California Senate lawmakers have advanced a bill that would grant small cannabis cultivators a new license to sell directly to consumers at state-run farmers’ markets and other transient events. Additionally, the bill would allow adults to use cannabis at events that have been approved.
The bill does not, however, imply that small marijuana farmers can openly sell their goods at farmers’ markets alongside other merchants. Cannabis sales in approved locations would require certain regulatory permits from state and local authorities.
The assembly initially approved the bill in May, where it received overwhelming support before heading to the senate. The bill is now poised for a full senate vote after passing through two senate committees.
If the senate approves it, the bill will return to the assembly for approval of the senate’s amendments. One key amendment states that license holders may only offer products for sale and permit on-site consumption at temporary events organized by the state, not at other kinds of temporary gatherings.
Temporary event licenses would be issued by the Cannabis Control Department (DCC). With these permits, those 21 years of age and older would be able to purchase cannabis and consume it on-site at establishments that have local approval.
These activities require permission from local governments, and licenses would only be granted to those who meet the requirements for small-scale cannabis production. This group of growers consists of individuals who grow no more than an acre of marijuana or those who have mixed-light tier 1 or tier 2 permits, each of which has a maximum square footage requirement.
The measure expands on a 2018 California state law that authorized cannabis event permits for a limited time in locations where municipal governments have granted permission. For the first time, marijuana sales and on-site consumption were made possible by the 2018 law at gatherings such as the California State Fair. The new rule would give small-scale producers that obtain the required permits the same sales chances as licensed shops, which are now permitted to sell their products.
In parallel developments, a more comprehensive legislative proposal aimed at overhauling California’s hemp and cannabis regulations seems to have stalled. A committee in the senate failed to bring the proposal to a vote before the deadline, leaving its future uncertain.
The plan, backed by Governor Gavin Newsom, included an amendment that would have integrated hemp-derived products into the state’s licensed cannabis market. Additionally, it aimed to permit hemp farmers from other states to market their goods in California.
This new legislation breaks new ground, and many cannabis companies such as Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB) will be watching to see if other jurisdictions also take up this approach of helping smaller cannabis growers to access the final consumers of their products.
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