AB1826 - Cannabis: recall, embargo, and destruction of cannabis and cannabis products.

Amended IN Senate June 25, 2026 Amended IN Senate June 16, 2026 Amended IN Assembly April 14, 2026 Amended IN Assembly March 19, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 1826 Introduced by Assembly Member Lackey (Coauthors: Assembly Members Chen and Hadwick) February 11, 2026 An act to amend Sections 26031.5, 26039.1, 26039.3, 26039.5, and 26039.6 of the Business and Professions Code, relating to cannabis. LEGISLATIVE COUNSEL'S DIGEST AB 1826, as amended, Lackey. Cannabis: recall, embargo, and destruction of cannabis and cannabis products. 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 instances in which concentrations differ from, or its purity or quality is below, that which it is represented to possess. This bill would revise the standards for determining whether cannabis or a cannabis product has been misbranded or adulterated by eliminating certain conditions, including the conditions described above. 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. This bill would require those notifications to include certain documentation supporting the finding of adulteration or misbranding, or the finding of probable cause to issue an embargo, as specified. 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. This bill would authorize, rather than require, the licensee to destroy the affected cannabis or cannabis product under those circumstances. The bill would require the department, prior to a voluntary recall by the licensee, to provide the licensee with an opportunity for an informal conference on why the cannabis or cannabis product is considered adulterated or misbranded. The bill would prohibit the department from permitting destruction of the product until either the informal conference process has concluded or the licensee has declined to participate in the informal conference. 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. 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 with an opportunity for an informal conference on the recall, instead of an informal proceeding, as specified. The bill would prohibit the department from requiring destruction of cannabis or cannabis product prior to the conclusion of either the informal conference process or the licensee’s decision not to participate in the informal conference. 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. This bill would require the department to provide the licensee with an opportunity for an informal conference on an embargo, as specified, and would require the department to make a final determination on the embargo order within 15 calendar days from the date of the informal conference. The bill would require the department to remove the embargo tag or other marking within 5 calendar days of finding that cannabis or a cannabis product is not in violation of MAUCRSA, as specified. Existing law authorizes the department to condemn cannabis or a cannabis product that is embargoed. Existing law also authorizes the licensee or product owner of embargoed cannabis or cannabis product to destroy or remediate the cannabis or cannabis product pursuant to a corrective action plan approved by the department and under the supervision of the department. This bill would authorize the department to initiate condemnation proceedings, as provided, if the department does not approve a corrective action plan or does not receive a response from the licensee with 7 days of the notice of the embargo. This 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. The bill would make failure to comply with a condemnation order a separate cause for disciplinary action against a licensee. 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 and requires the citation to include a provision that notifies the licensee or person that a hearing may be requested to contest the finding of a violation. Existing law requires the hearing to be conducted pursuant to specified provisions of the Administrative Procedure Act that govern formal hearings. This bill would instead require the citation to include a provision that notifies the licensee that a hearing or informal conference, or both, may be requested to contest the violation, as specified. The bill would require the informal hearing to be conducted pursuant to different provisions of the Administrative Procedure Act, other than the provisions governing formal hearings, and would set forth additional specific procedures for the informal conference. The bill would require a citation issued under these provisions to be issued within 3 years after the performance of the act or omission that violates MAUCRSA. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill Text The people of the State of California do enact as follows: SECTION 1. Section 26031.5 of the Business and Professions Code is amended to read: 26031.5. (a) (1) 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. The citation shall describe with particularity the legal and factual basis of the citation, and it shall also include the notification described in subdivision (c). 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. (2) 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: (A) The gravity of the violation by the licensee or person. (B) The good faith of the licensee or person. (C) The history of previous violations. (b) The sanctions authorized under this section shall be separate from, and in addition to, all other administrative, civil, or criminal remedies. (c) A citation issued pursuant to this section shall include a provision that notifies the licensee that a hearing or informal conference, or both, may be requested to contest the finding of a violation by submitting a written request within 30 days from service of the citation. (1) (A) A 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). (B) An informal conference shall be held in accordance with the provisions of Chapter 4.5 (commencing with Section 11400) of Part 1 of Division 3 of Title 2 of the Government Code, the requirements contained in paragraph (2), and the regulations of the department. (C) If the licensee fails to submit a written request for a hearing or an informal conference within 30 days from the date of service of the citation, the right to a hearing or an informal conference is waived and the citation shall be deemed a final order of the department and is not subject to review by any court. (2) The department shall, within 15 calendar days after receipt of the written request for an informal conference, hold an informal conference with the licensee or their legal counsel or authorized representative, or any combination of those persons. (A) At the informal conference, the licensee, or their legal counsel or authorized representative, shall be allowed the opportunity to meet with a representative of the department who has knowledge of the citation. The department representative shall describe the factual and legal basis for the citation, if requested. The licensee, or their legal counsel or authorized representative, shall be allowed to present evidence and argument as to why the citation should be modified or dismissed. (B) After the informal conference, the department shall affirm, modify, or dismiss the citation, including any fines levied or orders of abatement issued. The department shall notify the licensee of its decision and the reasoning supporting the decision via written notification, which shall be sent to the licensee and their legal counsel or authorized representative, if any, by electronic means or by mail to the premises address, or by both electronic means and by mail, within 15 calendar days after the date of the informal conference. The decision shall be deemed to be a final order with regard to the citation issued, including the levied fine or the order of abatement, if any. (C) If the citation is dismissed, any request for a hearing shall be deemed withdrawn. If the citation is affirmed, the licensee may either withdraw the request for a hearing or proceed with the administrative hearing process. (D) If the citation, including any fines levied or orders of abatement issued, is modified, the citation originally issued shall be considered withdrawn and a new citation issued. If a hearing is requested for the subsequent citation, it shall be requested within 30 calendar days after issuance of the citation. (d) 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. (e) 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. (f) 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. (g) 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. (h) A citation issued by the department under this section shall be issued within three years after the performance of the act or omission that violates this division or any regulation adopted pursuant to this division. SEC. 2. Section 26039.1 of the Business and Professions Code is amended to read: 26039.1. (a) When the department has evidence that cannabis or a cannabis product is adulterated or misbranded, the department shall provide written notice to the licensee. (1) The notification shall include the following, as applicable: (A) A copy of the laboratory certificate of analysis and testing data. (B) A summary of the evidence supporting the finding of adulteration or misbranding, including the identity of the laboratory and a description of the collection and sampling methodology used. (2) The notice shall also state whether or not the department has determined that a mandatory recall will be ordered. (3) If the department determines that a mandatory recall will be ordered, the following information shall be included in the notice: (A) The specific sectio [Text truncated for display. Full text available on Congress.gov.]