Cannabis Events – Event Organizer Licensing

Cannabis Events – Event Organizer Licensing

The role of Cannabis Events – Event Organizer Licensing fills is challenging for the industry. They essentially become the “glue” for marketing events and conferences.

An Event Organizer License is required to stage Temporary Events

Temporary Event

  • Temporary event up to 4 days
  • Allows on-site sale and  consumption of cannabis goods

Requirements

  • The organizer of the event must first obtain a Cannabis Event Organizer license
  • Sales of cannabis goods must be performed by a retailer  or microbusiness approved to engage in retail
  • Access to the area(s) where sales and/or consumption  occurs is restricted to persons 21 years of age or older
  • Consumption of alcohol or tobacco is not allowed on the  premises
  • Onsite consumption of cannabis goods must be done in  accordance with the local jurisdiction’s requirements
  • Security must be present at the event

What are the provisions applicable to Cannabis Events and Event Organizers?

Cannabis Event – Organizer License Requirements

Cannabis Event – Organizer License Requirements – § 5600. Cannabis Event Organizer License

(a) To obtain a temporary cannabis event license, the event organizer must first apply for and obtain a cannabis event organizer license.

(b) Cannabis event organizers licensed under this section shall comply with chapter 1 of this division with the exception of sections 5001-5002; 5006-5008, 5010, 5016, 5019, 5025-5029, 5032-5034, and 5042-5055.

(c) A cannabis event organizer licensee is not authorized or licensed to cultivate, distribute, manufacture, or retail cannabis ar cannabis products without first obtaining the appropriate licenses or authorizations to engage in such commercial cannabis activities.

(d) A cannabis event organizer shall comply with the records retention provisions of section 5037 of this division. Records sha11 be kept by the caimabis event organizer in a manner that allows the records to be produced for the Bureau in either hard copy or electronic form, whichever the Bureau requests. Failure to produce records upon the Bureau’s request may result in disciplinary action against the cannabis event organizer license. and/or denial of a temporary cannabis event license.

(e) Cannabis event organizer applications maybe completed online at www.bcc.ca.gov or by delivering a printed copy to the Bureau’s office(s).

(f) Applicants who submit their applications online shall first register for a user account as provided by section 5002(b) of this division.

(g) An application must be completed by an owner as defined by the Business and Professions Code section 26001

(h). An application for cannabis event organizer licensure includes the following:

(1) The name of the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business name of the applicant.

(2) If applicable, the business trade name (“DBA”) of the applicant

(3) Whether the owner is serving or has previously served in the military. Disclosure of military service is voluntary. An applicant who has served as an active duty member of the Armed Forces of the United States and was honorably discharged and who can provide evidence. of such honorable discharge shall have his or her application expedited pursuant to Business and Professions Code section 115.4. (

4) A list of the license types and the license numbers issued from the Bureau and all other state cannabis licensing authorities that the applicant holds, including the date Che license was issued and the licensing authority that issued the license.

(5) Whether the applicant has been denied a license or has had a license suspended or revoked by the Bureau or any other state cannabis licensing authority. The applicant shall provide the type of license applied for, the name of the licensing authority that denied the. application, and the date of denial

(6) The mailing address. for the applicant….

(7) The telephone number for the applicant.

(8) The website address of Che applicant’s business;if applicable.

(9) The email address for the applicant’s business.

(10) Contact information for the applicant’s designated primary contact person including the name, title, phone number, and email address of the individual.

(11) A description of the business organizational structure of the applicant, such as partnership or corporation.

(12) The business-formation documents, which may include, but are not limited to, articles of incorporation, operating agreements, partnership agreements, and fictitious business name statements. The applicant shall also provide all documents filed with the California Secretary of State, which may include, but are not limited to, Articles of incorporation, certificates of stock, articles of organization, certificates of limited partnership, and statements of partnership authority.

(13) A list of every fictitious business name the applicant is operating under including the address where the business is located.

(14) An applicant that is a fareign corporation shall include in its application the certificate of qualification issued by the California Secretary of State under Corporarions Code section 2105.

(15) The applicant shall supply the following financiaitnformation:

(A) A list of funds belonging to the applicants cannabis event organizing business held in savings, checking, or other accounts maintained by a financial institution. The applicant shall provide, for each account, the financial institution’s name, the financial institution’s address, account type, account number., and the amount of money in the account.

(B) A list of loans made. to the applicant for its use in cannabis event organizing activities. For each loan, the applicant shall provide the amount of the loan, the date of the loan, terms) of the loan, security provided for the loan, and the name, address, and phone number of the lender.

(C) A list. of investments made into the applicant’s cannabis event organizing activities. For each inveshnent, the applicant shall provide the amount of the investment, the date of the investment, terms) of the inveshnent, and the name, address, and phone number of the investor.

(D) A list of all gifts of any kind given to the applicant for its use in cannabis event organizing activities. For each gift, the applicant shall provide the value of the giR or description of the gift, and the name, address, and phone number of the provider of the gift.

(16) A complete list of every individual that has a financial interest in the cannabis event organizing business as defined in section 5004 of this division, who is not an owner as defined in Business and Professions Code section 26001(al).

(17) A complete list of every owner of the applicant as defined in Business and Professions Code section 26001(a). Each individual pained on this list shall submit the following information:

(A) The full name. of the owner.

(B) The owner’s title within the applicant entity.

(C) The owner’s date of birth and place of birth.

(D) The owner’s social security number or individual taxpayer identification number.

(E) The owner’s mailing address.

(F) The owner’s telephone number. This may include a number for the owner’s home, business, ar mobile telephone.

(G) The owner’s email address.

(H) The owner’s current employer.

(I) The percentage. of the ownership interest held in the applicant entity by the owner.

(J) Whether the owner has an ownership or a financial interest as defined in sections 5003 and 5004, respectively, of this division in any other commercial cannabis business licensed under the Act.

(K) A copy of the owner’s government-issued identification. Acceptable forms of identification are a document issued by a federal, state, county, or municipal govermiient that includes the name, date of birth, physical description, and pichue of the person, such as a driver license.

(L) A detailed description of the owner’s convictions. A conviction within the meaning of this section means a plea or verdict of guilty or a conviction following a plea of nolo contendere. Convictions dismissed under Penal Code section 1203.4 or equivalent non-California law must be disclosed. Convictions dismissed under Health and Safety Code section 11361.8 or equivalent non-California law must be disclosed. Juvenile adjudications and traffic infractions under $300 that did not involve alcohol, dangerous drugs, or controlled substances do not need to be included. For each conviction, the owner shall provide the following:

(i) The date of conviction

(ii) Dates of incarceration, if applicable.

(iii) Dates of probation, if applicable.

(iv) Dates o£parole, ifapplicable.

(v) A detailed description of the offense for which the owner was convicted.

(vi) A statement of rehabilitarion for each conviction. The statement of rehabilitation is to be written by the owner and may contain evidence that the owner would like the Bureau to consider that demonstrates the owner’s fitness for licensure. Supporting evidence may be attached to the statement of rehabilitation and may include, but is not limited to, a certificate of rehabilitation under Penal Code section 4852.01, and dated letters of reference from employers, instructors, or professional counselars that contain valid contact information. for the individual providing the reference.

(M) If applicable, a detailed description of any suspension of a commercial cannabis license, revocation of a commercial cannabis license, or sanctions for unlicensed commercial cannabis activity by a licensing authority or local agency against the applicant or a business entity in which the applicant was an owner or officer within the three years immediately preceding the date of the. application.

(N) Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within uid submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.

(18) For an applicant with 20 or more employees, the applicant sha11 attest that the applicant has entered into a labor peace agreement and will abide by the terms of the agreement, and the applicant shall provide a copy of the agreement to the Bureau. For applicants who have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating the applicant will enter into and abide by the terms of a labor peace agreement.

(19) The limited waiver of sovereign immunity required by section 5009 of this division, if applicable.

Proposed Regs. – October 19, 2018

Subsection (b) has been revised to correct grammatical issues. Additionally, the section numbers indicating the regulation sections a temporary event organizer is exempt from has been amended to indicate the correct section numbers.

Subsection (d) has been revised to add the word licensee in order to provide additional clarity. In addition, a grammatical error was corrected in this subsection. This is necessary because it assures terminology consistency throughout the Bureau’s proposed regulations.

Subsection (g) has been revised to change the source for the definition of the term “owner” from the statutory definition to the definition provided in section 5003 of the proposed regulations. The revision is necessary because the definition provided in the regulations provides more clarification than is provided in the statutory definition. Additionally, amendments were made to correct grammatical errors.

Subsection (g)(14) has been revised to include bylaws in the list of business-formation documents and clarified that for trusts the Bureau must receive a copy of the certificate of trust establishing trustee authority. These changes are necessary for clarity and consistency with the section on annual applications.

Subsection (g)(16) has been revised to include a certificate of registration or certificate of status in addition to a certificate of qualification. This change is necessary for consistency with the annual application requirements. The Bureau determined that not all foreign corporations would have a certificate of qualification, and thus amended the section to include the other certificates that a foreign corporation is issued by the Secretary of State. This subsection also made a grammatical change and amended “Secretary of State of California” to “California Secretary of State” for consistency with other regulations that reference this office.

Subsection (g)(18) has been revised to change the source for the definition of the term “owner” from the statutory definition to the definition provided in section 5003 of the proposed regulations. The revision is necessary because the definition provided in the regulations provides more clarification than is provided in the statutory definition.

Subsection (g)(19) has been revised to change the source for the definition of the term “owner” from the statutory definition to the definition provided in section 5003 of the proposed regulations. The revision is necessary because the definition provided in the regulations provides more clarification than is provided in the statutory definition.

Subsection (g)(22) has been added to require applicant’s to provide their State Employer Identification Number (SEIN) issued by the California Employment Development Department. This number is necessary to ensure that all applicants that are required to obtain such a number have obtained it and are thus, in compliance with California law. It also assures consistency with the Bureau’s annual application requirements.

Subsection (g)(23) has been added to require applicants with more than one employee, to attest   that they currently employ, or will employ within one year of receiving a license, at least one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center. This addition is necessary to align with approved and filed Assembly Bill 2799, amending Business and Professions Code section 26051.5 to include such a requirement.  This will also provide the Bureau a comprehensive application and the necessary attestations to ensure that the applicant is fit for licensure.

Authority: Sections 115.4 and 26013, Business and Professions Code. Reference: Sections 115.4, 144, 26012 and 26200; Business and Professions Code.

§ 5601. Temporary Cannabis Event License

(a) A temporary cannabis event license shall only be issued to a person who holds a cannabis event organizer license issued by the Bureau.

(b) Violations of the requirements applicable to temporary cannabis events may result in disciplinary action against the cannabis event organizer license or any other licenses held by a licensee participating in the cannabis event and responsible for the violation under Business and Professions Code section 26070.5.

(c) No temporary cannabis event license will be issued for more than 4 days. Temporary cannabis event licenses will not be issued sepazately for consecutive days for the same event.

(d) An application for a temporary cannabis event license shall be submitted to the Bureau no less than 60 days before the first day of the cannabis event. An application for a temporary cannabis event license shall include the following:

(1) The name o£the applicant. For applicants who are individuals, the applicant shall provide both the first and last name of the individual. For applicants who are business entities, the applicant shall provide the legal business mane of the applicant.

(2) The license number for each state cannabis license held by the applicant.

(3) The address of the county fair or district agricultural association where the event will take place.

(4) The name of the event.

(5) A diagram of the physical layout of the event. The diagram sha11 clearly indicate where the cannabis event will betaking place on the grounds of the event’s location, all cannabis consumption areas, all areas where cannabis goods will be sold, and the specific location of each cannabis licensee who will be participating in the event. The diagram shall not contain highlighting and the markings on the diagram shall be inblack-and-white print.

(6) The dates for which the temporary cannabis event license is being sought. A temporary event license is required for any date in which the applicant engages in onsite cannabis sales or allows onsite cannabis consumption.

(7) Contact information for the applicant’s designated primary contact person regarding the temporary event license, including the name, title, address, phone number, and email address of the individual

(8) Written approval from the local jurisdiction authorizing the applicant to engage in onsite cannabis sales to, and onsite consumption by, persons 21 years of age or older at the event.

(9) A list of all licensees that will be providing onsite sales of cannabis goods at the event.

(10) Attestation to the following statement: Under penalty of perjury, I hereby declare that the information contained within and submitted with the application is complete, true, and accurate. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the license, or revocation of a license issued.

(e) If the list of licensees participating in the event changes after the application is submitted or after the license is issued, the applicant shall submit a final list to the Bureau no less than 5 days before the event. Licensees not on the list may not participate in the event.

Proposed Regs. – October 19, 2018

Subsection (c) has been revised to indicate that the licensed organizer would be responsible for any violation of any requirement within the regulations or the Act committed by any licensee participating in the event. Prior to this proposed amendment, the regulation only listed violations of Business and Professions Code section 26070.5. The Business and Professions Code section was placed there in error. This amendment corrects the error.

Subsection (e) has been revised to clarify that the 60-day requirement is 60 calendar days. Prior to this proposed amendment, it was unclear how licensees were to calculate the 60-day requirement.

Subsection (f) has been revised to allow a temporary cannabis event to take place at any venue expressly approved by the local jurisdiction. This amendment is necessary to align with approved and filed Assembly Bill 2020, amending Business and Professions Code section 26200 to enable licensed temporary cannabis events to take place at any venue expressly approved by the local jurisdiction.

Subsection (h)(9) has been deleted to remove the requirement that a cannabis waste management plan be provided with the application. This change is necessary to be consistent with changes regarding cannabis waste. The remainder of subsection (g) has been renumbered to reflect the deletion of subsection (h)(9).

Subsection (h)(10) is now (h)(9) and has been revised to clarify that authorization from the local jurisdiction must also specify that the applicant is authorized to hold the event at the specific location. This amendment is necessary due to new provisions created by the passage of Assembly Bill 2020 which allows temporary cannabis events to be held at any location that have been explicitly approved by the local jurisdiction.

Subsection (h)(11) and (h)(12) have been renumbered to (h)(10) and (h)(11) respectively.

Subsection (i) has been revised to incorporate by reference new Notification and Request Form, BCC-LIC-027- (New 10/18), for licensees to use in providing to the Bureau notifications that are required under this section. This form is necessary to provide clear guidance to licensees on what information must be provided to the Bureau to request a premises modification. The form also streamlines the notification process by assuring that applicants are able to fulfill its notification requirements without having to complete additional paperwork.

Subsection (j) has been revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment provides additional clarity and assures terminology consistent throughout the regulations.

Subsection (k) was revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment provides additional clarity and assures terminology consistent throughout the regulations.

Subsection (l) was revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment provides additional clarity and assures terminology consistent throughout the regulations. Subsection (l) has also been amended to remove the reference to section 5055. Section 5055 has been removed from the division.

Subsection (m) was revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment provides additional clarity and assures terminology consistent throughout the regulations.

Subsection (n) has been added to notify licensees who are participating in a temporary cannabis event that the Bureau may require all participants to cease operations to protect public health and safety. This addition was necessary to reflect new language that was added to the Business and Professions Code section 26200 by Assembly Bill 2020. The amended language of the statute is duplicated in this regulation to provide additional clarity to licensees regarding the terms and requirements for organizing and participating in a licensed temporary cannabis event.

Subsection (o) has been added to notify licensed event organizers that they must expel from the event any person who is engaging in the unlicensed sale of cannabis goods. This addition was necessary to reflect new language that was added to the Business and Professions Code section 26200 by Assembly Bill 2020. The amended language of the statute is duplicated in this regulation to provide additional clarity to licensees regarding the terms and requirements for organizing and participating in a licensed temporary cannabis event. This subsection also requires the event organizer or their representative shall remain with a person being expelled at all times until the person vacates the premises. This is necessary to ensure that the person being expelled does actually leave the premises as required.

Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business and Professions. Code.

§ 5602. Temporary Cannabis Event Sales

(a) Prior to selling cannabis goods. to a customer, the licensee shall verify that. the customer is 21 years of age or older.

(b) Each sale at a cannabis event shall be-performed by a retailer or microbusiness authorized to sell cannabis to retail customers. The cannabis event organizer may also sell cannabis goods at the temporary cannabis event if the organizer separately holds a license authorizing the retail sale of cannabis goods.

(c) All sales at a cannabis event shall occur on the dates stated on the license and shall occur aY the location stated on the license. All onsite sales of caiuiabis goods must comply with the requirements of section 5403, subsection (a), of this division.

(d) Sale or consumption of alcohol or tobacco shall not be allowed on the cannabis event premises.

(e) The cannabis goods sold onsite at a cannabis event shall be transported to the site by a distributor.

(f) All cannabis goodataC a cannabis event shall be in compliance with all requirements for laboratory testing and labeling within this division.

(g) All cannabis goods at a cannabis event shall be in compliance with all track and trace requirements.

(h) All cannabis goods used for display at a cannabis event sha11 be in compliance with the requirements of section 5405, subsections (a), (c) and (d), of this division.

(i) All cannabis goods sold at a cannabis event shall be placed in an exit package pursuant to section 5413 of this division.

(j) A11 customer returns of cannabis goods at a cannabis event shall be made in compliance with section 5410 of this division.

(k) The daily sales limits under section 5409 of this division apply to sales made at a cannabis event.

(l) A retailer shall only provide free cannabis goods to a person at a cannabis event if the retailer complies with all requirements of section 5411 of this division.

(m) The cannabis event organizer who holds the temporary cannabis event license shall be responsible for ensuring that all rules and requirements for the onsite sale of cannabis goods are followed.

Proposed Regs. – October 19, 2018

Subsection (c) has been revised to clarify that licensed retailers, licensed non-storefront retailers, and licensed microbusinesses that have been authorized to engage in retail sales may sell cannabis goods at a licensed temporary cannabis event. Prior to this proposed amendment, the language of the regulation indicated that only a licensed retailer may engage in sales at a licensed cannabis event. This amendment is necessary because it provides additional clarity regarding the specific license types that may engage in the sale of cannabis goods at a licensed cannabis event.

Subsections (i) and (j) have been revised to clarify that all cannabis goods available for sale are subject to quality assurance and security requirements. Prior to this proposed amendment, all cannabis goods at a licensed cannabis event were subject to these requirements. This clarification is necessary to clarify that these requirements are intended to only apply to cannabis goods that are made available for sale.

Subsection (l) has been revised to simplify the requirement for cannabis goods sold at a temporary cannabis event. Rather than providing specific requirements in this subsection, the subsection now references section 5413 of this division. All sales of cannabis goods at a licensed cannabis event are required to comply with the requirements of section 5413. This revision is necessary to streamline the text of the regulation.

Subsection (p) has been revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment is necessary because it provides additional clarity and consistency of terms throughout the regulations.

Subsection (q) has been revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment is necessary because it provides additional clarity and consistency of terms throughout the regulations.

The reference section has been revised to correct a typographical error.

Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business and Professions Code.

§ 5603. Temporary Cannabis Event Consumption

(a) Access to the area where cannabis consumption is allowed shall be restricted to persons 21 years of age or older.

(b) The event organizer licensee shall ensure that cannabis consumption is not visible from any public place or non-age-restricted area.

(c) Sale or consumption of alcohol or tobacco shall not be allowed on the premises.

(d) The event organizer shall hire or contract for security personnel to provide security services at the licensed temporary cannabis event. All security personnel hired or contracted for by the licensee shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code.

(e) All requirements for onsite cannabis consumption imposed by the relevant local jurisdiction sha11 be followed.

(f) The cannabis event organizer, who holds the temporary cannabis event license, shall be responsible for ensuring that all rules and requirements for the on-site consumption of cannabis goods are followed.

(g) A cannabis event organizer and all other licensees participating in a cannabis event are required to follow all applicable requirements in this division pertaining to record keeping and waste management. (

h) Any compensation paid from a retailer to a cannabis event organizer for participation in a cannabis event shall not be determined based on, or tied to, the sale of cannabis goods.

Proposed Regs. – October 19, 2018

Subsection (e) has been revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment is necessary because it provides additional clarity and consistency of terms throughout the regulations.

Subsection (f) has been revised to specify that the regulation applies to licensed cannabis event organizers. This proposed amendment is necessary because it provides additional clarity and consistency of terms throughout the regulations.

Subsection (g) has been removed. Removal of subsection (g) was necessary because it was duplicative of language in sections 5602 and 5603.

Authority: Section 26013, Business and Professions Code. Reference: Section 26200, Business and Professions Code.

New Section

§ 5604. Informational or Educational Cannabis Events

This section has been added and clarifies that informational or educational cannabis events where no sales of cannabis goods or consumption of cannabis goods is occurring are not required to be licensed by the Bureau. The section also clarifies that a person may display cannabis goods for informational or educational purposes consistent with Health and Safety Code sections 11362.1 and 11362.77. This section is necessary because the Bureau has received multiple inquiries regarding requirements for these types of events and inquiries regarding a licensee’s ability to participate in such events.

Cannabis Event – Organizer License Requirements

Cannabis Licensing

Bureau of Cannabis Control

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