Massachusetts, the cannabis legalization guinea pig of the Eastern U.S., is resetting the reform bar for its adult-use and medical programs after Gov. Maura Healey signed a legislative package on April 19.
The legislation, An Act Modernizing the Commonwealth’s Cannabis Laws, immediately increases the purchase and possession limit for those 21 years or older from 1 ounce to 2 ounces, and directs the state’s Cannabis Control Commission (CCC) to adopt new regulations for equivalency amounts in other products. Until those rules are promulgated, the new purchase limits are 10 grams of THC in concentrates and 1,000 milligrams of THC in edibles.
In anticipation of the governor’s signature, the CCC confirmed on April 17 that Metrc, the state’s seed-to-sale tracking system, was ready to support the new sales transaction limits ahead of 4/20.
The new law also has wide-reaching impacts on the CCC’s regulatory structure and duties, licensed cannabis business operations, individual liberties, and the hemp-derived cannabinoid market in the commonwealth.
The governor’s signature comes after the legislation passed with a 155-0 vote in the House and a voice vote in the Senate earlier this month.
“The cannabis industry is an important part of [the] Massachusetts economy – supporting jobs and local businesses and generating revenue for cities and towns,” Healey said in a joint statement with lawmakers. “It’s important that we are doing everything we can to make sure this industry is set up for success and that we remain competitive in this fast-growing market.”
The governor is now tasked with appointing three cannabis commissioners within 30 days under the signed legislation, which overhauls the CCC from its current five-commissioner structure. At least one of the appointees must have a background in social justice, while the other two need to have experience in public health, public safety, regulating consumer commodities, or the production and distribution of cannabis.
The new law also clarifies that the CCC’s executive director must report to the CCC chair.
“During this transition, the organization will remain focused on its primary mission of regulating a safe, equitable cannabis industry for consumers, patients, business leaders and taxpayers in Massachusetts,” Executive Director Travis Ahern said. “The commission has capably integrated legislative changes before, such as with the extensive Chapter 180 reforms, and we will do the same now as we enter a new era as an agency while working with the governor to implement the legislative intent of this bill.”
Under the signed bill, the CCC will be responsible for conducting studies on myriad reform issues, from public health impacts to the state’s 10.75% cannabis excise tax, supply and demand economics, workplace safety, and effective regulations for a hemp-derived cannabinoid market.
Other key legislative changes include:
- Doubling the business license limit to six;
- Removing the requirement that medical cannabis businesses be vertically integrated;
- Loosening restrictions on business advertising;
- Establishing an anonymous online tips portal for suspected violations;
- Creating a public delinquency list to keep businesses in credit compliance;
- Promoting small and equity-driven business growth; and
- Expanding the potential for adult-use delivery services.
Sen. Adam Gómez, D-Springfield, who co-chaired a bicameral committee that reconciled the final legislation, said the governor’s signature represents an “important step” to promote a more “responsive, profitable and competitive” cannabis industry for businesses and consumers.
“This legislation strengthens oversight of the Cannabis Control Commission, making smart updates that support small businesses, improve accountability and ensure consumers can access cannabis safely and legally,” he said. “Through clarifying delivery and advertising rules, increasing transparency on accounts receivable, raising purchasing amounts and modernizing license caps, we are building a more stable and equitable cannabis marketplace for our state, and I am proud of our body for prioritizing reform this session.”
Under the new credit compliance provision, it will be unlawful for a cannabis business to extend credit to another business beyond 60 days. Once a business becomes delinquent beyond that 60-day allowance, its name and address would be placed on a public list, forbidding other businesses from selling or delivering cannabis or cannabis products to that business until its debt is paid off.
On the other hand, the legislation will loosen compliance restrictions on advertising, marketing and branding for licensed dispensaries, allowing them to promote sales, discounts and loyalty programs inside their stores and through opt-in emails.
The signed bill also doubles the ownership threshold to 20% for those planning to reach the license cap – a provision that intends to allow additional investment resources for small and equity businesses while also preventing overconsolidation in the marketplace.
Cannabis delivery businesses can also service any municipality in the commonwealth, even those that opt out of allowing licensed establishments in their jurisdictions, unless such a municipality requests a two-year waiver from the CCC allowing it to prohibit cannabis deliveries.
Rep. Daniel M. Donahue, D-Worcester, who also co-chaired the bicameral committee, said, “These reforms signal a renewed commitment from the commonwealth to ensuring a safe, equitable and prosperous future for the legalized cannabis industry.”
