This bill is part of the 2023 Cannabis Bills section of our ongoing update on California Cannabis Legislation – see the full California Cannabis Law Legislative Update which includes information on cannabis bills from other years.
AB 1601 (Alvarez D) Cannabis: enforcement by local jurisdictions.
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 establishes the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency to administer the act, and requires the department to be under the supervision and control of a director. MAUCRSA tasks the department with enforcement of MAUCRSA, but provides that it does not supersede or limit the authority of a local jurisdiction to adopt and enforce local ordinances to licensees under the act. MAUCRSA specifies grounds for disciplinary action under the act and provides that a person engaging in commercial cannabis activity without a license is subject to civil penalties, as specified. MAUCRSA authorizes the Attorney General, a county counsel, a city attorney, or a city prosecutor to bring an action, and requires the penalty to first be used to reimburse the prosecuting agency for specified costs of bringing the action, with the remainder, if any, to be deposited in the General Fund.
This bill would provide that grounds for disciplinary actions under MAUCRSA against a licensee include concealment of illegal business activities, including tax evasion and money laundering, by a licensee, or by an officer, director, owner, or authorized agent acting on behalf of the licensee. The bill would authorize a local jurisdiction to take disciplinary action against a licensee for illegal business activities by the licensee, or for concealment of illegal business activities, by a licensee, or by an officer, director, owner, or authorized agent acting on behalf of the licensee.
This bill would require, in an action brought by a county counsel, city attorney, or city prosecutor, the penalty to first be used to reimburse the prosecuting agency for specified costs in bringing the action, with 50% of the remainder, if any, paid to the county or city, as applicable, and the other 50% to be deposited into the General Fund.
Read more about California Cannabis Legislation – see the full California Cannabis Law Legislative Update.
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