Bill H.4409

FILED ON: 2/5/2024

HOUSE . . . . . . . . . . . . . . . No. 4409

The Commonwealth of Massachusetts

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In the One Hundred and Ninety-Third General Court
(2023-2024)

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An Act relative to vertical integration of medical marijuana businesses.

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. Paragraph (4) of subsection (d) of Section 2 of Chapter 62 is hereby amended by striking out "medical marijuana treatment center” and inserting in place thereof the following words:-

medical marijuana establishment

SECTION 2. Paragraph (4) of Section 30 of Chapter 63 is hereby amended by striking out “medical marijuana treatment center” and inserting in place thereof the following words:-

medical marijuana establishment

SECTION 3. Section 4 of chapter 64N of the General Laws is hereby amended by inserting after the words “medical marijuana treatment center” the following:-

, medical marijuana establishment,

SECTION 4. Section 1 of chapter 94I of the General Laws is hereby amended by striking the definitions of “Card holder”, “Cultivation registration”, “Locked area”, “Medical marijuana treatment center”, “Medical use marijuana”, “Medical use marijuana license”, “Registration card”, and “Temporary Registration”, and inserting the following definitions:-

“Card holder”, a registered qualifying patient, personal caregiver or agent of a medical marijuana establishment who has been issued and possesses a valid registration card.

“Cultivation registration”, a registration issued to a fully integrated medical marijuana treatment center or medical marijuana cultivator to grow medical use marijuana under the terms of this chapter, or to a qualified patient or personal caregiver.

“Fully integrated medical marijuana treatment center” a medical marijuana-related business licensed by the commission with the ability to cultivate, manufacture, process, and sell medical use marijuana to qualifying patients, personal caregivers, and medical marijuana establishments.

“Locked area”, a closet, room, greenhouse or other indoor or outdoor area equipped with locks or other security devices, accessible only to registered and authorized medical marijuana establishment employees, registered qualifying patients or registered personal caregivers.

''Medical marijuana establishment'', a medical marijuana cultivator, medical marijuana product manufacturer, fully integrated medical marijuana treatment center, medical marijuana retailer or any other type of medical marijuana-related business licensed by the commission.

''Medical marijuana treatment center'', the premises approved under a fully integrated medical marijuana treatment center license

“Medical use marijuana”, marijuana or marijuana accessories sold by a medical marijuana establishment or a fully integrated medical marijuana treatment center to a card holder for medical use or marijuana or marijuana accessories possessed by a qualifying patient under a cultivation registration.

“Medical use marijuana license”, a license issued by the commission that permits the licensee to operate a medical marijuana establishment or a fully integrated medical marijuana treatment center.

“Pre-existing Medical Marijuana Treatment Center,” a fully integrated medical marijuana treatment center licensed prior to the availability of medical marijuana cultivator, medical marijuana product manufacturer, and medical marijuana retailer license types.

“Registration card”, a personal identification card issued by the commission to a registered qualifying patient, personal caregiver, laboratory agent or agent of a medical marijuana establishment or a fully integrated medical marijuana treatment center. The registration card facilitates verification of an individual registrant's status, including, but not limited to, verification that a registered healthcare professional has provided a written or electronic certification to the qualifying patient; that the patient has designated the individual as a personal caregiver; that a laboratory agent has been registered with the commission and is authorized to possess and test marijuana; or that an agent has been registered with the commission and is authorized to work at a medical marijuana establishment or a fully integrated medical marijuana treatment center. A temporary registration issued to a qualifying patient shall be deemed a registration card.

“Temporary Registration” an interim registration document for patients and their personal caregivers generated automatically upon the commission's receipt of a healthcare professional's electronic certification. The temporary registration document shall constitute a registration card for patients and their personal caregivers to access a medical marijuana establishment or a fully integrated medical marijuana treatment center. Temporary registration shall expire 14 days after the commission issues the registration card.

SECTION 5. Subsection (c) of Section 2 of chapter 94I of the General Laws, is hereby amended by striking “medical marijuana treatment center” and inserting in place thereof the following words:-

medical marijuana establishment

SECTION 6. Section 2 of chapter 94I of the General Laws, is hereby amended by adding the following subsection:-

(f) The commission shall establish and enforce license tiers to make available separate license classes, including but not limited to: medical marijuana product manufacturer, medical marijuana cultivator, fully integrated medical marijuana treatment center, and medical marijuana retailer.

The commission shall have the power to encourage full participation in the medical marijuana industry by people from communities disproportionately harmed by cannabis prohibition and enforcement.

The commission shall promulgate or amend regulations as necessary to be consistent with this act not later than 270 days from the effective date of this act.

SECTION 7. Section 7 of chapter 94I, is hereby amended by striking the words “medical marijuana treatment centers" and inserting in place thereof the following words:-

medical marijuana establishments, and for any classes of license under subsection (f) of section 2 of this chapter,

SECTION 8. Chapter 94G is hereby amended, in section 1, by striking out the definitions of “Host community”, “Host community agreement”, and “Independent testing laboratory”, and inserting the following definitions:-

“Host community” a municipality in which a marijuana establishment or a medical marijuana establishment is located or in which an applicant has proposed locating a marijuana establishment or a medical marijuana establishment.

“Host community agreement” an agreement between a marijuana establishment or a medical marijuana establishment and a municipality pursuant to subsection (d) of section 3.

“Independent testing laboratory”, a laboratory that is licensed by the commission and is: (i) accredited to the most current International Organization for Standardization 17025 by a third-party accrediting body that is a signatory to the International Laboratory Accreditation Cooperation mutual recognition arrangement or that is otherwise approved by the commission; (ii) independent financially from any medical marijuana establishment or any licensee or marijuana establishment for which it conducts a test; and (iii) qualified to test marijuana in compliance with regulations promulgated by the commission pursuant to this chapter.

SECTION 9. Subsection (d) of Section 3 of Chapter 94G is hereby amended by striking out, in all instances, the words “marijuana establishment or medical marijuana treatment center” and inserting in place thereof the following words:-

marijuana establishment or medical marijuana establishment

SECTION 10. Clause (2)(iii) of Subsection (a) of Section 3 of Chapter 94G is hereby amended by striking out the words “medical marijuana treatment center” and inserting in place thereof the following words:-

medical marijuana establishment

SECTION 11. Subsection (f) of Section 3 of Chapter 94G is hereby amended by striking out “medical marijuana treatment centers” and inserting in place thereof the following words:-

medical marijuana establishments

SECTION 12. Clause (xx) of subsection (a½) of section 4 of Chapter 94G is hereby amended by striking out the words “medical marijuana treatment center” and inserting in place thereof the following words:-

medical marijuana establishment

SECTION 13. Clause (4) of subsection (c) of section 4 of Chapter 94G is hereby amended by striking out, in both instances, the words “medical marijuana treatment center” and inserting in place thereof the following words:-

medical marijuana establishment

SECTION 14. Clause (5) of subsection (c) of section 4 of Chapter 94G is hereby amended by striking out the words “medical marijuana treatment centers” and inserting in place thereof the following words:-

medical marijuana establishments

SECTION 15. Clause (xxxv) of subsection (a½) of section 4 of chapter 94G is hereby amended by striking out “medical marijuana treatment centers” and inserting in place thereof the following words:-

medical marijuana establishments

SECTION 16. Subsection (c) of Section 14A of Chapter 94G is hereby amended by striking out “medical marijuana treatment centers” and insetting in place thereof the following words:-

medical marijuana establishments

SECTION 17. Chapter 94G is hereby amended by striking out Section 16 and inserting in place thereof the following section:-

Section 16. No licensee shall be granted more than 3 marijuana retailer licenses, 3 fully integrated medical marijuana treatment center licenses, 3 medical marijuana retailer licenses, 3 medical marijuana product manufacturer licenses, 3 medical marijuana cultivator licenses, 3 marijuana product manufacturer licenses, or 3 marijuana cultivator licenses; provided, however, that a licensee may hold 3 marijuana retailer licenses, 3 medical marijuana retailer licenses, 3 medical marijuana product manufacturer licenses, 3 medical marijuana cultivator licenses, 3 marijuana product manufacturer licenses and 3 marijuana cultivator licenses, provided, however, that each fully integrated medical marijuana treatment center license shall be equivalent to 1 medical marijuana retail license, 1 medical marijuana cultivator license and 1 medical marijuana product manufacturer license, and provided furthermore that a licensee holding 3 fully integrated medical marijuana treatment center licenses shall be prohibited from obtaining any additional medical marijuana-related licenses.

SECTION 18. The cannabis control commission may allow pre-existing fully integrated medical marijuana treatment centers the ability to amend their license, subject to the license limit established in section 16 of chapter 94G, after the exclusivity period established in Section 1A of 94I has ended.

SECTION 19. Section 1 of chapter 94G of the General Laws is hereby amended by striking the definition of “Social equity business” and inserting the following definition:-

''Social equity business'', a marijuana establishment or medical marijuana establishment with not less than 51 per cent majority ownership of individuals who are eligible for the social equity program under section 22 or whose ownership qualifies it as an economic empowerment priority applicant as defined by the commission's regulations promulgated pursuant to section 4.

SECTION 20. Chapter 94I is hereby amended by inserting after section 1 the following section:-

Section 1A. All medical marijuana establishment licenses, except for pre-existing medical marijuana treatment centers, shall be limited on an exclusive basis to businesses controlled by and with majority ownership comprised of economic empowerment applicants or social equity businesses for a period of 36 months from the date the first such license types receive a notice to commence operations; provided, however, that the commission may vote to extend that period following an evidence-based determination that the goal of the exclusivity period to promote and encourage full participation in the regulated medical marijuana industry by people from communities that have previously been disproportionately harmed by marijuana prohibition and enforcement of the law has not been met. 

If data collected by the commission demonstrates progress toward the goals and objectives of the exclusivity period as set forth in this section and that demand by registered qualifying patients is likely to exceed the supply that could be provided by businesses that meet the exclusivity requirements during the exclusivity period, the commission may vote during the exclusivity period to allow the following additional businesses to own medical marijuana establishments: 

Craft marijuana cooperatives as defined in 935 CMR 500.002

Massachusetts Minority Business Enterprises (MBE), Women Business Enterprises (WBE), and Veteran Business Enterprises (VBE) with valid certification from the Supplier Diversity Office provided for in Section 61 of Chapter 7. 