California Cannabis Industry Alliance Backs Assemblymember Phil Ting's Credit Law Bill

Kiva Sales & Service, CannaCraft, Calyx Peak, FundCanna, Glass House Brands GLASF GHBWF, HERBL, Lowell Farms LOWLF, Nabis, Sunderstorm, The Parent Company GRAMF and Petalfast with support from Cannabis Distribution Association announced the formal launch of Financial Stability for California Cannabis.

“Collections and outstanding debt related to unpaid invoices are key challenges facing cannabis operators of all types across the state, from cultivators to manufacturers, vertical brands to wholesalers, and everyone in between,” stated Vince Ning, co-founder and co-CEO of Nabis. “Advocacy for solutions is largely an issue siloed to individual operators or specific sectors of the supply chain, which is why we are proud to be an instrumental part of the mission of the FSCC to demonstrate a more holistic, collective representation of the severity of the debt crisis across all levels of the supply chain, and work toward a more financially stable cannabis market.”

On May 16th, the FSCC coalition officially started its campaign to increase accountability of the complex problems facing California’s cannabis industry with the filing of a public letter in support for Assembly Bill 766. Dubbed the “Cannabis Credit Protection Act,” the bill is being cosponsored by the Cannabis Distribution Association, California Cannabis Industry Association and the California Cannabis Manufacturers Association, along with support from a wide array of industry stakeholders, ranging from cultivators to testing labs.

The bill introduced by Ting seeks to establish regulatory guardrails around cannabis sales made on credit. Specifically, the bill looks to create a “credit law” with maximum terms by which licensees can sell, and ensures vendors pay their suppliers in a timely manner by giving the California Department of Cannabis Control oversight of the transactions. AB 766 will be heard in the Assembly Appropriations Committee on May 18th.

Photo by Esteban López on Unsplash

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