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IMPORTANCE OF THE WHOLESALE DISTRIBUTION TIER IN THE CALIFORNIA CANNABIS INDUSTRY

Cannabis, whether medicinal or recreational, is a socially sensitive product subject to abuse that should be regulated and distributed responsibly. California understands the unique nature of Cannabis and emulates many aspects of the three-tier alcohol regulatory model used in California by implementing a wholesale/distribution tier that requires cultivators and manufacturers to use a distributor. This distributor is responsible for quality assurance, inspection and testing for purity and contaminants before the product can be delivered to dispensaries and eventually on to consumers.

Governor Brown and the California legislature’s hope is that MCRSA will mirror the success of the three-tier alcohol regulatory system in California.

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