Bill Text: CA AB2641 | 2017-2018 | Regular Session | Amended
Bill Title: Cannabis: licenses: onsite sales: temporary events.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2018-08-16 - In committee: Held under submission. [AB2641 Detail]
Download: California-2017-AB2641-Amended.html
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Amended
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Senate
June 27, 2018 |
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Amended
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Assembly
May 25, 2018 |
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Amended
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Assembly
April 19, 2018 |
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Amended
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Assembly
April 11, 2018 |
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Amended
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March 23, 2018 |
CALIFORNIA LEGISLATURE—
2017–2018 REGULAR SESSION
| Assembly Bill | No. 2641 |
| Introduced by Assembly Member Wood |
February 15, 2018 |
An act to amend Sections 26050 and 26200 of, and to add Chapter 14.5 (commencing with Section 26145) to Division 10 of, and to repeal Section 26146 of, the Business and Professions Code, relating to cannabis.
LEGISLATIVE COUNSEL'S DIGEST
AB 2641, as amended, Wood.
Temporary Cannabis: licenses: onsite sales: temporary events.
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA gives the Bureau of Cannabis Control in the Department of Consumer Affairs the power, duty, purpose, responsibility, and jurisdiction to regulate commercial cannabis activity in the state as provided by the act. MAUCRSA does not supersede or limit the authority of a local
jurisdiction to adopt and enforce local ordinances to regulate commercial cannabis businesses within that local jurisdiction. MAUCRSA authorizes an applicant to apply to all applicable state licensing authorities to obtain a state license to engage in commercial adult-use cannabis activity, and requires the applicant to obtain a separate license for each location where the applicant engages in commercial cannabis activity.
MAUCRSA authorizes a
state licensing authority to issue does not prohibit the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair or district agricultural association event, provided that certain other requirements are met. Under existing administrative law, the bureau has adopted regulations that govern the issuance of may issue a state temporary cannabis event license. license to allow retailers and microbusinesses to make onsite sales of cannabis
goods at a cannabis event.
This bill would specifically authorize the Bureau of Cannabis Control bureau to issue such a state temporary event license. license to a licensee under MAUCRSA that meets prescribed requirements, including having a valid license, permit, or other authorization, issued by a local jurisdiction that enables the licensee to conduct commercial cannabis activity. The bill would specifically prohibit the bureau from issuing a state
temporary cannabis event license for a particular event unless the local jurisdiction in which the event will be held has approved the event.
The bill would authorize
authorize, until January 1, 2024, a qualified manufacturer or cultivator licensee to apply for a temporary cannabis retailer license by submitting an application to the bureau and to include in that application a list, signed under penalty of perjury, detailing all of the owners of the business, and all of the other cannabis business licenses owned by each of those owners. By expanding the scope of the existing crime of perjury, this bill would impose a state-mandated local program. The bill would authorize the bureau to issue a temporary cannabis retailer license to a qualified manufacturer or cultivator licensee for the retail sale and delivery of cannabis or cannabis products to customers at a licensed temporary cannabis event and would make the license valid only for the duration of the particular temporary cannabis event for which the license was issued. The bill would prohibit the bureau from issuing more than 4 temporary cannabis retailer licenses to a particular
qualified manufacturer or cultivator licensee pursuant to these provisions in a calendar year. The bill would require the bureau, in coordination with the State Department of Public Health and the Department of Food and Agriculture, to establish a process by which an applicant for temporary cannabis retailer license can demonstrate that he or she has a valid manufacturer or cultivation license and complies with the requirements of these provisions. The bill would require a temporary cannabis retailer licensee to comply with all other requirements imposed on retailers by MAUCRSA and would limit the licensee to selling cannabis he or she cultivated or cannabis products he or she manufactured, as applicable. The bill would require that a distributor licensee transport cannabis and cannabis products between the licensed premises of the manufacturer or cultivator and the temporary cannabis event venue.
The Control, Regulate and Tax Adult Use of Marijuana Act, an
initiative measure, authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature.
This bill would declare that its provisions further specified purposes and intent of the act.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 26050 of the Business and Professions Code is amended to read:26050.
(a) The license classification pursuant to this division shall, at a minimum, be as follows:(1) Type 1—Cultivation; Specialty outdoor; Small.
(2) Type 1A—Cultivation; Specialty indoor; Small.
(3) Type 1B—Cultivation; Specialty mixed-light; Small.
(4) Type 1C—Cultivation; Specialty cottage; Small.
(5) Type 2—Cultivation; Outdoor; Small.
(6) Type 2A—Cultivation; Indoor; Small.
(7) Type 2B—Cultivation; Mixed-light; Small.
(8) Type 3—Cultivation; Outdoor; Medium.
(9) Type 3A—Cultivation; Indoor; Medium.
(10) Type 3B—Cultivation; Mixed-light; Medium.
(11) Type 4—Cultivation; Nursery.
(12) Type 5—Cultivation; Outdoor; Large.
(13) Type 5A—Cultivation; Indoor; Large.
(14) Type 5B—Cultivation; Mixed-light; Large.
(15) Type 6—Manufacturer 1.
(16) Type 7—Manufacturer 2.
(17) Type 8—Testing laboratory.
(18) Type 10—Retailer.
(19) Type 11—Distributor.
(20) Type 12—Microbusiness.
(b) With the exception of testing laboratory licenses, which may be used to test cannabis and cannabis products regardless of whether they are intended for use by individuals who possesses a physician’s recommendation, all licenses issued under this division shall bear a clear designation indicating whether the license is for commercial adult-use cannabis activity as distinct from commercial medicinal
cannabis activity by prominently affixing an “A” or “M,” respectively. Examples of such a designation include, but are not limited to, “A-Type 1” or “M-Type 1.” Except as specifically specified in this division, the requirements for A-licenses and M-licenses shall be the same. For testing laboratories, the bureau shall create a license that indicates a testing laboratory may test both adult-use and medicinal cannabis.
(c) Except as provided for in Chapter 14.5 (commencing with Section 26145), a license issued pursuant to this division shall be valid for 12 months from the date of issuance. The license may be renewed annually.
(d) Each licensing authority shall establish procedures for the issuance and renewal of licenses.
SEC. 2.
Section 26200 of the Business and Professions Code is amended to read:26200.
(a) (1) This division shall not be interpreted to supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to regulate businesses licensed under this division, including, but not limited to, local zoning and land use requirements, business license requirements, and requirements related to reducing exposure to secondhand smoke, or to completely prohibit the establishment or operation of one or more types of businesses licensed under this division within the local jurisdiction.(2) This division shall not be interpreted to supersede or limit existing local authority for law enforcement activity, enforcement of local zoning
requirements or local ordinances, or enforcement of local license, permit, or other authorization requirements.
(b) This division shall not be interpreted to require a licensing authority to undertake local law enforcement responsibilities, enforce local zoning requirements, or enforce local licensing, permitting, or other authorization requirements.
(c) A local jurisdiction shall notify the bureau upon revocation of any local license, permit, or authorization for a licensee to engage in commercial cannabis activity within the local jurisdiction. Within 10 days of notification, the bureau shall inform the relevant licensing authorities. Within 60 days of being so informed by the bureau, the relevant licensing authorities shall begin the process to determine whether a license issued to
the licensee should be suspended or revoked pursuant to Chapter 3 (commencing with Section 26030).
(d) For facilities issued a state license that are located within the incorporated area of a city, the city shall have full power and authority to enforce this division and the regulations promulgated by the bureau or any licensing authority, if delegated by the state. Notwithstanding Sections 101375, 101400, and 101405 of the Health and Safety Code or any contract entered into pursuant thereto, or any other law, the city shall assume complete responsibility for any regulatory function pursuant to this division within the city limits that would otherwise be performed by the county or any county officer or employee, including a county health officer, without liability, cost, or expense to the county.
(e) This division does not prohibit the issuance of a state temporary event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair or district agricultural association event, provided that the activities, at a minimum, comply with the requirements of paragraphs (1) to (3), inclusive, of subdivision (g), that all participants are licensed under this division, and that the activities are otherwise consistent with regulations promulgated and adopted by the bureau governing state temporary event licenses, pursuant to Chapter 14.5 (commencing with Section 26145). These temporary event licenses shall only be issued in local jurisdictions that authorize such events.
(f) This division, or any regulations promulgated thereunder, shall not be deemed to limit the
authority or remedies of a city, county, or city and county under any provision of law, including, but not limited to, Section 7 of Article XI of the California Constitution.
(g) Notwithstanding paragraph (1) of subdivision (a) of Section 11362.3 of the Health and Safety Code, a local jurisdiction may allow for the smoking, vaporizing, and ingesting of cannabis or cannabis products on the premises of a retailer or microbusiness licensed under this division if all of the following are met:
(1) Access to the area where cannabis consumption is allowed is restricted to persons 21 years of age and older.
(2) Cannabis consumption is not visible from any public place or nonage-restricted area.
(3) Sale or consumption of alcohol or tobacco is not allowed on the premises.
SEC. 3.
Chapter 14.5 (commencing with Section 26145) is added to Division 10 of the Business and Professions Code, to read:CHAPTER 14.5. Temporary Events
26145.
(a) The bureau may issue a state temporary cannabis event license to a licensee authorizing onsite cannabis sales to, and consumption by, persons 21 years of age or older at a county fair event or district agricultural association event if the activities, at a minimum, comply with the requirements of paragraphs (1) to (3), inclusive, of subdivision (g) of Section 26200,(b) A state temporary cannabis event license described in this section shall only be issued to a licensee under this division that has a valid license, permit, or other authorization,
issued by a local jurisdiction that enables the licensee to conduct commercial cannabis activity.
(c) A state temporary cannabis event license issued pursuant to this chapter or any other law shall not authorize any licensee to engage in any commercial cannabis activity at any nonpermitted temporary cannabis event, including a certified farmer’s market. Any licensee that engages in that unauthorized commercial cannabis activity is not subject to the protections of Section 26037 and is therefore subject to any applicable state and local penalties.
(d) A state temporary cannabis event license pursuant to this section shall only be issued to a licensee that has a point-of-sale system for transactions at the event.
26146.
(a) For purposes of this section, “qualified manufacturer or cultivator licensee” means either of the following:(1) A licensee that has obtained a state cultivator license, or multiple licenses, and a valid license, permit, or other authorization, issued by a local jurisdiction that authorizes the licensee to engage in cultivation of no more than 10,000 square feet, inclusive of all licensed premises.
(2) A licensee that has obtained a state manufacturer license
and a valid license, permit, or other authorization, issued by a local jurisdiction that authorizes the licensee to engage in manufacturing at a licensed premises with an annual gross revenue of no more than one million five hundred thousand dollars ($1,500,000).
(b) (1) A qualified manufacturer or cultivator licensee may apply for a temporary cannabis retailer license by submitting an application to the bureau, and shall include in that application a list, signed under penalty of perjury, detailing all of the owners of the business, and all of the other cannabis business licenses owned by each of those owners. The bureau may issue a temporary cannabis retailer license to a qualified
manufacturer or cultivator licensee for the retail sale and delivery of cannabis or cannabis products to customers at a licensed temporary cannabis event. A temporary cannabis retailer license shall only be valid for the duration of the particular temporary cannabis event for which the license was issued.
(2) In coordination with the State Department of Public Health and Department of Food and Agriculture, the bureau shall establish a process by which an applicant for a temporary cannabis retailer license can demonstrate that he or she has a valid manufacturer license or cultivation license and meets the requirements of subdivision (a).
(3) The bureau shall not issue more than four temporary cannabis retailer licenses to a
particular qualified manufacturer or cultivator licensee pursuant to this section in a calendar year.
(c) A temporary cannabis retailer licensee may only sell cannabis or cannabis products at the particular temporary cannabis event for which the license was issued.
(d) A temporary cannabis retailer licensee shall comply with all other requirements imposed on retailers by this division and all
regulations adopted by the bureau governing temporary cannabis event licenses, in addition to the following requirements:
(1) A licensed manufacturer described in paragraph (2) of subdivision (a) that is a temporary cannabis retailer licensee shall, at the temporary cannabis event, be limited to selling cannabis products it manufactured.
(2) A licensed cultivator described in paragraph (1) of subdivision (a) that is a state temporary cannabis retailer licensee shall, at the temporary cannabis event, be limited to selling cannabis that it cultivated.
(3) Cannabis and cannabis products shall be transported between the licensed premises of the manufacturer or cultivator and the temporary cannabis event
venue by a distributor licensee in accordance with Section 26070.
(e) This section shall become inoperative on January 1, 2024, and shall be repealed as of that date.
SEC. 4.
The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act, for the following reason:Cannabis is often distributed through unregulated channels and events. Because unregulated events are common, providing a pathway to compliance will help prevent illegal distribution and ensure that the sales that take place at unregulated events are taken out of the hands of the illegal market. Additionally, the cost of obtaining multiple licenses to compete with vertically integrated businesses is a barrier to entry for many cottage, specialty, and small businesses. By creating a streamlined temporary
license for these businesses, this legislation will help reduce barriers faced by these businesses.
