26161.1.
(a) (1) A licensee shall pay for goods and services sold or transferred by another licensee no later than 15 days following the final date set forth in the invoice for the cannabis or cannabis products.(2) The 15-day period described in paragraph (1) shall commence with the day immediately following the due date of the invoice and shall include all successive days, including Sundays and holidays. When the 15th day from the due date of the invoice falls on Saturday, Sunday, or a legal holiday, the next business day shall be deemed to be the expiration day.
(b) (1) A licensee who sold or transferred goods with a total value of at least five thousand dollars ($5,000) to another licensee and who has not received payment in full 15 days after the final date set forth in the invoice or invoices as required by subdivision (a) shall report the unpaid invoice to the department.
(2) A report made pursuant to paragraph (1) shall include all of the following:
(A) The sale or transfer date of the cannabis or cannabis products.
(B) The invoice due date.
(C) The invoice amount.
(D) The name, address, and license number of the licensee who failed to pay.
(c) (1) The department shall notify a licensee who has been reported pursuant to subdivision (b).
(2) The department shall issue a notice of warning or, in its discretion, issue a citation or commence a disciplinary action in accordance with Chapter 3 (commencing with Section 26030) against a licensee reported pursuant to subdivision (b) if the licensee fails to pay the outstanding invoice in full by 30 days after the department notified the licensee pursuant to paragraph (1).
(3) (A) The department shall commence a disciplinary action in accordance with Chapter 3 (commencing with Section 26030) against a licensee reported pursuant to subdivision (b) if the licensee fails to pay multiple outstanding invoices in full by 30 days after the department notified the licensee pursuant to paragraph (1).
(B) When considering imposition of a penalty in an action commenced pursuant to subparagraph (A), the department shall take into account the frequency and gravity of the licensee’s failure to pay the outstanding invoices in full by 30 days after the department notified the licensee pursuant to paragraph (1).
(d) A licensee who has been reported pursuant to subdivision (b) shall not purchase goods or services from another licensee on credit until the licensee pays the outstanding invoice in full.
(e) For purposes of this section, the final date set forth in an invoice for payment of the invoice shall not be later than 30 calendar days from the date the goods or services are sold or transferred.
(f) This section does not apply to unpaid cannabis excise tax moneys required to be collected by a distributor.
(g) This section does not apply to an invoice for a sale or transfer made before January 1, 2024.