AB 2102: Cannabis: facilities used for unlawful purposes.
- Session Year: 2021-2022
- House: Assembly
- Latest Version Date: 2022-03-30
Existing law makes it a crime for a person who has management or control of a building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, to knowingly rent, lease, or make available for use, with or without compensation, the building, room, space, or enclosure, for the purpose of unlawfully manufacturing, storing, or distributing a controlled substance for sale or distribution.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provides for the licensure and regulation of commercial cannabis activity by the Department of Cannabis Control. Existing law establishes the Cannabis Fines and Penalties Account, which is disbursed upon appropriation of the Legislature.
This bill would impose a civil penalty of up to $30,000 per violation against a person who violates the prohibition on knowingly renting, leasing, or making available a building, room, space, or enclosure for the purpose of unlawfully manufacturing, distributing, or selling cannabis, in addition to the criminal penalty, and authorizes injunctive relief, as specified. The bill would make each day the violation continues a separate violation for this purpose. The bill would specify what entities may bring an action for civil penalties or injunctive relief and how the civil penalty is distributed. The bill would authorize the entity bringing the case to recover the costs of the investigation and reasonable attorneys fees either from the defendant or from the fine, as specified.
Existing law makes it a crime for a person who has management or control of a building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, to knowingly rent, lease, or make available for use, with or without compensation, the building, room, space, or enclosure, for the purpose of unlawfully manufacturing, storing, or distributing a controlled substance for sale or distribution.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provides for the licensure and regulation of commercial cannabis activity by the Department of Cannabis Control. Existing law establishes the Cannabis Fines and Penalties Account, which is disbursed upon appropriation of the Legislature.
This bill would impose a civil penalty of up to $30,000 per violation against a person who violates the prohibition on renting, leasing, or making available a building, room, space, or enclosure for the purpose of unlawfully manufacturing, distributing, or selling cannabis, in addition to the criminal penalty. penalty, and authorizes injunctive relief, as specified. The bill would make each day the violation continues a separate violation for this purpose. The bill would authorize a case to impose the civil penalty to be brought by the department, the Office of the Attorney General, or a local jurisdiction. specify what entities may bring an action for civil penalties or injunctive relief and how the civil penalty is distributed. The bill would authorize the entity bringing the case to recover the costs of the investigation and reasonable attorneys fees either from the defendant or from the fine, as specified. The bill would require the remaining civil penalty to be deposited in the Cannabis Fines and Penalties Account.
Existing law makes it a crime for a person who has management or control of a building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, to knowingly rent, lease, or make available for use, with or without compensation, the building, room, space, or enclosure, for the purpose of unlawfully manufacturing, storing, or distributing a controlled substance for sale or distribution.
Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) provides for the licensure and regulation of commercial cannabis activity by the Department of Cannabis Control. Existing law establishes the Cannabis Fines and Penalties Account, which is disbursed upon appropriation of the Legislature.
This bill would impose a civil penalty of up to $30,000 per violation against a person who violates the prohibition on renting, leasing, or making available a building, room, space, or enclosure for the purpose of unlawfully manufacturing, distributing, or selling cannabis, in addition to the criminal penalty. The bill would make each day the violation continues a separate violation for this purpose. The bill would authorize a case to impose the civil penalty to be brought by the department, the Office of the Attorney General, or a local jurisdiction. The bill would authorize the entity bringing the case to recover the costs of the investigation and reasonable attorneys fees either from the defendant or from the fine, as specified. The bill would require the remaining civil penalty to be deposited in the Cannabis Fines and Penalties Account.
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 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.Under MAUCRSA, the actions of a person who, in good faith, allows their property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any applicable local ordinances, are not unlawful under state law and are prohibited from being an offense subject to arrest, prosecution, or other sanction under state law, or being subject to a civil fine or being a basis for seizure or forfeiture of assets under state law.This bill would make a nonsubstantive change to those provisions relating to lawful actions under MAUCRSA.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 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.
Under MAUCRSA, the actions of a person who, in good faith, allows their property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any applicable local ordinances, are not unlawful under state law and are prohibited from being an offense subject to arrest, prosecution, or other sanction under state law, or being subject to a civil fine or being a basis for seizure or forfeiture of assets under state law.
This bill would make a nonsubstantive change to those provisions relating to lawful actions under MAUCRSA.
(a)(1)A person who has management or control of a property, building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, who knowingly rents, leases, or makes available for use, with or without compensation, the property, building, room, space, or enclosure for the purpose of unlawfully cultivating, manufacturing, selling, storing, or distributing cannabis shall be subject to civil penalties of up to thirty thousand dollars ($30,000) for each violation. Each day of violation shall constitute a separate violation of this section.
(2)A person who engages, has engaged, or proposes to engage in the activity prohibited in subdivision (a) may be enjoined by a court of competent jurisdiction. The court may make that order or judgment, including the appointment of a receiver, as necessary to prevent the activity prohibited in subdivision (a).
(b)An action pursuant to this section may be brought by the department, the office of the Attorney General, or a local jurisdiction. If an action pursuant to this section is brought by a local jurisdiction, the action may be brought by a district attorney or by a county counsel authorized by an agreement with the district attorney, or county, by a city attorney of a city having a population in excess of 750,000, or by a county counsel of a county within which a city has a population in excess of 750,000, or by a city attorney in a city and county, or, with the consent of the district attorney, or by a city attorney in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association. The action for civil penalties shall be commenced within three years from the date of the first discovery of the violation.
(c)(1)If the cause of action is brought by the Attorney General or a state licensing entity, a civil penalty imposed pursuant to this section shall be deposited in the Cannabis Fines and Penalties Account and distributed pursuant to subdivision (d) of Section 26210, except as specified in paragraph (2), (3), or (5).
(2)If the cause of action is brought by a local jurisdiction, the civil penalty collected shall be paid one-half to the prosecuting entity and one-half pursuant to paragraph (1).
(3)In addition to the penalty provided in subdivision (a), the entity bringing the action may recover the actual costs of investigation, expert witness fees, and reasonable attorneys fees.
(4)If the cause of action is brought by the department, the recovered costs shall be deposited in the Cannabis Control Fund, established in Section 26210.
(5)If the cause of action is brought by the office of the Attorney General or a local jurisdiction, to the extent that their costs have not been recovered pursuant to paragraph (2), their costs shall be deducted from the civil penalty.
(d)A civil penalty imposed pursuant to this section shall be in addition to any other civil or criminal penalty, including prosecution pursuant to Section 11366.5 of the Health and Safety Code.
(e)This section dos not limit, preempt, or otherwise affect any other state or local law, rule, regulation, or ordinance applicable to the conduct described in subdivision (a), to a state or local law, rule, regulation, or ordinance otherwise relating to commercial cannabis activity, or to enforcement under Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.
(f)The remedies or penalties provided in this section are cumulative to the remedies or penalties available under all other state or local laws.
REVISIONS: HeadingLine 2.(a)(1)A person who has management or control of a property, building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, who rents, leases, or makes available for use, with or without compensation, the property, building, room, space, or enclosure for the purpose of unlawfully cultivating, manufacturing, selling, storing, or distributing cannabis shall be subject to civil penalties of up to thirty thousand dollars ($30,000) for each violation. Each day of violation shall constitute a separate violation of this section.
(2)A person who engages, has engaged, or proposes to engage in the activity prohibited in subdivision (a) may be enjoined by a court of competent jurisdiction. The court may make that order or judgment, including the appointment of a receiver, as necessary to prevent the activity prohibited in subdivision (a).
(b)An action for a civil penalty pursuant to this section may be brought by the department, the office of the Attorney General, or a local jurisdiction. If an action pursuant to this section is brought by a local jurisdiction, the action may be brought by a district attorney or by a county counsel authorized by an agreement with the district attorney, or by a city attorney of a city having a population in excess of 750,000, or by a county counsel of a county within which a city has a population in excess of 750,000, or by a city attorney in a city and county, or, with the consent of the district attorney, by a city attorney in a city having a full-time city prosecutor in the name of the people of the State of California upon their own complaint or upon the complaint of a board, officer, person, corporation, or association. The action for civil penalties shall be commenced within three years from the date of the first discovery of the violation.
(c)(1)A If the cause of action is brought by the Attorney General or a state licensing entity, a civil penalty imposed pursuant to this section shall be deposited in the Cannabis Fines and Penalties Account and distributed pursuant to subdivision (d) of Section 26210, except as specified in paragraph (4). (2), (3), or (5).
(2)If the cause of action is brought by a local jurisdiction, the civil penalty collected shall be paid one-half to the prosecuting entity and one-half pursuant to paragraph (1).
(2)(3)In addition to the penalty provided in subdivision (a), the entity bringing the action may recover the actual costs of investigation, expert witness fees, and reasonable attorneys fees.
(3)(4)If the cause of action is brought by the department, the recovered costs shall be deposited in the Cannabis Control Fund, established in Section 26210.
(4)(5)If the cause of action is brought by the office of the Attorney General or a local jurisdiction, to the extent that their costs have not been recovered pursuant to paragraph (2), their costs shall be deducted from the civil penalty.
(d)A civil penalty imposed pursuant to this section shall be in addition to any other civil or criminal penalty, including prosecution pursuant to Section 11366.5 of the Health and Safety Code.
(e)This section dos not limit, preempt, or otherwise affect any other state or local law, rule, regulation, or ordinance applicable to the conduct described in subdivision (a), to a state or local law, rule, regulation, or ordinance otherwise relating to commercial cannabis activity, or to enforcement under Chapter 5 (commencing with Section 17200) of Part 2 of Division 7 of the Business and Professions Code.
(f)The remedies or penalties provided in this section are cumulative to the remedies or penalties available under all other state or local laws.
(a)A person who has management or control of a property, building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, who rents, leases, or makes available for use, with or without compensation, the property, building, room, space, or enclosure for the purpose of unlawfully cultivating, manufacturing, selling, storing, or distributing cannabis shall be subject to civil penalties of up to thirty thousand dollars ($30,000) for each violation. Each day of violation shall constitute a separate violation of this section.
(b)An action for a civil penalty pursuant to this section may be brought by the department, the office of the Attorney General, or a local jurisdiction. The action for civil penalties shall be commenced within three years from the date of the first discovery of the violation.
(c)(1)A civil penalty imposed pursuant to this section shall be deposited in the Cannabis Fines and Penalties Account and distributed pursuant to subdivision (d) of Section 26210, except as specified in paragraph (4).
(2)In addition to the penalty provided in subdivision (a), the entity bringing the action may recover the actual costs of investigation, expert witness fees, and reasonable attorneys fees.
(3)If the cause of action is brought by the department, the recovered costs shall be deposited in the Cannabis Control Fund, established in Section 26210.
(4)If the cause of action is brought by the office of the Attorney General or a local jurisdiction, to the extent that their costs have not been recovered pursuant to paragraph (2), their costs shall be deducted from the civil penalty.
(d)A civil penalty imposed pursuant to this section shall be in addition to any other civil or criminal penalty, including prosecution pursuant to Section 11366.5 of the Health and Safety Code.
SECTION 1.Section 26037 of the Business and Professions Code is amended to read:26037.(a)The actions of a licensee, its employees, and its agents that are (1) permitted under a license issued under this division and any applicable local ordinances and (2) conducted in accordance with the requirements of this division and regulations adopted pursuant to this division, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.(b)The actions of a person who, in good faith, allows their property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any applicable local ordinances, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.(a)The actions of a licensee, its employees, and its agents that are (1) permitted under a license issued under this division and any applicable local ordinances and (2) conducted in accordance with the requirements of this division and regulations adopted pursuant to this division, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.
(b)The actions of a person who, in good faith, allows his or her their property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any applicable local ordinances, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.
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Date
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Status
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| Jun 21, 2022 | In committee: Set, first hearing. Hearing canceled at the request of author. |
| Jun 1, 2022 | Referred to Coms. on JUD. and B., P. & E.D. |
| May 26, 2022 | In Senate. Read first time. To Com. on RLS. for assignment. |
| May 25, 2022 | Read third time. Passed. Ordered to the Senate. (Ayes 76. Noes 0. Page 4911.) |
| May 12, 2022 | Read second time. Ordered to third reading. |
| May 11, 2022 | From committee: Do pass. (Ayes 16. Noes 0.) (May 11). |
| Apr 26, 2022 | Coauthors revised. |
| Mar 31, 2022 | Re-referred to Com. on B. & P. |
| Mar 30, 2022 | Read second time and amended. |
| Mar 29, 2022 | From committee: Amend, and do pass as amended and re-refer to Com. on B. & P. (Ayes 10. Noes 0.) (March 29). |
| Mar 22, 2022 | Re-referred to Com. on JUD. |
| Mar 21, 2022 | From committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended. |
| Mar 14, 2022 | Re-referred to Com. on JUD. |
| Mar 10, 2022 | Referred to Coms. on JUD. and B. & P. |
| Feb 15, 2022 | From printer. May be heard in committee March 17. |
| Feb 14, 2022 | Read first time. To print. |
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Date
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Description
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Location
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Votes
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| May 25, 2022 | AB 2102 Jones-Sawyer Assembly Third Reading | Assembly Floor |
Passed |
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Bill Author
Bill Co-Author(s):
