The panel tasked with negotiating final details of legislation overhauling cannabis laws expressed confidence in finding common ground between the chambers and acknowledged during its first meeting Wednesday that it is prioritizing equity.
“The Senate bill reflects our shared commitment to a safe and equitable and well regulated cannabis industry,” said Sen. Adam Gomez of Springfield, the Senate chair of the conference committee. “We share many goals with the House and while there are many differences to work through, I’m confident that this committee can find common ground in a timely manner.”
On Nov. 19, the Senate voted 30-7 to approve its cannabis bill (S 2749). The House passed its version (H 4206) on a 153-0 vote in June. Each chamber appointed three members to serve on a conference committee to hash out final details of the legislation.
Rep. Daniel Donahue of Worcester, the committee’s House chair, noted the legislation presents a comprehensive plan to restructure the Cannabis Control Commission and “much needed and timely” reforms to the industry’s regulations to support social equity businesses as well as address public health issues that have arisen.
“We’ve created some great use of legislation and are looking forward to reconciling the differences between the House and Senate,” Donahue said.
The House bill overhauls the CCC by reducing the board from five members to three and places all appointing power with the governor, stripping appointing authority from both the treasurer and attorney general. The commission chair would work full time and two commissioners would work part-time. Under the Senate proposal, the CCC would also shrink to three members and both the governor and attorney general could appoint members.
Under both bills, the CCC executive director would be appointed by the chair and serve as “independent authority over enforcement” and operations of the commission.
Rep. Michael Soter of Bellingham noted the final legislation should focus on improving equity in the industry.
”Those are the things we have to focus on. Folks have invested life savings, invested parents’ life savings, into something they dreamed and hoped for,” Soter, the House Republican on the conference committee, said. “That was something that we focused on and we have to stay focused on as we work out some of our differences moving forward.”
The House bill increases the number of licenses a marijuana retailer can hold from three to six over a three-year period. The Senate legislation would allow retailers to hold four licenses. Priority would be given to social equity businesses and those owned by minorities, women and veterans under both proposals.
Both bills also aim to encourage more investment into cannabis businesses by raising the cap for holders of equity to be considered owners. The House bill raises the equity ownership in each business to 35% and the Senate proposes an increase of 12%, up from the current cap of 10%.
Sen. Jo Comerford of Northampton also said the conference committee is crucial because it shows lawmakers are responsive to the industry as it evolves, referencing the response to her work around regulating intoxicating hemp products.
“It says that we are iterating, we are learning with the industry, we’re learning about issues like intoxicating hemp and we’re taking action as action is required,” she said. ”We’re going to be responsive, because we care about this industry.”
The House legislation creates an oversight structure of the importation, manufacturing and sale of hemp beverages and CBD products. Both products could only be sold if they are registered with the CCC and the agency must develop regulations for registering hemp products, including a prohibition on products with synthetic cannabinoids. Products could only be made with concentrate that complies with federal hemp potency limits.
Hemp drinks could only be sold by retailers licensed by the Alcoholic Beverages Control Commission to sell all alcohol and all hemp-based products would need to be registered with the CCC. CBD products could only be sold by entities with a certain consumable CBD product tax license and have an endorsement from the CCC.
The Senate bill directs the CCC to work with other agencies to study and develop recommendations regarding the regulation of the hemp-derived cannabinoid market.
The House bill requires the CCC to audit all marijuana and medical marijuana businesses to ensure compliance with cap limitations. The CCC must also conduct an economic analysis of the cannabis industry, and the bill allows the agency to limit the numbers of licenses issued.
Both bills remove the current requirement for medical marijuana licensees to simultaneously cultivate, process and dispense marijuana to run their establishment. The Senate bill would recognize patient registrations from other states for medical marijuana prescriptions.
The Senate bill also directs the CCC to conduct a study on the mental health outcomes of cannabis use in Massachusetts.
The legislation from both chambers also raise the amount of marijuana a person can legally possess from one to two ounces.
Gomez did not offer a timeline for when negotiations could conclude when asked by a reporter after the meeting.
Katie Castellani is a reporter for State House News Service and State Affairs Pro Massachusetts. Reach her at kcastellani@statehousenews.com.
