By Lauren Mendelsohn
March 15, 2023
Cannabis-related events have been happening in California for many years. The State’s governing cannabis law, the Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), and the regulations issued by the Department of Cannabis Control (DCC), allow such activities provided that applicable guidance is followed. We’ve had the honor of representing clients in connection with multiple cannabis events over the past few years, including the Emerald Cup Harvest Ball and the Power of Flower Festival, and thus have experienced these rules first-hand.
The laws and regulations governing cannabis events in California are codified in Business & Professions Code §26200 and 4 CCR §§ 15600-15604, respectively.We previously wrote about cannabis events here. Much of what was stated in that blog post is still true, but there have been some notable changes in the interim.
First, to summarize the basics:
- A “Temporary Cannabis Event” (typically referred to simply as a “Licensed Cannabis Event” or simply a “Cannabis Event”) is a state-and-locally-approved event that includes onsite cannabis sales and consumption.
- A Temporary Cannabis Event license is required for each Temporary Cannabis Event, and each such event may span no longer than four (4) consecutive days.
- Temporary Cannabis Events can take place at a county fairground, district agricultural association, or any other venue approved by the local jurisdiction.
- In order to apply for a Temporary Cannabis Event license, one must first hold a “Cannabis Event Organizer” license.
- A Cannabis Event Organizer license authorizes the holder to organize Temporary Cannabis Events, but does not allow the holder to engage in other forms of commercial cannabis activity.
- Holders of Cannabis Event Organizer licenses may hold other types of cannabis licenses.
- Only persons 21 years of age and older may purchase and consume cannabis at Temporary Cannabis Events.
- A Temporary Cannabis Event premises cannot include an area licensed for alcohol or tobacco sales.
- Licensed cannabis businesses may participate in a Temporary Cannabis Event in various ways, but only licensed retailers may sell cannabis to attendees at the event.
- Cannabis goods sold and displayed at a Temporary Cannabis Event must comply with the DCC’s regulations.
- Advertising and marketing restrictions still apply at Temporary Cannabis Events.
- Licensed Cannabis Event Organizers are responsible for ensuring that the applicable laws and regulations at a Temporary Cannabis Event are followed.
- Events that are purely educational in nature, without any sale or consumption of cannabis, do not require a license from the DCC.
Below are some recent updates to the rules governing cannabis events in California.
Modifications to Application and Operational Requirements
Previously, applicants for a Temporary Cannabis Event had to provide a list of all of the employees for every vendor who will be participating in the event. That requirement has since been eliminated, though a full list of participating vendors and licensees must still be submitted to the DCC no less than 72 hours before the event. (4 CCR §15601(g).)
All employees of participating licensees must wear an employee badge that includes, at minimum, the “licensee’s “doing business as” name and license number, the employee’s first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee’s face and that is at least 1 inch in width and 1.5 inches in height.” (4 CCR §15043.) This is a relatively new rule – originally the badge requirement only applied to retail employees, yet the current version applies to all employees of licensees participating in a Temporary Cannabis Event even if they are employed by a licensed cultivator or manufacturer who is simply displaying their products.
Applicants for a Temporary Cannabis Events must now identify a limited-access area on the event premises diagram that is accessible only to the DCC, and then must provide the DCC with exclusive access to that area at the event. (4 CCR §15601(n).)
Participation in Temporary Cannabis Events by Non-Retail Licensees
A new regulation adopted in November 2022 addresses the question of non-retail licensees participating in a Temporary Cannabis Event. Prior to adoption of this rule, the only potential way for non-retail licensees such as cultivators and manufacturers to participate in such an event (other than as an attendee) was to display personal amounts of their cannabis goods in accordance with 4 CCR §15604. However, this proved to be unworkable, so §15603.1 was created.
This new rule sets clear limitations on how and in what quantities non-retail licensees may display their cannabis goods at Temporary Cannabis Events:
4 Cal. Code of Regs. §15603.1. Participation in Temporary Cannabis Events by Non-Retail Licensees.
(a) Licensees who are not retailers may participate in licensed temporary cannabis events and may display cannabis or cannabis products in accordance with the following:
(1) Cannabis or cannabis products displayed shall not exceed the following amounts: (A) 85.5 grams of non-concentrated cannabis.
(B) 24 grams of cannabis concentrate.
(C) 18 immature plants.
(D) 21 seeds.
(2) Cannabis or cannabis products may be provided to attendees of the event for inspection and educational purposes only. Cannabis and cannabis products used for display shall comply with the provisions in subsections (b) and (c) of section 15405.
(3) Cannabis and cannabis products for display purposes by non-retail licensees only may be brought to the licensed event by the licensee or their employees. However, no individual shall transport an amount of cannabis or cannabis products that exceeds the possession limits established in section 11362.1 of the Health and Safety Code unless such individual is a licensed distributor or their employee transporting in a distribution vehicle.
(b) Licensees may display non-cannabis containing items such as cannabis accessories, packaging materials, promotional materials, and branded merchandise.
(c) Licensees may sell branded merchandise and cannabis accessories in compliance with local and state laws governing the sale of goods.
Authority: Section 26013, Business and Professions Code. Reference: Section 26013, Business and Professions Code.
While there are still some kinks to work out – for example, the individual possession limit in Health and Safety Code §11362.1 is less than the amount that a non-retail licensee is able to display under 4 CCR §15603.1 (one ounce versus 85.5 grams), meaning that multiple employees or representatives of the licensee would be needed to transport the cannabis goods if the licensee wishes to display the maximum allowed amount – this is still a major improvement over the previous rules.
Educational or Informational Cannabis Events
It’s important to note that events that are purely educational in nature, without any sales or consumption of cannabis, do not require a license from the DCC. At such events, personal amounts of cannabis may be displayed for educational or informational purposes. (4 CCR §15604.)
New Guidance for Cannabis Events
TheDCC has a new page on their websitewhere licensees and the public can find information about licensed cannabis events, as well as review a list of Frequently Asked Questions.
We anticipate that cannabis events will continue to grow in popularity, along with the cannabis tourism and experiences sector overall, over the coming years. Stay tuned to our blog for future updates on this topic.
This information is provided as a public educational service and is not intended, nor should be construed as, legal advice. For specific questions regarding cannabis events in California, contact the Law Offices of Omar Figueroa at 707-829-0215 or[email protected]to schedule a confidential consultation.
