BOSTON – The Massachusetts Senate on Thursday passed S.2801, An Act Relative to Equity in the Cannabis Industry.
“I’m proud that when the Senate and the Legislature legalized the commercial marijuana industry in 2017, we prioritized the creation of a first-in-the-nation equity program,” said Senate President Karen E.
“The legislation we passed today builds upon the goals that we have always had for the cannabis industry here in the Commonwealth – protecting consumers, supporting small business, and promoting social equity,” said Senator Michael J.
“Addressing racial justice in our state means getting real about closing our cavernous racial wealth divide,” said Senator Sonia Chang-Díaz .
“When we passed recreational cannabis legislation five years ago, we sought to ensure the Commonwealth’s budding cannabis industry would be equitable, diverse, and have ample avenues of entry for small-scale and Black and Brown-led entrepreneurship,” said Assistant Majority Whip Julian Cyr .
“Limiting the cost of operation is part of promoting social equity and repairing harm to communities harmed by War On Drugs, by lowering one of many barriers to entry with the host community agreement reform in this bill,” said Senator Patricia Jehlen .
The bill builds upon existing Massachusetts law, which legalized adult-use cannabis and made a first-in-the-nation commitment to equity in the cannabis industry.
Since federal cannabis laws prevent these businesses from accessing traditional bank loans, lack of capital can pose an insurmountable barrier, leaving many entrepreneurs vulnerable to predatory financial deals and damaging equity partnerships.
The bill also responds to concerns about the process of negotiating Host Community Agreements , which have been identified as a key factor in keeping industry entry costs high.