Summary of New California Cannabis Laws

McAllister Garfield is highly active in the California cannabis industry as it transitions to full regulation, with lawyers in L.A. and Santa Cruz. California continues to clarify its rules through local and state regulation and also through new legislation. A brief summary of the cannabis-related bills signed into law in this year’s legislative session is provided below.

• AB 2020 allows local jurisdictions to license any venue they choose to host cannabis events (with consumption) where the former law and regulations only allowed such events on county fairgrounds or district agricultural associations. This bill substantially increases the availability of suitable venues to host cannabis related events.
• SB 311 greatly expands the reach of the cannabis distribution supply chain throughout California and removes the burden of having product re-tested after distributor to distributor transactions. Previously, distributors were only authorized to transfer final tested cannabis and cannabis products to licensed retailers, and any transfer of cannabis after testing to another licensee would trigger the requirement that the cannabis or cannabis products be re-tested.
• SB 1459 provides a path forward for existing businesses who have received their state temporary licenses (but not yet received their annual state licenses) to continue operating under the issued provisional licenses through 2019.
• SB 1294 creates a state-run social equity program which will provide technical assistance, grants and loans to persons who qualify under the program.
• AB 1741 removes the penalty for cannabis businesses who make tax payments of over $10,000 in cash.
• AB 2799 requires an applicant or renewing licensee to provide a statement showing one supervisor and one employee has completed a Cal-OSHA 30-hour general industry course. There is a one-year grace period to complete the training and provide a statement of completion.
• AB 2402 prohibits cannabis licensees from disclosing personal information of cannabis consumers to third-parties.
• AB 1793 creates a process which will automatically expunge or resentence prior cannabis convictions that were either made lawful under Prop 64 or have been reduced to infractions or misdemeanors.

If you have any questions concerning the updates to California’s cannabis laws, please contact the McAllister Garfield California cannabis legal team for more information.