Glossary of Common Cannabis Terms

280E: One of the laws seriously obstructing cannabis business is “26 U.S. Code  280E,” which prohibits any deductions or credits on the taxes of businesses that traffic in what the federal government determines as “controlled substances.” Because of this code, legal cannabis operations cannot currently deduct any of their business expenses. Cannabis business owners end up paying tax rates 70% or higher than non-cannabis business owners.

Adult-use: Adult-use, or recreational use, is a term used by some state legislatures to denote cannabis dispensaries that can sell cannabis to people 21 or older.

Cannabidiol (CBD): A cannabinoid that has numerous potential health benefits. Clinical research on CBD includes conditions ranging from anxiety and cognition to movement disorders and pain.

Cannabinoid: Any of the 100-plus chemical compounds derived from the cannabis plant. The most famous are tetrahydrocannabinol (THC), which is the psychoactive compound, and cannabidiol (CBD).

Cannabinol (CBN): A mildly psychoactive component found in aged cannabis that is commonly used as a sleep aid or sedative.

Cannabis: This plant is three species of flowering herbs. It’s most famous for its psychoactive effects, but the plant also has numerous industrial and medical uses. (Figure 1)

Concentrate: Cannabis concentrate is the product you’re left with when you distill a cannabis plant’s most desirable parts. It contains all the cannabinoids and terpenes and none of the excess plant material.

Dispensary: A licensed distribution location for medical cannabis.

Dried flower: A part of the cannabis plant that has been cured and dried and is ready to smoke.

E-cigarette: An electronic cigarette is a device designed to simulate smoking by vaporizing a liquid containing nicotine, cannabis, etc. (Figure 2)

Edible: Any food, candy, baked good or beverage that contains cannabis so it can be ingested rather than smoked or vaporized.

Endocannabinoid system: A biological system within the human body, it’s made up of neurotransmitters that bind to cannabinoid receptors. Experts are still trying to gain a full understanding of this system. But we already know it plays a role in regulating numerous bodily functions, like sleep, mood, appetite, memory and reproduction.

EVALI: Short for e-cigarette or vaping associated lung injury. It refers to a lung disease that can develop due to unsafely inhaling vitamin E acetate. Symptoms including shortness of breath, cough and chest pain. That first reported case was from August 2019.

Flower: The flowers of a cannabis plant are either male or female. The male flowers are large, bell-shaped clusters, while the female ones are tear-shaped with pistils. The female flowers contain considerably higher concentrations of cannabinoids.

Good manufacturing practices (GMP): This is a holistic approach to quality control that consistently produces high-quality products. It’s is designed reduce risk in the manufacturing process at all stages. It encompasses everything from a hygienic workspace to employee training to the actual materials used.

Hemp: The fiber of the cannabis plant that is extracted from the stem. It contains no psychoactive compounds, but it is a strong material that can be used for rope, fabrics, fiberboard, paper and even bioplastics. It’s as strong as metal in some applications but far lighter. Ford once built a car with body panels made of hemp and other plant-based plastics. It had comparable crash safety to its steel counterparts.

Licensed producer (LP): In the medical end of the cannabis industry, a licensed producer is an individual or company that holds a state or municipal license to grow and produce cannabis. They can also sell live plants and seeds.

MORE Act: The Marijuana Opportunity Reinvestment and Expungement (MORE) Act is proposed legislation that, if passed, will decriminalize cannabis by removing it from the list of controlled substances.

Multistate operator (MSO): Due to federal law, cannabis products produced in one state can’t be transported and sold in another state. Multistate operators are cannabis companies that are licensed producers in more than one state.

SAFE Banking Act: The Secure and Fair Enforcement (SAFE) Banking Act is proposed legislation that, if passed, will prohibit federal banking regulators from penalizing a depository institution for providing services to any legitimate cannabis or hemp-related business. By allowing cannabis businesses access to banking, that will reduce the amount of cash on hand at business locations. It is considered an issue of public safety.

Schedule 1: Schedule 1 drugs are substances that the federal government considers to have no medical applications and a high potential for abuse. Cannabis is still listed as one of them, along with heroin, cocaine and others.

Seed-to-sale: This refers to the cycle beginning with the growth of a cannabis plant and ending with its purchase by a customer. Growers will keep track of their product through each stage of the seed-to-sale process to ensure they remain in compliance with all their state or country’s laws.

STATES Act: The Strengthening the Tenth Amendment Through Entrusting States (STATES) Act is proposed legislation that, if passed, will amend the Controlled Substances Act of 1970 and allow each state to make its own determination about the best legal approach to cannabis within its own borders.

Terpene: Any large group of volatile, unsaturated hydrocarbons found in the essential oils of plants, including cannabis.

Tetrahydrocannabinol (THC): Tetrahydrocannabinol is the main compound cannabis is known for. It’s the psychoactive cannabinoid responsible for inducing euphoria and heightened sensory awareness, among other effects.

Tincture: A solution of a medical substance in an alcoholic solvent. In the case of cannabis, it’s cannabis dissolved into alcohol. It’s a method of consumption that doesn’t require combustion or inhalation.

Topical: A medicine designed to be applied directly to the body, like a medical cream or some forms of anesthetic. There are several cannabis-based topicals designed to be rubbed into the skin.

Vaporizer: Any device that uses heat to vaporize the active molecules in cannabis flower and concentrates for inhalation. Most are handheld, and they come in all shapes and sizes.