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Cigarette and Tobacco Products Licensing Act
Business and Professions Code
Division 8.6. Cigarette and Tobacco Products Licensing Act of 2003
Chapter 5. Inspections, Prohibitions, and Penalties
Section 22980.6
22980.6. Penalties, suspension, and revocation for selling cannabis or cannabis products. (a) A person that is engaged in the business of selling cigarettes or tobacco products in this state shall not possess, store, own, or make a retail sale of cannabis, cannabis products, or a product presumed to be a cannabis product pursuant to subdivision (b), or any regulations promulgated pursuant to that chapter, at any site where cigarettes or tobacco products are stored or sold. A person that violates this subdivision is subject to civil penalties and suspension or revocation of their license pursuant to subdivision (d).
(b) For purposes of this section, it shall be presumed that a product that contains or purports to contain a cannabinoid, including a synthetic cannabinoid, is a cannabis product, regardless of the nature or source of the cannabinoid. This presumption may be rebutted by evidence showing that the product does either of the following:
(1) Complies with Chapter 9 (commencing with Section 111920) of Part 5 of Division 104 of the Health and Safety Code and any regulations promulgated pursuant to that chapter.
(2) Meets the definition of industrial hemp, as that term is defined in Section 11018.5 of the Health and Safety Code.
(c) (1) In addition to the authority provided pursuant to Section 34016 of the Revenue and Taxation Code, upon discovery by the department that any person possesses, stores, owns, or has made a retail sale of cannabis or cannabis products in violation of this section, the department is authorized to seize such products at the person’s location. Any cannabis or cannabis products seized by the department pursuant to this subdivision shall be deemed forfeited and the department shall comply with the procedures set forth in Sections 30436 to 30449, inclusive, of the Revenue and Taxation Code.
(2) Any seizures or penalties authorized pursuant to this section are in addition to any criminal or civil penalties that may be imposed by law.
(d) (1) (A) A first violation of subdivision (a) involving the seizure of cannabis or cannabis products shall be punishable as follows:
(i) Cannabis or cannabis products with an aggregate retail value of less than two hundred dollars ($200) shall be punishable by a civil penalty of one thousand dollars ($1,000).
(ii) Cannabis or cannabis product with an aggregate retail value of two hundred dollars ($200) or more shall be punishable by a civil penalty of two thousand dollars ($2,000).
(B) A second violation of subdivision (a) within five years involving a seizure of cannabis or cannabis products shall be punishable as follows:
(i) Cannabis or cannabis products with an aggregate retail value of less than two hundred dollars ($200) shall be punishable by a civil penalty of two thousand dollars ($2,000) and shall also result in a five-day suspension of the license.
(ii) Cannabis or cannabis product with an aggregate retail value of two hundred dollars ($200) or more shall be punishable by a civil penalty of five thousand dollars ($5,000) and shall result in a 10-day suspension of the license.
(C) A third violation of subdivision (a) within five years involving a seizure of cannabis or cannabis products shall be punishable as follows:
(i) Cannabis or cannabis products with an aggregate retail value of less than two hundred dollars ($200) shall be punishable by a civil penalty of five thousand dollars ($5,000) and shall also result in a revocation of the license.
(ii) Cannabis or cannabis products with an aggregate retail value of two hundred dollars ($200) or more shall be punishable by a civil penalty of ten thousand dollars ($10,000) and shall result in a revocation of the license.
(2) The department shall ascertain as best it may the retail value based on any information within the department’s possession or that may come into its possession of the cannabis or cannabis product.
(3) The department shall issue the civil penalty in accordance with the procedures applicable to the civil penalty authorized under Section 22974.7.
(4) The department shall revoke or suspend the license of a person who violates subdivision (a) in accordance with the procedures set forth in Section 22980.3.
(e) For purposes of this section:
(1) "Cannabis" and "cannabis products" shall have the same meaning as provided in Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code.
(2) "Cannabinoid" and "synthetic cannabinoid" shall have the same meaning as provided in Division 10 (commencing with Section 26000).
(f) Civil penalties collected pursuant to this section shall be deposited into the Cigarette and Tobacco Products Compliance Fund created pursuant to Section 22990.
History—Added by Stats. 2025, Ch. 248 (AB 8), in effect January 1, 2026.