Sen. Cory Booker (D-NJ) is calling out the Drug Enforcement Administration (DEA) over a policy that at least one medical marijuana dispensary owner says could force her to fire good employees if she wants to register for federal protections in line with the Trump administration’s move to federally reschedule cannabis.
Last month, Nicole Huff, CEO of the Wildflower Medical Dispensary in Mississippi, shared with Marijuana Moment correspondence that a DEA official sent about two of her workers who have past felony convictions. As a result of those criminal records, the business must either fire the employees, withdraw its application for federal protections, seek a waiver while becoming ineligible for expedited processing or go before an agency judge, the agency official said.
Booker, who has sponsored legislation to federally legalize cannabis with provisions aimed at repairing the past harms of the war on drugs for people who have faced criminal enforcement, told Marijuana Moment in an interview that the DEA policy is “really problematic.”
“That’s an issue I’ve been fighting on for years. I think that’s ridiculous,” he said. “And that’s why I think there should be for these nonviolent offenders who are convicted of crimes that are now legal, that we should be expunging records.”
“If you are a person that believes in justice, that believes in economic opportunity, fairness under the law—if you believe in economic growth, if you’re a pro-growth person—these are all things that help create jobs, build economy, keep people out of jail,” Booker said. “It’s just smart policy.”
Huff, the Mississippi medical cannabis dispensary owner, told Marijuana Moment that while she appreciated hearing Booker’s comments, “we urgently need our elected officials in Mississippi and other states to stand with licensed cannabis businesses and the employees who depend on us.”
“We are asking our elected officials to advocate for clear guidance, reasonable waiver timelines and practical employment options while applications are pending,” she said. “Please help ensure that the people who invested in Mississippi’s medical cannabis program have a fair chance to succeed.”
Huff also provided an update on her recent conversations with DEA, saying that the agency said her affected workers could “move to a non-plant-touching position while awaiting an employee waiver.”
“However, creating an administrative position simply to keep someone employed during that process is not financially practical for many cannabis companies,” she told Marijuana Moment. “We were also given no timeline for how long the waiver process might take, leaving both the business and the employee facing indefinite uncertainty.”
“Mississippi cannabis license holders have invested thousands of dollars, countless hours, and their livelihoods into this program, only to face obstacles that repeatedly undermine our ability to operate,” she said. “A single $20,000 DEA fine could be enough to close many businesses already struggling to stay afloat.”
“The license holders I know are honest, hardworking Mississippi residents trying to serve patients, support their families, and provide jobs in their communities. Our employees are the backbone of our businesses. They need these jobs, and we need a clear, workable process that allows us to retain them.”
Ashlie Way, a diversion investigator with DEA’s Jackson District Office, previously sent Huff an email saying that “because you have the 2 employees who have felony convictions, you have the following options when it comes to your application.”
“You can waive your right to the expedited application in the event you want to proceed with an employment waiver,” it said. “Or you can withdraw your DEA application.”
“If you choose not to do either of those, I will send your application up for what we call an Order to Show Cause. An Order to Show cause is when an application is sent to Headquarters. They will assign it to an attorney who will send out a letter to the applicant letting them know that they have the right to request a hearing. If they choose to have a hearing, the applicant will respond to the letter, and a hearing will be set for them before the Administrative Law Judge (ALJ). I believe the hearing is held in Washington DC. The applicant will then have the opportunity to present their case to the ALJ. From there, the Judge will determine if the application proceeds to a registration or if the application will be denied.”
Huff told Marijuana Moment last month that she would take the issue before a DEA judge.
“I plan to request employment waivers on their behalf,” she said at the time. “I understand that doing so may require me to travel to Washington, D.C., and appear in federal court, and I am prepared to take the necessary steps.”
“It is already extremely difficult for individuals with nonviolent felony convictions to obtain stable employment. I intend to ask the court to consider a grandfather provision for individuals who were employed before the DEA application was submitted,” Huff said. “If an employee has a nonviolent conviction, has maintained satisfactory employment and has received no disciplinary actions, I believe that person should be eligible for an exemption from mandatory removal.”
The two Wildflower workers in question “have demonstrated their reliability through more than a year of successful employment,” she said. “I plan to ask that their individual circumstances and employment records be considered before a final decision is made. I hope other dispensary owners would do the same.”
DEA regulations for registration to handle controlled substances state that “the registrant shall not employ, as an agent or employee who has access to controlled substances, any person who has been convicted of a felony offense relating to controlled substances.”
The agency does, however, allow employers to submit requests for waivers.
In Huff’s case, even if she asks for and receives a waiver, she would still have to waive her right to the agency’s expedited application process for registration for the federal benefits and protections that come with rescheduling, according to Way’s email.
Meanwhile, the agency has been conducting inspections and follow up interviews with medical cannabis businesses that register for federal protections, but industry sources say the way the agency has been carrying out those activities varies between DEA’s regional offices throughout the country.
In June, Mississippi medical cannabis businesses spoke to Marijuana Moment about being visited by DEA officials, who told them they were among the first in the country to be seen for inspection under the registration process.
In August, Marijuana Moment obtained a list of 26 questions that DEA officials are sending to medical cannabis businesses in Colorado as part of the consideration of their applications for registration.
The agency launched its initial registration form for dispensaries in April, days after Attorney General Todd Blanche issued an order immediately moving marijuana products regulated by a state medical cannabis license from Schedule I of the Controlled Substances Act (CSA) to Schedule III, along with marijuana products that are approved by the Food and Drug Administration (FDA). It more recently posted processes for medical marijuana manufacturers, distributors and analytical labs to register as well.
A DEA hearing that concluded testimony is considering broader marijuana rescheduling.
The LCB contributed reporting from Washington, D.C.
Marijuana Moment is made possible with support from readers. If you rely on our cannabis advocacy journalism to stay informed, please consider a monthly Patreon pledge.
