reglab/statecodes huggingface dataset:
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26031.

26031. (a) The department may suspend, revoke, place on probation with terms and conditions, or otherwise discipline licenses issued by the department and fine a licensee, after proper notice and hearing to the licensee, except as provided in Section 26031.01, if the licensee is found to have committed any of the acts or omissions constituting grounds for disciplinary action. The disciplinary proceedings under this chapter shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein.
(b) The department may suspend or revoke a license when a local agency has notified the department that a licensee within its jurisdiction is in violation of state rules and regulations relating to commercial cannabis activities, and the department, through an investigation, has determined that the violation is grounds for suspension or revocation of the license.
(c) The department may take disciplinary action against a licensee for any violation of this division when the violation was committed by the licensee’s officers, directors, owners, agents, or employees while acting on behalf of the licensee or engaged in commercial cannabis activity.
(d) The suspension or expiration of a license issued by the department, or its suspension, forfeiture, or cancellation by order of the department or by order of a court of law, or its surrender without the written consent of the department, shall not, during any period in which it may be renewed, restored, reissued, or reinstated, deprive the department of its authority to institute or continue a disciplinary proceeding against the licensee upon any ground provided by law or to enter an order suspending or revoking the license or otherwise taking disciplinary action against the licensee on any such ground.
(Amended by Stats. 2021, Ch. 70, Sec. 21. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26031.01.

26031.01. (a) Notwithstanding Section 26031, the department may, before a hearing, suspend the license of a person who procured the issuance of the license by fraud, misrepresentation, deceit, or by the making of any material misstatement of fact in the application for such license.
(b) The department shall not order the suspension of a license pursuant to subdivision (a) 90 days after the date of issuance of the license.
(c) An order of suspension pursuant to subdivision (a) shall expire on the effective date of a decision of the department after a hearing conducted pursuant to this section.
(d) (1) The department shall file and serve a person whose license is suspended pursuant to subdivision (a) the order of suspension and a statement of issues as defined in Section 11504 of the Government Code. The department may serve the person by regular mail addressed to the last known address of the person or by personal service.
(2) A person whose license is suspended pursuant to subdivision (a) shall have 30 days after service of the order of suspension and statement of issues in which to file with the department a written request for a hearing on the statement of issues filed against them.
(3) (A) The department shall hold a hearing within 30 days after receipt of a request pursuant to paragraph (2) unless the person requests or agrees to a continuance. If the person does not request or agree to a continuance and a hearing is not commenced within 30 days after receipt of the request for a hearing, the order of suspension shall be vacated and set aside unless the person requests or agrees to a continuance.
(B) If the person requests or agrees to a continuance, the department shall hold a hearing on the date to which the department and the person agreed. If a hearing is not commenced on that date, the order of suspension shall be vacated and set aside.
(4) If the department does not render a decision within 30 days after completion of the hearing, the order of suspension shall be vacated and set aside.
(e) A hearing conducted pursuant to this section shall in all respects, except as otherwise expressly provided herein, conform to the substantive and procedural provisions of Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code applicable to a hearing on a statement of issues.
(Added by Stats. 2021, Ch. 70, Sec. 22. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26031.1.

26031.1. (a) Except as otherwise provided by law, in an order issued in resolution of a disciplinary proceeding before the department, the administrative law judge, upon request, may direct a licensee found to have committed a violation to pay a sum not to exceed the reasonable costs of the investigation and enforcement of the case.
(b) A certified copy of the actual costs, or a good faith estimate of costs where actual costs are not available, signed by the department or its designated representative shall be prima facie evidence of reasonable costs of investigation and prosecution of the case. The costs shall include the amount of investigative and enforcement costs up to the date of the hearing, including, but not limited to, charges imposed by the Attorney General.
(c) The administrative law judge shall make a proposed finding of the amount of reasonable costs of investigation and prosecution of the case when requested pursuant to subdivision (a). The finding of the administrative law judge with regard to costs shall not be reviewable by the department to increase the cost award. The department may reduce or eliminate the cost award, or remand to the administrative law judge if the proposed decision fails to make a finding on costs requested pursuant to subdivision (a).
(d) If an order for recovery of costs is made and timely payment is not made as directed in the department’s decision, the department may enforce the order for repayment in any appropriate court. This right of enforcement shall be in addition to any other rights the department may have as to any licensee to pay costs.
(e) In any action for recovery of costs, proof of the department’s decision shall be conclusive proof of the validity of the order of payment and the terms for payment.
(f) (1) Except as provided in paragraph (2), the department shall not renew or reinstate the license of any licensee who has failed to pay all of the costs ordered under this section.
(2) Notwithstanding paragraph (1), the department may, in its discretion, conditionally renew or reinstate for a maximum of one year the license of any licensee who demonstrates financial hardship and who enters into a formal agreement with the department to reimburse the department within that one-year period for the unpaid costs.
(g) All costs recovered under this section shall be considered a reimbursement for costs incurred and shall be deposited into the Cannabis Control Fund to be available upon appropriation by the Legislature.
(h) Nothing in this section shall preclude the department from including the recovery of the costs of investigation and enforcement of a case in any stipulated settlement.
(Added by Stats. 2021, Ch. 70, Sec. 23. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26031.2.

26031.2. (a) The superior court for the county in which any person has engaged or is about to engage in any act which constitutes a violation of this division may, upon a petition filed by the department with the approval of the director, issue an injunction or other appropriate order restraining such conduct. The proceedings under this section shall be governed by Chapter 3 (commencing with Section 525) of Title 7 of Part 2 of the Code of Civil Procedure.
(b) The superior court for the county in which any person has engaged in any act which constitutes a violation of this division may, upon a petition filed by the department with the approval of the director, order such person to make restitution to persons injured as a result of such violation.
(c) The court may order a person subject to an injunction or restraining order, provided for in subdivision (a), or subject to an order requiring restitution pursuant to subdivision (b), to reimburse the department for expenses incurred by the department in its investigation related to its petition.
(d) The remedy provided for by this section shall be in addition to, and not a limitation on, the authority provided for in any other section of this division.
(Added by Stats. 2021, Ch. 70, Sec. 24. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26031.6.

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, 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.
(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) Each individual package, label, advertisement, or other document or object of any kind bearing the universal symbol in violation of this section shall constitute a separate violation of this section.
(d) (1) A package, label, advertisement, or other document or object of any kind bearing the universal symbol in violation of this section is contraband and shall be seized and summarily forfeited to the state, subject to subdivision (e). 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.
(e) A person from whom a package, label, advertisement, or other document or object is seized pursuant to subdivision (d) 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.
(f) This section does not prohibit the educational, informational, or other noncommercial use or possession of the universal symbol.
(Added by Stats. 2023, Ch. 563, Sec. 1. (AB 1126) Effective January 1, 2024.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26032.

26032. (a) The actions of a licensee, its employees, and its agents are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law if they are all of the following:
(1) Permitted pursuant to a state license.
(2) Permitted pursuant to a local authorization, license, or permit issued by the local jurisdiction, if any.
(3) Conducted in accordance with the requirements of this division and regulations adopted pursuant to this division.
(b) The actions of a person who, in good faith, allows his or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and, if required by the applicable local ordinances, a local license or permit, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.
(Repealed and added by Stats. 2017, Ch. 27, Sec. 18. (SB 94) Effective June 27, 2017.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26033.

26033. (a) A qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who cultivates, possesses, stores, manufactures, or transports cannabis exclusively for his or her personal medical use but who does not provide, donate, sell, or distribute cannabis to any other person is not thereby engaged in commercial cannabis activity and is therefore exempt from the licensure requirements of this division.
(b) A primary caregiver who cultivates, possesses, stores, manufactures, transports, donates, or provides cannabis exclusively for the personal medical purposes of no more than five specified qualified patients for whom he or she is the primary caregiver within the meaning of Section 11362.7 of the Health and Safety Code, but who does not receive remuneration for these activities except for compensation in full compliance with subdivision (c) of Section 11362.765 of the Health and Safety Code, is exempt from the licensure requirements of this division.
(Repealed and added by Stats. 2017, Ch. 27, Sec. 20. (SB 94) Effective June 27, 2017.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26034.

26034. All accusations against licensees shall be filed by the department within five years after the performance of the act or omission alleged as the ground for disciplinary action; provided, however, that the foregoing provision shall not constitute a defense to an accusation alleging fraud or misrepresentation as a ground for disciplinary action. The cause for disciplinary action in that case shall not be deemed to have accrued until discovery, by the department, of the facts constituting the fraud or misrepresentation, and, in that case, the accusation shall be filed within five years after that discovery.
(Amended by Stats. 2021, Ch. 70, Sec. 26. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26035.

26035. The director shall designate the persons employed by the department for purposes of the administration and enforcement of this division. The director shall ensure that a sufficient number of employees are qualified peace officers for purposes of enforcing this division.
(Amended by Stats. 2021, Ch. 70, Sec. 27. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26036.

26036. Nothing in this division shall be interpreted to supersede or limit state agencies from exercising their existing enforcement authority, including, but not limited to, under the Fish and Game Code, the Food and Agricultural Code, the Government Code, the Health and Safety Code, the Public Resources Code, the Water Code, or the application of those laws.
(Added November 8, 2016, by initiative Proposition 64, Sec. 6.1.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26037.

26037. (a) The actions of a licensee, its employees, and its agents that are (1) permitted under a license issued under this division and any applicable local ordinances and (2) conducted in accordance with the requirements of this division and regulations adopted pursuant to this division, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.
(b) The actions of a person who, in good faith, allows his or her property to be used by a licensee, its employees, and its agents, as permitted pursuant to a state license and any applicable local ordinances, are not unlawful under state law and shall not be an offense subject to arrest, prosecution, or other sanction under state law, or be subject to a civil fine or be a basis for seizure or forfeiture of assets under state law.
(Added November 8, 2016, by initiative Proposition 64, Sec. 6.1.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26037.5.

26037.5. (a) A person or entity shall not engage in commercial cannabis activity without a state license issued by the department pursuant to this division.
(b) The requirement to obtain a state license for the cultivation of cannabis pursuant to this division does not apply to the cultivation of cannabis in accordance with Section 11362.1 of the Health and Safety Code or the Compassionate Use Act or to persons or entities licensed under subdivision (b) of Section 26070.5.
(Added by Stats. 2021, Ch. 70, Sec. 28. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26038.1.

26038.1. (a) In addition to other remedies permitted by law, a licensee under this division may bring an action in superior court against a person engaging in commercial cannabis activity without a license as required by this division.
(b) In order to prevail in an action brought pursuant to subdivision (a), a licensee shall demonstrate actual harm resulting from the unlicensed commercial cannabis activity.
(c) In an action pursuant to subdivision (a), the court may enter an order enjoining the defendant from engaging in commercial cannabis activity without a license as required by this division.
(d) A licensee that prevails in an action brought pursuant to subdivision (a) shall be entitled to both of the following:
(1) Either of the following damages, at the election of the prevailing licensee:
(A) Actual damages caused by the unlicensed commercial cannabis activity.
(B) Statutory damages not to exceed seventy-five thousand dollars ($75,000).
(2) Reasonable attorney’s fees and costs.
(e) This section does not apply to any violation of the Labor Code committed by a person engaging in unlicensed cannabis activity and shall not form the basis for a cause of action under the Labor Code Private Attorneys General Act of 2004 (Part 13 (commencing with Section 2698) of Division 2 of the Labor Code).
(Added by Stats. 2023, Ch. 467, Sec. 1. (AB 1171) Effective January 1, 2024.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26039.1.

26039.1. (a) When the department has evidence that cannabis or a cannabis product is adulterated or misbranded, the department shall notify the licensee. The licensee may conduct a voluntary recall of the affected cannabis or cannabis product and may remediate the cannabis or cannabis product, if approved by the department, or shall destroy the affected cannabis or cannabis product under the supervision of the department.
(b) The department may issue a mandatory recall order and require the licensee to immediately cease distribution of cannabis or a cannabis product and recall the cannabis or cannabis product if the department determines both of the following:
(1) The cultivation, manufacture, distribution, or sale of the cannabis or cannabis product creates or poses an immediate and serious threat to human life or health.
(2) Other procedures available to the department to remedy or prevent the occurrence of the situation would result in an unreasonable delay.
(c) The department shall provide the licensee an opportunity for an informal proceeding on the matter, as determined by the department, within five days, on the actions required by the order and on why the cannabis or cannabis product should not be recalled. Following the proceeding, the order shall be affirmed, modified, or set aside as determined appropriate by the department.
(d) The department’s powers set forth in this section expressly include the power to order movement, segregation, isolation, or destruction of cannabis or cannabis products, as well as the power to hold cannabis or cannabis products in place.
(e) If the department determines it is necessary, it may issue the mandatory recall order, may conduct the recall, and may use all appropriate measures to obtain reimbursement from the licensee for any and all costs associated with these orders. All funds obtained by the department from these efforts shall be deposited in the Cannabis Control Fund, and shall be available for use by the department upon appropriation by the Legislature.
(f) It is unlawful to move or allow to be moved cannabis or a cannabis product subject to an order issued pursuant to this section unless that person has first obtained written authorization from the department.
(Added by renumbering Section 26132 by Stats. 2021, Ch. 70, Sec. 70. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26039.4.

26039.4. A peace officer, including a peace officer with the department, may seize cannabis 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 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.
(Added by renumbering Section 26135 by Stats. 2021, Ch. 70, Sec. 73. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26039.5.

26039.5. (a) Cannabis or a cannabis product is misbranded if it is any of the following:
(1) Cultivated, processed, manufactured, packed, or held in a location not duly licensed as provided in this division.
(2) Consists of cannabis or cannabis product that was cultivated, processed, manufactured, packed, or held in a location not duly licensed as provided in this division.
(3) Its labeling is false or misleading in any particular.
(4) Its labeling or packaging does not conform to the requirements of Section 26120 or any other labeling or packaging requirement established pursuant to this division.
(b) It is unlawful to cultivate, process, manufacture, sell, deliver, hold, or offer for sale cannabis or a cannabis product that is misbranded.
(c) It is unlawful to misbrand cannabis or a cannabis product.
(d) It is unlawful to receive in commerce cannabis or a cannabis product that is misbranded or to distribute, deliver, or offer for delivery any such cannabis or cannabis product.
(Added by renumbering Section 26121 by Stats. 2021, Ch. 70, Sec. 67. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 3 - Enforcement › Section 26039.6.

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 an edible 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 edible 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.
(c) It is unlawful to adulterate cannabis or a cannabis product.
(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.
(Added by renumbering Section 26131 by Stats. 2021, Ch. 70, Sec. 69. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26040.

26040. (a) (1) There is established in state government, in the Business, Consumer Services, and Housing Agency, a Cannabis Control Appeals Panel which shall consist of the following members:
(A) One member appointed by the Senate Committee on Rules.
(B) One member appointed by the Speaker of the Assembly.
(C) Three members appointed by the Governor and subject to confirmation by a majority vote of all of the members elected to the Senate.
(2) Each member appointed by the Governor, at the time of their initial appointment, shall be a resident of a different county from the one in which either of the other members appointed by the Governor resides. Members of the panel shall receive an annual salary as provided for by Chapter 6 (commencing with Section 11550) of Part 1 of Division 3 of Title 2 of the Government Code.
(b) The members of the panel may be removed from office by their appointing authority.
(Amended by Stats. 2020, Ch. 93, Sec. 1. (AB 1872) Effective September 18, 2020. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26041.

26041. All personnel of the panel shall be appointed, employed, directed, and controlled by the panel consistent with state civil service requirements. The Executive Director of the panel shall furnish the equipment, supplies, and housing necessary for the authorized activities of the panel and shall perform such other mechanics of administration as determined by the panel.
(Amended by Stats. 2021, Ch. 70, Sec. 30. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26042.

26042. The panel shall adopt procedures for appeals similar to the procedures used in Article 3 (commencing with Section 23075) and Article 4 (commencing with Section 23080) of Chapter 1.5 of Division 9 of the Business and Professions Code. Such procedures shall be adopted in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(Added November 8, 2016, by initiative Proposition 64, Sec. 6.1.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26043.

26043. (a) After proceedings pursuant to Section 26031, 26031.5, or 26058 or Chapter 2 (commencing with Section 480) or Chapter 3 (commencing with Section 490) of Division 1.5, any person aggrieved by the decision of the department denying the person’s application for any license, denying the person’s renewal of any license, placing any license on probation, imposing any condition on any license, imposing any fine on any license or licensee, assessing any penalty on any license, or canceling, suspending, revoking, or otherwise disciplining any license as provided for under this division, may appeal the department’s written decision to the panel.
(b) The panel shall review the decision subject to such limitations as may be imposed by the Legislature. In such cases, the panel shall not receive evidence in addition to that considered by the department.
(c) Review by the panel of a decision of the department shall be limited to the following questions:
(1) Whether the department has proceeded without or in excess of its jurisdiction.
(2) Whether the department has proceeded in the manner required by law.
(3) Whether the decision is supported by the findings.
(4) Whether the findings are supported by substantial evidence in the light of the whole record.
(Amended by Stats. 2021, Ch. 70, Sec. 31. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26044.

26044. (a) In appeals where the panel finds that there is relevant evidence which, in the exercise of reasonable diligence, could not have been produced or which was improperly excluded at the hearing before the department, it may enter an order remanding the matter to the department for reconsideration in the light of that evidence.
(b) Except as provided in subdivision (a), in all appeals, the panel shall enter an order either affirming or reversing the decision of the department. When the order reverses the decision of the department, the panel may direct the reconsideration of the matter in the light of its order and may direct the department to take such further action as is specially enjoined upon it by law, but the order shall not limit or control in any way the discretion vested by law in the department
(Amended by Stats. 2021, Ch. 70, Sec. 32. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26045.

26045. (a) No court of this state, except the Supreme Court and the courts of appeal to the extent specified in this chapter, shall have jurisdiction to review, affirm, reverse, correct, or annul any order, rule, or decision of the department or to suspend, stay, or delay the operation or execution thereof, or to restrain, enjoin, or interfere with the department in the performance of its duties, but a writ of mandate shall lie from the Supreme Court or the courts of appeal in any proper case.
(b) Any person affected by a final order of the panel, including the department, may apply to the Supreme Court or to the court of appeal for the appellate district in which the proceeding arose, for a writ of review of that final order.
(c) The application for writ of review shall be made within 30 days after filing of the final order.
(d) The provisions of the Code of Civil Procedure relating to writs of review shall, insofar as applicable, apply to proceedings in the courts as provided by this chapter. A copy of every pleading filed pursuant to this chapter shall be served on the panel, the department, and on each party who entered an appearance before the panel.
(e) No decision of the department that has been appealed to the panel and no final order of the panel shall become effective during the period in which application may be made for a writ of review, as provided by subdivision (c).
(f) The filing of a petition for, or the pendency of, a writ of review shall not of itself stay or suspend the operation of any order, rule, or decision of the department, but the court before which the petition is filed may stay or suspend, in whole or in part, the operation of the order, rule, or decision of the department subject to review, upon the terms and conditions which it by order directs.
(Amended by Stats. 2021, Ch. 70, Sec. 33. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26046.

26046. (a) The review by the court shall not extend further than to determine, based on the whole record of the department as certified by the panel, whether:
(1) The department has proceeded without or in excess of its jurisdiction.
(2) The department has proceeded in the manner required by law.
(3) The decision of the department is supported by the findings.
(4) The findings in the department’s decision are supported by substantial evidence in the light of the whole record.
(5) There is relevant evidence which, in the exercise of reasonable diligence, could not have been produced or which was improperly excluded at the hearing before the department.
(b) Nothing in this chapter shall permit the court to hold a trial de novo, to take evidence, or to exercise its independent judgment on the evidence.
(Amended by Stats. 2021, Ch. 70, Sec. 34. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 4 - Appeals › Section 26047.

26047. The findings and conclusions of the department on questions of fact are conclusive and final and are not subject to review. Those questions of fact shall include ultimate facts and the findings and conclusions of the department. The panel, the department, and each party to the action or proceeding before the panel shall have the right to appear in the review proceeding. Following the hearing, the court shall enter judgment either affirming or reversing the decision of the department, or the court may remand the case for further proceedings before or reconsideration by the department.
(Amended by Stats. 2021, Ch. 70, Sec. 35. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26050.

26050. (a) The license classification pursuant to this division shall, at a minimum, be as follows:
(1) Type 1—Cultivation; Specialty outdoor; Small.
(2) Type 1A—Cultivation; Specialty indoor; Small.
(3) Type 1B—Cultivation; Specialty mixed-light; Small.
(4) Type 1C—Cultivation; Specialty cottage; Small.
(5) Type 2—Cultivation; Outdoor; Small.
(6) Type 2A—Cultivation; Indoor; Small.
(7) Type 2B—Cultivation; Mixed-light; Small.
(8) Type 3—Cultivation; Outdoor; Medium.
(9) Type 3A—Cultivation; Indoor; Medium.
(10) Type 3B—Cultivation; Mixed-light; Medium.
(11) Type 4—Cultivation; Nursery.
(12) Type 5—Cultivation; Outdoor; Large.
(13) Type 5A—Cultivation; Indoor; Large.
(14) Type 5B—Cultivation; Mixed-light; Large.
(15) Type 6—Manufacturer 1.
(16) Type 7—Manufacturer 2.
(17) Type 8—Testing laboratory.
(18) Type 10—Retailer.
(19) Type 11—Distributor.
(20) Type 12—Microbusiness.
(21) Type 13—Cannabis event organizer.
(22) Type 14—Processor.
(b) With the exception of testing laboratory licenses, which may be used to test cannabis and cannabis products regardless of whether they are intended for use by individuals who possesses a physician’s recommendation, all licenses issued under this division shall bear a clear designation indicating whether the license is for commercial adult-use cannabis activity as distinct from commercial medicinal cannabis activity by prominently affixing an “A” or “M,” respectively. Examples of such a designation include, but are not limited to, “A-Type 1” or “M-Type 1.” Except as specifically specified in this division, the requirements for A-licenses and M-licenses shall be the same. For testing laboratories, the department shall create a license that indicates a testing laboratory may test both adult-use and medicinal cannabis.
(c) A license issued pursuant to this division shall be valid for 12 months from the date of issuance. The license may be renewed annually.
(d) The department shall establish procedures for the issuance and renewal of licenses.
(Amended by Stats. 2023, Ch. 198, Sec. 5. (SB 152) Effective September 13, 2023.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26051.

26051. (a) The Cartwright Act, the Unfair Practices Act, the Unfair Competition Law, and the other provisions of Part 2 (commencing with Section 16600) of Division 7 apply to all licensees regulated under this division.
(b) It shall be unlawful for any person to monopolize, attempt to monopolize, or combine or conspire with any person or persons to monopolize, any part of the trade or commerce related to cannabis. The Attorney General shall have the sole authority to enforce the provisions of this subdivision.
(c) In determining whether to grant, deny, or renew a retail license, microbusiness license, or a license issued under Section 26070.5, the department shall consider if an excessive concentration exists in the area where the licensee will operate. For purposes of this section “excessive concentration” applies when either of the following conditions exist:
(1) The ratio of licensees to population in the census tract or census division in which the applicant premises is located exceeds the ratio of licensees to population in the county in which the applicant premises is located, unless denial of the application would unduly limit the development of the legal market so as to perpetuate the illegal market for cannabis or cannabis products.
(2) The ratio of retail licenses, microbusiness licenses, or licenses under Section 26070.5 to the population in the census tract, census division, or jurisdiction exceeds that allowable by local ordinance adopted under Section 26200.
(Amended by Stats. 2021, Ch. 70, Sec. 38. (AB 141) Effective July 12, 2021.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26052.

26052. (a) A licensee shall not perform any of the following acts, or permit any of the following acts to be performed by any employee, agent, or contractor of the licensee:
(1) Make any contract in restraint of trade in violation of Section 16600.
(2) Form a trust or other prohibited organization in restraint of trade in violation of Section 16720.
(3) Make a sale or contract for the sale of cannabis or cannabis products, or to fix a price charged therefor, or discount from, or rebate upon, that price, on the condition, agreement, or understanding that the consumer or purchaser thereof shall not use or deal in the goods, merchandise, machinery, supplies, commodities, or services of a competitor or competitors of the seller, where the effect of that sale, contract, condition, agreement, or understanding may be to substantially lessen competition or tend to create a monopoly in any line of trade or commerce.
(4) Sell any cannabis or cannabis products at less than cost for the purpose of injuring competitors, destroying competition, or misleading or deceiving purchasers or prospective purchasers.
(5) Discriminate between different sections, communities, or cities or portions thereof, or between different locations in those sections, communities, or cities or portions thereof in this state, by selling or furnishing cannabis or cannabis products at a lower price in one section, community, or city or any portion thereof, or in one location in that section, community, or city or any portion thereof, than in another, for the purpose of injuring competitors or destroying competition.
(6) Sell any cannabis or cannabis products at less than the cost thereof to such vendor, or to give away any article or product for the purpose of injuring competitors or destroying competition.
(b) Any person who, either as director, officer, or agent of any firm or corporation, or as agent of any person, violates the provisions of this chapter, or assists or aids, directly or indirectly, in that violation is responsible therefor equally with the person, firm, or corporation for which that person acts.
(c) Any person or trade association may bring an action to enjoin and restrain any violation of this section for the recovery of damages.
(Amended by Stats. 2017, Ch. 27, Sec. 36. (SB 94) Effective June 27, 2017. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26053.

26053. (a) All commercial cannabis activity shall be conducted between licensees, except as otherwise provided in this division.
(b)  (1)  A person that holds a state testing laboratory license under this division is prohibited from licensure for any other activity, except testing, as authorized under this division. A person that holds a state testing laboratory license shall not employ an individual who is also employed by any other licensee that does not hold a state testing laboratory license.
(2) A person with a financial interest in a state testing laboratory license under this division is prohibited from holding a financial interest in any other type of cannabis license.
(c) Except as provided in subdivision (b), a person may apply for and be issued more than one license under this division.
(d) Each applicant or licensee shall apply for, and if approved, shall obtain, a separate license for each location where it engages in commercial cannabis activity.
(Amended by Stats. 2021, Ch. 70, Sec. 40. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26054.

26054. (a) A licensee shall not sell alcoholic beverages or tobacco products on or at any premises licensed under this division.
(b) A premises licensed under this division shall not be located within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, daycare center, or youth center that is in existence at the time the license is issued, unless the department or a local jurisdiction specifies a different radius. The distance specified in this section shall be measured in the same manner as provided in subdivision (c) of Section 11362.768 of the Health and Safety Code unless otherwise provided by law.
(c) It shall not be a violation of state or local law for a business engaged in the manufacture of cannabis accessories to possess, transport, purchase, or otherwise obtain small amounts of cannabis or cannabis products as necessary to conduct research and development related to the cannabis accessories, provided the cannabis and cannabis products are obtained from a person licensed under this division permitted to provide or deliver the cannabis or cannabis products.
(d) It shall not be a violation of state or local law for an agent of the department to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the department.
(e) It shall not be a violation of state or local law for an agent of a state agency, as defined in Section 1100 of the Government Code, or a local agency, as defined in Section 50001 of the Government Code, to possess, transport, or obtain cannabis or cannabis products as necessary to conduct activities reasonably related to the duties of the state or local agency.
(Amended by Stats. 2021, Ch. 70, Sec. 41. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26056.

26056. The requirements of Sections 13143.9, 13145, and 13146 of the Health and Safety Code shall apply to all licensees.
(Repealed and added by Stats. 2017, Ch. 27, Sec. 44. (SB 94) Effective June 27, 2017.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26058.

26058. Upon the denial of any application for a license, the department shall notify the applicant in writing. Within 30 days of service of the notice, the applicant may file a written petition for a license with the department. Upon receipt of a timely filed petition, the department shall set the petition for hearing. The hearing shall be conducted in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, and the director shall have all the powers granted therein. Any appeal from a final decision of the department shall be conducted in accordance with Chapter 4 (commencing with Section 26040).
(Amended by Stats. 2021, Ch. 70, Sec. 45. (AB 141) Effective July 12, 2021. Note: This section was added on Nov. 8, 2016, by initiative Prop. 64.)
2023 California Code › Business and Professions Code - BPC › DIVISION 10 - Cannabis › CHAPTER 5 - Licensing › Section 26059.

26059. An applicant shall not be denied a state license if the denial is based solely on any of the following:
(a) A conviction or act that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made for which the applicant or licensee has obtained a certificate of rehabilitation pursuant to Chapter 3.5 (commencing with Section 4852.01) of Title 6 of Part 3 of the Penal Code.
(b) A conviction that was subsequently dismissed pursuant to Section 1203.4, 1203.4a, or 1203.41 of the Penal Code or any other provision allowing for dismissal of a conviction.
(Added November 8, 2016, by initiative Proposition 64, Sec. 6.1.)