Republican file photo

By Shira Schoenberg / The Republican

The Cannabis Control Commission, the body tasked with overseeing Massachusetts’ new legal marijuana industry, voted unanimously Thursday to approve draft regulations.

These are the rules that will govern everything from licensing to retail sales of marijuana.

The new rules will allow for the sale of marijuana at yoga studios and movie theaters. They will set regulations for packaging and advertising. They will allow for the creation of marijuana “microbusinesses.”

“We have tried to use our best judgment to honor the will of the voters of the state of Massachusetts by making adult use marijuana accessible to citizens of the state over 21,” said commission Chairman Steven Hoffman. “We are doing so with a very careful eye on ensuring that public health and public safety will be maintained.”

Hoffman noted that the state is in “uncharted territory” with marijuana regulation. “This industry will evolve, and we’ll continue to be dedicated and obsessive about making it as safe as possible while honoring the will of voters in the state,” Hoffman said.

These rules are only a draft. They will be open for public review and comment, and public hearings will be held around the state in February. The final rules must be voted on by March 15.

“Even if people have concerns or they disagree with the policy, I think everyone will agree the process was fair and transparent, and we really gave the public a chance to weigh in and consider it, and we’re going to do that again,” said Commissioner Shaleen Title.

Here’s a look at some of the provisions.

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Ted Dobson of Equinox Farm in Sheffield is one of a number of farmers in Massachusetts hoping to get into the nascent recreational marijuana industry. (Dave Roback / The Republican file)

Craft cooperatives and microbusiness

The commission will legalize “craft cooperatives,” which are groups of growers that band together and obtain a single license.

The growers can cultivate marijuana in up to six locations and process it in up to three locations. They must have lived in Massachusetts for at least a year before submitting an application.

The goal is to let local farmers get into the industry without having to pay as high of a licensing fee and with the ability to grow their own marijuana but work with someone else to process and market the products.

Massachusetts farmers hope to keep marijuana business local

There also will be separate licenses granted to “microbusinesses,” which have less than 5,000 square feet of growing space and are run by someone who has been a Massachusetts resident for at least a year.

The idea is to give local entrepreneurs easier access to produce craft products, similar to craft breweries.

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Rita Tsalyuk, left, and Kirill Merkulov pose for a photo Monday, Dec. 11, 2017, in Denver, at their business "Coffee Joint." They hope the coffee shop will be among the nation's first legal marijuana clubs and applied this month for a license with the city of Denver. (Kathleen Foody / Associated Press)

Marijuana-infused yoga

Yes, you will be able to do yoga while high.

There will be licenses granted to businesses that sell marijuana for on-site consumption, potentially in combination with another service – for example, restaurants, spas, movie theaters and yoga studios. Consumers will not be allowed to bring in their own marijuana.

Alcohol cannot be sold at the same time marijuana is being used or sold. Smoking will not be allowed.

Businesses with licenses allowing social consumption will only be allowed to sell individual portions, and marijuana will not be allowed to leave the premises. Businesses will need to develop plans to help patrons with transportation.

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People anxious to relieve suffering in their pets are increasingly turning to oils and powders that contain CBDs, a non-psychoactive component of marijuana. This photo shows a syringe loaded with a dose of CBD oil in a research laboratory at Colorado State University in Fort Collins, Colo. (David Zalubowski / Associated Press file)

Research

Until now, it has been difficult for anyone to research marijuana because it remains illegal federally, and there was no legal way to obtain it in Massachusetts for non-medical use.

The new regulations will create a license for marijuana research facilities, which would allow the facility to cultivate or purchase marijuana for research.

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Shanel Lindsay, a Newton attorney, says she was arrested for marijuana possession because she is black. She spoke at a pro-marijuana legalization press conference Oct. 6, 2016. (Shira Schoenberg / The Republican file)

Social justice implications

Advocates for minority communities have argued that those communities hardest hit by drug enforcement efforts should have an opportunity to enter the legal marijuana industry.

The commission agreed to give priority review for licensing to companies with owners or employees who live in areas of “disproportionate impact,” who have business experience in “economic empowerment,” and who have drug-related criminal records.

There is also an “equity program” available for Massachusetts residents who want to start marijuana businesses who live in areas of disproportionate impact and have drug-related convictions. Those residents would be eligible for fee waivers and technical assistance in things like employee training, accounting, tax compliance and creating business plans.

All applicants will have to submit a “diversity plan” to promote racial and gender equity and will have to take steps to promote equitable employment opportunities for minorities, women, veterans, low-income individuals and communities with high arrest rates for drug crimes.

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Edible marijuana products. (Campaign for a Safe and Healthy Massachusetts)

Edibles

Marijuana edibles will be permitted but will not be allowed to bear resemblance to a human, animal, fruit or sports equipment. Products cannot have names similar to products consumed by minors. The goal of these restrictions is to avoid companies marketing marijuana edibles to children.

A symbol will need to be placed on all edible marijuana products or their packaging indicating that the product contains marijuana. The size of edibles will be limited to 5 milligrams of THC per serving and 20 servings per package.

Got the munchies? Pot brownies and candy central to marijuana legalization debate

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Theory Wellness, a Bridgewater marijuana cultivation facility. (Courtesy of Theory Wellness)

Licensing

There will be separate licenses for growers, product manufacturers, retailers, testing labs and transportation companies. There will be delivery-only licenses. There will be different tiered licenses for growers depending on how much cultivation space a grower has.

This means a company can apply to do only one part of the process. That is different from the medical marijuana industry, where one company has to grow, manufacture and sell the marijuana so it can be tracked from seed to sale.

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Sheriff's deputies seize marijuana from a growing operation in unincorporated Calaveras County, Calif., in September. Marijuana has deeply divided the financially strapped county and it is among many now grappling with a pot economy where growers have become increasingly open about their operations and have begun encroaching on residential neighborhoods. (Noah Berger / Associated Press file)

Outdoor growing

While medical marijuana until now has had to be grown indoors, the new regulations will allow for outdoor cultivation. Outdoor cannabis crops will need to be monitored by a surveillance system, with video cameras and fencing.

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The Holyoke Police Department in July held a press conference to announce the results of its recent "Operation Full Throttle II" campaign to combat street-level drugs, firearms and crime. Four hundred arrests were made. (Don Treeger / The Republican file)

Background checks

License applicants will be disqualified if they have serious criminal convictions or pending charges. There are different standards for different types of licenses, but criminal offenses that are disqualifying generally include convictions for fraud or dishonesty, violent crimes, sex crimes, failure to register as a sex offender, drug distribution to minors, felonies and unresolved marijuana business violations.

Convictions for some offenses would disqualify an applicant, but the disqualification could be appealed through a review process. These include firearms crimes, weapons crimes involving narcotics, open criminal warrants and having multiple criminal complaints within a short time period.

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Fees

Application fees will be $300, with a few exceptions. The annual licensing fee will be on average $5,000. The fee will be lower for microbusiness licenses and tiered for cultivation licenses, with fees ranging from $1,000 to $5,000. The fee will vary if a business is likely to incur unusually high enforcement costs.

There will be other fees for services such as changing the location or the ownership of a marijuana business.

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The site of a medical marijuana facility planned for Holyoke. (Mike Plaisance / The Republican file)

Medical marijuana

Companies that already have licenses to sell medical marijuana will be eligible for “priority application review.” They must still submit some additional documentation, such as a host community agreement specific to recreational marijuana and background information for managers not involved in the medical marijuana dispensary.

If medical marijuana and recreational marijuana are sold at the same place, they will have to be kept physically separate and have separate computer tracking systems.

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Timing for applications

After a complete application is submitted, state regulators will have 90 days to grant or deny a provisional license. Municipalities will have to weigh in during that time. The provisional license would include certain conditions, such as the need for an inspection.

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Operations

Many of the standards adopted by the commission are already being used elsewhere. For example, growers will have to use “generally accepted agricultural practices” and adhere to Massachusetts and U.S. law on things like pesticide application and organic growing.

Manufacturing regulations will be similar to those in place for medical marijuana. Transportation and testing requirements have been developed by the Department of Public Health.

Delivery trucks will have to adhere to rules such as installing a security system, keeping marijuana in a locked box, not labeling the truck in a way that identifies the contents, not having firearms in the truck, and having two occupants in any vehicle.

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Packaging

Marijuana products will have to be in child-proof packaging. Packages will have to be opaque or plain and resealable if the package contains multiple servings. Packages will need to include a nutritional label, which includes information about the type of marijuana used.

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A billboard from Washington state, were recreational marijuana is already legal. (Courtesy of the Campaign for a Safe and Healthy Massachusetts)

Advertising

The rules prohibit advertising that includes “obscene or suggestive statements.” Marijuana signs and advertisements cannot be displayed at businesses where marijuana is not being sold. There cannot be any transit advertising for marijuana, including on private or company cars, at train stations, bus stops or airports.

All advertising will need to include the phrase, “Please consume responsibly.” It will also contain two other warnings out of a possible five. These include statements such as: “This product may cause impairment and may be habit forming,” “For use only by adults twenty-one and older. Keep out of reach of children,” and “There may be health risks associated with consumption of this product.”

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Banking

Banking is a problem for the marijuana industry. Since marijuana is illegal on a federal level, banks risk having assets seized if the federal government cracks down on marijuana businesses.

The state of Massachusetts will negotiate an agreement on behalf of licensees with state-chartered banks or credit unions to allow retailers to make cash deposits and conduct electronic transactions. The Department of Revenues will use large cash handling machines to allow retailers to deposit tax payments in cash.

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Insurance

Marijuana businesses will be required to have liability insurance of $1 million per incident and $2 million annual aggregate.

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Closed signs are displayed on the front door to a marijuana dispensary in south Denver earlier this month. Twenty-six legal marijuana businesses were closed by Colorado officials amid a police investigation expected to lead to criminal charges. (David Zalubowski / Associated Press file)

Inspections and enforcement

State regulators will be able to inspect facilities, take complaints and make random retail purchases. Enforcement actions will be similar to the medical marijuana program. Fines can be as high as $25,000 per incident, depending on the circumstances. There will be an appeals process.