Amendment ID: S2722-43-R1

Redraft Amendment 43

Studying excise tax impact

Ms. Jehlen, Ms. Miranda, Messrs. Payano, O'Connor and Eldridge, Ms. Edwards and Mr. Tarr move that the proposed new text be amended by adding the following section:-

"SECTION 52. The cannabis control commission shall conduct, or retain an outside expert to conduct, a study on the effects of the current marijuana excise tax rates established in chapter 64N of the General Laws on the sustainability of the cannabis industry. The study shall include, but not be limited to, the impact of the excise tax on: (i) consumer demand with regard to businesses licensed pursuant to chapters 94G and 94I of the General Laws; (ii) consumer demand for illicit cannabis and the size of the illicit cannabis market; (iii) the rates of marijuana related business closures; and (iv) businesses that have or could qualify for the Cannabis Social Equity Trust Fund established by section 14A of said chapter 94G. The study shall evaluate the impact of state taxes on the sale of cannabis in other states and any other relevant factors regarding the impact of the current excise tax on consumers and businesses in the commonwealth. Not later than January 1, 2027, the commission shall submit a report of its findings and any recommendations for legislation to the clerks of the house of representatives and the senate and the joint committee on cannabis policy."