A communication from Councillor Zondervan, transmitting a memorandum regarding further proposed amendments to the …

Memorandum Submission

Subject: Please place the attached memorandum, "Further Proposed Amendments to the Cannabis Business Permitting Ordinance", on the City Council agenda as "Communications and reports from Other City Officials" for the May 6, 2019 meeting. Thank you. MEMORANDUM To:

Cambridge City Council

From:

Quinton Zondervan, City Councillor

Date:

Subject: Further Proposed Amendments to the Cannabis Business Permitting Ordinance

Please consider the following, which includes two small changes to the edits I originally proposed at the 4/22/19 regular meeting, based on our further discussion and clarity that has been provided. All proposed changes are in red, and the two new changes are also italicized for your convenience.

Chapter 5.50 Cannabis Business Permitting

1. 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 ublic 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 2. Definitions Cannabis Business.

A Cannabis Retail Store, Cannabis Cultivator, Cannabis Product Manufacturer and/or Cannabis Transporter. 2 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 applicate 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 Women or Minority Owned business as certified by the Commonwealth; or a Cambridge resident earning less than 50% of AMI in the tax year prior to application —to be known as Group A Priority Applicants b. Group B Priority Applicant.

An RMD within the City licensed or permitted no later than July 1 2017 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 3 marijuana laws-- to be known as Group B Priority Applicants. Those who qualify as Group B priority applicants cannot also qualify for Group A. 3.

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*). 4.

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 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 if the applicant is an RMD 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 beth Priority Applicants and non Priority Applicants are pending approval by the City at the same time. 5.

Permitting Requirements a. In order to obtain a Cannabis Business permit pursuant to this Chapter, an applicant must certify that: 4 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 Beard 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 offsite; 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.