AB 2312 Cannabis: state temporary event licenses: venues licensed by the Department of Alcoholic Beverage Control: unsold inventory

This bill is part of the 2020 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years. 

AB 2312  (Quirk D)   Cannabis: state temporary event licenses: venues licensed by the Department of Alcoholic Beverage Control: unsold inventory

The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, imposes duties on the Bureau of Cannabis Control in the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health with respect to the creation, issuance, denial, suspension, and revocation of licenses issued pursuant to MAUCRSA. 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 it engages in commercial cannabis activity.

MAUCRSA 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, or at another venue expressly approved by a local jurisdiction, provided that certain other requirements are met. Under existing administrative law, the bureau may issue a state temporary cannabis event license to allow retailers and microbusinesses to make onsite sales of cannabis goods at a cannabis event, as specified, but prohibits the issuance of a state temporary cannabis event license for a premise that is licensed for the sale of alcohol or tobacco and prohibits the sale and consumption of alcohol and tobacco on the licensed temporary cannabis event premises. Under existing administrative law, all cannabis waste generated at a temporary cannabis event is required to be collected and destroyed, as specified.

The Alcoholic Beverage Control Act, administered by the Department of Alcoholic Beverage Control, regulates the issuance of licenses for the manufacture, distribution, and sale of alcoholic beverages within the state.

This bill would specifically authorize the Bureau of Cannabis Control to issue a state temporary event license to a retail licensee under MAUCRSA authorizing onsite cannabis retail sales of cannabis or cannabis products to, and consumption by, persons 21 years of age or older at an event held at a venue that is licensed by the Department of Alcoholic Beverage Control pursuant to the Alcoholic Beverage Control Act if the activities comply with specified requirements, including that the local jurisdiction authorized the event and onsite sales and consumption of cannabis or cannabis products may only occur in a separate and distinct area from alcohol sales and consumption. The bill would allow the bureau to 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 and to impose a civil penalty for violations, in an amount up to 3 times the amount of the license fee for each violation.

The bill would also allow licensees who are issued any state temporary event license by the bureau to, upon completion or cessation of the temporary event, reconcile unsold inventory of cannabis or cannabis products and return it to the licensee’s retail premises.

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.

Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.

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