Cannabis Law Glossary
Marijuana Rescheduling
Definition
The formal DEA and HHS process of moving marijuana down the Controlled Substances Act schedule; the term "marijuana" is used in the CSA and DEA rulemaking, while "cannabis" is preferred in state law.
Marijuana vs. Cannabis — A Definitional Note
Federal law and DEA rulemaking consistently use the term "marijuana" (sometimes spelled "marihuana"), the statutory term appearing in the Controlled Substances Act. State laws and the cannabis industry have largely moved toward "cannabis" as the preferred, non-stigmatized term. Both refer to the same plant: Cannabis sativa L.
What Is Marijuana Rescheduling?
Marijuana rescheduling is the process under the CSA by which the schedule classification of marijuana is reviewed and potentially changed. The current proposal — following an HHS recommendation in August 2023 — is to move marijuana from Schedule I to Schedule III.
The Scheduling History
Marijuana was placed in Schedule I under the Controlled Substances Act of 1970, largely based on the Shafer Commission's placeholder recommendation pending further review — a review that never changed the scheduling. Since then, every official petition to reschedule marijuana has been denied or stalled, until the 2024 proposed rule.
Business Implications of Schedule III
- Section 280E eliminated: Cannabis companies could finally deduct ordinary business expenses, dramatically reducing effective tax rates
- Research expansion: Schedule III removes barriers to clinical cannabis research
- Banking improvements: Indirect benefits as federal risk perception decreases, though SAFE Banking legislation is still needed
- FDA oversight: FDA may gain greater authority over cannabis products, particularly CBD and inhalable products
Related Terms
See also: [Cannabis Rescheduling](/glossary/cannabis-rescheduling), [Section 280E](/glossary/section-280e), [Controlled Substances Act](/glossary/controlled-substances-act)
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