Licensed Distributor

California's New Cannabis Law Expands Distribution Network

Yesterday, The Governor signed into law a bill that allows distributors to transport marijuana product to another distributor. To date, licensed distributors could only deliver marijuana product directly to a retailer. The change in current law will create a more efficient distribution network through multiple hubs, and will help operators in rural communities reach new retail markets.

Distributors are a significant link in the seed-to-sale process in that they fulfill the primary quality assurance role by coordinating the testing of marijuana product, ensuring that the analysis was performed on the appropriate batch, and that the marijuana is packaged and labeled in accordance with the regulations. Distributors must ensure that all these activities are appropriately entered into California’s inventory tracking system and collect the appropriate cultivation and excise taxes. The amended law does not change a distributor’s obligations, which will result in duplicative checks on marijuana before it hits the retail shelves. The extended distribution network should work together to establish automated processes that ensures that products maintain the appropriate quality level through the chain of custody while mitigating the costs associated with performing redundant reviews.


In a flurry of activity, the California Legislature passed twenty-one cannabis bills in the last weeks prior to the end of the regular session on August 31st. The Legislature has presented Governor Jerry Brown with fifteen (15) bills for him to either sign or veto.  An additional six (6) bills will be presented to the governor following the engrossment process.

The scope of the bills passed by the California Legislature in the last couple of weeks of August has been monumental.  The bills address important and meaningful issues raised by constituents.  The highlights include the state driven expungement of marijuana convictions; compassionate care programs that permit the donation of cannabis products to individuals in need; the ban of cannabis in alcoholic beverages; the protection of personal data from the federal government; the expansion in industrial hemp cultivation; restricted provisioning of marijuana to animals;  equitable expansion of the cannabis industry; and the administration of cannabis on to children on schoolsites.

The following fifteen (15) bills were presented to the governor for his signature.  The links below provide the summary article and the final bill text.

The following six (6) bills are being enrolled and will be presented to the governor shortly. The links below provide the summary article and the final bill text.


The California Senate passed assembly amendments to SB 311 commercial cannabis activity; licensed distributors with a vote of  31 Yes 6 No.  Current law authorizes a licensed distributor to transport cannabis products to retailers, a microbusiness or a non-profit.  The bill amends the current law to require that the transport of the cannabis product to retailers, a microbusiness or a non-profit be for a retail sale.  The bill also amends the current law to allow licensed distributors to transport cannabis products to other licensed distributors.  The bill was passed with urgency.