SECTION 1. Chapter 23A of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by adding the following section:-
SECTION 47. (a) There shall be established and set up on the books of the commonwealth an Cannabis Community Empowerment Fund, referred to in this section as the fund, within the Massachusetts Development Finance Agency, referred to in this section as the agency. In carrying out its duties under this section, the agency may utilize the fund as provided in this section to offer low- or no-interest loans to eligible businesses as specified in subsection (c). The fund shall be administered and managed by a fund director who shall be appointed by the executive director of the agency. The agency may adopt guidelines necessary to implement the program. The fund may coordinate with other agencies and instrumentalities of the commonwealth to effectuate this section.
(b) The fund shall consist of: (i) revenue from appropriations or other monies authorized by the general court and specifically designated to be credited to the fund; (ii) funds from public or private sources, including, but not limited to, gifts, grants, donations, rebates and settlements received by the commonwealth that are specifically designated to be credited to the fund; (iii) funds from repayment of loans offered under this section; and (iv) any income derived from an investment of amounts credited to the fund. No expenditure shall be made from the fund which shall cause the fund to be deficient at the close of a fiscal year. Revenues deposited in the fund that are unexpended at the end of a fiscal year shall not revert to the General Fund and shall be available for expenditure in the following fiscal year; provided, however, that in the event that the total balance of the fund exceeds $100,000,000 at the end of a fiscal year, an amount equal to the total balance of the fund minus $100,000,000 shall revert to the General Fund.
(c) The agency shall use the fund to offer low- or no-interest loans to eligible businesses to provide for capitol for startup or expansion costs. Eligible businesses shall be social equity and economic empowerment applicants for state licensure pursuant to chapter 94G, as well as Massachusetts Minority Business Enterprises as certified by the State Office of Minority and Women Business Assistance and engaged in business of any kind within Areas of Disproportionate Impact as defined by the Cannabis Control Commission.
(d) The liabilities and obligations of the fund shall not extend beyond the monies which are deposited in the fund and shall not constitute a debt or pledge of the faith and credit of the commonwealth or any political subdivision of the commonwealth.
(e) Monies in or received for the fund may be deposited with and invested by any institution designated by the treasurer of the agency at the sole discretion of the treasurer and paid as the fund director shall direct. Any return on investment received by the fund as a result of the deposits and the agency's equity investments shall be deposited and held for the use and benefit of the fund. The treasurer may make payments from the deposit accounts for use under this section. The agency may be reimbursed annually from the fund for all reasonable and necessary direct costs and expenses incurred with its administration, management and operation of the fund, including reasonable staff time, out-of-pocket expenses and administrative costs, provided, however, that such annual reimbursement shall not exceed 15 per cent of deposits to the fund during the same fiscal year.
(f) The fund may apply for and accept subventions, grants, loans, advances and contributions from any source of money, property, labor or other things of value to be held, used and applied in furtherance of this section.
(g) The agency shall submit an annual report to the clerks of the senate and house of representatives who shall forward the report to the house and senate committees on ways and means, the joint committee on economic development and emerging technologies, joint committee on cannabis policy, and the joint committee on labor and workforce development by December 31. The report shall include the number of projects assisted through the fund, with a specification of the amount of loan awarded to each, a current assessment of the progress of each project funded through the fund, financial statements related to the effectiveness of the fund and such other information that would provide a fair evaluation of the program.
SECTION 2. Section 3 of chapter 94G of the General Laws, as appearing in the 2018 Official Edition, is hereby amended by striking out subsection (d) and inserting in place thereof the following subsection:-
(d) (1) A marijuana establishment or a medical marijuana treatment center, as defined in section 1 of chapter 94I, seeking to operate or continue to operate in a municipality which permits such operation shall execute an agreement with the host community setting forth the conditions to have a marijuana establishment or medical marijuana treatment center located within the host community which shall include, but not be limited to, all stipulations of responsibilities between the host community and the marijuana establishment or medical marijuana treatment center.
(2) An agreement between a marijuana retailer 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 retailer or medical marijuana treatment center and shall not amount to more than 3 per cent of the gross sales of the marijuana retailer or medical marijuana treatment center or be effective or renewed for longer than one 5 year term; provided, however, that the 5 years shall commence on the date the marijuana retailer or medical marijuana treatment center commences operation of business. The community impact fee shall encompass all payments and obligations, including, but not limited to, monetary payments, in kind contributions and charitable contributions by the marijuana establishment or medical marijuana treatment center to the municipality or any other organization pursuant to negotiations with the host community. Any other contractual financial obligation that is explicitly or implicitly a factor considered in or is a condition of an agreement shall not be enforceable; provided, however, that nothing shall preclude, nor require, a marijuana establishment or a medical marijuana treatment center from voluntarily providing organizations with in-kind contributions and charitable contributions after the execution of the host agreement.
(3) Terms and conditions related to the community impact fee shall be severable. If a term or condition related to the community impact fee is invalidated by the commission, all remaining provisions of the agreement shall remain in full force and effect. No applicant, licensee, or holder of a provisional or final certificate of registration shall be denied a license, registration, renewal thereof by the commission on the sole basis of an agreement containing an invalid term or condition related to the community impact fee.
(4) An agreement required by this subsection may be waived at the discretion of the host community with approval of the commission; provided, however, that the host community submits to the commission a written waiver executed by the host community and the marijuana establishment or medical marijuana treatment center.
(5) Any cost to a city or town imposed by the operation of a marijuana establishment or medical marijuana treatment center shall be documented and considered a public record as defined by clause Twenty-sixth of section 7 of chapter 4.
(6) The commission shall promulgate regulations necessary to carry out the provisions of this subsection.
SECTION 3. Subsection (a) of section 4 of said chapter 94G, as so appearing, is hereby amended by striking out clauses (xxvii) and (xxviii) and inserting in place thereof the following 3 clauses:-
(xxvii) monitor any federal activity regarding marijuana;
(xxviii) adopt, amend or repeal regulations for the implementation, administration and enforcement of this chapter; and
(xxix) review, regulate and enforce all host community agreements pursuant to section 3.
SECTION 4. Subsection (a 1/2) of said section 4 of said chapter 94G, as so appearing, is hereby amended by striking out clauses (xxxiii) and (xxxiv) and inserting in place thereof the following 3 clauses:-
(xxxiii) requirements that prohibit marijuana product manufacturers from altering or utilizing commercially-manufactured food products when manufacturing marijuana products unless the food product was commercially manufactured specifically for use by the marijuana product manufacturer to infuse with marijuana; provided, however, that a commercially-manufactured food product may be used as an ingredient in a marijuana product if: (i) it is used in a way that renders it unrecognizable as the commercial food product in the marijuana product; and (ii) there is no statement or advertisement indicating that the marijuana product contains the commercially-manufactured food product;
(xxxiv) energy and environmental standards for licensure and licensure renewal of marijuana establishments licensed as a marijuana cultivator or marijuana product manufacturer; and
(xxxv) requirements and procedures for host community agreements, including without limitation criteria for calculating community impact fees, consistent with subsection (d) of section 3.
SECTION 5. Notwithstanding any general or special law to the contrary, not later than October 1, 2021 and without further appropriation, the comptroller shall annually transfer $10,000,000 from the Marijuana Regulation Fund established under section 14 of chapter 94G of the General Laws to the Equitable Cannabis Industry Fund established in section 47 of chapter 23A of the General Laws.
SECTION 6. Notwithstanding any general or special law to the contrary, the Cannabis Control Commission shall allow licensees and applicants for licensure under chapter 94G of the General Laws to make voluntary contributions to the Cannabis Community Empowerment Fund established in section 47 of chapter 23A. Contributions which equal or exceed one percent of the licensee’s annual gross sales or an applicant’s anticipated annual gross sales shall satisfy the positive impact plan requirement established by 935 CMR 500.101(1)(a)11. The Cannabis Control Commission in consultation with the Massachusetts Development Finance Agency shall promulgate rules and regulations to implement this section.
SECTION 7. Notwithstanding any general or special law to the contrary, upon the expiration of any community impact fee mutually agreed upon between a marijuana retailer or a medical marijuana treatment center and its host community in accordance with section 3(d)(2) of chapter 94G, all licensed marijuana retailers or medical marijuana treatment centers shall make an annual contribution to the Cannabis Community Empowerment Fund equal to one percent of the marijuana retailer’s annual gross sales. Such contribution shall not satisfy the positive impact plan requirement established by 935 CMR 500.101(1)(a)11. The Cannabis Control Commission in consultation with the Massachusetts Development Finance Agency shall promulgate rules and regulations to implement this section.
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