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Bill

S 2663

Merchant Banking Modernization Act

119th Congress Introduced by Jim Banks and 14 co-sponsors

Bill S 2663 regulates hemp-derived beverages in Massachusetts, imposing a $2.20 per gallon tax and ensuring public health through licensing and enforcement measures.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 2663

Summary of Bill S 2663: An Act to Regulate Hemp-Derived Beverages Like Alcohol

Purpose and Intent

Bill S 2663 aims to establish a regulatory framework for hemp-derived beverages in Massachusetts, similar to the regulations governing alcoholic beverages. The bill seeks to ensure public health and safety by imposing licensing requirements and penalties for unregulated production and sale of these products.

Key Provisions

The bill introduces several significant changes to existing laws, including:

1. Establishment of the Hemp Beverage Public Health and Local Enforcement Trust Fund

  • A new fund will be created to support public health education and enforcement related to hemp beverages.
  • The fund will be administered by the Department of Public Health and will consist of:
    • Revenues from the newly established hemp beverage excise tax.
    • Any appropriations or grants designated for this purpose.
  • At least 60% of the fund's annual deposits will be allocated as grants to local health boards for enforcement activities.

2. Hemp Beverage Excise Tax

  • An excise tax of $2.20 per gallon will be imposed on all hemp beverage products sold in Massachusetts.
  • The tax will be applicable to products manufactured within the state and those imported from outside.
  • Hemp beverage products will be exempt from sales tax.
  • Penalties will be imposed for the sale of unlicensed hemp beverages, with fines equal to double the excise tax that would have been owed.

3. Regulatory Framework for Hemp Beverages

  • The bill defines key terms related to hemp beverages and establishes licensing requirements for manufacturers, wholesalers, and retailers.
  • It prohibits the sale of products containing intoxicating cannabinoids unless they meet specific criteria, including being a licensed product or a recognized safe food ingredient.

4. Enforcement and Compliance

  • Local boards of health will have the authority to investigate and enforce compliance with the regulations.
  • They can conduct examinations and take samples of products suspected of violating the law.

Affected Parties

  • Manufacturers: Must obtain a license to produce hemp beverages.
  • Wholesalers and Retailers: Required to comply with licensing and tax regulations.
  • Local Health Boards: Will receive funding to enforce compliance and conduct public health education.
  • Consumers: Will benefit from regulated products and increased public health measures.

Procedural Aspects

  • The bill was introduced on November 10, 2025, and has been reported favorably by the committee on Consumer Protection and Professional Licensure.
  • It has been referred to the Senate Ways and Means Committee for further consideration.

Conclusion

Bill S 2663 represents a significant step towards regulating the emerging market of hemp-derived beverages in Massachusetts. By establishing a clear framework for production, taxation, and enforcement, the bill aims to protect public health while supporting local economies through regulated commerce.

Compiled from official sources — confirm details with the bill’s official record.

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