On Monday, DEA Judge John Mulrooney canceled the first hearings on the Biden administration's cannabis rescheduling proposal that were set for next week following a legal challenge from pro-reform witnesses, and from the inability of the DEA to follow a directive from the tribunal.
Originally, the DEA hearing was arranged to assess a proposal from the Department of Health and Human Services to change cannabis classification from Schedule I to Scheduled III under the Controlled Substance Act, moving it to a less strict category. If rescheduled, the cannabis industry would not be denied standard business tax deductions and would allow for easier access to banking services.
The judge postponed a key hearing about changing cannabis rules, following serious concerns about how the process has been handled. Advocates for cannabis reform, who were set to testify at the now-canceled hearing, claimed the DEA had inappropriate communications with groups opposing the proposed changes. They also alleged that DEA Administrator Anne Milgram unfairly chose witnesses for the hearing.
Although the judge rejected a request to remove the DEA from the process, he allowed an appeal that will delay the proceedings for at least three months. The judge called the claims of improper communication "disturbing and embarrassing" but said they likely wouldn't influence the final decision on rescheduling cannabis. He also stated he didn't have the power to remove the DEA from its role in the hearings.
"I can no more remove or re-designate the Administrator than I can hold parties in contempt and fine them," Mulrooney said. "The strangeness of this unsupported approach is amplified by the fact that the appointment of a new DEA Administrator by a different political party is imminent."
'Unprecedented and astonishing'
On top of that, the judge has slammed the DEA for their "disobedience of an unequivocal directive from the tribunal [which] is unprecedented and astonishing," he said.
This shocking statement stemmed from the inability of the DEA to submit hard copies of the exhibits necessary for the hearing.
The DEA was required to provide three complete hard copies of all their exhibits, as clearly outlined in earlier instructions. These rules explicitly stated that electronic versions, like CDs, would not be accepted unless approved beforehand.
Despite these clear rules and a previous denial of their request to submit electronic files, they still sent a CD containing key documents instead of the required hard copies. This was seen as a deliberate violation of the tribunal's explicit orders, not an accidental mistake. As the judge stated, "this action is clearly not a mistake borne of misunderstanding or inadvertence, but an action taken in deliberate defiance of specific direction."
As a result, the tribunal has not accepted the Government's improperly submitted exhibit. Whether the Government will face penalties for breaking the rules will be decided later during the main hearing.
"The cancellation of the upcoming cannabis rescheduling hearings, attributed to procedural inconsistencies and alleged corruption within the DEA, comes as little surprise and further delays the process. A critical concern now is how the incoming Trump administration will influence this matter, particularly since the President-elect has yet to name a replacement to lead the DEA. While Trump has expressed support in recent months for easing certain federal restrictions on cannabis, it has not appeared to be a priority during his political tenure. The pivotal factor moving forward will be his choice to helm the DEA and that individual's stance on cannabis policy," stated Paula Savchenko, founder of Cannacore Group and PS Law Group.
Michael DeGiglio, retired U.S. Navy captain, naval aviator and President, Chief Executive Officer and Founder of Village Farms commented, "We view the outcome of this past week's proceedings as an imperative step in this administrative process, and a symbolic victory against a conflicted government agency which we believe has no current intention of recommending that cannabis be transferred to a Schedule III designation. We were given a voice in these proceedings through our selection as the only cannabis operator participant, and we intend to do everything we can to use that voice to fight for a fair and honest process with a successful outcome, and to help right the wrongdoings of decades of government corruption, bureaucracy, and the failed War on Drugs."
DeGiglio continued, "We commend the ALJ for harsh criticism of the DEA's defiance of this process and misconduct, which underscores our view that these proceedings are severely flawed due to the DEA's conflicted role. A majority of Americans support legalization; millions of Americans from all walks of life increasingly rely on medical and recreational cannabis for therapeutic benefits and as substitutes for opioids and alcohol; and the scientific, medical, and civic research of cannabis conducted to date is overwhelmingly positive. The fact that the interests in health and safety of Americans continue to get steamrolled by prohibitionist efforts and competing interests is shameful and disgraceful. Our Company condemns this behavior unequivocally, and we implore the Trump administration to put a swift end to it and correct the failures of past leadership. Our constitution commences with 'We the People' and it's time the federal government adhere to the will of the people and enact meaningful cannabis reform."