Glossary

Distribution license: a distribution license allows the warehousing, transport, and brokering of cannabis between licensees. California mandates that distributors take custody of cannabis while it is being transferred between licensees.

Canopy: As defined by the State of California: the area where mature flowering plants are grown.

Event organizer licenses: these licenses allow for the organization and hosting of cannabis events, and each individual event also requires a license.

Indoor: cultivation that occurs in a permanent structure under artificial lighting.

Mature plants: California considers plants mature once their pistils are greater than or equal to half an inch in diameter.

Mixed Light: cultivation that occurs under structures like greenhouses or hoop houses, and may use artificial lighting.

Non-Storefront retail license: a cannabis retail license that only allows for direct-to-consumer delivery, not in-store sales or display of cannabis.

Outdoor: cultivation that occurs outside without any form of artificial lighting.

Mature plants: California considers plants mature once their pistils are greater than or equal to half an inch in diameter.

Microbusiness license: this license type allows for a combination of nonvolatile manufacturing, cultivation of up to 10,000 square feet, distribution, and retail. These licenses allow smaller brands to run a vertical business all under one license.

Retail license: also known as storefront retailer, these licenses allow the operation of a dispensary for the public sale of cannabis products, and also allow for delivery.

Transport only distribution license: A transporter license allows only the pickup, transport, and drop off of cannabis between cultivation, distribution, and manufacturing licensees.

Type 6 manufacturing: a manufacturing license that allows the use of only solvents that do not produce a flammable vapor, like ethanol and CO2. This license also allows the use of mechanical extraction methods.

Type 7 manufacturing: a manufacturing license type that allows the use of volatile solvents to concentrate cannabis. Volatile solvents are chemicals that produce a flammable vapor like butane. This license also allows the use of non-volatile and mechanical extraction methods.

Type S manufacturing: a manufacturing license type that allows a manufacturing space to be shared by multiple licensees. This license can be attached to any of the other license types to allow that space to be shared. Usually these spaces are operated on a rotating schedule with time slots for different licensees.

Type N manufacturing: a manufacturing license type that allows infusion of cannabis products. These licenses only allow the addition of cannabis extracts and plant material to products like edibles and prerolls, not the extraction and concentration of cannabis.

Type P manufacturing: a manufacturing license type that allows only the packaging and labeling of cannabis products.