REPRESENTATIVE LIPPER-GARABEDIAN JOINS MASSACHUSETTS HOUSE TO PASS BILL TO REFORM CANNABIS LAWS
Bill clarifies regulatory structure and makes changes to facilitate industry growth
BOSTON – Wednesday, June 4, 2025 – Representative Kate Lipper- Garabedian (D-Melrose) joined the Massachusetts House of Representatives today passed a set of reforms to the Commonwealth’s cannabis laws that would allow the cannabis industry to continue growing responsibly. The bill makes changes to the structure of the Cannabis Control Commission (CCC), increases the number of retail licenses that an entity may have, lowers the barrier to entry for medical marijuana retail, increases purchase limits for consumers and patients, and addresses the selling of hemp products.
"This legislation is important in making the cannabis industry in the Commonwealth safer and more equitable for all residents," said State Representative Kate Lipper-Garabedian (D-Melrose). "Earlier this spring, I hosted Cannabis Chair Dan Donahue and his staff at my District’s one dispensary to discuss needed updates to our statutory framework for the industry. I am pleased to see today’s bill establish a clearer state governance structure and increase the number of stores a licensee can manage – two requests of our business neighbor. I also am glad to support the bill’s provisions regarding currently unregulated and dangerous hemp beverage products – a growing public health concern in Massachusetts. Thank you to Chair Donahue and Speaker Mariano for their leadership on this issue."
“This legislation not only makes needed changes to the structure of the Cannabis Control Commission, it’s also representative of the House’s commitment to ensuring that the cannabis industry in Massachusetts is regulated in a manner that bolsters economic opportunity, especially for communities that were disproportionately impacted by the criminalization of marijuana,” said House Speaker Ronald J. Mariano (D-Quincy). “I want to thank Chairman Donahue for his work on this issue, as well as all my colleagues in the House for recognizing the importance of these reforms.”
“This legislation will improve the CCC’s ability to effectively promote, regulate and enforce the Commonwealth’s cannabis laws, while addressing many industry concerns. I want to thank Speaker Mariano for prioritizing this bill and ensuring that early this session we are able to address concerns from the cannabis industry, consumers, and advocates,” said Representative Daniel M. Donahue (D-Worcester), House Chair of the Joint Committee on Cannabis Policy. “The new structure will provide clear accountability and enhance the operations of the CCC, while the new ownership regulations will allow for social equity and small businesses to realize their capital, grow or pursue innovative models such as employee-owned businesses. The bill also lowers the barrier to entry to become a medical marijuana retailer, which expands patient access and creates new exclusive opportunities for social equity businesses. Importantly, this bill works to tackle a growing public health concern in the form of unregulated, synthetic and intoxicating hemp products, by banning these products and providing a regulated and safe framework in which hemp beverages can be sold in our existing alcohol licensees. With these reforms, we are working to guarantee a safer and more promising future for cannabis in the Commonwealth.”
The bill passed today follows a 2022 update to cannabis laws by the Massachusetts Legislature which sought to encourage and facilitate participation in the cannabis industry from communities disproportionally harmed by marijuana criminalization by creating a Social Equity Trust Fund. That bill also strengthened the host community agreement process, clarified procedures for permitting social consumption sites, and expedited the expungement process for prior offenses that are now decriminalized.
Cannabis Control Commission (CCC)
The bill passed today restructures the CCC, which implements and administers cannabis laws, to increase accountability. Currently, the Governor, Treasurer and Attorney General are appointing authorities to the CCC. The bill passed today makes the Governor the sole appointing authority and requires the Chair of the CCC to serve coterminously with the Governor. The bill also clarifies the roles of the Chair and the Executive Director (ED) by defining the Chair as the administrative head of the agency and having the ED report directly to the Chair. It also reduces the number of commissioners from five full-time commissioners to one full-time Chair and two part-time commissioners.
The bill maintains the CCC’s policy independence and transparency by keeping “for cause” removal protections. It requires the CCC to maintain an online portal for the submission of anonymous complaints for suspected violations by licensees, to prepare a new report on public health, and to review its current testing and workplace safety regulations to ensure that they reflect the most up-to-date standards.
License Caps
In an effort to allow business owners to spread overhead costs among more stores, and to provide them with the option to exit and realize their equity as the cannabis industry matures, the bill passed today incrementally raises the limit on the number of retail licenses any individual or entity may hold from three to six. The bill limits licensees to four licenses for the first two years after the law’s effective date, and five retail licenses until three years after the effective date. Priority consideration must be given to Social Equity Businesses, Minority Business Enterprises, Woman Business Enterprises, and Veteran Business Enterprises. The bill exempts from cap limitations Employee Stock Ownership Plan (ESOP) Trustees and investors with less than 35 percent equity to increase opportunities for investment in cannabis businesses.
The bill enhances regulatory oversight over ownership and market capacity by requiring the CCC to conduct an audit of all marijuana establishments and medical marijuana establishments to ensure compliance with cap limitations. It also requires the CCC to conduct an economic analysis of the cannabis industry and expressly grants the CCC the power to limit the total number of licenses issued.
Medical Marijuana
Current law requires licensed medical marijuana businesses to be vertically integrated, which means they must cultivate, manufacture, and sell medical marijuana all under a single license. The bill passed today eliminates that requirement and grants the CCC the authority to create additional license types for medical marijuana businesses.
The bill also clarifies that the CCC’s power to promote equity in the adult-use cannabis program also apply to the medical marijuana program. The bill limits the issuance of newly de-integrated medical marijuana establishment licenses to Social Equity Businesses on an exclusive basis for three years, with the option for the CCC to vote to extend that period to ensure equity goals are met.
Purchase Limits
The bill passed today increases the purchase and possession limit from one to two ounces of marijuana and directs the CCC to establish an equivalent possession limit across product types. It also increases the possession limit that would result in a civil penalty or drug awareness programming for those under 21 from two ounces to three ounces.
Hemp
The bill passed today expressly enables and creates an oversight structure for the importation, manufacture, and sale of two forms of consumable federally legal hemp products: hemp beverages and consumable CBD products. Under this bill, both products may only be sold if registered with the CCC. The bill instructs the CCC to develop regulations for hemp product registration that aligns with regulations for marijuana products, including a prohibition on any product containing synthetic cannabinoids. The products may only be manufactured from concentrate that complies with federal potency limits on hemp.
Requirements for hemp beverage products, which are beverages containing cannabinoids derived from hemp and may have an intoxicating effect, include:
Maximum THC per container of 5mg, minimum container size of 7.5 ounces
May only be manufactured by (1) hemp and alcohol manufacturers licensed by other states that have a certificate of compliance from the CCC, and (2) marijuana and alcohol manufacturers licensed by the CCC and ABCC respectively that have an endorsement to manufacture hemp beverages from the CCC
May only be imported or sold at wholesale or retail by ABCC licensees licensed to import or sell all alcohol at wholesale or retail
Requirements for consumable CBD products, which are nonintoxicating edibles and tinctures containing cannabinoids derived from hemp, include:
May not contain more than a trace amount of THC
May only be manufactured by (1) hemp manufacturers licensed by other states that have a certificate of compliance from the CCC, and (2) marijuana manufacturers licensed by the CCC that have an endorsement to manufacture consumable hemp products from the CCC
May only be sold at wholesale or retail by entities with a DOR consumable CBD product tax license that have an endorsement to sell consumable CBD products from the CCC
The bill passed the House of Representatives 153-0. It now goes to the Senate for its consideration.
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