Current through Register Vol. 46, No. 39, September 25, 2024
(a)
Licensees engaged in distribution shall:
(1)
execute written contracts between parties for all transactions related to the
purchase of cannabis products, regardless of license type;
(2) sell cannabis and cannabis products, or
cannabis merchandise or cannabis paraphernalia, at prices indicative of their
true value when sold without any other products, terms, or services;
(3) not discriminate, directly or indirectly,
in price, payment terms, or discounts for time of payment or in discounts on
quantity of merchandise sold, except as permitted by this Part;
(4) be permitted to offer volume-based
discounts on cannabis and cannabis products, provided that such discounts are
offered to all licensed purchasers; and
(5) not require or offer exclusivity
provisions in goods or services contracts, including, but not limited to,
prohibiting a licensee from having their own e-commerce application or platform
and
(6) not refuse to sell any
brand of cannabis or cannabis product to any person authorized to purchase such
brand of cannabis or cannabis product from such licensee at market value or
based on price disclosures authorized by the Board if the purchaser pays cash
therefor, and except as herein provided.
(b) Distributors, cooperatives,
microbusinesses, ROND or ROD, shall sell cannabis products to any person
authorized for retail adult-use cannabis sales willing to pay cash for such
cannabis products, provided, however:
(1)
checks shall not be from third parties;
(2) checks drawn on the account of a licensee
authorized for retail sale shall not be postdated; and
(3) distributors, microbusinesses,
cooperatives, ROD, or ROND shall not be required to accept checks drawn on a
retail dispensary's account.
(c) Distributor, microbusiness, cooperatives,
ROD, or ROND licensees may, but are not required to, accept payment on credit
from licensees authorized for retail sales, provided:
(1) payment terms comply with this Part;
and
(2) retail dispensaries and
on-site consumption licenses purchasing cannabis products on credit pay their
balance due within thirty (30) days, unless otherwise approved by the
Board.
(d) Distributors,
microbusinesses, cooperatives, RODs, or RONDs shall:
(1) report retailers who are delinquent in
payment for cannabis products to the Office; and
(2) not sell cannabis products on credit to
any retailer reported and found by the Office to have a delinquent payment due,
as provided in this section.
(e) Delinquent List.
(1) Distributor, microbusiness, cooperative,
ROD, or ROND licensees shall, on or before the respective notification dates,
as determined by the Office, for each retail dispensary license, give written
notice of default, by first class mail or by such other method as contemplated
or permitted by or under the applicable agreement, to all such licensees
therein who have failed to make payment to them on or before their final
payment date for cannabis products sold or delivered to them during a credit
period ending on their final payment date. No retail licensee shall be placed
in default if the distributors, microbusinesses, cooperatives, ROD, or ROND has
issued an account credit to the licensee, which after application to all debts
owed by the retail dispensary licensee, is equal to or greater than the amount
of the default. Any such retail dispensary licensee receiving a notice of
default shall not thereafter purchase cannabis products, except for by paying
with cash, until such time as the Office determines that their name shall not
be published on the delinquent list as provided in subdivision (d) of this
section, or until such time as the Office permits sales or deliveries to them
as provided in subdivision (g) of this section. Each such distributor,
microbusiness, cooperative, ROD, or ROND is hereby required to file with the
Office, on or before each notification date, copies of the notices sent by them
to all delinquent retail dispensary licensees as required in this subdivision,
and in addition, if the Office shall so require, a written list setting forth
the names and addresses of all such delinquent licensees. The Office, in its
discretion, may extend for a period not exceeding three (3) days, the date for
giving written notice of default to delinquent retail dispensary licensees and
extend for three (3) days, the date for filing with the Office the copies of
notices sent to such licensees and/or the written list of delinquent retail
dispensary licensees as required in this subdivision. The Office, in its
discretion, may limit the documents to be filed to those relating to licensees
who are to be added or deleted from the default list and direct that
distributors, microbusinesses, cooperatives, ROD, or ROND maintain copies of
all other documents required under this section for future inspection by the
Office.
(2) The Office shall, as
soon as practicable after each notification date, compile and publish and
furnish each distributor, microbusiness, cooperative, ROD, and ROND licensed
under this Title, a list, to be designated on the delinquent list containing
the names and addresses of all retail dispensary licensees who have been
reported by distributors, microbusinesses, cooperatives, ROD, or ROND pursuant
to the provisions of this section as having failed to make payment as required
by this section for cannabis products sold or delivered to them, and no such
distributors, microbusinesses, cooperatives, ROD, or ROND, on or after the
fifth (5th) day after the receipt of such delinquent
list, shall knowingly, willfully, or intentionally sell or deliver any cannabis
to any such licensee whose name appears on such list, except for cash, until
such time as the name of such licensee is removed therefrom, except as
hereinafter permitted.
(3) The
receipt of a delinquent list by a distributor, microbusiness, cooperative, ROD,
or ROND shall constitute knowledge of the names of the retail dispensaries
licensees who have failed to make payment for cannabis as required by this
section.
(4) The Office may publish
the delinquent list on its website; provided, however, that full access shall
be restricted to those distributors, microbusinesses, cooperatives, ROD, or
ROND licensed under this Title and access to their specific status shall be
provided to retail dispensaries licensed under this Title. Such publication
shall be considered receipt thereof by all distributors, microbusinesses,
cooperatives, ROD, or ROND.
(f) In the event that any dispute shall exist
between any distributor, microbusiness, cooperative, ROD, or ROND and a retail
dispensary licensee to whom they shall have sold cannabis products, either as
to the fact of payment or as to the amount due for such cannabis products or as
to the quantity of the cannabis products sold or delivered, which dispute
cannot be resolved between them, the Office is hereby authorized to receive
statements from each of the parties to such dispute as to the facts and
circumstances thereof and to determine whether or not a retail dispensary
licensee is delinquent and should be included on the appropriate delinquent
list. The licensee may appeal this determination and request a hearing pursuant
to Part 133 of this Title.
(g) The
Office, in the case of a retail dispensary licensee who has made payment for
cannabis products, or on good cause shown, may permit sales or deliveries to
any retail dispensary licensee who has received notice of default, or who is
named on any delinquent list, on terms other than for cash, but within the
limitations of this section, prior to the publication of the next appropriate
delinquent list.
(h) The Board may
impose any penalty or condition otherwise authorized by this section in the
case of any such retail dispensary licensee who fails or refuses to liquidate
and pay unpaid balance becoming due under this subdivision.
(i) Nothing herein contained shall be
construed to require any cultivator, processor, distributor, microbusiness,
cooperative, ROD, or ROND to extend credit to any retail dispensary licensee
nor to restrain any distributor, microbusiness, cooperative, ROD, or ROND from
enforcing by legal action or otherwise, payment of any sum or sums of money due
or alleged to be due to any such distributor, microbusiness, cooperative, ROD,
or ROND for cannabis sold or delivered to any such retail dispensary
licensee.
(j) The Office is hereby
authorized to do such acts, prescribe such forms, and make such orders as it
may deem necessary or proper to fully effectuate the provisions of this
section, including, but not limited to, the changing of any date on which any
act or function pursuant to this section is to be performed by any licensee or
by the Office.
(k) The Board may
revoke, cancel, or suspend any license issued pursuant to this Title for:
(1) actions in violation of any of the
provisions of this section;
(2)
making a false statement in any disclosures filed pursuant to this section;
or
(3) failing or refusing in any
manner to comply with any of the provisions of this
section.
