Under federal law (applicable in all states) it is illegal for a person to knowingly or intentionally manufacture, distribute, or dispense a controlled substance—or to possess a controlled substance with the intent to manufacture, distribute, or dispense it. It is also illegal to create, distribute, or dispense a counterfeit substance, or to possess a counterfeit substance with the intent to distribute or dispense it.

The term controlled substance means a drug or other substance—or an immediate precursor to the drug or other substance—that is included in schedule I, II, III, IV, or V of the relevant portion of the United States Code (statute). See 21 U.S.C. §841.

The term counterfeit substance means a controlled substance (or its container or labeling) that—without authorization—bears the trademark, trade name, or other identifying mark, imprint, or number of a manufacturer, distributor, or dispenser other than the person or persons who in fact manufactured, distributed, or dispensed the substance. In other words, a counterfeit substance is falsely represented to be manufactured or distributed by an another (presumably authorized) manufacturer, distributor, or dispenser.

It is also illegal for a person to knowingly or intentionally manufacture, distribute, or dispense a controlled substance—or to possess a controlled substance with the intent to manufacture, distribute, or dispense it—under state law. As under federal law, state laws usually classify substances in groups or schedules that determine which substances are included in the definition of controlled substances, and the potential penalties or punishments for distributing them.

Criminal charges and penalties for these offenses vary from state to state and are usually located in a state’s statutes.

Under both federal and Texas state law, it is illegal to knowingly or intentionally manufacture, distribute, or dispense controlled substances, or to possess them with the intent to do so. Controlled substances are classified into schedules I through V, with Schedule I substances being considered the most dangerous and having a high potential for abuse with no accepted medical use. The federal statute governing these offenses is 21 U.S.C. §841. In Texas, similar prohibitions are outlined in the Texas Controlled Substances Act, which also categorizes drugs into penalty groups that correspond to the federal scheduling system. The manufacture, distribution, or possession with intent to distribute counterfeit substances is also illegal. Counterfeit substances are those that are falsely represented as being produced or distributed by an authorized entity. Penalties for these offenses in Texas can include imprisonment, fines, and other consequences, and they vary based on the quantity and type of substance involved, as well as other factors such as the presence of minors or the proximity to schools.