Week in Weed: DEA Rescheduling Hearing Set, Ohio Launches Sales

DEA Sets August Hearing for Cannabis Rescheduling

The Drug Enforcement Administration will hold its first administrative law hearing on the proposed rescheduling of cannabis from Schedule I to Schedule III on August 12, 2026, in Arlington, Virginia. The notice, published in the Federal Register on July 16, establishes a 30-day public comment window closing August 11 and designates Administrative Law Judge Patricia Morrison to preside over the proceeding. This hearing is the first formal adversarial review of the Department of Health and Human Services' August 2023 recommendation to reschedule cannabis.

Stakeholders including the National Organization for the Reform of Marijuana Laws, the Cannabis Trade Federation, and several multi-state operators filed requests to participate as intervenors by the July 25 deadline. The DEA's notice doesn't specify a timeline for Judge Morrison's recommendation or the agency's final rule. Administrative law proceedings typically extend 6-12 months from initial hearing to final order.

Best guess on timing? Late 2026 or Q1 2027 for a final rule, absent political intervention. That timeline would place any effective date after the November 2026 midterm elections, a scheduling the White House has consistently avoided commenting on.

Ohio Adult-Use Sales Launch with $11.3M Opening Weekend

Ohio's Division of Cannabis Control reported $11.3 million in adult-use cannabis sales across 98 licensed dispensaries during the program's first three days of operation, July 15-17. The launch followed a six-month implementation period after voters approved Issue 2 in November 2023 by a 57-43 margin. The state issued 127 dual-use licenses to existing medical dispensaries. Only 98 were operationally ready by the July 15 start date.

Average transaction size was $87. Flower products accounted for 64% of sales by dollar volume, according to the DCC's preliminary data. The state's 10% excise tax generated an estimated $1.13 million in the opening weekend, on track to exceed the Legislative Service Commission's first-year revenue projection of $276 million.

Ohio's per-capita launch performance trails Illinois ($14.2M opening weekend, 2020) but exceeds New Jersey ($10.1M, 2022) when adjusted for population.

The state has 412 additional dispensary applications under review, with the next license issuance round scheduled for September 2026. Cultivation capacity remains the binding constraint. The DCC reports 18 of 34 licensed cultivators at full operational capacity as of July 15.

California Targets 47 Unlicensed Retailers in LA Sweep

California's Department of Cannabis Control executed search warrants at 47 unlicensed cannabis retail locations across Los Angeles County on July 16-17, seizing approximately $8.2 million in untested product and issuing 94 misdemeanor citations. The coordinated enforcement action involved 12 local law enforcement agencies and marks the largest single-jurisdiction sweep since the DCC's formation in July 2021. The operation targeted storefronts identified through the agency's consumer complaint portal and geospatial analysis of dispensary clusters in unincorporated county areas.

Unlicensed retailers undercut licensed operators by an average of 35% on comparable flower products, according to a June 2026 pricing study by the California Cannabis Industry Association. The tax arbitrage drives the gap, with unlicensed sellers avoiding the state's 15% excise tax, local taxes averaging 8-10%, and cultivation tax of $10.08 per ounce of flower.

The DCC has conducted 312 enforcement actions year-to-date through June 30, 2026, a 47% increase over the same period in 2025. Director Nicole Elliott said the agency is prioritizing enforcement in jurisdictions where licensed retailers have filed formal complaints documenting revenue loss to nearby unlicensed competitors. For full background on California's enforcement escalation, see the CannIntel topic hub on Cannabis Weekly Roundup.