Massachusetts House lawmakers have unanimously passed a cannabis reform bill aimed at overhauling the state’s cannabis regulation framework. This legislation proposes to restructure the Cannabis Control Commission, regulate hemp products, and address various industry challenges that have persisted for years.
Key changes in the bill include the removal of the vertical integration requirement for medical cannabis businesses. This allows medical cannabis licensees to operate solely as retailers without the need to cultivate or process cannabis. Additionally, the bill permits only cannabis retailers to sell hemp-based beverages, with a tax of 38 cents applied to each 12-ounce can. Edible CBD products will also be subject to a 5.35% tax.
One of the most debated aspects of the bill is the proposal to increase the cap on cannabis retail licenses from four to six over a three-year period. Supporters argue that this change would provide struggling cannabis business owners with more opportunities to sell their companies. However, some business owners express concern that lifting the cap could lead to an influx of large, multistate corporations, potentially jeopardizing small, independent dispensaries.
The bill also seeks to reform the Cannabis Control Commission, which has faced numerous scandals in recent years, including the dismissal of former chair Shannon O’Brien and ongoing internal conflicts. Under the new structure, the commission would consist of three members: one full-time chair and two part-time commissioners. A quorum would now require only two votes instead of three. Furthermore, members will be required to adhere to a new code of ethics to mitigate conflicts of interest.
To enhance accountability, the bill outlines specific timelines for the commission to establish new regulations concerning licensing and other industry aspects, with some deadlines set as soon as one year from the bill’s passage.
Despite the House’s approval, the reform bill still requires consideration by the Senate before reaching the governor’s desk. Senate President Karen Spilka indicated that discussions with the Senate and the chair of the Cannabis Committee will take place, but she did not commit to a specific timeline for Senate action on the bill. This uncertainty leaves stakeholders wondering whether they will see a finalized reform bill in the current legislative session or if further delays are likely.
In summary, while the Massachusetts House has moved forward with a cannabis reform bill, its future depends on the Senate’s actions and the resolution of any differences between the two chambers’ proposals.
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