chatgpt Cannabis

When Will Marijuana Be Rescheduled? ChatGpt’s Prediction!

When will Marijuana be rescheduled? Chat GPT’s Prediction!

Author Chat GPT 06/21/2024

As we stand on the cusp of a historic shift in U.S. drug policy, the potential rescheduling of cannabis from Schedule I to Schedule III is a topic of significant interest and debate. Here, I leverage the power of ChatGPT, an advanced language model developed by OpenAI, to explore the current process, provide an estimated timeline, and predict when this monumental change might occur.

The Power of ChatGPT

ChatGPT is an extraordinary tool designed to assist with a wide range of tasks, from generating text to answering complex questions. It harnesses the power of deep learning to understand and generate human-like text based on the input it receives. As the author of this blog post, ChatGPT has delved into various sources, analyzed the data, and provided a comprehensive overview of the cannabis rescheduling process. This cutting-edge technology enables us to stay informed and make educated predictions about significant regulatory changes.

The Rescheduling Process

The process to reschedule cannabis officially began on May 16, 2024, when the Attorney General submitted a notice of proposed rulemaking to the Federal Register. This initiated a formal rulemaking process involving several key steps:

Public Comment Period: Once the proposed rule is published, there is a 60-day public comment period during which stakeholders and the general public can submit their opinions and evidence. This period is crucial for gathering diverse perspectives on the proposed change (JD Supra) (Home | Holland & Knight) (Marijuana Moment).

Administrative Hearings: Following the comment period, the DEA may hold administrative hearings if requested by interested parties. These hearings are similar to federal bench trials, involving expert testimonies and detailed reviews of the evidence presented. This phase can significantly extend the timeline, often taking several months (JD Supra) (Marijuana Moment).

Review and Final Rule: After the hearings, the DEA will review all comments and evidence before drafting the final rule. This draft must then be reviewed by the Office of Management and Budget (OMB) and submitted to Congress for a 60-day review period, as required for major rules. This step ensures that the rule undergoes thorough scrutiny before implementation (JD Supra) (Marijuana Moment).

Implementation: Assuming no significant delays or objections, the final rule can be implemented after the Congressional review period. Historically, rescheduling processes can take anywhere from several months to over a year, depending on the complexity and volume of input received (Justice) (Vicente LLP) (Marijuana Moment).

Potential Timeline

Given the expedited nature of recent political and public interest in cannabis reform, it is possible that the rescheduling process could be completed within a year. However, considering the possibility of administrative hearings and extensive public comments, the timeline might extend beyond this optimistic estimate. Comparisons with previous rescheduling efforts, such as hydrocodone combination products, suggest that a final rule could be in place by the end of the second quarter of 2025 (JD Supra) (Vicente LLP) (Marijuana Moment).

Prediction: Based on the current pace and historical precedents, ChatGPT predicts that the rescheduling of cannabis to Schedule III will be finalized on July 1, 2025.

Current Debates and Challenges

The proposal to reschedule cannabis has faced significant opposition from various former DEA officials and Republican state attorneys general. These groups have requested public hearings, arguing that rescheduling would have far-reaching implications and requires a thorough review. They contend that rescheduling could undermine federal efforts to combat drug trafficking and contribute to increased drug abuse (Marijuana Moment) (Marijuana Moment).

On the other hand, proponents of rescheduling argue that it aligns federal policy with the growing acceptance of cannabis for medical use across many states. They highlight the potential benefits, such as removing barriers to research and allowing cannabis businesses to take standard business deductions, which are currently prohibited under IRS Section 280E (Marijuana Moment) (Marijuana Moment) (Marijuana Moment).

Conclusion

The rescheduling of cannabis to Schedule III marks a pivotal moment in U.S. drug policy, reflecting changing societal attitudes and scientific understanding of cannabis. While the process is complex and faces significant hurdles, the move could ultimately pave the way for more comprehensive cannabis reforms in the future.

As this process unfolds, it is crucial for stakeholders to stay informed and engaged, ensuring that all perspectives are considered in shaping the future of cannabis regulation in the United States.

For more detailed updates and to participate in the public comment process, visit the Federal Register and DEA websites. Stay tuned to platforms like Marijuana Moment for ongoing coverage and analysis of this critical issue.

 
Justin

The Future of the Ordinary Business Deduction for Cannabis Businesses

 

We recently ran across an article written in May by Joseph A. Peterson, a Senior Attorney at Plunkett Cooney, called Beyond 280E: The Future of the Ordinary Business Deduction for Cannabis Businesses (Here is the link to the article). His article again highlights how 280E has damaged the cannabis business and argues that companies have the constitutional right to claw back their lost deductions. See Justin’s video, which he recorded back in March, for more details (Watch Justin’s video).

Below are the highlights of Joseph’s article. We encourage you to reach out today to verify if you qualify to amend your returns and/or file a protective claim for a refund.

Highlights of Joseph’s Article:

  1. Economic Impact:
    • Medical and recreational cannabis sales could exceed $33.6 billion, with an additional economic impact of $100.8 billion by the end of 2023.
  2. Section 280E Overview:
    • Section 280E disallows tax deductions for ordinary business expenses for businesses involved in “trafficking” controlled substances, including cannabis.
    • Cannabis businesses are only allowed to deduct the Cost of Goods Sold (COGS), leading to significantly higher effective tax rates (up to 70% or higher) compared to other businesses.
  3. Impact on Cannabis Businesses:
    • The restriction of 280E creates financial strain, reducing the ability to reinvest, hire new employees, and expand operations.
    • Efforts to reform 280E include legislative proposals like The Small Business Tax Equity Act and state-level tax relief through decoupling from federal restrictions.
  4. Recent Developments:
    • Two cannabis Multi-State Operators (MSOs), Truelieve and Ascend Wellness Holdings, successfully filed amended returns to claim ordinary business expense deductions previously excluded under 280E.
    • Truelieve received $113 million in tax refunds for the 2019, 2020, and 2021 tax years, and Ascend Wellness Holdings filed for similar refunds for 2020, 2021, and 2022.
    • Both MSOs plan to file 2023 tax returns as normal corporate taxpayers, excluding 280E.
  5. Implications for the Industry:
    • The amended returns by MSOs have set a precedent and sent shockwaves through the cannabis industry.
    • There is anticipation of additional scrutiny and potential litigation from the IRS regarding these refunds.
  6. Recommendations for Cannabis Businesses:
    • Cannabis businesses should consider filing amended protective returns to preserve the ability to claim retroactive refunds if the federal stance on 280E changes.
    • The process involves identifying the basis for the claim, providing sufficient facts, quantifying the refund, meeting filing requirements, and following up after the 280E contingency is resolved.
    • Filing a protective claim can preserve the right to a refund if 280E’s applicability changes.
  7. Legal and Regulatory Context:
    • The U.S. Supreme Court affirmed the federal government’s authority to regulate cannabis under the Commerce Clause.
    • Justice Clarence Thomas and the DOJ have criticized the enforcement of 280E on medical cannabis sales.
    • Businesses should seek specialist advice and monitor legal developments closely.
    •  

We encourage you to contact us today to verify whether you qualify to amend your returns and/or file a protective claim for refund.

A Major Setback for the Psychedelics Industry: FDA Denies Lykos Therapeutics’ MDMA Therapy Approval

Bad News: Major Setback for the Psychedelics Industry: FDA Denies MDMA Therapy

A Major Setback for the Psychedelics Industry: 

FDA Denies Lykos Therapeutics’ MDMA Therapy Approval

 

 

The psychedelics industry has recently faced a significant setback as the U.S. Food and Drug Administration (FDA) denied Lykos Therapeutics’ approval request for MDMA-assisted therapy for PTSD. This decision has cast a shadow on the burgeoning field of psychedelic-assisted therapies, which has been gaining momentum over the past few years.

FDA Denial and Its Implications

Lykos Therapeutics, previously known as MAPS Public Benefit Corporation (MAPS PBC), has been at the forefront of developing MDMA-assisted therapy for PTSD. The company’s New Drug Application (NDA) for midomafetamine capsules was backed by promising results from multiple clinical trials, including the pivotal Phase 3 MAPP1 and MAPP2 studies. These studies demonstrated significant improvements in PTSD symptoms among participants who received the MDMA-assisted therapy compared to those who received a placebo.

However, during the recent meeting of the FDA’s Psychopharmacologic Drugs Advisory Committee, critics expressed serious concerns about the trial data’s reliability and the therapy’s safety profile. Despite the promising trial results, these concerns ultimately led to the FDA’s decision to deny the approval request, marking a major blow to the psychedelics industry’s efforts to gain regulatory acceptance and mainstream credibility.

A Long Road for Psychedelic Research

This denial is particularly disheartening given the decades of research and advocacy by the Multidisciplinary Association for Psychedelic Studies (MAPS). Founded over 40 years ago, MAPS has been a pioneer in psychedelic research, working tirelessly to develop medical, legal, and cultural contexts for the beneficial use of psychedelics. MAPS incubated Lykos Therapeutics with the goal of bringing MDMA-assisted therapy to market as a viable treatment for PTSD.

The recent FDA decision underscores the challenges that the psychedelics industry faces in gaining regulatory approval. Despite extensive research and significant financial investment, the path to acceptance for psychedelic therapies remains fraught with obstacles. This setback highlights the need for continued rigorous research and transparent dialogue with regulatory bodies to address safety and efficacy concerns.

Moving Forward

While the FDA’s decision is a significant setback, it is not the end of the road for Lykos Therapeutics or the broader psychedelics industry. Both MAPS and Lykos remain committed to their mission of advancing psychedelic research and improving mental health treatment options. They will likely need to address the concerns raised by the FDA and continue their research efforts to demonstrate the safety and efficacy of MDMA-assisted therapy.

For more detailed information on the FDA’s decision and its implications, you can read the full article on the Green Market Report here. Additionally, to learn more about the ongoing work of MAPS and Lykos Therapeutics, visit their websites at MAPS and Lykos Therapeutics.

The road ahead may be challenging, but the commitment and dedication of these organizations provide hope for the future of psychedelic-assisted therapies.

References: