“This is definitely not a free the weed moment whatsoever,” the store’s owner said.
“This is definitely not a free the weed moment whatsoever,” the store’s owner said.
“This is definitely not a free the weed moment whatsoever,” the store’s owner said.
The U.S. Department of Justice is now operating under a new order that categorizes marijuana as a less harmful drug, potentially opening up more research and medical opportunities across the U.S. However, some medical marijuana retailers in Maine aren’t completely sold.
The Controlled Substances Act defines five different schedules or categories of drugs. Previously, most marijuana products were categorized as Schedule I drugs, with other drugs that are considered the most harmful and do not have any acceptable medical use, like heroin and LSD. The new order signed by President Donald Trump’s acting attorney general on Thursday moves Food and Drug Administration-approved marijuana products and marijuana under a state medical program like Maine’s into Schedule III.
“This is definitely not a free the weed moment whatsoever,” said Matt Bayliss, the owner of Garden of Gele located on State Street in Portland.
The Schedule III designation signals that marijuana has an accepted medical use and less abuse potential, putting it on par with drugs like ketamine. It doesn’t legalize the drug, but it does lessen restrictions for research and medical purposes. Bayliss said it also opens up opportunities for more regulations from the federal government.
“In the long term, as it jogs out, EPA, DEA, FDA, all these others will start to come in and take their bite of the apple. It probably isn’t going to fare well for small operators,” he said.
Bayliss said he feels that Maine already overregulates the cannabis market, and the potential for more regulations from the federal side could consolidate the market, making it harder for smaller operations to survive.
“I think the craft cannabis industry in Maine should be off to just as good a start as the craft beer industry did, but it’s not, and it’s largely because of overregulation. And that usually favors scale,” he said.
However, Bayliss says he is hoping it does ease some of the tax burden he faces. According to federal tax code, businesses selling Schedule I or Schedule II drugs cannot make any federal tax deductions. “Our effective tax rate is probably over 50%,” he said.
With medical marijuana now being classified as Schedule III, that would take away those restrictions.
There are other benefits as well. Now there will be fewer hurdles for researchers looking to work with marijuana in the laboratory. Bayliss says he could potentially take advantage of programs with the Small Business Administration.
He hopes this will destigmatize the use of marijuana, but would prefer if the federal government rescheduled the drug like alcohol and tobacco products.
“I mean, as much as we think we’re in the 21st century, we’re really not as far as cannabis stigma is concerned. The way the IRS treats us, it’s just one of many ways, where the stigma still affects business operations,” Bayliss said.
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