Recent moves by the Trump Administration could lead to cheaper medicinal cannabis and the ability for those who use it to legally purchase a firearm, those in and around the industry said.
In April, the U.S. Department of Justice issued an order rescheduling certain kinds of U.S. Food and Drug Administration-approved products that contain marijuana and marijuana products that are regulated at the state-level, as a Schedule III drug.
The change puts medical cannabis into a category with other drugs the federal government believes have a moderate risk for psychological or physical dependence, such as anabolic steroids, testosterone and Tylenol with codeine.
The move is part of a broader effort to reschedule marijuana — not just medical cannabis, the Justice Department said.
Marijuana is still illegal under federal law. But the change does mean it is no longer a Schedule I drug, considered to have no medical use and highly prone to abuse, the same category as heroin, lysergic acid diethylamide (LSD) and ecstasy.
The rescheduling has also led to the federal government proposing changes that could allow those who use medical marijuana to legally buy a gun.
To legally purchase a firearm from a federally licensed dealer, one must complete Form 4473, which asks, “Are you an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance?”
The question also includes a warning saying: “The use or possession of marijuana remains unlawful under Federal law regardless of whether it has been legalized or decriminalized for medicinal or recreational purposes in the state where you reside.”
But a draft of a proposed update to the form deletes the reference to medical marijuana being illegal, signaling a change that could mean those who use medicinal cannabis can legally buy a firearm.
Eli Bauer, a partner at Wright Lindsey and Jennings and legal counsel for the Arkansas Cannabis Industry Association, said in an email of the proposed change to Form 4473, “this represents a material change in Form 4473 and this change can certainly be interpreted to allow a medical marijuana cardholder to lawfully purchase a firearm from a federally licensed dealer while the previous form clearly made the use of marijuana (in any form) a disqualifying condition.”
However, Bauer also said the Arkansas Cannabis Industry Association has not received any guidance from the U.S. Bureau for Alcohol, Tobacco, Firearms and Explosives on the proposed changed to Form 4473.
The ATF has posted its proposed rule change to the form for public comment.
“Do we think that this will open the door for some folks that are in need of a medical marijuana card? Yes,” said Bill Paschall, managing director and chief lobbyist for the Arkansas Cannabis Industry Association.
However, Kevin Sabet, president and CEO of Smart Approaches to Marijuana, said allowing people who use medical marijuana to legally purchase a firearm would be a public safety concern.
“I don’t think people who take a drug that can cause psychosis should be armed,” Sabet said.
In a recent news release announcing the rescheduling, the Department of Justice said the move was fundamentally part of a wider Trump Administration effort to increase research into marijuana.
Alison Oliveto, professor and director of the Center for Addiction Research at the University of Arkansas for Medical Sciences, said the rescheduling change will ease the regulatory burden on researchers like herself.
She said studying a Schedule I substance requires following strict rules that can slow down the research process, which includes applying for a registration with the U.S. Drug Enforcement Agency.
Oliveto said researchers also have to adhere to tight regulations around storage and security of any Schedule I drug they wish to study.
She said because marijuana was a Schedule I drug, it added an additional five to six months of delay for the start-up time for the study into cannabis she was planning to conduct, along with other complications that slowed down the process.
“So as someone who has done cannabis research, marijuana research recently, having a Schedule I substance that you’re trying to study is really difficult,” Oliveto said.
“First, it’s just a huge step forward in recognizing the medical benefits of marijuana,” said Nate Steel, chief regulatory officer at Good Day Farm, a medical marijuana operator.
Paschall pointed out that the biggest benefit of the move from the federal government is the change in perception it will lead to around marijuana.
“Medical marijuana, in the eyes of the federal government, now is seen as medicine,” Paschall said. “So I think that helps lift the stigma for potential patients to get a card.”
While marijuana remains illegal at the federal level, 40 states — including Arkansas — have legalized medical cannabis, according to the National Conference of State Legislatures.
Through Amendment 98 to the state constitution, Arkansas voters legalized medical marijuana, allowing the state to issue licenses for dispensaries and cultivators.
To get a medical marijuana card in Arkansas, a person must have a qualifying medical condition and a certification form signed by a physician.
Because of the stigma around marijuana, some doctors are hesitant to sign the certification form, Paschall said. But with the recent move by the Trump Administration to reschedule medical marijuana, he hopes that will change.
“I do think that stigma is lifted,” he said. “And I do think we’ll see an increase in the number of patients that will get cards. I do think we’ll see growth in the number of doctors that are willing to certify patients.”
As of May 9, there were 115,776 people with a medical marijuana card in Arkansas, according to the Arkansas Department of Health.
Recreational marijuana is not legal in Arkansas.
But while the state had its first dispensaries open in 2019, Paschall said there remains a perception around marijuana that the industry is looking to change.
As for Sabet, he said the federal government is sending the wrong message with its rescheduling effort.
He further said the federal government shouldn’t be saying that “products of totally unknown … strength, potency, ingredients” such as some marijuana gummies, waxes and oils, are medicine.
“And that isn’t how we do medicine in this country,” Sabet said. “Medicine is not done by popular vote.”
The change could also mean cost savings for patients, those in the medical marijuana industry in Arkansas said.
With it now being a Schedule III drug, medical marijuana businesses can claim the same tax deductions that any normal business can.
Under Section 280E of the Internal Revenue Code, businesses that generally traffic in Schedule I or Schedule II substances cannot claim most deductions or tax credits.
Robert McLarty, co-owner of The Source, a dispensary located in Rogers, said he hopes the change will mean cheaper medical marijuana, saying “customers and patients will feel the effects of that on the other side with a discount or lowering prices.”
After the Department of Justice issued its order rescheduling medical marijuana, the Internal Revenue Service said it’s updating its policy under Section 280E that will “have significant positive tax consequences for businesses in the medical marijuana industry.”
The change means medical marijuana businesses may be able to apply for tax deductions on insurance, employees’ salaries and office supplies, among other expenses, said Megan Raines, a certified public account and managing partner at Flatland Financial in Blytheville.
Raines, who provides accounting services to cannabis businesses in Arkansas and other states, estimated that medical marijuana businesses will save 30% to 40% on their federal tax bill because of the change.
“From a tax standpoint, this is significant, and a huge change for cannabis business operators,” Raines said. “They’re really going to see a huge increase in their bottom line.”
Neal Earley covers state politics for the Arkansas Democrat-Gazette. He joined the paper in 2020 and is a graduate of Indiana University.
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