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Shorthand for the Agricultural Act of 2014, federal legislation concerning domestic agricultural programs. It contained provisions authorizing the cultivation of industrial hemp for research purposes pursuant to state agricultural department public programs or by certain public universities.
Shorthand for the Agricultural Improvement Act of 2018, federal legislation concerning domestic agricultural programs. It removed hemp from the definition of “marihuana” under the federal Controlled Substances Act and gave the United States Department of Agriculture authority to establish a domestic hemp production program in accordance with state departments of agriculture and tribal governing bodies.
A
Items used in conjunction with cannabis consumption, such as pipes, bongs, vaporizers, grinders, and rolling papers.
Federal law that dictates the procedures that federal government agencies must follow, including for promulgating regulations, undertaking enforcement actions, and issuing penalties. Most, if not all states and even many local jurisdictions have administrative procedure legislation that mirrors the Administrative Procedure Act.
This term refers to cannabis products legally available for purchase and consumption by individuals who are at least 21 years old. Unlike medical cannabis, adult-use cannabis is accessed primarily for recreational, rather than therapeutic, purposes.
Term used by the United States Food and Drug Administration and state departments of health for certain foods, dietary supplements, or products they deem unsafe. Typical grounds for deeming a product adulterated are that it contains poisonous or deleterious substances that can harm a consumer.
The minimum age a person must be to possess or use cannabis goods as set by state or local laws. All recreational use jurisdictions have minimum 21-year-old age limitations for consumers. Medicinal use jurisdictions vary.
Criminal liability imposed on a person who assists a third party in committing a crime if that person intends to assist the facilitation of a crime.
Federal laws designed to prohibit concealing as legitimate illegally obtained income. Money derived from state-licensed commercial cannabis activity is still considered unlawful for purposes of federal AML laws.
Legal process for law enforcement to seize and take possession of any asset – including real property, equipment, and intellectual property – it alleges is involves violations of criminal, civil, or administrative laws or regulations. Asset forfeiture proceedings are instituted in rem against the property itself and the person from whom it was seized must intervene and file claims in order to reclaim it.
B
Federal legislation from 1970, also known as the Currency and Foreign Transactions Reporting Act, that requires financial institutions to assist federal agencies with preventing money laundering, including by filing suspicious activity reports with the United States Department of Treasury’s Financial Crimes Enforcement Network.
Organic material derived from plants and animals, used as a source of energy. With respect to cannabis, biomass refers to plant material.
A legislative amendment aimed at protecting state-legal cannabis programs from federal interference.
In the context of manufactured cannabinoid products, products that contain cannabis plant extracts other than Δ9-tetrahydrocannabinol (THC).
Cannabis dispensary employees that serve and make recommendations to customers.
C
A condition associated with chronic cannabis use, characterized by cyclic episodes of nausea and vomiting.
Receptors in the body's endocannabinoid system that interact with cannabinoids, primarily CB1 and CB2 receptors.
Chemical compounds within the cannabis genus that include CBD and THC. There are nearly 120 known cannabinoids.
Genus of plants within the Cannabaceae family, which includes both marijuana and hemp.
Rules that limit how cannabis businesses can market their products, often to prevent targeting minors.
Financial services for cannabis businesses, including the challenges and regulations around banking due to federal illegality in some countries.
The requirements for financial institutions to provide services to cannabis businesses while adhering to federal and state regulations.
Training programs and courses designed to educate individuals and businesses on the complexities of the cannabis industry.
Programs designed to support the development and growth of early-stage cannabis businesses through mentorship, funding, and resources.
Insurance policies specifically designed to cover the risks associated with operating a cannabis business, such as product liability and crop insurance.
The process and requirements for obtaining licenses to operate various types of cannabis businesses, such as cultivation, processing, retail, and distribution.
The process of determining the economic value of a cannabis business, often for the purposes of sale, investment, or financing.
The adherence to laws and regulations governing the cannabis industry, including tracking, reporting, and operational standards.
Evaluations of a cannabis business's adherence to regulations and standards to ensure compliance with local, state, and federal laws.
Tools and platforms designed to help cannabis businesses stay compliant with regulations by tracking inventory, sales, and operations.
Designated areas where adults can legally consume cannabis in a social setting, often part of licensed cannabis businesses.
Various ways to consume cannabis, including smoking, vaping, edibles, tinctures, topicals, and transdermal patches.
A permit required to legally grow cannabis plants, specifying the scale and type of cultivation allowed.
A permit required to legally deliver cannabis products to consumers, subject to local and state regulations.
Businesses that deliver cannabis products directly to consumers, subject to state and local regulations.
A permit required to legally sell cannabis products to consumers, specifying the conditions under which sales can occur.
Food products infused with cannabis extracts, such as THC or CBD, providing an alternative consumption method to smoking or vaping.
A permit required to legally extract cannabinoids and terpenes from cannabis plants, often involving specific safety and operational requirements.
Techniques used to obtain cannabinoids and terpenes from cannabis plants, such as CO2 extraction, ethanol extraction, and hydrocarbon extraction.
Studies and experiments focused on understanding and manipulating the genetic makeup of cannabis plants to improve strains and cultivation techniques.
Strategies and practices aimed at minimizing the negative health and social impacts of cannabis use.
Organizations that represent and advocate for the interests of cannabis businesses and professionals.
Professional certifications that validate expertise and knowledge in various aspects of the cannabis industry, such as cultivation, extraction, and retail.
Events where professionals in the cannabis industry gather to share knowledge, network, and discuss trends and innovations.
Training and education programs aimed at preparing individuals for employment in the cannabis sector.
Drinks that contain cannabis extracts, offering another method for consumers to ingest cannabis.
Products such as creams, lotions, and balms infused with cannabis extracts, designed for application to the skin for localized relief.
Efforts by individuals and organizations to change cannabis laws to promote legalization, decriminalization, and medical access.
Legal representation and defense strategies for individuals and businesses facing charges or litigation related to cannabis activities.
The steps and requirements involved in obtaining the necessary licenses to operate a cannabis business.
Public or semi-public spaces where individuals can consume cannabis in a social setting, legally permitted in some jurisdictions.
Research and data on the trends, growth, and dynamics of the cannabis industry.
Regulations governing the advertising and marketing of cannabis products to ensure truthful representation and prevent targeting of minors.
Laws governing how cannabis products must be packaged, including requirements for child-resistant containers and labeling.
Efforts to change laws and regulations governing cannabis, often aimed at legalization, decriminalization, or medical use expansion.
Organizations that conduct research and analysis to inform and influence cannabis policy and regulation.
The development and offering of a variety of cannabis products to meet different consumer preferences and needs.
The procedures for removing unsafe or non-compliant cannabis products from the market.
Regulations and guidelines to ensure the safety and quality of cannabis products, including testing for contaminants and potency.
The documentation that cannabis businesses must maintain to comply with regulatory standards, including inventory and transaction records.
The process of changing the classification of cannabis under controlled substances laws, potentially easing restrictions and penalties.
The use of data analytics to monitor and optimize sales performance in the cannabis industry.
Nonprofit organizations that allow members to grow and share cannabis among themselves, common in certain European countries.
Policies and regulations governing the public or semi-public consumption of cannabis, such as in lounges or designated areas.
The oversight and coordination of all activities involved in the production, processing, distribution, and sale of cannabis products.
The various taxes imposed on cannabis businesses, including sales tax, excise tax, and cultivation tax.
Facilities that test cannabis products for potency, contaminants, and compliance with regulatory standards.
Standards for testing cannabis products for potency, contaminants, and compliance, ensuring consumer safety and regulatory adherence.
Travel experiences focused on cannabis culture and consumption, including tours, events, and cannabis-friendly accommodations.
Businesses and services catering to tourists interested in cannabis culture, including tours, events, and cannabis-friendly accommodations.
Generic name for any number of “seed to sale” tracking systems, typically required by state licensing bodies for licensee use.
Medical and therapeutic programs using cannabis or cannabis-derived products to treat various health conditions.
Medical conditions characterized by problematic cannabis use, which may require treatment or intervention.
Local, state, and federal laws that govern where and how cannabis can be consumed.
Proper methods for disposing of cannabis plant material, products, and byproducts to comply with environmental regulations.
The proper disposal and recycling of cannabis plant material and products, ensuring compliance with environmental regulations.
Standards and practices to ensure the health and safety of employees working in the cannabis industry.
Techniques and strategies for maximizing the production output and quality of cannabis crops.
Area within a licensed cannabis cultivation premises, whether indoor, outdoor, or mixed-light, where cannabis plants grow. May include mature plants depending on state.
Cannabichromene, a cannabinoid.
Cannabidiol, one of the most commercially popular cannabinoids.
Cannabigerol, a cannabinoid.
Cannabinol, a cannabinoid.
2007 Tax Court case where the court held that expenses related to a “separate trade or business” shown to be unrelated to cannabis business, were deductible.
Packaging designed to reduce the risk of children accessing the contents of the package. Many jurisdictions require cannabis businesses to use CRP.
A common industry acronym for “cost of goods sold.” Cf. I.R.C. § 280E.
Federal memorandum issued on June 29, 2011 by former Deputy Attorney General James M. Cole with the subject “Guidance Regarding the Ogden Memo in Jurisdictions Seeking to Authorize Marijuana for Medical Use. Succeeded by the second Cole Memo of August 29, 2013 and rescinded by Jeff Sessions via the Sessions Memo of January 4, 2018.
Federal memorandum issued on August 29, 2013 by former Deputy Attorney General James M. Cole with the subject “Guidance Regarding Marijuana Enforcement.” Often simply referred to as the “Cole Memo.” The Cole Memo enumerated and limited the federal government’s enforcement priorities with respect to marijuana under the Controlled Substances Act to prioritize enforcement of eight different types of activities, including preventing distribution to minors, diversion to states where it was not legal, or use of violence. Rescinded by Jeff Sessions via the Sessions Memo of January 4, 2018.
California voter initiative that permitted physicians to recommend marijuana to qualified patients for medical purposes and provided an affirmative defense to prosecution for qualified patients who consumed medically recommended marijuana and their primary caregivers. It was the first law in the United States after the passage of the Controlled Substances Act that created state-legal protections for medical marijuana consumers.
2002 case decided by the federal Ninth Circuit Court of Appeals, which affirmed a lower court’s order enjoining federal policies that would have prohibited physicians from recommending marijuana to patients on First Amendment grounds.
Products derived from cannabis flower using mechanical, chemical, or other means, and include cannabinoids and terpenes but not plant biomass. Common concentrates include oil, wax, shatter, butter, badder, resin, and rosin.
Criminal liability imposed where two or more people conspire to commit an illegal act. Generally, the same charges can be brough against all conspirators, even ones who did not commit the illegal act themselves.
Federal legislation signed by U.S. President Richard Nixon in 1970. The CSA segregates a host of drugs into five schedules. “Marihuana” and “tetrahydrocannabinols” are currently a Schedule I controlled substances. States have each adopted “mini” controlled substances acts, generally mirroring the federal CSA.
Categories of controlled substances under the Controlled Substances Act, ranging from Schedule I to Schedule V. Schedule I is the most restricted and it includes “marihuana” and “tetrahydrocannabinols” but excludes “hemp”.
Federal legislation that regulates the import and export of substances on Controlled Substances Act schedules and is implemented by the U.S. Drug Enforcement Administration in conjunction with other federal agencies.
An international treaty which provides comprehensive measures against trafficking of cannabis and other drugs, money laundering and the diversion of precursor chemicals.
An international treaty which requires signatory countries to harmonize their internal laws for controlling many psychoactive (including cannabis) substances.
A set of procedures adopted to control and manage the operation of a corporation, limited liability company (LLC), or other type of business entity.
Legal entity incorporated pursuant to state law that exists, receive profits and losses, is taxed, owns property, and may be held liable for obligations independent of their owners. Ownership interests are represented by shares of stock. Owners are called shareholders or stockholders. Corporations are managed by directors who delegate the manage of day-to-day affairs to officers.
Products, not including soap, that are intended for application to the human body for the purposes of cleansing, beautifying, promoting attractiveness, or altering appearance. Cosmetics include creams, lotions, ointments, salves, and makeup.
High-quality, small-batch cannabis grown using traditional or sustainable methods, often with a focus on unique genetics, flavor profiles, and terpene content.
A variety of plant that has been produced through selective breeding to provide specific traits.
The planting, growing, and/or harvesting of cannabis or other plants.
Process for aging plant material to reach desired moisture levels or other qualities.
Federal agency housed within the United States Department of Homeland Security that, among other things, enforces immigration laws regarding participants in the domestic cannabis industry.
D
A method of consuming concentrated cannabis extracts by vaporizing them on a hot surface and inhaling the vapor.
Interim regulation of the United States Drug Enforcement Agency that took effect on August 21, 2020 and purported to clarify changes to federal law as a result of the Agriculture Improvement Act of 2018. The rule holds that all synthetic cannabinoids, and any hemp derivatives containing more than .3% Δ9-tetrahydrocannabinol (THC) are deemed marijuana for purposes of the Controlled Substances Act. The rule is currently being challenged in federal court.
A process used for, among other things, determining levels of Δ9-tetrahydrocannabinol (THC) in cannabis by heating the cannabis to convert the THC acid (THCA) into THC. Critics of decarboxylation note that test results contain higher levels of THC and can render legally cultivated hemp unlawful.
A process or status by which a criminal law or penalties imposed for violating a criminal law are reduced, reclassified, removed or disregarded, or by which law enforcement is directed to re-prioritize the enforcement of such laws. It generally does not completely remove the criminal status of a prohibited act.
An analog of the delta 9 compound of disputed legality. Often advertised controversially as “legal weed” and “weed light” when sourced from hemp.
The primary psychoactive component found in the cannabis plant.
Contract between a municipality and a property owner or developer governing the obligations of the parties concerning development of the property.
Orally ingested products that contain dietary ingredients, including vitamins, minerals, amino acids, and herbs or botanicals, as well as other substances that can be used to supplement the diet, which are regulated by the U.S. Food and Drug Administration pursuant to the Food, Drug and Cosmetic Act.
Brick-and-mortal retail facility from which cannabis products are sold to customers.
Process for separating cannabis components in liquid mixtures through heating.
A U.S. federal agency housed within the U.S. Department of Justice and established in 1973 during Nixon administration. The DEA enforces the Controlled Substances Act.
Provision of the Food, Drug and Cosmetic Act that prohibits adding a substance to a food, dietary supplement, or other product if the substance is an active ingredient in a previously approved drug.
Measurement for determining percentage of Δ9-tetrahydrocannabinol (THC) levels by weight after removing moisture from cannabis.
E
Food product or beverage containing cannabis extract.
Technology used for inhaling nicotine products, and includes e-cigarettes and vaping devices. Certain federal and state laws and regulations define ENDS broadly and consequently may include vape products that contain cannabis instead of nicotine.
A network of receptors and neurotransmitters naturally found in the human body that plays a role in regulating various physiological and cognitive processes, including pain, mood, appetite, and sleep. Cannabis interacts with this system through its cannabinoids like THC and CBD.
Legal action or process undertaken by a government agency to ensure or enforce compliance with laws or regulations, and generally is commenced with the issuance of a warning letter, notice of violation, notice to correct, or similar notice.
A psychoactive plant or substance used in a religious or spiritual context to induce altered states of consciousness for self-exploration or connection with the divine. (This term is particularly relevant for psychedelics like psilocybin, which are sometimes used in religious ceremonies.)
The theory that the various compounds in cannabis, including cannabinoids and terpenes, work together synergistically to produce the overall effects of the plant.
Drug approved by the United States Food and Drug Administration in 2018 for the treatment of severe and rare forms of epilepsy, which contains cannabidiol.
Taxes levied on specific goods, such as alcohol, tobacco, or cannabis.
Process of erasing or sealing criminal records, which varies in different states.
Various techniques used to extract cannabinoids and terpenes from cannabis plants, such as CO2 extraction, ethanol extraction, and hydrocarbon extraction.
Concentrated cannabis products created through various concentration processes.
F
Federal legislation passed in 1986 to supplement the Controlled Substances Act by deeming any chemical intended for human consumption that is “substantially similar” to a Schedule I or Schedule II controlled substance as being on the applicable schedule.
Legal doctrine representing courts’ refusal to grant relief or enforce contracts for illegal activity, including for marijuana-related activity or goods.
Contract provisions where parties agree not to raise the illegal nature of marijuana activity as a defense to enforcement of the contract in judicial proceedings, and likely have little or no practical effect.
Crimes that are more serious in nature than misdemeanors, such as crimes of violence or serious drug offenses, that are punishable by more than one year of imprisonment or death.
2014 guidance of the United States Department of Treasury, Financial Crimes Enforcement Network, entitled “BSA Expectations Regarding Marijuana-Related Businesses,” which provides guidance to financial institutions seeking to provide financial services to cannabis businesses. The FinCEN Guidance is based on the 2013 U.S. Department of Justice Memorandum entitled “Guidance Regarding Marijuana Enforcement” authored by Deputy Attorney General James M. Cole.
The smokable portion of a (female) cannabis plant.
A U.S. federal agency within the U.S. Department of Health and Human Services (DHHS) responsible for regulating the safety of foods, drugs, medical devices, cosmetics, and tobacco products, pursuant to the Food, Drug and Cosmetic Act.
U.S. federal legislation passed in 1938 that charges the Food and Drug Administration with regulating the safety of foods, drugs, medical devices, cosmetics, and due to recent amendments, tobacco products.
Type of international investment in which residents of a foreign country invest money in a domestic business. Foreign direct investment in cannabis companies is regulated according to the laws of each jurisdiction, and in some cases is prohibited.
In the context of manufactured cannabinoid products, products that contain cannabis plant extracts, including THC. For products derived from hemp, levels of THC typically do not exceed .3%.
G
Specific features and makeup of different types of cannabis plants.
2005 United States Supreme Court decision holding that the Controlled Substances Act does not exceed Congress’ authority under the Commerce Clause of the United States Constitution and that Congress has the authority to prohibit medical marijuana activities even in states that allowed it.
A determination made by the federal government that an applicant for naturalization has been, for the proceeding five-year period, and will continue to be a person of good moral character. Violation of any controlled substances law (including with respect to marijuana) can be a conditional bar to good moral character.
H
The process of gathering mature cannabis crops.
Claims made in connection with foods or dietary supplements that characterize the relationship of any substance therein to a disease or health-related condition.
A form of cannabis that, according to U.S. federal law, contains less than .3% Δ9-tetrahydrocannabinol (THC) on a dry weight basis. Hemp was removed from the definition of “marihuana” on Schedule I of the Controlled Substances Act in the Agriculture Improvement Act of 2018.
Federal program established by the Agriculture Improvement Act of 2018 pursuant to which the United States Department of Agriculture approves state or tribal hemp production regulatory programs or implements such programs directly in states or tribal jurisdictions that opt out of primary regulatory authority.
Cannabidiol that is extracted from industrial hemp plants, which contain 0.3% or less THC.
A company, the primary business of which is to hold part or all of one or more other companies’ equity interests such as stock or membership interests.
Regulations that allow individuals to cultivate a limited number of cannabis plants for personal use at home.
I
A federal law that prohibits tax deductions or credits on a trade or business relating to the trafficking of substances on Schedule I or Schedule II of the Controlled Substances Act. Judicial decisions have allowed deductions only for the cost of goods sold, or deductions tied to a “separate trade or business.”
(Female) cannabis plant that has not flowered.
Federal law that governs immigration and citizenship in the United States.
Jurisdiction a court has over property as opposed to a person or entity. Civil forfeiture actions are brought in rem against seized property.
Type of hemp grown for the purpose of harvesting stalks and seeds, not for harvesting flowering buds commonly used as source material for cannabinoid derivative products.
Products containing cannabis concentrates, such as edible cannabis products or infused pre-rolls.
A new law or constitutional amendment proposed and voted by the people. States may have “direct initiatives”, which qualify for ballot placement upon attainment of a certain number of signatures, or “indirect initiatives” which undergo legislative review after attainment of a certain number of signatures, but prior to ballot placement. Some states allow for both processes.
Material extracted from cannabis plants in its in-process or intermediate form.
A process for extracting or distilling a single, pure cannabinoid from cannabis plants.
K
2019 case decided by the federal Tenth Circuit Court of Appeals that held that federal employment laws apply to cannabis businesses notwithstanding that they are engaging in federally unlawful conduct.
L
Body of law governing the development of private and public land.
The process by which criminal laws are removed such that the act or thing previously criminalized is no longer criminalized and, generally, becomes regulated by federal, state, and/or local government agencies.
Official permissions granted by government agencies to undertake actions, operate businesses, or possess products that would otherwise be unlawful to do, operate, or possess.
Legal entities incorporated pursuant to state law that exist, receive profits and losses, are taxed, own property, and are held liable for obligations independent of their owners. Ownership interests are represented by membership interests or units. LLC owners are called members, who may delegate management authority to managers and/or officers.
Cannabis business licensing done or required by a city of county, separate and apart from what is required by a state.
M
Shorthand for mergers and acquisitions. Mergers include the combination of multiple existing businesses into one surviving entity. Acquisitions are the purchase of a business or its assets from its original owners.
Process of infusing, extracting, or otherwise making a cannabis product.
A form of cannabis that is listed on Schedule I of the Controlled Substances Act due to the higher presence of Δ9-tetrahydrocannabinol (THC).
Cannabis plants that have begun to flower or completed flowering.
Laws permitting cannabis cultivation, manufacturing, distribution, sales, and use for medicinal purposes.
A small cannabis business operating within specific regulatory limitations, such as production capacity, retail sales volume, or number of employees. Microbusiness licenses can be a good entry point for smaller entrepreneurs in the cannabis industry.
Law enforcement agent or employee who is younger than the legal age required to purchase cannabis products and who attempts to purchase cannabis from licensed businesses in undercover compliance checks or sting operations.
Term used by the United States Food and Drug Administration and state departments of health for certain foods, dietary supplements, or products with label or packaging claims that are false or misleading or do not contain required statements.
Crimes that are less serious in nature that are generally subject to less severe penalties than for felony crimes.
Marijuana Opportunity Reinvestment and Expungement Act of 2020, H.R.3884, bill in the federal House of Representatives that would have removed marijuana from Schedule I of the Controlled Substances Act, expunged certain criminal convictions, and imposed excise taxes on cannabis sales, among other things. The MORE Act passed in the House of Representatives with a vote of 228-164 on December 4, 2020.
Cannabis company that operates in multiple states. Generally, MSOs are structured as holding companies (sometime public) with cannabis-licensed subsidiaries in multiple states.
N
The application of science and engineering at the atomic and molecular level. This emerging technology has potential applications in the cannabis industry, such as for developing targeted cannabinoid delivery systems or enhancing the bioavailability of cannabinoids.
Cannabinoids in the cannabis plant that do not produce an intoxicating effect, such as CBD, CBG, CBN, and CBC. These cannabinoids are gaining research interest for potential therapeutic benefits.
The National Organization for the Reform of Marijuana Laws, a Washington, D.C.-based non-profit group with state-level chapters that advocates for the reform of marijuana laws. Founded in 1970 concurrent with promulgation of the Controlled Substances Act.
Notice from a government agency informing the recipient of alleged violations of laws, regulations, or conditions for a permit or license.
Businesses that cultivate cannabis seeds, clones, and immature plants propagation by third parties.
O
Federal memorandum issued on October 19, 2009 by former Deputy Attorney General David W. Ogden with the subject “Investigations and Prosecutions in States Authorizing the Medical Use of Marijuana.” Followed by the first Cole Memo of August 29, 2013 and rescinded by the Sessions Memo of January 4, 2018.
2015 Ninth Circuit Court of Appeals Case which held that a medical marijuana dispensary owner was not entitled to any business tax deductions, even for caregiving services provided alongside the sale of marijuana, because his business consisted solely of trafficking marijuana and was not a “separate trade or business.”
Categories of persons or entities that have certain levels or types, depending on state and local law, of equity interests in, control of, or relationships with licensed cannabis businesses that typically must be disclosed and/or background checked by state government authorities.
P
Prevent All Cigarette Trafficking Act, a federal law that, among other things, regulates the mailing of cigarettes. It was amended in 2020 with the Preventing Online Sales of E-Cigarettes to Children Act, which modified the definition of “cigarettes” to include Electronic Nicotine Delivery Systems (ENDS), thereby restricting the mailing of ENDS.
Accessories or other devices for use in connection with cannabis.
Forms of intellectual property rights for inventions that are granted by the United States Patent and Trademark Office. Patents confer exclusive rights to make, use, and sell the underlying invention.
Persons who provide medical cannabis to other qualifying medical consumers.
Cannabinoids naturally produced by the cannabis plant. THC, CBD, CBG, CBN, and CBC are some of the most well-known examples.
Smokable cannabis products rolled in paper, plant material, or other substances.
Specific structure or land that is licensed for specific cannabis activities.
Process by which defective or unsafe cannabis products are voluntarily or mandatorily retrieved from consumers or other entities in a supply chain. Voluntary recalls are initiated by a manufacturer or supplier upon discovery of a defect or unsafe condition. Mandatory recalls are required by law or government action.
Blanket term for any ballot measure to be voted on by the people. May be an initiative or a referendum.
Catch-all name for a widely held company whose shares are traded on a public exchange. Plant-touching public U.S. cannabis companies are limited to over-the-counter (OTC) domestic exchanges, or may be listed on one of the Canadian stock exchanges.
Q
Specific medical conditions entitling a person to purchase, possess, and/or consume medicinal cannabis within a certain jurisdiction.
Process of segregating cannabis products, pursuant to a government order or voluntarily.
R
Persons appointed, by courts or otherwise, as custodian of a distressed (generally bankrupt) business to oversee the businesses operations and pay debts.
Laws permitting cannabis cultivation, manufacturing, distribution, sales, and use for any purpose by persons over a specific age, generally 21 years.
A voting protocol where voters decide to approve or reject an existing law. Referenda typically occur when changes are made to state constitutions, or to taxation.
Rules created by government agencies pursuant to legislative authority, with the force and effect of law. In the U. S., regulations are promulgated through a process known as “notice and comment” where a state or federal agency publishes draft regulations and solicits comments from the public before finalizing the regulations.
Process for remedying defects or unsafe conditions cannabis or cannabis goods.
Requirements imposed by state or local governments on applicants for cannabis permits or licenses, under which some or all owners of the business must reside in a specific geographic area to qualify for licensure.
Trace amounts of solvents left behind after cannabis extraction processes. Regulatory limits exist to ensure consumer safety.
The process of returning cannabis products to a licensed cultivator or manufacturer, typically due to expiring product, failing quality control, or product recalls.
Racketeer Influenced and Corrupt Organizations Act, federal law that allows for civil and criminal penalties and private rights of action against conspirators for crimes that amount to racketeering liability.
Federal appropriations legislation first passed in 2014 that prevents federal government interference with state medical cannabis laws. Now known as the Blumenauer Amendment.
S
A tax status elected by an eligible corporation or LLC that passes corporate income, losses and credits through to shareholders for federal tax purposes.
Secure and Fair Enforcement Act, H.R. 1595, a bill in the federal House of Representatives that would have reduced or eliminated penalties against financial institutions for providing banking services to state-compliant cannabis businesses, and would have limited the scope of anti-money laundering laws for state-compliant cannabis businesses.
California ballot initiative that, among other things, requires businesses selling products in California to provide consumer warnings of the presence in such products of chemicals deemed by the State of California to cause cancer or reproductive harm. Cannabis smoke and Δ9-tetrahydrocannabinol, among other cannabis-related substances, are listed chemicals.
2017 case from the federal Tenth Circuit Court of Appeals that held that participation in state-legal cannabis industries was racketeering activity within the meaning of the Racketeer Influenced and Corrupt Organizations Act (RICO), but nevertheless held that the plaintiffs – a neighboring farm – failed to provide concrete financial damages as a result.
Memorandum issued on January 4, 2018 by former United States Attorney General Jefferson B. Sessions, III that rescinded previous nationwide guidance specific to marijuana enforcement. The Sessions Memo gave United States Attorneys discretion to prosecute federal cannabis law violations, even if consistent with state law.
An international treaty that prohibits the production and supply of certain drugs. The treaty required signatory nations to enact legislation to carry out its requirements. The Controlled Substances Act was enacted in the U.S. pursuant to the Single Convention.
Cannabis licensing programs or employment requirements designed to foster access, employment, or ownership for persons from marginalized communities or victims of the War on Drugs.
Procedures for operating a certain aspect of a business that include, among other things, recall procedures, security procedures, quality assurance procedures, and more. Cannabis businesses must often submit SOPs to state and local regulators with their license or permit applications.
Genetic variants of cannabis plants that have different tastes, aromas, visual qualities, cannabinoid concentrations, and/or effects.
Claims made in connection with dietary supplements concerning the effect of a nutrient or dietary ingredient on the structure or function of the human body.
A company that is owned or controlled by another company, typically referred to as a holding or parent company.
Filings that must be made by financial institutions with the United States Department of Treasury’s Financial Crimes Enforcement Network if the financial institution knows or suspects an account holder is engaged in or trying to cover up illegal activity.
Cannabinoids or other compounds with psychoactive effects created through synthetic means. Synthetic cannabinoids are not always similar in structure or function to cannabinoids.
T
Compounds within cannabis plants that create aromas and flavors.
Aromatic compounds found in cannabis plants that contribute to the distinctive smell and flavor of different strains. Terpenes may also interact with cannabinoids to produce what is known as the "entourage effect," influencing the overall experience of cannabis use.
Δ9-tetrahydrocannabinol. A cannabinoid found in the cannabis genus that has intoxicating effects. Δ8- and Δ10-tetrahydrocannabinol also have intoxicating effects but are expressed in far lower natural quantities than Δ9-tetrahydrocannabinol.
Tetrahydrocannabinolic acid is a precursor of tetrahydrocannabinol that can convert into Δ9-tetrahydrocannabinol upon drying or heating through decarboxylation.
Tetrahydrocannabivarin, a cannabinoid.
Cannabis concentrates dissolved in ethanol or other alcohols, which are generally consumed orally using droppers.
Program for tracking and reporting the movement of cannabis and cannabis goods through all stages of the supply chain.
Samples of cannabis goods sent to licensees or their employees for the purpose of generating additional business.
Information that has actual or potential independent economic value by virtue of not being generally known, and has value to others who cannot legitimately obtain the information, and is subject to reasonable efforts to maintain its secrecy. Trade secrets are used prevalently in the cannabis industry, especially with the relative lack of availability of formal trademark protections.
Words, names, symbols, or devices that are used in commerce to identify and distinguish goods or services. Trademark registrations are issued by the United States Patent and Trademark Office (USPTO) and state agencies, though the USPTO restricts access to trademark registrations for cannabis due to its current federal illegality.
Appendages on cannabis flower that contain cannabinoids and terpenes.
U
Federal agency that oversees, among other things, naturalization applications. The USCIS determined that use of marijuana or participation in state-legal marijuana programs still constitutes a conditional bar to good moral character determinations for naturalization eligibility.
Federal agency charged with regulating various agricultural industries, including the domestic hemp production program.
Federal agency charged with enforcement of United States federal laws.
Federal agency that, among other things, oversees financial institutions with respect to certain anti-money laundering laws.
2016 Ninth Circuit Court of Appeals case holding that the federal government could not prevent the implementation of state laws authorizing individuals from using, distributing, possession or cultivating marijuana, due to Congressional restraints on spending.
A design or image that conveys a commonly and widely recognized message. Many states require universal symbols to be affixed to cannabis good packaging.
Discretionary land use approvals issued by municipalities that allow construction on or uses of a specific parcel or structure of property, where such uses are not allowed as a matter of right or where such discretionary approvals are required by law.
United States Patent and Trademark Office, federal agency that, among other things, issues patents and trademark registrations.
V
Cartridge inserted into an electronic cigarette or similar device that contains cannabis oil or other liquids for vaporization and inhalation.
Process of inhaling vaporized cannabis concentrates using an electronic cigarette or similar device.
A business model where a single company controls multiple stages of the cannabis supply chain, from cultivation and processing to distribution and retail sales. This can offer efficiency and control but also raise concerns about market competition.
Also referred to as ballot initiatives or propositions, citizen tools to repeal or amend an existing law or create a new law or constitutional provision. Voter initiatives are voted on after initial sponsors receive certain thresholds of signatures from registered voters within a jurisdiction.
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Domestic and international campaign led by the United States government, in coordination with state, local, and international agencies, to stop the cultivation, import, distribution, and use of illegal drugs.
Correspondence from a government agency notifying the recipient that it has violated a law, regulation, or permit condition and demanding that the recipient rectify or correct the violation.
A class of license granted to cannabis distributors in certain jurisdictions.
Memorandum issued on October 8, 2014 by Monty Wilkinson, Director of the U.S. Department of Justice, titled “Policy Statement for Marijuana Issues in Indian Country.” Enumerated and limited the federal government’s enforcement priorities with respect to marijuana under the Controlled Substances Act to prioritize enforcement of eight different types of activities, including preventing distribution to minors, diversion to states where it was not legal, or use of violence. Rescinded by the Sessions Memo of January 4, 2018.
Memorandum issued on May 18, 2018 by U.S. Attorney Billy J. Williams of the District of Oregon, titled “Priorities in Enforcement of Federal Laws Involving Marijuana in the District of Oregon.” Enumerated five federal enforcement priorities in the District of Oregon, include overproduction, protecting children, violence, organized crime and protecting natural resources.
Crimes that may be treated and punished as either felonies or misdemeanors depending on the circumstances of the underlying act.
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Municipal laws that identify permitted uses for areas of property within the municipality, such as residential, industrial, commercial, and hybrid zones.