AB 1171: Cannabis: private right of action.

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 attorneys 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 ²/₃ 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.