Transportation and Distribution Licenses 

The Latest News in cannabis law

Legalized medicinal and recreational marijuana in California has opened the door for incredible opportunities across the industry. It’s created new opportunities in the industry that are unique to California as well: distribution and transportation. While these aspects have long been a part of the market, the state will be requiring licenses for transporting and distributing once the new regulations roll out in 2018. These licenses are not found anywhere else in the industry, and are brand new and completely unique to California.

At a high level, a distributor is licensed to engage in the business of purchasing cannabis from a licensed cultivator and cannabis products from a licensed manufacturer, and then selling them to a licensed dispensary. Distributors are responsible for ensuring products have been tested and certified safe before it enters into a retail dispensary.

Transporters are licensed to transport marijuana (the plant itself) and cannabis products between licensees. The license will be required in order to physically transport or deliver marijuana.

This Is What We Know

These licenses are totally uncharted territory. At this point, we can’t look to Colorado for insight on what to expect. Colorado has only four different license types, but when the regulations roll out here, we will have 13 licenses. We can look to Colorado for some of the ways they’ve done business, but they don’t have transportation or distribution licenses—there’s currently no precedent for how these regulations and requirements will work. California is going to be a different animal. The opportunity and audience is going to be greater, but there will still be much to learn, especially in these parts of the industry.

This Is How We Can Help You Down the Line

Because both the transportation and distribution licenses are completely new, it’s going to be harder to navigate the rules and regulations on your own. Whether you’re currently operating a business in one of these arenas or are looking to jump on the opportunity, you’ll need to act quickly as soon as the regulations come out. As your legal advocate, Fickel & Davis is on your side to keep you in the loop and at the leading edge of all these changes, setting you up for success as a distributor or transporter.