California 2021 2021-2022 Regular Session

California Assembly Bill AB2102 Amended / Bill

Filed 03/10/2022

                    Amended IN  Assembly  March 10, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2102Introduced by Assembly Member Jones-SawyerFebruary 14, 2022 An act to amend Section 26037 of add Section 26039 to the Business and Professions Code, relating to cannabis. LEGISLATIVE COUNSEL'S DIGESTAB 2102, as amended, Jones-Sawyer. Cannabis: lawful actions. facilities used for unlawful purposes.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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 26039 is added to the Business and Professions Code, to read:26039. (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.

 Amended IN  Assembly  March 10, 2022 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 2102Introduced by Assembly Member Jones-SawyerFebruary 14, 2022 An act to amend Section 26037 of add Section 26039 to the Business and Professions Code, relating to cannabis. LEGISLATIVE COUNSEL'S DIGESTAB 2102, as amended, Jones-Sawyer. Cannabis: lawful actions. facilities used for unlawful purposes.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.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: NOYES  Local Program: NO 

 Amended IN  Assembly  March 10, 2022

Amended IN  Assembly  March 10, 2022

 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION

 Assembly Bill 

No. 2102

Introduced by Assembly Member Jones-SawyerFebruary 14, 2022

Introduced by Assembly Member Jones-Sawyer
February 14, 2022

 An act to amend Section 26037 of add Section 26039 to the Business and Professions Code, relating to cannabis. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2102, as amended, Jones-Sawyer. Cannabis: lawful actions. facilities used for unlawful purposes.

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 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.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Section 26039 is added to the Business and Professions Code, to read:26039. (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.

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

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

SECTION 1. Section 26039 is added to the Business and Professions Code, to read:26039. (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 26039 is added to the Business and Professions Code, to read:

### SECTION 1.

26039. (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.

26039. (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.

26039. (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.



26039. (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.





(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.