Who is a member?
Our members are the local governments of Massachusetts and their elected and appointed leadership.
The House has passed a bill that would overhaul the structure of the Cannabis Control Commission and make changes to the regulation of cannabis.
The bill (H. 4187), approved unanimously on June 4, would change the CCC’s structure from a five-member commission appointed by the governor, attorney general and treasurer to a three-member commission appointed solely by the governor.
The bill would change some regulations around cannabis licenses and sales, including increasing the license cap, increasing the number of dispensaries a single owner can own from three to six, and changing the definition of “owner.” Under the current law, a person or entity with equity of 10% or more is considered an owner, while the House bill would increase that threshold to 35%, allowing smaller investments to avoid the “owner” label.
The House bill would also eliminate the “vertical integration requirement” — a rule requiring medical marijuana licensees to both grow and process the product they sell.
Additionally, new medical marijuna licenses would be reserved for social equity businesses for three years.
The House bill would regulate consumable CBD products and tax them at a 5.35% rate, on top of the state sales tax of 6.25%. Hemp-derived THC beverages would also face strict regulation, including a maximum THC limit per container and an additional $4.05/gallon excise tax, but these products would be exempt from the state sales tax. The CCC would be required to maintain a list of registered hemp beverage products and consumable CBD products.
Last June, Inspector General Geoffrey Shapiro called for the Legislature to appoint a receiver to manage the CCC after conducting a review of the commission. In March, an audit conducted by Shapiro’s office found the CCC failed to collect more than $500,000 in prorated license fees and up to $1.2 million in provisional licensing fees from 2022-2024.
The state’s cannabis law was most recently changed in 2022. Recreational marijuana became legal in Massachusetts as a result of a ballot question passed in November 2016.
The House bill now heads to the Senate.