HOUSE DOCKET, NO. 4628        FILED ON: 3/5/2018

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4284

The Commonwealth of Massachusetts

_________________

March 5, 2018

To the Honorable Senate and House of Representatives,

I am filing for your consideration a bill entitled “An Act Making Appropriations for Fiscal Year 2018 to Provide for Supplementing Certain Existing Appropriations and for Certain Other Activities and Projects.”

This bill consists of $5.4 million in supplemental appropriations to fund a ratified collective bargaining agreement, a retained revenue ceiling increase for the Inspector General, and a public awareness campaign related to the upcoming retail sale of adult use marijuana.  In the absence of supplemental funding, these costs would remain unfunded despite the $104 million deficiency reserve that was established in the FY18 GAA.  That reserve has been budgeted for sheriffs’ FY17 payroll costs, a student assessment contract, certain collective bargaining commitments that predate FY18, the costs of indigent legal defense, and the costs of snow and ice removal. 

The spending items recommended in this bill include:

•$3.4 million to fund a ratified collective bargaining agreement recently executed with the American Federation of State, County, and Municipal Employees;

•a $50,000 increase to the Inspector General’s retained revenue ceiling, to allow the Inspector General to collect more procurement training fees and spend them on trainings;

•$2 million for a public awareness campaign to be administered by the Department of Public Health for the Cannabis Control Commission, which would educate the public on responsible use of marijuana in the period leading up to the commencement of retail sales of adult use marijuana. 

The bill includes a number of minor amendments and corrections to the statutes regulating adult use marijuana and medical use marijuana in the Commonwealth.  The proposed sections are designed to clarify and simplify the administration of certain provisions of the marijuana laws while continuing to adhere to the intent of the Massachusetts voters and the General Court.  We have developed the amendments in consultation with staff at the Cannabis Control Commission.

The bill also includes a section to clarify that when the Attorney General reviews proposed transactions that involve the conversion or sale of a non-profit hospital or health plan to a for-profit entity and assesses the surviving entity (as provided under existing law) to cover the costs of that review, the Attorney General may expend that assessment without further appropriation.

Sufficient revenues are estimated to be available to finance these appropriations.  Because at least one item requires supplemental funding in March, I urge you to enact this legislation promptly.

Respectfully submitted

Charles D. Baker,

Governor

HOUSE  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  No. 4284

The Commonwealth of Massachusetts

_______________

In the One Hundred and Ninetieth General Court
(2017-2018)

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An Act making appropriations for the fiscal year 2018 to provide for supplementing certain existing appropriations and for certain other activities and projects.

Whereas, The deferred operation of this act would tend to defeat its purposes, which are to which are forthwith to make supplemental appropriations for fiscal year 2018 and to make certain changes in law, each of which is immediately necessary to carry out those appropriations or to accomplish other important public purposes, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
 

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:
 

SECTION 1.To provide for supplementing certain items in the general appropriation act and other appropriation acts for fiscal year 2018, the sums set forth in section 2 are hereby appropriated from the General Fund unless specifically designated otherwise in this act or in those appropriation acts, for the several purposes and subject to the conditions specified in this act or in those appropriation acts, and subject to the laws regulating the disbursement of public funds for the fiscal year ending June 30, 2018.  These sums shall be in addition to any amounts previously appropriated and made available for the purposes of those items. 

SECTION 2.

OFFICE OF THE INSPECTOR GENERAL

Reserves

0910-0210Public Purchasing Certified Program Retained Revenue$50,000

CANNABIS CONTROL COMMISSION

Cannabis Control Commission

1070-0840Cannabis Control Commission... $2,000,000

EXECUTIVE OFFICE FOR ADMINISTRATION AND FINANCE

Reserves

1599-4448Collective Bargaining Contract Costs$3,400,000

SECTION 3. Section 21 of chapter 62C of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by striking out, in line 162, the words “chapter 64L” and inserting in place thereof the following words:- chapter 64L or the local option tax imposed pursuant to section 3 of chapter 64N.

SECTION 4.  Section 6 of chapter 64H of the General Laws, as so appearing, is hereby amended by inserting after the word “provided,” in line 98, the following words:- marijuana products intended for consumption as defined in section 1 of chapter  94G,.

SECTION 5. Section 3 of chapter 94G, as amended by chapter 55 of the acts of 2017, is hereby further amended by striking out in paragraph (1) of subsection (a) the words “(i) prevent the conversion of a medical marijuana treatment center licensed or registered not later than July 1, 2017 engaged in the cultivation, manufacture or sale of marijuana or marijuana products to a marijuana establishment engaged in the same type of activity under this chapter;” and inserting in place thereof the following words:-

(i) prevent a medical marijuana treatment center licensed or registered not later than July 1, 2017 engaged in the cultivation, manufacture or sale of marijuana or marijuana products from engaging in the same type of activity under this chapter;.

SECTION 6. Said section 3 of said chapter 94G, as so amended, is hereby further amended by striking out paragraph (2) of subsection (a) and inserting in place thereof the following paragraph: -

(2)  limit the number of marijuana establishments in the city or town, provided, however, that, in the case of a city or town in which the majority of voters voted in the affirmative for question 4 on the 2016 state election ballot, entitled “Legalization, Regulation, and Taxation of Marijuana,” and, after December 31, 2019 in the case of any other city or town, the city or town shall submit any such by-law or ordinance for approval to the voters pursuant to the procedure in subsection (e) if it would:.

SECTION 7.  Said section 3 of said chapter 94G, as so amended, is hereby further amended by striking out subsection (b) and inserting in place thereof the following subsection:-

(b)  The city council of a city and the board of selectmen or town council of a town shall, upon the filing with the city or town clerk of a petition meeting the requirements of this subsection and signed by not fewer than 10 per cent of the number of voters of such city or town voting at the preceding biennial state election, request that the question of whether to allow, in such city or town, the sale of marijuana and marijuana products for consumption on the premises where sold be submitted to the voters of such city or town, shall cause the following question to be placed on the ballot:

Shall this [city or town] allow the sale of marijuana products, as those terms are defined in G.L. c.94G, §1, for consumption on the premises where sold, a summary of which appears below?

A fair and concise summary of the question shall be prepared by the city solicitor or town counsel.

If a majority of the votes cast in the city or town are not in favor of allowing the consumption of marijuana or marijuana products on the premises where sold, such city or town shall not have authorized the consumption of marijuana and marijuana products on the premises where sold.

The petition shall be on a form prepared by the secretary of the commonwealth, and shall be submitted forthwith after filing to the board of registrars or election commissioners who shall have seven days after receipt to certify the signatures of registered voters.  Upon certification of the signatures, the question shall be placed upon the ballot at the next occurring regular municipal or state election, provided that the question may only appear on a municipal ballot for an election to be held at least 35 days after certification.  To have the question appear on the biennial state election, the city or town clerk must provide notice, including the ballot question and summary as prepared by the city solicitor or town counsel, to the secretary of the commonwealth no later than the first Wednesday in August before that election.

SECTION 8. Said section 3 of  said chapter 94G of the General Laws, as so amended, is hereby further amended by striking out the second sentence of subsection (d) and inserting in place thereof the following sentence:- An agreement between a marijuana establishment or a medical marijuana treatment center and a host community may include a community impact fee for the host community; provided, however, that the community impact fee shall be reasonably related to the costs imposed upon the municipality by the operation of the marijuana establishment or medical marijuana treatment center and shall not amount to more than 3 per cent of the gross sales of the marijuana establishment or medical marijuana treatment center or be effective for longer than 5 years; provided further, however, that these limitations shall not apply to a host community agreement for a medical marijuana treatment center that was entered into before July 1, 2017.

SECTION 9. Said section 3 of  said chapter 94G of the General Laws, as so amended, is hereby further amended by adding to subsection (d) the following paragraph:- Notwithstanding section 53 of chapter 44 or any other general or special law to the contrary, a city or town that receives payment pursuant to a host community agreement entered into with a marijuana establishment licensed under this chapter or with a medical marijuana treatment center registered under chapter 94I shall establish a separate account into which the impact fees or other payments shall be deposited.  In each fiscal year, the amount of the estimated receipts from the fees and other payments under the host agreement may be appropriated by city or town for the purposes specified in such agreement.  Any balance in the account at the end of the fiscal year shall be available for appropriation in the next fiscal year.  Any deficit in the account at the end of the fiscal year must be raised by taxation, unless the city or town has otherwise provided, and shall be subject to all applicable provisions of chapter 59.

SECTION 10  Said section 3 of said chapter 94G, as so amended, is hereby further amended by striking out subsection (e) and inserting in place thereof the following subsection:-

(e) If an ordinance or by-law must be submitted for approval pursuant to subsection (a)(2), the following procedures will be followed:

(1) The city solicitor or town counsel shall prepare a fair and concise summary of the proposed ordinance or by-law which will make clear the number and types of marijuana establishments which will be permitted to operate under the proposed ordinance and by-law and shall be included on the ballot.

(2) A ballot shall be prepared asking "Shall the following [by-law or ordinance] be in effect in [city or town]?” [solicitor/counsel summary] [full text of by-law or ordinance]

(3) If the majority of the votes cast in answer to the question are in the affirmative, the by-law or ordinance shall be in effect, but if the majority is in the negative, the by-law or ordinance shall have no legal effect.

A ballot question under this subsection may be placed on the ballot at a regular or special election held by the city or town by a vote of the board of selectmen or city or town council, with the approval of the mayor, and subject to a municipal charter, if applicable.

SECTION 11.   Section 4 of said chapter 94G, as so amended, is hereby further amended by striking out paragraph (x) of subsection (a ½) and inserting in place thereof the following paragraph:-

(x)requirements for fingerprinting and any other methods of identification of an applicant for a license or a licensee that the commission may adopt;

SECTION 12.  Section 9 of said chapter 94G, as so amended, is hereby further amended by adding the following subsection:-

(c)an entity required to register with the secretary of the commonwealth pursuant to chapters 156C, 156D, or 180 and organized for the purpose of operating as a licensed marijuana establishment in the commonwealth may specify as its lawful corporate purpose the conduct of all activities of a marijuana establishment authorized by this chapter.

SECTION 13.   Section 13 of said chapter 94G, as so amended, is hereby further amended by striking out in the second sentence of subsection (a) the words “section 8” and inserting in place thereof the following words:- section 7.

SECTION 14.   Section 15 of said chapter 94G, as amended by Chapter 55 of the Acts of 2017, is hereby further amended by striking out in the third sentence of paragraph 5 of subsection (b) the words “may include” and inserting in place thereof the following words:- shall include.

SECTION 15.  Section 2 of chapter 94I of the General Laws, as inserted by section 44 of chapter 55 of the acts of 2017, is hereby amended by striking out subsection (b)(2) and inserting in place thereof the following subsection:-

(b)(2) A qualifying patient or a personal caregiver shall not be subject to arrest or prosecution, or civil penalty, for medical use marijuana possessed or provided as authorized by this chapter.

SECTION 16.  Said section 2 of said chapter 94I, as so inserted, is hereby further amended by inserting by adding the following subsection:-

(f)an entity required to register with the secretary of the commonwealth pursuant to chapters 156C, 156D, or 180 and organized for the purpose of operating as a registered marijuana treatment center in the commonwealth may specify as its lawful corporate purpose the conduct of all activities of a marijuana treatment center authorized by this chapter.

SECTION 17. Section 8A of chapter 180 of the General Laws, as appearing in the 2016 Official Edition, is hereby amended by inserting after the word “amounts,” in line 52, the following words:- , not subject to appropriation,.

SECTION 18. Section 56 of chapter 55 of the acts of 2017 is hereby amended by striking out paragraph (i) of subsection (a) and inserting in place thereof the following paragraph:-

(i)  are registered marijuana dispensaries with a final or a provisional certificate of registration in good standing with the department of public health pursuant to 105 CMR 725.00; or.

SECTION 19. Section 72 of chapter 55 of the acts of 2017 is hereby amended by striking out the final sentence and inserting in place thereof the following sentence:- Notwithstanding any law to the contrary, neither the entity conversion nor the issuance of any shares, interests, or other securities, obligations, rights to acquire interests or other securities, cash, other property or any combination of the foregoing, set forth in and necessary to effect the plan of entity conversion shall be subject to taxation or result in the imposition of any tax by the commonwealth.

SECTION 20. Item 0910-0210 of section 2 of chapter 47 of the acts of 2017 is hereby amended by striking out the figure “$850,000” and inserting in place thereof the following figure:- $900,000

SECTION 21. Sections 6 and 10 shall not apply retroactively and shall not affect votes already completed under section 3 of chapter 94G of the General Laws, subsections (a)(2) and (e). Any votes under those subsections after the effective date of this act, however, shall be subject to said sections 6 and 10.

SECTION 22.  The salary adjustments and other economic benefits authorized by the following collective bargaining agreement shall be effective for the purposes of section 7 of chapter 150E of the General Laws:

(1) Between the Commonwealth of Massachusetts and the American Federation of State, County and Municipal Employees, Unit 2.