The Law Office of Eric J. Proos, P.C.

Dispensaries

 
Proposition 64 allowed for dispensaries to sell recreational marijuana to persons 21 years of age and older.

Proposition 64 allowed for dispensaries to sell recreational marijuana to persons 21 years of age and older.

types of licenses and fees

The Bureau of Cannabis Control (“BCC”), the governing body for dispensaries in California allows for two types of retail licenses. Type 9 and Type 10 (non-storefront). The application fee due to the state is $1,000 per application. The application fee is detailed in the BCC’s regulations in Section 5014.

Dispensary application

A dispensary application is similar to the other types of businesses the BCC regulates. Some of the application requirements for dispensaries are: detailing of prior military service (if applicable), detailing of security system, formation documents, and standard operating procedure. A complete account of all requirements can be found in Section 5002.

On January 1, 2018, there were lines down the block at a number of legal, recreational dispensaries throughout Los Angeles.

On January 1, 2018, there were lines down the block at a number of legal, recreational dispensaries throughout Los Angeles.

annual license fees

Annual license fees due to the State depend on the gross revenue of the company. It is best to overestimate the gross revenue when paying the annual license fee because if a company pays the wrong fee there are penalties associated. Annual distributor license fee range from $2,500 to $96,000. Complete annual license fee information is found in Section 5014.

Violations

Violations by a licensed retailer are detailed throughout the BCC’s 138 pages of regulations. A retailer can be cited for violations of track and trace, operating outside of designated hours, and security system violations, just to name a few. When violations occur, the enforcement provisions found starting in Section 5800 will be followed.