Legal & Legislative Committee — 2025-05-12
Attendance
Cal Finocchiaro ; Mark Garipay ; Maya Jamaleddine ; Leila Migliorelli ; Devin Romanul ; Kimberly Vandiver
Agenda
Minutes
CITY OF MELROSE LEGAL & LEGISLATIVE COMMITTEE CALENDAR● MAY 12, 2025 Council Chamber, First Floor, Melrose City Hall Committee Meeting 6:33 PM 562 Main Street, Melrose, MA 02176 The public should take notice that the Melrose City Council may, on certain occasions, have a quorum in attendance due to standing committees of the City Council consisting of both voting and non-voting members. Members attending this duly posted meeting are participating and deliberating only in conjunction with the business of the standing committee. Attendee Name Title Status Arrived Devin Romanul Vice Chair Present Cal Finocchiaro Present Mark Garipay Present Kimberly Vandiver Late 6:34 PM Leila Migliorelli Ex Offico Member Present Maya Jamaleddine Chair Absent
(ID # 12590) Informational Update on Cannabis Control Commission regulations related to marijuana business operations in the City of Melrose Place on File City Council City of Melrose Page 1 5/15/2025 1:11 PM
Transcript
▶ 0:00 Devin Romanul: All right. Recording in Progress. Good evening. The time is 6:33 PM on Monday, May 12th. This is a meeting of the Legal and Legislative Committee. My name is Deon Roman. I am the Vice Chair Acting Chair this evening. I'm joined by President MRE Exofficio, as well as committee members. Uh, councilors repay Councillor Stewart and Councillor Occhio. Oh, uh, excuse me. Councillor Stewart is a non-voting member. I apologize. Um, in accordance with the, uh, this serves as notice of record for the quorum in accordance with the open meeting law. This meeting is broadcast and recorded live on MMTV. I'll now motion by unanimous consent to open the floor for public comment. Seeing no objection, we are now open for public comment.
▶ 0:42 Devin Romanul: This is the portion of the meeting where anyone can speak on any item on our agenda tonight. Do we have any members online this evening as we have no members in the audience? We do not. Alright. We do not. Alright. That being said, if there's no objection, I'll motion to close public comment. Seeing no objection. We are now closed for public comment. Uh, we have one item on our agenda today that is item number 1 2 5 9 0 update on cannabis control Commission regulations related to marijuana business operations in the city of Melrose. Since we have members of the administration here to speak with us this evening, I'd like to entertain a motion by unanimous consent to suspend Rule 37 B before we proceed.
▶ 1:23 Seeing no objection, uh, 37 B is now suspended. Good evening Counselors. Um, Shannon Phillips, city solicitor. I'm just here tonight to provide a brief update, um, relative to cannabis regulations in Massachusetts, um, and the history of licensure in Melrose. Just so all of you're familiar with it, the mayor asked me to do this. There's been a number of, um, regulations that have put in place in the past couple years, uh, specifically certification requirements in the past month. So we've revamped our licensing process. Um, so I just wanted to review that with all of you, let you know where we stand now and what we might see coming, um, in the future. And then I can entertain any questions you might have.
▶ 2:00 We're not asking for any vote to be taken, just really this is more informational for everyone to be aware. Um, so some of you may know, um, by state election in 2016, Melrose narrowly voted in favor of question four, which legalized recreational marijuana. So that's not only retail, it's cultivation, uh, distribution possession, use recreational purposes. So zoning was passed in 2017, um, by the Melrose City Council. Um, and that placed a moratorium on recreational marijuana until the end of 2018. December. Um, at the same time, it actually zoned for, uh, medical use marijuana. So that's when we saw garden remedies first come into Melrose. I believe it was about, um, early 2019, um, in 20 or 2018, sorry.
▶ 2:41 In 2019, council passed zoning that actually addressed recreational marijuana businesses in Melrose. Um, so in that, that's our current zoning. That's the last time it's been substantively updated, um, was in 2019. Council capped the number of retailers in Melrose at one. So that currently is still the cap on retailers. Uh, this is currently held by garden remedies until if and when they decide to move outta Melrose. Um, council also restricted the sighting of any marijuana related business, um, to only the industrial and BB districts in Melrose. So that's really the Newburyport turned by Route 99 area. Um, since that time, no other licenses for marijuana have been sought or issued by the city.
▶ 3:20 Uh, Melrose does allow a number of other licenses within city limits, which I'm not sure council is aware of. Um, obviously retail is the one everyone hears most often, but there's also marijuana cultivators, product manufacturers, research facilities, testing labs, transportation or distribution facilities. Melrose allows courier and delivery operators to operate within the city of Melrose as well. That doesn't require a license or siting. Those are coming from other towns, for example, going to customer's homes to deliver. Um, so, uh, every marijuana related business has to have a coast community agreement. So that's by state law. Um, those are entered into by the mayor as the Chief Executive Officer for the city.
▶ 3:58 Um, after that, the applicant goes through a zoning review process, which has to follow our zoning ordinance. They have to get a special permit from the planning board, um, given recent legislation passed by the state in 2022. Um, there's various regulations and guidelines now, um, related to this process. So the Cannabis Control Commission now reviews and approves every host community agreement. They now have the ability to issue fines and sanctions for non-compliance. Um, they've barred cities from making financial obligations part of these agreements outside of host, outside of community impact fees. Um, and I believe I was before council at one point discussing this. Um, but community impact fees,
▶ 4:34 historically when these were first put into place, allowed you to do a certain percentage of gross sales that's no longer allowed. They have to be, um, documented in detail and you have to really send them an invoice at the end of the year. They're subject to appeal before the Cannabis Control Commission. They can then sue you if they disagree with any of those as not being reasonably related to the operation of that business. Um, and it has to be particular to a marijuana business, whatever impacts you would say are associated with it. Um, so those are all, those are all changes on the host community agreement front. Um, the Cannabis Control Commission has also issued regs and guidance requiring every city
▶ 5:07 and town to comply with equity standards. So this is new as of 2022. Um, their regulations, um, were issued, I believe 23 and 24. And as of May 1st every city in town had to certify compliance with these equity standards. Um, which was a cumbersome process at first, understanding what they were actually looking for, um, and then figuring out what would would work best within your community. So the city of Melrose has done that, which I'll update you on what those look like now. Um, we have certified to the, uh, commission as of, um, April, 2025 that we're in compliance with that. So part of that, um, was transparent detailed publishing of all steps in any local approval review process for these types of licenses.
▶ 5:50 So you'll see if you go to the city website now, we have a separate cannabis uses page, um, that's under zoning and Community Development department. Um, it's under the zoning tab and then there's cannabis uses. It spells out in detail the history of licensing for these businesses in Melrose. It also has every step in the local review process, every document that they'll have to fill out, every fee that's associated. Um, it has the evaluation form that we will look, we will have to actually score and use as part of the hosted community agreement, um, evaluation. So that's another requirement. The state now has that, um, an applicant comes in, fills out an application that's one of the pieces
▶ 6:26 that has now been published on the city website. It's an application for a host community agreement. Once they fill that out, they'll go in front of a host community advisory group, uh, which the mayor has said she will comprise of someone from planning law, uh, police health, um, public works, a member of the city council, and someone from the mayor's office. So that group would meet with the applicant. If we get an applicant in the future. Um, they would then, they would have a, uh, criteria within the application that they would come and present to the group afterwards. They would score them. They would make a recommendation to the mayor whether or not to enter into a host community agreement.
▶ 7:01 If the ma if the mayor then makes a decision to enter the HCA, the applicant would then have to go through the special permitting process, which is articulated in our current zoning. Um, so to come into compliance with all of this, the mayor adopted a social equity policy, um, which was one of the ways you could be presumed to be compliant with the CC regs. Um, they were very specific on the limited ways that they would allow, uh, communities to prove compliance with this. So part of that is that Melrose will prioritize negotiations with social equity applicants. So that would be granting host community agreements on a one-to-one basis. So general applicant would be approved only after social equity business has begun
▶ 7:37 operations in the community. Um, and we would do this until 50% of the licenses are operating as social equity businesses. So that is one that a lot of cities and towns have adopted, kind of still trying to figure out practically how that is going to work when applicants come into different communities. Um, but again, we were very limited in what we were able to adopt to be in compliance with this. So we're gonna have to wait and see on how this actually, uh, works out. Um, oh piece. So the Office of Planning Community Development also is gonna assist social equity businesses and applicants to try to streamline the process. Um, as I mentioned, the city has an evaluation form that we'll use to squirrel applicants.
▶ 8:11 We just decided to adopt the standard evaluation model form that the CCC had issued, um, which they said would be presumed to be compliant. Um, I also mentioned the mayor created a HCA advisory group, which will help with the evaluation process. Um, and we're also going to publish any data relative to the total applicant pool. So now you can go into the city website and you can see the actual host community agreement we have with any licensee at any time or anyone that's applied for a license. Um, and we would also have to publish the scoring of any licensee that came before the host community, um, group as well. Um, finally, uh, the last piece of update I wanted to provide to council December, 2024,
▶ 8:52 the commission released draft proposals, um, associated with adult use marijuana consumption sites in the state. So those would be new licenses, um, to allow for consumption at various businesses. Um, the draft regulations, the, they had proposed three new license types for social consumption, um, which would be given during exclusivity period to only social equity applicants that meet the requirements of the social equity program of the state. So the three that have been proposed, these have not been adopted, um, as regulations yet, but our supplemental onsite consumption licenses, so those are for any existing marijuana establishment in your community. So for us, that would be the one retailer we have.
▶ 9:31 They could apply for the separate license to allow for onsite, um, consumption in their location and their business. There's also hospitality onsite consumption. So that is a non-cannabis business that would get a license from the CCC and if a community allowed it locally, um, to have onsite consumption on their business or an event organizer. So that would be a license to operate a temporary event, which would be a festival not more than five days long. This would have to be an opt-in for Melrose. This is not automatic. Um, so Melrose would have to choose to opt into this to allow for social consumption. Um, the regulations are still in the works, so we're waiting on, you know, final ones to be published
▶ 10:09 Mark Garipay: and I would be happy to share it with council at that time once they are. I know that's a lot of information. I'm happy to answer any questions anyone might have. Anyone have any questions for Solicitor Phillips? Councilor gpe? Yeah. Uh, That was a lot. Um, I know, but just going to the last portion you talked about the consumption, I think would be, um, I think probably what I'd be more curious on. Mm-hmm. Yeah. Um, And so we, do we have to adopt that and would we have to adopt that the consumption portion or Do we just No, that's an opt-in. So we, as of right now, every community would be opted out, so we'd have to actually choose to allow for social consumption. We Don't have to do anything with that. Nope.
▶ 10:55 We wouldn't have to take any action. And I will say for those licenses too, the state is, as part of their regs there, they have an exclusivity period. I think they're proposing, um, that it would just be for social equity businesses again. So some communities are using that as a way to have social equity businesses open in their communities. I believe that's the intention for the state. And currently we have three licenses, 1 0 1, But we can go up to three. Is that No one for retail? That's the only cap we have. Okay. Is garden remedies has the retail, we have no other caps. Alright. And do you know if we have a lot of inquiries outside of whether, as Far as I know, distribution, no. Okay. That's it. I think. Councillor Stewart,
▶ 11:42 Robb Stewart: Thank you. Um, this is known. Thank you. Uh, Mr. Chair. As a non environment member, I have a couple questions of the chair. Um, so who would initiate the opt-in? Who would initiate, I'm sorry. Who would initiate the opt-in process? I mean, there, it sounds like there's a process to opt-in, right? It would be by, it would be by an ordinance. So just a normal way. So it would either, I don't know that there's any plans to, but it, like an ordinance could be proposed by the mayor. It could also be proposed by a city counselor. Okay. So it would have to come from either the administration or, yes. One of the government bodies. Oh, okay. Correct. Yeah. In other words, it can't be brought by a citizen to,
▶ 12:25 Um, I don't believe there's a petition process for that. Um, okay. I, I can double check that for you and get back to you. As far as I've read, it's a, it's a, it's a bylaw or ordinance, but I can check to see if there's a petition process Available. But if, but if there's a petition, it would still come through us. Yes. Yes. Got it. That's, that's helpful. Thank you. Um, that's all for now. Thank you. Thank you, Mr. Chair. Thank you so much to any other, uh, members, uh, committee or otherwise. Have any questions for Solicitor Phillips? No, I was just gonna say thank you for updating. That's a lot of information, but, um, seems like everything's pretty much saying the same in Melrose. Mm-hmm. Just, you know, Massachusetts has
▶ 13:05 Devin Romanul: updates to their laws. Um, so thank you. Well, uh, I wanna thank Solicitor Phyllis for, uh, the incredibly helpful memo and for the explanation today. And certainly keep us apprised of any details as the, uh, regulations get promulgated. And, um, at this point, I'll entertain a motion to place this on file. Make a motion to place on file, Motion made to place on file by Councillor Gar Pay, seconded by Council Fer on discussion. All those in favor? Aye. Aye. All those opposed the ayes have it. Alright. Thank you so much. Thank you, solicitor Phillips. Thank you. Um, with that, um, that is our last item for the evening. So I'll, um, by Unanim consent, ask for motion to adjourn. Motion to adjourn or, oh, yeah, sorry.