Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S99 Compare Versions

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22 SENATE DOCKET, NO. 2198 FILED ON: 1/17/2025
33 SENATE . . . . . . . . . . . . . . No. 99
44 The Commonwealth of Massachusetts
55 _________________
66 PRESENTED BY:
77 Jacob R. Oliveira
88 _________________
99 To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
1010 Court assembled:
1111 The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
1212 An Act for cannabis market modernization.
1313 _______________
1414 PETITION OF:
1515 NAME:DISTRICT/ADDRESS :Jacob R. OliveiraHampden, Hampshire and Worcester 1 of 12
1616 SENATE DOCKET, NO. 2198 FILED ON: 1/17/2025
1717 SENATE . . . . . . . . . . . . . . No. 99
1818 By Mr. Oliveira, a petition (accompanied by bill, Senate, No. 99) of Jacob R. Oliveira for
1919 legislation to modernize cannabis market. Cannabis Policy.
2020 The Commonwealth of Massachusetts
2121 _______________
2222 In the One Hundred and Ninety-Fourth General Court
2323 (2025-2026)
2424 _______________
2525 An Act for cannabis market modernization.
2626 Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
2727 of the same, as follows:
2828 1 SECTION 1. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
2929 2amended by inserting as new definitions:-
3030 3 “Agent registration card”, the identification card currently and validly issued by the
3131 4commission to a marijuana establishment or laboratory employee or agent, but not to a licensee,
3232 5which shall entitle the holder to perform services marijuana establishments or laboratories.
3333 6 SECTION 2. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
3434 7amended by inserting after the definition of “Mycotoxin” the following definitions:-
3535 8 “Person or Entity Having Direct Control”, any person or entity having direct control over
3636 9the operations of a marijuana establishment, which satisfies one or more of the following criteria:
3737 10 (a) An owner; 2 of 12
3838 11 (b) A person or entity that possesses a voting interest of 25 percent or greater in a
3939 12marijuana establishment;
4040 13 (c) A close associate;
4141 14 (d) A person or entity that has the right to control or authority, through contract or
4242 15otherwise including, but not limited to: (1) To appoint more than 50% of the directors or their
4343 16equivalent; (2) To appoint or remove corporate-level officers or their equivalent; or (3) To earn
4444 1725 percent or more of the profits or collect more than 25 percent of the dividends.
4545 18 (e) A court appointee or assignee pursuant to an agreement for a general assignment or
4646 19assignment for the benefit of creditors; or
4747 20 (f) A third-party technology platform provider that possesses any financial interest in a
4848 21marijuana delivery licensee including, but not limited to, a delivery agreement or other
4949 22agreement for services.
5050 23 “Person or Entity Having Indirect Control”, any person or entity having indirect control
5151 24over operations of a marijuana establishment. It specifically includes any person or entity having
5252 25direct control over an indirect holding or parent company of the applicant, and the chief
5353 26executive officer and executive director of those companies, or any person or entity in a position
5454 27indirectly to control the decision-making of a marijuana establishment.
5555 28 SECTION 3. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby
5656 29amended by inserting after the definition of “Production batch” the following definition:-
5757 30 “Owner”, any person or entity owning directly or indirectly through parent or holding
5858 31company, or otherwise, 25 percent or more of the interest in a licensee. 3 of 12
5959 32 SECTION 4. Section 4 of chapter 94G subsection (a1/2)(xxix), as so appearing, is hereby
6060 33amended by inserting in subsection (a1/2)(xxix)(6) after the word “marijuana” the following
6161 34words:-
6262 35 provided that the commission shall not prohibit advertising, marketing and branding of
6363 36sales, discounts, and customer loyalty programs within a Marijuana Establishment, through a
6464 37Delivery service, on an internet website maintained by a Marijuana Establishment, or through an
6565 38opt-in email marketing campaign;
6666 39 SECTION 5. Section 4 of chapter 94G, as so appearing, is hereby amended by inserting
6767 40after paragraph (6) of subsection (c) the following paragraph:-
6868 41 (7) require a marijuana retailer to check identification of any consumer or patient at any
6969 42location except the point of sale.
7070 43 SECTION 6. Section 6 of chapter 94G, as so appearing, is hereby amended by adding
7171 44after the word “Laws” as so appearing in subsection (b) the following words:-
7272 45 provided that the commission shall not renew and shall not grant any extension of the
7373 46license’s expiration date to any applicant for renewal that has not provided a certificate of good
7474 47standing and tax compliance from the department of revenue dated on or before the date of
7575 48expiration of the license. The commission shall suspend or revoke the license of any applicant
7676 49for renewal who fails to comply with this section pursuant to section 4 of this chapter.
7777 50 SECTION 7. Section 7 of chapter 94G, as so appearing, is hereby amended by striking
7878 51paragraph 1 of subsection (a) and inserting in place thereof the following words:- 4 of 12
7979 52 (1) possessing, using, purchasing, processing and/or manufacturing not more than the 2
8080 53ounce equivalency of marijuana, marijuana concentrate, edible, beverage, and other ingestible
8181 54products combined;
8282 55 SECTION 8. Section 12 of chapter 94G, as so appearing, is hereby amended by inserting
8383 56the following subsections:-
8484 57 (i)(1) Any employee, agent, volunteer or other person required by the regulations
8585 58promulgated pursuant to section 4 shall register with the commission prior to engaging in any
8686 59on-site services to a marijuana establishment or laboratory related to the cultivation, harvesting,
8787 60preparation, packaging, storage, testing or dispensing of marijuana. The commission shall issue
8888 61a single agent registration card to an individual, which agent registration card shall entitle the
8989 62holder to provide such services at one or more marijuana establishments or laboratories. An
9090 63agent registration card shall be valid for seven years from the date of issuance. A licensee shall
9191 64verify the validity of the agent registration cards, but shall not be required to obtain agent
9292 65registration cards on behalf of its employees, agents, volunteers or other persons required by the
9393 66regulations promulgated pursuant to section 4.
9494 67 (2) The commission shall not require a fee for agent registration card requests made by a
9595 68verified employee of any social equity businesses.
9696 69 SECTION 9. Section 15 of chapter 94G, as so appearing, is hereby amended by inserting
9797 70in the first sentence of subsection (a) paragraph (1) after the word “resources” the following
9898 71words:- provided that the commission shall not require sampling of any batch of marijuana less
9999 72than 40 pounds. 5 of 12
100100 73 SECTION 10. Section 16 of chapter 94G of the General Laws is hereby amended by
101101 74striking out the existing language in its entirety and inserting in place thereof the following
102102 75section:-
103103 76 Section 16. (a) No Person or Entity having Direct or Indirect Control may become a
104104 77licensee or Person or Entity having Direct or Indirect Control of more than 9 marijuana retailers,
105105 783 medical marijuana treatment center licenses, 3 marijuana product manufacturer licenses and 3
106106 79marijuana cultivator licenses, provided further that the commission shall not grant any license
107107 80where such licensee or Person or Entity having Direct or Indirect Control would become a
108108 81licensee or Person or Entity having Direct or Indirect Control of four or more marijuana retailers
109109 82through the application for a new license. A licensee or Person or Entity having Direct or
110110 83Indirect Control may only become a licensee or Person or Entity having Direct or Indirect
111111 84Control of four or more marijuana retailers through a change of ownership or control request of a
112112 85marijuana retailer license in good standing with the commission on the effective date of this
113113 86section;
114114 87 SECTION 11. Chapter 94G, as so appearing, is hereby further amended by adding the
115115 88following sections:-
116116 89 Section 23. (a) Notwithstanding section 4(a)(x) and section 5 of this chapter, or any other
117117 90general or special law, rule, regulation, or order to the contrary, from the effective date of this
118118 91section until 180 days after the publication of the report Joint Committee on Cannabis Policy of
119119 92the General Court pursuant to subsection (b), the commission shall not issue any marijuana
120120 93retailer, marijuana cultivator or marijuana product manufacturer license to any person, except
121121 94through the grant of an application for change of ownership or control, unless such person has 6 of 12
122122 95submitted a marijuana establishment license application that has been deemed complete by the
123123 96commission prior to the effective date of this section or unless such person is a participant in the
124124 97social equity program established by section 22 of this chapter.
125125 98 (b) The Joint Committee on Cannabis Policy of the General Court shall conduct and
126126 99publish a study analyzing the profitability and economic health of businesses licensed under this
127127 100chapter. The study shall analyze the appropriate number of licenses to be licensed under this
128128 101chapter, the adequacy of cannabis supply for patients and consumers, or whether an oversupply
129129 102harms market participants, and the adequacy of the commission’s enforcement of its regulations
130130 103with respect to cultivation tiers.
131131 104 (c) This section shall be effective upon passage.
132132 105 SECTION 12. Chapter 94G, as so appearing, is hereby further amended by adding the
133133 106following sections:-
134134 107 Section 24. (a) As used in sections 23-24, the following words shall, unless the context
135135 108clearly requires otherwise, have the following meanings:-
136136 109 “Artificially derived”, the creation of a chemical substance by a chemical reaction that
137137 110changes the molecular structure of any chemical substance.
138138 111 “Cannabidiol (CBD)” means a nonpsychoactive cannabinoid found in the cannabis sativa
139139 112plant. CBD has the formula C21H30O2 and chemical structure, inclusive of stereochemical
140140 113variations. CBD is not tetrahydrocannabinol.
141141 114 “Cannabinoids” means compounds structurally defined as a diverse class of C21 or C22
142142 115terpenophenolic compounds found in Cannabis sativa L., their carboxylic acids, analogs, and 7 of 12
143143 116transformation products. Cannabinoids, for the purposes of this chapter, shall include structurally
144144 117unrelated cannabimimetic compounds. The main cannabinoids found in cannabis plants are
145145 118Tetrahydrocannabinol (THC) and Cannabidiol (CBD). In addition to THC and CBD, there are
146146 119more than 100 cannabinoids that could be identified.
147147 120 “Cannabimimetic”, a compound that is not structurally a cannabinoid, but which can
148148 121elicit a biological response similar to those produced by cannabinoids by acting directly or
149149 122indirectly on cannabinoid receptors in the body.
150150 123 “Delta-8-tetrahydrocannabinol (Delta-8-THC)”, a psychoactive cannabinoid compound
151151 124found in the Cannabis sativa plant, but does not occur in naturally significant amounts. It has the
152152 125chemical formula C21H30O2 and the chemical structure inclusive of stereochemical variations.
153153 126 “Delta-9-tetrahydrocannabinol (Delta-9-THC)”, a psychoactive cannabinoid compound
154154 127found in the Cannabis sativa plant, and the primary psychoactive compound found in marijuana.
155155 128Delta-9 THC has the formula C21H30O2 and the chemical structure inclusive of stereochemical
156156 129variations.
157157 130 “Dry weight basis”, a method of determining the percentage of a chemical in a substance
158158 131after removing the moisture from the substance. The ratio of the amount of moisture in a sample
159159 132to the amount of dry solid in a sample.
160160 133 “Decarboxylation”, a process of treating a cannabis material or product to remove
161161 134carboxyl groups from the cannabinoids native in the plant, to form transformation products such
162162 135as THC and CBD. Decarboxylation is commonly accomplished by application of heat.
163163 136Decarboxylation is not considered a synthetic process. 8 of 12
164164 137 “Hemp-derived cannabinoid product”, a product derived from hemp intended for human
165165 138consumption, by means including, but not limited to ingestion, injection or inhalation, that
166166 139contains more than .5 milligrams of total tetrahydrocannabinol (THC) per any serving or other
167167 140individual unit, and 2.5 milligrams per multi-serving package, container, or packages or
168168 141containers sold as a single unit.
169169 142 “Intoxicating tetrahydrocannabinols”, naturally occurring, synthetically derived,
170170 143artificially derived, isomerized, or synthetically converted tetrahydrocannabinols which, when
171171 144consumed, have the potential to induce disturbances in nervous system function and may result
172172 145in changes in cognition, perception, judgement, mood, consciousness, or behavior, that resolve
173173 146with time.
174174 147 “Isomers”, molecules or polyatomic ions with identical molecular formulae (i.e., the
175175 148same number of atoms of each element) but distinct arrangements of atoms in space.
176176 149 “Isomerization”, is the process in which a molecule, polyatomic ion or molecular
177177 150fragment is transformed into an isomer with a different chemical structure.
178178 151 “Tetrahydrocannabinol (THC)”, (i) all naturally, synthetically or artificially derived
179179 152tetrahydrocannabinols, or any structural, optical or geometric isomers or analogs of
180180 153tetrahydrocannabinols, which include but are not limited to, Delta-1 tetrahydrocannabinol; Delta-
181181 1546 tetrahydrocannabinol; Delta 3,4 tetrahydrocannabinol; Delta-8 tetrahydrocannabinol; Delta-9
182182 155tetrahydrocannabinol; Delta-10 tetrahydrocannabinol, Delta-11 tetrahydrocannabinol; (ii) any
183183 156other intoxicating tetrahydrocannabinols, (iii) any other naturally or artificially derived
184184 157cannabinoid that has an intoxicating or psychoactive effect; and (iv) any other chemically similar
185185 158compound, substance, derivative, or isomer of tetrahydrocannabinol. 9 of 12
186186 159 “Tetrahydrocannabiolic acid (THCA)”, a naturally occurring cannabinoid compound
187187 160found in the cannabis sativa plant. THCA is the precursor to THC through decarboxylation.
188188 161THCA has the chemical formula C22H30O4.
189189 162 (b) No person may engage in the sale or transfer of hemp-derived cannabinoid products
190190 163or Tetrahydrocannabiolic acid (THCA) without receiving an intoxicating hemp endorsement
191191 164from the commission. The commission shall impose and collect fees pursuant to section 4 for
192192 165intoxicating hemp endorsements.
193193 166 (c) The commission shall promulgate any necessary regulations to implement this section
194194 167within 90 days of the effective date.
195195 168 (d) This section shall not be construed to prevent the cultivation and production of hemp
196196 169pursuant to sections 116-123 of chapter 128 of the General Laws, or to prevent the interstate
197197 170transportation of hemp or hemp-derived products in compliance with federal law.
198198 171 Section 24. Whoever violates section 23(b) shall be punished by imprisonment for not
199199 172more than 1 year in the house of correction or by a fine of not more than $25,000 per day, or by
200200 173both such fine and imprisonment.
201201 174 SECTION 13. Chapter 94G of the General Laws, as so appearing, is hereby amended by
202202 175inserting after section 24 the following section:-
203203 176 Section 25. It shall be unlawful for any licensee under this chapter to receive credit,
204204 177directly or indirectly, for marijuana or marijuana products sold or delivered to any licensee
205205 178engaged in the sale of marijuana or marijuana products for a period of not more than sixty days.
206206 179Nothing in this chapter shall require any licensee to extend credit to any other licensee. The 10 of 12
207207 180credit period shall be calculated from the date of the delivery of the marijuana or marijuana
208208 181products to the purchasing licensee to the date when the purchasing licensee discharges in full
209209 182the indebtedness for which the credit was extended. If any licensee does not discharge in full any
210210 183such indebtedness within such sixty day period, the indebtedness shall be overdue and such
211211 184licensee shall be delinquent within the meaning of this section. Within three days after a licensee
212212 185becomes delinquent, the licensee who extended the credit shall mail a letter of notice by certified
213213 186mail to the commission and a copy thereof to the delinquent licensee. The notice shall contain
214214 187the name of the delinquent licensee, the date of delivery of the marijuana and marijuana
215215 188products, the amount of the indebtedness remaining undischarged, and all available proof of the
216216 189indebtedness and delinquency. Within five days after receipt of such a letter of notice, the
217217 190commission shall post on its website the name and address only of the delinquent licensee in a
218218 191complete and current delinquent list containing the names and addresses of all delinquent
219219 192licensees. Such posting shall constitute notice to all licensees of the delinquency of such licensee.
220220 193 If a licensee is seriously damaged in his business by riot, insurrection, civil disturbance,
221221 194fire, explosion or by an act of God, so-called, the licensee may file an application with the
222222 195commission requesting that the provisions of the first paragraph of this section be suspended as
223223 196to him for a reasonable period. The commission shall set down the application for hearing within
224224 197twenty-one days and shall notify all licensees engaged in selling to said applicant of the hearing
225225 198and give all interested parties the right to be heard. Pending such hearing, the commission may,
226226 199after an investigation and determination that the facts as stated by the licensee in his application
227227 200would constitute reasonable grounds for relief, order that such licensee shall not be posted as
228228 201delinquent. If the commission finds it is in the public interest to do so, it may suspend the
229229 202application of said first paragraph with respect to the applicant for such period as it may consider 11 of 12
230230 203to be reasonable and in the public interest. Such action shall not deprive licensees of all legal
231231 204rights available to them for the collection of the indebtedness and shall be contingent on such
232232 205terms and conditions as the commission shall determine.
233233 206 No licensee under this chapter shall sell or deliver, directly or indirectly, marijuana or
234234 207marijuana products to a licensee whose name is posted on the delinquent list, except for payment
235235 208in cash on or before delivery, and no licensee who is posted on the delinquent list shall purchase
236236 209or accept delivery of any marijuana or marijuana products except for payment in cash on or
237237 210before delivery.
238238 211 The commission shall not authorize a change of ownership or control of a licensee on the
239239 212delinquent list until all delinquencies are satisfied and the commission has removed the licensee
240240 213from the delinquent list under this section, except for approval of court-appointed receivers or
241241 214trustees under a voluntary assignment for the benefit of creditors, provided that prior approval of
242242 215such assignment is obtained from the commission after notice to all creditors has been given and
243243 216reasonable time allowed for objections by all creditors.
244244 217 Upon full discharge of the indebtedness for which a licensee was posted, the licensee
245245 218who filed the letter of notice of delinquency shall, within twenty-four hours thereafter, notify the
246246 219commission, by mailing a letter by certified mail addressed to the commission of the discharge of
247247 220the indebtedness. The commission shall immediately strike the name of the delinquent licensee
248248 221from the list.
249249 222 Notwithstanding and in lieu of any other penalty in any other provision of this chapter,
250250 223any person who violates any provision of this section shall be punished by a fine of not more
251251 224than five thousand dollars. 12 of 12
252252 225 The provisions of this section shall apply to all credit extended after April the first, two
253253 226thousand and twenty.
254254 227 The commission shall promulgate any necessary regulations to implement this section
255255 228within 90 days of the effective date.
256256 229 SECTION 14. Chapter 128 of the General Laws, as so appearing, is hereby amended by
257257 230inserting after section 124 the following section:-
258258 231 Section 125. The attorney general may make a complaint or seek indictment against any
259259 232person for the sale of hemp or hemp-derived products that are not approved for use, ingestion, or
260260 233inhalation by consumers by the Department and the Department of Public Health where such
261261 234person does not hold a license authorizing the sale of such hemp or hemp-derived products from
262262 235the Department or the Cannabis Control Commission. Any person, 90 days after the filing of a
263263 236complaint with the attorney general, or sooner if the attorney general assents in writing, and
264264 237within 3 years after the sale of hemp or hemp-derived products, may institute and prosecute in
265265 238his own name and on his own behalf, or for others similarly situated, a civil action for injunctive
266266 239relief to enjoin the sale of such hemp or hemp-derived products and any other relief the court
267267 240may deem just and equitable. Any person instituting such action shall be deemed aggrieved and
268268 241jurisdiction for such action shall lie in the superior court department whether or not the person
269269 242has suffered monetary damages. Any person who prevails in such an action shall be awarded
270270 243treble damages, if any, the costs of the litigation and reasonable attorneys' fees.