BALTIMORE — The U.S. Justice Department is moving to reclassify marijuana as a less dangerous drug. The historical drug policy change could end up saving cannabis businesses big bucks.

Marijuana is currently classified as a “Schedule 1” drug alongside heroin and LSD, by being deemed as having a high potential for abuse.

But the U.S. Drug Enforcement Administration is asking to move marijuana to Schedule III, alongside ketamine and some anabolic steroids

The DEA’s proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nation’s most dangerous drugs. 

The reclassification would not federally legalize marijuana outright for recreational use.  

Reclassification would eliminate Maryland tax code 

Christina Betancourt Johnson, the CEO of Standard Wellness Maryland, said the reclassification would allow more funding for medical research on cannabis and its effects on people.

There’s also a major financial impact that cannabis businesses could feel in Maryland.

The national reclassification would eliminate the Section 280E tax code, which prohibits legal cannabis companies from deducting what would otherwise be ordinary business expenses.

“You might have an effective 80 percent tax rate for every dollar earned,” Johnson said. “Whereas competitive businesses in any other industry would have a 30ish percent tax rate. So, it’s very burdensome.”

The tax code elimination would also be significant to the new cannabis businesses that are entering the state’s cannabis industry.

In March, Maryland regulators awarded adult-use marijuana social equity licenses to 174 growers, processors and dispensaries.

“This particular rescheduling effort is enormous,” Johnson said. “It will allow small business owners, particularly those who came through the social equity round, to get operational and fully reap the benefit of their hard work and their profits without that very burdensome 280E tax code.”

The latest data shows how quickly the cannabis industry is growing in Maryland since the state legalized adult marijuana use in July 2023. According to the Maryland Cannabis Administration, the state made $273 million in year-to-date cannabis market sales. 

When will marijuana be reclassified?

However, the drug rescheduling process will take some time. The rescheduling proposal entered the White House Office of Management and Budget on April 30th.

Johnson said the agency then has 90 days to complete its review. But it is expected to work on an expedited timeline.

Then, the proposal goes back to the U.S. Department of Justice for a 60-day public comment period.

During that period, there will be a hearing in front of administrative law judges, who will conduct evidence to prepare a non-binding recommendation for the DEA.

If the judges approve, the DEA would publish a final order in the register. Johnson believes the process could be completed before the elections in November.

President Joe Biden called for a review of federal marijuana law in October 2022.

Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic them without permission could still face federal criminal prosecution.

Bud Coombs wanted to play football and baseball in college. Some schools didn’t offer that opportunity for the DeMatha standout.

Maryland was one of the schools that did. The class of 2025 prospect committed to Matt Swope and Michael Locksley last Wednesday, citing the ability to play both sports as a major factor in his decision.

“I just felt like Maryland was a different type of love,” Coombs said. “It could have been because they’re from my hometown, I related to [coaches] more … I just felt like they loved me a lot more.”

Swope was the first Maryland coach to contact Coombs as a freshman. The then-associate coach targeted the outfielder’s natural athleticism and speed in the outfield.

“Very few people can play baseball and football at the level that he can play,” Bill McGregor, Coombs’ football coach and the former DeMatha baseball coach, said.

[Maryland baseball defeats Rutgers in rubber match, 6-4, secures series win]

On the football field, Coombs describes himself as a high-effort running back who evades tackles and blocks out of the backfield. The three-star prospect is the No. 19 recruit in the state of Maryland, according to 247Sports. The Stags advanced to the Washington Catholic Athletic Conference title game last season before falling to Good Counsel.

“He can do whatever you want him to do,” McGregor said. “He’s just a good football player. He can pass the ball, can catch the ball. And he’s a threat score anytime he touches it.”

Coombs knew he wanted to play both sports in college. Multiple teams, including Alabama, offered him in baseball but not football.

The Crimson Tide made a bid until the end, with Anthony Papio — a former Maryland assistant coach who followed Rob Vaughn to Alabama — attending a DeMatha game days before Coombs committed.

Swope and Coombs share a unique bond — they’re both DeMatha products. Swope graduated from the Hyattsville school in 1998 before playing for Maryland. Coombs said the two talk frequently and relate to each other outside of baseball, connecting over Swope’s alma mater.

[Kenny Lippman has found success in his move to Maryland baseball’s bullpen]

Coombs’ commitment aligns with Maryland baseball’s recent focus to keep in-state talent. Out of the 16 incoming Terps’ freshmen, 10 hail from either Maryland or Virginia. Swope, fellow DeMatha grad Johnny Poss and Jimmy Jackson are all Maryland natives, which has helped them recruit locally.

“We’re gonna go after those guys first, that’s going to be our hotbed and then we’re gonna move out from there,” Swope said at media day in January. “Guys like Jimmy and Johnny who are from Maryland, that take a lot of pride in it, have deep-rooted relationships with the coaches. And that will always be our lifeline as far as recruiting goes.”

Coombs noted the potential to see his family at each game as a factor in his decision. But it was also the “love” from the school that differentiated itself from others, as well as the ability to star in both sports.

“The Terps are gonna get everything and more out of me,” Coombs said. “I’m gonna give them everything I have.”

The Unified Command salvage teams have located the body of another victim of the Francis Scott Key Bridge disaster, bringing the total number of causalities to six. 

Maryland State Police investigators identified the victim as Jose Mynor Lopez, 37, of Baltimore.

Investigators from the Maryland State Police, along with an FBI Victim Specialist and linguist, and a team of mental health professionals notified family members after a positive identification was confirmed.

“With heavy hearts, today marks a significant milestone in our recovery efforts and providing closure to the loved ones of the six workers who lost their lives in this tragic event,” said Colonel Roland L. Butler, Jr., Superintendent of the Maryland Department of State Police. “As we mourn with the families, we honor the memory of José Mynor López, Alejandro Hernandez Fuentes, Dorlian Ronial Castillo Cabrera, Maynor Yasir Suazo-Sandoval, Carlos Daniel Hernandez Estrella, and Miguel Angel Luna Gonzalez.” 

BALTIMORE BRIDGE COLLAPSE: FIFTH BODY RECOVERED FROM FRANCIS SCOTT KEY BRIDGE WRECKAGE

The discovery comes weeks after the Sri Lanka-bound Dali container ship struck the Key Bridge, causing it to collapse on the night of Mar. 26, leaving six construction workers dead.

Less than a week ago, authorities announced a fifth victim’s body had been recovered from the wreckage. Miguel Angel Luna Gonzalez, 49, of Glen Burnie was recovered after divers spotted a red construction vehicle in the river and alerted the Maryland Department of State. 

BALTIMORE BRIDGE COLLAPSE: SECOND TEMPORARY CHANNEL OPENED, ROUGH WEATHER SLOWS DEBRIS REMOVAL

The cargo ship Dali sits in the water after running into and collapsing the Francis Scott Key Bridge on March 26, 2024 in Baltimore, Maryland. ( Kevin Dietsch/Getty Images)

“We remain dedicated to the ongoing recovery operations while knowing behind each person lost in this tragedy lies a loving family,” Butler, Jr., said in a previous press release. “Along with our local, state and federal partners, we ask that everyone extend their deepest sympathies and support to the families during this difficult time.”

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Maryland Gov. Wes Moore announced last month that the state will establish a scholarship for the families of transportation workers who die on the job.