“The federal recognition of medical marijuana use in this country is a good first step in addressing the concerns of not only the patients in need of the product but also the states that are struggling with the legalities of any kind of marijuana, medical or recreational,” says Hickey.
One of the most immediate benefits is that marijuana businesses will no longer be burdened by the constraints of IRS Section 280E, which, principally restricts deductions to cost of goods sold. Dispensaries in particular will be the biggest beneficiaries of the change as their “cost of goods sold” is pretty limited.”
“The other significant benefit is that it will open up the door to greater clinical research into the benefits (and detriments) of using medical marijuana. Such research is critical in identifying for many patients which blend of CBD/THC is best for their particular condition. Currently, many of the remedies that are touted are antecedental. Over the long term. Research will make this a more scientific analysis,” continues Hickey.
“And while this is a good first step, the implementation, while supposedly “expedited”, will take time,” Hickey points out after reading the full EO.
“No fewer than five governmental agencies have to weigh in. This includes, among others, The U.S. Department of Justice, the Department of Health and Human Services, and U.S. Food and Drug Administration.”
“The vagaries of the makeup of these groups and the apparent overlap in responsibilities among the agencies make it difficult to anticipate if and when such rulemaking process will yield real results. As usual in the marijuana business in this country, the devil is in the details,” Hickey predicts.
