The Drug Enforcement Administration (DEA) says a question on its new medical marijuana registration form asking applicants if they previously handled controlled substances without federal authorization is not intended to block state-licensed businesses from receiving registration.

The issue centers on a question included in the DEA’s Medical Marijuana Dispensary Information Submission form, which asks whether anyone involved in ownership or operation of the business has previously manufactured, distributed or dispensed a controlled substance without DEA authorization.

For many state-licensed marijuana businesses, the answer would appear to be yes. Until the recent federal shift, state-licensed medical marijuana operators have conducted business under state law while marijuana remained illegal under the federal Controlled Substances Act.

The question has raised concerns among operators and attorneys, with some viewing it as a request for businesses to admit they previously engaged in conduct that remains federally illegal. Despite this, hundreds of companies have already applied with the DEA, including some of the nation’s largest cannabis businesses, such as Trulieve.

In response to questions from Cannabis Business Times, the DEA said the question is part of a standard background review and should not be viewed as an automatic disqualifier.

“This question should be understood as part of a standard information-gathering process being applied in a changing regulatory landscape,” the agency said. “It is not intended to serve as a categorical barrier, but rather to support a complete and fair evaluation of each application.”

The agency added that the broader registration process is designed to evaluate applicants based on their current ability to operate within the federal framework.

The question appears in Section 4 of the form, under “Liability Questions.” Businesses that answer yes are asked to provide the names of each person involved and a brief explanation.

DEA told Cannabis Business Times the question is not limited to a specific timeframe and is intended to gather background information relevant to regulatory compliance. The agency also acknowledged that many applicants operated under state medical marijuana laws at a time when federal law did not allow marijuana-related activity through DEA registration.

“The purpose of the question is not to exclude those applicants — it is to ensure transparency and provide context so DEA can evaluate each application based on the totality of the information provided,” DEA said.

The clarification comes after Acting Attorney General Todd Blanche announced April 23 that he had signed an order placing FDA-approved marijuana products and state-licensed medical marijuana in Schedule III under the Controlled Substances Act. The change created a new federal registration process for state-licensed medical marijuana dispensaries, with DEA opening its dispensary registration portal April 29.

Schedule III compliance is widely viewed as important because it could allow marijuana businesses to avoid the federal 280E tax penalty, though some industry observers have debated whether DEA registration is required for that relief.

DEA said answering yes to the liability question does not result in an automatic denial. Instead, applications will be reviewed case by case, with the process including pre-registration inspections and direct engagement with applicants.

The agency said those steps are intended to help officials understand an applicant’s operations, clarify responses and identify any steps needed to meet federal requirements. Where issues arise, applicants will have access to established administrative processes, including notice and an opportunity to respond.