Rep. Soter Pushes Cannabis Reforms

Medway's Precinct 1 State Representative Michael Soter (R-Bellingham) has endorsed legislation to restructure the state’s Cannabis Control Commission (CCC) and amend the state’s marijuana laws to regulate hemp-based drinks and consumable cannabinoid (CBD) products, improve workplace safety oversight and data collection within the industry, and authorize stand-alone retail medical marijuana businesses.

House Bill 4187, An Act modernizing the Commonwealth’s cannabis laws, was released from the House Ways and Means Committee on June 3 and engrossed by the House of Representatives by a vote of 153-0 on June 4, following the adoption of a handful of amendments during floor debate. Representative Soter said the bill will protect consumers and support businesses by strengthening the industry’s regulatory framework.

In addition to changing the CCC’s composition and appointing authority, House Bill 4187 takes steps to address the lack of oversight of intoxicating hemp-derived beverages and other consumable CBD products which can cause impairment but are sold at many convenience stores and gas stations. Representative Soter said the bill establishes standards for licensing, compliance and testing of these products, which are currently unregulated but will now be subject to investigation and enforcement by the CCC and local boards of health. Manufactured hemp beverages will need to comply with new labeling requirements that will include testing disclosures and will be assessed a $4.05 per gallon excise tax, while a 5.35% excise tax will be imposed on all consumable CBD products.

According to Representative Soter, House Bill 4187 also:

• assists marijuana establishments, which are not able to secure funding through traditional banks due to marijuana being illegal at the federal level, by establishing a credit system allowing these businesses to extend or receive credit for up to 60 days from other businesses within the industry;

• raises the license cap for marijuana establishments by allowing licensees to hold up to 6 marijuana retailer licenses, 3 fully integrated medical marijuana treatment center licenses, 3 marijuana product manufacturer licenses and 3 marijuana cultivator licenses, although this cap will not apply to individuals or entities possessing less than 35% equity in a license;

• increases the personal possession of marijuana limit from 1 ounce to 2 ounces;

• creates a new medical marijuana establishment license for medical marijuana sales that does not require licensees to cultivate cannabis, while limiting these licenses, with the exception of fully integrated medical marijuana treatment centers, on an exclusive basis to social equity businesses for the first 36 months following the effective date of this act;

• directs the CCC to conduct reports on workplace safety regulations, an economic analysis of the Commonwealth’s cannabis industry, and on cannabis consumption, incidents of impaired driving, and hospitalizations; and

• establishes an anonymous online portal to receive complaints related to suspected illegal conduct of businesses licensed by the CCC.

The bill’s passage comes at a time when the CCC has been dealing with several internal and external conflicts, including Treasurer Deborah Goldberg’s decision to suspend, and later fire, former chair Shannon O’Brien due to allegations of racial insensitivity and bullying behavior. In response to the ongoing dysfunction, Inspector General Jeffrey S. Shapiro last year called for the Legislature to appoint a receiver for the CCC, describing it as a “rudderless agency without a clear indication of who is responsible for running its day-to-day operations.” Two vacancies on the CCC also remain unfilled.

Representative Soter noted that the House bill calls for reducing the number of commissioners on the CCC from five to three and gives the governor the sole authority to appoint all three commissioners, as well as the chair, whose tenure will coincide with the governor’s term in office. Commissioners would serve for four-year terms and would be limited to serving no more than eight years.

Currently, two of the five members of the CCC are appointed by a majority vote of the governor, treasurer and attorney general, with the remaining members chosen individually by each of the three constitutional officers. Although the treasurer currently appoints the chair and the executive director, the House proposal would authorize the chair to choose the executive director.

House Bill 4187, as amended, now moves to the Senate for its consideration.