CAMBRIDGE CITY COUNCIL

Quinton Y. Zondervan
City Councillor September 8, 2021

To the members of the Ordinance Committee:

I am writing in advance of tomorrow’s Ordinance Committee hearing to inform you of my intent to submit the
attached language for the September 13, 2021 regular meeting. This is a necessary step to consider an extension of
the existing preference period, which expires on September 23, 2021. This language was sent to the Law
Department for review on August 25, 2021. Here is a quick summary of the proposed amendments:

1. Updates the Cannabis Business Permitting Ordinance to encompass delivery and courier businesses. You
will recall that council passed zoning for delivery/courier operations last spring, but those businesses will
not be able to obtain a Cannabis Business Permit until this Ordinance is also updated to include
them.

2. Adds an additional preference period for delivery/courier businesses. The state has already implemented a
3-year preference period for those businesses and these amendments would add an additional year on top
of that in Cambridge.

3. Extends Cambridge's existing local preference period for retail stores. The current proposal extends the
period by one year or one year from the date that the first applicant is granted state approval to commence
operations at an approved location in Cambridge, whichever is later.

4. Expands the existing local preference period to include ALL group A applicants, including Social Equity
(SE) applicants for the first time. As you know, the existing preference period only applies to Economic
Empowerment (EE) applicants. We have heard important feedback that it is time to include SE applicants
as part of this extension, and many EE applicants currently in the pipeline who benefitted from the
original preference period are supportive of allowing SE applicants to enter the market.

Here are the proposed amendments (additions in red and underlined):

5.50.010 Purpose

This ordinance is intended to create a separate local permitting requirement for Cannabis Retail Store, Cannabis
Cultivator, Cannabis Product Manufacturer, Cannabis Microbusiness, Cannabis Courier Establishment, Cannabis
Delivery Operator Establishment, or any other Cannabis Business as defined herein and/or Cannabis Transporter
(collectively "Cannabis Business") applicants to certify compliance with certain conditions in the public interest

CITY HALL, CAMBRIDGE, MASSACHUSETTS 02139

 Email: [email protected]
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 , Cannabis
Microbusiness, Cannabis Courier Establishment, Cannabis Delivery Operator Establishment, and/or Cannabis
Transporter or any other entity licensed by the Massachusetts Cannabis Control Commission to produce, transport
or sell marijuana in the Commonwealth of Massachusetts.

“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 Courier Establishment.” An establishment licensed as a Marijuana Courier by the Massachusetts

Cannabis Control Commission that is authorized to operate pursuant to that license, including to deliver cannabis
or marijuana products, accessories and branded goods from a Cannabis Retail Store to consumers, in accordance
with applicable state laws and regulations, but not authorized to sell cannabis or marijuana products directly to
consumers.

“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."

“Cannabis Delivery Operator Establishment.” An establishment licensed as a Marijuana Delivery Operator by the
Massachusetts Cannabis Control Commission and authorized to purchase at wholesale and warehouse on the site
cannabis or marijuana products acquired from a Cannabis Cultivator, Cannabis Product Manufacturer, Cannabis
Microbusiness or Craft Marijuana Cooperative, and to sell and deliver cannabis or marijuana products, accessories
and branded goods directly to consumers in accordance with applicable state laws and regulations, but not
authorized to repackage cannabis or marijuana products or to sell cannabis or marijuana products to consumers
on-site.

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“Cannabis Microbusiness.” A co ‐located Cannabis or Marijuana Establishment that can be either a Tier 1
Marijuana Cultivator or a Product Manufacturer or both, pursuant to 935 CMR 500.00, in compliance with the
operating procedures for each license and, if in receipt of a Delivery Endorsement issued by the Cannabis Control
Commission, may deliver Cannabis or Cannabis Products produced at the licensed location directly to Consumers
in compliance with established regulatory requirements for retail sale as it relates to delivery. A Microbusiness
that is a Cannabis Marijuana Product Manufacturer may purchase no more than 2,000 pounds of marijuana per
year from other Cannabis or Marijuana Establishments, pursuant to 935 CMR 500.000.

“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 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 RMD 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 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 Business Cultivator, Cannabis Product Manufacturer,
Cannabis Retail Store, Cannabis Courier Establishment, Cannabis Delivery Operator Establishment 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 Chapter ("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. For the first
twothree years after the Effective Date of this Chapter as stated in section 5.50.100 below, or one year after the
date the first Priority AApplicant under a retail license receives notice from the Massachusetts Cannabis Control
Commission to commence operations at an approved location in Cambridge, whichever date is later. 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.

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The effect of this provision is to extend the preference period for Economic Empowerment Applicants from two
years to at least three years, and to provide at least a one year preference period for all other Group A Priority
Applicants.

For the first year after the expiration of the Commonwealth’s 3 year preference period for Cannabis Delivery
Operators, the City shall issue a Cannabis Business Permit for a Cannabis Courier Establishment or Cannabis
Delivery Operator Establishment only to Group A Priority Applicants.

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;

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 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.
D. A Cannabis Business that is licensed to conduct cannabis delivery shall submit an Operations and
Logistics Plan for approval by the Cambridge Traffic, Parking and Transportation Department and Cambridge
Police Department annually prior to issuance and renewal pursuant to Section 5.50.070 below.

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)

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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 September 23, 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.

Sincerely,

Quinton Y. Zondervan
Cambridge City Councillor