On April 23rd, Acting US AG Todd Blanche issued an order rescheduling FDA-approved products containing cannabis and cannabis products available through a state-approved medical cannabis program from Schedule I to Schedule III. So, what does this mean?
This is not legalization
Although the schedule of medical cannabis has changed, this does not directly impact anybody currently serving sentences or facing charges in connection with cannabis.
A split between medical and recreational/adult use
This order only changes the schedule for those products available through state-approved medical cannabis programs. Any cannabis products purchased through recreational/adult use channels in other areas or those obtained through the black market are still considered Schedule I.
DEA Registration
In order to obtain Schedule III status, processors and medical cannabis pharmacies in Utah will need to register with the DEA. This is similar to the requirements faced by those involved with controlled substance medications in the regular pharmaceutical supply chain. The DEA is creating an expedited registration pathway to help with this. Medical providers recommending cannabis in Utah are already registered with the DEA in order to prescribe other controlled substances for their patients.
Tax Changes
Medical cannabis companies in Utah have not been able to take advantage of tax breaks available to other industries due to the legal standing of cannabis federally. With this new order, those tax breaks may become available. Further guidance from the IRS is forthcoming. This can help your favorite medical cannabis companies in Utah to stick around.
This order is not the end
The DEA is holding a new administrative hearing starting on June 29th to finalize rule making around this. Topics including expanding this to all cannabis products (medical and recreational/adult use) are expected to be addressed. This is only the beginning of the legal changes federally.
Please reach out to one of our pharmacists with any questions you may have.
