California Assembly Bill AB1138

California 2021-2022 Regular Session

• Introduced: 2/18/21
• Refer: 3/4/21
• Report Pass: 3/23/21
• Refer: 3/23/21
• Report Pass: 4/20/21
• Refer: 4/22/21
• Refer: 5/5/21
• Report Pass: 5/20/21
• Engrossed: 5/28/21
• Refer: 5/28/21
• Refer: 6/9/21
• Report Pass: 7/7/21
• Refer: 7/8/21
• Report Pass: 7/14/21
• Refer: 7/15/21
• Refer: 8/16/21
• Report Pass: 8/26/21
• Enrolled: 9/9/21
• Chaptered: 10/5/21
• Passed: 10/5/21

Caption

Unlawful cannabis activity: civil enforcement.

Impact

The enactment of AB1138 significantly affects cannabis regulation in California by creating an explicit framework for civil enforcement actions targeting those who assist unlicensed cannabis operations. The bill empowers the Attorney General and, in larger jurisdictions, city prosecutors to initiate civil actions, contributing to a more cohesive enforcement landscape. This approach aims to deter unlicensed activity and promote compliance with state cannabis laws, thereby aligning with the broader goals of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA).

Summary

Assembly Bill 1138 (AB1138) amends Section 26038 of the Business and Professions Code to enhance civil enforcement against unlicensed cannabis activities. This bill expands the scope of penalties by including provisions that impose civil penalties on individuals aiding and abetting unlicensed commercial cannabis activities. Under the legislation, such persons can face fines amounting to three times the licensing fee for each violation, capped at a maximum of $30,000. Furthermore, the bill requires penalties collected to be utilized first to reimburse the Attorney General or respective agencies for investigation costs, with any remaining funds deposited into the General Fund.

Sentiment

The general sentiment around AB1138 appears supportive, particularly among legislators and stakeholders advocating for regulated cannabis markets. Supporters argue that the bill is a needed tool to uphold the integrity of the cannabis industry and ensure fair competition for licensed operators. However, some concerns have been raised regarding the potential for over-enforcement leading to adverse impacts on small operations or individuals who may unknowingly assist in unlicensed activities.

Contention

Notable points of contention focus on the balance between strict enforcement and community-based cannabis activities. Critics fear that harsh penalties could inadvertently target those who are trying to engage with cannabis in legitimate, albeit unlicensed ways. Furthermore, the specifics of how penalties are assessed, including the factors considered by courts in determining the appropriateness of penalties, may provoke debate on fairness and proportionality in enforcing cannabis regulations.