Bill Text: CA AB8 | 2025-2026 | Regular Session | Chaptered

California Assembly Bill 8

Bill Title: Cannabis: cannabinoids: industrial hemp.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2025-10-02 - Chaptered by Secretary of State - Chapter 248, Statutes of 2025. [AB8 Detail]

Download: California-2025-AB8-Chaptered.html

Assembly Bill No. 8

CHAPTER 248

An act to amend Sections 26001, 26002, 26015, 26031.6, 26036, 26038, 26039.4, 26039.6, 26051.5, 26060, 26067, 26068, 26069, 26070, 26070.2, 26080, 26100, 26110, 26152, and 26200 of, and to add Sections 22980.6 and 26000.5 to, the Business and Professions Code, to amend Sections 11006.5, 11018, 11018.1, 11018.5, 11357.5, 11361, 110611, 111691, 111920, 111921, 111921.5, 111921.6, 111922.3, 111923.3, 111925, 111925.2, 111926, 111926.2, 111926.3, 111927.2, and 113091 of, to amend and repeal Section 111923.9 of, to add Sections 111921.1 and 111921.8 to, to add and repeal Section 111929.5 of, and to repeal Article 10 (commencing with Section 111929) of Chapter 9 of Part 5 of Division 104 of, the Health and Safety Code, and to amend Sections 34010, 34013, 34014, and 34016 of, and to add Section 34015.3 to, the Revenue and Taxation Code, relating to cannabinoids, and making an appropriation therefor.

[ Approved by Governor October 02, 2025. Filed with Secretary of State October 02, 2025. ]

LEGISLATIVE COUNSEL'S DIGEST

AB 8, Aguiar-Curry. Cannabis: cannabinoids: industrial hemp.

(1) The Sherman Food, Drug, and Cosmetic Law regulates the packaging, labeling, and advertising of food, beverages, and cosmetics and makes it a crime to distribute in commerce any food, drug, device, or cosmetic if its packaging or labeling does not conform to these provisions. Existing law establishes a process for the embargo, condemnation, and destruction of a food, drug, device, or cosmetic that is adulterated, misbranded, or falsely advertised, gives the authority to place items under embargo to authorized agents of the State Department of Public Health, and requires the department to take specified actions. Violation of the Sherman Food, Drug, and Cosmetic Law is a misdemeanor.

The Sherman Food, Drug, and Cosmetic Law regulates, among other things, industrial hemp and requires a hemp manufacturer who produces an industrial hemp product that is a food or beverage to register with the State Department of Public Health, as specified. Existing law prohibits an industrial hemp product from being distributed or sold in the state unless the industrial hemp contains a total THC concentration that does not exceed 0.3 percent on a dry-weight basis.

This bill, beginning on January 1, 2026, would prohibit industrial hemp raw extract from being incorporated into food, food additives, beverages, or dietary supplements unless the industrial hemp raw extract has a purity level greater than 99 percent and does not contain any tetrahydrocannabinols or synthetic cannabinoids. The bill, beginning January 1, 2028, would revise and recast various provisions in conformity with that prohibition. The bill would also specify that beginning on January 1, 2028, retail of industrial hemp includes online sales to customers in the state. By creating a new crime, the bill would impose a state-mandated local program.

(2) Existing law, the California Uniform Controlled Substances Act, categorizes controlled substances into 5 designated schedules, and specifies various penalties for the unlawful possession or sale of cannabis, as specified. Existing law excludes industrial hemp from the definition of cannabis for purposes of the act, and specifies that industrial hemp is not subject to the act. Existing law defines industrial hemp for these purposes to mean, among other things, a product derived from the cannabis plant, as provided, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis.

This bill, for purposes of the California Uniform Controlled Substances Act, would instead define industrial hemp to mean a product derived from the cannabis plant with a total tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis, as specified. The bill would prohibit the sale or delivery of hemp flower and hemp prerolls for consumption within the state under the California Uniform Controlled Substances Act.

(3) The Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (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. 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 requires the Department of Cannabis Control to administer its provisions. Existing law exempts industrial hemp, as defined, from the definition of cannabis under MAUCRSA, but requires the Department of Cannabis Control to prepare a report, on or before July 1, 2022, to the Governor and the Legislature outlining the steps necessary to allow for the incorporation of hemp cannabinoids into the cannabis supply chain. Existing emergency regulations require that industrial hemp, food, food additives, beverages, and dietary supplements intended for human consumption have no detectable THC per serving.

This bill would revise the definition of industrial hemp for purposes of MAUCRSA to conform to the definition of industrial hemp used in the California Uniform Controlled Substances Act, as described above. The bill would subject industrial hemp that enters the licensed market under MAUCRSA or is used in a cannabis product to the regulatory requirements of cannabis or cannabis products under MAUCRSA, including identification in the track and trace program, security and transportation safety requirements, quality assurance standards, testing by a licensed testing laboratory, and advertising and marketing restrictions. The bill would prohibit an industrial hemp cultivator from transferring or selling industrial hemp to a licensee under MAUCRSA if a banned pesticide was used in its cultivation. The bill would specify that MAUCRSA does not apply to products that contain no cannabinoids other than CBD isolate, as defined, and would make conforming changes to the California Uniform Controlled Substances Act.

This bill, until January 1, 2028, would allow a licensed manufacturer to use cannabinoid concentrates and extracts that are manufactured or processed exclusively from cannabis obtained from a licensed cannabis cultivator, and would prohibit a licensee from possessing, transporting, distributing, manufacturing, or selling industrial hemp on or from a licensed premises, except as specified.

This bill would prohibit a person from selling, offering, or providing a product in the state that is an inhalable cannabis product containing THC derived from industrial hemp, hemp flower or a preroll that contains hemp flower or hemp-derived cannabinoids, whether infused or not, a cannabis product manufactured outside the licensed market, or a product containing synthetic cannabinoids, as defined.

This bill would revise and recast the enforcement provisions for cannabis, industrial hemp, and cannabis products, and would authorize the California Department of Tax and Fee Administration (CDTFA), the State Department of Public Health, the Department of Cannabis Control, and other state and local law enforcement agencies to inspect, seize, and destroy, among other things, cannabis products or products not authorized under MAUCRSA, the Sherman Food, Drug, and Cosmetic Law, or specified federal or tribal laws, as provided.

(4) Existing law, Cigarette and Tobacco Products Licensing Act of 2003, regulates and licenses manufacturers, importers, distributors, wholesalers, and retailers of cigarettes and tobacco products in the state.

This bill would prohibit a person that is engaged in the business of selling cigarettes or tobacco products from possessing, storing, owning, or making a retail sale of cannabis, cannabis products, or a product presumed to be cannabis, as specified, and would make a violation of that prohibition subject to a specified fine and license suspension or revocation, as applicable.

(5) Existing law, the Cannabis Tax Law, imposes an excise tax upon purchasers of cannabis or cannabis products sold in this state at the rate of 15% of the gross receipts of any retail sale by a cannabis retailer. The Cannabis Tax Law requires the CDTFA to administer the cannabis excise tax, directs all revenues, less refunds, derived from the cannabis excise tax to be deposited into the California Cannabis Tax Fund, a special fund, and continuously appropriates that tax fund for specified purposes. The Cannabis Tax Law defines cannabis and cannabis products to have the same meaning as those terms are defined in the California Uniform Controlled Substances Act, which excludes industrial hemp from those definitions.

This bill would narrow the definition of industrial hemp under the California Uniform Controlled Substances Act, thereby expanding the definition of cannabis and cannabis products under both the Cannabis Tax Law and the California Uniform Controlled Substances Act and subjecting those materials covered by that expansion to the cannabis excise tax. The bill would make conforming changes related to implementation of that tax. The bill would additionally subject any product presumed to be cannabis or a cannabis product to the cannabis excise tax and a specified penalty, as provided. By increasing the amount of tax moneys into the California Cannabis Tax Fund, a continuously appropriated fund, the bill would make an appropriation. The bill would require any person seeking to be relieved of the penalty imposed on any product presumed to be cannabis or a cannabis product to file with the CDTFA a signed statement setting forth the facts upon which they base the claim for relief. The bill would make a person who signs that statement that asserts the truth of any material matter that they know to be false guilty of a misdemeanor. By creating a new crime, this bill would impose a state-mandated local program.

(6) The Cannabis Tax Law authorizes the CDTFA or a law enforcement agency to seize cannabis or cannabis products in certain circumstances, including if the cannabis or cannabis products were not reported in the track and trace system or are in the possession of an unlicensed person, as specified. Existing law deems any cannabis or cannabis products seized by a law enforcement agency or the department to be forfeited, and makes a violation of these provisions a misdemeanor. Existing law excludes “industrial hemp” from the definition of “cannabis” under the Cannabis Tax Law, and generally defines “industrial hemp” as an agricultural product that is any part of the plant Cannabis sativa L., including cannabinoids, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3% on a dry-weight basis.

This bill would authorize the CDTFA or a law enforcement agency to seize a product if the agency presumes the product is cannabis or a cannabis product due to the product containing or purporting to contain a cannabinoid, as specified, and the product is possessed, stored, offered for sale, or sold by an unlicensed person or at an unlicensed premises. The bill would additionally authorize the CDTFA to seize alcoholic beverages that contain or purport to contain cannabinoids, including synthetic cannabinoids. By expanding the items authorized for employees of the CDTFA or a law enforcement agency to inspect and seize, the bill expands the scope of a crime and imposes a state-mandated local program.

(7) Existing law requires edible cannabis products, cannabis cartridges, and integrated cannabis vaporizers that contain cannabis or a cannabis product to be marked with a universal symbol, as determined by the department and subject to specified requirements. Existing law makes the use or possession of the universal symbol in connection with a commercial activity, other than licensed commercial cannabis activity, a violation of MAUCRSA, as described. Existing law defines use or possession of the universal symbol in connection with a commercial activity to include, but is not limited to, possession of any package, label, or advertisement of any kind bearing the universal symbol, whether or not that package, label, or advertisement is affixed to, or otherwise associated with, cannabis or cannabis products.

This bill would make it a violation of MAUCRSA to use or possess any package, label, or advertisement of any kind bearing any likeness or simulation of the universal symbol in connection with a commercial activity, regardless of whether it is in connection with licensed commercial cannabis activity. The bill would also prohibit altering or cropping the universal symbol, except as specified.

(8) This bill would incorporate additional changes to Sections 26051.5 and 26067 of the Business and Professions Code proposed by SB 861 to be operative only if this bill and SB 861 are enacted and this bill is enacted last.

(9) 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.

(10) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of ²/₃ of the membership of each house of the Legislature.

Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: YES

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

SECTION 1.

Section 22980.6 is added to the Business and Professions Code, to read:

22980.6.

(a) A person that is engaged in the business of selling cigarettes or tobacco products in this state shall not possess, store, own, or make a retail sale of cannabis, cannabis products, or a product presumed to be a cannabis product pursuant to subdivision (b), or any regulations promulgated pursuant to that chapter, at any site where cigarettes or tobacco products are stored or sold. A person that violates this subdivision is subject to civil penalties and suspension or revocation of their license pursuant to subdivision (d).

(b) For purposes of this section, it shall be presumed that a product that contains or purports to contain a cannabinoid, including a synthetic cannabinoid, is a cannabis product, regardless of the nature or source of the cannabinoid. This presumption may be rebutted by evidence showing that the product does either of the following:

(1) Complies with Chapter 9 (commencing with Section 111920) of Part 5 of Division 104 of the Health and Safety Code and any regulations promulgated pursuant to that chapter.

(2) Meets the definition of industrial hemp, as that term is defined in Section 11018.5 of the Health and Safety Code.

(c) (1) In addition to the authority provided pursuant to Section 34016 of the Revenue and Taxation Code, upon discovery by the department that any person possesses, stores, owns, or has made a retail sale of cannabis or cannabis products in violation of this section, the department is authorized to seize such products at the person’s location. Any cannabis or cannabis products seized by the department pursuant to this subdivision shall be deemed forfeited and the department shall comply with the procedures set forth in Sections 30436 to 30449, inclusive, of the Revenue and Taxation Code.

(2) Any seizures or penalties authorized pursuant to this section are in addition to any criminal or civil penalties that may be imposed by law.

(d) (1) (A) A first violation of subdivision (a) involving the seizure of cannabis or cannabis products shall be punishable as follows:

(i) Cannabis or cannabis products with an aggregate retail value of less than two hundred dollars ($200) shall be punishable by a civil penalty of one thousand dollars ($1,000).

(ii) Cannabis or cannabis product with an aggregate retail value of two hundred dollars ($200) or more shall be punishable by a civil penalty of two thousand dollars ($2,000).

(B) A second violation of subdivision (a) within five years involving a seizure of cannabis or cannabis products shall be punishable as follows:

(i) Cannabis or cannabis products with an aggregate retail value of less than two hundred dollars ($200) shall be punishable by a civil penalty of two thousand dollars ($2,000) and shall also result in a five-day suspension of the license.

(ii) Cannabis or cannabis product with an aggregate retail value of two hundred dollars ($200) or more shall be punishable by a civil penalty of five thousand dollars ($5,000) and shall result in a 10-day suspension of the license.

(C) A third violation of subdivision (a) within five years involving a seizure of cannabis or cannabis products shall be punishable as follows:

(i) Cannabis or cannabis products with an aggregate retail value of less than two hundred dollars ($200) shall be punishable by a civil penalty of five thousand dollars ($5,000) and shall also result in a revocation of the license.

(ii) Cannabis or cannabis products with an aggregate retail value of two hundred dollars ($200) or more shall be punishable by a civil penalty of ten thousand dollars ($10,000) and shall result in a revocation of the license.

(2) The department shall ascertain as best it may the retail value based on any information within the department’s possession or that may come into its possession of the cannabis or cannabis product.

(3) The department shall issue the civil penalty in accordance with the procedures applicable to the civil penalty authorized under Section 22974.7.

(4) The department shall revoke or suspend the license of a person who violates subdivision (a) in accordance with the procedures set forth in Section 22980.3.

(e) For purposes of this section:

(1) “Cannabis” and “cannabis products” shall have the same meaning as provided in Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code.

(2) “Cannabinoid” and “synthetic cannabinoid” shall have the same meaning as provided in Division 10 (commencing with Section 26000).

(f) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.

SEC. 2.

Section 26000.5 is added to the Business and Professions Code, to read:

26000.5.

Until January 1, 2028, both of the following shall apply:

(a) A licensed manufacturer shall only use cannabinoid concentrates and extracts that are manufactured or processed exclusively from cannabis obtained from a licensed cannabis cultivator.

(b) A licensee shall not possess, transport, distribute, manufacture, or sell industrial hemp on or from a licensed premises, except that a licensed testing laboratory may test industrial hemp.

SEC. 3.

Section 26001 of the Business and Professions Code is amended to read:

26001.

For purposes of this division, the following definitions apply:

(a) “A-license” means a state license issued under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals.

(b) “A-licensee” means any person holding a license under this division for cannabis or cannabis products that are intended for adults who are 21 years of age and older and who do not possess a physician’s recommendation, or are intended for use on, or consumption by, animals.

(c) “Animal” does not include a food animal as defined in Section 4825.1 or livestock as defined in Section 14205 of the Food and Agricultural Code.

(d) “Applicant” means an owner applying for a state license pursuant to this division.

(e) “Batch” means a specific quantity of homogeneous cannabis, industrial hemp, or cannabis product that is one of the following types:

(1) “Harvest batch” means a specifically identified quantity of dried flower or trim, leaves, and other plant matter from either cannabis or industrial hemp that is harvested at the same time, and, if applicable, cultivated using the same pesticides and other agricultural chemicals.

(2) “Manufactured cannabis batch” means either of the following:

(A) An amount of cannabis concentrate or extract that is produced in one production cycle using the same extraction methods and standard operating procedures.

(B) An amount of a type of manufactured cannabis produced in one production cycle using the same formulation and standard operating procedures.

(f) “Cannabinoid” means a chemical compound found in cannabis and industrial hemp that binds to or otherwise activates cannabinoid receptors in humans and animals. “Cannabinoid” includes, but is not limited to, tetrahydrocannabinol (THC) and cannabidiol (CBD).

(g) “Cannabis” has the same meaning as in Section 11018 of the Health and Safety Code.

(h) “Cannabis accessories” has the same meaning as in Section 11018.2 of the Health and Safety Code.

(i) “Cannabis beverage” means a form of edible cannabis product that is intended to be consumed in its final state as a beverage.

(j) “Cannabis concentrate” has the same meaning as in Section 11006.5 of the Health and Safety Code.

(k) “Cannabis event organizer” means a person authorized to plan and organize temporary cannabis events as authorized in Section 26200.

(l) “Cannabis products” has the same meaning as in Section 11018.1 of the Health and Safety Code.

(m) “CBD isolate” means a compound extracted from cannabis or industrial hemp consisting of cannabidiol (CAS number 13956-29-1), with a purity level greater than 99 percent and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid.

(n) “CBN isolate” means a compound extracted from cannabis or industrial hemp consisting of cannabinol (CAS number 521-35-7), with a purity level greater than 99 percent, and that does not contain any form of tetrahydrocannabinol or synthetic cannabinoid.

(o) “Child resistant” means designed or constructed to be significantly difficult for children under five years of age to open, and not difficult for normal adults to use properly.

(p) “Combined activities license” means a state license that authorizes two or more commercial cannabis activities at the same premises, with the exception of laboratory testing. A combined activities license shall conform with all requirements imposed by this division to the extent the licensee engages in those activities.

(q) “Commercial cannabis activity” includes the cultivation of cannabis or the possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, or sale of cannabis and cannabis products as provided for in this division, or acting as a cannabis event organizer for temporary cannabis events.

(r) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.

(s) “Cultivation site” means a location where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

(t) “Customer” means a natural person 21 years of age or older or a natural person 18 years of age or older who possesses a physician’s recommendation, or a primary caregiver.

(u) “Daycare center” has the same meaning as in Section 1596.76 of the Health and Safety Code.

(v) “Delivery” means the commercial transfer of cannabis or cannabis products to a customer. “Delivery” also includes the use by a retailer of any technology platform.

(w) “Department” means the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency.

(x) “Director” means the Director of the Department of Cannabis Control.

(y) “Distribution” means the procurement, sale, and transport of cannabis and cannabis products between licensees.

(z) “Distributor” means a licensee that is authorized to engage in the distribution of cannabis, industrial hemp, and cannabis products.

(aa) “Dried flower” means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

(ab) “Edible cannabis product” means a cannabis product that is intended to be used, in whole or in part, for human or animal consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the Food and Agricultural Code. An edible cannabis product is not considered food, as defined by Section 109935 of the Health and Safety Code, a processed pet food, as defined by Section 113025 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

(ac) “Fund” means the Cannabis Control Fund established pursuant to Section 26210.

(ad) “Industrial hemp” has the same meaning as in Section 11018.5 of the Health and Safety Code.

(ae) “Kind” means applicable type or designation regarding a particular cannabis variant, origin, or product type, including, but not limited to, strain name, trademark, or production area designation.

(af) “Labeling” means any label or other written, printed, or graphic matter upon a cannabis or cannabis product, upon its container or wrapper, or that accompanies any cannabis or cannabis product.

(ag) “Labor peace agreement” means an agreement between a licensee and any bona fide labor organization that, at a minimum, protects the state’s proprietary interests by prohibiting labor organizations and members from engaging in picketing, work stoppages, boycotts, and any other economic interference with the applicant’s business. This agreement means that the applicant has agreed not to disrupt efforts by the bona fide labor organization to communicate with, and attempt to organize and represent, the applicant’s employees. The agreement shall provide a bona fide labor organization access at reasonable times to areas in which the applicant’s employees work, for the purpose of meeting with employees to discuss their right to representation, employment rights under state law, and terms and conditions of employment. This type of agreement shall not mandate a particular method of election or certification of the bona fide labor organization.

(ah) “License” means a state license issued under this division, and includes both an A-license and an M-license, as well as a testing laboratory license.

(ai) “Licensed market” means the California licensed market for cannabis, industrial hemp, and cannabis products that is subject to regulation by this division.

(aj) “Licensee” means any person holding a license under this division, regardless of whether the license held is an A-license or an M-license, and includes the holder of a testing laboratory license.

(ak) “Licensing authority” means the department and any state agency currently or formerly responsible for the issuance, renewal, or reinstatement of the license, or the state agency authorized to take disciplinary action against the licensee.

(al) “Live plants” means living cannabis flowers and plants, including seeds, immature plants, and vegetative stage plants.

(am) “Local jurisdiction” means a city, county, or city and county.

(an) “Lot” means a batch or a specifically identified portion of a batch.

(ao) “M-license” means a state license issued under this division for commercial cannabis activity involving medicinal cannabis.

(ap) “M-licensee” means any person holding a license under this division for commercial cannabis activity involving medicinal cannabis.

(aq) “Manufacture” means to compound, blend, extract, infuse, package, label, or otherwise make or prepare a cannabis product.

(ar) “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction.

(as) “Microbusiness” means a licensee that is authorized to engage in cultivation of cannabis on an area less than 10,000 square feet and to act as a licensed distributor, Level 1 manufacturer, and retailer under this division, provided such licensee can demonstrate compliance with all requirements imposed by this division on licensed cultivators, distributors, Level 1 manufacturers, and retailers to the extent the licensee engages in such activities.

(at) “Nursery” means a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.

(au) “Operation” means any act for which licensure is required under the provisions of this division, or any commercial transfer of cannabis or cannabis products.

(av) “Owner” means any of the following:

(1) A person with an aggregate ownership interest of 20 percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

(2) The chief executive officer of a nonprofit or other entity.

(3) A member of the board of directors of a nonprofit.

(4) An individual who will be participating in the direction, control, or management of the person applying for a license.

(aw) “Package” means any container or receptacle used for holding cannabis or cannabis products.

(ax) “Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

(ay) “Physician’s recommendation” means a recommendation by a physician and surgeon that a patient use cannabis provided in accordance with the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code.

(az) “Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted.

(ba) “Primary caregiver” has the same meaning as in Section 11362.7 of the Health and Safety Code.

(bb) “Processor” means a person authorized to engage in only trimming, drying, curing, grading, packaging, and labeling of cannabis and nonmanufactured cannabis products.

(bc) “Purchaser” means the customer who is engaged in a transaction with a licensee for purposes of obtaining cannabis or cannabis products.

(bd) “Retailer” means a person authorized to engage in the retail sale and delivery of cannabis or cannabis products to customers.

(be) “Sell,” “sale,” and “to sell” include any transaction whereby, for any consideration, title to cannabis or cannabis products is transferred from one person to another, and includes the delivery of cannabis or cannabis products pursuant to an order placed for the purchase of the same and soliciting or receiving an order for the same, but does not include the return of cannabis or cannabis products by a licensee to the licensee from whom the cannabis or cannabis product was purchased.

(bf) “Synthetic cannabinoid” means a cannabinoid or cannabinoid-like compound that is produced by using biosynthesis, bioconversion, or chemical synthesis, reaction, modification, conversion, or a similar process. This includes, but is not limited to, any form of tetrahydrocannabinol that was produced by the conversion of cannabidiol (CBD) (CAS number 13956-29-1), or any other chemical substance identified by the department in regulation. Synthetic cannabinoid does not include any of the following:

(1) A cannabinoid produced by the decarboxylation of acidic phytocannabinoids without the use of chemical reagents or chemical catalysts. This includes, but is not limited to, the conversion of cannabidiolic acid (CBDA) into cannabidiol (CBD) without the use of chemical reagents or catalysts.

(2) A cannabinoid that occurs naturally in the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis plant that was produced with the use of heat, light, or pressure from other phytocannabinoids, and without the use of any chemical reagents or catalysts. This includes, but is not limited to, the conversion of tetrahydrocannabinol into cannabinol (CBN) with the use of heat, light, or pressure, and without the use of any chemical reagents or catalysts.

(3) Any other chemical substance identified by the department in regulation.

(bg) “Testing laboratory” means a laboratory, facility, or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following:

(1) Accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state.

(2) Licensed by the department.

(bh) “Unique identifier” means an alphanumeric code or designation used in reference to a specific quantity of cannabis or cannabis products that is issued pursuant to the track and trace program established by the department.

(bi) “Youth center” has the same meaning as in Section 11353.1 of the Health and Safety Code.

SEC. 4.

Section 26002 of the Business and Professions Code is amended to read:

26002.

(a) This division does not apply to any product containing cannabinoids that has been approved by the federal Food and Drug Administration that has either been placed on a schedule of the federal Controlled Substances Act other than Schedule I or has been exempted from one or more provisions of that act, and that is intended for prescribed use for the treatment of a medical condition.

(b) This division does not apply to activity performed pursuant to a registration with the United States Drug Enforcement Administration pursuant to Part 1318 (commencing with Section 1318.01) of Chapter 2 of Title 21 of the Code of Federal Regulations, as it read on January 19, 2021, provided that the person engaging in the activity provides the licensing authority valid documentation of their registration with the United States Drug Enforcement Administration and the location where the activity will be performed prior to engaging in the activity.

(c) This division does not apply to products that are regulated pursuant to and meet the requirements of the Sherman Food, Drug, and Cosmetic Law (Part 5 (commencing with Section 109875) of Division 104 of the Health and Safety Code), including products that do not contain cannabinoids other than CBD isolate.

(d) This division does not permit the introduction into the licensed market of cannabis concentrate or cannabis products derived in whole or in part from industrial hemp that have been manufactured without a cannabis manufacturing license, as required by this division.

(e) Cannabis concentrates and cannabis products are not considered food, as defined by Section 109935 of the Health and Safety Code, a processed pet food, as defined by Section 113025 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

SEC. 5.

Section 26015 of the Business and Professions Code is amended to read:

26015.

(a) The department may make or cause to be made such investigation as it deems necessary to carry out its duties under this division.

(b) The chief of enforcement and all investigators, inspectors, and deputies of the department identified by the director have the authority of peace officers while engaged in exercising the powers granted or performing the duties imposed upon them in enforcing the laws of the state or commencing directly or indirectly any criminal prosecution arising from any investigation conducted under these laws. All persons herein referred to shall be deemed to be acting within the scope of employment with respect to all acts and matters set forth in this section.

(d) Notwithstanding any other law, the department may employ peace officers and shall be exempt from the requirements of Section 13540 of the Penal Code.

SEC. 6.

Section 26031.6 of the Business and Professions Code is amended to read:

26031.6.

(a) It is a violation of this division for a person to use or possess the universal symbol described in paragraph (7) of subdivision (c) of Section 26130 in connection with commercial activity other than commercial cannabis activity licensed under this division. For purposes of this section, use or possession of the universal symbol in connection with commercial activity includes, but is not limited to, use or possession of any package, label, or advertisement of any kind bearing the universal symbol, or bearing any likeness, simulation, or any representation substantially similar to the universal symbol, whether or not that package, label, or advertisement is affixed to, or otherwise associated with, cannabis or cannabis products.

(b) A person using or possessing the universal symbol in connection with commercial activity shall do both of the following:

(1) Maintain records establishing that the use or possession is in connection with commercial cannabis activity licensed pursuant to this division.

(2) Produce those records upon demand of a peace officer, an employee of the department, or an employee of the California Department of Tax and Fee Administration.

(c) A person shall not alter or crop the universal symbol except in a manner allowed by this Division or permitted by regulation.

(d) Each individual package, label, advertisement, or other document or object of any kind bearing the universal symbol or any likeness or simulation of the universal symbol in violation of this section shall constitute a separate violation of this section.

(e) (1) A package, label, advertisement, or other document or object of any kind bearing the universal symbol or any likeness or simulation of the universal symbol in violation of this section is contraband and shall be seized and summarily forfeited to the state, and may be summarily destroyed by the state, subject to subdivision (f). A peace officer or an employee of the department may summarily seize such contraband.

(2) Failure to maintain or produce records as required pursuant to subdivision (b) in connection with a package, label, advertisement, or other document or object of any kind bearing the universal symbol shall establish that the package, label, advertisement, or other document or object is contraband for purposes of this subdivision.

(f) A person from whom a package, label, advertisement, or other document or object is seized pursuant to subdivision (e) may petition the superior court of the county in which the seizure occurred within 10 days of the seizure to seek the return of the package, label, advertisement, or other document or object. The petitioner shall bear the burden of proving, by a preponderance of the evidence, that the package, label, advertisement, or other document or object was not used or possessed in connection with commercial activity other than commercial cannabis activity licensed pursuant to this division.

(g) This section does not prohibit the educational, informational, or other noncommercial use or possession of the universal symbol.

SEC. 7.

Section 26036 of the Business and Professions Code is amended to read:

26036.

Nothing in this division shall be interpreted to supersede or limit the department or other state and local agencies from exercising their existing enforcement authority, including, but not limited to, under this division, the Fish and Game Code, the Food and Agricultural Code, the Government Code, the Health and Safety Code, the Penal Code, the Public Resources Code, the Water Code, or the application of those laws.

SEC. 8.

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 as required by this division shall be subject to civil penalties of up to three times the amount of the license fee for each violation. Each day of operation shall constitute a separate violation of this section.

(2) (A) A person aiding and abetting unlicensed commercial cannabis activity shall be subject to civil penalties of up to three times the amount of the license fee for each violation, but in no case shall the penalty exceed thirty thousand dollars ($30,000) for each violation. Each day of operation of unlicensed commercial cannabis activity that a person is found to have aided and abetted shall constitute a separate violation of this section.

(B) For the purposes of this section, in order to prove that a person aided and abetted an unlicensed cannabis activity, all of the following shall be demonstrated:

(i) The person was an owner, officer, controlling shareholder, or in a similar position of authority allowing them to make command or control decisions regarding the operations and management of the unlicensed cannabis activity or the property in which the activity is taking place.

(ii) The person had actual knowledge that the cannabis activity was unlicensed and that the cannabis activity required a license.

(iii) The person provided substantial assistance or encouragement to the unlicensed cannabis activity.

(iv) The person’s conduct was a substantial factor in furthering the unlicensed cannabis activity.

(3) (A) A person who has management or control of a commercial property, or a commercial 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 commercial property, building, room, space, or enclosure for the purpose of the unlicensed commercial cultivation, manufacture, storage, sale, or distribution of cannabis shall be subject to civil penalties of up to ten thousand dollars ($10,000) for each violation. Each day of violation shall constitute a separate violation of this section.

(B) For purposes of this paragraph, in order to prove that a person knowingly rented, leased, or made available the commercial property for unlawful commercial cannabis activity, it shall be demonstrated that the person had actual knowledge that the cannabis-related activity was for commercial purposes, required a license, and was unlicensed. The presence of a lawful amount of cannabis, cannabis products, or cannabis plants, subject to Sections 11362.1 and 11362.45 of the Health and Safety Code, shall not be evidence of actual knowledge.

(4) In assessing a penalty, a court shall give due consideration to the appropriateness of the amount of the civil penalty with respect to factors the court determines to be relevant, including the following:

(A) The gravity of the violation by the licensee or person.

(B) The good faith of the licensee or person.

(D) Whether, and to what extent, the licensee or person profited from the unlicensed cannabis activity.

(5) Cannabis or cannabis products associated with a violation described in this subdivision may be destroyed in accordance with Section 11479 of the Health and Safety Code. The person in violation shall be responsible for the cost of the destruction of cannabis or cannabis products associated with their violation.

(b) An action for civil penalties brought against a person pursuant to this division shall not be commenced unless the action is filed within three years from the date of the violation.

(c) (1) Actions for civil penalties pursuant to paragraph (1) of subdivision (a) may be brought by the Attorney General on behalf of the people, on behalf of the department, or on behalf of the participating agency, or by a city or county counsel or city prosecutor.

(2) Actions for civil penalties pursuant to paragraph (2) of subdivision (a) shall be brought exclusively by the Attorney General on behalf of the people, on behalf of the department, or on behalf of the participating agency, or by a city or county counsel or city prosecutor in a city or county having a population in excess of 750,000.

(3) Actions for civil penalties pursuant to paragraph (3) of subdivision (a) shall be brought exclusively by the Attorney General on behalf of the people, on behalf of the department, or on behalf of the participating agency, or by a city or county counsel, or city prosecutor.

(d) (1) All civil penalties imposed and collected pursuant to this section by a court shall be deposited into the General Fund except as provided in this subdivision.

(2) If an action for civil penalties is brought against a person pursuant to this division by the Attorney General on behalf of the people or on behalf of the department or a participating agency, the penalty shall first be used to reimburse the Attorney General and the department or the participating agency for the costs of investigating and prosecuting the action, including expert fees and reasonable attorney’s fees, with the remainder, if any, to be deposited into the General Fund.

(3) If the action is brought by a county counsel, the penalty shall first be used to reimburse the county counsel for the costs of bringing the action for civil penalties, with one-half of the remainder, if any, to be paid to the treasurer of the county in which the judgment was entered and one-half deposited into the General Fund.

(4) 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 one-half of the remainder, if any, to be paid to the treasurer of the city in which the complaining attorney has jurisdiction and one-half deposited into the General Fund.

(e) Notwithstanding subdivision (a), criminal penalties shall continue to apply to an unlicensed person engaging in commercial cannabis activity in violation of this division.

(f) (1) This section does not limit, preempt, or otherwise affect any other state or local law, rule, regulation, or ordinance applicable to the conduct described in subdivision (a), or otherwise relating to commercial cannabis activities.

(2) This section is meant to further the intent of the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA), which allows local governments to reasonably regulate the cultivation of nonmedical cannabis for personal use by adults 21 years of age and older through zoning and other local laws.

SEC. 9.

Section 26039.4 of the Business and Professions Code is amended to read:

26039.4.

A peace officer, including a peace officer with the department, may seize cannabis, industrial hemp, and cannabis products in any of the following circumstances:

(a) The cannabis or cannabis product is subject to recall or embargo by the department.

(b) The cannabis or cannabis product is subject to seizure or destruction pursuant to this division.

(c) The cannabis or cannabis product is seized related to an investigation or disciplinary action for violation of this division.

(d) The industrial hemp or cannabis product is subject to seizure under the Sherman Food, Drug, and Cosmetic Law (Part 5 (commencing with Section 109875) of Division 104 of the Health and Safety Code).

(e) The industrial hemp is in violation of United States Domestic Industrial Hemp Program (7 U.S.C. § 990 et seq.), and, if applicable, the California State Regulatory Plan for Hemp Production (Chapter 8 of Division 4 of Title 3 of the California Code of Regulations), or an applicable tribal plan.

SEC. 10.

Section 26039.6 of the Business and Professions Code is amended to read:

26039.6.

(a) Cannabis or a cannabis product is adulterated if it is any of the following:

(1) It has been produced, prepared, packed, or held under unsanitary conditions in which it may have become contaminated with filth or in which it may have been rendered injurious.

(2) It consists, in whole or in part, of any filthy, putrid, or decomposed substance.

(3) It bears or contains any poisonous or deleterious substance that may render it injurious to users under the conditions of use suggested in the labeling or under conditions that are customary or usual.

(4) It bears or contains a substance that is restricted or limited under this division or regulations promulgated pursuant to this division and the level of substance in the product exceeds the limits specified pursuant to this division or in regulation.

(5) Its concentrations differ from, or its purity or quality is below, that which it is represented to possess.

(6) The methods, facilities, or controls used for its cultivation, manufacture, packing, or holding do not conform to, or are not operated or administered in conformity with, practices established by regulations adopted under this division to ensure that the cannabis or cannabis product meets the requirements of this division as to safety and has the concentrations it purports to have and meets the quality and purity characteristics that it purports or is represented to possess.

(7) Its container is composed, in whole or in part, of any poisonous or deleterious substance that may render the contents injurious to health.

(8) It is a cannabis product and a substance has been mixed or packed with it after testing by a testing laboratory so as to reduce its quality or concentration or if a substance has been substituted, wholly or in part, for the cannabis product.

(b) It is unlawful to cultivate, manufacture, distribute, sell, deliver, hold, or offer for sale cannabis or a cannabis product that is adulterated.

(d) It is unlawful to receive in commerce cannabis or a cannabis product that is adulterated or to distribute, deliver, or proffer for delivery any such cannabis or cannabis product.

SEC. 11.

Section 26051.5 of the Business and Professions Code is amended to read:

26051.5.

(a) An applicant for a state license issued pursuant to this division to conduct commercial cannabis activity, as defined in Section 26001, shall do all of the following:

(1) Except as provided in subparagraph (G), require that each owner, as defined in paragraphs (1) to (3), inclusive, of subdivision (ap) of Section 26001, electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance pending trial or appeal.

(A) Notwithstanding any other law, the department may obtain criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant or its owners, as defined in paragraphs (1) to (3), inclusive, of subdivision (ap) of Section 26001, for any state license, as described in Section 26050, under this division pursuant to subdivision (u) of Section 11105 of the Penal Code.

(B) When received, the Department of Justice shall transmit fingerprint images and related information received pursuant to this section to the Federal Bureau of Investigation for the purpose of obtaining a federal criminal history records check. The Department of Justice shall review the information returned from the Federal Bureau of Investigation and compile and disseminate a response to the licensing authority.

(C) The Department of Justice shall provide a response to the licensing authority pursuant to paragraph (1) of subdivision (p) of Section 11105 of the Penal Code.

(D) The department shall request from the Department of Justice subsequent notification service, as provided pursuant to Section 11105.2 of the Penal Code, for applicants.

(E) The Department of Justice shall charge the applicant a fee sufficient to cover the reasonable cost of processing the requests described in this paragraph.

(F) Notwithstanding any other law, a licensing authority may request and receive from a local or state agency certified records of all arrests and convictions, certified records regarding probation, and any and all other related documentation needed to complete an applicant or licensee investigation. A local or state agency may provide those records to a licensing authority upon request.

(G) If an owner has previously submitted fingerprint images and related information required by the Department of Justice pursuant to this paragraph in connection with a valid state license issued by a licensing authority, all of the following apply:

(i) The owner shall not be required to submit additional fingerprint images and related information pursuant to this paragraph in connection with a subsequent application for a state license.

(ii) The department shall not consider the owner’s criminal history information obtained from the fingerprint images and related information that were previously submitted pursuant to this paragraph when considering whether to issue a subsequent state license.

(iii) An owner shall not be required to resubmit owner-related information previously provided to the department.

(2) Provide evidence of the legal right to occupy and use the proposed location and provide a statement from the landowner of real property or that landowner’s agent where the commercial cannabis activity will occur, as proof to demonstrate the landowner has acknowledged and consented to permit commercial cannabis activities to be conducted on the property by the tenant applicant.

(3) Provide evidence that the proposed location is in compliance with subdivision (b) of Section 26054.

(4) Provide a statement, signed by the applicant under penalty of perjury, that the information provided is complete, true, and accurate.

(5) (A) (i) For an applicant with 20 or more employees, or an applicant with 10 or more employees that submits an application on or after July 1, 2024, provide a notarized statement that the applicant will enter into, or demonstrate that it has already entered into, and will abide by the terms of a labor peace agreement. On and after July 1, 2024, the department shall not renew a license for a licensee with 10 or more employees unless the licensee provides a statement that the licensee has already entered into and will abide by the terms of a labor peace agreement.

(ii) For an applicant with 10 or more employees but less than 20 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee, or on or before July 1, 2024, whichever is earlier.

(iii) For an applicant with less than 10 employees that has not yet entered into a labor peace agreement, provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 10th employee, or on or before July 1, 2024, whichever is later.

(iv) Nothing in this paragraph shall be construed to limit the authority of the department to revoke or suspend a license for a violation of this paragraph.

(B) Compliance with the terms of an applicable labor peace agreement is a condition of licensure. A licensee seeking renewal of any license shall attest to the department that it remains in compliance with the terms of any applicable labor peace agreement.

(C) Any labor organization, or any current or former employee of the relevant licensee, may report to the department that a licensee has failed to provide a truthful attestation of compliance with subparagraph (B).

(i) The reporting party shall provide documentation, in a form and manner required by the department, to substantiate their allegation before the department considers it. The department shall collaborate with such agencies as it deems relevant to evaluate the report.

(ii) If the department substantiates the validity of a report made pursuant to this subparagraph, the department may suspend, revoke, place on probation with terms and conditions, or otherwise discipline the license and fine the licensee.

(D) (i) Any labor organization, or any current or former employee of the relevant licensee, may file a complaint with the Agricultural Labor Relations Board that an organization with which a licensee has entered into a labor peace agreement is not a bona fide labor organization.

(ii) The Agricultural Labor Relations Board shall consider all relevant evidence provided or obtained in rendering a decision on whether the entity is a bona fide labor organization and issue a report with its findings no later than 90 days from receiving the complaint.

(iii) If the Agricultural Labor Relations Board determines that the entity is not a bona fide labor organization, the labor peace agreement shall be null and void. The department shall promptly notify all licensees that have signed labor peace agreements with the entity that the entity was found not to be a bona fide labor organization and offer those licensees a reasonable time period, not to exceed 180 days, to enter into a labor peace agreement with a bona fide labor organization. Failure to enter into a labor peace agreement with a bona fide labor organization after that reasonable time period shall be a violation of this section.

(E) For the purposes of this paragraph, all of the following shall apply:

(i) “Employee” does not include a supervisor.

(ii) “Labor organization” means any organization of any kind, or any agency or employee representation committee or plan, in which employees participate and which exists, in whole or in part, for the purpose of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work for employees.

(iii) “Supervisor” means an individual having authority, in the interest of the applicant, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment.

(6) Provide the applicant’s valid seller’s permit number issued pursuant to Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code or indicate that the applicant is currently applying for a seller’s permit.

(7) Provide any other information required by the department.

(8) For an applicant seeking a cultivation license, provide a statement declaring the applicant is an “agricultural employer,” as defined in the Alatorre-Zenovich-Dunlap-Berman Agricultural Labor Relations Act of 1975 (Part 3.5 (commencing with Section 1140) of Division 2 of the Labor Code), to the extent not prohibited by law.

(9) Pay all applicable fees required for licensure by the department.

(10) Provide proof of a bond to cover the costs of destruction of cannabis or cannabis products if necessitated by a violation of this division. The costs of destruction include, but are not limited to, all administrative, investigatory, and enforcement costs incurred by the department.

(11) (A) Provide a statement, upon initial application and application for renewal, that the applicant employs, or will employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Division of Occupational Safety and Health 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This paragraph shall not be construed to alter or amend existing requirements for employers to provide occupational safety and health training to employees.

(B) An applicant with only one employee shall not be subject to subparagraph (A).

(C) For purposes of this paragraph “employee” has the same meaning as provided in subparagraph (B) of paragraph (5) and “supervisor” has the same meaning as provided in subparagraph (C) of paragraph (5).

(b) An applicant shall also include in the application a detailed description of the applicant’s operating procedures for all of the following, as required by the department:

(1) Cultivation.

(2) Extraction and infusion methods.

(3) The transportation process.

(4) Inventory procedures.

(5) Quality control procedures.

(6) Security protocols.

(7) For applicants seeking licensure to cultivate, the source or sources of water the applicant will use for cultivation, as provided in subdivisions (a) to (c), inclusive, of Section 26060.1. For purposes of this paragraph, “cultivation” as used in Section 26060.1 shall have the same meaning as defined in Section 26001. The department shall consult with the State Water Resources Control Board and the Department of Fish and Wildlife in the implementation of this paragraph.

(c) The applicant shall also provide a complete detailed diagram of the proposed premises wherein the license privileges will be exercised, with sufficient particularity to enable ready determination of the bounds of the premises, showing all boundaries, dimensions, entrances and exits, interior partitions, walls, rooms, and common or shared entryways, and include a brief statement or description of the principal activity to be conducted therein, and, for licenses permitting cultivation, measurements of the planned canopy, including aggregate square footage and individual square footage of separate cultivation areas, if any, roads, water crossings, points of diversion, water storage, and all other facilities and infrastructure related to the cultivation.

(d) Provide a complete list of every person with a financial interest in the person applying for the license as required by the department. For purposes of this subdivision, “persons with a financial interest” does not include persons whose only interest in a licensee is an interest in a diversified mutual fund, blind trust, or similar instrument.

SEC. 11.5.

Section 26051.5 of the Business and Professions Code is amended to read:

26051.5.

(a) An applicant for a state license issued pursuant to this division to conduct commercial cannabis activity, as defined in Section 26001, shall do all of the following:

(1) Except as provided in subparagraph (G), require that each owner, as defined in paragraphs (1) to (3), inclusive, of subdivision (aq) of Section 26001, electronically submit to the Department of Justice fingerprint images and related information required by the Department of Justice for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and state and federal arrests, and also information as to the existence and content of a record of state or federal convictions and arrests for which the Department of Justice establishes that the person is free on bail or on their own recognizance pending trial or appeal.

(A) Notwithstanding any other law, the department may obtain criminal history information from the Department of Justice and the Federal Bureau of Investigation for an applicant or its owners, as defined in paragraphs (1) to (3), inclusive, of subdivision (aq) of Section 26001, for any state license, as described in Section 26050, under this division pursuant to subdivision (u) of Section 11105 of the Penal Code.