Bill Text: CA AB1111 | 2023-2024 | Regular Session | Enrolled
Bill Title: Cannabis: small producer event sales license.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Vetoed) 2024-09-29 - Vetoed by Governor. [AB1111 Detail]
Download: California-2023-AB1111-Enrolled.html
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Enrolled
August 31, 2024 |
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Passed
IN
Senate
August 27, 2024 |
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Passed
IN
Assembly
August 28, 2024 |
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Amended
IN
Senate
August 15, 2024 |
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Amended
IN
Assembly
May 22, 2023 |
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Amended
IN
Assembly
April 12, 2023 |
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Amended
IN
Assembly
March 13, 2023 |
CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1111
| Introduced by Assembly Member Pellerin (Principal coauthor: Assembly Member Wood) (Principal coauthor: Senator McGuire) (Coauthor: Assembly Member Addis) |
February 15, 2023 |
An act to add Section 26050.6 to the Business and Professions Code, relating to cannabis.
LEGISLATIVE COUNSEL'S DIGEST
AB 1111, Pellerin.
Cannabis: small producer event sales license.
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 and requires the Department of Cannabis Control to administer its provisions. Under MAUCRSA, the Department of Cannabis Control has sole authority to license and regulate commercial cannabis activity, which MAUCRSA defines to include, among other activities, the sale of cannabis and cannabis products.
MAUCRSA authorizes 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 certain venues expressly approved by a local jurisdiction, as specified. MAUCRSA requires a licensee who submits an application for a state temporary event license to provide to the department a list of all licensees that will be providing onsite sales of cannabis or cannabis products at the event.
This bill would require the department, no later than January 1, 2026, to issue small producer event sales licenses that authorize the licenseholder to sell cannabis or cannabis products, containing cannabis cultivated by that licensee, at state temporary events licensed under the
act, and would require the department to charge each small producer event sales licensee a licensing fee, as specified. The bill would authorize a licensee who holds a valid annual state cultivation license and a valid license, permit, or other authorization for cannabis cultivation issued by a local jurisdiction, and who meets specified other requirements, to apply for a small producer event sales license. The bill would require a small producer event sales licensee to comply with all requirements imposed on licensees selling cannabis or cannabis products at a state temporary event, unless otherwise specified. The bill would
prohibit the retail sales of cannabis and cannabis products made by a small producer event sales licensee at state temporary events from exceeding $175,000 in gross revenue per year, and would authorize the department, beginning July 1, 2027, to increase this cap by regulation after reevaluating the cap, as provided. The bill would provide that a cannabis event organizer licensee who submits an application for a state temporary event is required to provide to the department a list of all small producer event sales licensees providing onsite sales of cannabis or cannabis products at the event. The bill would authorize the department to take disciplinary action against a small producer event sales license, or any other licenses held by a small producer cannabis event sales licensee, for any violation of the requirements applicable to state temporary events. The bill would authorize a small
producer event sales licensee, upon completion or cessation of the temporary event, to reconcile unsold inventory of cannabis or cannabis products and return it to a licensed distributor, as specified. The bill would require retail sales of cannabis or cannabis products by a small producer event sales licensee at a state temporary event to be subject to the cannabis excise tax, as specified.
AUMA authorizes the Legislature to amend its provisions with a 2/3 vote of both houses to further its purposes and intent.
This bill would state that the bill furthers the purposes and intent of AUMA.
Digest Key
Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 26050.6 is added to the Business and Professions Code, to read:26050.6.
(a) (1) No later than January 1, 2026, the department shall issue a small producer event sales license authorizing retail sales at state temporary events licensed pursuant to subdivision (e) of Section 26200.(2) The department shall charge
each small producer event sales licensee a licensing fee pursuant to Section 26180.
(b) (1) A licensee who meets all of the following requirements may apply to the department for a small producer event sales license:
(A) The applicant holds a valid annual
state cultivation license.
(B) The applicant holds a valid license, permit, or other authorization issued by a local jurisdiction that authorizes the licensee to engage in cannabis cultivation.
(C) The applicant is in compliance with all applicable labor peace agreement requirements pursuant to paragraph (5) of subdivision (a) of Section 26051.5.
(D) On and after January 1, 2025, and until January 1, 2027, inclusive, the applicant satisfies all of the following:
(i) The applicant cultivates no more than 10,000 square feet of cannabis, inclusive of all licensed premises.
(ii) The applicant cultivates no more than 5,000 square feet of cannabis under a mixed-light tier 1 cultivation license or licenses, inclusive of all licensed premises.
(iii) The applicant cultivates no more than 2,500 square feet of cannabis under a mixed-light tier 2 or indoor cultivation license or licenses, inclusive of all licensed premises.
(E) On and after January 1, 2027, the applicant satisfies all of the following:
(i) The applicant cultivates no more than one acre of cannabis, inclusive of all licensed premises.
(ii) The applicant cultivates no more than 22,000 square feet of cannabis under a mixed-light tier 1 cultivation license or licenses, inclusive of all licensed premises.
(iii) The applicant cultivates no more than 5,000 square feet of cannabis under a mixed-light tier 2 or indoor cultivation license or licenses, inclusive of all licensed premises.
(2) Notwithstanding the limitations in subparagraph (D)
of paragraph (1), a licensee who holds a valid state cultivation license may apply to the department for a small producer event sales license
before January 1, 2027, if that applicant satisfies both of the following:
(A) The applicant is a local equity applicant or licensee, as defined in Section 26240.
(B) The applicant meets the requirements for cultivation size under subparagraph (E) of paragraph (1).
(3) The department shall not require an applicant to resubmit information already provided by the applicant for their state cultivation license, and shall not require an applicant to submit to background checks or other inspections already performed for approval of their state cultivation license.
(4) The department shall establish a process to facilitate the submission of applications pursuant to this subdivision.
(c) Retail sales of cannabis and cannabis products made by a small producer event sales licensee at state temporary events shall not exceed one hundred seventy-five thousand dollars ($175,000) in gross revenue per year. Beginning July 1, 2027, the department may increase this cap by regulation after reevaluating the cap in response to inflation and market conditions.
(d) (1) All cannabis or cannabis products sold by a small producer event sales licensee at a licensed state temporary event shall only contain cannabis cultivated by that licensee.
(2) Cannabis and cannabis products intended to be sold pursuant to paragraph
(1) shall be transported to the state temporary event venue by a distributor licensee in accordance with Section 26070.
(3) Except as otherwise provided in this section, a small producer event sales licensee shall comply with all requirements imposed on licensees selling cannabis or cannabis products at a state temporary event licensed pursuant to subdivision (e) of Section 26200.
(e) A cannabis event organizer licensee who submits an application for a state temporary event shall provide to the department a list of all small producer event sales licensees providing onsite sales of cannabis or cannabis products at the event pursuant to subparagraph (E) of paragraph (1) of subdivision (e) of Section 26200.
(f) The
department may take disciplinary action against a small producer event sales license, or any other licenses held by a small producer cannabis event sales licensee, for any violation of the requirements applicable to state temporary events.
(g) Upon completion or cessation of the temporary event, a small producer event sales licensee may reconcile unsold inventory of cannabis or cannabis products and return it to a licensed distributor pursuant to the all of the following:
(1) Any unsold inventory of cannabis or cannabis products from the temporary event shall be noted in track and trace, as specified in Chapter 6.5 (commencing with Section 26067), before transport.
(2) Any unsold inventory of cannabis or
cannabis products from the temporary event shall be in its original packaging in which it was placed pursuant to Chapter 12 (commencing with Section 26120).
(3) Cannabis or cannabis products returned pursuant to this section shall not be required to be retested before retail sale only if both of the following apply to the cannabis or cannabis product:
(A) It remains in its original packaging.
(B) The original certificate of analysis relating to the cannabis or cannabis product remains valid.
(h) Retail sales of cannabis or cannabis products by a small producer event sales licensee at a state temporary event shall be subject to the cannabis excise tax pursuant to Section 34011 of the Revenue and Taxation Code.
(i) This section does not limit the authority of local jurisdictions to regulate state temporary events pursuant to Section 26200, including the requirement for local jurisdiction authorization of state temporary events pursuant to subdivision (e) of Section 26200.
