Bill > H4534

This bill establishes new regulations for financial transactions between cannabis industry licensees, creating a structured framework for extending and managing credit. Specifically, the bill allows licensees (which include marijuana and medical marijuana establishments) to extend credit to each other for up to 60 days in the normal course of business, with strict reporting requirements if a payment becomes delinquent. If a licensee fails to pay within 60 days, they must be reported to the Cannabis Control Commission, which will then post their name on a delinquent list, prohibiting other licensees from selling to them except upon full, pre-delivery payment. The bill provides some flexibility for licensees experiencing significant business disruptions due to events like riots, fires, or natural disasters, allowing them to potentially seek temporary relief from these provisions. Violations of these credit regulations can result in fines up to $5,000, and licensees on the delinquent list cannot change ownership until all outstanding debts are satisfied. The bill also requires the Cannabis Control Commission to develop regulations to implement these provisions within one year of the act's effective date, ensuring a clear and consistent approach to managing accounts receivable in the cannabis industry.

Budget and Finance

Joint Committee on Cannabis Policy (Joint)

https://malegislature.gov/Bills/194/H4534