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2025 California Code
Business and Professions Code - BPC
DIVISION 10 - Cannabis
CHAPTER 3 - Enforcement
Section 26038.1.

Universal Citation:
CA Bus & Prof Code § 26038.1 (2025)
Learn more This media-neutral citation is based on the American Association of Law Libraries Universal Citation Guide and is not necessarily the official citation.
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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 commercial cannabis activity without a license as required by this division.

(b) In order to prevail in an action brought pursuant to subdivision (a), a licensee shall demonstrate actual harm resulting from the unlicensed commercial cannabis activity.

(c) In an action pursuant to subdivision (a), the court may enter an order enjoining the defendant from engaging in commercial cannabis activity without a license as required by this division.

(d) A licensee that prevails in an action brought pursuant to subdivision (a) shall be entitled to both of the following:

(1) Either of the following damages, at the election of the prevailing licensee:

(A) Actual damages caused by the unlicensed commercial cannabis activity.

(B) Statutory damages not to exceed seventy-five thousand dollars ($75,000).

(2) Reasonable attorney’s fees and costs.

(e) This section does not apply to any violation of the Labor Code committed by a person engaging in unlicensed cannabis activity and shall not form the basis for a cause of action under the Labor Code Private Attorneys General Act of 2004 (Part 13 (commencing with Section 2698) of Division 2 of the Labor Code).

(Added by Stats. 2023, Ch. 467, Sec. 1. (AB 1171) Effective January 1, 2024.)

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