Massachusetts Cannabis Control Commission Launches New Delivery License

Foley Hoag LLP - Cannabis and the Law
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Foley Hoag LLP - Cannabis and the Law

As of Friday, May 28, the Cannabis Control Commission (“CCC”) has announced that Certified Economic Empowerment Applicants and Social Equity Program Participants (“EE/SE Participants”) are able to apply for pre-certification and licensure for the new Marijuana Delivery Operator license. This is the second stand-alone delivery license that EE/SE Participants are eligible to apply for, after the Marijuana Courier (formerly Delivery Only) license became available in May 2020.

The Marijuana Courier license allows licensees to delivery marijuana and marijuana products directly to consumers and patients only from marijuana retail establishments and medical marijuana treatment centers. However, the new Marijuana Delivery Operator license allows licensees to purchase marijuana and marijuana products directly from marijuana cultivators and product manufacturers and deliver those products directly to consumers. Marijuana Delivery Operators are also allowed to store marijuana and marijuana products on its premises, while Marijuana Couriers are not permitted to store products overnight.

All delivery licensees will be subject to strict regulations for delivery, including requirements for a minimum of two agents in the delivery vehicle and body camera use during deliveries. Marijuana Delivery Operators must also comply with certain safety regulations with respect to warehousing inventory, whitelabeling, wholesaling, and sales.

The CCC has released draft regulations indicating where delivery service is available. Under these regulations, delivery will be available in a municipality where a licensee has identified its place of business, any municipality that has allowed for adult-use retail in its jurisdiction, and any municipality which has notified the CCC that delivery may operate in its jurisdiction.

Each of these delivery licenses will be available exclusively to operators that are majority owned by EE/SE Participants for a minimum of three years. Per CCC regulations, the three-year clock begins on the date the first operator under a delivery license receives notice to commence operations.

Approximately 500 applicants are currently eligible to pursue at least one of the three types of delivery licenses. On May 28, Freshly Baked, a Taunton-based cannabis business, became the first delivery license holder and over 60 EE/SE Participants already have pre-certification for the Marijuana Courier license.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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