--- title: California’s New Cannabis Law Expands Distribution Network description: 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 […] image: https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/68c301ebaa36be33aa2af8f7_1a3f16114a452999cc4d7d6b36ae1602_Obedio%20march%20of%20progress.png --- [Skip to content](https://hs.getobedio.com/blog/2018/09/20/2018-9-20-californias-new-cannabis-law-expands-distribution-network#main-content) [![Obedio logo with black text and an orange graphic composed of four circles and a diagonal arrow pointing up and right.](https://cdn.prod.website-files.com/66525ec138843cc1ccb1c325/66529844eddaa630d6da1b42_obedio%20gold%20for%20white%20background.png)](https://getobedio.com) [Team](https://www.getobedio.com/team) [Pricing](https://www.getobedio.com/pricing) [Contact](https://www.getobedio.com/demo) [Blog](https://www.getobedio.com/blog) [Login](https://obed.io/v4/login) California # California’s New Cannabis Law Expands Distribution Network ![Susan Ameel](https://7528315.fs1.hubspotusercontent-na1.net/hub/7528315/hubfs/raw_assets/public/mV0_d-cms-elevate-theme_hubspot/elevate/images/avatar-placeholder.jpg?width=48&height=48&name=avatar-placeholder.jpg) Susan Ameel September 20, 2018 Yesterday, The Governor [signed into law](https://www.gov.ca.gov/2018/09/19/governor-brown-issues-legislative-update-13/) a [bill](http://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=201720180SB311) 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. ## Share this post [mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2018%2F09%2F20%2F2018-9-20-californias-new-cannabis-law-expands-distribution-network](mailto:https%3A%2F%2Fhs.getobedio.com%2Fblog%2F2018%2F09%2F20%2F2018-9-20-californias-new-cannabis-law-expands-distribution-network) ## Keep reading ### [California Ballot Measure Local Municipalities California voters will decide 118 local tax measures and $8.07 billion in bond requests on November 3](https://hs.getobedio.com/blog/california-voters-will-decide-118-local-tax-measures-and-8.07-billion-in-bond-requests-on-november-3) ### [Local Ordinance Zoning Ordinance Development Data Federal Realty Asks La Mesa to Approve a 165,000-Square-Foot Bass Pro Shops Where Macy's Stood at Grossmont Center](https://hs.getobedio.com/blog/federal-realty-asks-la-mesa-to-approve-a-165000-square-foot-bass-pro-shops-where-macys-stood-at-grossmont-center) [![Obedio your municipal data source](https://hs.getobedio.com/hs-fs/hubfs/google%20workspace-1.png?width=100&height=41&name=google%20workspace-1.png "Obedio your municipal data source")](https://getobedio.com) Obedio's business intelligence platform provides data and insights from over 25,000 municipalities, enabling retail, manufacturing, finance, real estate, and government clients to make informed decisions, assess risk, and identify opportunities. **Data Source & Liability Disclaimer:** The data presented on this website is aggregated from various official government and public entities ("The Original Government Sources"). 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