This bill is part of the 2021 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years.
AB 1138 (Rubio, Blanca D) Unlawful cannabis activity: civil enforcement.
The Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) establishes the Department of Cannabis Control and imposes duties on the department with respect to the creation, issuance, denial, suspension, and revocation of licenses issued pursuant to MAUCRSA.
MAUCRSA imposes a civil penalty on a person engaging in commercial cannabis activity without a license as required by the act, of up to 3 times the amount of the license fee for each violation.
This bill would impose a civil penalty on persons aiding and abetting unlicensed commercial cannabis activity of up to 3 times the amount of the license fee for each violation, but in no case more than $30,000 for each violation. The bill would prohibit filing an action for civil penalties brought against a person pursuant to MAUCRSA 3 years after the first date of discovery of the violation.
The bill would require a court to consider certain factors in assessing a penalty for engaging in or aiding and abetting unlicensed commercial cannabis activity. The bill would require that certain factors be demonstrated in order to prove that a person aided and abetted an unlicensed cannabis activity. The bill would authorize an action for civil penalties on persons aiding and abetting unlicensed commercial cannabis activity to be brought exclusively by the Attorney General, or in jurisdictions meeting specified population requirements, by the city prosecutor or county counsel.
MAUCRSA requires civil penalties collected by the Attorney General in an action brought against a person pursuant to the act on behalf of the people to be deposited into the General Fund.
This bill would instead require civil penalties collected by the Attorney General in an action brought against a person pursuant to MAUCRSA on behalf of the people, the department, or a participating agency to be first used to reimburse the Attorney General and the department or participating agency for the costs of investigating and prosecuting the action brought for civil penalties, with the remainder collected, if any, to be deposited into the General Fund. By authorizing the expenditure of civil penalties, which are general funds, to be used to reimburse the Attorney General and the department or participating agency, this bill would make an appropriation.
AUMA authorizes the Legislature to amend the act to further the purposes and intent of the act with a 2/3 vote of the membership of both houses of the Legislature, except as provided.
This bill would declare that its provisions further the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.
Contact us by phone or email to learn more about California cannabis law including state, county or city cannabis licensing and cannabis regulations, cannabis regulatory compliance, and cannabis litigation.