Today's Law As Amended

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AB-2641 Cannabis: licenses: onsite sales: temporary events.(2017-2018)



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) A  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) (1)  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 event, or  district agricultural association event, or at another venue expressly approved by a local jurisdiction for the purpose of holding temporary events of this nature, provided that the activities, at a minimum, comply with all the following: 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. 
(A) The requirements of paragraphs (1) to (3), inclusive, of subdivision (g).
(B) All participants who are engaged in the onsite retail sale of cannabis or cannabis products at the event are licensed under this division to engage in that activity.
(C) The activities are otherwise consistent with regulations promulgated and adopted by the bureau governing state temporary event licenses.
(D) A state temporary event license shall only be issued in local jurisdictions that authorize such events.
(E) A licensee who submits an application for a state temporary event license shall, 60 days before the event, provide to the bureau a list of all licensees that will be providing onsite sales of cannabis or cannabis products at the event. If any changes occur in that list, the licensee shall provide the bureau with a final updated list to reflect those changes. A person shall not engage in the onsite retail sale of cannabis or cannabis products, or in any way participate in the event, who is not included in the list, including any updates, provided to the bureau.
(2) The bureau may impose a civil penalty on any person who violates this subdivision, or any regulations adopted by the bureau governing state temporary event licenses, in an amount up to three times the amount of the license fee for each violation, consistent with Sections 26018 and 26038.
(3) The bureau may require the event and all participants to cease operations without delay if in the opinion of the bureau or local law enforcement it is necessary to protect the immediate public health and safety of the people of the state. The bureau may also require the event organizer to immediately expel from the event any participant selling cannabis or cannabis products without a license from the bureau that authorizes the participant to sell cannabis or cannabis products. If the unlicensed participant does not leave the event, the bureau may require the event and all participants to cease operations immediately.
(4) The order by the bureau for the event to cease operations pursuant to paragraph (3) does not entitle the event organizer or any participant in the event to a hearing or an appeal of the decision. Chapter 3 (commencing with Section 490) of Division 1.5 and Chapter 4 (commencing with Section 26040) of this division shall not apply to the order by the bureau for the event to cease operations pursuant to paragraph (3).
(5) The smoking of cannabis or cannabis products at temporary events authorized pursuant to this subdivision is prohibited in locations where smoking is prohibited. For purposes of this section, “smoking” has the same meaning as defined in subdivision (c) of Section 22950.5.
(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 or 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.
(h) This division shall not be interpreted to supersede Section 6404.5 of the Labor Code.

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, all participants are licensed under this division, the activities are otherwise consistent with regulations promulgated and adopted by the bureau governing temporary cannabis event licenses, including, but not limited to, regulations restricting access and sale to persons 21 years of age or older, and if the local jurisdiction in which the event will be held has approved the temporary cannabis event. The bureau shall not issue 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 bureau shall not issue a state temporary cannabis event license for an event at a private residence.
(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.
SEC. 5.
 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.