SB 378: Online marketplaces: illicit cannabis: reporting and liability.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

(1)Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure, authorizes a person who obtains a state license under AUMA and any applicable local ordinances to engage in commercial adult-use cannabis activity pursuant to that license, if conducted as prescribed. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities, and requires the Department of Cannabis Control to administer its provisions.

Existing law, until January 1, 2028, requires a social media platform to create and post a policy statement regarding the use of the social media platform to illegally distribute controlled substances, including a link to the social media platform’s reporting mechanism for illegal or harmful content or behavior on the social media platform, if one exists, and a general description of its policies and procedures for responding to law enforcement inquiries.

This bill, beginning on July 1, 2026, would require an online cannabis marketplace, as defined, to address in its terms of service whether it permits Californians to view the advertisements and business information of unlicensed sellers of cannabis or cannabis products on its marketplace and whether the marketplace verifies the licenses of sellers of cannabis or cannabis products whose advertisements and business information are viewable on its marketplace, as specified. The bill would require an online cannabis marketplace that does not verify those licenses to display a clear and conspicuous graphic that warns the consumer that the marketplace may be displaying, storing, or hosting unlicensed sellers of cannabis or cannabis products.

This bill would require an online cannabis marketplace to establish a clear and conspicuous mechanism within its internet-based service that allows an individual to report to the online cannabis marketplace the display, storing, or hosting on the marketplace of advertisements from, or business information about, an unlicensed seller of cannabis or cannabis products. The bill would require the mechanism to provide the individual who submits a report with written confirmation of receipt of the report, periodic updates, and final written determination, as specified.

This bill would impose certain penalties and relief depending on the violation of these provisions, as specified.

(2)The Sherman Food, Drug, and Cosmetic Law regulates the packaging, labeling, and advertising of food, beverages, and cosmetics and authorizes the State Department of Public Health to adopt regulations for the enforcement of that law, as specified. That law imposes various requirements specific to the manufacture and sale of industrial hemp products that are food or beverages, including a requirement for a certificate of analysis from an independent testing laboratory that confirms that the THC concentration does not exceed a specified amount. Existing emergency regulations require that industrial hemp food, food additives, beverages, and dietary supplements intended for human consumption have no detectable THC per serving.

Sponsors

Sponsors by party (alphabetical): Democratic 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. October 6, 2025Chaptered by Secretary of State. Chapter 411, Statutes of 2025.
2. October 6, 2025Approved by the Governor.
3. September 23, 2025Enrolled and presented to the Governor at 2 p.m.
4. September 13, 2025Assembly amendments concurred in. (Ayes 32. Noes 0. Page 3061.) Ordered to engrossing and enrolling.
5. September 13, 2025In Senate. Concurrence in Assembly amendments pending.
6. September 12, 2025Read third time. Passed. (Ayes 76. Noes 0. Page 3416.) Ordered to the Senate.
7. September 5, 2025Assembly Rule 69(b)(1) suspended.
8. September 5, 2025Ordered to third reading.
9. September 5, 2025Read third time and amended.
10. September 3, 2025Read second time. Ordered to third reading.
11. September 2, 2025Read second time and amended. Ordered to second reading.
12. August 29, 2025From committee: Do pass as amended. (Ayes 11. Noes 0.) (August 29).