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ARTICLE · 12 FEBRUARY 2020

State House Amends and Passes Bill on Host Community Agreements

On Tuesday, I blogged about H 4367, a bill that would amend the statutory language that defines permissible scope of community impact ...

United StatesCannabis & Hemp

On Tuesday, I blogged about H 4367, a bill that would amend the statutory language that defines permissible scope of community impact fees in Host Community Agreements ("HCAs") and would grant to Cannabis Control Commission authority to regulate HCA. Soon after I posted the blog, the House passed the bill with two substantive amendments.

The first amendment, offered by Representative Kane, clarifies that while the 3% community impact fee is the only fee a locality can collect in an HCA, cannabis companies are free to voluntarily make charitable contributions to organizations in the community after the HCA has been executed. The idea here is to ensure that localities do not make charitable contributions a condition of entering an HCA – as is now a common practice – but at the same time to allow cannabis companies to support community organizations. Many already do and will continue to voluntarily.

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