SECTION 1. Chapter 94G of the General Laws is hereby amended by striking out section 3 and inserting in place thereof the following section:

Section 3.  Local control

(a)A city or town may, by ordinance or bylaw, prohibit marijuana establishments or certain types thereof within the city or town, or limit the number of such establishments in said city or town.  Such ordinance or bylaw, or regulation promulgated pursuant thereto, may:

(1) regulate the manner of operation of marijuana establishments and of any business dealing in marijuana accessories;

(2)restrict the licensed cultivation, processing, and manufacturing of marijuana that is a public nuisance;

(3)reasonably restrict signage related to marijuana establishments; and

(4)impose a penalty for violations of such ordinances, bylaws, and regulations, not to exceed three hundred dollars for each such violation.

(b)A city or town may, by zoning ordinance or bylaw adopted pursuant to the provisions of Chapter 40A of the General Laws, regulate the use of land and structures for marijuana establishments and types thereof, and may specify districts within which such uses may be allowed, by right or upon the issuance of a special permit.

(c)The commission shall not approve an application for a license for a marijuana establishment or the operation of a marijuana-related business, including licenses that authorize the consumption of marijuana or marijuana products on the premises where sold, where the licensing would not be in compliance with ordinances, bylaws, and regulations adopted pursuant to subsections (a) and (b) of this Section 3.

(d)No city or town shall prohibit the transportation of marijuana or marijuana products.

(e)No agreement between a city or town and a marijuana establishment shall require payment of a fee to that city or town that is not directly proportional and reasonably related to the costs imposed upon the city or town by the operation of a marijuana establishment.