California's cannabis industry, which includes state-licensed growers, manufacturers, testing companies, distributors, retailers, and event organizers, has a deadbeat problem. In a business that generated $5.3 billion in sales last year, bills for marijuana products and services frequently go unpaid, leaving creditors in the lurch and compounding the financial difficulties created by federal prohibition.
According to an estimate cited by Assembly Member Phil Ting (D–San Francisco), "the unpaid debt bubble is over $600 million across California's supply chain." But Ting's solution—a bill that would inject state regulators into debt disputes between marijuana businesses—could create new problems by interfering with freedom of contract and penalizing licensees without due process.
