MASSACHUSETTS OPENS RECREATIONAL CANNABIS LICENSING

On April 2nd, the Massachusetts Cannabis Commission opened its licensing application process for cannabis businesses, marking Massachusetts’ official entry into the legal cannabis industry. Despite the relatively strict criteria that applicants must meet in order to qualify for the first round of licensing, the Boston Globe reports that almost 200 prospective cannabis operators have started their applications within the first day of the system’s opening, a definite sign that interest is high.

For the time being, applications are only open for “Priority Applicants,” a group consisting of Registered Marijuana Dispensaries – existing retail businesses w

hich already have a certificate of registration and are in good standing with the Massachusetts Department of Public Health – and Economic Empowerment Applicants. The latter category is analogous to the Social Equity Program in the Oakland and Los Angeles cannabis licensing processes: Granting priority to certain business operators is intended as a restorative measure to benefit communities, demographics, and individuals who have been disproportionately punished by cannabis laws in the past.

According to the Massachusetts regulations on the Adult Use of Marijuana, to qualify as an Economic Empowerment Applicant, a prospective cannabis operator must meet three or more of the following criteria:

  • A majority of ownership belongs to people who have lived for five of the preceding ten years in an area of disproportionate impact, as determined by the Commission;
  • A majority of ownership has held one or more previous positions where the primary population served were disproportionately impacted, or where primary responsibilities included economic education, resource provision or empowerment to disproportionately impacted individuals or communities;
  • At least 51% of current employees or subcontractors reside in areas of disproportionate impact and by the first day of business, the ratio will meet or exceed 75%;
  • At least 51% or employees or subcontractors have drug-related CORI and are otherwise legally employable in cannabis enterprises;
  • A majority of the ownership is made up of individuals from Black, African American, Hispanic or Latino descent;
  • Other significant articulable demonstration of past experience in or business practices that promote economic empowerment in areas of disproportionate impact.

If a cannabis operator is certified as a Priority Applicant, they’ll be eligible to submit a state licensing application for all activities on April 17th. Businesses that don’t receive this priority will have to wait: Open applications for Cultivation, Microbusiness, Craft Cooperatives, Independent Testing Labs, and Lab Agents are scheduled to begin on May 1st, while applications for Retail, Product Manufacturers, and Transport businesses won’t open until June 1st. Given that the state has slated retail sales to begin on July 1st, this means that, if Massachusetts sticks to the current deadlines, applications are likely to be a very competitive, time-sensitive process.

Even if they don’t qualify as priority applicants, prospective cannabis operators should study state and local regulations to ensure that their applications are in order – as Massachusetts is still in the early stages of the cannabis licensing process, many deadlines and regulations are still subject to change. For more information on Massachusetts’ cannabis regulations, follow this blog or contact us at info@margolinlawrence.com.

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