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

Distributors

 
Distributors are a vital part to the cannabis’ industry supply chain.

Distributors are a vital part to the cannabis’ industry supply chain.

types of licenses and fees

The Bureau of Cannabis Control (“BCC”), the governing body for distributors in California allows for two types of distributor licenses. Type 11 and Type 13 (transport only). 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.

distributor application

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

One aspect of being a distributor is to act as a business-to-business delivery system.

One aspect of being a distributor is to act as a business-to-business delivery system.

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 $1,500 to $240,000. If it is transport only, then it ranges from $200 to $1,000. Complete annual license fee information is found in Section 5014.

Violations

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