Budget Amendment ID: FY2015-S4-916
EHS 916
Creating a Cannabis Commission
Mr. Joyce moved that the proposed new text be amended moved that the bill be amended by inserting at the end thereof the following new sections:
SECTION __. The General Laws are hereby further amended by inserting after chapter 23L the following chapter:-
CHAPTER 23M.
THE MASSACHUSETTS CANNABIS COMMISSION
Section 1. The General Court finds and declares that:
(1) ensuring public confidence in the integrity of the marijuana dispensary registration process and in the strict oversight of all marijuana dispensaries through a rigorous regulatory scheme is the paramount policy objective of this chapter;
(2) dispensary registration holders shall be held to the highest standards of licensing and shall have a continuing duty to maintain their integrity and financial stability;
(3) applicants for marijuana dispensary registrations and marijuana dispensary operators shall demonstrate their commitment to efforts to combat substance abuse and a dedication to community mitigation, and shall recognize that the privilege of registration bears a responsibility to identify, address and minimize any potential negative consequences of their business operations;
(4) any registration awarded by the commission shall be a revocable privilege and may be conditioned, suspended or revoked upon: (i) a breach of the conditions of registration; (ii) any civil or criminal violations of the laws of the commonwealth or other jurisdictions; or (iii) a finding by the commission that a dispensary operator is unsuitable to operate a marijuana dispensary or perform the duties of their registered position; and
(5) the power and authority granted to the commission shall be construed as broadly as necessary for the implementation, administration and enforcement of this chapter.
Section 2. As used in this chapter the following words shall, unless the context clearly requires otherwise, have the following meanings:-
“Affiliate”, a person who directly or indirectly controls, or is controlled by, or is under common control with, a specified person.
“Applicant”, a person who has applied for a license to engage in activity regulated under this chapter.
“Application”, a written request for a finding of suitability to receive a registration or engage in an activity which is regulated by this chapter.
“Business”, a corporation, sole proprietorship, partnership, limited liability company or any other organization formed for the purpose of carrying on a commercial enterprise.
“Card holder” shall mean a qualifying patient, a personal caregiver, or a dispensary agent of a medical marijuana treatment center who has been issued and possesses a valid registration card.
“Capital expenditure”, money spent by a registered dispensary operator to upgrade or maintain depreciable and tangible long-term physical assets that are capitalized on the registered dispensary operator’s books under generally accepted accounting principles and excluding expenditures or charges for the usual and customary maintenance and repair of any fixed asset.
“Chair”, the chair of the commission.
“Close associate”, a person who holds a relevant financial interest in, or is entitled to exercise power in, the business of an applicant or marijuana dispensary registration holder and, by virtue of that interest or power, is able to exercise a significant influence over the management or operation of a gaming establishment or business licensed under this chapter.
“Commission”, the Massachusetts cannabis commission established in section 2.
“Commissioner”, a member of the commission.
“Cultivation registration” shall mean a registration issued to a medical marijuana treatment center for growing marijuana for medical use under the terms of this Act, or to a qualified patient or personal caregiver under the terms of Section 11.
“Department” shall mean the Department of Public Health of the Commonwealth of Massachusetts.
“Dispensary agent” shall mean an employee, staff volunteer, officer, or board member of a non-profit medical marijuana treatment center, who shall be at least twenty-one (21) years of age.
“Division”, the division of marijuana enforcement in the office of the attorney general.
“Executive director”, the executive director of the Massachusetts cannabis commission.
“Governing body”, in a city having a Plan D or Plan E charter the city manager and city council and in any other city the mayor and the city council and in towns the board of selectmen.
“Gross revenue” or “gross marijuana revenue”, the total of all sums actually received by a registered marijuana dispensary from sales of all products.
“Grow Site” a location, approved by the commission, where marijuana is grown for legal distribution.
“Holding company”, a corporation, association, firm, partnership, trust or other form of business organization, other than a natural person, which, directly or indirectly, owns, has the power or right to control, or has the power to vote any significant part of the outstanding voting securities of a corporation or any other form of business organization which holds or applies for a dispensary registration; provided, however, that a “holding company”, in addition to any other reasonable use of the term, shall indirectly have, hold or own any such power, right or security if it does so through an interest in a subsidiary or any successive subsidiaries, notwithstanding how many such subsidiaries may intervene between the holding company and the registered dispensary operator or applicant.
“Host community”, a municipality in which a marijuana dispensary is located or in which an applicant has proposed locating a marijuana dispensary. A host community shall include another municipality if it is located within 2 miles of a registered dispensary.
“Key dispensary employee”, an employee of a marijuana dispensary who is: (i) in a supervisory capacity; (ii) empowered to make discretionary decisions which regulate dispensary operations; or (iii) so designated by the commission.
“Major policymaking position”, the executive or administrative head of the commission and any person whose salary equals or exceeds that of a state employee classified in step 1 of job group XXV of the general salary schedule in section 46 of chapter 30 and who reports directly to the commission or the administrative head of any bureau or other major administrative unit within the commission and persons exercising similar authority.
“Marijuana,” has the meaning given “marihuana” in Chapter 94C of the General Laws.
“Medical marijuana treatment center” shall mean a not-for-profit entity, as defined by Massachusetts law only, registered under this law, that acquires, cultivates, possesses, processes (including, but not limited to, development of related products such as food, tinctures, aerosols, oils, or ointments), transfers, transports, sells, distributes, dispenses, or administers marijuana, products containing marijuana, related supplies, or educational materials to qualifying patients or their personal caregivers.
“Marijuana Dispensary” shall mean any entity that that acquires, cultivates, possesses, processes (including, but not limited to, development of related products such as food, tinctures, aerosols, oils, or ointments), transfers, transports, sells, distributes, dispenses, or administers marijuana, products containing marijuana, related supplies, or educational materials for retail sale.
“Operation certificate”, a certificate of compliance issued by the commission to the operator of a registered marijuana dispensary.
“Person”, an individual, corporation, association, operation, firm, partnership, trust or other form of business association.
“Qualification” or “qualified”, the process of registration set forth by the commission to determine that all persons who have a professional interest in a marijuana dispensary meet the same standards of suitability to operate or conduct business with a dispensary.
“Registration” or “Registered Marijuana Dispensary” shall mean a medical marijuana treatment center or marijuana dispensary which has been approved by the commission or the Commonwealth of Massachusetts.
“State police”, the department of state police established in chapter 22C.
“Subsidiary”, a corporation, a significant part of whose outstanding equity securities are owned, subject to a power or right of control, or held with power to vote, by a holding company or an intermediary company, or a significant interest in a firm, association, partnership, trust or other form of business organization, other than a natural person, which is owned, subject to a power or right of control, or held with power to vote, by a holding company or an intermediary company.
“Surrounding communities”, municipalities in proximity to a host community which the commission determines experience or are likely to experience impacts from the development or operation of a marijuana dispensary, including municipalities from which the transportation infrastructure provides ready access to an existing or proposed marijuana dispensary.
“Transfer”, the sale or other method, either directly or indirectly, of disposing of or parting with property or an interest therein, or the possession thereof, or of fixing a lien upon property or upon an interest therein, absolutely or conditionally, voluntarily or involuntarily, by or without judicial proceedings, as a conveyance, sale, payment, pledge, mortgage, lien, encumbrance, gift, security or otherwise; provided, however, that the retention of a security interest in property delivered to a corporation shall be deemed a transfer suffered by such corporation.
“Section 2. (a) There shall be a Massachusetts cannabis commission which shall consist of 3 commissioners, 1 of whom shall be appointed by the governor who shall have experience in legal and policy issues related to marijuana; 1 of whom shall be appointed by the attorney general who shall have experience in criminal investigations and law enforcement; 1 of whom shall be appointed by the commissioner of the department of public health who shall have experience in public health. The governor shall designate the chair of the commission. The chair shall serve in that capacity throughout the term of appointment and until a successor shall be appointed. Prior to appointment to the commission, a background investigation shall be conducted into the financial stability, integrity and responsibility of a candidate, including the candidate’s reputation for good character, honesty and integrity. No person who has been convicted of a felony shall be eligible to serve on the commission.
(b) Each commissioner shall be a resident of the commonwealth within 90 days of appointment and, while serving on the commission, shall not: (i) hold, or be a candidate for, federal, state or local elected office; (ii) hold an appointed office in a federal, state, or local government; or (iii) serve as an official in a political party. Not more than 2 commissioners shall be from the same political party.
(c) Each commissioner shall serve for a term of 5 years or until a successor is appointed and shall be eligible for reappointment; provided, however, that no commissioner shall serve more than 10 years. A person appointed to fill a vacancy in the office of a commissioner shall be appointed in a like manner and shall serve for only the unexpired term of such commissioner. The governor may remove a commissioner if the commissioner: (i) is guilty of malfeasance in office; (ii) substantially neglects the duties of a commissioner; (iii) is unable to discharge the powers and duties of the commissioner’s office; (iv) commits gross misconduct; or (v) is convicted of a felony.
(d) Two commissioners shall constitute a quorum and the affirmative vote of 2 commissioners shall be required for an action of the commission. The chair or 2 members of the commission may call a meeting; provided, however, that notice of all meetings shall be given to each commissioner and to other persons who request such notice. The commission shall adopt regulations establishing procedures, which may include electronic communications, by which a request to receive notice shall be made and the method by which timely notice may be given. The commission shall be subject to the Open Meeting Law in sections 18-25 of chapter 30A of the General Laws.
(e) Commissioners shall receive salaries commensurate to their experience and time devoted to their office, as determined by the governor. Commissioners shall devote half their time and attention to the duties of their office.
(f) The commission shall annually elect 1 of its members to serve as secretary and 1 of its members to serve as treasurer. The secretary shall keep a record of the proceedings of the commission and shall be the custodian and keeper of the records of all books, documents and papers filed by the commission and of its minute book. The secretary shall cause copies to be made of all minutes and other records and documents of the commission and shall certify that such copies are true copies, and all persons dealing with the commission may rely upon such certification.
(g) The chair shall have and exercise supervision and control over all the affairs of the commission. The chair shall preside at all hearings at which the chair is present and shall designate a commissioner to act as chair in the chair’s absence. To promote efficiency in administration, the chair shall, from time to time, make such division or re-division of the work of the commission among the commissioners as the chair deems expedient.
(h) All of the commissioners shall, if so directed by the chair, participate in the hearing and decision of any matter before the commission; provided, however, that at least 2 commissioners shall participate in the hearing and decision of matters other than those of formal or administrative character coming before the commission; provided further, that any such matter may be heard, examined and investigated by an employee of the commission designated and assigned by the chair, with the concurrence of 1 other commissioner. Such employee shall make a report in writing relative to the hearing, examination and investigation of every such matter to the commission for its decision. For the purposes of hearing, examining and investigating any such matter, such employee shall have all of the powers conferred upon a commissioner by this section. For each hearing, the concurrence of a majority of the commissioners participating in the decision shall be necessary.
(i) The commission shall appoint an executive director. The executive director shall serve at the pleasure of the commission, shall receive such salary as may be determined by the commission, and shall devote full time and attention to the duties of the office. The executive director shall be a person with skill and experience in management and shall be the executive and administrative head of the commission and shall be responsible for administering and enforcing the provisions of law relative to the commission and to each administrative unit thereof. The executive director may, subject to the approval of the commission, employ employees, consultants, agents and advisors, including legal counsel, and shall attend meetings of the commission. No funds shall be transferred by the commission without the approval of the commission and the signatures of the executive director and the treasurer. In the case of an absence or vacancy in the office of the executive director or in the case of disability as determined by the commission, the commission may designate an acting executive director to serve as executive director until the vacancy is filled or the absence or disability ceases. The acting executive director shall have all of the powers and duties of the executive director and shall have similar qualifications as the executive director.
(j) The executive director may, from time to time and subject to the approval of the commission, establish within the commission such administrative units as may be necessary for the efficient and economical administration of the commission and, when necessary for such purpose, may abolish any such administrative unit or may merge any 2 or more units. The executive director shall prepare and keep current a plan of organization of the commission, of the assignment of its functions to its various administrative units, offices and employees and of the places at which and the methods by which the public may receive information or make requests. A current copy of the plan of organization shall be kept on file with the state secretary and in the office of the secretary of administration and finance.
(k) The executive director may appoint such persons as the executive director shall consider necessary to perform the functions of the commission; provided, however, that chapter 31 and section 9A of chapter 30 shall not apply to commission employees. If an employee serving in a position which is classified under said chapter 31 or in which an employee has tenure by reason of said section 9A of said chapter 30 shall be appointed to a position within the commission which is not subject to said chapter 31, the employee shall, upon termination of service in such position, be restored to the position which the employee held immediately prior to such appointment; provided, however, that the employee’s service in such position shall be determined by the civil service commission in accordance with the standards applied by that commission in administering said chapter 31. Such restoration shall be made without impairment of the employee’s civil service status or tenure under said section 9A of said chapter 30 and without loss of seniority, retirement or other rights to which uninterrupted service in such prior position would have entitled such employee. During the period of such appointment, each person so appointed from a position in the classified civil service shall be eligible to take any competitive promotional examination for which such person would otherwise have been eligible. Employees of the commission, including employees working in the bureau, shall be classified as group 1 pursuant to paragraph (g) of subdivision (2) of section 3 of chapter 32.
(l) The commission shall require a prospective employee to: (i) submit an application and a personal disclosure on a form prescribed by the commission which shall include a complete criminal history, including convictions and current charges for all felonies and misdemeanors; (ii) undergo testing which detects the presence of illegal substances in the body; (iii) provide fingerprints and a photograph consistent with standards adopted by the state police; and (iv) provide authorization for the commission to conduct a credit and background check. The commission shall verify the identification, employment and education of each prospective employee, including: (i) legal name, including any alias; (ii) all secondary and post secondary educational institutions attended regardless of graduation status; (iii) place of residence; and (iv) employment history.
The commission shall not hire a prospective employee if the prospective employee has: (i) been convicted of a felony; (ii) been convicted of a misdemeanor more than 10 years prior to the prospective employee’s application that, in the discretion of the commission, bears a close relationship to the duties and responsibilities of the position for which employment is sought; (iii) been dismissed from prior employment for gross misconduct or incompetence; or (iv) intentionally made a false statement concerning a material fact in connection with the prospective employee’s application to the commission. If an employee of the commission is charged with a felony while employed by the commission, the commission shall suspend the employee, with or without pay, and terminate employment with the commission upon conviction. If an employee of the commission is charged with a misdemeanor while employed by the commission, the commission shall suspend the employee, with or without pay, and may terminate employment with the commission upon conviction if, in the discretion of the commission, the offense for which the employee has been convicted bears a close relationship to the duties and responsibilities of the position held with the commission.
(m) Chapters 268A and 268B shall apply to the commissioners and to employees of the commission.
(n) Immediately upon assuming office, each commissioner and employee of the commission, except for secretarial and clerical personnel, shall swear or affirm that the commissioner or employee possesses no interest in a person registered under this chapter. No individual shall be employed by the commission if, during the period commencing 3 years prior to employment, that individual held any direct or indirect interest in, or was employed by, a registered dispensary operator under this chapter.
(o) No employee of the commission shall pursue any other business or occupation or other gainful employment outside of the commission without the prior written approval of the commission that such employment will not interfere or be in conflict with the employee’s duties to the commission.
(p) No commissioner shall hold a direct or indirect interest in, or be employed by, an applicant or by a person registered by the commission for a period of 3 years after the termination of employment with the commission.
(q) No employee of the commission holding a major policymaking position shall acquire an interest in, or accept employment with, an applicant or registered dispensary operator for a period of 2 years after the termination of employment with the commission.
(r) No employee of the commission in a non-major policymaking position shall acquire an interest in, or accept employment with, an applicant or licensee under this chapter for a period of 1 year after termination of employment with the commission.
(s) The commissioners and those employees holding major policymaking positions shall be sworn to the faithful performance of their official duties. The commissioners and those employees holding major policymaking positions shall: (i) conduct themselves in a manner so as to render decisions that are fair and impartial and in the public interest; (ii) avoid impropriety and the appearance of impropriety in all matters under their jurisdiction; (iii) avoid all prohibited communications; (iv) require staff and personnel subject to their direction and control to observe the same standards of fidelity and diligence; (v) disqualify themselves from proceedings in which their impartiality might reasonably be questioned; and (vi) refrain from financial or business dealings which would tend to reflect adversely on impartiality.
(t) The commissioners and employees shall not own, or be in the employ of, or own any stock in, a business which holds a license under this chapter, nor shall they have, directly or indirectly, a pecuniary interest in, or be connected with, any such business or be in the employ of or connected with any person financing any such business; provided, however, that immediate family members of commissioners and employees holding major policymaking positions shall not own, or be in the employ of, or own stock in, any business which holds a license under this chapter. The commissioners and employees shall not personally, or through a partner or agent, render professional services or make or perform any business contract with or for any regulated entity, except contracts made with the commissioners for the furnishing of services, nor shall the commissioners or employees directly or indirectly receive any commission, bonus, discount, gift or reward from a regulated entity.
(u) Neither the commission nor any of its officers, agents, employees, consultants or advisors shall be subject to sections 9A, 45, 46 and 52 of chapter 30, chapter 31 or to chapter 200 of the acts of 1976.
(v) The Massachusetts cannabis commission shall be a commission for the purposes of section 3 of chapter 12.
Section 4. The commission shall have all powers necessary or convenient to carry out and effectuate its purposes including, but not limited to, the power to:
(1) appoint officers and hire employees;
(2) establish, and from time to time amend, a plan of organization that it considers expedient;
(3) execute all instruments necessary or convenient for accomplishing the purposes of this chapter;
(4) enter into agreements or other transactions with a person, including, but not limited to, a public entity or other governmental instrumentality or authority in connection with its powers and duties under this chapter;
(5) appear on its own behalf before boards, commissions, departments or other agencies of municipal, state or federal government;
(6) apply for and accept subventions, grants, loans, advances and contributions of money, property, labor or other things of value from any source, to be held, used and applied for its purposes;
(7) provide and pay for advisory services and technical assistance as may be necessary in its judgment to carry out this chapter and fix the compensation of persons providing such services or assistance; provided, however, that in exercising its authority under this clause, the commission may receive and approve applications from a municipality to provide for reasonable costs related to legal, financial and other professional services required for the negotiation and execution of host and surrounding community agreements as provided in section 15, and to require that such costs be paid by the applicant for a dispensary registration;
(8) prepare, publish and distribute, with or without charge as the commission may determine, such studies, reports, bulletins and other materials as the commission considers appropriate;
(9) assure that registrations shall not be issued to, or held by, and that there shall be no material involvement directly or indirectly with, a marijuana dispensary or the ownership thereof, by unqualified, disqualified or unsuitable persons or by persons whose operations are conducted in a manner not conforming with this chapter;
(10) require an applicant for a position which requires a registration under this chapter to apply for such registration and approve or disapprove any such application or other transactions, events and processes as provided in this chapter;
(11) require a person who has a business association of any kind with a registered dispensary operator or applicant to be qualified for registration under this chapter;
(12) develop criteria, in addition to those outlined in this chapter, to assess which applications for dispensary registrations will provide the most suitable, appropriate and safe access to the commonwealth and the region in which a dispensary is to be located;
(13) determine which applicants shall be awarded dispensary registrations in accordance with this chapter;
(14) deny an application or limit, condition, restrict, revoke or suspend a registration, finding of suitability or approval, or fine a person registered, found suitable or approved for any cause that the commission deems reasonable;
(15) monitor the conduct of registration holders and other persons having a material involvement, directly or indirectly, with a registration holder for the purpose of ensuring that licenses are not issued to or held by and that there is no direct or indirect material involvement with a registration holder, by an unqualified or unsuitable person or by a person whose operations are conducted in an unsuitable manner or in unsuitable or prohibited places as provided in this chapter;
(16) gather facts and information applicable to the commission’s obligation to issue, suspend or revoke registrations for: (i) a violation of this chapter or any regulation adopted by the commission; (ii) willfully violating an order of the commission directed to a licensee; (iii) the conviction of a criminal offense; or (iv) the violation of any other offense which would disqualify such a registration holder from holding said registration;
(17) conduct investigations into the qualifications of all applicants for employment by the commission and by any regulated entity and all applicants for registration;
(18) request and receive from the state police, the criminal history systems board or other criminal justice agencies including, but not limited to, the Federal Bureau of Investigation and the Internal Revenue Service, such criminal offender record information relating to criminal and background investigations as necessary for the purpose of evaluating employees of, and applicants for employment by, the commission and any regulated entity, and evaluating registered dispensary operators and applicants for registration under this chapter;
(22) seize and remove from the premises of a dispensary and impound any equipment, supplies, documents and records for the purpose of examination and inspection;
(23) demand access to and inspect, examine, photocopy and audit all papers, books and records of any affiliate of a dispensary whom the commission suspects is involved in the financing, operation or management of the dispensary; provided, however, that the inspection, examination, photocopying and audit may take place on the affiliate’s premises or elsewhere as practicable and in the presence of the affiliate or its agent;
(24) require that the books and financial or other records or statements of a dispensary operator be kept in a manner that the commission considers proper;
(25) levy and collect assessments, fees and fines and impose penalties and sanctions for a violation of this chapter or any regulations promulgated by the commission;
(26) collect taxes and fees under this chapter;
(27) restrict, suspend or revoke registrations issued under this chapter;
(28) conduct adjudicatory proceedings and promulgate regulations in accordance with chapter 30A;
(29) refer cases for criminal prosecution to the appropriate federal, state or local authorities;
(30) report suspected violations of this chapter or regulations to the Attorney General’s office for investigation;
(31) determine which municipalities are host communities of a proposed dispensary; provided, however, that in making such determination, the commission shall consider factors including, but not limited to, population, infrastructure, distance from the dispensary and political boundaries;
(32) maintain an official internet website for the commission;
(33) adopt, amend or repeal regulations for the implementation, administration and enforcement of this chapter;
(34) act as trustees for any marijuana-related trust funds;
Section 5. (a) The commission shall, in consultation with the department of public health, promulgate regulations for the implementation, administration and enforcement of this chapter including, but not limited to, regulations that:
(1) prescribe the method and form of application which an applicant for registration shall follow and complete before consideration by the commission;
(2) prescribe the information to be furnished by an applicant or dispensary operator concerning an applicant or operator’s antecedents, habits, character, associates, criminal record, business activities and financial affairs, past or present;
(3) prescribe the criteria for evaluation of the application for a dispensary registration including, with regard to the proposed dispensary, integration of the establishment into its surroundings, potential access to multi-modal means of transportation, level of capital investment committed, safety and security of the location and any associated grow facilities, financial strength of the applicant and the applicant’s financial plan;
(4) prescribe the information to be furnished by a dispensary relating to the operator’s dispensary employees;
(5) require fingerprinting of an applicant for a dispensary registration, a dispensary operator and employees of a dispensary or other methods of identification;
(6) prescribe the manner and method of collection and payment of assessments and fees and issuance of registrations;
(7) prescribe grounds and procedures for the revocation or suspension of a registration;
(8) require an annual audit prepared by a certified public accountant attesting to the financial condition of a dispensary operator and disclosing whether the accounts, records and control procedures examined are maintained by the operator as required by this chapter and the regulations promulgated by the commission;
(18) establish security procedures for ensuring the safety of employees and patrons on the premises of a dispensary.
(b) The commission may, pursuant to section 2 of chapter 30A, promulgate, amend or repeal any regulation promulgated under this chapter as an emergency regulation if such regulation is necessary to protect the interests of the commonwealth in regulating a dispensary.
Section 6. (a) The commission shall coordinate with municipal and state law enforcement to investigate violations of this chapter or the criminal laws of the Commonwealth of Massachusetts as the commission deems appropriate.
(b) The bureau shall notify the attorney general of criminal violations by a dispensary operator. The commission and the attorney general shall cooperate on the regulatory and criminal enforcement of this chapter and may determine whether to proceed with civil or criminal sanctions, or both, against a dispensary operator.
(c) To further effectuate the purposes of this chapter with respect to the investigation and enforcement of dispensaries and operators, the commission may obtain or provide pertinent information regarding applicants or licensees from or to law enforcement entities, the department of public health, and the commission, and may transmit such information to each other electronically.
Section 7. (a) The commission shall prescribe the form of the application for dispensary registrations which shall require, but not be limited to:
(1) the name of the applicant;
(2) the mailing address and, if a corporation, the name of the state under the laws of which it is incorporated, the location of its principal place of business and the names and addresses of its directors and stockholders;
(3) the identity of each person having a direct or indirect interest in the business and the nature of such interest; provided, however, that if the disclosed entity is a trust, the application shall disclose the names and addresses of all beneficiaries; provided further, that if the disclosed entity is a partnership, the application shall disclose the names and addresses of all partners, both general and limited; and provided further, that if the disclosed entity is a limited liability company, the application shall disclose the names and addresses of all members;
(4) an independent audit report of all financial activities and interests including, but not limited to, the disclosure of all contributions, donations, loans or any other financial transactions to or from a dispensary entity or operator in the past 5 years;
(5) clear and convincing evidence of financial stability including, but not limited to, bank references, business and personal income and disbursement schedules, tax returns and other reports filed by government agencies and business and personal accounting check records and ledgers;
(6) information and documentation to demonstrate that the applicant has sufficient business ability and experience to create the likelihood of establishing and maintaining a dispensary;
(7) a full description of the proposed internal controls and security systems for the proposed dispensary and any related facilities;
(8) an agreement that the applicant shall mitigate the potential negative public health consequences associated with marijuana consumption and diversion, and the operation of a dispensary. The commission may consult with the department of public health and law enforcement agencies to identify appropriate mitigation.
(9) the designs for the proposed dispensary and any associated grow facilities, including the names and addresses of the architects, engineers and designers, and a timeline of construction or renovation if appropriate.
(10) the number of employees to be employed at the proposed dispensary, including detailed information on the pay rate and benefits for employees;
(11) completed studies and reports as required by the commission, which shall include, but not be limited to, an examination of the proposed dispensary’s: (i) effect upon populations who may seek medical marijuana; (ii) any local and regional social, environmental, traffic and infrastructure impacts; (iv) cost to the host community and surrounding communities and the commonwealth for the proposed dispensary to be located at the proposed location, including any increased public safety costs; and (v) the estimated municipal and state tax revenue to be generated by the dispensary; provided, however, that nothing contained in any such study or report shall preclude a municipality from seeking funding approval pursuant to clause (7) of section 4 for professional services to examine or evaluate a cost, benefit or other impact;
(12) the location of the proposed dispensary, which shall include the address, maps, book and page numbers from the appropriate registry of deeds, assessed value of the land at the time of application and ownership interests over the past 20 years, including all interests, options, agreements in property and demographic, geographic and environmental information and any other information requested by the commission;
(b) Applications for registrations shall be public records under section 10 of chapter 66; provided however, that trade secrets, competitively-sensitive or other proprietary information provided in the course of an application for a dispensary under this chapter, the disclosure of which would place the applicant at a competitive disadvantage, may be withheld from disclosure under chapter 66.
Section 8. (a) Upon receipt of an application for a dispensary registration, the commission shall commence an investigation into the suitability of the applicant. In evaluating the suitability of the applicant, the commission shall consider the overall reputation of the applicant including, without limitation:
(1) the integrity, honesty, good character and reputation of the applicant;
(2) the financial stability, integrity and background of the applicant;
(3) the business practices and the business ability of the applicant to establish and maintain a dispensary;
(4) whether the applicant has a history of compliance with dispensary requirements in other jurisdictions;
(5) whether the applicant, at the time of application, is a defendant in litigation involving its business practices;
(6) the suitability of all parties in interest to the dispensary registration, including affiliates and close associates and the financial resources of the applicant; and
(7) whether the applicant is disqualified from receiving a license under section 16; provided, however, that in considering the rehabilitation of an applicant for a dispensary registration, the commission shall not automatically disqualify an applicant if the applicant affirmatively demonstrates, by clear and convincing evidence, that the applicant has financial responsibility, character, reputation, integrity and general fitness as such to warrant belief by the commission that the applicant will act honestly, fairly, soundly and efficiently as a dispensary operator.
(b) If the bureau determines during its investigation that an applicant has failed to: (i) establish the applicant’s integrity or the integrity of any affiliate, close associate, financial source or any person required to be qualified by the commission; (ii) demonstrate responsible business practices in any jurisdiction; or (iii) overcome any other reason, as determined by the commission, as to why it would be injurious to the interests of the commonwealth in awarding the applicant a dispensary registration, the bureau shall cease any further review and recommend that the commission deny the application.
(c) If the bureau has determined that an applicant is suitable to receive a dispensary registration, the bureau shall recommend that the commission commence a review of the applicant’s entire application.
Section 9. (a) An applicant for a dispensary registration, and any person required by the commission to be qualified for licensure, shall establish its individual qualifications for registration to the commission by clear and convincing evidence.
(b) An applicant, licensee, registrant or any other person who shall be qualified under this chapter shall have the continuing duty to provide any assistance or information required by the commission and to cooperate in any inquiry or investigation conducted by the commission. Refusal to answer or produce information, evidence or testimony by an applicant, licensee, registrant or other person required to be qualified under this chapter may result in denial of the application or suspension or revocation of the registration by the commission.
(c) No applicant, licensee, registrant or person required to be qualified under this chapter shall willfully withhold information from, or knowingly give false or misleading information to, the commission. If the commission determines that an applicant, or a close associate of an applicant, has willfully provided false or misleading information, such applicant shall not be eligible to receive a registration under this chapter. Any licensee or other person required to be qualified for registration under this chapter who willfully provides false or misleading information shall have its registration conditioned, suspended or revoked by the commission.
Section 10. (a) The commission shall require anyone with a financial interest in a dispensary, or with a financial interest in the business of the dispensary or applicant for a dispensary registration or who is a close associate of a dispensary operator or an applicant for a dispensary registration, to be qualified for registration by meeting the criteria provided herein and to provide any other information that the commission may require.
(b) For each business that applies for a dispensary registration, the commission shall determine whether each officer and director of a corporation, other than a publicly-traded corporation, general partner and limited partner of a limited partnership, and member, transferee of a member’s interest in a limited liability company, director and manager of a limited liability company which holds or applies for a registration meets the standards for qualification of registration contained herein and, in the judgment of the commission, any of a business’s individual stockholders, lenders, holders of evidence of indebtedness, underwriters, close associates, executives, agents or employees.
(c) A person owning more than 5 per cent of the common stock of the applicant company, directly or indirectly, or a holding, intermediary or subsidiary company of an applicant company may be required to meet the qualifications for registration contained herein. The commission may waive the registration requirements for institutional investors holding up to 15 per cent of the stock of the applicant company or holding, intermediary or subsidiary company of the applicant company upon a showing by the person seeking the waiver that the applicant purchased the securities for investment purposes only and does not have any intention to influence or affect the affairs or operations of the applicant company or a holding, intermediary or subsidiary company of the applicant company. An institutional investor granted a waiver which subsequently determines to influence or affect the affairs or operations of the applicant company or a holding, intermediary or subsidiary company of the applicant company shall provide not less than 30 days notice to the commission of such intent and the commission shall ensure that the institutional investor meets the qualifications for registration before the institutional investor may take an action that may influence or affect the affairs of the applicant company or a holding, intermediary or subsidiary company of the applicant company. Any company holding over 15 per cent of the applicant company, or a holding, intermediary or subsidiary company of an applicant company, shall be required to meet the qualifications for registration.
(d) A person who is required to be qualified for registration under this section as a general or limited partner shall not serve as such a partner until that person obtains the required approval or waiver from the commission.
(e) The commission shall require any person involved in the financing of a dispensary or an applicant’s proposed dispensary to be qualified for registration and may allow such person to seek a waiver pursuant to the standards in subsection (c).
(f) A person required to be qualified for licensure shall apply for qualification within 30 days after taking a position with the business. A person who is required to be qualified for licensure pursuant to a decision of the commission shall apply for qualification within 30 days after that decision.
(g) If a corporation or other form of business organization applying for a dispensary registration is, or if a corporation or other form of business organization holding a dispensary registration is to become, a subsidiary, each holding company, intermediary company and other entity having an interest in the applicant shall be required to be qualified for registration.
(h) The commission shall require that a company or individual that can exercise control or provide direction to a dispensary or applicant for a dispensary registration or a holding, intermediary or subsidiary company of a dispensary registration or applicant for a dispensary registration be qualified for a registration; provided, however, that the commission may allow such person to seek a waiver under subsection (c).
(i) The bureau shall investigate each person required to be qualified for registration under this section and shall: (i) make a recommendation to the commission that the commission shall approve or deny the application for licensure; or (ii) extend the period for issuing a recommendation in order to obtain additional information necessary for a complete evaluation of the application for a license.
Section 11. The commission shall coordinate with the Department of Public Health to identify operational requirements that must be met by applicants for a registered dispensary and shall promulgate regulations that include, but are not limited to:
(1) Security policies and procedures, emergency procedures, workplace policies;
(2) Cultivation, acquisition, distribution, and disposal of marijuana;
(3) Handling, testing, and production of marijuana-infused products, including sanitation requirements;
(4) Storage, packaging and labeling of marijuana and marijuana-infused products;
(5) Procedure for dispensing marijuana to patients or personal caregivers;
(6) Inventory limits and the establishment of a real-time inventory system;
(7) Establishing dispensary agent training procedures, which must not be less than 8 hours of on-going annual training;
(8) Thorough record keeping procedures covering all operational aspects of the RMD
(9) Patient education materials covering marijuana usage, doses, strains, dependency, and abuse;
(10) Marketing and advertising requirements limiting the use of marijuana and related paraphernalia symbols and images, neon signage, and other forms of attention-grabbing advertisement;
(11) DPH and emergency responder access to registered marijuana dispensaries;
(12) Maintenance of both general liability insurance coverage and product liability insurance coverage for no less than $1,000,000 per occurrence and $2,000,000 in aggregate annually each with a deductible no higher than $5,000 per occurrence. If a registered marijuana dispensary is unable to obtain the minimum liability insurance coverage, the registered marijuana dispensary may place in escrow a sum no less than $250,000 to use for liability coverage.
Section 12. The commission must hold at least one public hearing in the host community of a proposed marijuana dispensary.
Section 13. The commission shall deny an application for a dispensary registration, if the applicant or an individual associated with the dispensary: (i) has been convicted of a felony or other crime involving embezzlement, theft, fraud or perjury; (ii) submitted an application for a license under this chapter that contains false or misleading information; (iii) committed prior acts which have not been prosecuted or in which the applicant was not convicted but form a pattern of misconduct that makes the applicant unsuitable for a registration under this chapter; or (iv) has affiliates or close associates that would not qualify for a registration or whose relationship with the applicant may pose an injurious threat to the interests of the commonwealth in awarding a dispensary registration to the applicant.