Bill > SB479

This bill, known as the Cannabis Payment Protection Act, introduces a new mechanism for addressing payment disputes within the cannabis industry by allowing the Department of Cannabis Control to suspend the license of a cannabis business that fails to pay another licensed cannabis business for goods or services. Specifically, if a licensee is subject to a court order or civil judgment for nonpayment, the department must suspend their license upon receiving a copy of the judgment from the complainant licensee, but only after 30 days have passed since the judgment was issued. The license suspension remains in effect until the licensee complies with the terms of the court order or judgment. The department can charge administrative fees to both the complainant and the suspended licensee for processing the suspension and reinstatement. This provision applies only to licensed cannabis businesses and transactions involving goods and services between licensed entities. The bill is intended to further the purposes of the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), which was originally approved as Proposition 64 in 2016, and aims to provide a legal mechanism for ensuring fair payment practices within the regulated cannabis market.

Business and Industry

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB479