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 a controlled substance, or to possess a controlled substance with the intent to do the same. 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, and Schedule V substances being the least dangerous. The term 'counterfeit substance' refers to a controlled substance that is misrepresented as being produced by a legitimate manufacturer, distributor, or dispenser. In Texas, the Texas Controlled Substances Act outlines the state's specific regulations and penalties regarding controlled substances, which are consistent with federal classifications and regulations. Penalties for the manufacture, distribution, or dispensation of controlled substances, or possession with intent to do the same, can be severe and vary depending on the schedule of the substance, the amount involved, and other factors such as the presence of minors or the use of weapons.