SB-479
Agriculture & Food

Cannabis: licensing: payment of goods and services.

Introduced
CA
2025-2026 Regular Session
0
0
Track

Key Takeaways

  • 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.

Summary

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.

Key Dates

Next Step
Referred to the Senate Standing Committee on Business, Professions and Economic Development
Next Step
Senate Committee
Referred to the Senate Standing Committee on Business, Professions and Economic Development
Hearing has not been scheduled yet
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Roger NielloR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Steven ChoiR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Bob ArchuletaD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tom UmbergD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 11 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Roger NielloR
Senator
Committee Member
Profile
Steven ChoiR
Senator
Committee Member
Profile
Tim GraysonD
Senator
Committee Member
Profile
Bob ArchuletaD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
Akilah Weber PiersonD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Caroline MenjivarD
Senator
Committee Member
Profile
Lola Smallwood-CuevasD
Senator
Committee Member
Profile
Jesse ArreguinD
Senator
Bill Author
Profile
Suzette ValladaresR
Senator
Committee Member

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Jesse Arreguin
Jesse ArreguinD
California State Senator
10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/19/2025)

Key Takeaways

  • 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.

Get Involved

Act Now!

Email the authors or create an email template to send to all relevant legislators.

Introduced By

Jesse Arreguin
Jesse ArreguinD
California State Senator

Summary

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.

10% progression
Bill has been formally introduced and read for the first time in its house of origin (2/19/2025)

Key Dates

Next Step
Referred to the Senate Standing Committee on Business, Professions and Economic Development
Next Step
Senate Committee
Referred to the Senate Standing Committee on Business, Professions and Economic Development
Hearing has not been scheduled yet
Introduced
Senate Floor
Introduced
Introduced. Read first time. To Com. on RLS. for assignment. To print.

Contacts

Profile
Roger NielloR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Steven ChoiR
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tim GraysonD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Bob ArchuletaD
Senator
Committee Member
Not Contacted
Not Contacted
Profile
Tom UmbergD
Senator
Committee Member
Not Contacted
Not Contacted
0 of 11 row(s) selected.
Page 1 of 3
Select All Legislators
Profile
Roger NielloR
Senator
Committee Member
Profile
Steven ChoiR
Senator
Committee Member
Profile
Tim GraysonD
Senator
Committee Member
Profile
Bob ArchuletaD
Senator
Committee Member
Profile
Tom UmbergD
Senator
Committee Member
Profile
Akilah Weber PiersonD
Senator
Committee Member
Profile
Angelique AshbyD
Senator
Committee Member
Profile
Caroline MenjivarD
Senator
Committee Member
Profile
Lola Smallwood-CuevasD
Senator
Committee Member
Profile
Jesse ArreguinD
Senator
Bill Author
Profile
Suzette ValladaresR
Senator
Committee Member