For any business owner, it is vital to understand basic licensing in order to comply with all laws and regulations. Failure to do so can threaten your livelihood and product. With the demands of running a business, it can be difficult to keep up with all of these areas.
At Purdy & Bailey, LLP, we have taken the time to thoroughly understand all licensing laws. We can navigate this area for you to ensure you, your business, your customers, and your product all remain protected as your business grows. Our local and state licensing lawyers for cannabis businesses are ready to review your licensing requirements and get you on the right track.
How We Can Help With Marijuana Business Licensing
With recent changes in laws regarding the use of marijuana, new requirements will soon be put in place for businesses to follow. Our team can assist you with staying on top of these state licensing changes. Possible issues that must be resolved include:
- Recording and filing a state license
- Meeting all regulations from the Bureau of Medical Cannabis Regulation
- Meeting all requirements from the Department of Consumer Affairs, Food and Agriculture, and Public Health
Understanding California State Licensing for Cannabis Businesses
California’s Bureau of Cannabis Control is the government agency that provides licenses for every kind of cannabis business. The BCC issues different categories of licenses for cannabis businesses, and each premises (not just every business) must be licensed. Before receiving any license, applicants are required to meet state and local requirements.
Licensing is available for the following categories of cannabis businesses:
- Retailers (storefront and non-storefront)
- Distributors (including distributor transport)
- Testing laboratories
What Are the Requir Apply for a Cannabis Business License?
According to the BCC’s Anticipated Annual License Application Requirements, applicants seeking licensure to run a marijuana business in California will be required to provide the following:
- DBA (“Doing Business As”)
- Business contact information (address, phone, email, primary company contact, etc.)
- Documents detailing your business’ structure and formation
- Your permit number
- Detailed explanation of all operations (including everything from security to advertising)
- Business owner’s personal information
- Taxpayer ID number
- Government-issued ID
- Fingerprints/Background check
- Portion of ownership over business
- All relevant information about the business property
- Diagram of property
- Official documentation that property is more than 600 feet away from the nearest school
- Documented legal permission to run a cannabis business in that location
Do I Need Liability Insurance for Cannabis Licenses?
According to the BCC, every license must also have a surety bond of up to $5,000. In cases of cannabis distribution businesses, “distributors must carry and maintain commercial general liability insurance in the aggregate in an amount no less than $2 million and in an amount no less than $1 million for each loss.”
What is the Difference Between A and M Cannabis Licenses?
A-licenses will be issued to businesses where products will be sold for non-medical adult use for recreational or personal purposes. M-licenses will be issued for businesses where marijuana products are intended for medicinal use. A- and M-licensed cannabis businesses will not be able to do business with one another. (Cannabis testing laboratories are the only exception to this rule.)
Contact Purdy & Bailey, LLP Today!
Before filing for state licensing, one must demonstrate on a local level some form of authority via license, permit, or another form of authorization. Failure in this area can quickly result in a cease and desist letter, or worse, raid and product seizure. These daunting realities should lead any business to seek legal assistance.
If you are in need of licensing help, there is no one better to turn to than the team at Purdy & Bailey, LLP. With our combined experience and personalized care, we can navigate both state and local licensing to ensure your compliance with the law.
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