Bill > H177

This bill makes two key changes to existing Massachusetts law regarding cannabis sales. First, it eliminates the requirement for cannabis retailers to enter into Host Community Agreements (HCAs) with municipalities, meaning local governments can no longer mandate separate agreements with cannabis businesses beyond state regulations. Second, the bill establishes a new 1% local transaction fee on all adult-use cannabis retail sales, which retailers must collect at the point of sale and remit to the state Department of Revenue, which will then distribute the funds to the appropriate municipality. Medical marijuana transactions are exempt from this fee. The bill requires the Department of Revenue to develop regulations for implementing this local transaction fee collection and distribution process within 90 days of the act's effective date. By removing HCA requirements and creating a standardized local transaction fee, the bill aims to simplify cannabis business operations and provide a consistent revenue stream for municipalities hosting cannabis retailers.

Health and Social Services

https://malegislature.gov/Bills/194/H177