Bill Text: CA AB1111 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Cannabis: small producer event sales license.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Engrossed) 2023-09-01 - In committee: Held under submission. [AB1111 Detail]

Download: California-2023-AB1111-Amended.html

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Amended  IN  Assembly  March 13, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 1111

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Introduced by Assembly Member Pellerin
(Principal coauthor: Assembly Member Wood)
(Principal coauthor: Senator McGuire)

February 15, 2023

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An act to amend Section 26011 of the Business and Professions Code, relating to cannabis. An act to add Section 26050.6 to the Business and Professions Code, relating to cannabis.

LEGISLATIVE COUNSEL'S DIGEST

AB 1111, as amended, Pellerin. Cannabis: appointees: prohibited activities. 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.

This bill would require the department to issue small producer event sales licenses that authorize the licenseholder to sell cannabis or cannabis products, containing cannabis cultivated by that licensee, at specified state temporary events licensed under the act. The bill would authorize a licensee who holds a valid 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 specify that a small producer event sales license is valid for no more than 32 total days of sales at temporary events per calendar year.

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.

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, prohibits the director of the Department of Cannabis Control (department) and any member of the Cannabis Control Appeals Panel from engaging in certain activities, including from receiving any commission or profit whatsoever, directly or indirectly, from any person applying for or receiving any license or permit, as described. Existing law, 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.

This bill would also prohibit individuals appointed by the Governor to specified positions in the department from engaging in those activities.

Digest Key

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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Bill 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) The department shall issue a small producer event sales license for use at state temporary events licensed pursuant to subdivision (e) of Section 26200.

(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 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 satisfies all of the following:

(i) The applicant cultivates no more than one acre of cannabis under outdoor cultivation license(s), inclusive of all licensed premises.

(ii) The applicant cultivates no more than 22,000 square feet of cannabis under mixed-light tier 1 cultivation license(s), inclusive of all licensed premises.

(iii) The applicant cultivates no more than 5,000 square feet of cannabis under mixed-light tier 2 and indoor cultivation license(s), inclusive of all licensed premises.

(2) Notwithstanding the limitations in subparagraph (C) of paragraph (1), a licensee who holds a valid state cultivation license may apply to the department for a small producer event sales license if they are an equity applicant or licensee, as defined in Section 26249.

(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) A small producer event sales license shall be valid for no more than 32 total days of sales at temporary events per calendar year.

(d) (1) All cannabis or cannabis products sold by a small producer event sales licensee at a licensed 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 cannabis 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.

SEC. 2.

 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.

SECTION 1.Section 26011 of the Business and Professions Code is amended to read:

26011.

The director, an individual appointed by the Governor pursuant to paragraph (2) of subdivision (c) of Section 26010.5, and any member of the Cannabis Control Appeals Panel established under Section 26040 shall not do any of the following:

(a)Receive any commission or profit whatsoever, directly or indirectly, from any person applying for or receiving any license or permit under this division.

(b)Engage or have any interest in the sale or any insurance covering a licensee’s business or premises.

(c)Engage or have any interest in the sale of equipment for use upon the premises of a licensee engaged in commercial cannabis activity.

(d)Knowingly solicit any licensee for the purchase of tickets for benefits or contributions for benefits.

(e)Knowingly request any licensee to donate or receive money, or any other thing of value, for the benefit of any person whatsoever.