Bill Text: CA AB3330 | 2019-2020 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Department of Consumer Affairs: boards: licensees: regulatory fees.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2020-09-30 - Chaptered by Secretary of State - Chapter 359, Statutes of 2020. [AB3330 Detail]

Download: California-2019-AB3330-Amended.html

Amended  IN  Assembly  May 04, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 3330


Introduced by Assembly Member O’Donnell

February 21, 2020


An act relating to cannabis. An act to amend Section 26038 of, and to add Section 26152.5 to, the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 3330, as amended, O’Donnell. Cannabis advertising. Cannabis and cannabis products: advertising and marketing: penalties.
The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, 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. MAUCRSA sets forth standards for the advertisement and marketing of cannabis and cannabis products.
This bill would prohibit a person, as defined, from collecting a fee or any other form of compensation for advertising or marketing the sale or provision of cannabis or cannabis products, unless the sale or provision is done in compliance with MAUCRSA. The bill would also prohibit the completion, initiation, or facilitation of the sale or provision of cannabis or cannabis products unless the sale or provision is in compliance with MAUCRSA. The bill would make a violation of these provisions a public nuisance and subject a person in violation of these provisions to a criminal penalty and a civil penalty of up to $30,000, as provided. By expanding the scope of a crime, the bill would impose a state-mandated local program.
The Control, Regulate and Tax Adult Use of Marijuana Act, an initiative measure, 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 specified purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

The Medicinal and Adult-Use Cannabis Regulation and Safety Act provides for the licensure and regulation of commercial medicinal and adult-use cannabis activities. The act regulates the advertising and marketing of cannabis, including requiring all marketing and licensing of cannabis to identify the licensee responsible for its content.

This bill would express the intent of the Legislature to enact legislation relating to the regulation of cannabis advertising.

Vote: MAJORITY2/3   Appropriation: NO   Fiscal Committee: NOYES   Local Program: NOYES  

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


SECTION 1.

 Section 26038 of the Business and Professions Code is amended to read:

26038.
 (a) (1) A person engaging in commercial cannabis activity without a license required by this division shall be subject to civil penalties of up to three times the amount of the license fee for each violation, and the court may order the destruction of cannabis associated with that violation in accordance with Section 11479 of the Health and Safety Code. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section by a licensing authority shall be deposited into the General Fund except as provided in subdivision (b). A violator shall be responsible for the cost of the destruction of cannabis associated with his or her the violator’s violation.
(2) A person that violates Section 26152.5 shall be subject to civil penalties of up to thirty thousand dollars ($30,000) for each violation of that section. Each advertising or marketing transaction in violation of subdivision (a) of Section 26152.5, and each sale or provision of cannabis or cannabis products completed, initiated, or facilitated in violation of subdivision (b) of Section 26152.5, shall constitute a separate violation of that section. All civil penalties imposed and collected pursuant to this section shall be deposited into the General Fund, except as provided in subdivision (b).
(b) If an action for civil penalties is brought against a person pursuant to this division by the Attorney General on behalf of the people, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty shall first be used to reimburse the district attorney or county counsel for the costs of bringing the action for civil penalties, with the remainder, if any, to be deposited into the General Fund. If the action is brought by a city attorney or city prosecutor, the penalty collected shall first be used to reimburse the city attorney or city prosecutor for the costs of bringing the action for civil penalties, with the remainder, if any, to be deposited into the General Fund.
(c) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person engaging in commercial cannabis activity in violation of this division. division, and to a person in violation of Section 26152.5.

SEC. 2.

 Section 26152.5 is added to the Business and Professions Code, to read:

26152.5.
 (a) A person shall not collect a fee or any other form of compensation for advertising or marketing the sale or provision of cannabis or cannabis products, unless the sale or provision is in compliance with this division.
(b) A person shall not complete, initiate, or facilitate the sale or provision of cannabis or cannabis products unless the sale or provision is in compliance with this division.
(c) A violation of this section shall be deemed a public nuisance.

SEC. 3.

 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016.

SEC. 4.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.

It is the intent of the Legislature to enact legislation relating to cannabis advertising.

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