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Medical Cannabis Is Schedule III: What DEA-Registered Dispensaries Do With Expired Product

Medical marijuana is now a Schedule III controlled substance. What DEA registration means for dispensaries and timely applicants, which records apply, and how expired, damaged, recalled and returned product gets destroyed.

In this guide

  1. What changed in 2026
  2. Who this applies to
  3. The records you now keep
  4. What to do with expired and damaged product
  5. Your destruction partner is a trading partner
  6. How state rules fit in
  7. A one-page checklist

What changed in 2026

DEA’s final rule published April 28, 2026 moved marijuana, marijuana extract and naturally-derived delta-9-THC handled under a state medical marijuana license into Schedule III. Adult-use cannabis was not rescheduled and stays in Schedule I.

Rescheduling brought registration with it. Medical operators had to apply to DEA, and on October 30, 2026 the Department of Justice announced DEA had registered more than 900 dispensaries in Alabama, Florida, Mississippi, South Dakota, Texas, Virginia and West Virginia. DEA’s public list shows about 6,000 more timely applicants: roughly 3,300 dispensaries, 2,100 manufacturers and 700 distributors.

Who this applies to

  • DEA-registered dispensaries: registered as of October 30, plus each new batch DEA approves.
  • Timely applicants: operators that applied with fee between April 28 and June 26, 2026. They may keep operating under their state license while DEA reviews them.
  • Manufacturers and distributors: still under review, with facility inspections and quota decisions ahead.

If you’re in any of these groups, the medical product on your shelves is a controlled substance in DEA’s eyes.

The records you now keep

Disposal is where new registrants get caught out. Product that leaves your inventory without a record looks like a loss, and a significant loss has to be reported on DEA Form 106.

What to do with expired and damaged product

Every dispensary builds up product it can’t sell: expired items, failed-testing or quarantined batches, recalls, customer returns, damaged packaging, discontinued SKUs. As controlled-substance inventory, it should leave your building the way a pharmacy’s expired controls do:

  1. Transfer it to a DEA-registered reverse distributor. For Schedule III, the transfer is documented with an invoice or transfer record listing each product and quantity. No Form 222 is needed; that form is for Schedules I and II.
  2. The reverse distributor destroys it to DEA’s non-retrievable standard, by incineration, and completes DEA Form 41.
  3. You receive a Certificate of Destruction and keep it with the transfer record in your Part 1304 files.

Your destruction partner is a trading partner

DEA’s guidance says registrants and timely applicants may handle Schedule III medical marijuana only with other timely applicants and DEA registrants, and must keep records of the due diligence behind each relationship. Timely applicants are expected to have compliant supply chains in place by November 29, 2026.

That includes whoever takes your product for destruction. For a DEA registrant, DEA lists a copy of its certificate of registration as part of adequate due diligence. See the full November 29 trading-partner checklist.

A one-page checklist

  • Take an initial inventory of medical product if you haven’t.
  • Set up Part 1304 records for receipts, sales and disposals.
  • Pick a DEA-registered reverse distributor and put its DEA certificate in your trading-partner file before November 29.
  • File every Certificate of Destruction with its transfer record, and close the item out in your state system.

Frequently asked questions

Is medical marijuana Schedule III?

Yes. DEA's final rule published April 28, 2026 placed marijuana, marijuana extract and naturally-derived delta-9-THC handled under a state medical marijuana license in Schedule III. Adult-use cannabis stays in Schedule I.

Which dispensaries are DEA-registered?

DEA announced on October 30, 2026 that it had registered more than 900 medical dispensaries in Alabama, Florida, Mississippi, South Dakota, Texas, Virginia and West Virginia. Registration continues in phases; about 6,000 other medical cannabis businesses are timely applicants.

What is a timely applicant?

A business holding a state medical marijuana license that submitted a complete DEA application and fee between April 28 and June 26, 2026. Timely applicants may keep dispensing, manufacturing or distributing under their state license while DEA reviews the application.

What records does a DEA-registered dispensary keep?

DEA's guidance says registrants handling Schedule III medical marijuana must keep all records required for Schedule III controlled substances under 21 CFR Part 1304: inventories and records of every receipt, sale and disposal.

Do state rules still apply?

Yes. Your state program's tracking and reporting rules still apply alongside DEA's. Use the transfer record and Certificate of Destruction to close out the product in your state system.

Keep reading

Educational reference only, not legal advice, a formal waste determination, or training certification. Verify current federal and state requirements and the product’s safety data sheet. Waste acceptance remains subject to review by a licensed disposal partner.