AMENDED IN SENATE JUNE 30, 2026
AMENDED IN SENATE JUNE 25, 2026
AMENDED IN ASSEMBLY APRIL 8, 2026
AMENDED IN ASSEMBLY MARCH 2, 2026
CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION
95
Introduced by Assembly Member Hart
February 20, 2026
An act to add Chapter 27 (commencing with Section 26350) to Division 10 of the Business and Professions Code, relating to cannabis.
Vote: 2/3 Appropriation: no Fiscal committee: yes Local program: no
LEGISLATIVE COUNSEL’S DIGEST
Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved by the voters 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. Existing law, 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 and establishes the Department of Cannabis Control to administer its provisions.
Existing law authorizes the Governor to enter into an agreement with another state or states authorizing medicinal or adult-use commercial cannabis activity, or both, between foreign licensees, who are licensed under the laws of the other state or states, and entities operating with a state license pursuant to MAUCRSA, provided that the commercial cannabis activities meet specified requirements, including meeting state license safety standards, as specified. Existing law prohibits the agreement from taking effect unless, among other things, federal law is amended to allow for, or the United States Department of Justice issues an opinion or memorandum allowing or tolerating, interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses.
This bill would similarly authorize the Governor, or their designee, to enter into an agreement with a federally recognized Indian tribe in this state authorizing medicinal or adult-use commercial cannabis activity, or both, between entities licensed under the laws of a contracting tribe, as defined, and entities operating with a state license pursuant to MAUCRSA, provided that the commercial cannabis activities are lawful and subject to licensure under the laws of the tribal government, as specified, and meet specified requirements. The bill would make these provisions subject to federal approval or toleration of interstate cannabis activity as described above.
This bill would make its provisions severable.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a ⅔ vote of the membership of both houses of the Legislature.
This bill would declare that its provisions further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
The people of the State of California do enact as follows:
SECTION 1.
Chapter 27 (commencing with Section 26350) is added to Division 10 of the Business and Professions Code, to read:
Chapter 27. Tribal Cannabis Agreements
Article 1. Definitions [26350-26350]
As used in this chapter, the following definitions apply:
(a) “Agreement” means an agreement relating to commercial cannabis authorized under this chapter and entered into between this state and a federally recognized Indian tribe located in this state.
(b) “Contracting tribe” means a federally recognized Indian tribe with which the Governor has entered into an agreement pursuant to this chapter.
(c) “Tribal license” means a commercial cannabis license issued under the laws of a contracting tribe.
(d) “State license” means a commercial cannabis license issued by a licensing authority pursuant to this division.
Article 2. Agreements [26351-26357]
(a) The Governor, or their designee, may enter into an agreement with a federally recognized Indian tribe authorizing medicinal or adult-use commercial cannabis activity, or both, between entities licensed under the laws of the contracting tribe and entities operating with a state license, provided that both of the following criteria are met:
(1) The commercial cannabis activities are lawful and subject to licensure under the laws of the contracting tribe.
(2) With respect to the transportation of cannabis or cannabis products, the agreement prohibits both of the following:
(A) The transportation of cannabis and cannabis products by any means other than those authorized under both the laws of the contracting tribe and the regulations of the department.
(B) The transportation of cannabis and cannabis products through the jurisdiction of a state, federally recognized Indian tribe, district, commonwealth, territory, or possession of the United States that does not authorize that transportation.
(b) Notwithstanding any other law, the execution of, and compliance with the terms of, an agreement does not constitute a project for purposes of the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code).
(c) This chapter does not prohibit a tribe from obtaining a state license.
(a) Notwithstanding any other law, a tribal licensee may engage in commercial cannabis activity with a state licensee and a state licensee may engage in commercial cannabis activity with a tribal licensee, subject to the requirements and limitations set forth in this chapter.
(b) A tribal licensee shall not engage in commercial cannabis activity outside of Indian country, as defined in Section 1151 of Title 18 of the United States Code, without a license, permit, or other authorization issued by the local jurisdiction.
(c) If a tribal licensee engages in commercial cannabis activity in this state outside of Indian country, the tribal licensee shall be subject to the jurisdiction of this state for the purpose of actions taken for violation of California commercial cannabis laws and regulations.
(a) An agreement shall require that the contracting tribe impose requirements on tribal licensees with regard to cannabis and cannabis products to be sold or otherwise transferred or distributed within this state that meet or exceed the requirements applicable to state licensees, including all of the following:
(1) Enforceable public health and safety standards that are equivalent to the requirements of this division.
(2) Mandatory participation in a system to regulate and track the cultivation, manufacturing, distribution, transportation, sale, and destruction of cannabis and cannabis products from seed to sale.
(3) Standards for the testing of cannabis or cannabis products that meet or exceed the standards applicable to testing laboratories licensed under this division.
(4) Requirements for the packaging and labeling of cannabis and cannabis products that meet or exceed the packaging and labeling requirements established pursuant to Chapter 12 (commencing with Section 26120).
(5) Requirements for quality assurance and inspection of cannabis or cannabis products that meet or exceed the requirements applicable to cannabis or cannabis products cultivated, manufactured, or sold by state licensees.
(6) Restrictions on marketing, labeling, and advertising within this state by tribal licensees that meet or exceed the restrictions on state licensees established in Section 26063 and Chapter 15 (commencing with Section 26150).
(7) A process for the identification of adulterated or misbranded cannabis products, and the destruction of those products, using standards that meet or exceed the standards and procedures established pursuant to this division.
(b) An agreement shall require that the contracting tribe impose restrictions upon advertising, marketing, labeling, or sale within the contracting tribe that meet or exceed the restrictions established in Section 26063.
(a) An agreement shall include provisions requiring the department and the appropriate regulatory authorities of the contracting tribe to address public health and welfare emergencies concerning cannabis or cannabis products that are sold or intended for sale within this state, including for the prompt recall or embargo of adulterated or misbranded cannabis or cannabis products.
(b) An agreement shall include provisions requiring the appropriate regulatory authorities of each tribe to investigate instances of alleged noncompliance with the commercial cannabis regulatory programs upon request by the state and in accordance with mutually agreed-upon procedures. An agreement shall include provisions requiring the contracting tribe to reasonably cooperate with California investigations concerning tribal licensees, and requiring the department to reasonably cooperate with investigations by the contracting tribe concerning persons or entities holding state licenses.
An agreement shall provide for collection of all applicable taxes.
The Governor is exempt from the rulemaking procedures and requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code) when entering into agreements or amendments to agreements, provided that prior to execution of an agreement or amendment to an agreement, the Governor shall do both of the following:
(a) Submit the proposed agreement or amendment to the Joint Legislative Budget Committee for review and comment. The committee shall have 60 days to review the proposed agreement or amendment and to submit written recommendations to the Governor. The committee shall only submit a recommendation to the Governor if a majority of the members agree to that recommendation. The Governor shall consider all recommendations submitted by the committee and may revise the proposed agreement or amendment to incorporate the recommendations. If the Governor does not incorporate any recommendation submitted by the committee, the Governor shall set forth, in writing, the reasons for not incorporating that recommendation.
(b) Post the proposed agreement or amendment on the department’s internet website for public comment for 30 days. The comments received shall be considered by the Governor.
(a) An agreement entered into pursuant to this chapter shall not take effect unless one of the following occurs:
(1) Federal law is amended to allow for the interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses.
(2) Federal law is enacted that specifically prohibits the expenditure of federal funds to prevent the interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses.
(3) The United States Department of Justice issues an opinion or memorandum allowing or tolerating the interstate transfer of cannabis or cannabis products between authorized commercial cannabis businesses.
(4) The Attorney General issues a written opinion, through the process established pursuant to Section 12519 of the Government Code, that state law authorization, under an agreement pursuant to this chapter, for medicinal or adult-use commercial cannabis activity, or both, between foreign tribal licensees and state licensees will not result in significant legal risk to the State of California under the federal Controlled Substances Act, based on review of applicable law, including federal judicial decisions and administrative actions.
(b) The department shall notify the Governor and the appropriate policy committees of the Legislature upon the occurrence of an event described in subdivision (a), and shall post the notification on the department’s internet website.
SEC. 2.
The provisions of this act are severable. If any provision of this act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
SEC. 3.
The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.