Today's Law As Amended

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AB-1417 Cannabis advertisement and marketing.(2019-2020)



SECTION 1.

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

26038.
 (a) A person engaging in commercial cannabis activity without a license as  required by this division  division, or aiding and abetting such activity,  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  their  violation.
(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  people or on behalf of any participating agency, the penalty shall first be used to reimburse the Attorney General and the participating agency for the costs of investigating and bringing the action for civil penalties, with the remainder collected, if any, to 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.

SEC. 2.

 Section 26151 of the Business and Professions Code is amended to read:

26151.
 (a) (1) All advertisements and marketing shall accurately and legibly identify the licensee responsible for its content, by adding, at a minimum, the licensee’s license number.
(2) A technology platform shall not display an advertisement by a licensee on an Internet Web internet web  page unless the advertisement displays the license number of the licensee.
(3) An outdoor advertising company subject to the Outdoor Advertising Act (Chapter 2 (commencing with Section 5200) of Division 3) shall not display an advertisement by a licensee unless the advertisement displays the license number of the licensee.
(4) A technology platform shall not substitute an internal identification system in place of an active license number issued by a licensing authority pursuant to this division.
(b) Any advertising or marketing placed in broadcast, cable, radio, print, and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable, up-to-date audience composition data. Any advertising or marketing by a licensee placed in broadcast, cable, radio, print, and digital communication shall contain a license number. 
(c) Any advertising or marketing involving direct, individualized communication or dialogue controlled by the licensee shall utilize a method of age affirmation to verify that the recipient is 21 years of age or older before engaging in that communication or dialogue controlled by the licensee. For purposes of this section, that method of age affirmation may include user confirmation, birth date disclosure, or other similar registration method.
(d) All advertising shall be truthful and appropriately substantiated.
(e) (1) Any licensee who has violated paragraph (1) of subdivision (a) shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) per day for each violation in addition to any other penalty established by law. In assessing a civil penalty under this subdivision, consideration shall be given to the appropriateness of the amount assessed taking into account all of the following:
(A) The nature and extent of the violation.
(B) Whether the licensee took good faith measures to comply with paragraph (1) of subdivision (a).
(C) The history of previous violations.
(2) A civil penalty may be assessed and recovered pursuant to this section in a civil action brought in any court of competent jurisdiction by any of the following:
(A) The Attorney General in the name of the people of the State of California.
(B) Any district attorney.
(C) Any city attorney of a city having a population in excess of 750,000 or, with the consent of the district attorney, by a city prosecutor in any city or city and county having a full-time city prosecutor.
(3) (A) Notwithstanding subdivision (b) of Section 26038, all civil penalties collected by a civil action brought by the Attorney General pursuant to this subdivision shall be deposited into the Cannabis Advertisement Penalties Account, which is hereby created as an account in the Cannabis Control Fund. Upon appropriation by the Legislature, all amounts deposited in the Cannabis Advertisement Penalties Account shall be allocated to licensing authorities to be used toward enforcement efforts against unlicensed commercial cannabis activity.
(B) All civil penalties collected by a civil action brought by a district attorney or a city attorney or prosecutor shall be used towards enforcement efforts against unlicensed commercial cannabis activity, after reimbursement to the city or county, as applicable, for the costs of bringing the civil action.

SEC. 3.

 Section 26151.5 is added to the Business and Professions Code, to read:

26151.5.
 (a) An operator of an internet website, online service, online application, or mobile application shall display a clear and reasonable statement to individuals who visit or use the internet website, online service, online application, or mobile application, and who are presented with any advertising or marketing for cannabis goods, explaining all of the following:
(1) The unlicensed sale of cannabis products by any entity not licensed for that sale by the State of California and the locality within which that entity is doing business violates California law.
(2) The cannabis products sold by unlicensed entities may not meet the safety, quality, or other standards required for the lawful sale of cannabis products by the State of California.
(3) Consumers who purchase cannabis products from unlicensed entities do so at their own risk.
(b) The clear and reasonable statement required pursuant to this section shall be prominently displayed on any homepage and landing page of the operator’s internet website, online service, online application, or mobile application.
(c) An operator of an internet website, online service, online application, or mobile application that is operated primarily for the purpose of promoting, or disseminating information about, the sale of cannabis products in the State of California shall not display an advertisement for the sale of cannabis products unless the advertisement displays the license number issued pursuant to this division of the licensee to which the advertisement pertains.
(d) (1) Any person who has violated this section shall be liable for a civil penalty not to exceed two thousand five hundred dollars ($2,500) per day for each violation in addition to any other penalty established by law. In assessing a civil penalty under this subdivision, consideration shall be given to the appropriateness of the amount assessed taking into account all of the following:
(A) The nature and extent of the violation.
(B) Whether the licensee took good faith measures to comply with paragraph (1) of subdivision (a).
(C) The history of previous violations.
(2) A civil penalty may be assessed and recovered pursuant to this section in a civil action brought in any court of competent jurisdiction by any of the following:
(A) The Attorney General in the name of the people of the State of California.
(B) Any district attorney.
(C) Any city attorney of a city having a population in excess of 750,000 or, with the consent of the district attorney, by a city prosecutor in any city or city and county having a full-time city prosecutor.
(3) (A) Notwithstanding subdivision (b) of Section 26038, all civil penalties collected by a civil action brought by the Attorney General pursuant to this subdivision shall be deposited into the Cannabis Advertisement Penalties Account, which is hereby created as an account in the Cannabis Control Fund. Upon appropriation by the Legislature, all amounts deposited in the Cannabis Advertisement Penalties Account shall be allocated to licensing authorities to be used toward enforcement efforts against unlicensed commercial cannabis activity.
(B) All civil penalties collected by a civil action brought by a district attorney or a city attorney or prosecutor shall be used toward enforcement efforts against unlicensed commercial cannabis activity, after reimbursement to the city or county, as applicable, for the costs of bringing the civil action.
SEC. 4.
 The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.