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2 | 2 | | SENATE DOCKET, NO. 2198 FILED ON: 1/17/2025 |
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3 | 3 | | SENATE . . . . . . . . . . . . . . No. 99 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Jacob R. Oliveira |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act for cannabis market modernization. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :Jacob R. OliveiraHampden, Hampshire and Worcester 1 of 12 |
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16 | 16 | | SENATE DOCKET, NO. 2198 FILED ON: 1/17/2025 |
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17 | 17 | | SENATE . . . . . . . . . . . . . . No. 99 |
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18 | 18 | | By Mr. Oliveira, a petition (accompanied by bill, Senate, No. 99) of Jacob R. Oliveira for |
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19 | 19 | | legislation to modernize cannabis market. Cannabis Policy. |
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20 | 20 | | The Commonwealth of Massachusetts |
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21 | 21 | | _______________ |
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22 | 22 | | In the One Hundred and Ninety-Fourth General Court |
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23 | 23 | | (2025-2026) |
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24 | 24 | | _______________ |
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25 | 25 | | An Act for cannabis market modernization. |
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26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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27 | 27 | | of the same, as follows: |
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28 | 28 | | 1 SECTION 1. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby |
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29 | 29 | | 2amended by inserting as new definitions:- |
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30 | 30 | | 3 “Agent registration card”, the identification card currently and validly issued by the |
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31 | 31 | | 4commission to a marijuana establishment or laboratory employee or agent, but not to a licensee, |
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32 | 32 | | 5which shall entitle the holder to perform services marijuana establishments or laboratories. |
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33 | 33 | | 6 SECTION 2. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby |
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34 | 34 | | 7amended by inserting after the definition of “Mycotoxin” the following definitions:- |
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35 | 35 | | 8 “Person or Entity Having Direct Control”, any person or entity having direct control over |
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36 | 36 | | 9the operations of a marijuana establishment, which satisfies one or more of the following criteria: |
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37 | 37 | | 10 (a) An owner; 2 of 12 |
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38 | 38 | | 11 (b) A person or entity that possesses a voting interest of 25 percent or greater in a |
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39 | 39 | | 12marijuana establishment; |
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40 | 40 | | 13 (c) A close associate; |
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41 | 41 | | 14 (d) A person or entity that has the right to control or authority, through contract or |
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42 | 42 | | 15otherwise including, but not limited to: (1) To appoint more than 50% of the directors or their |
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43 | 43 | | 16equivalent; (2) To appoint or remove corporate-level officers or their equivalent; or (3) To earn |
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44 | 44 | | 1725 percent or more of the profits or collect more than 25 percent of the dividends. |
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45 | 45 | | 18 (e) A court appointee or assignee pursuant to an agreement for a general assignment or |
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46 | 46 | | 19assignment for the benefit of creditors; or |
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47 | 47 | | 20 (f) A third-party technology platform provider that possesses any financial interest in a |
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48 | 48 | | 21marijuana delivery licensee including, but not limited to, a delivery agreement or other |
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49 | 49 | | 22agreement for services. |
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50 | 50 | | 23 “Person or Entity Having Indirect Control”, any person or entity having indirect control |
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51 | 51 | | 24over operations of a marijuana establishment. It specifically includes any person or entity having |
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52 | 52 | | 25direct control over an indirect holding or parent company of the applicant, and the chief |
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53 | 53 | | 26executive officer and executive director of those companies, or any person or entity in a position |
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54 | 54 | | 27indirectly to control the decision-making of a marijuana establishment. |
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55 | 55 | | 28 SECTION 3. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby |
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56 | 56 | | 29amended by inserting after the definition of “Production batch” the following definition:- |
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57 | 57 | | 30 “Owner”, any person or entity owning directly or indirectly through parent or holding |
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58 | 58 | | 31company, or otherwise, 25 percent or more of the interest in a licensee. 3 of 12 |
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59 | 59 | | 32 SECTION 4. Section 4 of chapter 94G subsection (a1/2)(xxix), as so appearing, is hereby |
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60 | 60 | | 33amended by inserting in subsection (a1/2)(xxix)(6) after the word “marijuana” the following |
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61 | 61 | | 34words:- |
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62 | 62 | | 35 provided that the commission shall not prohibit advertising, marketing and branding of |
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63 | 63 | | 36sales, discounts, and customer loyalty programs within a Marijuana Establishment, through a |
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64 | 64 | | 37Delivery service, on an internet website maintained by a Marijuana Establishment, or through an |
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65 | 65 | | 38opt-in email marketing campaign; |
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66 | 66 | | 39 SECTION 5. Section 4 of chapter 94G, as so appearing, is hereby amended by inserting |
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67 | 67 | | 40after paragraph (6) of subsection (c) the following paragraph:- |
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68 | 68 | | 41 (7) require a marijuana retailer to check identification of any consumer or patient at any |
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69 | 69 | | 42location except the point of sale. |
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70 | 70 | | 43 SECTION 6. Section 6 of chapter 94G, as so appearing, is hereby amended by adding |
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71 | 71 | | 44after the word “Laws” as so appearing in subsection (b) the following words:- |
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72 | 72 | | 45 provided that the commission shall not renew and shall not grant any extension of the |
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73 | 73 | | 46license’s expiration date to any applicant for renewal that has not provided a certificate of good |
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74 | 74 | | 47standing and tax compliance from the department of revenue dated on or before the date of |
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75 | 75 | | 48expiration of the license. The commission shall suspend or revoke the license of any applicant |
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76 | 76 | | 49for renewal who fails to comply with this section pursuant to section 4 of this chapter. |
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77 | 77 | | 50 SECTION 7. Section 7 of chapter 94G, as so appearing, is hereby amended by striking |
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78 | 78 | | 51paragraph 1 of subsection (a) and inserting in place thereof the following words:- 4 of 12 |
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79 | 79 | | 52 (1) possessing, using, purchasing, processing and/or manufacturing not more than the 2 |
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80 | 80 | | 53ounce equivalency of marijuana, marijuana concentrate, edible, beverage, and other ingestible |
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81 | 81 | | 54products combined; |
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82 | 82 | | 55 SECTION 8. Section 12 of chapter 94G, as so appearing, is hereby amended by inserting |
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83 | 83 | | 56the following subsections:- |
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84 | 84 | | 57 (i)(1) Any employee, agent, volunteer or other person required by the regulations |
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85 | 85 | | 58promulgated pursuant to section 4 shall register with the commission prior to engaging in any |
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86 | 86 | | 59on-site services to a marijuana establishment or laboratory related to the cultivation, harvesting, |
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87 | 87 | | 60preparation, packaging, storage, testing or dispensing of marijuana. The commission shall issue |
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88 | 88 | | 61a single agent registration card to an individual, which agent registration card shall entitle the |
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89 | 89 | | 62holder to provide such services at one or more marijuana establishments or laboratories. An |
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90 | 90 | | 63agent registration card shall be valid for seven years from the date of issuance. A licensee shall |
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91 | 91 | | 64verify the validity of the agent registration cards, but shall not be required to obtain agent |
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92 | 92 | | 65registration cards on behalf of its employees, agents, volunteers or other persons required by the |
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93 | 93 | | 66regulations promulgated pursuant to section 4. |
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94 | 94 | | 67 (2) The commission shall not require a fee for agent registration card requests made by a |
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95 | 95 | | 68verified employee of any social equity businesses. |
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96 | 96 | | 69 SECTION 9. Section 15 of chapter 94G, as so appearing, is hereby amended by inserting |
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97 | 97 | | 70in the first sentence of subsection (a) paragraph (1) after the word “resources” the following |
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98 | 98 | | 71words:- provided that the commission shall not require sampling of any batch of marijuana less |
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99 | 99 | | 72than 40 pounds. 5 of 12 |
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100 | 100 | | 73 SECTION 10. Section 16 of chapter 94G of the General Laws is hereby amended by |
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101 | 101 | | 74striking out the existing language in its entirety and inserting in place thereof the following |
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102 | 102 | | 75section:- |
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103 | 103 | | 76 Section 16. (a) No Person or Entity having Direct or Indirect Control may become a |
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104 | 104 | | 77licensee or Person or Entity having Direct or Indirect Control of more than 9 marijuana retailers, |
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105 | 105 | | 783 medical marijuana treatment center licenses, 3 marijuana product manufacturer licenses and 3 |
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106 | 106 | | 79marijuana cultivator licenses, provided further that the commission shall not grant any license |
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107 | 107 | | 80where such licensee or Person or Entity having Direct or Indirect Control would become a |
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108 | 108 | | 81licensee or Person or Entity having Direct or Indirect Control of four or more marijuana retailers |
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109 | 109 | | 82through the application for a new license. A licensee or Person or Entity having Direct or |
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110 | 110 | | 83Indirect Control may only become a licensee or Person or Entity having Direct or Indirect |
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111 | 111 | | 84Control of four or more marijuana retailers through a change of ownership or control request of a |
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112 | 112 | | 85marijuana retailer license in good standing with the commission on the effective date of this |
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113 | 113 | | 86section; |
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114 | 114 | | 87 SECTION 11. Chapter 94G, as so appearing, is hereby further amended by adding the |
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115 | 115 | | 88following sections:- |
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116 | 116 | | 89 Section 23. (a) Notwithstanding section 4(a)(x) and section 5 of this chapter, or any other |
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117 | 117 | | 90general or special law, rule, regulation, or order to the contrary, from the effective date of this |
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118 | 118 | | 91section until 180 days after the publication of the report Joint Committee on Cannabis Policy of |
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119 | 119 | | 92the General Court pursuant to subsection (b), the commission shall not issue any marijuana |
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120 | 120 | | 93retailer, marijuana cultivator or marijuana product manufacturer license to any person, except |
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121 | 121 | | 94through the grant of an application for change of ownership or control, unless such person has 6 of 12 |
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122 | 122 | | 95submitted a marijuana establishment license application that has been deemed complete by the |
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123 | 123 | | 96commission prior to the effective date of this section or unless such person is a participant in the |
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124 | 124 | | 97social equity program established by section 22 of this chapter. |
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125 | 125 | | 98 (b) The Joint Committee on Cannabis Policy of the General Court shall conduct and |
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126 | 126 | | 99publish a study analyzing the profitability and economic health of businesses licensed under this |
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127 | 127 | | 100chapter. The study shall analyze the appropriate number of licenses to be licensed under this |
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128 | 128 | | 101chapter, the adequacy of cannabis supply for patients and consumers, or whether an oversupply |
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129 | 129 | | 102harms market participants, and the adequacy of the commission’s enforcement of its regulations |
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130 | 130 | | 103with respect to cultivation tiers. |
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131 | 131 | | 104 (c) This section shall be effective upon passage. |
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132 | 132 | | 105 SECTION 12. Chapter 94G, as so appearing, is hereby further amended by adding the |
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133 | 133 | | 106following sections:- |
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134 | 134 | | 107 Section 24. (a) As used in sections 23-24, the following words shall, unless the context |
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135 | 135 | | 108clearly requires otherwise, have the following meanings:- |
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136 | 136 | | 109 “Artificially derived”, the creation of a chemical substance by a chemical reaction that |
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137 | 137 | | 110changes the molecular structure of any chemical substance. |
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138 | 138 | | 111 “Cannabidiol (CBD)” means a nonpsychoactive cannabinoid found in the cannabis sativa |
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139 | 139 | | 112plant. CBD has the formula C21H30O2 and chemical structure, inclusive of stereochemical |
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140 | 140 | | 113variations. CBD is not tetrahydrocannabinol. |
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141 | 141 | | 114 “Cannabinoids” means compounds structurally defined as a diverse class of C21 or C22 |
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142 | 142 | | 115terpenophenolic compounds found in Cannabis sativa L., their carboxylic acids, analogs, and 7 of 12 |
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143 | 143 | | 116transformation products. Cannabinoids, for the purposes of this chapter, shall include structurally |
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144 | 144 | | 117unrelated cannabimimetic compounds. The main cannabinoids found in cannabis plants are |
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145 | 145 | | 118Tetrahydrocannabinol (THC) and Cannabidiol (CBD). In addition to THC and CBD, there are |
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146 | 146 | | 119more than 100 cannabinoids that could be identified. |
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147 | 147 | | 120 “Cannabimimetic”, a compound that is not structurally a cannabinoid, but which can |
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148 | 148 | | 121elicit a biological response similar to those produced by cannabinoids by acting directly or |
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149 | 149 | | 122indirectly on cannabinoid receptors in the body. |
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150 | 150 | | 123 “Delta-8-tetrahydrocannabinol (Delta-8-THC)”, a psychoactive cannabinoid compound |
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151 | 151 | | 124found in the Cannabis sativa plant, but does not occur in naturally significant amounts. It has the |
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152 | 152 | | 125chemical formula C21H30O2 and the chemical structure inclusive of stereochemical variations. |
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153 | 153 | | 126 “Delta-9-tetrahydrocannabinol (Delta-9-THC)”, a psychoactive cannabinoid compound |
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154 | 154 | | 127found in the Cannabis sativa plant, and the primary psychoactive compound found in marijuana. |
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155 | 155 | | 128Delta-9 THC has the formula C21H30O2 and the chemical structure inclusive of stereochemical |
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156 | 156 | | 129variations. |
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157 | 157 | | 130 “Dry weight basis”, a method of determining the percentage of a chemical in a substance |
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158 | 158 | | 131after removing the moisture from the substance. The ratio of the amount of moisture in a sample |
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159 | 159 | | 132to the amount of dry solid in a sample. |
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160 | 160 | | 133 “Decarboxylation”, a process of treating a cannabis material or product to remove |
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161 | 161 | | 134carboxyl groups from the cannabinoids native in the plant, to form transformation products such |
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162 | 162 | | 135as THC and CBD. Decarboxylation is commonly accomplished by application of heat. |
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163 | 163 | | 136Decarboxylation is not considered a synthetic process. 8 of 12 |
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164 | 164 | | 137 “Hemp-derived cannabinoid product”, a product derived from hemp intended for human |
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165 | 165 | | 138consumption, by means including, but not limited to ingestion, injection or inhalation, that |
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166 | 166 | | 139contains more than .5 milligrams of total tetrahydrocannabinol (THC) per any serving or other |
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167 | 167 | | 140individual unit, and 2.5 milligrams per multi-serving package, container, or packages or |
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168 | 168 | | 141containers sold as a single unit. |
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169 | 169 | | 142 “Intoxicating tetrahydrocannabinols”, naturally occurring, synthetically derived, |
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170 | 170 | | 143artificially derived, isomerized, or synthetically converted tetrahydrocannabinols which, when |
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171 | 171 | | 144consumed, have the potential to induce disturbances in nervous system function and may result |
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172 | 172 | | 145in changes in cognition, perception, judgement, mood, consciousness, or behavior, that resolve |
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173 | 173 | | 146with time. |
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174 | 174 | | 147 “Isomers”, molecules or polyatomic ions with identical molecular formulae (i.e., the |
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175 | 175 | | 148same number of atoms of each element) but distinct arrangements of atoms in space. |
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176 | 176 | | 149 “Isomerization”, is the process in which a molecule, polyatomic ion or molecular |
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177 | 177 | | 150fragment is transformed into an isomer with a different chemical structure. |
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178 | 178 | | 151 “Tetrahydrocannabinol (THC)”, (i) all naturally, synthetically or artificially derived |
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179 | 179 | | 152tetrahydrocannabinols, or any structural, optical or geometric isomers or analogs of |
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180 | 180 | | 153tetrahydrocannabinols, which include but are not limited to, Delta-1 tetrahydrocannabinol; Delta- |
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181 | 181 | | 1546 tetrahydrocannabinol; Delta 3,4 tetrahydrocannabinol; Delta-8 tetrahydrocannabinol; Delta-9 |
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182 | 182 | | 155tetrahydrocannabinol; Delta-10 tetrahydrocannabinol, Delta-11 tetrahydrocannabinol; (ii) any |
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183 | 183 | | 156other intoxicating tetrahydrocannabinols, (iii) any other naturally or artificially derived |
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184 | 184 | | 157cannabinoid that has an intoxicating or psychoactive effect; and (iv) any other chemically similar |
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185 | 185 | | 158compound, substance, derivative, or isomer of tetrahydrocannabinol. 9 of 12 |
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186 | 186 | | 159 “Tetrahydrocannabiolic acid (THCA)”, a naturally occurring cannabinoid compound |
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187 | 187 | | 160found in the cannabis sativa plant. THCA is the precursor to THC through decarboxylation. |
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188 | 188 | | 161THCA has the chemical formula C22H30O4. |
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189 | 189 | | 162 (b) No person may engage in the sale or transfer of hemp-derived cannabinoid products |
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190 | 190 | | 163or Tetrahydrocannabiolic acid (THCA) without receiving an intoxicating hemp endorsement |
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191 | 191 | | 164from the commission. The commission shall impose and collect fees pursuant to section 4 for |
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192 | 192 | | 165intoxicating hemp endorsements. |
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193 | 193 | | 166 (c) The commission shall promulgate any necessary regulations to implement this section |
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194 | 194 | | 167within 90 days of the effective date. |
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195 | 195 | | 168 (d) This section shall not be construed to prevent the cultivation and production of hemp |
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196 | 196 | | 169pursuant to sections 116-123 of chapter 128 of the General Laws, or to prevent the interstate |
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197 | 197 | | 170transportation of hemp or hemp-derived products in compliance with federal law. |
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198 | 198 | | 171 Section 24. Whoever violates section 23(b) shall be punished by imprisonment for not |
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199 | 199 | | 172more than 1 year in the house of correction or by a fine of not more than $25,000 per day, or by |
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200 | 200 | | 173both such fine and imprisonment. |
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201 | 201 | | 174 SECTION 13. Chapter 94G of the General Laws, as so appearing, is hereby amended by |
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202 | 202 | | 175inserting after section 24 the following section:- |
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203 | 203 | | 176 Section 25. It shall be unlawful for any licensee under this chapter to receive credit, |
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204 | 204 | | 177directly or indirectly, for marijuana or marijuana products sold or delivered to any licensee |
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205 | 205 | | 178engaged in the sale of marijuana or marijuana products for a period of not more than sixty days. |
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206 | 206 | | 179Nothing in this chapter shall require any licensee to extend credit to any other licensee. The 10 of 12 |
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207 | 207 | | 180credit period shall be calculated from the date of the delivery of the marijuana or marijuana |
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208 | 208 | | 181products to the purchasing licensee to the date when the purchasing licensee discharges in full |
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209 | 209 | | 182the indebtedness for which the credit was extended. If any licensee does not discharge in full any |
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210 | 210 | | 183such indebtedness within such sixty day period, the indebtedness shall be overdue and such |
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211 | 211 | | 184licensee shall be delinquent within the meaning of this section. Within three days after a licensee |
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212 | 212 | | 185becomes delinquent, the licensee who extended the credit shall mail a letter of notice by certified |
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213 | 213 | | 186mail to the commission and a copy thereof to the delinquent licensee. The notice shall contain |
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214 | 214 | | 187the name of the delinquent licensee, the date of delivery of the marijuana and marijuana |
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215 | 215 | | 188products, the amount of the indebtedness remaining undischarged, and all available proof of the |
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216 | 216 | | 189indebtedness and delinquency. Within five days after receipt of such a letter of notice, the |
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217 | 217 | | 190commission shall post on its website the name and address only of the delinquent licensee in a |
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218 | 218 | | 191complete and current delinquent list containing the names and addresses of all delinquent |
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219 | 219 | | 192licensees. Such posting shall constitute notice to all licensees of the delinquency of such licensee. |
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220 | 220 | | 193 If a licensee is seriously damaged in his business by riot, insurrection, civil disturbance, |
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221 | 221 | | 194fire, explosion or by an act of God, so-called, the licensee may file an application with the |
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222 | 222 | | 195commission requesting that the provisions of the first paragraph of this section be suspended as |
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223 | 223 | | 196to him for a reasonable period. The commission shall set down the application for hearing within |
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224 | 224 | | 197twenty-one days and shall notify all licensees engaged in selling to said applicant of the hearing |
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225 | 225 | | 198and give all interested parties the right to be heard. Pending such hearing, the commission may, |
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226 | 226 | | 199after an investigation and determination that the facts as stated by the licensee in his application |
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227 | 227 | | 200would constitute reasonable grounds for relief, order that such licensee shall not be posted as |
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228 | 228 | | 201delinquent. If the commission finds it is in the public interest to do so, it may suspend the |
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229 | 229 | | 202application of said first paragraph with respect to the applicant for such period as it may consider 11 of 12 |
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230 | 230 | | 203to be reasonable and in the public interest. Such action shall not deprive licensees of all legal |
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231 | 231 | | 204rights available to them for the collection of the indebtedness and shall be contingent on such |
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232 | 232 | | 205terms and conditions as the commission shall determine. |
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233 | 233 | | 206 No licensee under this chapter shall sell or deliver, directly or indirectly, marijuana or |
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234 | 234 | | 207marijuana products to a licensee whose name is posted on the delinquent list, except for payment |
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235 | 235 | | 208in cash on or before delivery, and no licensee who is posted on the delinquent list shall purchase |
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236 | 236 | | 209or accept delivery of any marijuana or marijuana products except for payment in cash on or |
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237 | 237 | | 210before delivery. |
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238 | 238 | | 211 The commission shall not authorize a change of ownership or control of a licensee on the |
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239 | 239 | | 212delinquent list until all delinquencies are satisfied and the commission has removed the licensee |
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240 | 240 | | 213from the delinquent list under this section, except for approval of court-appointed receivers or |
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241 | 241 | | 214trustees under a voluntary assignment for the benefit of creditors, provided that prior approval of |
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242 | 242 | | 215such assignment is obtained from the commission after notice to all creditors has been given and |
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243 | 243 | | 216reasonable time allowed for objections by all creditors. |
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244 | 244 | | 217 Upon full discharge of the indebtedness for which a licensee was posted, the licensee |
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245 | 245 | | 218who filed the letter of notice of delinquency shall, within twenty-four hours thereafter, notify the |
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246 | 246 | | 219commission, by mailing a letter by certified mail addressed to the commission of the discharge of |
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247 | 247 | | 220the indebtedness. The commission shall immediately strike the name of the delinquent licensee |
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248 | 248 | | 221from the list. |
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249 | 249 | | 222 Notwithstanding and in lieu of any other penalty in any other provision of this chapter, |
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250 | 250 | | 223any person who violates any provision of this section shall be punished by a fine of not more |
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251 | 251 | | 224than five thousand dollars. 12 of 12 |
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252 | 252 | | 225 The provisions of this section shall apply to all credit extended after April the first, two |
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253 | 253 | | 226thousand and twenty. |
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254 | 254 | | 227 The commission shall promulgate any necessary regulations to implement this section |
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255 | 255 | | 228within 90 days of the effective date. |
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256 | 256 | | 229 SECTION 14. Chapter 128 of the General Laws, as so appearing, is hereby amended by |
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257 | 257 | | 230inserting after section 124 the following section:- |
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258 | 258 | | 231 Section 125. The attorney general may make a complaint or seek indictment against any |
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259 | 259 | | 232person for the sale of hemp or hemp-derived products that are not approved for use, ingestion, or |
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260 | 260 | | 233inhalation by consumers by the Department and the Department of Public Health where such |
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261 | 261 | | 234person does not hold a license authorizing the sale of such hemp or hemp-derived products from |
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262 | 262 | | 235the Department or the Cannabis Control Commission. Any person, 90 days after the filing of a |
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263 | 263 | | 236complaint with the attorney general, or sooner if the attorney general assents in writing, and |
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264 | 264 | | 237within 3 years after the sale of hemp or hemp-derived products, may institute and prosecute in |
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265 | 265 | | 238his own name and on his own behalf, or for others similarly situated, a civil action for injunctive |
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266 | 266 | | 239relief to enjoin the sale of such hemp or hemp-derived products and any other relief the court |
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267 | 267 | | 240may deem just and equitable. Any person instituting such action shall be deemed aggrieved and |
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268 | 268 | | 241jurisdiction for such action shall lie in the superior court department whether or not the person |
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269 | 269 | | 242has suffered monetary damages. Any person who prevails in such an action shall be awarded |
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270 | 270 | | 243treble damages, if any, the costs of the litigation and reasonable attorneys' fees. |
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