Post date: 10/2/2018

California is one of the places in the United States where state legislature keeps revising the laws for the cannabis industry. In recent time, the law for cultivating cannabis within the leased areas has been released. Under the Section 53069.4, the Municipality shall have to give some time to the landlords before imposing fine on them for inappropriate cannabis cultivation.

However, a revised amendment AB 2164 was signed as well. Under this amendment, the reasonable time, provided by the Municipality will be removed. That means, as per this new rule, the municipality can impose fine on the landlord anytime. This amendment has taken to solve code violation in Cannabis Cultivation process in California.

Most of the time landlords who have given their lands or property to tenants do not get any idea whether inappropriate cannabis cultivation is taking place or not. According to the reports, many landlords have to pay the fortune as fine or tax due to such activities. There are two reasons for this, one, they have no idea their tenants are growing cannabis in their property and the other reason is most of the landlords do not have an idea about the laws imposed on cultivating cannabis in leased properties.

In the recent past, many landlords have paid lump sum amount (up to $10,000 per day) as fine for the same reason. However, the new rule is a little relaxed for few cities. According to AB 2164, some of the selected cities will get little time before imposing fine on them.

There are three broad rules that must be fulfilled by the landlords or agents to avoid the fine imposition under this amendment. These three regulations are as follows:

  1. Firstly, the tenant has to be in possession of the said property which is the subject to the administrative action.
  2. Secondly, the landlord and the agents have to show proper documentation that before handing over the property for leasing, they have mentioned in the contract that no cannabis cultivation or similar activity will be allowed in the property. The lease or the rent agreement between the tenant and the landlord must have prohibition of cannabis cultivation.
  3. The property owner or the agent or the landlord must not know about the illegal cultivation of cannabis takes place in his property by the tenants. There should not be any complaint, legal notice, inspection of the property or any other ways through which the landlord would know about the illegal cannabis cultivation.

All the commercial landlords who are leasing their property to the tenants must keep this in mind that if their tenants are cultivating cannabis then it must be under the legal permission. Also, they need to fulfill the above-mentioned rules.


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