Metrc
- Overview
- Which states use METRC?
- Metrc Key Components
- Criticisms of the Metrc API
- State-Specific Metrc Implementations
- Metrc RFID Tags
- How RFID Readers (Scan Guns) Work in Metrc
Metrc (Marijuana Enforcement Tracking Reporting Compliance) is a state-mandated cannabis compliance system, required in various U.S. states to track cannabis cultivation, production, testing, and sales. Developed by Franwell, Metrc operates as a cloud-based platform intended to monitor cannabis products throughout the supply chain.
- Alabama
- Alaska
- California
- Colorado
- Colorado Industrial Hemp
- District of Columbia
- Guam
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nevada
- New Jersey
- Ohio
- Oklahoma
- Oregon
- Rhode Island
- South Dakota
- West Virginia
Metrc’s compliance ecosystem is built around several key components, each serving a unique role in ensuring cannabis industry compliance with state regulations:
The Metrc platform's primary tool is its web-based user interface (Web UI). In states that have adopted Metrc as their compliance tracking system, all licensed cannabis businesses are required to use this interface to report essential compliance data. Key reportable events include:
- Cultivation Activities: Planting, harvesting, and waste disposal.
- Manufacturing: Processing raw cannabis into consumable products.
- Transportation: Tracking the movement of products between licensed facilities.
- Testing: Documenting results from state-mandated lab testing.
- Sales: Recording transactions at dispensaries.
Despite the availability of an API, many compliance actions must still be completed through the Web UI due to gaps in API coverage.
Metrc provides an API designed to enable licensed operators and third-party integrators to programmatically interact with its system.
There are two versions of the API:
- v1 (Free): Available at no cost, this version provides basic functionality for interacting with Metrc’s compliance system.
- v2 ("Metrc Connect", Paid): A premium version with some additional features, requiring payment for access.
Radio-frequency identification (RFID) tags are mandatory for tracking every plant and product within the Metrc system. These tags play a critical role in enabling accurate seed-to-sale tracking. States differ in how these tags are funded:
- In some states, the government covers the cost of RFID tags.
- In others, the expense is borne by the businesses themselves.
Metrc also provides tools for state agencies to monitor and audit cannabis license holders. This lesser-known component of Metrc's platform grants state regulators full visibility into the activity of licensed businesses, enabling enforcement of compliance standards. Features available to state agencies include:
- Audit Tools: For detailed reviews of licensee data and activity.
- System-Wide Monitoring: Allowing oversight of all cannabis operations within the state.
These tools form an integral part of Metrc's value proposition to state governments, enhancing transparency and accountability across the regulated market.
The Metrc API is often criticized for its limitations and challenges.
-
Dual API Key Requirement
The Metrc API operates in an unusual manner by requiring two API keys to function:- One API key is issued to the cannabis business itself.
- The other API key is issued to an approved Metrc integrator.
Becoming an approved integrator involves navigating a state-specific approval process, as each U.S. state mandates its own procedures. This effectively means:
- Cannabis businesses cannot directly access their own data through the API unless they work with a state-approved integrator.
- The added dependency on integrators creates barriers for businesses seeking full control of their data.
-
Incomplete Compliance Support
Neither version of the Metrc API fully supports all required compliance actions. As a result:- Cannabis businesses must frequently rely on Metrc’s web-based user interface (Web UI) alongside the API.
- This dual dependency increases operational inefficiencies and complexity.
-
Cost of Access
- Access to the Metrc API v2 is not free. Businesses are charged for using it, effectively imposing a fee for accessing their own compliance data.
- This pricing structure adds to the financial burden of regulatory compliance.
-
Performance Issues
The Metrc API suffers from significant technical shortcomings:- Slow Response Times: The API often performs poorly under load, leading to delays.
- Lack of Usability: Developers frequently report the API as difficult to use due to its unintuitive design.
- Poor Documentation: Incomplete or unclear documentation makes implementation and troubleshooting unnecessarily challenging.
- Unhelpful Error Handling: The API returns generic or unclear error codes, complicating error resolution for developers and users.
Each state implements Metrc differently, based on specific regulations and requirements mandated by its regulatory bodies. This means Metrc operates as a slightly different system in each state, adding another layer of complexity for operators who must adapt to the unique requirements where they operate. For multi-state operators, these differences create significant operational challenges, as compliance processes may vary dramatically across state lines.
Metrc "tags" are a cornerstone of Metrc's compliance system, enabling standardized tracking of cannabis plants and products from growth to sale. Each cannabis plant or product is assigned a unique identifier (UID) issued by Metrc, which allows items to be identified and monitored throughout the supply chain.
Each tag is a 4"x1.5" rectangular piece of printed plastic linked to a UID in Metrc's database. The UID is a 24-character identifier that uniquely represents a plant batch, individual plant, or cannabis package. For example, 1A440000C030000000001234 is a UID.
Front and back of Metrc tag
A Metrc tag identifies the corresponding UID in three ways:
- Printed UID: The UID is printed on the tag.
- Barcode: A Code 128 barcode is included, which can be scanned with an optical barcode scanner.
- RFID Chip: An embedded UHF RFID chip returns the UID when scanned with an RFID reader.
Each UID can only be owned by one cannabis license at a time, and these UIDs are transferred between licenses using transfers.
- Plant Tags: Applied to individual mature plants, and in some states, plant batches.
- Package Tags: Applied post-harvest to any quantity of cannabis in any form that is not waste.
RFID readers, commonly called "scan guns," are handheld or fixed devices that emit radio waves to locate and read RFID tags within range. These readers use antennas to detect tags in the surrounding area, enabling data gathering from multiple tags simultaneously. Scan guns are intended to simplify the process of counting, organizing, and tracking inventory.
RFID Reader
The use of RFID technology in Metrc presents several challenges:
-
Interference and Environmental Factors: UHF RFID readers are sensitive to interference from metal surfaces, water, and electronic devices, which are common in grow facilities. For example, humidity and metal shelving can interfere with signal transmission, making it difficult to read tags reliably.
-
Read Range Variability: While UHF RFID tags are theoretically scannable from distances up to 20-30 feet, real-world conditions often reduce this range. Operators frequently need to move closer to tags or perform multiple scans to capture all required data, undermining the intended efficiency of RFID tracking.
-
Read Directionality: UHF readers typically have directional antennas, making them more effective when pointed directly at a tag. In busy environments where tags may be stacked or positioned at awkward angles, directional limitations result in missed scans, requiring manual rescanning.
-
Batch Scanning Issues: Metrc promotes RFID for batch scanning, which should theoretically capture data from multiple tags simultaneously. However, inconsistent performance often results in partial reads, where only some tags are successfully captured.
-
Missed Scans and Unreliable Data: Due to interference, tag placement, and system limitations, missed scans and unreliable data capture are common. This often forces operators to conduct manual checks, which negates the intended benefits of RFID automation.
Metrc's RFID tags are costly and single-use, contributing significantly to operational expenses for cannabis businesses. Additionally, the disposal of RFID tags, which contain electronic components, generates considerable e-waste. Operators across the U.S. must purchase thousands of tags annually, only to dispose of them at the end of the year, which raises both financial and environmental concerns.
Each RFID tag in the Metrc system contains a unique identifier that links to detailed records, including plant strain, growth stage, weight, and batch information. RFID readers communicate with these tags by emitting radio waves, which activate the tags and prompt them to send back data. This information is then captured by the reader and recorded in the system, ideally allowing for seamless inventory management.
However, in practice, the technology's inconsistent performance complicates inventory tracking and compliance processes. Many operators rely on manual data entry to supplement RFID tracking due to frequent read failures and interference. This hybrid approach increases the workload and diminishes the potential efficiency gains RFID was intended to provide.
RFID in Metrc has become a double-edged sword for cannabis operators. While it was designed to streamline compliance, the technology often requires constant vigilance and manual intervention, leading to increased burdens on staff and less reliability in maintaining accurate records.