a memorandum regarding Establishing the Equitable Regulation of the Cannabis Industry in the City of Cambridge

CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 1 To: Paula Crane, Interim City Clerk From: Quinton Y. Zondervan and Sumbul Siddiqui, City Councillors Date: June 20, 2019 Subject: Memorandum Submission Please place the attached memorandum, “Establishing the Equitable Regulation of the Cannabis Industry in the City of Cambridge” on the City Council agenda as “Communications and reports from Other City Officials” for the June 24, 2019 meeting. Thank you.

CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 2 MEMORANDUM To: Cambridge City Council From: Quinton Y. Zondervan and Sumbul Siddiqui, City Councillors Date: June 20, 2019 Subject: Establishing the Equitable Regulation of the Cannabis Industry in the City of Cambridge Establishing the Equitable Regulation of the Cannabis Industry in the City of Cambridge Since the last Ordinance Committee meeting (May 9, 2019), held to discuss the proposed Cannabis Business Permitting ordinance, Councillors Zondervan and Siddiqui have individually met with the City Solicitor's office to discuss additional proposed amendments. As new draft language for the ordinance has not been made available to us thus far, we are describing these amendments conceptually for discussion and consideration at the upcoming Ordinance Committee meeting (June 27, 2019) in this memo, in the hope that the Committee can provide guidance to the City Solicitor’s office so that the ordinance language can be finalized subsequent to that meeting, and can be presented to the full Council in time for final deliberation and adoption of the ordinance at the summer meeting (July 29, 2019). Proposed Amendments to the Ordinance: Chapter 5.50 Cannabis Business Permitting 020.a Group A Priority Applicant definition: Add a Cambridge residency requirement to Social Equity applicants as follows: A person, corporation, or other legal entity applying for a Cannabis Business permit pursuant to this Chapter to operate in the City who is:

CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 3 1) A Social Equity Applicant certified by the Commonwealth of Massachusetts Cannabis Control Commission (CCC), and has been a Cambridge resident for at least 2 years; or 2) a Women or Minority Owned business as certified by the Commonwealth; or 3) a Cambridge resident earning less than 50% AMI in the tax year prior to application-- to be known as Group A Priority Applicants. ... 040. Permitting Preferences for Priority Applicants: a. The City shall issue a Cannabis Business permit pursuant to this Chapter only to Priority Applicants. b. For the first 2 years from the effective date provided in Section 10 below, the City shall issue a Cannabis Business permit to operate a Cannabis Retail Store pursuant to this Chapter only to Priority Applicants who are an Economic Empowerment Applicant. 050. Permitting Requirements: a. In order to obtain a Cannabis Business permit pursuant to this Chapter, an applicant must certify that: ADD the following criteria: It will certify it is a business in good standing with no outstanding federal, state or local investigations or judgments pending against it. If operating a Cannabis Retail Store, it will certify it will sell its products at the appropriate discount to holders of a Massachusetts Medical Marijuana Card for any qualifying Cannabis products sold in its store. It will comply with disclosure requirements similar to Boston (attached to memorandum) including beneficial and controlling ownership, loan agreements and shelf space agreements. Proposed Regulations:

CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 4 Based on the information disclosed in the application, the City Manager will not issue a license to an applicant if any third party has more than 50% stake (controlling interest) in the applying Cannabis Retail establishment and also has a controlling interest in any other licensed Cannabis Retail establishment in Cambridge. The City Manager may impose other restrictions on third party control over shelf space, loans and other financial interests in Cannabis Retail establishments in Cambridge so as to ensure fairness, and to limit the amount of control any one party has over the licensed Cannabis Retail establishments in Cambridge. Other Proposed Provisions: Cannabis License Registry The Community Development Department shall publish online a registry that lists all currently licensed cannabis establishments, the type(s) of licenses held by each establishment, the owner(s) name(s), and the physical address(es) of operation.The registry shall be accompanied by a map, showing the locations of all licensed establishments.