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	<ns0:Description>
		<ns0:Id>20250SB__047998AMD</ns0:Id>
		<ns0:VersionNum>98</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-19</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-03-24</ns0:ActionDate>
			</ns0:Action>
		</ns0:History>
		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>SB</ns0:MeasureType>
			<ns0:MeasureNum>479</ns0:MeasureNum>
			<ns0:MeasureState>AMD</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Arreguín</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Arreguín</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title>An act to add Section 26031.02 to the Business and Professions Code, relating to cannabis.</ns0:Title>
		<ns0:RelatingClause>cannabis</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Cannabis: licensing: payment of goods and services.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>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), establishes the Department of Cannabis Control (department) within the Business, Consumer Services, and Housing Agency to administer the act.</html:p>
			<html:p>MAUCRSA, among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA requires licensees to keep accurate records of commercial cannabis
			 activity, including recording the sale or transport of cannabis or cannabis products from one licensee to another licensee on a sales invoice or receipt. MAUCRSA authorizes the department to suspend, revoke, place on probation with terms and conditions, or otherwise discipline licenses issued by the department and fine a licensee, as specified. </html:p>
			<html:p>This bill, the Cannabis Payment Protection Act, would require the department to suspend the license of a licensee subject to a court order or civil judgment for failure to pay for goods and services sold or transferred by another licensee, if specified conditions are met, until the licensee complies with the terms of the court order or civil judgment. The bill would authorize the department to charge a fee to cover the reasonable administrative costs of implementing these provisions, as specified.</html:p>
			<html:p>
				AUMA authorizes the Legislature to amend its provisions with a
			 
				<ns0:Fraction>
					<ns0:Numerator>2</ns0:Numerator>
					<ns0:Denominator>3</ns0:Denominator>
				</ns0:Fraction>
				 vote of both houses to further its purposes and intent.
			</html:p>
			<html:p>This bill would state that the bill furthers the purposes and intent of AUMA.</html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>NO</ns0:LocalProgram>
		</ns0:DigestKey>
		<ns0:MeasureIndicators>
			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
			<ns0:ImmediateEffectFlags>
				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
				<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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		</ns0:MeasureIndicators>
	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_8955818C-81E3-42A5-95AB-9F44FD2E56C3">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>This act shall be known, and may be cited, as the Cannabis Payment Protection Act.</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_886E13A9-55F0-422F-B45A-7D488F7ED4B5">
			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 26031.02 is added to the 
				<ns0:DocName>Business and Professions Code</ns0:DocName>
				, to read:
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			<ns0:Fragment>
				<ns0:LawSection id="id_95887D5C-FF66-4529-9132-A8587363160D">
					<ns0:Num>26031.02.</ns0:Num>
					<ns0:LawSectionVersion id="id_EF6B944C-D3AF-447B-BDEF-D058BB4D3B93">
						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								Notwithstanding Section 26031, the department shall suspend a license issued by the department if both of the following are met:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								The licensee is subject to a court order or civil judgment from any federal or state court of competent jurisdiction for failure to pay for goods and services sold or transferred by another licensee.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The complainant licensee in the court order or civil judgment under paragraph (1) submits a copy of the court order or civil judgment to the department, no sooner than the 30th calendar day after the court order or civil judgment has been issued, in a form and manner prescribed by the department. 
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								The department shall reinstate a license suspended pursuant to subdivision (a) when the suspended licensee complies with the terms of the court order or civil judgment. The suspended licensee shall notify the department of compliance and submit all evidence of compliance as requested by the department.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								The department may charge the complainant licensee a fee to cover the reasonable administrative costs of processing the license suspension pursuant to subdivision (a).
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The department may charge the suspended licensee a fee to cover the reasonable administrative costs of reinstating their license pursuant to subdivision (b).
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								This section shall only apply to a person holding a license under this division, and shall only
						apply to goods and services sold or transferred by a person holding a license under this division.
							</html:p>
						</ns0:Content>
					</ns0:LawSectionVersion>
				</ns0:LawSection>
			</ns0:Fragment>
		</ns0:BillSection>
		<ns0:BillSection id="id_0D271C63-3F4C-4553-BBD0-0D873483F6C1">
			<ns0:Num>SEC. 3.</ns0:Num>
			<ns0:Content>
				<html:p>The Legislature finds and declares that this act furthers the purposes and intent of the Control, Regulate and Tax Adult Use of Marijuana Act.</html:p>
			</ns0:Content>
		</ns0:BillSection>
	</ns0:Bill>
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