Presentation at Hazy Days: A SWAP/MWRC Forum on Planning for Recreational Marijuana, 2/14/2017

1. An Overview of The Regulation and
Taxation of Marijuana Act
February 14, 2017

2. Agenda
• Brief History of Medical Marijuana
• Brief History of Ballot Question #4
Introduction/
Background
• Personal Consumption
• State Regulatory Structure
• Taxation
• Licensure
• Timeline
The Regulation
and Taxation
of Marijuana
Act

3. • Medical Marijuana (cannabis uses for medical purposes)
– Question # 3 on the 2012 ballot
– Statewide vote: 63% yes, 37% no
– License applications began being accepted in June, 2014
– First RMD (Registered Marijuana Dispensary) was approved to sell in Salem in June of 2015
– On average an RMD application takes approximately 250-600 days to fully process
depending on financing and local compliance activities (zoning, special permitting, local
licensing & inspections, building permitting, and occupancy certificates)*
– Applications require municipal letters of support or “non-opposition” and municipalities may
negotiate “impact fees.”
• Current Status
– 9 facilities currently licensed to retail or cultivate & retail
– 0 facilities currently licensed in the MWRC & SWAP regions
– 204 license applications received since 2014
– 79 Provisional Certificates of Registration (PCRs) and Final Certificates of Registration (FCRs)
issued to date
– 4 facility applications have received PCRs or FCRs in MWRC & SWAP
• Framingham (2), Southborough, and Milford
* mass.gov/eohhs/gov/departments/dph/programs/hcq/medical-marijuana/current-status-mmj-dispensaries.html
Medical Marijuana

4. • Question #4 the Regulation and Taxation of Marijuana Act passed
November 8, 2016
• One of 3 marijuana legalization ballot questions submitted, but the only
one certified to the ballot.
• Statewide vote: 53.6% yes and 46.4% no
• MRWC Votes
– Yes (6) – Ashland (51.9%), Framingham (54%), Holliston (52.5%),
Marlborough (52.5%), Natick (53.9%), Wayland (50.2%)
– No (3) – Southborough (46.4%) , Wellesley (41.7%), Weston (44.1%)
• SWAP Votes
– Yes (5) – Bellingham (56.6%) , Franklin (50.5%), Medway (52.8%), Milford
(51.9%), Millis (51.9%)
– No (5) – Dover (43.5%), Hopkinton (48%), Norfolk (49%), Sherborn
(47.9%), Wrentham (49%)*
* wbur.org.politicker/2016/11/08/massachusetts-elections-map
Recreational Marijuana

5. • Act does two main things: (1) allows for legal personal consumption (with limits),
and (2) allows for the production and sale of recreational marijuana and
marijuana products.
• Personal Consumption
– At primary residence:
• May possess up to 10 ounces and home growth up to 12 plants (6 for an individual)
• Allows 1 ounce possession on person when outside of primary residence
• Allows 1 ounce transfer/gift without sale provided not advertised or promoted in public
– In public - No consumption in public place or where smoking tobacco is prohibited
– Vehicles - No “open container”; must be in locked area (glove compartment/trunk) or not
readily accessible.
– Rental property/business - property owners may prohibit and/or regulate “consumption,
display, production, manufacture, or sale” but cannot prohibit possession or consumption of
edibles
– State or Local facilities – may prohibit possession and consumption on property/facilities
– Penalties – Generally are civil penalties of $100 fine
What Question #4 Does

6. • Marijuana Establishments include: cultivators, testing facilities, manufacturers, retailers, and other marijuana-
related businesses.
• State Regulation:
– Cannabis Advisory Board (CAB)– 15 member board appointed by Governor to (1) Study and (2) Make Recommendations
on the regulation of marijuana and marijuana products, and (3) Advise on the preparation of Marijuana Tax (Chapter 64N)
and Regulation & Use (Chapter 94G). To include experts from cultivators, retailers, public health officials, and law enforcement.
– Cannabis Control Commission (CCC) – 3 member commission appointed by State Treasurer to (1) Regulate and (2)
Supervise and Issue Licenses for Recreational Marijuana Establishments (Not RMDs). Regulations to be informed by
recommendations from the CAB. Shall hold a public hearing before the adoption, amendment, or repeal of any regulation.
• Licensing:
– CCC receives application and fee and forwards application to local municipality. CCC shall determine if the applicant and
premises qualify and shall, within 90 days Issue the appropriate license, or send a notice of rejection setting forth specific
reasons
– Except where a municipality has prohibited a use, the following criteria are established:
• Applicant complies with all regulations
• CCC is not notified by a town that the use is not in accordance with regulations in place at the time of application (Note
that applications must be accepted beginning OCTOBER 1, 2017)
• The “property” at the time of application is not within 500 feet of a “pre-existing” public or private school from K-12
unless a local bylaw “reduces” the distance.
• Taxing:
– State excise tax rate is set at 3.75% of the total sales price of product.
– Revenues deposited into the Marijuana Regulation Fund and may be used by for the implementation, administration, and
enforcement of this chapter by the commission and by the cities and towns that authorize the operation of marijuana
establishments within their jurisdiction
– Marijuana Tax (Local Option) - Local tax option “may” be imposed on the sale or retail marijuana and marijuana products, but
may not be greater than 2% of the total sales price of product.
Production & Sale of Marijuana

7. • December 15, 2016 – Effective Date of Law / Personal Recreational Growing & Use
allowed
• August 1, 2017 – Deadline for creation of Governor-appointed Cannabis Advisory
Board.
• September 1, 2017- Deadline for creation of Treasurer-appointed Cannabis Control
Commission
• March 15, 2018 – Deadline for Cannabis Control Commission (CCC) to adopt “Initial
Regulations”
• April 1, 2018 – Deadline for CCC to begin accepting specific license applications from
“experienced marijuana establishments”
• July 1, 2018 – Deadline for CCC to adopt “Final Regulations”
– If the CCC has not adopted regulations by this time, “each marijuana treatment center” (RMDs)
may begin to sell marijuana and marijuana products to anyone 21+. This is the only way an
RMD may begin selling recreationally.
– If the CCC has adopted Final Regulations by July 1, 2018, the CCC will begin issuing licenses
within 90 days after applications are received or after April 1, 2018 (July 1, 2018 is the
earliest a license will be issued)
• April, 2019 – CCC begins accepting retail license applications from all retailers.
Current Timeline