• Historic federal action would recognize medical benefits of cannabis and make Section 280E inapplicable to licensed cannabis operators.
• The AP reports that rescheduling would occur as a Proposed Rule subject to notice and comment rulemaking before it could become final – a lengthy process.
• Announcement alone will have positive financial impact for cannabis operators.

AP is reporting that the Drug Enforcement Administration will propose a rule to reschedule cannabis to Schedule III under the Controlled Substance Act. The proposed rule is subject to review by the White House Office of Management and Budget before publication in the Federal Register, according to AP. The rescheduling rule will be subject to notice and comment rulemaking and potentially a hearing (an often lengthy process). We detailed more on the potential effects of rescheduling in a prior alert, and will be following every detail on our blog: Cannabis & the Law.