Cannabis: licensing: payment of goods and services.

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.