Cannabis: licensing: payment of goods and services.
- Requires suspension of cannabis licenses when businesses fail to pay other licensed cannabis companies.
- Mandates a 30-day waiting period after court judgments before license suspensions can be requested.
- Allows license reinstatement once the suspended business pays its debt and provides proof.
- Authorizes the Department of Cannabis Control to charge fees for processing suspensions and reinstatements.
Senator Arreguín's Cannabis Payment Protection Act establishes new enforcement mechanisms for payment disputes between licensed cannabis businesses in California, authorizing the Department of Cannabis Control to suspend licenses of operators who fail to pay other licensees for goods and services.
Under the proposed legislation, the Department must suspend a cannabis license when two conditions are met: the licensee becomes subject to a court order or civil judgment for nonpayment to another licensee, and the unpaid licensee submits that judgment to the Department at least 30 days after issuance. Suspended licenses can be reinstated once operators comply with the court order or judgment and provide evidence of compliance to the Department. The Department may charge administrative fees to both complainants requesting suspensions and suspended licensees seeking reinstatement.
The measure applies exclusively to payment disputes between entities licensed under California's cannabis regulations. It builds upon existing oversight frameworks established through the Control, Regulate and Tax Adult Use of Marijuana Act and the Medicinal and Adult-Use Cannabis Regulation and Safety Act, which currently govern commercial cannabis activities in the state. The bill requires a two-thirds vote in both legislative chambers for passage, as specified under AUMA's amendment provisions.
 Roger NielloR Senator | Committee Member |  Not Contacted | |
 Steven ChoiR Senator | Committee Member | Not Contacted | |
 Tim GraysonD Senator | Committee Member | Not Contacted | |
 Bob ArchuletaD Senator | Committee Member | Not Contacted | |
 Tom UmbergD Senator | Committee Member | Not Contacted |
Email the authors or create an email template to send to all relevant legislators.
Introduced By
- Requires suspension of cannabis licenses when businesses fail to pay other licensed cannabis companies.
- Mandates a 30-day waiting period after court judgments before license suspensions can be requested.
- Allows license reinstatement once the suspended business pays its debt and provides proof.
- Authorizes the Department of Cannabis Control to charge fees for processing suspensions and reinstatements.
Email the authors or create an email template to send to all relevant legislators.
Introduced By
Senator Arreguín's Cannabis Payment Protection Act establishes new enforcement mechanisms for payment disputes between licensed cannabis businesses in California, authorizing the Department of Cannabis Control to suspend licenses of operators who fail to pay other licensees for goods and services.
Under the proposed legislation, the Department must suspend a cannabis license when two conditions are met: the licensee becomes subject to a court order or civil judgment for nonpayment to another licensee, and the unpaid licensee submits that judgment to the Department at least 30 days after issuance. Suspended licenses can be reinstated once operators comply with the court order or judgment and provide evidence of compliance to the Department. The Department may charge administrative fees to both complainants requesting suspensions and suspended licensees seeking reinstatement.
The measure applies exclusively to payment disputes between entities licensed under California's cannabis regulations. It builds upon existing oversight frameworks established through the Control, Regulate and Tax Adult Use of Marijuana Act and the Medicinal and Adult-Use Cannabis Regulation and Safety Act, which currently govern commercial cannabis activities in the state. The bill requires a two-thirds vote in both legislative chambers for passage, as specified under AUMA's amendment provisions.
Roger NielloR Senator | Committee Member | Not Contacted | |
Steven ChoiR Senator | Committee Member | Not Contacted | |
Tim GraysonD Senator | Committee Member | Not Contacted | |
Bob ArchuletaD Senator | Committee Member | Not Contacted | |
Tom UmbergD Senator | Committee Member | Not Contacted |