1 of 1 HOUSE DOCKET, NO. 3051 FILED ON: 1/16/2025 HOUSE . . . . . . . . . . . . . . . No. 143 The Commonwealth of Massachusetts _________________ PRESENTED BY: James C. Arena-DeRosa _________________ To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General Court assembled: The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: An Act regulating the sale of hemp products to protect public health and support farmers. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:James C. Arena-DeRosa8th Middlesex1/16/2025 1 of 10 HOUSE DOCKET, NO. 3051 FILED ON: 1/16/2025 HOUSE . . . . . . . . . . . . . . . No. 143 By Representative Arena-DeRosa of Holliston, a petition (accompanied by bill, House, No. 143) of James C. Arena-DeRosa for legislation to further regulate hemp products. Cannabis Policy. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act regulating the sale of hemp products to protect public health and support farmers. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 64N of the General Laws, as appearing in the 2022 Official 2Edition, is hereby amended by striking out section 1 and inserting in place thereof the following 3section:- 4 Section 1. As used in this chapter, the following words shall, unless the context clearly 5requires otherwise, have the following meanings: 6 (a) ''Commissioner'', the commissioner of revenue. 7 (b) “Hemp products”, as defined in section 1 of chapter 94G. 8 (c) ''Marijuana,'' ''Marijuana establishment,'' ''Marijuana product'' and ''Marijuana 9retailer'', as defined in section 1 of chapter 94G. 10 (d) ''Social equity business'', a marijuana retailer that is a social equity business, as 11defined in section 1 of chapter 94G. 2 of 10 12 SECTION 2. Chapter 64N of the General Laws, as so appearing, is hereby further 13amended by inserting, after section 2, the following section:- 14 Section 2A. An excise tax is hereby imposed upon the sale of hemp products by a retailer 15to anyone other than a marijuana establishment at a rate of 10.75 per cent of the total sales price 16received by the retailer as a consideration for the sale of hemp products. The excise tax shall be 17levied in addition to state tax imposed upon the sale of property or services as provided in 18section 2 of chapter 64H and shall be paid by a retailer to the commissioner at the time provided 19for filing the return required by section 16 of chapter 62C. 20 SECTION 3. Section 4 of chapter 64N, as so appearing, is hereby amended by striking 21out the phrase “marijuana or marijuana products”, and inserting in place thereof, the following 22phrase:- “marijuana, marijuana products or hemp products”. 23 SECTION 4. Section 5 of chapter 64N, as so appearing, is hereby amended by inserting, 24after the second instance of the phrase “revenue collected pursuant to”, the following phrase:- 25“section 2A of this chapter or”. 26 SECTION 5. Said section 5 of said chapter 64N, as so appearing, is hereby further 27amended by inserting, after the second paragraph, the following paragraph:- 28 In the first five fiscal years that begin after this language becomes effective, the 29commissioner shall deposit revenue collected pursuant to section 2A of this chapter in the Hemp 30Product Education Fund established in section 14A of chapter 94G. In each fiscal year thereafter, 31the commissioner shall deposit revenue collected pursuant to section 2A of this chapter in the 32General Fund. 3 of 10 33 SECTION 6. Chapter 94 of the General Laws, as appearing in the 2022 Official Edition, 34is hereby amended by inserting, after section 329, the following 6 sections:- 35 Section 330. 36 As used in this section and sections 331 to 335, inclusive, the following words and 37phrases shall have the following meanings:- 38 ''Governmental entity'', an official body of the commonwealth, or of a county, city or 39town within the commonwealth. 40 “Non-ingestible hemp product”, a final product derived from hemp, including hemp 41harvested, processed, manufactured or sold pursuant to section 118 of chapter 128, that is not 42intended to be ingested, inhaled or otherwise introduced into the human body, other than through 43topical administration or application, and that does not cause an altered mental state or other 44intoxicating effect when ingested, inhaled or otherwise introduced into the human body, even if 45this is not among its stated purposes. 46 ''Person'', a natural person, corporation, association, partnership or other legal entity. 47 Section 331. (a) No non-ingestible hemp product shall be sold or otherwise transferred: 48(i) That is advertised as consumable by ingestion, inhalation or otherwise introducible into the 49human body other than through topical administration or application; 50 (ii) That is advertised as causing or having the ability to cause an altered mental state or 51other intoxicating effect when ingested, inhaled or otherwise introduced into the human body; 52 (iii) In packaging that includes any markings or images indicating that it may cause an 53altered mental state or other intoxicating effect; 4 of 10 54 (iv) In packaging that closely resembles the packaging of candy or other food products 55marketed towards children; or 56 (v) That is adulterated, except that hemp included in a non-ingestible hemp product under 57this chapter shall not be considered an adulterant. 58 (b) Excepting prescription drugs as defined in section 1 of Chapter 94C, marijuana and 59hemp products sold pursuant to chapter 94G, products sold in marijuana establishments, and 60non-ingestible hemp products, a product containing any cannabinoid may not be sold or 61otherwise transferred. 62 Section 332. If a local board of health has reason to suspect a product is in violation of 63sections 330 to 335, inclusive, that board shall conduct examinations and investigations and may 64take samples of products for analysis to determine compliance with the provisions of sections 65330 to 335, inclusive. If that board determines that a violation of the provisions of sections 330 66to 335, inclusive, has occurred, they shall take enforcement action. If requested by a local board 67of health, the department of public health may furnish advice and assistance to the board and 68may coordinate further for the purposes of investigating suspected violations. 69 Section 333. (a) For a first violation of the provisions of sections 330 to 335, inclusive, 70enforcement actions shall consist of removal from the premises all products that the department 71determines violate sections 330 to 335, inclusive, as well as a written warning to the violating 72person that repeated violations may result in revocation of operating permits and licenses. This 73warning may include a requirement for the violating person to complete an informational course 74that explains the laws and regulations surrounding the sale of hemp products and products that 75contain cannabinoids. If an informational course is required as an enforcement action for a first 5 of 10 76violation, it shall be administered by the local board of health that made the initial determination 77of a violation. Failure of the violating person to complete a required course within 6 months of 78the reception of this warning may be considered a separate violation of the provisions of sections 79330 to 335, inclusive. 80 (b) For repeated violations of the provisions of sections 330 to 335, inclusive, either as a 81result of repeated investigations by a local board of health or the failure to complete an 82informational course administered following a first violation, enforcement actions shall include, 83but not be limited to, removal from the premises of all products that the department determines 84violate sections 330 to 335, inclusive, and the destruction of these products. The local board of 85health that made the determination of these repeated violations may, within 30 days of a 86determination that a product is in violation of section 330 to 335, inclusive, send written notice 87of this violation to all governmental entities that have issued a permit or license to any violating 88person; provided that this may include governmental entities that issue a permit or license to a 89person after a determination is made but before written notices are sent. Repeated violations of 90sections 330 to 335, inclusive, may be considered by a governmental entity as grounds for 91suspension or revocation of any permit or license issued by this entity that relates to the 92production or sale of food, alcohol, tobacco, cosmetics or drugs. 93 Section 334. Local boards of health may establish civil administrative fines for repeated 94violations of sections 330 to 335, inclusive. A person aggrieved by the assessment of a fine under 95this section may appeal to the full board from which it was assessed not later than 21 days after 96the receipt of the notice of the fine. Appeals shall be given a speedy hearing before the local 97board of health from which it was assessed. 6 of 10 98 Section 335. (a) Local boards of health may make rules and regulations to carry out the 99provisions of sections 330 to 335, inclusive; provided, that these rules or regulations are not 100inconsistent with rules or regulations of the department of public health, the cannabis control 101commission or the department of agricultural resources. 102 (b) Whenever changes are made regarding a local board of health’s enforcement of the 103provisions of said sections, local boards of health shall send written communication of these 104changes to all persons within their jurisdiction that have active permits or licenses relating to 105food, alcohol, tobacco, cosmetics or drugs in a timely manner. 106 (c) Nothing in this section shall be construed to exempt from penalty any person found 107responsible for a violation of sections 330 to 335, inclusive, as a result of not receiving a written 108communication described in subsection (b); provided, that the responsible local board of health 109made a good faith effort to provide this information to those who are entitled to it under 110subsection (b). 111 SECTION 7. Section 1 of chapter 94C of the General Laws, as appearing in the 2022 112Official Edition, is hereby amended striking the definition of “Marihuana” and inserting in its 113place the following definition:- 114 'Marihuana'', all parts of the plant Cannabis sativa L., whether growing or not; the seeds 115thereof; and resin extracted from any part of the plant; and every compound, manufacture, salt, 116derivative, mixture, or preparation of the plant, its seeds or resin; provided, this shall not include 117the mature stalks of the plant, industrial hemp as defined in section 116 of chapter 128, fiber 118produced from the stalks, oil, or cake made from the seeds of the plant, any other compound, 119manufacture, salt, derivative, mixture, or preparation of the mature stalks, except the resin 7 of 10 120extracted therefrom, fiber, oil, or cake or the sterilized seed of the plant which is incapable of 121germination; and provided further, this shall not include hemp products as defined by chapter 12294G or non-ingestible hemp products as defined by chapter 94 which are compliant with all 123applicable state laws and regulations. 124 SECTION 8. Section 1 of chapter 94G of the General Laws, as appearing in the 2022 125Official Edition, is hereby amended by striking the definition of hemp and inserting in its place 126the following 2 definitions:- 127 “Hemp”, the plant of the genus Cannabis and any part of that plant, including all 128derivatives, extracts, cannabinoids, isomers, acids, salts and salts of isomers, but not including 129the seeds thereof, whether growing or not, with a total tetrahydrocannabinol concentration, 130including tetrahydrocannabinolic acid, of not more than 0.3 percent in the plant on a dry weight 131basis. This does not include tetrahydrocannabinols present in the finished dosage formulation of 132a drug product that has been approved by the United States Food and Drug Administration. 133 “Hemp product”, any intermediate or final product derived from hemp harvested, 134processed, manufactured or sold pursuant to section 118 of chapter 128 and section 12(f) of 135chapter 94G, but not from industrial hemp, that is prepared in a form available for commercial 136sale and intended for human consumption, including but not limited to edible products such as 137food and beverages and inhalable products such as flower, distillations and vaporizers; provided, 138however, that this definition shall not include non-ingestible hemp products as defined by 139chapter 94. 8 of 10 140 SECTION 9. Said section 1 of said chapter 94G, as so appearing, is hereby further 141amended by striking the definition of “Marijuana” or “Marihuana” and inserting in its place the 142following definition:- 143 “Marijuana” or “Marihuana'', all parts of the plant Cannabis sativa L., whether growing 144or not; the seeds thereof; and resin extracted from any part of the plant; and every compound, 145manufacture, salt, derivative, mixture or preparation of the plant, its seeds or resin; provided, this 146shall not include the mature stalks of the plant, industrial hemp as defined in section 116 of 147chapter 128, fiber produced from the stalks, oil or cake made from the seeds of the plant, any 148other compound, manufacture, salt, derivative, mixture or preparation of the mature stalks, 149except the resin extracted therefrom, fiber, oil or cake or the sterilized seed of the plant which is 150incapable of germination; and provided further, this shall not include hemp products as defined 151by chapter 94G or non-ingestible hemp products as defined by chapter 94 which are compliant 152with all applicable state laws and regulations. 153 SECTION 10. Subsection (a 1/2) of section 4 of said chapter 94G, as so appearing, is 154hereby amended by inserting, after paragraph (xxxviii), the following 2 clauses: 155 (xxxix) establish standards for allowing the sale of hemp products to consumers by 156marijuana establishments; and 157 (xxxx) establish standards for the manufacture, packaging and transportation of hemp 158products; provided, when applicable, that these standards are as strict or stricter than the 159standards adopted for marijuana products. 160 SECTION 11. Section 12 of said chapter 94G, as so appearing, is hereby amended by 161striking subsection (f) and inserting in its place the following subsection:- 9 of 10 162 (f) No marijuana establishment shall cultivate, manufacture, sell or otherwise transact 163business with any products containing cannabinoids other than those that were produced, 164distributed and taxed in compliance with this chapter or any hemp and hemp products cultivated 165and manufactured in compliance with a license from the department of agricultural resources 166pursuant to chapter 128 and is in compliance with regulations set forth by the United States 167Department of Agriculture. No hemp product shall contain more than 100 parts per million or 168100 micrograms per gram of any cannabinoid which is not naturally produced by hemp plants 169above this concentration. 170 SECTION 12. Chapter 94G, as so appearing, is hereby further amended by inserting, 171after section 14A, the following section:- 172 Section 14B. (a) There shall be established and set up on the books of the commonwealth 173a separate fund, to be known as the Hemp Product Education Fund. It shall consist of all monies 174received on account of the commonwealth as a result of revenue generated by the tax imposed by 175section 2A of chapter 64N, subject to the provisions described in section 5 of Chapter 64N, 176interest earned or other income on balances in the fund, any appropriations authorized by the 177general court specifically designated to be credited to the fund, and gifts, grants and donations 178from public or private sources. 179 (b) Money in the fund shall be expended for the implementation, administration and 180enforcement of sections 330 to 335, inclusive, of chapter 94 by local boards of health. This shall 181include, but not be limited to: 10 of 10 182 (i) the creation or adoption of an informational course that may be used as an educational 183resource or as part of an enforcement action following a violation of sections 330 to 335, 184inclusive; 185 (ii) the investigation of alleged violations of sections 330 to 335, inclusive; 186 (iii) the development of relevant rules and regulations; 187 (iv) the creation and dissemination of relevant informational material; 188 (v) the training of staff to investigate and enforce relevant rules, regulations and laws; 189and 190 (vi) the administration of any relevant enforcement actions. 191 SECTION 13. Section 116 of chapter 128, as appearing in the 2022 Official Edition, is 192hereby amended by striking the definition of “Hemp” and inserting in its place the following 193definition:- 194 “Hemp”, the plant of the genus Cannabis and any part of that plant, including the seeds 195thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, 196whether growing or not, with a total tetrahydrocannabinol concentration, including 197tetrahydrocannabinolic acid, of not more than 0.3 percent in the plant on a dry weight basis. 198 SECTION 14. Not later than 90 days following the effective date of this act, local boards 199of health shall communicate in writing information regarding the requirements of sections 330 to 200335, inclusive, of chapter 94 of the General Laws, as inserted by this act, that relate to hemp 201product definitions and sales, as well as the details of violating said sections and the penalties for 202violations, to persons within their jurisdiction who may be impacted by said sections