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H 4534

National Convention of Gospel Choirs and Choruses

2025-2026 Regular Session Introduced by Terry Alexander and 122 co-sponsors

Creates a formal delinquency framework for Massachusetts cannabis licenses: 60-day credit limit, public posting of delinquents, and buy-before-delivery restrictions.

Introduced and adopted
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Bill Summary · H 4534

Summary of H.4534: An Act regularizing accounts receivable in the cannabis industry

Aimed at standardizing how licensees handle accounts receivable in Massachusetts’ cannabis sector, this bill creates a delinquency framework, imposes reporting and purchasing restrictions related to delinquent licensees, and provides for regulatory oversight and remedies.

Purpose and intent

  • Establish a formal system to address unpaid debts between cannabis licensees (including marijuana establishments and medical marijuana establishments) and to discourage continued dealings with delinquent licensees.
  • Improve financial transparency and protect licensees from credit risk and supply-chain disruptions.

Key provisions

  • Section 23(a) – Definitions

    • “Licensee” includes marijuana establishments licensed under Chapter 94G, medical marijuana establishments under Chapter 94I, or other licensees as determined by the Cannabis Control Commission (CCC).

  • Section 23(b) – Credit limit and delinquency process

    • Licensees may not extend or receive credit for marijuana products beyond 60 days, except as part of the usual course of business.
    • If unpaid after 60 days, the indebtedness is delinquent.
    • Within 3 days of delinquency, the creditor must notify the CCC and the delinquent licensee.
    • Within 5 days of notification, the CCC reviews the report and, if valid, posts the delinquent licensee’s name and address on a public delinquent list. Posting serves as notice to all licensees.

  • Section 23(c) – Relief for disaster-related damage

    • Licensees harmed by riot, fire, civil disturbance, or other disasters may apply to suspend the delinquency provisions temporarily.
    • CCC must hold a hearing within 21 days; pending hearing, the licensee may be not posted as delinquent if relief is warranted.
    • Suspension, if deemed in the public interest, shall be limited and contingent on terms set by the CCC.

  • Section 23(d) – Restrictions on dealing with delinquent licensees

    • Licensees on the delinquent list may not sell or deliver marijuana to others on credit; transactions must be paid in full before delivery via specified payment methods (certified funds, EFT, or other approved methods).

  • Section 23(e) – Removal of delinquencies

    • When a delinquent licensee fully discharges the debt, the creditor must notify the CCC within 24 hours; the CCC must remove the licensee from the list within 1 business day.

  • Section 23(f) – Ownership changes

    • Delinquent status must be resolved before any change of ownership or control can be approved, except for court-appointed receivers or certain voluntary assignments, which require CCC notice and creditor objections.

  • Section 23(g) – Penalties

    • Violations of the delinquency provisions carry a fine of up to $5,000.

  • Section 23(h) – Access to the delinquent list

    • The delinquent list is available for inspection by licensees or their authorized agents; the CCC may grant access to third-party license software providers.

  • Section 2 – Regulatory implementation

    • The CCC must promulgate or amend related regulations to align with the act within 1 year of enactment.

Who is affected

  • All cannabis licensees in Massachusetts (recreational and medical cannabis operators) deemed “licensees” under the act.
  • Creditors and suppliers within the cannabis market who extend or receive credit.
  • The Cannabis Control Commission, which administers enrollment, posting, removal, and enforcement.

procedural and timeline notes

  • Effective date not specified in the excerpt; regulation alignment required within 1 year after enactment.
  • Creditor notification and delinquency posting steps specify specific timelines (3-day notification to CCC and delinquent licensee; 5-day CCC review and posting).
  • Removal from the delinquent list requires discharge and a 24-hour notification by the creditor, with removal within 1 business day.

Legislative status

  • Introduced September 25, 2025.
  • Reported from the House Cannabis Policy Committee with a favorable recommendation.
  • Referred to the House Ways and Means Committee for consideration.

This bill would create a formal, transparent framework to regulate accounts receivable in the Massachusetts cannabis market, balancing creditor remedies with protections during emergencies and ensuring orderly licensee conduct.

Compiled from official sources — confirm details with the bill’s official record.

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