The commission overseeing Massachusetts’ marijuana industry will ask the Legislature for authority to review and regulate the agreements municipalities enter into with marijuana companies.
The Cannabis Control Commission is also hoping lawmakers will clarify what exactly can go into the agreements.
Marijuana businesses today are required to enter into a host agreement with the community where they operate. Although state law caps “community impact fees” at 3 percent of sales, it does not preclude cities and towns from requiring donations to nonprofits and charities or adding additional fees. Some small businesses and minority applicants say this makes it hard for them to open shop, since they cannot pay as much as larger companies.
“It’s been a barrier to entry for some of the communities and people we’re trying to help,” said Cannabis Control Commission Chairman Steven Hoffman.
While state law authorizes the Cannabis Control Commission to oversee the industry, the law does not include reviewing community host agreements in the commission’s authority.
Commissioner Kay Doyle prepared a report, which she presented at Thursday’s commission meeting, that said the way the law is written, the courts could subject the commission to stricter examination on any decisions they make related to host community agreements, since it is not clear they have the authority to regulate those agreements.
“Rather than engage in litigation that ties up time and resources, it makes more sense to go back to the Legislature and talk about what needs to be done to address the problem,” Doyle said.
Doyle suggested the commission ask lawmakers for the clear authority to review agreements and revise them if necessary, such as by lowering or raising fees.
The commission voted 4-1 to ask for that authority.
The dissenting vote was Commissioner Jennifer Flanagan, a former state senator. Flanagan said it should be up to the Legislature to decide whether to grant that authority, and she does not think the commission should put forth its opinion.
“If the Legislature wants us to have statutory authority over community host agreements … they’ll take action to make sure that that happens,” Flanagan said. “They voted on the law and they told us what they wanted us to do, so if anything changes I’m sure they’ll tell us.”
The commission will also give lawmakers Doyle’s report, which lists several areas of law that remain murky.
Doyle said she would like to see the Legislature clarify what is covered by the community impact fee, and whether municipalities can ask businesses for additional fees or charitable donations.
Lawmakers could consider making host agreements optional, Doyle suggested, since some towns would rather treat marijuana establishments like any other business. Lawmakers could also consider letting the commission waive fees for certain types of licensed establishments, like research facilities, which do not have significant community impacts.
Doyle noted that lawmakers will have to consider how any changes made going forward affect existing contracts.