Justice Department Proposes to Reclassify Cannabis as Less Risky Drug

Cannabis could be reclassified from a Schedule I to a Schedule III drug under a new rule recently proposed by the U.S. Justice Department, according to reports. While some experts say it represents a historic shift in policy, the proposed change would not legalize marijuana, but would ease federal restrictions on the substance and put it in the same class as ketamine and anabolic steroids, CBS News reported May 16.

The DOJ’s proposed schedule for the reclassification, released May 21, includes a period for requesting a hearing through June 20 and a public comment period through July 22. If enacted, it would be the most significant change in federal marijuana law since 1970, impacting cannabis business owners’ ability to take certain tax deductions, among other effects, MJBizDaily reported.

“I think it is obviously good for the industry,” said Jason Scheurle, CPCU , National Product Leader, Cannabis, Burns & Wilcox , based in Philadelphia, Pennsylvania. “It is not the ultimate, which would be a complete legalization, but it is still certainly a beneficial move and one that will assist these cannabis organizations with taxes. They will be able to act more as a customary business, which they have not been able to do.”

For business owners in the industry, the change could also be a step toward increased access to Cannabis Insurance policies, such as Commercial Property Insurance and Commercial General Liability Insurance, although “a huge shift or change in the insurance market” is not anticipated at this time, said Kelsey Schippers, Broker, Commercial Insurance, Burns & Wilcox, Denver, Colorado.

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