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HOUSE DOCKET, NO. 3588 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 158
The Commonwealth of Massachusetts
_________________
PRESENTED BY:
Meghan K. Kilcoyne
_________________
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 for cannabis market modernization.
_______________
PETITION OF:
NAME:DISTRICT/ADDRESS :DATE ADDED:Meghan K. Kilcoyne12th Worcester1/17/2025Jacob R. OliveiraHampden, Hampshire and Worcester2/13/2025 1 of 13
HOUSE DOCKET, NO. 3588 FILED ON: 1/17/2025
HOUSE . . . . . . . . . . . . . . . No. 158
By Representative Kilcoyne of Clinton, a petition (accompanied by bill, House, No. 158) of
Meghan K. Kilcoyne and Jacob R. Oliveira relative to modernization of the cannabis market.
Cannabis Policy.
The Commonwealth of Massachusetts
_______________
In the One Hundred and Ninety-Fourth General Court
(2025-2026)
_______________
An Act for cannabis market modernization.
Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
of the same, as follows:
1 Whereas, the cannabis industry has changed more rapidly than the regulatory framework
2governing the Massachusetts marketplace anticipated;
3 Whereas, more than a dozen marijuana retailers, medical marijuana dispensaries and
4marijuana cultivators went out of business in 2024, causing a loss of jobs and tax revenue in the
5Commonwealth;
6 Whereas, there is an impending threat of many more cannabis business closures in areas
7disproportionately impacted by cannabis criminalization, leaving businesses and low-income
8individuals employed bearing the brunt of regulations that are not commensurate with public
9safety, employee safety, or consumer needs;
10 Whereas, many social equity businesses are deprived by law of the most important
11incident of small business ownership: the ability to profit from the sale of the business and
12realize a return on investment; 2 of 13
13 Whereas, the appearance of hemp-derived THC intoxicating products on the shelves of
14package stores and gas stations created the greatest external threat to the existing regulated
15marketplace;
16 Whereas, a small, but significant number of cannabis businesses are in default of
17payment obligations, leaving a receivables crisis for many cannabis suppliers;
18 Whereas, the Cannabis Control Commission in its current structure has been beset by
19dysfunction and a lack of accountability; and
20 Whereas, reforms are needed to create a more stable and equitable cannabis industry in
21the Commonwealth.
22 SECTION 1. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
23amended by inserting as new definitions:-
24 “Agent registration card”, the identification card currently and validly issued by the
25commission to a marijuana establishment or laboratory employee or agent, but not to a licensee,
26which shall entitle the holder to perform services marijuana establishments or laboratories.
27 SECTION 2. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
28amended by inserting after the definition of “Mycotoxin” the following definitions:-
29 “Person or Entity Having Direct Control”, any person or entity having direct control over
30the operations of a marijuana establishment, which satisfies one or more of the following criteria:
31 (a) An owner; 3 of 13
32 (b) A person or entity that possesses a voting interest of 25 percent or greater in a
33marijuana establishment;
34 (c) A close associate;
35 (d) A person or entity that has the right to control or authority, through contract or
36otherwise including, but not limited to: (1) To appoint more than 50% of the directors or their
37equivalent; (2) To appoint or remove corporate-level officers or their equivalent; or (3) To earn
3825 percent or more of the profits or collect more than 25 percent of the dividends.
39 (e) A court appointee or assignee pursuant to an agreement for a general assignment or
40assignment for the benefit of creditors; or
41 (f) A third-party technology platform provider that possesses any financial interest in a
42marijuana delivery licensee including, but not limited to, a delivery agreement or other
43agreement for services.
44 “Person or Entity Having Indirect Control”, any person or entity having indirect control
45over operations of a marijuana establishment. It specifically includes any person or entity having
46direct control over an indirect holding or parent company of the applicant, and the chief
47executive officer and executive director of those companies, or any person or entity in a position
48indirectly to control the decision-making of a marijuana establishment.
49 SECTION 3. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
50amended by inserting after the definition of “Production batch” the following definition:-
51 “Owner”, any person or entity owning directly or indirectly through parent or holding
52company, or otherwise, 25 percent or more of the interest in a licensee. 4 of 13
53 SECTION 4. Section 4 of chapter 94G subsection (a1/2)(xxix), as so appearing, is hereby
54amended by inserting in subsection (a1/2)(xxix)(6) after the word “marijuana” the following
55words:-
56 provided that the commission shall not prohibit advertising, marketing and branding of
57sales, discounts, and customer loyalty programs within a Marijuana Establishment, through a
58Delivery service, on an internet website maintained by a Marijuana Establishment, or through an
59opt-in email marketing campaign;
60 SECTION 5. Section 4 of chapter 94G, as so appearing, is hereby amended by inserting
61after paragraph (6) of subsection (c) the following paragraph:-
62 (7) require a marijuana retailer to check identification of any consumer or patient at any
63location except the point of sale.
64 SECTION 6. Section 6 of chapter 94G, as so appearing, is hereby amended by adding
65after the word “Laws” as so appearing in subsection (b) the following words:-
66 provided that the commission shall not renew and shall not grant any extension of the
67license’s expiration date to any applicant for renewal that has not provided a certificate of good
68standing and tax compliance from the department of revenue dated on or before the date of
69expiration of the license. The commission shall suspend or revoke the license of any applicant
70for renewal who fails to comply with this section pursuant to section 4 of this chapter.
71 SECTION 7. Section 7 of chapter 94G, as so appearing, is hereby amended by striking
72paragraph 1 of subsection (a) and inserting in place thereof the following words:- 5 of 13
73 (1) possessing, using, purchasing, processing and/or manufacturing not more than the 2
74ounce equivalency of marijuana, marijuana concentrate, edible, beverage, and other ingestible
75products combined; ;
76 SECTION 8. Section 12 of chapter 94G, as so appearing, is hereby amended by inserting
77the following subsections:-
78 (i)(1) Any employee, agent, volunteer or other person required by the regulations
79promulgated pursuant to section 4 shall register with the commission prior to engaging in any
80on-site services to a marijuana establishment or laboratory related to the cultivation, harvesting,
81preparation, packaging, storage, testing or dispensing of marijuana. The commission shall issue
82a single agent registration card to an individual, which agent registration card shall entitle the
83holder to provide such services at one or more marijuana establishments or laboratories. An
84agent registration card shall be valid for seven years from the date of issuance. A licensee shall
85verify the validity of the agent registration cards, but shall not be required to obtain agent
86registration cards on behalf of its employees, agents, volunteers or other persons required by the
87regulations promulgated pursuant to section 4.
88 (2) The commission shall not require a fee for agent registration card requests made by a
89verified employee of any social equity businesses.
90 SECTION 9. Section 15 of chapter 94G, as so appearing, is hereby amended by inserting
91in the first sentence of subsection (a) paragraph (1) after the word “resources” the following
92words:- provided that the commission shall not require sampling of any batch of marijuana less
93than 40 pounds. 6 of 13
94 SECTION 10. Section 16 of chapter 94G of the General Laws is hereby amended by
95striking out the existing language in its entirety and inserting in place thereof the following
96section:-
97 Section 16. (a) No Person or Entity having Direct or Indirect Control may become a
98licensee or Person or Entity having Direct or Indirect Control of more than 9 marijuana retailers,
993 medical marijuana treatment center licenses, 3 marijuana product manufacturer licenses and 3
100marijuana cultivator licenses, provided further that the commission shall not grant any license
101where such licensee or Person or Entity having Direct or Indirect Control would become a
102licensee or Person or Entity having Direct or Indirect Control of four or more marijuana retailers
103through the application for a new license. A licensee or Person or Entity having Direct or
104Indirect Control may only become a licensee or Person or Entity having Direct or Indirect
105Control of four or more marijuana retailers through a change of ownership or control request of a
106marijuana retailer license in good standing with the commission on the effective date of this
107section;
108 SECTION 11. Chapter 94G, as so appearing, is hereby further amended by adding the
109following sections:-
110 Section 23. (a) Notwithstanding section 4(a)(x) and section 5 of this chapter, or any other
111general or special law, rule, regulation, or order to the contrary, from the effective date of this
112section until 180 days after the publication of the report Joint Committee on Cannabis Policy of
113the General Court pursuant to subsection (b), the commission shall not issue any marijuana
114retailer, marijuana cultivator or marijuana product manufacturer license to any person, except
115through the grant of an application for change of ownership or control, unless such person has 7 of 13
116submitted a marijuana establishment license application that has been deemed complete by the
117commission prior to the effective date of this section or unless such person is a participant in the
118social equity program established by section 22 of this chapter.
119 (b) The Joint Committee on Cannabis Policy of the General Court shall conduct and
120publish a study analyzing the profitability and economic health of businesses licensed under this
121chapter. The study shall analyze the appropriate number of licenses to be licensed under this
122chapter, the adequacy of cannabis supply for patients and consumers, or whether an oversupply
123harms market participants, and the adequacy of the commission’s enforcement of its regulations
124with respect to cultivation tiers.
125 (c) This section shall be effective upon passage.
126 SECTION 12. Chapter 94G, as so appearing, is hereby further amended by adding the
127following sections:-
128 Section 24. (a) As used in sections 23-24, the following words shall, unless the context
129clearly requires otherwise, have the following meanings:-
130 “Artificially derived”, the creation of a chemical substance by a chemical reaction that
131changes the molecular structure of any chemical substance.
132 “Cannabidiol (CBD)” means a nonpsychoactive cannabinoid found in the cannabis sativa
133plant. CBD has the formula C21H30O2 and chemical structure, inclusive of stereochemical
134variations. CBD is not tetrahydrocannabinol.
135 “Cannabinoids” means compounds structurally defined as a diverse class of C21 or C22
136terpenophenolic compounds found in Cannabis sativa L., their carboxylic acids, analogs, and 8 of 13
137transformation products. Cannabinoids, for the purposes of this chapter, shall include structurally
138unrelated cannabimimetic compounds. The main cannabinoids found in cannabis plants are
139Tetrahydrocannabinol (THC) and Cannabidiol (CBD). In addition to THC and CBD, there are
140more than 100 cannabinoids that could be identified.
141 “Cannabimimetic”, a compound that is not structurally a cannabinoid, but which can
142elicit a biological response similar to those produced by cannabinoids by acting directly or
143indirectly on cannabinoid receptors in the body.
144 “Delta-8-tetrahydrocannabinol (Delta-8-THC)”, a psychoactive cannabinoid compound
145found in the Cannabis sativa plant, but does not occur in naturally significant amounts. It has the
146chemical formula C21H30O2 and the chemical structure inclusive of stereochemical variations.
147 “Delta-9-tetrahydrocannabinol (Delta-9-THC)”, a psychoactive cannabinoid compound
148found in the Cannabis sativa plant, and the primary psychoactive compound found in marijuana.
149Delta-9 THC has the formula C21H30O2 and the chemical structure inclusive of stereochemical
150variations.
151 “Dry weight basis”, a method of determining the percentage of a chemical in a substance
152after removing the moisture from the substance. The ratio of the amount of moisture in a sample
153to the amount of dry solid in a sample.
154 “Decarboxylation”, a process of treating a cannabis material or product to remove
155carboxyl groups from the cannabinoids native in the plant, to form transformation products such
156as THC and CBD. Decarboxylation is commonly accomplished by application of heat.
157Decarboxylation is not considered a synthetic process. 9 of 13
158 “Hemp-derived cannabinoid product”, a product derived from hemp intended for human
159consumption, by means including, but not limited to ingestion, injection or inhalation, that
160contains more than .5 milligrams of total tetrahydrocannabinol (THC) per any serving or other
161individual unit, and 2.5 milligrams per multi-serving package, container, or packages or
162containers sold as a single unit.
163 “Intoxicating tetrahydrocannabinols”, naturally occurring, synthetically derived,
164artificially derived, isomerized, or synthetically converted tetrahydrocannabinols which, when
165consumed, have the potential to induce disturbances in nervous system function and may result
166in changes in cognition, perception, judgement, mood, consciousness, or behavior, that resolve
167with time.
168 “Isomers”, molecules or polyatomic ions with identical molecular formulae (i.e., the
169same number of atoms of each element) but distinct arrangements of atoms in space.
170 “Isomerization”, is the process in which a molecule, polyatomic ion or molecular
171fragment is transformed into an isomer with a different chemical structure.
172 “Tetrahydrocannabinol (THC)”, (i) all naturally, synthetically or artificially derived
173tetrahydrocannabinols, or any structural, optical or geometric isomers or analogs of
174tetrahydrocannabinols, which include but are not limited to, Delta-1 tetrahydrocannabinol; Delta-
1756 tetrahydrocannabinol; Delta 3,4 tetrahydrocannabinol; Delta-8 tetrahydrocannabinol; Delta-9
176tetrahydrocannabinol; Delta-10 tetrahydrocannabinol, Delta-11 tetrahydrocannabinol; (ii) any
177other intoxicating tetrahydrocannabinols, (iii) any other naturally or artificially derived
178cannabinoid that has an intoxicating or psychoactive effect; and (iv) any other chemically similar
179compound, substance, derivative, or isomer of tetrahydrocannabinol. 10 of 13
180 “Tetrahydrocannabiolic acid (THCA)”, a naturally occurring cannabinoid compound
181found in the cannabis sativa plant. THCA is the precursor to THC through decarboxylation.
182THCA has the chemical formula C22H30O4.
183 (b) No person may engage in the sale or transfer of hemp-derived cannabinoid products
184or Tetrahydrocannabiolic acid (THCA) without receiving an intoxicating hemp endorsement
185from the commission. The commission shall impose and collect fees pursuant to section 4 for
186intoxicating hemp endorsements.
187 (c) The commission shall promulgate any necessary regulations to implement this section
188within 90 days of the effective date.
189 (d) This section shall not be construed to prevent the cultivation and production of hemp
190pursuant to sections 116-123 of chapter 128 of the General Laws, or to prevent the interstate
191transportation of hemp or hemp-derived products in compliance with federal law.
192 Section 24. Whoever violates section 23(b) shall be punished by imprisonment for not
193more than 1 year in the house of correction or by a fine of not more than $25,000 per day, or by
194both such fine and imprisonment.
195 SECTION 13. Chapter 94G of the General Laws, as so appearing, is hereby amended by
196inserting after section 24 the following section:-
197 Section 25. It shall be unlawful for any licensee under this chapter to receive credit,
198directly or indirectly, for marijuana or marijuana products sold or delivered to any licensee
199engaged in the sale of marijuana or marijuana products for a period of not more than sixty days.
200Nothing in this chapter shall require any licensee to extend credit to any other licensee. The 11 of 13
201credit period shall be calculated from the date of the delivery of the marijuana or marijuana
202products to the purchasing licensee to the date when the purchasing licensee discharges in full
203the indebtedness for which the credit was extended. If any licensee does not discharge in full any
204such indebtedness within such sixty day period, the indebtedness shall be overdue and such
205licensee shall be delinquent within the meaning of this section. Within three days after a licensee
206becomes delinquent, the licensee who extended the credit shall mail a letter of notice by certified
207mail to the commission and a copy thereof to the delinquent licensee. The notice shall contain
208the name of the delinquent licensee, the date of delivery of the marijuana and marijuana
209products, the amount of the indebtedness remaining undischarged, and all available proof of the
210indebtedness and delinquency. Within five days after receipt of such a letter of notice, the
211commission shall post on its website the name and address only of the delinquent licensee in a
212complete and current delinquent list containing the names and addresses of all delinquent
213licensees. Such posting shall constitute notice to all licensees of the delinquency of such licensee.
214 If a licensee is seriously damaged in his business by riot, insurrection, civil disturbance,
215fire, explosion or by an act of God, so-called, the licensee may file an application with the
216commission requesting that the provisions of the first paragraph of this section be suspended as
217to him for a reasonable period. The commission shall set down the application for hearing within
218twenty-one days and shall notify all licensees engaged in selling to said applicant of the hearing
219and give all interested parties the right to be heard. Pending such hearing, the commission may,
220after an investigation and determination that the facts as stated by the licensee in his application
221would constitute reasonable grounds for relief, order that such licensee shall not be posted as
222delinquent. If the commission finds it is in the public interest to do so, it may suspend the
223application of said first paragraph with respect to the applicant for such period as it may consider 12 of 13
224to be reasonable and in the public interest. Such action shall not deprive licensees of all legal
225rights available to them for the collection of the indebtedness and shall be contingent on such
226terms and conditions as the commission shall determine.
227 No licensee under this chapter shall sell or deliver, directly or indirectly, marijuana or
228marijuana products to a licensee whose name is posted on the delinquent list, except for payment
229in cash on or before delivery, and no licensee who is posted on the delinquent list shall purchase
230or accept delivery of any marijuana or marijuana products except for payment in cash on or
231before delivery.
232 The commission shall not authorize a change of ownership or control of a licensee on the
233delinquent list until all delinquencies are satisfied and the commission has removed the licensee
234from the delinquent list under this section, except for approval of court-appointed receivers or
235trustees under a voluntary assignment for the benefit of creditors, provided that prior approval of
236such assignment is obtained from the commission after notice to all creditors has been given and
237reasonable time allowed for objections by all creditors.
238 Upon full discharge of the indebtedness for which a licensee was posted, the licensee
239who filed the letter of notice of delinquency shall, within twenty-four hours thereafter, notify the
240commission, by mailing a letter by certified mail addressed to the commission of the discharge of
241the indebtedness. The commission shall immediately strike the name of the delinquent licensee
242from the list.
243 Notwithstanding and in lieu of any other penalty in any other provision of this chapter,
244any person who violates any provision of this section shall be punished by a fine of not more
245than five thousand dollars. 13 of 13
246 The provisions of this section shall apply to all credit extended after April the first, two
247thousand and twenty.
248 The commission shall promulgate any necessary regulations to implement this section
249within 90 days of the effective date.
250 SECTION 14. Chapter 128 of the General Laws, as so appearing, is hereby amended by
251inserting after section 124 the following section:-
252 Section 125. The attorney general may make a complaint or seek indictment against any
253person for the sale of hemp or hemp-derived products that are not approved for use, ingestion, or
254inhalation by consumers by the Department and the Department of Public Health where such
255person does not hold a license authorizing the sale of such hemp or hemp-derived products from
256the Department or the Cannabis Control Commission. Any person, 90 days after the filing of a
257complaint with the attorney general, or sooner if the attorney general assents in writing, and
258within 3 years after the sale of hemp or hemp-derived products, may institute and prosecute in
259his own name and on his own behalf, or for others similarly situated, a civil action for injunctive
260relief to enjoin the sale of such hemp or hemp-derived products and any other relief the court
261may deem just and equitable. Any person instituting such action shall be deemed aggrieved and
262jurisdiction for such action shall lie in the superior court department whether or not the person
263has suffered monetary damages. Any person who prevails in such an action shall be awarded
264treble damages, if any, the costs of the litigation and reasonable attorneys' fees.