Alabama has dropped its formal opposition to the federal government's plan to reclassify marijuana as a Schedule III controlled substance, state health officials confirmed this week.
State Health Officer Scott Harris said the Alabama Department of Public Health's legal team resolved concerns that initially prompted the state to file objections with the Drug Enforcement Administration. The reversal comes as the DEA continues to review thousands of public comments on its proposal to move cannabis from Schedule I to Schedule III.
"Our legal team has addressed the issues we raised," Harris said, without elaborating on what specific concerns were resolved or what changed in the department's analysis.
The rescheduling timeline
The DEA proposed rescheduling marijuana in May 2024 following a recommendation from the Department of Health and Human Services. The agency opened a 60-day public comment period that drew more than 43,000 submissions from industry stakeholders, medical professionals, law enforcement, and advocacy groups.
Alabama was among several states that filed formal objections during the comment period. State attorneys and health officials argued the proposal raised questions about how rescheduling would interact with state medical marijuana programs and existing controlled substance regulations.
The state launched its own medical cannabis program in 2021, though licensing delays have pushed the first dispensary openings into 2025. Alabama's program allows cannabis products for 15 qualifying conditions but maintains strict THC limits and prohibits smokable flower.
What Schedule III means
Reclassifying cannabis to Schedule III would acknowledge its accepted medical use and lower abuse potential compared to Schedule I drugs like heroin. The change would allow state-licensed cannabis businesses to deduct normal business expenses on federal tax returns, eliminating the burden of IRS code 280E that currently prevents deductions.
But Schedule III status would not legalize marijuana federally or resolve conflicts between state and federal law. Cannabis businesses would still face banking restrictions and interstate commerce barriers. Medical marijuana programs would continue operating under state frameworks rather than FDA oversight.
Policy analysts note that state opposition to rescheduling has been limited compared to industry support. Most objections from state officials have focused on technical implementation questions rather than blanket opposition to the policy change.
What's next
The DEA has not announced a timeline for finalizing its rescheduling decision. The agency must review all public comments and may hold administrative hearings before issuing a final rule.
Alabama's withdrawal removes one voice from the opposition column, though several law enforcement groups and some medical organizations maintain their objections. The Cannabis Industry Association and major multi-state operators have filed extensive comments supporting the move.
Harris did not indicate whether Alabama would submit new comments supporting rescheduling or simply withdraw its previous objections. The state health department declined to provide additional details about the legal team's review process.
Industry observers expect the DEA to face political pressure regardless of timing. A decision before the 2024 election could draw criticism from opponents, while delaying past November risks accusations of politicizing drug policy.
This article is based on original reporting by mjbizdaily.com.
