Massachusetts 2023-2024 Regular Session

Massachusetts House Bill H4409 Compare Versions

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1	1	HOUSE . . . . . . . . No. 4409
2	2	The Commonwealth of Massachusetts
3	3	________________________________________
4	4	HOUSE OF REPRESENTATIVES, February 20, 2024.
5	5	The committee on Cannabis Policy, to whom was referred the petition
6	6	(accompanied by bill, House, No. 117) of David M. Rogers and others
7	7	relative to medical marijuana businesses, reports recommending that the
8	8	accompanying bill (House, No. 4409) ought to pass.
9	9	For the committee,
10	10	DANIEL M. DONAHUE. 1 of 9
11	11	FILED ON: 2/5/2024
12	12	HOUSE . . . . . . . . . . . . . . . No. 4409
13	13	The Commonwealth of Massachusetts
14	14	_______________
15	15	In the One Hundred and Ninety-Third General Court
16	16	(2023-2024)
17	17	_______________
18	18	An Act relative to vertical integration of medical marijuana businesses.
19	19	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
20	20	of the same, as follows:
21	21	1 SECTION 1. Paragraph (4) of subsection (d) of Section 2 of Chapter 62 is hereby
22	22	2amended by striking out "medical marijuana treatment center” and inserting in place thereof the
23	23	3following words:-
24	24	4 medical marijuana establishment
25	25	5 SECTION 2. Paragraph (4) of Section 30 of Chapter 63 is hereby amended by striking
26	26	6out “medical marijuana treatment center” and inserting in place thereof the following words:-
27	27	7 medical marijuana establishment
28	28	8 SECTION 3. Section 4 of chapter 64N of the General Laws is hereby amended by
29	29	9inserting after the words “medical marijuana treatment center” the following:-
30	30	10 , medical marijuana establishment,
31	31	11 SECTION 4. Section 1 of chapter 94I of the General Laws is hereby amended by striking
32	32	12the definitions of “Card holder”, “Cultivation registration”, “Locked area”, “Medical marijuana 2 of 9
33	33	13treatment center”, “Medical use marijuana”, “Medical use marijuana license”, “Registration
34	34	14card”, and “Temporary Registration”, and inserting the following definitions:-
35	35	15 “Card holder”, a registered qualifying patient, personal caregiver or agent of a medical
36	36	16marijuana establishment who has been issued and possesses a valid registration card.
37	37	17 “Cultivation registration”, a registration issued to a fully integrated medical marijuana
38	38	18treatment center or medical marijuana cultivator to grow medical use marijuana under the terms
39	39	19of this chapter, or to a qualified patient or personal caregiver.
40	40	20 “Fully integrated medical marijuana treatment center” a medical marijuana-related
41	41	21business licensed by the commission with the ability to cultivate, manufacture, process, and sell
42	42	22medical use marijuana to qualifying patients, personal caregivers, and medical marijuana
43	43	23establishments.
44	44	24 “Locked area”, a closet, room, greenhouse or other indoor or outdoor area equipped with
45	45	25locks or other security devices, accessible only to registered and authorized medical marijuana
46	46	26establishment employees, registered qualifying patients or registered personal caregivers.
47	47	27 ''Medical marijuana establishment'', a medical marijuana cultivator, medical marijuana
48	48	28product manufacturer, fully integrated medical marijuana treatment center, medical marijuana
49	49	29retailer or any other type of medical marijuana-related business licensed by the commission.
50	50	30 ''Medical marijuana treatment center'', the premises approved under a fully integrated
51	51	31medical marijuana treatment center license
52	52	32 “Medical use marijuana”, marijuana or marijuana accessories sold by a medical
53	53	33marijuana establishment or a fully integrated medical marijuana treatment center to a card holder 3 of 9
54	54	34for medical use or marijuana or marijuana accessories possessed by a qualifying patient under a
55	55	35cultivation registration.
56	56	36 “Medical use marijuana license”, a license issued by the commission that permits the
57	57	37licensee to operate a medical marijuana establishment or a fully integrated medical marijuana
58	58	38treatment center.
59	59	39 “Pre-existing Medical Marijuana Treatment Center,” a fully integrated medical marijuana
60	60	40treatment center licensed prior to the availability of medical marijuana cultivator, medical
61	61	41marijuana product manufacturer, and medical marijuana retailer license types.
62	62	42 “Registration card”, a personal identification card issued by the commission to a
63	63	43registered qualifying patient, personal caregiver, laboratory agent or agent of a medical
64	64	44marijuana establishment or a fully integrated medical marijuana treatment center. The
65	65	45registration card facilitates verification of an individual registrant's status, including, but not
66	66	46limited to, verification that a registered healthcare professional has provided a written or
67	67	47electronic certification to the qualifying patient; that the patient has designated the individual as a
68	68	48personal caregiver; that a laboratory agent has been registered with the commission and is
69	69	49authorized to possess and test marijuana; or that an agent has been registered with the
70	70	50commission and is authorized to work at a medical marijuana establishment or a fully integrated
71	71	51medical marijuana treatment center. A temporary registration issued to a qualifying patient shall
72	72	52be deemed a registration card.
73	73	53 “Temporary Registration” an interim registration document for patients and their personal
74	74	54caregivers generated automatically upon the commission's receipt of a healthcare professional's
75	75	55electronic certification. The temporary registration document shall constitute a registration card 4 of 9
76	76	56for patients and their personal caregivers to access a medical marijuana establishment or a fully
77	77	57integrated medical marijuana treatment center. Temporary registration shall expire 14 days after
78	78	58the commission issues the registration card.
79	79	59 SECTION 5. Subsection (c) of Section 2 of chapter 94I of the General Laws, is hereby
80	80	60amended by striking “medical marijuana treatment center” and inserting in place thereof the
81	81	61following words:-
82	82	62 medical marijuana establishment
83	83	63 SECTION 6. Section 2 of chapter 94I of the General Laws, is hereby amended by adding
84	84	64the following subsection:-
85	85	65 (f) The commission shall establish and enforce license tiers to make available separate
86	86	66license classes, including but not limited to: medical marijuana product manufacturer, medical
87	87	67marijuana cultivator, fully integrated medical marijuana treatment center, and medical marijuana
88	88	68retailer.
89	89	69 The commission shall have the power to encourage full participation in the medical
90	90	70marijuana industry by people from communities disproportionately harmed by cannabis
91	91	71prohibition and enforcement.
92	92	72 The commission shall promulgate or amend regulations as necessary to be consistent with
93	93	73this act not later than 270 days from the effective date of this act.
94	94	74 SECTION 7. Section 7 of chapter 94I, is hereby amended by striking the words “medical
95	95	75marijuana treatment centers" and inserting in place thereof the following words:- 5 of 9
96	96	76 medical marijuana establishments, and for any classes of license under subsection (f) of
97	97	77section 2 of this chapter,
98	98	78 SECTION 8. Chapter 94G is hereby amended, in section 1, by striking out the definitions
99	99	79of “Host community”, “Host community agreement”, and “Independent testing laboratory”, and
100	100	80inserting the following definitions:-
101	101	81 “Host community” a municipality in which a marijuana establishment or a medical
102	102	82marijuana establishment is located or in which an applicant has proposed locating a marijuana
103	103	83establishment or a medical marijuana establishment.
104	104	84 “Host community agreement” an agreement between a marijuana establishment or a
105	105	85medical marijuana establishment and a municipality pursuant to subsection (d) of section 3.
106	106	86 “Independent testing laboratory”, a laboratory that is licensed by the commission and is:
107	107	87(i) accredited to the most current International Organization for Standardization 17025 by a
108	108	88third-party accrediting body that is a signatory to the International Laboratory Accreditation
109	109	89Cooperation mutual recognition arrangement or that is otherwise approved by the commission;
110	110	90(ii) independent financially from any medical marijuana establishment or any licensee or
111	111	91marijuana establishment for which it conducts a test; and (iii) qualified to test marijuana in
112	112	92compliance with regulations promulgated by the commission pursuant to this chapter.
113	113	93 SECTION 9. Subsection (d) of Section 3 of Chapter 94G is hereby amended by striking
114	114	94out, in all instances, the words “marijuana establishment or medical marijuana treatment center”
115	115	95and inserting in place thereof the following words:-
116	116	96 marijuana establishment or medical marijuana establishment 6 of 9
117	117	97 SECTION 10. Clause (2)(iii) of Subsection (a) of Section 3 of Chapter 94G is hereby
118	118	98amended by striking out the words “medical marijuana treatment center” and inserting in place
119	119	99thereof the following words:-
120	120	100 medical marijuana establishment
121	121	101 SECTION 11. Subsection (f) of Section 3 of Chapter 94G is hereby amended by striking
122	122	102out “medical marijuana treatment centers” and inserting in place thereof the following words:-
123	123	103 medical marijuana establishments
124	124	104 SECTION 12. Clause (xx) of subsection (a½) of section 4 of Chapter 94G is hereby
125	125	105amended by striking out the words “medical marijuana treatment center” and inserting in place
126	126	106thereof the following words:-
127	127	107 medical marijuana establishment
128	128	108 SECTION 13. Clause (4) of subsection (c) of section 4 of Chapter 94G is hereby
129	129	109amended by striking out, in both instances, the words “medical marijuana treatment center” and
130	130	110inserting in place thereof the following words:-
131	131	111 medical marijuana establishment
132	132	112 SECTION 14. Clause (5) of subsection (c) of section 4 of Chapter 94G is hereby
133	133	113amended by striking out the words “medical marijuana treatment centers” and inserting in place
134	134	114thereof the following words:-
135	135	115 medical marijuana establishments 7 of 9
136	136	116 SECTION 15. Clause (xxxv) of subsection (a½) of section 4 of chapter 94G is hereby
137	137	117amended by striking out “medical marijuana treatment centers” and inserting in place thereof the
138	138	118following words:-
139	139	119 medical marijuana establishments
140	140	120 SECTION 16. Subsection (c) of Section 14A of Chapter 94G is hereby amended by
141	141	121striking out “medical marijuana treatment centers” and insetting in place thereof the following
142	142	122words:-
143	143	123 medical marijuana establishments
144	144	124 SECTION 17. Chapter 94G is hereby amended by striking out Section 16 and inserting in
145	145	125place thereof the following section:-
146	146	126 Section 16. No licensee shall be granted more than 3 marijuana retailer licenses, 3 fully
147	147	127integrated medical marijuana treatment center licenses, 3 medical marijuana retailer licenses, 3
148	148	128medical marijuana product manufacturer licenses, 3 medical marijuana cultivator licenses, 3
149	149	129marijuana product manufacturer licenses, or 3 marijuana cultivator licenses; provided, however,
150	150	130that a licensee may hold 3 marijuana retailer licenses, 3 medical marijuana retailer licenses, 3
151	151	131medical marijuana product manufacturer licenses, 3 medical marijuana cultivator licenses, 3
152	152	132marijuana product manufacturer licenses and 3 marijuana cultivator licenses, provided, however,
153	153	133that each fully integrated medical marijuana treatment center license shall be equivalent to 1
154	154	134medical marijuana retail license, 1 medical marijuana cultivator license and 1 medical marijuana
155	155	135product manufacturer license, and provided furthermore that a licensee holding 3 fully integrated
156	156	136medical marijuana treatment center licenses shall be prohibited from obtaining any additional
157	157	137medical marijuana-related licenses. 8 of 9
158	158	138 SECTION 18. The cannabis control commission may allow pre-existing fully integrated
159	159	139medical marijuana treatment centers the ability to amend their license, subject to the license limit
160	160	140established in section 16 of chapter 94G, after the exclusivity period established in Section 1A of
161	161	14194I has ended.
162	162	142 SECTION 19. Section 1 of chapter 94G of the General Laws is hereby amended by
163	163	143striking the definition of “Social equity business” and inserting the following definition:-
164	164	144 ''Social equity business'', a marijuana establishment or medical marijuana establishment
165	165	145with not less than 51 per cent majority ownership of individuals who are eligible for the social
166	166	146equity program under section 22 or whose ownership qualifies it as an economic empowerment
167	167	147priority applicant as defined by the commission's regulations promulgated pursuant to section 4.
168	168	148 SECTION 20. Chapter 94I is hereby amended by inserting after section 1 the following
169	169	149section:-
170	170	150 Section 1A. All medical marijuana establishment licenses, except for pre-existing
171	171	151medical marijuana treatment centers, shall be limited on an exclusive basis to businesses
172	172	152controlled by and with majority ownership comprised of economic empowerment applicants or
173	173	153social equity businesses for a period of 36 months from the date the first such license types
174	174	154receive a notice to commence operations; provided, however, that the commission may vote to
175	175	155extend that period following an evidence-based determination that the goal of the exclusivity
176	176	156period to promote and encourage full participation in the regulated medical marijuana industry
177	177	157by people from communities that have previously been disproportionately harmed by marijuana
178	178	158prohibition and enforcement of the law has not been met.  9 of 9
179	179	159 If data collected by the commission demonstrates progress toward the goals and
180	180	160objectives of the exclusivity period as set forth in this section and that demand by registered
181	181	161qualifying patients is likely to exceed the supply that could be provided by businesses that meet
182	182	162the exclusivity requirements during the exclusivity period, the commission may vote during the
183	183	163exclusivity period to allow the following additional businesses to own medical marijuana
184	184	164establishments:
185	185	165 Craft marijuana cooperatives as defined in 935 CMR 500.002
186	186	166 Massachusetts Minority Business Enterprises (MBE), Women Business Enterprises
187	187	167(WBE), and Veteran Business Enterprises (VBE) with valid certification from the Supplier
188	188	168Diversity Office provided for in Section 61 of Chapter 7.