California’s dispensaries are cross-regulated by three separate entities, but the Bureau of Cannabis Control is the lead agency. They regulate commercial licenses for both medical and recreational cannabis retailers, labs, distributors, and events.
The California Department of Public Health has a Manufactured Cannabis Safety Branch. The MCSB regulates and licenses commercial cannabis manufacturers. CalCannabis Cultivation Licensing oversees the certification and tracking of cultivators.
Dispensaries are required to obtain a retailer’s license from the Bureau. They offer both Type 9 and Type 10 licenses. A Type 9 license is required for eCommerce purposes, whereas a Type 10 license is necessary for traditional storefront dispensaries.
As part of the application process, you must pay a $5,000 bond to the state. The facility has to be at least 600 feet away from any school and have limited hours of operation. Currently, those hours are from 6:00 a.m. to 10:00 p.m PST. Each city has set forth additional regulations and fee schedules that must be closely followed.
Total fees and permitting can easily exceed $100,000 depending on income and other criteria. In addition, the state levies a 15% excise tax on all recreational cannabis sales.
If you would like further clarification on California payment processing laws and how they can affect your cannabusiness, contact a Paybotic representative today for assistance.
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