MARIJUANA REFORM BILL BECOMES LAW

On August 12, 2022, Governor Charlie Baker signed S. 3096, “An act relative to equity in the cannabis industry,” (“Act”) into law. The Act reforms Massachusetts’s existing marijuana laws, particularly with respect to host community agreements (“HCAs”), community impact fees (“CIFs”), and social consumption sites (e.g. marijuana cafes). The Act empowers the Cannabis Control Commission (“Commission”), the state regulatory agency, to exert greater control over HCAs and their CIFs. Municipalities levy CIFs on cannabis businesses to account for the costs they impose on the municipality as a result of their operations. Additionally, the Act allows municipalities to permit on-premises social consumption of marijuana at designated sites. Other notable provisions of the Act include the new Social Equity Trust Fund (“Trust Fund”), changes to the tax law regarding cannabis businesses, and various provisions concerning those persons and communities most impacted by the prior illegality of marijuana usage and sale. Governor Baker vetoed only one section of the final bill: the provision calling on the state to conduct a study of medical marijuana usage in schools.