Assembly BillChaptered/SignedBusiness and Professions
AB 2250: Cannabis: cannabinoids.
What AB 2250 does, verified September 29, 2026
This bill makes several changes to California's cannabis laws and regulations. It excludes certain cannabis products, including CBD and CBN isolates, from the definition of cannabis concentrates. The bill also clarifies the presumption that a product containing a cannabinoid is a cannabis product, and it expands the seizure authority of law enforcement agencies. Additionally, the bill prohibits businesses that sell tobacco or cigarettes from selling cannabis or cannabis products. The bill also revises the funding provision for the cigarette and tobacco products licensing act, making it clear that the seizure and destruction of seized products are part of the act's purpose.
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Last action: Chaptered by Secretary of State - Chapter 593, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 593, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 03, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 26, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 6581.). |
| Aug. 25, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 4,065 words
Assembly Bill No. 2250
CHAPTER 593
An act to amend Sections 22980.6, 22990, and 26068 of the Business and Professions Code, to amend Section 11006.5 of the Health and Safety Code, and to amend Sections 34010 and 34016 of the Revenue and Taxation Code, relating to cannabis.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 2250, Aguiar-Curry. Cannabis: cannabinoids.
Chapter 248 of the Statutes of 2025 (AB 8) revised the Sherman Food, Drug, and Cosmetic Law to prohibit industrial hemp raw extract from being incorporated into food, food additives, beverages, or dietary supplements unless the industrial hemp raw extract is comprised of cannabidiol (CBD) or cannabinol (CBN) isolate with a purity level greater than 99% and does not contain any tetrahydrocannabinols or synthetic cannabinoids. AB 8, beginning January 1, 2028, revises and recasts various provisions in conformity with that prohibition. Among those conforming changes, AB 8 excludes CBD isolate from the definition of “cannabis concentrate” for purposes of the California Uniform Controlled Substances Act, which imposes various penalties for the unlawful possession or sale of cannabis concentrate.
This bill, beginning on January 1, 2028, would also exclude CBN isolate from that definition of “cannabis concentrate.”
AB 8 revised certain Cannabis Tax Law enforcement provisions by establishing a presumption that a product that contains or purports to contain a cannabinoid is a cannabis product, as specified. AB 8 authorized this presumption to be rebutted by evidence showing either that the product complies with the Sherman Food, Drug, and Cosmetic Law provisions regulating industrial hemp or that it meets the definition of industrial hemp as defined in the California Uniform Controlled Substances Act.
This bill would make organizational and clarifying changes to those presumption provisions. The bill would consolidate and make other clarifying changes to definitional provisions of the Cannabis Tax Law revised by AB 8.
The Cannabis Tax Law authorizes the California Department of Tax and Fee Administration or a law enforcement agency to seize cannabis or cannabis products from a person who possesses, stores, owns, or has made a sale of those cannabis or cannabis products under certain circumstances. AB 8 expanded the seizure authority under the Cannabis Tax Law to include a circumstance in which the product is possessed, stored, offered for sale, or sold by an unlicensed person or at an unlicensed premises, and is presumed to be a cannabis product for containing or purporting to contain a cannabinoid, including a synthetic cannabinoid, as defined.
This bill would remove that AB 8 provision and, instead, would expand that seizure authority to include a circumstance in which the cannabis or cannabis product is possessed, stored, offered for sale, or sold at an unlicensed premises.
AB 8 revised the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) to subject industrial hemp that enters the licensed market under MAUCRSA or is used in a cannabis product to the regulatory requirements of cannabis or cannabis products under MAUCRSA, including identification in a track and trace program established by the Department of Cannabis Control for reporting the movement of cannabis and cannabis products throughout the distribution chain, as specified. MAUCRSA, as revised by AB 8, requires the track and trace program to include an electronic software tracking system to capture data and track movement of cannabis through the commercial supply chain from cultivation to sale.
This bill would specify that the data captured and movement tracked includes cultivation, harvest, processing, manufacturing, distribution, inventory, sale, and delivery.
AB 8 revised the Cigarette and Tobacco Products Licensing Act of 2003 (act) to prohibit a person that is engaged in the business of selling cigarettes or tobacco products from possessing, storing, owning, or making a retail sale of cannabis, cannabis products, or a product presumed to be cannabis, and makes a violation of that prohibition subject to a specified fine and license suspension or revocation, as applicable. The act authorizes the California Department of Tax and Fee Administration to seize cannabis or cannabis products that were possessed, stored, owned, or sold at retail by a person in violation of that prohibition. The act also makes a violation of its provisions a crime, as specified.
This bill would expand the above-described prohibition on making a retail sale of cannabis, cannabis products, or a product presumed to be cannabis to, instead, prohibit a person that is engaged in the business of selling cigarettes or tobacco products from making any sale of cannabis, cannabis products, or a product presumed to be cannabis. By expanding the scope of a crime under the act, the bill would impose a state-mandated local program. The bill would also expand the department’s seizure authority to include the seizure of cannabis, cannabis products, or a product presumed to be cannabis that a person sells in violation of the prohibition, as expanded by the bill.
Existing law requires all moneys collected pursuant to the Cigarette and Tobacco Products Licensing Act of 2003 to be deposited in the Cigarette and Tobacco Products Compliance Fund and makes all moneys in the fund available for expenditure, upon appropriation by the Legislature, solely for the purpose of implementing, enforcing, and administering the act, including the seizure and destruction of cigarettes and tobacco products.
This bill would revise that funding provision to specify that the purpose of implementing, enforcing, and administering the act includes the seizure and destruction of any product seized pursuant to the act. The bill would make clarifying changes, including to the definitions of cannabis and cannabis product for purposes of those provisions.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.
The people of the State of California do enact as follows:
SECTION 1.
Section 22980.6 of the Business and Professions Code is amended to read:22980.6.
(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 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 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 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 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” shall have the same meaning as provided in Section 11018 of the Health and Safety Code.
(2) “Cannabis products” shall have the same meaning as provided in subdivision (a) of Section 11018.1 of the Health and Safety Code.
(3) “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.
SEC. 2.
Section 22990 of the Business and Professions Code is amended to read:22990.
(a) All moneys collected pursuant to this division shall be deposited in the Cigarette and Tobacco Products Compliance Fund, which is hereby created in the State Treasury. No moneys in the Cigarette and Tobacco Products Compliance Fund shall be used to supplant state or local General Fund money for any purpose.(b) All moneys in the Cigarette and Tobacco Products Compliance Fund are available for expenditure, upon appropriation by the Legislature, solely for the purpose of implementing, enforcing, and administering this division, including the seizure and destruction of any product seized pursuant to this division.
SEC. 3.
Section 26068 of the Business and Professions Code is amended to read:26068.
(a) The department, in consultation with the California Department of Tax and Fee Administration, shall ensure that the track and trace program can also track and trace the amount of the cultivation tax due pursuant to Part 14.5 (commencing with Section 34010) of Division 2 of the Revenue and Taxation Code. The track and trace program shall include an electronic software tracking system to capture data and track movement of cannabis through the commercial supply chain from cultivation to sale, including, but not limited to, cultivation, harvest, processing, manufacturing, distribution, inventory, sale, and delivery.(b) The department shall ensure that licensees under this division are allowed to use third-party applications, programs, and information technology systems to comply with the requirements of the expanded track and trace program described in subdivision (a) to report the movement of cannabis and cannabis products throughout the distribution chain and communicate the information to licensing agencies as required by law.
(c) Any software, database, or other information technology system utilized by the department to implement the expanded track and trace program shall support interoperability with third-party cannabis business software applications and allow all licensee-facing system activities to be performed through a secure application programming interface (API) or comparable technology that is well documented, bi-directional, and accessible to any third-party application that has been validated and has appropriate credentials. The API or comparable technology shall have version control and provide adequate notice of updates to third-party applications. The system should provide a test environment for third-party applications to access that mirrors the production environment.
(d) (1) The department shall incorporate delivery into the track and trace program no later than January 1, 2023.
(2) Notwithstanding any other law, provisions related to inclusion of information related to delivery in the track and trace system in Sections 26067 and 26090 shall only become effective after the department incorporates delivery into the track and trace program as required by this subdivision.
(3) Notwithstanding any other law, the department may adopt and readopt emergency regulations to implement this subdivision. The provisions of Section 26013 shall be applicable to emergency regulations adopted or readopted pursuant to this section. The emergency regulations authorized by this paragraph shall be deemed an emergency and necessary for the immediate preservation of public peace, health, safety, or general welfare.
SEC. 4.
Section 11006.5 of the Health and Safety Code is amended to read:11006.5.
(a) Before January 1, 2026, “concentrated cannabis” means the separated resin, whether crude or purified, obtained from cannabis.(b) Beginning on January 1, 2026, and until January 1, 2028, “concentrated cannabis” or “cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing potency, and includes extracts, oils, hash, dab, shatter, rosin, wax, and the separated resin, whether crude or purified.
(c) Beginning on January 1, 2028, the following apply:
(1) “Concentrated cannabis” or “cannabis concentrate” means cannabis or industrial hemp that has undergone a process to concentrate one or more active cannabinoids, thereby increasing potency, and includes extracts, oils, hash, dab, shatter, rosin, wax, and the separated resin, whether crude or purified.
(2) “Cannabis concentrate” does not include CBD isolate or CBN isolate, as defined in Section 26001 of the Business and Professions Code.
SEC. 5.
Section 34010 of the Revenue and Taxation Code is amended to read:34010.
(a) This part shall be known, and may be cited, as the “Cannabis Tax Law.”(b) For purposes of this part:
(1) “2020–21 fiscal year baseline” means the total amount of funds disbursed in the sub-trust accounts in fiscal year 2021–22 for the third allocation of the fiscal year 2020–21 revenue, pursuant to subdivision (f) of Section 34019, as determined by the Department of Finance.
(2) “Arm’s length transaction” shall mean a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.
(3) “Average market price” shall mean both of the following:
(A) (i) In an arm’s length transaction, the average retail price determined by the wholesale cost of the cannabis or cannabis products sold or transferred to a cannabis retailer, plus a mark-up, as determined by the department on a biannual basis in six-month intervals on or before July 1, 2022.
(ii) Notwithstanding clause (i), the department shall not increase the mark-up amount during the period beginning on and after the operative date of the act amending this section by adding this clause and before July 1, 2021.
(B) In a nonarm’s length transaction, the cannabis retailer’s gross receipts from the retail sale of the cannabis or cannabis products.
(4) “Cannabis” has the same meaning as set forth in Section 11018 of the Health and Safety Code and shall also mean medicinal cannabis.
(5) “Cannabis products” has the same meaning as set forth in subdivision (a) of Section 11018.1 of the Health and Safety Code and shall also mean medicinal concentrates and medicinal cannabis products.
(6) “Cannabis flowers” means the dried flowers of the cannabis plant as defined by the department.
(7) “Cannabis leaves” means all parts of the cannabis plant other than cannabis flowers that are sold or consumed.
(8) “Cannabis retailer” means a person required to be licensed pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code as a retailer, non-storefront retailer, microbusiness, or nonprofit, or any other person otherwise authorized under Division 10 (commencing with Section 26000) of the Business and Professions Code to engage in retail sales.
(9) “Cultivator” means all persons required to be licensed to cultivate cannabis pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(10) “Department” means the California Department of Tax and Fee Administration or its successor agency.
(11) “Designated for donation” means medicinal cannabis donated by a cultivator to a cannabis retailer for subsequent donation to a medicinal cannabis patient pursuant to Section 26071 of the Business and Professions Code.
(12) “Distributor” means a person required to be licensed as a distributor pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(13) “Enters the commercial market” means cannabis or cannabis products, except for immature cannabis plants and seeds, that complete and comply with a quality assurance review and testing, as described in Section 26110 of the Business and Professions Code.
(14) “Gross receipts” has the same meaning as set forth in Section 6012.
(15) “Manufacturer” means a person required to be licensed as a manufacturer pursuant to Division 10 (commencing with Section 26000) of the Business and Professions Code.
(16) “Medicinal cannabis patient” means a qualified patient, as defined in Section 11362.7 of the Health and Safety Code, who possesses a physician’s recommendation that complies with Article 25 (commencing with Section 2525) of Chapter 5 of Division 2 of the Business and Professions Code, or a qualified patient or primary caregiver for a qualified patient issued a valid identification card pursuant to Section 11362.71 of the Health and Safety Code.
(17) “Microbusiness” has the same meaning as set forth in Section 26001 of the Business and Professions Code.
(18) “Nonprofit” has the same meaning as set forth in Section 26070.5 of the Business and Professions Code.
(19) “Person” has the same meaning as set forth in Section 6005.
(20) “Retail sale” has the same meaning as set forth in Section 6007.
(21) “Sale” and “purchase” mean any change of title or possession, exchange, or barter, conditional or otherwise, in any manner or by any means whatsoever, for consideration.
(22) “Sub-trust accounts” means the sub-trust accounts created under subdivision (f) of Section 34019.
(23) “Tax fund” means the California Cannabis Tax Fund created by Section 34018.
(24) “Transfer” means to grant, convey, hand over, assign, sell, exchange, or barter, in any manner or by any means, with or without consideration.
(25) “Unprocessed cannabis” includes cannabis flowers, cannabis leaves, or other categories of harvested cannabis, categories for unprocessed or frozen cannabis or immature plants, or cannabis that is shipped directly to manufacturers.
SEC. 6.
Section 34016 of the Revenue and Taxation Code is amended to read:34016.
(a) Any peace officer or department employee granted limited peace officer status pursuant to paragraph (6) of subdivision (a) of Section 830.11 of the Penal Code, upon presenting appropriate credentials, is authorized to enter any place as described in paragraph (2) and to conduct inspections in accordance with the following paragraphs, inclusive.(1) Inspections shall be performed in a reasonable manner and at times that are reasonable under the circumstances, taking into consideration the normal business hours of the place to be entered.
(2) Inspections may be at any place at which cannabis or cannabis products are sold to purchasers, cultivated, or stored, at any site where evidence of activities involving evasion of tax may be discovered, or at any place where any package, label, advertisement, or other document or object of any kind bearing the universal symbol as described in paragraph (7) of subdivision (c) of Section 26130 of the Business and Professions Code and any applicable regulations, are sold or stored in violation of Section 26031.6 of the Business and Professions Code.
(3) Inspections shall be conducted no more than once in a 24-hour period.
(b) Any person who fails or refuses to allow an inspection shall be guilty of a misdemeanor. Each offense shall be punished by a fine not to exceed five thousand dollars ($5,000), or imprisonment not exceeding one year in a county jail, or both the fine and imprisonment. The court shall order any fines assessed be deposited in the California Cannabis Tax Fund.
(c) (1) (A) The department or a law enforcement agency may seize cannabis or cannabis products from a person who possesses, stores, owns, or has made a retail sale of those cannabis or cannabis products if any of the following apply:
(i) Until January 1, 2023, the cannabis or cannabis products are without evidence of tax payment.
(ii) The cannabis or cannabis products are not contained in secure packaging.
(iii) The person is an unlicensed person specified in paragraph (1) of subdivision (a) of Section 34015.1.
(iv) The cannabis or cannabis product is possessed, stored, offered for sale, or sold at an unlicensed premises.
(v) The cannabis or cannabis products were not reported in the track and trace system, as specified in subdivision (b) of Section 34015.1.
(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 complies with either of the following:
(i) 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.
(ii) Meets the definition of industrial hemp, as that term is defined in Section 11018.5 of the Health and Safety Code.
(C) The department may seize any package, label, advertisement, or other document or object of any kind bearing the universal symbol or bearing any likeness or simulation of the universal symbol in violation of Section 26031.6 of the Business and Professions Code. Any package, label, advertisement, or other document or object seized by the department pursuant to this paragraph shall be deemed forfeited and the department shall comply with the procedures set forth in Sections 30436 to 30449, inclusive.
(D) Any cannabis or cannabis products seized by a law enforcement agency or the department shall be deemed forfeited and the department shall comply with the procedures set forth in Sections 30436 through 30449, inclusive.
(2) Any seizures authorized pursuant to paragraph (1) of this subdivision are in addition to any criminal or civil penalties that may be imposed by law, including subdivision (e) of this section.
(3) For purposes of this section, “cannabinoid” and “synthetic cannabinoid” shall have the same meanings as provided in Division 10 (commencing with Section 26000) of the Business and Professions Code.
(d) Any person who renders a false or fraudulent report is guilty of a misdemeanor and subject to a fine not to exceed one thousand dollars ($1,000) for each offense.
(e) Any violation of any provisions of this part, except as otherwise provided, is a misdemeanor and is punishable as such.
(f) All moneys remitted to the department under this part shall be credited to the California Cannabis Tax Fund.
SEC. 7.
No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.Text of AB 2250 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions