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. MAUCRSA imposes duties on the Bureau of Cannabis Control in the Department of Consumer Affairs, the Department of Food and Agriculture, and the State Department of Public Health with respect to the creation, issuance, denial, suspension, and revocation of licenses issued pursuant to MAUCRSA. MAUCRSA authorizes those licensing authorities to issue a citation to a licensee or unlicensed person for any act or omission that violates or has violated a provision of MAUCRSA or a regulation adopted pursuant to MAUCRSA, as specified. MAUCRSA provides that these sanctions are separate from, and in addition to, all other administrative, civil, or criminal remedies. MAUCRSA authorizes those licensing authorities to recover from the licensee or person who was the subject of the citation costs of investigation and enforcement, as specified.

MAUCRSA requires all cannabis advertisements and marketing to accurately and legibly identify the licensee responsible for that content by adding, at a minimum, the licensee’s license number.

This bill would impose a civil penalty on any licensee that violates that requirement, not to exceed $2,500 per day for each violation. The bill would provide that, in assessing the civil penalty, consideration is required to be given to the appropriateness of the amount assessed taking into account specified factors. The bill would allow the Attorney General, a district attorney, or a city attorney or prosecutor, or a person in the public interest prosecutor to bring a civil action for the civil penalty, as specified.

MAUCRSA, in addition to the requirement that all cannabis advertisements and marketing accurately and legibly identify the licensee responsible for the content, also places certain audience restrictions and age affirmation requirements on cannabis advertisement and marketing.

This bill would require an operator of an internet website, online service, online application, or mobile application to display a clear and reasonable statement, meeting specified requirements, 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, containing specified explanations, including, among others, that 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. The bill would prohibit 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 from displaying an advertisement for the sale of cannabis products unless the advertisement displays the license number of the licensee to which the advertisement pertains. This bill would impose a civil penalty on any person that violates these requirements, not to exceed $2,500 per day for each violation. The bill would provide that, in assessing the civil penalty, consideration is required to be given to the appropriateness of the amount assessed taking into account specified factors. The bill would allow the Attorney General, a district attorney, or a city attorney or prosecutor, or a person in the public interest prosecutor to bring a civil action for the civil penalty, as specified.

This bill would require all civil penalties collected by civil action brought by the Attorney General or a person in the public interest pursuant to the provisions of this bill described above to be deposited into the Cannabis Advertisement Penalties Account, which this bill would create as an account in the Cannabis Control Fund, and would require, upon appropriation by the Legislature, all amounts deposited in the account to be allocated to licensing authorities to be used toward enforcement efforts against unlicensed commercial cannabis activity. The bill would require all civil penalties collected by a civil action brought by a district attorney or a city attorney or prosecutor to be used towards enforcement efforts against unlicensed commercial cannabis activity after reimbursement for costs.

MAUCRSA imposes specified restrictions on advertising or marketing placed in broadcast, cable, radio, print, and digital communications.

This bill would prohibit a technology platform from substituting an internal identification system in place of an active state licensee number issued by a state licensing authority pursuant to MAUCRSA. This bill would also require any advertising or marketing by a licensee placed in broadcast, cable, radio, print, and digital communication to contain a license number.

MAUCRSA imposes a civil penalty on a person engaging in commercial cannabis activity without a license as required by the act, of up to 3 times the amount of the license fee for each violation. That act provision requires all civil penalties imposed and collected pursuant to that provision by a licensing authority to be deposited into the General Fund, except as specified.

This bill would extend that civil penalty to persons aiding and abetting that unlicensed commercial cannabis activity.

MAUCRSA requires civil penalties collected by the Attorney General in an action brought against a person pursuant to the act on behalf of the people to be deposited into the General Fund.

This bill would extend that requirement to actions for civil penalties brought against a persons person pursuant to MAUCRSA by the Attorney General on the behalf of any participating agency. This bill would also instead require any civil penalties to be first 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. By authorizing the expenditure of civil penalties, which are general funds, to be used to reimburse the Attorney General and the participating agency, this bill would make an appropriation.

AUMA 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 the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.