Bill Text: CA AB1126 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Cannabis: citation and fine.

Spectrum: Bipartisan Bill

Status: (Passed) 2023-10-08 - Chaptered by Secretary of State - Chapter 563, Statutes of 2023. [AB1126 Detail]

Download: California-2023-AB1126-Amended.html

Amended  IN  Senate  July 13, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 1126


Introduced by Assembly Member Lackey

February 15, 2023


An act to amend Section 26031.5 of add Section 26031.6 to the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 1126, as amended, Lackey. Cannabis: citation and fine.
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities under the jurisdiction of the Department of Cannabis Control.
Under existing law, the Department of Cannabis Control is authorized to issue a citation to a licensee or unlicensed person for any act or omission that violates or has violated any provision of specified statutes or regulations. Existing law authorizes the department to assess an administrative fine not to exceed $5,000 per violation by a licensee and $30,000 per violation by a unlicensed person.
This bill would specify that a citation may be for a claim or representation of a product as licensed cannabis without a license, including the unlicensed use of the cannabis universal symbol. make the possession of the universal symbol in connection with a commercial activity a violation, as described, and would make each individual package, label, advertisement, or other object bearing the universal symbol a separate violation. The bill would make an exception for the educational, informational, or other noncommercial use or possession of the universal symbol.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 26031.6 is added to the Business and Professions Code, to read:

26031.6.
 (a) It is a violation of this division for a person to use or possess the universal symbol described in paragraph (7) of subdivision (c) of Section 26130 in connection with commercial activity other than commercial cannabis activity licensed under this division. For purposes of this section, use or possession of the universal symbol in connection with commercial activity includes, but is not limited to, possession of any package, label, or advertisement of any kind bearing the universal symbol, whether or not that package, label, or advertisement is affixed to, or otherwise associated with, cannabis or cannabis products.
(b) Each individual package, label, advertisement, or other document or object of any kind bearing the universal symbol in violation of this section shall constitute a separate violation of this section.
(c) This section does not prohibit the educational, informational, or other noncommercial use or possession of the universal symbol.

SECTION 1.Section 26031.5 of the Business and Professions Code is amended to read:
26031.5.

(a)The department may issue a citation to a licensee or unlicensed person for any act or omission that violates or has violated any provision of this division or any regulation adopted pursuant thereto. The citation may be for a claim or representation of a product as licensed cannabis without a license, including the unlicensed use of the cannabis universal symbol. The department shall issue the citation in writing, and shall describe with particularity the basis of the citation and the notification described in subdivision (c). The department may include in each citation an order of abatement and fix a reasonable time for abatement of the violation. The department may, as part of each citation, assess an administrative fine not to exceed five thousand dollars ($5,000) per violation by a licensee and thirty thousand dollars ($30,000) per violation by an unlicensed person. Each day of violation shall constitute a separate violation. In assessing a fine, the department shall give due consideration to the appropriateness of the amount of the fine with respect to factors the department determines to be relevant, including the following:

(1)The gravity of the violation by the licensee or person.

(2)The good faith of the licensee or person.

(3)The history of previous violations.

(b)The sanctions authorized under this section shall be separate from, and in addition to, all other administrative, civil, or criminal remedies.

(c)A citation issued pursuant to this section shall include a provision that notifies the licensee or person that a hearing may be requested to contest the finding of a violation by submitting a written request within 30 days from service of the citation. The hearing shall be held pursuant to the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), unless held in accordance with the provisions of Chapter 4.5 (commencing with Section 11400) as authorized by regulation of the department. If the licensee or person cited fails to submit a written request for a hearing within 30 days from the date of service of the citation, the right to a hearing is waived and the citation shall be deemed a final order of the department and is not subject to review by any court.

(d)After the exhaustion of the administrative and judicial review procedures, the department may apply to the appropriate superior court for a judgment in the amount of the administrative fine and an order compelling the cited person to comply with the order of the department. The application, which shall include a certified copy of the final order of the department, shall constitute a sufficient showing to warrant the issuance of the judgment and order.

(e)The department may recover from the licensee or person who was the subject of the citation costs of investigation and enforcement, which may include reasonable attorney’s fees for the services rendered. If the department recovers costs from a licensee, the department shall recover the costs pursuant to Section 26031.1.

(f)Fines shall be paid within 30 days of service of a citation by the department. Failure to pay a fine assessed pursuant to this section within 30 days of the date of service of the citation, unless the citation is being appealed, shall constitute a separate violation under this division subject to additional action by the department. The department shall not renew or grant a license to a person who was the subject of the fine until that person pays the fine.

(g)All moneys collected pursuant to this section associated with the recovery of investigation and enforcement costs shall be deposited into the Cannabis Control Fund. Any administrative fine amount shall be deposited directly into the Cannabis Fines and Penalties Account and shall be distributed pursuant to subdivision (d) of Section 26210.

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