TLDR: Past convictions raise separate questions about the business’s DEA registration and a person’s access to controlled substances. Start with the rescheduling order, then examine the applicable conviction rule, the person’s role, and whether a waiver is needed. A state licensing decision is part of that review.
For medical cannabis operators, I would begin with the April 2026 rescheduling order. Its registration language matters when evaluating a past conviction. The next step is identifying which additional requirement the DEA is applying.
Reporting about a Mississippi dispensary whose application encountered concerns over employees’ felony records brought this issue into focus. The report did not identify the precise offenses or establish a final agency ruling. That limits what operators can conclude from that particular situation. Marijuana Moment, Sept. 11, 2026
Start with the rescheduling order’s language
The April 28, 2026 final order added 21 CFR § 1301.13(k). Here are the three key provisions:
- The DEA “shall register an applicant under this subsection unless” it determines registration is inconsistent with the public interest, considering 21 U.S.C. § 823(e) through (g), as applicable, and Single Convention requirements, including any applicable quota requirement.
- In general, registration of applicants complying with state systems with robust diversion controls, records, reporting, safety, and inspections “will not be inconsistent with the public interest”, provided treaty requirements are met.
- Subsection (k)(2) makes the state license “conclusive evidence” of state authorization for the activity sought.
April 28, 2026 final order, 91 FR 22714, 22721–22 · Order text, p. 22722 · 21 CFR § 1301.13(k), (k)(2)
My reading: state compliance deserves meaningful weight, while individual federal eligibility issues still require review. That is why the order and the additional authorities below need to be read together.
Where past convictions fit into the review
For dispensary applicants, 21 U.S.C. § 823(g)(1)(C) makes the applicant’s conviction record under laws relating to manufacturing, distributing, or dispensing controlled substances relevant. Subparagraphs (D) and (E) also address compliance with controlled-substance laws and conduct that may threaten public health and safety. The conviction factor is not limited to felonies. 21 U.S.C. § 823(g)(1)(C)–(E)
Separately, § 824(a)(2) makes a registrant’s felony conviction relating to a controlled substance or list I chemical a possible ground for suspending or revoking a registration. Neither provision states that every past conviction automatically bars every ownership interest. 21 U.S.C. § 824(a)(2)
For an owner, I would identify the applicant, the actual offense, and the person’s current management responsibilities before drawing a conclusion. A passive investor and an owner who directs inventory or dispensing present different facts to examine.
The employee-access rule needs its own review
Under 21 CFR § 1301.76(a), a practitioner registrant may not employ an agent or employee with access to controlled substances who has a controlled-substance-related felony conviction. The provision also covers a denied DEA application, revoked registration, or registration surrendered for cause. An unrelated felony or a misdemeanor does not, by itself, trigger this conviction-based restriction. 21 CFR § 1301.76(a)
The provision contains no automatic expiration based on the age of the conviction. Broader registration concerns may also remain even when this particular restriction does not apply. 21 CFR § 1301.76(a) · 21 U.S.C. § 823(g)(1)
The order’s subsection (k)(10) accepts state-law compliance for “physical-security requirements”. I would not treat that language alone as an express employment waiver or assume it resolves § 1301.76(a). April 2026 order, p. 22722 · 21 CFR § 1301.13(k)(10) · 21 CFR § 1301.76(a)
The DEA’s Pharmacist’s Manual explains that access includes influence over the handling of controlled substances. Although written for pharmacies, that guidance is useful when assessing the employee-access rule. I would examine purchasing authority, inventory instructions, and supervision of dispensing, as well as physical handling. Changing a job title does not establish what the person can actually do. DEA Pharmacist’s Manual (2022), Section IX, pp. 60–61
An employment waiver may be available
Under 21 CFR § 1307.03, a person may request an exception to DEA regulations in writing. Approval is discretionary. The DEA’s employment-waiver page directs employers to its Pharmacist’s Manual. 21 CFR § 1307.03 · DEA Employment Waivers Q&A
The manual describes review of the past violations, proposed access, safeguards against diversion, and the employer’s controlled-substance practices. It calls for approval before the affected person receives access. DEA Pharmacist’s Manual (2022), Section IX, pp. 60–61
I would support a request with court records, a clear description of duties, and a workable supervision and access-control plan. Explain how the business will prevent diversion. An employment waiver addresses a particular restriction; the business’s registration application still requires its own review. 21 CFR § 1307.03 · 21 U.S.C. § 823(g)(1)
California shows why the state analysis can differ
Under 4 CCR § 15017(d), certain prior controlled-substance convictions are not considered substantially related to cannabis licensure and cannot be the sole basis for denial once the entire sentence, including probation, incarceration, or supervised release, is completed. The provision covers specified possession, sale, manufacturing, transportation, and cultivation offenses, with exceptions for certain offenses involving minors and specified drug-trafficking enhancements. 4 CCR § 15017(b)(4)–(5), (d)
That protection has limits. The same subsection makes a controlled-substance felony conviction after licensure grounds for revocation or denial of renewal. 4 CCR § 15017(d)
California’s treatment of a completed sentence does not itself provide a federal employment waiver. For an old cannabis-sales conviction, I would examine the state licensing protection and the federal role-and-access questions separately. Operators in other states need to check their own state’s rules. 21 CFR § 1301.76(a) · 21 CFR § 1307.03
Review the record before changing the business
I would start with four practical questions:
- What was the offense? Obtain the judgment, sentencing records, proof of sentence completion, and any later order addressing the conviction.
- What does the person actually do? Identify ownership, management authority, controlled-substance access, and supervision.
- What is the DEA asking? Compare the record with the application and any follow-up request. Do not assume that a label such as “expunged” answers the federal question.
- What response fits the concern? Evaluate an explanation, a waiver request, or an actual change in duties before changing employment or ownership arrangements. Include the applicable state-law consequences.
Accuracy is a separate issue. Section 1301.13(i) requires the information called for by the application, with inapplicable items identified. Section 824(a)(1) makes material falsification of an application grounds for registration action. 21 CFR § 1301.13(i) · 21 U.S.C. § 824(a)(1)
Frequently asked questions
Does the rescheduling order automatically disqualify everyone with a felony?
No. Its registration provision uses a public-interest framework. Conviction and employee-access questions require the additional review described above. 21 CFR § 1301.13(k) · 21 CFR § 1301.76(a)
Can a misdemeanor still matter?
Yes. The applicant-conviction factor in § 823(g)(1)(C) is not limited to felonies, even though the conviction restriction in § 1301.76(a) is. 21 U.S.C. § 823(g)(1)(C) · 21 CFR § 1301.76(a)
Does every felony prevent someone from working at a DEA-registered dispensary?
No. Section 1301.76(a)’s conviction restriction concerns controlled-substance felonies and access to controlled substances. Other registration concerns require separate evaluation. 21 CFR § 1301.76(a)
Does filing an employment-waiver request authorize access?
No. The DEA’s published guidance calls for approval before the affected employee receives access. DEA Pharmacist’s Manual (2022), Section IX, p. 60
Can California allow a conviction that still raises federal concerns?
Yes. California’s protection for certain completed-sentence convictions addresses state licensure. Federal registration and employee-access requirements need their own analysis. 4 CCR § 15017(d) · 21 U.S.C. § 823(g)(1) · 21 CFR § 1301.76(a)
Keep reading
Attorney advertising. General information only, not legal advice. This article focuses on selected issues affecting medical cannabis dispensary applicants. Other registration categories and state requirements require separate analysis. Reading this article does not create an attorney-client relationship.
