Mass. Senate passes sweeping pot reform bill
Bill aims to aid people of color, low-income people
The state Senate passed a sweeping cannabis bill that aims to clarify some terms of a ballot initiative first passed by voters in 2016, while promoting equity in the industry.
“Unfortunately, many barriers continue to prevent those historically harmed by marijuana prohibition from entering the industry,” said Senate President Karen Spilka, D-Ashland, adding that “guardrails” are now in place for the “Host Community Agreement process.”
The bill, championed in part by state senator and gubernatorial candidate Sonia Chang-Díaz, would make several updates to the state’s existing cannabis laws, including a firstin-the-nation social equity program for cannabis entrepreneurs. Currently, only about 7% of cannabis businesses are considered “social equity” businesses, according to the Senate.
“When we passed that law, we made it clear that our goal was to take steps to repair some of the harms caused by previous policies during prohibition wielded against communities of color,” ChangDíaz said in the Senate chamber Thursday. “We saw in 2017 that we wanted to provide a pathway into this now-legal industry for people who have been left out or locked up. Our intent was good, our focus was right. But so far, the reality has failed to live up to that promise.”
Because startup costs for cannabis retail stores can easily top $1 million, with no help from traditional banks due to federal cannabis laws, opening them is often unattainable for those from disadvantaged socioeconomic backgrounds. The bill would provide grants and loans to this group, funded by marijuana excise tax revenue– which would be about $18 million next fiscal year.
The bill would also cap fees in host community agreements at 3% of a cannabis business’s annual gross sales, and clarifies a legal loophole for social consumption sites, which would allow those who rent or live in public housing to legally consume cannabis.
The bill now heads to the House, where it has strong support from Speaker Ron Mariano, D-Quincy, who “remains committed to passing legislation in the House to ensure a more equitable cannabis market in Massachusetts,” according to his spokesperson.
A pot industry tracker reports Massachusetts sales expanded 39.6% compared to a year ago to $139.6 million, based on February stats. In January, sales had increased by 25%. Flower grew 29%, with all other categories expanding by 45-49%, the site stated.