How To Get A Distribution License In California

How to Open a Retail Marijuana Business

On January one, 2022, the sale of recreational marijuana became legal nether California police force, bailiwick to local restrictions.

In order to legally sell retail marijuana, businesses must obtain a license from the country of California and their local city or county.

Not all counties authorize the auction of marijuana within their borders. Local jurisdictions may prohibit the sale of marijuana altogether or may put their own conditions on it.

Additionally, the sale of marijuana remains illegal nether federal law.

This commodity addresses how to obtain a license from the state of California. People interested in legally selling marijuana should likewise cheque with their local canton or city business concern office – such as the Los Angeles County Office of Cannabis Management.

Notation that not all counties and cities authorize the auction of marijuana. Local consent is required in guild to constitute a retail marijuana business in California.

You may also wish to review our commodity on How to Open a Medical Marijuana Clinic in California.

To help you understand how to open up a retail marijuana business organisation, our California marijuana defense lawyers hash out, below:

one. How practice I apply for a license to sell marijuana in California?

The California Bureau of Cannabis Control (BCC) bug state licenses to retailers, distributors, and testing labs.

Licenses for growing marijuana are issued by the California Department of Nutrient and Agriculture.

Licenses to distribute marijuana in California are issued by the California Department of Public Health Manufactured Cannabis Safety Co-operative.

This commodity is specifically about licenses for selling marijuana products in California.

Process for obtaining a license

An annual awarding is required to sell marijuana legally in California. A carve up license is required for each location (premises).

Equally of January ane, 2022, the BCC is accepting applications for temporary licenses only. The temporary license is expert for 120 days and may be extended for additional 90-day periods. These temporary licenses will be phased out beginning January ane, 2022.

Even so, the temporary license can only be issued if the applicant has a valid license, let, or other potency issued by the local jurisdiction.ⁱ

Applicants will be required to annals an account on the Bureau's online cocky-service portal before applying for a license.

two. Types of marijuana sales licenses bachelor in California

California police provides for two types of marijuana sales licenses:

An "A-license" (Adult Use License) permits the sale of recreational marijuana. That is, information technology covers cannabis or cannabis products intended for adults who are 21 years of age and older and who practise non possess a physician's recommendation.

An "Yard-license" (Medical Marijuana License) permits commercial activeness involving medical marijuana.

Each location must take a separate license and in that location can exist just ane licensee per premises. The sole exception is that a licensee holding both an A-License and M-License for the aforementioned commercial cannabis activity (east.g., retail auction) may have the same premises for both types.

Licenses are also divided past type of business concern. Sales licenses fall into three general categories:

Retailer (Type 10), who sells cannabis goods to customers and may deliver cannabis goods to customers,
Non-Storefront Retailer (Type ix), who sells and delivers cannabis appurtenances to customers from a licensed premises that is not open up to the public, and
Microbusiness (Type 12), who engage in iii out of 4 of the following activities:
- Cultivation on less than 10,000 foursquare feet,
- Manufacturing (non-volatile extraction, infusion, packaging, and/or labeling),
- Distribution and/or
- Retail sales.

Other license types available from the BCC include:

Distributor (Type 11),
Distributor Transport Only (Type 13),
Testing Laboratory (Type 8, no Thousand or A designation),
Cannabis Event Organizer (Type 14), and
Temporary Cannabis Event.

3. Who tin legally sell retail marijuana in California?

Applicants must have at least 1 individual who meets the definition of "owner" under California Business concern and Professions Lawmaking section 26001(al).

This is the person who will complete the state of California licensing application and submit it online at www.bcc.ca.eov. Alternatively, the private can a consummate a hard copy and deliver it to the Bureau'due south part(s).

Pursuant to Business and Professions Lawmaking department 26001(a1), an "possessor" means any of the post-obit:

A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.
The chief executive officer of a nonprofit or other entity.
A member of the board of directors of a nonprofit.
An individual who will be participating in the management, command, or management of the person applying for a license.

iv. What if I have a criminal record?

A criminal record does not automatically disqualify an bidder from obtaining a retail marijuana license in California unless the conviction is for:

A "tearing felony" such every bit rape or murder, as divers in California Penal Code 667.5;
A "serious" felony (including many sex crimes), every bit defined in California Penal Code 1192.seven;
A felony conviction involving fraud, deceit, or embezzlement;
A felony conviction involving giving a controlled substance to a modest or using a small to sell or furnish a controlled substance; or
A felony confidence for drug trafficking with enhancements, as defined in Health and Rubber Code 11370.4 or 11379.8.

However, other than one of these, a prior drug conviction may not be the sole basis for denial of a license.

five. What information will I have to provide?

The application to receive a marijuana sales license is lengthy. It requires detailed information on the business organization, individual owners, financial interest holders, the premises, and the concern' operating procedures.

Applicants must also exist able to provide show of:

Their legal right to occupy the bounds and sell marijuana there,
Verification that the premises is not inside a 600-human foot radius of a school,
A bounds diagram,
A re-create of a valid local license, allow, or other authorization, and
A $5,000 surety bail payable to the Country of California to cover the cost of destruction of cannabis goods.

vi. Is priority licensing bachelor?

Yeah. The following applicants will receive priority for the issuance of a license:

Medical marijuana dispensaries that operated in compliance with the Compassionate Use Act of 1996 and its implementing laws before September one, 2022;² and
Applicants who have served equally an active duty member of the Armed forces of the United States and can provide prove of honorable discharge.ⁱⁱⁱ

7. How much does it cost to apply for a marijuana sales license?

There is no application fee to apply for a temporary marijuana business license from the country of California.

Once regular California marijuana licenses become bachelor, the almanac price to utilise for a license to sell retail marijuana volition exist as follows:

License Blazon	Fee per Awarding
All Almanac Licenses	$1,000
Cannabis Event Organizer License	$1,000
Temporary Cannabis Result License	$1,000
Concrete Modification of Premises	$500

The application fee is due when the awarding is submitted

8. What is the annual fee for a California cannabis sales license?

The annual cost of the license itself depends on the type of operation and full square footage. The fee is set on a sliding scale based on the maximum dollar value of the licensee'south operation.

Retailers can expect to pay between $4,000 and $72,000 annually.^four

The license fee itself is payable only when the application is canonical.

A full listing of retail marijuana license fees can exist establish here.

nine. How much does it toll to open a retail marijuana business organization?

Depending on the size and location, it can toll anywhere from $30,000 to $500,000 or more to open a retail marijuana concern legally.

The initial costs include (but are not express to):

Application and license fees payable to the state and local licensing agencies,
Building the store and purchasing the advisable equipment,
Fees for services from legal and fiscal advisors.

Some companies will build a ready-to-go "turn-fundamental" clinic for you lot. Such companies can exist located online (just practice your research). They hope to

File all necessary paperwork on your behalf, and
Brand certain that you comply with all laws.
The toll for a turn-fundamental functioning ranges from $100,000 – $200,000.

Just know that before you purchase this type of set-up, y'all should consult with your own California marijuana chaser to ensure the accuracy of the visitor'south data.

10. The risk of federal prosecution

Nonetheless legalization of marijuana in California, the sale and distribution of cannabis remain illegal nether federal law. This means that even a seller who is in strict compliance with California's marijuana laws is technically violating federal drug laws.

Adding to the defoliation is the government's recent rescission of the "Cole memos," the Obama Administration's "easily-off" policy with respect to federal prosecutions. Federal prosecutors may now fix their own priorities as to whether to get subsequently cannabis sellers who are in compliance with California police.

At nowadays, we are unaware of whatsoever desire by federal prosecutors in California to get after dispensaries that operate with a license and in accord with California law.

However, at that place is still a chance. Additionally, federal prosecutors are less probable to accept a hands-off approach if they believe a marijuana sales business organisation is null more than a front for drug trafficking.

This is simply one reason why it is disquisitional to consult with a skilled California marijuana attorney before opening a medical marijuana dispensary.

Need communication on California'southward marijuana laws? Call us…

female attorney smiling

If you or someone you know needs legal assistance with a marijuana-related result, we invite you lot to contact our California drug lawyers for a costless consultation.

We accept local offices throughout California and knowledgeable California criminal attorneys to serve your needs.

Telephone call us at 323-380-3045 to talk over your situation at no charge and in complete confidence.

Additionally, our Las Vegas, Nevada marijuana attorneys are bachelor to answer whatsoever questions about opening a marijuana dispensary in Nevada.