Cresco Labs Inc. has announced that on May 27, 2020, it registered with U.S. Drug Enforcement Administration a number of state-licensed cannabis medical facilities. The following are the results of these tests. registrations, reported by Cannabis Business TimesAs a result of federal legislation, medical cannabis has been rescheduled to Schedule III in the Controlled Substances Act. The move marks an important regulatory milestone for the sector.
Registrations include Cresco Labs’ dispensary and cultivation operations as well its processing activities that are used to serve patients with medical cannabis within the footprint of Cresco Labs. Cresco Labs’ move is in line with the 60-day DEA expedited registration process established following the federal government reclassification medical marijuana as Schedule III. This created a pathway for state-licensed operators of medical cannabis to register their specific activities.
Medical Cannabis and DEA Registrations
Cresco Labs’s DEA registrations for medical cannabis facilities represent a change in federal recognition. Cresco’s Charlie Bachtell is the CEO of Cresco and believes that this is a sign that their work has been recognized by federal authorities.
Operators will benefit from these registrations as they can simplify certain aspects of the business. They provide a better federal framework to activities that, although legal in state law, were previously a grey area. This federal recognition may impact different aspects of a business. However, the entire scope of changes are still being evaluated by the sector.
Re-scheduling of Schedule III in Context
This was an important change in regulation. Hemp Gazette reported that this reclassification recognizes cannabis’ accepted medical uses and lower abuse potential compared with Schedule I or II substances. This rescheduling led to the creation of an expedited DEA Registration Pathway, which provides a formal procedure for medical cannabis businesses licensed by state governments seeking federal recognition of their operations.
The following are the key aspects of Schedule III reclassification, and subsequent DEA Registration:
- Federal Recognition: DEA registration allows for the first time federal recognition of certain medical cannabis activities licensed by state.
- Clarity in Operational Operations: These registrations will reduce legal ambiguity for operators who are navigating state and federal law.
- Patient Access: It is intended that the move will support the continued safe access of patients to medical cannabis.
Rescheduling: A Broader Industry-Wide Response
The cannabis business industry monitors these registrations closely, particularly in regards to potential changes made by the IRS Section 280E. This section currently prevents cannabis companies from claiming ordinary expenses. The DEA’s registration doesn’t automatically solve 280E problems, but the federal recognition that medical cannabis operations are under Schedule III in current legal and legislative discussions is a consideration.
Disclaimer: The information contained in this article does not constitute medical advice. Hemp Gazette is not a medical provider and does not offer diagnoses or treatment plans. Consult a healthcare professional before you make any decision regarding your health. Therapeutic Goods Administration of Australia has not evaluated statements about the therapeutic benefits of cannabinoid products, hemp or cannabis. TGA regulations allow Australians to access medical cannabis through prescription.