1 of 1 HOUSE DOCKET, NO. 3303 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 357 The Commonwealth of Massachusetts _________________ PRESENTED BY: Michael S. Day _________________ 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 to regulate hemp-derived beverages like alcohol. _______________ PETITION OF: NAME:DISTRICT/ADDRESS :DATE ADDED:Michael S. Day31st Middlesex1/17/2025 1 of 12 HOUSE DOCKET, NO. 3303 FILED ON: 1/17/2025 HOUSE . . . . . . . . . . . . . . . No. 357 By Representative Day of Stoneham, a petition (accompanied by bill, House, No. 357) of Michael S. Day for legislation to regulate hemp-derived beverages like alcohol. Consumer Protection and Professional Licensure. The Commonwealth of Massachusetts _______________ In the One Hundred and Ninety-Fourth General Court (2025-2026) _______________ An Act to regulate hemp-derived beverages like alcohol. 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 138 of the General Laws is hereby amended by inserting after 2section 78 the following sections:- 3 Section 79. Definitions applicable to sections 79 through 84, inclusive 4 As used in this section, the following words shall have the following meanings unless the 5context clearly requires otherwise: 6 “Artificially-derived cannabinoid”, a chemical substance that is created by a chemical 7reaction that changes the molecular structure of any chemical substance derived from the 8cannabis plant. “Artificially-derived cannabinoid” does not include: a naturally occurring 9chemical substance that is separated from the cannabis plant by a chemical or mechanical 10extraction process; or a cannabinoid that is produced by decarboxylation from a naturally 11occurring cannabinoid acid without the use of a chemical catalyst. 2 of 12 12 “Cannabinoid”, any of several compounds produced by the cannabis plant that have 13medical and psychotropic effects. This includes but is not limited to cannabidiol (CBD) and 14tetrahydrocannabinol (THC). 15 “Certificate of analysis”, a document produced by an independent testing laboratory 16listing the quantities of the various analytes for which testing was performed. 17 “Container” means an object that is offered, intended for sale or sold to a consumer and 18directly contains an infused beverage product, and does not include an object or packaging that 19indirectly contains, or contains in bulk for transportation purposes, an infused beverage. 20 “Hemp”, as defined in section 1 of chapter 94G. 21 “Independent testing laboratory”, a laboratory that does not have a direct or indirect 22interest in the entity whose product is being tested; does not have a direct or indirect interest in a 23facility that cultivates, processes, distributes, dispenses, or sells infused beverages or infused 24beverage products in the state and is accredited by a third-party accrediting body as a competent 25testing laboratory pursuant to ISO/IEC 17025 of the International Organization for 26Standardization. 27 “Infused beverage”, a beverage intended for human consumption that is not an alcoholic 28beverage, as defined in section 1, that contains, or is advertised, labeled or offered for sale as 29containing an intoxicating cannabinoid and may contain one or more non-intoxicating 30cannabinoids. Infused beverage shall not be considered “food” as defined in section 1 of chapter 3194. 3 of 12 32 “Infused beverage product”, an infused beverage in a container intended for retail sale. 33An infused beverage product shall not be considered “food” as defined in section 1 of chapter 94. 34 “Infused beverage product class”, a group of infused beverage products that have all 35ingredients in common; and are produced by or for the same company. 36 “Intoxicating cannabinoid”, a cannabinoid with intoxicating properties that changes the 37function of the nervous system and results in alterations of perception, cognition, or behavior. 38“Intoxicating cannabinoid” shall include, but shall not be limited to, delta-6- 39tetrahydrocannabinol, delta-8-tetrahydrocannabinol, delta-9-tetrahydrocannabinol, delta-10- 40tetrahydrocannabinol, and delta-9-tetrahydrocannabinolic acid A. 41 “Non-intoxicating cannabinoid”, a cannabinoid without intoxicating properties that 42changes the function of the nervous system and results in alterations of perception, cognition, or 43behavior. “Non-intoxicating cannabinoid” shall include, but shall not be limited to, cannabidiol, 44cannabidiolic acid, cannabidivarin, cannabidivarinic acid, cannabichromene, cannabichromenic 45acid cannabigerolic acid cannabigerol, and cannabinol. 46 “Transportable hemp concentrate”, the product of any chemical or physical process 47applied to naturally occurring biomass that concentrates or isolates the cannabinoids contained in 48the biomass; is derived from the hemp plant that, based on sampling that was collected no more 49than 30 days before the day on which the hemp plant was harvested, contains a combined 50concentration of total THC and any THC analog of less than 0.3% on a dry weight basis; has a 51THC and THC analog concentration total that is less than 20% when concentrated from the hemp 52plant to the purified state; and is intended to be processed into an infused beverage product. 53 Section 80. Manufacture of infused beverages 4 of 12 54 (a) No person shall manufacture an infused beverage that is intended to be sold or offered 55for sale in the commonwealth unless such person holds an infused beverage manufacturer 56endorsement or a certificate of compliance issued by the commission pursuant to this section. 57The commission may impose a fine of up to $10,000 on a person that advertises, announces, 58establishes, maintains or is concerned in establishing or maintaining an infused beverage 59manufacturing operation without an endorsement granted by the commission. Each day during 60which a violation continues shall constitute a separate offense. The commission may conduct 61surveys and investigations to enforce compliance with this section. 62 (b) The commission shall issue for a term of one year, and renew for a like term, an 63endorsement to manufacture infused beverages under this section to an entity that submits to the 64commission, in a form and manner prescribed by the commission, an application that 65demonstrates eligibility for an endorsement under this section. Such an endorsement shall be 66subject to suspension, revocation or refusal to renew for cause. Any application for an 67endorsement under this section, or renewal thereof, shall be accompanied by an application 68processing fee in the amount of five thousand dollars. The commission shall approve or deny 69such an application within thirty days of submission. 70 (c) The commission shall not issue an endorsement under this section unless the applicant 71holds an unencumbered license to: (i) manufacture alcoholic beverages issued under section 19 72of this chapter, (ii) manufacture marijuana-infused products issued by the cannabis control 73commission under chapter 94G, or (iii) manufacture hemp products issued by the department of 74agricultural resources under chapter 128. 5 of 12 75 (d) No holder of an endorsement or certificate of compliance under this section shall sell 76an infused beverage or infused beverage product to any person in the commonwealth unless such 77person holds an endorsement or certificate of compliance from the commission to manufacture 78infused beverages under this section or to sell infused beverage products at wholesale issued 79under section 81. 80 (e) A holder of an endorsement issued under this section may utilize existing facilities 81and equipment to manufacture infused beverages and infused beverage products in accordance 82with regulations promulgated by the commission. No infused beverage manufacturer shall obtain 83any hemp or hemp product for the purpose of manufacturing any infused beverage that is 84intended to be manufactured, sold or offered for sale in this state unless such hemp product is in 85the form of transportable hemp concentrate, and no such infused beverage manufacturer shall use 86any hemp product other than transportable hemp concentrate to manufacture any such infused 87beverage or infused beverage product. 88 (f) The commission shall issue a certificate of compliance to an out of state entity 89authorized by its home state to manufacture or distribute alcoholic beverages or hemp products; 90provided, however, that such certificate shall be issued upon the condition that the holder shall 91furnish from time to time as the commission may require, but in no event more often than once 92each month, information concerning all shipments or sales of infused beverage products made by 93them into the commonwealth, and that they comply with the provisions of this chapter and any 94rules or regulations promulgated hereunder that pertain to a licensee of the same class, type or 95character, doing business in this commonwealth under a license issued by the commission. The 96commission may suspend, cancel or revoke any certificate issued hereunder for a violation of the 97terms or conditions thereof. All certificates shall be issued to expire December thirty-first of the 6 of 12 98year of issuance and the fee therefor shall be no less than $200. The commission shall issue a 99certificate of compliance within thirty days of application submission. 100 Section 81. Wholesale of infused beverage products 101 (a) No person shall sell an infused beverage product at wholesale in the commonwealth 102unless such person holds an infused beverage product wholesaler and importer endorsement 103issued by the commission pursuant to this section. The commission may impose a fine of up to 104$10,000 on any person that advertises, announces, establishes, maintains or is concerned in 105establishing or maintaining an infused beverage wholesaler without an endorsement granted by 106the commission. Each day during which a violation continues shall constitute a separate offense. 107The commission may conduct surveys and investigations to enforce compliance with this 108section. 109 (b) The commission shall issue for a term of one year, and renew for a like term, an 110endorsement to import or sell infused beverage products at wholesale to an entity that submits to 111the commission, in a form and manner prescribed by the commission, an application that 112demonstrates eligibility for an endorsement under this section. Such an endorsement shall be 113subject to suspension, revocation or refusal to renew for cause. Any application for an 114endorsement under this section, or renewal thereof, shall be accompanied by an application 115processing fee in the amount of five thousand dollars. The commission shall approve or deny 116such an application within thirty days of submission. 117 (c) The commission shall not issue an endorsement under this section unless the applicant 118holds an unencumbered license to import or sell alcoholic beverages at wholesale issued under 119section 18 of this chapter. 7 of 12 120 (d) No holder of an endorsement under this section shall sell an or infused beverage 121product to any person unless such person holds an endorsement from the commission to retail 122infused beverages under section 82. 123 Section 82. Retail of infused beverage products 124 (a) No person shall sell, or offer for sale, at retail an infused beverage product unless such 125person holds an infused beverage product retailer endorsement issued by the commission 126pursuant to this section. No infused beverage product shall be sold, or offered for sale, at retail to 127any individual by way of any indirect means, including, but not limited to, by way of mail or any 128telephonic or other electronic means. The commission may impose a fine of up to $10,000 on a 129person that advertises, announces, establishes, maintains or is concerned in establishing or 130maintaining a retail establishment that sells, or offers for sale, at retail infused beverage products 131in violation of this subsection. Each day during which a violation continues shall constitute a 132separate offense. The commission may conduct surveys and investigations to enforce compliance 133with this section. 134 (b) The commission shall issue for a term of one year, and renew for a like term, an 135endorsement to sell infused beverage products at retail to an entity that submits to the 136commission, in a form and manner prescribed by the commission, an application that 137demonstrates eligibility for an such endorsement under this section. Such an endorsement shall 138be subject to suspension, revocation or refusal to renew for cause. Any application for an 139endorsement under this section, or renewal thereof, shall be accompanied by an application 140processing fee in the amount of five hundred dollars. The commission shall approve or deny such 141an application within thirty days of submission. 8 of 12 142 (c) The commission shall not issue an endorsement under this section unless the applicant 143holds an unencumbered license to: (i) sell all alcoholic beverages or beer and wine at retail under 144this chapter, (ii) operate a medical marijuana treatment center issued by the cannabis control 145commission under chapter 94I, or (iii) operate a retail adult-use marijuana establishment issued 146by the cannabis control commission under chapter 94G. 147 (d) No holder of an endorsement under this section shall purchase infused beverage 148products to be sold at retail from any person unless such person holds an endorsement to 149wholesale infused beverage products issued by the commission under section 81. 150 Section 83. Age restriction 151 No infused beverage product shall be sold to any individual who is younger than twenty- 152one years of age. No owner, agent or employee of a business authorized to sell infused beverage 153products shall sell any infused beverage products to an individual without first verifying the 154individual's age with a valid government-issued driver's license or identity card to establish that 155such individual is twenty-one years of age or older. 156 Section 84. Infused beverage product registration; standards for infused beverage 157products 158 (a) No infused beverage product shall be sold in the commonwealth unless such product 159is registered with the commission and complies with this section. The commission shall publish a 160publicly available list of registered infused beverage products. 161 (b) The commission shall register an infused beverage product following submission of 162an application, in a form and manner prescribed by the commission, that demonstrates 9 of 12 163compliance with this section. At a minimum, such application shall include: (i) the name and 164address of the applicant; (ii) the name and address of the brand or company whose name shall 165appear on the label of the infused beverage product; (iii) the name of the infused beverage 166product; (iv) the name and address of the origin of the infused beverage product with which the 167final product was manufactured; (v) a complete copy of the front and back of the label that will 168appear on the infused beverage product; and, (iv) a certificate of analysis from an accredited 169third-party laboratory for the lot for each product. Such registration shall be subject to 170suspension or revocation for cause. Any initial application for registration under this section shall 171be accompanied by a registration processing fee in the amount of two hundred dollars. The 172commission shall approve or deny such an application within thirty days of submission. Any of 173the following shall require a new product registration and fee: (i) a change in the chemical 174composition or formula of an infused beverage product; (ii) a change to the serving size or 175directions for use of an infused beverage product; or, (iii) any change to the label of an infused 176beverage product. 177 (c) No Infused beverage product may be distributed or sold in the commonwealth unless 178such product: 179 (1) has a certificate of analysis prepared by an independent testing laboratory that states 180the infused beverage or infused beverage product is from a batch that has been tested for, and 181does not contain more than trace amounts of, pesticides, residual solvents, metals, harmful 182pathogens, and toxicants; 183 (2) accurately reflects testing results and contains less than a ten percent variance of the 184concentration of total cannabinoid content as listed on the product label; 10 of 12 185 (3) is distributed or sold in a container that is: (i) suitable to contain products for human 186consumption; (ii) is not attractive to children; and, (iii) is tamper evident; and, 187 (4) complies with the labeling and warning requirements specified in subsection (d). 188 (d) No Infused beverage product may be distributed or sold in the commonwealth unless 189the label of such product: 190 (1)is plainly identifiable to a reasonable consumer that the product is an infused 191beverage product; 192 (2) includes a scannable barcode or quick response code linked to the certificate of 193analysis of the infused beverage from an independent testing laboratory; 194 (3) includes the expiration date, brand name, list of ingredients and the name, telephone 195number and email address of the product manufacturer; 196 (4) specifies the number of milligrams of each cannabinoid per serving and serving size, 197if specific cannabinoids are contained within or marketed for the product; 198 (5) does not include any claim that the product may be used or is effective for the 199prevention, treatment, or cure of a disease or that it may be used to alter the structure or function 200of human or animal bodies unless such claim has been approved by the federal Food and Drug 201Administration; and, 202 (6) includes a warning label containing the following or substantially similar language: (i) 203a statement that the product has not been evaluated or approved by the United States Food and 204Drug Administration (unless such approval has been secured); (ii) the potential for the product to 205cause the consumer to fail a drug test for THC; (iii) a statement that products containing THC 11 of 12 206may cause impairment and impact a consumer’s ability to operate a vehicle; (iv) a statement that 207the product is not recommended for use by pregnant or breastfeeding women; (v) a statement 208that product use may result in health risks and medication interactions; (vi) a statement in capital 209letters to KEEP THIS PRODUCT OUT OF REACH OF CHILDREN; and (vii) a statement or 210infographic that the product is intended only for individuals age 21+. 211 (e) The commission shall establish by regulation a maximum amount of intoxicating 212cannabinoids per infused beverage product container; provided, however, that such maximum 213amount per container established by the commission shall be 5 milligrams per container or shall 214equal the container limit for marijuana-infused beverage products established by the cannabis 215control commission under chapter 94G, whichever is greater. 216 Section 85 Taxation of infused beverages 217 (a) An infused beverage product excise tax will be levied on all infused beverage 218products at a rate of $2.20 per gallon. Manufacturers must file their tax at a schedule specified by 219the department of revenue and pay for products manufactured in Massachusetts for sale in 220Massachusetts. Out of state businesses wholesalers must file at a schedule specified by the 221department of revenue and pay for infused beverage products shipped into Massachusetts for sale 222in Massachusetts. Infused beverage products shall be exempt from sales tax. Infused beverage 223products stored or manufactured in Massachusetts intended for or sold outside Massachusetts 224shall not be subject to an excise tax. 225 (b) The administration of the tax imposed by this section shall be vested in the 226commissioner of revenue and governed by the provisions of chapter 62C. All sums received 227under sections 80 to 85, inclusive, including all sums received as penalties, forfeitures, interest, 12 of 12 228costs of suits and fines, less all amounts allowed as refunds and abatements under sections 79 to 22985, inclusive, shall be credited as follows: 230 (1) 20 per cent shall be credited to the commission for implementation and enforcement 231of sections 79 to 85, inclusive, including, but not limited to, infused beverage product licensing, 232oversight and enforcement. 233 (2) 20 per cent shall be credited to the department of public health for the purposes of 234public education regarding illicit hemp products and for the purposes of funding enforcement 235efforts by local boards of health regarding illicit hemp products. 236 (3) The balance shall be credited to the General Fund. 237 Section 86. Regulations for the implementation of sections 70 to 86, inclusive 238 The commission shall promulgate regulations for the implementation sections 79 to 86, 239inclusive. The commission may, in its discretion, promulgate regulations regarding the 240advertisement, manufacture, distribution, importation, retail, and labelling of infused beverage 241products; provided however, such regulations shall not conflict with sections 79 to 85, inclusive, 242and otherwise shall not be more restrictive than regulations promulgated by the commission 243under this chapter governing the advertisement, manufacture, distribution, importation, retail, 244and labelling of alcoholic beverages. 245 SECTION 2. The alcoholic beverages control commission, established under section 70 246of chapter 10, shall promulgate regulations to implement section 1 not later than 180 days 247following the effective date of this Act.