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<ns0:Id>20250AB__182698AMD</ns0:Id>
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<ns0:ActionText>INTRODUCED</ns0:ActionText>
<ns0:ActionDate>2026-02-11</ns0:ActionDate>
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<ns0:Action>
<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
<ns0:ActionDate>2026-03-19</ns0:ActionDate>
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<ns0:SessionYear>2025</ns0:SessionYear>
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<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Assembly Member Lackey</ns0:AuthorText>
<ns0:Authors>
<ns0:Legislator>
<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
<ns0:House>ASSEMBLY</ns0:House>
<ns0:Name>Lackey</ns0:Name>
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<ns0:Title> An act to amend Sections 26031.5, 26039.1, 26039.3, 26039.5, and 26039.6 of, and to add Section 26039.7 to, the Business and Professions Code, relating to cannabis. </ns0:Title>
<ns0:RelatingClause>cannabis</ns0:RelatingClause>
<ns0:GeneralSubject>
<ns0:Subject>Cannabis: recall, embargo, and destruction of cannabis and cannabis products.</ns0:Subject>
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<ns0:DigestText>
<html:p>Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), governs the licensure and regulation of commercial cannabis activities. MAUCRSA prohibits engaging in certain commercial activities with cannabis or a cannabis product that is misbranded or adulterated. Among the conditions for which cannabis or a cannabis product is deemed misbranded,
MAUCRSA includes packaging or labeling that does not conform to specified requirements. Among the conditions for which cannabis or a cannabis product is deemed adulterated, MAUCRSA includes concentrations that differ from, or its purity or quality is below, that which it is represented to possess.</html:p>
<html:p>This bill would create a 3rd category of prohibited cannabis or cannabis products, which would be referred to as having an administrative error. The bill would deem cannabis or cannabis products as having an administrative error if the laboratory conducting compliance testing on the product makes a clerical error in the track and trace system in reporting test results. The bill would also recast certain conditions of misbranding or adulteration as those of administrative error, including, among others, labeling or packaging does not conform to the requirements of
MAUCRSA and concentrations that differ from, or its purity or quality is below, that which it is represented to possess.</html:p>
<html:p>MAUCRSA establishes the Department of Cannabis Control for the administration and enforcement of its provisions. Existing law gives the department various enforcement powers and duties related to the recall, embargo, seizure, and destruction of cannabis and cannabis products that have been deemed misbranded or adulterated, or whose sale would otherwise be in violation of MAUCRSA. When the department has evidence that cannabis or a cannabis product has been adulterated or misbranded or when the department issues an embargo, existing law requires the department to notify the licensee.</html:p>
<html:p> This bill would
also grant the department those enforcement powers and duties over cannabis and cannabis products that have an administrative error. The bill would require the notifications described above to include certain documentation supporting the finding of adulteration, misbranding, or administrative error, or the finding of probable cause to issue an embargo, as specified.</html:p>
<html:p>Existing law authorizes a licensee to conduct a voluntary recall of the affected cannabis or cannabis product and to remediate the cannabis or cannabis product, if approved by the department, otherwise, existing law requires the licensee to destroy the affected cannabis or cannabis product under the supervision of the department.</html:p>
<html:p>This bill would require the department, prior to a voluntary recall by the licensee, and within 5 business of delivery of the notification of adulteration, misbranding, or administrative error,
to provide the licensee with an opportunity for a meet and confer on why the cannabis or cannabis product is considered adulterated or misbranded, or to have an administrative error. The bill would prohibit the department from permitting destruction of the product until either the meet and confer process has concluded or the licensee has declined to meet and confer.</html:p>
<html:p>Existing law authorizes the department to issue a mandatory recall if the cannabis or cannabis product creates or poses an immediate and serious threat to human life or health, as specified. Existing law requires the department to provide an opportunity for an informal proceeding on the recall within 5 days, as specified.</html:p>
<html:p>This bill would require the
department to provide the evidence supporting the mandatory recall simultaneously with the issuance of the order. The bill would require the department to provide the licensee an opportunity for a meet and confer on the recall, instead of an informal proceeding, within 5 business days of the order, as specified. The bill would prohibit the department from requiring destruction of cannabis or cannabis product prior to the conclusion of either the meet and confer process or the licensee’s decision not to meet and confer.</html:p>
<html:p>Existing law requires the department to affix an embargo tag or other appropriate marking to cannabis or cannabis product that the department finds or has probable cause to believe is in violation of MAUCRSA, as specified. Existing law prohibits the embargoed cannabis or cannabis product from being removed or disposed of by sale or otherwise until the department or a court gives permission. Existing law authorizes the licensee to request that the
department remove the tag or other marking to permit correction if the adulteration or misbranding can be corrected by proper labeling or additional processing, and other requirements are met. Existing law authorizes the department to remove the tag or other marking if it finds that the embargoed cannabis or cannabis product is not in violation of MAUCRSA, as specified.</html:p>
<html:p>This bill would also authorize a licensee to request that the department remove the tag or other marking to permit correction if the administrative error can be corrected by proper labeling or additional processing. The bill would
require the department
to provide the licensee with an opportunity for a meet and confer on an embargo, as specified, and would require the department to work diligently to make a final determination on the embargo order, as provided. The bill would require the department to remove the embargo tag or other marking within 24 hours of finding that cannabis or a cannabis product is not in violation of MAUCRSA, as specified.</html:p>
<html:p>Existing law authorizes the department to condemn cannabis or a cannabis product that is in violation of MAUCRSA, as specified, and imposes certain notice and hearing requirements on a proceeding for condemnation.</html:p>
<html:p>This bill would require a proceeding for condemnation to be initiated by the
department within 10 days of the department’s rejection of a corrective action plan submitted by the licensee, or within 10 days of the embargo if no corrective plan is submitted, as described. If the cannabis or cannabis product subject to condemnation is a perishable agricultural product, the bill would require the administrative law judge to schedule the hearing no later than 5 business days after the petition for condemnation is filed, upon request of the licensee, and to issue a decision within 48 hours of the conclusion of the hearing.</html:p>
<html:p>The bill would prohibit the department from requiring a licensee to conduct a voluntary recall, sign a waiver of liability, or waive any right to an informal meeting or an administrative or judicial hearing or appeal as a condition of
the department taking certain actions. Those actions include approving a voluntary recall, authorizing remediation, supervising the destruction of the cannabis or cannabis product, removing an embargo tag, approving a corrective plan, and permitting the destruction of product.</html:p>
<html:p>Existing law authorizes the department to issue a citation to a licensee or unlicensed person for any act or omission that violates or has violated any provision of MAUCRSA.</html:p>
<html:p>This bill would require a citation to include an opportunity to meet and confer on the matter with department personnel, as specified.</html:p>
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<ns0:Bill id="bill">
<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
<ns0:BillSection id="id_5D790164-316E-4D17-8BCA-CF2383F195B2">
<ns0:Num>SECTION 1.</ns0:Num>
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Section 26031.5 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>26031.5.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
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 or any regulation adopted pursuant to this division. The department shall issue the citation in writing, and shall describe with particularity the basis of the citation and the notification described in subdivision (d). The department may include in each citation an order of
abatement and fix a reasonable time for abatement of the violation. The department may, as part of each citation, assess an administrative fine not to exceed five thousand dollars ($5,000) per violation by a licensee and thirty thousand dollars ($30,000) per violation by an unlicensed person. Each day of violation shall constitute a separate violation. In assessing a fine, the department shall give due consideration to the appropriateness of the amount of the fine with respect to factors the department determines to be relevant, including the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The gravity of the violation by the licensee or person.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The good faith of the licensee or person.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
The history of previous violations.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
The sanctions authorized under this section shall be
separate from, and in addition to, all other administrative, civil, or criminal remedies.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
A citation issued pursuant to this section shall include an opportunity to meet and confer on the matter with department personnel with knowledge of the matter within five business days of the issuance of the citation.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
A citation issued pursuant to this section shall include a provision that notifies the licensee or person that a hearing may be requested to contest the finding of a violation by submitting
a written request within 30 days from service of the citation. The hearing shall be held pursuant to the Administrative Procedure Act (Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code), unless held in accordance with the provisions of Chapter 4.5 (commencing with Section 11400) as authorized by regulation of the department. If the licensee or person cited fails to submit a written request for a hearing within 30 days from the date of service of the citation, the right to a hearing is waived and the citation shall be deemed a final order of the department and is not subject to review by any court.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
After the exhaustion
of the administrative and judicial review procedures, the department may apply to the appropriate superior court for a judgment in the amount of the administrative fine and an order compelling the cited person to comply with the order of the department. The application, which shall include a certified copy of the final order of the department, shall constitute a sufficient showing to warrant the issuance of the judgment and order.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
The department may recover from the licensee or person who was the subject of the citation costs of investigation and enforcement, which may include reasonable attorney’s fees for the services rendered. If the department recovers costs from
a licensee, the department shall recover the costs pursuant to Section 26031.1.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
Fines shall be paid within 30 days of service of a citation by the department. Failure to pay a fine assessed pursuant to this section within 30 days of the date of service of the citation, unless the citation is being appealed, shall constitute a separate violation under this division subject to additional action by the department. The department shall not renew or grant a license to a person who was the subject of the fine until that person pays the fine.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
All moneys collected pursuant to this section associated with the recovery of investigation and enforcement costs shall be deposited into the Cannabis Control Fund. Any administrative fine amount shall be deposited directly into the Cannabis Fines and Penalties Account and shall be distributed pursuant to subdivision (d) of Section 26210.
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<ns0:Num>SEC. 2.</ns0:Num>
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Section 26039.1 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>26039.1.</ns0:Num>
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<ns0:Content>
<html:p>
(a)
<html:span class="EnSpace"/>
When the department has evidence that cannabis or a cannabis product is adulterated or misbranded, or has an administrative error, the department shall provide written notice to the licensee.
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
The notification shall include a copy of the laboratory certificate of analysis and testing data, if applicable, and a summary of the evidence supporting the finding of
adulteration, misbranding, or administrative error,
including the identity of the laboratory, if applicable, the chain of custody documentation, and a description of the sampling methodology used.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The notification shall also state whether or not the department has determined that a mandatory recall will be ordered.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
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, subject to the requirements in subdivision (d), destroy the affected cannabis or cannabis product under the supervision of the department.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Prior to a voluntary recall by the licensee, the department, within five business days of delivery of the notification required by subdivision (a), shall provide the licensee with an opportunity for a meet and confer on why the cannabis or cannabis product is considered adulterated or misbranded, or to have an administrative error.
The meet and confer shall be with department staff who are knowledgeable on the
matter and shall provide the licensee with an opportunity to present information and argument as to why the cannabis or cannabis product is not adulterated or misbranded, does not contain an administrative error, and is not otherwise in violation of this division.The department shall not permit destruction of the product until either the meet and confer process has concluded or the licensee has declined to meet and confer.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
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:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Other procedures available to the department to remedy or prevent the occurrence of the situation would result in an unreasonable delay.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
Simultaneously with the issuance of a mandatory recall order, the department shall provide the licensee with a summary of the department’s determination for the recall and the specific evidence upon which the order is based, including, but not limited to, all of the following:
</html:p>
<html:p>
(A)
<html:span class="EnSpace"/>
The specific section or subdivision of code or regulation alleged to be violated.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A copy of the laboratory certificate of analysis and testing data, if applicable.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
Chain of custody documentation.
</html:p>
<html:p>
(D)
<html:span class="EnSpace"/>
A detailed description of the sampling procedure.
</html:p>
<html:p>
(E)
<html:span class="EnSpace"/>
Any photographic, electronic, or other evidence, if applicable.
</html:p>
<html:p>
(F)
<html:span class="EnSpace"/>
A summary of the evidence supporting the finding of adulteration, misbranding, or an administrative error.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Within five business days of issuance of the recall order, the department shall provide the licensee an opportunity for
a meet and confer on the matter, including on the actions required by the order and on why the cannabis or cannabis product should not be recalled. The meet and confer shall be held with department staff who are knowledgeable on the matter and shall provide the licensee with an opportunity to present information and argument as to why the cannabis or cannabis product is not adulterated or misbranded, does not contain an administrative error, and is not otherwise in violation of this division.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The department
shall not permit destruction of the product until either the meet and confer process has concluded or the licensee has declined to meet and confer. Following the
meet and confer or the licensee’s decision not to meet and confer, the order shall be affirmed, modified, or set aside as determined appropriate by the department in a written decision setting out the reasons for the action taken.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(f)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(h)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The department shall not require a licensee to conduct a voluntary recall, sign a waiver of liability, or waive any right to an informal meeting or an administrative or judicial hearing or appeal as a condition
of approving a voluntary recall, authorizing remediation, or supervising the destruction of the product.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
A licensee that conducts a voluntary recall does not waive any right to an informal meeting or an administrative or judicial hearing or appeal.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A waiver of liability or appeal rights shall be valid only if expressly stated in writing and signed by the licensee following the conclusion of a condemnation proceeding pursuant to Section 26039.3 or civil litigation regarding the matter.
</html:p>
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<ns0:Num>SEC. 3.</ns0:Num>
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Section 26039.3 of the
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is amended to read:
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<ns0:Num>26039.3.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
If the department finds or has probable cause to believe that cannabis or a cannabis product is adulterated or misbranded, or has an administrative error, within the meaning of this division, or the sale of the cannabis or cannabis product would be in violation of this division, the department shall affix to the cannabis or cannabis product, or component thereof, a tag or other appropriate marking.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The department shall
provide written notice to the licensee that the cannabis or cannabis product is, or is suspected of being, adulterated or misbranded, or of having an administrative error, or the sale of the cannabis or cannabis product would be in violation of this division and has been embargoed and that the cannabis or cannabis product shall not be removed or disposed of by sale or otherwise until permission for removal or disposal is given by the department or a court.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The notice shall be accompanied by clear, articulable facts and evidentiary documentation supporting the department’s legal basis for the embargo, including, but not limited to, all of the following:
</html:p>
<html:p>
(i)
<html:span class="EnSpace"/>
The specific section or subdivision of code or regulation alleged to be violated.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
A copy of the laboratory certificate of analysis and testing data, if applicable.
</html:p>
<html:p>
(iii)
<html:span class="EnSpace"/>
Chain of custody documentation.
</html:p>
<html:p>
(iv)
<html:span class="EnSpace"/>
A detailed description of the sampling procedure.
</html:p>
<html:p>
(v)
<html:span class="EnSpace"/>
Any photographic, electronic, or other evidence, if applicable.
</html:p>
<html:p>
(vi)
<html:span class="EnSpace"/>
A summary of the evidence supporting the finding of adulteration, misbranding, or administrative error.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
It is unlawful to remove, sell, or dispose of embargoed cannabis or an embargoed cannabis product without written permission of the department or a court. The removal, sale, or disposal of each item of embargoed cannabis or cannabis product without written permission of the department constitutes a violation of this subdivision. A violation of this subdivision is subject to a citation and fine of not more than ten thousand dollars ($10,000).
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
Notwithstanding paragraph (1), a licensed cultivator may request
permission for the continued cultivation or harvesting of the cannabis subject to embargo. The department may authorize, and may impose conditions on, the continued cultivation or harvesting of the cannabis subject to embargo.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
If the adulteration, misbranding, or administrative error can be corrected by proper labeling or additional processing of the cannabis or cannabis product and all of the provisions of this division can be complied with, the licensee may request that the department remove the tag or other marking to permit correction. If, under the supervision of the department, the
adulteration, misbranding, or administrative error has been corrected, the department may remove the tag or other marking. Cannabis and cannabis products found at an unlicensed location, or cultivated, processed, produced, or manufactured at an unlicensed location, or derived from an unlicensed source, cannot be corrected and shall be destroyed.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
For any cannabis or a cannabis product that is embargoed, the department shall provide the licensee with an opportunity to meet and confer on the matter within five business days of the delivery of the notification required by paragraph (2) of subdivision (a). The meeting shall include department personnel with knowledge of the matter and shall provide the licensee with an opportunity to present information and
argument as to why the cannabis or cannabis product is not adulterated or misbranded, does not contain an administrative error, and is not otherwise in violation of this division.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The department shall work diligently to make a final determination on whether or not the cannabis or cannabis product is adulterated or misbranded,
or has an administrative error, or the sale of the cannabis or cannabis product would be in violation of this division. If the department takes longer than five business days to make a final determination, the department shall provide the affected licensee with weekly updates on the determination process and a summary of remaining action items until a final determination is made.
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<html:p>
(3)
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If the department finds that cannabis or a cannabis product that is embargoed is not adulterated or misbranded,
or does not have an administrative error, or that its sale is not otherwise in violation of this division, the department shall remove the tag or other marking within 24 hours of that determination.
</html:p>
<html:p>
(e)
<html:span class="EnSpace"/>
The cannabis or cannabis product may be destroyed or remediated by the licensee or product owner pursuant to a corrective action plan approved by the department and under the supervision of the department. If destroyed, the cannabis or cannabis product shall be destroyed at the expense of the licensee or product owner.
</html:p>
<html:p>
(f)
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(1)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
The department may condemn cannabis or a cannabis product under the provisions of this section.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
(i)
<html:span class="EnSpace"/>
A
proceeding for condemnation shall be initiated by the department within 10 days of the department’s rejection of a corrective action plan submitted by the licensee, or within 10 days of the embargo if no corrective action plan is submitted.
</html:p>
<html:p>
(ii)
<html:span class="EnSpace"/>
Failure of the department to approve a corrective action plan or initiate condemnation proceedings within this timeframe shall result in the automatic release of the embargo, unless an administrative law judge determines that the department has shown good cause for the delay.
</html:p>
<html:p>
(C)
<html:span class="EnSpace"/>
A proceeding for condemnation shall be subject to appropriate notice to, and the opportunity for a hearing with regard to, the person or licensee affected in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the
Government Code.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
(A)
<html:span class="EnSpace"/>
Notwithstanding the timelines in Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code, if the cannabis or cannabis product subject to condemnation is a perishable agricultural product, the administrative law judge shall schedule the hearing no later than five business days after the petition for condemnation is
filed, upon request of the licensee.
</html:p>
<html:p>
(B)
<html:span class="EnSpace"/>
The administrative law judge shall issue a decision within 48 hours of the conclusion of the hearing.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Upon a finding by the administrative law judge that the cannabis or cannabis product is adulterated, misbranded, or has an administrative error, or that its sale is otherwise in violation of this division, the administrative law judge may direct the cannabis or cannabis product to be destroyed at the expense of the licensee or product owner and under the supervision of the department. The licensee or owner of the
affected cannabis or cannabis product shall pay fees and reasonable costs, including the costs of storage, testing, and supervision, incurred by the department in investigating and prosecuting the action taken pursuant to this section.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
Upon a finding by the administrative law judge that the adulteration, misbranding, or administrative error can be corrected by proper labeling or additional processing of the cannabis or cannabis product and that all provisions of this division can be complied with, the administrative law judge may direct the cannabis or cannabis products to be brought into compliance under the department’s supervision. The
licensee shall pay fees and reasonable costs, including the costs of storage, testing, and supervision, incurred by the department in investigating and prosecuting the action. After the costs, fees, and expenses have been paid, the department may release the embargo and remove the tag or other marking and supervise the corrective action.
</html:p>
<html:p>
(g)
<html:span class="EnSpace"/>
(1)
<html:span class="EnSpace"/>
The department shall not require a licensee to sign a waiver of liability, or to waive any right to an informal meeting or an administrative or judicial hearing or appeal, as a condition of removing an embargo tag, approving a corrective action plan, or permitting the destruction of product.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
A waiver of liability or appeal rights shall only be valid if executed following the conclusion of a condemnation proceeding pursuant
to this section or civil litigation regarding the matter.
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<ns0:Num>SEC. 4.</ns0:Num>
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Section 26039.5 of the
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is amended to read:
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<ns0:Num>26039.5.</ns0:Num>
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<html:p>
(a)
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Cannabis or a cannabis product is misbranded if it is any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
Cultivated, processed, manufactured, packed, or held in a location not duly licensed as provided in this division.
</html:p>
<html:p>
(2)
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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.
</html:p>
<html:p>
(3)
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Its labeling is false or misleading in any particular.
</html:p>
<html:p>
(b)
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It is unlawful to cultivate, process, manufacture, sell, deliver, hold, or offer for sale cannabis or a cannabis product that is misbranded.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
It is unlawful to misbrand cannabis or a cannabis product.
</html:p>
<html:p>
(d)
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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.
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<ns0:Num>SEC. 5.</ns0:Num>
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Section 26039.6 of the
<ns0:DocName>Business and Professions Code</ns0:DocName>
is amended to read:
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<ns0:Num>26039.6.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Cannabis or a cannabis product is adulterated if it is any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
It consists, in whole or in part, of any filthy, putrid, or decomposed substance.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
Its container is composed, in whole or in part, of any poisonous or deleterious substance that may render the contents injurious to health.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is unlawful to cultivate, manufacture, distribute, sell, deliver, hold, or offer for sale cannabis or a cannabis product that is adulterated.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
It is unlawful to adulterate cannabis or a cannabis product.
</html:p>
<html:p>
(d)
<html:span class="EnSpace"/>
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.
</html:p>
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<ns0:Num>SEC. 6.</ns0:Num>
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Section 26039.7 is added to the
<ns0:DocName>Business and Professions Code</ns0:DocName>
, to read:
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<ns0:Num>26039.7.</ns0:Num>
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<html:p>
(a)
<html:span class="EnSpace"/>
Cannabis or a cannabis product has an administrative error if it has any of the following:
</html:p>
<html:p>
(1)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(2)
<html:span class="EnSpace"/>
The laboratory conducting compliance testing on the product makes a clerical error in the track and trace system in reporting test results.
</html:p>
<html:p>
(3)
<html:span class="EnSpace"/>
Its concentrations differ from, or its purity or quality is below, that which it is represented to possess.
</html:p>
<html:p>
(4)
<html:span class="EnSpace"/>
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.
</html:p>
<html:p>
(5)
<html:span class="EnSpace"/>
It is a 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 cannabis product.
</html:p>
<html:p>
(b)
<html:span class="EnSpace"/>
It is unlawful to cultivate, manufacture, distribute, sell, deliver, hold, or offer for sale cannabis or a cannabis product that has an administrative error.
</html:p>
<html:p>
(c)
<html:span class="EnSpace"/>
It is unlawful to receive in commerce cannabis or a cannabis product that has an administrative error or to distribute, deliver, or proffer for delivery cannabis or cannabis product that has an administrative error.
</html:p>
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