Cannabis and Controlled Substance Regulatory Attorneys
Operating a cannabis, hemp, or controlled substance business under the federal Controlled Substances Act, the federal hemp definition, Section 280E, and Florida’s medical marijuana statute.
A cannabis business operates under two legal systems that do not agree. Under federal law, marijuana in an FDA-approved drug product or covered by a state medical marijuana license has been in schedule III since April 28, 2026 under a Justice Department rule that is being challenged in court, all other marijuana remains in schedule I, the Controlled Substances Act prohibits manufacturing or distributing either without federal authorization such as a DEA registration, and Section 280E of the Internal Revenue Code denies deductions only to a business trafficking in a schedule I or II substance. Under Florida law, a licensed medical marijuana treatment center may dispense marijuana to qualified patients under section 381.986. Hemp, currently defined by its delta-9 THC concentration, sits outside the federal definition of marijuana, but Congress has amended the definition to measure total THC and to exclude many hemp-derived cannabinoid products, starting November 12, 2026 for products with cannabinoids the plant cannot naturally produce and December 11, 2026 for all other products under current law.
Industria Business Lawyers advises operators, investors, landlords, and service providers on structuring and compliance in this space. Every provision cited on this page was read from the United States Code, the Code of Federal Regulations, or the 2026 Florida Statutes. A consultation is free.
The Statutes That Define the Landscape
Federal prohibition, the hemp carve-out, the tax rule, and Florida’s medical program, quoted from the text in force.
Federal Scheduling
21 U.S.C. 812 establishes the schedules of controlled substances. Schedule I is defined for substances with a high potential for abuse, no currently accepted medical use in treatment in the United States, and a lack of accepted safety for use under medical supervision, and the statute lists marihuana and tetrahydrocannabinols in schedule I, but the schedules can be changed by rule, and since April 28, 2026, 21 CFR 1308.13(g) has listed marijuana in an FDA-approved product or subject to a state medical marijuana license in schedule III.
Federal Prohibition
21 U.S.C. 841(a) makes it unlawful, except as authorized by the subchapter, for any person knowingly or intentionally to manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or dispense, a controlled substance. State authorization does not change the federal statute.
The Hemp Definition
7 U.S.C. 1639o(1) defines hemp as the plant Cannabis sativa L. and any part of that plant, including the seeds and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis. A product that meets the definition is hemp, not marijuana, for federal purposes, but Congress has replaced the definition with a total-THC limit that includes THCA and excludes many hemp-derived cannabinoid products, applying from November 12, 2026 to products with cannabinoids the plant cannot naturally produce and from December 11, 2026 to all other products under current law.
Section 280E
26 U.S.C. 280E provides that no deduction or credit shall be allowed for any amount paid or incurred in carrying on any trade or business if the trade or business consists of trafficking in controlled substances within the meaning of schedule I and II of the Controlled Substances Act which is prohibited by federal law or the law of any state in which the trade or business is conducted. It still applies to a business trafficking in marijuana that remains in schedule I, and the Justice Department has stated that state medical marijuana licensees are no longer subject to it after the April 28, 2026 rescheduling rule.
Florida Medical Use
Section 381.986(1)(g), Florida Statutes, defines marijuana for the medical program as all parts of the genus Cannabis and every derivative and preparation, including low-THC cannabis, which are dispensed from a medical marijuana treatment center for medical use by a qualified patient. Section 381.986(1)(k) defines medical use as the acquisition, possession, use, delivery, transfer, or administration authorized by a physician certification, and excludes marijuana not acquired from a treatment center and use in the listed locations.
Qualified Patients and Physicians
Section 381.986(2) lists the qualifying medical conditions, including cancer, epilepsy, glaucoma, HIV, AIDS, posttraumatic stress disorder, amyotrophic lateral sclerosis, Crohn’s disease, Parkinson’s disease, multiple sclerosis, comparable conditions, a terminal condition, and chronic nonmalignant pain. Section 381.986(3)(b) provides that a qualified physician may not be employed by, or have any direct or indirect economic interest in, a medical marijuana treatment center or marijuana testing laboratory.
Structuring Around the Conflict
Every decision in this industry is made with both statutes in view.
Marijuana or hemp. The first question for any cannabinoid product is whether it meets the 7 U.S.C. 1639o(1) definition. Until the amended federal hemp definition applies (from November 12, 2026 for products containing cannabinoids the plant cannot naturally produce, and from December 11, 2026 for other products under current law), a product within the 0.3 percent delta-9 THC limit is hemp and is outside 21 U.S.C. 841(a); a product above it is marijuana and inside it, in schedule I unless it is in an FDA-approved product or covered by a state medical marijuana license, which places it in schedule III. Testing, documentation, and labeling are built around that line.
Federal exposure. A state-licensed marijuana business violates 21 U.S.C. 841(a) unless federal law authorizes its activity, for example through a DEA registration under the expedited process for state medical marijuana licensees in 21 CFR 1301.13(k), which also lets a licensee that applied within 60 days after the April 28, 2026 rule operate under its state medical license while the application is pending; these registrations do not cover adult-use (non-medical) activity. That fact drives banking, contract enforceability, real estate, and investor disclosure decisions, and it is disclosed to every counterparty and investor rather than assumed away.
Tax. 26 U.S.C. 280E denies deductions to a business trafficking in a schedule I or II substance. Entity structure and accounting are designed with that section in view, in coordination with the firm’s tax practice.
Florida licensing. The medical program under section 381.986 operates through licensed medical marijuana treatment centers, qualified physicians, and registered patients. A business that touches the product must fit one of the roles the statute recognizes, and section 381.986(3)(b) bars a qualified physician from being employed by, or holding an economic interest in, a treatment center or testing laboratory.
Ancillary businesses. Landlords, software vendors, lenders, and consultants do not handle the product but are still evaluated under the federal statutes and the state rules that govern their relationship with a licensee.
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They consistently deliver thorough and timely work. We wholeheartedly recommend IBL.”
Felipe Pinto from Revolve Labs
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Julien Genestoux from Unlock, Inc
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Zachary Panos from Fourcaster LLC
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The attorneys were incredibly responsive, guiding me through every step of the process with clarity and professionalism.
They took the time to address all my questions and concerns, ensuring that I felt confident in each decision we made. Their attention to detail and thoroughness were evident in the documents they prepared, which gave me peace of mind. What stood out most was their commitment to my vision. They not only provided legal advice but also offered valuable insights into the industry, helping me navigate potential challenges and seize opportunities.
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Jeff from Solar Carbon Credit Fund
Client testimonials describe individual experiences. You may not obtain the same or similar results.
How We Handle a Cannabis Regulatory Matter
Each product tested against the hemp definition in 7 U.S.C. 1639o(1) and the Florida program definitions in section 381.986(1).
Whether the client is a treatment center, a qualified physician, a patient-facing service, or an ancillary business under section 381.986.
The 21 U.S.C. 841(a) exposure documented and disclosed in contracts, offering documents, and investor materials.
Structure designed with 26 U.S.C. 280E in view, coordinated with the firm’s tax practice.
Florida applications, renewals, and operating procedures aligned with section 381.986 and the department’s rules.
Leases, supply, services, and financing agreements drafted for enforceability given the business’s status under federal law, including whether it holds a DEA registration.
Monitoring of federal and Florida changes, with the analysis refreshed as the law moves.
FAQ
01 • Operators and Investors Is marijuana legal in Florida?
Section 381.986, Florida Statutes, authorizes medical use by qualified patients of marijuana dispensed from licensed medical marijuana treatment centers. Under federal law, marijuana subject to a state medical marijuana license or in an FDA-approved product has been in schedule III since April 28, 2026 under 21 CFR 1308.13(g), a rule now being challenged in court, while other marijuana remains in schedule I, and 21 U.S.C. 841(a) prohibits manufacturing or distributing a controlled substance except as federal law authorizes, for example through DEA registration.
02 • Operators and Investors What makes a product hemp instead of marijuana?
7 U.S.C. 1639o(1) defines hemp as Cannabis sativa L. and its derivatives with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis; a 2025 amendment replaces this with a total THC test, including THCA, and excludes many hemp-derived cannabinoid products, starting November 12, 2026 for products with cannabinoids the plant cannot naturally produce and December 11, 2026 for all other products under current law.
03 • Operators and Investors Why can a cannabis business not deduct its expenses?
26 U.S.C. 280E denies any deduction or credit for amounts paid or incurred in a trade or business that consists of trafficking in schedule I or II controlled substances prohibited by federal law or the law of any state where the business operates, and the Justice Department has stated that state medical marijuana licensees, whose marijuana moved to schedule III on April 28, 2026, are no longer subject to it.
04 • Operators and Investors Can a physician own part of a dispensary in Florida?
Section 381.986(3)(b) provides that a qualified physician may not be employed by, or have any direct or indirect economic interest in, a medical marijuana treatment center or marijuana testing laboratory.
05 • Operators and Investors Who can buy medical marijuana in Florida?
A qualified patient, defined in section 381.986(1)(m) as a Florida resident added to the medical marijuana use registry by a qualified physician and holding a qualified patient identification card, for a qualifying condition listed in section 381.986(2), or the patient’s registered caregiver, and under section 381.986(6)(f) only the caregiver may purchase for a patient younger than 18.
Operators, investors, landlords, and service providers. Call (202) 860-1210 or describe the business through the form. Free consultation. Every matter is evaluated against the statute text in force.
This page provides general information about cannabis and controlled substance regulation under federal and Florida law and does not constitute legal advice. Reading it does not create an attorney-client relationship with Industria Business Lawyers. Whether a claim, defense, or obligation exists depends on the facts and the law in force. Provisions cited were read on October 2, 2026 from the United States Code, the Code of Federal Regulations, and the 2026 Florida Statutes at flsenate.gov.