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California Cannabis Distribution
The Bureau of Cannabis Control licenses California cannabis distributors. Cannabis distribution licenses can be broken up into two distinct categories: distribution (Type 11) and distribution - transport only (Type 13.)
Type 11 cannabis distributors have a variety of responsibilities. First, a license holder is required to manage the transportation of cannabis from the cultivator or manufacturer to the distribution facility. Second, a license holder must collect the cultivation tax from either the cultivator or manufacturer. Third, the distributor is required to have the cannabis products in its possession testing by a duly licensed testing laboratory. Finally, a distributor is the only license holder permitted to transport cannabis to a dispensary or delivery service.
The job of a Type 13 license holder is considerably more simple. A Type 13 license holder is only permitted to move cannabis from one license holder to another. A license holder may also deliver cash from the buyer to the seller.
Distributors are a key cog in the California cannabis market. Without distributors, taxes wouldn’t be paid to the state, products wouldn’t be tested, and cannabis would not be able to leave a facility. For cultivators and manufacturers, an experienced and well connected distributor is key to getting their market on retail shelves. Conversely, a poor distributor may ensure that even the best products never end up on retail shelves.