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