Industry Licensing Law & Compliance for California Cannabis Distributors, 2020 Industry News, Events, Information & Updates


California Cannabis Distributors


Frequently Asked Questions

What are the key requirements of Distributors?

  • CDTFA seller's permit
  • Alarm system must be on transport vehicles
  • If they are clearly identified, Medicinal and Adult-use cannabis goods can be transported together
  • Shipping manifest prior to transport must be created

What different types of Distributor Licenses are there?

Distributor (Type 11) and Distributor Transport Only (Type 13)

What are the responsibilities of a cannabis Distributor (type 11)?

  • Transporting cannabis goods
  • arranging for laboratory testing of cannabis goods
  • conducting quality assurance review of cannabis goods
  • ensuring goods comply with all packaging and labeling requirements.
  • Storage of cannabis goods

Can a Distributor Transport Only (Type 13) licensee transport cannabis goods to a licensed retailer?

No, a Type 13 Distributor licensee cannot transport cannabis goods to a licensed retailer. However, they can transport for immature live plants and seeds from a licensed nursery.

Can a Distributor Transport Only (Type 13) licensee engage in any other distributor activities?

No, a licensee cannot engage in any other distributor activities.

Who can transport cannabis goods?

Only a distributor can transport cannabis goods.

Who can a cannabis Distributor Transport Only (Type 13) transport to?

A distributor can transport cannabis goods to the following parties:
  • licensed cultivators
  • licensed manufacturers
  • licensed distributors


State Authority & Contact:

Bureau of Cannabis Control (CA Department of Consumer Affairs)
PO Box 419016, Rancho Cordova, CA 95741-9106
Phone: 1-833-768-5880
email: bcc@dca.ca.gov

Scope of Licenses:

  • A-Type 11 (Adult-Use Recreational Distributor)
  • A-Type 13 (Adult-Use Recreational Distributor Transport Only)
  • M-Type 11 (Medicinal Non-Storefront Distributor)
  • M-Type 13 (Medicinal Distributor Transport Only)

Requirements:

  • Evidence of legal right to occupy and use the proposed premises location.
  • Premises Diagram Form
  • Business formation documents, including all documents filed with the CA Secretary of State (SOS). Foreign corporations must include a copy of the Certificate of Qualification from the SOS.
  • Evidence of premises compliance with local jurisdiction, if applicable.
  • Labor peace agreement or notarized statement indicating that you will enter into and abide by the terms of a labor peace agreement, if applicable.
  • Limited sovereign immunity waiver, if applicable.
  • Evidence of exemption from, or compliance with, the California Environmental Quality Act.
  • Proof of commercial general liability insurance in the aggregate of no less than $2 million and no less than $1 million for each loss.
  • Financial Information Form
  • Proof of surety bond in the amount of $5,000, payable to the State of California.
  • Transportation procedures
  • Inventory procedures
  • Quality control procedures
  • Security procedures
  • Evidence of compliance with the Compassionate Use Act of 1996 and its implementing laws before September 1, 2016, if applicable.

Licensing Fees:

Distributor
  • $1,200: Revenue Up to $500,000
  • $5,000: Revenue between $2 million to $8 million
  • $36,000: Revenue between $8 million to $80 million
  • $125,000: Revenue greater than $8 million
Distributor Transport Only Self-Distribution
  • $500: Revenue Up to $2 million
  • $2,000: Revenue between $2 million to $8 million
Distributor Transport Only
  • $800: Revenue Up to $2 million
  • $2,500: Revenue between $2 million to $8 million

Forms:


Resources:








California Universal Symbol for Cannabis


California Universal Symbol for Cannabis

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