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AB-2094 Cannabis: facilities used for unlawful purposes.(2019-2020)

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Date Published: 05/06/2020 09:00 PM
AB2094:v98#DOCUMENT

Amended  IN  Assembly  May 06, 2020

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 2094

Introduced by Assembly Member Jones-Sawyer

February 05, 2020

An act to amend Section 11366.5 of the Health and Safety add Section 26039 to the Business and Professions Code, relating to cannabis.


LEGISLATIVE COUNSEL'S DIGEST


AB 2094, as amended, Jones-Sawyer. Cannabis: 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 specified licensing entities, including the Bureau of Cannabis Control, the State Department of Public Health, and the Department of Food and Agriculture. Existing law establishes the Cannabis Fines and Penalties Account, which is disbursed upon appropriation of the Legislature.
This bill would authorize a licensing authority under MAUCRSA to impose an administrative fine impose a civil penalty of up to $50,000 $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. 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 a licensing entity, 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 attorney’s 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.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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


SECTION 1.

 Section 26039 is added to the Business and Professions Code, in Chapter 3 of Division 10, 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 a licensing entity, 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 attorney’s fees.
(3) If the cause of action is brought by a licensing authority, the recovered costs shall be deposited in the Cannabis Control Fund, established in Section 26180.
(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 11366.5 of the Health and Safety Code is amended to read:
11366.5.

(a) A person who has management or control of a 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 building, room, space, or enclosure for the purpose of unlawfully manufacturing, storing, or distributing a controlled substance for sale or distribution shall be punished by imprisonment in the county jail for not more than one year, or pursuant to subdivision (h) of Section 1170 of the Penal Code.

(b) A person who has management or control of a building, room, space, or enclosure, either as an owner, lessee, agent, employee, or mortgagee, who knowingly allows the building, room, space, or enclosure to be fortified to suppress law enforcement entry in order to further the sale of any amount of cocaine base as specified in paragraph (1) of subdivision (f) of Section 11054, cocaine as specified in paragraph (6) of subdivision (b) of Section 11055, heroin, phencyclidine, amphetamine, methamphetamine, or lysergic acid diethylamide and who obtains excessive profits from the use of the building, room, space, or enclosure shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years.

(c) A person who violates subdivision (a) after previously being convicted of a violation of subdivision (a) shall be punished by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years.

(d)A licensing authority, as defined in Section 26001 of the Business and Professions Code, may impose an administrative fine of up to fifty thousand dollars ($50,000) per violation against a person who violates subdivision (a) for the purpose of unlawfully manufacturing, storing, or distributing cannabis. Each day of violation shall constitute a separate violation.

(e)For the purposes of this section, “excessive profits” means the receipt of consideration of a value substantially higher than fair market value.