal if it gets reclassified as a Schedule III substance? In short, no.
Reclassification would not legalize cannabis. Although it would be moved to a less tightly regulated group, the plant would remain a controlled substance subject to certain federal rules and regulations.
The change also wouldn’t completely decriminalize cannabis, as anyone who traffics it illegally would still be subject to federal prosecution.
So, what does this mean for Massachusetts cannabis users? Weed reclassification wouldn’t change much, nor would it decriminalize weed. Whether you use cannabis medically or recreationally, you would still be subject to current state, local, and federal laws.
The Potential Impacts of Weed Reclassification on the U.S.
While reclassification wouldn’t change recreational or medical programs in states with legal cannabis or have the same impact of legalizing weed, it could still have a few significant impacts on the cannabis industry and the U.S. as a whole.
Research
While there are some studies out there on the potential benefits of cannabis, many recognize the need for more research. However, as a Schedule I drug, there are currently several significant barriers that make cannabis research incredibly difficult.
Reclassifying weed could mean fewer research restrictions, making it easier for researchers to get the permits and funding they need to better study and understand the plant’s potential health benefits. It may also allow for more thorough clinical trials.
Cannabis Business Taxes
Because cannabis businesses are technically “trafficking” a Schedule I substance, they can’t claim the same deductions as other business owners come tax time. Where other companies can write off expenses like rent and payroll, cannabis businesses can only deduct the cost of goods sold. As such, many businesses pay a substantial tax rate of as much as 70%.
Reclassification could allow cannabis companies to take more tax deductions. Allowing them to keep more of their money could allow for benefits such as greater product innovation and lower prices for cannabis users.
Banking Options
With many traditional banks refusing to provide checking accounts or loan products to anyone in the cannabis industry, cannabis business owners currently have very few banking options. Reclassifying weed may help change this. Banks may be less hesitant to work with cannabis companies, allowing them to access checking accounts, process card payments, apply for credit lines, and more.
Customers could also benefit. For instance, you may be able to pay with a card rather than having to withdraw cash from the ATM every time you want to hit your favorite dispensary.
Weed Reclassification: A Positive Step Forward for Cannabis
While we may still be a ways away from federal legalization, reclassifying weed would be a huge step in the right direction. In the meantime, Massachusetts residents and visitors can legally enjoy high-quality cannabis products from dispensaries like Harbor House Collective. Check out our online menu or visit us in person today!
