The Cannabis Control Commission Wants Your Feedback on Accounts Receivable Issues

Public Comment Period Opens on June 21

The Cannabis Control Commission (Commission) is aware that some licensees are experiencing issues with delinquent or extended Accounts Receivable. Commissioners discussed this topic at the May 23 public meeting and voted unanimously to open a public comment period to obtain feedback.

Account Receivable refers to the balance of money due to a firm for goods or services delivered or used but not yet paid for by customers. An excessive balance of outstanding Accounts Receivable can create financial challenges for all participants within the supply chain.

While this matter is not unique to Massachusetts, delinquent payments may be a threat to the licensed cannabis industry according to many businesses and stakeholders across the country. Preliminary findings from a comprehensive study conducted by Whitney Economics shed light on the $3.8 billion dollar issue plaguing cannabis operators and ancillary businesses nationwide.

In response, the Commission is examining measures considered by other jurisdictions including California, New York, Colorado, New Jersey, Michigan, and others. Commissioners have also met with leadership from the Massachusetts Alcohol Beverage Control Commission (ABCC) to learn about actions they have taken to address the issue within the alcoholic beverages industry.

Before moving forward with any action, the Commission would like to hear from stakeholders in response to the following questions:

1. How does the issue of outstanding accounts receivable impact your operations?
2. Please consider quantifying the outstanding accounts receivable currently owed to your business (e.g., the average, or total, amount of money that is still unpaid after the expiration of any agreed upon payment due dates, once all terms and conditions between you and your delinquent clients have been met).
3. What proactive practices have you undertaken to minimize your financial risk to unpaid invoices?
4. Should the Commission consider amending its regulations to establish a means for industry to identify delinquent clients?  What would be your proposed regulatory solution?
5. What additional steps should the Commission consider to assist licensees with this issue?

Responses may be submitted through a survey linked here or emailed to the Commission via Commission@CCCMass.com with the subject heading “Accounts Receivable” as soon as possible, and no later than July 11, 2024.

Please be advised that the Commission may publish submissions it receives or produce them in response to a request made under the Massachusetts Public Records Law, M.G.L. c. 66, § 10, or any other compulsory legal processes.  Please note that requests for public comment or proposed regulatory amendments does not imply or require that the Commission will ultimately consider any regulatory or policy changes.