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SENATE DOCKET, NO. 1675 FILED ON: 1/16/2025
SENATE . . . . . . . . . . . . . . No. 78
The Commonwealth of Massachusetts
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PRESENTED BY:
James B. Eldridge
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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 relative to economic opportunities in the cannabis industry.
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PETITION OF:
NAME:DISTRICT/ADDRESS :James B. EldridgeMiddlesex and Worcester 1 of 3
SENATE DOCKET, NO. 1675 FILED ON: 1/16/2025
SENATE . . . . . . . . . . . . . . No. 78
By Mr. Eldridge, a petition (accompanied by bill, Senate, No. 78) of James B. Eldridge for
legislation relative to ownership and license holders in the cannabis industry. Cannabis Policy.
The Commonwealth of Massachusetts
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In the One Hundred and Ninety-Fourth General Court
(2025-2026)
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An Act relative to economic opportunities in the cannabis industry.
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. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
2amended by inserting after the definition of “Mycotoxin” the following definitions:-
3 “Person or Entity Having Direct Control”, any person or entity having direct control over
4the operations of a marijuana establishment, which satisfies one or more of the following criteria:
5 (a) An owner;
6 (b) A person or entity that possesses a voting interest of 10 percent or greater in a
7marijuana establishment;
8 (c) A close associate;
9 (d) A person or entity that has the right to control or authority, through contract or
10otherwise including, but not limited to: (1) To appoint more than 50% of the directors or their 2 of 3
11equivalent; (2) To appoint or remove corporate-level officers or their equivalent; or (3) To earn
1210 percent or more of the profits or collect more than 10 percent of the dividends.
13 (e) A court appointee or assignee pursuant to an agreement for a general assignment or
14assignment for the benefit of creditors; or
15 (f) A third-party technology platform provider that possesses any financial interest in a
16marijuana delivery licensee including, but not limited to, a delivery agreement or other
17agreement for services.
18 “Person or Entity Having Indirect Control”, any person or entity having indirect control
19over operations of a marijuana establishment. It specifically includes any person or entity having
20direct control over an indirect holding or parent company of the applicant, and the chief
21executive officer and executive director of those companies, or any person or entity in a position
22indirectly to control the decision-making of a marijuana establishment.
23 SECTION 2. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
24amended by inserting after the definition of “Production batch” the following definition:-
25 “Owner”, any person or entity owning directly or indirectly through parent or holding
26company, or otherwise, 10 percent or more of the interest in a licensee,
27 SECTION 3. Section 16 of chapter 94G of the General Laws is hereby amended by
28striking out the existing language in its entirety and inserting in place thereof the following
29section:-
30 Section 16. (a) No Person or Entity having Direct or Indirect Control may become a
31licensee or Person or Entity having Direct or Indirect Control of more than 6 marijuana retailers, 3 of 3
323 medical marijuana treatment center licenses, 3 marijuana product manufacturer licenses and 3
33marijuana cultivator licenses; provided however that until 1-year from the passage of this Act, no
34Person or Entity having Direct or Indirect Control may become a Person or Entity having Direct
35or Indirect Control of more than 4 marijuana retailers, and until 2-years from the passage of this
36Act, no Person or Entity having Direct or Indirect Control may become a Person or Entity having
37Direct or Indirect Control of more than 5 marijuana retailers, and provided further that the
38commission shall not grant any license where such licensee or Person or Entity having Direct or
39Indirect Control would become a licensee or Person or Entity having Direct or Indirect Control
40of four or more marijuana retailers through the application for a new license. A licensee or
41Person or Entity having Direct or Indirect Control may only become a licensee or Person or
42Entity having Direct or Indirect Control of four or more marijuana retailers through a change of
43ownership or control request of a marijuana retailer license in good standing with the
44commission on the effective date of this section.
45 (b) The commission shall adopt regulations to establish requirements that a Person or
46Entity seeking to have Direct or Indirect Control of more than 3 marijuana retailers must
47purchase a marijuana establishment or medical marijuana treatment center license authorized to
48commence operations by the commission; provided that priority consideration is given to the
49purchase of such marijuana retailer licenses that are majority owned by a social equity business,
50economic empowerment business, a Massachusetts Minority Business Enterprises (MBE),
51Women Business Enterprises (WBE), or Veteran Business Enterprises (VBE) with valid
52certification from the Supplier Diversity Office of the Massachusetts Operational Services
53Division.