Distribution

Distribution

You need a distribution license to transport cannabis and cannabis products in California. Distributors can transport:

  • Goods they cultivated or manufactured
  • Goods for other businesses

Distribution licenses

The type and cost of distribution license depends on whether you:

  • Transport cannabis goods to retail
  • Store cannabis goods
  • Transport for other businesses

Role in testing and quality assurance

Type 11 distributors make sure a licensed testing laboratory tests all batches of cannabis goods before they are sold. The distributor:

  • Arranges for a testing laboratory to take a sample of cannabis
  • Holds the cannabis goods while the laboratory runs the required tests
  • Makes sure the date on the corresponding Certificate of Analysis is less than 12 months old

Distributors can only transport cannabis goods to a retailer for sale if they pass testing. Goods that fail testing are destroyed or sent to a manufacturer for remediation.

Before transporting goods to a retailer, type 11 distributors also conduct a quality assurance review to make sure:

  • Required information is on the label
  • The packaging protects the product from contamination
  • It’s not a prohibited product
  • The amount of THC in the product is within the limits