AB 1171 authorizes lawsuits by licensed cannabis businesses against unlicensed cannabis operators

(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).

An in-depth analysis by the Senate Rules Committee is below and can be downloaded here.

Analysis AB 1171 Senate Rules Committee.

Thus, AB 1171 gives licensed operators a new way to hold accountable unlicensed operators who engage in unfair competition and cause actual harm by creating a private right of action.  It also incentivizes enforcement by providing for attorneys fees and damages at the election of the prevailing licensee.