a report from Councillor Dennis J. Carlone and Councillor Craig A. Kelley, Co-Chairs of the Ordinance Committee, for a public hearing held on August 14, 2019 to continue discussions on a proposed amendment to the Municipal Code to create a Cannabis Business Permitting ordinance including amendments submitted at the July 30, 2019 Special City Council meeting

AiTACHMENT A A City of Cambridge 0-38 IN CITY COUNCIL July 30, 2019 COUNCILLOR SIMMONS ORDERED: That the Ordinance Committee conduct a public hearing on August 14, 2019 at 5:30 p.m. to discuss the proposed amendment to the Municipal Code to create a Cannabis Business Permit Ordinance; said public hearing to include discussions on the substituted text as identified as Attachment B in the Committee Report #4 dated July 30,2019 and a Communications and Reports from Other City Officers dated July 30, 2019 submitted by Councillor Simmons together with an additional amendment to Section 5.50.040. In City Council July 30, 2019. Adopted by the affirmative vote of nine members. Attest:- Paula M. Crane, Interim City Clerk A true copy; Damaiciare ATTEST:- Paula M. Crane, Interim City Clerk

CITY OF CAMBRIDGE In the Year Two Thousand Nineteen AN ORDINANCE In amendment to the Municipal Code of the City of Cambridge Be it ordained by the City Council of the City of Cambridge as follows: That the Municipal Code of the City of Cambridge be amended in Title 5 entitled "Business Licenses and Regulations" by adding a new chapter 5.50 entitled "Cannabis Business Permitting" which reads as follows: Chapter 5.50 Cannabis Business Permitting 5.50.010 Purpose This ordinance is intended to create a separate local permitting requirement for Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter (collectively "Cannabis Business") applicants to certify compliance with certain conditions in the public interest prior to being permitted to operate a Cannabis Business in the City. The City deems it to be in the public interest to give initial permitting preferences for Cannabis Businesses to Priority Applicants, as defined herein. 5.50.20. Definitions Cannabis Business. A Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter. Cannabis Cultivator. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Cultivator to cultivate, process and package cannabis or marijuana, and to transfer cannabis or marijuana to other cannabis or marijuana establishments, but not to consumers. A craft marijuana cooperative as defined by state regulation is a type of Cannabis Cultivator. Cannabis Product Manufacturer. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Product Manufacturer to obtain, manufacture, process and package cannabis or marijuana products and to transfer these products to other cannabis or marijuana establishments, but not to consumers. Cannabis Retail Store. An establishment authorized to sell or otherwise transfer cannabis or marijuana products to consumers for use off the premises, but not to cultivate, manufacture, process, or package cannabis or marijuana products, in accordance with applicable state laws and regulations. A Cannabis Retail Store may be licensed to operate as a Cannabis or Marijuana

2 Retailer or registered as a Medical Marijuana Treatment Center, also known as a Registered Marijuana Dispensary (hereafter "RMD"), or both, in accordance with applicable state laws and regulations. Cannabis Transporter. An entity, not otherwise licensed by the Cannabis Control Commission, that is licensed to purchase, obtain, and possess cannabis or marijuana, or cannabis or marijuana products, solely for the purpose of transporting, temporarily storing, selling and distributing them to cannabis establishments, not for selling to consumers. Local Sales Taxes. Taxes imposed by the City upon the sale or transfer of marijuana or marijuana products by a Cannabis Retail Store pursuant to Section 3 of M.G.L. Chapter 64N. Priority Applicant. A person, corporation, or other legal entity applying for a Cannabis Business permit pursuant to this Chapter to operate in the City who is: a. Group A Priority Applicant. An Economic Empowerment Applicant certified as such by the Commonwealth's Cannabis Control Commission; or a Social Equity Program Applicant certified as such by the Commonwealth's Cannabis Control Commission who is also a Cambridge resident and has been for at least the previous three years; or a Women or Minority Owned business as certified by the Commonwealth and/or by the City; or a Cambridge resident for at least the three previous years prior to application earning less than fifty percent (50%) of Area Median Income (AMI) in the three previous tax years prior to application -- to be known as Group A Priority Applicants. b. Group B Priority Applicant. An RMDA Medical Marijuana Treatment Center within the City that was licensed or registered by the Massachusetts Department of Public Health not later than July 1, 2017 to sell cannabis products in a Cannabis Retail Store pursuant to the Commonwealth's medical use of marijuana laws, which seeks to operate as a Colocated Marijuana Operation licensed marijuana retailer pursuant to 935 CMR 502.000: Colocated Adult-Use and Medical-Use Marijuana Operationsthe Commonwealth's adult use of marijuana laws - to be known as Group B Priority Applicants. Those who qualify as Group B Priority Applicants cannot also qualify as a Group A Priority Applicant. 5.50.030 Applicability This Chapter shall apply to any proposed Cannabis Cultivator, Cannabis Product Manufacturer, Cannabis Retail Store, or Cannabis Transporter that is seeking licensure from the Cannabis Control Commission on or after the effective date of this Chapter. This Chapter shall not apply to RMDs that have already been permitted in the City and are not seeking licensure as a Cannabis Retail Store for retail cannabis sales prior to the effective date of this ordinance ("Existing RMD"). 5.50.040 Permitting Preferences for Priority Applicants The City shall issue a Cannabis Business Permit pursuant to this Chapter only to Priority Applicants (a) for the first two years after the Effective Date of this Chapter as stated in section 5.50.100 below, or (b) if the applicant is an RMD that has been granted a Special Permit from the City of Cambridge before July 1, 2019 and is seeking licensure. The City shall issue a Cannabis Business Permit to operate a Cannabis Retail Store only to Group A Priority Applicants who are Economic Empowerment Applicants certified as such by the Commonwealth's Cannabis Control Commission and Group B Priority Applicants. The City shall make all reasonable efforts to

3 expedite all local municipal requirements pursuant to 5.50.050(a)(10.) below within 45 days following ordination of this Chapter for all eligible Priority Applicants for the City's execution of Host Community Agreements and within 90 days following ordination of this Chapter for all eligible Priority Applicants for issuance of special permit. No Cannabis Retail Store shall open to adult-use retail sales prior to January 1, 2020. 5.50.045 RMD Economic Empowerment Accelerator Deposit a. Each Group B Priority Applicant seeking to convert from a Medical Marijuana Treatment Center to a Colocated Marijuana Operation shall i) make two (2) deposits of not less than $500,000 into the Cambridge Cannabis Accelerator and Incubator Fund for the purpose of providing no-interest start-up capitalization grants to support qualifying Economic Empowerment applicants certified pursuant to section 5.50.060 below, and ii) coordinate with each Group B Priority Applicant to collaboratively establish and fund a management and operations training program available for all Group A Priority Applicants certified pursuant to section 5.50.060 below. Each Group B Priority Applicant shall make an initial deposit no later than January 1, 2020; however, such payment shall only be made following issuance and execution of all local municipal requirements pursuant to 5.50.050(a)(10.) below. Final deposit shall be made twelve months following initial deposit by each Group B Priority Applicant. b. The City shall deposit twenty (20) percent of all Local Sales Taxes into the Cambridge Cannabis Accelerator and Incubator Fund. 5.50.050 Permitting Requirements a. In order to obtain a Cannabis Business permit pursuant to this Chapter, an applicant must certity that: 1. It will comply with employee pay standards set out in the City's Living Wage Ordinance; 2. It will hire at least 51% of minority, women and/or veterans as employees; 3. If applicant has a Board of Directors, the board makeup will be at least 51% minority, women and/or veterans; 4. It consents to unannounced, periodic compliance inspections by City officials of its Cannabis Business, including any Cannabis Business activities it conducts off-site; 5. It will comply with all State and local laws and regulations regarding its Cannabis Business operations; 6. No person under the minimum legal sales age shall be permitted to enter the Cannabis Business site unless such person possesses a state-issued registration card demonstrating that the person is a registered qualifying medical marijuana (cannabis) patient pursuant to 935 CMR 501.000 and the Cannabis Business site is, or is co-located with, an RMD; 7. It will work with the Cambridge Public Health Department to create and distribute educational materials to its customers as directed by the Cambridge Public Health Department;

4 8. It will sell only cannabis and cannabis accessories, and not other products, including tobacco products or alcoholic beverages of any kind; 9. It will comply with directives of the Police Commissioner and of the Director of Traffic Parking and Transportation, or their designees, regarding traffic measures to be taken at and near the Cannabis Business site; 10. It has received a special permit from the Planning Board for its Cannabis Business and has entered into a Host Community Agreement with the City through the City Manager's Office; and 11. It is a business in good standing with no outstanding federal, state or local investigations or judgments pending against it. b. No discretionary permit conditions may be imposed by the permit issuing authority pursuant to this Chapter. c. A Cannabis Business permit shall be valid only for the applicant to which the Cannabis Business permit was issued, and only for the use and for the site approved in the permit. A proposed change of controlling or ownership, change of use, or change of site shall require a new Cannabis Business Permit. As part of the Cannabis Business permit application process, the City shall require the applicant to disclose all individuals and legal entities who have a beneficial interest in the applicant's business as required pursuant to standards for change in ownership or control issued by the Massachusetts Cannabis Control Commission. 5.50.060 Permitting Procedure This Chapter shall be administered by the City's Inspectional Services Department, except that Priority Applicant status shall be certified by the Director of the Economic Development Division of the Community Development Department. Applications for Cannabis Business permits shall be obtained from and submitted to the Inspectional Services Department. If permit applications are properly completed and certified, and the conditions of this Chapter are met, the Commissioner of Inspectional Services (the "Commissioner") shall issue a Cannabis Business Permit to the applicant. No public hearing process on individual applications shall be conducted. A Host Community Agreement shall be negotiated with the City Manager. 5.50.070 Permit Expiration and Renewal The Cannabis Business Permit issued pursuant to this Chapter shall be subject to renewal annually. If the applicant fails to timely renew or fails to meet the requirements of this Chapter at the time of each renewal, including the Permitting Requirements in section 5.50.050 above, the Cannabis Business Permit issued hereunder shall expire. A Cannabis Business Permit will not be renewed if the permit holder has failed to pay all fines issued pursuant to this Chapter.

5 5.50.080 Enforcement a. Failure to comply with this Chapter, including a failure to maintain the status of a Priority Applicant, failure to obtain or to comply with the provisions of a Planning Board special permit or State license to operate a Cannabis Business, or failure to comply with any applicable laws, may result in revocation by the City, through the Commissioner, of the Cannabis Business Permit granted pursuant to this Chapter. Failure to meet the annual Cannabis Business Permit renewal requirements will result in the expiration of the Cannabis Business Permit. If a permit holder's State license is revoked, then the Cannabis Business Permit issued by the City shall be revoked. A Cannabis Business Permit may be revoked or not renewed if the permit holder has sold a cannabis product to a person under the minimum legal sales age three times or more, or if the permit holder has failed to pay to the City all outstanding fines issued pursuant to this Chapter. b. An applicant must cease to operate if it does not hold and maintain a valid Cannabis Business Permit pursuant to this Chapter. Prior to revoking a Cannabis Business Permit issued hereunder, the Commissioner will notify the Cannabis Business Permit holder in writing and allow the Cannabis Business Permit holder at least fourteen (14) days to submit written information to the Commissioner establishing that the Cannabis Business Permit holder is in compliance with the terms of this Chapter. The Commissioner shall make a final determination on the Cannabis Business Permit expiration or revocation thereafter. If a permit holder requests, the Commissioner in his discretion may hold a hearing before deciding whether to revoke a Cannabis Business Permit. c. Any violation of this Chapter by a permit holder shall be subject to a fine of up to $300 for each violation. Each day a violation exists shall constitute a separate violation. d. Fines pursuant to this Chapter may be issued pursuant to the non-criminal ticketing procedure in G.L.c.40, §21D. The Commissioner of Inspectional Services, the Police Commissioner, and the Commissioner of Public Health, or their designees shall be the enforcement officials for this Chapter. 5.50.090 Regulations The Commissioner of Inspectional Services, as well as the Assistant City Manager for Community Development, with the approval of the City Manager, are authorized to promulgate regulations and to create the necessary application and permit forms, to implement this Chapter with respect to their respective responsibilities pursuant to this Chapter. Regulatory requirements implementing this ordinance may differ for Priority Applicants and non-Priority applicants, such that the regulatory burden for Priority Applicants is less burdensome. 5.50.095 Cambridge Cannabis Accelerator and Incubator Fund a. No later than 45 days following ordination of this Chapter, the Assistant City Manager for Community Development shall issue a procurement for the City to engage a nonprofit located within the City to establish and administer a Cambridge Cannabis Accelerator and Incubator Fund. The purpose of the fund shall be to 1) provide no-interest start-up capitalization grants to support qualifying Economic Empowerment applicants certified pursuant to section 5.50.060 above, and 2) establish an incubator program for Group A Priority Applicants. The Assistant City Manager shall select such nonprofit by no later than November 1, 2019. b. The Fund shall be administered by the selected nonprofit. There shall be a Cambridge Economic Empowerment Accelerator Fund Advisory Board which shall support and advise the nonprofit in its administration of the fund. The advisory board shall be made up of the

6 Assistant City Manager for Community Development or designee, who shall serve as chair, as well as four City residents with experience in community and economic development or small business development to be appointed by the City Manager. 5.50.100 Effective Date This Chapter shall take effect on , 2019. 5.50.110 Severability The provisions of this Chapter are severable, and if any part of this Chapter should be held invalid by a court of competent jurisdiction, such invalidity shall not affect the remainder of the Chapter, and the remainder of the Chapter shall remain in full force and effect.

B AHACHMENTB CAMBRIDGE CITY COUNCIL E. Denise Simmons Mayor 2008-2009 City Councillor 2016-2017 August 13, 2019 Paula Crane Interim City Clerk Cambridge City Hall Re: Additional Documents Re My Proposed Amendments from July 30, 2019 Dear Ms. Crane: In order to advance the Cannabis Business Permitting discussion scheduled to be continued in the Ordinance Hearing on August 14, 2019, I am submitting a document that summarizes (and hopefully clarifies) the amendments I proposed at the July 30, 2019 Ordinance Committee hearing. In addition to this document, I am submitting three attestations from local RMD business and a sample budget of a typical dispensary that I hope will provide context for when the Ordinance Committee discusses the funds necessary to establish such a dispensary. Please include these documents as part of the record for consideration and discussion at this hearing. Thank you for your attention to this matter. Sincerely, City Councilor E. Denise Simmons CITY HALL, CAMBRIDGE, MASSACHUSETTS 02139 [phone removed] FAX: [phone removed] EMAIL: dsimmons@cambridgema.gov TTY/TDD: [phone removed]

Simmons Compromise Amendment Benefits Economic Empowerment (EE) Applicants who are Invested in Cambridge All state-certified Economic Empowerment Applicants who have invested in carrying costs for real estate located in Cambridge and are currently petitioning the Planning Board for special permits have endorsed this compromise. NO Existing RMD Can Open for Adult-Use Sales Until After January 2020 Keeps effective moratorium in place a full year beyond the Attorney General's municipal ruling. 2 EE Grants Quickly Distributed over 18 months to Cover Start-up Costs • Each existing RMD that seeks conversion shall deposit no less than $1M over 18 months, 3 starting January 1, 2020 into a designated EE fund administered by a selected, existing Cambridge non-profit for unrestricted grants supporting Cambridge state-certified EE start-up costs, including rent, build-out, legal and professional fees, and more • All grants awarded shall not be repaid, carry interest or offer equity terms • City Manager shall ensure selection process for existing Cambridge nonprofit is launched within 45 days of Ordination, ensuring critical start-up dollars are expedited for release to eligible EE applicants. Funding Maintained in Perpetuity via Economic Empowerment Fund Earmarks 20% of Cambridge's discretionary local sales (3%) tax as defined in Chapter 55 of the 4 Acts of 2017, An Act to Ensure Safe Access to Marijuana Section 13 (a) estimated at $1M annually once cambriage's market is full-scale-to fund the Cambridge Economic Empowerment Accelerator & Incubator Fund to support additional unrestricted grants through an incubator program for qualifying EE Applicants. Requires RMDs to Provide Training & Skills Development for EE Applicants • RMDs required to offer training and skills development to EE Applicants, including 1-on-1 5 consulting to assist with startup logistics, strategies and best practices • RMDs volunteer to share SOPs (valued at $25-$50K each) • RMDs volunteer to share vendors and advantageous deal structures for security, transportation, logistics, and other high-cost areas of retail. Expedites Host Community Agreements & Special Permits for All Priority Applicants Requires City to make good faith efforts to ensure all eligible Priority Applicants have Host Community Agreements within 45 Days following Ordination and Special Permits within 90 Days following Ordination.

RMDs Have Signed Attestations to Continue Medical Use of Marijuana Programs All existing Cambridge RMDs have signed individual attestations under the pain and penalties of perjury to maintain critical patient access to medical marijuana, including sufficient patient supply and variety based on actual, documented patient needs.

AFFIRMATION 1, Leise Rosman, President of Healthy Pharms, Inc., acknowledge, understand, and affirm that the following information is accurate upon my knowledge, information and belief: 1. Healthy Pharms, Inc., hereby re-affirms and under the pains and penalties of perjury commits that all marijuana establishments owned and controlled by Healthy Pharms, Inc., located within the City of Cambridge, Massachusetts shall maintain qualifying patient access to medical-use of marijuana subject to all standards and terms pursuant to Chapter 55 of the Acts of 2017. 2. Healthy Pharms, Inc., hereby voluntarily agrees to enter into a Host Community Agreement with the City of Cambridge, Massachusetts for the purposes of operating a marijuana establishments) which shall include, but not be limited to the commitments detailed within Paragaph 1. 3. Purusant to 935 CMR 500.140(10) and 935 CMR 502.140(9), Healthy Pharms, Inc., shall ensure access to a sufficient quantity and variety of marijuana and marijuana products, including the actual types and strains of marijuana products documented as being purchased by qualifying patients who are registered pursuant to 935 CMR 501.000, Medical Use of Marijuana. Signed under the pains and penalties of perjury on this 22d day of July, 2019. Leise Rosman, President Healthy Pharms, Inc. NOTARY State of_ Michigen County of Allegen On the 22 day of uly theyear 2019, before me, the undersigned notary public, personally appeared Leise Kosre, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their capacity and that by his/her/their signature on the instrument. JANNETTE STRYKER NOTARY PUBLIC, ALLEGAN COUNTY, MI My Commission Expires 12/10/2023 Acting in the County of_

AFFIRMATION I, Louis Karger, Treasurer of the SIRA Naturals, Inc. Board of Directors, acknowledge, understand, and affirm that the following information is accurate upon my knowledge, information and belief: 1. SIRA Naturals, Inc., hereby re-affirms and under the pains and penalties of perjury commits that all marijuana establishments owned and controlled by SIRA Naturals, Inc., located within the City of Cambridge, Massachusetts shall maintain qualifying patient access to medical-use of marijuana subject to all standards and terms pursuant to Chapter 55 of the Acts of 2017. 2. SIRA Naturals, Inc., hereby voluntarily agrees to enter into a Host Community Agreement with the City of Cambridge, Massachusetts for the purposes of operating a marijuana establishments) which shall include, but not be limited to the commitments detailed within Paragaph 1. 3. Purusant to 935 CMR 500.140(10) and 935 CMR 502.140(9), SIRA Naturals, Inc., Shall ensure access to a sufficient quantity and variety of marijuana and marijuana products, including the actual types and strains of marijuana products documented as being purchased by qualifying patients who are registered pursuant to 935 CMR 501.000, Medical Use of Marijuana. Signed under the pains and penalties of perjury on this 22 day of July, 2019. SUZANNE M. GOZDIFF Notary Publie COMMONWEALTH OF MASSACHUSETTS My Commission Expires February 17, 2023 Louis Karger, Treasurer suzannes, bundeft Board of Directors

AFFIRMATION 1. Keith Cooper. Chiel Executive Officer of Revolutionary Clinies I. Ine. acknowledge. understand, and affirm that the following information is accurate upon my knowledge. information and belief: 1. Revolutionary Clinies I, Inc. hereby re-affirms and under the pains and penalties of perjury commits that all marijuana establishments owned and controlled by Kevolutionary Climes HeIne. located within the City of Cambridge, Massachusetts shall maintain qualifying patient necess to medical-use of marijuana subject to all standards and terms pursuant to Chapter S5 of the Acts of 2017. 2. Revolutionary Clinics I. Inc. hereby voluntarily agrees to enter into a Host Community Agreement with the C'ily of C'ambridge. Massachusetts for the purposes of operating a marijuana establishments) which shall include. but not be limited to the commitments detailed within Paragaph 1. 3. Purusant to 935 (MR 500140(10) and 935 (MR 502.140(9), Revolutionary Clinies II. Ine. shall ensure access to a sufficient quantity and variety of marijuana and marijuana produets, including the actual types and strains of marijuana produets documented as being purchased by qualifying patiens who are registered pursuant to 935 C'MR 501.000. Medical Use of Marijuana. Signed under the pains and penalties of'perjury on this 22m4 day of July: 2019. Keith Cooper Revolutionary Clinies I. Inc. 1/22/14 Gotten 4. HeaD Dariene A. Quartes Notary Public Commonwealth of Massachusetts My Commiesion Expires 10/31/2025

8/13/2019 Notes Included in general conditions Included included August 11, 2019 Includes window film General Contractor 7,595.00 1,500.00 9,495.00 5,000.00 5,697.00 6,400.00 12,600.00 45,000.00 15,000.00 25,000.00 11,490.00 65,850.00 27,462.00 30,454.00 18,700.00 16,914.00 68,350.00 91,263.60 12,118.00 32,842.00 33,600.00 98,400.00 13,000.00 45,957.00 30,000.00 608,424.00 20,000.00 25,000.00 562,467.00 135,000.00 909,687.60 Total Cost EA Date prepared: Concrete and Masonry Infill Work Miscellaneous Metals - Insulation/Intumescent/EIFS Contingency of 15% x construction costs Surface Protection, Barricade, Janitorial Specialty Construction- Roofing - Signage -Specialties - Millwork/Cabinets - Includes POS and breakroom cabinetry and installation Fee (overhead & profit) Blueprint Allowance Door Frames & Hardware Plumbing Systems Subtotal Subtotal Subtotal Permits Insurance Flooring Painting Preconstruction Services General Conditions Security Systems Demolition - fencing and reseeding Taxes Bonds Fire Alarm Description Electrical Systems Caulking & Sealants Glass & Glazing Metal Studs & Drywall Rent while building and licensing (9 months at $15k/month) Legal fees for licensing and permiting Carpentry, Supports, Blocking, Backing Architect fees POS Equipment Other Acoustical Ceilings Mechanical Systems/HVAC Telecommunications & Data Systems [Furniture General Contractor: General Construction Bid Summary Project Name: Tyles copestart 20 an opening costs, excludes inventory costs

C ATTACHMENTC CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor To: Paula Crane, Interim City Clerk From: Quinton Y. Zondervan and Sumbul Siddiqui, City Councillors Date: August 14, 2019 Subject: Memorandum Submission We have attached amendments to the amendments Councillor Simmons submitted for the July 30, 2019 Special Meeting. In addition to these amendments, we have also attached a cannabis retail start-up pro forma developed by a business professor at Northeastern who works with Economic Empowerment applicants in the region. Please include these documents as part of the record for consideration and discussion at this hearing. Thank you. Sincerely, City Councillor Sumbul Siddiqui City Councillor Quinton Zondervan

ECONOMIC EMPOWERMENT STARTUP COSTS LICENSE ACQUISITION: Legal Fees, est. $/month 10,000 Estimated Costs During Licensing 180,000 Number of Months, est. Estimated Lease Retention Costs 135,000 18 Estimated Costs During Licensing 60,000 Estimated Lease Paid During Buildout - 180,000 Estimated Buildout Cost 625,000 LEASE RETENTION COSTS: Estimated Cost of Employee Training 60,000 Lease Retention, est. $/month 7,500 Estimated Cost of Flower Inventory 1,350,000 18 Number of Months, est. Total Capital Required per License 2,410,000 Estimated Lease Retention Costs 135,000 Capital Available Through Equity Fund 500,000 250,000 BUILDOUT PHASE Capital Available Through Loans 8 Est. Number of Buildout Months Capital Available Through Own Means and F8 250,000 7,500 Lease Paid During Buildout Total Capital Available 1,000,000 60,000 Estimated Lease Paid During Buildout Capital Used in Startup Excl. Inventory -60,000 Est. Square Footage of Retail Store 2,500 Est. Buildout Cost, $/s.f. 250 625,000 Estimated Buildout Cost PRE-OPEN EXPENDITURES Staff Training 10 Number of Employees 2 Number of Months of Training & Dry Runs Est. Costs per Month per Employee 6,000 Estimated Cost of Employee Training 60,000 Inventory Months of Inventory Required 3 150 Est. Volume of Flower Required, Lb/Month Wholesale Cost of Flower 3,000 1,350,000 Estimated Cost of Flower Inventory TOTAL CAPITAL REQUIREMENT 2,410,000

AMENDMENTS TO THE COUNCILLOR SIMMONS COMPROMISE SUBMITTED JULY 30, 2019 CITY OF CAMBRIDGE In the Year Two Thousand Nineteen AN ORDINANCE In amendment to the Municipal Code of the City of Cambridge Be it ordained by the City Council of the City of Cambridge as follows: That the Municipal Code of the City of Cambridge be amended in Title 5 entitled "Business Licenses and Regulations" by adding a new chapter 5.50 entitled "Cannabis Business Permitting" which reads as follows: Cannabis Business Permitting Chapter 5.50 5.50.010 Purpose This ordinance is intended to create a separate local permitting requirement for Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter (collectively "Cannabis Business") applicants to certify compliance with certain conditions in the public interest prior to being permitted to operate a Cannabis Business in the City. The City deems it to be in the public interest to give initial permitting preferences for Cannabis Businesses to Priority Applicants, as defined herein.

5.50.20. Definitions Cannabis Business. A Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter. Cannabis Cultivator. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Cultivator to cultivate, process and package cannabis or marijuana, and to transfer cannabis or marijuana to other cannabis or marijuana establishments, but not to consumers. A craft marijuana cooperative as defined by state regulation is a type of Cannabis Cultivator. Cannabis Product Manufacturer. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Product Manufacturer to obtain, manufacture, process and package cannabis or marijuana products and to transfer these products to other cannabis or marijuana establishments, but not to consumers. Cannabis Retail Store. An establishment authorized to sell or otherwise transfer cannabis or marijuana products to consumers for use off the premises, but not to cultivate, manufacture, process, or package cannabis or marijuana products, in accordance with applicable state laws and regulations. A Cannabis Retail Store may be licensed to operate as a Cannabis or Marijuana Retailer or registered as a Medical Marijuana Treatment Center, also known as a Registered Marijuana Dispensary (hereafter "RMD"), or both, in accordance with applicable state laws and regulations. Cannabis Transporter. An entity, not otherwise licensed by the Cannabis Control Commission, that is licensed to purchase, obtain, and possess cannabis or marijuana, or cannabis or marijuana products, solely for the purpose of transporting, temporarily storing, selling and distributing them to cannabis establishments, not for selling to consumers. Local Sales Taxes. Taxes imposed by the City upon the sale or transfer of marijuana or marijuana products by a Cannabis Retail Store pursuant to Section 3 of M.G.L. Chapter 64N.

Priority Applicant. A person, corporation, or other legal entity applying for a Cannabis Business permit pursuant to this Chapter to operate in the City who is: a. Group A Priority Applicant. An Economic Empowerment Applicant certified as such by the Commonwealth's Cannabis Control Commission; or a Social Equity Program Applicant certified as such by the Commonwealth's Cannabis Control Commission who is also a Cambridge resident and has been for at least the previous three years; or a Women or Minority Owned business as certified by the Commonwealth and/or by the City; or a Cambridge resident for at least the three previous years prior to application earning less than fifty percent (50%) of Area Median Income (AMI) in the three previous tax years prior to application -- to be known as Group A Priority Applicants. b. Group B Priority Applicant. An RMDA Medical Marijuana Treatment Center within the City that was licensed or registered by the Massachusetts Department of Public Health not later than July 1, 2017 to sell cannabis products in a Cannabis Retail Store pursuant to the Commonwealth's medical use of marijuana laws, which seeks to operate as a Colocated Marijuana Operation licensed marijuana retailer pursuant to 935 CMR 502.000: Colocated Adult-Use and Medical-Use Marijuana Operationsthe Commonwealth's adult use of marijuana laws - to be known as Group B Priority Applicants. Those who qualify as Group B Priority Applicants cannot also qualify as a Group A Priority Applicant. 5.50.030 Applicability This Chapter shall apply to any proposed Cannabis Cultivator, Cannabis Product Manufacturer, Cannabis Retail Store, or Cannabis Transporter that is seeking licensure from the Cannabis Control Commission on or after the effective date of this Chapter. This Chapter shall not apply to RMDs that have already been permitted in the City and are not seeking licensure as a Cannabis Retail Store for retail cannabis sales prior to the effective date of this ordinance ('Existing RMD").

5.50.040 Permitting Preferences for Priority Applicants The City shall issue a Cannabis Business Permit pursuant to this Chapter only to Priority Applicants (a) for the first two years after the Effective Date of this Chapter as stated in section 5.50.100 below, or (b) if the applicant is an RMD that has been granted a Special Permit from the City of Cambridge before July 1, 2019 and is seeking licensure. The City shall issue a Cannabis Business Permit to operate a Cannabis Retail Store only to Group A Priority Applicants who are Economic Empowerment Applicants certified as such by the Commonwealth's Cannabis Control Commission and Group B Priority Applicants who are contributing to the Cambridge Cannabis Accelerator and Incubator Fund as described in section 5.50.045 below. The City shall make all reasonable efforts to expedite all local municipal requirements pursuant to 5.50.050(a)(10.) below within 45 days following ordination of this Chapter for all eligible Priority Applicants for the City's execution of Host Community Agreements and within 90 days following ordination of this Chapter for all eligible Priority Applicants for issuance of special permit. No Cannabis Retail Store shall open to adult-use retail sales prior to January 1, 2020. At all times the City shall ensure there are an equal or greater number of licensed Economic Empowerment applicants operating a Cannabis Retail Store as compared to licensed Group B applicants operating a Cannabis Retail Store, in Cambridge. 5.50.045 RMD Economic Empowerment Accelerator Deposit a. Each Group B Priority Applicant seeking to convert from a Medical Marijuana Treatment Center to a Colocated Marijuana Operation shall i) make a deposit of $5 million into the Cambridge Cannabis Accelerator and Incubator Fund for the purpose of providing grants to support qualifying Economic Empowerment applicants certified pursuant to section 5.50.060 below. The structure for the deposit shall be as follows: a. $2M as an initial deposit at application time b. $2M upon the Colocated Marjiana Operation opening date c. $1M after first year in operation and ii) coordinate with Each Group B Priority Applicant shall collaboratively establish and fund a management and operations training program available for all Group A Priority Applicants certified pursuant to section 5.50.060 below. Each Group B Priority Applicant shall make an initial deposit no later than January 1, 2020; however, such The first deposit payment shall only be made following issuance and

execution of all local municipal requirements pursuant to 5.50.050(a)(10.) below. Final deposit shall be made twelve months following initial deposit by each Group B Priority Applicant. b. The first five Group A Priority Applicants who are Economic Empowerment Applicants shall receive the funds as follows: 1. $1M upon signing community host agreement with the City Manager 2. $1M upon receiving a state license from the Cannabis Control Commission $500K after 6 months of successful operation c. Each Group B Priority group shall deposit 1% of gross revenue every year after the initial 5 million deposit. Each Group A Priority Applicants who are Economic Empowerment Applicants shall contribute 1% gross revenue every year after the first year in operation. d. The City shall deposit twenty (20) percent of all Local Sales Taxes into the Cambridge Cannabis Accelerator and Incubator Fund. 5.50.050 Permitting Requirements a. In order to obtain a Cannabis Business permit pursuant to this Chapter, an applicant must certify that: 1. It will comply with employee pay standards set out in the City's Living Wage Ordinance; 2. It will hire at least 51% of minority, women and/or veterans as employees; 3. If applicant has a Board of Directors, the board makeup will be at least 51% minority, women and/or veterans; 4. It consents to unannounced, periodic compliance inspections by City officials of its Cannabis Business, including any Cannabis Business activities it conducts off-site;

5. It will comply with all State and local laws and regulations regarding its Cannabis Business operations; 6. No person under the minimum legal sales age shall be permitted to enter the Cannabis Business site unless such person possesses a state-issued registration card demonstrating that the person is a registered qualifying medical marijuana (cannabis) patient pursuant to 935 CMR 501.000 and the Cannabis Business site is, or is co-located with, an RMD; 7. It will work with the Cambridge Public Health Department to create and distribute educational materials to its customers as directed by the Cambridge Public Health Department; 8. It will sell only cannabis and cannabis accessories, and not other products, including tobacco products or alcoholic beverages of any kind; 9. It will comply with directives of the Police Commissioner and of the Director of Traffic Parking and Transportation, or their designees, regarding traffic measures to be taken at and near the Cannabis Business site; 10. It has received a special permit from the Planning Board for its Cannabis Business and has entered into a Host Community Agreement with the City through the City Manager's Office; and 11. It is a business in good standing with no outstanding federal, state or local investigations or judgments pending against it. b. No discretionary permit conditions may be imposed by the permit issuing authority pursuant to this Chapter. c. A Cannabis Business permit shall be valid only for the applicant to which the Cannabis Business permit was issued, and only for the use and for the site approved in the permit. A proposed change of controlling or ownership, change of use, or

change of site shall require a new Cannabis Business Permit. As part of the Cannabis Business permit application process, the City shall require the applicant to disclose all individuals and legal entities who have a beneficial interest in the applicant's business as required pursuant to standards for change in ownership or control issued by the Massachusetts Cannabis Control Commission. 5.50.060 Permitting Procedure This Chapter shall be administered by the City's Inspectional Services Department, except that Priority Applicant status shall be certified by the Director of the Economic Development Division of the Community Development Department. Applications for Cannabis Business permits shall be obtained from and submitted to the Inspectional Services Department. If permit applications are properly completed and certified, and the conditions of this Chapter are met, the Commissioner of Inspectional Services (the "Commissioner") shall issue a Cannabis Business Permit to the applicant. No public hearing process on individual applications shall be conducted. A Host Community Agreement shall be negotiated with the City Manager. 5.50.070 Permit Expiration and Renewal The Cannabis Business Permit issued pursuant to this Chapter shall be subject to renewal annually. If the applicant fails to timely renew or fails to meet the requirements of this Chapter at the time of each renewal, including the Permitting Requirements in section 5.50.050 above, the Cannabis Business Permit issued hereunder shall expire. A Cannabis Business Permit will not be renewed if the permit holder has failed to pay all fines issued pursuant to this Chapter. 5.50.080 Enforcement a. Failure to comply with this Chapter, including a failure to maintain the status of a Priority Applicant, failure to obtain or to comply with the provisions of a Planning Board special permit or State license to operate a Cannabis Business, or failure to comply with any applicable laws, may result in revocation by the City, through the Commissioner, of the Cannabis Business

Permit granted pursuant to this Chapter. Failure to meet the annual Cannabis Business Permit renewal requirements will result in the expiration of the Cannabis Business Permit. If a permit holder's State license is revoked, then the Cannabis Business Permit issued by the City shall be revoked. A Cannabis Business Permit may be revoked or not renewed if the permit holder has sold a cannabis product to a person under the minimum legal sales age three times or more, or if the permit holder has failed to pay to the City all outstanding fines issued pursuant to this Chapter. b. An applicant must cease to operate if it does not hold and maintain a valid Cannabis Business Permit pursuant to this Chapter. Prior to revoking a Cannabis Business Permit issued hereunder, the Commissioner will notify the Cannabis Business Permit holder in writing and allow the Cannabis Business Permit holder at least fourteen (14) days to submit written information to the Commissioner establishing that the Cannabis Business Permit holder is in compliance with the terms of this Chapter. The Commissioner shall make a final determination on the Cannabis Business Permit expiration or revocation thereafter. If a permit holder requests, the Commissioner in his discretion may hold a hearing before deciding whether to revoke a Cannabis Business Permit. c. Any violation of this Chapter by a permit holder shall be subject to a fine of up to$300 for each violation. Each day a violation exists shall constitute a separate violation. d. Fines pursuant to this Chapter may be issued pursuant to the non- criminal ticketing procedure in G.L.c.40, §21D. The Commissioner of Inspectional Services, the Police Commissioner, and the Commissioner of Public Health, or their designees shall be the enforcement officials for this Chapter. 5.50.090 Regulations The Commissioner of Inspectional Services, as well as the Assistant City Manager for Community Development, with the approval of the City Manager, are authorized to promulgate regulations and to create the necessary application and permit forms, to implement this Chapter with respect to their respective responsibilities pursuant to this Chapter. Regulatory requirements implementing this ordinance may differ for Priority

Applicants and non-Priority applicants, such that the regulatory burden for Priority Applicants is less burdensome. 5.50.095 Cambridge Cannabis Accelerator and Incubator Fund a. No later than 45 days following ordination of this Chapter, the Assistant City Manager for Community Development shall issue a procurement for the City to engage a nonprofit located within the City to establish and administer a Cambridge Cannabis Accelerator and Incubator Fund. The purpose of the fund shall be to 1) provide no-interest start-up capitalization grants to support qualifying Economic Empowerment applicants certified pursuant to section 5.50.060 above, and 2) establish an incubator program for Group A Priority Applicants. The Assistant City Manager shall select such nonprotit by no later than November 1, 2019. b. The Fund shall be administered by the selected nonprofit. There shall be a Cambridge Economic Empowerment Accelerator Fund Advisory Board whịch shall support and advise the nonprofit in its administration of the fund. The advisory board shall be made up of the Assistant City Manager for Community Development or designee, who shall serve as chair, as well as-four City residents with experience in community and economic development or small business development to be appointed by the City Manager, and members of all Group B and Group A priority contributors/recipients. c. The remaining funds in the Cambridge Economic Empowerment Accelerator Fund after disbursement to the first Group A priority Economic Empowerment Applicants and future funds consisting of gross revenues shall be used to establish a program to offer future equity applicants services, which may include: 1. Technical assistance with business operations, including the development of business plans 2. Assistance recruiting employees 3. Guidance and assistance through the application process 4. Assistance with legal compliance 5. Accounting and tax preparedness assistance 6. Best practices for operating in the marijuana industry

7. Assistance with store security 8. Assistance identifying and raising funds and capital and identifying vendors 5.50.100 Effective Date This Chapter shall take effect on , 2019. 5.50.110 Severability The provisions of this Chapter are severable, and if any part of this Chapter should be held invalid by a court of competent jurisdiction, such invalidity shall not affect the remainder of the Chapter, and the remainder of the Chapter shall remain in full force and effect.

ATTACHMENTD Assistant Ciry Solicitors Nancy E. Glowa Paul S. Kawai City Solicitor Keplin K. U. Allwaters Sean M. McKendry Arthur J. Goldberg Deputy Ciry Solicitor Megan B. Bayer Brian A. Schwartz Katherine Sarmini Hoffman Samuel A. Aylesword 'irst Assistant City Solicito Public Records Access Officer Seah Levy CITY OF CAMBRIDGE Office of the City Solicitor 795 Massachusetts Avenue Cambridge, Massachusetts 02139 August 14, 2019 Louis A. DePasquale City Manager City Hall Cambridge, MA 02139 Re: Legal Opinion in response to June 27, 2019 Ordinance Committee Re: Questions Relating to the Cannabis Permitting Ordinance the City Council Adopted at its July 30, 2019 Meeting Dear Mr. DePasquale: At the June 27, 2019 Ordinance Committee meeting, the draft cannabis permitting ordinance was discussed. The Committee Report containing questions raised by Councilors at the meeting was adopted by the City Council at the Council meeting of July 30, 2019. The questions are stated below, followed by responses. 1) May the City Council set host community agreement criteria? (from p.4 of the Committee Report). Yes, the City Council may set general Host Community Agreement criteria by Ordinance, within a framework that allows the City Manager leeway to agree to terms with individual applicants that may be unique to each applicant in order to negotiate a mutually acceptable agreement. For the Council's information, attached hereto is a preliminary draft Host Community Agreement that will be finalized for use by the City Manager after the City Council has enacted the Cannabis Business 2) How does the City Manager decide when there are 3 applicants for one neighborhood and establish criteria for areas missing in zoning and missing in permitting (from p.4 of the Committee Report). If a situation arises in which the City Manager is presented with three requests for Host Community Agreements from applicants with proposed locations that could Telephone [phone removed] Facsimile [phone removed] TTYTTD [phone removed]

2 comply with zoning and other local requirements, but which are near to each other, I believe that the City Manager could exercise his diseretion and choose not to execute a Host Community Agreement with one or more of those applicants, effectively denying certain applicants the ability to move forward, where the City Manager believes that it would be in the best interests of the City to execute a Host Community Agreements) with one or more other applicants. See Mederi, Inc. v. City of Salem, et al., Essex Superior Ct. C.A.#2018-01878, in which Judge Timothy Feeley ruled in January 2019 for the City of Salem, denying an injunction to Mederi, Inc. after Salem refused to enter into a Host Community Agreement with Mederi, Inc. Judge Feeley found that, "A municipality is not specifically required under (G.L.c.94G) Section 3(d) to execute a HCA (Host Community Agreement) with any applicant;" (at p.21) and that "There has to be a process to distinguish among an excessive number of otherwise qualified applicants for a limited number of RME (retail marijuana establishment] licenses...", and that it was acceptable for the City of Salem to be the entity that makes those distinetions, as opposed to the Cannabis Control Commission (at p.19). This was so even where Mederi had already been granted a special permit by the Salem Zoning Board of Appeals. It is important to note that while Judge Feeley's cited ruling in the Mederi case was not a final judgment in the case and is not a binding precedent on any other judge, this case does support the proposition that the City Manager could exercise his discretion in this circumstance, and there does not appear to be any case law that would prohibit the City Manager from exercising his discretion in this circumstance. 3) If the City Council sets criteria to help guide the City Manager in negotiations for the host community agreements, where would these be placed. (from p.5 of the Committee Report) Such criteria should be provided in the Cannabis Business Permitting Ordinance. 4) The City Manager was requested to instruct the City Solicitor to provide a legal opinion to the City Council about the legality of providing funding to non-profits related to the cannabis establishments and how this funding can be used for economic empowerment entrepreneurs. A proposal to the Ordinance Committee was submitted on June 27, 2019 to require existing Registered Marijuana Dispensaries ("RMDs") to pay $250,000 annually for 4 years into a fund for the benefit of Economic Empowerment applicants in order for those RMDs to qualify to obtain a cannabis business permit from the City. An amended proposal was submitted to the full City Council on July 30, 2019 to require two payments by existing RMDs of not less than $500,000 within a twelve-month period after they have received all local permits to operate. Both of these proposals raise significant legal concerns as set forth below. The City has authority generally to impose fees, but such fees must be proportionate to the costs incurred by the City in providing the services for which the fee is 2

3 imposed. See generally, Emerson College v. City of Boston, 391 Mass. 415 (1984). Relating to cannabis, the governing statutes allow a 3% local tax and a 3% community impact fee on cannabis retail establishments, but do not expressly authorize a local requirement of more payments to be made in order to operate within a municipality. The statutes cap the community impact fee that municipalities may impose at 3%. Requiring by ordinance a substantial payment by licensed RMDs of $250,000 or more to be paid into a fund for Economic Empowerment applicants would likely be considered an impermissible tax if the fees are in excess of the City's reasonable costs in issuing a cannabis business permit. Cities do not have independent legal authority to impose taxes. That limitation is stated expressly in the Massachusetts Constitution's Home Rule Amendment, Amend.Art.2, 87. In addition, in a recent phone call, an attorney at the Department of Revenue's Division of Local Services opined informally that it is possible that the State has preempted local action on the imposition of fees on cannabis establishments by setting the 3% cap, in which case the City would not be permitted to require additional payments that would exceed the 3% cap. Some municipalities have required in Host Community Agreements that cannabis businesses make payments beyond the 3% local tax and 3% community impact fee, apparently taking the position that the statutory language does not expressly say that such payments are not permitted, and that municipalities have the authority to enter into contracts on such terms as the municipalities and the cannabis businesses may agree. To date, although I am not aware of any court ruling that has struck down these provisions, the Boston Globe reported on July 28, 2019 (at p.B1) that Massachusetts lawmakers are set to consider new limits on the ability of municipalities to demand fees from cannabis companies, following widespread complaints by businesses, activists, and state regulators that many local officials are demanding such fees. The Cannabis Control Commission has submitted a lengthy report to the Legislature outlining many of the concerns that it has and that have been expressed to it on this issue. See Report on Host Community Agreements and Marijuana Establishments, March 2019. It is unclear what, if any, action the Legislature will take on this issue and how such action might affect existing agreements. An additional complication is that the DOR's Division of Local Services has opined that a financial exaction required by a municipality for a cannabis business permit would be considered general fund revenue to the municipality, which could only be spent for a public purpose after appropriation. See DLS Local Finance Opinion LFO-2018-3. If the City were to require such payments by the Cannabis Business Permitting Ordinance, the proposed use of these general funds to assist private parties such as Economic Empowerment applicants would likely be found not to be a permitted public purpose for which general funds could be appropriated, as that would violate the State Constitution's Anti-Aid Amendment (Amend. Art. XVIII). 3

4 One approach that would be permissible is for the City to provide the impact fees to non-profit charitable corporations through grant agreements for services that the City would not otherwise be providing, as the City has done in other cireumstances. Another approach that could be considered is that a proposed fund for Economic Empowerment applicants could be created and/or donated to voluntarily by the RVDs without any City requirement that they do so. In the recent phone call, the DLS attorney stated informally that if the City were not involved in the process, such an independent fund supported by voluntary donations might be permissible. The Law Department and other City staff will continue to explore ways in which the City may permissibly take steps to achieve the City Council's goals in this regard. 5) The City Manager was requested to instruct the City Solicitor to provide information on whether a provision could be included in the host community agreement about requiring RMDs to provide medical cannabis after converting to adult use. Information was also requested about whether requirements regarding the disclosure of beneficial interest in an applicant's business need to be part of the ordinance or could be accomplished by administrative regulations. The Cannabis Control Commission has stated in its Guidance documents that a municipality may not prevent the conversion of a permitted existing RMD to a retail-only establishment. The Cannabis Control Commission's "Guidance for Municipalities" at p.10 states that its interpretation of the applicable statutory language is that it prohibits municipalities from preventing conversion of permitted existing RVIDS to an entirely different form of a marijuana establishment, such as one for retail use only. Therefore, it appears that the City may not require the continuation of permitted existing RMD operations through a Host Community Agreement in order for the permitted existing RMD to be allowed to convert to retail sales for adult use. The Ordinance could require the disclosure of the beneficial interests in the applicant's business and authorize the City Manager to issue regulations relative to the specific disclosure requirements. An official at the Cannabis Control Commission informally advised the Law Department that local requirements on beneficial interest disclosure would not conflict with the Cannabis Control Commission's own regulations requiring similar ownership disclosures. 6) The City Manager was requested to instruct the City Solicitor to consider the proposed amendments included in the memorandum submitted by Councilors Siddiqui and Zondervan at the June 24, 2019 City Council meeting as a Communication and Report from Other City Officers and to incorporate the amendments on page 4 relating to the City Manager not issuing a license to an applicant if any third party has more than 50% controlling interest in annabis retail establishment, shelf space, loans or other financial interest in a cannabis establishment; and the creation of an online Cannabis license registry either as regulations and/or ordinance or Policy Orders. 4

5 We understand these requests to refer to a memorandum dated June 20, 2019 from Councilors Zondervan and Siddiqui (copy attached) on page 4 of which are included "Proposed Regulations" and "Other Proposed Provisions." The "Proposed Regulations" include provisions that would prohibit any entity with a controlling interest in an applicant from holding more than one controlling interest in any cannabis retail establishment in Cambridge, and provisions that authorize the City Manager to impose restrictions to limit the amount of control that any one party has over cannabis retail establishments in Cambridge. Generally, when the Council is creating new legal requirements, it acts by legislating, that is, by enacting new ordinances. Regulations in the technical sense are promulgated by executive branch officials or boards in furtherance of, and must always be consistent with, the provisions of enacted legislation. Therefore, the Council should put any such provisions it wants to codify into the Ordinance itself. In my opinion, the two "proposed regulations" could be added to the Ordinance, but the language should be clarified as to whether the intent is that the City Manager should accomplish the objectives stated by way of Host Community Agreements, or whether the objectives are intended to be accomplished as business permit requirements. Also, as to the first Proposed Regulation, there are legal concerns raised to the extent that that provision would prohibit existing permitted RDs currently controlled by the same entity from converting to adult use retail establishments where such conversion rights are protected by state law. The "Other Proposed Provisions" proposes that the Community Development Department publish an on-line registry of all currently licensed cannabis establishments with the owner(s)' names and other information. Such a proposed registry would not need to be included in the Ordinance but rather could be developed by the City Manager with the assistance of the Assistant City Manager for Community Development. Very truly yours, City Solicitor Enclosures 5

HOST COMMUNITY AGREEMENT This HOST COMMUNITY AGREEMENT (the "Agreement") is made as of the _ _ 2019 (the "Effective Date") by and between the CITY OF CAMBRIDGE (hereinafter referred to as the "Host Community" or "City"'), a municipal corporation existing within the Commonwealth of Massachusetts with an address of City Hall, 795 Massachusetts Avenue, Cambridge, Massachusetts (hereinafter referred to as the "Applicant") a 02139, and Massachusetts corporation with a usual place of business located at - The City and the Applicant shall be collectively known herein as the "Parties". BACKGROUND WHEREAS, on July 28, 2017, An Act To Ensure Safe Acces To Marjuana (the "Af") was signed into law by the Governor of the Commonwealth of Massachusetts; and, WHEREAS, certain provisions of the Act require that an applicant for a license to operate a Marijuana Establishment (as defined in the Act) enter into a host community agreement with the municipality in which such applicant seeks to operate (M.G.L. Ch. 94G, §3(d)); and WHEREAS, Applicant seeks to operate suchra Marijuana Establishment in the City, being a retail store, at the location of (the "Premises"); and, any actual adve se community impacts and to mitigate WHEREAS, the City and the Applicant desire to protect the security and health of the people of Cambridge, and WHEREAS, the City and the Applicant desire to enter Into this Agreement to state the terms the Applicant must meet in order for the City to agree to be the Host Community for Applicant's Marijuana Establishment, and WHERE S, it is the intention of the Parties that each be bound by the provisions of this Agreement and that this eement be fully enforceable in accordance with its terms, NOW, THEREFORE, the Applicant and the City covenant and agree as follows: 1. Hiring. 2. Hiring of Cambridge Residents. When hiring workers for available positions at the Marijuana Establishment, the Applicant shall use best efforts to hire workers for those positions as follows: first, qualified residents of the City of Cambridge; and then, if workers cannot be obtained in sufficient numbers, positions may be open to other qualified workers. The Applicant's goal for hiring of Cambridge residents shall be 50% of its workers. In furtherance of this commitment the Applicant shall work in concert with local work-force organizations and programs in an effort to inform the community and to help identify Cambridge residents who have or can acquire the appropriate training, skills and work experience to work for the Applicant.

b. Hiring of minorities, women, military veterans, and individuals with a prior. marijuana-related conviction. Applicant shall also use best efforts to hire workers who are minorities, women, military veterans, as well as individuals who have a prior conviction solely for a marijuana-related offense unless the offense involved the listribution of a controlled substance, including marijuana, to a minor (and as may b allowed by the Cannabis Control Commission). Applicant shall document its effort and the results of its efforts to hire such workers to the City in such form as the City may reasonably request. 2. Public Education Requirements. Applicant shall work with the City to create and distribute to consumers public education materials regarding cannabis. The City must give final approval of such materials prior to their distribution. Applicant shall display and distribute such material to each of its customers at the point of sale. If requested by the City, Applicant agrees to work collaboratively with the City and provide staff to participate in a reasonable number of City- sponsored educational programs on public health and drug abuse prevention geared toward public health and public safety. Enforcement by City. The enforcement measures for the Applicant's breach of any material term of this Agreement include, but are not limited to the following: the City may report such breach to the state Cannabis Control Commission and/orto the Attorney General; the City may terminate this Agreement pursuant to paragraph 15 below; the City may revoke any permitgranted by the City to the Applicant in connection with its Marijuana. Establishment for breach of any term of such permit; the City may seek relief in arcourt of competent jurisdiction against the Applicant. 4. Restrictions on Consumption, Production, Manufacturing, Processing, Packaging, and Sales. All consumption, production, manufacturing, processing, packaging and re-packaging of cannabis flower product on site at the Premises is prohibited, At the Premises, Applicant may sell only cannabis and cannabis accessories, and not other products, including tobacco products or alcoholic beveragestof any kind 3. Community impact feethe City imposes on the Applicant a Community Impact Fee in the amount of three percent (3%) of Applicant's gross revenues derived from the Establishment's ales. The Parties agree that this fee is reasonably related to real costs imposed on the City due to the Applicant's Marijuana Establishment at the Premises operating in the City. Applicant agrees to make payments of this fee to the City Treasurer every six (6) months. Payments are due thirty (30) days after the end of a six-month period. The first payment will, therefore, be due seven (7) months afterthe opening date of the Marijuana Establishment, and a payment will be due every six months thereafter. If this Agreement terminates prior to its anticipated five (5) year term, the Applicant's final payment of this fee to the City shall be made within thirty (30) days following the date of termination. Payment of the Community Impact Fee shall not reduce Applicant's responsibility for other payments due to the City from the Applicant, such as water and sewer payments, real and personal property tax payments, sales tax payments, and other City fees associated with the permitting, construction, or licensing of the Premises. Applicant shall submit to the City annually financial statements, satisfactory to the City, certified by a Certified Public Accountant that shall at a minimum indicate the amount of the gross revenues from the Establishment's sales. 6. Compliance with Laws: Planning Board Special Permit Required. The Applicant shall comply with all State and local laws, codes, rules and regulations in connection with its Marijuana Establishment, including all City permitting and licensing laws. Such compliance shall include the Applicant obtaining a special permit from the Planning Board specifically related to its retail

sales of marijuana at the location that is the subject of this Agreement. 7. Hours of Operation. The Establishment's hours of operation must be approved by the Cambridge Police Commissioner, including any change in previously approved hours of operation. 8. Requests for Information. Applicant shall cooperate and comply with requests for information made by the City Council, the City Manager and City Departments, including the Police Department, Public Health Department, Inspectional Services Department, Fire Department, Traffic Department, Law Department, Finance Department and Community Development Department. 9. Consent to Inspections. Applicant consents to unannounced, unscheduled, periodic inspections of the Premises and of vehicles associated with the Premises by City officials for the City to determine compliance by the Applicant and its employees and agents with all State and local laws, codes, rules, regulations and requirements. 10. Traffic and Crowd Management. Applicant müst work with the City raffic Director and the Police Commissioner at their request to resolve any traffic and/or crowd management issues resulting from the operation of the Premises. Any costs related to traffic mitigation or crowd management measures required by the City, including a paidi police detail during some or all hours of operation, shall be borne, by the Applicant 11. List of Applicant's Officers. Applica ust provide the City with a regularly updated list of the names, phone numbers and email addresses ofits Manager/s of the Premises, as well as its Chief Died a any lane min. Executive Officer, Executive Director and any other individua Sinvolved in the oversight and business management of the Establishment's operat 12. Living Wage. The Applicant shall comply with the City'3 Living Wage Ordinance, Cambridge Municipal Code Chapter 2.121 and pay its omployees at least a Living Wage as defined under said Ordinance. d Personal Property Taxes tall times during the Term of this Covenant, the real 13. Re estate and personal property taxes for the property at which the Marijuana Establishment is operated will be paid either directly by the Applicant or by its landlord, and the Applicant Will not seek a non-profit or other tax exemption from paying such taxes. 14. Local Exoise: Taxes. Applicant shall pay the local excise tax on its retail transactions as may be required by law 15. Terms and Termination The Term of this Agreement shall commence upon the date that the Applicant opens the Marijuana Establishment in Cambridge and shall remain in effect until one of the following occurs: a.) the Cannabis Control Commission revokes the Applicant's license to operate a Marijuana Establishment, thereby requiring the Applicant to cease operation of the Marijuana Establishment; or, b.) the Applicant terminates this Agreement upon the permanent cessation of all Marijuana Establishment business at its location within the City of Cambridge, having given the City at least 90 days prior written notice of its plans to permanently cease operations; or,

c.) five (5) years has elapsed since the effective date of the Agreement, except that the Parties agree that if it appears that this Agreement will terminate by virtue of it having been in effect for the maximum term of five (5) years, then at least ninety (90) days prior to such termination the Parties may work in good faith to negotiate a successor agreement to this Agreement; or d.) the City determines that the Applicant has breached a material term of this Agreement or has failed to comply with any State or local law, code, rule, regulation or requirement, and has notified the Applicant in writing of its decision to terminate this Agreement based on such breach. It shall be considered a material breach of this Agreement if more than 10% of the ownership interest in the Applicant is transferred, sold, or otherwise conveyed to any person, corporation, trust or other legal entity after the execution of this Agreement by the Parties, without the prior written approval of the City. If this Agreement is terminated based on paragraphs (a); (b), or (d) above, then the Applicant shall immediately cease all of its operations at the Premises. 16. Assignment. The Applicant shall be prohibited at all times from assigning, in whole or in part, any portion of the Agreement without the prior r written consent of the City. 17. Relocation. Applicant may not relocate its Marijuana Establishment without first obtaining a new special permit from the Planning Board and obtaining all other approvals for any relocation required by law. This Agreement does not affect, limit, or control the 18. Other Permits, Licenses and Approvals. authority of City boards or departments to carry out their respective powers and duties to decide upon and to issue or deny applicable permits, licenses androther approvals under applicable laws, or to enforce applicable laws 19. Notice. Any notice hereunder shall be in writing and shall be deemed duly given if mailed by certified orregistered mail, postage and registra on charges prepaid, at the addresses set forth hel the City: Cambridge City Hall 95 Massachusetts Avenue Cambridge, MA 12039 Attention: City Manager Cambridge City Hall and to. 795 Massachusetts Avenue Cambridge, MA 12039 Attention: City Solicitor Applicant: 20. Entire Agreement. This agreement supersedes any and all other agreements, either oral or in writing, between the Parties hereto. This Agreement may not be changed verbally and may only be amended by an agreement in writing signed by both Parties.

21. No Rights in Third Parties. This Agreement is not intended to, nor shall it be construed to, create any rights in third parties. 22. Severability. If any portion of this Agreement shall be held by a court of competent jurisdiction to be contrary to law, that provision will be enforced to the maximum extent permissible and the remaining provisions shall remain in full force and effect. 23. Governing Law and Exclusive Venue. The Parties agree that this Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts, and that a court of competent jurisdiction in Middlesex County shall be the exclusive venue for any court proceedings that may arise from this Agreement. any governmental enforcement actions, or any private claims or actions, related to the Establishment's operations and shall pay for all reasonable fees and costs, including reasonable attorneys' fees and costs, resulting to the City therefrom. 25. Ownership. The Applicant shall not transfer, assign or pledge any interest in the Marijuana Establishment ("Transfer of Ownership") without the written consent of the City. Notwithstanding any such written consent by the City, any Transfer of Ownership shall also require such transferee to obtain a new special permit or any: other applicabl Ordinance. [REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]

IN WITNESS WHEREOF, Applicant and the City have executed this Agreement under seal as of the day and year first above written. CITY OF CAMBRIDGE: m Farooq Louis A. DePasquale, Cambridge City Manager ssistant City Manager for Community Development Approved as to Form: olicitor Nancy E. Glowa, City APPLICAN By: : Print name and title: Duly authorized

7.3.a CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 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. (COF 2019 #41 : Establishing the Equitable Regulation of the Cannabis Industry in the City of Attachment: COCO_Cannabis_6.24.2019 Packet Pg. 304

73.a CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 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 the Equitable Regulation of the Cannabis Industry in the City of 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: Packet. Pg: 306.

7.3a CAMBRIDGE CITY COUNCIL Quinton Zondervan Sumbul Siddiqui City Councillor City Councillor 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% AMl 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 the Equitable Regulation of the Cannabis Industry in the City of 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. 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: 3 Packet Pg 308

73a CAMBRIDGE CITY COUNCIL Sumbul Siddiqui Quinton Zondervan City Councillor City Councillor 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 n of the Cannabis Industry in the City of 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. Regulation Other Proposed Provisions: Equitable Cannabis License Registry The Community Development Department shall publish online a registry that lists all currently licensed cannabis establishments, the types) of licenses held by each establishment, the owners) names), and the physical addresses) of operation. The registry shall be accompanied by a map, showing the locations of all licensed establishments. I: Establishing Attachment: COCO_Cannabis_6.24.2019 PacketPg. 307

73.6 CITY OF BOSTON MARIJUANA ESTABLISHMENT BENEFICIAL INTEREST CONTACT - Individual Please complete a Beneficial Interest - Individual sheet for all individual(s) who have a direct or indirect beneficial interest, wit f or without ownership, in this license. This includes people with a financial interest and people without financial interest (i.e. board of directors for not-for-profit clubs). An individual with direct beneficial interest is defined as someone who has interest directly in the proposed licensee. For example, if ABC Inc is the proposed licensee, all individuals with interest in ABC Inc are considered to have direct beneficial interest in ABC Inc (the proposed licensee). An individual with indirect beneficial interest is defined as someone who has ownership in a parent level company of the proposed licensee. For example, if ABC Inc is the proposed licensee and is 100% owned by XYZ Inc, all individuals with interes lin XYZ Inc are considered to have an indirect beneficial interest in ABC Inc (the proposed licensee). Salutation suffix Middle Name First Name - Last Name Title: Date of Birth Social Security Number Email: Primary Phone: Fax Number Mobile Phone: Alternative Phone: Business Address Street Number: Street Name: State: City/Town: Zip Code: Country: Mailing Address • Check here if your Mailing Address is the same as your Business Address Street Name: Street Number: State: City/Town: Zip Code: Country: Types of Interest (select all that apply) • Landlord • Director LLLC Manager • Contractual officer [ LLC Member • Management Agreement •Other • Stockholder •Sole Proprietor • Revenue Sharing • Partner Citizenship/ Residency Information. Are you a U.S. Citizen? • Are you a Massachusetts Resident? Ores ONo ONO OYes Criminal History Attachment: Beneficial Interest Disclosure individual (COF 2019 #41 : Establishing the Equitable Regulation of the Cannabis Industry in Have you ever been convicted of a state, federal, or military crime? If yes, please provide an affidavit Ores ONo explaining the charges. Packet Po1308

73.6 CITY OF BOSTON MARIJUANA ESTABLISHMENT BENEFICIAL INTEREST CONTACT - Individual (continued) Ownership/Interest If you hold a direct beneficial interest in the proposed licensee, please list Using the definition above, do you hold a direct Direct OIndirect he % of interest vou hold or indirect interest in the proposed licensee? If you hold an indirect beneficial interest in this license, please complete the Ownership / Interest Table below. Ownership/Interest if you hold an indirect interest in the proposed licensee, please list the organizations) you hold a direct interest in which, in turn, hold a direct or indirect interest in the proposed licensee. These generally include parent companies, holding companie: trusts, etc. A Beneficial Interest - Organization Form will need to be completed for each entity listed below. FEIN Name of Beneficial Interest - Organization Other Beneficial Interest List any indirect or indirect beneficial or financial interest you have in any other City of Boston marijuana establishment. Premises Address Name of License Type of License Familial Beneficial Interest Does any member of your immediate family have ownership interest in any other City of Boston marijuana establishment? Immediate family includes parents, siblings, spouse and spouse's parents. Please list below. Premise Address Type of Interest (choose primary function) Percentage of Intere Relationship to You Prior Disciplinary Action Have you ever been involved directly or indirectly in a marijuana license that was subject to disciplinary action? If yes, please complete the following: State Reason for suspension, revocation or cancellation Date of Action Name of License City Attachment: Beneficial Interest Disclosure • Packot Pg 309

CITY OF BOSTON MARIJUANA ESTABLISHMENT APPLICATION 730 BENEFICIAL INTEREST - Organization the Please complete a Beneficial Interest - Organization sheet for all organization(s) who have a direct or indirect beneficial intere with or without ownership, in this license. Example: ABC Inc. is applying for a marijuana license. ABC Inc. is 100% owned by XYZ Inc., which is 100% owned by 123 Inc. XYZ Inc. is considered to have a direct beneficial interest in the proposed licensee (ABC Inc.) and 123 Inc. is considered to have indirect beneficial interest in the proposed licensee (ABC Inc.). Both XYZ Inc. and 123 Inc. should complete a Beneficial Interest - Organization Form. FEIN: Entity Name: Fax Number: Primary Phone: Email: Alternative Phone: Business Address Street Name: Street Number: State: City/Town: Zip Code: Country: Mailing Address • Check here if your Mailing Address is the same as your Business Address Street Name: Street Number: State: City/Town: Country: Zip Code: Publicly Traded Is this organization publicly traded? Oyes ONO Ownership/ Interest If this organization holds a direct beneficial Using the definition above, does this interest in the proposed licensee, please list organization hold a direct or indirect interest in ODirect Oindirect the proposed licensee? the % of interest It holds. If you hold an indirect beneficial interest in this license, please complete the Ownership/ Interest Table on the next page. Attachment: Beneficial Interest Disclosure Organization (COF 2019 #41 : Establishing the Equitable Regulation of the Cannabis Industry Packet Pg.310

CITY OF BOSTON MARIJUANA ESTABLISHMENT APPLICATION Ownership/ Interest Lif this organization holds an indirect interest in the proposed licensee, please list the organization(s) It holds a direct interest in which, in turn, hold a direct or indirect interest in the proposed licensee. These generally include parent companies, holding ompanies, trusts, etc. A Beneficial Interest - Organization Form will need to be completed for each entity listed below. FEIN Name of Beneficial Interest - Organization Other Beneficial Interest List any indirect or indirect beneficial or financial interest this entity has in any other City of Boston marijuana establishments). Name of License Premises Address Type of License 7.3:c Prior Disciplinary Action Has this entity ever been involved directly or indirectly in a marijuana license that was subject to disciplinary action? If yes, please complete the following: Name of License Date of Action Reason for suspension, revocation or cancellation State City ganization (COF 2019 #41 : Establishing the Equitable Regulation of the Cannabis Industry in the

CAMBRIDGE CITY COUNCIL Mayor E. Denise Simmons 2008-2009 City Councillor 2016-2017 June 27, 2019 Paula Crane Interim City Clerk Cambridge City Hall Re: Proposed Amendments For June 27, 2019 Ordinance Hearing Dear Ms. Crane: I am submitting my proposed amendments to the Cannabis Business Permitting discussion scheduled to take place at the Ordinance Hearing scheduled for June 27, 2019 at 3:30 pm. Please include the proposed attached amendments as part of the record for consideration and discussion at this hearing. Thank you for your Sincerely, City Councilor E. Denise Simmons CITY HALL, CAMBRIDGE, MASSACHUSETTS 02139 EMAIL: dsimmons@cambridgema.gov TTY/TDD: [phone removed] FAX: [phone removed] [phone removed]

Proposed Amendments to the Ordinance: Chapter 5.50 entitled "Cannabis Business Permitting" is hereby amended in Section 5.50.040 "Permitting Preferences for Priority Applicants" by striking subsection (a.) and inserting in its place, the following: 5.50.040 Permitting Preferences for Priority Applicants a. For the first two years from the effective date provided in Section 10 below, the City shall issue a Cannabis Business permit pursuant to this Chapter only to Priority Applicants. The City will only issue a Cannabis Business permit to (a) a Group B Priority Applicant if, after issuance, there will be an equal or greater number of currently active Cannabis Business permits of that type held by Group A Priority Applicants, or (b) if the applicant is an RMD that has been granted a Provisional Certificate of Registration not later than July 1, 2017 and is seeking licensure as a Cannabis Retail Store for retail cannabis sales. Chapter 5.50 entitled "Cannabis Business Permitting" is hereby amended by inserting a new section to be entitled "Section 5.50.045 RMD Conversion Economic Empowerment Accelerator Deposit": 5.50.045 RMD Conversion Economic Empowerment Accelerator Deposit An RMD that has been granted a Provisional Certificate of Registration not later than July 1, 2017 and is seeking licensure as a Cannabis Retail Store for retail cannabis sales pursuant to Section 4 above shall i) deposit not less than $250,000 annually into the Cambridge Economic Empowerment Accelerator Fund for a period of four years to commence upon the date of the City's issuance of a certificate of occupancy to such RMD as a co-located Cannabis Retail Store and ii) coordinate with each RMD that qualifies under this subsection to collaboratively establish and fund a management and operations training program available for all Economic Empowerment applicants certified pursuant to Section 6 below. Chapter 5.50 entitled "Cannabis Business Permitting" is hereby amended by inserting a new section to be entitled "Section 5.50.095 Cambridge Economic Empowerment Accelerator Fund": Section 5.50.095 Cambridge Economie Empowerment Accelerator Fund a. The Assistant City Manager for Community Development shall establish a procurement process by which the City shall engage a nonprofit located within the City of Cambridge to establish and administer a Cambridge Economic Empowerment Accelerator Fund. The purpose of the fund shall be to provide start-up capitalization grants to support qualifying Economic Empowerment applicants certified pursuant to Section 6 above. b. The Fund shall be administered by the selected nonprofit. There shall be a Cambridge Economic Empowerment Accelerator Fund Advisory Board which shall support and advise the nonprofit in it administration of the fund. The advisory board shall be made up of the Assistant City Manager for Community Development or designee, who shall serve as chair, as well as four City residents with experience in community and economic development or small business development to be appointed by the City Manager.

AMTACHMENT E ATTACHMENT B committee Rep: #14-7130119 CITY OF CAMBRIDGE In the Year Two Thousand Nineteen AN ORDINANCE In amendment to the Municipal Code of the City of Cambridge Be it ordained by the City Council of the City of Cambridge as follows: That the Municipal Code of the City of Cambridge be amended in Title 5 entitled "Business Licenses and Regulations" by adding a new chapter 5.50 entitled "Cannabis Business Permitting" which reads as follows: Cannabis Business Permitting Chapter 5.50 5.50.010 Purpose This ordinance is intended to create a separate local permitting requirement for Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter (collectively "Cannabis Business") applicants to certify compliance with certain conditions in the public interest prior to being permitted to operate a Cannabis Business in the City. The City deems it to be in the public interest to give initial permitting preferences for Cannabis Businesses to Priority Applicants, as defined herein. 5.50.020. Definitions Cannabis Business. A Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter. Cannabis Cultivator. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Cultivator to cultivate, process and package cannabis or marijuana, and to transfer cannabis or marijuana to other cannabis or marijuana establishments, but not to consumers. A craft marijuana cooperative as defined by state regulation is a type of Cannabis Cultivator. Cannabis Product Manufacturer. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Product Manufacturer to obtain, manufacture, process and package cannabis or marijuana products and to transfer these products to other cannabis or marijuana establishments, but not to consumers. Cannabis Retail Store. An establishment authorized to sell or otherwise transfer cannabis or marijuana products to consumers for use off the premises, but not to cultivate, manufacture, process, or package cannabis or marijuana products, in accordance with applicable state laws and regulations. A Cannabis Retail Store may be licensed to operate as a Cannabis or Marijuana

2 Retailer or registered as a Medical Marijuana Treatment Center, also known as a Registered Marijuana Dispensary (hereafter "RMD"), or both, in accordance with applicable state laws and regulations. Cannabis Transporter. An entity, not otherwise licensed by the Cannabis Control Commission, that is licensed to purchase, obtain, and possess cannabis or marijuana, or cannabis or marijuana products, solely for the purpose of transporting, temporarily storing, selling and distributing them to cannabis establishments, not for selling to consumers. Priority Applicant. A person, corporation, or other legal entity applying for a Cannabis Business permit pursuant to this Chapter to operate in the City who is: a. Group A Priority Applicant. An Economic Empowerment or Social Equity Program Applicant certified as such by the Commonwealth's Cannabis Control Commission; or a Social Equity Program Applicant certified as such by the Commonwealth's Cannabis Control Commission who is also a Cambridge resident and has been for at least the previous three years; or a Women or Minority Owned business as certified by the Commonwealth and/or by the City: or a Cambridge resident for at least the three previous years prior to application earning less than fifty percent (50% of Area Median Income (AMI) in the three previous tax years prior to application -- to be known as Group A Priority Applicants. b. A. Group B Priority Applicant. An RMD within the City that will sellwas licensed or registered not later than July I, 2017 to sell cannabis products in a Cannabis Retall Store pursuant to the Commonwealth's medical use of marijuana laws, which seeks toeither alone or in addition to operateing as a licensed marijuana retailer pursuant to the Commonwealth's adult use of marijuana laws - to be known as Group B Priority Applicants. Those who qualify as Group B Priority Applicants cannot also qualify as a Group A Priority Applicant. 5.50.030 Applicability This Chapter shall apply to any proposed Cannabis Cultivator, Cannabis Product Manufacturer, Cannabis Retail Store, or Cannabis Transporter that is seeking licensure from the Cannabis Control Commission on or after the effective date of this Chapter. This Chapter shall not apply to RMDs that have already been permitted in the City and are not seeking licensure as a Cannabis Retail Store for retail cannabis sales prior to the effective date of this ordinance ("Existing RMD"). 5.50.040 Permitting Preferences for Priority Applicants a. For the first two years from the effective-date provided in Section 10 betow, the City shatt issue a Cannabis Business permit pursuant to this Chapter only to Priority Applicants. The

3 City-will only issue a Cannabis-Business permit to a Group B Priority Applicant if, after issuance, there-will be an equat or greater number of currently active Cannabis Business permits of that type held by Group A Priority Applicants, or if the appeant is an RND that has been granted a special permit from the Planning Board and a Provisional Certificate of Registration from the Cannabis Control Commission before the effective date of this Chapter and is seeking licensure as a Cannabis Retail Store for retail cannabis sales. b. After two years from the effective date provided in Section 10 below, the City may issue Cannabis Business permits to any qualifying applicant, whether or not such applicant is a Priority Applicant. However, after two years from the effective date in Section 10 below, the City shall continue to prioritize the issuance of permits to Priority Applicants when applications for Cannabis Business permits from both Priority Applicants and non Priority Applicants are pending approval by the City at the same time: The City shall issue a Cannabis Business Permit pursuant to this Chapter only to Priority Applicants. For the first two years after the Effective Date of this Chapter as stated in section 5.50.100 below, the City shall issue a Cannabis Business Permit to operate a Cannabis Retail Store only to Group A Priority Applicants who are Economic Empowerment Applicants certified as such by the Commonwealth's Cannabis Control Commission. 5.50.050 Permitting Requirements a. In order to obtain a Cannabis Business permit pursuant to this Chapter, an applicant must certify that: 1. It will comply with employee pay standards set out in the City's Living Wage Ordinance; 2. It will hire at least 51% of minority, women and/or veterans as employees; 3. If applicant has a Board of Directors, the board makeup will be at least 51% minority, women and/or veterans; 4. It consents to unannounced, periodic compliance inspections by City officials of its Cannabis Business, including any Cannabis Business activities it conducts off-site; 5. It will comply with all State and local laws and regulations regarding its Cannabis Business operations; 6. No person under the minimum legal sales age shall be permitted to enter the Cannabis Business site unless such person possesses a state-issued registration card demonstrating that the person is a registered qualifying medical marijuana (cannabis) patient and the Cannabis Business site is, or is co-located with, an RMD; 7. It will work with the Cambridge Public Health Department to create and distribute educational materials to its customers as directed by the Cambridge Public Health Department;

4 8. It will sell only cannabis and cannabis accessories, and not other products, including tobacco products or alcoholic beverages of any kind; 9. It will comply with directives of the Police Commissioner and of the Director of Traffic Parking and Transportation, or their designees, regarding traffic measures to be taken at and near the Cannabis Business site; and 10. It has received a special permit from the Planning Board for its Cannabis Business and has entered into a Host Community Agreement with the City through the City Manager's Office; and 11. It is a business in good standing with no outstanding federal, state or local investigations or judgments pending against it.= b. No discretionary permit conditions may be imposed by the permit issuing authority pursuant to this Chapter. c. A Cannabis Business permit shall be valid only for the applicant to which the Cannabis Business permit was issued, and only for the use and for the site approved in the permit. A proposed change of controlling ownership, change of use, or change of site shall require a new Cannabis Business permit. _As part of the Cannabis Business permit application process, the City shall require the applicant to disclose all individuals and legal entities who have a beneficial interest in the applicant's business. 5.50.060 Permitting Procedure This Chapter shall be administered by the City's Inspectional Services Department, except that Priority Applicant status shall be certified by the Director of the Economic Development Division of the Community Development Department. Applications for Cannabis Business permits shall be obtained from and submitted to the Inspectional Services Department. If permit applications are properly completed and certified, and the conditions of this Chapter are met, the Commissioner of Inspectional Services (the "Commissioner") shall issue a Cannabis Business permit to the applicant. No public hearing process on individual applications shall be conducted. A Host Community Agreement shall be negotiated with the City Manager. 5.50.070 Permit Expiration and Renewal The Cannabis Business permit issued pursuant to this Chapter shall be subject to renewal annually. If the applicant fails to timely renew or fails to meet the requirements of this Chapter at the time of each renewal, including the Permitting Requirements in section 5.50.050 above, the Cannabis Business permit issued hereunder shall expire. A Cannabis Business permit will not be renewed if the permit holder has failed to pay all fines issued pursuant to this Chapter.

5 5.50.080 Enforcement a. Failure to comply with this Chapter, including a failure to maintain the status of a Priority Applicant, failure to obtain or to comply with the provisions of a Planning Board special permit or State license to operate a Cannabis Business, or failure to comply with any applicable laws, may result in revocation by the City, through the Commissioner, of the Cannabis Business permit granted pursuant to this Chapter. Failure to meet the annual Cannabis Business permit renewal requirements will result in the expiration of the Cannabis Business permit. If a permit holder's State license is revoked, then the Cannabis Business permit issued by the City shall be revoked._A Cannabis Business permit may be revoked or not renewed if the permit holder has sold a cannabis product to a person under the minimum legal sales age three times or more, or if the permit holder has failed to pay to the City all outstanding fines issued pursuant to this Chapter. b. An applicant must cease to operate if it does not hold and maintain a valid Cannabis Business permit pursuant to this Chapter. Prior to revoking a Cannabis Business permit issued hereunder, the Commissioner will notify the Cannabis Business permit holder in writing and allow the Cannabis Business permit holder at least fourteen (14) days to submit written information to the Commissioner establishing that the Cannabis Business permit holder is in compliance with the terms of this Chapter. The Commissioner shall make a final determination on the Cannabis Business permit expiration or revocation thereafter. If a permit holder requests, the Commissioner in his discretion may hold a hearing before deciding whether to revoke a Cannabis Business permit. c. Any violation of this Chapter by a permit holder shall be subject to a fine of up to $300 for each violation. Each day a violation exists shall constitute a separate violation. d. Fines pursuant to this Chapter may be issued pursuant to the non-criminal ticketing procedure in G.L.c.40, §2ID. The Commissioner of Inspectional Services, the Police Commissioner, and the Commissioner of Public Health, or their designees shall be the enforcement officials for this Chapter. 5.50.090 Regulations The Commissioner of Inspectional Services, as well as the Assistant City Manager for Community Development, with the approval of the City Manager, are authorized to promulgate regulations and to create the necessary application and permit forms, to implement this Chapter with respect to their respective responsibilities pursuant to this Chapter. Regulatory requirements implementing this ordinance may differ for Priority Applicants and non-Priority applicants, such that the regulatory burden for Priority Applicants is less burdensome. 5.50.100 Effective Date , 2019. This Chapter shall take effect on

6 5.50.110 Severability The provisions of this Chapter are severable, and if any part of this Chapter should be held invalid by a court of competent jurisdiction, such invalidity shall not affect the remainder of the Chapter, and the remainder of the Chapter shall remain in full force and effect.

ATTACHMENT F ATTACHMENT I committee Rep#4 6/3/19 REVISED TEXT COUNCILLOR ZONDERVAN'S AMENDMENT FIRST PUBLICATION NO. 3488 CITY OF CAMBRIDGE In the Year Two Thousand Nineteen AN ORDINANCE In amendment to the Municipal Code of the City of Cambridge Be it ordained by the City Council of the City of Cambridge as follows: That the Municipal Code of the City of Cambridge be amended in Title 5 entitled "Business Licenses and Regulations" by adding a new Chapter 5.50 entitled "Cannabis Business Permitting" which reads as follows: Cannabis Business Permitting Chapter 5.50 5.50.010 Purpose This ordinance is intended to create a separate local permitting requirement for Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter (collectively "Cannabis Business"') applicants to certify compliance with certain conditions in the public interest prior to being permitted to operate a Cannabis Business in the City. The City deems it to be in the public interest to give initial permitting preferences for Cannabis Businesses to Priority Applicants, as defined herein. 5.50.020 Definitions Cannabis Business. A Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter. Cannabis Cultivator. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Cultivator to cultivate, process and package cannabis or marijuana, and to transfer cannabis or marijuana to other cannabis or marijuana establishments, but not to consumers. A craft marijuana cooperative as defined by state regulation is a type of Cannabis Cultivator. Cannabis Product Manufacturer. An entity licensed by the Massachusetts Cannabis Control Commission as a Marijuana Product Manufacturer to obtain, manufacture, process and package cannabis

or marijuana products and to transfer these products to other cannabis or marijuana establishments, but not to consumers. Cannabis Retail Store. An establishment authorized to sell or otherwise transfer cannabis or marijuana products to consumers for use off the premises, but not to cultivate, manufacture, process, or package cannabis or marijuana products, in accordance with applicable state laws and regulations. A Cannabis Retail Store may be licersed to operate as a Cannabis or Marijuana Retailer or registered as a Medical Marijuana Treatment Center, also known as a Registered Marijuana Dispensary (hereafter "RMD"), or both, in accordance with applicate applicable state laws and regulations. (NOTE NO VOTE WAS TAKEN ON THIS CLERICIAL ERROR) Cannabis Transporter. An entity, not otherwise licensed by the Cannabis Control Commission, that is licensed to purchase, obtain, and possess cannabis or marijuana, or cannabis or marijuana products, solely for the purpose of transporting, temporarily storing, selling and distributing them to cannabis establishments, not for selling to consumers. Priority Applicant. A person, corporation, or other legal entity applying for a Cannabis Business permit pursuant to this Chapter to operate in the City who is: a. Group A Priority Applicant. An Economic Empowerment or Social Equity Program Applicant certified as such by the Commonwealth's Cannabis Control Commission; or a Women or Minority Owned business as certified by the Commonwealth-- to be known as Group A Priority Applicants. b. Group B Priority Applicant. An RMD within the City that will sell cannabis products in a Cannabis Retail Store pursuant to the Commonwealth's medical use of marijuana laws, either alone or in addition to operating as a licensed marijuana retailer pursuant to the Commonwealth's adult use of marijuana laws - to be known as Group B Priority Applicants. Those who qualify as Group B priority applicants cannot also qualify for Group A. 5.50.030 Applicability This Chapter shall apply to any proposed Cannabis Cultivator, Cannabis Product Manufacturer, Cannabis Retail Store, or Cannabis Transporter that is seeking licensure from the Cannabis Control Commission on or after the effective date of this Chapter. This Chapter shall not apply to RMDs that have already been permitted in the City and are not seeking licensure as a Cannabis Retail Store for retail cannabis sales prior to the effective date of this ordinance ("Existing RMD"). 5.50.040 Permitting Preferences for Priority Applicants The City shall issue a Cannabis Business permit pursuant to this Chapter only to Priority Applicants. 5.50.050 Permitting Requirements a. In order to obtain a Cannabis Business permit pursuant to this Chapter, an applicant must certity that: 1. It will comply with employee pay standards set out in the City's Living Wage Ordinance; 2. It will hire at least 51% of minority, women and/or veterans as employees;

3. If applicant has a Board of Directors, the board makeup will be at least 51% minority, women and/or veterans; 4. It consents to unannounced, periodic compliance inspections by City officials of its Cannabis Business, including any Cannabis Business activities it conducts off-site; 5. It will comply with all State and local laws and regulations regarding its Cannabis Business operations; 6. No person under the minimum legal sales age shall be permitted to enter the Cannabis Business site unless such person possesses a state-issued registration card demonstrating that the person is a registered qualifying medical marijuana (cannabis) patient and the Cannabis Business site is, or is co-located with, an RMD; 7. It will work with the Cambridge Public Health Department to create and distribute educational materials to its customers as directed by the Cambridge Public Health Department; 8. It will sell only cannabis and cannabis accessories, and no other products, including tobacco products or alcoholic beverages of any kind; 9. It will comply with directives of the Police Commissioner and of the Director of Traffic Parking and Transportation, or their designees, regarding traffic measures to be taken at and near the Cannabis Business site; and 10. It has received a special permit from the Planning Board for its Cannabis Business and has entered into a Host Community Agreement with the City through the City Manager's Office. b. No discretionary permit conditions may be imposed by the permit issuing authority pursuant to this Chapter. c. A Cannabis Business permit shall be valid only for the applicant to which the Cannabis Business permit was issued, and only for the use and for the site approved in the permit. A proposed change of controlling ownership, change of use, or change of site shall require a new Cannabis Business permit. 5.50.060 Permitting Procedure This Chapter shall be administered by the City's Inspectional Services Department, except that Priority Applicant status shall be certified by the Director of the Economic Development Division of the Community Development Department. Applications for Cannabis Business permits shall be obtained from and submitted to the Inspectional Services Department. If permit applications are properly completed and certified, and the conditions of this Chapter are met, the Commissioner of Inspectional Services (the "Commissioner") shall issue a Cannabis Business permit to the applicant. No public hearing process on individual applications shall be conducted. A Host Community Agreement shall be negotiated with the City Manager. 5.50.070 Permit Expiration and Renewal The Cannabis Business permit issued pursuant to this Chapter shall be subject to renewal annually. If the applicant fails to timely renew or fails to meet the requirements of this Chapter at the time of each

renewal, including the Permitting Requirements in section 5 above, the Cannabis Business permit issued hereunder shall expire. A Cannabis Business permit will not be renewed if the permit holder has failed to pay all fines issued pursuant to this Chapter. 5.50.080 Enforcement a. Failure to comply with this Chapter, including a failure to maintain the status of a Priority Applicant, failure to obtain or to comply with the provisions of a Planning Board special permit or State license to operate a Cannabis Business, or failure to comply with any applicable laws, may result in revocation by the City, through the Commissioner, of the Cannabis Business permit granted pursuant to this Chapter. Failure to meet the annual Cannabis Business permit renewal requirements will result in the expiration of the Cannabis Business permit. If a permit holder's State license is revoked, then the Cannabis Business permit issued by the City shall be revoked. A Cannabis Business permit may be revoked or not renewed if the permit holder has sold a cannabis product to a person under the minimum legal sales age three times or more, or if the permit holder has failed to pay to the City all outstanding fines issued pursuant to this Chapter. b. An applicant must cease to operate if it does not hold and maintain a valid Cannabis Business permit pursuant to this Chapter. Prior to revoking a Cannabis Business permit issued hereunder, the Commissioner will notify the Cannabis Business permit holder in writing and allow the Cannabis Business permit holder at least fourteen (14) days to submit written information to the: Commissioner establishing that the Cannabis Business permit holder is in compliance with the terms of this Chapter. The Commissioner shall make a final determination on the Cannabis Business permit expiration or revocation thereafter. If a permit holder requests, the Commissioner in his discretion may hold a hearing before deciding whether to revoke a Cannabis Business permit. c. Any violation of this Chapter by a permit holder shall be subject to a fine of up to $300 for each violation. Each day a violation exists shall constitute a separate violation. d. Fines pursuant to this Chapter may be issued pursuant to the non-criminal ticketing procedure in G.L.c.40, §21D. The Commissioner of Inspectional Services, the Police Commissioner, and the Commissioner of Public Health, or their designees shall be the enforcement officials for this Chapter. 5.50.090 Regulations The Commissioner of Inspectional Services, as well as the Assistant City Manager for Community Development, with the approval of the City Manager, are authorized to promulgate regulations and to create the necessary application and permit forms, to implement this Chapter with respect to their respective responsibilities pursuant to this Chapter. Regulatory requirements implementing this ordinance may differ for Priority Applicants and non-Priority applicants, such that the regulatory burden for Priority Applicants is less burdensome. 5.50.100 Effective Date This Chapter shall take effect on , 2019. 5.50.110 Severability

The provisions of this Chapter are severable, and if any part of this Chapter should be held invalid by a court of competent jurisdiction, such invalidity shall not affect the remainder of the Chapter, and the remainder of the Chapter shall remain in full force and effect.

ATTACHMENT G Cambridge Equity Ordinance Testimony My name is Frank Shaw and I live at 126 County Road in Ipswich. I'm a medical marijuana patient and I frequent the medical marijuana dispensaries in Cambridge. I've been sick with AIDS since 1998, and I'm now sick of how the city council here is treating medical marijuana. Every time we come here there is a new wrench thrown in so nothing ever gets completed. Medical marijuana is not a shell game for your political agenda, it means life to people like me with HIV and AIDS. At this point, I'm pulling all my support from all the ámendments on the table, because I'm done being disrespected by this Council. ity

locating with adult use. It is like requiring CVS to only have a pharmacy. You also have no right to force a medical operator to pay into a fund to help competing businesses open. Just a few weeks ago, Senator Pat Jehlen spoke at the Statehouse about the 3% limitation on Host Community Agreements in law. Maybe you all need Senator Pat Jehlen to give you all a reading comprehension course. Why aren't you demanding a 25 million dollar fund to provide low cost medical marijuana to patients suffering from AIDS and Cancer from the highly profitable adult use operators? If any of these amendments pass, I hope you all get sued, and this proposal completely fails. Thank you for your time and indulgence.

KtracumenT H erra th sendment aid the giving me Gigen Soul speak Cranes Faci a, Owne Born and Raised in Cambridge. I have a great affinity Four what this City his came to represent throughout the world. We as Cantabridgians pride ourselves as @avivement. sery a multing put of Cuttres with a progessive With that being said Cambridge has also fallen ictim to this ugly reality of the have and the haver nots. I by miy own doing for a period of my early years. Intortanately got caught up in the endless eyele oF minor dang oftenses, limited community nde models and poor rehabilitation opportunities. It can and has happened to some very promisin. and good hearted people. Too many lives to count have ten attested negatively, for what now way become socially acceptable behavior, It only seems fitting that those that fall victim may now have an opportunity to redeem themselves. I am a perfect axample of redempton if exposed and given an opportunity, to to a productive member oF society, 23 urg ago ofter a short period ot incarceration, I was afforded the opportunity to

God afterneon and that you for giving me this opportunity to speck in favor of the Zandervin/ Siddiqui amendment and the Green Soul Organes omarship group.

attend a Building trades program being run by what was then the Cambridgport Pesource Center. Today I stand before you as a prod member of Carpenters Local *328 with over 20yrs of genice, Which has in turn led to me having a solid real ostate portfolio in the Greater Boston area. I bring up my past and present to give an example of when meaningful opportunities are presunted to those off a tart fo whatever reason have fallen productive path in life. Can get right back on that path if given the right divections and a little bit of guidance. This is a piurtal point in Our Communties history. We have a chance to make sure that those which had been most negatively rected and man se less torturate or educated, Have an opportuniti to benefit from this profitable Global industry. Which has its roots firmly planted in these same often over locked parts of our neighborhoods. I have known the founders of GSO since approximately (grade (1483). I truly have on admination for thege gentlemen for how theyve been able to navigate a society that was and I believe still imakes it very difficult for people of color on those less fortunate to sucke

They have gone on to become important members of ts ot their time wearing yet hered and werene the antaches theyve seen victimize or consume do many of their friends from the past and present. Over the pust few years I have seen the work timelessly to prepare themselves for this endeavor, It Is mu belief that there would be no Ownership group to represent the interest of those that otherwise may not have a voice and be left out of the industry. The educational foundation that they have set up will be they to making sure that other entrepenyers in the underserved community will have an entry point and informational rescurees regarding the industry. Their socially concious buisness plan may well go on to become a blueprint for other communities across the nation to implement Their company mission and strong ties to the community make them ideal canidates to usher in a fair and equitable market model for all parties concerned. The Zondervan/ Siddiqui is the Key to making sure that Big Out-of-Town conglomerates aren't able to push local start ups to the wanside, I now ask the council to look within yourselkes and ask the question of what is fair

and most beneficial to residents of Cambridge Should out of town bean counters reap the benefits of our thriving city, Or shaukl local residents Rich or lests fortunate have an opportunity to compete on a fair and level playing feld. I now stand before you to acho the voice of a large number of Cambridge residents that will remember how the members of this Council handled this breader butter voting topic. Russing this amendment in sure to have a positive impact on the underserved community tor generations to come. case: Reain p tet me thank you for gi let • She andervan/ sic amendmen Again please let me thank the members of the concil Full support for ine me thin Sahng no showerp group and the passage of the Zendervan/Siddiqui amendment. Pear Pl:

ATTACHMENT I G Thank you for holding this hearing. I'm Malaika Moses and I have prepared a statement. Each of you has an opportunity to define the Cannabis retail market in Cambridge. The market will be comprised of medicinal firms and potentially 8 new retail shops. The question at hand is how will these 8 licenses be distributed within my city. It's my city, too, because I was born and raised in Cambridge. I took my K-12 education to Spelman in Atlanta and Babson College, in Wellesley, where I earned my MBA. After graduation, I worked for FleetBoston and Bank of America. Under the leadership of Gail Snowden, who was responsible for the Bank's CRA rating, we used the full power of the bank's resources to help create wealth within minority and poor communities. The CRA (Community Reinvestment Act) is a federal law that requires Banks to direct resources to communities that were historically discriminated against by banking institutions. It is an attempt to correct the wrong-doings of the past. Because of my experience with the Bank, I understand the power of the Zondervan/Siddiqui amendment. It is a Neighborhood Reinvestment Act that will require the Cannabis industry and the City to help build wealth in communities whose most valuable assets (teens and young adults) did not achieve their full potential as a result of the War on Drugs and the gross miseducation of working class and minority children who get tracked for failure in Cambridge's public schools. I support the amendment because it is an opportunity for Cambridge to achieve four objectives: 1) create long term value for officers and shareholders of publicly traded companies that operate existing medicinal dispensaries and are eager to open retail venues (and I understand that none of these companies was founded by a Cambridge resident),

2) Increase the City's revenue; 3) Create long-term value for the community through performance-based start-up capital for emerging entrepreneurs who reside in Cambridge, and 4) Generate residual annual income for community programs to the tune of 1% of the combined gross revenue of all Cannabis companies in Cambridge. Based on a forecast of $1-$2 million in revenue per month, at full tilt, that 1% could provide under $2M a year to fund programs and businesses that uplift families impacted by the War on Drugs. We need to work strategically to hold Cannabis companies accountable in the same way that banks have been held accountable through the CRA for the past 42 years. In the time of Elizabeth Warren, Ayana Presley, and Rachel Rollins, in these times, when leaders in Massachusetts are standing up for change we're calling on you, Councilor Simmons, and anyone else who wants to stand up for economic justice, to support the Zondervan Siddiqui Amendment, a bold Neighborhood Reinvestment Act. We should not pay lip service to Martin Luther King's Dream. He was murdered while fighting for economic justice for poor people of all backgrounds. Let's honor King through right action. Now is the time to create wealth not only for Wall Street executives and their shareholders, but also for Main Street businesses and neighborhood residents.

ATTACHMENT J Submitted by: Dr. Denise A. Valenti CEO/President IMMAD, LLC Residency Trained Disability Clinician Disabled Citizen August 14, 2019 Regarding proposals/amendments to require existing medicinal marijuana dispensaries to contribute to a fund related to social equity and economic licensure and open as the current state regulations mandate, is against what amount of handl supert any a up in exchange for the right to seok clinal fit fi the citizens of Cambridge voted for. Further it constitutes an excessive host agreement arrangement. The proposed amendment is going against what citizens of Cambridge voted for when approving adult use marijuana during the 2016 ballot initiative. Cambridge voted for having legal adult use marijuana and for those existing medicinal businesses to have the first issued recreational adult use marijuana licenses by a large percentage in favor; 72% in favor of this process. https://www.nytimes.com/elections/2016/results/massachusetts-ballot-measure-4-legalize-marijuana The proposed amendment is harmful and discriminatory to disabled employees, business owners and medicinal cannabis users. The proposed amendment is discriminatory against minority groups equally or more harmed by the unequitable marijuana laws as the amendment has failed to remedy the state law and will also be exclusionary, as are the state laws. State laws fail to include Native Americans and disabled, both classified as diversity under federal guidelines. Further the laws fail to acknowledge or include LGBT which are considered a category of diversity in many legislative venues nationally, state and locally. Federal Definition of Minority: Federal Guidelines for Definition as a Minority Definition is from Title VIl of the Civil Rights Act A.)Black (not of Hispanic origin)-All persons having origins in any of the Black racialgroups of Africa.B.)Hispanic-All persons of Mexican, Puerto Rican, Cuban, Central or South American, or other

Spanish culture of origin, regardless of race.C.)Asian or Pacific Islander-All persons having origins in any of the original peoples of the FarEast, Southeast Asia, the Indian subcontinent or the Pacific Islands. This area includes, for example, China, India, Japan, Korea, the Philippine Islands and Samoa.D. American Indian or Alaskan Native-All persons having origins in any of the original peoples of North America, and who maintain cultural identification through tribal affiliation or community recognition. Federal Definition of Diversity: We define workforce diversity as a collection of individual attributes that together help agencies pursue organizational objectives efficiently and effectively. These include, but are not limited to, characteristics such as national origin, language, race, color, disability, ethnicity, gender, age, religion, sexual orientation, gender identity, socioeconomic status, veteran status, and family structures. https://www.opm.gov/policy-data-oversight/diversity-and- inclusion/reports/diagencyspecificstrategicplanguidance.pdf https://mass-cannabis-control.com/wp-content/uploads/2018/04/FINAL-Social-Provisions-Guidance- 1PGR-1.pdf Guidance for Equity ProvisionsUnder St. 2017, c.55, the Cannabis Control Commission is required to ensure that people from communities that have been disproportionately harmed by marijuana law enforcement are included in the new legal marijuana industry. This handout summarizestheEconomic Empowerment Priority Review andSocial Equity Program.Areas of Disproportionate ImpactBased primarily on arrest rates, the Commission has designated 29 cities as areas of disproportionate impact. Cities with a population of more than 100,000 people (Boston,Loweli,Springfield, and Worcester)will be subdivided to reflect that only certain neighborhoods qualify as areas of disproportionate impact.Please visit MassCannabisControl.comfor the full list of areas of disproportionate impact. Economic Empowerment Priority Review for Applicants Priority Review will be granted to Economic Empowerment Applicants who demonstrate threeof the following criteria: @Majority of ownership belongs to people who have lived in areas of disproportionate impactfor 5 of the last 10 years;@Majority of ownership has held one or more previous positions where the primary population served were disproportionately impacted, or where primary responsibilities included economic education, resource provision or empowerment to disproportionately impacted individuals or communities;At least 51% of current employees/sub-contractors reside in areas of disproportionate impactand will increase to 75% by first day of business;#At least 51% of employees or sub-contractors have drug-related CORI, but are otherwise legally employable in a cannabis-related enterprise;DA majority of the ownership is made up of individuals from Black, African American, Hispanic, or Latino descent;BOwners can demonstrate significant past experience in or business practices that promote economic empowerment in areas of disproportionate impact Social Equity Program for ApplicantsThe Social Equity Program goals are to decrease the disparities in life outcomes for these individuals and improve the quality of life in areas of disproportionate impact: reduce barriers to entry in the commercial marijuana industry; provide professional and technical services and mentoring for businesses facing systemic barriers; and promote sustainable, socially and economically reparative practices in the commercial marijuana industry in Massachusetts. Eligibility:Applicants or licensees are eligible for the social equity program if they demonstrate at least oneof the following criteria:@They have resided in an area of disproportionate impactfor at least 5 of the past 10 years;@They have a past drug conviction and they have been residents of Mass. for at least the preceding 12 months; or @They have been married to or are the child of a person with a drug conviction and they have been residents of Massachusetts for at least the preceding 12 months.

Incarceration Rates Mental Illness: 64% local jail, 56% state and 45% federal Incarceration Rates Disabled: An estimated 32% of prisoners and 40% of jail inmates reported having at least one disability. Prisoners were nearly 3 times more likely and jail inmates were more than 4 times more likely than the general population to report having at least one disability. About 2 in 10 prisoners and 3 in 10 jail inmates reported having a cognitive disability, the most common reported disability in each population. Female prisoners were more likely than male prisoners to report having a cognitive disability, but were equally likely to report having each of the other five disabilities. Non-Hispanic white prisoners (37%) and prisoners of two or more races (42%) were more likely than non-Hispanic black prisoners (26%) to report having at least one disability. More than half of prisoners (54%) and jail inmates (53%) with a disability reported a co-occurring chronic condition. https://www.bjs.gov/index.cfm?ty=pbdetail&iid=5500 Drug Arrests of Mentally I!: Among those with severe enough mental illness to require inpatient mental illness services, there is drug related arrest (generally procession) rate of 15% for ages 18-25. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3793848/