Bill Text: CA AB2888 | 2023-2024 | Regular Session | Amended

California Assembly Bill 2888

Bill Title: Cannabis: invoices: payment.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced) 2024-04-17 - In committee: Set, first hearing. Referred to suspense file. [AB2888 Detail]

Download: California-2023-AB2888-Amended.html

Amended IN Assembly April 03, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2888

Introduced by Assembly Member Chen

February 15, 2024

An act to add Section 26161.1 to the Business and Professions Code, relating to cannabis.

LEGISLATIVE COUNSEL'S DIGEST

AB 2888, as amended, Chen. Cannabis: invoices: payment.

The Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA establishes the Department of Cannabis Control within the Business, Consumer Services, and Housing Agency to administer the act, and requires the department to be under the supervision and control of a director.

Existing law requires every sale or transport of cannabis or cannabis products from one licensee to another licensee to be recorded on a sales invoice or receipt and prescribes the information included on those receipts, including the cost to the purchaser. Existing law provides grounds for disciplinary action under MAUCRSA, including failure to comply with the provisions of MAUCRSA or any rule or regulation adopted pursuant to MAUCRSA.

This bill would, except as specified, require a licensee to pay for goods and services sold or transferred by another licensee no later than 15 days following the final date set forth in the invoice. The bill would require a licensee who sold or transferred goods to another licensee and who has not received payment in full 15 days after the final date set forth in the invoice to report the unpaid invoice to the department, as specified. The bill would require the department to notify a licensee of this report, and would require the department to ~~commence a~~ issue a notice of warning, or, in its discretion, issue a citation or take disciplinary action against the licensee if the licensee fails to pay the outstanding invoice in full by 30 days after this notification, as specified. The bill would prohibit the licensee from purchasing goods and services from another licensee on credit until the licensee pays the outstanding invoice in full.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 26161.1 is added to the Business and Professions Code, to read:

26161.1.

(a) (1) A licensee shall pay for goods and services sold or transferred by another licensee no later than 15 days following the final date set forth in the invoice for the cannabis or cannabis products.

(2) The 15-day period described in paragraph (1) shall commence with the day immediately following the due date of the invoice and shall include all successive days, including Sundays and holidays. When the 15th day from the due date of the invoice falls on Saturday, Sunday, or a legal holiday, the next business day shall be deemed to be the expiration day.

(b) (1) A licensee who sold or transferred goods to another licensee and who has not received payment in full 15 days after the final date set forth in the invoice as required by subdivision (a) shall report the unpaid invoice to the department.

(2) A report made pursuant to paragraph (1) shall include all of the following:

(A) The sale or transfer date of the cannabis or cannabis products.

(B) The invoice due date.

(D) The name, address, and license number of the licensee who failed to pay.

(2) The department shall ~~commence a~~ issue a notice of warning or, in its discretion, issue a citation or take disciplinary action in accordance with Chapter 3 (commencing with Section 26030) against a licensee reported pursuant to subdivision (b) if the licensee fails to pay the outstanding invoice in full by 30 days after the department notified the licensee pursuant to paragraph (1).

(d) A licensee who has been reported pursuant to subdivision (b) shall not purchase goods or services from another licensee on credit until the licensee pays the outstanding invoice in full.

(e) This section does not apply to unpaid cannabis excise tax moneys required to be collected by a distributor.