BUREAU OF CANNABIS CONTROL (BCC)

The Bureau of Cannabis Control (Bureau of California) is the lead agency in regulating commercial cannabis licenses for medical and adult-use cannabis in California. The Bureau is responsible for licensing retailers, distributors, testing laboratories, microbusinesses, and temporary cannabis events.

CHILD RESISTANT (CR)

Designed and created to be very difficult for kids under the age of five years old to open and not difficult for 'normal' adults to use properly.

Cost of Goods Sold (COGS)

The direct costs of producing the goods sold by a company. In cannabis, examples include biomass (cannabis), manufacturing costs, labor required to package the goods, transportation costs, etc. Indirect costs, such as marketing, office expenses, and professional services would be typically excluded from COGS.

CULTIVATION

Location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a locations where any of these combination of activities occur.

DELIVERY

The commercial transfer of cannabis or cannabis products to a customer. "Delivery" also includes the use of a retailer or distributor with a technology platform.  

DISTRIBUTION (DISTRO)

The procurement, sale, and transport of cannabis and cannabis products between compliant licenses.  

Intellectual property (IP)

is non-physical property that is the product of original thought. Through intellectual property rights, a content creator or company with valuable trade secrets can protect and control the physical implementation of these intangible assets. Some examples of IP include copyrights, patents, trademarks, and trade secrets. In cannabis, IP may include brand names, artwork, recipes, formulas, manufacturing processes, content, or data insights.

LETTER OF INTENT (LOI)

This is also known as a "memorandum of understanding" (MOU). It's used to facilitate the beginning of a deal between two or more parties to identify key contractual terms that with form the foundation of a final contract. Keep in mind an LOI can be binding or non-binding.

MANUFACTURE

TO COMPOUND, BLEND, EXTRACT, INFUSE, OR OTHERWISE MAKE OR PREPARE A CANNABIS PRODUCT.

METRC

It’s important that new operators understand Metrc, the state tracking system that California mandated all operators within the licensed cannabis supply chain adopt in January of 2020. As cannabis products move through the licensed supply chain, each licensee is responsible for a different level of reporting to the state using Metrc regarding the status of the cannabis product. All cannabis plants are required to be tagged with a unique number and tracked as it moves to other license holders, starting at the farm:

  • Cultivators tag plants with a Metrc tag as soon as it’s a foot tall.
  • Manufacturers then transform the plant into various products (edibles, tinctures, etc), or simply sort and package the flower.
  • Lab testing checks to ensure it is not contaminated by pesticides, mold, or other unwanted pollutants.
  • Distribution then transports the products to retailers (delivery operators, microbusinesses and retail storefront dispensaries).
  • Retailers then scan that number before it’s sold to the customer.
  • Lab testing checks to ensure it is not contaminated by pesticides, mold, or other unwanted pollutants.
  • Distribution then transports the products to retailers (delivery operators, microbusinesses and retail storefront dispensaries).
  • Retailers then scan that number before it’s sold to the customer.

MULTI-STATE OPERATOR (MSO)

A cannabis company that spans and operated in multiple legalized states.

PROP 215

AKA the Compassionate Use Act. Proposition 215 was a general election ballot approved in 1995 that granted patients and defined caregivers exemptions from otherwise criminal laws, and allowed them to possess or cultivate cannabis for medical treatment, as recommended by a physician. This landmark passage was the first significant victory for medical cannabis in California. After Prop 216, legal cultivations and dispensaries (compassionate care programs) came into existence, marking the start of the “legal” cannabis industry. They were part of the 215 era.  I was 215.

PROP 64

AKA the Adult Use of Marijuana Act. Proposition 64 was a voter initiative proposition passed in November 2016 which effectively made it legal for California residents to use and possess up to 1 oz of cannabis, cultivate up to six plants, and opened the legal and taxable manufacturing and sale of cannabis for recreational use. Simply put, Prop 64 was the legislature that legalized cannabis in the State for recreational purposes.

SOCIAL EQUITY

Social equity programs across the country have been designed to address the devastating impact the war on drugs has had, and continues to have, on low-income communities and communities of color. These programs vary state by state and are typically structured to help individuals most impacted by the war on drugs obtain licenses to operate cannabis businesses and obtain employment within the legal cannabis industry. Unfortunately, due to a lack of infrastructure and resources, these programs do not adequately empower communities that have been harmed to rebuild and be able to benefit from the profits promised by legal cannabis.