A bill that would amend the statutory language that defines
permissible scope of community impact fees in Host Community
Agreements ("HCAs") is making its way through the
Massachusetts State House. The bill, H 4367, would also give the
Cannabis Control Commission ("CCC") express regulatory
authority over HCAs.
The issue the bill addresses is one that has created
considerable uncertainty and controversy. Under Massachusetts law,
cannabis companies must enter into an HCA with a locality before
they can obtain licensure from the CCC and that HCA must stipulate
all responsibilities of the parties. Section 3 of Chapter 94G of
the General Laws allows HCAs to include a "community impact
fee" that the company pays to the host community. The
community impact fee must, however, be "reasonably related to
the costs imposed upon the municipality by the operation of the
marijuana establishment . . . and shall not amount to more than 3
per cent of the gross sales of the marijuana
