In a March 18 letter to the chairs of the House and Senate committees on Ways and Means, the MMA expressed concerns about two companion bills affecting host community agreements in the cannabis industry.

The bills (H. 4440 and S. 2660) recently received favorable reports from the Joint Committee on Cannabis Policy as an “omnibus” cannabis bill.

The MMA argues that the bills would undermine the established authority of local government, present likely legal challenges, and create a more cumbersome process for the cannabis industry in Massachusetts.

In part, the bills would:
• Grant the Cannabis Control Commission expanded authority to approve contracts between host communities and local marijuana establishments
• Apply this new authority over host community agreements retroactively to Dec. 15, 2016
• Create a “safe harbor” period to strike provisions not in compliance as determined by the CCC, and force a renegotiation of host community agreements
• Prohibit community impact fees after five years of a community agreement with a marijuana establishment
• Prohibit community impact fees as a share of total sales
• Require host communities to promulgate procedures for marijuana industry inclusiveness or forfeit their community impact fees until they do so

The legislation would have a direct impact on the 1,000-plus current host community agreements, retroactively invalidating or altering contracts, despite the fact that they were negotiated in good faith on behalf of the public.

The bills would also establish a Social Equity Trust Fund, which would provide grants and loans to Economic Empowerment or Social Equity participants. The MMA has expressed support for this provision, and hopes it would be the central focus on legislative efforts relative to cannabis policy.

In its letter, the MMA offered to work with the Ways and Means committees and legislators to find a solution that can be supported by all stakeholders, in order to maintain a predictable process and allow cities and towns to serve the public interest.

The letter was addressed to Sen. Michael Rodrigues, chair of the Senate Committee on Ways and Means, and Rep. Aaron Michlewitz, chair of the House Committee on Ways and Means, as the two bills have been sent to their respective committees.

Written by
+
+