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| 2 | 2 | | SENATE DOCKET, NO. 2032 FILED ON: 1/17/2025 |
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| 3 | 3 | | SENATE . . . . . . . . . . . . . . No. 82 |
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| 4 | 4 | | The Commonwealth of Massachusetts |
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| 5 | 5 | | _________________ |
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| 6 | 6 | | PRESENTED BY: |
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| 7 | 7 | | Adam Gomez |
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| 8 | 8 | | _________________ |
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| 9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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| 10 | 10 | | Court assembled: |
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| 11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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| 12 | 12 | | An Act regularizing accounts receivable in the cannabis industry. |
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| 13 | 13 | | _______________ |
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| 14 | 14 | | PETITION OF: |
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| 15 | 15 | | NAME:DISTRICT/ADDRESS :Adam GomezHampden 1 of 3 |
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| 16 | 16 | | SENATE DOCKET, NO. 2032 FILED ON: 1/17/2025 |
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| 17 | 17 | | SENATE . . . . . . . . . . . . . . No. 82 |
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| 18 | 18 | | By Mr. Gomez, a petition (accompanied by bill, Senate, No. 82) of Adam Gomez for legislation |
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| 19 | 19 | | to regularize accounts receivable in the cannabis industry. Cannabis Policy. |
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| 20 | 20 | | The Commonwealth of Massachusetts |
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| 21 | 21 | | _______________ |
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| 22 | 22 | | In the One Hundred and Ninety-Fourth General Court |
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| 23 | 23 | | (2025-2026) |
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| 24 | 24 | | _______________ |
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| 25 | 25 | | An Act regularizing accounts receivable in the cannabis industry. |
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| 26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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| 27 | 27 | | of the same, as follows: |
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| 28 | 28 | | 1 SECTION 1. Chapter 94G of the General Laws, as so appearing in the 2022 Official |
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| 29 | 29 | | 2Edition, is hereby amended by inserting after section 24 the following section:- |
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| 30 | 30 | | 3 Section 24XXXX. It shall be unlawful for any licensee under this chapter to receive |
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| 31 | 31 | | 4credit, directly or indirectly, for marijuana or marijuana products sold or delivered to any |
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| 32 | 32 | | 5licensee engaged in the sale of marijuana or marijuana products for a period of more than sixty |
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| 33 | 33 | | 6days. Nothing in this chapter shall require any licensee to extend credit to any other licensee. The |
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| 34 | 34 | | 7credit period shall be calculated from the date of the delivery of the marijuana or marijuana |
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| 35 | 35 | | 8products to the purchasing licensee to the date when the purchasing licensee discharges in full |
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| 36 | 36 | | 9the indebtedness for which the credit was extended. If any licensee does not discharge in full any |
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| 37 | 37 | | 10such indebtedness within such sixty day period, the indebtedness shall be overdue and such |
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| 38 | 38 | | 11licensee shall be delinquent within the meaning of this section. Within three days after a licensee |
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| 39 | 39 | | 12becomes delinquent, the licensee who extended the credit shall mail a letter of notice by certified |
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| 40 | 40 | | 13mail to the commission and a copy thereof to the delinquent licensee. The notice shall contain 2 of 3 |
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| 41 | 41 | | 14the name of the delinquent licensee, the date of delivery of the marijuana and marijuana |
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| 42 | 42 | | 15products, the amount of the indebtedness remaining undischarged, and all available proof of the |
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| 43 | 43 | | 16indebtedness and delinquency. Within five days after receipt of such a letter of notice, the |
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| 44 | 44 | | 17commission shall post on its website the name and address only of the delinquent licensee in a |
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| 45 | 45 | | 18complete and current delinquent list containing the names and addresses of all delinquent |
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| 46 | 46 | | 19licensees. Such posting shall constitute notice to all licensees of the delinquency of such licensee. |
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| 47 | 47 | | 20 If a licensee is seriously damaged in his business by riot, insurrection, civil disturbance, |
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| 48 | 48 | | 21fire, explosion or by an act of God, so-called, the licensee may file an application with the |
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| 49 | 49 | | 22commission requesting that the provisions of the first paragraph of this section be suspended as |
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| 50 | 50 | | 23to him for a reasonable period. The commission shall set down the application for hearing within |
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| 51 | 51 | | 24twenty-one days and shall notify all licensees engaged in selling to said applicant of the hearing |
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| 52 | 52 | | 25and give all interested parties the right to be heard. Pending such hearing, the commission may, |
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| 53 | 53 | | 26after an investigation and determination that the facts as stated by the licensee in his application |
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| 54 | 54 | | 27would constitute reasonable grounds for relief, order that such licensee shall not be posted as |
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| 55 | 55 | | 28delinquent. If the commission finds it is in the public interest to do so, it may suspend the |
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| 56 | 56 | | 29application of said first paragraph with respect to the applicant for such period as it may consider |
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| 57 | 57 | | 30to be reasonable and in the public interest. Such action shall not deprive licensees of all legal |
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| 58 | 58 | | 31rights available to them for the collection of the indebtedness and shall be contingent on such |
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| 59 | 59 | | 32terms and conditions as the commission shall determine. |
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| 60 | 60 | | 33 No licensee under this chapter shall sell or deliver, directly or indirectly, marijuana or |
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| 61 | 61 | | 34marijuana products to a licensee whose name is posted on the delinquent list, except for payment |
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| 62 | 62 | | 35in cash on or before delivery, and no licensee who is posted on the delinquent list shall purchase 3 of 3 |
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| 63 | 63 | | 36or accept delivery of any marijuana or marijuana products except for payment in cash on or |
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| 64 | 64 | | 37before delivery. |
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| 65 | 65 | | 38 The commission shall not authorize a change of ownership or control of a licensee on the |
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| 66 | 66 | | 39delinquent list until all delinquencies are satisfied and the commission has removed the licensee |
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| 67 | 67 | | 40from the delinquent list under this section, except for approval of court-appointed receivers or |
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| 68 | 68 | | 41trustees under a voluntary assignment for the benefit of creditors, provided that prior approval of |
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| 69 | 69 | | 42such assignment is obtained from the commission after notice to all creditors has been given and |
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| 70 | 70 | | 43reasonable time allowed for objections by all creditors. |
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| 71 | 71 | | 44 Upon full discharge of the indebtedness for which a licensee was posted, the licensee |
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| 72 | 72 | | 45who filed the letter of notice of delinquency shall, within twenty-four hours thereafter, notify the |
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| 73 | 73 | | 46commission, by mailing a letter by certified mail addressed to the commission of the discharge of |
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| 74 | 74 | | 47the indebtedness. The commission shall immediately strike the name of the delinquent licensee |
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| 75 | 75 | | 48from the list. |
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| 76 | 76 | | 49 Notwithstanding and in lieu of any other penalty in any other provision of this chapter, |
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| 77 | 77 | | 50any person who violates any provision of this section shall be punished by a fine of not more |
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| 78 | 78 | | 51than five thousand dollars. |
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| 79 | 79 | | 52 The provisions of this section shall apply to all credit extended after April the first, two |
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| 80 | 80 | | 53thousand and twenty. |
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| 81 | 81 | | 54 The commission shall promulgate any necessary regulations to implement this section |
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| 82 | 82 | | 55within 90 days of the effective date. |
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