AN ACT RELATIVE TO EQUITY IN THE CANNABIS INDUSTRY
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. Subsection (d) of section 2 of chapter 62 of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by adding the following paragraph:-
(4) An amount equal to the amount paid or incurred during the taxable year in carrying on the trade or business of a marijuana establishment as defined in section 1 of chapter 94G or a medical marijuana treatment center as defined in section 1 of chapter 94I that would have been deductible under the Code, but for section 280E of said Code.
SECTION 2. Section 30 of chapter 63 of the General Laws is hereby amended by striking out paragraph 4, as so appearing, and inserting in place thereof the following paragraph:-
4. “Net income”, gross income less the deductions, but not credits, allowable under the provisions of the Code, as amended and in effect for the taxable year; provided, however, that any deduction otherwise allowable which is allocable, in whole or in part, to 1 or more classes of income not included in a corporation’s taxable net income, as determined under subsection (a) of section 38, shall not be allowed. In the case of a corporation exempt from taxation under section 501 of the Code, “net income” means unrelated business taxable income, as defined in section 512 of the Code. In lieu of disallowing any deduction allocable, in whole or in part, to dividends not included in a corporation’s taxable net income, 5 per cent of such dividends shall be includable therein, as provided in said subsection (a) of said section 38. For the purposes of this section and said subsection (a) of said section 38, the term “dividend” shall include, but not be limited to, amounts included in federal gross income pursuant to sections 951 and 951A of the Code. For the purposes of this section, any dividend received directly or indirectly from a real estate investment trust, as provided in sections 856 to 859, inclusive, of the Code, for the taxable year of the trust in which a dividend is paid, shall not be: (i) treated as a dividend; and (ii) included as part of the dividends received deduction otherwise available to the taxpayer under paragraph (1) of said subsection (a) of said section 38. Any dividend received directly or indirectly from a regulated investment company, as provided in sections 851 to 855, inclusive, of the Code, shall not be included as part of the dividends received deduction otherwise available under said paragraph (1) of said subsection (a) of said section 38.
The following deductions shall be allowed: (i) a deduction for that portion of wages or salaries paid or incurred for the taxable year equal to the amount of the credit allowable for the taxable year under section 51 of the Code and otherwise disallowed under section 280C of said Code; and (ii) a deduction for any amount paid or incurred during the taxable year in carrying on the trade or business of a marijuana establishment, as defined in section 1 of chapter 94G, or a medical marijuana treatment center, as defined in section 1 of chapter 94I, that would have been deductible under the Code, but for section 280E of said Code.
Deductions with respect to the following items shall not be allowed:
(i) dividends received;
(ii) losses sustained in other taxable years, except for the net operating losses as provided in paragraph 5 of this section;
(iii) taxes on or measured by income, franchise taxes measured by net income, franchise taxes for the privilege of doing business and capital stock taxes imposed by any state;
(iv) the deduction allowed by section 168(k) of said Code;
(v) except as otherwise provided in section 31J, interest expense paid, accrued or asserted in connection with a dividend of a note or similar obligation stating the requirement that such interest is to be paid by the corporation that dividends such obligation to its shareholders;
(vi) the deduction allowed by section 199 of the Code;
(vii) the deduction described in section 163(e)(5) of the Code to the extent increased by amendments to section 163(e)(5)(F) and section 163(i)(1) of the Code, inserted by section 1232 of the federal American Recovery and Reinvestment Act of 2009, Pub. L. 111-5; and
(viii) the deductions allowed by sections 245A, 250 and 965(c) of the Code.
SECTION 3. Section 7E of chapter 64C of the General Laws, as so appearing, is hereby amended by striking out subsection (m) and inserting in place thereof the following subsection:-
(m) Marijuana products and marijuana accessories as defined in section 1 of chapter 94G shall not be subject to the excise imposed under this section; provided, however, that marijuana accessories that are manufactured to also deliver nicotine shall be considered an electronic nicotine delivery system and shall be subject to the excise imposed under this section.
SECTION 4. Section 1 of chapter 64N of the General Laws, as so appearing, is hereby amended by adding the following subsection:-
(c) “Social equity business”, a marijuana retailer that is a social equity business, as defined in section 1 of chapter 94G.
SECTION 5. Section 2 of said chapter 64N, as so appearing, is hereby amended by adding the following paragraph:-
A sum equal to 1 per cent of the total sales price received under this section from a marijuana retailer that is a social equity business, as defined in section 1 of chapter 94G, shall, not less than quarterly, be distributed, credited and paid by the state treasurer upon certification of the commissioner to each city or town that has at least 1 marijuana retailer that is a social equity business, in proportion to the amount of the sums received from the sale of marijuana or marijuana products by any such marijuana retailer in the city or town. Any city or town seeking to dispute the commissioner's calculation of its distribution under this paragraph shall notify the commissioner, in writing, not later than 1 year from the date the money was distributed by the commissioner to the city or town.
SECTION 6. Section 1 of chapter 94G of the General Laws, as so appearing, is hereby amended by inserting after the definition of “Host community” the following definition:-
“Host community agreement”, an agreement between a marijuana establishment or a medical marijuana treatment center and a municipality pursuant to subsection (d) of section 3.
SECTION 7. Said section 1 of said chapter 94G, as so appearing, is hereby further amended by inserting after the definition of “Marijuana retailer” the following definition:-
“Medical marijuana treatment center”, a medical marijuana treatment center as defined in section 1 of chapter 94I.
SECTION 8. Said section 1 of said chapter 94G, as so appearing, is hereby further amended by inserting after the definition of “Residual solvent” the following definition:-
“Social equity business”, a 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 9. Section 3 of said chapter 94G, as so appearing, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:-
(b)(1) For the purposes of this subsection, the following words shall, unless the context clearly requires otherwise, have the following meanings:
“Ballot question committee”, as defined in section 1 of chapter 55.
“Registrars”, as defined in section 1 of chapter 50.
(2) The city council of a city and the board of selectmen or town council of a town shall, upon the filing with the city or town clerk of a petition meeting the requirements of this subsection, request that the question of whether to allow, in the city or town, the sale of marijuana and marijuana products for consumption on the premises where sold, be submitted to the voters of the city or town.
The petition shall be on a form prepared by the state secretary, signed by not less than 10 per cent of the number of voters of the city or town who voted at the preceding biennial state election and submitted in a timely manner, after filing the petition with the city or town clerk, to the board of registrars or election commissioners. The board of registrars or election commissioners shall certify the signature of registered voters not more than 7 days after receipt of the petition. Upon certification of the signatures, the following question, and a fair and concise summary of the question to be prepared by the city solicitor or town counsel, shall be placed on the ballot for the next regularly occurring municipal or state election in the city or town:
“Shall [city or town] allow the sale of marijuana and marijuana products, as those terms are defined in section 1 of chapter 94G of the General Laws, for consumption on the premises where sold, a summary of which appears below?”
Notwithstanding the foregoing, the question shall appear on the ballot for the next regularly occurring municipal election if the election is to be held not less than 35 days after certification. To appear on the ballot for the next regularly occurring biennial state election, the city or town clerk shall provide notice, including the ballot question and summary, to the state secretary not later than the first Wednesday in August before the election.
If a majority of the votes cast in the city or town are in favor of allowing the consumption of marijuana or marijuana products on the premises where sold, such city or town shall have authorized the consumption of marijuana and marijuana products on the premises where sold.
(3) As an alternative to a local voter initiative petition process under paragraph (2), a city or town may, by ordinance or by-law, allow the consumption of marijuana or marijuana products on the premises where sold. No local voter initiative shall be required if the sale of marijuana and marijuana products for consumption on the premises is authorized by local law.
(4) A ballot question committee organized to favor or oppose a question placed on the ballot pursuant to paragraph (2) of this subsection shall comply with applicable guidance and regulations issued by the office of campaign and political finance for municipal ballot question committees.
SECTION 10. Said section 3 of said chapter 94G, as so appearing, is hereby further 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 seeking a new license or renewal of a license to operate or continue to operate in a municipality that permits such operation shall negotiate and execute a host community agreement with that 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)(i) Notwithstanding any general or special law to the contrary, a host community agreement may include a community impact fee for the host community; provided, however, that no host community agreement shall include a community impact fee after the eighth year of operation of a marijuana establishment or a medical marijuana treatment center. The community impact fee shall: (A) be reasonably related to the costs imposed upon the municipality by the operation of the marijuana establishment or medical marijuana treatment center, as documented pursuant to subparagraph (iii); (B) amount to not more than 3 per cent of the gross sales of the marijuana establishment or medical marijuana treatment center; (C) not be effective after the marijuana establishment or medical marijuana treatment center’s eighth year of operation; (D) commence on the date the marijuana establishment or medical marijuana treatment center is granted a final license by the commission; and (E) not mandate a certain percentage of total or gross sales as the community impact fee.
(ii) Notwithstanding any general or special law to the contrary, the community impact fee shall encompass all payments and obligations between the host community and the marijuana establishment or a medical marijuana treatment center. The community impact fee shall not include any additional payments or 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 host community or any other organization. Payment of the community impact fee shall be due annually to the host community, with the first payment occurring not sooner than upon the first annual renewal by the commission of a final license to operate the marijuana establishment or medical marijuana treatment center. Any other contractual financial obligation that is explicitly or implicitly a factor considered in, or is a condition of a host community agreement, shall not be enforceable. Nothing in this section shall preclude a marijuana establishment or a medical marijuana treatment center from voluntarily providing organizations with monetary payments, in-kind contributions and charitable contributions after the execution of the host community agreement; provided, however, that a host community agreement shall not include a promise to make a future monetary payment, in-kind contribution or charitable contribution.
(iii) Any cost imposed upon a host community by the operation of a marijuana establishment or medical marijuana treatment center shall be documented by the host community and transmitted to the licensee not later than 1 month after the date of the annual renewal of a final license to operate the marijuana establishment or medical marijuana treatment center and shall be a public record as defined by clause Twenty-sixth of section 7 of chapter 4 and chapter 66. If a licensee believes the information documented and transmitted by a host community is not reasonably related to the actual costs imposed upon the host community in the preceding year by the operation of the marijuana establishment or medical marijuana treatment center, the licensee may bring a breach of contract action against the host community and recover damages, attorneys’ fees and other costs encompassed in the community impact fee that are not reasonably related to the actual costs imposed upon the city or town.
(3) The commission shall review and approve each host community agreement as part of a completed marijuana establishment or medical marijuana treatment center license application and at each license renewal. If the commission determines that a host community agreement is not in compliance with this section, the commission shall provide written notice of any deficiencies and may request additional information from the prospective licensee and host community. The commission shall not approve a final license application unless the commission approves the host community agreement and certifies that the host community agreement complies with this subsection. The commission shall complete its review of a host community agreement not later than 90 days after it is received by the commission.
(4) A host community may waive the host community agreement requirement; provided, however, that the host community shall submit to the commission a written waiver executed by the host community and the marijuana establishment or medical marijuana treatment center.
(5) Notwithstanding any general or special law to the contrary, the commission shall promulgate regulations to establish minimum acceptable standards for host communities to promote and encourage full participation in the regulated marijuana industry by people from communities that have previously been disproportionately harmed by marijuana prohibition and enforcement and to positively impact those communities; provided, however, that a host community may establish procedures and policies beyond the minimum regulations established by the commission. A city or town that is not a host community shall establish such procedures and policies before entering into a host community agreement with a marijuana establishment or medical marijuana treatment center.
(6) The commission shall issue rules and promulgate regulations necessary to implement this subsection.
SECTION 11. Said section 3 of said chapter 94G, as so appearing, is hereby further amended by adding the following subsection:-
(f) A city or town shall adhere to cannabis control commission regulations promulgated pursuant to section 4 regarding procedures and policies for host communities to promote and encourage full participation in the regulated marijuana industry by people from communities that have been disproportionately harmed by marijuana prohibition and enforcement and may establish additional procedures and policies to further this goal. The failure of a host community to adhere to such procedures and policies shall result in a monetary penalty to the host community equal to the annual total of community impact fees received from all marijuana establishments or medical marijuana treatment centers operating within the host community, to be deposited into the Cannabis Social Equity Trust Fund established in section 14A of chapter 94G.
SECTION 12. Section 4 of said chapter 94G, as so appearing, is hereby further amended by striking out, in line 102, the words “employment or”.
SECTION 13. Said section 4 of said chapter 94G, as so appearing, is hereby further amended by inserting after the word “minor”, in line 104, the following words:-
; and provided further, that a prior criminal conviction or other criminal case disposition shall not disqualify an individual or otherwise affect eligibility for employment in connection with a marijuana establishment, other than an independent testing laboratory, unless the offense involved the distribution of a controlled substance, including marijuana, to a minor.
SECTION 14. Subsection (a) of said 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 clauses:-
(xxvii) monitor any federal activity regarding marijuana;
(xxviii) adopt, amend or repeal regulations for the implementation, administration and enforcement of this chapter;
(xxix) review, regulate, enforce and approve host community agreements pursuant to paragraph (3) of subsection (d) of section 3;
(xxx) prioritize social equity program businesses and economic empowerment priority applicants and any other class of applicants the commission deems eligible for expedited review during an evaluation of applications and inspections;
(xxxi) establish procedures and policies for municipalities to promote and encourage full participation in the regulated marijuana industry during negotiations of host community agreements with social equity program businesses and economic empowerment priority applicants; and
(xxxii) develop a model host community agreement, minimum acceptable standards and best practices for municipalities and prospective licensees during negotiations of host community agreements with social equity businesses.
SECTION 15. Subsection (a½) 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 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: (A) it is used in a way that renders it unrecognizable as the commercial food product in the marijuana product; and (B) 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;
(xxxv) criteria for allowing marijuana establishments and medical marijuana treatment centers to satisfy their positive impact plan requirement for licensure in part by donating a percentage of their revenue to the Cannabis Social Equity Trust Fund established in subsection (a) of section 14A;
(xxxvi) criteria for reviewing, certifying and approving host community agreements and community impact fees, including criteria for calculating community impact fees consistent with subsection (d) of section 3; and
(xxxvii) procedures and policies for host communities to promote and encourage full participation in the regulated marijuana industry, pursuant to paragraph (5) of subsection (d) of section 3, during negotiations of host community agreements with social equity businesses, including, but not limited to, advisory guidelines, best practices and minimum acceptable policy standards.
SECTION 16. Said section 4 of said chapter 94G, as so appearing, is hereby further amended by striking out the word “marijuana”, in lines 347 and 357, and inserting in place thereof, in each instance, the following word:- cannabis.
SECTION 17. Section 14 of said chapter 94G, as so appearing, is hereby amended by inserting after the words “chapter 132B”, in line 15, the following words:-
; provided, however, that, annually, 15 per cent of the fund shall be transferred to the Cannabis Social Equity Trust Fund established in section 14A.
SECTION 18. Said chapter 94G is hereby further amended by inserting after section 14 the following section:-
Section 14A. (a) There shall be a Cannabis Social Equity Trust Fund to encourage the full participation in the commonwealth’s regulated marijuana industry of entrepreneurs from communities that have been disproportionately harmed by marijuana prohibition and enforcement. The fund shall consist of: (i) funds transferred pursuant to subsection (b) of section 14; and (ii) any funds from private sources, including, but not limited to, gifts, grants and donations. Money in the fund shall be used to make grants and loans, including no-interest loans and forgivable loans, to social equity program participants and economic empowerment priority applicants. The fund shall be administered by the executive office of housing and economic development, in consultation with the cannabis social equity advisory board established in subsection (b). Money remaining in this fund at the end of the fiscal year shall not revert to the General Fund.
(b) There shall be a cannabis social equity advisory board, hereinafter referred to as the advisory board, consisting of individuals from, or with experience advocating on behalf of, communities that have been disproportionately harmed by marijuana prohibition and enforcement. The board shall consist of: 1 person appointed by the governor with a background in the cannabis industry, who shall serve as chair; 1 person appointed by the treasurer and receiver-general with a background in finance or commercial lending; 1 person appointed by the attorney general with a background in business development or entrepreneurship; and 2 persons appointed by a majority vote of the governor, treasurer and receiver-general and attorney general, both of whom shall have experience in business development, preferably in the cannabis industry. When making appointments, an appointing authority shall select individuals who are from, or have experience advocating for, communities that have been disproportionately harmed by marijuana prohibition and enforcement. Each advisory board member shall serve for a 5-year term and may be reappointed by their appointing authority and shall serve without compensation except for reimbursement of actual expenses reasonably incurred in the performance of their duties as a member or on behalf of the advisory board. Any vacancy in a seat on the advisory board shall be filled by the appropriate appointing authority within 60 days of the vacancy. The appointing authority may remove an advisory board member who was appointed by that appointing authority for cause. Before removal, the advisory board member shall be provided with a written statement of the reason for removal and an opportunity to be heard.
(c) The executive office of housing and economic development, in consultation with the advisory board, shall promulgate regulations governing the structure and administration of the fund, including, but not limited to: (i) requirements for social equity businesses and municipalities who host such businesses to apply to receive a grant or loan from the fund; (ii) conditions of such grants and loans; (iii) procedures pertaining to marijuana establishments or medical marijuana treatment centers that default on a loan from the fund; (iv) a process by which a license is sold as a result of a licensee’s default on a loan from the fund; (v) procedures and policies to ensure that applicants and grantees come from all license types; (vi) prohibitions against the sale, transfer or pledge of any asset or interest by a social equity business to an entity or individual other than a social equity business or an individual qualified as an economic empowerment priority applicant as defined by the commission’s regulations within an initial, specified timeframe to begin on the date the business is authorized to commence operations by the commission; provided, however, that the initial, specified timeframe shall not exceed 5 years; and (vii) terms for payment of a clawback requiring the commonwealth to recover 100 per cent of the grant and loan funds should a sale, transfer or pledge of any asset or interest by a social equity business occur in violation of clause (vi). The secretary of housing and economic development, in consultation with the advisory board, shall be responsible for the selection of recipients, grant or loan values and conditions for such grants or loans; provided, that when selecting recipients, the secretary in consultation with the advisory board, shall take into consideration the racial, ethnic and gender demographics of the municipality in which the recipient businesses are located.
(d) Annually, not later than July 31, the executive office of housing and economic development, in consultation with the advisory board, shall report on expenditures from the fund in the previous fiscal year. The report shall include, but shall not be limited to: (i) information that identifies and describes the amount of money expended from the fund; (ii) a list of the entities that received a grant or loan from the fund; (iii) the geographic location of recipient entities; (iv) the form of funding received by each entity; (v) information indicating whether each recipient entity is a minority-owned entity; and (vi) any other information that the executive office and the advisory board deem appropriate to ensure equity and accountability. The report shall be filed with the clerks of the house of representatives and the senate, the house and senate committees on ways and means and the joint committee on cannabis policy. The executive office shall make the report publicly available on its website.
(e) The violation of a condition of a grant or loan made pursuant to this section or any other violation of this section shall be punished by a fine of not more than 50 per cent of the violator’s grant or loan value per violation, in addition to funds paid under clause (vii) of subsection (c), if applicable.
SECTION 19. Subsection (b) of section 17 of chapter 94G of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by inserting after the first sentence the following 2 sentences:-
Said departments and executive offices shall: (i) provide the commission with any existing data requested by the commission, subject to any applicable confidentiality laws and regulations regarding personally identifying information; (ii) collect data, as reasonably requested by the commission, to complete the commission's research agenda; and (iii) provide data requested by the commission pursuant to clause (ii) to the commission subject to any applicable confidentiality laws and regulations regarding personally identifying information. Any personally identifiable information contained in data acquired through this section shall not be considered a public record and shall not be subject to disclosure pursuant to clause twenty-sixth of section 7 of chapter 4 and chapter 66.
SECTION 20. Said chapter 94G is hereby further amended by adding the following section:-
Section 22. The commission shall administer a social equity program to encourage and enable full participation in the marijuana industry of people from communities that have been disproportionately harmed by marijuana prohibition and enforcement and to positively impact those communities. The program shall offer: (i) technical assistance and training; and (ii) guidance on how to access funds available through the Cannabis Social Equity Trust Fund, established in section 14A, to individuals certified by the commission as economic empowerment priority applicants and that meet other criteria determined by the commission.
SECTION 21. Section 22 of chapter 270 of the General Laws, as appearing in the 2020 Official Edition, is hereby amended by inserting after the definition of “Enclosed” the following definition:-
“Licensed marijuana social consumption establishment”, an establishment that is, at a minimum: (i) licensed by the Massachusetts cannabis control commission established under section 76 of chapter 10 for sale of marijuana and marijuana products for consumption on the premises pursuant to regulations promulgated pursuant to section 4 of chapter 94G; and (ii) authorized to allow social consumption of cannabis on the premises, where required, by the appropriate authority in the city or town in which the establishment is located; provided however, that tobacco shall not be sold, smoked, vaporized or consumed at said establishment.
SECTION 22. Said section 22 of said chapter 270, as so appearing, is hereby amended by adding the following subsection:-
(p) Nothing in this section shall prohibit the consumption of marijuana, including, but not limited to, marijuana consumption that involves the combustion, heating, vaporization or aerosolization of cannabis products, at a licensed marijuana social consumption establishment, in designated consumption areas and as permitted by cannabis control commission regulations promulgated pursuant to section 4 of chapter 94G.
SECTION 23. Chapter 276 of the General Laws is hereby amended by inserting after section 100K the following section:-
Section 100K¼. (a) Notwithstanding the requirements of section 100I and section 100J, a court shall, within 30 days of a petition being filed, order the expungement of a record created as a result of a criminal court appearance, juvenile court appearance or disposition for: (1) the possession or cultivation of an amount of marijuana decriminalized by chapter 387 of the acts of 2008; (2) the possession or cultivation of an amount of marijuana decriminalized by chapter 334 of the acts of 2016; (3) the possession or cultivation of an amount of marijuana decriminalized by chapter 55 of the acts of 2017; (4) possession of marijuana with intent to distribute based on an amount of marijuana decriminalized by chapter 387 of the acts of 2008, chapter 334 of the acts of 2016 or chapter 55 of the acts of 2017; or (5) distribution of marijuana based on an amount of marijuana decriminalized by chapter 387 of the acts of 2008, chapter 334 of the acts of 2016 or chapter 55 of the acts of 2017.
(b) Prior to entering an order on a petition for expungement pursuant to subsection (a), the court shall hold a hearing if requested by the petitioner or the district attorney. Upon granting or denying a petition for expungement pursuant to subsection (a), the court shall enter written findings of fact.
(c) Upon an order for expungement pursuant to this section or section 100F, section 100G or section 100H, the court clerk’s office shall provide the petitioner with a certified copy of the order, the docket sheets and the criminal complaint related to the expunged charge. The court shall send a copy of the expungement order to the clerk of the court where the record was created, to the commissioner of probation and to the commissioner of criminal justice information services.
SECTION 24. Section 51 of chapter 55 of the acts of 2017 is hereby amended by striking out the words “and (ii)” and inserting in place thereof the following words: (ii) a campaign to educate the public on health risks associated with marijuana and tetrahydrocannabinol consumption, including, but not limited to, the risks: (A) to mental health; (B) of use during pregnancy; (C) of use of high potency products; and (D) of home extraction of marijuana concentrates; and (iii).
SECTION 25. (a) Notwithstanding any general or special law to the contrary, a host community shall establish initial procedures or policies required by paragraph (5) of subsection (d) of section 3 of chapter 94G of the General Laws not later than July 1, 2023.
(b) The failure of a host community to establish procedures or policies pursuant to subsection (a) shall result in a monetary penalty to the host community equal to the annual total of community impact fees received from all marijuana establishments or medical marijuana treatment centers operating within the host community, to be deposited into the Cannabis Social Equity Trust Fund established in section 14A of said chapter 94G.
Governor returned with disapproval of the following section, for message see S3107
SECTION 26. (a) The cannabis control commission, in consultation with the department of elementary and secondary education and the department of public health, shall conduct a study on the possession, administration and consumption of medical marijuana, as defined in chapter 94I, at public or private schools in the commonwealth as it relates to students who have been issued valid registration cards pursuant to said chapter 94I. The study shall include, but not be limited to: (i) an examination of policies on the possession, administration and consumption of medical marijuana by students at public and private schools in the commonwealth; (ii) an analysis of existing legal, regulatory and administrative obstacles to possession, administration and consumption of medical use marijuana at public and private schools in the commonwealth; (iii) a survey of available methods of consumption, administration and storage of medical use marijuana at public and private schools; (iv) recommendations on best practices for public and private schools in the commonwealth to ensure that students have access to medical use marijuana while also maintaining a safe school environment for all students; and (v) recommendations on eliminating obstacles and expanding accommodations to possess, administer and consume medical use marijuana at public and private schools in the commonwealth..
(b) Not later than August 31, 2023, the Massachusetts cannabis control commission, in consultation with the department of elementary and secondary education and the department of public health, shall submit a report of its findings and recommendations to the clerks of the house of representatives and the senate, the joint committee on cannabis policy and the joint committee on children, families and persons with disabilities.
SECTION 27. Initial appointments to the cannabis social equity advisory board established in section 14A of chapter 94G of the General Laws shall be made not later than 60 days after the effective date of this act.
SECTION 28. The Massachusetts cannabis control commission shall promulgate or amend regulations as necessary to be consistent with this act not later than 1 year from the effective date of this act.
SECTION 29. Sections 1 and 2 shall take effect for taxable years beginning on or after January 1, 2022.
Approved (in part) , August 11, 2022.