#2022-8 April 1, 2022

Supplemental Spending Bill on Governor’s Desk

On Thursday, a $1.67 billion supplemental spending bill was sent to Governor Charlie Baker’s desk after the House and Senate came to an agreement on the measure.  The bill also extends pandemic-era restaurant reforms and empowers state officials to divest public pension funds from Russian-involved companies.

The bill, H 4650, which allocates money toward the ongoing COVID-19 response, winter road repair, rental assistance and more, grew by tens of millions of dollars during the negotiations between the two bodies.  Senate Ways and Means Committee Chair Senator Michael Rodrigues (D–Westport) said the bill carries a net cost of $883 million to the state, with the remainder covered by federal reimbursement.

In addition to steering $700 million toward COVID-19 efforts, $140 million to private special education schools, $100 million to road repairs and $20 million for low-income home energy assistance, the legislation extends until April 1, 2023 authorization for expanded outdoor dining and to-go cocktails.  The bill also directs the state’s pension board to divest any holdings in companies that are incorporated in Russia or have been sanctioned by the US government in response to Russia’s war in Ukraine.  State Treasurer Deb Goldberg has indicated that the pension fund’s exposure to these companies is approximately $140 million; however, she also stated that legislative action was required for the funds to be divested.

Senate to Consider Marijuana Law Reforms

Next week, the Senate is planning to debate legislation targeting persistent issues with host community agreements and social equity in the growing adult-use cannabis industry in Massachusetts.  Members of the Senate Ways and Means Committee agreed to advance a redrafted version of a bill, S 2801, to put tighter restrictions on the legally required contracts between marijuana businesses and their host communities, establish a Cannabis Social Equity Trust Fund and lay the groundwork for cities and towns to allow on-site cannabis consumption establishments.

The measure establishes grant and loan programs through a new Cannabis Social Equity Trust Fund that would be funded by 10 percent of the monies collected in the Marijuana Regulation Fund.  Eligible recipients would include participants in the Cannabis Control Commission’s (CCC) social equity (SE) program or economic empowerment (EE) priority applicants.  Using the 2021 figures, a 10 percent share of cannabis excise revenue ($112.37 million) would mean approximately $11.24 million for the trust fund.

On the issue of host community agreements (HCAs), the bill directs the CCC to “review and approve host community agreements” and to “regulate and enforce all host community agreements.”  The CCC could only approve applications for provisional licensure or renewal if it has certified that the HCA is in compliance.  The bill also more specifically defines what can and cannot be included in the contracts and codifies a municipality’s right to waive the requirement to have an HCA as a handful have already done.

The measure also addresses an issue that has kept social consumption sites -- establishments where an adult could both purchase and use marijuana -- from becoming a reality in Massachusetts more than two years after the CCC approved regulations that paved the way for establishments where adults could use marijuana together in a social setting.  The Senate placed the bill on the agenda for Thursday, April 7, and established a deadline of 3:00 p.m. Monday for senators to propose amendments.

To review the bill, click here.

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