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 municipal government may vote to prohibit the location of marijuana establishments or to prohibit certain types of marijuana establishments within the borders of the municipality by a majority vote of the governing body. Prior to any vote of the municipal government, the body shall hold not less than 1 public hearing and shall notify the residents of the municipality appropriately.

(b) A municipality may adopt ordinances and by-laws that impose reasonable safeguards on the operation of marijuana establishments that:

(1) govern the time, place and manner of marijuana establishment operations and of any business dealing in marijuana accessories;

(2) limit the number of marijuana establishments in the municipality;

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

(4) establish restrictions on public signage related to marijuana establishments; and

(5) establish a civil penalty for violation of an ordinance or by-law enacted pursuant to this subsection, similar to a penalty imposed for violation of an ordinance or by-law relating to alcoholic beverages.

(c) The commission shall not approve an application for a license for a marijuana establishment if the license will violate the provision of any local by-law or ordinance established under subsection (b).

(d) No municipality shall prohibit the transportation of marijuana.

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