Cannabis Control Commission Submits Public Comment on the Proposed Federal Rescheduling of Cannabis from Schedule I to III

WORCESTER—On Friday, July 19, the Cannabis Control Commission (Commission) submitted its public comment to the Department of Justice’s (DOJ) proposed rule to reschedule cannabis from Schedule I to Schedule III of the Controlled Substances Act (CSA), in alignment with the Department of Health and Human Services’ (HHS) recognition of the accepted medical use of cannabis, its potential for overuse, and its level of physical or psychological dependence.

Whereas the vast majority of the United States has legalized medical cannabis, the District of Columbia and 24 states have legalized adult-use cannabis. Massachusetts was among the first half of the 50 states to legalize medical-use cannabis in 2012, tied for sixth in the nation to legalize adult-use cannabis in 2016, and opened the first retail market on the East Coast in 2018.

In its response, the Commission supported the DOJ and HHS’ acknowledgment of accepted medical cannabis uses, implored the Drug Enforcement Agency (DEA) to prioritize and assist those who have been disproportionately impacted by previous marijuana prohibition and enforcement, and requested training and educational resources to ensure successful understanding of the new classification and its implications, among other feedback.

“Rescheduling cannabis is a monumental step forward for the federal government, one that can open new avenues to research, medical use, and banking for the regulated industries that states like Massachusetts have built across the country,” Acting Chair Ava Callender Concepcion said. “In order to realize the full potential of this industry, it will be essential that we safeguard our equity efforts and ensure that the positive impacts of this change are felt industrywide. Massachusetts is a leader in this space, ready and willing to share our proven practices for regulating a safe, effective, and equitable industry with our federal partners as rescheduling moves forward.”

“Massachusetts has led the nation with its mandate to ensure full participation in the legal industry by those who have been disproportionately harmed by the War on Drugs, and I am proud we are now educating federal stakeholders about the need for equity to be at the forefront of any conversation that is to come about rescheduling,” Commissioner Nurys Camargo said. “When interstate commerce eventually comes into play, local businesses in the Commonwealth will face competition throughout the country; we need to ensure that expanded playing field is level for those who have been hurt the most by previous marijuana prohibition.”

“The rescheduling of cannabis from class one to class three by the federal government will hopefully create pathways to propel much needed cannabis medical research as well as help to reduce significant business impediments currently facing cannabis entrepreneurs by providing access to banking, bankruptcy protections, and tax deductions that all other legal businesses currently enjoy,” Commissioner Kimberly Roy said.

“In the Commonwealth, where licensees are required to implement plans to both hire diverse employees and benefit communities harmed by previous marijuana prohibition, they should also have the opportunity to take advantage of federal tax benefits like the Work Opportunity Tax Credit,” Commissioner Bruce Stebbins said. “Rescheduling sends a message to small cannabis businesses in Massachusetts that the federal government is starting to view their operations like any other business, and I hope it will afford our licensees the same opportunities that are available to other industries that power our nation’s economy.”

In its public comment submission, the Commission noted it believes the recognition of medical cannabis efficacy aligns with extensive scientific research and the experiences of many states, including Massachusetts, where medical cannabis has been safely and effectively used to treat various medical conditions and improve patients’ lives. Furthermore, the Commission identified that rescheduling may help facilitate further clinical research and broaden patient access to therapeutic treatments.

As part of its comments highlighting the need to prioritize equity, the Commission also encouraged the DOJ to implement a needed regulatory change to expunge criminal records for marijuana-related offenses. In addition, the Commission requested additional information about how the federal change will affect taxation and the handling of banking and financial services for cannabis businesses, as well as noted that it is crucial to consider the impact on interstate commerce.

While the Commission acknowledged that rescheduling cannabis to Schedule III is a significant step forward, it emphasized the need for broader legislative action. The agency requested additional steps to reconcile the differences between federal and state cannabis policies in order to provide clear regulatory pathways, enhance public safety, and support the burgeoning cannabis industry. Regulators also called for training and resources tailored for healthcare providers, law enforcement, existing patients and caregivers, cannabis business owners, and the general public to ensure a thorough understanding of the rescheduling changes and their impacts.

The Commission appreciates the opportunity for members of the public to comment on this important issue and looks forward to the continued efforts of federal agencies to advance policies that recognize the medical use of cannabis, promote public health, and support effective and equitable adult- and medical-use cannabis programs.

Additional information is available on MassCannabisControl.com, or by contacting the Commission by phone (774-415-0200) or email (Commission@CCCMass.com), or following the agency on Facebook and X.

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