In this interview, Brooke Jenkins from Upstate Elevator Supply Co. explores the differences between rescheduling and descheduling cannabis and its impact on the industry.
Brooke Jenkins is a leading figure in Vermont’s cannabis industry, serving as the Chief Operations Officer at Upstate Elevator Supply Co. A graduate of Vermont Law School, she has dedicated over a decade to advancing the cannabis sector in Vermont, notably helping to open the state’s first medical marijuana dispensary in 2013.
Since joining Upstate Elevator in 2017, Jenkins has steered the company to become Vermont’s largest cannabis brand.
In this interview, Jenkins shares her insights on the potential rescheduling of cannabis to Schedule III, the immediate and long-term impacts on the industry, and the broader implications for legalization and federal regulation.
Her extensive experience and deep understanding of the cannabis market provide valuable perspectives on the evolving landscape of cannabis policy and its future in the United States.
Ganjly: Can you explain the key differences between rescheduling cannabis to Schedule III and descheduling it entirely?
Brooke Jenkins: Rescheduling cannabis to Schedule III would mean it could be prescribed by doctors and dispensed by pharmacies, a significant incremental advancement, but a far cry from full federal legalization. Descheduling completely would allow for interstate commerce of cannabis.
Ganjly: What immediate changes would rescheduling cannabis to Schedule III bring to the industry, particularly for medical marijuana dispensaries?
Brooke Jenkins: The largest change would be the ability for pharmacies and medical marijuana dispensaries to legally “distribute, dispense, and possess medical marijuana” under the Controlled Substances Act subject to federal and state licensing regulations.
This would be a big improvement on the current legal gray area that medical cannabis dispensaries are forced to operate. We would also expect to see increased oversight of cannabis manufacturers from the FDA around registration and compliance with current good manufacturing practices to ensure improved product safety.
Ganjly: How would rescheduling impact the ability of Upstate Elevator Supply Co. to operate across state lines?
Brooke Jenkins: There will likely be no immediate changes in Upstate’s ability to sell cannabis product across state line until marijuana is fully descheduled. The ultimate aim remains descheduling of marijuana, which would lift federal prohibition entirely enabling interstate commerce.
Ganjly: What are the specific banking and financial challenges that would persist even with rescheduling to Schedule III?
Brooke Jenkins: Cannabis companies will not have access to traditional banking options or credit card processing if marijuana is descheduled. The effects of these restrictions are that the marijuana industry operates heavily in cash. Full relief from financial challenges will only happen through legislative action or federal legalization.
Ganjly: Why do you believe full descheduling is necessary for the cannabis industry, and what are the main obstacles to achieving it?
Brooke Jenkins: While this is a hugely historic moment for drug policy to right the wrongs of prohibition, it is only a first step towards the larger goal of full federal legalization of Cannabis. Full descheduling would mean consistent federal regulation and interstate commerce, which would benefit consumers by creating a safer, more affordable product. Additionally, descheduling would ensure that no one goes to jail for using cannabis.
The main obstacles continue to be bureaucratic intransigence at the federal level, plus deep-pocketed moral and political opposition channeled through anti-legalization lobbying groups.
Ganjly: Can you elaborate on how rescheduling might affect Section 280E and the tax liabilities faced by cannabis businesses?
Brooke Jenkins: Section 280E drastically limits the tax deductions that are available to cannabis businesses. Rescheduling would allow cannabis businesses to deduct normal operating expenses including rent, utilities, and marketing expenses on their taxes, just like every other business is allowed to do.
Ganjly: What are the political implications of rescheduling cannabis before the January 2025 presidential inauguration?
Brooke Jenkins: Given the widespread and increasing bipartisan support for cannabis rescheduling, it would behoove both candidates to support the will of the people on this key issue. Could supporting the rescheduling of cannabis be a big enough hot-button election issue to tip the scales in favor of one party or the other? I’d like to think so.
Ganjly: How might legal challenges and appeals to the DEA’s rulemaking process affect the timeline for rescheduling cannabis?
Brooke Jenkins: Nobody can say for sure, but it is conceivable that the rulemaking process could be subject to years of litigation.
Ganjly: What impact do you foresee on public perception and support for cannabis legalization if rescheduling to Schedule III occurs?
Brooke Jenkins: Rescheduling is a necessary, but hardly a sufficient step toward righting the wrong of cannabis prohibition. The public will continue to push for full cannabis legalization.
Ganjly: How would rescheduling to Schedule III affect the ability of cannabis companies to pursue public offerings and attract investment?
Brooke Jenkins: Rescheduling to Schedule III is likely to catalyze a new wave of investment into the sector but one of the biggest impediments to large inflows of institutional capital remains the lack of banking reform like the bipartisan Secure and Fair Enforcement Regulation (SAFER) Banking Act.
Brooke Jenkins is the Chief Operations Officer at Upstate Elevator Supply and a graduate of Vermont Law School. She has spent over a decade working in Vermont’s cannabis industry and helped open the state’s first medical marijuana dispensary in 2013. Jenkins joined Upstate Elevator in 2017, leading the company to become Vermont’s largest cannabis brand.
Thank you so much, Brooke for taking the time to do this interview. To know more about Brooke and her company, Upstate Elevator Supply Co, head on over to UpstateElevator.com.
