Cannabis distribution means the activity of transporting cannabis or cannabis products between State licensees, and any ancillary activity, such as cannabis flower packaging, pre-roll packaging, labeling products, or storage between transport, that is conducted in association with the distribution activity.

License categories in the County of Santa Cruz include:

1. Class 1: A Class 1 distribution license is for a licensee that also holds a local cannabis cultivation or manufacture license. A Class 1 license is for a licensee who transports its own cannabis and cannabis products from its licensed cultivation site or manufacture facility to another licensed facility, stores its own cannabis for State testing and transport, and conducts any ancillary activity, such as cannabis flower packaging, pre-roll packaging or labeling products. A Class 1 distribution licensee does not maintain a distribution facility separate and apart from the cultivation site or manufacturing facility and does not transport other licensees’ cannabis plants or products.
2. Class 2: A Class 2 distribution license is for a licensee who transports cannabis and cannabis products for their own or other licensed cannabis businesses, stores cannabis for State testing and transport, and any ancillary activity, such as cannabis flower packaging, pre-roll packaging or labeling products. A Class 2 distribution license may only be issued to a licensee with suitable storage premises.
3. Transport Only: A transport only license is for a licensee who transports cannabis and cannabis products between State licensees. A transport only licensee shall not store or hold title to any cannabis or cannabis products.

Class 1 and 2 cannabis distribution licenses may only be issued by the Licensing Official for distribution activities undertaken in the following zone districts, consistent with the additional limitations and approvals required by this chapter and SCCC 13.10, as applicable: CA (Commercial Agriculture), A (Agriculture), RA (Residential Agricultural), TP (Timber Production), C-2 (Community Commercial), C-4 (Commercial Services), M-1 (Light Industrial), M-2 (Heavy Industrial), M-3 (Mineral Extraction Industrial), and SU (Special Use). Licenses issued on parcels in the SU zone district are further restricted as set forth in SCCC 13.10.382(C)(3). Transport only distribution license may be permitted in the zone districts listed above, except SU. Transport only distribution licenses may also be permitted in the PA (Professional and Administrative Offices), RR (Rural Residential), R-1 (Single Family Residential), RB (Ocean Beach Residential) and RM (Multifamily Residential) zone districts.

To check the eligibility of a parcel for distribution operations please please enter the Camino Guide.