The cannabis industry was jolted when the Trump administration announced it would immediately reclassify state-licensed medical marijuana. The shift from the most restrictive Schedule I status to Schedule III could allow certain cannabis operators to access benefits, including federal tax relief.
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To be eligible for these new benefits, companies must register with the Drug Enforcement Administration (DEA), which opened its application portal this week. Under federal law, any business manufacturing or dispensing controlled substances (like a pharmacy) has to be approved by the DEA.
Much of the requested information appears standard: personal details, state license numbers, and security plans. But some questions in the registration instructions raise more questions than answers. Here are some key sticking points.
Application raises numerous questions about criminal history
GreenState noted the number of questions about past criminal activity. The application repeatedly asks variations of:
“Has the applicant ever been convicted of a crime in connection with controlled substance(s) under state or federal law?”
The form also asks about the criminal histories of executives, partners, and anyone who may have access to “controlled substances.” For a dispensary, that could include a wide swath of employees, from fulfillment staff to budtenders to delivery drivers—positions also notorious for high turnover rates.
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Given how common past cannabis convictions are for now-legal conduct, some operators may wonder whether answering “yes” could disqualify or delay approval.
Attorney Christine Senne explained the questions are boilerplate and are very similar to those used for pharmacy registration for years. However, pharmacies typically have far fewer employees handling medications; dispensaries often have many more.
Prior “unregistered activity” could be sticking point
The DEA also asks licensed cannabis operators to disclose prior activity that may not have been federally authorized. One question states:
“Has anyone who will be involved in the ownership or operation of the firm previously manufactured, distributed, and/or dispensed any controlled substance without a DEA registration authorizing such activity?”
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In practice, applicants have already engaged in “activities” that now require DEA registration under federal law. DEA registration for state-licensed medical cannabis companies is new, and some operators may feel hesitant about disclosing conduct that could be considered a federal violation. However, the question appears to mirror standard pharmacy application language.
Clarity on the horizon
GreenState reached out to the DEA to clarify these issues. Representatives from the DEA Registration Contact Center did not provide additional details.
“The information available on the DEA website is the only information available to us,” a representative said via email.
The DEA’s press office has not yet responded to a request for comment.
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Multi-state cannabis operator Trulieve already announced it had filed its applications. However, Senne advises interested operators to take a wait-and-see approach. The Trump administration said applications submitted within the first 60 days will receive priority processing.
“There’s no prize awarded for getting your application in on day one,” Senne told GreenState. “While it’s understandable that people want to apply quickly, they should focus on submitting a complete and accurate application within the 60-day window.”
Senne added that rushing could create problems for early applicants.
“Take a minute, see what information surfaces, and get your ducks in a row,” she concluded.
