Massachusetts governor signs cannabis social justice bill into law

Massachusetts Gov. Charlie Baker on Thursday signed legislation amending the state’s marijuana laws, approving the addition of social justice provisions and other changes to the Bay State’s cannabis regulations. Baker approved all but one of the provisions of the bill, which marks the first revision of the state’s cannabis regulations since voters approved recreational marijuana use in 2016.

Baker said in a statement that he supports “many of the provisions this bill adopts to improve regulation of the cannabis industry” as well as “the bill’s efforts to expand opportunities for social justice businesses.”

The compromise bill, passed by the state Legislature in the early hours of August 1, aims to increase diversity in Massachusetts’ cannabis industry through the creation of a new Social Justice Trust. The program receives 15% of revenue from the Marijuana Regulation Fund, which is funded from cannabis taxes, application and license fees, and penalties imposed on licensed cannabis companies. Funds from the Social Justice Trust will be used to provide grants and loans to potential cannabis business owners, with a focus on communities of color and those harmed by the country’s failed prohibition policies.

“This law will rebalance the playing field where wealthy businesses have been able to buy their way out through the licensing process and too many local small business owners and black and brown entrepreneurs have been locked out,” Senator Sonia Chang-Díaz said. the co-chair of the state legislature’s Cannabis Policy Committee. “The reforms and funding we have fought so hard to secure will change the game and put Massachusetts back in the lead for racial justice in our economic policies on cannabis. I am so grateful to the many community members and grassroots leaders who have come together and kept the state’s feet on the fire to make this possible.”

At a Cannabis Control Commission (CCC) meeting held Thursday, before Baker signed the law into law, Commissioner Ava Callender Concepcion encouraged her colleagues to “take a moment today to recognize the importance of this moment and the magnitude of this impact.” “.

“I’m not saying that this single piece of legislation will solve every problem facing the cannabis industry, but it’s a huge step,” Concepcion said. “This is monumental.”

Cannabis activists welcome new legislation

Shanel Lindsay, a cannabis advocate who campaigned for the 2016 ballot measure that legalized cannabis in Massachusetts, said the governor and lawmakers “made history with this vital — and overdue — grant and loan fund.”

“This legislation is an important step forward in repairing the harms of prohibition and over-policing, and will provide an important avenue for families of color to create jobs in their community and generate generational wealth,” said Lindsay, co-founder of Equitable Opportunities Now .

The bill also gives the CCC the power to review and approve host community agreements that cannabis businesses must develop with the local jurisdictions in which they are located. The agreements will also be limited to the first eight years that a company operates, capping the fees charged by companies. Community Impact Fees will be capped at 3% of a company’s gross revenue and must be “reasonable” to the costs local governments incur in implementing cannabis legalization and regulation.

In addition, the legislation allows cannabis companies to be treated as legal businesses under state tax laws, giving them access to standard business deductions that are denied under federal tax rules. Seh Samura, owner and CEO of Cambridge pharmacy Yamba Market and an advocate for minority representation in cannabis, said companies in the industry can face tax burdens of up to 75%.

“It raises the barrier to entry and poses many obstacles for entrepreneurs, especially those with fewer resources,” he said.

Samura added that the new law will make taxes fairer and oversee fierce competition for agreements with host communities, while providing funding to help minority entrepreneurs get into business.

“We need to see the money start flowing, and the sooner it starts flowing, the sooner we’re going to see an impact in the larger market on how many investees there are, how much diversity there is,” Samura said.

Other sections of the bill approved by Baker include provisions to simplify the overturning of prior cannabis-related convictions and a process for local communities to vote on approving cannabis consumption lounges.

Governor Nixes is researching medicinal pot in schools

Baker vetoed a provision in the legislation that would have examined the feasibility of allowing students to use cannabis-based therapies in schools. Under this section, the CCC, the Departments of Elementary and Secondary Education and the Department of Public Health would be directed to issue recommendations for “removing barriers and expanding facilities for the possession, administration and use of marijuana for medicinal purposes and for public and private schools” to study and develop. among students who hold valid medical cannabis cards.

In a statement to lawmakers, Baker said the measure, as written, is “highly mandated — and made it clear that the agencies charged with conducting the study need to find ways to make medical marijuana widely available in schools.” to make, rather than consider whether such approval is advisable.”

“The ballot initiatives that legalized medical marijuana in 2012 and 2016 included strict measures to keep marijuana out of K-12 schools and schoolchildren. Both statutes specifically stated that under no circumstances would marijuana be allowed on school property,” Baker added. “Because the study proposed in Section 26 clearly works against these important and established protections and disregards the clear intentions of voters in legalizing marijuana use, I cannot endorse this portion of the bill.”