DIVISION 10. Cannabis [26000. - 26325.]
Heading of Division 10 amended by Stats. 2017, Ch. 27, Sec. 3.
§§ 26000–26325 · 212 sections
CHAPTER 1. General Provisions and Definitions §§ 26000–26002 · 4 sections
- § 26000 (a) This division shall be known, and may be cited, as the Medicinal and Adult-Use Cannabis Regulation and Safety Act. (b) The purpose and intent of this…
- § 26000.5 Until January 1, 2028, both of the following shall apply: (a) A licensed manufacturer shall only use cannabinoid concentrates and extracts that are…
- § 26001 For purposes of this division, the following definitions apply: (a) “A-license” means a state license issued under this division for cannabis or cannabis…
- § 26002 (a) This division does not apply to any product containing cannabinoids that has been approved by the federal Food and Drug Administration that has either been…
CHAPTER 2. Administration §§ 26010–26018 · 16 sections
- § 26010 (a) There is in the Business and Consumer Services Agency, the Department of Cannabis Control under the supervision and control of a director. The director…
- § 26010.5 (a) The Governor shall appoint the director of the department, subject to confirmation by the Senate. The director shall serve under the direction and…
- § 26010.6 (a) Pursuant to subdivision (u) of Section 11105 of the Penal Code, and except as provided in subdivision (c), the Department of Cannabis Control shall submit…
- § 26010.7 (a) Except as provided in Sections 26062 and 26063 and Chapter 23 (commencing with Section 26240), on and after the operative date of this section, the…
- § 26011 Neither the director nor any member of the Cannabis Control Appeals Panel established under Section 26040 shall do any of the following: (a) Receive any…
- § 26011.5 The protection of the public shall be the highest priority for the department in exercising licensing, regulatory, and disciplinary functions under this…
- § 26012 (a) It being a matter of statewide concern, except as otherwise authorized in this division, the department shall have the sole authority to create, issue,…
- § 26012.5 (a) The department shall provide on its internet website information regarding the status of every license issued by the department in accordance with the…
- § 26012.6 (a) For purposes of this section, “demographic data” includes, but is not limited to, race, ethnicity, gender, sexual orientation, income level, education…
- § 26013 (a) The department shall make and prescribe reasonable rules and regulations as may be necessary to implement, administer, and enforce its duties under this…
- § 26013.5 (a) Notice of any action of the department required by this division to be given may be signed and given by the director or an authorized employee of the…
- § 26014 (a) The department shall convene an advisory committee to advise the department on the development of standards and regulations pursuant to this division,…
- § 26015 (a) The department may make or cause to be made such investigation as it deems necessary to carry out its duties under this division. (b) The chief of…
- § 26016 For any hearing held pursuant to this division, except a hearing held under Chapter 4 (commencing with Section 26040), the department may delegate the power to…
- § 26017 In any hearing before the department pursuant to this division, the department may pay any person appearing as a witness at the hearing at the request of the…
- § 26018 The department may on its own motion at any time before a penalty assessment is placed into effect, and without any further proceedings, review the penalty,…
CHAPTER 3. Enforcement §§ 26030–26039.6 · 21 sections
- § 26030 Grounds for disciplinary action include, but are not limited to, all of the following: (a) Failure to comply with the provisions of this division or any rule…
- § 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…
- § 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,…
- § 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,…
- § 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…
- § 26031.5 (a) The department may issue a citation to a licensee or unlicensed person for any act or omission that violates or has violated any provision of this division…
- § 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…
- § 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…
- § 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…
- § 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…
- § 26035 The director shall designate the persons employed by the department for purposes of the administration and enforcement of this division. The director shall…
- § 26036 Nothing in this division shall be interpreted to supersede or limit the department or other state and local agencies from exercising their existing enforcement…
- § 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…
- § 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…
- § 26038 (a) (1) A person engaging in commercial cannabis activity without a license as required by this division shall be subject to civil penalties of up to three…
- § 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…
- § 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…
- § 26039.3 (a) If the department finds or has probable cause to believe that cannabis or a cannabis product is adulterated or misbranded within the meaning of this…
- § 26039.4 A peace officer, including a peace officer with the department, may seize cannabis, industrial hemp, and cannabis products in any of the following…
- § 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…
- § 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…
CHAPTER 4. Appeals §§ 26040–26047 · 8 sections
- § 26040 (a) (1) There is established in state government, in the Business and Consumer Services Agency, a Cannabis Control Appeals Panel which shall consist of the…
- § 26041 All personnel of the panel shall be appointed, employed, directed, and controlled by the panel consistent with state civil service requirements. The Executive…
- § 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…
- § 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…
- § 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…
- § 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,…
- § 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…
- § 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…
CHAPTER 5. Licensing §§ 26050–26059 · 12 sections
- § 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…
- § 26050.5 (a) Until January 1, 2031, the department may, in its sole discretion, issue a provisional license for a local equity applicant, as defined in Chapter 23…
- § 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…
- § 26051.5 (a) An applicant for a state license issued pursuant to this division to conduct commercial cannabis activity, as defined in Section 26001, shall do all of the…
- § 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…
- § 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…
- § 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…
- § 26055 (a) The department may issue state licenses only to qualified applicants. (b) Revocation of a state license issued under this division shall terminate the…
- § 26056 The requirements of Sections 13143.9, 13145, and 13146 of the Health and Safety Code shall apply to all licensees.
- § 26057 (a) The department shall deny an application if either the applicant, or the premises for which a state license is applied, do not qualify for licensure under…
- § 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…
- § 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…
CHAPTER 6. Licensed Cultivation Sites §§ 26060–26066.2 · 11 sections
- § 26060 (a) (1) For the purposes of this division, cannabis is an agricultural product. (2) In issuing cannabis cultivation licenses, the department shall consider…
- § 26060.1 (a) An application for a license for cultivation issued by the department shall identify the source of water supply as follows: (1) (A) If water will be…
- § 26061 (a) The state cultivator license types to be issued by the department under this division shall include all of the following: (1) Type 1, or “specialty…
- § 26061.5 (a) Beginning no later than March 1, 2024, the department shall allow a cultivation licensee to do both of the following: (1) Change the type of size of a…
- § 26062 (a) (1) (A) No later than July 1, 2021, the Department of Food and Agriculture shall establish a program for cannabis that is comparable to the National…
- § 26062.5 A person shall not represent, sell, or offer for sale any cannabis or cannabis product as organic except in accordance with the National Organic Program…
- § 26063 (a) (1) No later than January 1, 2018, the department shall establish standards by which a licensed cultivator may designate a county, city, or city and county…
- § 26065 An employee engaged in the cultivation of cannabis under this division shall be subject to Wage Order No. 4-2001 of the Industrial Welfare Commission.
- § 26066 Indoor and outdoor cannabis cultivation by persons and entities licensed under this division shall be conducted in accordance with state and local laws related…
- § 26066.1 The department may enter into a cooperative agreement with a county agricultural commissioner or other state or local agency to assist the department in…
- § 26066.2 (a) A county agricultural commissioner may report to the director on the condition, acreage, production, and value of cannabis produced in the commissioner’s…
CHAPTER 6.5. Unique Identifiers and Track and Trace §§ 26067–26069 · 3 sections
- § 26067 (a) The department shall establish a track and trace program for reporting the movement of cannabis, industrial hemp, and cannabis products throughout the…
- § 26068 (a) The department, in consultation with the California Department of Tax and Fee Administration, shall ensure that the track and trace program can also track…
- § 26069 (a) (1) The department shall implement a unique identification program for cannabis and cannabis products. (2) The unique identification program shall include…
CHAPTER 7. Retailers, Distributors, Microbusinesses, and Combined Activities §§ 26070–26071 · 6 sections
- § 26070 Retailers, Distributors, Microbusinesses, and Combined Activities. (a) State licenses to be issued by the department related to the sale and distribution of…
- § 26070.1 Cannabis or cannabis products purchased by a customer shall not leave a licensed retail premises unless they are placed in an opaque package.
- § 26070.2 A person shall not sell, offer, or provide a product in the state that is any of the following: (a) An alcoholic beverage that contains cannabinoids,…
- § 26070.3 (a) (1) On or before January 1, 2025, the department, in consultation with the State Department of Public Health, shall create and post for public use a…
- § 26070.5 (a) The Bureau of Cannabis Control shall, by January 1, 2020, investigate the feasibility of creating one or more classifications of nonprofit licenses under…
- § 26071 (a) To provide access to medicinal cannabis patients who have difficulty accessing cannabis or cannabis products, a licensee that is authorized to make retail…
CHAPTER 8. Distribution and Transport § 26080 · 1 section
- § 26080 (a) Except as provided in this section and in Chapter 25 (commencing with Section 26300), this division does not authorize or permit a licensee to transport or…
CHAPTER 9. Delivery § 26090 · 1 section
- § 26090 (a) Deliveries, as defined in this division, may only be made by a licensed retailer or microbusiness, or a licensed nonprofit under Section 26070.5. (b) All…
CHAPTER 10. Testing Laboratories §§ 26100–26104 · 3 sections
- § 26100 (a) Except as otherwise provided by law, cannabis, industrial hemp, or cannabis products shall not be sold pursuant to a license provided for under this…
- § 26102 A testing laboratory shall not be licensed by the department unless the laboratory meets all of the following: (a) Complies with any other requirements…
- § 26104 (a) A licensed testing laboratory shall, in performing activities concerning cannabis and cannabis products, comply with the requirements and restrictions set…
CHAPTER 11. Quality Assurance, Inspection, and Testing § 26110 · 1 section
- § 26110 (a) Cannabis and cannabis product batches are subject to quality assurance standards and testing prior to sale at a retailer, microbusiness, or nonprofit…
CHAPTER 12. Packaging and Labeling §§ 26120–26122 · 3 sections
- § 26120 (a) Prior to delivery or sale at a retailer, cannabis and cannabis products shall be labeled and placed in a tamper-evident, child-resistant package and shall…
- § 26121 (a) On or before July 1, 2025, the department shall reevaluate regulations adopted pursuant to Section 26120 to determine whether any additional warnings are…
- § 26122 (a) A cannabis cartridge or integrated cannabis vaporizer that contains cannabis or a cannabis product shall bear the universal symbol described in paragraph…
CHAPTER 13. Manufacturers and Cannabis Products §§ 26130–26132 · 3 sections
- § 26130 (a) The department shall promulgate regulations governing the licensing of cannabis manufacturers and standards for the manufacturing, packaging, and labeling…
- § 26131 Standards for the production, packaging, and labeling of all cannabis products developed by the department apply to all licensed manufacturers and…
- § 26132 Manufacturing Level 2 licensees shall enact sufficient methods or procedures to capture or otherwise limit risk of explosion, combustion, or any other…
CHAPTER 14. Protection of Minors § 26140 · 1 section
- § 26140 (a) An A-licensee shall not: (1) Sell cannabis or cannabis products to persons under 21 years of age. (2) Allow any person under 21 years of age on its…
CHAPTER 15. Advertising and Marketing Restrictions §§ 26150–26156 · 10 sections
- § 26150 For purposes of this chapter: (a) “Advertise” means the publication or dissemination of an advertisement. (b) “Advertisement” includes any written or verbal…
- § 26151 (a) (1) All advertisements and marketing shall accurately and legibly identify the licensee responsible for its content, by adding, at a minimum, the…
- § 26152 A person engaged in commercial cannabis activity, whether licensed or unlicensed, shall not do any of the following: (a) Advertise or market in a manner that…
- § 26152.1 (a) (1) Advertisement and marketing of an integrated cannabis vaporizer, as defined in Section 26122, shall prominently provide in a clear and legible fashion:…
- § 26152.2 (a) The Attorney General, on behalf of the people, a city attorney, or a county counsel may bring and maintain an action to redress a violation of subdivisions…
- § 26153 (a) A licensee shall not give away any amount of cannabis or cannabis products, or any cannabis accessories, as part of a business promotion or other…
- § 26153.1 (a) The Department of Cannabis Control shall adopt regulations to establish a process authorizing licensees to designate cannabis or cannabis products as a…
- § 26154 A licensee shall not include on the label of any cannabis or cannabis product or publish or disseminate advertising or marketing containing any health-related…
- § 26155 (a) The provisions of subdivision (g) of Section 26152 shall not apply to the placement of advertising signs inside a licensed premises and which are not…
- § 26156 The requirements of Section 5272 apply to this division.
CHAPTER 16. Records §§ 26160–26163 · 6 sections
- § 26160 (a) A licensee shall keep accurate records of commercial cannabis activity. (b) All records related to commercial cannabis activity as defined by the…
- § 26161 (a) Every sale or transport of cannabis or cannabis products from one licensee to another licensee must be recorded on a sales invoice or receipt. Sales…
- § 26161.5 (a) A licensee shall not disclose a consumer’s personal information to a third party, except to the extent necessary to allow responsibility for payment to be…
- § 26162 (a) Information identifying the names of patients, their medical conditions, or the names of their primary caregivers received and contained in records kept by…
- § 26162.5 (a) Identification cards issued pursuant to Section 11362.71 of the Health and Safety Code are hereby deemed “medical information” within the meaning of the…
- § 26163 (a) The department shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board, as applicable, the following information with…
CHAPTER 18. License Fees §§ 26180–26181 · 2 sections
- § 26180 The department shall establish a scale of application, licensing, and renewal fees, based upon the cost of enforcing this division, as follows: (a) The…
- § 26181 The State Water Resources Control Board, the Department of Fish and Wildlife, and other agencies may establish fees to cover the costs of their cannabis…
CHAPTER 19. Annual Reports; Performance Audit §§ 26190–26191 · 3 sections
- § 26190 Beginning on March 1, 2023, and on or before March 1 of each year thereafter, the department shall prepare and submit to the Legislature an annual report on…
- § 26190.5 The department shall contract with the California Cannabis Research Program, known as the Center for Medicinal Cannabis Research, and formerly known as the…
- § 26191 (a) Commencing January 1, 2022, and by January 1 triennially thereafter, the Office of State Audits and Evaluations within the Department of Finance shall…
CHAPTER 20. Local Control §§ 26200–26202 · 3 sections
- § 26200 (a) (1) Except as set forth in the Medicinal Cannabis Patients’ Right of Access Act (Chapter 26 (commencing with Section 26320)), this division shall not be…
- § 26201 Any standards, requirements, and regulations regarding health and safety, environmental protection, testing, security, food safety, and worker protections…
- § 26202 (a) A local jurisdiction may enforce this division and the regulations promulgated by the department if delegated the power to do so by the department. (b) The…
CHAPTER 21. Funding §§ 26210–26211 · 3 sections
- § 26210 (a) The Marijuana Control Fund, formerly known as the Medical Cannabis Regulation and Safety Act Fund and the Medical Marijuana Regulation and Safety Act Fund,…
- § 26210.5 By July 1, 2018, the Bureau of Cannabis Control, in coordination with the Department of General Services, shall establish an office to collect fees and taxes…
- § 26211 (a) Funds for the initial establishment and support of the regulatory activities under this division, including the public information program described in…
CHAPTER 22. Cannabis Cooperative Associations §§ 26220–26231.2 · 67 sections
ARTICLE 1. Definitions §§ 26220–26220.3 · 4 sections
- § 26220 Unless the context otherwise requires, the definitions in this article govern the construction of this chapter.
- § 26220.1 “Association” means any cannabis cooperative that is organized pursuant to this chapter. An association shall be deemed incorporated pursuant to this chapter,…
- § 26220.2 “Member” includes members of associations without capital stock and holders of common stock in associations that are organized with shares of stock.
- § 26220.3 “Cannabis product” includes any cannabis associated with a licensed cultivator.
ARTICLE 2. General Provisions §§ 26222–26222.6 · 7 sections
- § 26222 The purpose of this chapter is to do all of the following: (a) Promote, foster, and encourage the intelligent and orderly marketing of cannabis product through…
- § 26222.1 An exemption under law that applies to a cannabis product in the possession, or under the control, of the individual cultivator, shall apply similarly and…
- § 26222.2 A person, firm, corporation, or association, that is hereafter organized or doing business in this state, may not use the word “cannabis cooperative” as part…
- § 26222.3 An association that is organized pursuant to this chapter shall not conspire in restraint of trade, or serve as an illegal monopoly, attempt to lessen…
- § 26222.4 The marketing contracts and agreements between an association that is organized pursuant to this chapter and its members and any agreements authorized in this…
- § 26222.5 The General Corporation Law (Division 1 (commencing with Section 100) of Title 1 of the Corporations Code) applies to each association that is organized…
- § 26222.6 (a) Except as provided in subdivision (c), Chapter 7 (commencing with Section 1500) of Title 10 of Part 3 of the Code of Civil Procedure does not apply to a…
ARTICLE 3. Purposes § 26223 · 1 section
- § 26223 (a) Three or more natural persons, who are engaged in the cultivation of any cannabis product, may form an association pursuant to this chapter for the purpose…
ARTICLE 4. Articles of Incorporation §§ 26224–26224.2 · 3 sections
- § 26224 The articles of incorporation of an association shall show that the signers of the articles of incorporation are engaged in the cultivation of cannabis…
- § 26224.1 Articles of incorporation shall be signed, acknowledged, and filed in the manner that is prescribed by the general laws of this state for domestic corporations.
- § 26224.2 The articles of incorporation of any association may be amended in the manner and for the purposes which are authorized by the General Corporation Law,…
ARTICLE 5. Bylaws §§ 26225–26225.95 · 11 sections
- § 26225 Each association shall, within 30 days after its incorporation, adopt for its government and management, a code of bylaws, consistent with this chapter. The…
- § 26225.1 The bylaws may prescribe the time, place, and manner of calling and conducting its meetings. Meetings of members or stockholders shall be held at the place as…
- § 26225.2 The bylaws may prescribe the number of stockholders, directors, or members that constitutes a quorum.
- § 26225.3 The bylaws may prescribe the following: (a) The right of members or stockholders to vote by proxy or by mail or both, and the conditions, manner, form, and…
- § 26225.4 (a) The bylaws may prescribe the qualifications, compensation, duties, and term of office of directors and officers and the time of their election. (b) The…
- § 26225.5 The bylaws may prescribe penalties for violations of the bylaws.
- § 26225.6 The bylaws may prescribe the amount of entrance, organization, and membership fees, if any, the manner and method of collection of the fees, and the purposes…
- § 26225.7 The bylaws may prescribe the amount that each member or stockholder shall be required to pay annually, or from time to time, if at all, to carry on the…
- § 26225.8 The bylaws may prescribe the amount of dividends, if any, that may be declared on the stock or membership capital. To the extent that dividends are payable out…
- § 26225.9 The bylaws may prescribe any of the following: (a) The number and qualification of members or stockholders of the association and the conditions precedent to…
- § 26225.95 (a) The bylaws may prescribe any of the following: (1) The manner of determining the value of a member’s interest and provision for its purchase by the…
ARTICLE 6. Directors and Management §§ 26226–26226.9 · 10 sections
- § 26226 The affairs of the association shall be managed by a board of not less than three directors who are elected by the members or stockholders.
- § 26226.1 The bylaws may provide that the territory in which the association has members shall be divided into districts and that directors shall be elected from the…
- § 26226.2 The bylaws may provide that primary elections shall be held to nominate directors. If the bylaws provide that the territory in which the association has…
- § 26226.3 The bylaws may provide that the territory in which the association has members shall be divided into districts, and that the directors shall be elected by…
- § 26226.4 The bylaws may provide that one or more directors may be chosen by a public official or commission or by the other directors selected by the members. The…
- § 26226.5 The bylaws may provide for an executive committee and may allot to the committee all the functions and powers of the board of directors, subject to the general…
- § 26226.6 An association may provide a fair remuneration for the time that is actually spent by its officers and directors in its service and for the service of the…
- § 26226.7 If a vacancy on the board of directors occurs, except by expiration of term, the remaining members of the board, by a majority vote, shall fill the vacancy,…
- § 26226.8 (a) The directors shall elect a president, one or more vice presidents, a secretary, a treasurer, and such other officers as may be prescribed by the bylaws.…
- § 26226.9 (a) A member may bring charges against an officer or director by filing them in writing with the secretary of the association, together with a petition that is…
ARTICLE 7. Powers §§ 26227–26227.9 · 11 sections
- § 26227 An association may engage in any activity in connection with the growing, harvesting, curing, drying, trimming, packing, grading, storing, or handling of any…
- § 26227.1 An association may borrow without limitation as to the amount of corporate indebtedness or liability and may make advances to members.
- § 26227.2 An association may act as the agent or representative of any member or members in any of the activities specified in Section 26226.2 or 26226.3.
- § 26227.3 An association may purchase or otherwise acquire, hold, own, and exercise all rights of ownership in, sell, transfer, pledge, or guarantee the payment of…
- § 26227.4 An association may establish reserves and invest the funds of the reserves in bonds or in other property as may be provided in the bylaws.
- § 26227.5 An association may buy, hold, and exercise all privileges of ownership over such real or personal property as may be necessary or convenient for the conduct…
- § 26227.6 An association may levy assessments in the manner and in the amount as may be provided in its bylaws.
- § 26227.7 An association may do any of the following anywhere: (a) That which is what is necessary, suitable, or proper for the accomplishment of a purpose, or the…
- § 26227.75 An association may use or employ any of its facilities for any purpose, provided the proceeds that arise from such use and employment shall go to reduce the…
- § 26227.8 (a) An association may organize, form, operate, own, control, have an interest in, own stock of, or be a member of any other association, with or without…
- § 26227.9 (a) Any association may, upon resolution adopted by its board of directors, enter into all necessary and proper contracts and agreements and make all necessary…
ARTICLE 8. Financial Provisions §§ 26228–26228.3 · 4 sections
- § 26228 An association is not subject in any manner to the terms of the Corporate Securities Law (Division 1 (commencing with Section 25000) of Title 4 of the…
- § 26228.1 If an association issues nonpar value stock, the issuance of the stock shall be governed by the terms of all general laws that cover the issuance of nonpar…
- § 26228.2 If an association with preferred shares of stock purchases the stock or any property, or any interest in any property of any person, it may discharge the…
- § 26228.3 The board of directors of every association shall cause to be sent to the members of the association not later than 120 days after the close of the fiscal or…
ARTICLE 9. Members §§ 26229–26229.8 · 9 sections
- § 26229 Under the terms and conditions that are prescribed in the bylaws adopted by it, an association may admit as members or issue common stock only to persons…
- § 26229.1 If a member of a nonstock association is other than a natural person, the member may be represented by any individual, associate, officer, or manager or member…
- § 26229.2 Any association may become a member or stockholder of any other association.
- § 26229.3 If a member of an association that is established without shares of stock has paid his membership fee in full, he or she shall receive a certificate of…
- § 26229.4 An association shall not issue a certificate for stock to a member until it has been fully paid for. The promissory notes of the members may be accepted by the…
- § 26229.5 An association, in its bylaws, may limit the amount of common stock that any member may own.
- § 26229.6 The bylaws shall prohibit the transfer of the common stock or membership certificates of the associations to a person that is not qualified to be a shareholder…
- § 26229.7 The association may, at any time, as specified in the bylaws, except when the debts of the association exceed 50 percent of its assets, buy in or purchase its…
- § 26229.8 A member or stockholder is not liable for the debts of the association to an amount that exceeds the sum that remains unpaid on his membership fee or his…
ARTICLE 10. Marketing Contracts §§ 26230–26230.3 · 4 sections
- § 26230 The association and its members may make and execute marketing contracts that require the members to sell, for any period of time, but not over 15 years, all…
- § 26230.1 Notwithstanding any provisions of the Civil Code, a contract that is entered into by a member or stockholder of an association that provides for the delivery…
- § 26230.2 The bylaws or a marketing contract may fix, as liquidated damages, specific sums to be paid by the member or stockholder to the association upon the breach by…
- § 26230.3 If there is a breach or threatened breach of a marketing contract by a member, the association shall be entitled to an injunction to prevent the further breach…
ARTICLE 11. Reorganization of Corporations Organized Pursuant to Other Laws §§ 26231–26231.2 · 3 sections
- § 26231 A corporation that is organized or existing pursuant to any law except Part 12 (commencing with Section 14550) of Division 3 of Title 1 of the Corporations…
- § 26231.1 Articles of incorporation shall be deemed to conform to this chapter within the meaning of Section 26231 if it clearly appears from the articles of…
- § 26231.2 If the amended articles conform, as provided in Section 26231.1, provisions in the articles of incorporation that appeared in the original articles or some…
CHAPTER 23. The California Cannabis Equity Act §§ 26240–26250 · 7 sections
- § 26240 For purposes of this chapter, the following definitions apply: (a) “Eligible local jurisdiction” means a local jurisdiction that demonstrates an intent to…
- § 26242 (a) The department may provide technical assistance to a local equity program that helps local equity applicants or local equity licensees. When determining…
- § 26244 (a) (1) An eligible local jurisdiction may, in the form and manner prescribed by the Governor’s Office of Business and Economic Development, submit an…
- § 26246 (a) To facilitate greater equity in business ownership and employment in the cannabis market, the department shall serve as a point of contact for local equity…
- § 26248 (a) On or before July 1, 2021, and annually thereafter, the Governor’s Office of Business and Economic Development shall submit a report to the Legislature…
- § 26249 (a) Notwithstanding Sections 26012 and 26180: (1) On or before January 1, 2022, the department shall develop and implement a program to provide waivers for…
- § 26250 The provisions of this chapter are severable. If any provision of this chapter or its application is held invalid, that invalidity shall not affect other…
CHAPTER 24. Information Sharing with Financial Institutions §§ 26260–26261 · 2 sections
- § 26260 (a) An entity that receives deposits, extends credit, conducts fund transfers, transports cash or financial instruments, or provides other financial services…
- § 26261 An individual or firm, that is licensed by the Department of Insurance pursuant to Chapter 5 (commencing with Section 1621), Chapter 6 (commencing with Section…
CHAPTER 25. Interstate Cannabis Agreements §§ 26300–26308 · 9 sections
ARTICLE 1. Definitions § 26300 · 1 section
- § 26300 As used in this chapter, the following definitions apply: (a) “Agreement” means an agreement relating to commercial cannabis authorized under this chapter and…
ARTICLE 2. Agreements §§ 26301–26308 · 8 sections
- § 26301 (a) The Governor may enter into an agreement with another state or states authorizing medicinal or adult-use commercial cannabis activity, or both, between…
- § 26302 (a) Notwithstanding any other law, a foreign licensee may engage in commercial cannabis activity with a state licensee and a state licensee may engage in…
- § 26303 (a) An agreement shall require that the contracting state impose requirements on foreign licensees with regard to cannabis and cannabis products to be sold or…
- § 26304 (a) An agreement shall include provisions requiring the department and the appropriate regulatory authorities of the contracting state to address public health…
- § 26305 An agreement shall include provisions determined by the Governor to promote the inclusion and support of individuals and communities in the cannabis industry…
- § 26306 An agreement shall provide for collection of all applicable taxes.
- § 26307 The Governor is exempt from the rulemaking procedures and requirements of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part…
- § 26308 (a) An agreement entered into pursuant to this chapter shall not take effect unless one of the following occurs: (1) Federal law is amended to allow for the…
CHAPTER 26. Medicinal Cannabis Patients’ Right of Access Act §§ 26320–26325 · 6 sections
- § 26320 The Legislature finds and declares as follows: (a) Access to medicinal cannabis is an integral aspect of access to health care, and eliminating barriers to…
- § 26321 (a) This act shall be known, and may be cited, as the Medicinal Cannabis Patients’ Right of Access Act. (b) For purposes of this chapter: (1) “Medicinal…
- § 26322 (a) A local jurisdiction shall not adopt or enforce any regulation that prohibits the retail sale by delivery within the local jurisdiction of medicinal…
- § 26323 (a) This chapter may be enforced by an action brought pursuant to Chapter 2 (commencing with Section 1084) of Title 1 of Part 3 of the Code of Civil Procedure…
- § 26324 Nothing in this chapter shall be construed to limit or otherwise affect the ability or right of a local jurisdiction to regulate adult-use cannabis pursuant to…
- § 26325 This chapter addresses a matter of statewide concern and not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution.