2nd time is a spell for social justice in massachusetts? Mass governor signs new cannabis social justice bill

States across the United States are doing their best to make their cannabis sectors conducive to operators and consumers. Massachusetts is no different. Last week, Massachusetts Gov. Charlie Baker signed a new law into law. This law, S. 3096, is a measure designed to ensure equity in the state’s cannabis market. This is essentially the first time lawmakers have agreed to pass additional reforms since recreational cannabis was legalized in Massachusetts.

The cannabis industry has always been a fondness for BIPOC residents. The same was true even when there were no legal laws but an ongoing war on cannabis. However, the new law seeks to correct most of these shortcomings.

The main provisions of the law

P. 3096 contains various changes MD to existing regulations within the system. It also subjects the Massachusetts Cannabis Control Commission to issuing better rules within the next 12 months.

Some of the most important provisions are:

Inclusion of community impact fees

Unlike the previous measure, which left local governments free to include or not community impact fees, S. 3096 makes the fees mandatory. It imposes new limits on the Community Impact Fee by noting that the fee:

• must not exceed three percent (3%) of the total gross revenue of the marijuana business;

• shall not impose a minimum percentage of gross or total revenue;

• must be reasonably related to the costs of operating the marijuana business in the host community;

• must begin on the date the CCC issues a definitive license to the marijuana business;

• Must be without additional financial commitments or obligations, whether financial payments and charitable contributions, made by the marijuana business to the host community or other organization; and

• Payment of the first annual fee may not be due before the first annual renewal of the CCC’s approval.

expense records

All host communities are expected to record or document the revised costs imposed on marijuana industry operators. This document must be completed within four weeks of the annual permit renewal. Once complete, the law specifically provides that the municipality must provide or mail the document to the licensee.

That way, the licensee could see the records of the charges and confirm that they are not being exploited. For example, if the licensee believes that the imputed charges are unreasonable and unrelated to the regular charges imposed on other marijuana businesses, the licensee may file a civil suit against the city for breach of contract. If Licensee wins the civil suit, Licensee will pay all damages, including attorneys’ fees and other miscellaneous costs.

Changes to Host Community Agreements

Under the new law, host community agreements (HCAs), which are contracts made between legal medical and recreational cannabis businesses and the cities in which they are located, would be significantly improved. The HCA must comply with the new legal requirements set out in MGL Ch. 94G, sec. 3, unless the host community elects to reject HCA requirement (d) outright.

More taxes for cities with social justice retailers

First, a cannabis company can be considered a social justice company if its shares are largely owned by residents who qualify for the social justice program. Even if a company’s property is classified as an Economic Empowerment Priority Applicant with a minimum 51% ownership, it can still be considered a social equity company.

Each city or municipality that has at least one adult marijuana retailer that is a “social equity company” will receive revenue equal to one percent (1%) of all recreational cannabis retailers operating in the municipality each quarter are active.

Timely review and approval by the CCC

The CCC now has a clear obligation and explicit authority to evaluate and certify every HCA as part of a marijuana company’s license application and at every license renewal, ending several years of confusion.

In addition, the CCC may request additional information from the license applicant and host community, in addition to written communication of issues identified during the HCA’s review of compliance with the new law.

Under the new law, a final license application cannot be approved until the CCC confirms that the HCA meets the new regulatory standards for HCAs, which must be done within 90 days of receipt of the HCA.

Clearing criminal records related to non-violent cannabis

Deletion of Cannabis Offenses

Any acts related to cannabis possession, cultivation or sale that were previously considered criminal offenses but have since been legalized under state law must be ordered by a court to have their previous convictions quashed within 30 days of the petitioner’s filing.

Establishment of a Cannabis Social Equity Trust Fund (CSETF)

The law mandates the creation of a CSETF to encourage the full participation of people from neighborhoods primarily affected by drug laws and enforcement in the legal marijuana business. 15% of the state’s Marijuana Regulation Fund is donated to the CSETF annually, and additional money from private donors, such as authorized marijuana companies, may also be donated to the CSETF.

This trust fund is converted into grants and loans to registered applicants fighting for permits to establish cannabis businesses. The committee is headed by the state board for housing and economic development. The new Cannabis Social Equity Advisory Board will oversee some of the CSETF’s activities.

Better policies to promote social justice

The Cannabis Control Commission will enact better regulations to encourage residents of all communities to get involved in the regulated cannabis industry, particularly those living in disadvantaged communities.

bottom line

Gov. Charlie Baker’s approval of this bill is a positive step in the right direction. With this new cannabis social justice bill, Massachusetts will have a robust and just cannabis industry in no time. Many people look forward to enjoying the benefits that would accrue as the CCC updates its regulations to reflect the new changes. Dozens will gain access to the legal cannabis industry once everyone has an equal chance to succeed.

TO MORE ABOUT CANNBIS FOR MASSACHUSETTS SOCIAL JUSTICE, READ MORE…

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