Bill
S 82
Caps cannabis industry inter-license credit at 60 days, requires delinquency notices and a public list, and enforces cash-only deals with listed licensees to curb bad debt.
Status snapshot
- Introduced: 1/13/2025
- Committee activity (as provided): read twice and referred to committee(s); referred to Cannabis Policy; reported and committed to Finance (5/27/2025). Hearings listed for 07/22/2025.
- Bill text jurisdiction: Massachusetts (amends Chapter 94G).
- Note: supplied metadata contains conflicting titles, jurisdictions, and sponsor lists (some items reference New York education matters and U.S./NY sponsors). This summary focuses on the actual bill text supplied, which amends Massachusetts General Laws Chapter 94G (cannabis).
Purpose
- To limit and standardize trade credit between licensed cannabis businesses in Massachusetts, require reporting of delinquent accounts to the Cannabis Control Commission, and authorize related enforcement and remedial actions.
Key provisions
- 60-day credit limit: A licensee may not extend credit (directly or indirectly) for marijuana or marijuana products to another licensee for more than 60 days. Calculation runs from delivery date to full payment.
- No requirement to extend credit: The law does not force any licensee to grant credit.
- Delinquency reporting and public list:
- If indebtedness remains unpaid beyond 60 days, the creditor must, within 3 days, send a certified-mail notice to the Commission and a copy to the delinquent licensee. The notice must include the delinquent licensee’s name, delivery date, unpaid amount, and proof.
- The Commission must post on its website (within 5 days of receipt) a publicly accessible “delinquent list” containing the names and addresses of delinquent licensees. Posting constitutes notice to other licensees.
- Cash-only restrictions: Licensees may not sell or deliver (directly or indirectly) marijuana products to a licensee on the delinquent list except for cash on or before delivery; listed licensees may only buy on a cash-on-delivery basis.
- Change-of-ownership limitation: The Commission shall not approve a change of ownership/control for a licensee on the delinquent list until delinquencies are satisfied and the licensee is removed, except for court-appointed receivers/trustees under certain conditions with prior Commission approval.
- Hardship relief process: A licensee harmed by riot, fire, insurrection, or act of God may apply to the Commission for suspension of these rules as to them. The Commission must hold a hearing within 21 days, allow interested parties to be heard, and may temporarily prevent posting or suspend the rules if warranted.
- Penalty: Violations of this section carry a fine up to $5,000 (in lieu of other penalties under the chapter).
- Applicability: Applies to credit extended after April 1, 2020 (per text).
- Regulations: The Commission must promulgate implementing regulations within 90 days of the bill’s effective date.
Who is affected
- Directly: All Massachusetts licensees regulated under Chapter 94G (e.g., cultivators, product manufacturers, distributors/wholesalers, retailers) engaged in inter-licensee sales/credit.
- Indirectly: Lenders, insurers, creditors, and business partners involved in cannabis business cash flow or credit arrangements; the Cannabis Control Commission (administration, website posting, hearings).
- Potential reputational impact on listed licensees due to public posting.
Potential impacts and considerations
- Cash-flow and working capital: Shorter, mandatory credit terms (60 days) and public delinquency notices will pressure purchasers and could increase demand for cash, short-term financing, or factoring services.
- Credit/contract effects: Existing longer-term vendor credit arrangements may need renegotiation; parties should review historic receivables (note applicability date).
- Enforcement and administrative burden: The Commission gains responsibilities for rapid processing, website postings, and hearings; regulated entities face compliance burdens (timely notices, record-keeping).
- Market behavior: Sellers may be more conservative about extending credit, limiting trade flexibility but reducing counterparty credit risk.
- Legal/commercial disputes: The public list and cash-only rule may accelerate collection actions and could prompt secured transactions or changes to commercial terms.
Procedural/timeline notes (from provided actions)
- Introduced 1/13/2025; referred to relevant committees. Reported and committed to Finance on 5/27/2025. Hearings scheduled for 7/22/2025. Commission required to adopt regulations within 90 days after the bill’s effective date if enacted.
Caveat
- The supplied packet contains mixed and inconsistent metadata (references to New York education and multiple sponsors across jurisdictions). Readers should confirm final bill text and jurisdiction from official legislative sources before relying on this summary for compliance or legal action.
Compiled from official sources — confirm details with the bill’s official record.
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