The legal cannabis industry in California has been locked in a seemingly unending battle with the firmly-established black industry ever because the passage of Prop 64 in 2016.
But even as the Californian globe of illicit cannabis continues to hold robust in the middle of a legal-but-struggling regulated industry, these involved in the fight against the illegal marijuana trade show no indicators of letting up.
The California Bureau of Cannabis Manage (BCC) final week issued hundreds of warning letters to landlords in the state, notifying them that their properties are becoming utilized for illegal cannabis activity.
In the letters, the BCC advises landlords that they may possibly be held liable and topic to criminal and civil penalties for enabling tenants to engage in unlicensed cannabis activity on their rental properties.
“This action is an essential step in the state’s work to combat the illegal cannabis industry,” stated BCC Chief Lori Ajax. “It is our hope that by detailing the penalties faced by landlords who rent their space to illegal operators, landlords will improved have an understanding of the extreme consequences that could come with knowingly facilitating illegal industrial cannabis activity and these presently breaking the law will have fewer possibilities exactly where they can conduct their organization.”
Beneath present state law, it is a criminal offense for landlords to enable their rented properties to be utilized for illegal cannabis activity, and operators are topic to criminal penalties such as asset forfeiture.
Landlords or other people who help and abet in illegal activity such as unlicensed cannabis production can be held liable for crimes as if they committed them.
California Well being and Security Codes state that landlords may possibly also be topic to fines and civil liability on prime of criminal charges and incur fines of up to $30,000 per day for illegal cannabis activity.
California law calls for all cannabis firms to retain valid licenses to operate legally in the state.