AMENDED IN SENATE JULY 5, 2023

AMENDED IN ASSEMBLY MAY 3, 2023

AMENDED IN ASSEMBLY MARCH 23, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

94

CHAPTER 467

Statutes of 2023

[ Approved by Governor October 8, 2023. Filed with Secretary of State October 8, 2023. ]

Introduced by Assembly Member Blanca Rubio

(Coauthor: Assembly Member Haney)

February 16, 2023

An act to add Section 26038.1 to the Business and Professions Code, relating to cannabis.

Vote: 2/3   Appropriation: no   Fiscal committee: no   Local program: no

LEGISLATIVE COUNSEL’S DIGEST

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, authorizes a person who obtains a state license under AUMA and any applicable local ordinances to engage in commercial adult-use cannabis activity pursuant to that license, if conducted as prescribed. 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, except as specified, prohibits a person or entity from engaging in commercial cannabis activity without a state license issued by the Department of Cannabis Control pursuant to MAUCRSA. Existing law provides that a person engaging in commercial cannabis activity without a license is subject to civil penalties, as specified, and authorizes the Attorney General, a county counsel, a city attorney, or a city prosecutor to bring an action, as specified.

This bill would authorize a licensee under MAUCRSA to bring an action in superior court against a person engaging in commercial cannabis activity without a license as required by MAUCRSA. The bill would require the licensee to demonstrate actual harm resulting from the unlicensed commercial cannabis activity. The bill would authorize a court in that action to enter an order enjoining the defendant from engaging in commercial cannabis activity without a license. The bill would entitle a licensee prevailing in that action to their reasonable attorney’s fees and costs and either actual damages or statutory damages not to exceed $75,000, as specified. The bill would provide that its provisions do not apply to a violation of the Labor Code and would prohibit the provisions from forming the basis for a cause of action under the Labor Code Private Attorneys General Act of 2004.

AUMA authorizes the Legislature to amend its provisions with a ⅔ vote of both houses to further its purposes and intent, except as specified.

This bill would declare that its provisions further the purposes and intent of AUMA.

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

SECTION 1.

Section 26038.1 is added to the Business and Professions Code, to read:

26038.1.

(a) In addition to other remedies permitted by law, a licensee under this division may bring an action in superior court against a person engaging in commercial cannabis activity without a license as required by this division.

(b) In order to prevail in an action brought pursuant to subdivision (a), a licensee shall demonstrate actual harm resulting from the unlicensed commercial cannabis activity.

(c) In an action pursuant to subdivision (a), the court may enter an order enjoining the defendant from engaging in commercial cannabis activity without a license as required by this division.

(d) A licensee that prevails in an action brought pursuant to subdivision (a) shall be entitled to both of the following:

(1) Either of the following damages, at the election of the prevailing licensee:

(A) Actual damages caused by the unlicensed commercial cannabis activity.

(B) Statutory damages not to exceed seventy-five thousand dollars ($75,000).

(2) Reasonable attorney’s fees and costs.

(e) This section does not apply to any violation of the Labor Code committed by a person engaging in unlicensed cannabis activity and shall not form the basis for a cause of action under the Labor Code Private Attorneys General Act of 2004 (Part 13 (commencing with Section 2698) of Division 2 of the Labor Code).

SEC. 2.

The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.