Native Sun is committed to offering our customers up to date information on the cannabis industry, specifically regarding the ongoing regulation changes published by the Massachusetts Cannabis Control Commission (CCC).
Industry changes and regulation updates affect dispensaries, cultivators, product manufacturers, and even consumers! We believe that education is crucial for a thriving cannabis landscape and makes for more empowered customers, which is why we have outlined three of the most notable updates to the CCC’s publication of draft regulations 935 CMR 500.000: Adult Use of Marijuana. While these regulations aren’t yet official, they will likely be adopted in some form after the CCC’s regulatory review phase is complete. Read below for more!
MAJOR CHANGES TO DELIVERY LICENSE MODEL
500.050: Marijuana Establishments (10) Delivery Licensee
In past drafts, the CCC regulators published regulations that position delivery licensees essentially as couriers for CCC licensed retailers, sourcing marijuana products and making deliveries to customers for a fee, similar to many food delivery services. After feedback that these regulations led to a less than viable economic model, the CCC voted to allow delivery licensees to source their marijuana products on a wholesale basis from the CCC licensed cultivators and product manufacturers as well as allowing those using the model to warehouse products.
Along with these new drafts, the CCC extended the exclusivity of the delivery licenses, which are only available to participants in the CCC’s Social Equity Program and Certified Economic Empowerment applicants, from two years to three.
ECONOMIC EMPOWERMENT APPLICANTS
500.002: Definitions – Economic Empowerment Priority Applicant
Draft regulations were voted on and approved that state that economic empowerment applicants must maintain at least 51% ownership of the equity in their establishment to be considered and maintain their economic empowerment status. This status gives applicants priority in application processes, reduced fees, and the ability to apply for a delivery or social consumption license.
Feedback on this regulation was split, with one side arguing the importance of ownership that protects applicants from investors wanting to take advantage of their status, while the other side argues that there should be flexibility in structuring their investors and obtaining capital, which a number of applicants have voiced as a struggle.
UPDATES TO VITAMIN E ACETATE REQUIREMENTS
500.140: Additional Operational Requirements for Retail Sale (13) Sale of Marijuana Vaporizer Devices
A series of added requirements have been updated on the CCC Massachusetts regulations stating that cannabis retailers must display a series of in-store signage and warnings in addition to disclosing on packaging that while vape products have been tested for Vitamin E acetate, they may still contain harmful ingredients when inhaled. In addition, retailers are required to retain all records of purchases from any product manufacturer or supplier of any ingredient, additive, device, component part, or other material provided to the Marijuana Retailer.
