Cannabis and industrial hemp: advertising: civil action.

Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act of 2016 (AUMA) , an initiative measure, 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 and requires the Department of Cannabis Control to administer its provisions. Under MAUCRSA, the Department of Cannabis Control has sole authority to license and regulate commercial cannabis activity, which MAUCRSA defines to include, among other activities, the sale of cannabis and cannabis products. Existing law requires all civil penalties imposed and collected by a court in actions brought for violations of MAUCRSA to be deposited into the General Fund, except as provided. Existing law places various advertising and marketing restrictions on licensees, including prohibiting a licensee from publishing or disseminating advertising or marketing that is attractive to children, and from advertising or marketing cannabis or cannabis products in a manner intended to encourage consumption by persons under 21 years of age or on an advertising sign within 1,000 feet of a daycare center, school, or youth center. Existing law also prohibits a licensee from advertising or marketing on a billboard or similar advertising device located on an interstate highway or on a state highway that crosses the California border. This bill would expand the above-described restrictions to a person engaged in commercial cannabis activity, whether licensed or unlicensed. Existing law governs the cultivation of industrial hemp in this state and establishes a registration program administered by county agricultural commissioners and the Department of Food and Agriculture for growers of industrial hemp, hemp breeders, and established agricultural research institutions, as defined. The Sherman Food, Drug, and Cosmetic Law, among other things, regulates the labeling of food, beverages, and cosmetics and makes it a crime to distribute in commerce any food, drug, device, or cosmetic if its packaging or labeling does not conform to these provisions. Violation of the Sherman Food, Drug, and Cosmetic Law is a misdemeanor. Existing law imposes various advertising requirements on hemp manufacturers, as defined, including, among other things, prohibiting directly targeting advertising or marketing to children or to persons who are pregnant or breastfeeding. This bill would instead require a manufacturer, distributor, or seller of industrial hemp to comply with advertising and marketing restrictions similar to those under MAUCRSA as described above. By expanding the scope of a misdemeanor, this bill would impose a state-mandated local program. This bill would authorize the Attorney General, a city attorney, or a county counsel to bring and maintain an action to redress a violation of the above-described advertising and marketing restrictions. The bill would require the Attorney General, a city attorney, or a county counsel who prevails in an action to be awarded injunctive relief and would authorize them to be awarded reasonable attorney's fees and costs and civil penalties of not more than $5,000 per violation for a licensed cannabis business or an industrial hemp registrant and not more than $30,000 for an unlicensed cannabis business or an unregistered business engaged in the sale of products that contain industrial hemp, as specified. The bill would require civil penalties awarded in an action to be distributed pursuant to existing law provisions referenced above. The bill would prohibit a defendant from being subject to more than one action in connection with the same, or substantially similar, advertising or marketing, except as provided. The bill would prohibit these provisions from being construed to limit or otherwise alter, in any way, any other authority conferred by law upon the Attorney General, the department, or any other state or local officer or agency, as specified. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.