HOUSE . . . . . . . . . . . . . . No. 3818 The Commonwealth of Massachusetts _______________ The committee of conference on the disagreeing votes of the two branches with reference to the Senate amendment (striking out all after the enacting clause and inserting in place thereof the text contained in Senate document numbered 2097) of the House Bill to ensure the public health and safety of patient and consumer access to medical and adult use of marijuana in the Commonwealth (House, No. 3776), reports recommending passage of the accompanying bill (House, No. 3818) July 17, 2017. Ronald Mariano Mark J. Cusack Hannah E. Kane Patricia D. Jehlen William N. Brownsberger Richard J. Ross 1 of 75 FILED ON: 7/17/2017 HOUSE . . . . . . . . . . . . . . . No. 3818 The committee of conference on the disagreeing votes of the two branches with reference to the Senate amendment of the House Bill to ensure the public health and safety of patient and consumer access to medical and adult use of marijuana in the Commonwealth (House, No. 3776), reports recommending passage of the accompanying bill (House, No. 3818). The Commonwealth of Massachusetts _______________ In the One Hundred and Ninetieth General Court (2017-2018) _______________ An Act to ensure safe access to medical and adult-use of marijuana in the Commonwealth. Whereas, The deferred operation of this act would tend to defeat its purpose, which is to regulate forthwith marijuana in the commonwealth, therefore, it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience. Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows: 1 SECTION 1. Chapter 10 of the General Laws is hereby amended by striking out sections 2 76 and 77, as appearing in the 2016 Official Edition, and inserting in place thereof the following 3 2 sections:- 4 Section 76. (a) There shall be a Massachusetts cannabis control commission which shall 5 consist of 5 commissioners:1 of whom shall be appointed by the governor and shall have a 6 background in public health, mental health, substance use, or toxicology; 1 of whom shall be 7 appointed by the attorney general and shall have a background in public safety; 1 of whom shall 8 be appointed by the treasurer and receiver-general and shall have experience in corporate 9 management, finance or securities; and 2 of whom shall be appointed by a majority vote of the 2 of 75 10 governor, attorney general, and treasurer and receiver-general, 1 of whom shall have professional 11 experience in oversight or industry management, including commodities, production or 12 distribution in a regulated industry and 1 of whom shall have a background in legal, policy or 13 social justice issues related to a regulated industry. The treasurer and receiver-general shall 14 designate the chair of the commission. The chair shall serve in that capacity throughout the term 15 of appointment and until a successor shall be appointed. Prior to appointment to the commission, 16 a background investigation shall be conducted into the financial stability, integrity and 17 responsibility of a candidate, including the candidate’s reputation for good character, and 18 honesty. No person who has been convicted of a felony shall be eligible to serve on the 19 commission. 20 (b) Each commissioner shall be a resident of the commonwealth within 90 days of 21 appointment and, while serving on the commission, shall not: (i) hold, or be a candidate for, 22 federal, state or local elected office; (ii) hold an appointed office in a federal, state, or local 23 government; or (iii) serve as an official in a political party. Not more than 3 commissioners shall 24 be from the same political party. 25 (c) Each commissioner shall serve for a term of 5 years or until a successor is appointed 26 and shall be eligible for reappointment; provided, however, that no commissioner shall serve 27 more than 10 years. A person appointed to fill a vacancy in the office of a commissioner shall be 28 appointed in a like manner and shall serve for only the unexpired term of that commissioner. 29 (d) The treasurer and receiver-general, the governor or the attorney general may remove a 30 commissioner who was appointed by that appointing authority if the commissioner: (i) is guilty 31 of malfeasance in office; (ii) substantially neglects the duties of a commissioner; (iii) is unable to 3 of 75 32 discharge the powers and duties of the office; (iv) commits gross misconduct; or (v) is convicted 33 of a felony. The treasurer and receiver-general, the governor and the attorney general may, by 34 majority vote, remove a commissioner who was appointed by majority vote of the state treasurer, 35 the governor and the attorney general if the commissioner: (i) is guilty of malfeasance in office; 36 (ii) substantially neglects the duties of a commissioner; (iii) is unable to discharge the powers 37 and duties of the commissioner’s office; (iv) commits gross misconduct; or (v) is convicted of a 38 felony. Before removal, the commissioner shall be provided with a written statement of the 39 reason for removal and an opportunity to be heard. 40 (e) Three commissioners shall constitute a quorum and the affirmative vote of 3 41 commissioners shall be required for an action of the commission. The chair or 3 members of the 42 commission may call a meeting; provided, however, that notice of all meetings shall be given to 43 each commissioner and to other persons who request such notice. The commission shall adopt 44 regulations establishing procedures, which may include electronic communications, by which a 45 request to receive notice shall be made and the method by which timely notice may be given. 46 (f) Commissioners shall receive salaries not greater than three-quarters of the salary of 47 the secretary of administration and finance under section 4 of chapter 7; provided, however, that 48 the chair shall receive a salary equal to the salary of the secretary of administration and finance. 49 Commissioners shall devote their full time and attention to the duties of their office. 50 (g) The commission shall annually elect 1 of its members to serve as secretary and 1 of 51 its members to serve as treasurer. The secretary shall keep a record of the proceedings of the 52 commission and shall be the custodian and keeper of the records of all books, documents and 53 papers filed by the commission and of its minute book. The secretary shall cause copies to be 4 of 75 54 made of all minutes and other records and documents of the commission and shall certify that 55 such copies are true copies, and all persons dealing with the commission may rely upon such 56 certification. 57 (h) The chair shall have and exercise supervision and control over all the affairs of the 58 commission. The chair shall preside at all hearings at which the chair is present and shall 59 designate a commissioner to act as chair in the chair’s absence. To promote efficiency in 60 administration, the chair shall make such division or re-division of the work of the commission 61 among the commissioners as the chair deems expedient. 62 (i) The commissioners shall, if so directed by the chair, participate in the hearing and 63 decision of any matter before the commission; provided, however, that at least 2 commissioners 64 shall participate in the hearing and decision of matters other than those of formal or 65 administrative character coming before the commission; and provided further, that any such 66 matter may be heard, examined and investigated by an employee of the commission designated 67 and assigned by the chair, with the concurrence of 1 other commissioner. Such employee shall 68 make a report in writing relative to the hearing, examination and investigation of every such 69 matter to the commission for its decision. For the purposes of hearing, examining and 70 investigating any such matter, such employee shall have all of the powers conferred upon a 71 commissioner by this section. For each hearing, the concurrence of a majority of the 72 commissioners participating in the decision shall be necessary. 73 (j) The commission shall appoint an executive director. The executive director shall serve 74 at the pleasure of the commission, shall receive such salary as may be determined by the 75 commission, and shall devote full time and attention to the duties of the office. The executive 5 of 75 76 director shall be a person with skill and experience in management, shall be the executive and 77 administrative head of the commission and shall be responsible for administering and enforcing 78 the provisions of law relative to the commission and to each administrative unit thereof. The 79 executive director shall appoint and employ a chief financial and accounting officer and may, 80 subject to the approval of the commission, employ other employees, consultants, agents and 81 advisors, including legal counsel, and shall attend meetings of the commission. The chief 82 financial and accounting officer of the commission shall be in charge of its funds, books of 83 account and accounting records. No funds shall be transferred by the commission without the 84 approval of the commission and the signatures of the chief financial and accounting officer and 85 the treasurer of the commission. In the case of an absence or vacancy in the office of the 86 executive director or in the case of disability as determined by the commission, the commission 87 may designate an acting executive director to serve as executive director until the vacancy is 88 filled or the absence or disability ceases. The acting executive director shall have all of the 89 powers and duties of the executive director and shall have similar qualifications as the executive 90 director. 91 (k) Chapters 268A and 268B shall apply to the commissioners and to employees of the 92 commission; provided, however, that the commission shall establish a code of ethics for all 93 members and employees that shall be more restrictive than said chapters 268A and 268B. A copy 94 of the code shall be filed with the state ethics commission. The code shall include provisions 95 reasonably necessary to carry out the purposes of this section and any other laws subject to the 96 jurisdiction of the commission including, but not limited to: (i) prohibiting the receipt of gifts by 97 commissioners and employees from any marijuana licensee, applicant, close associate, affiliate 98 or other person or entity subject to the jurisdiction of the commission; (ii) prohibiting the 6 of 75 99 participation by commissioners and employees in a particular matter as defined in section 1 of 100 said chapter 268A that affects the financial interest of a relative within the third degree of 101 consanguinity or a person with whom such commissioner or employee has a significant 102 relationship as defined in the code; and (iii) providing for recusal of a commissioner in a 103 licensing decision due to a potential conflict of interest. 104 105 106 (l) The Massachusetts cannabis control commission shall be a commission for the purposes of section 3 of chapter 12. (m) The commission shall, for the purposes of compliance with state finance law, operate 107 as a state agency as defined in section 1 of chapter 29 and shall be subject to the laws applicable 108 to agencies under the control of the governor; provided, however, that the comptroller may 109 identify any additional instructions or actions necessary for the department to manage fiscal 110 operations in the state accounting system and meet statewide and other governmental accounting 111 and audit standards. The commission shall properly classify the commission’s operating and 112 capital expenditures, and shall not include any salaries of employees in the commission’s capital 113 expenditures. Unless otherwise exempted by law or the applicable central service agency, the 114 commission shall participate in any other available commonwealth central services including, but 115 not limited to, the state payroll system pursuant to section 31 of chapter 29, and may purchase 116 other goods and services provided by state agencies in accordance with comptroller provisions. 117 The comptroller may chargeback the commission for the transition and ongoing costs for 118 participation in the state accounting and payroll systems and may retain and expend such costs 119 without further appropriation for the purposes of this section. The commission shall be subject to 120 section 5D of chapter 29 and subsection (f) of section 6B of chapter 29. 7 of 75 121 Section 77. (a) There shall be a cannabis advisory board to study and make 122 recommendations to the cannabis control commission on the regulation and taxation of 123 marijuana. The board shall consist of: the executive director of the cannabis control commission 124 who shall serve as chair; the secretary of the executive office of housing and economic 125 development or a designee; the commissioner of revenue or a designee; the commissioner of 126 public health or a designee; the commissioner of agricultural resources or a designee; the colonel 127 of the state police or a designee; the president of the Massachusetts Municipal Association, Inc. 128 or a designee; the president of the Massachusetts Patient Advocacy Alliance, Inc. or a designee; 129 a registered qualifying patient appointed by the president of the Massachusetts Patient Advocacy 130 Alliance, Inc.; the executive director of the American Civil Liberties Union of Massachusetts, 131 Inc. or a designee; 5 members to be appointed by the treasurer and receiver-general; 1 of whom 132 shall be an expert in marijuana cultivation, 1 of whom shall be an expert in marijuana retailing, 1 133 of whom shall be an expert in marijuana product manufacturing, 1 of whom shall be an expert in 134 laboratory sciences and toxicology and 1 of whom shall be an expert in providing legal services 135 to marijuana businesses; 5 members to be appointed by the governor; 1 of whom shall be an 136 expert in minority business development, 1 of whom shall be an expert in economic development 137 strategies for under-resourced communities, 1 of whom shall be an expert in farming or 138 representing the interests of farmers,1 of whom shall be an expert representing the interests of 139 employers and 1 of whom shall be an expert in municipal law enforcement with advanced 140 training in impairment detection and evaluation; and 5 members to be appointed by the attorney 141 general: 1 of whom shall be an expert in social welfare or social justice, 1 of whom shall be an 142 expert in criminal justice reform to mitigate the disproportionate impact of drug prosecutions on 143 communities of color, 1 of whom shall be an expert in minority business ownership, 1 of whom 8 of 75 144 shall be an expert in women-owned business ownership and 1 of whom shall be an expert in the 145 prevention and treatment of substance use disorders. Members of the board shall serve for terms 146 of 2 years. Members of the board shall serve without compensation but shall be reimbursed for 147 their expenses actually and necessarily incurred in the discharge of their official duties. Members 148 of the board shall not be state employees for the purposes of chapter 268A by virtue of their 149 service on the board. For the purposes of taking action at a meeting, a majority of the members 150 of the board present and voting shall constitute a quorum. 151 (b) The cannabis advisory board shall: (i) consider all matters submitted to it by the 152 commission; (ii) on its own initiative, recommend to the commission guidelines, rules and 153 regulations and any changes to guidelines, rules and regulations that the advisory board considers 154 important or necessary for the commission’s review and consideration; and (iii) advise on the 155 preparation of regulations pursuant to chapter 94G and chapter 369 of the acts of 2012. 156 (c) The chair may appoint subcommittees in order to expedite the work of the board; 157 provided, however, that the chair shall appoint: (i) a subcommittee on public health to develop 158 recommendations on products, labelling, marketing, advertising, related public health issues, 159 potency, which may include a recommended maximum limit for individual servings of marijuana 160 products, and packaging, which may include the development and implementation of a public 161 health warning to appear on marijuana products; (ii) a subcommittee on public safety and 162 community mitigation to develop recommendations on law enforcement, property, business and 163 consumer issues; (iii) a subcommittee on the cannabis industry to develop recommendations on 164 cultivation, processing, manufacturing, transportation, distribution, seed-to-sale tracking and 165 market stability; and (iv) a subcommittee on market participation to develop recommendations 166 on women, minority and veteran-owned businesses, local agriculture and growing cooperatives. 9 of 75 167 SECTION 2. Subsection (b) of said section 77 of said chapter 10, as appearing in section 168 1, is hereby amended by striking out the words “369 of the acts of 2012” and inserting in place 169 thereof the following figure:- 94I. 170 SECTION 3. Section 5I of chapter 18 of the General Laws, as appearing in the 2016 171 Official Edition, is hereby amended by striking out, in lines 41 to 43, inclusive, the words “or for 172 the payment to the commonwealth of or any political subdivision thereof of any fees, fines, bail 173 or bail bonds ordered by a court” and inserting in place thereof the following words:- ; for the 174 payment to the commonwealth or a political subdivision thereof of a fee, fine, bail or bail bond 175 ordered by a court; or marijuana or marijuana products that are sold pursuant to 94G. 176 SECTION 4. Section 5J of said chapter 18, as so appearing, is hereby amended by 177 striking out, in line 14, the words “or on cruise ships” and inserting in place thereof the following 178 words:- on a cruise ship; or at a marijuana establishment as defined in chapter 94G. 179 SECTION 5. Section 1 of chapter 32 of the General Laws, as so appearing, is hereby 180 amended by inserting after the word “commission”, in line 226, the following words:- , 181 Massachusetts cannabis control commission. 182 SECTION 6. Section 2 of chapter 32A of the General Laws, as so appearing, is hereby 183 amended by inserting after the word “commission”, in lines 13 and 14, the following words:- , 184 Massachusetts cannabis control commission. 185 186 SECTION 7. Section 3 of chapter 40A of the General Laws, as so appearing, is hereby amended by inserting after the word 94G in line 44, the following words:- 10 of 75 187 “provided, further that nothing in this section shall preclude a municipality from 188 establishing zoning by-laws or ordinances which allow commercial marijuana growing and 189 cultivation on land used for commercial agriculture, aquaculture, floriculture, or horticulture.” 190 SECTION 8. Section 38 of chapter 63 of the General Laws, as so appearing, is hereby 191 amended by striking out, in line 211, the word “and”. 192 SECTION 9. Said section 38 of said chapter 63, as so appearing, is hereby further 193 amended inserting after the word “ commonwealth”, in lines 216 and 217, the following words:- 194 ; and (10) in the case of a business deriving receipts from operating a marijuana establishment or 195 otherwise deriving receipts from conducting a marijuana business or activity, income-producing 196 activity shall be considered to be performed in this commonwealth to the extent that the location 197 of marijuana transactions or activities that generated the receipts is in this commonwealth. 198 SECTION 10. Said section 38 of said chapter 63, as so appearing, is hereby further 199 200 amended by striking out, in line 247, the word “and” the second time it appears. SECTION 11. Said section 38 of said chapter 63, as so appearing, is hereby further 201 amended by inserting after the word “commonwealth”, in line 253, the following words:- ; and 202 (9) in the case of a business deriving receipts from operating a marijuana establishment or 203 otherwise deriving receipts from conducting a marijuana business or activity, income-producing 204 activity shall be considered to be performed in this commonwealth to the extent that the location 205 of marijuana transactions or activities that generated the receipts is in this commonwealth. 206 207 SECTION 12. Section 2 of chapter 64N, as so appearing, is hereby amended, in lines 4, by striking the figure “3.75” and inserting in place thereof the following:- 11 of 75 208 “10.75” 209 SECTION 13. Said chapter 64N, as so appearing, is hereby further amended by striking 210 211 out section 3 and inserting in place thereof the following section:(a) A city or town that accepts this section in the manner provided in section 4 of chapter 212 4 may impose a local sales tax upon sale or transfer of marijuana or marijuana products by a 213 marijuana retailer operating within the city or town to anyone other than a marijuana 214 establishment at a rate not greater than 3 per cent of the total sales price received by the 215 marijuana retailer as a consideration for the sale of marijuana or marijuana products. The 216 marijuana retailer shall pay the local sales tax imposed under this section to the commissioner at 217 the same time and in the same manner as the sales tax due to the commonwealth. 218 (b) All sums received by the commissioner under this section shall, at least quarterly, be 219 distributed, credited and paid by the treasurer and receiver-general upon certification of the 220 commissioner to each city or town that has accepted this section in proportion to the amount of 221 the sums received in that city or town. Any city or town seeking to dispute the commissioner's 222 calculation of its distribution under this subsection shall notify the commissioner, in writing, not 223 later than 1 year from the date the tax was distributed by the commissioner to the city or town. 224 (c) This section shall take effect in a city or town on the first day of the calendar quarter 225 following 30 days after its acceptance by the city or town or on the first day of a later calendar 226 quarter that the city or town may designate. 227 SECTION 14. Section 1 of chapter 94C of the General Laws, as so appearing, is hereby 228 amended by inserting after the word “plant”, in line 225, the following words:- , industrial hemp 229 as defined in section 116 of chapter 128. 12 of 75 230 SECTION 15. Section 32L of said chapter 94C, as so appearing, is hereby amended by 231 striking out, in lines 2, 25, 30, 35, 36 and 45, the words “one ounce” and inserting in place 232 thereof, in each instance, the following words:- 2 ounces. 233 SECTION 16. Said section 32L of said chapter 94C, as so appearing, is hereby further 234 amended by striking out, in lines 3 and 4, the words “eighteen years of age or older to” and 235 inserting in place thereof the following words:- 18 to 21 years of age, inclusive, to. 236 SECTION 17. Said section 32L of said chapter 94C, as so appearing, is hereby further 237 amended by striking out, in lines 19 and 20, the words ““An Act Establishing a Sensible State 238 Marihuana Policy,” neither” and inserting in place thereof the following words:- section 24I of 239 chapter 90, chapter 94G and chapter 387 of the acts of 2008, neither. 240 SECTION 18. Said section 32L of said chapter 94C, as so appearing, is hereby further 241 amended by striking out, in line 23, the words “an ounce” and inserting in place thereof the 242 following words:- 2 ounces. 243 SECTION 19. Section 32M of said chapter 94C, as so appearing, is hereby amended by 244 striking out, in line 3, the words “one ounce” and inserting in place thereof the following words:- 245 2 ounces. 246 247 248 249 SECTION 20. Chapter 94G of the General Laws is hereby amended by striking out section 1 and inserting in place thereof the following section:Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings: 13 of 75 250 251 252 “Cannabinoid”, any of several compounds produced by marijuana plants that have medical and psychotropic effects. “Cannabinoid profile”, amounts, expressed as the dry-weight percentages, of delta-nine- 253 tetrahydrocannabinol, cannabidiol, tetrehydrocannabinolic acid and cannabidiolic acid in a 254 marijuana product. Amounts of other cannabinoids may be required by the commission. 255 “Close associate”, a person who holds a relevant financial interest in, or is entitled to 256 exercise power in, the business of an applicant or licensee and, by virtue of that interest or 257 power, is able to exercise a significant influence over the management or operation of a 258 marijuana establishment licensed under this chapter. 259 “Consumer”, a person who is at least 21 years of age. 260 “Controlling person”, an officer, board member or other individual who has a financial 261 262 263 or voting interest of 10 per cent or greater in a marijuana establishment. “Commission”, the Massachusetts cannabis control commission established by section 76 of chapter 10. 264 “Craft marijuana cultivator cooperative”, a marijuana cultivator comprised of residents of 265 the commonwealth organized as a limited liability company or limited liability partnership under 266 the laws of the commonwealth, or an appropriate business structure as determined by the 267 commission, and that is licensed to cultivate, obtain, manufacture, process, package and brand 268 marijuana and marijuana products to deliver marijuana to marijuana establishments but not to 269 consumers. 14 of 75 270 “Cultivation batch”, a collection of marijuana plants from the same seed or plant stock 271 that are cultivated and harvested together, and receive an identical propagation and cultivation 272 treatment, including, but not limited to: growing media, ambient conditions, watering and light 273 regimes and agricultural or hydroponic inputs. The marijuana licensee shall assign and record a 274 unique, sequential alphanumeric identifier to each cultivation batch for the purposes of 275 production tracking, product labeling and product recalls. 276 “Experienced marijuana establishment operator”, (i) a medical marijuana treatment 277 center as defined in chapter 369 of the acts of 2012 with a registration in good standing, or (ii) a 278 reorganized marijuana business established by a vote of at least 2/3 of the board of directors of 279 an entity that submitted an application for a registration to operate a medical marijuana treatment 280 center to the department of public health before October 1, 2015 and was issued a provisional 281 registration to operate a medical marijuana treatment center by the department of public health 282 before the effective date of this chapter. 283 “Finished marijuana”, usable marijuana, cannabis resin or cannabis concentrate. 284 “Hemp”, the plant of the genus Cannabis or any part of the plant, whether growing or 285 not, with a delta-9-tetrahydrocannabinol concentration that does not exceed 0.3 per cent on a dry 286 weight basis of any part of the plant of the genus Cannabis, or per volume or weight of marijuana 287 product, or the combined per cent of delta-9-tetrahydrocannabinol and tetrahydrocannabinolic 288 acid in any part of the plant of the genus Cannabis regardless of moisture content. 289 290 “Host community”, a municipality in which a marijuana establishment is located or in which an applicant has proposed locating a marijuana establishment. 15 of 75 291 “Independent testing laboratory”, a laboratory that is licensed by the commission and is: 292 (i) accredited to the most current International Organization for Standardization 17025 by a 293 third-party accrediting body that is a signatory to the International Laboratory Accreditation 294 Accrediting Cooperation mutual recognition arrangement or that is otherwise approved by the 295 commission; (ii) independent financially from any medical marijuana treatment center or any 296 licensee or marijuana establishment for which it conducts a test; and (iii) qualified to test 297 marijuana in compliance with regulations promulgated by commission pursuant to this chapter. 298 299 300 301 302 303 304 “Laboratory agent”, an employee of an independent testing laboratory who transports, possesses or tests marijuana. “Licensee”, a person or entity licensed by the commission to operate a marijuana establishment under this chapter. “Manufacture”, to compound, blend, extract, infuse or otherwise make or prepare a marijuana product. “Marijuana” or “Marihuana”, all parts of any plant of the genus Cannabis, not excepted 305 below and whether growing or not; the seeds thereof; and resin extracted from any part of the 306 plant; and every compound, manufacture, salt, derivative, mixture or preparation of the plant, its 307 seeds or resin including tetrahydrocannabinol as defined in section 1 of chapter 94C; provided 308 that “Marijuana” shall not include: (1) The mature stalks of the plant, fiber produced from the 309 stalks, oil, or cake made from the seeds of the plant, any other compound, manufacture, salt, 310 derivative, mixture or preparation of the mature stalks, fiber, oil, or cake made from the seeds of 311 the plant or the sterilized seed of the plant that is incapable of germination; (2) Hemp; or (3) The 16 of 75 312 weight of any other ingredient combined with marijuana to prepare topical or oral 313 administrations, food, drink or other products. 314 “Marijuana accessories”, equipment, products, devices or materials of any kind that are 315 intended or designed for use in planting, propagating, cultivating, growing, harvesting, 316 manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, 317 packaging, repackaging, storing, containing, ingesting, inhaling or otherwise introducing 318 marijuana into the human body. 319 “Marijuana cultivator”, an entity licensed to cultivate, process and package marijuana, to 320 deliver marijuana to marijuana establishments and to transfer marijuana to other marijuana 321 establishments, but not to consumers. 322 “Marijuana establishment”, a marijuana cultivator, independent testing laboratory, 323 marijuana product manufacturer, marijuana retailer or any other type of licensed marijuana- 324 related business. 325 “Marijuana product manufacturer”, an entity licensed to obtain, manufacture, process 326 and package marijuana and marijuana products, to deliver marijuana and marijuana products to 327 marijuana establishments and to transfer marijuana and marijuana products to other marijuana 328 establishments, but not to consumers. 329 “Marijuana products”, products that have been manufactured and contain marijuana or 330 an extract from marijuana, including concentrated forms of marijuana and products composed of 331 marijuana and other ingredients that are intended for use or consumption, including edible 332 products, beverages, topical products, ointments, oils and tinctures. 17 of 75 333 “Marijuana retailer”, an entity licensed to purchase and deliver marijuana and marijuana 334 products from marijuana establishments and to deliver, sell or otherwise transfer marijuana and 335 marijuana products to marijuana establishments and to consumers. 336 “Mycotoxin”, a secondary metabolite of a microfungus that is capable of causing death or 337 illness in humans and other animals. For the purposes of this chapter, mycotoxin shall include 338 alfatoxin B1, alfatoxin B2, alfatoxin G1, alfatoxin G2, and ochratoxin A. 339 “Process" or “processing”, to harvest, dry, cure, trim and separate parts of the marijuana 340 plant by manual or mechanical means, except it shall not include manufacture as defined in this 341 section. 342 “Production batch”, a batch of finished plant material, cannabis resin, cannabis 343 concentrate or marijuana-infused product made at the same time, using the same methods, 344 equipment and ingredients. The licensee shall assign and record a unique, sequential 345 alphanumeric identifier to each production batch for the purposes of production tracking, product 346 labeling and product recalls. All production batches shall be traceable to 1 or more marijuana 347 cultivation batches. 348 349 350 “Residual solvent”, a volatile organic chemical used in the manufacture of a marijuana product and that is not completely removed by practical manufacturing techniques. “Terpenoid”, an isoprene that are the aromatic compounds found in cannabis, including, 351 but not limited to: limonene, myrcene, pinene, linalool, eucalyptol, δ-terpinene, ß-caryophyllene, 352 caryophyllene oxide, nerolidol and phytol. 18 of 75 353 “Unreasonably impracticable”, that the measures necessary to comply with the 354 regulations, ordinances or by-laws adopted pursuant to this chapter subject licensees to 355 unreasonable risk or require such a high investment of risk, money, time or any other resource or 356 asset that a reasonably prudent businessperson would not operate a marijuana establishment. 357 SECTION 21. Section 2 of said chapter 94G, as so appearing in the 2016 official edition, 358 is hereby amended by striking out clause (3) of subsection (d) and inserting in place thereof the 359 following clause:- 360 (3) authorize the possession or consumption of marijuana or marijuana accessories on the 361 grounds of or within a public or private school where children attend classes in preschool 362 programs, kindergarten programs or grades 1 to 12, inclusive, on a school bus, in any youth 363 center, or on the grounds of or within any correctional facility or detoxification facility. 364 365 SECTION 22. Said section 2 of said chapter 94G, as so appearing, is hereby amended by inserting, after the year “2012”, in line 55, the following:- 366 except where otherwise provided for in this chapter 367 SECTION 23.Section 3 of said chapter 94G, as so appearing, is hereby amended by 368 striking, beginning in line 9, “prohibit placing a marijuana establishment which cultivates, 369 manufactures or sells marijuana or marijuana products in any area in which a medical marijuana 370 treatment center is registered to engage in the same type of activity; (2) limit the number of 371 marijuana establishments in the city or town, except that a city or town may only adopt an 372 ordinance or by-law by a vote of the voters of that city or town if the ordinance or by-law: (i) 373 prohibits” and inserting in place thereof the following:- 19 of 75 374 “operate to (1) prevent the conversion of a medical marijuana establishment licensed on 375 or before July 1, 2017 engaged in the cultivation, manufacture or sale of marijuana or marijuana 376 products to a marijuana establishment engaged in the same type of activity under this chapter or 377 (2) limit the number of marijuana establishments below the limits established pursuant to 378 paragraph (2); 379 (2) limit the number of marijuana establishments in the city or town, provided, however, 380 that, in the case of a city or town in which the majority of voters voted in the affirmative for 381 question 4 on the 2016 state election ballot, entitled “Legalization, Regulation, and Taxation of 382 Marijuana, and, after December 31, 2019 in the case of any other city or town, the city or town 383 shall submit any by-law or ordinance for approval to the voters pursuant to the procedure in 384 subsection (e) before adopting the by-law or ordinance if it would: 385 (i) prohibit”. 386 SECTION 24. Said section 3 of said chapter 94G, as so appearing, is hereby amended by 387 striking, in line 20, the word “limits” and inserting in place thereof the following word:- 388 “limit”. 389 SECTION 25. Said section 3 of said chapter 94G, as so appearing, is hereby amended by 390 striking, in line 24, the word “limits” and inserting in place thereof the following word:- 391 “limit”. 392 SECTION 26. Said section 3 of said chapter 94G, as so appearing, is hereby amended by 393 inserting after the word “establishments”, in line 30, the following:- 20 of 75 394 provided that if a city or town enacts an ordinance or by-law above the commission’s 395 standard, no such local ordinance or by-law may impose a standard for signage more restrictive 396 than those applicable to retail establishments that sell alcoholic beverages within that city or 397 town. 398 399 400 SECTION 27. Said section 3 of said chapter 94G, as so appearing, is hereby amended by striking subsection (d) and inserting in place thereof the following:(d) A marijuana establishment or a medical marijuana treatment center seeking to 401 operate or continue to operate in a municipality which permits such operation shall execute an 402 agreement with the host community setting forth the conditions to have a marijuana 403 establishment located within the host community which shall include, without limitation, all 404 stipulations of responsibilities between the host community and the marijuana establishment or a 405 medical marijuana treatment center. An agreement between a marijuana establishment or a 406 medical marijuana treatment center and a host community may include a community impact fee 407 for the host community, provided, however that the community impact fee shall be reasonably 408 related to the costs imposed upon the municipality by the operation of the establishment and 409 shall, in no event, amount to more than 3 percent of the gross sales of the establishment or be 410 effective for longer than 5 years. Any cost to a city or town imposed by the operation of a 411 marijuana establishment shall be documented and considered a public record as defined by 412 clause Twenty-sixth of section 7 of chapter 4 of the General Laws. 413 414 (e) If an ordinance or by-law must be submitted for approval pursuant to subsection (a)(2), the following procedures will be followed: 21 of 75 415 (1) The city solicitor or town counsel shall prepare a fair and concise summary of the 416 proposed ordinance or by-law which will make clear the number and types of marijuana 417 establishments which will be permitted to operate under the proposed ordinance and by-law and 418 shall be included on the ballot. 419 420 421 (2) A ballot shall be prepared asking "Shall this [city or town] adopt the following [bylaw or ordinance]? [solicitor/counsel summary] [full text of by-law or ordinance] (3) If the majority of the votes cast in answer to the question are in the affirmative, the 422 city or town may adopt the by-law or ordinance, but if the majority is in the negative, the city or 423 town shall not adopt the by-law or ordinance. 424 A ballot question under this subsection may be placed on the ballot at a regular or special 425 election held by the city or town by a vote of the board of selectmen or city or town council, with 426 the approval of the mayor, and subject to a municipal charter, if applicable. 427 428 429 430 SECTION 28. Section 4 of said chapter 94G, as so appearing, is hereby amended by striking out subsection (a) and inserting in place thereof the following 2 subsections:(a) The commission shall have all the powers necessary or convenient to carry out and effectuate its purposes including, but not limited to, the power to: 431 (i) appoint officers and hire employees; 432 (ii) establish and amend a plan of organization that it considers expedient; 433 (iii) execute all instruments necessary or convenient for accomplishing the purposes of 434 this chapter; 22 of 75 435 (iv) enter into agreements or other transactions with a person, including, but not limited 436 to, a public entity or other governmental instrumentality or authority in connection with its 437 powers and duties under this chapter; 438 439 (v) appear on its own behalf before boards, commissions, departments or other agencies of municipal, state or federal government; 440 (vi) apply for and accept subventions, grants, loans, advances and contributions of 441 money, property, labor or other things of value from any source, to be held, used and applied for 442 its purposes; 443 (vii) provide and pay for advisory services and technical assistance as may be necessary 444 in its judgment to carry out this chapter and fix the compensation of persons providing such 445 services or assistance; 446 (viii) prepare, publish and distribute, with or without charge as the commission may 447 determine, such studies, reports, bulletins and other materials as the commission considers 448 appropriate; 449 (ix) require an applicant for licensure under this chapter to apply for such licensure and 450 approve or disapprove any such application or other transactions, events and processes as 451 provided in this chapter; 452 (x) determine which applicants shall be awarded licenses; 453 (xi) deny an application or limit, condition, restrict, revoke or suspend a license; 454 (xii) establish a registration process, based on finding of suitability or approval of 455 licensure; 23 of 75 456 457 458 (xiii) fine a person licensed, registered, found suitable or approved for licensure, for any cause that the commission deems reasonable; (xiv) gather facts and information applicable to the commission’s obligation to issue, 459 suspend or revoke licenses, registrations, finding of suitability or approval of licensure for: (A) a 460 violation of this chapter or any regulation adopted by the commission; (B) willfully violating an 461 order of the commission directed to a licensee or a person required to be registered; (C) the 462 conviction of a criminal offense; or (D) any other offense which would disqualify such a licensee 463 from holding a license; 464 465 466 (xv) conduct investigations into the qualifications of all applicants for employment by the commission and all applicants for licensure; (xvi) receive from the state police, the department of criminal justice information services 467 or other criminal justice agencies including, but not limited to, the Federal Bureau of 468 Investigation and the Internal Revenue Service, such criminal offender record information 469 relating to criminal and background investigations as necessary for the purpose of evaluating 470 licensees, applicants for license, and lab agents as provided in section 21; 471 472 473 474 (xvii) be present, through its inspectors and agents, at any time, in marijuana establishments for the purposes of exercising its oversight responsibilities; (xviii) inspect and have access to all equipment and supplies in a marijuana establishment; 24 of 75 475 (xix) seize and remove from the premises of a marijuana establishment and impound any 476 marijuana, equipment, supplies, documents and records obtained or possessed in violation of this 477 chapter for the purpose of examination and inspection; 478 (xx) For cause, demand access to and inspect all papers, books and records of close 479 associates of a licensee whom the commission suspects is involved in the financing, operation or 480 management of the licensee; provided, however, that the inspection, examination, photocopying 481 and audit may take place on the affiliate’s premises or elsewhere as practicable and in the 482 presence of the affiliate or its agent; 483 484 485 486 (xxi) require that the books and financial or other records or statements of a licensee be kept in a manner that the commission considers proper; (xxii) impose fees and fines, as authorized by this chapter and penalties and sanctions for a violation of this chapter or any regulations promulgated by the commission; 487 (xxiii) collect fees under this chapter; 488 (xxiv) conduct adjudicatory proceedings and promulgate regulations in accordance with 489 490 491 chapter 30A; (xxv) refer cases for criminal prosecution to the appropriate federal, state or local authorities; 492 (xxvi) maintain an official internet website for the commission; 493 (xxvii) monitor any federal activity regarding marijuana; and 25 of 75 494 495 496 (xxviii) adopt, amend or repeal regulations for the implementation, administration and enforcement of this chapter. (a ½) The commission shall, in accordance with chapter 30A of the General Laws, adopt 497 regulations consistent with this chapter for the administration, clarification and enforcement of 498 laws regulating and licensing marijuana establishments. The regulations shall include: 499 500 501 (i) methods and forms of application which an applicant for a license shall follow and complete before consideration by the commission; (ii) a schedule of application, license and renewal fees in an amount necessary to pay for 502 all regulation and enforcement costs of the commission; provided however that fees may be 503 relative to the volume of business conducted or to be conducted by the marijuana establishment. 504 (iii) qualifications for licensure and minimum standards for employment that are 505 directly and demonstrably related to the operation of a marijuana establishment and similar to 506 qualifications for licensure and employment standards in connection with alcoholic beverages as 507 regulated under chapter 138 of the General Laws; provided that a prior conviction solely for a 508 marijuana-related offense or for a violation of section 34 of chapter 94C of the General Laws 509 shall not disqualify an individual or otherwise affect eligibility for employment or licensure in 510 connection with a marijuana establishment, unless the offense involved the distribution of a 511 controlled substance, including marijuana, to a minor; 512 (iv) procedures and policies to promote and encourage full participation in the 513 regulated marijuana industry by people from communities that have previously been 514 disproportionately harmed by marijuana prohibition and enforcement and to positively impact 26 of 75 515 those communities; (v) standards for the licensure of marijuana establishments, including, but 516 not limited to updating that licensure; 517 (vi) standards for the reporting or payment of licensure fees or taxes; 518 (vii) requirements for the information to be furnished by an applicant or licensee; 519 (viii) criteria for evaluation of the application for a license; 520 (ix) requirements for the information to be furnished by a licensee relating to the 521 522 523 licensee’s employees; (x) requirements for fingerprinting or other method of identification of an applicant for a license or a licensee; 524 (xi) procedures and grounds for the revocation or suspension of a license or registration; 525 (xii) minimum uniform standards of accounting procedures; 526 (xiii) requirements for record keeping by marijuana establishments and procedures to 527 track marijuana cultivated, processed, manufactured, delivered or sold by marijuana 528 establishments; 529 530 531 532 (xiv) any necessary registration requirements for employees working at the marijuana establishment; (xv) requirements that all marijuana establishment employees be properly trained in their respective professions as necessary; 27 of 75 533 534 535 (xvi) procedures for the interim authorization of a marijuana establishment under this chapter; (xvii) minimum standards for the requirement that all licensees possess and operate an 536 interoperable publicly available application programming interface seed-to-sale tracking system 537 sufficient to ensure the appropriate track and trace of all marijuana cultivated, processed or 538 manufactured pursuant to this chapter; 539 (xviii) minimum security requirements for licensees sufficient to deter and prevent theft 540 and unauthorized entrance into areas containing marijuana, which shall include but not be limited 541 to the use of security cameras, provided that the requirements shall not prohibit the cultivation of 542 marijuana outdoors or in greenhouses; 543 544 545 (xix) minimum standards for liability insurance coverage or requirements that a certain sum be placed in escrow to be expended for coverage liabilities; (xx) requirements and standards sufficient to ensure for the virtual separation of 546 marijuana cultivated, processed, manufactured, delivered or sold by a licensee that is also 547 licensed as a medical marijuana treatment center pursuant to chapter 369 of the acts of 2012 or 548 chapter 94I. Such requirements shall leverage seed-to-sale tracking technology and may allow 549 for the appropriate transfer or acquisition of marijuana seeds, clones, cuttings, plants or plant 550 tissue between such entities; 551 (xxi) requirements and procedures to prevent the sale, delivery or transfer of marijuana 552 to persons under 21 years of age, or the purchase of marijuana on behalf of a person under 21 553 years of age, including a prohibition on persons under 21 entering marijuana establishments; 28 of 75 554 (xxii) standards for manufacturing or extracting cannabinoid oils or butane hash oil; 555 (xxiii) health and safety standards, established in consultation with the department of 556 public health and the department of agricultural resources, for the cultivation, processing, 557 manufacturing and distribution of marijuana, including standards regarding sanitation for the 558 preparation, storage, handling and sale of food products, including compliance with state 559 sanitation requirements set forth in 105 CMR 500.000, and health inspections provided however, 560 that the authority to promulgate regulations pertaining to the use of pesticides shall remain with 561 the department of agricultural resources; 562 (xxiv) requirements for the packaging of marijuana and marijuana products that shall, at a 563 minimum: (1) require the most current consumer product safety commission standards, set forth 564 in 16 C.F.R. 1700 et seq.; (2) protect children from accidently ingesting marijuana or marijuana 565 products, including by making packaging certified child-resistant and resealable; (3) require the 566 division of each serving within a package containing multiple servings in a manner that allows 567 consumers and card holders to easily identify a single serving; (4) prohibit the use of bright 568 colors, cartoon characters and other features designed to appeal to minors; (5) ensure that 569 packaging is opaque or plain in design; (6) limit each serving size to no greater than 10 570 milligrams of delta-nine-tetrahydrocannabinol (∆9-THC); and (7) prohibit any packaging that 571 imitates or has a semblance to any existing branded consumer products, including foods and 572 beverages, that do not contain marijuana 573 574 (xxv) requirements for the potency or dosing limitations of edible marijuana products sold by licensees 29 of 75 575 (xxvi) requirements for the labeling of a package containing marijuana or marijuana 576 products that shall, at a minimum, include: (1) a symbol or easily recognizable mark issued by 577 the commission that indicates the package contains marijuana or a marijuana product; (2) a 578 symbol or other easily recognizable mark issued by the commission on the package indicating to 579 children that the product is harmful to children; (3) the name and contact information of the 580 marijuana cultivator or the marijuana product manufacturer who produced the marijuana or 581 marijuana product; (4) the results of sampling, testing and analysis conducted by a licensed 582 independent testing laboratory; (5) a seal certifying the marijuana meets such testing standards; 583 (6) a unique batch number identifying the production batch associated with manufacturing, 584 processing, and cultivating; (7) a list of ingredients and possible allergens; (8) the amount of 585 delta-nine-tetrahydrocannabinol (∆9-THC) in the package and in each serving of a marijuana 586 product as expressed in absolute terms and as a percentage of volume; (9) the number of servings 587 in a package if there are multiple servings; (10) a use-by date, if applicable; and (11) the 588 following statement, including capitalization: “This product has not been analyzed or approved 589 by the FDA. There is limited information on the side effects of using this product, and there may 590 be associated health risks. Marijuana use during pregnancy and breast-feeding may pose 591 potential harms. It is against the law to drive or operate machinery when under the influence of 592 this product. KEEP THIS PRODUCT AWAY FROM CHILDREN.” 593 (xxvii) procedures and policies, in cooperation with the department of agricultural 594 resources, to promote and encourage full participation in the regulated marijuana industry by 595 farmers and businesses of all sizes, which shall include creating a schedule of cultivator license 596 fees commensurate with cultivation size and regulations to create a craft marijuana cultivator 597 cooperative system, including but not limited to, the following: (1) a limitation on ownership 30 of 75 598 interests in a marijuana cultivator cooperative; (2) a limit on the total marijuana produced by a 599 craft marijuana cultivator by the number of plants, surface area used for cultivation or output by 600 weight; and (3) a reasonable fee for licensure as a craft marijuana cultivator cooperative; 601 (xxviii) requirements for the safe disposal of excess, contaminated, adulterated or 602 deteriorated marijuana, which shall consider policies which promote the recycling of such waste, 603 including, but not limited to, recycled industrial products. 604 (xxix) requirements for advertising, marketing and branding of marijuana and marijuana 605 products that shall, at a minimum, include: (1) a prohibition on advertising, marketing and 606 branding in such a manner that is deemed to be deceptive, false, or misleading (2) a prohibition 607 on advertising, marketing and branding by means of television, radio, internet, billboard or print 608 publication unless at least 85 per cent of the audience is reasonably expected to be 21 years of 609 age or older, as determined by reliable, up-to-date audience composition data; (3) a prohibition 610 on advertising, marketing and branding which utilize statements, designs, representations, 611 pictures or illustrations that portray anyone less than 21 years of age; (4) a prohibition on 612 advertising, marketing and branding, including but not limited to mascots, cartoons, brand 613 sponsorships and celebrity endorsements that is deemed to appeal to a person or persons less 614 than 21 years of age; (5) a prohibition on advertising, marketing and branding, including 615 statements by a licensee, that make any false or misleading statements concerning other licensees 616 and the conduct and products of such other licensees; (6) a prohibition on advertising, marketing 617 and branding through certain identified promotional items as determined by the commission, 618 including giveaways, coupons or “free” or “donated” marijuana; (7) a prohibition on advertising, 619 marketing and branding by a licensee that asserts its products are safe, other than labeling 620 required pursuant to this chapter; (8) a reasonable prohibition on timing and use of illuminated 31 of 75 621 external signage that shall comply with all local ordinances and requirements and a prohibition 622 on neon signage; (9) a prohibition of the use of vehicles equipped with either radio or loud 623 speakers for the advertising of marijuana; (10) a prohibition on the use of radio or loud speaker 624 equipment in any marijuana establishment for the purpose of attracting attention to the sale of 625 marijuana; (11) an allowance that a licensee may sponsor a charitable, sports, or similar event, 626 but a prohibition of advertising, marketing, and branding at, or in connection with, such an event 627 unless at least 85 per cent of the audience is reasonably expected to be 21 years of age or older, 628 as determined by reliable, up-to-date audience composition data; (12) a requirement that the 629 website of a marijuana establishment shall verify that the entrant is at least 21 years of age; (13) 630 a prohibition on the use of unsolicited pop-up advertisements on the internet; and (14) a 631 requirement that all advertising, marketing, or branding materials for marijuana and marijuana 632 products contain a standard health warning developed by the department of public health. 633 (xxx) procedures and requirements to enable the transfer of a license for a marijuana 634 establishment to another qualified person or to another suitable location with notification and 635 approval by the commission. 636 637 638 (xxxi) requirements to establish a process allowing the commission to order a prohibition on the sale of a marijuana product found especially appealing to persons under 21; (xxxii) requirements to establish a process allowing a marijuana product manufacturer to 639 voluntarily submit a product, its packaging and intended marketing to the commission for review 640 of whether the product is especially appealing to persons under 21; 641 642 (xxxiii) requirements that prohibit marijuana product manufacturers from altering or utilizing commercially-manufactured food products when manufacturing marijuana products 32 of 75 643 unless the food product was commercially manufactured specifically for use by the marijuana 644 product manufacturer to infuse with marijuana; provided, however, that a commercially- 645 manufactured food product may be used as an ingredient in a marijuana product if: (i) it is used 646 in a way that renders it unrecognizable as the commercial food product in the marijuana product; 647 and (ii) there is no statement or advertisement indicating that the marijuana product contains the 648 commercially-manufactured food product; and 649 650 651 (xxxix) energy and environmental standards for licensure and licensure renewal of marijuana establishments licensed as a marijuana cultivator or marijuana product manufacturer SECTION 29. Clause (xx) of subsection (a½) of section 4 of said chapter 94G, as 652 appearing in section 28, is hereby amended by striking out the words “369 of the acts of 2012” 653 and inserting in place thereof the following figure:- 94I 654 655 656 657 658 659 660 SECTION 30. Said section 4 of said chapter 94G, as so appearing, is hereby amended by striking subsections (b)(2) and (b)(3). SECTION 31. Said section 4 of said chapter 94G, as so appearing, is hereby amended by striking subsection (c)(2). SECTION 32 . Said section 4 of said chapter 94G is hereby further amended by striking subsections (e) and (f) and inserting in place thereof the following subsections:(e) Each fiscal year the commission shall submit an annual finance plan to the secretary 661 of administration and finance, and updates to such plan, in accordance with instructions issued 662 by said secretary. 33 of 75 663 (f) The commission shall investigate, in conjunction with the department of public 664 health, the effects of marijuana and marijuana products with a high potency of 665 tetrahydrocannabinol on the human body and recommend whether there should be restrictions on 666 the potency of tetrahydrocannabinol in marijuana and marijuana products. 667 SECTION 33. Said section 4 of said chapter 94G, as so appearing, is hereby further 668 amended by striking out subsections (h) and (i) and inserting in place thereof the following 2 669 subsections:- 670 (h) The commission shall annually submit a complete and detailed report of the 671 commission’s activities, including a review of the implementation and enforcement of this 672 chapter and the governance structure established in this chapter, not more than 90 days after the 673 end of the fiscal year to the governor, the attorney general, the treasurer and receiver-general, the 674 clerks of the house of representatives and the senate, the chairs of the joint committee on 675 marijuana policy and the chairs of the house and senate committees on ways and means. 676 (i) The commission shall annually review the tax rate established by chapter 64N and 677 may make recommendations to the general court, as appropriate, regarding any changes to the 678 tax rate that further the intent of this chapter. The commission may study marijuana commerce 679 and make recommendations to the general court regarding changes in the laws that further the 680 intent of this chapter by filing those recommendations with the clerks of the house of 681 representatives and the senate who shall forward the recommendations to the joint committee on 682 marijuana policy, the joint committee on consumer protection and professional licensure, the 683 joint committee on revenue, the joint committee on mental health, substance use and recovery, 34 of 75 684 the joint committee on public health and any other committee deemed appropriate by the 685 commission. 686 SECTION 34. Said section 4 of said chapter 94G, as so appearing, is hereby further 687 amended by striking out, in line 187, the figure “15” and inserting in place thereof the following 688 figure:- 689 14 690 SECTION 35. Said section 4 of said chapter 94G is hereby amended by inserting the 691 692 693 694 following subsection:(l) The commission shall promulgate advisory guidelines and best practices on the cultivating of marijuana within a person’s primary residence; SECTION 36. Section 5 of said chapter 94G, as so appearing, is hereby amended by 695 striking out, in line 11, the words “Except as provided in subsection (c) of this section, the” and 696 inserting in place thereof the following word:- 697 The. 698 SECTION 37. Said section 5 of said chapter 94G, as so appearing, is hereby further 699 700 701 702 703 amended by striking out subsection (c). SECTION 38. Section 9 of said chapter 94G, as so appearing, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:(b) Any licensee, or agent or employee thereof, under this chapter who reasonably relies on a liquor purchase identification card issued pursuant to section 34B of chapter 138 or motor 35 of 75 704 vehicle license issued pursuant to section eight of chapter ninety, or on an identification card 705 issued under section 8E of chapter 90, or on a valid passport issued by the United States 706 government, or by the government, recognized by the United States government, of a foreign 707 country, or a valid United States issued military identification card, for proof of a person's 708 identity and age shall not suffer any modification, suspension, revocation or cancellation of such 709 license, nor shall he suffer any criminal liability, for delivering or selling marijuana or marijuana 710 products to a person under 21 years of age. Any licensee, or agent or employee thereof, under 711 this chapter, who reasonably relies on a liquor purchase identification card issued pursuant to 712 said section 34B of said chapter 138, or an identification card issued under said section 8E of 713 said chapter 90, or motor vehicle license issued pursuant to said section 8, for proof of a person's 714 identity and age shall be presumed to have exercised due care in making such delivery or sale of 715 marijuana or marijuana products to a person under 21 years of age. Such presumption shall be 716 rebuttable. 717 718 719 720 721 722 SECTION 39. Section 12 of said chapter 94G, as so appearing, is hereby amended by adding the following subsection:(g) No licensee shall operate a marijuana establishment without an operations certificate issued by the commission. (h) Each licensee shall file an emergency response plan with the fire department and police department of the host community 723 SECTION 40. Section 13 of said chapter 94G, as so appearing, is hereby 724 amended by adding the following 2 subsections:- 36 of 75 725 (h) Notwithstanding chapter 94C, a person less than 21 years of age, except a qualifying 726 patient holding a valid registration card for the medical use of marijuana, who cultivates not 727 more than 12 marijuana plants shall be punished by a civil penalty of not more than $100 and 728 shall complete a drug awareness program established pursuant to section 32M of chapter 94C. If 729 that person is less than 18 years of age, the parent or legal guardian of that person shall be 730 notified in accordance with section 32N of said chapter 94C. If a person is less than 17 years of 731 age at the time of the offense and fails to complete a drug awareness program not later than 1 732 year after the offense, that person may be subject to delinquency proceedings. 733 (i) Whoever furnishes marijuana, marijuana products or marijuana 734 accessories to a person less than 21 years of age, either for the person’s own use or for 735 the use of the person’s parent or another person shall be punished by a fine of not more than 736 $2,000 or by imprisonment for not more than 1 year or both such fine and imprisonment. 737 For the purposes of this subsection, “furnish” shall mean to knowingly or intentionally 738 supply, give or provide to or allow a person less than 21 years of age, except for the 739 children and grandchildren of the person being charged, to possess marijuana, marijuana 740 products or marijuana accessories on premises or property owned or controlled by the person 741 charged. 742 743 This subsection shall not apply to the sale, delivery or furnishing of medical marijuana pursuant to chapter 369 of the acts of 2012 . 37 of 75 744 SECTION 41. The second paragraph of subsection (i) of said chapter 94G, as appearing 745 in section 40, is hereby amended by striking out the words “369 of the acts of 2012” and 746 inserting in place thereof the following figure:- 94I. 747 748 749 SECTION 42. Section 14 of said chapter 94G, as so appearing, is hereby amended by striking out subsection (b) and inserting in place thereof the following subsection:(b) Money in the fund shall be subject to appropriation. Money in the fund shall be 750 expended for the implementation, administration and enforcement of this chapter by the 751 commission and by the department of agricultural resources for the implementation, 752 administration and enforcement of sections 116-123, inclusive, of chapter 128 and the provision 753 of pesticide control pursuant to chapter 132B. Thereafter, money in the fund shall be expended 754 for: (i) public and behavioral health including but not limited to, evidence-based and evidence- 755 informed substance use prevention and treatment and substance use early intervention services in 756 a recurring grant for school districts or community coalitions who operate on the strategic 757 prevention framework or similar structure for youth substance use education and prevention; (ii) 758 public safety; (iii) municipal police training; (iv) the Prevention and Wellness Trust Fund 759 established in section 2G of chapter 111; and (v) programming for restorative justice, jail 760 diversion, workforce development, industry specific technical assistance, and mentoring services 761 for economically-disadvantaged persons in communities disproportionately impacted by high 762 rates of arrest and incarceration for marijuana offenses pursuant to chapter 94C. 763 764 SECTION 43. Said chapter 94G is hereby further amended by adding the following sections:- 38 of 75 765 Section 15. (a) (1) The commission shall promulgate regulations for the licensure and 766 oversight of independent testing laboratories, and shall establish testing protocols for the 767 sampling, testing and analysis of marijuana, finished marijuana and marijuana products in 768 consultation with the department of public health and the department of agricultural resources. 769 Such regulations shall be based on the most recent standards as issued by the United States 770 Pharmacopeia Convention and shall address sampling and analysis to characterize the 771 cannabinoid profile and biological and chemical contaminants, including but not limited to 772 terpenoids, pesticides, plant growth regulators, metals, microbiological contaminants, 773 mycotoxins, and residual solvents introduced through cultivation of marijuana plants and post- 774 harvest processing and handling of marijuana, marijuana products and ingredients. 775 (2) No marijuana or marijuana product shall be sold or otherwise marketed pursuant to 776 this chapter or chapter 369 of the acts of 2012 that has not first been tested by an independent 777 testing laboratory and determined to meet the commission’s testing protocols issued pursuant to 778 subsection (a)(1). 779 780 781 (3) An independent testing laboratory shall report any results indicating contamination to the commission within 72 hours of identification. (4) No laboratory agent or employee of an independent testing laboratory shall receive 782 direct or indirect financial compensation, other than such reasonable contractual fees to conduct 783 such testing, from any entity for which it is conducting testing pursuant to this chapter. 784 (5) No individual who possesses an interest in or is a laboratory agent employed by an 785 independent testing laboratory, and no immediate family member of that individual, shall possess 786 an interest in or be employed by a marijuana establishment. 39 of 75 787 788 789 790 (b)(1) An independent testing laboratory shall apply for a certificate of registration from the commission prior to testing, processing or transporting marijuana. (2) A laboratory agent shall be registered with the commission prior to volunteering or working at an independent testing laboratory. 791 (3) An independent testing laboratory shall apply to the commission for a registration 792 card for each affiliated laboratory agent by submitting, at a minimum, the name, address, and 793 date of birth of the laboratory agent. 794 (4) An independent testing laboratory shall notify the commission within 1 business day 795 if a laboratory agent ceases to be associated with the laboratory, and the laboratory agent's 796 registration card shall be immediately revoked. 797 (5) No one shall be a laboratory agent who has been convicted of a felony drug offense. 798 The commission may conduct criminal record checks with the department of criminal justice 799 information services as provided in section 21 and may set standards and procedures to enforce 800 this provision. Such standards and procedures may include requiring applicants seeking 801 registration to submit a full set of fingerprints for the purposes of conducting a state and national 802 criminal history records check pursuant to sections 167 to 178, inclusive, of chapter 6 and 28 803 U.S.C. section 534 through the department of criminal justice information services and the 804 Federal Bureau of Investigation. The commission shall treat such information in accordance with 805 said sections 167 to 178, inclusive, of said chapter 6 and the regulations thereunder. 806 (c) A registered laboratory agent shall not be subject to arrest, prosecution, civil penalty, 807 sanctions or disqualifications, and shall not be subject to seizure or forfeiture of assets under 808 Massachusetts law for actions taken under the authority of an independent testing laboratory, 40 of 75 809 including possessing, processing, storing, transferring or testing marijuana provided the agent: 810 (1) presents his or her registration card to any law enforcement official who questions the 811 laboratory agent concerning their marijuana related activities; and (2) is acting in accordance 812 with all the requirements of chapters 94G and 94I of the General Laws. 813 Section 16. No licensee shall be granted more than 3 marijuana retailer licenses, 3 814 medical marijuana treatment center licenses, 3 marijuana product manufacturer licenses or 3 815 marijuana cultivator licenses; provided, however, that a licensee may hold 3 marijuana retailer 816 licenses, 3 medical marijuana treatment center licenses, 3 marijuana product manufacturer 817 licenses and 3 marijuana cultivator licenses. 818 Section 17. (a) The commission shall develop a research agenda in order to understand 819 the social and economic trends of marijuana in the commonwealth, to inform future decisions 820 that would aid in the closure of the illicit marketplace and to inform the commission on the 821 public health impacts of marijuana. The research agenda shall include, but not be limited to: (i) 822 patterns of use, methods of consumption, sources of purchase and general perceptions of 823 marijuana among minors, among college and university students and among adults; (ii) incidents 824 of impaired driving, hospitalization and use of other health care services related to marijuana use, 825 including a report of the state of the science around identifying a quantifiable level of marijuana- 826 induced impairment of motor vehicle operation and a report on the financial impacts on the state 827 healthcare system of hospitalizations related to marijuana ; (iii) economic and fiscal impacts for 828 state and local governments including the impact of legalization on the production and 829 distribution of marijuana in the illicit market and the costs and benefits to state and local 830 revenue; (iv) ownership and employment trends in the marijuana industry examining 831 participation by racial, ethnic and socioeconomic subgroups, including identification of barriers 41 of 75 832 to participation in the industry; (v) a market analysis examining the expansion or contraction of 833 the illicit marketplace and the expansion or contraction of the legal marketplace including 834 estimates and comparisons of pricing and product availability in both markets; and; (vi) a 835 compilation of data on the number of incidents of discipline in schools, including suspensions or 836 expulsions, resulting from marijuana use or possession of marijuana or marijuana products; and 837 (vii) a compilation of data on the number of civil penalties, arrests, prosecutions, incarcerations 838 and sanctions imposed for violations of chapter 94C for possession, distribution or trafficking of 839 marijuana or marijuana products, including the age, race, gender, country of origin, state 840 geographic region and average sanctions of the persons charged. 841 (b) The commission shall incorporate available data into its research agenda, including 842 the baseline study conducted pursuant to chapter 351 of the acts of 2016, and coordinate and 843 form partnerships with the department of public health, the department of elementary and 844 secondary education, the department of higher education, the executive office of public safety 845 and security and the executive office of labor and workforce development. The commission shall 846 annually report on the results of its research agenda and, when appropriate, make 847 recommendations for further research or policy changes. The annual reports shall be posted 848 online in a machine-readable format. The commission shall publish the first such report not later 849 than July 1, 2019. 850 Section 18. The commission shall audit as often as the commission determines necessary 851 the accounts, programs, activities, and functions of all licensees. To conduct the audit, authorized 852 officers and employees of the commission shall have access to such accounts at reasonable times 853 and the commission may require the production of books, documents, vouchers and other records 854 relating to any matter within the scope of the audit, except tax returns. The superior court shall 42 of 75 855 have jurisdiction to enforce the production of records that the commission requires to be 856 produced under this section and the court shall order the production of all such records within the 857 scope of any such audit. All audits shall be conducted in accordance with generally accepted 858 auditing standards established by the American Institute of Certified Public Accountants. In any 859 audit report of the accounts, funds, programs, activities and functions of a licensee issued by the 860 commission containing adverse or critical audit results, the commission may require a response, 861 in writing, to the audit results. The response shall be forwarded to the commission within 15 days 862 of notification by the commission. 863 On or before April 1 of each year, the commission shall submit a report to the clerks of 864 the house of representatives and the senate who shall forward the report to the house and senate 865 committees on ways and means which shall include, but not be limited to: (i) the number of 866 audits performed under this section; (ii) a summary of findings under the audits; and (iii) the cost 867 of each audit. 868 Section 19. Any liability to the commonwealth under this chapter shall constitute a debt 869 to the commonwealth. Once a statement naming a licensee is recorded, registered or filed, any 870 such debt shall constitute a lien on all commercial property owned by a licensee in the 871 commonwealth and shall have priority over an encumbrance recorded, registered or filed with 872 respect to any site. 873 874 Section 20. A licensee shall be subject to chapters 62 to 62E, inclusive, and chapters 63 and 63B. 875 Section 21. (a) The commission shall conduct fingerprint-based checks of state and 876 national criminal history databases, as authorized by Public Law 92-544, for the following 43 of 75 877 purposes: (i) prior to issuing a license as provided in M.G.L. c. 94G, § 4 and (ii) to determine 878 the suitability of lab agents as provided in M.G.L. c. 94G, § 15 . Authorized department staff 879 may receive criminal offender record information and the results of checks of state and national 880 criminal history databases under said Public Law 92-544 but they shall not receive juvenile 881 adjudications and delinquency matters or sealed records. When the department obtains the 882 results of checks of state and national criminal history databases, it shall treat the information 883 according to section 167 to 178, inclusive, of chapter 6 and the regulations thereunder regarding 884 criminal offender record information. 885 (b) Fingerprint submissions shall be submitted by the commission to the identification 886 unit within the department of state police through the department of criminal justice information 887 services, or its successor, for a state criminal records check and to the Federal Bureau of 888 Investigation for a national criminal records check according to the policies and procedures 889 established by the identification unit and the department of criminal justice information services. 890 The department of state police and Federal Bureau of Investigation are expressly authorized to 891 search criminal justice databases including all latent fingerprint submissions. Fingerprint 892 submissions may be retained by the Federal Bureau of Investigation, the state identification 893 section and the department of criminal justice information services to assist the commission. 894 The department of criminal justice information services may disseminate the results of a state 895 and national criminal history check to the commission as provided in this section. 896 (c) Notwithstanding subsections 9 and 9 1/2 of section 4 of chapter 151B, if the 897 commission receives criminal history record information from the state or national fingerprint- 898 based criminal background checks that includes no disposition or is otherwise incomplete, the 899 commission may request that an individual provide additional information regarding the results 44 of 75 900 of the criminal background checks to assist the commission in determining the applicant's 901 suitability for employment, licensure, registration or approval. 902 (d) The department of criminal justice information services shall disseminate the results 903 of the criminal background check to the commission. The department of criminal justice 904 information services shall only disseminate information under this section that would otherwise 905 be available to the commission as provided in this section. 906 (e) All persons required to submit fingerprints under this section shall pay a fee to be 907 established by the secretary of administration and finance, in consultation with the secretary of 908 public safety and the commission, to offset the costs of operating and administering a 909 fingerprint-based criminal background check system. The secretary of administration and 910 finance, in consultation with the secretary of public safety and the commission, may increase the 911 fee accordingly if the Federal Bureau of Investigation increases its fingerprint background check 912 service fee. The commission may pay the fee on behalf of applicants or reimburse applicants for 913 all or part of the fee on the grounds of financial hardship. Any fees collected from fingerprinting 914 activity under this chapter shall be deposited into the Fingerprint-Based Background Check Trust 915 Fund, established in section 2HHHH of chapter 29. 916 SECTION 44. Paragraph (2) of subsection (a) of section 15 of said chapter 94G, as 917 appearing in section 44, is hereby amended by striking out the words “369 of the acts of 2012” 918 and inserting in place thereof the following figure:- 94I. 919 920 921 SECTION 45. The General Laws are hereby amended by inserting the following chapter:Chapter 94I 45 of 75 922 Medical Use of Marijuana 923 Section 1. As used in this chapter the following words shall, unless the context clearly 924 requires otherwise, have the following meanings:- 925 “Bona fide healthcare professional-patient relationship”, a relationship between a 926 registered healthcare professional, acting in the usual course of his or her professional practice, 927 and a patient in which the healthcare professional has conducted a clinical visit, completed and 928 documented a full assessment of the patient’s medical history and current medical condition, has 929 explained the potential benefits and risks of medical use of marijuana, and has a role in the 930 ongoing care and treatment of the patient. 931 932 933 934 935 “Card holder”, a registered qualifying patient, personal caregiver, or agent of a medical marijuana treatment center who has been issued and possesses a valid registration card. “Commission”, the Massachusetts cannabis control commission established pursuant to chapter 10 of the General Laws “Cultivation registration”, a registration issued to a medical marijuana treatment center 936 for growing medical use marijuana under the terms of this chapter, or to a qualified patient or 937 personal caregiver. 938 “Debilitating medical condition”, cancer, glaucoma, positive status for human 939 immunodeficiency virus, acquired immune deficiency syndrome, hepatitis C, amyotrophic lateral 940 sclerosis, Crohn's disease, Parkinson's disease, multiple sclerosis and other conditions as 941 determined in writing by a registered qualifying patient's registered healthcare professional. 46 of 75 942 “Electronic certification” a document signed or executed electronically by a registered 943 healthcare professional, stating that in the healthcare professional's professional opinion, the 944 potential benefits of marijuana for medical use would likely outweigh the health risks for the 945 qualifying patient. Such certification shall be made only in the course of a bona fide healthcare 946 professional-patient relationship and shall specify the qualifying patient's debilitating medical 947 condition(s). Electronic certifications upon submission by a healthcare professional to the 948 commission shall automatically generate a temporary registration. 949 950 951 “Healthcare professional”, a duly Massachusetts licensed physician, physician assistant, or certified nurse practitioner authorized by the commission to issue written certifications. “Locked area”, a closet, room, greenhouse or other indoor or outdoor area equipped with 952 locks or other security devices, accessible only to registered and authorized medical marijuana 953 treatment center employees, registered qualifying patients or registered personal caregivers. 954 “Marijuana”, all parts of any plant of the genus cannabis, not excepted below and 955 whether growing or not; the seeds thereof; and resin extracted from any part of the plant; and 956 every marijuana product, compound, manufacture, salt, derivative, mixture or preparation of the 957 plant, its seeds or resin including tetrahydrocannabinol as defined in section 1 of chapter 94C; 958 provided, however, that “marijuana” shall not include: (i) the mature stalks of the plant, fiber 959 produced from the stalks, oil or cake made from the seeds of the plant, any other compound, 960 manufacture, salt, derivative, mixture or preparation of the mature stalks, fiber, oil or cake made 961 from the seeds of the plant or the sterilized seed of the plant that is incapable of germination; (ii) 962 hemp; or (iii) the weight of any other ingredient combined with marijuana to prepare topical or 963 oral administrations, food, drink or other products. 47 of 75 964 “Medical use marijuana”, marijuana or marijuana accessories sold by a medical 965 marijuana treatment center licensee to a card holder for medical use or marijuana or marijuana 966 accessories possessed by a qualifying patient under a cultivation registration. 967 968 969 970 971 972 973 “Medical marijuana treatment center”, the premises approved under a medical use marijuana license. "Medical use marijuana license”, a license issued by the commission that permits the licensee to operate a medical marijuana treatment center. “Medical use marijuana licensee”, a person or entity who holds a medical use marijuana license under this chapter. “Medical use of marijuana”, the acquisition, cultivation, possession, processing, 974 including development of related products such as food, tinctures, aerosols, oils or ointments, 975 transfer, transportation, sale, distribution, dispensing or administration of marijuana for the 976 benefit of registered qualifying patients in the treatment of debilitating medical conditions, or the 977 symptoms thereof. 978 “Personal caregiver”, a person who is at least 21 years old who has registered with the 979 commission and agreed to assist with a qualifying patient's medical use of marijuana, and is not 980 the registered qualifying patient’s certifying healthcare provider. Personal caregivers are 981 prohibited from consuming medical use marijuana obtained for the personal, medical use of the 982 registered qualifying patient. An employee of a hospice provider, nursing or medical facility 983 providing care to a qualifying patient may also serve as a personal caregiver. 48 of 75 984 985 “Qualifying patient”, a person who has been diagnosed by a registered healthcare professional as having a debilitating medical condition. 986 “Registration card”, a personal identification card issued by the commission to a 987 registered qualifying patient, personal caregiver, laboratory agent or agent of a medical 988 marijuana treatment center. The registration card facilitates verification of an individual 989 registrant’s status, including, but not limited to, verification that a registered healthcare 990 professional has provided a written certification to the qualifying patient; that the patient has 991 designated the individual as a personal caregiver; that a laboratory agent has been registered with 992 the commission and is authorized to possess and test marijuana; or that an agent has been 993 registered with the commission and is authorized to work at a medical marijuana treatment 994 center. A temporary registration issued to a qualifying patient shall be deemed a registration 995 card. 996 The registration card shall facilitate identification for the commission and law 997 enforcement of those individuals who are exempt from criminal and civil penalties for conduct 998 pursuant to the medical use of marijuana. 999 “Sixty-day supply”, that amount of medical use marijuana that a registered qualifying 1000 patient would reasonably be expected to need over a period of 60 calendar days for the 1001 qualifying patient’s personal medical use, up to 10 ounces of marijuana or as otherwise defined 1002 by the commission. 1003 “Temporary Registration” an interim registration document for patients and their personal 1004 caregivers generated automatically upon the commission's receipt of a healthcare professional's 1005 electronic certification. The temporary registration document shall constitute a registration card 49 of 75 1006 for patients and their personal caregivers to access medical marijuana treatment center. 1007 Temporary registration shall expire 14 days after the commission issues the registration card. 1008 “Written certification”, a document signed by a registered healthcare professional, stating 1009 that in the professional opinion of the healthcare professional, the potential benefits of the 1010 medical use of marijuana would likely outweigh the health risks for the qualifying patient. Such 1011 certification shall be made only in the course of a bona fide healthcare professional-patient 1012 relationship and shall specify the qualifying patient's debilitating medical condition. 1013 Section 2. (a) The commission shall operate a medical use of marijuana program, which 1014 shall permit a qualifying patient with a debilitating medical condition to obtain a written or 1015 electronic certification from a healthcare professional with whom the patient has a bona fide 1016 healthcare professional-patient relationship to purchase medical use marijuana from a medical 1017 marijuana treatment center. Upon issuance of a written certification from a healthcare 1018 professional, the commission shall issue a registration card to the qualifying patient. A medical 1019 marijuana treatment center may sell medical use marijuana to a card holder. 1020 (b) (1) A healthcare professional shall not be penalized, in any manner, or denied any 1021 right or privilege, for: (i) advising a qualifying patient about the risks and benefits of the medical 1022 use of marijuana within a bona fide healthcare professional-patient relationship; or (ii) providing 1023 a qualifying patient with written or electronic certification, based upon a full assessment of the 1024 qualifying patient's medical history and condition, including a debilitating medical condition, 1025 that the medical use of marijuana may benefit a particular qualifying patient, within a bona fide 1026 healthcare professional-patient relationship. 50 of 75 1027 1028 1029 1030 (2) A qualifying patient or a personal caregiver shall not be subject to arrest or prosecution, or civil penalty, for medical use marijuana. (3) No person shall be arrested or prosecuted for any criminal offense solely for being in the presence of medical use marijuana or its use as authorized by this law. 1031 (4) The lawful possession, cultivation, transfer, transport, distribution, or manufacture of 1032 medical use marijuana as authorized by this section shall not result in the forfeiture or seizure of 1033 any property. 1034 (c) A medical marijuana treatment center and its employees registered with the 1035 commission shall not be penalized or arrested for acquiring, possessing, cultivating, processing, 1036 transferring, transporting, selling, distributing, or dispensing medical use marijuana and related 1037 supplies and educational materials, to qualifying patients or their personal caregivers. 1038 (d) The commission shall issue a cultivation registration to a qualifying patient applying 1039 for such registration whose access to a medical marijuana treatment center is limited by verified 1040 financial hardship, a physical incapacity to access reasonable transportation, or the lack of a 1041 medical marijuana treatment center within a reasonable distance of the qualifying patient's 1042 residence. The commission may deny a registration based on the provision of false information 1043 by the applicant. Such registration shall allow the qualifying patient or the qualifying patient's 1044 personal caregiver to cultivate a limited number of plants, sufficient to maintain a 60-day supply 1045 of marijuana, and shall require cultivation and storage only in an enclosed, locked area. 1046 (e) The commission shall maintain a confidential list of registered qualifying patients 1047 issued medical use marijuana registration cards. Individual names and other identifying 1048 information on the list shall be exempt from the provisions of section 10 of chapter 66, and not 51 of 75 1049 subject to disclosure, except to employees of the commission in the course of their official duties 1050 and to law enforcement officials of the commonwealth when verifying a card holder’s 1051 registration. 1052 Section 3. (a) The commission shall maintain a confidential, interoperable database 1053 including, but not limited to: (i) the qualifying patients issued a registration card for medical use 1054 of marijuana; (ii) the healthcare professionals registered to issue written certifications; (iii) the 1055 name of any medical marijuana treatment center; (iv) the quantity of medical use marijuana 1056 dispensed to a card holder; and (v) any other pertinent information. Individual names and other 1057 identifying information shall be exempt from section 10 of chapter 66, and not subject to 1058 disclosure, except to employees of the commission in the course of their official duties, medical 1059 marijuana treatment centers to facilitate dispensing of medical use marijuana and to state or local 1060 law enforcement officials for the purposes of conducting an investigation pursuant this chapter. 1061 (b) Every registered qualifying patient shall have the right to confidentiality of all records 1062 and communications related to their care provided by a medical use marijuana licensee or 1063 establishment or by a registered healthcare professional to the extent provided by law. Such 1064 records shall not be deemed public records as defined by clause Twenty-sixth of section 7 of 1065 chapter 4. No provision of this subsection relating to confidentiality of records shall be construed 1066 to prevent access to any such records by the commission or its agents, a healthcare professional 1067 who has a bona fide healthcare professional-patient relationship with the patient, a medical 1068 marijuana treatment center, or any state or local law enforcement official for the purposes of 1069 conducting an investigation pursuant this chapter. 52 of 75 1070 Section 4. Any healthcare professional that issues a written certification for the medical 1071 use of marijuana shall register with the commission pursuant to regulations promulgated by the 1072 commission. 1073 Section 5. Any qualifying patient receiving a written or electronic certification for 1074 medical use marijuana shall register with the commission pursuant to regulations promulgated by 1075 the commission. 1076 Section 6. This chapter shall not: 1077 (i) require any health insurance provider, or any government agency or authority, to 1078 reimburse any person for the expenses of the medical use of marijuana; 1079 1080 (ii) require any healthcare professional to authorize the medical use of marijuana for a patient; 1081 (iii) amend existing penalties for operating, navigating or being in actual physical control 1082 of any motor vehicle, train, aircraft, motorboat or other motorized form of transport or machinery 1083 while impaired by marijuana or a marijuana product; 1084 Section 7. The commission shall promulgate rules and regulations for the implementation 1085 of this chapter under the procedures of chapter 30A. The commission shall set application fees 1086 for medical marijuana treatment centers so as to defray the administrative costs of the medical 1087 marijuana program and ensure the medical marijuana program is revenue neutral. 1088 No regulation of the commission regarding the medical use of marijuana shall be more 1089 restrictive than any rule or regulation promulgated by the department of public health pursuant to 1090 chapter 369 of the acts of 2012 and in effect on July 1, 2017. 53 of 75 1091 1092 1093 1094 Section 8. Marijuana sold pursuant to this chapter shall not be taxed under chapters 64H, 64I, 64K, or 64N of the General Laws. SECTION 46. Chapter 128 of the General Laws is hereby amended by adding the following 8 sections:- 1095 Section 116. As used in this section and sections 117 to section 123, inclusive, the 1096 following words shall have the following meanings unless the context clearly requires otherwise: 1097 “Hemp”, the plant of the genus cannabis and any part of the plant, whether growing or 1098 not, with a delta-9-tetrahydrocannabinol concentration that does not exceed 0.3 per cent on a dry 1099 weight basis or per volume or weight of marijuana product or the combined per cent of delta-9- 1100 tetrahydrocannabinol and tetrahydrocannabinolic acid in any part of the plant of the genus 1101 cannabis regardless of moisture content. 1102 1103 “Industrial hemp”, hemp that is used exclusively for industrial purposes including, but not limited to, the fiber and seed. 1104 “Person”, a natural person, corporation, association, partnership or other legal entity. 1105 Section 117. (a) Industrial hemp may be planted, grown, harvested, possessed, processed, 1106 bought, sold or researched subject to sections 116 to 123. The planting, growing, harvesting, 1107 possessing, processing, selling or research of industrial hemp as an agricultural product shall be 1108 subject to the supervision and approval of the department pursuant to sections 116 to 123, 1109 inclusive. 54 of 75 1110 (b) A person planting, growing, harvesting, possessing, processing or selling industrial 1111 hemp for commercial purposes shall: (i) be licensed by the department pursuant to section 118; 1112 and (ii) only acquire hemp seeds from a distributor approved by the department. 1113 1114 1115 (c) Hemp shall only be used for the following: (i) research purposes; and (ii) commercial purposes considered reasonable by the commissioner. Section 118. (a) No person, other than a person utilizing hemp for commercial purposes 1116 pursuant to subsection (c) or a person utilizing industrial hemp for research pursuant to 1117 subsection (d), shall plant, grow, harvest, possess, process or sell industrial hemp without a 1118 license issued by the department. 1119 1120 (b) No person shall produce or distribute industrial hemp seed without a license issued by the department. 1121 (c) A person utilizing hemp for commercial purposes shall register with the department. 1122 (d) A person utilizing industrial hemp for research conducted under an agricultural pilot 1123 1124 program or other agricultural or academic research shall register with the department. (e) An application for a license issued pursuant to subsection (a) or (b) shall include, but 1125 not be limited to: (i) the name and address of any applicants; (ii) the name and address of the 1126 industrial hemp operation of the applicant; (iii) the global positioning system coordinates and 1127 legal description of the property used for the industrial hemp operation; (iv) the acreage size of 1128 the field where the industrial hemp will be grown, if applicable; (v) a written consent allowing 1129 the department to conduct both scheduled and random inspections of and around the premises on 1130 which the industrial hemp is being sown, grown, harvested, stored and processed; (vi) a 55 of 75 1131 nonrefundable application fee in an amount which shall be established by the commissioner; (vii) 1132 any other information as may be required pursuant to subsection (d); and (vii) any other 1133 information as may be required by the commissioner. 1134 (f) All documents included in an application for licensure submitted under subsection (e) 1135 of section 118 except for the address of a licensee’s cultivation or production facilities and any 1136 documents describing, depicting or otherwise outlining a licensee’s security schematics or global 1137 positioning system coordinates, which are considered by the department to be confidential in 1138 nature due to their public safety implications, shall be considered public records for the purposes 1139 of chapter 66 of the General Laws. 1140 Section 119. (a) After receipt, review and approval of an application for licensure 1141 pursuant to section 118, the commissioner may grant an annual license upon issuance of written 1142 findings that the requirements of sections 116 to 123, inclusive, have been satisfied and upon the 1143 issuance of written findings that issuing the license will be in the best interest of the 1144 commonwealth. 1145 (b) The commissioner shall deny an application for a license filed pursuant to section 118 1146 if the applicant: (i) fails to satisfy the minimum qualifications for licensure pursuant to sections 1147 116 to 123, inclusive,; or (ii) for good cause shown. 1148 Section 120. The commissioner shall suspend, revoke or refuse to renew the license of a 1149 person who violates sections 116 to 123, inclusive, following appropriate process in accordance 1150 with chapter 30A. 56 of 75 1151 Section 121. (a) The department and the commissioner shall promulgate rules and 1152 regulations for the implementation, administration and enforcement of sections 117 to 123, 1153 inclusive. 1154 (b) Pursuant to section 2 of chapter 30A, the department may promulgate, amend or 1155 repeal any regulation promulgated under this chapter as an emergency regulation if the 1156 regulation is necessary to protect the interests of the commonwealth in regulating industrial 1157 hemp. 1158 Section 122. The department may inspect and have access to the equipment, supplies, 1159 records, real property and other information deemed necessary to carry out the department’s 1160 duties under sections 116 to 123, inclusive, from a person participating in the planting, growing, 1161 harvesting, possessing, processing, purchasing, selling or researching of hemp, industrial hemp. 1162 The department may establish an inspection and testing program to determine delta-9 1163 tetrahydrocannabinol levels and ensure compliance with the limits on delta-9 1164 tetrahydrocannabinol concentration. 1165 Section 123. The department may establish civil administrative fines for violations of 1166 sections 116 to 123, inclusive. A person aggrieved by the assessment of a fine under this section 1167 or a licensure action under section 120 may appeal by filing a notice of appeal with the 1168 department not later than 21 days after the receipt of the notice of the fine or licensure action. 1169 The adjudicatory hearing shall be conducted in accordance with chapter 30A. 1170 SECTION 47. Section 22 of chapter 270 of the General Laws, as so appearing in the 1171 2016 Official Edition , is hereby amended by inserting after the word “inhaled”, in line 97, the 1172 following words:- , including marijuana as defined in section 1 of chapter 94G. 57 of 75 1173 SECTION 48. Chapter 369 of the acts of 2012 is hereby repealed. 1174 SECTION 49. (a) There shall be a special commission on operating under the influence 1175 and impaired driving, hereinafter the commission, to conduct a comprehensive study relative to 1176 the regulation and testing of operating under the influence of marijuana, narcotic drugs, 1177 depressants or stimulant substances, all as defined in section 1 of chapter 94C of the General 1178 Laws. The special commission shall review all aspects of law enforcement personnel ability to 1179 properly test impaired operators and prevent impaired operation of motor vehicles. The 1180 commission shall study : (i) scientific types of testing and data, (ii) medical types of testing and 1181 data, (iii) possible new technological forms of testing, (iv) civil liberties of the operator, (v) 1182 social economic aspects of the testing, (vi) admissibility of evidence of impaired driving in court 1183 proceedings, (vii) burden on law enforcement, (viii) the current status of law within the 1184 commonwealth, (ix) training of law enforcement, (x) intrusiveness of tests, (xi) cost analysis of 1185 testing, (xii) the current threshold for determining impairment, (xiii) the rate of success in 1186 stopping impaired operators and (xiv) anything else the commission deems necessary or 1187 significant. 1188 (b) The special commission shall consist of 13 members as follows: the executive 1189 director of the Massachusetts cannabis control commission, who shall serve as chair of the 1190 commission; the attorney general or a designee; the secretary of public safety and security or a 1191 designee; the colonel of the Massachusetts state police or a designee; the president of 1192 Massachusetts Chiefs of Police Association Incorporated or a designee; the president of the 1193 Massachusetts District Attorney’s Association or a designee; the president of the Massachusetts 1194 Bar Association or a designee; the president of the American Civil Liberties Union of 1195 Massachusetts, Inc. or a designee; the chief executive officer and president of the AAA Southern 58 of 75 1196 New England or a designee, the president of the NAACP New England Area Conference or a 1197 designee, the president of the Massachusetts Medical Society or a designee; 1 person appointed 1198 by the secretary of health and human services who shall have medical and physiological 1199 expertise; 1 person appointed by the governor who shall be a member of the public with 1200 expertise in scientific research on or technological development in testing capabilities of these 1201 substances. A majority of the members of the board present and voting shall constitute a quorum. 1202 (c) The special commission shall submit its final report and any recommendations for 1203 legislation by filing a report with the clerks of the house of representatives and the senate on or 1204 before January 1, 2019. 1205 SECTION 50. The department of public health, in consultation with the Massachusetts 1206 cannabis control commission, shall establish the following science-based public awareness 1207 campaigns: (i) a campaign to inform the public about responsible use of marijuana, including 1208 information on edibles and warnings about the dangers of manufacturing marijuana products at 1209 home; and (ii) a campaign to educate youth about marijuana use with a goal of decreasing the 1210 youth usage rate. The public awareness campaigns shall be funded from revenues received from 1211 the Marijuana Regulation Fund established in section 14 of chapter 94G of the General Laws. 1212 SECTION 51. The executive office of public safety and security shall establish public 1213 awareness campaigns to: (i) educate the public about impaired driving including, but not limited 1214 to, impairment by the use of marijuana; (ii) inform the public that a gift of marijuana given in 1215 conjunction with the sale of another item in order to evade laws governing the sale of marijuana 1216 is illegal and that a person who grants such a gift is subject to prosecution; and (iii) inform 1217 people eligible to have their records sealed as a result of changes to criminal laws resulting from 59 of 75 1218 marijuana decriminalization and legalization. The public awareness campaigns shall be funded 1219 from revenues received from the Marijuana Regulation Fund established in section 14 of chapter 1220 94G of the General Laws. 1221 SECTION 52. Notwithstanding subsections (c) and (d) of section 76 of chapter 10 of the 1222 General Laws, the initial appointments to the cannabis control commission by the governor and 1223 the attorney general shall serve for a term of 4 years and the initial appointments by majority 1224 vote of the treasurer, and receiver-general, governor and attorney general shall serve for a term 1225 of 3 years. 1226 SECTION 53. Notwithstanding any general or special law to the contrary, the 1227 Massachusetts cannabis control commission established pursuant to section 76 of chapter 10 of 1228 the General Laws shall promulgate regulations, guidelines and protocols necessary for the 1229 purposes of authorizing the independent testing of marijuana on or before May 1, 2018. The 1230 Massachusetts cannabis control commission shall temporarily adopt the independent testing 1231 regulations currently adopted by the department of public health in 105 CMR 725.105 up until 1232 the commission has promulgated the regulations, guidelines and protocols for independent 1233 testing of marijuana in section 15 of Chapter 94G of the General Laws, on or before May 1, 1234 2018. 1235 1236 1237 1238 SECTION 54: Chapter 334 of the acts of 2016 is hereby amended by striking out section 7 in its entirety and replacing with the following section:“The initial appointments to the cannabis control commission under section 76 of chapter 10 of the General Laws shall be no later than September 1, 2017.” 60 of 75 1239 1240 1241 1242 1243 1244 1245 SECTION 55: Chapter 334 of the acts of 2016 is hereby amended by striking out section 8 in its entirety and replacing with the following section:“The initial appointments to the cannabis advisory board under section 77 of chapter 10 of the General Laws shall be no later than August 1, 2017.” SECTION 56. Chapter 334 of the acts of 2016 is hereby amended by striking out sections 10 and 11. SECTION 57. Notwithstanding any general or special law to the contrary, the 1246 Massachusetts cannabis control commission established pursuant to section 76 chapter 10 of the 1247 General Laws shall promulgate regulations, guidelines and protocols necessary for the issuance 1248 of licenses pursuant to said chapter 94G no later than March 15, 2018. The commission shall 1249 begin to accept applications for licenses pursuant to said chapter 94G no later than April 1, 2018. 1250 SECTION 58. (a) The Massachusetts cannabis control commission shall prioritize review 1251 1252 and licensing decisions for applicants for retail, manufacture or cultivation licenses who: (1) are registered marijuana dispensaries with a final or a provisional certificate of 1253 registration in good standing with the department of public health pursuant to 105 CMR 725.000 1254 that are operational and dispensing to qualifying patients; or 1255 (2) demonstrate experience in or business practices that promote economic empowerment 1256 in communities disproportionately impacted by high rates of arrest and incarceration for offenses 1257 under chapter 94C. 61 of 75 1258 (b) The commission shall identify all applications subject to prioritization under 1259 subsection (a) submitted between April 1, 2018 and April 15, 2018 and grant or deny such 1260 applications prior to reviewing any other applications for licenses. 1261 (c) The commission shall not issue a license pursuant to chapter 94G until June 1, 2018. 1262 (d) The commission shall not approve any application for a license submitted by such a 1263 registered marijuana dispensary if, pursuant to chapter 94G, a host community, as defined in 1264 chapter 94G, has prohibited marijuana establishments under 94G. 1265 SECTION 59. The cannabis control commission, in consultation with the department of 1266 agricultural resources, shall report to the joint committee on marijuana policy and the house and 1267 senate committees on ways and means on participation in the regulated marijuana industry by 1268 farmers and businesses of all sizes. The first report shall provide recommendations to ensure 1269 farmers’ access to marijuana licenses and to allow for the growth, cultivation, production and 1270 harvest of marijuana on farm or agricultural lands, including, to the extent permitted by state and 1271 federal law, lands protected under an agricultural preservation restriction and the possibility of 1272 including marijuana and industrial hemp as land in horticultural use for the purposes of 1273 assessment and taxation pursuant to the provisions of chapter 61A. These recommendations, 1274 including drafts of legislation necessary to carry its recommendations into effect shall be 1275 reported within 12 months of the effective date of this act. The second report shall update the 1276 legislature on progress made to promote and encourage full participation in the regulated 1277 marijuana industry by farmers and businesses of all sizes and shall be filed not later than 1278 December 31, 2018. 62 of 75 1279 SECTION 60. The Massachusetts cannabis control commission shall make necessary 1280 accommodations and promulgate special regulations for the counties of Dukes and Nantucket. 1281 Such regulations shall be promulgated on or before May 1, 2018. 1282 SECTION 61. Notwithstanding any general or special law to the contrary, a person 1283 having a record of criminal court appearance or disposition on file with the office of the 1284 commissioner of probation for a charge of unlawful possession of a controlled substance under 1285 section 34 of chapter 94C of the General Laws shall be eligible to have the record and related 1286 records, if any, sealed immediately under section 100A of chapter 276 of the General Laws if the 1287 controlled substance specified in the complaint related to the court appearance or disposition was 1288 marihuana under clause (1) of subsection (b) of Class D of section 31 of said chapter 94C. 1289 SECTION 62. The cannabis advisory board shall provide recommendations related to the 1290 costs associated with the purchase of medicinal marijuana by veterans of the United States 1291 military and individuals receiving health insurance benefits through the United States 1292 Department of Veterans Affairs. The cannabis advisory board shall make recommendations 1293 relative to improving cost-effective access to medicinal marijuana and individuals receiving 1294 health insurance benefits through the United States Department of Veterans Affairs to the 1295 cannabis control commission not later than September 1, 2018. 1296 SECTION 63. The secretary of public safety and security shall make a recommendation 1297 to the legislature not later than July 1, 2018, regarding a statewide system and procedures for 1298 civil citations. 1299 SECTION 64. The Massachusetts cannabis control commission, in collaboration with the 1300 department of revenue, shall study the feasibility of alternative tax bases for calculating taxes on 63 of 75 1301 marijuana and marijuana products, including by weight, volume, or tetrahydrocannabinol 1302 potency. The commission shall file the results of this study together with any recommendations 1303 for changes to marijuana tax policy with the clerks of the senate and the house of representatives, 1304 who shall forward the recommendations to the senate and house chairs of the joint committee on 1305 marijuana policy and the senate and house chairs of the joint committee on revenue not later than 1306 July 1, 2020. 1307 SECTION 65. (a) Notwithstanding any general or special law to the contrary, the 1308 cannabis control commission shall report on the incoming receipts and expenditures and any 1309 other activities of the Marijuana Regulation Fund, established in section 14 of chapter 94G of the 1310 General Laws, every 6 months. The report shall be submitted to the clerks of the senate and the 1311 house of representatives and the senate and house committees on ways and means. 1312 1313 1314 1315 SECTION 66. (a) As used in sections 66 to 71, inclusive, the following terms shall, unless the context clearly requires otherwise, have the following meanings:“Commission”, the Massachusetts cannabis control commission established pursuant to section 76 of chapter 10 of the General Laws. 1316 “Department”, the department of public health. 1317 “Program”, the department’s medical use of marijuana program. 1318 (b) Notwithstanding any general or special law to the contrary, the department and the 1319 commission shall develop and implement a transfer agreement providing for the orderly transfer 1320 of the program, including personnel, from the department to the commission pursuant to sections 1321 66 to 71, inclusive. Upon the assumption of the outstanding liabilities, obligations and debt of the 64 of 75 1322 program by the commission, the program shall be dissolved and, without further conveyance or 1323 other act, all the assets, liabilities, obligations and debt, as well as all rights, powers and duties of 1324 the program shall be transferred to, and assumed by, the commission. 1325 (c) On the date the transfer required by subsection (b) takes effect: (i) ownership, 1326 possession and control of all property, including, but without limitation, all buildings, facilities, 1327 cash, equipment, books, papers, memorandums, files, maps, plans, records, documents, property 1328 held in trust and other property, both personal and real, of whatever description pertaining to the 1329 operation of the program which are in the possession of the program or department or employee 1330 thereof shall pass to, and be vested in, the commission without consideration or further evidence 1331 of transfer; and, (ii) all duly existing contracts, leases or obligations of the program which remain 1332 in force immediately before the effective date of the transfer pursuant to subsection (b) shall be 1333 deemed to be the obligations of the commission. The commission shall have authority to exercise 1334 all rights and enjoy all interests conferred upon the program or department by such contracts or 1335 obligations. No existing right or remedy of any character shall be lost impaired or affected by 1336 this act. In the case of collective bargaining agreements, any obligations under the agreements 1337 shall expire on the stated date of expiration of such agreements. 1338 (d) The department shall transfer the program to the commission upon receipt of written 1339 certification from the commission that the commission has in place the legal and regulatory 1340 framework to regulate and oversee medical marijuana without disruption to the medical 1341 marijuana industry or patient access to medical marijuana or on December 31, 2018, whichever 1342 occurs first. 65 of 75 1343 The transfer of the assets, liabilities, obligations and debt of the program to the 1344 commission shall be effective upon execution of the transfer agreement authorized herein and 1345 shall bind all persons with or without notice and without any further action or documentation. 1346 (e) Each employee of the program whose salary is paid out partially or in full by revenues 1347 generated by the program and whose salary is accounted for on the books of the program as 1348 arising from revenue generated by the program as of June 1, 2017 shall become an employee of 1349 the commission upon execution of the transfer agreement authorized herein or on December 31, 1350 2018, whichever occurs first. 1351 (f) All applications submitted, requests, investigations and other proceedings 1352 appropriately and duly brought before the program before the effective date of this act shall 1353 continue unabated and remain in force, but shall be assumed and completed by the commission. 1354 SECTION 67. (a) Notwithstanding any general or special law to the contrary, each 1355 employee of the program shall become an employee of the commission upon the execution of the 1356 transfer agreement required pursuant to section 66 or on January 1, 2019. 1357 (b) All officers and employees of the program transferred to the service of the 1358 commission shall be transferred without impairment of seniority, retirement or other statutory 1359 rights of employees, without loss of accrued rights to holidays, sick leave, vacation and other 1360 benefits, and without change in union representation or certified collective bargaining unit as 1361 certified by the state labor relations commission or in local union representation or affiliation, 1362 except as otherwise provided in this act. Terms of service of employees of the department’s 1363 program shall not be deemed to be interrupted by virtue of transfer to the commission. 66 of 75 1364 (c) Nothing in this section shall be construed to confer upon any employee of the 1365 program any right not held immediately before the date of said transfer to the commission, or to 1366 prohibit any reduction of salary grade, transfer, reassignment, suspension, discharge, layoff or 1367 abolition of position not prohibited before such date. 1368 SECTION 68. Notwithstanding any general or special law to the contrary, the terms and 1369 conditions of any collective bargaining agreement that is in effect upon transfer of the 1370 department’s program with respect to employees of said program shall continue in effect until 1371 the stated expiration date of such agreement, at which point the agreement shall expire; 1372 provided, however, that all such employees shall continue to retain their right to collectively 1373 bargain under chapter 150E of the General Laws and shall be considered employees of the 1374 Massachusetts cannabis control commission established pursuant to chapter 10 for the purposes 1375 of said chapter 150E. Upon the effective date of this act, the department’s program shall not 1376 engage in negotiations for future collective bargaining agreements with employees of the 1377 program. 1378 The personnel administrator of the commonwealth, in consultation with the commission, 1379 shall complete a study of job titles in the program. The personnel administrator, in consultation 1380 with the commission, shall determine the appropriate job titles for former employees of the 1381 program transferred to the commission. Employees transferred to the commission shall be placed 1382 in job titles as determined by the personnel administrator, and shall be paid wages and receive 1383 benefits consistent with the commonwealth bargaining unit contract governing such job titles. 1384 Employees not transferred to the commission shall be released pursuant to any applicable 1385 collective bargaining agreement or authority policy in place upon the effective date of this act. 67 of 75 1386 SECTION 69. Notwithstanding any general or special law to the contrary, on and after 1387 the effective date of this act, the department’s program shall not enter into any contract to 1388 employ a person as an employee or officer beyond December 31, 2018. 1389 SECTION 70. Notwithstanding any general or special law to the contrary, any order, 1390 rule, or regulation duly promulgated, or any license, permit, certificate or approval duly granted, 1391 by or on behalf of the department’s program, shall continue in effect and shall be enforced by the 1392 commission until its expiration or until superseded, revised, rescinded or cancelled by the 1393 commission. 1394 SECTION 71. (a) Notwithstanding any general or special law to the contrary, upon 1395 execution of the agreement between the department and the commission pursuant to section 66, 1396 or December 31, 2018, whichever occurs first, the comptroller shall transfer the unexpended 1397 balances of the Medical Marijuana Trust Fund established in section 2KKKK of chapter 29 of 1398 the General Laws to the Marijuana Regulation Fund established in section 14 of chapter 94G of 1399 the General Laws. 1400 (b) The comptroller shall take the overall cash flow needs of the commonwealth into 1401 consideration in determining the timing of any transfer of funds provided for in subsection (a). 1402 The comptroller shall provide a schedule of transfers to the secretary of administration and 1403 finance and to the chairs of the house and senate committees on ways and means. 1404 SECTION 72. The commission shall submit a report to the joint committee on marijuana 1405 policy not later than July 15, 2018 detailing the progress of the transfer of the program as set 1406 forth in sections 66 to 71, inclusive. 68 of 75 1407 SECTION 73. Notwithstanding any general or special law to the contrary, marijuana may 1408 be used for medical purposes pursuant to chapter 369 of the acts of 2012 and any rule or 1409 regulation promulgated by the department pursuant to said chapter 369 including, but not limited 1410 to, 105 CMR 725 until the department transfers the oversight and regulation of the program to 1411 the commission as provided by section 66. 1412 SECTION 74. Notwithstanding any general or special law to the contrary, any person 1413 with a provisional or final certification of registration as of July 1, 2017 to dispense medical use 1414 marijuana, or any application pending before the department of public health which have not 1415 received provisional or final certification of registration, shall be entitled to convert from a non- 1416 profit corporation organized under chapter 180 of the General Laws into a domestic business 1417 corporation or a domestic other entity pursuant to chapter 156 of the General Laws, or any other 1418 such domestic business entity as permitted by the General Laws, by adopting a plan of entity 1419 conversion in accordance with section 9.51 of chapter 156D of the General Laws approved by a 1420 vote of 2/3 of the members of its board of directors at a meeting duly called for the purpose or by 1421 unanimous written consent; provided, however, notwithstanding any law to the contrary, any 1422 plan of entity conversion adopted by an any medical use marijuana licensee or any application 1423 for a medical use marijuana license pending before the Massachusetts cannabis control 1424 commission which have not received provisional or final certification of registration shall not be 1425 required to be approved in accordance with the organic law of the non-profit corporation 1426 organized under said chapter 180. Articles of entity conversion shall be signed and submitted to 1427 the secretary of the commonwealth in the manner prescribed in and subject to section 9.53 and 1428 section 9.55 of said chapter 156D on a form prescribed by the secretary of the commonwealth, 1429 and the secretary of the commonwealth shall approve all such filings submitted pursuant to this 69 of 75 1430 section. For the purposes of converting from a non-profit corporation organized under said 1431 chapter 180 into a domestic business corporation or a domestic other entity pursuant to said 1432 chapter 156, notwithstanding any provision in the articles of organization applications pending 1433 before the Massachusetts cannabis control commission which have not received provisional or 1434 final certification of registration to the contrary, the members of its board of directors may 1435 determine that such plan of entity conversion is consistent with its purpose and such non-profit 1436 corporation shall be entitled to surrender its articles of organization in connection with the plan 1437 of entity conversion. Notwithstanding any law to the contrary, neither the entity conversion nor 1438 the issuance of any shares, interests, or other securities, obligations, rights to acquire interests or 1439 other securities, cash, other property, or any combination of the foregoing, set forth in or 1440 resulting from the plan of entity conversion shall be subject to taxation or result in the imposition 1441 of any tax by the commonwealth. 1442 SECTION 75. (a) The Massachusetts cannabis control commission may exempt any 1443 establishment registered and operating as a medical marijuana treatment center pursuant to 1444 chapter 369 of the acts of 2012 as of July 1, 2017 from any licensing requirement of this chapter 1445 to continue as a medical marijuana treatment center. Upon renewal of the license for a medical 1446 marijuana treatment center, all regulations promulgated by the commission needed for such 1447 licensing requirement, shall be met and approved by the commission. 1448 (b)Notwithstanding any general or special law to the contrary, for the purposes of 1449 reviewing and approving an application for a license to operate a marijuana establishment, the 1450 Massachusetts cannabis control commission shall identify applicants who are holders of a 1451 provisional or final certificate of registration pursuant to chapter 369 of the acts of 2012 and 1452 accompanying regulations. The commission shall consider issuance of a provisional or final 70 of 75 1453 certificate of registration as achievement of accreditation status. The commission shall ensure an 1454 expedited review process for applicants for a license to operate a marijuana establishment who 1455 have achieved accreditation status and shall only require that such applicants submit specific 1456 information not previously required, analyzed, approved and recognized by the department of 1457 public health. 1458 SECTION 76. The Massachusetts cannabis control commission and the attorney general 1459 shall conduct an investigation and study of the advisability of establishing criminal penalties for 1460 violations of this act, and shall report their recommendations for amendments to the General 1461 Laws to establish such criminal penalties, if any, not later than January 1, 2020. 1462 SECTION 77. Notwithstanding any general or special law to the contrary, a state, 1463 municipal or county employee whose official duties or responsibilities require them to take any 1464 action related to the enactment, administration or enforcement of chapter 94G of the General 1465 Laws or chapter 369 of the acts of 2012, this act or any rule or regulation promulgated pursuant 1466 to said chapter 94G or chapter 369 of the acts 2012 or this act shall be indemnified by their 1467 employer for all costs associated with any legal proceedings brought against said state, municipal 1468 or county employee by the federal government as a result of any such official action taken by 1469 said state, municipal or county employee; provided, however, that no state, municipal or county 1470 employee shall be indemnified for a violations of chapter 94G or chapter 369 of the acts of 2012 1471 of the General Laws, this act or any rule or regulation promulgated pursuant to said chapter 94G 1472 or chapter 369 of the acts of 2012 or this act for any actions taken in their personal capacity. 71 of 75 1473 SECTION 78. Section 77 is hereby amended by striking out, in each instance, the words 1474 “chapter 369 of the acts of 2012” and inserting in place thereof, each time they appear, the 1475 following figure:- 94I. 1476 SECTION 79: (a) For the purposes of this section, the terms “minority business 1477 enterprise”, “women business enterprise”, and “veteran business enterprise” shall have the same 1478 meanings as defined in section 58 of chapter 7. 1479 (b) The cannabis control commission shall conduct a study on participation in the 1480 regulated marijuana industry, including participation by minority business enterprises, women 1481 business enterprises and veteran business enterprises. The study shall include, but shall not be 1482 limited to: (i) a review of the participation in activities related to the regulation, licensing and 1483 promotion of marijuana establishments; (ii) a compilation of data on the individuals and entities 1484 that apply for and are issued licenses under chapter 94G of the General Laws, including the 1485 individual’s or members of an entity’s race, gender, country of origin and state geographic 1486 region; and (iii) any evidence of discrimination or barriers to entry in the regulated marijuana 1487 industry. 1488 (c) If, upon completion of the study, the commission determines that there is evidence of 1489 discrimination or barriers to entry in the regulated marijuana industry, the commission shall 1490 adopt diversity licensing goals that provide meaningful participation of communities 1491 disproportionately affected by cannabis prohibition and enforcement, including minority 1492 business enterprises, women business enterprises and veteran business enterprises. The 1493 commission shall, in consultation with the supplier diversity office under the executive office of 1494 administration and finance, develop training programs designed and implemented to achieve 72 of 75 1495 meaningful participation by minority persons, women, and veterans. These programs shall 1496 include, but shall not be limited to: (i) recruitment of minority, women, and veteran owned 1497 business enterprises to become licensed in marijuana related businesses; (ii) development of 1498 workforce training for minorities, women, and veterans to enter into marijuana related 1499 businesses; (iii) creation of employer training to attract minorities, women, and veterans into the 1500 workforce; and (iv) outreach to disadvantaged groups, including consultations with state 1501 agencies and providing education and training opportunities . 1502 In implementation of licensing of marijuana retailers, the commission shall prepare 1503 annual reports that shall include, but shall not be limited to: (i) the total number of licensed 1504 marijuana retailers; (ii) the number and percentage of licenses provided to minority, women, and 1505 veteran owned business; (iii) the total number and percentage of minority, women, and veteran 1506 employees in the marijuana industry, and (iv) recommendations on reducing or eliminating any 1507 identified barriers to entry, including access to capital, in the marijuana industry. The reports 1508 shall be submitted to the treasurer and receiver general, the house and senate chairs of the joint 1509 committee on marijuana policy, the clerks of the house and senate, and the governor. The 1510 commission shall post each annual report on its website. 1511 (d) The commission shall file its findings and recommendations with the clerks of the 1512 senate and the house of representatives, the chairs of the joint committee on marijuana policy and 1513 the senate and house committees on ways and means. 1514 SECTION 80. (a) The Massachusetts cannabis control commission shall establish energy 1515 and environmental standards pursuant to paragraph (xxxix) of section 4(a ½) of chapter of 94G 1516 of the General Laws, provided, that such standards shall be promulgated in consultation with the 73 of 75 1517 department of energy resources, the department of environmental protection and the department 1518 of agricultural resources; and provided further, that such standards shall require, at a minimum, 1519 that any marijuana establishment licensed as a marijuana cultivator or marijuana product 1520 manufacturer demonstrate, as a condition of licensure, or as a condition for licensure renewal if 1521 such standards are not established prior to initial licensure, compliance with such energy and 1522 environmental standards 1523 (b) the Massachusetts cannabis control commission shall establish a working group that 1524 shall include, but not be limited to: the executive director of the cannabis control commission or 1525 a designee, the commissioner of energy resources or a designee, the commissioner of 1526 environmental protection or a designee and the commissioner of agricultural resources or a 1527 designee. The working group shall provide recommendations to the commission on: (i) ways to 1528 reduce energy and water usage in the marijuana industry; (ii) mitigating other environmental 1529 impacts; (iii) annual energy audits, energy efficiency measures, energy conservation measures 1530 and energy conservation projects as defined in section 1 of chapter 164 of General Laws; (iv) 1531 additional best practices that would ensure marijuana establishment compliance with standards 1532 promulgated under paragraph (a). 1533 SECTION 81. Notwithstanding any general or special law to the contrary, nothing in this 1534 act shall affect any restrictions or limitations on the operation of medical marijuana treatment 1535 centers, marijuana establishments or both imposed by a municipality pursuant to chapter 369 of 1536 the acts of 2012 or chapter 334 of the acts of 2016 as of July 1, 2017. 1537 SECTION 82. Notwithstanding any general or special law to the contrary, the treasurer 1538 and receiver-general, working in cooperation with the department of capital asset management 74 of 75 1539 and maintenance, may determine where to locate temporary office space for the establishment 1540 and operation of the Massachusetts cannabis control commission. 1541 SECTION 83. Sections 2, 29, 41, 44, 45, 48, 71, and 78 shall take effect upon the 1542 execution of the transfer agreement between the department of public health and the 1543 Massachusetts cannabis control commission required pursuant to section 66 or on December 31, 1544 2018, whichever occurs first. 75 of 75