Marino Submits Formal Comment on Cannabis Rescheduling

In the ongoing effort to reform cannabis legislation, the rescheduling of cannabis from a Schedule I to a Schedule III substance represents a monumental step forward. At Marino PR, we have witnessed the profound impact of federal prohibition on cannabis research and industry growth. Our SVP, Jordan Isenstadt, has formally submitted a comment to the Federal Register addressing the significant benefits and urgent need for this reclassification. Below is his detailed commentary, highlighting how this pivotal change will enhance scientific research, alleviate financial burdens on cannabis businesses, and promote a more equitable industry:

Over the past decade, building the cannabis PR practice at Marino has shown us firsthand how federal prohibition and Schedule I classification hinder quality cannabis research. The rescheduling of cannabis to Schedule III represents a pivotal step forward, removing barriers that have long stymied scientific inquiry and medical advancement. This reclassification would significantly enhance the ability of researchers to conduct rigorous studies, leading to a better understanding of cannabis’s therapeutic potential and public health implications.

As a PR firm specializing in the cannabis industry, our job is to tell the stories of our clients, as well as the customers and patients they serve. The lack of robust research has created a situation where much of what we communicate remains anecdotal, which is no way to build a credible and sustainable industry. Anecdotes, while powerful, cannot replace the authority of well-conducted research. More information will set us all free by providing the evidence needed to validate and optimize the use of cannabis, both medicinally and recreationally.

Cannabis's Schedule I status has created a quagmire of regulatory hurdles that impede research. Laboratories face onerous restrictions, and researchers must navigate an arduous approval process to study cannabis. This has resulted in a dearth of robust clinical data, limiting the development of evidence-based policies and medical treatments. By moving cannabis to Schedule III, these impediments would be substantially reduced, allowing scientists to explore the plant's full spectrum of benefits and risks with greater ease and efficiency.

Moreover, reclassifying cannabis to Schedule III would eliminate the burden of Section 280E of the Internal Revenue Code, which currently disallows standard business deductions for cannabis companies. This provision has placed a disproportionate financial strain on cannabis businesses, particularly small and mid-sized enterprises, stifling their growth and innovation. Removing this obstacle would provide critical financial relief, enabling these businesses to operate on a more level playing field with other industries.

The financial benefits of this reclassification cannot be overstated. Freed from the constraints of Section 280E, cannabis businesses would have greater latitude to reinvest in their operations. This newly available capital could be channeled into several key areas. First, enhancing operational efficiencies through investment in technology and infrastructure would allow businesses to scale their production capabilities. Second, significant funds could be allocated to research and development, driving product innovation and market differentiation. This, in turn, would enable companies to meet the evolving demands of consumers and maintain a competitive edge in the market.

Importantly, small and mid-sized businesses, which have borne the brunt of the financial pressures imposed by 280E, would stand to benefit immensely. These companies could redirect saved funds towards sustainable growth and regulatory compliance, positioning themselves for long-term success. This shift would foster a more diverse and resilient industry, characterized by increased entrepreneurship and innovation.

It is imperative to recognize that much of the cannabis industry was founded on principles of restorative justice. The war on drugs disproportionately impacted marginalized communities, and the legalization and growth of the cannabis industry have been seen as a pathway to rectify some of these injustices. Social equity programs aim to provide opportunities for those affected by prohibition to enter and thrive in the cannabis market. Reclassifying cannabis to Schedule III would help ensure the economic success of these businesses by alleviating the heavy financial burdens that hinder their growth. Providing social equity businesses with the financial relief they deserve is not just a matter of economic pragmatism but a moral imperative to support those who have been historically disadvantaged.

At Marino PR, we have been dedicated to supporting our clients through the complexities of the current regulatory landscape. We have witnessed firsthand the resilience and ingenuity of cannabis businesses as they navigate these challenges. With the proposed rescheduling, we are optimistic about the opportunities that lie ahead. This regulatory change would not only facilitate medical research and provide financial relief but also contribute to a more equitable industry. By leveling the playing field, it ensures that all businesses, regardless of size, have the opportunity to thrive.

In conclusion, the rescheduling of cannabis to Schedule III is a crucial step towards advancing the cannabis industry and fostering scientific progress. It promises to dismantle barriers to research, provide much-needed financial relief, and stimulate industry growth and innovation. Marino PR enthusiastically supports our clients through this transformative period, advocating for progress and contributing to a more informed and equitable industry landscape. We urge policymakers to move forward with this reclassification to unlock the full potential of cannabis research and industry development.