(This story has been updated to include the value of the Metrc contract.)
California’s cannabis regulatory agency has extended the state’s contract with Florida-based marijuana track-and-trace software company Metrc.
The new contract took effect July 1, according to California’s Department of Cannabis Control (DCC), and will run for four years.
The state has an option to extend the contract another two years.
The contract will not exceed $28.4 million annually, or $113.6 million for four years, the DCC confirmed to MJBizDaily on Friday afternoon.
Metrc said in a news release that it will focus on improving transparency and speeding up data-driven responses to support regulators and protect consumers.
According to Metrc, its traceability system is built to track the life cycle of cannabis-based products, including:
- Origin.
- Testing results.
- Handling.
- Chain-of-custody information.
The timing of the contract extension has rankled cannabis operators throughout the state as regulators try to contain a growing pesticide scandal in the marketplace.
Despite the proclamations of accurately tracking cannabis products throughout the supply chain, numerous products have recently tested positive for banned pesticides, according to a Los Angeles Times and Weed Week report last month.
The fallout has rattled confidence in the world’s largest regulated market, as brands, retailers and testing labs scramble to uncover the origins of contamination and try to quell consumer safety concerns.
It has also sparked litigation between state-licensed testing labs and prompted some retailers and brands to initiate independent lab tests on products available in the marketplace.
Chris Casacchia can be reached at chris.casacchia@mjbizdaily.com.
