U.S. Court of Appeals Rejects Bid to Block Marijuana Rescheduling Order, Keeping Covered Marijuana in Schedule III

Key Points
  • The federal appeals court denied a request to temporarily block the federal government's marijuana rescheduling order, allowing state-licensed medical marijuana and certain federally approved marijuana products to remain in Schedule III during ongoing legal challenges.
  • The order, issued by the U.S. Court of Appeals for the D.C. Circuit on September 9, involves consolidated cases challenging the Department of Justice’s April rescheduling action that moved certain marijuana categories from Schedule I to Schedule III under the Controlled Substances Act.
  • The court ruled that petitioners challenging the rescheduling did not meet the stringent requirements for a stay, so the April policy remains in effect while the court reviews whether the Department of Justice acted with proper legal authority.
  • The court also rejected a request for intervention by two companies but allowed them to participate as amici curiae, and it directed parties to submit a joint briefing proposal within 30 days to avoid repetitive filings.

A federal appeals court today rejected an attempt to temporarily block the federal government’s marijuana rescheduling order, allowing state-licensed medical marijuana and certain federally approved marijuana products to remain in Schedule III while legal challenges continue.

The U.S. Court of Appeals for the District of Columbia Circuit issued the order September 9 in a series of consolidated cases challenging the Department of Justice’s April rescheduling action. Judges Robert Wilkins, Justin Walker and Bradley Garcia comprised the three-judge panel.

The challengers had asked the court to stay an April 28 order that transferred two categories of marijuana from Schedule I to Schedule III under the federal Controlled Substances Act: marijuana covered by state medical marijuana licenses and Food and Drug Administration-approved drug products containing marijuana.

“Petitioners have not satisfied the stringent requirements for a stay pending court review,” the court said in denying the request.

The ruling does not resolve the underlying challenges to the rescheduling order. Instead, it means the April policy will remain in effect while the D.C. Circuit considers arguments over whether the Department of Justice had legal authority to issue it in the manner it did.

The challengers, which include the National Drug and Alcohol Screening Association and several companies involved in cannabinoid drug development, argue that federal officials improperly bypassed procedures normally required when changing a substance’s classification under the Controlled Substances Act. Their June motion sought to return affected marijuana to Schedule I until the litigation is resolved.

The April action is distinct from the broader federal proceeding over whether marijuana generally should be moved from Schedule I to Schedule III. The government’s April order immediately rescheduled marijuana subject to state medical marijuana licenses and certain FDA-approved products while setting a separate proceeding to address marijuana more broadly.

Wednesday’s order also directs the parties to submit proposed formats for briefing the consolidated cases within 30 days. The court said it “looks with extreme disfavor on repetitious submissions” and strongly urged parties to submit a joint proposal where possible.

The court also denied a request by MedPharma Iowa and Tri-Mountain Pure to formally intervene in the litigation, finding their interests were adequately represented by existing parties, but allowed the companies to participate as amici curiae.