MJBiz - September/October 2024 - 16

INDUSTRY DEVELOPMENTS National & International
Cannabis News
Rescheduling Delayed
Until After Election
Marijuana won't be downgraded
from Schedule 1 to Schedule 3 of
the Controlled Substances Act
until December at the earliest,
according to a U.S. Drug Enforcement
Administration notice.
The DEA said in a notice
published Aug. 29 in the Federal
Register that the agency will
hold a hearing on the proposal
to reclassify marijuana under
federal law on Dec. 2.
In May, the Biden administration
formally proposed to
recategorize marijuana under
federal law, the most significant
step in cannabis reform since the
Nixon administration. After the
DEA published its proposed rule
on May 21, the agency " invited
interested parties to submit
requests for hearing. "
The proposal elicited nearly
43,000 public comments before
a July 22 deadline, and the vast
majority expressed support.
" A hearing was always
a possibility, and we are
prepared for it, " Bryan Barash,
vice president at marijuana
e-commerce platform Dutchie
and co-chair of the Coalition for
Cannabis Scheduling Reform,
told MJBizDaily via email.
For the U.S. cannabis industry,
the major consequence of
the hearing date is that
rescheduling won't be official
until at least December,
meaning tax relief is unlikely to
come until next year.
If marijuana is moved to
Schedule 3, cannabis businesses
won't be subject to restrictions
under Section 280E of the
Internal Revenue Code.
But until rescheduling happens,
plant-touching operators are
expected to pay their federal
taxes, the IRS said in a June
notice.
New Zealand Loosens
Export Rules
The main governing body of
senior ministers in New Zealand
approved rule changes that will
make it easier for the nation's
medical cannabis operators to
export their products.
In perhaps the biggest change
to the Medicinal Cannabis
Scheme-as the country's MMJ
program is called-exports now
must meet only " the standards
of the importing jurisdiction, " not
the quality standard set by New
Zealand law, broadcaster TVNZ
reported.
According to a news release
from Auckland-based MMJ
operator Helius Therapeutics, the
other changes involve:
* Streamlining the licensing
process.
* Updating testing and laboratory
requirements.
* " Improving a range of other
matters which reduce costs
and time for the sector,
whilst still maintaining
trusted high standards. "
The rule changes took effect
immediately, according to
Auckland-based TVNZ.
New Zealand's senior ministers
made the change at a mid-July
meeting.
The Oceania nation launched
a medical cannabis program
in April 2020 but has not yet
approved adult use.
MMJ prescriptions in New
Zealand have doubled over the
past year, but cannabis products
are still expensive.
16 September-October 2024 | MJBizMagazine
Industry stakeholders hope
allowing exports will lower the
cost of cannabis for patients.
Canadian Hemp Licenses
Decline for Third Year
Active Canadian hemp licenses
declined for the third year in a
row, with all provinces or territories
showing double-digit permit
declines from 2022.
The number of hemp licenses
has been declining in Canada
since 2020, when it peaked at
1,269, according to new data
from Health Canada.
Ontario, the most-populous
province in Canada, led the
country in number of active
hemp licenses with 176,
accounting for nearly 24% of
permits issued in 2023.
Some hemp licensees are
permitted to conduct hemp
cultivation and processing
activities at multiple sites, which
could encompass more than one
province.
Alberta and Quebec trailed
Ontario, with 19% and 16%
of active hemp licenses,
respectively.
More than half the provinces
and territories reported few
or no licenses, such as the
Northwest Territories and
Nunavut, both of which had
received no active licenses from
Health Canada in 2023.
All provinces and territories in
Canada experienced double-digit
license declines in 2023, but some
lost more than others.
License numbers in Manitoba
and Quebec remained steadiest
through 2023, with each experiencing
a decline of about 12%,
while British Columbia lost more
than 50 licenses, or 34%.
MJBiz - September/October 2024

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