Amendment ID: S2722-36
Amendment 36
Accounts Receivable
Messrs. Cyr and Payano move that the proposed new text be amended by striking out section 31 and inserting in place thereof the following section:-
“SECTION 31. Said chapter 94G is hereby further amended by adding the following section:-
Section 23. (a) For the purposes of this section, the word “licensee” shall mean any marijuana establishment licensed pursuant to this chapter, any medical marijuana establishment licensed pursuant to chapter 94I or any other applicable licensee determined by the commission.
(b) It shall be unlawful for any licensee to receive or extend credit, directly or indirectly, for marijuana or marijuana products sold or delivered to any licensee except in the usual course of business and for a period of not more than 60 days. Nothing in this chapter shall require any licensee to extend credit to any other licensee. If any licensee does not discharge in full any such indebtedness within such 60-day period or a mutually agreed upon term less than 60 days, the indebtedness shall be overdue and such licensee shall be delinquent with respect to such indebtedness. Within 3 days after a licensee becomes delinquent, the licensee that extended the credit may notify the commission or a third party service provider approved by the commission and the delinquent licensee in a manner to be determined by the commission or a third party service provider approved by the commission; provided, however, that no delinquency may be reported under this subsection unless the total undisputed indebtedness owed to the licensee that extended the credit exceeds $20,000. The notice shall contain the name of the delinquent licensee, the date of delivery of the marijuana or marijuana products and the amount of the indebtedness remaining undischarged. Within 5 days after receipt of such notice, the commission or a third party service provider approved by the commission shall review the delinquency notice and, upon finding it valid and providing the delinquent licensee 7 days to cure or dispute the posting, include the name and address only of the delinquent licensee in a delinquent list containing the names and addresses of all delinquent licensees. Such inclusion shall constitute notice to all licensees of the delinquency of such licensee.
(c) If a licensee has a good faith dispute or has agreed to a payment plan with the licensee that extended the credit, the licensee may file an application with the commission, or third party service provider approved by the commission, requesting that the application of subsection (b) be suspended as to the licensee for a reasonable period. Upon receipt of an application under this subsection, the commission or third party service provider approved by the commission shall set down the application for review within 7 days and shall notify all licensees engaged in selling to the applicant of the review and investigation request. Pending such review, the commission or third party approved by the commission may, after an investigation and determination that the facts as stated by the licensee in its application would constitute reasonable grounds for relief, order that such licensee shall not be posted as delinquent. If the commission or third party approved by the commission or third party service provider approved by the commission finds it is in the public interest to do so, it may suspend the application of subsection (b) with respect to the applicant for such period as it may consider to be reasonable and in the public interest. Such action shall not deprive creditors of all legal rights available to them for the collection of the indebtedness and shall be contingent on such terms and conditions as the commission or third party service provider approved by the commission shall determine.
(d) If a licensee is seriously damaged in its business by riot, insurrection, civil disturbance, fire, explosion or by an act of God, so-called, the licensee may file an application with the commission or a third party service provider approved by the commission requesting that the application of subsection (b) be suspended as to the licensee for a reasonable period. Upon receipt of an application under this subsection, the commission or a third party service provider approved by the commission shall set down the application for hearing within 21 days and shall notify all licensees engaged in selling to the applicant of the hearing and give all interested parties the right to be heard. Pending such hearing, the commission or a third party service provider approved by the commission may, after an investigation and determination that the facts as stated by the licensee in its application would constitute reasonable grounds for relief, order that such licensee shall not be posted as delinquent. If the commission or a third party service provider approved by the commission finds it is in the public interest to do so, it may suspend the application of subsection (b) with respect to the applicant for such period as it may consider to be reasonable and in the public interest. Such action shall not deprive creditors of all legal rights available to them for the collection of the indebtedness and shall be contingent on such terms and conditions as the commission or a third party service provider approved by the commission shall determine.
(e) No licensee under this chapter shall sell or deliver, directly or indirectly, marijuana or marijuana products to a licensee whose name is posted on the delinquent list, except for payment in cash on or before delivery by certified funds, electronic funds transfer or other payment method as may be approved by the commission, and no licensee who is posted on the delinquent list shall purchase or accept delivery of any marijuana or marijuana products except for payment in cash on or before delivery by certified funds, electronic funds transfer or other payment method as may be approved by the commission.
(f) Upon full discharge of the indebtedness for which a licensee was posted to the delinquent list, the licensee who filed the notice of delinquency shall, within 24 hours thereafter, notify the commission or a third party service provider approved by the commission of the discharge of the indebtedness. The commission or a third party service provider approved by the commission shall, within 3 business days after the receipt of such notice, remove the name of the delinquent licensee from the list. The commission or a third party service provider approved by the commission shall, by regulations, prescribe how licensees, other than the licensee who filed the notice pursuant to this section and the licensee subject to such notice, shall be notified of the filing of the name of a licensee on the delinquency list and the removal of the name of a delinquent from such list.
(g) The commission shall not authorize a change of ownership or control of a licensee on the delinquent list until all delinquencies are satisfied and the commission or a third party service provider approved by the commission has removed the licensee from the delinquent list under this section, except for approval of court-appointed receivers or trustees under a voluntary assignment for the benefit of creditors; provided, however, that prior approval of such assignment shall be obtained from the commission after notice to all creditors has been given and reasonable time allowed for objections by all creditors.
(h) Notwithstanding and in lieu of any other penalty under this chapter, any person who violates this section shall be punished by a fine of not more than $5,000 per violation. Further, any person who is found to have violated this section by knowingly reporting incorrect delinquencies to the posting list may be subject to a separate fine or punishment to be determined by the commission. Each incorrect posting of a licensee on the delinquent list shall constitute a separate violation.
(i) The posting list shall be confidential supervisory information, shall not be a public record under clause Twenty-sixth of section 7 of chapter 4 or section 10 of chapter 66, and may be available for inspection by a licensee or a duly authorized agent of a licensee only; provided, however, that the commission may allow third party access to the list by its licensing software provider for purposes of administering this section.
(j) This section shall apply to credit extended for marijuana or marijuana products evidenced by invoices first issued on or after the later of (1) the date that is 365 days after the effective date of this act and (2) the effective date of regulations of the commission implementing this section. The commission shall promulgate such regulations, in accordance with chapter 30A, not later than 180 days after the effective date of this act.”