Massachusetts House passes cannabis reform bill
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Massachusetts House lawmakers unanimously approved a cannabis reform bill that would restructure the oversight commission, regulate hemp, and tackle other hurdles in the industry.
Why it matters: Cannabis business owners and customers have debated the details for years, but they agree that the industry — and even the commission itself — is due for an overhaul.
How it works: The bill would nix the medical cannabis vertical integration requirement, allowing medical cannabis licensees to open as only retailers.
- It would allow only cannabis retailers to sell hemp-based drinks and create a tax (equivalent to 38 cents for a 12-ounce can).
- Edible CBD products would be taxed at 5.35%.
Friction point: One of the most controversial provisions is the plan to increase the cannabis license cap from four retailers to six over a three-year period.
- Proponents say it would enable cannabis business owners who are struggling to sell their companies.
- Business owners who oppose the measure say raising the cap would bring in multistate corporations that could harm mom-and-pop dispensaries.
The bill also would restructure a Cannabis Control Commission that's been fraught with scandals in recent years, from the firing of former chair Shannon O'Brien to infighting and other hurdles that have left it behind schedule on its work.
- Under the bill, the commission would have three members: one full-time chair and two part-time commissioners.
- They would need two votes, instead of three, for a quorum, and members would have to follow a code of ethics, among other parameters, to avoid conflicts of interest.
- Many provisions altering licenses and other aspects of the industry spell out timelines for the commission to establish regulations, in some cases as soon as a year.
Reality check: The cannabis bill is far from a done deal.
- The Senate needs to take it up before it can reach the governor's desk, and the House and Senate would need to resolve any differences between their bills.
- "I will talk to the senators and the chair of the Cannabis Committee, and we'll see," Senate President Karen Spilka told the State House News Service this week. "We'll take a look at whatever the House sends over, of course."
- Translation: There's no timeline for when the Senate will take up a cannabis reform bill, at least none that Spilka is willing to commit to publicly.
What we're watching: Whether business owners, consumers and other proponents of reform will be waiting another year, or another legislative session entirely, before the House and Senate finalize a bill to send to the governor.